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Inform P. Lykos Holdings S.A.

Interim / Quarterly Report Oct 10, 2016

2772_ir_2016-10-10_2b9d6c12-c8f8-456f-b721-cb0f33eb17c9.pdf

Interim / Quarterly Report

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SEMI-ANNUAL FINANCIAL REPORT for the period from January 1st to June 30th 2016

According to article 5, Law 3556/2007

Α) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS 3
Β) SIX MONTH REPORT OF THE BOARD OF DIRECTORS 4
C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION 8
D) SIX-MONTH CONDENSED FINANCIAL STATEMENTS 9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 10
SEPARATE STATEMENT OF FINANCIAL POSITION 11
CONSOLIDATED INCOME STATEMENT 12
SEPARATE INCOME STATEMENT 13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 14
SEPARATE STATEMENT OF COMPREHENSIVE INCOME 15
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 16
SEPARATE STATEMENT OF CHANGES IN EQUITY 18
CONSOLIDATED STATEMENT OF CASH FLOWS 20
SEPARATE STATEMENT OF CASH FLOWS 21
NOTES TO THE FINANCIAL STATEMENTS 22
Ε) FIGURES AND INFORMATION FOR THE PERIOD 1/1 - 30/06/2016 37

Α) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS

The members of the Board of Directors:

1) Panagiotis Lykos, President of the Board of Directors

2) Panagiotis Spyropoulos, Vice President of the Board of Directors and Managing Director of the Group

3) Elias Karantzalis, Member of the Board of Directors

in the above capacity, especially assigned by the Board of Directors of the Société Anonyme under the title «INFORM P. LYKOS S.Α.», declare and certify that to the best of our knowledge:

(a) The six-month, separate and consolidated, financial statements of «INFORM P. LYKOS S.Α.» for the period 1/1/2015-30/06/2015, which were prepared according to the effective accounting standards, present truly and fairly the assets and liabilities, the equity and the financial results of the Company as well as of the consolidated companies as a total, according to par. 3 - 5 of article 5 of L. 3556/2007 and the authorizing decisions of the BoD of the Stock Market Committee.

(b) The six-month management report of the Board of Directors presents in a true and fair way the information required according to par. 6 of article 5 of L. 3556/2007 and authorizing decisions the BoD of the Stock Market Committee.

Koropi Attica, 28 September 2016

The designees

President of the Board of Directors Vice President of the Board of Directors and Managing Director of the Group

Assigned Member of the Board of Directors

Panagiotis Lykos Panagiotis Spyropoulos Elias Karantzalis I.D. no. ΑΒ 607588 I.D. No ΑΙ 579288 I.D. No K 358862

Β) SIX MONTH REPORT OF THE BOARD OF DIRECTORS

(a) Performance and financial position of the Group

INFORM Group registered an upward trend in the first semester both in terms of sales and profitability, as the production and overhead costs reduced thanks to the efficiency development program implemented by the company in recent years, with the aim of further improving competitiveness.

30/6/2016 30/6/2015 D 16-15 D 16-15
%
Revenue 31.953.526 31.119.112 834.414 2,7%
Cost of materials (20.776.261) (19.606.288) (1.169.973) 6,0%
Gross profit I 11.177.265 11.512.824 (335.559) -2,9%
Gross margin Ι 35,0% 37,0%
Cost of production (6.650.872) (7.026.437) 375.565 -5,3%
Gross profit ΙΙ 4.526.394 4.486.387 40.007 -8,3%
Gross margin ΙΙ 14,2% 14,4%
Other income 623.259 423.013 200.247 47,3%
Selling and distribution expenses (2.009.010) (2.383.704) 374.694 -15,7%
Administrative expenses (1.561.885) (1.584.042) 22.157 -1,4%
Research and development expenses (179.223) (164.686) (14.537) 8,8%
Other expenses (273.527) (462.137) 188.610 -40,8%
+ Depreciation 1.835.723 1.786.912 48.811 2,7%
EBITDA 2.961.730 2.101.742 859.988 40,9%
- Depreciation (1.835.723) (1.786.912) (48.811) 2,7%
Operating profits / (losses) 1.126.007 314.830 811.177 257,7%
Financial income 977 7.047 (6.070) -86,1%
Financial expenses (604.926) (562.476) (42.450) 7,5%
Net finance costs (603.949) (555.429) (48.520) 8,7%
Profits / (losses) before taxes 522.059 (240.599) 762.658 -317,0%
Income tax expense (177.877) 83.041 (260.918) -314,2%
Profits / (losses) after taxes 344.182 (157.558) 501.740 318,4%
OPERATING EXPENSES (EXCLUDING
DEPRECIATION)
30/6/2016 30/6/2015 D 16-15 D 16-15
%
Cost of production (6.650.872) (7.026.437) 375.565 -5,3%
Selling and distribution expenses (2.009.010) (2.383.704) 374.694 -15,7%
Administrative expenses (1.561.885) (1.584.042) 22.157 -1,4%
Research and development expenses (179.223) (164.686) (14.537) 8,8%
+ Depreciation 1.835.723 1.786.912 48.811 2,7%
TOTAL (8.565.267) (9.371.958) 806.690 -8,6%
% OPERATING EXPENSES TO SALES 26,8% 30,1%

The Group sales represented an increase of 2.7% in the first semester of 2016, and reached € 31.9 million compared to € 31.1 million in the first semester of 2015.

The earnings before interest, taxes, depreciation and amortisation (EBITDA) of the Group reached € 3 million compared to € 2.1 million in the first semester of 2015, increased by 40.9%, mainly due to the decrease by € 0,8 million of operating expenses.

Specifically, the parent company, INFORM P. LYKOS SA, by excluding the intercompany sales, recorded revenues of € 16.3 million in same levels with the first semester of 2015. Respectively in Romania, the subsidiary INFORM LYKOS S.A. recorded revenues of € 15.3 million compared to € 14.6 million in the first semester of 2015, due to the new projects of printing and mailing statements for Telecom companies.

As a result, the key financial figures of INFORM Group are presented improved, as follows:

  • The earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group, increased by € 0.9 million or 41% and reached € 3 million compared to € 2.1 million in the first semester of 2015,
  • The earnings before interest and taxes (EBIT) of the Group, increased by € 0.8 million or 258% and reached € 1.1 million compared to € 0.3 million in the first semester of 2015,
  • The earnings before taxes (EBT) of the Group, reached € 522 thousand compared to losses € -241 thousand in the first semester of 2015,
  • The consolidated earnings after taxes (EAT) of the Group, reached € 344 thousand compared to losses € -158 thousand in the first semester of 2015.

The consolidated operating cash flow in the first semester of 2016 is presented marginally negative at € -0.2 million compared to € -0.5 million in the first semester of 2015, mainly due to the needs in working capital for purchasing inventories. The bank debt of the Group amounted to € 15.6 million in the first semester of 2016 from € 14.7 million in the first semester of 2015, increased by € 0.8 million, due to the investments that the Group completed in the first semester of 2016.

According to the above, financial ratios of the Group in the first six months of 2016 compared to the corresponding period in 2015, were as follows:

  • The margin of earnings before interest, taxes, depreciation and amortization amounted to 9,3% from 6,8%, increased by 2,5 basis points
  • The margin of earnings before interest and taxes amounted to 3,5% from 1%, increased by 2,5 basis points
  • The margin of earnings before taxes amounted to 1,6% from -0,8%, increased by 2,4 basis points
  • The performance ratio of equity amounted to 0,7% from -0,3%, increased by 1 basis point
  • The performance ratio of assets amounted to 0,4% from -0,2%, increased by 0,6 basis points
  • The ratio of total liabilities to equity amounted to 0,7 from 0,63
  • The ratio of bank debt to equity amounted to 0,3 at the same level with the first half of 2015
  • The ratio of general liquidity amounted to 0,85 at the same level with the first half of 2015.

(b) Significant events after the end of the reporting period

No other event occurred subsequent to the 30/06/2016 which may have a significant impact on the financial position and operations of the Group.

(c) Main risks and uncertainties for the second six-month period of FY 2016

The Group uses financial instruments for trading, financial and investment purposes. The use of financial instruments by the Group materially affects the financial position, profitability and cash flows.

The main risks arising from the financial instruments held by the Group are mainly the following:

  • Market risk (currency risk and interest rate risk)
  • Credit risk
  • Liquidity risk

Market risk

In relation to the risk arising from general market conditions, the Group has reduced exposure to this risk, due to the geographical dispersion with equal distribution of sales between Greece, Romania and Other Countries with major exposure to the markets of Central and Eastern Europe. A significant part of these sales is directed to the financial sector and mainly banking. The continuing negative economic conditions make the markets, in which we operate more vulnerable. However, the products we offer to our customers in both private and public sector are considered essential for their daily operation and growth. Furthermore, by achieving significant reductions in its operating expenses, the Group is particularly competitive and can offer high-level products and services at competitive prices.

Regarding the risks arising from the volatility of interest rates and exchange rates:

Exchange rate risk

The main part of economic transactions of the Group companies (Greece, Romania, Albania) is dominated in the currency of the main economic environment, where each company operates (in operation currency). In Romania, part of the obligations of the company is denominated in RON and in Albania is denominated in ALL.

An exposure to exchange rate fluctuations exists regarding the value of the Group's investments in Romania, only at the time of consolidation of financial statements and their translation from the functional currency RON into the presentation currency Euro.

Interest rate risk

All bank debt of the Group is connected with fluctuating interest rates, maintaining however, the option to convert into stable interest rates, depending on the market conditions.

The company does not use financial derivatives. As in the previous year, other financial assets and other financial liabilities are not affected significantly by interest rates.

Credit risk

The Group has established and applies procedures of credit control, aiming at minimization of bad debt. Sales are directed mainly in big public and private organizations with evaluated historic credit abilities. In case indications of bad debts appear, the relative impairment provisions are made.

Liquidity risk

The Group manages its liquidity needs by careful follow-up of debts, long-term financing obligations and payments. Liquidity needs are monitoring on a daily basis and planning of payments - on weekly and monthly basis. Special attention is paid to management of inventories, receivables and liabilities in order to achieve the highest possible cash liquidity for the Group.

