Iktinos Hellas S.A.

Annual Report (ESEF) • May 9, 2023

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IKTINOS TECHNIKI & TOURISTIKI ANONYMI ETAIREIA G.E.MI. Number 000949319001 (M.A.E. 2304/06/Β/86/53) 7 LYKOVRISSIS STR., 14452 METAMORFOSI ATTICA Τel. 210-2826825 Fax. 210-2818574 e-mail : info@iktinos www.iktinos.gr Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 2 CONTENTS 1. Representations of the members of the Board of Directors (According to article 4 § 2 of L. 3556/2007) .......................................................................................................................................... 4 2. Independent Auditor’s Report........................................................................................................ 5 3. Annual Report of the Board of Directors ..................................................................................... 13 4. Annual Corporate and Consolidated Financial Statements for the period from 1st January to 31st December 2022 ................................................................................................................... 105 4.1. Total Revenue Statement ........................................................................................................ 105 4.2. Statement of Financial Position .............................................................................................. 106 4.3. Consolidated Statement of Changes in Equity ...................................................................... 107 4.5. Statement of Cash Flows (Indirect Method).............................................................................. 109 5.1. General information ................................................................................................................ 110 5.2. Nature of Operations ............................................................................................................... 110 5.3. Participations in other companies .......................................................................................... 111 5.4. Companies participating in the consolidated financial statements of the Group .............. 115 6. Framework of preparation of financial statements.................................................................. 116 6.1 General framework of preparation .......................................................................................... 116 6.2. Changes in Accounting Principles ........................................................................................... 117 6.3 Significant accounting estimations and judgments of the Management............................. 120 7. Main Accounting Principles ........................................................................................................ 123 8. Risk Management ........................................................................................................................ 140 9. Financial reporting per segment ................................................................................................ 144 10. Notes on the Financial Statements .......................................................................................... 146 10.1. Notes on the Financial Statements ...................................................................................... 146 10.2. Intangible Assets ................................................................................................................... 147 10.3 Real estate investments ......................................................................................................... 148 10.4. Investments in Subsidiaries and Related Companies......................................................... 149 10.5. Deferred taxes ........................................................................................................................ 150 10.6. Other long-term receivables ................................................................................................. 152 10.7. Inventories ............................................................................................................................. 152 10.8. Customers and other trade receivables ............................................................................... 152 10.9. Other receivables ................................................................................................................... 154 10.10. Cash and cash equivalents .................................................................................................. 154 10.11. Equity .................................................................................................................................... 154 10.12. Loan liabilities and Financial Lease Liabilities .................................................................. 155 10.13. Employee benefits liabilities ............................................................................................... 157 10.14. Government Grants ............................................................................................................. 158 10.15. Provisions ............................................................................................................................. 158 10.16. Suppliers and other liabilities ............................................................................................. 158 10.17. Current tax liabilities ........................................................................................................... 159 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 3 10.18. Other short-term liabilities ................................................................................................. 159 10.19. Sales ...................................................................................................................................... 159 10.20. Expenses per category ........................................................................................................ 160 10.21. Other operating income/operation expenses ................................................................... 161 10.22. Financial income/expenses ................................................................................................ 162 10.23. Other financial Results ........................................................................................................ 163 10.24. Investment activity Results ................................................................................................ 163 10.25. Income tax ........................................................................................................................... 163 10.26. Earnings per share ............................................................................................................... 165 10.27. Financial assets and liabilities ............................................................................................ 165 10.28. Fair value of non-financial instruments ............................................................................. 170 10.29. Contingent receivables - liabilities ..................................................................................... 171 10.30. Transactions with related parties....................................................................................... 172 10.31. Dividends .............................................................................................................................. 173 10.32. Number of employees .......................................................................................................... 173 10.33. Website where the financial reports of the group are uploaded..................................... 173 10.34. Events subsequent to the balance sheet date................................................................... 173 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 4 1. Representations of the members of the Board of Directors (According to article 4 § 2 of L. 3556/2007) The members of the Board of Directors of IKTINOS HELLAS S.A. 1. Chaidas Evangelos, son of Nikolaos, Chairman of the Board of Directors and CEO; 2. Chaida Ioulia, daughter of Evangelos, Vice-President of the Board of Directors; 3. Chaida Anastassia, daughter of Evangelos, Member of the Board of Directors. In our abovementioned capacity, specifically appointed for this purpose by the Board of Directors of theSociété Anonyme under the corporate name “IKTINOS HELLAS S.A.” we hereby state and certify that as far as we know: a) the attached annual company and consolidated financial statements for the fiscal period 01/01- 31/12/2022, which have been prepared in accordance with the applicable accounting standards, provide a true picture of the assets and liabilities, equity and results of the company, as well as of the companies included in the consolidation, taken as a whole; and, b) the attached Board of Directors’ report provides a true picture of the evolution, performance and of the financial position of the company, as well as of the companies included in the consolidation, taken as a whole, including a description of the main risks and uncertainties which they face; c) the attached annual company and consolidated financial statements are ones approved by the Board of Directors of “IKTINOS HELLAS S.A.” on 26 April 2022 and have been published by having been uploaded on the internet, at the www.iktinos.gr website. Metamorfosi Attica, 26 April 2023 The certifying individuals, The Chairman of the BoD Deputy Vice-Chairman & Managing Director Managing Director Chaidas Evangelos Ioulia Chaida Anastassia Chaida ID No. ΑΕ 079957 ID No. ΑΝ 685224 ID No. AN 674657 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 5 2. Independent Auditor’s Report To the shareholders of the Company “IKTINOS HELLAS S.A.” Report on Separate and Consolidated Financial Statements Opinion We have audited the accompanying separate and consolidated financial statements of “IKTINOS HELLAS S.A.” (“the Company”), which comprise the separate and consolidated statement of financial position as at December 31, 2022, separate and consolidated income statements and statements of comprehensive income, changes in equity and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial position of the company “IKTINOS HELLAS S.A.” and its subsidiaries (the Group) as at 31 December 2022, their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards that have been adopted by the European Union. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) incorporated into the Greek Legislation. Our responsibilities under those standards are described in the Auditor’s responsibilities for the “Audit of the separate and consolidated financial statements” section of our report. We are independent of the Company and its consolidated subsidiaries within the entire course of our appointment, in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) incorporated into the Greek Legislation and ethical requirements relevant to the audit of separate and consolidated financial statements in Greece and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate and consolidated financial statements of the audited period. These matters, as well as the related risk of significant misstatements, were addressed in the context of our audit of the separate and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 6 matter Recoverability of Trade Receivables As at December 31st, 2022, the Group and the Company trade receivables stand at € 10,73 million and € 12,96 million respectively, while the relative accumulated impairment, included in this amount, as reported in Note 11.8 to the financial statements, amounts to € 0,93 million and € 0,93 million respectively regarding the Group and the Company. At the every reporting period closing date, the management assesses the recoverability of the Group's and the Company's trade receivables so that they could be recorded at their recoverable amount, recognizing the required provisions for impairment for expected credit losses. This procedure involves significant judgments and estimates. Given the significant value of trade receivables and the level of judgment and estimates, required from the management, we consider that assessment of recoverability of trade receivables constitutes a key audit matter. The disclosures, made by the Company and the Group pertaining to the accounting policies as well as the judgements and estimates used under the assessment of recoverability of trade receivables, are included in Notes 6.3, 7.7 and 10.8 to the accompanying financial statements. The key audit procedures we performed in respect of assessing recoverability of trade receivables included the following procedures, among others: - Understanding the internal controls designed by the management, related to the Group's credit control procedures and providing credits to customers. - Assessment of assumptions and methods used by the Management in order to determine recoverability of trade receivables or their classification as doubtful receivables. - Review of the legal consultants representation letters in respect of doubtful receivables addressed within the year and identifying potential issues indicating the balances of trade receivables that are non- recoverable in the future. - Assessment of maturity of trade receivables balances at the year end, identifying potential debtors in financial difficulties. - Evaluation of recoverability of balances as at December 31st, 2022, comparing these amounts with subsequent amounts received/settled. - Assessment of sound implementation of IFRS 9 under the calculation of expected credit losses over the life of the instruments. - Assessment of adequacy of the disclosures recorded in the accompanying financial statements regarding this matter. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 7 Inventory valuation As at December 31st, 2022, the Group and the Company held inventory amounting to € 23,77 million and € 23,73 million respectively. Inventories are measured at the lower amount between acquisition cost and net realizable value. Provision for impairment of inventories is made based on the management's assessment of the effective conditions and the potential to use inventory if and when deemed necessary. Given the significance of the item, the degree of subjectivity of the assumptions, acting as a basis for valuation analysis, as well as the use of the management estimates, we consider that inventory valuation constitutes a key audit matter. Disclosures, made by the Group and the Company in respect of the assumptions and estimates used under valuating inventory are recorded in Notes 7.9 and 10.7 to the accompanying financial statements. The key audit procedures we performed in respect of inventory valuation included the following procedures, among others: - Understanding the control procedures designed by the Management regarding identifying slow moving/obsolete inventories and determining their realizable value. - Attending the procedure of the physical count in certain storage areas and performing sample inventory counts. - Review of inventory sample in order to verify sound calculation of their acquisition cost in accordance with the purchase invoices and correct allocation of production costs. - Review of sound inventory valuation through comparing net realizable value of inventory at the reporting date with the acquisition cost of inventory. - Review of the warehouse balance in order to identify idle and slow moving inventory. - Assessment of adequacy of the disclosures recorded in the accompanying financial statements regarding this matter. Other information Management is responsible for the other information. The other information is included in the Board of Directors Report, the reference to which is made in the “Report on Other Legal and Regulatory Requirements” section of our Report and Statements of the Members of the Board of Directors, but does not include the financial statements and the auditor’s report thereon. Our opinion on the separate and consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the separate and consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our audit, we conclude that there is a material misstatement therein, we are required to communicate that matter. No such issue has arisen. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 8 Responsibilities of the management and those charged with governance for the separate and consolidated financial statements Management is responsible for the preparation and fair presentation of the separate and consolidated financial statements in accordance with International Financial Reporting Standards that have been adopted by the European Union and for such internal control as management determines is necessary to enable the preparation of separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the separate and consolidated financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management’s intention is to proceed with liquidating the Company and the Group or discontinuing its operations or unless the management has no other realistic option but to proceed with those actions. The Company’s Audit Committee (Article 44, Law 4449/2017) is responsible for overseeing the Company’s and the Group’s financial reporting process. Auditor’s responsibilities for the audit of the separate and consolidated financial statements Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as an aggregate, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs, incorporated into the Greek Legislation, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to affect the economic decisions of users taken on the basis of these separate and consolidated financial statements. As part of an audit in accordance with ISAs, incorporated into the Greek Legislation, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the separate and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 9 • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the separate and consolidated financial statements, including the disclosures, and whether the separate and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient and appropriate audit evidence regarding financial reporting of entities or business operations within the Group for the purpose of expressing an opinion on the separate and consociated financial statements. Our responsibility is to design, supervise and perform the audit of the Company and its subsidiaries. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate and consolidated financial statements of the current period and are therefore the key audit matters. Report on Other Legal and Regulatory Requirements 1. Board of Directors Report Taking into consideration that management is responsible for the preparation of the Board of Directors’ Report which also includes the Corporate Governance Statement, according to the provisions of paragraph 5 of article 2 (part B) of L. 4336/2015, we note the following: a) The Board of Directors’ Report includes the Corporate Governance Statement that provides the data and information defined under article 152, Law 4548/2018. b) In our opinion, the Board of Directors Report has been prepared in compliance with the effective legal requirements of Article 150 and 153 and Paragraph 1 (cases c’ and d’) of Article 152, Law 4548/2018, Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 10 and its content corresponds to the accompanying separate and consolidated financial statements for the year ended as at 31.12.2022. c) Based on the knowledge we acquired during our audit, we have not identified any material misstatements in the Board of Directors Report in relation to the company “IKTINOS HELLAS S.A.” and its environment. 2. Complementary Report to the Audit Committee Our audit opinion on the separate and the consolidated financial statements is consistent with our Additional Report to the Company’s Audit Committee referred to in article 11 of EU Regulation 537/2014. 3. Provision of Non‐Audit Services We have not provided to the Company and its subsidiaries any prohibited non-audit services referred to in article 5 of EU Regulation No 537/2014. Authorized non‐audit services provided by us to the Company and its subsidiaries during the year ended as at December 31, 2022 are disclosed in Note 10.20 to the accompanying separate and consolidated financial statements. 4. Auditor’s Appointment We were first appointed the Company’s Chartered Accountants following as of 30/06/2009 Decision of the annual general meeting of shareholders. Our appointment has been renewed by the decision of the annual general meeting of shareholders for a total uninterrupted period of 14 years. 5. Internal Regulation Code The Company has in effect Internal Regulation Code in conformance with the provisions of Article 14 of Law 4706/2020. 6. Assurance Report on European Single Electronic Format 1 We examined the digital records of the Company “IKTINOS HELLAS S.A.” (hereinafter the “Company” or/and the “Group”), prepared in accordance with the European Single Electronic Format (ESEF) as defined by the European Commission Delegated Regulation 2019/815, amended by the Regulation (EU) 2020/1989 (hereinafter “ESEF Regulation”), which comprise the separate and consolidated financial statements of the Company and the Group for the year ended December 31, 2022, in XHTML format as . Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 11 well as the provided XBRL file (21380044V7NMV5WGP427-2022-12-31-el) with the appropriate mark-up, on the aforementioned consolidated financial statements including the other explanatory information (Notes to financial statements). Regulatory framework The digital records of the European Single Electronic Format are prepared in accordance with ESEF Regulation and the European Commission Interpretative Communication 2020/C 379/01 of November 10, 2020, in conformance with Law 3556/2007 and the relevant announcements of the Hellenic Capital Market Commission and the Athens Stock Exchange (hereinafter “ESEF Regulatory Framework”). In summary, this Framework includes, among others, the following requirements: - All annual financial reports shall be prepared in XHTML format. - For the consolidated financial statements in accordance with IFRS, financial information included in the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows shall be marked-up with XBRL tags and block tag, in accordance with the effective ESEF Taxonomy. ESEF technical specifications, including the relevant taxonomy, are set out in the ESEF Regulatory Technical Standards. The requirements set out in the effective ESEF Regulatory Framework constitute the appropriate criteria for expressing a conclusion of reasonable assurance. Responsibilities of Management and Those Charged with Governance Management is responsible for the preparation and submission of the separate and consolidated financial statements of the Company for the year ended December 31, 2022, in accordance with the requirements of the ESEF Regulatory Framework, and for such internal control as management determines is necessary to enable the preparation of digital records that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities Our responsibility is to design and conduct this assurance engagement, in accordance with No. 214/4/11- 02-2022 Decision of the Board of Directors of the Hellenic Accounting and Auditing Standards Oversight Board (HAASOB) and the “Guidelines on the auditors’ engagement and assurance report on the European Single Electronic Format (ESEF) for issuers whose securities are admitted to trading on a regulated market in Greece” as issued by the Institute of Certified Public Accountants of Greece on February 14, 2022 (hereinafter “ESEF Guidelines”), in order to obtain reasonable assurance that the separate and consolidated financial statements of the Company and the Group prepared by management in accordance with ESEF, are in compliance, in all material respects, with the effective ESEF Regulatory Framework. We conducted our work in accordance with the International Ethics Standards Board of Accountants “Code of Ethics for Professional Accountants” (IESBA Code), as incorporated into the Greek Law, and we have complied with the ethical requirements of independence, in accordance with Law 4449/2017 and EU Regulation 537/2014. We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 “Assurance Engagements other than Audits or Reviews of Historical Financial Information” and our procedures are limited to the requirements of the ESEF Guidelines. Reasonable assurance is a high level Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 12 of assurance, but is not a guarantee that this work will always detect a material misstatement of non- compliance with the requirements of the ESEF Regulation. Conclusion Based on the procedures performed and the evidence obtained, the separate and consolidated financial statements of the Company for the year ended December 31, 2022, in XHTML format as well as the provided XBRL file (21380044V7NMV5WGP427-2022-12-31-el) with the appropriate mark-up on the aforementioned consolidated financial statements, including the other explanatory information, have been prepared, in all material respects, in accordance with the requirements of the ESEF Regulatory Framework. Athens, 28 April 2023 The Certified Public Accountant Manolis Michalios Registry Number SOEL 25131 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 13 3. Annual Report of the Board of Directors Management report of the Board of Directors of the company “IKTINOS TECHNIKI & TOURISTIKI ANONYMI ETAIREIA” on the consolidated and company Financial Statements of the fiscal year from 1st January to 31st December 2022 The present Annual Report of the Board of Directors which follows (hereinafter referred to as the “Report”), refers to the fiscal year 2022. The Report was prepared and is aligned with the relevant provisions of law 4548/2018 as applicable, as well as law 3556/2007 article 4 par. 2(c), 6, 7 & 8 (G.G. 91Α/30.4.2007) and the executive decisions of the Capital Market Commission issued pursuant to it 7/448/11-10-2007 article 2 and the Company’s Articles of Association. The present report contains briefly the financial information regarding the fiscal year 2022 and describes significant events that took place (before and after the reporting date of the financial statements) and their impact on the annual financial statements. There is also a description of the main risks and uncertainties that the Group and the Company may face over the next year and the significant transactions that were concluded between the issuer and their related parties are presented. Α. Evolution of the performance of the Company and of the Group over the fiscal year 1/1- 31/12/2022. Α.1. Company • Turnover During the Fiscal Year 2022 turnover amounted to 30,817,987 euro while the corresponding amount during the Fiscal Year 2021 amounted to 33,014,672 euro. There was a decrease by 2,196,685 euro and by 6.65%. Effects of the macroeconomic environment on the financial figures of the company 2022 was a year of exceptional challenges where the Company's Management was called upon to manage ever-increasing cost pressures at all levels – materials, energy and transport. We live in an era of very intense fluctuations and multiple problems that affect every type of business. Electricity and oil costs increased by 46% and burdened production costs by 1.2 million euros, while factors that have recently emerged more strongly due to the significant geopolitical developments in Ukraine have increased the company's operating costs by 10%. Along with energy increases, large and sharp increases in raw material prices of more than 15% multiply our production costs further shrinking our profit margins. Also, interest rate increases by the European Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 14 Central Bank were added within 2022 with the aim of indirectly controlling the immense increase in inflation which is at the highest level in the last decades. In addition, the lock down of the Chinese market for the third consecutive year, the largest market for Greek marbles, has negatively affected the company's turnover, as in 2022, the participation of the company's sales to China in the total sales was limited to only 30% of turnover, compared to 60% in 2021. The increase in sales to new markets was not able to compensate for this loss. The top six countries to which 66% of the company's production was exported in 2022 are China, Mexico, the UAE, Qatar, S. Arabia and Egypt. The remaining 34% was exported to 47 countries around the world. However, we should emphasize that Greek marble exports as a whole had a decline by 15% in 2022 compared to 2021, a fact that worries the Greek marble industry. Also the opposite course of Greece's total marble exports in 2022 compared to Italy and Turkey is an indication of high worldwide competition. Greek exports show a decrease, while Italian and Turkish exports have gone up. Specifically, the decrease of raw marbles in exports to China has a critical effect on the exports of raw marbles of all three countries. However, Greece records greater losses than Italy and Turkey. Exports of processed marble from all three countries showed growth that led to a five-year record. However, Greece's exports are growing at a lower rate compared to Italy and Turkey. All of the above geopolitical and social turmoil and rearrangements had a negative impact on the company's financial figures in 2022. • Gross results (Gross Profit) During the fiscal year 2022 it amounted to 10,939,418 euro while the corresponding amount during the fiscal year 2021 was 13,307,756 euro. There was a decrease by 2,368,337 euro and by 17.80%. • Administration and Disposal Expenses During the fiscal year 2022 they amounted to 10,429,895 euro while the corresponding amount during the fiscal year 2021 was 10,110,686 euro. There was a decrease of expenses by 319,209 euro and by 3.16%. • Research and Development Expenses During the fiscal year 2022 they amounted to 55,587 euro while the corresponding amount during the fiscal year 2021 was 20,246 euro. There was an increase of expenses by 35,341 euro and by 174.56%. • Earnings before interest, taxes, depreciation and amortization (EBITDA) During the fiscal year 2022 they amounted to 4,269,806 euro while the corresponding amount during the fiscal year 2021 was 7,271,369 euro, showing a decrease by 3,001,563 euro and by 41.28%. • Earnings before taxes Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 15 During the fiscal year 2022 they amounted to 137,997 806 euro while the corresponding amount during the fiscal year 2021 was 3,069,231 euro. There was a decrease by 2,931,234 euro and by 95.50%. • Earnings after taxes During the fiscal year 2022 they amounted to 201.728 euro loss, while the corresponding amount during the fiscal year 2021 was 2,095,516 euro profit. There was a change by 2,297,244 euro and by 109.63%. • Loan liabilities During the fiscal year 2022 loan liabilities amounted to 46,333,451 euro while the corresponding amount during the fiscal year 2021 was 43,456,619 euro. There was an increase in borrowing by 2,876,832 euro and by 6.62%. Α.2 GROUP The companies in which IKTINOS HELLAS S.A. participated on 31/12/2022 and which are included in the consolidated financial statements of the Group are the following: 1. FEIDIAS HELLAS A.V.E.E. Its sales during the fiscal year 2022 amounted to 734,233 euro while the corresponding amount during the fiscal year 2021 was 689,926 euro. There was an increase by 44,307 euro and by 6.42%. The results (loss) before taxes during the fiscal year 2022 amounted to 174,636 euro while the corresponding amount during the fiscal year 2021 was 136,989 euro. There was an increase in loss by 37,647 euro. 2. KALLITECHNOKRATIS E.P.E. This company has been put into liquidation since 26/4/2007. 3. IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. (IDEI S.A.) Its sales during the fiscal year 2022 amounted to 2,177,847 euro while the corresponding amount during the fiscal year 2021 was 1,942,128 euro. There was an increase by 235,719 euro and by 12.14%. During the fiscal year 2022 the results (profit) before taxes amounted to 143,444 euro while the corresponding amount during the fiscal year 2021 was 613,012 euro (loss); there was an improvement by 756,456 euro. The previous year loss was mainly due to the impairment of its participation. The total impairment loss recognized on 31.12.2021 in the subsidiary company IDEI on its investments in companies placed in liquidation amounted to 420,000 euro. 4. LATIRUS LTD This company through its subsidiary "IKTINOS TECHNIKI & TOURISTIKI SA" is in the process of implementing investments. The company Latirus Enterprises Ltd as well as its subsidiary IKTINOS TECHNIKI & TOURISTIKI SA by 97.764% are incorporated in the financial statements of the Group by the method of total consolidation. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 16 The result for the period 1/1/-31/12/2022 amount to 2,595.72 losses before taxes. 5. AIOLIKI MEGA ISOMA SA It is a company of the group (indirect participation through the subsidiary IDEI) which was established in the context of the Group's activity in renewable energy sources. The Extraordinary General Meeting of the company's shareholders dated 29/12/2021 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 31/12/2021 the decision with number 13293/31-12-2021 of the Chamber of the GEMI Service (ΑΔΑ: ΨΘΜΦ469ΗΕΘ-Ι89) was registered with KAK 2766644 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI MEGA ISOMA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI MEGA ISOMA S.A.” with GEMI No. 124526201000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 29/12/2021. On 08/12/2022 the minutes of the General meeting dated 05/12/2022 was registered with ΚΑΚ 3352981 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 05/12/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI MEGA ISOMA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI MEGA ISOMA S.A” and GEMI No 124526201000. The result of the liquidation in the individual statements of the company "AIOLIKI MEGA ISOMA S.A." is 84,682 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet. 7. AIOLIKI LYKOFOLIA SA It is a company of the group (indirect participation through the subsidiary IDEI) which was established in the context of the Group's activity in renewable energy sources. The company modified the existing production license from 9 MW to 3 MW in order to get a guaranteed sale price for the generated electricity. 8. AIOLIKI MAVROLITHARO SA It is a company of the group (indirect participation through the subsidiary IDEI) which was established in the context of the Group's activity in renewable energy sources. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 17 The Extraordinary General Meeting of the company's shareholders dated 12/1/2022 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 18/1/2022 the decision with number 557/18-1-2022 of the Chamber of the GEMI Service (ΑΔΑ: 6640469ΗΕΘ-Υ5Η) was registered with KAK 2778674 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI MAVROLITHARO S.A.” with GEMI No. 118804701000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 12/1/2021. On 09/11/2022 the minutes of the General meeting dated 09/11/2022 was registered with ΚΑΚ 3248116 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 09/11/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI MAVROLITHARO” and GEMI No 118804701000. The result of the liquidation in the individual statements of the company "AIOLIKI MAVROLITHARO S.A." is 49,145 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet. 9. AIOLIKI SYNORA SA It is a group company (indirect participation through the subsidiary IDEI) which was established in the context of the Group's activity in renewable energy sources. The Extraordinary General Meeting of the company's shareholders dated 12/1/2022 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 2/2/2022 the decision with number 988/2-2-2022 of the Chamber of the GEMI Service (ΑΔΑ: 6ΦΞ469ΗΕΘ-799) was registered with KAK 27867711 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI SYNORA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI SYNORA S.A.” with Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 18 GEMI No. 124658401000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 12/1/2021. On 29/11/2022 the minutes of the General meeting dated 09/11/2022 was registered with ΚΑΚ 3341566 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 09/11/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI SYNORA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI SYNORA S.A.” and GEMI No 124658401000. The result of the liquidation in the individual statements of the company "AIOLIKI SYNORA S.A." is 25,250 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet 10. IKTINOS TECHNIKI & TOURISTIKI This is a company of the group (indirect participation through a subsidiary company Latirus Ltd) that operates in the real estate sector and is going to develop a tourist facility at Ormos Faneromenis of the Municipality of Sitia in an area of approximately 2,689 acres. The result for the period 1/1/-31/12/2022 amounted to 70,356 euro losses before taxes. EVOLUTION OF THE GROUP OPERATIONS • Turnover During the fiscal year 2022 it amounted to 33,018,563 euro while the corresponding amount during the fiscal year 2021 was 34,967,895 euro. There was a decrease by 1,949,333 euro and by 5.57%. • Gross results (Gross Profit) During the fiscal year 2022 it amounted to 10,464,964 euro while the corresponding amount during the fiscal year 2021 was 12,688,437 euro. There was a decrease by 2,223,473 euro and by 17.52%. • Administration and Disposal Expenses During the fiscal year 2022 they amounted to 10,564,000 euro while the corresponding amount during the fiscal year 2021 was 10,175,731 euro. There was an increase by 388,269 euro and by 3.82%. • Research and Development Expenses During the fiscal year 2022 they amounted to 55,587 euro while the corresponding amount during the fiscal year 2021 was 20,246 euro. There was an increase by 35,341 euro and by 174.56%. • Earnings before interest, taxes, depreciation and amortization (EBITDA) During the fiscal year 2022 they amounted to 5,708,845 euro while the corresponding amount during the fiscal year 2021 was 8,700,657 euro. There was a decrease by 2,989,006 euro and by 34.35%. • Earnings before taxes Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 19 During the fiscal year 2022 they amounted to 8,227 euro profit while the corresponding amount during the fiscal year 2021 was 2,594,591. There was a decrease by 2,586,364 euro and by 99.68%. • Earnings after taxes During the fiscal year 2022 they amounted to 325,956 euro loss while the corresponding amount during the fiscal year 2021 was 2,424,042 euro profit. There was a change by 2,749,999 euro. • Loan liabilities During the fiscal year 2022 loan liabilities amounted to 46,333,451 euro while the corresponding amount during the fiscal year 2021 was 44,447,445 euro. There was an increase in borrowing by 1,886,006 euro and by 4.24%. Alternative Financial Indicators of Calculating Performance The Group uses as alternative performance indicators the Earnings before Taxes, Interest and Amortization (EBITDA), the margin results before interest, taxes, investment results and amortization and the Net Borrowing. The above indicators are taken into account by the Group’s Management in making strategic decisions. Alternative indicators should always be considered in conjunction with the financial results drawn up in accordance with IFRS and in no way replace them. EBITDA - Earnings before taxes, interest and depreciation: The indicator is calculated as: Earnings before taxes (EBT) - Net financial results + Depreciation for the use of tangible & intangible assets - Recognized income from grants. The larger the indicator, the more effective the operation of the Group / Company. Marginal results before interest, taxes, investment results and depreciation: The indicator is calculated as Profit before Interest and Depreciation Taxes - Investment Results for Sales. It is an indicator by which the Management evaluates the efficiency of the activities of the Group / Company. Net Borrowing: The indicator is calculated as the total of Short-term Loans, Long-term Loans and Long-term loan liabilities payable in the following year less the amount of cash not subject to any use restriction or commitment. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 20 Earnings before Taxes, Interest and Amortization (EBITDA) Group Company 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Results (loss) after taxes -325,956 2,424,042 -201,728 2,095,516 Income tax 334,183 170,549 339,725 973,715 Financial Revenue 108,475 -250000,36 108,475 -250000,36 Financial Expenses 1,845,846 1,856,847 1,821,024 1,792,335 Other Financial Results 13,710 -11287.56 13,710 -181095.56 Depreciation 4,546,666 4,949,193 2,459,751 2,870,823 Grants Depreciation -569,709 -572,852 -26,781 -29,924 Investment results 134,166 -122,185 0 Earnings before Taxes Interest and Amortization (EBITDA) 5,708,846 8,700,657 4,269,806 7,271,369 Turnover 33,018,563 34,967,895 30,817,987 33,014,672 Margin results before interest, taxes, investment results and amortization 17.29% 24.88% 13.85% 22.02% Net Borrowing Group Company 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Long term loan liabilities 17,924,240 20,534,409 17,924,240 20,534,409 Long term loan liabilities payable in the next year 3,860,163 3,894,323 3,860,163 2,903,497 Short term Loan Liabilities 22,616,604 18,288,564 22,616,604 18,288,564 Liabilities from financial leases 1,374,907 914,575 1,374,907 914,575 Short-term liabilities from financial leases 557,538 815,574 557,538 815,574 Cash and Cash Equivalents -1,626,101 -1,420,374 -1,448,934 -1,383,290 Net Borrowing 44,707,350 43,027,071 44,884,517 42,073,329 Borrowing increase 1,680,280 2,811,188 Group Company 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Loans 46,333,451 44,447,445 46,333,451 43,456,619 Less: Cash Available -1,626,101 -1,420,374 -1,448,934 -1,383,290 Net borrowing 44,707,350 43,027,071 44,884,517 42,073,329 Total equity 49,624,783 49,922,203 45,749,163 45,923,863 Leverage ratio 0.901 0.862 0.981 0.916 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 21 Β. SIGNIFICANT EVENTS OF THE FISCAL YEAR 2022 AND OF THE PERIOD UP TO THE PREPARATION OF THE PRESENT REPORT 1. VAT refund - Special Consumption Tax The Company received a VAT refund of 2.66 million euro, after a temporary audit by the competent Tax Office ATHENS FAE, for VAT refund applications based on POL 1073/2004. The Company also received a refund of Special Consumption Tax amounting to 1.17 mil. euro after an audit by the Customs of Keratsini. 2. Contract for the exploitation of a marble quarry On13/10/2022 the Company entered into an agreement for the contractual exploitation of a 50-acre marble quarry in Mantria, in Drama Prefecture, in the regional unit of Drama, for a 20-year term. 3. Payment of 33,3% of the500,000 Euro refundable advance In 2020 the parent company received an amount of 500,000 euros in the form of a refundable advance based on Ministerial Decision (KYA) ΓΔΟΥ 94/2.5.2020. According to ΓΔΟΥ 1054/15.11.2021 a business may pay 33,3% as long as it maintained the levels of employment and received an extra 15% deduction on the remaining amount due to its payment in full. The company recognized a benefit: • According to ΓΔΟΥ 1048/15.11.2021 an amount of 250,000 euro in the results of fiscal year 2021, as it met the conditions of not repaying 50% • According to ΓΔΟΥ 1054/15.11.2021 an amount of 108,250 euro in the results of fiscal year 2022, as it met the conditions of paying 33,3%. The company eventually paid the amount of 141,750 euro, receiving an extra deduction of 15% on the remaining amount due to its payment in full. 4. Decisions at the Ordinary General Meeting of the Company's Shareholders On 16 June 2022 the Ordinary General Meeting of the Company's Shareholders convened and decided, among other things: 1. The approval of the annual Financial Statements for the year 01.01 – 31.12.2021, in accordance with the International Accounting Standards, as well as the relevant reports of the Board of Directors and the Certified Auditor - Accountant. 2. The approval for the non-distribution of dividend to the shareholders for the year 01.01 – 31.12.2021. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 22 3. The approval of the overall management of the Company, according to article 108 of Law 4548/2018, as in force, and the exemption of the Company's Certified Auditors from any liability for compensation for the corporate year 01.01 - 31.12.2021, according to article 117, par . 1, case c of Law 4548/2018, as in force. 4. The election of a regular and an alternate Certified Auditor - Accountant for the audit of the Financial Statements of the corporate year 01.01 – 31.12.2022. 5. To allow the members of the Board of Directors to participate in Boards of Directors or boards of directors of other companies with competitive or non-competitive purposes of the Company, according to article 98 of Law 4548/2018. 6. The approval of the Remuneration Report of article 112 of Law 4548/2018 (for the paid fees for the corporate year 01.01 – 31.12.2021). 7. The pre-approval of remuneration and compensations of the Board of Directors for the corporate year 01.01 – 31.12.2022 8. The approval of purchasing own equity. 9. The approval of the Remuneration Policy in accordance with the provisions of articles 109 and 112 of Law 4548/2018. 10. The Chairman of the Audit Committee informed the shareholders about the actions of the Committee during the corporate year 2021 and the submission of the Committee’s annual report, according to article 44 par. 1i of Law 4449/2017. 11. Other Announcements. 5. Development of the business plan of the company Iktinos Techniki and Touristiki SA The company IKTINOS TECHNIKI & TOURISTIKI SA is active in the real estate industry. It owns an area of about 2,689 acres, of which about 556 acres are on the seaside in the bay of Faneromeni in Sitia, Crete, and the remaining 2,133 acres are one thousand meters south of the Sopata Mesorachi plateau of the Municipality of Sitia in Crete. The Group's Management is in contact with investors for this business plan but without a final agreement at this time. 6. Approval of cost subsidy by OAED In the context of monetary claims for a salary cost subsidy, arising from the provisions of article 21 of law 1767/1988 (A’ 63), as replaced by article 32 of law 1836/1989 (A’ 89), the company filed lawsuits against the Public Employment Organisation (O.A.E.D.) and the locally competent offices of the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 23 Organization in Drama, Eleftheroupoli, Chrysoupoli and Thassos before the Three-Member Administrative Court of First Instance of Kavala. Pursuant to article 87 of law 4706/2020 (A’ 136), article 26 of law 4722/2020 (A’ 177), Ministerial Decision (K.Y.A.) number 47284/359/17-11-2020 of the Ministers of Finance and Labor and Social Affairs (Β΄5080) and the circular of O.A.E.D. with reference number 72751/25-11-2020 (ΑΔΑ: ΨΩΕΙ4691Ω2- 3ΣΕ) offsetting can be carried out for the above outstanding claims of the beneficiaries until 31.12.2015, if they wish, with existing ones and then with future claims of the tax administration; while withholding and refund of the withheld amounts are carried out for corresponding claims of the Social Security Institutions, provided that the beneficiary waives the right and withdraws from court proceedings (if he has already appealed to court), in which he claims monetary amounts for the years 2010 to 2015. Based on the above applications, the company received approval decisions for offsetting the amount of 0.2 mil. Euro, while it had already received the amount of 0.8 million euro in 2021. 