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Inform P. Lykos Holdings S.A.

Interim / Quarterly Report Aug 6, 2021

2772_ir_2021-08-06_ca3891a0-9c28-4423-9aa6-a47256bcc4e7.pdf

Interim / Quarterly Report

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SEMI-ANNUAL FINANCIAL REPORT for the period from January 1st to June 30th 2021

According to article 5, Law 3556/2007

A) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS 3
B) SEMI-ANNUAL REPORT OF THE ISSUER'S BOARD OF DIRECTORS 4
C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION 10
D) INTERIM CONDENSED FINANCIAL STATEMENTS 11
Consolidated Statement of Financial Position12
Company's Statement of Financial Position13
Company's Income Statement15
Consolidated Statement of Comprehensive Income 16
Company's Statement of Comprehensive Income 17
Consolidated Statement of Changes in Equity18
Company's statement of changes in equity 19
Consolidated Statement of Cash Flows20
Company's statement of Cash Flows21
Notes to the Financial Statements 22

A) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS

The members of the Board of Directors:

1) Panagiotis Spyropoulos, Chairman of the Board of Directors & Group CEO

2) Ilias Karantzalis, Vice Chairman

3) Emmanouil Evangelos Lekakis, 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 HOLDINGS S.A.», declare and certify that to the best of our knowledge:

(a) The interim, company and consolidated, financial statements of «INFORM P. LYKOS HOLDINGS S.A.» for the period 1/1/2021 - 30/06/2021, which were prepared in accordance with the applicable accounting standards, present truly and fairly the assets and liabilities, the equity and the financial results of the Company and the consolidated companies as a group, according to par. 3 - 5 of article 5 of L. 3556/2007 and the authorizing decisions of the BoD of the Hellenic Capital Market Commission.

(b) The interim 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 of the BoD of the Hellenic Capital Market Commission.

Koropi Attica, 06 August 2021

The designees

Chairman of the Board of Directors & Group CEO Vice Chairman of the Board of Directors The appointed Member of the Board of

Directors

Panagiotis Spyropoulos Ilias Karantzalis Emmanouil Evangelos Lekakis I.D. No AI 579288 I.D. No AN 644777 I.D. No ΑΙ 008743

B) SEMI-ANNUAL REPORT OF THE ISSUER'S BOARD OF DIRECTORS

The present Semi-annual Report of the Board of Directors of INFORM P. LYKOS HOLDINGS S.A. concerns the period of the first half of the current fiscal year 2021. The report was prepared and is in accordance with the Greek legislation, Law 3556/2007 (Official publication in National gazette 91A / 30.4.2007) and the issued executive decisions of the Hellenic Capital Market Commission.

This report summarizes the financial information of the Group and the company INFORM P. LYKOS HOLDINGS S.A. for the first half of the current fiscal year, significant events that took place during this period and their effect on the interim financial statements. In addition, it outlines the main risks and uncertainties that Group companies may face in the second half of the year and finally lists significant transactions between the issuer and its affiliates.

(a) Significant events of the first half of 2021

The effects of the COVID-19 pandemic, that has been affecting the global economy since March 2020, were also affected the first half of 2021 to a limited extent compared to 2020. The European Commission estimates for 2021 that the rate of change in GDP in Greece, this year, will be 3,5%. The World Bank expects a recovery in the eurozone as well as globally between 3% and 4%.

Management continues to closely monitor the development of this pandemic, including how it may affect the Group, and takes immediate actions to protect the business and its people in the face of this crisis. Ensuring the health of staff, defining alternative means of communication and the immediate management of information systems, in order to ensure the safe telecommuting against cyber threats were the first and continuous actions to ensure the operation of the company. Management has the appropriate planning to deal with this situation and will continue to monitor and evaluate the current development and respond accordingly.

The Group, committed to the goal of increasing participation in its financial figures of digital transformation solutions, continues to create and provide technologically advanced services in order to support its customers in their own digital transformation by providing highly specialized solutions. In this context, it focuses on expanding the range of solutions provided, through new acquisitions and increasing percentages on existing holdings.

On February 10, 2021, INFORM P. LYKOS HOLDINGS S.A. signed an agreement for the acquisition of a majority stake of 56,5% of the share capital and at the same time the acquisition of control of the Cypriot company CLOUDFIN LTD at a price amounting to 1 million euros. With this investment, INFORM expands the portfolio of services provided to its existing customers and the ability to reach new customers, providing management services, automatic identification and registration (Process Automation), all types of documents and other documents (purchase documents , expenses, contracts, etc.) using Machine Learning (ML) and interface with ERP systems. In addition, through this investment, INFORM will provide Document Management services, including electronic archiving, as well as document recognition products for Know Your Customer / Business (KYC / KYB) processes, with control authentication and extraction of data from identification documents (IDs, passports, driving licenses), tax, corporate and utility documents.

On February 18, 2021, INFORM LYKOS Romania (INFORM LYKOS S.A.), a subsidiary of INFORM P. LYKOS HOLDINGS S.A., increased also its majority stake in the share capital of NEXT DOCS ECM EXPERT S.R.L. and NEXT DOCS CONFIDENTIAL S.R.L., who are already members of the Group. Specifically, INFORM LYKOS Romania now owns 80.59% of NEXT DOCS ECM EXPERT S.R.L. and 80% of NEXT DOCS CONFIDENTIAL S.R.L. The purchase price of 15,52% and 14,55% respectively of the above mentioned companies amounted to 1,3 million euros. The activities of NEXT DOCS companies are related to the provision of services such as Enterprise Document Management, Scanning & Archiving.

(b) Performance and financial position of the Group

During the first half of 2021, Group sales increased by € 1.1 million or +3.2% and reached € 34.7 million compared to € 33.6 million compared to the corresponding half of 2020. Operating profitability was reduced by € 0.3 million to € 3.2 million compared to € 3.5 million in the corresponding half of 2020, as it was affected by the sales mix, as analyzed below.

Excluding intersegment revenues, sales in Greece reached € 13.1 million compared to € 13.5 million in the corresponding half of 2020, reduced by € 0.4 million with negative and positive deviations mainly from:

  • Revenue loss of € 1.6 million from Private Sector which was affected by the COVID-19 pandemic, where there are already signs of recovery for the second half of 2021,
  • Delay in renewal of payment cards by € 0.5 million, which is estimated to take place in the second half of 2021,
  • The above deviations were partially offset by
  • Undertaking a larger share in the postal services, with an increase in turnover by € 1.7 million compared to the corresponding half last year.

In Romania, sales increased by 6.6% compared to the corresponding half of 2020 and reached € 21 million compared to € 19.7 million. This increase of € 1.3 million comes from:

  • Increase of the turnover of the companies NEXT DOCS by € 0.8 million, in Enterprise Document Management, Scanning & Archiving projects,
  • Undertaking a larger share in the postal services by € 0.5 million.

It follows relevant table with the results of the Group regarding the first half of 2021 compared to the corresponding semester of 2020.