The central financial department of the company, responsible for risk management, operates following certain rules approved by the Board of Directors.

The Board of Directors through appointee members:

(a) Establishes and implements procedures and arrangements that allow the identification of risks which are associated with the activities, procedures and the Company's operating systems (notably credit risk, market risk and operational risk).

(b) Determines the acceptable level of risk.

(c) Ensures that the Group has the required capital adequacy and overall risk management arising from its operation.

RISKS FROM ENFORCEMENT OF CAPITAL CONTROLS IN GREECE

The latest developments which resulted in imposing restrictions on the movement of capitals (capital controls), as well as the continuation of negotiations to finalize a medium-term program to support the Greek economy, are the factors of increased uncertainty regarding the general medium to long term economic operating conditions prevailing in the domestic market, potentially having a negative impact on the growth of the Greek economy and, by extension, the country's GDP in 2016 and 2017. Additionally, the application of new tax measures is likely to impede the ability of some companies to timely respond and to settle their obligations.

The macroeconomic environment, created by these events, generates the risks, the most significant of which relate to liquidity of the financial system and the entities, collectability of receivables, impairment of their assets, recognition of revenues, settlement of the existing debt obligations and / or meeting the terms and maintaining financial indicators, recoverability of deferred tax benefits, valuation of financial instruments, adequacy of provisions and the possibility of continuing business operations.

The aforementioned and other potentially arising adverse developments in Greece may negatively - to some extent - affect liquidity, earnings and financial position of the Greek companies of the Group mainly. However, despite the aforementioned economic conditions and even given further adverse developments, the Group's Management expects to fully maintain the sound operations of all the Group companies, domestic and foreign. These estimates are mainly based on the following conditions / events:

  • The significant and strategic, export orientation of the Group regarding all sectors of activity (sales, production, etc.). Refer to par.
  • 5 in which are listed the Group sales in foreign countries.
  • The strong capital structure and significant positive financial performance of AUSTRIACARD AG Group (former Lykos AG) headquartered in Vienna, Austria, the parent company of the Group.

Specifically, the Group increased sales and significantly improved its operating profitability in the first semester of 2016 (increase: turnover 2,7%, EBITDA 40,9% in the period 1/1 - 30/6/2016 compared with the comparable period 1/1 - 30/06/2015).

(d) Estimates for development of activities in the second half of 2016

The implementation of long-term strategy of the Group to provide high quality products and services and added value to its customers, enables the Group to remain on track of growth, despite the adverse conditions prevailing in markets where activates.

In Greece, INFORM P. LYKOS S.A. completed investments € 4,5 m. in ultramodern digital printing machinery and software, offering the possibility of direct, personalized and interactive information in the most efficient and economical way, presenting innovative solutions for more effective communication with products such as dynamic statements, cloud printing, e-invoicing. Based on the new investments will continue to focus on the development of these innovative interactive communication solutions in order to further increase revenues and profit margins.

In Romania, INFORM LYKOS ROMANIA has been established in the Romanian market and has significantly expanded its share in the banking sector, in the telecommunications sector and the private sector. Drawing expertise from the parent company it will continue to focus on providing high quality products and services and added value to its customers in order to further increase revenues.

Finally, at overall level, the Group continues to focus:

  • to improve productivity and to produce positive cash flows,
  • to the use of low-cost facilities in order to further increase competitiveness and profitability, as well as

• to the exploration of possible opportunities of strategic partnerships with companies that have a significant position in the industry in which it operates, in order to strengthen its strategic advantage in research and technology and create increased synergies and economies of scale, with the ultimate aim of further strengthening position in the wider region of Central and Eastern Europe.

(e) Significant intercompany transactions

The commercial transactions between the company and its related parties within the first six-month period of 2016, were conducted on market terms, and did not sufficiently differ from the respective transactions conducted in the previous years and therefore, they do not materially affect the financial position and performance of the parent within the first six-month period of the current year.

Amounts in thousand Euro

30/06/2016
------------ --
Parent – from/to subsidiaries Sales of
products or
services
Purchases
of
products
or services
Receivables Liabilities
Lykos Paperless Solutions S.A. 30 25 115
Inform Lykos S.A. (Romania) 490 1.319 1.303 444
Albanian Digital Printing Solutions Sh.p.k. 48 79 2
Total 568 1.319 1.407 561

The following shall be mentioned regarding the above:

The sales of the parent company to: (a) «Lykos Paperless Solutions S.A.» concern data processing products, (b) «Inform Lykos S.A. (Romania)» concern mainly printing items and data processing products, and (c) « Albanian Digital Printing Solutions» concern printing items and services.

The purchases of parent company from: «Inform Lykos S.A. (Romania)» concern mainly forms, services and printing items.

C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION

To the shareholders of the company « INFORM P. LYKOS S.A. »

Introduction

We have reviewed the accompanying separate and consolidated condensed statement of financial position of «INFORM P. LYKOS S.A.» (the Company) and its subsidiaries as at 30 June 2016, the relative separate and consolidated condensed statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, as well as the selected explanatory notes, that constitute the interim financial information, which is an integral part of the six-month financial report under the article 5 of the L. 3556/2007. Management is responsible for the preparation and presentation of this condensed interim financial information, in accordance with International Financial Reporting Standards, as adopted by the European Union and which apply to Interim Financial Reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this condensed interim financial information based on our review.

Scope of Review

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.

Report on Other Legal and Regulatory Requirements

From the above review we ascertained that the content of the provided by the article 5 of L. 3556/2007 six-month financial report is consistent with the accompanying interim financial information.

Athens, 30 September 2016 Chartered Accountant

D) SIX-MONTH CONDENSED FINANCIAL STATEMENTS

The attached six-month condensed financial statements that constitute an integral part of the six-month financial report under Article 5 of Law 3556/2007 were approved by the Board of Directors of the issuer (hereinafter INFORM P. LYKOS S.A. or the Company) on 28.09.2016 and have been published on the Company's website – www.lykos.gr as well as on the ASE website where they will remain at the disposal of investors for at least five (5) years from their preparation and publication date.

It is to be noted that the published condensed financial items and information arising from the interim condensed financial statements are aimed to provide the reader with a general update on the financial position and results of the Company and the consolidated companies as an aggregate (the Group), but do not provide a complete outlook of the financial position, financial performance and cash flows of the Company and the Group in compliance with International Financial Reporting Standards.

Consolidated Statement of Financial Position

The Statement of Financial Position of the Group for the period ended as at 30/06/2016 and the corresponding comparative figures of previous year 31/12/2015 are the following:

THE GROUP
Note 30/6/2016 31/12/2015
Assets
Property, plant and equipment 12 59.331.192 57.389.325
Intangible assets 13 3.600.796 3.468.934
Other receivables 25.898 61.499
Investment property 307.821 310.847
Deferred tax assets 33.100 52.475
Non-current assets 63.298.807 61.283.080
Inventories 14 6.993.261 5.816.156
Current income tax assets 1.164.431 1.168.610
Trade receivables 12.574.874 12.568.147
Other receivables 1.853.986 1.685.294
Receivables from related parties 22 198.231 144.073
Cash and cash equivalents 1.742.379 3.927.869
Current assets 24.527.162 25.310.149
Total assets 87.825.969 86.593.229
Equity
Share capital 15 12.758.592 12.758.592
Share premium 15 13.805.791 13.805.791
Reserves 15.694.437 15.677.169
Retained profits 8.866.445 10.295.967
Equity attributable to shareholders of the
Parent Company
51.125.266 52.537.519
Non-controlling interests 641.107 595.245
Total Equity 51.766.372 53.132.765
Liabilities
Loans and borrowings 16 4.847.449 2.576.196
Employee benefits 910.579 1.071.181
Other liabilities 39.000 39.000
Deferred tax liabilities 1.546.416 1.432.062
Non-current liabilities 7.343.443 5.118.439
Current income tax liabilities 23.467 3.237
Loans and borrowings 16 10.752.071 12.168.383
Trade payables 10.925.628 9.746.619
Other payables 3.154.122 1.647.229
Liabilities to related parties 22 2.918.610 2.959.297
Deferred income/revenue 942.256 872.822
Provisions 17 0 944.439
Current Liabilities 28.716.153 28.342.025
Total Liabilities 36.059.597 33.460.464
Total Equity and Liabilities 87.825.969 86.593.229

Separate Statement of Financial Position

The Statement of Financial Position of the Company for the period ended as at 30/06/2016 and the corresponding comparative figures of previous year 31/12/2015 are the following:

THE COMPANY
Note 30/6/2016 31/12/2015
Assets
Property, plant and equipment 12 33.243.636 32.108.331
Intangible assets 13 1.459.715 1.256.803
Other receivables 25.898 61.499
Investments in subsidiaries 22.138.861 22.138.861
Non-current assets 56.868.109 55.565.493
Inventories 14 3.857.417 3.981.987
Current income tax assets 224.592 226.507
Trade receivables 5.993.689 5.315.916
Other receivables 739.734 791.706
Receivables from related parties 22 1.847.740 683.844
Cash and cash equivalents 1.331.390 3.543.341
Current assets 13.994.562 14.543.301
Total assets 70.862.672 70.108.794
Equity
Share capital 15 12.758.592 12.758.592
Share premium 15 13.805.791 13.805.791
Reserves 13.518.818 13.518.818
Retained profits 6.060.264 7.730.574
Equity attributable to shareholders of the
Parent Company
46.143.465 47.813.775
Total Equity 46.143.465 47.813.775
Liabilities
Loans and borrowings 16 3.707.258 1.179.258
Employee benefits 910.579 1.071.181
Deferred tax liabilities 1.232.505 1.143.488
Non-current liabilities 5.850.341 3.393.926
Loans and borrowings 16 8.698.980 9.216.525
Trade payables 4.334.720 4.557.173
Other payables 2.780.269 1.384.180
Liabilities to related parties 22 2.291.497 1.934.781
Deferred income/revenue 763.399 863.996
Provisions 17 0 944.439
Current Liabilities 18.868.865 18.901.093
Total Liabilities 24.719.207 22.295.020
Total Equity and Liabilities 70.862.672 70.108.794