7. Submission of a request for completion of 50% of the investment program in Industreal Area The company submitted a request to complete 50% of the investment program of the Development Law 4399/2016, in the factory at the Drama Industrial Area, worth 4 million (it is expected to offer a tax exemption of 1.4 million). It had received an approval decision with Prot. No. 5473/ 25-02-2020 of a total supported cost of 6.8 million euro. 8. Tax certificate with the conclusion "without reservation" After the completion of the special tax audit for the year 2021 carried out by the company of certified public accountants GRANT THORNTON, the company received a tax certificate with a conclusion “without reservation”. 9. Grant of new Bond Loan for 7 mil. euro (completed on 3/3/2023) The subsidiary company IDEI SA received a 7 mil. euro bond loan from Piraeus Bank for a 7 year term and interest 3%. It also proceeded with a reduction of Share Capital in the amount of 8,425,000 euro with a reduction of the nominal value of the share by twenty-five (25) euros, from 60 euros to 35 euro, with the aim of returning capital of 8,425,000 euro to the parent company IKTINOS HELLAS and a corresponding amendment of article 5 of the Company's Articles of Association. 10. Repayment of a short-term loan of EUR 1.79 million (completed on 3/3/2023) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 24 The company proceeded to the payment of an existing bank loan amounting to 1.79 million euro to Piraeus bank, which had been granted pursuant to the Open Mutual Account Agreement no. 2511537/28.07.2006. 11. Quarries exploitation The Company continued in 2022 with the implementation of its investment plan, transition to the underground mining system at its main quarry in Volakas, which will allow it to fully respond to the increased demand in higher quality marble. The underground mining system at its main quarry in Volakas, aims to direct the healthy deposit through underground paths without the obligation of surface exposure and disposal of sterile by-products and will allow it to fully respond to the increased demand in higher quality marble. This adjustment to underground mining caused a reduction in production, which affected the year's results. The underground mining brought to the Company a high cost of exploration and evaluation of the mineral resources, which amounted to approximately 2,340,655 euro, which were capitalized in accordance with IFRS 6. The company also proceeded with exploration expenses in the quarries of Nestos, Taousianis and Pyrgoi which amounted to 452,674 euro and were capitalized according to IFRS 6. C. PROSPECTS AND ANTICIPATED DEVELOPMENT FOR 2023 • MARBLE SECTOR In 2023, we predict a strengthening of trade transactions with China, as its economy recovers and restrictive measures against the pandemic are lifted. A positive sign is also the fact that the international marble exhibition held in Xiamen (city in China) has been set for early June, after three years of cancellations due to the coronavirus. Based on current market conditions and assuming normalization of trade and continued marble exhibitions globally, the ICAP study published in February 2023 predicts marble exports to increase in the coming years. In particular, the demand for marble from foreign countries is estimated to follow an upward trend in the years 2023-2025 with an average annual growth rate of approximately 12%. Another important element that will strengthen the competitiveness of our products abroad is the improvement of mining and processing technologies and the development of innovative methods, with the aim of better utilizing Greek Marble. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 25 Management closely monitors the developments of the world market and estimates that it will further reduce production costs, due to the better performance of the production process both qualitatively and quantitatively, as a consequence of its investment program of the last three years. In the second half of 2023, the company will operate four new quarries in Greece, two white marble quarries in Drama and two new quarries in the Livadia, one beige marble quarry and one gray marble quarry. Also, in the same period, the extraction of marbles is scheduled to begin from the extension to the existing Volakas quarry in Drama. Therefore, the turnover is predicted to be improved compared to 2022, it is estimated that the turnover in 2023 will be increased by 12% compared to 2022. At the same time, the company has sufficient cash available and appropriate financial tools - financing lines from the banking system to be able to cope with current financial obligations. The company is in constant search to find new deposits, in more than 10 areas in N. Greece and abroad. • AEOLIAN ENERGY SECTOR The Group is active in the sector of the aeolian energy through the subsidiary company IDEI SA, which is managing the operation of an aeolian park of a power of 22 MW, which is located at “Megalovouni’’ of the Nikiforos Municipality of the Drama Prefecture. The company IDEI SA extended the contract for the sale of wind energy with the RES & Guarantees of Origin Administrator (DAPEEP) with fixed sale prices (0.086 / kw) for another 10 years (until 3/2031). For the next period after the expiry of the 10-year term, it will continue the auction process to determine the sale price. The Group redesigns its presence in Renewable Energy Sources, maintaining only one 3MW license so as to obtain a guaranteed sale price for the electricity produced. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electricity as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the aeolian energy sector. • REAL ESTATE SECTOR The Group’s activities in the sector of Real Estate through the subsidiary IKTINOS TECHNIKI & TOURISTIKI S.A. are on course towards their implementation. A result of this will be the future increase of the value of properties and the proportional improvement of the results of the Group’s investment activity. The company is looking for an investor to implement the business plan, while it has prepared a viability study for the investment by the company HORWATH HTL. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 26 D. NON-FINANCIAL STATEMENT OF THE MANAGEMENT REPORT This report presents the strategy for achieving ESG sustainability goals of the company IKTINOS SA (hereinafter "Company"), the policies, the actions and the evaluation of their effectiveness. It meets the requirements of Law 4548/2018 and especially articles 150 par. 2c and 154, but also the directions of the ESG Reporting Guide of the Athens Stock Exchange, 2022 edition, and more specifically ➢ Business Model ➢ Objectives and Strategy ➢ Sustainable Development Policy ➢ Environmental issues ➢ Notifications related to article 8 of the Taxonomy Regulation ➢ Social and employment issues ➢ Corporate governance issues 1. Brief description of business model The report covers the actions of the Company, as described in the following business model. IKTINOS S.A. is one of the largest Greek companies in the extraction, cutting, processing and applications of marble in architecture and sculpture. It has been active both in the Greek and global markets since 1975. During 2022, the company operated 8 quarries in Drama, Thassos and Kavala, it has three processing factories and three storage areas for its products. The factories are fully vertically integrated units, which are equipped with the most modern machinery for cutting, processing and finishing marbles. The total production capacity of all the company's factories in slabs and squares amounts to more than 1,000,000 m 2 per year. The Company is purely export-oriented, as its exports amount to more than 95% of its turnover, in more than 90 countries with the main markets being China, South-East Asia, USA, Arab Gulf countries, Latin America and Europe. The Company's primary goal is to strengthen its position in the global market, pioneering technology and quality by applying modern processing technologies, which significantly contributes to the creation of an excellent high-quality final product. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 27 The company's experience, reputation, know-how and infrastructure in terms of people, systems and equipment are a significant asset for all stakeholders and have given it the required credibility worldwide to continue its upward course. The Company, in addition to mining and processing, has an important commercial department that provides its partners, customers and suppliers, with an integrated system of commercial services in the fields of sales, marketing, and logistics, being an integral link in the supply chain. Among its primary goals is the successful ongoing development and establishment of its products in the Greek and international market. 2022 was the year of further assimilation of ESG criteria and continued intensification of efforts towards Sustainable Development goals and the integration of ESG criteria into the strategy and operating model. Continued inclusion in the ATHEX ESG index since 2021 encourages us to continue raising the bar in terms of goals in managing global challenges such as climate change, diversity and inclusion, the energy crisis of the pandemic and challenges arising from the war in Ukraine. In addition, following closely all the developments and institutions of Sustainable Development, the Company has begun since 2023 to implement the necessary adjustments to its operating model towards harmonization with the upcoming EU CSRD directive, such as double materiality and communication with customers and suppliers on the necessity of collecting ESG data in the value chain. At the same time, it continues with undiminished intensity its focus on the development of know-how and technology, and in cooperation with Universities and research bodies, we are constantly improving our operational model by eliminating any operational imperfections thus optimizing our productivity at the level of human resources, mechanical equipment and physical resources while at the same time reducing our costs and footprint by maintaining an ever-increasing course in the quality/price ratio and improving the ratio of production volume/required natural resources. At the same time, we continue our market research both at home and abroad, expanding our partnerships, steadily improving our pioneering position in the global market. Being one of the country's leading companies in the field of marble mining and processing and having completed 49 years of operation in 2022, at IKTINOS HELLAS SA we want to remain a company whose operating model goes beyond the conventional and includes the contributions of an organization to the triptych People, Planet, Profit 2. Objectives, Policies and Strategic Analysis The Company aims through a holistic approach to record and evaluate the environmental and social dimensions of the actions as well as the development of the best corporate governance methods. It takes care to assess the way in which they affect the parties involved, to assess their expected Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 28 performance through systematic evaluations, to value their performance through comparable and documented measurements and to identify priorities that will lead to continuous improvement of sustainable practices. And ultimately to create value for all stakeholders. The Company's aim is to implement at least the requirements arising from the actions of the European Green Deal and the Greek Code of Sustainable Development. To achieve the above goal, the Company: ➢ Develops strategy within the framework of Sustainable Development; ➢ dynamically identifies the social partners involved; ➢ Adapts its operations with the greatest environmental and/or social impact; ➢ Sets goals; ➢ Selects actions to achieve. For all the above actions, the Management's decisions are taken with transparency, integrity and respect to the principles of corporate governance, prioritizing the safety of employees, the protection and inclusion of the local communities in which it operates, the rehabilitation of the quarries, and the maximization of the offered product/price relationship for customer/consumer satisfaction. Through regulatory compliance, we create a culture of transparency for all our stakeholders, minimize the risks that may affect the company, its human resources, the local communities where we operate and the wider Greek society. In this context, the following Policies, Regulations and Codes apply: • Anti-Corruption and other Conflicts of Interest Policy • Code of Ethics for employees • Code of Conduct for suppliers • Code of Human Rights and Social Principles • Personal Data Protection Policy • Complaints Management Policy • Related Party Transactions Policy Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 29 • Non-Misuse of Privileged Information Policy • Sustainable Development Policy • Sponsorship and Donation Policy • Anti-Discrimination, Violence and Harassment Policy The Company's Sustainable Business Strategy and Value Creation is summarized in the graph below Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 30 3. Sustainable Development Policy The Company follows the Guidelines of the ESG Information Reporting Guide 2020 of the Athens Stock Exchange and the Greek Sustainability Code. IKTINOS SA approach to sustainable entrepreneurship is based on innovation, the continuous expansion of new markets and the establishment of more efficient and effective processes, in ways that lead to the development of new markets while reducing the operational footprint. In this approach, all the stakeholders of the company play a very important role and therefore special importance is given to the interaction with all interested parties. In this area, the Company is preparing for the upcoming CSRD changes by laying the foundations for double materiality and expanding the stakeholders and the scope of material issues. The Company's business model is part of defined value chains with defined cooperating social partners. The Company's Management is committed to continuing the evaluation of the Company regarding the environmental and social cases of its activities, and more specifically: ➢ Regarding their environmental footprint both directly and indirectly. ➢ The management of resources with environmentally positive choices. ➢ The safety and health of employees during the performance of their duties and beyond that. ➢ The maintenance and improvement of a work environment of equal opportunities, free from unacceptable forms of work relationships. ➢ Working relationships governed by transparency, integrity, commitment, trust, creativity, teamwork. ➢ The promotion and improvement of the professional training of employees. ➢ The excellent offered quality of its products to its customers in correct relation to their estimated value. ➢ Respect for human rights. ➢ The fight against corruption, bribery and fraud. ➢ Its positive involvement in the standard of living of the local communities in which it operates by contributing to work, social cohesion and the improvement of public infrastructure Regarding the safety of its employees, which is a key concern, the Company implements a strict health and safety policy in order to maintain the accident rate at zero levels. The Company is constantly vigilant regarding the health and safety of its employees, fully implementing the ISO 45001:2015 "Occupational Health and Safety Management Systems". For the implementation of the above, the Group's Management has committed to providing all the required resources and has placed their implementation at a high level of priority. For this reason, the company has prepared a Corporate Responsibility and Sustainable Development Policy and is about to issue the third report for the year 2022. Sustainable Development Management Model Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 32 STAKEHOLDERS - Stakeholder engagement Based on its principles, values, activities, strategy, market, proximity to local communities, every year IKTINOS HELLAS SA redefines its stakeholders, which belong either to the internal environment or to the external environment of the company and include those groups that it affects and/or are affected by it, in the entire range of its business activities. The systematic and mutual communication with the interested parties is the basis for the evaluation and planning of the actions and practices of the company, in the context of the approach to managing Sustainable Development issues and assessing risks and opportunities. Regarding the active involvement of interested parties, the Company uses a variety of mechanisms that facilitate two-way communication; indicatively, information mechanisms such as general assemblies, meetings with department managers, two-way communication with business and investment bodies, informative meetings with employees, regular meetings with institutional actors, complaint management, regular communications with local communities, face to face meetings with local bodies. The Company's methodology for the stakeholder management process consists of the following stages: ✓ Establishing the process ✓ Identification of stakeholders ✓ Definition of all items for evaluation ✓ Collection of evidence supporting the materiality of the issues ✓ Cooperation with the involved parties and validation of the findings ✓ Actions based on materiality results ✓ Communication of findings and comments ✓ Dynamic review, monitoring and updating of the materiality assessment process. The organisation of this communication derives from the type of relationship with the stakeholders, in order to satisfy their expectations and needs, to prioritize the issues that concern them and subsequently, to have their active participation in the implementation of the Sustainable Development Strategy of company. Through a thorough and adaptable process, the Company recognizes the following stakeholders that are taken into account when evaluating the material issues: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 33 ✓ Shareholders: We seek to protect their investment and ensure a satisfactory return on their funds with conditions of transparency and substantial information. ✓ Customers: We strive to provide products and services that meet their needs. ✓ Employees: Human resources are valuable. The respect of their rights and the emphasis on their safety and development is a necessary condition for the achievement of the Company's goals. ✓ Partners: We believe in mutually beneficial relationships with suppliers, partner firms and partners of the Company. ✓ Local Communities: We aim at the greatest possible added value that we can offer to the local communities where the Company operates, offering and contributing to the reduction of unemployment but also offering social work such as donations to schools, cultural institutions, social groups in need, restoration of old quarries through tree planting, etc. ✓ Research, University groups and industry liasons with whom it collaborates to disseminate best practices and develop technology and know-how to further reduce the footprint of the marble industry and further improve costs. ✓ Society: We believe that the socially responsible operation of businesses contributes to the progress and well-being of society. For all the above social partners, the Company has developed stable communication channels and maintains action plans and follow-up measures in order to identify risks in a timely and efficient manner and highlight opportunities. The coding used, the definitions and the evaluation/measurement method are based on the ESG Reporting Guide of the Athens Stock Exchange (version 2022), from which the most important indicators regarding the Company's activity and materiality assessment were selected. For the implementation of the strategy as well as the Company's successful response to the key and material criteria of each objective, the individual areas of action and the assessment of their impact are presented. Environment For the planning, dissemination and implementation of actions that are part of environmental management, the Company is committed to a policy of promoting environmentally friendly actions and options as follows: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 34 ➢ To comply with the requirements of the applicable Greek and European environmental legislation that refer to the Company's activities. ➢ To determine the environmental objectives and monitor their systematic implementation. ➢ To choose actions to prevent environmental pollution, the prevention of any environmental accidents and the reduced production of waste as much as possible and practices and methods to save natural resources and in particular energy and water. ➢ To restore any negative environmental impacts due to the operation of its quarries (tree planting, backfilling). About 5,000 seedlings are planted for the restoration of processed areas in the quarries it operates. ➢ To use environmentally friendly methods and materials in all its activities, e.g. underground mining. ➢ To communicate its policies and initiatives to customers, subcontractors, suppliers and all staff, with the aim of optimizing the alignment of all stakeholders with our environmental principles. ➢ To continuously educate and raise awareness of executives, employees and partners. Energy consumption and production From the observed data it follows that the total energy consumption in 2022 amounts to 4,872.22 MwH. SCOPE 2 ELECTRICITY (kWh) EMITIONS (CO2) metric tons 4.872.220 2.108 (*) * It does not include any reduction due to the provider's % from RES In 2022, the Company took actions to reduce the intensity of electricity, such as upgrading the technological equipment in its facilities (Intensity of Scope 2 emissions), by 3.2% which is mainly due to the more direct access to the marble deposits. The installation of new state-of-the-art mechanical equipment at the new factory of Drama has increased production capacity and reduced production costs and, thus, energy costs. As mentioned above, the Company's strategy includes actions and practices to reduce emissions. Within this context, the Company develops electricity production activities in a wind farm with a total potential of 24 MW through its subsidiary IDEI SA. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 35 In addition to electricity, the Company purchases and consumes diesel and petrol in the following amounts: SCOPE 1 FACTORY FUELS DIESEL PETROL EMISSIONS tons CO2 1,461,971 0 3,918 TRANSPORTATION & COMPANY CAR FUELS DIESEL PETROL EMISSIONS tons CO2 196,490 13,680 526.5 + 32 =558.5 Waste management The Company implements the appropriate waste management best practices per activity. For all waste, there are collection and environmentally safe disposal contracts with specialized waste management companies in accordance with current legislation. Waste falls into the following categories: Hazardous and Non-hazardous Hazardous waste concerns oils and resins. The Company collects this waste in special bins and licensed areas which are delivered under contract to licensed recipients who either destroy it based on a special procedure or recycle them in other industrial production units. The non-hazardous waste from the operational activity, including marble chips, mud and wood, is collected and forwarded to licensed disposal sites, part of which is reused in the restoration of quarries or transferred to licensed partners with the largest percentage of this waste exceeding 90% in total being recycled in embankments, road construction, etc. TYPE OF WASTE QUANTITY (tn) HAZARDOUS 29.3 NON-HAZARDOUS 2,333.68 Wastewater from staff is channeled per facility through liquid waste disposal tanks. In all cases the Company has Contracts with approved waste management companies. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 36 Wastewater Disposal The Company has installed and operates biological refinement of sewage and wastewater resulting from its activity in all its quarries and production plants, with the aim of reusing it and thus protecting the country's water resources. Water consumption The Company's facilities are supplied with water from municipal networks and their consumption amounted to 27,145 m3. The Company has minimized water consumption, which is usually burdened in the marble industry, having developed water recycling technology for the needs of the operation of all its facilities and achieves water recycling by 50.3%. During the mining activity in quarry units, water is led to naturally formed reservoirs, cleaned by natural sedimentation from the mud and finally pumped to regional reservoirs for reuse, achieving a recycling rate of 50%. Similarly to industrial treatment plants, the used water is collected through channels in silos, where the mud is also flocculated and clean water is reused, while the mud is filtered and removed to suitable recipients. Environmental Care Since 2018 IKTINOS HELLAS has been applying, with satisfactory results, the underground mining method, achieving selective attack and extraction of the marble-bearing material and limiting the environmental footprint. Through innovative methods and with the help of new technologies, it is possible to extract better quality marble and a greater amount of raw material from the core of the deposit with the minimum loss of resources. Based on the harmonious combination of surface and underground exploitation, the new method is more environmentally friendly since it does not alter the morphology of the mountain and does not need extensive restoration. In the context of the implementation of circular economy practices, the application of a technologically innovative method for saving problematic marbles continues, glued with resins and reused without damage or loss. With the aim of strengthening the business environmental culture, the company plans actions to raise awareness of the interested parties on environmental issues such as: • Informing the administrative staff about environmental management issues, • Informing and raising awareness of other interested parties on issues of sustainable development and related actions of the Group. Areas of Sensitive Biodiversity With the main goal of protecting Biodiversity, targeted and systematic activities are organized by the company in collaboration with the competent authorities. The company systematically restores its marble Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 37 quarries after the end of their mining activity, through tree planting, restoration of vegetation by planting and/or sowing suitable species (herbaceous, shrubby, etc.), as well as operation and maintenance of the irrigation network. The amounts for the above actions are guaranteed, given that the company files relevant letters of guarantee. Specifically, in the Volakas quarry, which has been designated as a protected area, the Company operates 100% with the underground mining system, eliminating any possibility of burdening the environment and biodiversity. As a whole, the Company operates with underground mining at a rate that reaches 70%. In both underground and surface mining, the Company's mechanical equipment for cutting and processing the marbles works with water injection. This process prevents the creation and transfer of marble dust, protecting both the environment and the workers. By inecting water, dust is deposited on the ground and transported to specially designated areas where the collection process is followed as mentioned above. Ensuring quality, infrastructure security and business continuity IKTINOS HELLAS SA gives great importance to ensuring that its vital infrastructures will continue to operate in case of serious and extraordinary incidents and if affected in any way, they will continue to operate in alternative ways, immediately restoring the critical business processes within predetermined time frames. Similarly, it is ensured that possible adverse situations that may occur, will not affect the quality of products and services. Prioritizing the security of the infrastructure and operations, as well as reducing the environmental footprint, IKTINOS HELLAS SA takes care of the uninterrupted and efficient operation of its infrastructure, at the same time giving due importance to the health of the human resources and the protection of the environment. The business continuity system that has been developed provides the framework that makes the company's operations resistant to malfunctions, ensuring that vital facilities will continue to operate in the event of serious incidents and in the event of an interruption due to force majeure, it will be possible restore them within specified time frames so that critical business processes can continue. Sustainable Economic Activity (EU Taxonomy) In relation to the European Taxonomy System (EU Taxonomy), the Company examined its financial activities with the activities included in Taxonomy Regulation 2020/852/EU, as supplemented by Regulation 2021/21/EU and the Regulation 2021/ 2139/EU. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 38 Based on the company's activity, there are no expenses related to the economic activities eligible for taxonomy for the year 2022. Society The effects of its activities are assessed and measures are planned to improve the footprint of specific actions of the Company, together with the social partners. The Company is committed: ➢ To implement programs to support society as a whole with special emphasis on local communities ➢ To adopt with careful supervision programs for the health and safety of the human resources, as well as training and continuous learning programs ➢ To develop and maintain health and safety conditions for employees, which will at least meet the legislative and regulatory provisions. ➢ To continuously assess and manage risks by job position. ➢ To act preventively, so as to avoid accidents and diseases at work. ➢ To spread the same culture of employee health and safety to partners, suppliers, partner firms and other partner organizations, ensuring that everyone has understood their roles, responsibilities & obligations. ➢ To set measurable parameters to monitor the course of the above commitments and business goals. ➢ To provide continuous training for the active participation of all employees in an effort to continuously improve health and safety conditions at work. ➢ To systematically assess and evaluate progress and performance, according to the opinion of the employees and the measurement results of the objectives set for each of the selected parameters. To document the initiatives and policies that contribute to this goal, the Company has developed policies and systems, for which it has obtained corresponding certification. In particular, the Company has the following certifications and policies: Corporate Governance Code The Group has adopted the Greek Corporate Governance Code for listed companies. The Corporate Governance Code consists of a set of rules that regulate the way in which the Board of Directors operates in relation to the company's shareholders. According to these rules, the goal is the responsible organization and operation of the Group with the ultimate goal of maximizing its value and protecting its shareholders’ interests. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 39 Code of Ethics The Code of Ethics outlines the principles and rules of engagement towards employees and stakeholders. It confirms the Management’s firm commitment to comply with the legislation and regulations, it reflects the ethics of the Group and it is the guiding framework of the behavior of all employees towards all stakeholders. The pillars of application of the Code of Ethics are: • Professional Conduct Principles • Business Relations • Protection of Information ISO 9001:2018 Quality Management System The ISO 9001:2018 Quality Management System concerns all the procedures and policies applied by the Group, so as to provide high quality services, using effective ways of performing the obligations it undertakes towards its customers. ISO 45001:2018 Health and Safety Management System The Group aims to adopt practices that ensure the quality of its products and services. In this context, the competent Department has developed a specific methodology for assessing the risks posed by an activity or a product to human health as well as to the protection of the natural environment, and all risks have been analyzed and quantified. This assessment is mainly related to ISO 45001:2018 (Occupational Health & Safety) & ISO 9001:2015 standards. Anti-Corruption and other Conflicts of Interest Policy The Anti-Corruption and Conflict of Interest Policy provides the framework for avoiding corruption and other conflicts of interest in relationships with customers and business partners. Binding Rules for the Protection of Personal Data These Rules contain the main conditions for the processing of personal data of both customers/suppliers and employees of the Company in accordance with the applicable Greek and European legislation and ensure the high level of protection of personal data. Non-Misuse of Privileged Information Policy The Non-Misuse of Privileged Information Policy describes the responsibilities and obligations of employees regarding information that is considered privileged. Risk Management & Regulatory Compliance Unit Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 40 It is about ensuring the smooth, safe and efficient operation of the Company, through the identification, assessment and management of risks linked to the activities, procedures and policies, the Group's operating systems and legislation. Sustainable Development Policy This Policy defines the strategy and general action plan for Sustainable Development of the Group and its related companies, taking into account both the existing social and economic conditions as well as the cultural priorities and challenges. Related Parties Transactions Policy This Policy describes the way of handling issues related to the Group's transactions with Related Parties, based on the applicable legislation and Law 4548/2018. IKTINOS HELLAS S.A. Code of Human Rights & Social Principles This Code adopts standards of professional operation and behavior, creates business value and is guided by business ethics, elements that contribute to the foundation of its shareholders’ trust as well as all interested parties. It complies with internationally recognized regulations, directives, standards, specifically the United Nations Universal Declaration of Human Rights, the United Nations Global Compact and the Guidelines of the Organization for Economic Cooperation and Development (OECD). Sponsorship/Donation Policy This policy is an important pillar of the Group's strategy for supporting initiatives that focus on social responsibility. In the context of the policy, a number of social, humanitarian and cultural purposes and activities are supported through donations and sponsorships. IKTINOS HELLAS implements responsible human resource management practices and ensures the creation of a modern and safe working environment with equal opportunities, adherence to a merit- based evaluation system while also taking care of hygiene and safety in the workplace. It is important to invest in the development and maintenance of a high level of staff and to carry out relevant training programs. In particular, the Company invests in: ➢ Continuous training and development of human resources: The company designs its training and development strategy every year, steadily investing in the strengthening of human resources at all levels, so as to strengthen the knowledge of human resources, in the context of market changes and continuous demands. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 41 ➢ Full utilization of the distinct abilities of each employee ➢ Promoting a unified culture and strengthening the alignment of the system of values and behaviors of human resources. In addition, the Company adopts practices and policies of equality and meritocracy: ➢ There is no salary difference between the 2 genders in relation to the job position. Recruitment and evaluation procedures are based on the qualifications, performance and skills of applicants or employees without regard to gender, origin, race, religion, age, character or any other characteristic that may differentiate one person. ➢ The Company pursues equal participation of employees regardless of gender, race, religion and other characteristics within the framework of the equal opportunities policy. ➢ Remuneration and Benefits: The company has designed a remuneration system, which rewards employees according to their performance and the value they add to the company, while it is assumed that there is no difference in remuneration regardless of gender. ➢ Rewarding: Great emphasis is given to the recognition and rewarding of human resources both at individual and group level, in order to ensure their continuous development and competitive advantage, through bonus programs, private hospital-pharmaceutical care, etc. ➢ Retention of high potential employees: the selection of the right employees for the right positions is a permanent pursuit. The human resources department ensures the utilization and retention of the company's executives, as well as the attraction of experienced and capable executives from the market. From the recorded data, the percentage of female employees in administrative positions in 2022 amounts to 25%. In addition, 100% of employees in Greek companies are covered by collective employment agreements. During fiscal year 2022, there were no violations of employment law by the Company. Regarding Health and safety, apart from those mentioned above, IKTINOS HELLAS harmonizes international standards and Greek legislation by applying the international standard ISO 9001, ISO 45001 for the management of all issues related to the health and safety of human resources, in all work aspects and activities, with a special emphasis on the prevention of risks, investing in the continuous improvement of the working environment and the minimization of risks. In addition, the Company conducts: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 42 ✓ Safety Inspections and emergency care: safety inspections carried out at frequent intervals, are intended to further contribute to the improvement of workplace safety in all industrial facilities. ✓ Risk prevention measures: All activities in the industrial facilities are carried out based on the assessment of the risk that exists for the working staff. Therefore, where the need to control or reduce risk is identified, measures are chosen to prevent the emerging risks, so as to reduce risk to the lowest possible level. Regarding the actions of the Company in society as a whole, but also in particular in the local communities in which the Company operates: ✓ It contributes to strengthening social cohesion by supporting local bodies and socially vulnerable groups; ✓ It assists the local communities in which it operates, which suffer from high unemployment rates, through the creation of new jobs, cooperates with external local contractors and other professional groups from the local community, etc. ✓ In 2022, paying attention to the difficult economic conditions of the last years, IKTINOS HELLAS S.A. responded to a number of requests to strengthen local social structures, in cooperation with social bodies, competent authorities, associations, the Church and non-profit organizations that support vulnerable groups of the population. Through donations and sponsorships, it supported a number of social, cultural, sports and other needs. Suppliers Assessment The Company evaluates its key suppliers. They indicatively include: • Mechanical equipment suppliers • Transport project service providers • Service providers The recorded assessment actions for 2022 concern general quality, safety and compliance characteristics in the context of the delivered project. The Company plans to extend the assessment in 2023 to ESG actions implementation parameters in line with the upcoming EU CSRD directive. Marketing practices Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 43 The Company is committed to transparent and socially acceptable presentation and advertising of its products, respecting good advertising and communication practices. The Company applies the relevant regulatory provisions and rules of ethics regarding the labelling, advertising, promotion and communication of its products, Customer satisfaction The Company, based on its operating procedures and ISO 9001 quality standards, conducts surveys with structured questionnaires to assess the level of satisfaction of its customers. Customer complaints management mechanism As part of the development and implementation of ISO 9001 quality standards, it has developed and implemented customer complaint management procedures. These procedures are intended to maintain the level of customer satisfaction and to ensure sufficient information, so that the Company can take adequate corrective actions. Corporate governance In the context of corporate governance, the Company adheres to the principles of corporate governance as described in the Greek Corporate Governance Code issued by the Hellenic Corporate Governance Council in June 2021 and the indicator of the Stock Exchange. Specifically: Composition of the Board of Directors Based on the composition of the Company's Board of Directors, which is described in detail in the Corporate Governance Statement, the Chairman of the Board of Directors and CEO of the Company is an Executive member of the Board, the percentage of the female members of the Board amounts to 57%, Non-Executive members constitute 43% of the Board, while Independent Non-Executive members constitute 28% of the Board of Directors. Personal Data The company has fully complied with the General Data Protection Regulation (GDPR), given the application of the EU Regulation. Data security policy The Company recognizes the importance and criticality of information systems security, equally evaluating the security of archived and active data, which must be protected from total or partial loss, Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 44 whether due to accidents, human errors or malicious actions, possible loss or data breach, ensuring continuous business activity and continuity. Corporate security policies ensure the confidentiality, integrity and availability of systems and data. The protection requirements of the systems are determined by the following: ➢ Assurance: Ensuring that the system operates according to specified specifications. ➢ Authentication/Identity verification: Ensuring that interacting users or applications must be verified/authenticated to ensure their identity. ➢ Accountability/Audit TraiI: Users are responsible for their actions. Monitoring and analysis of logs to detect possible actions to bypass security mechanisms. ➢ Access control: Systems access control. Access is granted strictly to those who are entitled to or justified by their role (permanent or ad hoc) in the organization. ➢ Secure Data Transfer: Secure data transfer with confidentiality in transit and ensuring that data is transmitted intact and accurate/complete. ➢ Reliability of systems/services: Systems, data and services are always available when needed. Digital Transformation The company, constantly implementing actions aimed at its digital transformation, systematically invests in new technologies - innovations, continuously develops their functions and pursues their continuous improvement. Specifically: ➢ The company is working with the National Technical University to develop an integrated system to monitor surface and underground mining. Among other things, the specific system will help to enhance productivity, protect the company's employees and protect the environment. ➢ The company has already implemented its digital transition to the cloud, both in terms of online information for specific departments of the company, as well as key tasks of storing its data. Having already shielded its data through a firewall, it uses appropriate tools, in order for two-way communication with its remote points, e.g. quarries, etc., to be carried out quickly and safely. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 45 ➢ The Company is constantly modernizing its technological equipment, whether it concerns new servers or replacing PCs, end users (desktops, laptops, etc.), while it has proceeded to replace its network with new modern equipment based on the use of optical fibers. ➢ A barcode system was implemented in the production of marbles together with the corresponding application for registration and photographs which are "uploaded" to the company's cloud, so that they are immediately accessible to all interested parties (sellers - customers). The company's corporate reputation is considered one of its major competitive advantages. It is treated as the result of its business ethics, integrity and reliability to customers and suppliers, product quality, financial performance, strong presence in the media, acquired awards and the application of the principles of Corporate Responsibility. Business ethics policy The Company has prepared a Code of Business Conduct and Ethics, which includes the values and principles that the Group advocates, the manner and measures for implementing the rules of the Code. The general principles described in the Code, taking into account the principles of corporate governance, are based on the values of integrity, impartiality, entrepreneurship, professionalism, transparency, social and environmental responsibility and respect for human rights. By complying with the Code, all employees, among others, have a responsibility to: ➢ avoid conflict of interest situations ➢ avoid preferential use of suppliers for personal reasons ➢ ensure the transparency of transactions with government authorities ➢ preserve business confidentiality ➢ ensure the integrity of financial data and reports. During the fiscal year 2022 there was no incident related to corruption. GENERAL CONCLUSIONS Based on the above documentation of actions and performance indicators measured in objective ways, the Company comes to the general assessment that: - The Company's activities as a whole have a moderate environmental impact. Specialized actions will be designed to improve the environmental performance of certain activities. - The Company applies policies and procedures with respect to its social partners and commitment to compliance with rules and legal requirements. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 46 - It operates within the framework of best practices and corporate governance rules. The Company operates in the context of continuous improvement and further expansion during fiscal year 2023 of the actions included in the ESG scope. Ε. DESCRIPTION OF THE MAIN RISKS AND UNCERTAINTIES FOR THE FISCAL YEAR 2022 The Group and the Company are exposed to financial and other risks. The general risk management program of the Group aims at minimizing their potential negative impact on the financial performance of the Group. The basic risk management policies are formulated by the Group Management. The Finance Department monitors and handles the risks to which the Group is exposed, determines, assesses and, where necessary, counterbalances the financial risks, in collaboration with the departments facing those risks. Furthermore, it does not conduct transactions for profit, which are not related to the commercial, investment or loan-taking activities of the Group. More specifically as regards those risks, we note the following: 1. Foreign Exchange Risk The Group’s operating currency is the Euro. The Group conducts the largest part of its transactions in Euro, which leads to the immediate foreign exchange risk being limited. Nevertheless it also conducts commercial transactions at an international level, outside the Euro, and therefore it is exposed to zero foreign exchange risk, coming mainly from the US Dollar. Those transactions relate to a minimum part of the activities and therefore the foreign exchange risk is very limited. 