01/01-
30/6/2021
01/01-
30/6/2020
Δ 21-20 % Δ 21-20
Revenues 34.728.845 33.652.850 1.075.994 3,2%
Cost of materials (21.458.556) (20.736.759) (721.797) 3,5%
Gross profit I 13.270.289 12.916.092 354.197 2,7%
Gross margin Ι 38,2% 38,4%
Production cost (7.322.383) (6.932.109) (390.275) 5,6%
Cost of sales (28.780.939) (27.668.867) (1.112.072) 4,0%
Gross profit II 5.947.905 5.983.983 (36.077) -0,6%
Gross margin ΙI 17,1% 17,8%
Other income 667.244 798.046 (130.803) -16,4%
Selling and distribution expenses (2.573.293) (2.413.539) (159.754) 6,6%
Administrative expenses (2.499.379) (2.243.817) (255.562) 11,4%
Research and development expenses (238.877) (407.886) 169.009 -41,4%
Other expenses (288.797) (303.893) 15.096 -5,0%
+ Depreciation & amortization 2.230.640 2.081.390 149.249 7,2%
EBITDA 3.245.443 3.494.285 (248.842) -7,1%
- Depreciation & amortization (2.230.640) (2.081.390) (149.249) 7,2%
EBIT 1.014.804 1.412.894 (398.091) -28,2%
Financial income 131 1.180 (1.049) -88,9%
Financial expenses (718.500) (804.583) 86.083 -10,7%
Net finance costs (718.369) (803.403) 85.034 -10,6%
EBT 296.435 609.492 (313.057) -51,4%
Income tax (182.466) (246.050) 63.584 -25,8%
EAT 113.970 363.442 (249.473) -68,6%

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

  • The earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group, reached € 3,2 million compared to € 3,5 million in the corresponding half of 2020, decreased by € 0,3 million or -7,1% mainly affected by sales mix,
  • The earnings before interest and taxes (EBIT) of the Group, reached € 1 million compared to € 1,4 million in the corresponding period of 2020, decreased by € 0,4 million, affected by higher depreciation and amortization,
  • The earnings before taxes (EBT) of the Group, reached € 0,3 million compared to € 0,6 million in the corresponding half of 2020, decreased by € 0,3 million,
  • The consolidated earnings after taxes (EAT) of the Group, reached to € 0,11 million compared to € 0,36 million in the corresponding half of 2020, decreased by € 0,25 million.
Operating expenses excluding depreciation &
amortization
01/01-
30/6/2021
01/01-
30/6/2020
Δ 21-20 % Δ 21-20
Production cost (7.322.383) (6.932.109) (390.275) 5,6%
Selling and distribution expenses (2.573.293) (2.413.539) (159.754) 6,6%
Administrative expenses (2.499.379) (2.243.817) (255.562) 11,4%
Research and development expenses (238.877) (407.886) 169.009 -41,4%
+ Depreciation & amortization 2.230.640 2.081.390 149.249 7,2%
Total (10.403.293) (9.915.960) (487.333) 4,9%
% Operating expenses on sales 30,0% 29,5%

The operating expenses excluding depreciation & amortization increased by € 0,5 million or 4,9% from € 9,9 million to € 10,4 million. One of the most important factors in increasing operating expenses is the continuous investment in specialized personnel to provide new innovative digital transformation solutions in Greece and Romania.

The consolidated operating cash flows generated in the first half of 2021 amounted to € 0,5 million compared to € 0,7 million in the corresponding half of 2020. The net debt of the Group amounted to € 21,4 million by the first half of 2021, compared to € 20,6 million in the corresponding half of 2020 and compared to € 18,6 million at the end of 2020, increased by € 2,8 million, compared to the year 2020, mainly due to the acquisition of CLOUDFIN LTD in Cyprus of € 1,1 million, the acquisition of an additional percentage of NEXT DOCS companies in Romania of € 1,3 million and investments in machinery equipment.

According to the above, the financial performance ratios of the Group in the first semester 2021 compared to the first semester 2020 were as follows:

  • The margin of earnings before interest, taxes, depreciation and amortization amounted to 9,3% from 10,4%, decreased by 1%,

  • The margin of earnings before interest and taxes amounted to 2,9% from 4,2%, decreased by 1,3%,

  • The margin of earnings before taxes amounted to 0,9% from 1,8%, decreased by 1%,

  • The performance ratio of equity amounted to 0,3% from 1%, decreased by 0,6%,

  • The performance ratio of assets amounted to 0,1% from 0,4%, decreased by 0,3%,

  • The ratio of liabilities to equity amounted to 1,26 from 1,12 the first semester of 2020,

  • The ratio of bank debt to equity amounted to 0,6 at the same level with the first semester of 2020,

  • The ratio of liquidity amounted to 0,9 from 1,1, decreased by 0,2 basis points.

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

No further event has occurred after 30/06/2021, which may have a significant impact on the Group's financial position or operation.

(d) Main risks and uncertainties for the second half of 2021

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. 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) take place 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.

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 applied credit control procedures in order to minimize bad debts. Sales are directed mainly to large public and private organizations with an evaluated credit rating. In any case, the Group assesses the credit risk on the basis of approved policies and procedures and recognizes a provision for impairment.

The Group applies the simplified approach for customer receivables and contract assets for the calculation of expected credit losses. Therefore, in every reference date, the Group measures the provision for a financial instrument for an amount equal to the expected credit losses over the lifetime. For determining the expected credit losses, a chronological analysis and percentages table is applied using historical data and reasonable assumptions

Liquidity risk

The Group manages its working capital needs by closely monitoring its debts, long-term financing obligations and payments. Liquidity is monitored on a daily basis and the planning of payments takes place on weekly and monthly basis. Close attention is given to the 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.

(e) Estimates for development of activities in the second half of 2021

The Group having great know-how in integrated solutions - services has developed long term customer relationships offering high level products and services, at competitive prices, so as to be considered a strategic supplier of banking institutions, telecommunications and other organizations either in the private sector or in the public sector.

The Group is constantly working to create added value to its shareholders in the following areas:

New markets and new customers

It will continue to focus on the increase of market share in the existing markets, on the increase of exports, and will also focus on exploring and evaluating new growth opportunities at the sector of secure documents management and information,with significant areas of interest in Europe,Africa and Middle East.

New products and services

INFORM innovates by developing higher value-added services, such as Enterprise Document Management and Scanning & Archiving services, as well as providing highly specialized and technologically advanced digitalization solutions such as Remote Digital Onboarding (DoB) , OCR / Data Capture Solutions, Process Automation using Machine Learning (ML), Robotic Process Automation, Natural Language Understanding and Cognitive Analytics Solutions, to support existing and new customers in their own digital transformation.

Efficiency improvement

Ιt will continue to improve its efficiency and will continue to invest in new technologies that will increase production capacity and reduce costs, in order to enhance profitability.

Potential strategic co-operation opportunities

It will continue to search potential opportunities for strategic partnerships, aiming at a further strengthening of its position in the broader region of Central and Eastern Europe.

For 2021, the Management of the Group monitors the developments and with the adaptability shown by the management of the spread of the COVID-19 pandemic in the year 2020, expects to successfully face any new conditions that will arise in the economic environment. The Group having proved its ability to adapt to rapidly changing and unpredictable European market conditions, in which operates, faces challenges and also sees opportunities from the faster transition to digital transformation of enterprises, look to the future with optimism and expects the market normalization in 2021, so to be recorded in the growth indicators the significant effort made by all the teams of the Organization.

(f) Non-financial information

INFORM has incorporated the principles of Sustainable Development into its business activities, recognizing that these principles are a prerequisite for its long-term development. INFORM's key Sustainability priorities are, ensuring a healthy and safe working environment, caring for the natural environment, fulfilling of customers' needs and expectations and the harmonious co-existence with the local communities where it operates.