Consolidated Income Statement

The Income Statement of the Group for the period ended as at 30/06/2016 and the respective comparative sizes of the previous year are the following:

THE GROUP
Note 30/6/2016 30/6/2015
Revenue 7 31.953.526 31.119.112
Cost of sales
Gross profit
(27.427.132)
4.526.394
(26.632.725)
4.486.387
Other income 8 623.259 423.013
Selling and distribution expenses (2.009.010) (2.383.704)
Administrative expenses (1.561.885) (1.584.042)
Research and development expenses (179.223) (164.686)
Other expenses 8 (273.527) (462.137)
+ Depreciation 1.835.723 1.786.912
EBITDA 2.961.730 2.101.742
- Depreciation (1.835.723) (1.786.912)
EBIT 1.126.007 314.830
Financial income
Financial expenses
977
(604.926)
7.047
(562.476)
Net finance costs (603.949) (555.429)
Profits / (losses) before taxes 522.059 (240.599)
Income tax expense 10 (177.877) 83.041
Profits / (losses) after taxes for the period 344.182 (157.558)
Profits / (losses) attributable to:
Owners of the Parent Company 9 298.894 (165.012)
Non-controlling interests 45.288 7.454
344.182 (157.558)

Separate Income Statement

The Income Statement of the Company for the period 1/1 - 30/06/2016 and the respective comparative sizes of the previous year are the following:

Note 30/6/2016 30/6/2015
Revenue 7 16.866.932 16.505.895
Cost of sales (14.421.303) (13.907.166)
Gross profit 2.445.629 2.598.729
Other income 8 500.435 236.261
Selling and distribution expenses (1.275.189) (1.587.930)
Administrative expenses (839.638) (987.046)
Research and development expenses (179.223) (164.686)
Other expenses 8 (52.808) (281.216)
+ Depreciation 1.300.927 1.287.711
EBITDA 1.900.134 1.101.822
- Depreciation (1.300.927) (1.287.711)
EBIT 599.207 (185.889)
Financial income 100 37.988
Financial expenses (452.185) (405.863)
Net finance costs (452.086) (367.875)
Profits / (losses) before taxes 147.121 (553.764)
Income tax expense 10 (89.017) 165.918
Profits / (losses) after taxes for the period 58.104 (387.846)
Profits / (losses) attributable to:
Owners of the Parent Company 58.104 (387.846)
Non-controlling interests 0 0
58.104 (387.846)

THE COMPANY

Consolidated Statement of Comprehensive Income

The Statement of Comprehensive Income of the Group for the period 1/1 - 30/06/2016 and the respective comparative sizes of the previous year are the following:

THE GROUP
Note 30/6/2016 30/6/2015
Profits / (Losses) after taxes 344.182 (157.558)
Other comprehensive income
Items that will not be reclassified to profit or loss
Property revaluation (41) 0
(41) 0
Items that are or may be reclassified to profit or loss
Foreign operations – foreign currency translation differences
11
17.883 44.784
17.883 44.784
Other comprehensive income, net of tax 17.842 44.784
Total comprehensive income for the period 362.024 (112.774)
Total comprehensive income attributable to:
Owners of the Parent Company 316.163 (120.991)
Non-controlling interests 45.861 8.217
362.024 (112.774)

Separate Statement of Comprehensive Income

The Statement of Comprehensive Income of the Company for the period 1/1 – 30/06/2016 and the respective comparative sizes of the previous year are the following:

THE COMPANY
30/6/2016 30/6/2015
Profits / (Losses) after taxes 58.104 (387.846)
Other comprehensive income 0 0
Total comprehensive income for the period 58.104 (387.846)

The accompanying explanatory notes constitute an integral part of these condensed interim financial statements.

Consolidated Statement of Changes in Equity

The Statement of Changes in Equity of the Group is the following:

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1
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2
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5.
5
4
6.
1
6
8

Separate Statement of Changes in Equity

The Statement of Changes in Equity of the Company is the following:

For the period ended 30 June 2016

ha
S
re
ita
l
ca
p
ha
S
re
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p
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1
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3
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7.7
5
74
8
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1
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5
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fits
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(
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1
0
4
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0
0
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5
8.
1
0
4
0
5
8.
1
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4
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f
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ds
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1.7
2
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41
4
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(
1.7
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41
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(
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4
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(
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4
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2
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(
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ha
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8
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14
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14
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8
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0
0
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0
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(
14
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4.
8
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de
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0 0 0 0 0 (
8.
2
3
1.
3
4
9
)
(
8.
2
3
1.
3
4
9
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he
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sac
s
0 (
)
15
9.5
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5
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)
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5
l c
i
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d
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ta
tr
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n
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0 (
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3
6
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0 0 0 (
)
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2
3
1.
3
4
9
(
)
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6
l tr
ion
it
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ct
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0 (
14
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3
6
7
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0 0 0 (
8.
2
3
1.
3
4
9
)
(
2
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95
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Ba
lan
3
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1
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8.
5
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2
1
3.
8
0
5.
7
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1
6.
17
0.
2
0
4
(
5
3.
0
3
9
)
7.
0
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2.
8
4
2
9.
8
0
8.
0
3
1
4
9.5
2
2.4
21

For the period ended 30 June2015

Consolidated Statement of Cash Flows

Cash flows of the Group for the period 1/1 – 30/06/2016 and the respective comparative sizes of the previous year are the following:

For the period ended 30 June
THE GROUP
30/6/2016 30/6/2015
Cash flows from operating activities
Profits / (Losses) before taxes 522.059 (240.599)
Adjustments for:
– Depreciation & Amortization 1.835.723 1.786.912
– Net finance cost 603.949 523.418
– Gain on sale of property, plant and equipment (232.857) 0
– Provisions / Accrued expenses (1.105.041) (274.236)
– Other adjustments 24.484 0
1.648.315 1.795.496
Changes in working capital:
Inventories (1.177.105) (762)
Trade and other receivables (790.647) (1.852.394)
Trade and other payables 438.073 32.137
Cash generated from operating activities 118.637 (25.523)
(Taxes paid) / Returns on income taxes
Interest paid
43.322
(383.195)
(8.123)
(460.977)
Net cash from operating activities (221.236) (494.623)
Cash flows from investment activities
Interest received 2.478 182.892
Dividends received 0 0
Proceeds from sale of property, plant, equipment 48.154 0
Acquisition of property, plant and equipment & intangible assets (1.023.233) (524.548)
Net cash from investing activities (972.602) (341.656)
Cash flows from financing activities
Decrease of share capital through capital return in cash 0 (14.404.862)
Payment of share capital increase expenses 0 (159.505)
Proceeds from loans 0 4.092.579
Repayment of borrowings
Payment of finance lease liabilities
(802.392)
(183.279)
(20.009.354)
(102.722)
Dividends paid (1.616) (8.218.926)
Net cash from financing activities (987.287) (38.802.790)
Net decrease in cash and cash equivalents (2.181.125) (39.639.070)
Cash and cash equivalents at 1 January 3.927.869 41.327.464
Effect of movements in exchange rates on cash held (4.365) (3.873)
Cash and cash equivalents at 30 June 1.742.380 1.684.522

Separate statement of Cash Flows

Cash flows of the Company for the period 1/1 – 30/06/2016 and the respective comparative sizes of the previous year are the following:

For the period ended 30 June
THE COMPANY
30/6/2016 30/6/2015
Cash flows from operating activities
Profits / (Losses) before taxes 147.122 (553.764)
Adjustments for :
– Depreciation & Amortization 1.300.927 1.287.711
– Net finance cost 452.085 367.875
– Gain on sale of property, plant and equipment (208.722) 0
– Provisions / Accrued expenses (1.105.041) (274.236)
– Other adjustments 25.358 0
611.727 827.586
Changes in working capital:
Inventories 124.570 51.653
Trade and other receivables (863.471) (1.576.489)
Trade and other payables (405.372) 1.155.238
Cash generated from operating activities (532.546) 457.988
(Taxes paid) / Returns on income taxes 53.178 0
Interest paid (277.465) (332.176)
Net cash from operating activities (756.833) 125.812
Cash flows from investment activities
Interest received 2.440 182.690
Dividends received 0 32.475.000
Proceeds from sale of property, plant, equipment 0 0
Acquisition of property, plant and equipment & intangible assets (714.321) (464.858)
Net cash from investing activities (711.882) 32.192.832
Cash flows from financing activities
Decrease of share capital through capital return in cash 0 (14.404.862)
Payment of share capital increase expenses 0 (159.505)
Proceeds from loans 0 10.650.000
Repayment of borrowings (600.000) (20.000.000)
Payment of finance lease liabilities (141.620) (60.916)
Dividends paid (1.616) (8.218.926)
Net cash from financing activities (743.236) (32.194.209)
Net (decrease) increase in cash and cash equivalents (2.211.951) 124.435
Cash and cash equivalents at 1 January 3.543.341 1.034.088
Effect of movements in exchange rates on cash held 0 0
Cash and cash equivalents at 30 June 1.331.390 1.158.523

Notes to the Financial Statements

1. Reporting Entity

The Group Inform P. Lykos S.Α. (the Group) is leader in the area of printing management, production of secured documents and business process outsourcing, offering services of printing and posting statements, electronic presentation of statements and printing management. The domicile of the parent company Inform P. Lykos S.Α. (the Company) is in Koropi Attica, 5th km. of Varis - Koropiou Avenue. Since 12/03/2014, the financial statements of the Group are included in the consolidated financial statements of AUSTRIACARD AG (former LYKOS AG) with its headquarters in Austria.

The present financial statements were approved by the Board of Directors on 28/9/2016.