2. Credit Risk Credit risk is the risk of potential delayed payment to the group of the counter-contracting parties’ current and potential obligations. The Group’s exposure to credit risk comes mainly from the cash and cash equivalents, the trade and other receivables. The Group does not have a significant concentration of credit risk with some of the parties it has contracted with, mainly due to the large spread of its customer basis. The Group’s wholesales are made on the basis of its internal operation principles, which ensure that the sales of goods and services take place to customers with financial credibility. In addition, customer credits that are deemed unsecured by the Management are insured. 3. Liquidity Risk Prudent administration of the cash flow risk presupposes sufficiency of cash and the existence of the necessary finance available resources. The Group manages the cash flow needs on a daily basis, through Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 47 monitoring the short-term and long-term financial obligations, as well as through the daily monitoring of the payments conducted. At the same time, the Group continuously monitors the maturity both of the receivables, as well as of the payables, with the objective to maintain a balance between continuity of funds and flexibility, via its bank credit ability. The cash flow needs are determined for a 6-months period and redefined on a monthly basis. The cash flow needs are followed on a weekly basis. In periods of non-sufficient cash, the company is able to finance its needs in cash through bank borrowing within approved limits it maintains with them. The Company's working capital on 31/12/2022 is negative and amounts to 1,261,347 euros. The Company, in the context of a possible need to strengthen liquidity, proceeded with the following actions: 1. On 3/4/2023 it settled EFKA obligations in the amount of 1,356,785 euro in 24 installments, so the amount of 791,458 euro concerning obligations for 2024 is transferred to the long-term liabilities. 2. Also, the Company received return of Share Capital in the amount of 8,425,000 euro from the subsidiary company IDEH S.A.. On 09/03/2023 the decision dated 03/03/2023 of the Extraordinary General Meeting of the company IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. with GEMI No. 051429019000 (former Μ.Α.Ε. 53664/51 /Β/03/01) was registered in GEMI with KAK 3495562, which decided the reduction of the company's share capital by eight million four hundred and twenty-five thousand (8,425,000) euro, with a reduction of the nominal value of the share by twenty-five (25) euro and the return of capital of 8,425,000 euro, twenty-five (25) euro per share to the company's shareholders, with consequent amendment of article 5. 3. On 3/3/2023 it paid the short-term loan of 1,790,000 euro to Piraeus Bank. Management closely monitors the developments of the world market and estimates that it will further reduce production costs, due to the better performance of the production process both qualitatively and quantitatively, as a consequence of its investment program of the last three years. On top of the above actions, the Company has defined a cost saving program, as the revision of existing agreements with partners together with the reduction of energy costs that exist in 2023, cover the adequacy of cash reserves and the necessary available sources of financing. 4. Borrowing – Risk of fluctuating Interest Rates The Group monitors and manages its borrowing, by proceeding to a combined use of short-term and long-term borrowing. There exist approved credit limits and satisfactory terms of cooperation and of the invoicing of the various banking operations, which help in cutting down the Group’s financial cost. The Group’s policy is to maintain the largest part of its loans in Euro with variable interest rate and a potential increase of the Euribor would mean an additional financial burden. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 48 5. Inventories-suppliers Risk The Group takes all necessary measures (insurance, security) to minimize the risk and the potential damages due to the loss of inventories as a result of natural disasters, thefts, etc. The Management constantly reassesses the net liquidation value of the inventories and proceeds to the appropriate impairments. In addition, the Company considers that dependency on suppliers is very limited and in any case insignificant for the Group’s financial scales, as there is no significant dependency on given suppliers, none of which supplies the Company with products at a percentage over 10% of its total purchases. 6. Customer Dependence The Group’s customer basis shows great spread and there is no risk of dependency on large customers. The Group aims at satisfying an ever larger number of customers, on one hand, by increasing the spectrum of products it offers, and, on the other hand, by pursuing the immediate satisfaction of their needs. In 2022 the company exported to 53 countries worldwide. The company, however, is dependent on its sales in China, where volumes are sold and represent about 30% of turnover. Due to the current situation with the pandemic in the Chinese market and the unpredictable developments, both in the energy market and in the supply chain, the company is trying to reduce its risk of dependence on this market and has focused its strategy on increasing dispersion, but also the sales of semi-finished and finished products, transforming the sales mix by increasing these products by 40% in the first nine months of 2022, compared to the corresponding period last year and at the same time stabilizing the sales of raw material at last year’s levels 7. Health & Safety Risk By the nature of the company's operation, there are primary health & safety risks at work (minor accidents, accidents with loss of working time, occupational diseases and accidents) which can cause significant or less significant social impact not only to the employees themselves and their families, but also to third parties such as visitors/customers at the production sites (quarries, factories). In addition, these issues can have effects related to reduced employee satisfaction and morale, increased accident / absence costs, and a negative impact on the company's image and reputation. Health and safety at work is a primary responsibility for the company that starts from the Management and reaches all stages of production. To address these risks, the Company has taken steps: • in the strict application of security systems and measurements, • in continuous training, • continuous monitoring of risks and actions to mitigate their impact. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 49 8. Pandemic COVID-19 Risk During 2022, the company continued to effectively manage the impact of the COVID-19 pandemic, prioritizing the safety and protection of its people and ensuring the smooth continuation of operations in all areas of its business. Vaccination combined with natural immunity from infection of a large part of the population has led to a reduction in measures against COVID-19. The Committee of Experts of the Ministry of Health recommended the lifting of all measures against the coronavirus in 2023, with the exception of public and private health structures and Elderly Care Units. The company will continue to deal effectively with the occurrence of individual cases, prioritizing the safety and protection of its people. F. PRESENTATION OF THE SIGNIFICANT TRANSACTIONS BETWEEN THE ISSUER AND ITS RELATED PARTIES According to IAS 24, related parties means subsidiary companies, companies with common ownership or/and Management with the company, companies related to it, as well as to the members of Board of Directors and to the company’s Managing officers. The company is provided with goods and services from the related parties, while itself supplies them with goods and services. The company’s sales to the related parties concern mainly goods. The provision of services to the company concern mainly marble processing services. The Board of Directors’ members’ and the Managing officers’ fees concern fees for employed services. In the table below the remainders of the company’s receivables and payables to related parties are analyzed, as these are defined by IAS 24. GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Sales of goods / services Subsidiaries - - 0 1,500 Other Related Parties 327,825 199,543 317,365 196,117 Total 327,825 199,543 317,365 197,617 Other Income / Expenses Subsidiaries - - (70,500) (70,100) Other Related Parties 3,600 0 3,600 - Total 3,600 0 (66,900) (70,100) Purchases of Goods / Services Subsidiaries - - 711,505 893,370 Other Related Parties 53,417 7,026 53,417 7,026 Total 53,417 7,026 764,922 900,396 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Receivables Subsidiaries - - 2,386,279 2,220,163 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 50 Other Related Parties 725,984 542,598 725,984 542,598 Total 725,984 542,598 3,112,263 2,762,761 Liabilities Subsidiaries - - 1,562,302 718,903 Other Related Parties 8,000 8,712 8,000 8,712 8,000 8,712 1,570,302 727,615 Total 31/12/2022 31/12/2021 Compensation of members of the BoD and other management officers 942,110 1,023,547 Sales to members of the BoD and other management officers 0 1,783 Receivables from members of the BoD and other management officers 10,824 146,320 Payables to members of the BoD and other management officers 1,868,851 2,345,487 G. Properties and facilities of the Group The parent company possesses the following properties : • A property at 7, Lykovrissis str. – Metamorfossi, with a plot surface of 10,775 sq.m., surface of the • industrial engine-room 3,669.27 sq.m. and surface of the offices building 980 sq.m. • A property at the location Koukouvagia in Thiva, Eleonas commune, with a plot surface of 13,663.60 sq.m. and surface of the industrial engine-room 724 sq.m. • Properties at Maroussi, at 56, Aut. Heracleou, a basement of 112 sq.m. and 6 basement parking lots of 99 sq.m. • A property at the Industrial Area in Drama, with a plot surface of 45,000 sq.m. on which buildings of a total surface of 12,700 sq.m. have been built. • A property-plot at Markopoulo Attica of a surface of 9.223,37 sq.m. on which a two-storey building of 416.68 sq.m. has been built. The company operates the following leased quarries: Α/Α QUARRY- LOCATION REGIONAL UNIT MUNICIPALITY REGION AREA (m 2 ) 1 ΚΑVΑΚΙΑ KAVALA ΝΕSTOS AG. KOSMAS 24,725.24 2 ΚΑVΑΚΙΑ KAVALA ΝΕSTOS ΑG. KOSMAS 25,954.50 3 ΤΥΜBΑΝΟ KAVALA ΝΕSTOS KECHROKAMBOS 97,264.00 4 ΤΥΜBΑΝΟ KAVALA ΝΕSTOS KECHROKAMBOS 98,076.00 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 51 5 BIRBILI KAVALA PAGGAIO PLATANOTOPOS 46,305.50 6 BIRBILI KAVALA PAGGAIO PLATANOTOPOS 42,344.00 7 LEPTOKARIES DRAMA Κ. ΝΕVROKOPI VOLAKAS 68,411.00 8 ΖΑVARSA DRAMA Κ. ΝΕVROKOPI VOLAKAS 99,993.07 9 VΙΤRΙΝΙΤSΑ DRAMA PROSOTSANI PYRGOI 96,470.00 10 SΑLΙΑRΑ THASSOS THASSOS PANAGIA 37,747.00 11 3 GRΕΜΟΙ THASSOS THASSOS PANAGIA 41,039.00 12 VARADIA THASSOS THASSOS RACHONI 48,629.00 13 PAPAGOUVA ARKADIA TRIPOLI LIMNI-LEVIDI 99,633.42 Apart from the parent company’s properties, the Group further has in its possession: • A property in Vrilissia, with a plot surface of 8,000 sq.m and industrial facilities 2,320 sq.m. (FEIDIAS HELLAS ΑVΕΕ). • The company Iktinos Techniki and Touristiki SA owns an area of 2,689 acres, of which 556 acres are located at the Faneromeni bay in Sitia Crete and the remaining 2133 acres are located a thousand meters south of the Sopata Messorachis plateau of the Municipality of Sitia in Crete. H. Dividend policy – Distribution of net profit In relation to dividend distribution for year 2022, the BoD recommendation at the Ordinary General Meeting of Shareholders is not to distribute a dividend. I. Explanatory report pursuant to article 4 par.7 & 8 of L.3556/2007 1. Share capital Structure. The share capital of the company amounts to 11,432,040 euro, fully paid up and divided into 114,320,400 common registered shares of nominal value € 0.10 each. All shares are listed for trading on the Securities Market of the ASE, in the Medium and Small Capitalization category. The shares of the company are common registered with voting rights. All rights and obligations defined by the Law and the Company's Articles of Association arise from each share. 2. Restrictions in the transfer of shares of the company. The transfer of shares of the company takes place as stated by the law and there are no restrictions in their transfer from its Articles of Association. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 52 3. Significant direct or indirect participations as per the meaning of the provisions of L.3556/2007. From the notifications that have come to the knowledge of the Company, the significant direct and indirect participations within the meaning of L. 3556/2007 are the ones below: On 20/04/2022 Mr. EVANGELOS CHAIDAS owns 50.12% of the company’s share capital with 57,293,868 shares, Mrs. IOULIA CHAIDA owns 6,72 % of the company’s share capital with 7,686,856 shares, Mrs. ANASTASSIA CHAIDA owns 6.75 % of the company’s share capital with 7,716,832 share and Mrs. LYDIA CHAIDA owns 6.18% of the company’s share capital with 7,066,332 shares. No other natural or legal person owns a percentage higher than 5% of the share capital. 4. Owners of any kind of shares providing special control rights. There are no shares of company providing special rights of control to their owners. 5. Restrictions to the voting right. No restrictions to the voting right are provided in the Company’s articles of association. 6. Agreements between the shareholders of the company. The company is not aware of the existence of agreements among its shareholders that would entail restrictions to the transfer of its shares or to the exercise of voting rights originating from its shares. 7. Rules for the appointment and the replacement of members of the Board of Directors and for the amendment of the articles of association. The Board of Directors of the company consists in of seven (7) members, which are elected by the General Meeting for a six-year term. The rules provided in the articles of association of the company for the appointment and replacement of the members of its Board of Directors and for the amendment of provisions of its articles of association do not deviate from the provisions of L. 4548/2018. 8. Significant agreements that are put in force, are amended or terminated in case of a change in the control of the company following a Public Offer. There are no agreements put in force, amended or terminated in case of a change in the audit of the Company following a public offer. 9. Agreements with Members of the BoD or with the personnel of the Company. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 53 There are no agreements of the company with Members of the BoD or with its personnel which provide for the payment of compensation particularly in case of their resignation, or dismissal without cause, or of termination of their term or of their employment as a result of the public offer. Metamorfosi 28/04/2022 The Chairman of the Board of Directors Evangelos Chaidas Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 54 4. Corporate Governance Statement according to Art. 152 and 153 of L. 4548/2018 & Art. 18 of L. 4706/2020 This Corporate Governance Statement is prepared in accordance with article 152 of law 4548/2018 as in force and article 18 of law 4706/2012 as in force. Introduction The term "corporate governance" means the system of relations established between the Management of the company, shareholders, employees and any other interested party and aims at the creation, sustainability and development of strong and competitive companies. As a set of principles, the Corporate Governance Code introduces provisions for self-regulation: it is not limited to the application of the provisions required by law, but is based on the voluntary acceptance and application of rules recorded in it as specific practices. Based on these provisions, the management is exercised, monitored and controlled, the corporate functions are performed, the relations with the shareholders and the interested parties (shareholders, suppliers, customers, public administration, etc.) that are interconnected with the company are formed, the achievement of the objectives is facilitated existing or potential risks have been identified and are being managed. Through the codification of the principles of corporate governance, their easy application is sought and at the same time the strengthening of the credibility of the Greek capital market to the international and domestic investors, the enhancement of the transparency and the improvement of the competitiveness of the Greek companies. In addition, a framework of good corporate governance through the consolidation of trust in the business environment, can bridge, in an effective and beneficial way, the interests of business, citizens and society. In Greece, the corporate governance framework has been developed mainly through Law 4706/2020 which, among other things, requires the participation of non-executive and independent non-executive members in the BoDs of Greek companies whose shares are listed on a regulated market in Greece, the establishment and operation of an internal control unit and the adoption of internal operating regulations with a minimum mandatory content in accordance with the above provisions. In addition, other legislative acts incorporated in the Greek legal framework the European corporate law directives or applied European regulations, creating new rules of Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 55 corporate governance, such as law 4449/2017, which imposes, among others, the operation of an audit committee and law 3884/2010 concerning shareholders' rights and additional corporate disclosure obligations to shareholders in the context of the preparation of their General Meeting as well as significant disclosure obligations regarding, among other things, the ownership status and governance of a company. Finally, the law on public limited companies (L. 4548/2018) contains the basic rules of corporate governance of public limited companies. Corporate Governance Code Notification of voluntary compliance of the Company with the Corporate Governance Code The Company has decided to adopt the Greek Corporate Governance Code of the Greek Corporate Governance Council (ESED) for Listed Companies (hereinafter referred to as the "Code"). This Code can be found on the ESED website, at the following link: HTTPS://WWW.ESED.ORG.GR/WEB/GUEST/CODE-LISTED. In addition to the website of ESED, the Code is also available on the official website of the Company at the following link: HELLENIC CORPORATE GOVERNANCE CODE 2021 (IKTINOSIR.GR) Deviations from the Corporate Governance Code and their justification. Greek Code of Corporate Governance Reasons for non-compliance. 1.17. At the beginning of each calendar year, the Board of Directors adopts a calendar of meetings and an annual action plan, which is revised according to the developments and needs of the company, in order to ensure the correct, complete and timely fulfillment of its duties, as well as examining all the issues on which it makes decisions. The Board at the beginning of each calendar year does not adopt a meeting calendar and annual action plan, which can be revised according to the needs of the Company, as all its members are residents of the prefecture of Attica, it is easy for the Board to convene and meet when required by the needs of the Company or the law, without the existence of a predetermined action plan. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 56 Greek Code of Corporate Governance Reasons for non-compliance. 2.2.21.The Chairman is elected by the independent non-executive members. In the event that the Chairman is elected by the non- executive members, one of the independent non-executive members is appointed, either as Vice-Chairman or as a Senior Independent Director. The Chairman of the Board is an Executive Member and has been elected by the entire Board, based on law 4706/2020. 2.2.22. The independent non-executive Vice- Chairman or the Senior Independent Director, as the case may be, has the following responsibilities: to support the Chairman, to act as a link between the Chairman and the members of the Board of Directors, to coordinate the independent non-executive members and lead the Chairman's evaluation. The Vice- Chairman of the Board is a Non- Executive Member, according to law 4706/2020. 2.4.14. The contracts of the executive members of the Board of Directors provide that the Board of Directors may demand the return of all or part of the bonus awarded, due to breach of contractual terms or inaccurate financial statements of previous years or generally based on incorrect financial data, used for its calculation of this bonus. No such term has been provided because there are no contracts with executive members. Composition and operation of administrative, management and supervisory bodies of the Company and their committees. General Meeting of Shareholders The General Meeting of the Company's shareholders, according to its Articles of Association, is the supreme governing body and decides on every corporate case while its lawful decisions bind all shareholders. The General Meeting of Shareholders is convened by the Board of Directors. According to the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 57 Company's Articles of Association, in the General Meeting the shareholders, all those who are legally entitled to attend it, or some of them, can participate remotely by audiovisual or other electronic means, if this is decided by the Board of Directors that convenes it. The same may apply to persons who attend the General Meeting with the permission of its chairman, under his responsibility, in accordance with article 127 par. 2 of law 4548/2018, provided that the Board of Directors has given this opportunity and the chairman of the General Assembly approves it. The Board of Directors determines with the same decision the details for the above in compliance with the existing provisions, taking sufficient measures to ensure the provisions of article 125 par. 1 of law 4548/2018. The General Meeting is convened at least 20 days before it is held with an invitation stating the exact address, date and time of the meeting, the items on the agenda clearly, the shareholders who have the right to participate, as well as precise instructions for how shareholders will be able to attend the meeting and exercise their rights in person or through a representative. The invitation is published as defined by law and is published in Greek and English on the Company's website and further mentions (a) the rights of minority shareholders of article 141 par. 2, 3, 6 and 7 of Law 4548/2018, with an indication of the period within which each right may be exercised, or alternatively, the closing date by which those rights may be exercised; (b) the procedure for exercising the voting right through a representative and in particular the forms used for this purpose by the Company, (c) it determines the registration date according to the law, noting that only the persons who are shareholders on that date have the right to participate and vote in the General Meeting, (d) it announces the place where the full text of the documents and draft decisions provided by law is available, and (e) it indicates the Company's website address, where the information of the par. 3 and 4 of article 123 of Law 4548/2018 is available. The members of the Board of Directors are also present at the General Meeting, in order to provide information and briefing on issues of their competence, which are put up for discussion, and on the questions or clarifications requested by the shareholders. In addition, the Chairman of the Audit Committee and the Head of the Internal Audit Unit are present. The Chairman of the General Meeting has sufficient time for questions from the shareholders. The Chairman of the General Meeting may under his responsibility allow the presence of other persons in the General Meeting, who do not have a shareholder status or are not representatives of shareholders, insofar as this is not against the corporate interest. Decisions are made by voting, in order to ensure the participation of all shareholders in the results, whether they attend the meeting in person or vote through an authorized representative. The rights of the shareholders of the Company are defined in the Articles of Association and by Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 58 Law 4548/2018. Communication with shareholders The communication with the shareholders is ensured through the operation of the Investment Relations Department of the Company, which implements the communication policy with the shareholders of the Company. The Company has included a unified Service for Shareholders and Corporate Announcements in this department, which is responsible on the one hand for informing and supporting the shareholders for the exercise of their rights and on the other hand makes the necessary announcements to the investing public. The Service for Shareholders and Corporate Announcements has the main duties of providing direct, accurate and equal information to the Company's shareholders as well as support regarding the exercise of their rights, based on the current legislation and the Company's Articles of Association. In addition, regarding corporate announcements, it is responsible for ensuring the Company's compliance with the applicable institutional framework and the Company's communication with the competent authorities, namely the Hellenic Capital Market Commission, the Stock Exchange, and other competent bodies. Also, the Company maintains an active website where useful information is posted for both shareholders and investors under the responsibility of the head of the Shareholder Service and Corporate Announcements. Board of directors The Company is represented before third parties, as well as before any Public, Judicial or any other Authority by its Board of Directors, acting collectively. The Board of Directors is responsible for deciding on any action concerning the management of the Company, the management of its assets and the realization of its purpose, within the limits of the law and excluding the issues decided by the General Meeting of Shareholders. For any matter falling within the competence of representation and management of the Company by the Board of Directors, the latter is entitled by decision to delegate the power of representation or management of the Company to one or more persons, regardless of whether or not they are members of the Board of Directors, issues for which the law or the Articles of Association require collective action of the Board of Directors as an administrative body. The Board of Directors should effectively exercise its leadership role and manage corporate affairs for the benefit of the Company and all shareholders, ensuring that the Management implements the corporate strategy under the supervision of the prudent entrepreneur. It should also ensure Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 59 fair and equal treatment of all shareholders, including minority shareholders and foreign shareholders. Duties of the Board of Directors The Board of Directors has the powers, responsibilities and duties provided by the Law, the General Meeting of Shareholders, the Company’s Articles of Association and the respective corporate procedures. Within this context, the Board of Directors is the body that exercises the management of the Company. Its duties include decision-making as well as the responsibility of exercising complete and effective control over all the Company’s activities. According to the provisions of L. 4706/2020, the Board of Directors: • approves the required Eligibility Policy; • defines and supervises the implementation of the corporate governance system of the Company, monitors and periodically evaluates its implementation and effectiveness, at least every three (3) financial years, taking the appropriate actions to address deficiencies; • ensures the adequate and efficient operation of the Company's Internal Audit System; • ensures that the functions that constitute the Internal Audit System are independent of the business sectors they control, and that they have the appropriate financial and human resources, as well as the powers for their smooth operation, as required by their role; • takes the necessary measures to ensure compliance with the independence of the independent non-executive members of the Board of Directors; • issues and approves the Rules of Procedure and any amendments thereto in accordance with the provisions of law 4706/2020, the Rules of Procedure and any amendment thereof; • appoints the head of the Internal Audit Unit as well as its internal operating rules; • applies the provisions of article 22 of law 4706/2020 regarding share capital increases. In addition, the responsibilities of the Board of Directors include indicatively: • the approval of the long-term strategy and the operational goals of the Company, the planning of the general practice of the company and the creation of a corporate culture; • the implementation of the general corporate policy and the communication of the decided business goals to the lower levels; • monitoring and evaluating the effectiveness and implementation of the operational action plan; • the approval of the annual budget and business plan, as well as decision-making on major capital expenditures, acquisitions and sales; • selecting and, when necessary, replacing the Company's executive leadership, as well as overseeing succession planning; • controlling the performance of the top Management and the harmonization of the remuneration of senior executives with the long-term interests of the Company and its shareholders; • ensuring the reliability of the Company's financial statements and data, financial information systems and published data and information, as well as ensuring the effectiveness of internal audit and risk management systems; Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 60 • observing the members of the Board of Directors or the main shareholders (including the shareholders with direct or indirect authority to shape or influence the composition of the Board of Directors), in relation to existing and potential conflicts of interest between the Company on the one hand and its Management on the other, as well as the appropriate treatment of such conflicts. To this end, the Board of Directors should adopt a transaction supervision procedure based on transparency and protection of corporate interests; • ensuring the existence of an effective regulatory compliance process of the Company; • responsibility for making relevant decisions and monitoring the effectiveness of the Company's management system, including decision-making processes and the assignment of powers and duties to other executives; • forming, disseminating and applying the Company’s main values and principles that govern its relations with all parties, whose interests are related to those of the Company; • decision-making concerning all kinds of remuneration paid to the Company's executives, the internal auditor but also the general remuneration policy of the Company and in fact, under Law 4548/2018, establishes and brings the remuneration policy of its members and the general manager or his deputy, if any, for approval by the General Meeting; • approval of transactions with related parties as provided by Law 4548/2018 and the relevant policy of the Company; • responsibility for the preparation of the financial statements, the management report (including the corporate governance statement). According to the Company's Articles of Association, the Board of Directors is responsible for deciding about any action concerning the Company's management, the management of its property and the general pursuit of the Company's purpose and its representation, except for matters for which the General Meeting is solely responsible according to an explicit provision of the Law. In particular, according to the Articles of Association, the Board of Directors: • Convenes the General Meetings of shareholders, determines their agenda and everything concerning the announcement of their convening, as stipulated by the Law; • Represents the Company in Greece and abroad before Public, Municipal and other authorities, Organizations of any nature, natural or legal persons, in general before all Greek Courts of all degrees and jurisdiction and before the Supreme Court and the Council of State; • Regulates the internal and external operation of the Company and identifies each expense; • Determines the respective use of available funds; • Buys and sells real estate or movable property and leases or rents them; • Concludes agreements with Banks for the opening of credits, the issuance of letters of guarantee or credits through an open account, on whatever terms it wishes to approve, provided that the success of the corporate purpose is achieved; • Receives loans on behalf of the Company, provides payment orders and recognizes liabilities, provides repayments and any exemptions; • Concludes all kinds of contracts and agreements with third parties, natural or legal, domestic or foreign persons for the import of products that are necessary to achieve the purpose of the Company; • Decides on the participation of the Company in existing or newly established companies and the creation of new Company branches; • Appoints lawyers and other proxies for the representation of the Company before the Courts and other Authorities and Organizations to proceed to any of the above actions and generally Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 61 manages and administers the corporate assets and concludes contracts on behalf of the Company in relation to the above actions or others; • Closes the books of the Company at the end of each corporate year, prepares its annual financial statements and proposes the dividends to be distributed to the shareholders and the amounts to be retained for the creation of reserve funds. The above list of the rights of the Board of Directors is merely indicative. Acts of the Board of Directors bind the Company towards third parties, even if they are outside the corporate purpose, unless it is proven that the third party knew or ought to have known that the corporate purpose was exceeded. The mere observance of the publicity formalities regarding the Company's Articles of Association or its amendments does not constitute evidence. Term and Number of the Board Of Directors Members The Board of Directors is elected by the General Meeting for a six-year term, which is extended until the expiration of the term, within which the next ordinary general meeting must convene and until the relevant decision is taken, which cannot exceed six years. The members of the Board of Directors may be re-elected and recalled freely, according to the law. The competent body for the election of the Board of Directors is the General Meeting of Shareholders, except in cases of appointment of a member of the Board of Directors or election of a member of the Board of Directors to replace another member, whose position was vacated for any reason by the other members of the Board, in any case in accordance with the Articles of Association. The General Meeting elects the members of the Board of Directors for a defined term. The number of the Board of Directors members is determined by the Articles of Association or by the General Meeting, within the limits provided in the Articles of Association. In any case, the number may not exceed fifteen (15) members or be less than seven (7) members. After its election the Board of Directors immediately convenes and is formed in a body, electing by secret vote and with an absolute majority of its members present or represented, the Chairman, the Vice-Chairman and the Managing Directors and appoints the executive and non- executive members, except for the independent members, according to the definitions of law 4706/2020, as in force. The role of the Chairman and/or Vice-Chairman and Managing Director may coincide in the same person. The Board of Directors may elect up to two managing directors from among its members, at the same time defining their duties. The Chairman of the Board of Directors chairs the meetings. A legal entity may also be a member of the Board of Directors. In this case, the legal entity is obliged to appoint a natural person to exercise the powers of the legal entity as a member of the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 62 Board of Directors. Failure of the legal entity to appoint a natural person to exercise the respective powers within fifteen (15) days from the appointment of the legal entity as a member of the Board of Directors is considered as resignation of the legal entity from the position of member. The Board of Directors consists of executive and non-executive members. According to the Corporate Governance Code followed by the Company, the Board of Directors is required to consist of a majority of non-executive members (including independent non-executive members) in relation to the executive. The executive members have executive responsibilities regarding the management of the Company within the context of the tasks assigned to them. The non-executive members do not have executive responsibilities in the management of the Company within the context of the tasks assigned to them, apart from the general duties assigned to them by virtue of their capacity as members of the Board of Directors and have been entrusted with the role of regular supervision and monitoring of decision-making by the Management. Independent non-executive members are the non-executive members of the Board of Directors of the Company, who at their appointment or election and during their term of office meet the criteria of independence provided in article 9 of law 4706/2020. They are elected by the General Meeting or appointed by the Board of Directors in accordance with par. 4 of article 9 of law 4706/2020. The number of independent non-executive members must not be less than 1/3 of the total number of members of the Board of Directors and if a fraction occurs, it is rounded to the nearest whole number. At the meetings of the Board of Directors whose subject is the preparation of the financial statements of the Company, or the agenda of which includes issues which are approved by the decision of the general meeting with increased quorum and majority, according to law 4548/2018, the Board of Directors is in quorum, when at least two (2) independent non-executive members are present. In case of unjustified absence of an independent member in at least two (2) consecutive meetings of the Board of Directors, this member is considered resigned. This resignation is established by a decision of the Board of Directors, which replaces the member, in accordance with the procedure of par. 4 of article 9 of law 4706/2020. Duties and Remuneration of Non-Executive Members and Independent Non-Executive Members of the Board of Directors The non-executive members do not exercise managerial duties, but are responsible for their Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 63 participation in the Board of Directors and its Committees, contributing to the impartiality and transparency of the decisions taken and the promotion of all corporate issues. They form independent assessments regarding the Company's strategy, performance, assets, the nomination of candidates for members of the Board of Directors, and they develop them in the meetings of the Board of Directors. Among other things: (a) They monitor and examine the Company's strategy and its implementation, as well as the achievement of its goals; (b) they ensure effective supervision of executive members, including monitoring and controlling their performance; (c) they examine and express views on proposals submitted by executive members, on the basis of existing information. The independent non-executive members submit, jointly or individually, reports and evaluations to the ordinary or extraordinary general meeting of the Company, independent from the reports submitted by the Board of Directors. The content of the above reports must include, at a minimum, a reference to their obligations, as described in article 7 of Law 4706/2020: the non-executive members of the Board of Directors, including the independent non-executive members, have, in particular, the following obligations: - They monitor and examine the Company's strategy and its implementation, as well as the achievement of its goals. - They ensure the effective supervision of the executive members, including the monitoring and control of their performance. - They examine and express opinions regarding the proposals submitted by the executive members, based on existing information. The Board of Directors confirmed that the independent non-executive members of the Board of Directors meet the independence criteria of Article 9 of Law 4706/2020, as they have responsibly declared. The remuneration of the non-executive Members and the independent non-executive Members of the Board of Directors are in accordance with the Remuneration Policy of the Company, approved by a special decision of the Ordinary General Meeting and are proportionate to the time that the non-executive Board members devote for the meetings of the Board of Directors and their participation in Committees. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 64 Duties and Remuneration of Executive Members of the Board of Directors The executive members of the Board of Directors are responsible for the implementation of the strategy determined by the Board of Directors and meet at regular intervals with the non- executive members of the Board of Directors regarding the suitability of the implemented strategy. In existing situations of crisis or risk, as well as when circumstances demand to take measures that are reasonably expected to significantly affect the Company, such as when decisions are to be made regarding the progress of the business and the risks undertaken are expected to affect the financial situation of the Company, the executive members inform the Board of Directors in writing without delay, either jointly or individually, submitting a relevant report with their assessments and proposals. The remuneration of the executive members of the Board of Directors is in accordance with the Remuneration Policy of the Company and is approved by a special decision of the Ordinary General Meeting. Operation of the Board Of Directors Law 4548/2018 on public limited companies sets general rules regarding the organization of the Board of Directors meetings and the decision-making process. The Board of Directors should meet with the necessary frequency in order to perform its duties effectively. The information provided to the Board by the Management should be timely, in order to be able to perform effectively the tasks arising from its responsibilities. The Board of Directors should be supported by a competent, specialized and experienced corporate Secretary, who will be present at its meetings. The members of the Board of Directors take care about being regularly informed regarding the business developments and the most important risks, to which the Company is exposed. They are also informed in time about the changes in the legislation and the market environment. The Board of Directors meets at the Company's registered office or at any other place in the country or abroad, where the Company or other affiliated companies maintain branches, facilities or premises in general, whenever the law, the Articles of Association or the needs of the company require it. It is also convened at any time by its Chairman. In any case, the Board of Directors duly meets outside its headquarters in any other place, either in Greece or abroad as long as all its members are present or represented at this meeting and no one objects to the meeting and the decision-making. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 65 It is possible to hold a meeting of the Board of Directors via teleconference. In this case, the invitation to the members of the board of directors will include the necessary information for their participation in the meeting. The Board of Directors is convened by its Chairman or his deputy, by invitation notified to its members at least two (2) business days before the meeting and at least five (5) business days if the meeting is to be held outside the Company's headquarters. If the Chairman is absent or unable, he is replaced by the Vice Chairman. The invitation must also clearly indicate the items on the agenda, otherwise decision-making is allowed only if all members of the Board of Directors are present or represented and no one objects to the decision-making. Two (2) members of the Board of Directors may request to convene a meeting upon request to its Chairman or his Deputy, who are obliged to convene it in order to meet within seven (7) days from the submission of the request. If the Board of Directors is not convened by the Chairman or his deputy within the above deadline, the members who requested it are allowed to convene the meeting within five (5) days from the expiration of the above seven-day deadline, notifying the relevant invitation to the other members of the Board of Directors. Their request according to the above must clearly state the issues to be addressed by the Board of Directors, otherwise it might be rejected. An absent member may be represented by another member. Each member can represent only one absent member. The Board of Directors is in quorum and meets duly, when more than half plus one members are present or represented therein, but the number of present members may never be less than three. Unless otherwise provided by law or the present document, the decisions of the Board of Directors are duly taken by an absolute majority of the present and represented members. The discussions and decisions of the Board of Directors are recorded summarized in a special book, which can also be kept electronically. Upon request of a member of the Board of Directors, the Chairman is obliged to record an accurate summary of his opinion in the minutes. The Chairman has the right to refuse to record an opinion, which refers to issues obviously off the agenda, or whose content is clearly contrary to good morals or the law. This book also records a list of members present or represented at the meeting of the Board of Directors. Copies and extracts of the minutes of the Board of Directors are certified by the Chairman or his deputy or by the Managing Director of the Board of Directors. The preparation and signing of minutes by all members of the Board of Directors or their Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 66 representatives is equivalent to a decision of the Board of Directors, even if no previous meeting has taken place. This provision also applies if all members or their representatives agree to have their majority decision recorded in minutes, without a meeting. The relevant minutes are signed by all members. The signatures of the members or their representatives may be replaced by the exchange of e- mails or other electronic means, if this is provided in the articles of association. The minutes that are prepared, according to the present document, are registered in the book of minutes, in accordance with article 93 of Law 4548/2018. Evaluation of the Board of Directors Members The Board of Directors has established an evaluation process of the members in order to ensure the effective operation of the Board of Directors and the fulfillment of its role as the supreme governing body of the Company, responsible for forming the strategy and supervising the management and adequate control. The evaluation procedures and the frequency with which they are applied aim at the timely identification of points that may need improvement, the appropriate information and direction of actions, in order to ensure the efficient operation of the Board of Directors. The members of the Board of Directors are evaluated annually: (a) on a collective basis, which takes into account the composition, diversity and effective cooperation of the members of the Board of Directors for the fulfillment of their duties and (b) on an individual basis regarding the evaluation the contribution of each member to the successful operation of the Board of Directors, which takes into account the capacity of the member (executive, non-executive, independent), participation in committees, assuming special responsibilities / projects, time devoted, behavior and utilization of his knowledge and experience. In addition, through the evaluation of the effectiveness of the Committees of the Board of Directors, i.e. the Audit Committee and the Remuneration & Nominations Committee, their contribution to the constructive fulfillment of the support of the Board of Directors is considered and evaluated. Board of Directors Remuneration The remuneration of the members of the Board of Directors, as well as any allowances are determined in accordance with the law governing the operation of the Company, in particular the provisions of Law 4548/2018, as well as in accordance with the applicable remuneration policy for Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 67 the members of the Board of Directors (the "Remuneration Policy") as approved and/or amended by the General Meeting of the Company's shareholders. Its goal is to align the interests of the members of the Board of Directors with the long-term interests, the business strategy and the sustainability of the Company and define the framework within which the remuneration of the executive and non-executive members of the Board of Directors are defined. For all remuneration and allowances the salary report provided by law 4548/2018, is prepared, in accordance with the provisions of the law annually, approved by the Board of Directors and submitted for discussion at the Ordinary General Meeting, which is checked for completeness by the certified public accountants of the Company. The information of the earnings report is also examined by the Remuneration & Nominations Committee, which provides its opinion to the Board of Directors, before submitting the report to the general meeting. At the Ordinary General Meeting of shareholders that will take place within 2023 for the approval of the 2022 results, the Remuneration Report of the members of the Board of Directors will be submitted for the remuneration paid during the year 2022 according to article 112 of Law 4548/2018 and the Company’s Remuneration Policy of the members of the Board of Directors. The Remuneration Policy and the Earnings Report are made available in accordance with the law on the Company's website Remuneration policy SUMMARY CONTENTS (iktinoir.gr) Remuneration Report REMUNERARION REPORT 2021_2021.PDF (iktinosir.gr) Suitability Policy of the members of the Board of Directors The Suitability Policy was prepared by the Board of Directors of the Company and was approved by the Ordinary General Meeting on 30.06.2021. Its scope includes the members of the Board of Directors. The Suitability Policy aims at ensuring the quality staffing, efficient operation and fulfillment of the role of the Board of Directors based on the overall strategy and the medium- long-term business ambitions of the Company in order to promote the corporate interest. The Board of Directors constantly monitors the suitability of its members and, where deemed necessary based on the current legislation and the Suitability Policy, re-evaluates their suitability and possibly launches their replacement. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 68 The Suitability Policy is posted on the Company's website SUITABILITY POLICY OF THE BOD.PDF (IKTINOSIR.GR) Chairman of the Board of Directors (Executive Member) The Chairman of the Board of Directors coordinates and directs the meetings and the general operation of the Board of Directors. He chairs the Board of Directors, has the responsibility of convening the Board of Directors in a meeting, setting the agenda, ensuring the good organization of the work of the Board of Directors, but also the effective conduct of its meetings. It is also the responsibility of the Chairman to ensure the timely and correct information of the members of the Board of Directors, to facilitate the effective participation of non-executive members of the Board of Directors in its work, to ensure constructive relations between executive and non-executive members, and effective communication of the Chairman with all Shareholders, with a view to the fair and equal treatment of the interests of all Shareholders, including his obligation to ensure that the views of the Shareholders are communicated to the Board of Directors. When the Chairman is absent or disabled, he is replaced for the above, non-executive responsibilities, by a non-executive Vice- Chairman. Vice Chairman of the Board (Non-Executive Member) The Non-Executive Vice Chairman of the Board of Directors is responsible for the coordination and effective communication of the executive and non-executive members of the Board of Directors, in addition to the statutory responsibilities. The Non-Executive Vice Chairman presides over the evaluation of the Chairman of the Board of Directors, which is conducted by the members of the Board of Directors as well as the meetings of the non-executive members of the Board of Directors for the evaluation of its executive members. Finally, the Non-Executive Vice Chairman is obliged to be available and to attend the General Meetings of the Company Shareholders, in order to inform about and discuss the issues of Corporate Governance of the Company, when and if they arise. The Vice- Chairman shall not replace the Chairman in his executive duties. Chief Executive Officer (Executive Member) The Chief Executive Officer reports to the Board of Directors and has the following responsibilities: • to ensure and control the implementation of strategic decisions as defined by the Board of Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 69 Directors and the management of the Company's affairs; • to draw up the guidelines in the Company's Management and supervise and ensure its smooth, orderly and efficient operation, depending on the strategic goals, business plans and action plan as defined by the decisions of the corporate bodies; • to be responsible for the effective communication of the Board of Directors with the shareholders; • to provide sufficient information to the Board of Directors regarding events and developments concerning the Company; • to coordinate and supervise the individual departments of the Company; • to propose the future strategy of the Company and evaluate the business opportunities presented; The current Board of Directors of the Company has seven members, as elected by the Ordinary General Meeting on 30.06.2021 and the Board of Directors decision dated 30.06.2021, and consists of the following members: The following table presents the members of the present Board of Directors, their status, as well as the beginning and termination dates of their current term. FULL NAME CAPACITY BEGINNING OF TERM TERMINATION OF TERM Evangelos Chaidas Chairman of the Board & Chief Executive Officer, Executive Member of the Board 30.06.2021 Until the Ordinary General Meeting (OGM) 2026 Anastasia Chaida Vice Chairman, Non- Executive Member of the Board of Directors 30.06.2021 Until the OGM 2026 Ioulia Chaida Deputy Chief Executive Officer, Executive Member of the Board of Directors 30.06.2021 Until the OGM 2026 Peristeris Katsikakis Chief Financial Officer, Executive Member of the Board of Directors 30.06.2021 Until the OGM 2026 Lydia Chaida Non-Executive Member of the Board of Directors 30.06.2021 Until the OGM 2026 Vasiliki Meintani Independent Non-Executive Board Member 30.06.2021 Until the OGM 2026 Andreas Koutoupis Independent Non-Executive Board Member 30.06.2021 Until the OGM 2026 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 70 The CVs of the Members of the Company's Board of Directors are as follows: Evangelos Chaidas, Chairman of the Board & CEO, Executive Member Mr. Evangelos Chaidas is the Chairman and Managing Director, executive member of the Board of Directors of IKTINOS HELLAS SA. He is the founder of IKTINOS HELLAS SA and has held the position of Chairman and Managing Director since 1974. He holds a degree in Architecture - Engineering from the University of Rome and is a member of the Technical Chamber of Greece (TEE). He holds a degree in Public Projects and Environmental Studies and has been involved in Real Estate with both studies and constructions. He was actively involved in the organization of the marble industry and was President of the Federation of Greek Marble Bodies (OSME) from 1980 to 1999, when he was named Honorary President of OSME. He contributed to the promotion of the exports of the Greek Marble Enterprises and organized the first group participations through HEPO in SAN ABROZIO of VERONA in 1976 and later. He has published many articles and opinions on marble. Ioulia Chaida, Deputy Chief Executive Officer - Executive Member Ioulia Chaida is an executive member and Deputy Managing Director of the Board of Directors of IKTINOS HELLAS SA. During her 35 years of her career at the company, she has held important positions of responsibility such as that of Director of Finance & Commerce and Director of Commerce. From 2004 to 2021 she held the position of Vice Chairman of the BoD. She is a graduate of the Athens University of Economics and Business and holds a Master's Degree in "International Corporate Financing" from the University of Salford, Manchester. She is fluent in English, French, Italian and Spanish. It is worth noting that Ms. Chaida is an active member of ICC Women Hellas, Woomanity and supports, through various unions and organizations, women's entrepreneurship and the promotion of innovative ideas that contribute to the development of the Greek economy, while since February 2020 she has been President of the Marble Association of Macedonia - Thrace. For her active business activity and contribution she has received awards and distinctions such as those of "Self-created Entrepreneur, Dynamically Growing Entrepreneur and Innovative Entrepreneur" of the year 2019. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 71 Anastasia Chaida - Vice Chairman of the Board - Non-Executive Member Anastasia Chaida is a graduate of Saint George College, Department of Business Administration and Public Relations. In 1993 she started her career at IKTINOS HELLAS, working in many departments of the company, including the department of exports, accounting, Human Resources, etc., while holding the position of Corporate Announcements Manager of the company. She is a graduate of the Fotiadis Drama School and a graduate of the two-year course at Xenia Kalogeropoulou's "Porta Theater Workshop" for drama in education. She has collaborated since 1994 with various theatrical scenes and has also participated in television appearances. Since 2018 she is an active member of the theatrical workshop of Vrilissia participating in various performances. Katsikakis Peristeris, Executive Member - Chief Financial Officer Peristeris Katsikakis is an executive member of the Board of Directors and Chief Financial Officer of IKTINOS HELLAS SA Group. He is a graduate of the University of Piraeus with a degree in Accounting and Finance and holds a Master's degree in Tax Law from the Athens University of Economics and Business. In his 28-year career he has been a manager in various companies, and in the last 20 years he has held the position of Chief Financial Officer in companies listed on the Athens Stock Exchange. He is a member of the Economic Chamber of Greece and holds a license of Class A’ Accountant. Lydia Chaida, Non-Executive Member Lydia Chaida is a non-executive member of the Board of Directors of IKTINOS HELLAS SA and CEO and manager of the company IKT MARMARON IKE. She studied architecture "VALLE GIULIA" at the Technical University of Rome "LA SAPIENZA" with a degree in Industrial design. During her 28th career at the company, she has held important positions such as retail and project manager, managing director and manager of IKTINOS MARMARON SA, from 2015 to 2020 (subsidiary of IKTINOS HELLAS SA). Angeliki Meintani - Independent Non-Executive Board Member Angeliki Meintani holds a degree in Mining Engineering - Metallurgy from the National Technical University of Athens. He is a member of the Technical Chamber of Greece, holder of a Design Degree Category 27 (Environmental Studies) Class A and B. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 72 She has been trained in specialized topics such as the exploitation of white marble quarry, the application of computers in the mining industry, modern technologies in the construction of tunnels and the techniques of cutting and processing marble. She maintains a personal technical company as a freelancer and business consultant having worked with dozens of companies and executives of mining companies and mines. She is a consultant, supervising engineer and safety technician of quarries of aggregates, marbles and industrial minerals, in companies of the sector in various areas of Greece and has collaborated with the largest marble, cement and mining industries in the country. She is also involved with quality control systems of materials (granulometric analyses, control of equivalent sand, etc). As a freelancer she has undertaken the preparation and submission of licensing applications for quarry companies that include feasibility studies, technical studies, quarry exploitation, environmental impact studies and environmental protection and restoration studies, environmental infrastructure systems, plant engineering projects, special ecological evaluations for projects and activities of category B of article 10 of Law 4014/2011 (Government Gazette 209/A) etc. In total, she has carried out more than 3,000 projects that are subject to the environmental licensing process as well as technical and feasibility studies. Dr. Andreas G. Koutoupis - Independent Non-Executive Board Member Dr. Andreas G. Koutoupis has been an Associate Professor of Financial Accounting and Auditing at the Department of Accounting and Finance of the University of Thessaly since June 2018 and a Certified Internal Auditor, founder and President of KnR Governance, Risk, Compliance and Internal Audit with the main involvement in the Provision of Internal Audit Services and Training of Business Executives. He worked as Director - Head of Corporate Governance, Compliance, Business Risk Management and Internal Audit Services (Director) of the company Mazars, Greece for more than ten years. He also worked as a Senior Manager in the Internal Audit Services Department of PricewaterhouseCoopers Greece for more than ten years. His experience comes mainly from the financial sector where he has worked with almost all major banks in Greece and their subsidiaries in the Balkans in Corporate Governance, Business Risk Management and Internal Audit Projects, as well as from Cooperative Banks, Payment Institutions, Public Health Units and Municipalities, having participated in a large number of Internal Audits in the last ten years. He is a Research Fellow at the University of Piraeus (MSc in Shipping), University of the Aegean (Department of Shipping and Business Services – MSc in Shipping, Transport and Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 73 Business Services (NAME) and Department of Business Administration – MSC in Business Administration (MBA), at the International University of Greece (MSc in International Accounting, Auditing & Financial Management), at the University of Western Attica, at the University of Western Macedonia, as well as at Panteion University (MSc in Taxation and Auditing and Entrepreneurship Program). He holds a degree in Public Administration (Panteion University) with honors, a Master's degree in Internal Audit and Business Administration (Cass Business School, City University, London-UK) with a Distinction in his Thesis, a Doctorate in Corporate Governance and Internal Audit (Panteion University) with distinction, as well as Certified Internal Auditor (Chartered Internal Auditor - CMIIA) and Certified Internal Auditor (CIA, Certified Internal Controls Auditor - CICA, Certified in Control Self Assessment - CCSA, Certified in Risk Management Assurance - CRMA, Certified Controls Specialist - CCS). He has also been certified as an Internal Audit Quality Assessment Validator by the International Institute of Internal Auditors (The IIA-Inc). He holds a License to Practice the Profession of Accountant - Class A from the Economic Chamber of Greece. It follows that the composition of the Board of Directors reflects the knowledge, skills and experience required to exercise its responsibilities, in accordance with the suitability policy and the business model and strategy of the Company. It is noted that the conditions of independence of article 9 of Law 4706/2020 continue to be met by the above non-executive members of the Board of Directors who have been appointed as independent members from the general meeting of shareholders of the Company. Also, the CVs of the main executives can be found on the Company's website at the following address: OUR TEAM - IKTINOS HELLAS SA (IKTINOS.GR) Meetings of the Board of Directors The Board of Directors meets either at the Company's headquarters, or by teleconference with some or all of its members, whenever the Law, the Articles of Association or the needs so require and also, makes decisions without a meeting by drafting and signing the relevant minutes by all members. The Board of Directors met 11 times in 2022. The participation rate of the members in the meetings was 100%. The following table presents the participation of the members of the Board of Directors in the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 74 meetings, either in person or by teleconference, which took place within the fiscal year: FULL NAME CAPACITY PARTICIPATION IN MEETINGS COMMENTS Evangelos Chaidas Chairman of the Board & Chief Executive Officer, Executive Member of the Board 11/11 Anastasia Chaida Vice Chairman, Non- Executive Member of the Board of Directors 11/11 Ioulia Chaida Deputy Chief Executive Officer, Executive Member of the Board of Directors 11/11 Peristeris Katsikakis Chief Financial Officer, Executive Member of the Board of Directors 11/11 Lydia Chaida Non-Executive Member of the Board of Directors 11/11 Vasiliki Meintani Independent Non- Executive Board Member 11/11 Andreas Koutoupis Independent Non- Executive Board Member 11/11 The members of the Board holding shares of the Company with a reference date on 31.12.2022 and the date of publication, are presented below: FULL NAME CAPACITY NUMBER OF SHARES PARTICIPATION PERCENTAGE (%) Evangelos Chaidas Chairman of the Board & Chief Executive Officer, Executive Member of the Board 57,293,868 50.117% Anastasia Chaida Vice Chairman, Non- Executive Member of the Board of Directors 7,694,832 6.731% Ioulia Haida Deputy Chief Executive Officer, Executive Member of the Board 7,673,856 6.713% Lydia Chaida Non-Executive Member of the Board of Directors 7,051,332 6.168% Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 75 Reference to the external professional commitments of the members of the Board of Directors (including their professional obligations as non-executive members in other companies, as well as non-profit organizations) MEMBER OF BOD POSITION / CAPACITY LEGAL ENTITY Evangelos Chaidas Chairman & Managing Director IDEI SA Chairman & Managing Director FEIDIAS HELLAS SA Chairman & Managing Director IKTINOS TECHNIKI & TOURISTIKI SA Chairman & Managing Director AIOLIKI LYKOFOLIA SA Chairman & Managing Director AIOLIKI PROFITIS ILIAS SA Managing Director LATIRUS LTD Ioulia Chaida Vice Chairman of the Board IDEI SA Vice Chairman of the Board FEIDIAS HELLAS SA Vice Chairman of the Board IKTINOS TECHNIKI & TOURISTIKI SA Vice Chairman of the Board AIOLIKI LYKOFOLIA SA Vice Chairman of the Board AIOLIKI PROFITIS ILIAS SA Anastasia Chaida Board member IDEI SA Board member FEIDIAS HELLAS SA Board member IKTINOS TECHNIKI & TOURISTIKI SA Board member AIOLIKI LYKOFOLIA SA Board member AIOLIKI PROFITIS ILIAS SA Lydia Chaida Managing Director IKT MARMARON IKE Board member IDEI SA Board member FEIDIAS HELLAS SA Board member IKTINOS TECHNIKI & TOURISTIKI SA Board member AIOLIKI LYKOFOLIA SA Board member AIOLIKI PROFITIS ILIAS SA Peristeris Katsikakis Board member IKTINOS TECHNIKI & Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 76 MEMBER OF BOD POSITION / CAPACITY LEGAL ENTITY TOURISTIKI SA Andreas Koutoupis Administrator KPS ANDREAS KOUTOUPIS & ASSOCIATES IKE Legal Representative KnR SA Administrator ARTDION HOTEL & VILLAS IKE Partner NIKOS VANDOROS SOLE SHAREHOLDER LTD Independent Non-Executive Member LOULI MILLS SA Independent Non-Executive Member PUBLISHING ORGANIZATION LIBANI SA Independent Non-Executive Member KORDELOU BROS SA Independent Non-Executive Member EVROPHARMA SA President of the Audit Committee COOPERATIVE BANK OF CENTRAL MACEDONIA President of the Audit Committee BIOTER SA President of the Audit Committee LANAKAM SA President of the Audit Committee AEGEK CONSTRUCTION SA Conflicts of interest - other obligations The members of the Board of Directors who participate in the management of the company in any way, as well as its directors, are prohibited from acting, without the permission of the general meeting or the relevant provision of the articles of association, on their own account or on behalf of third parties, acts that fall under the purposes of the company, as well as to participate as general partners or as sole shareholders or partners in companies pursuing such purposes. The members of the Board of Directors and any third person who has been assigned responsibilities by it have an obligation of loyalty to the company. They must in particular: • not pursue own interests that are contrary to the interests of the company; • disclose in a timely manner and adequately to the other members of the board of directors their own interests, which may arise from the company's transactions, which fall within their duties, as well as any conflict of interests with those of the company or related companies within the meaning of article 32 of law 4308/2014, which arises in the performance of their duties. They must also reveal any conflict between the interests of the company and the interests of the persons of paragraph 2 of article 99 of law 4548/2018, if they are related to these persons. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 77 A sufficient disclosure is one that includes a description of both the transaction and the interests themselves. The companies publish the cases of conflict of interest and any contracts that have been concluded and fall under article 99 of law 4548/2018 with the annual report of the board of directors; • maintain strict confidentiality about corporate affairs and company secrets, which became known to them due to their capacity as members. Description of the diversity policy applied to the administrative, management and supervisory bodies of the Company The Company provides equal opportunities to all its employees, at all levels of the hierarchy, and avoids any kind of discrimination. The same diversity and equality policy applies to its administrative, management and supervisory bodies, in an effort to cultivate an environment of equality and non-discrimination. Management and employees are evaluated based on their education and professional background, knowledge of the Company's object and their leadership skills, experience and efficiency. Evaluation decisions of any kind are free from any discrimination. In the Board of Directors and in the Committees of the Company, the maximum possible diversity is sought, in terms of gender, age and the educational and professional background of the members. The goal is the existence of pluralism of views, skills, knowledge and experience within the Company, which correspond to the Corporate objectives. The adoption and implementation of this policy, results in the creation of a working environment without discrimination and prejudice. Internal Audit System Evaluation based on Law 4706/2020 The Internal Audit System (IAS) consists of audit mechanisms and audit procedures that cover, on a continuous basis, all of the entity's activities, with the aim of its efficient and secure operation. In accordance with the provisions of decision 1/891/30.9.2020 and decision 2/917/17.6.2021 of the Board of Directors of the Capital Market Commission and as provided by paragraph 4 of article 14 of Law 4706/2020, as well as in accordance with par. 3 of the same article, the obliged companies as provided by article 1 "Scope of Application" of Law 4706/2020, are invited to assess the adequacy of the IAS. The assessment of the adequacy of the IAS is carried out on the basis of the best international practices with the aim of ensuring the terms set out herein. Regarding the best international practices, the International Auditing Standards are mentioned indicatively. The evaluation of the IAS was completed in accordance with the provisions of decision Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 78 2/917/17.6.2021 of the EC until 31/3/2023 with a reference date of 31/12/2022 and a reference period from the entry into force of Article 14 of Law 4706/2020. The evaluation of the IAS was carried out by the company KSi Greece Certified Auditors - Accountants, as it was selected by decision no. 680/7.9.2022 of the Company’s Board of Directors. KSi Greece Certified Auditors and Accountants (www.ksigreece.gr) as well as the members of the Project Team are independent of the company IKTINOS HELLAS SA and there is no dependency relationship according to par.1 of article 9, as specified by par. 2, of Law 4706/2020. The exercise of the tasks of the project team, in the context of this work, was carried out with objective and impartial attitude and mentality, observing the Auditors’ Code of Ethics and Conduct. The evaluation of the Company's IAS included the audit of the following pillars: 1. Control Environment 2. Risk Management 3. Control Activities 4. Information and Communication 5. Monitoring of the IAS The methodological approach included four (4) stages: • Investigation and evaluation of existing situation • Gap analysis • Communication and review of findings with competent units of the Company • Preparation of the IAS Assessment Report The conclusion of the IAS Adequacy and Effectiveness Assessment Report was without reservation, as no material weaknesses were identified. The relevant Detailed Report was submitted to the Board of Directors, while its summary was submitted to the Capital Market Commission, in accordance with the deadlines of Law 4706/2020 and Decision 1/891/30.9.2020 of the Capital Market Commission. Board of Directors Committees Audit Committee The Audit Committee consists of three (3) members independent in their majority and operates in accordance with article 44 of law 4449/2017 as amended by article 74 of law 4706/2020, articles Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 79 10, 15 and 16 of law 4706 / 2020 and Regulation (EU) No. 537/2014, the Greek Corporate Governance Code voluntarily adopted by the Company and the provisions of its Operating Regulation. The Audit Committee operates with the aim of supporting the Company's Board of Directors in the effective fulfillment of its duties related to financial information, the supervision of the internal audit system and the regular audit of the Company. The main tasks of the Audit Committee include, among others, monitoring the financial information process and submitting recommendations or proposals to ensure its integrity, monitoring the effectiveness of the Company's internal audit, risk management and internal audit systems, and monitoring the Company's statutory audit of the annual and consolidated financial statements. The operating principles and duties of the Committee are described in detail in its regulation which is available on the Company's website AUDIT_ COMMITTEE OPERATING REGULATION_11032021.PDF (IKTINOSIR.GR) The current Audit Committee is an independent committee, consisting of two independent non- executive members of the Company's Board of Directors and a third, non-member of the Board of Directors, elected by the General Meeting of the Company's shareholders. The term of office of the Committee coincides with that of the Board of Directors, i.e. until the Ordinary General Meeting of 2026. The members of the Audit Committee are as follows: Vassilis Petinis Chairman of the Audit Committee, Non-Member of the Board of Directors of the Company Andreas Koutoupis Member of the Audit Committee, Independent Non-Executive Member of the Board of Directors of the Company Angeliki Meintani Member of the Audit Committee, Independent Non-Executive Member of the Board of Directors of the Company The Audit Committee meets at regular intervals, at least four (4) times a year, and extraordinarily when required. All its members participate in the meetings of the Audit Committee. It is at the discretion of the Audit Committee to invite, whenever appropriate, key executives involved in the Company's governance, including the Chief Executive Officer, the Chief Financial Officer and the Head of the Internal Audit Service. During the fiscal year 2021, the Audit Committee met ten (10) times with all its members present (i.e. 100% participation rate). Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 80 Audit Committee Report of the societe anonyme under the name IKTINOS HELLAS SA for 1.1.2022 – 31.12.2022 1. Letter from the Chairman of the Audit Committee Dear Messrs. Shareholders and representatives of the Company's shareholders, On behalf of the Audit Committee of IKTINOS HELLAS SA (the "Company") and in my capacity as its Chairman, I submit to you this Report of the Committee for the period 1.1.2022 – 31.12.2022. The purpose of this Report is to present a concise but comprehensive picture of the work of the Audit Committee, during the aforementioned period. 2. Introduction The Company has an Audit Committee which was formed in a body during its meeting on 30.6.2021 in application of art. 44 of Law 4449/2017, as amended by Law 4706/2020. 3. Purpose The primary purpose of the Audit Committee is to support the Board of Directors in its tasks related to financial information, internal audit, regulatory compliance and corporate risk management. In summary, the Audit Committee: a) informs the Board of Directors about the audited entity, the result of the statutory audit and explains how the statutory audit contributed to the integrity of the financial information and what was the role of the Audit Committee in this process, b) monitors the financial information process and submits recommendations or proposals to ensure its integrity, c) monitors the effectiveness of the internal audit, quality assurance and risk management systems of the organization and, where appropriate, of its internal audit department, regarding the financial information of the audited entity, without prejudice to the independence of that entity, d) monitors the statutory audit of the annual and consolidated financial statements and in particular its performance, taking into account any findings and conclusions of the competent authority in accordance with paragraph 6 of Article 26 of Regulation (EU) no. 537/2014, Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 81 e) oversees and monitors the independence of chartered accountants or audit firms in accordance with Articles 21, 22, 23, 26 and 27, as well as Article 6 of Regulation (EU) No 537/2014 and in particular the adequacy of the provision of non-audit services to the audited entity in accordance with Article 5 of Regulation (EU) no. 537/2014, f) is responsible for the selection process of chartered accountants or audit firms and proposes the chartered accountants or audit firms which will be appointed in accordance with Article 16 of Regulation (EU) No 537/2014, unless par. 8 of article 16 of Regulation (EU) no. 537/2014 is applicable. 4. Composition The composition of the Audit Committee, according to the provisions of article 44 of law 4449/2017, as amended by law 4706/2020, is an independent committee of the Board of Directors, a joint committee, consisting of a third independent person outside the Company and two independent non-executive members of the Board of Directors, within the meaning of the provisions of Article 9 of 4706/2020. More specifically, the Chairman of the Audit Committee is Mr. Vassilios Petinis, an independent third person (not a member of the Board of Directors) and its members are Mr. Andreas Koutoupis and Mrs. Angeliki Meintani, Independent Non-Executive Members of the Board of Directors, based on their election by the decision of the Ordinary General Meeting of the Company's shareholders dated 30.6.2021 and was formed in a body at the meeting of the Audit Committee on 30.6.2021. The members of the Audit Committee meet the independence criteria of law 4706/2020 and the eligibility criteria set out in article 44 of law 4449/2017 as amended by the provisions of law 4706/2012 and decision 1302/2017 of the Hellenic Capital Market Commission. The Audit Committee operates in accordance with its Operating Regulation, which are published on the Company's website AUDIT COMMITTEE OPERATING REGULATION 11032021.PDF (IKTINOSIR.GR) 5. Audit Committee Meetings According to its Rules of Procedure, the Committee meets at least four (4) times a year. The Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 82 total number of meetings during the year is determined by the requirements for the performance of the Committee's responsibilities. During 2022, the Audit Committee ceonvened ten (10) times, on 27.1.2022, 2.2.2022, 24.3.2022, 5.4.2022, 19.4.2022, 23.5.2022, 16.7.2022, 3.8.2022, 7.9.2022 and 7.12.2022. All the members of the Audit Committee were present at the aforementioned meetings and all decisions were taken unanimously. Minutes are kept for each meeting, which is signed by all members of the Audit Committee. It is worth noting that in addition to the aforementioned meetings, the members of the Audit Committee had frequent communications and meetings with the Company's chartered accountant, the Head of the Internal Audit Unit, executive members of the Board, members of the Management including the Chief Financial Officer, the Commercial Department and the IT Department in the context of performing their duties in accordance with the Audit Committee Rules of Procedure and the current legislation. 6. Proceedings of the Audit Committee In accordance with the provisions of article 44 of law 4449/2017 and the announcements 1302/2017 and 1508/2020 of the Hellenic Capital Market Commission, the main issues that occupied the Audit Committee during the year 2022 are listed below. Α. Internal Audit System Structure and Procedures According to article 44 of law 4449/2017, the main responsibility of the Audit Committee is to monitor the effectiveness of the internal audit, quality assurance and risk management systems of the company and, where appropriate, of its internal audit department, regarding the financial information of the audited entity, without prejudice to the independence of that entity. Within its responsibilities, the Audit Committee supervised the Internal Audit Unit and evaluated the Internal Audit System based on the findings of the audits performed by the Internal Audit Unit as well as the risk management and regulatory compliance functions and informed the Board of Directors. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 83 During the 2022 period the Audit Committee carried out the following: (a) It was informed by the Head of the Internal Audit Unit regarding the annual audit program of the Unit on 2.2.2022. The Audit Committee verified that the methodology applied by the Internal Audit Unit for the preparation of the annual audit program is based on the risk assessment (risk-based), which examines the existence and adequacy of the audit mechanisms required to cover the respective risks and that it covers all units, operations, processes and information systems of the Company. It examined the identified risks and the method of their evaluation and, based on the picture formed by the Audit Committee regarding the audit environment, the structure, organization and operation of the Company, it considered that the review and evaluation of the risks is adequate and effective. The overall timetable and dates for the submission of quarterly reports were discussed and the Annual Audit Program was approved. (b) During its work, the Audit Committee reviewed the independence of the Internal Audit Unit, judging both in relation to the observance of the independence criteria of its Head and by the way of operation and execution of its daily tasks. It found that the Internal Audit Unit is formally and substantially functionally independent and does not belong to any other organizational unit of the Company. (c) During its evaluation, the Audit Committee reviewed the policies and operations manual of the Internal Audit Unit, the organizational chart of the Company in order to understand the reference lines of the Head of Internal Audit, other manuals and policies, the manner of exercising the duties of the Head of Internal Audit, review of practices, the standards on which he relied on for the preparation of audits and in general his overall conduct and presence in the Company and did not identify conditions hindering the independence or impartiality of the Head of the Internal Audit Unit. (d) The Audit Committee monitored the implementation of the annual audit plan, through the quarterly reports of the Head of the Internal Audit Unit. For the exercise of his duties the Head of the Internal Audit Unit follows the current legislation, the International Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors, the decisions of the Management and the Audit Committee. During the meetings, the findings of the Internal Audit Unit were discussed regarding the audits that were carried out for the fourth quarter of 2021 and the first, second and third quarter of 2022. The reports on the fourth quarter of 2022 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 84 were discussed in the beginning of 2023. Among other things, the audits of the Internal Audit Unit concerned the completeness of internal procedures, audit of subsidiaries, sales, maintenance procedures, cash available, supplies, compliance with the corporate governance framework, operation of factories and quarries (inventories, monthly reports, security measures, the computer system, expenses, maintenance, segregation of responsibilities, staff training, correctness of data in computer systems, consumables and supplies etc.) and the operation of the Financial Department. The work of the Unit also included the results of follow- up audits and the course of implementation of various actions as well as the provision of advisory support on various issues such as inventory procedures, the adoption of procedures regarding bulk marble tracking etc. The Audit Committee periodically informed the Board of Directors regarding the results of the Internal Audit Unit's audits.. (e) In the context of the annual evaluation report of the Company's Internal Audit System regarding the period 1.1.2021-31.12.2021 which was prepared in the context of its meeting on 5.4.2022 the Audit Committee: • Provided an assessment of the Head of the Internal Audit Unit and the operation of the Unit in terms of independence and impartiality, adequacy of staff and training and in general the value it gives to ensuring the integrity, adequacy and efficiency of the Internal Audit System. It also presented conclusions regarding the operation of the Internal Audit, the adequacy of staffing and the audit program. • Evaluated the Company's audit environment (BoD composition, organizational structure, BoD functions, human resources, etc.) • Reviewed the overall function of risk management as carried out within the Company and mainly the Risk Management and Regulatory Compliance Officer and presented the actions taken by the unit that had to do with the creation of a risk assessment register, recording of risk identification and assessment methodologies, the meetings with the management and other executives and the diagnostic checks it carried out in order to identify the relevant risks. • Monitored the effectiveness of the Company's regulatory compliance function through mainly audits carried out by the Internal Audit Unit as well as the Risk Management and Regulatory Compliance Unit as well as the role of Management in the monitoring and implementation of legislation. Deviations in relation to the Corporate Governance Code applied by the Company were also examined. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 85 The annual evaluation report of the Internal Audit System as well as the operation of risk management and regulatory compliance of the Company regarding the period 1.1.2022- 31.12.2022 and the preparation of the relevant report of the Audit Committee is expected to be completed in April 2023. We note that as provided for in the provisions of paragraph i of paragraph 3 and paragraph 4 of article 14 of Law 4706/2020 and Decision 1/891/30.09.2020 of the Board of Directors of the Capital Market Commission, the Audit Committee during 2022 acted regarding the selection of the auditing company that evaluated the adequacy and effectiveness of the Internal Audit System and made its recommendation to the Board of Directors, participated in meetings with prospective evaluators and evaluated their technical competence, experience, methodology, independence, determined the scope of the audit, participated in preliminary meetings with the evaluator and in meetings regarding the progress of the works and information on any preliminary findings. We note that within the first quarter of 2023, the evaluator presented to the Audit Committee the results of the evaluation and reviewed a draft of his reports (summary and detailed). Finally, we mention that the Audit Committee carried out the annual evaluation of the Head of the Internal Audit Unit in relation to its performance. The evaluation was carried out using a questionnaire, which was completed by each member of the Committee independently, as well as a self-evaluation by the Head under evaluation. Then the individual questionnaires were collected and a combination of the answers was carried out in order to identify the main points but also any weaknesses that need to be corrected regarding the performance of the Head and the way of organization, operation and efficiency of the functions of the Unit under consideration. Issues arising from the evaluation were discussed and areas for improvement were identified. Β. Financial Information - External audit With regard to its responsibilities regarding the supervision of the preparation and audit of the Financial Statements , during the period from 1.1.2022 to 31.12.2022 the Audit Committee met three (3) times with the statutory certified auditor as well as with members of the Company's Management and proceeded as follows: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 86 (a) In accordance with article 16 par. 2 of regulation 537/2014 and article 44 par. 3 par. f of law 4449/2017, after considering the offer of the auditing firm "Grant Thornton Chartered Accountants and Management Consultants Societe Anonyme" and taking into account that the time limits of article 17 par. 1 of regulation 537/2014 or articles 42 par. 4 and 48 of law 4449/2017 and the directive issued by HAASOB on 7.4.2020 were not exceeded, the Audit Committee recommended to the Board of Directors of the Company the renewal of the appointment of the above company for the audit of the annual corporate financial and consolidated financial statements, the review of the semi-annual financial statements, the tax audit for the issuance of the tax certificate under Article 65A of the Code of Tax Procedure and the audit of the 2022 earnings report. In this context, the Audit Committee evaluated on the substance and from a financial point of view the offer of the auditing company, its cooperation until then, the independence of the auditing company according to the Code of Professional Ethics of the International Federation of Accountants [HAASOB (ELTE) Regulatory Act 004/2017, Government Gazette Β' 3916/07.11.2017] as well as in accordance with the relevant provisions of Directive 2014/56 / EU and Regulation (EU) no. 537/2014 of the European Parliament and of the Council and Law 4449/2017 and in general the adequacy of the statutory auditor and the proposed audit team as well as the methodological approach. (b) It was informed by the Certified Public Accountants of the Company regarding the audit planning for the year 2021 (beginning of February 2022), the schedules and the audit teams, the audit approach for both the parent company and the subsidiaries, the audit scope, the method of determining the essential size, the important audit issues, how to assess the most significant risks and the proposed audit procedures for the issuance of the annual and semi- annual financial statements. The Audit Committee considered that the planning of the audit is satisfactory in relation to the identified risks, the audit team has the knowledge and experience in relation to the audit issues and the planned safeguards set by the audit firm are considered satisfactory for ensuring the independence and quality of the audit contribution. (c) In collaboration with the competent bodies of the Management, it examined the financial statements of the Company (corporate and consolidated) for the 2021 period, which were prepared in accordance with the International Financial Reporting Standards (IFRS) to obtain a reasonable assurance regarding the completeness and consistency of the financial statements, based on communications and discussions with the Financial Management, review of the information systems, evaluation of the Internal Audit System as to the preparation of the Financial Statements and communications with the statutory auditors regarding the course of Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 87 their work and any audit findings. As a result, the Audit Committee prepared and submitted a report to the Board of Directors assessing the completeness and consistency of the financial statements, in accordance with the information provided to its members.. (d) During 2022, the Audit Committee met with the certified auditor of the Company and the Management in the context of the process of completion and publication of the financial statements of 31.12.2021 respectively. Particular emphasis was placed on the Key Audit Matters, i.e. the assessment of the recoverability of trade receivables and the valuation of inventories and the safeguard procedures applied by the auditors as well as in other important areas such as the classification of loan liabilities, impairment of participations, the capitalization of research and extraction costs of mineral wealth, the effects of Covid-19, on the effectiveness of the Company's cooperation with the auditor and in general the evaluation of the Internal Audit System. In this context, the Audit Committee also received the Supplementary Report to the Audit Committee, provided in Article 11 of Regulation (EU) no. 537/2014.. (e) Upon completion of the audit of the financial statements for the year 2021, the Audit Committee submitted to the Board of Directors a report explaining the contribution of the statutory audit in general to the quality and integrity of the financial information, including the relevant disclosures, approved by the BoD and made public as well as the role of the Audit Committee in this process. In this context, the overall contribution of the audit in terms of obtaining assurance on the financial statements, the quality of deliverables and presentations, the assessment of independence and quality assurance, the qualifications of the team, the general approach and communication, etc. were evaluated, as well as the contribution of the audit to the identification of weaknesses of the Internal Audit System, the detection of findings that were identified and corrected, the review of impairment checks, the confirmation of balances, the confirmation of Management crises (e.g. in relation to provisions), information regarding the new regulatory framework and in general the assurance of the preparation of the financial statements in accordance with the current regulatory framework and the accounting standards followed by the Company and the Group. In this regard, the contribution of independent certified appraisers who valued the real estate of the Company and the Group was also important. (f) During 2022, the Audit Committee met with the certified auditor of the Company in the context of the review process of the financial statements of the six-month period that ended on 30.6.2021. During the meeting, in addition to the presentation of the Company's performance Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 88 in the semester, analyses for key review areas, i.e. the impact of IAS 19, the evolution of other customers, the course of loan obligations and other issues were examined and the Audit Committee received the review report. The Audit Committee decided the positive recommendation to the Board of Directors regarding the approval of the financial statements for the first half of 2022. (g) The Audit Committee was informed by the financial management and the Certified Auditors regarding the results of their audit for the issuance of a tax certificate for the year 2022 as well as those of the IT audit. During the presentation, the methodology of the audit work that was followed per audited category and the results of the audit were reported, and the results of their work were discussed with the members of the Committee and the necessary clarifications were given to the questions asked. (h) Regarding the adequacy of the disclosures of the risks presented in the Financial Statements, the Audit Committee had discussions with the Financial Management and evaluated the work of the Head of Internal Audit regarding the risk management process and considered that no disclosure of additional risks is required. (i) The Audit Committee also examined the non-financial information report of the management report for the year 2020, having discussed the adequacy and completeness of the disclosures with the specialized consultant of the Company regarding issues of sustainable development as mentioned below. (j) The Audit Committee examined the Corporate Governance Statement for the year 2020 regarding any discrepancies in relation to the Corporate Governance Code followed by the Company, the responsibilities of its bodies and committees and the characteristics of the Company's Internal Audit System. C. Other Assurance Services and Other Non-Audit Services After reviewing the subject and scope of the proposed non-audit work, the standards governing their performance, the methodological approach and the proposed fee for the provision of services as reflected in the respective offers, obtaining assurance for the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 89 implementation of the regulatory framework and the assessment of potential threats to independence and safeguards in accordance with Directive 2006/43/EC, as incorporated in Law 4449/2017, from the provision of these services, and after concluding that the object of the proposed services is not included in the prohibited non-audit services of paragraph 1 of Article 5 of Regulation 537/2014 and the proposed fees do not violate the cap for the provision of fees for non-audit services in accordance with the HAASOB directive dated 22.10.2018 in relation to Regulation 537/2014 for the statutory audit of public interest entities and the Law 4449/2017, the members of the Audit Committee gave its consent for the provision of specific services. D. Risk Management and Regulatory Compliance In the context of strengthening the operation of risk management and regulatory compliance, the company operates an Risk Management and Regulatory Compliance unit which reports to the Audit Committee. During the fiscal year 2022, the Audit Committee discussed with its Head, diagnostic reports related to risk management in the quarries and the factory, the risk register and the methodology for identifying and assessing risks. In the context of the operation of the Risk Management and Regulatory Compliance Unit, the Head submitted to the Audit Committee the annual report of the unit which summarizes the principles of organization and operation of the unit, the results of the annual risk assessment, action plans and corrective actions, annual report for its tasks for the year 2022 and the schedule for the year 2023. Finally, we mention that the Audit Committee carried out the annual evaluation of the Head of the Risk Management and Regulatory Compliance Unit. in relation to its performance. Issues arising from the evaluation were discussed and areas for improvement were identified. E. Sustainable Development Policy Corporate Responsibility and Sustainable Development are directly linked to the Company's business structures and determine the way in which it chooses to proceed towards the achievement of continuous responsible development. The Company has a Corporate Responsibility and Sustainable Development Policy and in June 2021, it prepared a sustainable development report for the year 2021. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 90 The Company has entered into a partnership with a specialized consultant in order to receive consulting support in matters of sustainable development and the preparation of a report on sustainable development. The Audit Committee, in the context of its responsibilities, had a meeting with this consultant in order to be informed regarding the preparation of a sustainable development policy as well as the preparation of a corporate responsibility report. During the meeting, the Company's regulatory obligations, the process of defining an overall ESG strategy and individual performance targets, the needs for human resources and any technological equipment required for measuring and monitoring KPIs as well as the process of obtaining assurance regarding the sustainable development of the Company were discussed. The business principles of the Company constitute a code of ethics, defining behaviors and ways of actions as essential parameters for the creation of sustainable value. Key parameters are the creation of value in the context of business ethics in order to create benefits to all stakeholders of the organization: shareholders, employees, partners, suppliers, institutions, society, open and constructive communication and cooperation with all stakeholders aiming for greater accountability, the provision of innovative and optimal solutions for environmental protection, the creation of mutual benefit to business partners and cooperation with local communities for prosperity and local development.. The Company's Corporate Responsibility and Sustainable Development strategy is treated as a strategic investment and the initiatives taken aim at highlighting responsible business and the principles of Sustainable Development. Development based on the principles of Sustainable Development, is the central core of the philosophy and strategy of the Company and its Management complies with the Greek Code of Sustainability. As presented in detail in the Non- Financial Information of the Management Report of the Board of Directors, in the context of the implementation of the sustainable development policy: • Methods and practices are used that are economically, environmentally and socially responsible; • European and international standards for environmental protection are adopted; • The best available techniques are applied; • Procedures are implemented for saving natural resources and energy, for reducing gas emissions and properly managing waste; • Programs are implemented to support society as a whole with special emphasis on local communities; Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 91 • Programs for the health and safety of staff are adopted with careful supervision, as well as training and continuing learning programs; • A framework is created to strengthen green and innovative entrepreneurship in the industry. 7. Evaluation of the effectiveness of the operation of the Audit Committee In accordance with the corporate governance code and operating regulations, the Audit Committee carried out the first annual self-assessment of its effectiveness and efficiency in July 2022. The self-assessment was carried out using a questionnaire, which was completed by each member of the Committee independently. The individual questionnaires were then collected and a combination of the answers was carried out in order to identify the main points and any weaknesses that need to be corrected regarding the way the Committee is organized and operated. Following a discussion on the results of the evaluation, the Audit Committee reached certain conclusions and areas for improvement were noted. During its next evaluation, the Audit Committee will also take into account the conclusions obtained from the assessment of the adequacy and effectiveness of the Company's Internal Audit System carried out in the context of paragraph 3(i) and paragraph 4 of article 14 of Law 4706/2020 and will determine a corrective action plan. The members of the Audit Committee of IKTINOS HELLAS S.A. Petinis Vasileios Koutoupis Andreas Meintani Angeliki Metamorfosi, 3 April 2023 Remuneration & Nominations Committee The Remuneration & Nominations Committee assists the Board of Directors in relation to the promotion of nominations for the members of the Board of Directors and on the other hand to the issues of remuneration of the members of the Board of Directors and the executives of the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 92 Company. The Committee is appointed by the Board of Directors of the Company and consists of at least three (3) non-executive members of which at least two (2) are independent non- executive. Independent non-executive members of the Board of Directors always constitute the majority of the members of the Committee.. The current composition of the Company’s Remuneration & Nominations Committee was determined by virtue of no. 677/24.05.2022 resolution of the BoD and consists of the following members: Andreas Koutoupis Chairman of the Committee, Independent Non- Executive Member of the Board of Directors Lydia Chaida Member of the Committee, Vice Chairman Non- Executive Member of the Board of Directors Angeliki Meintani Member of the Committee, Non-Executive Member of the Board of Directors Its term is defined until April 1, 2026 and is automatically extended until the first regular meeting after the end of their term. The Remuneration & Nominations Committee during the year met seven (7) times with all its members present (i.e. 100% participation). The Remuneration & Nominations Committee operates in accordance with its Rules of Procedure, which has been posted on the Company's website. RULES OF PROCEDURE OF THE REMUNERATION AND NOMINATION COMMITTEE.PDF (IKTINOSIR.GR) 2022 Annual Report of the Remuneration and Candidates Nomination Committee of the Company IKTINOS HELLAS SA The company IKTINOS HELLAS is a Greek societe anonyme and is the parent company of the group. It was founded on 12/03/1974 by the Architect Engineer Evangelos Nik. Chaida, who remains the main shareholder today. It operates under the name "IKTINOS TECHNIKI KAI TOURISTIKI ANONYMI ETAIREIA" and the distinctive title "IKTINOS HELLAS SA", hereinafter the "Company". The duration of the Company following a decision of the General Meeting of its shareholders, on 12/01/1999, was extended until 11/03/2049. Following the provisions of paragraph 2 of article 10 of L.4706/2020, which clarifies that the responsibilities of the Remuneration and the Nomination Committee may be assigned to a Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 93 committee, the Company appointed the Remuneration and Nomination Committee, hereinafter the "Committee", with responsibilities as defined in articles 11 and 12 of L.4706/2020 and articles 109 to 112 of L. 4548/2018. This is documented by the decision of the Board of Directors dated 30/06/2021, according to the minutes No. 666 and in compliance with the provisions of Law 4706/2020 "Corporate governance of public limited companies, modern capital market, incorporation into Greek legislation of the Directive (EU) 2017/828 of the European Parliament and of the Council, measures to implement Regulation (EU) 2017/1131 and other provisions". The Committee with its existing composition, was reformed for operational reasons by appointing Mrs. Lydia Chaida, as evidenced by the relevant minutes Νο 7 of 24/05/2022 pursuant to No. 677/24-5-2022 resolution of the Board. The Remuneration and Nomination Committee operates as a single committee of the Board of Directors, consisting of three non-executive members of the Board of Directors, most of whom are independent and for a term until April 1, 2026 and is automatically extended until the first ordinary meeting after the end of their term of office. It is noted that the Company had proceeded • In the drafting of the Remuneration Policy, based on the existing provisions of articles 110 - 111 of law 4548/2018, which was presented to the Board of Directors of the Company and by unanimous vote, was proposed for approval by the decision of the Board of Directors at the Ordinary General Meeting of the Company shareholders, where it was approved, as documented by its decision of 03.07.2020. This Policy was updated by the resolution of the Ordinary General Meeting dated 16.06.2022, in order to include the remuneration of executives. • With the recommendation of the Remuneration and Nomination Committee, as it operated with its previous composition, in the drafting of the Suitability Policy of the members of the Board of Directors (the "Suitability Policy"), based on the provisions of article 3 of law 4706/2020 and circular no.60 of the Hellenic Capital Market Commission on "Guidelines for the Suitability Policy of Article 3 of Law 4706/2020", which was presented to the Board of Directors of the Company and by unanimous vote, was proposed by the decision No. 665/4.6.2021 of the Board of Directors for approval at the Ordinary General Meeting of the Company's shareholders, where it was approved, as documented by the decision no. 92/30.6.2021. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 94 The Committee, applying the Company's Suitability and Remuneration Policies, is in charge of the nomination process for the election of members of the Board of Directors and the selection of senior executives and prepares proposals to the Board of Directors regarding the remuneration of its members and key senior executives in accordance with applicable regulations. 1. Purpose and Responsibilities of the Remuneration and Nomination Committee The Remuneration and Nomination Committee aims to support the Board of Directors (hereinafter referred to as the "BoD") and to oversee the procedures for compliance with the legal and regulatory framework regarding the Company's Policies as follows: Remuneration Policy: Drafting proposals to the Board of Directors regarding the remuneration of the persons that fall within the scope of the remuneration policy, according to article 110 of law 4548/2018, and regarding the remuneration of the Company's executives, especially the head of the Internal Audit Unit. The Committee is also responsible for informing and supporting the Board of Directors with specialized and independent advice on the planning, review, update and implementation of the Remuneration Policy, which is submitted for approval to the General Meeting of Shareholders of the Company, in accordance with par. 2 of article 110 of law 4548/2018. Suitability policy: in accordance with the provisions of article 3 of law 4706/2020 and the guidelines of the Hellenic Capital Market Commission, it describes the evaluation criteria regarding the: • Individual suitability criteria 1) Professional skills, experience, knowledge adequacy 2) Interpersonal skills 3) Reputation, ethics, honesty and integrity 4) Conflict of interests 5) dedication of sufficient time • Collective suitability criteria Evaluation process: In order to ensure the sound and prudent management of the Company by appropriate persons, the members of the Board of Directors are evaluated on an ongoing basis in terms of their ability to perform their duties adequately and to safeguard the interests of the Company and stakeholders. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 95 The responsibilities of the Remuneration and Nomination Committee also include finding, evaluating and drafting proposals for candidate Managers to fill vacancies in the Company. In this context, the Committee assesses the adequacy of candidates' skills, experience and knowledge and whether they meet the requirements of the position. 2. Members of the Committee The Remuneration and Nomination Committee operates as a single committee of the Board of Directors, consisting of three non-executive members of the Board of Directors, the majority of whom are also independent. By virtue of decision no. 677/24.5.2022 of the Company’s Board of Directors, Mrs. Anastasia Chaida was replaced for operational reasons by Mrs. Lydia Chaida. Therefore, the current members of the Committee are as follows: • Andreas Koutoupis, son of Georgios, Chairman of the Committee and an independent non- executive member of the Board; • Lydia Chaida daughter of Evangelos, Member of the Committee and non-executive member of the Board; • Angeliki Meintani daughter of Alexandros, Member of the Committee and independent non- executive member of the Board. 3. Committee meetings During 2022, the members and their participation in the meetings of the Committee were as follows:: Committee Member Total Meetings Number of meetings attended live and/or by Teleconference Percentage (%) of the meetings attended Andreas Koutoupis (President) 7 7/7 100% Lydia Chaida (Member) 5 5/5 100% Angeliki Meintani (Member) 7 7/7 100% Anastasia Chaida (Member) 2 2/2 100% Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 96 In this context, the Committee met seven (7 ) times in 2022 in full quorum, at its headquarters. We note that each member of the Committee can duly represent only one other member. In these cases, the relevant authorization must be provided in writing. The Committee is in quorum when at least two members are present. The approval of decision- making requires the majority of its members present and in case of a tie, the vote of the President of the Commission shall prevail. The Committee may also meet by teleconference, and the drawing up and signing of minutes by all members of the Committee shall be equivalent to a meeting and a decision, even if no meeting has taken place. The Committee may also meet on its own initiative, provided that all its members are present. In the above meetings all the members were present (i.e. 100% participation) and discussed the following issues: Minutes of Meeting dated 4 April 2022 Item 1: Board Evaluation Process Item 2: Opinion on the Board of Directors remuneration report 2021 Item 3: Proposal to revise the Remuneration Policy Minutes of Meeting dated 16 May 2022 Item 1: Evaluation of the suitability of Mrs. Lydia Chaida, as a candidate Member of the Remuneration & Nominations Committee Minutes of Meeting dated 24 May 2022 Item 1: Reformation of the Remuneration & Nominations Committee into a body Minutes of Meeting dated 30 May 2022 Item 1: Training plan for Members of the Board of Directors Minutes of Meeting dated 6 June 2022 Item 1: Remuneration framework for members of the Board of Directors and Executives Item 2: Opinion on the Board of Directors remuneration report 2021 Item 3: Evaluation of the existing Board of Directors Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 97 Minutes of Meeting dated 7 September 2022 Item 1: Preparation of Board Member Evaluation Process Minutes of Meeting dated 10 December 2022 Item 1: Discussion on the Progress of the Implementation of the Evaluation Process for Board Members All discussions and decisions of the Committee are recorded in minutes, which are signed by the present members as mentioned above in this report for the year 2022. 4. 2022 Committee Detailed Report 4.1. Proposal for Revision of the Remuneration Policy The Committee, with its decision of 4/4/2022, recommended to the Board of Directors the revision of the Remuneration Policy so as to include the remuneration framework of the managers. Subsequently, the Board of Directors of the Company with a unanimous vote, proposed the approval of the changes to the Ordinary General Meeting of the Company's shareholders on 16.06.2022, as this is documented by its 16.06. 2022 decision. 4.2. Earnings Report The Remuneration and Nominations Committee, in its current composition, in the context of its duties as described in the minutes of the Committee’s minutes 6/6/2022, carried out the following: • Item 1: Framework for the remuneration of members of the Board of Directors and Executives • Item 2: Opinion regarding the 2021 Board remuneration report • Item 3 : Evaluation of the existing Board of Directors 4.3. Evaluation of the Board of Directors 4.3.1 Evaluation Procedure of the Board of Directors For the assessment of collective suitability, it is taken into account whether the composition of the Board of Directors reflects apart from the high level of managerial skills, sufficient management skills to effectively organize its work so as to be able to understand and question Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 98 the administrative practices applied and the decisions made by senior management. The assessment of the collective suitability takes into account each time the level of adequacy of the overall composition of the specialized committees of the Board of Directors. Each member of the Board of Directors is evaluated for the type of knowledge, skills and experience that the specific person contributes to the collective suitability of the Board of Directors. In order to promote an appropriate level of differentiation in the Board of Directors and a diverse group of members, the Company applies diversity criteria when appointing new members of the Board of Directors. In addition to adequate gender representation, the selection of new members for the Board of Directors of the Company is not excluded due to discrimination based on gender, race, color, ethnic or social origin, religion or belief, property, birth, disability, age or sexual orientation.. The independent non-executive members of the Board of Directors and the Committee Members meet the independence criteria of Article 9 of Law 4706/2020, as they have responsibly declared. These criteria are part of the evaluation process of the Board members that took place. The Committee started this process in the 4 th quarter of 2022 with the aim of completing it within the 1 st quarter of 2023, in order to: • implement the annual evaluation of Members of the Board of Directors, before the publication of the 2022 Financial Statements; • prepare the 202e Training Plan of the Members of the Board of Directors, taking into account the results of the evaluation that will take place; • check and revise the Remuneration Policy and the Suitability Policy and in case of changes, to propose its approval to the Board of Directors and the General Meeting. The evaluation process of the members of the Board of Directors was discussed at a meeting of the Committee on 07/09/2022 where it was determined that it will be based on the following evidence: • Member evaluation and self-evaluation questionnaires • Member CV • Statement of Notification and Acceptance of the Conflict of Interests Policy • Declaration of Conflict of Interest • Declaration of Independence (independent non-executive members of the Board) • Solemn Declaration (Article 3 par.4,5 and 6 L. 4706/2020 - That a final court decision has not been issued within one (1) year, before or after his election respectively, finding him guilty for loss- making transactions between a company or an unlisted company of law 4548/2018, with related parties.) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 99 4.3.2 Implementation of the Evaluation Process of the Board of Directors Based on the above, the Committee started the process of preparing the Questionnaires and collecting the necessary documents to complete the evaluation process of the Board members. The implementation progress was discussed at the Committee meeting on 10/12/2022. The process was finally completed and discussed at a Committee meeting before the publication of the 2022 financial statements. The discussion and related decisions were recorded in the minutes of the Committee on 3/4/2023. 4.3.3 Result of the Evaluation of the Board of Directors During this evaluation, the Committee examined and verified the fulfillment of the conditions for the existing members of the Audit Committee, in terms of the suitability criteria adopted by the Company, in the updated operating regulations as well as in the current Suitability Policy, as well as the instructions given by the Hellenic Capital Market Commission. Specifically and in accordance with article 9 par. 3 of law 4706/2020, the Committee reviewed the fulfillment of the conditions of independence of its independent non-executive members, which was verified and a relevant finding is included in the 2022 Annual Financial Report. Sincerely, Chairman of the Remuneration and Nomination Committee Members Andreas Koutoupis Lydia Chaida Angeliki Meintani Metamorfosi 4/4/2023 Description of main characteristics of the Company's Internal Audit and Risk Management Systems in relation to the process of preparation of the financial statements. Internal Audit System Internal Audit System is defined as the set of internal control mechanisms and procedures, Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 100 including risk management, regulatory compliance and internal audit, which covers all activities of the Company and contributes to its safe and efficient operation on a continuous basis. Under the responsibility of the Board of Directors, the Internal Audit System is evaluated periodically based on the approved evaluation policy and procedure followed by the Company. The policy includes the general principles regarding the subject matter and regularity of the Internal Audit System, the scope of the audit, any significant subsidiaries that will be included in the evaluation, the assignment and the monitoring of the evaluation results. Internal Audit Unit The Internal Audit Unit is an independent organizational unit within the Company, which monitors and improves the operations and policies of the Company regarding its Internal Audit System. It is independent from the other business units of the Company and reports administratively to the Chief Executive Officer and operationally to the Audit Committee, which is also its supervisory body. The head of the Internal Audit Unit is appointed by the Board of Directors of the Company, following a proposal of the Audit Committee, is a full-time and exclusive employee, personally and functionally independent and impartial in the performance of his duties and has the appropriate knowledge and relevant professional experience. A detailed description of the duties and operating principles of the Unit are included in the operating regulations of the Unit approved by the Board of Directors of the Company. Responsibilities of the Internal Audit Unit The Internal Audit Unit has the following responsibilities: 1. In particular, it monitors, controls and evaluates: • the implementation of the Internal Operating Regulations and the Internal Audit System, in particular as to the adequacy and correctness of the provided financial and non-financial information, risk management, regulatory compliance and the Corporate Governance Code adopted by the Company, • compliance with the law, • corporate governance and • compliance with the commitments contained in newsletters and the Company's business plans regarding the use of funds raised from the regulated market. 2. It prepares reports for the audited units with the findings, the risks arising from them and suggestions for improvement, if any. The above reports, after incorporating the relevant views of the audited units, the agreed actions, if any, or the acceptance of the risk of non-action by them, the limitations on its scope of control, if any, the final internal audit proposals and the results of the response of the audited units of the Company to its proposals, are submitted quarterly to the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 101 Audit Committee. 3. It submits reports to the Audit Committee at least every three months, including its most important issues and proposals. In exceptional cases and if circumstances arise, special reports are submitted upon the recommendation of the Audit Committee. In general, the Head of the IAU holds regular meetings and communication with the Audit Committee to discuss issues within his / her competence, as well as problems that may arise from the internal audits. 4. It plays a leading role in the implementation of the monitoring of the Company's Internal Audit System as well as it examines the effectiveness of the existing security controls. 5. The Head of Unit submits to the Audit Committee an annual audit schedule and the requirements for necessary resources, as well as the consequences of limiting the resources or the audit work of the unit in general. The annual audit program is drawn up based on the assessment of the Company's risks, having previously taken into account the opinion of the Audit Committee as well as issues highlighted by the Management and the Audit Committee. During its work, the Internal Audit Unit has access to any organizational unit of the Company and has access to any information required for the exercise of its duties. More specifically, during the performance of his duties, the Head of the Unit has the right to receive knowledge of any book, document, file, bank account of the Company and to have full and free access to the files, physical facilities and staff of the Company. He generally has the right to know any information which is necessary for the performance of his duties. Regulatory Compliance and Risk Management Unit The Company has established a Risk Management and Regulatory Compliance Unit, which is on the one hand responsible for reviewing the risk identification and assessment process and risk monitoring procedures, and on the other hand, establishes and implements appropriate and up- to-date policies with appropriate and updated policies and procedures so as to achieve timely the full and continuous compliance of the Company with the current regulatory framework. It consists of two parts which function as a single unit. The Risk Management and Regulatory Compliance Unit is administratively subject to the Chief Executive Officer and reports to the Audit Committee. The main responsibilities related to risk management are the following: • Identifying, evaluating and reporting the most significant risks, as well as finding appropriate methods to minimize them; • Preparing and updating the register of risks and security controls; • Making recommendations in relation to the risk profile and risk appetite of the Company; Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 102 • Making recommendations about risk management policies and procedures; • Making recommendations about the overall risk management strategy; • Submitting risk assessment reports and other reports. In the context of its regulatory compliance responsibilities, the Risk Management and Regulatory Compliance Unit supports the Internal Audit Unit in risk management and regulatory compliance. It supervises and coordinates the compliance of the Company with the current regulatory framework, the rules of the Hellenic Capital Market Commission and other supervisory authorities, as well as the internal rules that have been adopted. The Risk Management and Regulatory Compliance Unit in the above context, functions essentially as a second line defense unit of the rules and procedures for the timely and continuous compliance of the Company with the current regulatory framework and its internal operating regulations. The main responsibilities of the Risk Management and Regulatory Compliance Unit in terms of regulatory compliance are the following: • it establishes appropriate and up-to-date policies and procedures, in order to achieve full and continuous compliance of the Company with the current legal and regulatory framework and to control the level of achievement of this purpose; • it monitors and controls the Company's compliance with regulatory and legislative requirements on an ongoing basis; • it oversees legislative and regulatory risk support procedures; • it advises on regulatory issues. Procedure for compliance with the obligations of articles 99 to 101 of Law 4548/2018 The Company has adopted a procedure of compliance with the obligations arising from articles 99 to 101 of Law 4548/2018, in order, among other things, to ensure that its Board of Directors has sufficient information to make its decisions regarding transactions between related parties. Procedure for notifying the transactions of persons exercising managerial duties In the context of the obligation introduced by Regulation (EU) No. 596/2014 on the obligation to disclose transactions, and the instructions of the Hellenic Capital Market Commission, the Company has drafted and implements a Notification Procedure for Transactions of persons who hold managerial duties and persons who have a close relationship with them. The procedure describes the relevant institutional framework and the obligations of the liable persons as defined by it in relation to the disclosure of transactions to the Company and the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 103 Hellenic Capital Market Commission, the non-execution of transactions in closed periods and finally the obligation to inform the Company about the persons with which they maintain close relationships and informing these persons in writing about their respective obligations. Notification of Dependent Relationships In the context defined by article 9 of Law 4706/2020 regarding the criteria that must be met by a member of the Board to be considered independent, the Company applies a Procedure for Notification of Independent Non-Executive Members of the Board, in order to: • specify the criteria of independence defined by the current legislation, where it is deemed necessary; • identify the information collected by each independent non-executive member of the Board; • identify actions and those responsible for determining compliance with the independence criteria. The relevant procedure states the individual criteria, the regularity of its implementation, the evaluation process and finally the actions in case of non-compliance. The Board is entirely responsible for overseeing the implementation of this Procedure, with the assistance of the Nominations and Corporate Governance Committee.. Related Party Transactions The Company has developed and implements the Related Party Policy and Procedure in order to establish the rules and procedures to ensure transparency and effective supervision of the Company's contracts or transactions with related parties, in compliance with the relevant institutional and regulatory framework. Conflict of Interests Policy The Company has established a Conflict of Interest Policy with the aim of providing clear guidance on how conflicts of interest are defined, what are the obligations of the liable persons in relation to them and what are the actions to be taken by the Company to deal with such situations. Privileged Information Management The Company adopts and implements a relevant Privileged Information Management Procedure that includes the appropriate mechanisms and methodologies regarding the effective and lawful management of Privileged Information. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 104 Training of the Board Members & Executives The Company recognizes the primary role of continuous learning and development, in achieving its strategic goals. The recognition of training needs is based on the general needs of the Company, but also based on the specific needs of each executive or Member of the Board, which arise, i.e. from: • the annual evaluation of employees and the training needs arising from it; • the change of the regulatory and legislative framework that governs the operation of the Company; • the introduction of new technologies or new equipment. Sustainable Development Policy The Company has established and adopts a Sustainable Development Policy which reflects the framework of sustainable development and in particular the responsibility of the Company in terms of employee safety, respect for the environment, coexistence with the local community and meeting the needs of customers. The Policy is governed by the values of the Company,  transparency, integrity, respect, appreciation, honest relationship with customers. The principles that support the Sustainable Development Framework of the Company are: • Corporate governance • Market • Human resources • Environment • Local society The Company publishes relevant actions and activities during the preparation of the Company's financial statements in the context of non-financial information. The Sustainable Development Policy and the corresponding framework are monitored by the Corporate Affairs Department with the appropriate supervision of the Board. The Company has issued a sustainable development report for the year 2021 and is already working on the sustainable development report for 2022. The Athens Stock Exchange included IKTINOS HELLAS in the recent revision of its indicators for corporate social responsibility & sustainable development, the environment and corporate governance (Athex ESG index). Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 105 4. Annual Corporate and Consolidated Financial Statements for the period from 1st January to 31st December 2022 4.1. Total Revenue Statement 1/1- 31/12/2022 1/1- 31/12/2021 1/1- 31/12/2022 1/1- 31/12/2021 Sales 10.19 33,018,563 34,967,895 30,817,987 33,014,672 Cost of Sales 10.20 (22,553,598) (22,279,458) (19,878,569) (19,706,916) Gross Profit 10.21 10,464,964 12,688,437 10,939,418 13,307,756 Other operating revenue 10.20 1,969,165 2,117,794 1,423,329 1,522,631 Costs of disposal 10.20 (5,636,626) (5,371,834) (5,636,626) (5,371,834) Administrative expenses 10.20 (4,927,374) (4,803,897) (4,793,269) (4,738,852) Research and development expenses 10.20 (55,587) (20,246) (55,587) (20,246) Other operating expenses 10.21 (82,654) (285,938) (40,430) (268,984) Profit before Tax Financial and investing Results 1,731,888 4,324,316 1,836,836 4,430,471 Financial Revenues 10.22 108,475 250,000 108,475 250,000 Financial Expenses 10.20 (1,845,846) (1,856,847) (1,821,024) (1,792,336) Other Financial Results 10.23 13,710 11,288 13,710 181,096 Investment activity results 10.24 0 (134,166) 0 0 Net Profit / (Loss) before tax 8,227 2,594,591 137,997 3,069,231 Income tax 10.25 (334,183) (170,549) (339,725) (973,715) Net Profit / (Loss) after tax (from continuing & discontinued operations) (325,956) 2,424,042 (201,728) 2,095,516 Other Comprehensive Income: Amounts that are not reclassified in the Profit-Loss Statements in subsequent periods: Change from deferred tax 78,729 72,465 Actuarial Results 36,584 6,061 34,651 6,185 Income taxes on items of other comprehensive income (8,048) (1,333) (7,623) (1,361) Total Other Comprehensive Income after tax 28,535 83,457 27,027 77,289 Total Comprehensive Income after tax (297,421) 2,507,499 (174,701) 2,172,805 Total Comprehensive profit-loss after tax attributable to: Owners of the Parent Company (276,568) 2,513,372 (174,701) 2,172,805 Non-controlling Interests (20,853) (5,873) Profit after taxes of period attributed to Owners of the Parent Company (304,952) 2,430,533 (201,728) 2,095,516 Non-controlling Interests (21,004) (6,490) Main Earnings per Share attributable to Owners of the Parent Company -0.0027 0.0214 -0.0018 0.0184 Summary of profit-loss of the period: Profit before tax, Financial, Investment Results and Depreciation 5,708,845 8,700,657 4,269,806 7,271,369 The accompanying notes form an integral part of these Annual Corporate and Consolidated Financial Statements. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 106 4.2. Statement of Financial Position GROUP COMPANY Assets 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Non-Current Assets Tangible fixed assets 10.1 42,434,306 44,530,541 24,266,472 24,408,827 Property Investments 10.3 29,073,959 29,061,664 102,000 102,000 Intangible assets 10.2 10,575,378 8,323,734 10,437,443 8,157,864 Investments in subsidiaries 10.4 29,967,109 29,921,109 Deferred tax assets 10.5 1,133,654 1,053,806 2,993,880 2,925,554 Other long-term receivables 52,864 55,355 33,165 35,655 83,270,162 83,025,100 67,800,069 65,551,009 Current Assets Reserve 10.7 23,770,561 23,942,368 23,734,630 23,909,741 Customers and other trade receivables 10.8 10,725,562 7,806,627 12,959,423 9,470,324 Other receivables 10.9 3,098,060 3,565,943 2,624,879 2,964,045 Financial assets measured at fair value through profit and loss 10.28 63,055 49,345 63,055 49,345 Cash and cash equivalents 10.10 1,626,101 1,420,374 1,448,934 1,383,290 39,283,339 36,784,657 40,830,922 37,776,745 Total Assets 122,553,501 119,809,757 108,630,991 103,327,754 Own Equity & Liabilities Own Equity Share Capital 10.11 11,432,040 11,432,040 11,432,040 11,432,040 Premium Equity 10.11 43,792 43,792 43,792 43,792 Asset Revaluation differences 10.11 3,149,926 3,149,925 2,901,944 2,901,944 Other Reserves 10.11 9,631,841 9,527,066 9,631,841 9,527,066 Reserve for Own shares 10.11 (181,138) (181,138) (181,138) (181,138) Retained Earnings 10.11 25,062,677 25,444,021 21,920,684 22,200,160 Own Equity attributable to the shareholders of the Parent Company 49,139,138 49,415,706 45,749,163 45,923,863 Non-controlling Interests 485,645 506,497 Total Own Equity 49,624,783 49,922,203 45,749,163 45,923,863 Long-Term Liabilities Long-term debt obligations 10.12 17,924,240 20,534,409 17,924,240 20,534,409 Obligations from financial leases 10.12 1,374,907 914,575 1,374,907 914,575 Deferred tax obligations 10.5 7,457,406 7,571,481 746,286 821,354 Employee benefits obligation due to exit from service 10.13 520,383 501,428 487,133 470,423 Subsidies 10.14 4,236,904 4,806,613 29,212 55,993 Provisions 10.15 268,392 262,713 227,781 224,036 Total Long-Term Liabilities 31,782,232 34,591,219 20,789,559 23,020,791 Short-Term Liabilities Suppliers and other obligations 10.16 7,132,131 5,710,002 6,638,639 5,191,533 Current tax liabilities 10.17 853,605 1,050,262 833,302 1,032,447 Short-term debt liabilities 10.12 22,616,604 18,288,564 22,616,604 18,288,564 Long-term debt liabilities payable in the next fiscal year 10.12 3,860,163 3,894,323 3,860,163 2,903,497 Short-term liabilities from financial leases 10.12 557,538 815,574 557,538 815,574 Other short-term liabilities 10.18 6,126,445 5,537,610 7,586,023 6,151,485 Total Short-Term Liabilities 41,146,487 35,296,335 42,092,269 34,383,100 Total Liabilities 72,928,719 69,887,554 62,881,828 57,403,891 Total Own Equity and Liabilities 122,553,501 119,809,757 108,630,991 103,327,754 The accompanying notes form an integral part of these Annual Corporate and Consolidated Financial Statements. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 107 4.3. Consolidated Statement of Changes in Equity Adjusted balance 1st January 2021 11,432,040 43,792 3,069,050 9,500,557 -181,138 24,176,338 48,040,639 512,371 48,553,010 Regular Reserve Formation 26,508 -26,508 0 0 Usage dividend -1,138,307 -1,138,307 -1,138,307 Transactions with Owners 0 0 0 26,508 0 -1,164,815 -1,138,307 0 -1,138,307 Result of Use 1/1 - 31/12/2021 2,430,533 2,430,533 -6,490 2,424,042 Other Total Income for Period 1,1 - 31,12,2021 80,876 1,965 82,841 617 83,457 Aggregate Total Income for the period 1/1 - 31/12/2021 0 0 0 0 0 2,432,498 2,513,374 -5,873 2,507,499 Balance 31/12/2021 11,432,040 43,792 3,149,926 9,527,065 -181,138 25,444,021 49,415,706 506,498 49,922,203 Adjusted balance 1st January 2022 11,432,040 43,792 3,149,926 9,527,065 -181,138 25,444,021 49,415,706 506,498 49,922,203 Regular Reserve Formation 104,776 -104,776 0 0 Usage dividend 0 0 0 Transactions with Owners 0 0 0 104,776 0 -104,776 0 0 0 Result of Use 1/1 - 31/12/2022 -304,952 -304,952 -21,004 -325,956 Other Total Income for Period 1,1 - 31,12,2022 0 28,384 28,384 151 28,535 Aggregate Total Income for the period 1/1 - 31/12/2022 0 0 0 0 0 -276,568 -276,568 -20,853 -297,421 Balance 31/12/2022 11,432,040 43,792 3,149,926 9,631,841 -181,138 25,062,677 49,139,138 485,645 49,624,783 The accompanying notes form an integral part of these Annual Corporate and Consolidated Financial Statements. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 108 4.4 Corporate Statement of Changes in Equity Share Capital Premium Capital Fair value reserve Other reserves Own Shares Reserves Retained Earnings Total Total own equity at the beginning of period 1/1/2021 11,432,040 43,792 2,827,537 9,500,557 (181,138) 21,266,574 44,889,363 Formation of own participation reserve 0 Regular Reserve Formation 26,508 (26,508) 0 Usage dividend (1,138,305) (1,138,305) Transactions with Owners 0 0 0 26,508 0 (1,164,813) (1,138,305) Result of Use 1/1 - 31/12/2021 2,095,516 2,095,516 Other Total Income for Period 1,1 - 31,12,2021 74,406,07 2,882 77,288 Aggregate Total Income for Period 1/1 - 31/12/2021 0 0 74,406 0 0 2,098,399 2,172,805 Balance 31/12/2021 11,432,040 43,792 2,901,944 9,527,066 (181,138) 22,200,160 45,923,863 Total own capital at the beginning of the period 1/1/2022 11,432,040 43,792 2,901,944 9,527,066 (181,138) 22,200,160 45,923,863 0 Regular Reserve Formation 104,776 (104,776) 0 Distribution of profits of previous years 0 0 Sale of own shares 0 Transactions with Owners 0 0 0 104,776 0 (104,776) 0 Result of Use 1/1 - 31/12/2022 (201,728) (201,728) Other Total Income for Period 1,1 -31,12,2022 0 27,027 27,027 Aggregate Total Income for Period 1/1 - 31/12/2022 0 0 0 0 0 (174,701) (174,701) Balance 31/12/2022 11,432,040 43,792 2,901,944 9,631,841 (181,138) 21,920,684 45,749,163 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 109 4.5. Statement of Cash Flows (Indirect Method) (Amounts in €) GROUP COMPANY 2022 2021 2022 2021 Net operating profits/(losses) before taxes 8,227 2,594,591 137,997 3,069,231 Plus / minus adjustments for: Depreciation 4,546,666 4,949,193 2,459,751 2,870,823 Predictions 99,415 92,282 93,443 75,961 Exchange differences (5,789) (1,310) (5,789) (1,310) Grant revenue recognized (569,709) (572,852) (26,781) (29,924) Results (income, expenses, profits and losses) of investment activity 2,804 (10,409) (13,710) (11,288) Debt interest, related costs and other financial 1,843,862 1,683,505 1,821,024 1,622,527 Income derived from a non-refundable amount of the refundable advance (108,475) (250,000) (108,475) (250,000) Reduction / (increase) of stocks 171,808 (1,344,694) 175,111 (1,340,828) Reduction / (increase) of claims (2,545,244) (1,371,303) (3,149,934) (1,601,303) (Decrease) / increase in liabilities (except banks) 1,507,492 (2,473,476) 2,319,099 (2,113,328) Debt interest and related costs paid (1,573,793) (1,904,469) (1,551,096) (1,835,779) Taxes paid (225,336) (415,299) (205,417) (395,467) Total inflows / (outflows) from operating activities (a) 3,151,928 975,759 1,945,223 59,315 Investment activities Acquisition of subsidiaries, relatives, joint ventures and other investments 0 0 (46,000) (54,000) Liquidation - Sale of subsidiaries, associates, joint ventures and other investments 0 0 0 0 Purchase of tangible and intangible fixed assets (3,585,735) (1,171,899) (3,460,770) (1,014,620) Receipts from sales of tangible and intangible assets 26,903 125,609 15,348 90,436 Buying investment properties 0 0 0 0 Total inflows / (outflows) from investment activities (b) (3,558,832) (1,046,290) (3,491,421) (978,184) Funding activities Proceeds from share capital increase 0 0 0 0 Receipts from investment grants 0 9,094 0 9,094 Receipts from loans issued / taken out 13,608,709 15,457,818 12,088,107 15,457,818 Loan repayments (11,945,828) (15,235,551) (9,426,014) (14,063,588) Payments of liabilities from financial leases (debts) (1,050,251) (994,581) (1,050,251) (994,581) Dividends paid 0 (1,134,612) 0 (1,134,612) Total inflows / (outflows) from financing activities (c) 612,630 (1,897,832) 1,611,842 (725,869) Net increase / (decrease) in cash and cash equivalents for the period (a) + (b) + (c) 205,726 (1,968,363) 65,644 (1,644,738) Beginning of period cash and cash equivalents 1,420,374 3,388,737 1,383,290 3,028,028 Cash and cash equivalents at the end of the period 1,626,101 1,420,374 1,448,934 1,383,290 The accompanying notes form an integral part of these Annual Corporate and Consolidated Financial Statements. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 110 5. Information about the Group 5.1. General information The company Iktinos Hellas is a Greek société anonyme and constitutes the parent company of the group. It was established on 12/03/1974 by the Architect-Mechanic Evangelos Nik. Chaidas, who to date remains the principal shareholder. It operates under the corporate name “IKTINOS TECHNIKI & TOURISTIKI ANONYMI ETAIREIA” and the distinctive title “IKTINOS HELLAS S.A.” (GG 244-12/3/1974 S.A. and Ltd Liab. Co. (E.P.E.)). The Group’s seat is in Metamorfossi Attica (7, Lykovrisseos str., P.C. 144 52). The company’s shares were listed in the Athens Stock Market in 2000. The Company’s term, following a decision of the General Meeting of its shareholders on 12/01/1999, was extended until 11/03/2049. The 2022 annual financial statements of the Group and the Company have been approved at the meeting of the Board of Directors on 26.04.2023 and are subject to the final approval of the Ordinary General Meeting of Shareholders. 5.2. Nature of Operations The objective of the company, as such is defined in article 2 of the company’s articles of association is as follows: Objective of the Company is: ➢ The exploitation in general of marble quarries, granites, decorative rocks, inert materials and related matters and byproducts, as well as the research, opening, shaping or exploitation of those quarries through a contracting or any other form of relationship, as well as the provision of know- how services. ➢ The cutting and processing, in any manner, of those products. ➢ The aforementioned products’ export abroad. ➢ The aforementioned products’ trade domestically. ➢ The conduct of any similar of related commercial activity, which is connected to the above objects. ➢ The conclusion of work contracts, for placing all of the aforementioned products in all kinds of construction works both inlands as well as abroad. ➢ The construction of all types of buildings, in owned or foreign properties, particularly via the known and common in transactions “flats-for-land” exchange system (“antiparochi”), the purchase and sale of property, the undertaking of any kind of technical works or studies, in combination or even separately, both inlands and abroad, on behalf of legal or natural persons of the State, Public Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 111 Organizations as well as public utility Organizations, public law legal entities, etc., as well as the industry of construction materials industry and technical works materials, in general. ➢ The exercise of any type of Touristic Businesses, particularly those regarding the construction and operation of hotels of sleep and food, of hostels, lodges, settlements, beaches and, in general of areas on the seaside, or not, in Greece or abroad, and, in fact, either or owned or leased properties. ➢ The undertaking of commercial agencies of any kind and subject matter, as well as the representation of various houses and businesses of the country or foreign, as well as the distribution, against consideration, of any object related to the objective of the company. ➢ The production and trade of construction materials, their import as well as their export. ➢ Production and exploitation of electric power out of renewable sources of energy (RSE), such as aeolian energy, solar energy, waves’ energy, tidal energy, biomass, gases emitted out of landfill sites and waste treatment plants, biogases, geothermal energy, hydraulic energy exploited by hydropower stations, as well as photovoltaic energy. ➢ The participation, in any manner and under any legal form, in any related, similar or identical, businesses, which operate individually or under a corporate form, that have been already established or are about to be established wither by it or by other persons, with the same objective or objectives related to those mentioned in the present article. ➢ All the aforementioned objectives of the company are acted on both in the interior of Greece as well as in any other foreign country. By the extraordinary General Meeting of Shareholders of 20th March 2012, the objective of the Company was extended as follows: ➢ “Production and trade of agricultural products in Greece and abroad, whether these are produced in Greece or abroad, as well as the participation, in any manner and under any legal form, in any kind of related, similar or identical businesses, which operate individually or under a corporate form, that have been already established or are about to be established wither by it or by other persons, with the same objective or objectives related to those mentioned in the present article.” The main sector in which IKTINOS HELLAS S.A. is business active today is the sector of marble quarrying, processing and trade in marbles and granites and other decorative materials. 5.3. Participations in other companies IKTINOS HELLAS S.A. participates, directly and indirectly, in the following companies: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 112 FEIDIAS HELLAS A.V.E.E. The company was established in 1981 as a Limited Liability Company (E.P.E.), while in 1986 it was transformed into an A.V.E.E. Its seat is at Vrilissia Municipality, Attica, at 12A, Tinou str. Its primary object of business is marble processing, particularly the section of blocks, mainly for third parties. (piecework), as well as the export of the aforementioned products abroad, any similar of related work, which is connected to the above objects. Finally, an object of activity is also the conclusion of work contracts, for placing all of the aforementioned products in all kinds of construction works. KALLITECHNOKRATIS E.P.E. The KALLITECHNOKRATIS PROVISION OF SERVICES E.P.E. company was established in 1999. KALLITECHNOKRATIS E.P.E is seated at Metamorfossi, Attica and its offices are at 7, Lykovrissis str. The company’s objective is the development of e sales and marbles network abroad. Its business plan has been approved by the ministry for Development and it has been included in the subsidies of the Industry Business Plan (subprogram 4, measure 2, action 9 – CLUSTERS Networks). IKTINOS HELLAS SA participates in this company by 25% and FEIDIAS HELLAS SA by 5%. The ministry of Development has rejected the approval of the subsidies and KALLITECHNOKRATIS E.P.E. has appealed to the Council of State. It has been put under liquidation. IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. (IDEI S.A.) IKTINOS HELLAS S.A., in the context of its direct business activity in the aeolian energy, has acquired at a 100% percentage (against a total cost of Euro 2,449,500) on 21/12/2007, the company under the corporate name IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. (ELECTRIC POWER PRIVATE CORPORATION S.A.), whose objective is the production of electric power by any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy. LATIRUS ENTERPRISES LIMITED On 12/12/2006, IKTINOS HELLAS S.A. acquired (for an amount of 8,283 Euro) the Cypriot company named LATIRUS ENTERPRISES LIMITED, and which transferred the package of shares of IKTINOS TECHNIKI & TOURISTIKI S.A it owned. Thereafter, an increase of equity Share Capital took place (the total amount of the equity Share Capital increase amounted to Euro 9,126,557), in which the Cyprus company DolphinCI Thirteen Limited participated, a 100% subsidiary of the Dolphin Capital Investors LTD investment company, which is listed in the London Stock Exchange. Through this and from the direct sale of shares, IKTINOS HELLAS S.A. retained a participation of a percentage of (20.344%) of the shares. IKTINOS HELLAS proceeded to purchase 79,656 % of Latirus Ltd for 14,000,000 Euro from DolphinCi Thirteen Ltd on 30/3/2018. After the acquisition, IKTINOS HELLAS owns 100% of Latirus Ltd and is the sole shareholder. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 113 AIOLIKI MEGA ISOMA S.A. In the context of its business activity in the aeolian energy, IKTINOS HELLAS S.A. proceeded to establish by deed of incorporation no 8497/21-1-2010, at a 100% percentage, the “AIOLIKI MEGA ISOMA ELECTRICITY PRODUCTION SOCIETE ANONYME”, whose purpose is the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy. The Extraordinary General Meeting of the company's shareholders dated 29/12/2021 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 31/12/2021 the decision with number 13293/31-12-2021 of the Chamber of the GEMI Service (ΑΔΑ: ΨΘΜΦ469ΗΕΘ-Ι89) was registered with KAK 2766644 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI MEGA ISOMA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI MEGA ISOMA S.A.” with GEMI No. 124526201000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 29/12/2021. On 08/12/2022 the minutes of the General meeting dated 05/12/2022 was registered with ΚΑΚ 3352981 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 05/12/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI MEGA ISOMA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI MEGA ISOMA S.A” and GEMI No 124526201000. The result of the liquidation in the individual statements of the company "AIOLIKI MEGA ISOMA S.A." is 84,682 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet. AIOLIKI LYKOFOLIA S.A. In the context of its business activity in the aeolian energy, IKTINOS HELLAS S.A. proceeded to establish by deed of incorporation no 8854/24-2-2011, at a 100% percentage, the “AIOLIKI LYKOFOLIA ELECTRICITY PRODUCTION SOCIETE ANONYME”, whose purpose is the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy. The company modified the existing production license from 9 MW to 3 MW in order to get a guaranteed sale price for the generated electric energy. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 114 AIOLIKI MAVROLITHARO In the context of its business activity in the aeolian energy, IKTINOS HELLAS S.A. proceeded to establish by deed of incorporation no 8855/24-2-2011, at a 100% percentage, the “AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME””, whose purpose is the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy. The Extraordinary General Meeting of the company's shareholders dated 12/1/2022 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 18/1/2022 the decision with number 557/18-1-2022 of the Chamber of the GEMI Service (ΑΔΑ: 6640469ΗΕΘ-Υ5Η) was registered with KAK 2778674 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI MAVROLITHARO S.A.” with GEMI No. 118804701000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 12/1/2021. On 09/11/2022 the minutes of the General meeting dated 09/11/2022 was registered with ΚΑΚ 3248116 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 09/11/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI MAVROLITHARO” and GEMI No 118804701000. The result of the liquidation in the individual statements of the company "AIOLIKI MAVROLITHARO S.A." is 49,145 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet. AIOLIKI SYNORA In the context of its business activity in the aeolian energy, IKTINOS HELLAS S.A. proceeded to establish by deed of incorporation no 9377/21-3-2013, at a 100% percentage through its subsidiary company IDEI S.A., the “AIOLIKI SYNORA ELECTRICITY PRODUCTION SOCIETE ANONYME”, whose purpose is the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy. The Extraordinary General Meeting of the company's shareholders dated 12/1/2022 decided to suspend its operations. The strong reaction from the local communities to the installation of wind farms, the reduced and non-guaranteed sale price of electric energy as well as the high cost of maintaining the existing Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 115 licenses led to the revision of the further activity in the wind energy sector. The company had virtually ceased its business and there was no prospect of resuming operations and was subsequently liquidated. On 2/2/2022 the decision with number 988/2-2-2022 of the Chamber of the GEMI Service (ΑΔΑ: 6ΦΞ469ΗΕΘ-799) was registered with KAK 27867711 in the General Commercial Register (G.E.M.I.), with which the resolution of the company under the name “AIOLIKI SYNORA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “AIOLIKI SYNORA S.A.” with GEMI No. 124658401000, according to a relevant decision of the Extraordinary General Meeting of the Shareholder dated 12/1/2021. On 29/11/2022 the minutes of the General meeting dated 09/11/2022 was registered with ΚΑΚ 3341566 in the General Commercial Register (G.E.M.I.), which approved the final balance sheet after liquidation as of 09/11/2022 of the Societe Anonyme under the name “(UNDER LIQUIDATION) AIOLIKI SYNORA SOLE SHAREHOLDER ELECTRICITY PRODUCTION SOCIETE ANONYME” and the distinctive title “(UNDER LIQUIDATION) AIOLIKI SYNORA S.A.” and GEMI No 124658401000. The result of the liquidation in the individual statements of the company "AIOLIKI SYNORA S.A." is 25,250 euro loss. Subsequently, the company was deleted from GEMI due to the approval of the liquidation balance sheet IKTINOS TECHNIKI & TOURISTIKI IKTINOS TECHNIKI & TOURISTIKI is active in the real estate sector and will develop a touristic establishment in the location Faneromeni Bay of the Municipality of Sitia in an area of approximately 2,689 acres. 5.4. Companies participating in the consolidated financial statements of the Group The companies participating in the consolidated financial statements are presented in the following table:: CORPORATE NAME SEAT PARTICIPATION PERCENTAGE METHOD OF CONSOLIDATION IKTINOS HELLAS S.A. 7, Lykovrissis, Metamorfossi Attica Parent Full Consolidation FEIDIAS HELLAS S.A. 12Α, Tinou, Vrilissia Attica 90.00% Full Consolidation KALLITECHNOKRATIS E.P.E. 7, Lykovrissis, Metamorfossi Attica 30.00% Full Consolidation IDEI S.A. 7, Pangaiou, Drama 100.00% Full Consolidation AIOLIKI MEGA ISOMA S.A. 7, Lykovrissis, Metamorfossi Attica 100.00% Full Consolidation AIOLIKI MAVROLITHARO S.A. 7, Lykovrissis, Metamorfossi Attica 100.00% Full Consolidation AIOLIKI LYKOFOLIA S.A. 7, Lykovrissis, Metamorfossi Attica 100.00% Full Consolidation AIOLIKI SYNORA S.A. 7, Lykovrissis, Metamorfossi Attica 100.00% Full Consolidation IKTINOS TECHNIKI & TOURISTIKI S.A. 7, Lykovrissis, Metamorfossi Attica 97.76% Full Consolidation LATIRUS ENTERPRISES Ltd 12, Esperidon, Nicosia 100.00% Full Consolidation In the special financial statements of the parent company, the subsidiaries are valued at the acquisition value. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 116 Kallitechnokratis Ltd. is integrated with the full consolidation method because the parent company has control. 6. Framework of preparation of financial statements 6.1 General framework of preparation The consolidated financial statements of IKTINOS HELLAS S.A. have been prepared on the basis of the principle the going concern and are in accordance with the International Financial Reporting Standards (IFRS) that have been issued by the International Accounting Standards Board (IASB), as well as with their Interpretations, which have been issued by the Standards Interpretations Committee (IFRIC) and have been adopted by the European Union until 31/12/2022. The company and consolidated financial statements have been prepared on the basis of the historical cost principle, as this is amended by the readjustment of plots and buildings and of financial receivables and payables at reasonable values through the result. The preparation of financial statements in conformity with the International Financial Reporting Standards (IFRS) requires the use of accounting estimates. It also requires the judgment of the management in applying the accounting principles of the group. Cases involving a higher degree of judgment or complexity, or cases where assumptions and estimates are significant to the consolidated financial statements, are included in note 6.3. The accounting principles on the basis of which the financial statements were prepared, are consistent to those used for preparing the annual financial statements of the Group for fiscal year 2021 and have been consistently applied to all the periods presented, apart from those described in paragraph 6.2. The Company's working capital on 31/12/2022 is negative and amounts to 1,261,347 euros. The Company, in the context of a possible need to strengthen liquidity, proceeded with the following actions: 1. On 3/4/2023 it settled EFKA obligations in the amount of 1,356,785 euro in 24 installments, so the amount of 791,458 euro concerning obligations for 2024 is transferred to the long-term liabilities. 2. Also, the Company received return of Share Capital in the amount of 8,425,000 euro from the subsidiary company IDEH S.A.. On 09/03/2023 the decision dated 03/03/2023 of the Extraordinary General Meeting of the company IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. with GEMI No. 051429019000 (former Μ.Α.Ε. 53664/51 /Β/03/01) was registered in GEMI with KAK 3495562, which decided the reduction of the company's share capital by eight million four hundred and twenty-five thousand (8,425,000) euro, with a reduction of the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 117 nominal value of the share by twenty-five (25) euro and the return of capital of 8,425,000 euro, twenty- five (25) euro per share to the company's shareholders, with consequent amendment of article 5. 3. On 3/3/2023 it paid the short-term loan of 1,790,000 euro to Piraeus Bank. Management closely monitors the developments of the world market and estimates that it will further reduce production costs, due to the better performance of the production process both qualitatively and quantitatively, as a consequence of its investment program of the last three years. On top of the above actions, the Company has defined a cost saving program, as the revision of existing agreements with partners together with the reduction of energy costs that exist in 2023, cover the adequacy of cash reserves and the necessary available sources of financing 6.2. Changes in Accounting Principles 6.2.1 New Standards, Interpretations, Revisions and Amendments to Existing Standards which have entered into force and have been adopted by the European Union The following new Standards, Interpretations and amendments to Standards have been issued by the International Accounting Standards Board (IASB), have been adopted by the European Union and are mandatory as of 01/01/2022 or subsequently. • Amendments to IFRS 3 "Business Combinations", IAS 16 "Property, Plant and Equipment", IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" and "Annual Improvements 2018 - 2020" (effective for annual periods beginning on or after on 01/01/2022) In May 2020, the IASB issued a series of amendments, including limited-purpose amendments to three Standards, as well as Annual Improvements of the Board. These amendments provide clarification regarding the wording of the Standards or correct minor consequences, omissions or conflicts between the requirements of the Standards. More specifically: - The Amendments to IFRS 3 "Business Combinations" update a reference to IFRS 3 in the Conceptual Framework of the Financial Reporting without amending the accounting requirements relating to business combinations. - The Amendments to IAS 16 "Property, Plant and Equipment" prohibit a company from deducting from the cost of fixed assets amounts received from the sale of items produced during the preparation of such fixed assets to be ready for use. Instead, the company recognizes these sales revenues and related costs in the Income Statement. - The amendments to IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" determine the costs that a company should include in assessing whether a contract is loss-making. - The Annual Improvements of IFRS - 2018-2020 Cycle make minor amendments to IFRS 1 "First-time Adoption of International Financial Reporting Standards", IFRS 9 "Financial Instruments", IAS 41 "Agriculture" and the Explanatory Examples that accompany IFRS 16 "Leases". The amendments do not affect the consolidated / company Financial Statement. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 118 6.2.2 New Standards, Interpretations, Revisions and Amendments to Existing Standards which have not yet entered into force or have not been adopted by the European Union The following new Standards, Interpretations and amendments to Standards have been issued by the International Accounting Standards Board (IASB), but have either not yet entered into force or have not been adopted by the European Union. IFRS 17 "Insurance Contracts" (effective for annual periods beginning on or after 01/01/2023) In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an intermediate Standard, IFRS 4. The purpose of the IASB was to develop a single principle-based standard for accounting for all types of insurance contracts, including reinsurance contracts held by an insurance company. A single principle- based Standard will enhance the comparability of financial reporting between entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply to financial information related to the insurance contracts it issues and the reinsurance contracts it holds. In addition, in June 2020, the IASB issued amendments, which, however, do not affect the fundamental principles introduced when IFRS 17 was first issued. The amendments are designed to reduce costs by simplifying certain requirements of the Standard, to lead to a more easily explained financial performance, as well as to facilitate the transition by postponing the date of application of the Standard until 2023, while providing additional assistance to reduce the effort required during the first application of the Standard. The Group/Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have been adopted by the European Union with date of entry into force on 01/01/2023. • Amendments to IAS 1 "Presentation of Financial Statements" (effective for annual periods beginning on or after 01/01/2023) In February 2021, the IASB issued limited-purpose amendments relating to disclosures in accounting policies. The purpose of the amendments is to improve the disclosures of accounting policies in order to provide more useful information to investors and other users of the Financial Statements. More specifically, the amendments require the disclosure of important information relating to accounting policies, rather than the disclosure of significant accounting policies. The Group/Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have been adopted by the European Union with date of entry into force on 01/01/2023. • • Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates” (effective for annual periods beginning on or after 01/01/2023) In February 2021, the IASB issued limited-purpose amendments that clarify the difference between a change in accounting estimate and a change in accounting policy. This distinction is important, as the change in accounting estimate is applied without retroactive effect and only for future transactions and other future events, in contrast to the change in accounting policy that has retroactive effect and applies to transactions and other events of the past. The Group/Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have been adopted by the European Union with date of entry into force on 01/01/2023. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 119 • Amendments to IAS 12 "Income Taxes: Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction" (effective for annual periods beginning on or after 01/01/2023) In May 2021, the IASB issued targeted amendments to IAS 12 to determine how entities should handle deferred tax on transactions such as leases and decommissioning obligations - transactions that entities recognize at the same time a receivable and a liability. In certain cases, entities are exempt from recognizing deferred tax when they recognize receivables or liabilities for the first time. The amendments clarify that this exemption does not apply and entities are required to recognize deferred tax on those transactions. The Group/Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have been adopted by the European Union with date of entry into force on 01/01/2023. • Amendments to IFRS 17 "Insurance Contracts: First Application of IFRS 17 and IFRS 9 - Comparative Information" (effective for annual periods beginning on or after 01/01/2023) In December 2021, the IASB issued a limited-purpose amendment to the transition requirements to IFRS 17 to address a significant issue related to the provisional discrepancy between liabilities under insurance contracts and financial assets under comparative information in the context of the first application of IFRS 17 "Insurance Contracts" and IFRS 9 "Financial Instruments". The amendment is intended to improve the usefulness of the financial information that will be presented in the comparative period for the users of the Financial Statements. The Group/Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have been adopted by the European Union with date of entry into force on 01/01/2023. • Amendments to IAS 1 "Classification of Liabilities as Current or Non-current" (effective for annual periods beginning on or after 01/01/2024) In January 2020, the IASB issued amendments to IAS 1 that affect the requirements for the presentation of liabilities. In particular, the amendments clarify one of the criteria for classifying a liability as non-current (long-term), the requirement for an entity to have the right to defer the settlement of the liability for at least 12 months after the reporting period. Amendments include: (a) clarifying that an entity's right to defer settlement should exist at the reporting date; (b) clarifying that the classification of the liability is not affected by management's intentions or expectations regarding the exercise of the deferral; (c) explaining how borrowing conditions affect the classification; and (d) clarifying the requirements for the classification of liabilities of an entity that intends to settle or may settle through the issuance of own equity instruments. In addition, in July 2020, the IASB issued an amendment to postpone by one year the date of entry into force of the amendment originally issued in IAS 1, as a result of the spread of the Covid-19 pandemic. However, in October 2022, the IASB issued an additional amendment aimed at improving the information companies provide about long-term debt commitments. IAS 1 requires a company to classify a loan as non-current only if the company can avoid settling the loan within 12 months after the reporting date. However, a company's ability to do so often depends on compliance with its commitments. The amendments to IAS 1 specify that commitments to be met after the reporting date do not affect the classification of the loan as short-term or long-term at the reporting date. Instead, the amendments to the standard require a company to disclose information about these commitments in the notes to the financial statements. The amendments are effective for annual periods beginning on or after January 1, 2024, with early adoption permitted. The Group / Company will consider the impact of all of the above on its Financial Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 120 Statements, although they are not expected to have any. The above have not been adopted by the European Union. • Amendments to IFRS 16 "Leases: Lease Obligation on a Sale and Leaseback" (applicable for annual periods beginning on or after 01/01/2024) In September 2022, the IASB issued limited-purpose amendments to IFRS 16 Leases that add requirements for how a company accounts for a sale and leaseback after the date of the transaction. A sale and leaseback is a transaction in which, a company sells an asset and leases the same asset back for a period of time from the new owner. IFRS 16 includes requirements regarding the accounting treatment of a sale and leaseback at the date the transaction takes place. However, the Standard did not specify how to measure the transaction after that date. The issued amendments add to the requirements of IFRS 16 regarding sale and leaseback, thus supporting the consistent application of the accounting standard. These amendments will not change the accounting treatment for leases other than those arising from a sale and leaseback transaction. The Group / Company will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union. 6.3 Significant accounting estimations and judgments of the Management The preparation of the financial statements in accordance with the International Financial Reporting Standards (IFRS) requires the use of judgements, estimates and assumptions from the Management which affect the disclosed balances of assets and liabilities as at the balance sheet date of the financial statements. They affect also the contingencies disclosure of as at the balance sheet date of the financial statements and the amounts of income and expense relating to the reporting year. The actual results may differ from those estimated. The estimations and judgements are based on past experience and other factors, including also the expectation of future events that are believed to be reasonable under the specific circumstances, while they are constantly reevaluated with the use of all the information available. The main estimates and assessments of the Management are the following: ▪ Estimates when calculating the use value of CGU The Group performs a measurement of impairment losses in investments in subsidiary and associate companies when there is an indication of impairment, in accordance with the provisions of IAS 36. In order to determine whether there are grounds for impairment, the calculation of the value in use and the fair value less cost of disposal is required for each Cash Generating Unit (CGU). The recoverable amounts of CGU are determined for the purposes of measuring impairment, based on the calculation of their value in use, which requires estimations. For the calculation of value in use, the cash flow projections are discounted at their present value with the use of a discount rate which reflects the current market assessments of the time value of money and the risks specific to the CGU. Cash flow projections are used for the calculation which are based on approved business plans by the Management. These business plans Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 121 and the cash flow projections usually cover a five-year period In particular, for the energy sector, assumptions that prevail in the energy market are used. The period considered by the management is more than five years, a period which is encouraged by IAS 36, as especially for renewable energy units even a longer period will be considered quite satisfactory. Cash flows for periods beyond budgeted projections, are extended based on the estimated growth rate. The main assumptions used for determining the recoverable value of the different CGU are mentioned in note 10.4 of the financial statements, where they are further explained. Provision for Income Tax The provision for income tax based on IAS 12 is calculated with the estimation of the taxes which will be paid to the tax authorities and include the current income tax, for each financial year and a provision for additional taxes which may arise from tax audits. In order to determine the provision of the Group for income taxes the above must be thoroughly understood. Although it is not possible to reliably predict the results of the tax audit, the companies of the Group have used statistical data from prior tax audits of audited tax years, and have made a provision for the potential tax liabilities which may arise following a tax audit of the unaudited tax years. In the event that the final taxable amounts which arise following the tax audits are different to the amounts initially recognized, these differences will affect the income tax and the provisions for deferred tax for the financial years for which the determination of tax difference took place. Provision for expected credit losses from customer receivables The Group and the Company apply the simplified approach of IFRS 9 for the calculation of expected credit losses, by which the provision for impairment is measured at an amount equal to the expected credit losses over the lifecycle of the receivables from customers. The Group and the Company makes provisions for doubtful debts in respect to specific customers when there is information or indications which indicate that the payment of the total respective liability or part of it is not probable. The Management of the Group reassesses the adequacy of the allowance for doubtful debts periodically, taking into account its credit policy and reports available by the Group’s Legal Department, which arise based on the processing of historical experience and recent developments in cases handled by it. In addition, it evaluates the recoverability of trade receivables by reviewing also the maturity of customers’ balances, their credit history and the settlement of outstanding balances related to receivables subsequent to the reporting period. Provision for personnel compensation The amount of the provision for compensation of personnel is calculated using actuarial methods. The actuarial method requires the assessment of specific parameters such as discount rates, the rate of increase in the remuneration of personnel, the increase in the consumer price index and the expected Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 122 remaining working life. The assumptions used contain a great amount of uncertainty and the Group’s Management re-evaluates them on a constant basis. The amount of compensation paid depends on the years of service, the amount of remuneration and the manner of exiting the service (dismissal or retirement). The establishment of the right to participate in these programs is carried out through the distribution of benefits in the last 16 years until the date of the employee’s retirement. Contingent assets and contingent liabilities The Group is involved in legal actions and claims in its usual course of operation. The management believes that any settlements would not adversely affect the financial position of the Group on 31 st December 2022. However, the determination of the potential liabilities related to legal actions and claims is a complicated procedure which includes assessments regarding the potential consequences and interpretations regarding the laws and regulations. Changes in the assessments and interpretations are likely to lead to an increase or decrease of the potential liabilities of the Group in the future. Estimation of useful life of depreciable assets The management of the company reviews at each year end the useful life of depreciable assets. On 31 st December 2022 the management of the company assesses that the useful lives represent the expected usefulness of the assets. Impairment of fixed tangible assets Fixed tangible assets are reviewed for impairment purposes when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the calculation of the value in use the Management assesses the future cash flows from the asset or the cash generating unit of future cash flows and chooses the appropriate discount rate to calculate the current value of future cash flows. Measurement of the fair value of investment property Estimates of investment property are supported by a valuation report carried out by an independent valuation firm, which determines the value of investment property by following the internationally recognized valuation methods on a case-by-case basis. The most appropriate indication of fair value is the current values in an active market for related leases as well as other contracts. If it is not possible to obtain such information, the value is determined through a range of reasonable estimates of fair values. In most cases, the Discounted Cash Flow Analysis Technique was considered the most appropriate. Cash flow swap models are based on reliable estimates of future cash flows arising from assumptions about achievable ratios relative to the market in question and international competitiveness using discount rates that reflect Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 123 the current market estimate of the uncertainty of the amount and the timing of these cash flows. For the application of cash flow discounting techniques, assumptions that establish estimates for fair value determination are used and are related to: expected future income, completeness, vacant periods, construction costs, maintenance obligations, as well as appropriate discount rates. Further information on key assumptions is given in note 10.28. Provisions for environmental restoration The Group makes provision for its related obligations to restore the natural environment from the exploitation of quarries and wind farms, resulting from the applicable environmental legislation or from binding practices of the Group. This provision is discounted to present value and recognized in the cost of tangible assets. The discount rate to which the future liability is discounted is the pre-tax rate that reflects current market estimates for the time value of money. Further information in Notes 8.4 and 10.15. 7. Main Accounting Principles The accounting principles based on which the attached financial statements are prepared and which the Group systematically applies are the following. 7.1. Segment reporting Business segment is a group of related assets and activities which provide products and services which are subject to different risks and returns that are different from those of other business segments. Geographical segment is a geographical area which provides products and services which are subject to risks and returns that are different from those of other areas. The Group is mainly active in the operation of marble quarries (mining and trade of Marbles). Geographically, the Group is active in Greece, the Eurozone and Other Countries. 7.2. Consolidation Subsidiaries: Are all the companies which are managed and controlled, directly or indirectly, by another company (parent), either through the ownership of the majority of the shares of the company in which the investment was made, or through its dependence on the know-how provided to it by the Group. In other words, subsidiaries are entities on which parent companies exercise control. Iktinos Hellas acquires and exercise control though voting rights. The existence of any potential voting rights which are exercisable at the time the financial statements are drawn up, is taken into account in order to determine whether the parent company exercises control over the subsidiaries. Subsidiaries are fully consolidated (full consolidation) with the method of acquisition from the date that control is acquired over them and cease to be consolidated from the date that such control does not exist. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 124 The acquisition of a subsidiary by the Group is accounted for by using the purchase method. The cost of acquisition of a subsidiary is the fair value of the assets transferred, the shares issued and the liabilities assumed at acquisition date, plus any costs directly linked to the transaction. The assets, liabilities and potential liabilities which are acquired in a business combination are measured at their fair values at the acquisition date irrespective of the proportionate share. The cost of acquisition above the fair value of the assets acquired, is recognized as goodwill. if the total cost of acquisition is less than the fair value of the assets acquired, the difference is recognized immediately in the income statement. Intercompany transactions, outstanding balances and non-realized profits from transactions between companies of the Group are eliminated. The non-realized losses are also eliminated, unless the transaction provides indications of impairment of the transferred asset. The accounting principles of the subsidiaries have been adjusted in order to be in conformity with the ones adopted by the Group. Impairment of investment in subsidiaries Control (Company Financial Statements): The participation of the parent company in the consolidated subsidiaries is valued at acquisition cost less accumulated impairment losses. At every reporting date, the Management assesses the existence or not of external and internal indicators of impairment of its investments on subsidiary companies. In the event that there are indications, the Company measures the impairment and determines the recoverable value for each Cash Generating Unit as the higher of an asset's fair value less costs of disposal and its value in use. For the purposes of measuring impairment, the investments in subsidiaries are classified in the smallest group of assets which may generate independent cash flows to other assets or groups of assets of the Group (Cash Generating Units). Impairment loss is recognized as the amount by which the carrying amount of a Cash Generating unit exceeds its recoverable amount, which is the higher of an asset's fair value less costs of disposal and its value in use. For the determination of the value in use, the Management determines the future cash flows expected to be derived from each Cash Generating Unit determining an appropriate discount rate in order to calculate the current cash flow value. The assets used for the impairment test arise directly from the approved budget of the Management. Discount factors are determined separately for each Cash Generating Unit and reflect the respective risks which have been determined by the Management for each one of them. Related companies: Are those entities over which the Group has significant influence but do not fulfil the conditions to be classified as subsidiaries or as joint venture. Investments in associates are initially recognized at cost and then valued using the equity method. At the end of each period, the cost of acquisition is increased by the Group’s share in the associates’ net assets change and is decreased by the dividends received from the associates. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 125 As regards acquisition goodwill, it decreases the participation value by burdening the period’s results, when its value decreases. After the acquisition, the Group’s share in the profit or loss of associates is recognized in the income statement, while the share of changes in reserves is recognized in equity. The accumulated changes affect the accounting value of the investments in associated companies. When the Group’s share in the losses of an associate is equal or larger than the carrying amount of the investment, including any other doubtful debts, the Group does not recognize any further losses, unless it has guaranteed for liabilities or made payments on behalf of the associate or those that emerge from share ownership. Unrealized profits from transactions between the Group and its associates are eliminated according to the Group’s percentage ownership in the associates. Unrealized losses are eliminated, except if the transaction provides indications of impairment of the transferred asset. 7.3. Conversion of foreign currency The consolidated financial statements are reported in Euro, which is the operating currency and the reporting currency of the parent Company and all of its subsidiaries. “Operating“ is the currency of the primary economic environment in which the Group operates and on the basis of which the items in the financial statements of the Group’s companies are measured. Transactions in foreign currencies are converted to the operating currency using the rates in effect at the date of the transactions. Profits and losses from foreign exchange differences that result from the settlement of such transactions during the period and from the conversion of monetary items denominated in foreign currency using the rate in effect at the balance sheet date are recorded in the results. Foreign exchange differences from non- monetary items that are valued at their fair value are considered as part of their fair value and are thus treated similarly to fair value differences. 7.4. Tangible Assets Fixed assets are reported in the financial statements at acquisition cost or deemed cost, as determined based on fair values as at the transition dates, less accumulated depreciations and any impairment suffered by the assets. The acquisition cost includes all the directly attributable expenses for the acquisition of the assets. After initial recognition the owner-occupied properties are valued at fair value and the excess is recorded in equity “Adjustment Differences”, while the negative which is not set-off with the respective inventory is recorded in the income statement of the period. Subsequent expenditure is added to the carrying value of the tangible fixed assets or is recorded as a separate fixed asset only if it is probable that future economic benefits will flow to the Group and their cost Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 126 can be accurately and reliably measured. The repair and maintenance cost is recorded in the results when such is realized. Depreciation of tangible fixed assets (other than land plots which are not depreciated) is calculated using the straight line method over their useful life, as follows: Buildings 12 - 20 years Mechanical equipment 6 - 10 years Vehicles 5 - 7 years Other equipment 3 - 5 years The residual values and useful economic life of tangible fixed assets are subject to reassessment at each balance sheet date. When the accounting value of tangible fixed assets exceeds their recoverable amount, the difference (impairment) is immediately recorded as an expense in the income statement. Upon sale of the tangible fixed assets, any difference between the proceeds and the accounting value are recorded as profit or loss in the income statement. Repairs and maintenance are recorded as expenses in the period they occur. Restoration Cost of Quarries-Aeolian Parks: The entities which are active in the mining and renewable sources of energy sector are subject to environmental restoration obligations. In accordance with IAS 16 “Property, Plant and Equipment”, the cost at which an tangible asset is recognized, includes amongst other things also the initial evaluation of the cost of dismantling or restoring the specific item in the site. This obligation arises from the construction of the fixed asset, the formation of the surrounding environment and the mining activity of the company. The group has recognized a provision for the restoration of the quarries and wind farm areas (refilling works, planting of areas and other works) which has the following characteristics: 1. It has been recognized as part of the cost of tangible assets (formations of quarries/wind farms) in accordance with IAS 16, and 2. It has been recognized as an obligation, in accordance with IAS 37. The total sum of the amount for the provision of restoration and the carrying value of the tangible assets (formation of site) is not in excess of the recoverable amount for the specific fixed assets. In the event that the total amount of the carrying values of the tangible assets and the provision for restoration exceeds the recoverable value, the excess amount is recognized in the income statement in the period they occur. This specific provision for restoration is discounted at present values and is recognized at the cost of the tangible assets. The discount rate with which the future obligation is discounted is the interest rate before tax which reflects the current market assessments of the time value of money. The provision for restoration is recognized in the income statement during the useful life of the tangible assets, through their depreciation. The estimated expenditure for restoration are reassessed at each Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 127 Balance Sheet date, as to their adequacy and are accordingly adjusted by accordingly adjusting the respective provision. On 31/12/2022 the restoration provision amounted in total for all the Quarries to € 227,781 and € 40,611 for Aeolian parks, while in 31/12/2021 it was € 224,036 and € 38,677 respectively. 