Policies and Management Systems

Aspiring at Sustainable Development, INFRORM has developed and adopted specific policies and puts into practice adequate management systems and procedures that uphold responsible operation and define the way in which the Company's goals are achieved. More specifically, the Company has established and implements, among others, the following policies and codes:

  • Internal Operating Regulation
  • Occupational Health and Safety Policy
  • Environmental Policy
  • Quality Policy

The management of Corporate Responsibility by INFORM is based on the development and implementation of certified management systems to all of its operations and facilities, while attaining high performance in all segments. Specifically, the following systems are applied:

  • Quality management system in accordance with ISO 9001
  • Environmental Management System in accordance with ISO 14001.
  • Workplace Health and Safety Management System in accordance with OHSAS 18001.
  • Information Security Management System, according to the ISO 27001
  • Printing and Production Management System FSC (Forest Stewardship Council), in accordance with FSC Chain of Custody (FSC-STD-40-004)
  • Security Print Management Production System, according to the ISO 14298 / INTERGRAF
  • Business Continuity Management System, according to the ISO 22301 standard (concerns the provision of digitization, documentation, registration, data collection and optical character recognition services)

All production units have been audited and certified according the above Management Systems. For INFORM, management systems are dynamic tools allowing the Company to secure its regular operation and achieve continuous improvement. The implementation of certified management systems plays a very important role in achieving the goals set by the Company, and secures all their operations in light of the ongoing requirements for effective risk management.

Caring for Our People

The Company focuses on making continuous investments in human capital, by encouraging initiative taking for synergies, and on continuous development through training. INFORM keeps relations of trust with all employees, while seeking to maintain a safe and discrimination-free working environment that offers at all times training opportunities and fair rewarding.

The Company's main concern is to secure optimum working environment demonstrating fairness and equal reward, showing respect for human rights, diversity and equal opportunities to all employees. The policies and initiatives of INFORM that concern human resources aim at the effectively recruitment, development and retaining of employees. Steadily oriented to human values, the Company strives to implement responsible management practices by focusing on material issues such as:

  • ensuring of the health and safety of its employees
  • creating a work environment of fair reward, respecting human rights and diversity
  • safeguarding of jobs
  • providing equal opportunities for all employees
  • ensuring ongoing training and education
  • providing additional benefits

In 2020, the COVID-19 pandemic reminded everyone that health is the most important and can not be taken for granted. In order to protect our employees, we have implemented various protection measures to increase hygiene and avoid close contact in all facilities of the Group.

In total, the Group's personnel reached 509 employees at 30/06/2021 from 513 on 30/06/2020.

Environmental Responsibility

INFORM, has carried out the assessment of its environmental aspects, confirming that there is not a significant burden on the environment deriving from its operations. However, recognizing the importance of environmental protection for all of its stakeholders, the Company is stepping up its efforts to monitor and improve its environmental performance. In this context, INFORM has implemented an Environmental Management System, certified according to ISO 14001 and Production Management System FSC (Forest Stewardship Council), in accordance with FSC Chain of Custody (FSC-STD-40-004).

The purpose of implementing an Environmental Management System, is to effectively manage any significant environmental aspects and impacts that arise from the Company's operations in order to minimize any possibility of environmental spill. In addition, the Environmental Management System ensures the harmonization of the Company's operation with the relevant environmental legislation, while achieving continuous environmental improvement.

Detailed information on INFORM's Corporate Responsibility programs and action plan are presented in Corporate Responsibility Report 2019, which is presented on the Company's website www.informlykos.com. The Corporate Responsibility Report is an important tool as it reflects and communicates the way in which the Company responds to important/material issues and to stakeholders' expectations.

(g) Research and Development

The Group's research and development strategy focuses on the following objectives:

  • Innovative products and market-oriented solutions as the basis for the continuation of growth strategy
  • Optimizing the use of resources and production processes.

Especially in the digital era, effective research and development is important as product cycles are short and the requirements of partners and end customers are evolving. This is particularly valid for the digital printing sector. We perceive these changes as opportunities and rely on Research & Development experts so that we can offer unique services to our customers that will help us grow in the short and long term.

INFORM innovates by developing higher value-added services, such as Enterprise Document Management and Scanning & Archiving services, as well as providing highly specialized and technologically advanced digitalization solutions such as Digital Onboarding (DoB) , OCR / Data Capture Solutions, Process Automation using Machine Learning (ML), Robotic Process Automation, Natural Language Understanding and Cognitive Analytics Solutions, to support existing and new customers in their own digital transformation.

(h) Significant transactions with related parties

The transactions between the company and its related parties within the first half of 202, were conducted on usual market terms (arm's length), 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 30/6/2021

Parent Company -
from/to subsidiaries
Sales of
goods
/services
Purchase
of goods
/services
Receivables Liabilities Dividends
Receivable
Dividends Loans
INFORM LYKOS (HELLAS)
S.A.
295 0 69 703 0 0 0
S.C. INFORM LYKOS S.A. 308 0 112 0 0 0 0
CLOUDFIN LTD 0 0 0 0 0 0 181
TERRANE LTD 0 0 0 0 1.000 1.070 0
INFORM ALBANIA SH.P.K. 9 0 11 0 62 0 0
Total 612 0 191 703 1.062 1.070 181

The sales of the parent company to its subsidiaries relate mainly to provision of advice and services in the fields of general administration, financial management, sales, marketing, IT, research and development, and in general any kind of service that enhances the know-how of the subsidiaries and will ensure their smooth and orderly operation, as well as their development always in accordance with the specifications set by the Group.

i) Branches

The Company has no branches.

(j) Own shares

The company did not hold own shares on 30/06/2021.

Koropi, 06 August 2021

Panagiotis Spyropoulos Ilias Karantzalis Group CEO

Chairman of the Board of Directors & Vice Chairman of the Board of Directors

C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION

To the Board of Directors of "INFORM P. LYKOS HOLDINGS S.A."

Introduction

We have reviewed the accompanying condensed company and consolidated statement of financial position of INFORM P. LYKOS HOLDINGS S.A. (the "Company"), as of 30 June 2021 and the related condensed company and consolidated statements of profit or loss and other comprehensive income , changes in equity and cash flows for the six-month period then ended, and the selected explanatory notes, which comprise the interim condensed financial information and which form an integral part of the six-month financial report as required by 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 they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this interim condensed 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, as they have been transposed into Greek Legislation 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

Our review did not identify any material inconsistency or misstatement in the statements of the members of the Board of Directors and the information of the six-month Board of Director's report, according to article 5 and 5a of L. 3556/2007, with the accompanying condensed interim financial information.

Athens, 06 August 2021 The certified chartered accountant

Nikos Garbis SOEL Reg. No. 25011

D) INTERIM CONDENSED FINANCIAL STATEMENTS

The attached interim condensed financial statements that constitute an integral part of the interim financial report under Article 5 of Law 3556/2007, were approved by the Board of Directors of the issuer (hereinafter INFORM P. LYKOS HOLDINGS S.A. or the Company) on 06.08.2021 and have been published on the Company's website - www.informlykos.com, as well as on the ASE website where they will remain at the disposal of investors for at least ten (10) years from their preparation and publication date. It is noted that the annual financial statements, audit reports of the statutory auditor and the reports of the board of directors of the subsidiaries are posted at the site www.informlykos.com.