2. Basis of accounting

The accompanying separate and consolidated financial statements (hereinafter "financial statements"), have been prepared by the Management based on historic cost principal, as modified following the adjustment of certain assets and liabilities at fair values and the going concern principle and are in accordance with the International Financial Reporting Standards (hereinafter ≪IFRS≫) and the International Accounting Standards (hereinafter ≪IAS≫), as adopted by the European Union (according to the Regulation (EC) No. 1606/ 2002 of the European Parliament and the Council of the European Union at July 19th, 2002) and published by the International Accounting Standards Board (IASB), and also their interpretations, as published by the International Financial Reporting Interpretation Committee (I.F.R.I.C.) of the IASB. The period of application of each IAS/IFRS is set by the regulations published by the competent commission of the European Union.

The accompanying interim condensed financial statements were prepared under the same accounting policies and methods of calculation as those applied for the preparation of the annual financial statements as of 31/12/2015, apart from the changes arising following the adoption of new or revised IAS – IFRS or Interpretations that are effective on or after January 1st 2016 apart from the changes arising following the adoption of new or revised IAS – IFRS or Interpretations that are effective on or after January 1st 26. The aforementioned changes are described in the note 26.

3. Functional and presentation currency

The separate and consolidated financial statements are presented in euro, which is the functional currency of the Company. All amounts have been rounded to the nearest unit euro (without decimals), unless otherwise indicated.

4. Use of judgements and estimates

In preparing these consolidated financial statements, management has made judgments, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses, as also and the notes to the financial statements. They also affect disclosures of contingent assets and liabilities as at the financial statements preparation date as well as the publicized amounts of revenue and expenses.

Judgments, estimates and assumptions are based on the experience from previous years and other factors, included the expectations of future events that are considered reasonable under the particular conditions, while estimates and underlying assumptions are reviewed on an ongoing basis, making the best use of all the available data. Actual results may differ from these estimates.

Significant judgments and estimates used by the Group under the preparation of the presented interim financial statements are the same as the ones used under the preparation of the previous year annual financial statements, adjusted to the conditions, reflecting the current developments taking place in the Greek economy, described in Note 23.

Fair value measurement

As part of the implementation of IFRS, the Group has an obligation or option to revalue assets and liabilities at fair value.

The fair value measurement is based on the market and not to a particular entity. For certain assets and liabilities may be available observable market transactions or market information. For other assets and liabilities may not be available observable market transactions or market information. However, the objective of measuring fair value is the same in both cases to estimate the price at which it would take place a normal transaction to sell the asset or transfer the liability between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

Even when there is no observable market to provide pricing information on the sale of an asset or transfer a liability at the measurement date, the fair value measurement should consider that a transaction occurs on that date, considering the transaction from the perspective of a market participant that holds the asset or owes the liability. This alleged transaction constitutes the basis for valuation of the sale price of the asset or transfer the liability. Especially for liabilities if no observable market to provide pricing information on the transfer of a liability (e.g. when the contractual and other legal restrictions prevent the transfer of such data) may be observable market for such obligation if the other party holds as an asset (e.g. corporate bonds).

The assets and liabilities of the Group measured at fair value are mainly non-financial assets, in particular, real estate items, owned and used by the Group (self-owned and investment property) are monitored at fair value by using measurement techniques and are analytically presented in the relative Notes to the financial statements for the year ended as at December 31, 2015 (14Β and 15Β). The fair values of the aforementioned assets have not undergone significant changes, and, therefore, remain the same as the ones defined as at 31/12/2015.

5. Operating segments

The Group after the reorganization that was implemented at the end of the previous year by selling the segment of production, development and personalization of Cards maintains only one strategic segment, the printing division. Every unit of the division offers same products and services, and requires unique technology and marketing strategies.

The activity of the printing division mainly extents geographically in two countries Greece and Romania. This geographic allocation is from now on the designated factor for the segmentation of printing division.

These operating segments are monitored by the Head of Risk and Strategic decisions of the Group (Group CEO).

Information related to each reportable segment is set out below. Segment "profit before tax" is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments.

30/6/2016 Printing
segment
(Greece)
Printing
segment
(Romania)
Other
segments
Total
Revenue 16.896.932 16.608.286 335.065 33.840.282
Intercompany sales elimination (567.505) (1.319.251) 0 (1.886.756)
Consolidated Revenue 16.329.426 15.289.035 335.065 31.953.526
Cost of sales (14.532.800) (14.785.230) (197.702) (29.515.731)
Intercompany costs elimination 769.348 1.319.251 0 2.088.599
Consolidated cost of sales (13.763.452) (13.465.979) (197.702) (27.427.132)
Gross profit 2.565.975 1.823.056 137.363 4.526.394
Gross margin 15,2% 11,0% 41,0% 13,4%
Other revenues 537.935 287.161 0 825.097
Intercompany revenues elimination (197.100) (4.738) 0 (201.838)
Consolidated other revenues 340.835 282.424 0 623.259
Selling and distribution expenses (1.275.189) (733.821) 0 (2.009.010)
Administrative expenses (801.798) (711.403) (48.683) (1.561.885)
Research and development expenses (179.223) 0 0 (179.223)
Other expenses (61.671) (210.797) (1.060) (273.528)
+ Depreciation 1.338.558 478.470 18.695 1.835.723
EBITDA 1.927.487 927.928 106.314 2.961.730
- Depreciation (1.338.558) (478.470) (18.695) (1.835.723)
EBIT 588.929 449.458 87.620 1.126.007
Financial income 138 15 825 977
Financial expenses (452.187) (149.993) (2.746) (604.926)
Net finance costs (452.050) (149.978) (1.921) (603.949)
Profits / (losses) before taxes 136.879 299.481 85.698 522.058
Income tax expense (114.354) (47.419) (16.104) (177.877)
profit / (losses) after taxes 22.525 252.062 69.595 344.182
30/6/2015 Printing
segment
(Greece)
Printing
segment
(Romania)
Other
segments
Total
Revenue
Intercompany sales elimination
16.535.895
(236.316)
16.396.475
(1.814.892)
237.951
0
33.170.320
(2.051.208)
Consolidated Revenue 16.299.579 14.581.582 237.951 31.119.112
Cost of sales (13.976.031) (14.683.025) (154.717) (28.813.773)
Intercompany costs elimination 366.156 1.814.892 0 2.181.048
Consolidated cost of sales (13.609.875) (12.868.133) (154.717) (26.632.725)
Gross profit 2.689.704 1.713.449 83.234 4.486.387
Gross margin 16,3% 10,5% 35,0% 13,5%
Other revenues 273.761 279.092 0 552.853
Intercompany revenues elimination (125.100) (4.740) 0 (129.840)
Consolidated other revenues 148.661 274.352 0 423.013
Selling and distribution expenses (1.587.930) (795.775) 0 (2.383.704)
Administrative expenses (991.246) (557.944) (34.852) (1.584.042)
Research and development expenses (164.686) 0 0 (164.686)
Other expenses (281.216) (140.675) (40.246) (462.137)
+ Depreciation 1.325.471 438.878 22.562 1.786.912
EBITDA 1.138.757 932.286 30.699 2.101.742
- Depreciation (1.325.471) (438.878) (22.562) (1.786.912)
EBIT (186.714) 493.408 8.137 314.830
Financial income 6.857 190 (0) 7.047
Financial expenses (405.886) (152.083) (4.507) (562.476)
Net finance costs (399.029) (151.893) (4.507) (555.429)
Profits / (losses) before taxes (585.743) 341.515 3.630 (240.599)
Income tax expense 143.188 (57.281) (2.866) 83.041
profit / (losses) after taxes (442.555) 284.234 764 (157.558)

The allocation of assets, liabilities, capital expenditure and depreciation to operating segments is as follows:

30/6/2016 Printing
segment
(Greece)
Printing
segment
(Romania)
Other
segments
Total
Assets 50.372.944 35.528.954 1.924.071 87.825.968
Liabilities 24.509.230 9.988.269 1.562.098 36.059.597
Capital expenditures (1/1-30/6/2016) 3.600.422 310.066 0 3.910.487
Depreciation (1/1-30/6/2016) 1.300.927 478.470 56.326 1.835.723
31/12/2015 Printing
segment
(Greece)
Printing
segment
(Romania)
Other
segments
Total
Assets 51.300.222 33.581.718 1.711.288 86.593.228
Liabilities 22.176.761 9.748.924 1.534.779 33.460.464
Capital expenditures (1/1-30/6/2016) 366.995 60.834 1.207 429.036
Depreciation (1/1-30/6/2015) 1.287.711 438.878 60.322 1.786.912

6. Seasonality or cyclicality of interim business operations

The Group sales do not record significant seasonality and, therefore, are mainly equally allocated within the two semesters of the year. Furthermore, there is no indication of changes to assets, liabilities, equity, profit or cash flows caused by the unusual events regarding nature or size.

7. Revenues

A. Revenues by category

GROUP COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Sales of goods 13.978.932 13.753.667 7.136.438 7.646.585
Rendering of services 9.509.489 9.684.193 1.770.803 1.912.063
Sales of merchandise 8.465.105 7.681.252 7.959.692 6.947.247
Total 31.953.526 31.119.112 16.866.932 16.505.895

B. Revenues by geographical region

GROUP COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
West Europe 766.163 1.039.460 757.013 932.539
Central & Eastern Europe 30.962.447 29.828.810 15.885.003 15.322.513
Asia & Africa 224.916 250.842 224.916 250.842
Total 31.953.526 31.119.112 16.866.932 16.505.895

8. Other income – Other expenses

A. Other income

GROUP COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Gain on sale of property, plant and equipment 219.493 0 208.722 0
Rental income from property and machinery leases 175.184 168.966 174.335 96.457
Capitalisation of development loyalty expenses 103.671 102.799 103.671 102.799
Other income 124.911 151.247 13.706 37.005
Total 623.259 423.013 500.435 236.261

B. Other expenses

GROUP COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Exchange differences - Losses 30.195 4.425 0 0
Staff leaving indemnities 0 228.189 0 228.189
Re-invoiced costs 94.972 88.533 0 0
Other expenses 148.360 140.990 52.808 53.027
Total 273.527 462.137 52.808 281.216

9. Earnings/(losses) per share

A. Basic earnings or basic losses per share

All shares are ordinary (see note 15). The calculation of earnings/(losses) per share is based on the following earnings/(losses) per share attributable to the ordinary shareholders and the weighted average number of ordinary outstanding shares.