7.5. Investments in Property Investments in real estate are investments in all those properties held by the owner, either to lease rents or to increase their value (capital reinforcement) or both. Investment property is initially measured at acquisition cost, including transaction costs. They are subsequently recognized at their fair value. Fair value is determined by independent valuers with sufficient experience of the location and nature of the investment property. The fair value of an investment property is the price at which the property can be exchanged between informed and willing parties in a normal commercial transaction. Fair value excludes a price increased or decreased due to special terms or circumstances, such as unusual financing, sale with a lease, special consideration or concession made by anyone related to the sale. Any profit (or loss) arising from an alteration in the fair value of the investment constitutes a result and is recognized in the comprehensive income for the year in which it arises. A determinant of fair value is the current price in an active market for similar properties, at the same location and in the same situation. If there are no current prices for similar properties in an active market at the same location, then the following can be used: • Current prices of an active market for different properties, with corresponding adjustments to reflect differences. • Recent prices on less active markets with adjustments reflecting the differences in economic conditions relative to the date of the transaction. • Discounted cash flows from current lease agreements for similar properties, at the same location and in the same situation. 7.6. Intangible Assets Intangible assets include the rights to use and exploit the Quarries and other Tangible Assets, research and development expenditure, as well as software licenses. Right to Operate Quarries and Other Tangible Assets: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 128 Include the Rights to lease Land, as well as the Mineral Resources Exploitation Rights. The Group initially recognizes them at acquisition cost or at their nominal value. Following initial recognition, the Group adopts the Accounting principle of reporting the cost model and reporting the intangible assets at their cost less the accumulated depreciation and every accumulated impairment loss. Exploration and Evaluation of Mineral Resources Expenses: IFRS 6 does not specify specific principles for recognizing and measuring the costs which are realized during the stage of exploration and evaluation of mineral resources. Consequently, it would be acceptable for the specific costs to be recognized either as assets and to be deleted when it is determined that they will not generate any economic benefits or to be directly recognized in the income statement when realized if the final result (exploitation of the quarry) is uncertain. The group measures the expenditures which arise from exploration and evaluation at cost, recognizing them as assets, if it judges that they will generate future economic benefits. The group makes a deduction for the depreciation of expenses for research and development of quarries in accordance with the term of the license for their exploitation, which ranges from 15 to 25 years. Costs which regard the exploration and evaluation of mineral resources includes as a rule the following: (a) the acquisition of the exploration right (b) the topographical, geological, geochemical and geophysical studies, (c) the soil-drilling test, (d) the excavation in explored trenches/pits, (e) sampling and (f) the activities related to the assessment of the technical feasibility and financial viability of mining a mineral resource. The group ensures that the assets which arise from exploration and evaluation are depreciated at the end of each period. If it is assessed that the specific costs will not generate future economic benefit then their total is recognized in the income statement of the period. Software: Software licenses are valued at cost less depreciation. Depreciation is calculated using the straight line method over their useful life, which ranges from 1 to 3 years. 7.7. Asset Impairment Assets with an indefinite useful life are not depreciated and are subject to an impairment review annually and when some events suggest that the carrying value may not be recoverable. Assets that are depreciated are subject to an impairment review when there is indication that their carrying value will not be recoverable. The recoverable value is the greater between the net sales value and the value in use. An Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 129 impairment loss is recognized by the company when the accounting value of these assets (or the Cash Generating Unit) is greater than its recoverable amount. Net sales value is the amount received from the sale of an asset at an arm’s length transaction in which participating parties have full knowledge and participate voluntarily, after deducting any additional direct cost for the sale of the asset, while value in use is the present value of estimated future cash flows that are expected to flow into the company from the use of the asset and from its disposal at the end of its estimated useful life. 7.8. Financial Instruments Financial assets and financial liabilities are recognized in the statement of financial position when and only when the Group becomes a party to the financial instrument. The Group ceases to recognize a financial asset when and only when the contractual rights to the cash flows of the financial asset expire or when the financial asset is transferred and all the risks and rewards associated with this financial asset are substantially transferred. A financial liability is derecognised from the Statement of Financial Position when, and only when, it is repaid - that is, when the commitment set out in the contract is fulfilled, canceled or expired. i) Financial assets Initial recognition and subsequent measurement of financial assets As of 1 January 2018, financial assets are classified at initial recognition as subsequently measured at amortized cost, at fair value through other comprehensive income or at fair value through profit or loss. The classification of financial assets at initial recognition is based on the contractual cash flows of the financial assets and the business model in which the financial asset is held. With the exception of customer receivables, the Group initially assesses a financial asset at its fair value plus transaction costs in the case of a financial asset that is not measured at fair value through profit or loss. Receivables from customers are initially measured at transaction value as defined by IFRS 15. In order to classify and measure a financial asset at amortized cost or at fair value through other comprehensive income, cash flows that are "exclusive capital and interest payments" on the outstanding capital balance must be created. This evaluation is known as the "SPPI" criterion and is done at the level of an individual financial instrument. After initial recognition, financial assets are classified into three categories: - at amortized cost - at fair value through other comprehensive income - fair value through profit or loss Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 130 Financial assets classified at amortized cost are subsequently measured using the effective interest rate method (EIR) and are subject to impairment testing. Profits and losses are recognized in profit or loss when the asset ceases to be recognized, modified or impaired. For investments that are traded on an active market, fair value is calculated based on market bid prices. For investments for which there is no active market, fair value is determined by valuation techniques unless the range of rational estimates of fair value is significant and the probabilities of the various estimates cannot reasonably be assessed, so that these investments cannot be valued at fair value. The purchase or sale of financial assets that require the delivery of assets within a timeframe defined by a regulation or sale acceptance is recognized at the settlement date (i.e. the date when the asset is transferred or delivered to the Group or the Company). Trade receivables Trade receivables are remainders due from customers for the sale of goods or the provision of services to them from the normal activity of the Group. Receivables from customers are initially recorded at transaction value as defined by IFRS 15 and subsequently measured at amortized cost using the effective interest method. Impairment of financial assets The Group and the Company assess at each reporting date whether the value of a financial asset or group of financial assets has been impaired as follows: The Group and the Company recognize a provision for impairment against expected credit losses for all financial assets that are not measured at fair value through profit or loss. Expected credit losses are based on the difference between all contractual cash flows that are payable under the contract and all cash flows that the Group or the Company expects to receive discounted at the approximate original effective interest rate. For the implementation of this approach, a distinction is made between: • financial assets whose credit risk has not deteriorated significantly since initial recognition or which have a low credit risk at the reporting date (Stage 1) and for which the expected credit loss is recognized for the following 12 months, • financial assets whose credit risk has deteriorated significantly since initial recognition and which have no low credit risk (Stage 2). For these financial assets, the expected credit loss is recognized up to their maturity, • financial assets for which there is objective evidence of impairment at the reporting date (Stage 3) and for which the expected credit loss is recognized up to maturity. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 131 For customer receivables the Group and the Company apply the simplified approach for calculating the expected credit losses. Therefore, at each reporting date, the Group and the Company measure the provision for impairment to an amount equal to the expected credit losses over the lifetime without monitoring the changes in credit risk. In calculating the expected credit losses, the Group uses a provisioning table by grouping the above financial instruments based on the nature and maturity of the balances and taking into account available historical data in relation to the debtors, adjusted for future factors in relation to the debtors and the economic environment. Derecognition of financial assets A financial asset (or part of a financial asset or part of a group of similar financial assets) is derecognized when: • the rights to inflow of cash resources have expired, • the Group or the Company retains the right to receive cash flows from that asset but has also undertaken to pay them to third parties fully without undue delay in the form of a transfer agreement; or • the Group or the Company has transferred the right to receive cash flows from that asset while either (a) it has transferred substantially all the risks and rewards thereof or (b) has not transferred substantially all the risks and rewards , but has passed the control of that item. When the Group or the Company transfers the rights to receive cash flows from an asset or concludes a transfer agreement, it assesses the extent to which it retains the risks and rewards of ownership of the asset. When the Group neither transfers nor retains substantially all the risks and benefits of the transferred asset and retains control of the asset, then the asset is recognized to the extent that the Group continues to participate in the asset. In this case, the Group also recognizes a related liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and commitments retained by the Group or the Company. Continued participation in the form of the guarantee of the transferred asset is recognized at the lower value between the carrying value of the asset and the maximum amount of consideration received which the Group could be required to repay. ii) Financial liabilities The Group's financial liabilities include loans, trade and other liabilities. Loan liabilities The Group's loan liabilities are initially recognized at cost, which reflects the fair value of the amounts receivable minus the relative costs directly attributable to them, where they are significant. After initial recognition, interest bearing loans are measured at amortized cost using the effective interest method. Amortized cost is calculated by taking into account issuing costs and the difference between the initial Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 132 amount and the maturity. Gains and losses are recognized in the profit-loss when the liabilities are derecognized or impaired through the amortization process. Trade and other liabilities Balances of suppliers and other payables are initially recognized at their fair value and subsequently measured at amortized cost using the effective interest method. Trade and other short-term liabilities are not interest-bearing accounts and are usually settled on the basis of the agreed credits. Financial liabilities are classified as short-term liabilities unless the Group has the unconditional right to transfer the settlement of the financial liability at least 12 months after the financial statements date. Derecognition of financial liabilities A financial liability is derecognised when the obligation arising from the liability is cancelled or expires. When an existing financial liability is replaced by another by the same lender but under substantially different terms or the terms of an existing liability are significantly changed, such exchange or amendment is treated as a derecognition of the original liability and recognition of a new liability. The difference in the respective carrying values is recognized in the income statement. Financial claims and liabilities Offsetting Financial assets and liabilities are offset and the net amount is reflected in the statement of financial position only when the Group or the Company legally holds that right and intends to offset them on a net basis with one another or to claim the asset and settle the liability simultaneously. The statutory right should not depend on future events and should be capable of being executed in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty. 7.9. Inventories At the balance sheet date, inventories are valued at the lower of acquisition cost and net realizable value. Net realizable value is the estimated sales price during the normal course of the company’s business less any relevant sales expenses. The cost of inventories does not include financial expenses. The acquisition cost includes the purchase price, import duties and other taxes, as well as transport, delivery expenses and directly attributable costs. Trade discounts, reductions in prices and other similar elements are deducted when determining the acquisition cost. The cost of conversion of inventories includes the costs directly related to the production units, such as direct labour cost. It also includes a systematic allocation of fixed and variable production expenses, which are realized during the conversion of the material into finished goods. Fixed production expenses are the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 133 direct production costs which remain fixed, irrespective of the production volume, such as depreciation and maintenance of factory buildings and equipment, as well as the cost of directing and managing the factory. Variable production overheads are the indirect production costs which vary directly or almost directly depending on the production volume, such as indirect material and indirect labour. The provision for inventory impairment is formed based on the estimations of the management regarding the actual situation and the ability to use the inventory if deemed necessary. 7.10. Cash available and cash equivalents Cash and cash equivalents include cash in the bank and in hand, as well as short-term highly liquid investments such as money market products and bank deposits. Money market products are financial assets which are valued at their fair value through the income statement. 7.11. Non-current assets classified as held for sale The assets available for sale also include other assets (including goodwill) and tangible fixed assets that the Group intends to sell within one year from the date they are classified as “held for sale”. The assets classified as “held for sale” are valued at the lowest value between their carrying value immediately prior to their classification as available for sale, and their fair value less the sale cost. Assets classified as “held for sale” are not subject to depreciation. The profit or loss that results from the sale and reassessment of assets “held for sale” is included in in the income statement. 7.12. Share capital Expenses incurred for the issuance of shares reduce, after deducting the relevant income tax, the proceeds from the issue. Expenses related to the issuance of shares for the purchase of companies are included in the acquisition cost of the company acquired. When acquiring own shares, the consideration paid, including the respective costs, is deducted from equity (share premium reserve). 7.13. Income tax & deferred tax The tax for the period comprises current tax and deferred tax, i.e. the tax charges or tax credits that are associated with economic benefits accruing in the period but have been assessed by the tax authorities in different periods. Income tax is recognized in the income statement of the period, except for the tax relating to transactions that have been recorded directly in equity. In such case the related tax is, accordingly, recorded directly in equity. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 134 Current income taxes include the short-term liabilities or assets from the fiscal authorities that relate to taxes payable on the taxable income of the period and any additional income taxes from previous periods. Current taxes are measured according to the tax rates and tax laws prevailing during the financial years to which they relate, based on the taxable profit for the year. All changes to the short-term taxable assets or liabilities are recognized as part of the tax expense in the income statement. Deferred income tax is determined according to the liability method which results from the provisional differences between the carrying value and the tax base of assets or liabilities. Deferred tax is not recorded if it results from the initial recognition of an asset or liability in a transaction, except for a business combination, which when it occurred did not affect neither the accounting nor the tax profit or loss. Deferred tax assets and liabilities are valued based on the tax rates that are expected to be in effect during the period in which the asset or liability will be settled, taking into consideration the tax rates (and tax laws) that have been put into effect or are essentially in effect up until the Balance Sheet date. In the event where it is impossible to identify the timing of the reversal of the provisional differences, the tax rate in effect on the day after the balance sheet date is used. Deferred tax assets are recognized to the extent that it is probable that there will be a future tax profit for the use of the provisional difference which creates the deferred tax asset. Deferred income tax is recognized for the provisional differences that result from investments in subsidiaries and associates, except for the case where the reversal of the provisional differences is controlled by the Group and it is possible that the provisional differences will not be reversed in the foreseeable future. Most changes in the deferred tax assets or liabilities are recognized as part of the tax expense in the income statement. Only changes in assets or liabilities that affect the provisional differences are recognized directly in the equity of the Group, such as the revaluation of property value, that results in the relevant change in deferred tax assets or liabilities being charged against the relevant equity (net) account. 7.14. Employee benefits Short-term benefits: Short-term employee benefits (except post-employment benefits), monetary and in kind are recognized as an expense when they accrue. Any unpaid amount is recorded as a liability, while in the case where the amount paid exceeds the amount of services rendered, the company recognizes the excess amount as an asset (prepaid expense) only to the extent that the prepayment will lead to a reduction of future payments or to reimbursement. Post-employment benefits: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 135 Post-employment benefits comprise lump-sum payment of retirement benefit, pensions or other benefits the company provides after the end of employment, as an exchange for the employees’ service to the company. Thus, such benefits include defined contribution schemes as well as defined benefits schemes. The accrued cost of defined contribution schemes is recorded as an expense in the period it refers to. Pension plans adopted by the Group are partially financed through payments to insurance companies or government social security institutions. (a) Defined contribution schemes The defined contributions scheme involves the payment of contributions to Insurance Institutions (e.g. Social Security Institution), as a result the Group not being legally liable in the event that the National Fund is unable to pay the pension to the insured. The employer’s obligation is limited to the payment of employee benefits to the Funds. The payable contribution from the Group to a defined contribution scheme, is either recognized as a liability after the deduction of the paid contribution, while the an expense in the income statement. (b) Defined benefit scheme (Not funded) According to Laws 2112/20 and 4093/2012, the Company pays its personnel compensation for employment termination or retirement. The compensation amounts depend on employment years, salary level and whether the employment was terminated or due to retirement. The establishment of the entitlement to participate in these schemes is carried out through the distribution of benefits in the last 16 years until the date of retirement of employees following the scale of Law 4093/2012. The liability which is recognized in the Statement of Financial Position with respect to this scheme is the present value of the liability for the defined benefit less the fair value of the scheme’s assets (reserve from the payments to the insurance company) and the changes that arise from any actuarial profit or loss and the service cost. The commitment of the defined benefit is calculated annually by an independent actuary with the use of the projected unit credit method. A defined contribution scheme, defines based on several parameters such as age, service years, salary, certain obligations for defined benefits. The provisions relating to the period are included in personnel cost in the attached company and consolidated income statement and consist of current and past employment cost, the pertinent financial cost, the actuarial gain or loss, as well as any additional charges. Regarding unrecognized actuarial gain or loss, amended IAS19R is adopted, that includes a series of amendments regarding accounting treatment of defined benefits scheme, amongst other things: - recognition of actuarial profit/loss in other comprehensive income statement and their final exclusion from the results for the period Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 136 - non-recognition of annual return of benefits scheme in the income statement but the recognition of respective interest rate in the liability account based on discount rate used in measuring obligations for defined benefits scheme. - the recognition of the service cost in the income statement for the period the earliest between the date the schemes are amended or when the respective restructuring is recognized or the final benefit - other changes include new disclosures, such as quantitative sensitivity analysis. 7.15. Government Grants The Group recognizes government grants that cumulatively satisfy the following criteria: a) There is reasonable certainty that the company has complied or will comply to the conditions of the grant and b) it is probable that the amount of the grant will be received. Government Grants are recorded at fair value and are systematically recognized as revenues, according to the principle of matching the grants with the corresponding costs that they are subsidizing. Government Grants that related to assets are included in long-term liabilities as deferred income and are recognized systematically and rationally as revenues over the useful life of the fixed asset. 7.16. Provisions Provisions are recognized when the Group has present legal or constructive obligations as a result of past events, their settlement through an outflow of resources is probable and the exact amount of the obligation can be reliably estimated. Provisions are reviewed during the date when each balance sheet is drawn-up so that they may reflect the present value of the outflow that is expected to be required for the settlement of the obligation. Contingent liabilities are not recognized in the financial statements but are disclosed, except if the probability that there will be an outflow of resources that embody economic benefits is very small. Contingent receivables are not recognized in the financial statements but are disclosed, provided that the inflow of economic benefits is probable. 7.17. Recognition of income and expenses Income: The Group applied IFRS 15 for the first time on 01.01.2018. According to IFRS 15, a five-step model is established to determine revenue from contracts with customers: Step 1: Define the contract for the sale of goods or the provision of services Step 2: Identify the separate obligations arising from the contract with the customer Step 3: Determine transaction value Step 4: Allocation of the transaction value to the obligations arising from the contract Step 5: Recognize revenue as the entity meets its obligations under the contract with the customer Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 137 Revenue is recognized in the amount by which an entity expects to have in exchange for the transfer of the goods or services to a counterparty. Intra-group revenues within the Group are completely eliminated. Revenue recognition is made as follows: ➢ Sale of goods: Revenue from the sale of goods is recognized when the control of the good is transferred to the customer, usually upon delivery to the customer, and there is no obligation that could affect the acceptance of the good by the customer. ➢ Provision of services: Income from the provision of services is accounted for in the period during which the services are rendered, based on the stage of completion of the service in relation to the total services to be rendered. ➢ Income from the sale and lease of Tangible Assets: The positive difference between the fair value of the consideration and the value of the asset granted is recorded as deferred income and is depreciated according to the depreciation rate (on the basis of the useful life or lease term) of the leased asset. ➢ Income from Interest: Income from interests is recognized on a time proportion basis using the effective interest rate. When there is impairment of assets, their carrying value is reduced to their recoverable amount which is the present value of the expected future cash flows discounted using the initial real interest rate. Interest is then recorded using the same interest rate calculated on the impaired (new book) value. ➢ Income from Dividends: Dividends are accounted for as revenue when the right to receive payment is established. Expenses: Expenses are recognized in the income statement on an accrued basis. The payments made for operating leases are transferred to the results as an expense, during the time the lease is used. Interest expenses are recognized on an accrued basis. Cost of Borrowing: The cost of borrowing is directly related to the purchase, construction or production of eligible assets, it is passed on increasing the cost of these assets. The capitalization of the cost of borrowing is realized during the period of construction of the fixed asset and ends when the eligible asset is exploitable or tradable. When the fixed asset is completed in stages, the cost of borrowing, which corresponds to part of the asset stops being accounted for in the cost of the fixed asset and is transferred to the results for the period. 7.18. Leases Until 2018, leases were classified as financial or operating leases in accordance with the requirements of IAS 17. Financial leases were capitalized at the beginning of the lease at the lowest value resulting from the fair value of the fixed asset and the present value of the minimum rents, both of which were Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 138 determined at the beginning of the lease. Each rent was separated into obligation and interest. Operating lease payments were recorded by a fixed method in the Total Income Statement throughout the duration of the lease. As of 01/01/2019, based on IFRS 16, the classification of leases into operating leases and financial leases is abolished for the lessee and all leases are regarded as assets of "Financial Position Status" by establishing the "right to use" of assets and a "lease liability". Recognition and initial calculation of the right to use an asset At the start date of a lease term, the Group recognizes a right to use an asset and a lease liability by calculating the right to use the asset at cost. The cost of the right to use an asset includes: • the amount of the initial measurement of the lease obligation (see below), • any payments made before or on the start date of the lease period, reduced by the lease incentives received, • the initial direct costs borne by the lessee, and • an estimate of the expenses that will be borne by the Group during the dismantling and removal of the leased asset, the restoration of the area in which the leased asset is located or the restoration of the asset as required by its terms and conditions of the lease. The Group undertakes the obligation for such expenses either on the start date of the lease term or as a consequence of the use of the leased asset during a particular period. Initial calculation of the lease liability At the start date of the lease term, the Group calculates the lease liability to the present value of the unpaid rent payments on that date. When the imputed rental rate can be determined appropriately, then the lease payments will be discounted using this interest rate. Otherwise, the Group's marginal lending rate is used. At the start date of the lease term, the payments included in the calculation of the lease liability include the following payments for the right to use an asset during the lease period, unless they have been paid at the start date of the lease: (a) fixed payments minus any receivable lease incentives, (b) any variable payments of rents that depend on future changes in indices or interest rates, which are initially measured using the index or interest rate at the start date of the lease term, (c) the amounts expected to be paid by the Group as residual value guarantees, (d) the price of exercising the right to purchase if it is essentially certain that the Group will exercise the right, and Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 139 e) the payment of penalties for termination of the lease, if the lease period reflects the exercise of the Group's right to terminate the lease. Subsequent calculation Subsequent calculation of the right to use an asset After the start date of the lease term, the Group calculates the right to use an asset using the cost model. The Group calculates the right to use an asset at cost: (a) minus any accumulated depreciation and accumulated impairment losses, and (b) adapted for any subsequent measurement of the lease obligation, The Group applies the requirements of IAS 16 regarding the amortization of the right to use an asset, which it examines for any impairment. The right to use an asset is depreciated in the shortest period between the useful life of the asset or its lease term, by a fixed method. Subsequent liability calculation After the start date of the lease period, the Group calculates the lease liability, as follows: (a) by increasing the book value in order to reflect the financial cost of the lease liability, (b) reducing the book value in order to reflect the rents paid, and (c) re-calculating the accounting value in order to reflect any revision or amendment of the lease. The financial costs of a lease are distributed during the lease term in such a way as to result in a fixed periodic interest rate on the outstanding balance of the liability. After the start date of the lease term, the Group recognizes the profits or losses (except when the costs are included in the book value of another asset for which other relevant Standards apply) and the following two items: (a) the financial costs on the lease liability, and (b) variable lease payments that are not included in the calculation of the lease liability during the period in which the event that activates those payments takes place. 7.19. Dividend distribution The distribution of dividends to the shareholders of the parent company is recognized as a liability in the consolidated financial statements at the date on which the distribution is approved by the General Meeting of the shareholders. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 140 7.20. Related Parties The transactions and intercompany outstanding balances with the Group’s related parties are disclosed in accordance with IAS 24 “Related Party Disclosures”. These transactions regard transactions between the management, the main shareholders and the subsidiary companies of a group with the parent company and the other subsidiaries of the Group. 8. Risk Management Financial risk factors The Company and the Group are exposed to financial and other risks. The Group’s general risk management program aims at containing potential negative influence to the Group’s financial results. The Finance Department monitors and manages the risks to which the Group is exposed, it determines and hedges if necessary the financial risks in cooperation with the departments which are facing these risks. Further, it does not conduct any business transactions which are not related to the commercial, investment or borrowing activities of the Group. More specifically, for these risks we note the following: Foreign Exchange Risk The Group conducts most of its transaction in Euro, thus limiting direct foreign exchange risk. However, apart from the Euro, it conducts commercial transaction at a global level and consequently is exposed to foreign exchange risk coming mainly from the US dollar. These transactions regard only a small portion of its activities and thus the foreign exchange risk is limited. Credit Risk The Group does not have any considerable concentration of credit risk in any of its contracting parties, since on the one hand exports are covered by bank guarantees and retail sales are mostly made in cash and on the other hand its customer base is dispersed in wholesale. The Group’s wholesale is performed based on its internal rules of operation, which ensure that the sale of goods and services is made to creditworthy clients. For any doubtful customer credits, the company has concluded an insurance contract covering credits with EULER HERMES. The tables below analyzes the Company’s and the Group’s credit risk: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Financial Assets Other long-term receivables 52,864 55,355 33,165 35,655 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 141 Receivables and advance payments 13,823,622 11,372,568 15,584,302 12,434,368 Cash in hand 1,626,101 1,420,374 1,448,934 1,383,290 15,502,587 12,848,298 17,066,401 13,853,313 Liquidity Risk The liquidity needs are determined for a period of 6 months and are reviewed on a monthly basis. Payment requirements are monitored on a weekly basis. During periods of insufficient liquidity the company can finance its liquidity requirements through bank borrowing from approved credit limits it has with banks. With the purpose of dealing with the adverse economic conditions which prevail, the Group has taken measures aiming at reducing the time for recovery of claims and the maintenance of satisfactory amounts of cash and other assets with high liquidity. The analysis of undiscounted contractual payments of the financial liabilities of the Group and the Company are as follows: GROUP COMPANY Financial Liabilities 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Long-term loan liabilities 17,924,240 20,534,409 17,924,240 20,534,409 Current tax liabilities 853,605 1,050,262 833,302 1,032,447 Liabilities from finance leases 1,374,907 914,575 1,374,907 914,575 Trade and other short-term liabilities 13,258,577 11,247,611 14,224,662 11,343,018 Short-term loan liabilities 22,616,604 18,288,564 22,616,604 18,288,564 Short-term liabilities of finance leases 557,538 815,574 557,538 815,574 Long-term loan liabilities payable in the following fiscal year 3,860,163 3,894,323 3,860,163 2,903,497 60,445,633 56,745,318 61,391,415 55,832,084 GROUP 31/12/2022 Short-term Long-term Amounts in € 6 to12 months 1 to 5 years 6 to12 months 1 to 5 years Bank borrowing 13,238,384 13,238,384 16,504,240 1,420,000 Finance leases liabilities 278,769 278,769 1,374,907 Trade and other short-term liabilities 13,042,157 216,420 Current tax liabilities 521,936 331,670 Total 27,081,245 14,065,242 17,879,146 1,420,000 GROUP 31/12/2021 Short-term Long-term Amounts in € within 6 months 6 to12 months within 6 months 6 to12 months Bank borrowing 11,091,444 11,091,444 17,764,409 2,770,000 Finance leases liabilities 407,787 407,787 914,575 Trade and other short-term liabilities 11,247,611 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 142 Current tax liabilities 664,279 385,983 Total 23,411,121 11,885,213 18,678,984 2,770,000 COMPANY 31/12/2022 Short-term Long-term Amounts in € within 6 months 6 to12 months within 6 months 6 to12 months Bank borrowing 13,238,384 13,238,384 16,504,240 1,420,000 Finance leases liabilities 278,769 278,769 1,374,907 Trade and other short-term liabilities 14,008,241 216,420 Current tax liabilities 501,633 331,670 Total 28,027,026 14,065,242 17,879,146 1,420,000 COMPANY 31/12/2021 Short-term Long-term Amounts in € within 6 months 6 to12 months within 6 months 6 to12 months Bank borrowing 10,596,031 10,596,031 17,764,409 2,770,000 Finance leases liabilities 407,787 407,787 914,575 Trade and other short-term liabilities 11,343,018 Current tax liabilities 646,464 385,983 Total 22,993,300 11,389,800 18,678,984 2,770,000 Interest Rate Fluctuation Risk The Group monitors and manages its borrowing, by using a combination of short-term and long-term borrowing. There are approved credit limits and satisfactory terms of cooperation and invoicing of various bank services which assist in limiting the financial cost of the Group. The table below represents the sensitivity of the income statement for the period, as well as of equity, based on a reasonable fluctuation in the interest rate in the range of +1% or –1%: COMPANY Variable Variable 1% -1% 1% -1% 31/12/2022 31/12/2021 Profit-loss account (before tax) (448,950) 448,950 (436,619) 436,619 Net Position (350,181) 350,181 (331,831) 331,831 GROUP Variable Variable 1% -1% 1% -1% 31/12/2022 31/12/2021 Profit-loss account (before tax) (453,904) 453,904 (452,387) 452,387 Net Position (354,045) 354,045 (352,862) 352,862 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 143 Risk related to Inventory-Suppliers The Group takes all the necessary measures (insurance, storage) to minimize the risk of potential losses from the loss of inventories due to natural disasters, theft etc. The Management continuously reviews the net realizable value of inventories and makes the necessary write-downs. In addition, the Company believes that dependence on suppliers is limited and in any case insignificant to the economic size of the Group, as there is no significant dependence on specific suppliers, as no one supplies the Company with products amounting to more than 10% of its total purchases. Dependence on Customers The Group’s customer base is dispersed and there is no dependence risk from large customers. The Group aims in satisfying even a larger number of customers by expanding its range of products and aiming in directly satisfying their needs. Capital Management The primary objective of the Group’s and Company’s capital management is to ensure the maintenance of an acceptable credit rating and a healthy capital ratio, aiming for the smooth operation of its business activities and to maximize the value of its shareholders. The Group and the Company manage the capital restructuring and make adjustments in order to be in harmony with the changes in the economic environment. A significant instrument for capital management is the use of a leverage ratio (debt-to-equity ratio), which is monitored at Group level. The calculation of net borrowing includes interest bearing loans and bonds less cash and cash equivalents. GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Loans 46,333,451 44,447,445 46,333,451 43,456,619 Less: Cash in hand -1,626,101 -1,420,374 -1,448,934 -1,383,290 Net Borrowing 44,707,350 43,027,071 44,884,517 42,073,329 Total Equity 49,624,783 49,922,203 45,749,163 45,923,863 Leverage ratio 0.901 0.862 0.981 0.916 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 144 9. Financial reporting per segment A business segment is a group of assets and activities which include goods and services which are subject to different risks and returns from those of other business segments. A geographical segment is a geographical area in which products and services are provided and which is subject to different risks and returns from other areas. The Group is active in the exploitation of marble quarries (mining and trading of Marble), in the segment of wind energy, as well as in Real Estate. Geographically the Group is active in Greece, the Euro Area and Other Countries. Primary reporting segment-business segments The profit-loss account of the Group per segment is analyzed as follows: GROUP 1/1 - 31/12/2022 Marble Aeolean Energy REAL ESTATE Grand total Total gross sales/segment 31,624,221 2,177,847 0 33,802,067 Intercompany sales/segment (783,505) 0 0 (783,505) Net sales per segment 30,840,716 2,177,847 0 33,018,563 Cost of Sales (20,034,470) (2,519,128) (22,553,598) Gross profit/loss 10,806,246 (341,282) 0 10,464,964 Operating profit/loss (9,143,668) 483,040 (72,448) (8,733,076) Financial profit/loss (1,699,217) (23,941) (503) (1,723,661) Financial investment profit/loss 0 0 0 0 Profit before tax (36,639) 117,817 (72,951) 8,227 Income tax (356,833) 37,382 (14,732) (334,183) Net profit /loss (393,472) 155,199 (87,683) (325,956) Depreciation 2,576,546 1,970,120 0 4,546,666 Grants Income 26,781 542,928 0 569,709 Operating profit/loss before Taxes, Financial, Investment profit/loss, and Depreciation (ΕΒΙΤDΑ) 4,212,343 1,568,950 (72,448) 5,708,845 GROUP 1/1 - 31/12/2021 Marble Aeolean Energy REAL ESTATE Grand total Total gross sales/segment 33,025,768 1,942,128 0 34,967,895 Intercompany sales/segment 0 0 0 0 Net sales per segment 33,025,768 1,942,128 0 34,967,895 Cost of Sales (19,679,080) (2,600,378) (22,279,458) Gross profit/loss 13,346,688 (658,251) 0 12,688,437 Operating profit/loss (8,838,275) 506,343 (32,190) (8,364,121) Financial profit/loss (1,084,817) (509,456) (1,286) (1,595,559) Financial investment profit/loss (134,166) 0 0 (134,166) Profit before tax 3,289,431 (661,364) (33,475) 2,594,591 Income tax (451,278) (61,448) 342,177 (170,549) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 145 Net profit /loss 2,838,153 -722,812 308,701 2,424,042 Depreciation 2,896,060 557,226 0 4,713,919 Operating profit/loss before Taxes, Financial, Investment profit/loss, and Depreciation (ΕΒΙΤDΑ) 7,466,486 1,266,361 (32,190) 7,929,510 The breakdown of consolidated assets and liabilities into business sectors is analyzed as follows: GROUP 1/1 - 31/12/2022 Marble Aeolean Energy REAL ESTATE Grand total Segment Assets 76,766,145 16,328,522 29,458,834 122,553,501 Consolidated Assets 76,766,145 16,328,522 29,458,834 122,553,501 Segment Liabilities 61,790,210 7,113,063 4,025,446 72,928,719 Consolidated Liabilities 61,790,210 7,113,063 4,025,446 72,928,719 1/1 - 31/12/2021 Marble Aeolean Energy REAL ESTATE Grand total Segment Assets 69,461,748 19,429,267 30,308,384 119,199,400 Consolidated Assets 69,461,748 19,429,267 30,308,384 119,199,400 Segment Liabilities 56,235,686 8,783,441 4,868,426 69,887,553 Consolidated Liabilities 56,235,686 8,783,441 4,868,426 69,887,553 Secondary reporting segment-geographical segments The largest number of sales of the Group takes place in China and the company is mainly active in Greece, Eurozone and Asia. The sales of the Group per geographical segment are analyzed as follows: GROUP COMPANY SALES 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Eurozone 1,460,125 944,961 1,460,125 944,961 Other European Countries 365,930 625,932 365,930 625,932 Asia 18,179,301 22,343,195 18,179,301 22,343,195 America 4,801,592 4,628,865 4,801,592 4,628,865 Australia 101,753 51,757 101,753 51,757 Africa 1,770,914 380,669 1,770,914 380,669 Export via third parties 3,484,798 2,940,497 3,484,798 2,940,497 Greece 2,854,150 3,052,019 653,574 1,098,722 Total 33,018,563 34,967,895 30,817,987 33,014,598 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 146 10. Notes on the Financial Statements 10.1. Notes on the Financial Statements The analysis of the tangible assets of the Group and the Company is presented below: GROUP Land Plots & Buildings Transport Means & Mechanical Equipment Furniture and other Equipment Assets under Construction Total Carrying value at January 1 2021 18,329,727 29,153,920 406,536 0 47,890,183 Gross Carrying Value 24,324,513 62,463,593 1,747,577 0 88,538,686 Accumulated depreciation and impairment (6,626,355) (36,111,817) (1,266,970) 0 (44,005,144) Carrying value at December 31 2021 17,698,158 26,351,776 480,607 0 44,530,541 Gross Carrying Value 24,794,941 64,125,802 1,840,131 0 90,760,874,15 Accumulated depreciation and impairment (7,215,997) (39,753,192) (1,357,379) 0 (48,326,567,28) Carrying value at December 31 2022 17,578,944 24,372,610 482,752 0 42,434,306 Land Plots & Buildings Transport Means & Mechanical Equipment Furniture and other Equipment Assets under Construction Total Carrying value at January 1 2021 18,329,727 29,153,920 406,536 0 47,890,183 Additions 21,867 768,668 193,840 0 1,014,375 Real Estate Adjustment 0 (115,712) (397) 0 (116,109) Sales - Reductions 0 0 0 0 0 Depreciation (582,110) (3,597,634) (119,770) 0 (4,299,214) Real estate depreciation adjustment 0 41,208 397 0 41,605 Sales - Depreciation reductions 0 0 0 0 37 Transport (101,327) (101,327) 0 0 0 Carrying value at December 31 2021 17,698,158 26,351,776 480,607 0 44,530,541 Additions 470,428 1,714,750 96,461 0 2,281,639 Sales - Reductions 0 (52,541) (3,907) 0 (56,448) Depreciation (589,642) (3,668,344) (94,316) 0 (4,352,302) Sales - Depreciation reductions 0 26,970 3,907 0 30,877 Carrying value at December 31 2022 17,578,944 24,372,610 482,752 0 42,434,306 COMPANY Land Plots & Buildings Transport Means & Mechanical Equipment Furniture and other Equipment Assets under Construction Total Carrying value at January 1 2021 13,840,421 11,651,722 373,318 0 25,865,461 Gross Carrying Value 17,591,500 25,945,769 1,603,461 45,140,770 Accumulated depreciation and impairment (4,151,663) (15,429,003) (1,151,237) (20,731,943) Carrying value at December 31 2021 13,439,838 10,516,765 452,225 0 24,408,827 Gross Carrying Value 18,045,148 27,523,134 1,692,115 47,260,397 Accumulated depreciation and impairment -4,510,389 -17,247,501 -1,236,036 (22,993,925) Carrying value at December 31 2022 13,534,759 10,275,634 456,079 0 24,266,472 Land Plots & Buildings Transport Means & Mechanical Equipment Furniture and other Equipment Assets under Construction Total Carrying value at January 1 2021 13,840,423 11,651,722 373,318 0 25,865,461 Additions 50,911 621,728 193,457 0 866,096 Sales - Reductions 0 (95,928) (397) (96,325) Depreciation (350,168) (1,803,292) (114,551) 0 (2,268,010) Sales - Depreciation reductions 0 41,208 397 0 41,605 Transport (101,327) 101,327 0 0 (0) Carrying value at December 31 2021 13,439,838 10,516,765 452,225 0 24,408,827 Additions 453,648 1,618,352 92,561 0 2,164,561 Sales - Reductions (40,986) (3,907) 0 (44,894) Depreciation (358,726) (1,845,467) (88,706) 0 (2,292,899) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 147 Sales - Depreciation reductions 26,970 3,907 0 30,877 Carrying value at December 31 2022 13,534,759 10,275,634 456,079 0 24,266,472 The tangible assets of the above table include the fixed assets with use rights of the company and the group which are analyzed by category of asset in the following table. GROUP LAND & BUILDINGS MEANS OF TRANSPORT MACHINERY Balance at the end of the period 31/12/2020 328,633 101,327 4,449,592 Period additions 3,350 14,474 416,775 Period depreciation -47,288 -59,274 -554,305 Derecognition -2,734 Balance at the end of the period 31/12/2021 284,696 53,793 4,312,062 Period additions 26,804 70,290 892,760 Period depreciation -53,989 -39,570 -632,551 Derecognition Balance at the end of the period 31/12/2022 257,512 84,512 4,572,271 COMPANY LAND & BUILDINGS MEANS OF TRANSPORT MACHINERY Balance at the end of the period 31/12/2020 328,633 101,327 4,449,592 Period additions 3,350 14,474 416,775 Period depreciation -47,288 -59,274 -554,305 Derecognition -2,734 Balance at the end of the period 31/12/2021 284,696 53,793 4,312,062 Period additions 26,804 70,290 892,760 Period depreciation -53,989 -39,570 -632,551 Derecognition Balance at the end of the period 31/12/2022 257,512 84,512 4,572,271 10.2. Intangible Assets GROUP Software Rights Other Total Carrying value on 1 January 2021 11,531 8,696,421 131,067 8,839,019 Gross carrying value 380,379 10,531,007 469,962 11,407,970 Accumulated depreciation and impairment of value (369,459) (2,348,336) (339,820) (3,084,237) Carrying value on 31 December 2021 10,921 8,182,671 130,142 8,323,734 Gross carrying value 385,879 13,458,516 416,331 14,260,726 Accumulated depreciation and impairment of value (374,221) (2,943,795) (367,333) (3,685,349) Carrying value on 31 December 2022 11,658 10,514,722 48,998 10,575,378 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 148 Software Rights Other Total Carrying value on 1 January 2021 11,531 8,696,421 131,067 8,839,019 Additions 8,325 133,299 0 141,624 Disposals –Write-offs 0 (14,020) (12,602) (26,622) Depreciation (8,935) (593,840) (27,512) (630,287) Carried forward 0 (39,189) 39,189 0 Carrying value on 31 December 2021 10,921 8,182,671 130,142 8,323,734 Additions 5,500 2,874,300 0 2,879,800 Disposals –Write-offs 0 0 (422) (422) Depreciation (4,763) (595,459) (27,512) (627,734) Carried forward 0 (53,210) 53,210 0 Carrying value on 31 December 2022 11,658 10,514,722 48,998 10,575,378 COMPANY Software Rights Total Carrying value on 1 January 2021 11,531 8,607,485 8,619,015 Gross carrying value 377,385 10,238,681 10,616,066 Accumulated depreciation and impairment of value (366,464) (2,091,738) (2,458,203) Carrying value on 31 December 2021 10,921 8,146,944 8,157,864 Gross carrying value 382,885 13,112,981 13,495,866 Accumulated depreciation and impairment of value (371,227) (2,687,197) (3,058,424) Carrying value on 31 December 2022 11,658 10,425,785 10,437,443 Software Rights Total Carrying value on 1 January 2021 11,531 8,607,484 8,619,015 Additions 8,325 133,299 141,624 sales-reductions 0 Depreciation -8,935 -593,840 -602,775 Sales - Depreciation reductions 0 0 0 transfers 0 0 0 Carrying value on 31 December 2021 10,921 8,146,943 8,157,864 Additions 5,500 2,874,300 2,879,800 sales-reductions 0 Depreciation (4,763) (595,459) (600,221) Sales - Depreciation reductions 0 0 0 transfers 0 0 0 Carrying value on 31 December 2022 0 0 0 11,658 10,425,785 10,437,443 Also, prenotations of mortgage have been registered in the amount of Euro 1,500,000 (first mortgage) to secure the common bond loan of Euro 7,000,000 signed with ALPHA BANK (formerly EMPORIKI BANK) which was repaid on 30/3/2021 and the process of removal of the prenotation has been initiated. 