Consolidated Statement of Financial Position

The Statement of Financial Position of the Group for the period ended as at 30/06/2021 and the corresponding comparative figures of previous year 31/12/2020 are the following:

THE GROUP
Notes 30/6/2021 31/12/2020
Assets
Property, plant and equipment 14 42.519.415 43.802.419
Intangible assets 15 11.360.358 10.624.899
Other receivables 16 27.741 27.741
Deferred tax assets 277.681 275.864
Non-current assets 54.185.195 54.730.923
Inventories 5.719.132 4.949.608
Contract assets 1.458.145 1.275.001
Current income tax assets 279.293 256.491
Trade receivables 16 13.660.043 11.656.898
Other receivables 16 1.007.879 800.549
Receivables from related parties 16 809.253 535.254
Cash and cash equivalents 17 2.099.783 5.039.745
Current assets 25.033.527 24.513.546
Total assets 79.218.723 79.244.470
Equity
Share capital 12.758.592 12.758.592
Share premium 9.436.797 9.436.797
Reserves 12.477.676 13.396.360
Retained profits 160.091 1.546.529
Equity attributable to shareholders of the 34.833.155 37.138.278
Parent Company
Non-controlling interests
250.654 230.533
Total Equity 35.083.809 37.368.811
Liabilities
Loans and borrowings 18 14.957.009 17.562.496
Employee benefits 1.206.138 1.193.128
19
Other payables
Deferred tax liabilities
16.883
990.742
16.883
1.114.968
Non-current liabilities 17.170.772 19.887.476
Current tax liabilities 220.858 241.946
Loans and borrowings 18 8.555.763 6.076.856
Trade payables 19 13.593.068 12.291.185
Other payables 19 2.338.286 1.737.622
Contract liabilities 802.355 493.241
Liabilities to related parties 19 628.225 361.496
Deferred income 48.887 0
Provisions 776.699 785.839
Current Liabilities 26.964.142 21.988.183
Total Liabilities 44.134.914 41.875.659
Total Equity and Liabilities 79.218.723 79.244.470

Company's Statement of Financial Position

The Statement of Financial Position of the Company for the period ended as at 30/06/2021 and the corresponding comparative figures of previous year 31/12/2020 are the following:

THE COMPANY
Notes 30/6/2021 31/12/2020
Assets
Property, plant and equipment 14 110.008 73.578
Intangible assets 15 95.221 112.538
Investments in subsidiaries 36.032.132 35.015.132
Deferred tax assets 217.675 216.041
Non-current assets 36.455.035 35.417.289
Current income tax assets 176.402 176.402
Other receivables 83 3.089
Receivables from related parties 16 1.434.036 1.208.667
Cash and cash equivalents 17 907.814 734.583
Current assets 2.518.335 2.122.741
Total assets 38.973.370 37.540.030
Equity
Share capital 12.758.592 12.758.592
Share premium 9.436.797 9.436.797
Reserves 13.021.296 13.021.296
Retained profits 1.874.005 1.675.623
Total Equity 37.090.689 36.892.307
Liabilities
Loans and borrowings
18 53.783 23.332
Employee benefits 120.568 117.012
Other payables 19 16.883 16.883
Non-current liabilities 191.234 157.227
Current income tax liabilities 64.927 85.746
Loans and borrowings 18 20.245 13.642
Trade payables 19 88.815 59.923
Other payables 19 814.675 114.654
Liabilities to related parties 19 702.784 216.530
Current Liabilities 1.691.446 490.495
Total Liabilities 1.882.681 647.723
Total Equity and Liabilities 38.973.370 37.540.030

Consolidated Income Statement

The Income Statement of the Group for the period 01/01 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE GROUP
Notes 01/01-
30/6/2021
01/01-
30/6/2020
Revenue 8 34.728.845 33.652.850
Cost of sales 9 (28.780.939) (27.668.867)
Gross profit 5.947.905 5.983.983
Other income 667.244 798.046
Selling and distribution expenses (2.573.293) (2.413.539)
Administrative expenses (2.499.379) (2.243.817)
Research and development expenses (238.877) (407.886)
Other expenses (288.797) (303.893)
+ Depreciation & amorisation 2.230.640 2.081.390
EBITDA 3.245.443 3.494.285
- Depreciation & amorisation (2.230.640) (2.081.390)
EBIT 1.014.803 1.412.894
Financial income 10 131 1.180
Financial expenses 10 (718.500) (804.583)
Net finance costs (718.369) (803.403)
Profits / (losses) before taxes 296.435 609.492
Income tax expense 12 (182.466) (246.050)
Profits / (losses) after taxes for the period 113.969 363.442
Profits / (losses) attributable to:
Owners of the Parent Company (27.481) 213.997
Non-controlling interests 141.450 149.444
113.969 363.442

Company's Income Statement

The Income Statement of the Company for the period 1/1 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE COMPANY
Notes 30/6/2021 30/6/2020
Revenue 8 611.946 549.832
Cost of sales 9 0 0
Gross profit 611.946 549.832
Other income 306 400
Administrative expenses (656.988) (638.533)
Other expenses (3.561) (2.512)
+ Depreciation & amorisation 29.571 26.922
EBITDA (18.725) (63.892)
- Depreciation & amorisation (29.571) (26.922)
EBIT (48.296) (90.814)
Financial income 10 1.070.818 2.501.030
Financial expenses 10 (2.639) (2.316)
Net finance costs 1.068.179 2.498.714
Profits / (losses) before taxes 1.019.883 2.407.901
Income tax expense 12 1.634 (3.504)
Profits / (losses) after taxes for the period 1.021.517 2.404.397

Consolidated Statement of Comprehensive Income

The Statement of Comprehensive Income of the Group for the period 1/1 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE GROUP
Notes 01/01-
30/6/2021
01/01-
30/6/2020
Profits / (Losses) after taxes 113.969 363.442
Other comprehensive income
Items that will never be reclassified to profit or
loss
0 0
Items that are or may be reclassified to profit
or loss
Foreign operations - foreign currency translation
differences
13 (212.633) (270.295)
(212.633) (270.295)
Other comprehensive income, net of tax (212.633) (270.295)
Total comprehensive income (98.663) 93.147
Total comprehensive income attributable to:
Owners of the Parent Company
Non-controlling interests
(239.716)
141.052
(98.663)
(52.683)
145.830
93.147

The accompanying explanatory notes constitute an integral part of the presented financial statements.

Company's Statement of Comprehensive Income

The Statement of Comprehensive Income of the Company for the period 1/1 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE COMPANY
Notes 30/6/2021 30/6/2020
Profits / (Losses) after taxes 1.021.517 2.404.397
Other comprehensive income
Items that will never be reclassified to profit or
loss
0 0
Items that are or may be reclassified to profit
or loss
Other comprehensive income, net of tax 0 0
Total comprehensive income 1.021.517 2.404.397

The accompanying explanatory notes constitute an integral part of the presented financial statements.