GROUP
2016 2015
Profits / (losses) for the year, attributable to
the owners of the Company
298.894 (165.012)

B. Weighted-average number of ordinary shares

2016 2015
Issued ordinary shares at 1 January 20.578.374 20.578.374
Effects in the year - -
Weighted-average of ordinary shares at 30
June
20.578.374 20.578.374

10. Income taxes

GROUP COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Current tax expense
Current year income tax (63.523) (60.147) 0 0
(63.523) (60.147) 0 0
Deferred taxation
Origination and reversal of temporary
differences
(114.354) 143.188 (89.017) 165.918
(114.354) 143.188 (89.017) 165.918
Total (177.877) 83.041 (89.017) 165.918

11. Foreign currency translation differences arising from conversion of foreign operations financial statements

Foreign currency translation differences amounting to € 17.883, recognized in OCI for the period 1/1 – 30/06/2016 (1/1 – 30/6/2015: € 44.784) mainly pertain to foreign currency translation differences arising from conversion of the financial statements of the Group subsidiaries in Romania («Inform Lykos S.A.» and «Compaper Converting S.A.») from functional currency to the financial statements presentation currency (Euro).

12. Property, plant and equipment

A. Changes within the period

THE GROUP
Land and
buildings
Plant and
equipment
Fixtures and
fittings
Under
construction
Total
Cost
Balance at 1 January 2015 52.890.243 43.397.126 6.227.737 32.215 102.547.320
Additions 48.282 638.804 183.884 45.779 916.749
Disposals 0 (185.703) (210.457) 0 (396.160)
Effect of movements in exchange rates (249.668) (116.010) (24.526) (9) (390.213)
Balance at 31 December 2015 52.688.857 43.734.217 6.176.638 77.985 102.677.696
Cost
Balance at 1 January 2016 52.688.857 43.734.217 6.176.638 77.985 102.677.696
Additions 67.242 3.400.659 74.180 1.154 3.543.235
Disposals 0 (149.447) 0 (1.154) (150.601)
Transfers 0 11.218 0 (11.217) 0
Effect of movements in exchange rates 15.447 7.369 154 36 23.007
Balance at 30 June 2016 52.771.546 47.004.016 6.250.972 66.803 106.093.337
Accumulated depreciation and
impairment losses
Balance at 1 January 2015 17.142.684 20.197.396 5.331.124 0 42.671.204
Depreciation 512.153 2.441.289 207.769 0 3.161.211
Disposals 0 (148.991) (210.313) 0 (359.304)
Effect of movements in exchange rates (81.106) (240.832) 137.198 0 (184.740)
Balance at 31 December 2015 17.573.731 22.248.862 5.465.778 0 45.288.371
Balance at 1 January 2016 17.573.731 22.248.862 5.465.778 0 45.288.371
Depreciation 252.303 1.246.699 97.454 0 1.596.455
Disposals 0 (125.353) 0 0 (125.353)
Effect of movements in exchange rates 526 2.072 74 0 2.672
Balance at 30 June 2016 17.826.560 23.372.280 5.563.306 0 46.762.145
Carrying amounts
Balance at 31 December 2015 35.115.126 21.485.355 710.859 77.985 57.389.325
Balance at 30 June 2016 34.944.986 23.631.736 687.667 66.803 59.331.192

COMPANY

Land and
buildings
Plant and
equipment
Fixtures and
fittings
Under
construction
Total
Costs
Balance at 1 January 2015 32.683.951 30.317.770 5.034.978 31.300 68.067.999
Additions 37.186 524.114 173.087 0 734.387
Disposals 0 (36.314) 0 0 (36.314)
Balance at 31 December 2015 32.721.137 30.805.570 5.208.065 31.300 68.766.072
Balance at 1 January 2016 32.721.137 30.805.570 5.208.065 31.300 68.766.072
Additions 65.081 3.110.190 70.431 0 3.245.702
Disposals 0 (2.243.504) 0 0 (2.243.504)
Balance at 30 June 2016 32.786.217 31.672.256 5.278.496 31.300 69.768.269
Accumulated depreciation and impairment losses
Balance at 1 January 2015 15.907.993 14.026.758 4.429.731 0 34.364.482
Depreciation 329.485 1.778.456 186.672 0 2.294.613
Disposals 0 (1.354) 0 0 (1.354)
Balance at 31 December 2015 16.237.478 15.803.860 4.616.403 0 36.657.741
Balance at 1 January 2016 16.237.478 15.803.861 4.616.402 0 36.657.741
Depreciation 164.852 896.631 87.636 0 1.149.119
Disposals 0 (1.282.227) 0 0 (1.282.227)
Balance at 30 June 2016 16.402.330 15.418.265 4.704.039 0 36.524.633
Carrying amounts
Balance at 31 December 2015 16.483.659 15.001.710 591.662 31.300 32.108.331
Balance at 30 June 2016 16.383.887 16.253.991 574.458 31.300 33.243.637

B. Leased machinery

The Group leases machinery in Greece and Romania amounted at 30 June 2016 to € 4.253.851 (2015: € 1.682.107). The value of the leased equipment is ensuring the relevant leasing obligations.

C. Security

There are encumbrances on the Group's fixed assets with value of € 5,2 millions in order to cover loan obligations. There are no encumbrances on the parent company's fixed assets.

27

13. Intangible assets and goodwill

The changes to the Group intangible assets values for the period as follows:

THE GROUP
Goodwill Software
licenses
Development
costs
Total
Costs
Balance at 1 January 2015 6.103.881 10.656.067 2.024.530 18.784.478
Additions 0 269.631 0 269.631
Acquisitions – internally developed 0 0 208.208 208.208
Disposals 0 (44.186) 0 (44.186)
Effect of movements in exchange rates 0 (165.433) 0 (165.433)
Balance at 31 December 2015 6.103.881 10.716.079 2.232.738 19.052.698
Balance at 1 January 2016 6.103.881 10.716.079 2.232.738 19.052.698
Additions 0 263.581 0 263.581
Acquisitions – internally developed 0 0 103.671 103.671
Effect of movements in exchange rates 0 1.206 0 1.206
Balance at 30 June 2016 6.103.881 10.980.866 2.336.409 19.421.156
Accumulated amortisation and impairment
losses
Balance at 1January 2015 4.017.437 9.646.113 1.690.055 15.353.605
Amortisation 0 353.459 86.973 440.432
Disposals 0 (44.186) 0 (44.186)
Effect of movements in exchange rates 0 (166.087) 0 (166.087)
Balance at 31 December 2015 4.017.437 9.789.299 1.777.028 15.583.764
Balance at 1 January 2016 4.017.437 9.789.299 1.777.028 15.583.764
Amortisation 0 176.550 59.415 235.965
Effect of movements in exchange rates 0 631 0 631
Balance at 30 June 2016 4.017.437 9.966.480 1.836.443 15.820.360
Carrying amounts
Balance at 31 December 2015 2.086.444 926.780 455.710 3.468.934
Balance at 30 June 2016 2.086.444 1.014.386 499.966 3.600.796
COMPANY
Software
licenses
Development
costs
Total
Costs
Balance at 1 January 2015 6.717.247 2.024.530 8.741.777
Additions 202.981 0 202.981
Acquisitions – internally developed 0 208.208 208.208
Balance at 31 December 2015 6.920.228 2.232.738 9.152.966
Balance at 1 January 2016 6.920.228 2.232.738 9.152.966
Additions 251.049 251.049
Acquisitions – internally developed 0 103.671 103.671
Balance at 30 June 2016 7.171.277 2.336.409 9.507.686
Accumulated amortisation and impairment losses
Balance at 1 January 2015 5.910.678 1.690.056 7.600.734
Amortisation 208.457 86.972 295.429
Balance at 31 December 2015 6.119.135 1.777.028 7.896.163
Balance 1 January 2016 6.119.135 1.777.029 7.896.163
Amortisation 92.393 59.415 151.808
Balance at 30 June 2016 6.211.527 1.836.444 8.047.971
Carrying amounts
Balance at 31 December 2015 801.093 455.710 1.256.803
Balance at 30 June 2016 959.750 499.965 1.459.715

14. Inventories

GROUP COMPANY
30/6/2015 31/12/2015 30/6/2015 31/12/2015
Raw materials and consumables 4.335.025 3.053.071 2.004.196 1.864.253
Work in progress 253.940 392.486 143.303 250.556
Finished and semi-finished goods 1.032.286 1.037.421 541.015 617.963
Merchandise 1.318.906 1.004.615 1.153.629 933.947
Prepayments for inventory purchases 53.104 328.563 15.274 315.269
Total 6.993.261 5.816.156 3.857.417 3.981.987

15. Share capital and share premium

The Company's share is freely traded on the Athens Stock Exchange and participates in the business support services industry and in the Mid & Small Cap Price index.

The share premium of the Group and the Company comes from previous issuing of shares for cash at a value higher than their nominal value.

The share capital concerns exclusively ordinary shares, fully settled. In the Company's shares are not included shares with revoke right or preference shares. Moreover, the Company has not issued any bonds or other securities convertible into shares.

Within the period 1/1 – 30/6/2016, there was no change in the Company's share capital.

Dividends

The Regular General Meeting for year 2016, held on 24/6/2016, approved the relative proposal of the Company Board of Directors on distribution of dividend of € 0,07 (net of taxes € 0,063) per share, i.e. a total amount of dividend of € 1.440.486,18. The aforementioned amount was fully paid in July of the current year 2016.