10.3 Real estate investments GROUP COMPANY Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 149 Real estate investments on 31 December 2020 29,061,664 102,000 Additions 0 0 Additions from a subsidiary acquisition 0 0 Sales 0 0 Valuation 0 0 Real estate investments on 31 December 2021 29,061,664 102,000 Additions 12,296 Additions from a subsidiary acquisition Sales Valuation Real estate investments on 31 December 2022 29,073,959 102,000 The investment properties of the Company amounting to € 102,000, relate to the fair value of two properties, one of which was purchased in 2015 and the second in 2016, for the purpose of exploiting them. The investment properties of the Group amounting to € 29,073,959 concern an area of 2,800 acres in Sitia, Crete for the purpose of selling it and the Group and the Company monitor these properties at fair value (see Note 10.28). 10.4. Investments in Subsidiaries and Related Companies Investments in subsidiaries are analyzed below: COMPANY FEIDIAS S.A. (90.00% Share) KALLITECHNOKRATIS LTD. (30.00% Participation) IDEI S.A. (100% Participation) ΙΚΤΙΝΟS MARMARON S.A. (100% Participation) LATIRUS (97.764% Participation) TOTAL Acquisition Cost 31/12/2021 484,742 11,005 13,051,500 0 16,373,861 29,921,108 Equity Increase 46,000 46,000 Participation impairment Acquisition Cost 31/12/2022 484,742 11,005 13,051,500 0 16,419,861 29,967,109 The company proceeded with a Share Capital increase of 1,600,000 euro to the 100% subsidiary Latirus Ltd SA and until 31/12/2022 it had paid a cash contribution of 849,953 euro, while within 2022, 46,000 euro were paid. During the year, the Company carried out an impairment test of all its holdings. The audit did not show any impairment of the value of the subsidiaries. Specifically, for the subsidiary IDEI the basic assumptions used are: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 150 Average energy price for the year 2022 (euro 86.00 per megawatt-hour). The discount rate applied (Average Weighted Capital Cost) is 8.90%. The growth rate of cash flows has been calculated in management-approved business plans, which have included the necessary revisions to capture the current economic situation, which management believes reflects past experience and other available information from external sources. The company performed a sensitivity analysis by increasing the discount rate by 1% (i.e. 9.9%) which did not result in an amount to impair the participation. 10.5. Deferred taxes The corporate income tax rate in Greece was set at 22% 22%. The deferred tax receivables/liabilities of the Group as they arise from the relevant provisional tax differences are as follows: GROUP 31/12/2022 31/12/2021 Receivables Liabilities Receivables Liabilities Non-current assets Intangible Assets 249,195 50,172 423,499 54,760 Tangible assets 96,766 3,417,065 156,377 3,556,622 Investment properties 3,939,239 3,939,239 Current Assets Inventories 44,000 44,000 Receivables 209,711 202,188 Financial assets measured at fair value 11,128 Long-term Liabilities Provisions 173,530 1,578 219,793 20,860 Other Long-term Liabilities 48,258 Short-term Liabilities Short-term Provisions Other Short-term Liabilities 312,193 38,224 7,950 Total 1,133,654 7,457,406 1,053,807 7,571,481 Respectively, the deferred tax receivables/liabilities of the Company as they arise from the relevant provisional tax differences are as follows: COMPANY 31/12/2022 31/12/2021 Receivables Liabilities Receivables Liabilities Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 151 Non-current assets Intangible assets 212,463 385,993 Tangible assets 11,161 686,781 82,147 791,914 Investment properties 10,153 10,153 Investments in related companies 1,998,813 1,998,813 Current Assets Stock 44,000 44,000 Receivables 209,711 202,188 Financial assets measured at fair value 11,128 Inventory Tax deduction for inventory Long-term Liabilities Provisions 157,281 204,463 19,287 Other Long-term Liabilities 48,258 Short-term Liabilities Short-term Provisions Other Short-term Liabilities 312,193 38,224 7,950 Total 2,993,880 746,286 2,925,554 821,354 The income tax rate which the Group is subject to is 22%. The deferred tax has been calculated based on the tax rate applicable in each year in which the income or expense is recognized. Deferred taxes in the Statement of Comprehensive Income are as follows: GROUP COMPANY 1/1- 31/12/2022 1/1- 31/12/2021 1/1- 31/12/2022 1/1- 31/12/2021 Intangible assets expenditure/(income) 169,715 47,502 173,530 35,090 Tangible assets expenditure/income) -79,946 93,192 -34,147 9,884 Investment property expenditure / (income) -358,113 -923 Investments in related companies expenditure/(income) 610,357 Inventory expenditure/(income) 4,000 4,000 Receivables expenditure/(income) -7,523 18,381 -7,523 18,381 Financial assets at fair value through profit or loss expenditure / (income) 11,128 0 11,128 0 Provisions expenditure / (income) 18,932 31,539 20,271 2,739 Other Long-Term Liabilities expenditure/(income) -48,258 -48,258 Other Short-Term Liabilities expenditure/(income) -266,019 723 -266,019 723 Expenditure/(income) of Deferred tax in profit/loss account -201,971 -162,776 -151,017 680,250 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 152 10.6. Other long-term receivables Other long-term receivables of the Group and the Company are analyzed in the table below: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Given guarantees 52,864 55,355 33,165 35,655 10.7. Inventories The inventories of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Raw materials 8,342,050 9,100,250 8,342,050 9,100,250 Finished and semi-finished products 12,784,000 12,262,573 12,784,000 12,262,573 Work in progress 0 0 0 0 Merchandise 470,254 828,953 470,254 828,953 Other 2,525,755 2,100,592 2,489,825 2,067,965 Provisions for impairment of inventories (351,499) (350,000) (351,499) (350,000) Total 23,770,561 23,942,368 23,734,630 23,909,741 10.8. Customers and other trade receivables Customers and other trade receivables of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Customers 11,112,694 7,880,729 13,346,506 9,544,476 Bills receivable 13,000 13,000 13,000 13,000 Checks receivable 532,750 845,730 532,750 845,730 Less: Impairment provisions -932,832 -932,832 (932,882) (932,832) Net Trade receivables 10,725,562 7,806,627 12,959,423 9,470,324 The fair values of the receivables do not differ substantially from the values recognized in the Financial Statements. The movement of the account "provisions for doubtful receivables" is as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Balance on 1 January -932,882 -912,742 -932,882 -964,561 Addition of current period Deletion of provisions due to completion of subsidiary liquidation -51,819 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 153 Use of provisions 31,679 31,679 Total -932,882 -932,882 -932,882 -932,882 The provision for impairment based on the new IFRS 9 standard is analyzed as follows: GROUP 2022 Stage 1 Stage 2 Stage 3 Balance on January 1st 0 -408,470,23 -524,412,00 Addition of current period 0 0,00 (179,861) Use of provisions 0 179,910,69 0,00 Balance December 31st 0 -228,559,54 -704,272,65 COMPANY 2022 Stage 1 Stage 2 Stage 3 Balance on January 1st 0 -408,470,23 -524,412 Addition of current period 0 0,00 (179,861) Use of provisions 0 179,910,69 0,00 Balance December 31st 0,00 -228,559,54 -704,272,65 The time frame of trade receivables is as follows:: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Not due and not impaired 5,777,932 4,199,825 8,011,793 6,254,626 Due and not impaired: 0- 90 days 1,247,844 1,401,002 1,247,844 1,009,898 91 - 180 days 2,389,080 882,320 2,389,080 882,320 181 - 365 days 1,310,706 1,323,480 1,310,706 1,323,480 > 365 days 0 0 0 0 10,725,562 7,806,627,00 12,959,423 9,470,324,00 Provisions for doubtful receivables are recognized on an individual basis when there is an objective indication that the group and the company will not collect all the amounts provided under the original terms of the sales contracts. Signs of non-collection are the delay in the collection of receivables and the significant financial difficulties of the customers-debtors. The amount of the provision is the difference between the carrying amount of the receivables and the estimated cash flows to be received. The carrying amount of receivables is reduced through a reverse account (forecast), recognizing the decrease in results in the item "Other Expenses". Subsequent recoveries of impaired amounts are recognized as revenue in the "Other Revenue" line. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 154 10.9. Other receivables Other receivables of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Receivables from the Greek Government 1,848,347 1,637,976 1,809,870 1,399,712 Advance payments 0 120,925 0 0 Other receivables 1,249,714 1,807,041 815,009 1,564,332 Net receivables from debtors 3,098,060 3,565,942 2,624,879 2,964,045 The fair values of receivables do not fundamentally differ from the values recognized in the Financial Statements. 10.10. Cash and cash equivalents The Cash in hand of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Cash in hand 3,442 2,573 1,812 850 Short-term bank deposits 1,622,659 1,417,80 1,447,121 1,382,440 Total 1,626,101 1,420,374 1,448,934 1,383,290 10.11. Equity Share capital VALUE Number of Shares Share Capital At premium Total Balance on 31 December 2020 28,580,100 11,432,040 43,792 11,475,832 Issuance of new shares - - - - Share Capital Increase with share premium capitalization - - - - Return capital - - - - Balance on 31 December 2021 28,580,100 11,432,040 43,792 11,475,832 Issuance of new shares - - - - Share Capital Increase with share premium capitalization - - - - Return capital - - - - Balance on 31 December 2022 28,580,100 11,432,040 43,792 11,475,832 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 155 The share capital of the company amounts to the amount of euros 11,432,040, fully paid and divided into 114,320,400 common registered shares, with a nominal value of 0.10 euros each. In addition, the Company holds 489,916 treasury shares, i.e. 0.429% of its share capital. Reserves GROUP Statutory reserve Other Reserves Total Balance on 31 December 2020 2,780,744 6,719,813 9,500,557 Changes during the period 26,508 0 26,508 Balance on 31 December 2021 2,807,253 6,719,813 9,527,066 Changes during the period 104,776 0 104,776 Balance on 31 December 2022 2,912,029 6,719,813 9,631,841 COMPANY Statutory reserve Other Reserves Total Balance on 31 December 2020 2,780,744 6,719,813 9,500,557 Changes during the period 26,508 0 26,508 Balance on 31 December 2021 2,807,253 6,719,813 9,527,066 Changes during the period 104,776 0 104,776 Balance on 31 December 2022 2,912,029 6,719,813 9,631,841 10.12. Loan liabilities and Financial Lease Liabilities The loan liabilities of the Group and of the Company are analyzed as follows: The maturity dates of all the Group's and Company's loans are as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Long-term loans Bank loans 17,924,240 20,534,409 17,924,240 20,534,409 Finance lease liabilities 1,374,907 914,575 1,374,907 914,575 Total long-term loans 19,299,147 21,448,984 19,299,147 21,448,984 Long-term liabilities payable in the following period 3,860,163 3,894,323 3,860,163 2,903,497 Short-term loans Bank loans 22,616,604 18,288,564 22,616,604 18,288,564 Finance lease liabilities 557,538 815,574 557,538 815,574 Total short-term loans 27,034,305 22,998,461 27,034,305 22,007,635 Total loans 46,333,452 44,447,445 46,333,452 43,456,619 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 156 COMPANY Up to 1 year Between 1 and 5 years Over 5 years 31-Dec-21 Total loans 21,192,062 17,764,409 2,770,000 Total finance leases 815,574 914,575 31-Dec-22 Total loans 26,476,767 16,504,240 1,420,000 Total finance leases 557,538 1,374,907 GROUP 31-Dec-21 Up to 1 year Between 1 and 5 years Over 5 years Total loans 22,182,888 17,764,409 2,770,000 Total finance leases 815,574 914,575 31-Dec-22 Total loans 26,476,767 16,504,240 1,420,000 Total finance leases 557,538 1,374,907 In 2020 the parent company received an amount of 500,000 euros in the form of a refundable advance based on Ministerial Decision (KYA) ΓΔΟΥ 94/2.5.2020. According to ΓΔΟΥ 1054/15.11.2021 a business may pay 33,3% as long as it maintained the levels of employment and received an extra 15% deduction on the remaining amount due to its payment in full. The company recognized a benefit: • According to ΓΔΟΥ 1048/15.11.2021 an amount of 250,000 euro in the results of fiscal year 2021, as it met the conditions of not repaying 50% • According to ΓΔΟΥ 1054/15.11.2021 an amount of 108,250 euro in the results of fiscal year 2022, as it met the conditions of paying 33,3%. The company eventually paid the amount of 141,750 euro, receiving an extra deduction of 15% on the remaining amount due to its payment in full. Collateral A pledge of first class and series has been established on shares issued by Iktinos Techniki and Touristiki SA, which correspond to 97.764% of the share capital owned by Laritus Ltd, in securing the common bond loan of € 10,000,000 signed with ALPHA BANK. The balance of the loan as of 31/12/2022 amounts to 7,660,000 euro. The average borrowing rate of the group and the company at the balance sheet date is 4.16% and 4.15% respectively. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 157 10.13. Employee benefits liabilities The changes in the present value of employees’ compensation due to retirement are as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Opening balance for period on 01/01/2021 501,428 443,987 470,423 420,719 Current employment costs 74,467 61,266 70,429 58,127 Financial cost 2,304 4,547 2,163 4,310 Previous experience costs 0 6,344 0 2,109 Cost (result) of Settlements 23,014 15,725 23,014 15,725 Benefits paid within the current year -44,246 -24,381 -44,246 -24,381 Actuarial (gains) / losses -36,584 -6,061 -34,651 -6,185 Liability Balance on 31/12/2022 520,383 501,428 487,133 470,423 The main actuarial assumptions used are the following: 31/12/2022 31/12/2021 Prepayment Rate 3.79% 0.40% Future increases in salaries 3.50% 2.50% Inflation 3.00% 2.20% The use of a discount rate of 0.5% higher would result in the actuarial liability being lower by 3% for the Company and the Group while the exact opposite, i.e. the use of a discount rate of 0.5% lower would result in the actuarial liability being higher by 3% for the Company and the Group. The use of 0.5% higher expected salaries increase would result in the actuarial liability being 3% higher for the Company and the Group, while the exact opposite, i.e. the use of expected salary increase less by 0.5% would result in the actuarial liability being lower by 3% for the Company and the Group. Sensitivity analysis GROUP COMPANY Actuarial Liability % Change Actuarial Liability % Change Increase of discount interest rate by 0.5% 532,797 -3% 500,413 -3% Decrease of discount rate by 0.5% 508,567 3% 474,417 3% Increase of projected salary increase by 0.5% 508,471 3% 474,322 3% Decrease of projected salary increase by 0.5% 532,763 -3% 500,386 -3% Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 158 10.14. Government Grants The grants of the Group and of the Company are analyzed as follows: GROUP 31/12/2022 31/12/2021 Grants 4,806,613 5,379,465 New Grants 0 0 Less: Attributable depreciation for the period -569,709 -572,852 Total 4,236,904 4,806,613 COMPANY 31/12/2022 31/12/2021 Grants 55,993 85,917 New Grants 0 0 Less: Attributable depreciation for the period (26,781) (29,924) Total 29,212 55,993 10.15. Provisions The Group has an obligation to restore the natural landscape in the areas where quarries are created or electricity generation units are installed. The relevant provisions that have been recognized until 31/12/2022 by the Group and the Company are as follows: GROUP COMPANY Provisions Provisions Opening balance on 1 January 2021 280,718 243,883 Additional provisions for the period: Tax for unaudited periods Wind farm restoration costs 1,842 Quarries restoration costs (19,847) (19,847) Predictions recognized in the fixed 0 Closing balance on 31 December 2021 262,713 224,036 Additional provisions for the period: Tax for unaudited periods Wind farm restoration costs 3,745 3,745 Quarries restoration costs 1,934 Predictions recognized in the fixed 0 Closing balance on 31 December 2022 268,392 227,781 10.16. Suppliers and other liabilities The analysis of the outstanding balances of suppliers and other related liabilities of the Group and of the Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 159 Company are as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Suppliers 966,423 197,663 849,008 97,891 Checks payable 6,165,709 5,087,333 5,789,631 4,668,636 Prepayments from Customers 0 425,005 0 425005 Total 7,132,131 5,710,002 6,638,639 5,191,533 10.17. Current tax liabilities GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Income tax 331,920 385,983 331,670 385,983 Other taxes 521,686 664,279 501,633 646,464 Total 853,605 1,050,262 833,302 1,032,447 10.18. Other short-term liabilities Other short-term liabilities of the Group and of the company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Insurance agencies 1,396,097 602,155 1,372,950 581,807 Dividends payable 39,741 39,741 39,741 39,741 Other liabilities 3,804,082 4,469,695 5,299,027 5,142,915 Accrued expenses 886,526 426,019 874,306 387,022 Total 6,126,446 5,537,610 7,586,023 6,151,485 10.19. Sales The sales of the group and of the company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Merchandise 8,208 48,815 8,208 48,815 Goods 14,160,585 13,805,530 14,160,585 13,805,530 Raw materials 15,721,975 18,417,114 15,721,975 18,417,114 Services 637,112 403,202 614,384 392,106 Wind Energy 2,177,847 1,942,128 0 0 Other 312,836 351,106 312,836 351,106 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 160 TOTAL 33,018,563 34,967,895 30,817,987 33,014,672 10.20. Expenses per category The expenses per category of the Group and of the Company are analyzed as follows: GROUP COMPANY 01/01- 31/12/2022 01/01- 31/12/2021 01/01- 31/12/2022 01/01- 31/12/2021 Employee remuneration 6,716,945 7,962,486 6,312,658 7,599,280 Third parties fees 671,742 727,598 642,379 700,616 Charges for third parties 3,512,288 3,280,782 2,850,782 2,523,245 Taxes-Duties 119,091 125,791 52,698 47,696 General Expenses 400,972 347,542 315,046 268,180 Financial 33,200 67,018 33,200 67,018 Depreciation 4,069,603 4,451,983 2,016,813 2,406,345 Total 15,523,841 16,963,200 12,223,578 13,612,379 Inventory cost 7,161,997 5,433,672 7,787,232 6,211,952 Impairment of inventory Less self-supply (132,240) (117,415) (132,240) (117,415) Sales Cost 22,553,598 22,279,458 19,878,569 19,706,916 Management expenses GROUP COMPANY 01/01- 31/12/2022 01/01- 31/12/2021 01/01- 31/12/2022 01/01- 31/12/2021 Employee remuneration 2,427,931 2,258,924 2,427,931 2,258,924 Third parties fees 1,189,680 1,505,174 1,141,410 1,465,521 Charges for third parties 197,466 27,316 187,676 78,153 Taxes-Duties 76,019 51,886 72,195 51,781 General Expenses 554,740 499,161 520,682 463,144 Financial 31,478 1,301 31,478 1,301 Depreciation 343,042 361,246 308,917 328,514 Provisions 93,443 83,336 93,443 75,961 Total 4,913,800 4,788,344 4,783,732 4,723,299 Cost of inventories 13,575 15,553 9,537 15,553 Total 4,927,375 4,803,897 4,793,269 4,738,852 Disposal costs GROUP COMPANY 01/01- 31/12/2022 01/01- 31/12/2021 01/01- 31/12/2022 01/01- 31/12/2021 Employee remuneration 1,209,919 1,145,992 1,209,919 1,145,992 Third parties fees 207,226 96,783 207,226 96,783 Charges for third parties 151,925 148,119 151,925 148,119 Taxes-Duties 43,684 41,263 43,684 41,263 General Expenses 3,526,809 3,492,062 3,526,809 3,492,062 Financial 1,356 840 1,356 840 Depreciation 134,020 135,964 134,020 135,964 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 161 Total 5,274,939 5,061,024 5,274,939 5,061,024 Cost of inventories 361,687 310,810 361,687 310,810 Total 5,636,626 5,371,834 5,636,626 5,371,834 Research and Development Expenses 01/01- 31/12/2022 01/01- 31/12/2021 01/01- 31/12/2022 01/01- 31/12/2021 Employee remuneration 0 0 0 0 Third parties fees 32,125 14,550 32,125 14,550 Charges for third parties 36 0 36 0 Taxes-Duties 333 333 General Expenses 23,427 5,363 23,427 5,363 Total 55,587 20,246 55,587 20,246 Inventory cost 0 0 0 0 Total 55,587 20,246 55,587 20,246 For the year ended in 31 December 2022, the expenses of the year analyzed in the item "Third Party Fees" include fees of the statutory auditor and the audit firm in the amount of euros (2022 : € 6,000) for the Group and euros (2022 : € 6,000) for the Company, concerning permitted non-audit services (excluding the services of mandatory and tax audit). Employee remuneration is analyzed as follows: GROUP COMPANY 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Salaries and wages 7,698,913 8,827,641 7,375,718 8,538,314 Employer contributions 2,234,024 2,185,859 2,154,426 2,113,991 Other 519,339 437,239 513,807 427,852 Total 10,452,277 11,450,739 10,043,951 11,080,157 10.21. Other operating income/operation expenses Other operating income/operation expenses of the Group and of the Company is analyzed as follows: Income GROUP COMPANY 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Income from Subsidies 192,679 765,740 192,679 765,682 Return of Tariffs & Taxes 1,174,754 703,348 1,174,754 703,348 Earnings of Foreign Exchange Differences 6,578 3,286 6,578 3,286 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 162 Revenue from corresponding depreciation 572,852 572,852 29,924 29,924 Profits from the sale of fixed assets 15,082 24,596 10,673 5,796 Other 7,221 47,971 8,721 14,595 Total 1,969,165 2,117,794 1,423,329 1,522,631 The revenues include revenues from subsidies amounting to 192,679 Euros from OAED, in the context monetary claims of the salary cost subsidy, which result from the provisions of article 21 of law 1767/1988 (A’63), as replaced by article 32 of law 1836/1989 (AD 89). For more information refer to section "4. Annual Report of the Board of Directors ", paragraph Β.6. In addition, income from the return of Special Consumption Tax amounting to 1,174,754 euros is included after an audit by the Athens Customs and the Keratsini customs. (see section "4. Annual Report of the Board of Directors", paragraph B.1.) Expenses GROUP COMPANY 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Foreign exchange losses 6,090 1,976 6,090 1,976 Prior period expenditure 51,858 26,523 10,518 11,063 Other 24,707 257,439 23,822 255,945 Total 82,654 285,938 40,430 268,984 10.22. Financial income/expenses The financial income/expenses of the Group and of the Company is analyzed as follows: Financial Income from: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Interest on Treasury Bills 0 0 0 0 Reduction of repayable deposit 108,475 250,000 108,475 250,000 Other Credit Interest 0 0 0 0 Other capital gains 0 0 Total 108,475 250,000 108,475 250,000 108,475 250,000 108,475 250,000 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 163 On 31.12.2022 the company has fulfilled the relevant terms for the possibility of paying 33,3% of the repayable advance payment of 500,000 Euros received in 2020 from the Greek State and has recognized the relevant benefit in the results of the year 2022, with a parallel write-off of the corresponding obligation (108,450 euro). (see section "4. Annual Report of the Board of Directors", paragraph Β.3) Financial Expenses from: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Bank loans & overdrafts 1,664,880 1,577,160 1,643,031 1,513,559 Bank Guarantees Commissions 7,028 10,908 6,590 10,470 Other Bank Expenditure 167,295 268,779 167,295 268,306 Other Finance Expenditure 6,643 0 4,107 0 Total 1,845,846 1,856,847 1,821,024 1,792,335 10.23. Other financial Results Other financial results of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Impairment of participation value 0 0 0 0 Clearing result IKTINOS MARMARON 0 0 0 0 Valuation of Derivative Shares and Warrants 13,710 11,288 13,710 181,096 Total 13,710 11,288 13,710 181,096 10.24. Investment activity Results The results from investment activity of the Group and the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Liquidation of IDEI SUBSIDIARIES 0 (26,622) 0 0 Liquidation of MARMARON SA 0 (107,544) 0 0 Gains / (Losses) from real estate valuation 0 0 0 0 Total 0 (134,166) 0 0 10.25. Income tax The income tax of the Group and the Company is analyzed as follows: Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 164 GROUP COMPANY 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Period tax 22% 429,852 251,757 429,852 251,757 Deferred period tax expense / (income) (201,971) 322,182 (151,017) 381,672 Tax audit differences Deferred period tax due to change in tax rate 0 (484,958) 298,576 Other taxes not included in operating costs 106,301 81,568 60,890 41,710 Total 334,183 170,549 339,725 973,715 The applicable tax rate in Greece is 22%. The agreement between the amount of income tax and the amount resulting from the application of the applicable income tax rate of the Company in Greece (2022: 22%, 2021: 22%) on the results before taxes, is as follows: GROUP COMPANY 1/1 - 31/12/2022 1/1 - 31/12/2021 1/1 - 31/12/2022 1/1 - 31/12/2021 Profits / (Losses) before income taxes 8,227 2,594,591 137,997 3,069,231 Income taxes calculated at the current tax rate of 22% 1,810 570,810 30,359 675,231 Non-taxable income for period Νon-taxable income 0 (55,000) 0 (55,000) Expenses that are not deductible for tax purposes - Tax effect of expenses that are not deductible for tax purposes 155,705 101,788 155,705 101,788 '- Tax loss from the liquidation of a subsidiary (92,400) (392,926) 0 0 - Tax effect of losses for which no deferred tax asset was recognised 64,188 426,948 0 0 - Adjustment of deferred taxation from a change in tax rate 0 (484,958) 0 298,576 - Other taxes not included in operating costs 106,301 81,568 60,890 41,710 - Other 98,579 (77,680) 92,770 (88,590) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 165 Income taxes shown on the income statement 334,183 170,549 339,725 973,715 10.26. Earnings per share The Earnings per share of the Group and of the Company are analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Number of shares 114,320,400 114,320,400 114,320,400 114,320,400 Less: Number of shares of parent (489,916) (489,916) (489,916) (489,916) Total shares 113,830,484 113,830,484 113,830,484 113,830,484 Profits corresponding to the parent’s Shareholders (304,952) 2,430,533 (201,728) 2,095,516 Weighted average number of shares in circulation 113,830,484 113,830,484 113,830,484 113,830,484 Main Earnings per share (Euro per share) (0,0027) 0,0214 (0,0018) 0,0184 10.27. Financial assets and liabilities The fair values of all the financial products of the Group and the Company which are reflected in the financial statements, do not differ from the book values. Below is an analysis of the financial assets and liabilities of the Group and the Company, except for cash and cash equivalents: GROUP 31/12/2022 Financial assets Debt instruments valued at amortized cost Equity instruments valued at fair value through profit or loss Total Other long-term receivables 52,864 0 52,864 Customers 10,725,562 0 10,725,562 Other receivables and advances 3,098,060 0 3,098,060 Other listed financial assets 0 63,055 63,055 Total 13,876,487 63,055 13,939,542 Long term 52,864 0 52,864 Short term 13,823,622 63,055 13,886,678 Total 13,876,487 63,055 13,939,542 GROUP 31/12/2021 Financial assets Debt instruments valued at amortized cost Equity instruments valued at fair value through profit or loss Total Other long-term receivables 55,355 0 55,355 Customers 7,806,627 0 7,806,627 Other receivables and advances 3,565,942 0 3,565,942 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 166 Other listed financial assets 0 49,345 49,345 Total 11,427,923 49,345 11,477,269 Long term 55,355 0 55,355 Short term 11,372,568 49,345 11,421,914 Total 11,427,923 49,345 11,477,269 GROUP 31/12/2022 Financial liabilities Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Total Suppliers 7,132,131 0 7,132,131 Other liabilities 5,459,125 0 5,459,125 Borrowing and finance leases 46,333,451 0 46,333,451 Total 58,924,707 0 58,924,707 Long term 19,299,146 0 19,299,146 Short term 39,625,561 0 39,625,561 Total 58,924,707 0 58,924,707 GROUP 31/12/2021 Financial liabilities Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Total Suppliers 5,710,002 0 5,710,002 Other liabilities 5,537,610 0 5,537,610 Borrowing and finance leases 44,447,445 0 44,447,445 Total 55,695,056 0 55,695,056 Long term 21,448,984 0 21,448,984 Short term 34,246,073 0 34,246,073 Total 55,695,056 0 55,695,056 COMPANY 31/12/2022 Financial assets Debt instruments valued at amortized cost Equity instruments valued at fair value through profit or loss Total Other long-term receivables 33,165 33,165 Customers 12,959,423 0 12,959,423 Other receivables and advances 2,624,879 0 2,624,879 Other listed financial assets 0 63,055 63,055 Total 15,617,467 63,055 15,680,523 Long term 33,165 0 33,165 Short term 15,584,302 63,055 15,647,358 Total 15,617,467 63,055 15,680,523 COMPANY 31/12/2021 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 167 Financial assets Debt instruments valued at amortized cost Equity instruments valued at fair value through profit or loss Total Other long-term receivables 35,655 35,655 Customers 9,470,324 0 9,470,324 Other receivables and advances 2,964,045 0 2,964,045 Listed other financial assets 0 49,345 49,345 Total 12,470,024 49,345 12,519,369 Long term 35,655 0 35,655 Short term 12,434,369 49,345 12,483,714 Total 12,470,024 49,345 12,519,369 COMPANY 31/12/2022 Financial liabilities Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Total Suppliers 6,638,639 0 6,638,639 Other liabilities 6,918,702 0 6,918,702 Borrowing and finance leases 46,333,451 0 46,333,451 Total 59,890,792 0 59,890,792 Long term 19,299,146 0 19,299,146 Short term 40,591,646 0 40,591,646 Total 59,890,792 0 59,890,792 COMPANY 31/12/2021 Financial liabilities Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Total Suppliers 5,191,533 0 5,191,533 Other liabilities 6,151,485 0 6,151,485 Borrowing and finance leases 43,456,619 0 43,456,619 Total 54,799,637 0 54,799,637 Long term 21,448,984 0 21,448,984 Short term 33,350,653 0 33,350,653 Total 54,799,637 0 54,799,637 Fair value of financial instruments Fair Value Hierarchy The Group uses the following hierarchy to determine and disclose the fair value of financial instruments per valuation technique: Level 1: negotiable prices in active markets for similar assets or liabilities; Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 168 Level 2: valuation techniques for which all inputs that have a significant effect on the recorded fair value are observable either directly or indirectly; Level 3: techniques that use inputs that have a significant effect on the recorded fair value and are not based on observable market data. The following tables show the financial assets and liabilities measured at fair value at 31 December 2022. GROUP / COMPANY Financial instruments valued at fair value: Valuation at Fair Value at the end of the reporting period using: Description 31/12/2022 Level 1 Level 2 Financial assets valued at fair value through the income statement 63,055 63,055 - Shares Financial assets available for sale Total 63,055 63,055 0 Capital management policies and procedures The objectives of the Group and of the Company as regards capital management are the following: • to ensure the Company’s continuous smooth operation of its business activities; • to provide satisfactory returns to the shareholders by invoicing services according to their cost and ensuring capital restructuring, and • to ensure the maintenance of healthy capital ratios. The Company monitors the capital management on the basis of the following ratio which is based on indicators as these are presented in the Statement of Financial Position. GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Loans 46,333,451 44,447,445 46,333,451 43,456,619 Minus: Cash Available -1,626,101 -1,420,374 -1,448,934 -1,383,290 Net Lending 44,707,350 43,027,071 44,884,517 42,073,329 Total equity 49,624,783 49,922,203 45,749,163 45,923,863 Leverage ratio 0.901 0.862 0.982 0.916 Liabilities arising from Financing Activities Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 169 Under IAS 7, non-cash changes for which there is no obligation to disclose Cash Flows are presented below: GROUP Long-term loans Long-term liabilities payable for the next financial year Short-term loans Total January 1 2022 20,534,409 3,894,323 18,288,564 42,717,297 Cash flows : - Repayments 0 -4,060,168 -7,885,661 -11,945,829 - Proceeds 1,333,333 166,667 12,108,709 13,608,709 Non-Cash movements: -3,943,503 3,859,341 104,991 20,829 December 31 2022 17,924,240 3,860,163 22,616,604 44,401,007 GROUP Long-term loans Long-term liabilities payable for the next financial year Short-term loans Total January 1 2021 19,036,669 9,349,043 14,919,567 43,305,279 Cash flows : - Repayments -2,940,131 -3,094,924 -9,200,496 -15,235,551 - Proceeds 3,210,000 274,703 11,973,115 15,457,818 Non-Cash movements: 1,227,871 -2,634,499 596,379 -810,250 December 31 2021 20,534,409 3,894,323 18,288,564 42,717,297 COMPANY Long-term loans Long-term liabilities payable for the next financial year Short-term loans Total January 1 2022 20,534,409 2,903,497 18,288,564 41,726,470 Cash flows : - Repayments 0 -2,903,497 -6,522,516 -9,426,014 - Proceeds 1,333,333 166,667 10,588,107 12,088,107 Non-Cash movements: -3,943,503 3,693,497 262,450 12,444 December 31 2022 17,924,240 3,860,163 22,616,604 44,401,007 COMPANY Long-term loans Long-term liabilities payable for the next financial year Short-term loans Total January 1 2021 17,879,999 8,342,924 14,919,567 41,142,490 Cash flows : - Repayments -2,940,131 -3,094,924 -8,028,534 -14,063,588 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 170 - Proceeds 3,210,000 290,000 11,957,818 15,457,818 Non-Cash movements: 2,384,541 -2,634,503 -560,288 -810,250 December 31 2021 20,534,409 2,903,497 18,288,564 41,726,470 10.28. Fair value of non-financial instruments Investment property is measured at fair value. The fair value of the property was calculated by an independent appraisal firm with sufficient experience, which determined the value of the property by following internationally recognized valuation methods. The following tables show the levels of non-financial assets that are valued at fair values at 31 December 2022 and 31 December 2021 respectively. Non-financial instruments at fair value at 31/12/2022: GROUP COMPANY Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Real estate investments 29,073,959 102,000 Total 0 0 29,073,959 0 0 102,000 Non-financial instruments at fair value at 31/12/2021: GROUP COMPANY Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Real estate investments 29,061,664 102,000 Total 0 0 29,061,664 0 0 102,000 The method of discounted cash flows was applied to calculate the fair value of the plots. The Discounted Cash Flow (DCF) method takes into account the timing, frequency and amount of future cash flows that the property is expected to generate using discounted rates that reflect the current market estimate in relation to the uncertainty for the amount and the timing that these cash flows occur. For the application of cash flow discounting techniques, assumptions are used, which establish estimates to determine fair value and are those related to: expected future income, completeness, gaps, construction costs, maintenance obligations, and appropriate discounted allowances. Indicatively for the valuation of investment properties the main assumptions which are based on unobservable data and have been used, are summarized in the table below: 31/12/2022 Assumptions Value per m 2 € 5.03/m 2 - € 33.06/m 2 Discount rate 10.80% Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 171 10.29. Contingent receivables - liabilities There are no court disputes or arbitration disputes subject to judicial or arbitration bodies which significantly affect the financial position or operation of the Group. The unaudited tax years of the companies of the Groups are as follows: CORPORATE NAME REGISTERED OFFICE UNAUDITED TAX YEARS IKTINOS HELLAS S.A 7 Lykovryssis Str., Metamorfossi, Attica - FEIDIAS HELLAS S.A. 12Α Tinou Str., Vrilissia, Attica - KALLITECHNOKRATIS LTD. 7 Lykovryssis Str., Metamorfossi, Attica under liquidation IKTINOS MARMARON S.A. 7 Pangaiou, Drama - IDEI S.A. 7 Lykovryssis Str., Metamorfossi, Attica under liquidation AIOLIKI MEGA ISOMA S.A. 7 Lykovryssis Str., Metamorfossi, Attica under liquidation AIOLIKI MAVROLITHARO S.A. 7 Lykovryssis Str., Metamorfossi, Attica 2016-2022 AIOLIKI LYKOFOLIA S.A. 7 Lykovryssis Str., Metamorfossi, Attica under liquidation AIOLIKI SYNORA S.A. 7 Lykovryssis Str., Metamorfossi, Attica 2016-2022 IKTINOS TECHNIKI & TOURISTIKI S.A. 12 Esperidon, Nicosia 2006-2022 According to the provisions of POL no. 1192/2017, the right of the State for tax attribution until the year 2015 has expired unless there is a case of application of the special provisions for a 10-year, 15-year and 20-year lapse period. According to POL. 1006/5.1.2016 the companies for which a tax certificate is issued without reservation, are not exempted from the statutory tax audit by the competent tax authorities. For this reason, the Greek tax authorities have the right to carry out a tax audit of the fiscal years they will choose, taking into account the work for the issuance of the tax compliance certificate. For the years 2011-2013, the Greek Societes Anonymes whose annual financial statements are compulsorily audited, are obliged to receive an "Annual Certificate" provided in par. 5 of article 82 of Law 2238/1994, which is issued after a tax audit, carried out by the same Statutory Auditor or audit firm that audits the annual financial statements. From 2014 onwards, the above Greek Societes Anonymes, based on POL.1124/2015 are exempted from the annual certificate by statutory auditors of the provisions of article 65A of Law 4174/2013, as the gross income of each one does not exceed the amount of one hundred and fifty thousand euros per year, and they are required to receive an "Annual Certificate" provided by article 65A par. 1 of Law 4174/2013. The result of the above audits leads to the issuance of a tax certificate, which replaces the audit by the public authority if the relevant conditions are met; however, the public authority retains the right of subsequent audit without concluding its tax obligations for the relevant fiscal year. Since the fiscal year 2016 with recent relevant legislation, this audit has become optional. The Group chose to continue receiving the Annual Certificate for companies that meet the criteria of POL 1124/2015. Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 172 For 2022, the tax audit for the issuance of a "Tax Compliance Report" for the Company and its subsidiaries IKTINOS MARMARON SA, FEIDIAS HELLAS SA and IDEI SA is already in progress. No significant tax liabilities are expected to arise other than those recorded and reflected in the financial statements. The guarantees of the Group and the Company on 31/12/2022 are as follows: GROUP COMPANY Letters of guarantee 419,091 419,091 10.30. Transactions with related parties The amounts of purchases and sales of the company to and from the related parties as defined by IAS 24, cumulatively from the beginning of the current period 1/1 – 31/12/2022 and 1/1-31/12/2021 as well as the balances of receivables and liabilities of the above companies on 31/12/2022 and 31/12/2021 are analyzed below: The receivables / liabilities and the remuneration of the administrative and managerial executives of the Group for the years ended on 31 December 2022 and 2021 are as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Sales of goods / services Subsidiaries - - 0 1,500 Other Related Parties 327,825 199,543 317,365 196,117 Total 327,825 199,543 317,365 197,617 Other Income / Expenses Subsidiaries - - (70,500) (70,100) Other Related Parties 3,600 0 3,600 - Total 3,600 0 (66,900) (70,100) Purchases of Goods / Services Subsidiaries - - 711,505 893,370 Other Related Parties 53,417 7,026 53,417 7,026 Total 53,417 7,026 764,922 900,396 31/12/2022 31/12/2021 31/12/2022 31/12/2021 Receivables Subsidiaries - - 2,386,279 2,220,163 Other Related Parties 725,984 542,598 725,984 542,598 Total 725,984 542,598 3,112,263 2,762,761 Liabilities Subsidiaries - - 1,562,302 718,903 Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 173 Other Related Parties 8,000 8,712 8,000 8,712 Total 8,000 8,712 1,570,302 727,615 31/12/2022 31/12/2021 Remuneration to Board members and other directors 942,110 1,023,547 Sales to Board members and other directors 0 1,783 Claims from BoD members and other executives 10,824 146,320 Liabilities of Board members and other directors 1,868,851 2,345,487 10.31. Dividends Regarding the distribution of dividends for the year 2022, the proposal of the Board of Directors at the Ordinary General Meeting of Shareholders is the non-distribution of dividends. 10.32. Number of employees The number of employees engaged by the Group and the Company is analyzed as follows: GROUP COMPANY 31/12/2022 31/12/2021 31/12/2022 31/12/2021 On a salary 160 159 154 153 On a daily wage 232 264 223 255 Total 392 423 377 408 10.33. Website where the financial reports of the group are uploaded The annual financial statement of the parent company IKTINOS HELLAS S.A., as well as of its subsidiaries are uploaded at the following web addresses: Name website IKTINOS HELLAS S.A. iktinos.gr FEIDIAS HELLAS S.A. fidiashellas.gr IDIOTIKI EPICHEIRISI ILEKTRISMOU S.A. idei.gr AIOLIKI MEGA ISOMA ELECTRICITY PRODUCTION SOCIETE ANONYME aiolikimegaisoma.gr AIOLIKI MAVROLITHARO ELECTRICITY PRODUCTION SOCIETE ANONYME aiolikimavrolitharo.gr AIOLIKI LYKOFOLIA ELECTRICITY PRODUCTION SOCIETE ANONYME aiolikilikofolia.gr AIOLIKI SYNORA ELECTRICITY PRODUCTION SOCIETE ANONYME aiolikisinora.gr 10.34. Events subsequent to the balance sheet date Grant of new Bond Loan for 7 mil. euro (completed on 3/3/2023) Separate and Consolidated Annual Financial Statements as of 31 st December 2022 Page 174 The subsidiary company IDEI SA received a 7 mil. euro bond loan from Piraeus Bank for a 7 year term and interest 3%. It also proceeded with a reduction of Share Capital in the amount of 8,425,000 euro with a reduction of the nominal value of the share by twenty-five (25) euros, from 60 euros to 35 euro, with the aim of returning capital of 8,425,000 euro to the parent company IKTINOS HELLAS and a corresponding amendment of article 5 of the Company's Articles of Association. Repayment of a short-term loan of EUR 1.79 million (completed on 3/3/2023) The company proceeded to the payment of an existing bank loan amounting to 1.79 million euro to Piraeus bank, which had been granted pursuant to the Open Mutual Account Agreement no. 2511537/28.07.2006. Apart from the above mentioned events, there are no other events subsequent to the financial statements, which concern either the Group or the Company, and must be mentioned according to the International Financial Reporting Standards. Metamorfosi Attica, 26 April 2023 The Chairman of the BoD & CEO The Deputy CEO The Financial Director Chaidas Evangelos Ioulia Chaida Katsikakis Peristeris ID Card No. ΑΕ 079957 ID Card No. ΑΝ 685224 ID Card No.Χ 630853