Consolidated Statement of Changes in Equity

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

For the period ended 30 June 2021
Attributable to owners of the Company
THE GROUP Share
capital
Share
premium
Translation
and other
reserves
Revaluation
reserve
IAS 19
reserve
Retained
earnings
Total Non
controlling
interest
Total
equity
Balance at 31 December 2020 12.758.592 9.436.797 (2.815.570) 16.446.306 (234.377) 1.546.529 37.138.278 230.533 37.368.811
Profits
/ (losses)
0 0 0 0 0 (27.481) (27.481) 141.450 113.969
Other comprehensive income 0 0 (212.235) 0 0 0 (212.235) (398) (212.633)
Total comprehensive income 0 0 (212.235) 0 0 (27.481) (239.716) 141.052 (98.663)
Revaluation surplus transfer 0 0 0 (706.449) 0 706.449 0 0 0
Acquisition of subsidiaries 0 0 0 0 0 13.863 13.863 62.227 76.090
Change of percentage of ownerhip interests 0 0 0 0 0 (1.256.136) (1.256.136) (2.374) (1.258.510)
Dividend distribution 0 0 0 0 0 (823.135) (823.135) (180.784) (1.003.919)
Balance at 30 June 2021 12.758.592 9.436.797 (3.027.804) 15.739.857 (234.377) 160.091 34.833.155 250.654 35.083.809

THE GROUP For the period ended 30 June 2020
Attributable to owners of the Company
Share
capital
Share
premium
Translation
and other
reserves
Revaluation
reserve
IAS 19
reserve
Retained
earnings
Total Non
controlling
interest
Total
equity
Balance at 31 December 2019 12.758.592 9.436.797 (2.436.962) 16.001.048 (205.390) 3.716.990 39.271.075 139.427 39.410.502
Profits
/ (losses)
0 0 0 0 0 213.997 213.997 149.444 363.442
Other comprehensive income 0 0 (266.680) 0 0 0 (266.680) (3.614) (270.295)
Total comprehensive income 0 0 (266.680) 0 0 213.997 (52.683) 145.830 93.147
Dividend distribution 0 0 0 0 0 0 0 (92.191) (92.191)
Other movements 0 0 0 0 0 (3.864) (3.864) (102) (3.965)
Balance at 30 June 2020 12.758.592 9.436.797 (2.703.642) 16.001.048 (205.390) 3.927.124 39.214.528 192.965 39.407.493

Company's statement of changes in equity

The statement of changes in equity of the Company is the following:

THE COMPANY For the period ended 30 June 2021
Attributable to owners of the Company
Share
capital
Share
premium
Revaluation
reserve
IAS 19
reserve
Other
Reserves
Retained
earnings
Total
Balance at 31 December 2020 12.758.592 9.436.797 0 (52.849) 13.074.144 1.675.623 36.892.307
Profits
/ (losses)
0 0 0 0 0 1.021.517 1.021.517
Total comprehensive income 0 0 0 0 0 1.021.517 1.021.517
Dividend distribution 0 0 0 0 0 (823.135) (823.135)
Balance at 30 June 2021 12.758.592 9.436.797 0 (52.849) 13.074.144 1.874.005 37.090.689

THE COMPANY For the period ended 30 June 2020

Attributable to owners of the Company

Share
capital
Share
premium
Revaluation
reserve
Revaluation
reserve
Other
Reserves
Retained
earnings
Total
Balance at 31 December 2019 12.758.592 9.436.797 0 0 13.074.144 1.309.009 36.578.542
Profits
/ (losses)
0 0 0 0 0 2.404.397 2.404.397
Total comprehensive income 0 0 0 0 0 2.404.397 2.404.397
Balance at 30 June 2020 12.758.592 9.436.797 0 0 13.074.144 3.713.406 38.982.938

Consolidated Statement of Cash Flows

Cash flows of the Group for the period 1/1 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE GROUP
30/6/2021 30/6/2020
Cash flows from operating activities
Profits / (Losses) before taxes 296.435 609.492
Adjustments for:
– Depreciation & amortisation 2.230.640 2.081.390
– Net finance cost 718.369 803.403
– Gain on sale of property, plant and equipment (187) 0
– Foreign exchange differences included in EBIT (29.340) (52.046)
– Change in long-term employee benefits & provisions 13.010 18.445
– Other (416.722) (21.830)
2.812.205 3.438.854
Changes in:
– Inventories (769.524) (316.288)
– Trade and other receivables (2.667.616) (1.226.039)
– Trade and other payables 1.780.328 (273.772)
Cash generated from operating activities 1.155.393 1.622.755
Taxes paid (321.830) (330.284)
Interest paid (329.153) (612.284)
Net cash from (used in) operating activities 504.410 680.186
Cash flows from investment activities
Interest received 832 1.043
Proceeds from sale of property, plant and equipment 1.704 0
Acquisition of subsidiaries, business, net of cash acquired (2.255.528) 0
Acquisition of property, plant and equipment & intangible assets (704.186) (1.066.393)
Net cash from (used in) investing activities (2.957.177) (1.065.349)
Cash flows from financing activities
Proceeds from loans & borrowings 2.628.001 1.850.816
Payment of loans (2.341.702) (1.176.728)
Payment of finance lease liabilities (566.482) (505.889)
Dividends paid to non-controlling interest (193.859) (160.471)
Net cash from (used in) financing activities (474.042) 7.729
Net (decrease) in cash and cash equivalents (2.926.809) (377.434)
Cash and cash equivalents at 1 January 5.039.745 4.066.858
Effect of movements in exchange rates on cash held (13.153) (14.376)
Cash and cash equivalents at 30 June 2.099.783 3.675.048

Company's statement of Cash Flows

Cash flows of the Company for the period 1/1 - 30/06/2021 and the respective comparative figures of the previous period are the following:

THE COMPANY
01/01 -
30/6/2021
01/01 -
30/6/2020
Cash flows from operating activities
Profits / (Losses) before taxes 1.019.883 2.407.901
Adjustments for:
– Depreciation & amortisation 29.571 26.922
– Net finance cost (1.068.179) (2.498.714)
– Other 4.061 2.422
(14.664) (61.470)
Changes in:
– Trade and other receivables (222.362) (1.748.208)
– Trade and other payables 584.026 (46.695)
Cash generated from operating activities 347.000 (1.856.373)
Taxes paid / income tax returns (20.819) 78.935
Interest paid (1.544) (2.316)
Net cash from (used in) operating activities 324.637 (1.779.754)
Cash flows from investment activities
Interest received 772 1.030
Dividend received 1.070.045 1.100.000
Acquisition of subsidiaries (1.017.000) 0
Net cash from (used in) investing activities 53.818 1.101.030
Cash flows from financing activities
Granted loans to related parties (180.000) 0
Payment of finance lease liabilities (12.365) (9.292)
Dividends paid to non-controlling interest (12.858) 0
Net cash from (used in) financing activities (205.223) (9.292)
Net increase / (decrease) in cash and cash equivalents 173.231 (688.016)
Cash and cash equivalents at 1 January 734.583 1.932.751
Cash and cash equivalents at 30 June 907.814 1.244.735

Notes to the Financial Statements

1. Reporting entity

The Group INFORM is a fast-growing Group of companies, forming the market in the business area of Information Management under the brand INFORM. Nowadays, the Group is operating internationally and is a leader in the field of secure management of documents and information, in the markets of Central and Eastern Europe in the Public and Private Sector. It owns three production units in Athens (Greece), Bucharest (Romania) and Tirana (Albania). The entities and activities of the Information Management sector refer to the parent company INFORM P. LYKOS HOLDINGS S.A. based in Greece.