16. Loan liabilities

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Non-current liabilities
Secured bank loans 1.032.222 1.252.442 0 0
Finance lease liabilities 3.815.227 1.323.754 3.707.258 1.179.258
4.847.449 2.576.196 3.707.258 1.179.258
Current liabilities
Secured bank loans 2.013.447 1.993.124 0 0
Unsecured bank loans 8.300.000 9.816.906 8.300.000 8.900.000
Finance lease liabilities 438.624 358.353 398.980 316.525
10.752.071 12.168.383 8.698.980 9.216.525

The terms and conditions of Group's and Company's loans are as follows:

Lender/Bank Currency Nominal
interest rate
Year of
maturity
Pledge type Carrying
amount
Secured bank loans Pledge on
Land and
Building
(Romania)
3.045.669
RON ROBOR 3
months + 3%
2019 1.474.600
2016 1.571.069
Unsecured bank loans EUR Euribor 1m+
5,4%
2016 8.300.000
Finance lease liabilities pledge on
equipment
4.253.851
EUR 1,3% 2023 2.765.691
EUR 6,0% 2021 1.108.537
EUR 9,0% 2017 232.010
EUR EURIBOR
3M+4,65%
2019 147.613
Total 15.599.520

17. Provisions

The comparable amount of previous year € 944.439 related solely to provisions for reorganization expenses of the Company, which was completed during the period presented.

18. Group composition

Set out below a list of all subsidiaries country, participation percentage, consolidation method and participation relation of incorporated subsidiaries the Group as at 30/06/2016:

Company Country Participation
percentage
Consolidation
method
Participation
relation
Inform P. Lykos S.A. Greece Parent - Parent
Lykos Paperless Solutions S.A. Greece 99,91% Total Direct
Terrane L.T.D. Cyprus 100,00% Total Direct
Inform Lykos (Romania) L.T.D. Cyprus 98,19% Total Indirect
Inform Lykos S.A. Romania 98,19% Total Indirect
Compaper Converting S.A. Romania 95,68% Total Indirect
Sagime Gmbh Austria 100,00% Total Direct
Albanian Digital Printing Solutions
Sh.p.k.
Albania 51,00% Total Direct

Information mentioned above has not change since 31/12/2015 and 30/6/2015.

19. Non-controlling interest (NCI)

Group does not include subsidiary with material non-controlling interest.

20. Commitments

The Group has not entered into important commitments apart from those mentioned in subsections (loans, finance lease contracts etc.).

21. Contingencies and guarantees

There are no judicial or legal claims that are expected to affect significantly the financial position of the company as at 30/06/2016.

In January 2016, the Romanian Competition Council issued a press release which announced the imposition of a fine for unfair competition of amount of € 854 thousand to Inform Lykos S.A. Romania (ILR), a subsidiary of the Group. The Competition Council considers that the ILR shaped its trade policy in cooperation with a third company.

The Group will exercise all legal rights to prove that the practice followed by the Group always comply with competition law and that the conclusion of the Competition Council is incorrect and unfounded. For the above reason the Group's management considers the above fact contingent liability and has not recorded any provision as of 31/12/2015.

The Company has not been tax audited by tax authorities for the years from 2009 and 2010. Contingently arising taxes are not expected to have a significant effect on the financial statements.

As starting from year 2011, the Greek companies of the Group are subject to tax audit conducted by Chartered Accountants in compliance with the provisions of Article 82, par. 5, Law 2238/1994 and of Article 65ΑLaw 4174/2013. This audit for the years 2011 - 2015 has been completed and the relative unqualified conclusions tax compliance certificates have been issued.

Regarding subsidiaries and related companies, they have not been tax inspected by tax authorities for the years, presented below, and therefore, their tax liabilities in respect of these years have not been finalized:

Company Country FYs
Inform P. Lykos S.A. Greece 2009-2010
Lykos Paperless Solutions S.A. Greece 2010
Terrane Ltd Cyprus 2004-2015
Inform Lykos (Romania)L.T.D Cyprus 2003-2015
Inform Lykos S.A Romania 2005-2015
Compaper Converting S.A Romania 2001-2015
Sagime GmbH Austria 2010-2015
ADPS Sh.p.k. Albania 2011-2015

Apart from the aforementioned, there are no other cases of contingent liabilities or contingent receivables, which could significantly affect the Group or the Company financial position or operation.

Encumbrances

There are encumbrances on the Group's fixed assets with value of € 5,2 million in order to cover loan obligations. There are no encumbrances on the parent company's fixed assets.

22. Related parties

The operational and investment activity of Group creates certain results, assets or liabilities that concern except others related companies or individual persons. These transactions are realised in commercial base and according to the laws of market. The Group did not participate in any transaction of uncommon nature or content which is essential for the Group, or the companies and the individuals connected closely with this, and does not aim to participate in such kind of transactions in the future.

The table below presents analytically all the intercompany transactions during the periods of 2016 and 2015 as well as the balances arising from these transactions as at 30/06/2015 and 31/12/2015 respectively:

Sales of goods or services

THE GROUP THE COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Subsidiaries 0 0 567.505 236.316
Other related parties 239.675 132.326 158.331 118.883
Total 239.675 132.326 725.836 355.199

Purchases of goods or services

THE GROUP THE COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Subsidiaries 0 0 1.319.251 1.814.892
Other related parties 2.406.083 2.910.806 2.326.701 2.717.452
Total 2.406.083 2.910.806 3.645.952 4.532.344

Granted loans

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Subsidiaries 0 0 30.000 30.000
Total 0 0 30.000 30.000

Balances of receivables from sales of goods or services

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Subsidiaries 0 0 1.793.384 614.974
Other related parties 198.231 144.073 54.356 68.870
Total 198.231 144.073 1.847.740 683.844

Balances of liabilities from purchases of goods or services

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Subsidiaries 0 561.136 162.098
Other related parties 2.918.610 2.959.297 1.730.361 1.772.683
Total 2.918.610 2.959.297 2.291.497 1.934.781

Income from dividends

THE GROUP THE COMPANY
30/6/2016 30/6/2015 30/6/2016 30/6/2015
Subsidiaries 0 0 0 0
Total 0 0 0 0

Remuneration of key executives

THE GROUP THE COMPANY
30/6/2016 30/6/2015
Key executives 183.450 161.100 183.450 161.100
Total 183.450 161.100 183.450 161.100

Balances of receivables from key executives

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Key executives 0 0 0 0
Total 0
0
0 0

Balances of liabilities to key executives

THE GROUP THE COMPANY
30/6/2016 31/12/2015 30/6/2016 31/12/2015
Key executives 0 0 0 0
Total 0
0
0 0

23. Significant events and information

These latest developments which resulted in imposing restrictions on the movement of capital (capital controls), as well as the continuation of negotiations to finalize a medium-term program to support the Greek economy, are the factors of increased uncertainty regarding the general medium to long term economic operating conditions prevailing in the domestic market, potentially having a negative impact on the growth of the Greek economy and, by extension, the country's GDP in 2016 and 2017. Additionally, the application of new tax measures is likely to impede the ability of some companies to timely respond and settle their obligations at all.

The macroeconomic environment, created by these events, generates the risks, the most significant of which relate to liquidity of the financial system and the entities, collectability of receivables, impairment of their assets, recognition of revenues, settlement of the existing debt obligations and / or meeting the terms and maintaining financial indicators, recoverability of deferred tax benefits, valuation of financial instruments, adequacy of provisions and the possibility of continuing business operations.

The aforementioned and other potentially arising adverse developments in Greece may negatively - to some extent – affect liquidity, earnings and financial position of the Greek operations of the Group. However, despite the aforementioned economic conditions and even given further adverse developments, the Group's Management expects to fully maintain the sound operations of all the Group companies, domestic and foreign. These estimates are mainly based on the following conditions / events:

  • Long-term export orientation of the Group regarding all sectors of activity (sales, production, etc.), substantially such exposure. Refer to par. 5 in which are listed the Group sales in foreign countries (outside Greece).
  • Strong capital structure and significant positive financial performance of AUSTRIACARD AG Group (former Lykos AG) headquartered in Vienna, Austria, the parent company of the Group.

24. Post reporting period date events

There was no event that occurred subsequent to the 30/06/2016 which may have a significant impact on the financial position and operations of the Group.

25. Reclassification of comparative items

The comparative financial statements were readjusted in order to reflect the effect of the change in the criteria of classification of various items of the Income Statement. In order to apply the principle of comparability of the presented years, the Group has also applied these criteria to the presented items of the Income Statement of the comparable period 1/1 – 30/6/2015. This resulted in the reclassification of several figures of the above statement in relation to those published in the annual financial statements of previous year 2015.

It should be noted that by the above reclassifications do not arise any impact on turnover, profits before and after taxes, operating result, non-controlling interests and total equity of the Company or the Group.

The effect of reclassifications on the figures of Income Statement of comparable period 1/1 – 30/6/2015 is as follows:

THE GROUP THE COMPANY
Restated figures
1/1 -
30/6/2015
Published
figures
1/1 -
30/6/2015
Impact of
reclassification
Restated figures
1/1 -
30/6/2015
Published
figures
1/1 -
30/6/2015
Impact of
reclassification
Cost of sales (26.632.725) (26.148.412) 484.313 (13.907.166) (13.642.394) (264.772)
Gross Profit 4.486.387 (26.148.412) (30.634.799) 2.598.729 2.863.499 (264.770)
Other income 423.013 309.731 (113.282) 236.261 133.942 102.319
Selling and distribution expenses (2.383.704) (2.384.622) (918) (1.587.930) (1.563.006) (24.924)
Administrative expenses (1.584.042) (1.647.873) (63.831) (987.046) (987.199) 153
Research and development
expenses
(164.686) (63.107) 101.579 (164.686) (61.887) (102.799)
Other expenses (462.137) (870.505) (408.368) (281.216) (571.238) 290.022
EBITDA 314.830 314.324 (506) 1.101.822 1.101.822 0
Financial expenses (562.476) (561.970) 506
Net finance costs (555.429) (554.923) 506
Profits / (losses) before taxes (240.599) (240.599) 0

26. Changes in accounting policies

The following amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), adopted by the European Union, and their application is mandatory from or after 01/01/2016.

• Amendments to IFRS 11: "Accounting for Acquisitions of Interests in Joint Operations" (effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB issued amendments to IFRS 11. The amendments add new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business and specify the appropriate accounting treatment for such acquisitions. The amendments do not affect the consolidated/ separate Financial Statements.

• Amendments to IAS 16 and IAS 38: "Clarification of Acceptable Methods of Depreciation and Amortisation" (effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB published amendments to IAS 16 and IAS 38. IAS 16 and IAS 38 both establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The amendments do not affect the consolidated/ separate Financial Statements.

• Amendments to IAS 16 and IAS 41: "Agriculture: Bearer Plants" (effective for annual periods starting on or after 01/01/2016)

In June 2014, the IASB published amendments that change the financial reporting for bearer plants. The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16. Consequently, the amendments include bearer plants within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41. The amendments do not affect the consolidated Financial Statements.

• Amendments to IAS 27: "Equity Method in Separate Financial Statements" (effective for annual periods starting on or after 01/01/2016)

In August 2014, the IASB published narrow scope amendments to IAS 27. Under the amendments, entities are permitted to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate Financial Statements – an option that was not effective prior to the issuance of the current amendments. The amendments do not affect the consolidated/ separate Financial Statements.

• Annual Improvements to IFRSs – 2012-2014 Cycle (effective for annual periods starting on or after 01/01/2016)

In September 2014, the IASB issued Annual Improvements to IFRSs - 2012-2014 Cycle, a collection of amendments to IFRSs, in response to four issues addressed during the 2012-2014 cycle. The amendments are effective for annual periods beginning on or after 1 January 2016, although entities are permitted to apply them earlier. The issues included in this cycle are the following: IFRS 5: Changes in methods of

disposal, IFRS 7: Servicing Contracts and Applicability of the amendments to IFRS 7 to condensed interim financial statements, IAS 19: Discount rate: regional market issue, and IAS 34: Disclosure of information "elsewhere in the interim financial report". The amendments do not affect the consolidated/ separate Financial Statements.

• Amendments to IAS 1: "Disclosure Initiative" (effective for annual periods starting on or after 01/01/2016)

In December 2014, the IASB issued amendments to IAS 1. The aforementioned amendments address settling the issues pertaining to the effective presentation and disclosure requirements as well as the potential of entities to exercise judgment under the preparation of financial statements. The amendments do not affect the consolidated Financial Statements.

The following new Standards and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union.

• IFRS 14 "Regulatory Deferral Accounts" (effective for annual periods starting on or after 01/01/2016)

In January 2014, the IASB issued a new Standard, IFRS 14. The aim of this interim Standard is to enhance the comparability of financial reporting by entities that are engaged in rate-regulated activities. Many countries have industry sectors that are subject to rate regulation, whereby governments regulate the supply and pricing of particular types of activity by private entities. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union, until the issuance of the final Standard.

• IFRS 15 "Revenue from Contracts with Customers" (effective for annual periods starting on or after 01/01/2018)

In May 2014, the IASB issued a new Standard, IFRS 15. The Standard fully converges with the requirements for the recognition of revenue in both IFRS and US GAAP. The key principles on which the Standard is based are consistent with much of current practice. The new Standard is expected to improve financial reporting by providing a more robust framework for addressing issues as they arise, increasing comparability across industries and capital markets, providing enhanced disclosures and clarifying accounting for contract costs. The new Standard will supersede IAS 11 "Construction Contracts", IAS 18 "Revenue" and several revenue related Interpretations. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• IFRS 9 "Financial Instruments" (effective for annual periods starting on or after 01/01/2018)

In July 2014, the IASB issued the final version of IFRS 9. The package of improvements introduced by the final version of the Standard, includes a logical model for classification and measurement, a single, forward-looking "expected loss" impairment model and a substantiallyreformed approach to hedge accounting. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Amendments to IFRS 10 and IAS 28: "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture" (the IASB postponed the effective date of this amendment indefinitely)

In September 2014, the IASB published narrow scope amendments to IFRS 10 and IAS 28. The objective of the aforementioned amendments is to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. In December 2015, the IASB postponed the effective date of this amendments indefinitely pending the outcome of its research project on the equity method of accounting. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Amendments to IFRS 10, IFRS 12 and IAS 28: "Investment Entities: Applying the Consolidated Exception" (effective for annual periods starting on or after 01/01/2016)

In December 2014, the IASB published narrow scope amendments to IFRS 10, IFRS 11 and IAS 28. The aforementioned amendments introduce explanation regarding accounting requirements for investment entities, while providing exemptions in particular cases, which decrease the costs related to the implementation of the Standards. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• IFRS 16 "Leases" (effective for annual periods starting on or after 01/01/2019)

In January 2016, the IASB issued a new Standard, IFRS 16. The objective of the project was to develop a new Leases Standard that sets out the principles that both parties to a contract, i.e. the customer ('lessee') and the supplier ('lessor'), apply to provide relevant information about leases in a manner that faithfully represents those transactions. To meet this objective, a lessee is required to recognise assets and liabilities arising from a lease. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Amendments to IAS 12: " Recognition of Deferred Tax Assets for Unrealized Losses" (effective for annual periods starting on or after 01/01/2017)

In January 2016, the IASB published narrow scope amendments to IAS 12. The objective of the amendments is to clarify the accounting for deferred tax assets for unrealized losses on debt instruments measured at fair value. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Amendments to IAS 7: "Disclosure Initiative" (effective for annual periods starting on or after 01/01/2017)

In January 2016, the IASB published narrow scope amendments to IAS 7. The objective of the amendments is to enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments will require entities to provide disclosures that enable investors to evaluate changes in liabilities arising from financing activities, including changes arising from cash flows and non-cash changes. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Clarification to IFRS 15 "Revenue from Contracts with Customers" (effective for annual periods starting on or after 01/01/2018)

In April 2016, the IASB published clarifications to IFRS 15. The amendments to IFRS 15 do not change the underlying principles of the Standard, but clarify how those principles should be applied. The amendments clarify how to identify a performance obligation in a contract, how to determine whether a company is a principal or an agent and how to determine whether the revenue from granting a license should be recognized at a point in time or over time. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

• Amendment to IFRS 2: "Classification and Measurement of Share-based Payment Transactions" (effective for annual periods starting on or after 01/01/2018)

In June 2016, the IASB published narrow scope amendment to IFRS 2. The objective of this amendment is to clarify how to account for certain types of share-based payment transactions. More specifically, the amendments provide requirements on the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, for share-based payment transactions with a net settlement feature for withholding tax obligation, as well as, a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