The registered office of the parent company INFORM P. LYKOS HOLDINGS S.A. (the Company) is in Koropi Attica, 5th km. of Varis-Koropiou Avenue.

The main business purpose of the parent company INFORM P. LYKOS HOLDINGS S.A. is the participation in the capital of companies of any kind and the provision of support services to its subsidiaries. In particular, it generates revenue from the provision of consulting services in the fields of general administration, financial management, sales, marketing, IT, research and development, and in general from any kind of service that will enhance the know-how of the subsidiaries and ensure their smooth operation, as well as their development, always in accordance with the specifications set by the Group. The Board of Directors approved the present financial statements on 06/08/2021.

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 through the results 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 relative 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 31/12/2020, apart from the changes arising following the adoption of new or revised IAS - IFRS or Interpretations that are effective on or after January 1st 2021. The aforementioned changes are described in the note 27.

3. Functional and presentation currency

The consolidated and separate 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

For the preparation of these consolidated financial statements, the Management has made judgments, estimates and assumptions that affect the published amounts of assets and liabilities as at the financial statements preparation date. These also affect the disclosures of contingent receivables and liabilities as at the financial statements preparation date, as well as the publicized amounts of incomes 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 revaluated 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.

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 on 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 (ie 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 valuation information on the transfer of a liability (ie 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 (ie 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, 2020 (13(B)). The fair value of these assets has not changed substantially and therefore remains the same as they were valued at 31/12/2020.

5. Financial Risks

The financial risks and their management policies have not changed in relation to those detailed in the most recent annual financial statements.

We particularly note that the Group does not hold financial assets that can be traded in active markets.

6. Operating Segments

The Group maintains one strategic segment, the "Information Management" (printing segment), which is its reportable segment. Every unit of the segment offers same products and services, and requires the same technology and marketing strategies.

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

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.

01/01-30/06/2021 Greece Romania Other Eliminations Total
Revenues 13.144.461 20.968.996 615.388 0 34.728.845
Intersegment revenues 410.243 894.495 0 (1.304.738) 0
Segment revenues 13.554.703 21.863.491 615.388 (1.304.738) 34.728.845
Cost of sales (11.526.982) (17.684.418) (500.343) 930.804 (28.780.939)
Gross profit 2.027.721 4.179.074 115.044 (373.933) 5.947.906
Other income 240.050 448.726 68 (21.600) 667.244
Selling and distribution expenses (1.443.811) (1.220.082) 0 90.600 (2.573.293)
Administrative expenses (1.384.557) (1.280.014) (139.411) 304.603 (2.499.379)
Research and development expenses (238.877) 0 0 0 (238.877)
Other expenses (36.426) (251.584) (787) 0 (288.797)
+ Depreciation & amortization 1.266.574 921.694 42.372 0 2.230.640
EBITDA 430.674 2.797.813 17.287 (330) 3.245.443
- Depreciation & amortization (1.266.574) (921.694) (42.372) 0 (2.230.640)
EBIT (835.900) 1.876.119 (25.085) (330) 1.014.803
Financial income 832 22 2.201 (2.924) 131
Financial expenses (415.029) (301.770) (5.275) 3.573 (718.500)
Net finance costs (414.196) (301.748) (3.074) 649 (718.369)
Profit / (loss) before tax (1.250.097) 1.574.372 (28.159) 319 296.435
Income tax expense 87.395 (269.860) 0 0 (182.466)
Profit / (loss) (1.162.702) 1.304.511 (28.159) 319 113.969
01/01-30/06/2020 Greece Romania Other Eliminations Total
Revenues 13.546.664 19.729.141 377.045 0 33.652.850
Intersegment revenues 359.229 1.123.488 0 (1.482.717) 0
Segment revenues 13.905.893 20.852.629 377.045 (1.482.717) 33.652.850
Cost of sales (11.257.395) (17.248.884) (304.099) 1.141.510 (27.668.867)
Gross profit 2.648.498 3.603.746 72.946 (341.207) 5.983.983
Other income 302.247 775.005 0 (279.205) 798.046
Selling and distribution expenses (1.253.682) (1.248.607) 0 88.750 (2.413.539)
Administrative expenses (1.282.786) (1.172.531) (62.874) 274.374 (2.243.817)
Research and development expenses (407.886) 0 0 0 (407.886)
Other expenses (38.869) (521.639) (991) 257.606 (303.893)
+ Depreciation & amortization 1.182.764 880.088 18.538 0 2.081.390
EBITDA 1.150.287 2.316.060 27.619 319 3.494.284
- Depreciation & amortization (1.182.764) (880.088) (18.538) 0 (2.081.390)
EBIT (32.477) 1.435.972 9.080 319 1.412.894
Financial income 1.043 137 19.367 (19.367) 1.180
Financial expenses (388.417) (411.806) (22.128) 17.768 (804.583)
Net finance costs (387.373) (411.669) (2.761) (1.599) (803.403)
Profit / (loss) before tax (419.851) 1.024.303 6.319 (1.281) 609.491
Income tax expense 62.715 (306.334) (2.431) 0 (246.050)
Profit / (loss) (357.136) 717.970 3.888 (1.281) 363.442

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

30/6/2021 Greece Romania Other Eliminations Total
Assets 56.880.512 41.891.300 981.790 (20.534.879) 79.218.723
Liabilities 23.525.649 20.920.197 1.509.614 (1.820.546) 44.134.914
Capital expenditures (1/1-30/6/2021) 559.567 337.145 6.990 0 903.702
Depreciation (1/1-30/6/2021) 1.266.574 921.694 42.372 0 2.230.640
31/12/2020 Greece Romania Other Eliminations Total
Assets 57.644.717 40.877.505 578.555 (19.856.307) 79.244.470
Liabilities 23.374.060 18.481.377 1.242.505 (1.222.283) 41.875.659
Capital expenditures (1/1-30/6/2020) 732.693 570.058 0 0 1.302.750
Depreciation (1/1-30/6/2020) 1.182.764 880.088 18.538 0 2.081.390

7. 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.

8. Revenues

Α. Revenues by category

THE GROUP THE COMPANY
01/01-
30/6/2021
01/01-
30/6/2020
01/01-
30/6/2021
01/01-
30/6/2020
Sales of goods 11.527.474 12.446.055 0 0
Rendering of services 18.560.106 16.147.348 611.946 549.832
Sales of merchandise 4.641.265 5.059.448 0 0
Total 34.728.845 33.652.850 611.946 549.832

Β. Revenues by geographical region

THE GROUP THE COMPANY
01/01-
30/6/2021
01/01-
30/6/2020
30/6/2021 30/6/2020
West Europe 440.423 1.058.957 0 0
Central & Eastern Europe 34.133.740 32.307.228 611.946 549.832
Asia & Africa 154.681 286.665 0 0
Total 34.728.845 33.652.850 611.946 549.832

9. Cost of sales

THE GROUP THE COMPANY
01/01-
30/6/2021
01/01-
30/6/2020
30/6/2021 30/6/2020
Employee compensation and expenses 3.205.655 3.004.087 0 0
Cost of inventories recognized as expense 5.853.580 6.580.304 0 0
Cost of services 12.363.536 10.926.315 0 0
Cost of merchandise 3.241.440 3.230.140 0 0
Third party fees 871.615 603.023 0 0
Utilities and maintenance expenses 746.847 804.457 0 0
Rentals from property and machinery 104.952 108.673 0 0
Tax and duties 55.441 59.700 0 0
Transportation expenses 10.373 8.917 0 0
Other consumable materials 613.109 624.944 0 0
Depreciation and amortisation 1.580.233 1.547.734 0 0
Other expenses 134.158 170.574 0 0
Total 28.780.939 27.668.867 0 0

10. Net Finance Costs

THE GROUP THE COMPANY
01/01-
30/6/2021
01/01-
30/6/2020
01/01-
30/6/2021
01/01-
30/6/2020
Interest income 86 1.180 772 1.030
Dividend income * 45 0 1.070.045 2.500.000
Financial income 131 1.180 1.070.818 2.501.030
Interest expense 529.518 614.387 1.544 1.678
Commissions of letters of guarantee 76.425 53.911 0 0
Losses from foreign exchange differences) 106.130 118.476 0 0
Other financial expenses 6.427 17.808 1.095 637
Finance costs 718.500 804.583 2.639 2.316
Net finance costs recognised in profit or loss (718.369) (803.403) 1.068.179 2.498.714

*It concerns the distribution of dividends from the Group's activity in Romania through our subsidiary TERRANE LTD in Cyprus.

11. Earnings / (losses) per share

A. Basic earnings or basis (losses) per share

All shares of the Company are ordinary. 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.

THE GROUP
30/6/2021 30/6/2020
Profits / (losses) attributable to the owners of the
Company
(27.481) 213.997

B. Weighted-average number of ordinary shares

2021 2020
Issued ordinary shares at 1 January 20.578.374 20.578.374
Weighted - average number of ordinary shares
at 30th June
20.578.374 20.578.374

C. Earnings per share

2021 2020
Profit / (loss) per share (0,0013) 0,0104

12. Income taxes

THE GROUP THE COMPANY
01/01-
30/6/2021
01/01-
30/6/2020
30/6/2021 30/6/2020
Current tax expense
Current year income tax (241.813) (164.835) 0 0
Adjustment for prior years (10.225) (155.343) 0 0
(252.038) (320.179) 0 0
Deferred taxation
Origination and reversal of temporary differences 69.572 74.129 1.634 (3.504)
69.572 74.129 1.634 (3.504)
Total (182.466) (246.050) 1.634 (3.504)

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

Foreign currency translation differences amounting to (€ 212.633) recognized in OCI for the period 1/1 - 30/06/2021 (1/1 - 30/6/2020: € 270.295) mainly pertain to foreign currency translation differences arising from conversion of the financial statements of the Group subsidiaries in Romania («S.C. INFORM LYKOS S.A.», «COMPAPER CONVERTING S.A.», «NEXT DOCS ECM EXPERT S.R.L.» and «NEXT DOCS CONFIDENTIAL S.R.L.») and in Albania («INFORM ALBANIA SH.P.K.»), from functional currency to the financial statements presentation currency (Euro).

14. 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 2020 52.275.308 52.654.934 6.525.639 112.535 111.568.416
Additions 102.087 729.083 92.041 207.501 1.130.712
Disposals / other transfers 0 (16.593) (676.864) (213.759) (907.216)
Reclassifications 17.232 (19.081) 1.849 0 (0)
Revaluation 661.984 0 0 0 661.984
Transfers 0 1.849 0 (1.849) 0
Effect of movements in exchange rates (354.076) (268.075) (6.636) (1.503) (630.290)
Balance at 31 December 2020 52.702.534 53.082.117 5.936.029 102.925 111.823.605
Balance at 1 January 2021 52.702.534 53.082.117 5.936.029 102.925 111.823.605
Additions 21.544 474.293 57.877 16.335 570.049
Disposals 0 (105.747) 0 (2.229) (107.976)
Acquisitions through business combinations 0 296 0 0 296
Effect of movements in exchange rates (218.260) (161.549) (2.838) (833) (383.480)
Balance at 30 June 2021 52.505.819 53.289.410 5.991.068 116.198 111.902.494
Accumulated depreciation and impairment
losses
Balance at 1 January 2020 20.510.330 39.446.543 6.009.416 0 65.966.290
Depreciation 524.164 2.282.805 144.394 0 2.951.362
Disposals 0 (4.636) (676.864) 0 (681.500)
Reclassifications 10.248 (10.248) 0 0 0
Effect of movements in exchange rates (37.545) (173.106) (4.315) 0 (214.966)
Balance at 31 December 2020 21.007.197 41.541.358 5.472.631 0 68.021.186
Balance at 1 January 2021 21.007.197 41.541.358 5.472.631 0 68.021.186
Depreciation 366.005 1.117.725 66.000 0 1.549.729
Acquisitions through business combinations 0 60 0 0 60
Disposals 0 (50.173) 0 0 (50.173)
Effect of movements in exchange rates (25.184) (110.583) (1.957) 0 (137.723)
Balance at 30 June 2021 21.348.018 42.498.387 5.536.673 0 69.383.079
Carrying amounts
Balance at 31 December 2020 31.695.337 11.540.759 463.398 102.925 43.802.419
Balance at 30 June 2021 31.157.801 10.791.022 454.394 116.198 42.519.415
THE COMPANY
Land and
buildings
Plant and
equipment
Fixtures and
fittings
Under
construction
Total
Cost
Balance at 1 January 2020 225.196 33.268 249.614 0 508.078
Additions 0 28.429 0 0 28.429
Revaluation (5.000) 0 0 0 (5.000)
Balance at 31 December 2020 220.196 61.697 249.614 0 531.507
Balance at 1 January 2021 220.196 61.697 249.614 0 531.507
Additions 48.683 48.683
Balance at 30 June 2021 220.196 110.380 249.614 0 580.190
Accumulated depreciation and impairment
losses
Balance at 1 January 2020 183.478 10.198 248.333 0 442.008
Depreciation 228 15.410 282 0 15.920
Balance at 31 December 2020 183.706 25.608 248.615 0 457.928
Balance at 1 January 2021 183.706 25.608 248.615 0 457.928
Depreciation 114 11.999 141 12.254
Balance at 30 June 2021 183.820 37.606 248.756 0 470.182
Carrying amounts
Balance at 31 December 2020 36.490 36.089 999 0 73.578
Balance at 30 June 2021 36.376 72.774 858 0 110.008

B. Leased machinery

The Group leases machinery in Greece and Romania. At 30/6/2021 the net carrying amount of leased equipment was € 2.794.921 (2020: € 3.201.305). The value of the leased equipment is a guarantee of the relevant leasing obligations.

C. Assets with rights of use

The Group leases assets with rights of use (mainly means of transport) in Greece and Romania. Their value on 30/6/2021 amounts € 540.208 (2020: 556.907) and is a guarantee of the related leasing liabilities.

D. Guarantees

There are no encumbrances on the Group's fixed assets in order to cover loan liabilities.