Ε) FIGURES AND INFORMATION FOR THE PERIOD 1/1 - 30/06/2016

INFORM P. LYKOS S.A.
5th km VARIS-KOROPIOU AVE, KOROPI GENERAL ELECTRONIC COMMERCIAL REGISTRY No. 359201000
SUMMARY FINANCIAL STATEMENTS AND INFORMATION OF THE PERIOD FROM JANUARY 1, 2016 TO JUNE 30, 2016
(Published according to the decision no. 4/507/28.4.2009 of the Board of Directors of the Stock Market Commitee)
The following figures and information which arise from the financial statements are intended to provide a general briefing about the financial position and results of INFORM P. LYKOS S.A. Group. Therefore, the reader is recommended before proceeding to any kind of investment choice or other transaction
with the company, to refer to the company' s web address where the periodical financial statements and the auditor' s report whenever required, are presented.
Web address: www.lykos.gr
Date of the Board of Directors approval of the six months period financial statements: 28th September, 2016
STATEMENT OF PROFIT OR LOSS (consolidated and non-consolidated)
Statutory Auditor: Garbis Nikos
Audit firm: Grant Thornton S.A.
Amounts in Euro
THE GROUP
THE COMPANY
Type of Auditor' s Report: Unqualified opinion 1/1-
30/6/2016
1/1-
30/6/2015
1/1-
30/6/2016
1/1-
30/6/2015
STATEMENT OF FINANCIAL POSITION (consolidated and non-consolidated) Amounts in Euro Revenue
Gross profit / (loss)
31.953.526
4.526.394
31.119.112
4.486.387
16.866.932
2.445.629
16.505.895
2.598.729
30/06/2016 THE GROUP
31/12/2015
THE COMPANY
30/06/2016
31/12/2015 Operating profit / (loss) 1.126.007 314.830 599.207 (185.889)
ASSETS
Property, plant and equipment
59.331.192 57.389.325 33.243.636 32.108.331 Profit / (loss) before tax
Profit / (loss) net of tax
522.059
344.182
(240.599)
(157.558)
147.121
58.104
(553.764)
(387.846)
Investment property
Intangible assets and goodwill
307.821
3.600.796
310.847
3.468.934
0
1.459.715
0
1.256.803
Attributable to:
-Owners of the Company
298.894 (165.012) 58.104 (387.846)
Other non current assets
Inventories
58.998
6.993.261
113.974
5.816.156
22.164.759
3.857.417
22.200.360
3.981.987
-Non-controlling interests 45.288 7.454 - -
Trade receivables 12.574.874 12.568.147 5.993.689 5.315.916 Basic earnings / (losses) net of taxes per share (euro) 0,0145 (0,0080) 0,0028 (0,0188)
Other current assets
TOTAL ASSETS
4.959.027
87.825.969
6.925.846
86.593.229
4.143.456
70.862.672
5.245.398
70.108.794
Earnings / (losses) before taxes, financing, investing results
EQUITY AND LIABILITIES and total depreciation / amortisation 2.961.730 2.101.742 1.900.134 1.101.822
Share capital
Share premium,reserves and retained earnings
12.758.592
38.366.674
12.758.592
39.778.927
12.758.592
33.384.873
12.758.592
35.055.183
STATEMENT OF OTHER COMPREHENSIVE INCOME (consolidated and non-consolidated)
Total equity attributable to owners of the Company (a)
Non-controlling interests (b)
51.125.266
641.107
52.537.519
595.245
46.143.465
0
47.813.775
0
Amounts in Euro
Total equity (c)=(a)+(b)
Non-current loans and borrowings
51.766.372
4.847.449
53.132.765
2.576.196
46.143.465
3.707.258
47.813.775
1.179.258
THE GROUP
1/1-
1/1- THE COMPANY
1/1-
1/1-
Provisions / Other non-current liabilities
Current loans and borrowings
2.495.995
10.752.071
2.542.243
12.168.383
2.143.084
8.698.980
2.214.669
9.216.525
Profit / (losses) net of tax (a) 30/6/2016
344.182
30/6/2015
(157.558)
30/6/2016
58.104
30/6/2015
(387.846)
Other current liabilities
Total liabilities (d)
17.964.082
36.059.597
16.173.643
33.460.464
10.169.885
24.719.207
9.684.569
22.295.020
Other comprehensive income net of tax (b)
Total compehensive income net of tax (a) + (b)
17.842
362.024
44.784
(112.774)
0
58.104
0
(387.846)
TOTAL EQUITY AND LIABILITIES (c) + (d) 87.825.969 86.593.229 70.862.672 70.108.794 - Owners of the Company
- Non-controlling interests
316.163
45.861
(120.991)
8.217
58.104
0
(387.846)
0
1. ADDITIONAL DATA AND INFORMATION STATEMENT OF CHANGES IN EQUITY (consolidated and non-consolidated)
The name, the country of the headquarters of every company included in the consolidated financial statements, the tax unaudited years, as well as
the participating interest, direct or indirect of the parent company and the incorporation method applied regarding every company, are as follows:
Amounts in Euro
Company Country
Participation
Percentage %
Μέθοδος
Ενοποίησης
Consolidation
Method
Tax
Unaudited
THE GROUP
30/6/2016
30/6/2015 THE COMPANY
30/6/2016
30/6/2015
Inform P.Lykos S.A. Parent
Greece
- Parent Years
2009-2010
Total equity at the beginning of the period (01.01.2016 and 01.01.2015
respectively)
53.132.765 78.454.656 47.813.775 72.705.984
Lykos Paperless Solutions A.E.
Terrane L.T.D.
Greece
99,91%
100,00%
Cyprus
Total
Total
Direct
Direct
2010
2004-2015
Total comprehensive income after taxes
Total transactions with the owners of the company
362.024
(1.728.416)
(112.774)
(22.795.716)
58.104
(1.728.414)
(387.846)
(22.795.716)
Inform Lykos (Romania) L.T.D.
Inform Lykos S.A.
98,19%
Cyprus
98,19%
Romania
Total
Total
Indirect
Indirect
2003-2015
2005-2015
Total equity at the end of the period (30.06.2016 and 30.06.2015
respectively)
51.766.372 55.546.166 46.143.465 49.522.422
Compaper Converting S.A.
Sagime GmbH
Albanian Digital Printing Solutions Sh.p.k.
Romania
95,68%
Austria
100,00%
51,00%
Albania
Total
Total
Total
Indirect
Direct
Direct
2001-2015
2010-2015
2011-2015
STATEMENT OF CASH FLOWS (consolidated and non-consolidated)
2.
The item "Other comprehensive income after taxes" for the period 1/1 - 30/6/2016 that is included in the "Statement of comprehensive income" of
the Group amounting to € 17.842 concerns: (a) for the amount of € 17.883 exchange differencies from the conversion of the financial statements of
business activities abroad (after taxes), and (b) for the amount of € (41) effect from the revaluation of property, plant and equipment. The
Amounts in Euro
THE GROUP
THE COMPANY
corresponding amount for the period 1/1 - 30/6/2015 that is included in the "Statement of comprehensive income" of the Group amounting to €
44.784 concerns at all exchange differencies from the conversion of the financial statements of business activities abroad (after taxes).
Indirect Method 1/1-
30/6/2016
1/1-
30/6/2015
1/1-
30/6/2016
1/1-
30/6/2015
3. There was no case of change in the duration or end of the fiscal year or the consolidation method of the companies of the Group.
4.
The financial statements of the Group since 12/03/2014 are included into the consolidated financial statements of AUSTRIACARD AG (former: LYKOS
Cash flows from operating activities
Profit / (loss) before taxes
522.059 (240.599) 147.121 (553.764)
AG) domiciled in Austria.
5.
There are encumbrances on the Group' s property, plant and equipment with value of € 5,2 million in order to cover loan obligations. There are no
Plus / less adjustments for :
Depreciation / Amortisation
1.835.723 1.786.912 1.300.927 1.287.711
encumbrances on the parent company' s property, plant and equipment.
6.
There are no pending judicial cases or other disputes under arbitration, which might affect materially the financial position or operation of the
Net finance costs
Gain on sale of property, plant, equipment and intangible assets
603.949
(232.857)
523.418
0
452.085
(208.722)
367.875
0
company or the whole Group.
The cumulative provision for the tax unaudited years for the parent company amounts to € 15.000. There was no any recorded significant provision,
7.
Provisions / Accrued expenses
Other adjustments
(1.105.041)
24.484
(274.236)
0
(1.105.041)
25.358
(274.236)
0
within the meaning of paragraphs 10, 11 and 14 of IAS 37.
8.
The personnel number of the Group and the Company is as follows:
Plus / less adjustments for changes in accounts related
to working capital or operating activities:
30/6/16 The Group
30/6/15
30/6/16 The Company
30/6/15
Decrease / (Increase) of inventories
Decrease / (Increase) of trade and other receivables
(1.177.105)
(790.647)
(762)
(1.852.394)
124.570
(863.471)
51.653
(1.576.489)
Number of personnel
9.
Intercompany transactions between the Company, the Group and their associates during the period 1/1/2016 - 30/6/2016, as defined in IAS 24, are
409 445 167 196 Decrease / (Increase) of trade and other payables (except loans)
Less:
Debit interests and related finance costs paid
438.073
(383.195)
32.137
(460.977)
(405.372)
(277.465)
1.155.238
(332.176)
as follows:
a) Income
The Group
239.675
The Company
725.836
(Taxes paid) / Returns on income taxes
Net cash from operating activities (a)
43.322
(221.235)
(8.123)
(494.623)
53.178
(756.834)
0
125.812
b) Expenses
c) Receivables
2.406.083
198.231
3.645.952
1.847.740
Cash flows from investing activities
d) Liabilities
e) Transactions and fees of Directors and
2.918.610 2.291.497 Acquisition of property, plant, equipment and intangible assets
Proceeds from sale of property, plant, equipment and intangible assets
(1.023.233)
48.154
(524.548)
0
(714.321)
0
(464.858)
0
members of the Management
f) Receivables from Directors and members of the
183.450 183.450 Dividends received
Interest received
0
2.478
0
182.892
0
2.440
32.475.000
182.690
Management
g) Liabilities to Directors and members of the
0 0 Net cash used in investing activities (b) (972.602) (341.656) (711.882) 32.192.832
Management
10.
Investments in property, plant and equipment during the period 1/1/2016 - 30/6/2016, were amounted for the Company and the Group in € 3.600
0 0 Cash flows from financing activities
Share capital decrease through capital return in cash
0 (14.404.862) 0 (14.404.862)
thous. and € 3.910 thous., respectively.
Earnings / (losses) per share have been calculated according to the allocation of earnings upon the weighted average number of shares.
11.
Payment of expenses for share capital increase
Proceeds from loans and borrowings
0
0
(159.505)
4.092.579
0
0
(159.505)
10.650.000
12.
In the above financial statements have been applied the accounting principles that were used under the preparation of the financial statements for
the previous year 2015, adjusted with the revisions prescribed by IFRS apart from cases mentioned in explanatory note No. 23 of the Financial Report
Repayment of borrowings
Payment of finance lease liabilities
(802.392)
(183.279)
(20.009.354)
(102.722)
(600.000)
(141.620)
(20.000.000)
(60.916)
of the period 01/01-30/06/2016.
The financial statements of June 30th, 2016 for the Parent Company and the Group, were approved by the Board of Directors of the Company at
13.
Dividends paid
Net cash from financing activities (c)
(1.616)
(987.287)
(8.218.926)
(38.802.790)
(1.616) (8.218.926)
(743.236) (32.194.209)
September 28, 2016. Board of Directors members are: Panagiotis Lykos, Panagiotis Spyropoulos, Georgios Triantafillidis, Elias Karantzalis,
Constantinos Lagios, Emmanuel Lekakis, Spiridon Manias.
Net increase (decrease) in cash and cash equivalents
14.
In acceptance of the relevant proposal of the Board of Directors of the Company the regular General Assembly of the year 2016 which took place at
24/6/2016, decided the distribution of dividend € 0,07 (net of taxes € 0,063) per share which means total dividend amounting to € 1.440.486.
of the period (a) + (b) + (c) (2.181.124) (39.639.069) (2.211.951) 124.435
Cash and cash equivalents at the beginning of the period
Effect from change in exchange rates
3.927.869
(4.365)
41.327.464
(3.873)
3.543.341
0
1.034.088
0
Cash and cash equivalents at the end of the period 1.742.380 1.684.522 1.331.390 1.158.523
PRESIDENT OF THE BoD
ΝΙΚΟΛΑΟΣ ΛΥΚΟΣ
VICE PRESIDENT OF THE BoD AND
MANAGING DIRECTOR OF THE GROUP
Koropi Attikis, 28 September 2016
CHIEF FINANCIAL OFFICER
ACCOUNTING MANAGER
Α.∆.T ΑΒ 241783
PANAGIOTIS LYKOS PANAGIOTIS SPYROPOULOS ALEXANDRA ADAM ANASTASIOS TATOS
ΑΝΑΣΤΑΣΙΟΣ ΤΑΤΟΣ
I.D. no. ΑΒ 607588 I.D. no. ΑΙ 579288 I.D. no. ΑΕ 118025 I.D. no. ΑΜ 556006
Α.∆.T. Σ 240679
REG. No. 9657-A' CLASS
Α.Μ. Α∆ΕΙΑΣ Ο.Ε.Ε. Α΄ ΤΑΞΗΣ 9657

Koropi Attikis, 28 September 2016

PRESIDENT OF THE BoD

VICE PRESIDENT OF THE BoD AND MANAGING DIRECTOR OF THE GROUP

PANAGIOTIS LYKOS PANAGIOTIS SPYROPOULOS I.D. no. ΑΒ 607588 I.D. no. ΑΙ 579288

CHIEF FINANCIAL OFFICER

ACCOUNTING MANAGER

ALEXANDRA ADAM ANASTASIOS TATOS I.D. no. ΑΕ 118025 I.D. no. ΑΜ 556006 REG. No. 9657-A' CLASS

38

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