15. Intangible assets and goodwill

A. Reconcialiation of carrying amount

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

THE GROUP
Goodwill Software,
Patents,
licenses
Development
costs
Customer
Relationship
Total
Cost
Balance at 1 January 2020 7.211.515 15.653.784 1.413.450 5.503.561 29.782.310
Additions 0 450.647 0 0 450.647
Acquisitions - internally developed 0 187.717 247.595 0 435.312
Disposals 0 (2.306.580) 0 0 (2.306.580)
Effect of movements in exchange rates (4.333) (36.393) (3.381) (49.402) (93.509)
Balance at 31 December 2020 7.207.181 13.949.175 1.657.664 5.454.159 28.268.180
Balance at 1 January 2021 7.207.181 13.949.175 1.657.664 5.454.159 28.268.180
Additions 0 106.044 0 0 106.044
Acquisitions through business combinations * 936.177 271.000 0 0 1.207.177
Acquisitions - internally developed 0 143.354 84.256 0 227.610
Effect of movements in exchange rates (2.673) (25.058) (3.206) (30.478) (61.415)
Balance at 30 June 2021 8.140.685 14.444.515 1.738.714 5.423.682 29.747.595
Accumulated amortisation and impairment
losses
Balance at 1 January 2020 4.017.437 13.815.689 840.421 88.996 18.762.543
Amortization 0 614.783 209.816 398.995 1.223.595
Disposals 0 (2.306.580) 0 0 (2.306.580)
Effect of movements in exchange rates 0 (32.903) (561) (2.813) (36.278)
Balance at 31 December 2020 4.017.437 12.090.989 1.049.677 485.178 17.643.281
Balance at 1 January 2021 4.017.437 12.090.989 1.049.677 485.178 17.643.281
Amortization 0 368.089 114.469 198.353 680.911
Acquisitions through business combinations 0 89.197 0 0 89.197
Effect of movements in exchange rates 0 (21.802) (847) (3.502) (26.151)
Balance at 30 June 2021 4.017.437 12.526.473 1.163.298 680.029 18.387.238
Carrying amounts
Balance at 31 December 2020 3.189.744 1.858.186 607.988 4.968.981 10.624.899
Balance at 30 June 2021 4.123.248 1.918.042 575.416 4.743.653 11.360.358

* It concerns assets acquired through business combinations during the period presented. (see note 15 (B)).

THE COMPANY
Software,
Patents,
licenses
Development
costs
Total
Cost
Balance at 1 January 2020 1.291.284 0 1.291.284
Additions 11.500 0 11.500
Balance at 31 December 2020 1.302.784 0 1.302.784
Balance at 1 January 2021 1.302.784 0 1.302.784
Additions 0 0 0
Balance at 30 June 2021 1.302.784 0 1.302.784
Accumulated amortisation and impairment losses
Balance at 1 January 2020 1.152.946 0 1.152.946
Amortization 37.301 0 37.301
Balance at 31 December 2020 1.190.247 0 1.190.247
Balance at 1 January 2021 1.190.247 0 1.190.247
Amortization 17.317 0 17.317
Balance at 30 June 2021 1.207.564 0 1.207.564
Carrying amounts
Balance at 31 December 2020 112.538 0 112.538
Balance at 30 June 2021 95.221 0 95.221

B. Acquisitions through business combinations

During the current period and specifically on February 10, 2021, the Group through the parent company signed an agreement for the acquisition of a majority stake of 56.5% of the share capital and at the same time the acquisition of control of the Cypriot company CLOUDFIN LTD at a price of 1 million euro.

The goodwill from CLOUDFIN LTD acquisition has been recognized on a provisional basis as follows:

CLOUDFIN
LTD
Acquisition price (56,5%) 1.017.000
Net assets acquired 143.050
Non – controlling interests (62.227)
Provisional Goodwill 936.177

Τhe procedure of determining the Purchase Price Allocation in accordance with IFRS 3 "Business Combinations" will be finalized within 12 monthsfrom the acquisition date. Accordingly, the provisional fair values of the assets acquired and liabilities assumed as at 10.02.2021 are as follows:

CLOUDFIN
LTD
Property, plant and equipment 217
Intangible assets 177.286
Trade receivables 43.468
Cash and cash equivalents 10.843
Current income tax liabilities (1.302)
Trade payables (6.832)
Other payables (6.625)
Defreed income (74.004)
Net assets and liabilities 143.050

16. Trade and other receivables

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Trade receivables 14.851.865 12.851.612 0 0
Minus: Allowance for doubtful accounts (1.191.823) (1.194.714) 0 0
Total trade receivables 13.660.043 11.656.898 0 0
Trade receivables due from related parties 809.253 535.254 1.434.036* 1.208.667*
Total trade receivables due from related
parties 809.253 535.254 1.434.036 1.208.667
Debtors - Prepayments to creditors 90.221 94.829 0 0
Personnel prepayments and loans 87.615 84.502 0 581
VAT and other Tax related receivables 33.859 29.105 0 0
Deffered expenses 461.192 326.530 83 2.508
Other non-financial receivables and assets 123.634 40.519 0 0
Other receivables - non-financial instruments 796.521 575.486 83 3.089
Accruals 153.504 141.130 0 0
Other financial receivables and assets 85.596 111.674 0 0
Other receivables - financial instruments 239.099 252.804 0 0
Other receivables 1.035.620 828.290 83 3.089
Total 15.504.915 13.020.442 1.434.119 1.211.756
Non-current 27.741 27.741 0 0
Current 15.477.174 12.992.701 1.434.119 1.211.756
15.504.915 13.020.442 1.434.119 1.211.756

* In this item, it is included an amount of € 1.000.000 which concerns the distribution of dividends from the Group's operations in Romania through our subsidiary TERRANE LTD in Cyprus.

17. Cash and cash equivalents

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Cash at hand 22.767 30.626 16.135 23.849
Short term bank balances 2.077.017 5.009.119 891.679 710.734
Total 2.099.783 5.039.745 907.814 734.583

The Group does not hold deposits pledged to secure any obligation.

18. Loans and borrowings

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Non-current liabilities
Secured bank loans 3.737.052 3.658.993 0 0
Unsecured bank loans 1.800.000 3.300.000 0 0
Bonds 7.475.000 8.062.500 0 0
Finance lease liabilities 1.944.957 2.541.003 53.783 23.332
14.957.009 17.562.496 53.783 23.332
Current liabilities
Secured bank loans 3.124.702 1.399.743 0 0
Unsecured bank loans 2.015.889 2.022.404 0 0
Bonds 2.025.000 1.437.500 0 0
Finance lease liabilities 1.390.172 1.217.209 20.245 13.642
8.555.763 6.076.856 20.245 13.642

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

Lender/Bank
Currency
interest rate
maturity
Pledge type
amount
Secured bank loans
6.861.755
Robor 3m +
Pledge on
RON/EUR
2% / Euribor
2022
receivables
1.386.526
3m + 3,25%
Robor 3m +
Pledge on
EUR
2024
3.954.325
2,9%
receivables
Robor 3m +
Pledge on
EUR
2024
1.520.904
2,9%
receivables
Unsecured bank loans
3.815.889
Euribor 6m +
EUR
2021
-
2.000.000
3,85%
1Y Euribor +
EUR
2021
-
15.889
3,5%
Euribor 1m +
EUR
2023
-
1.800.000
3,6%
Bonds
9.500.000
Euribor 6m +
EUR
2025
-
3.500.000
2,5%
Euribor 3m +
EUR
2027
-
6.000.000
3,2%
Finance lease liabilities
3.335.129
Pledge on
6%
2021
leased
268.595
EUR
equipment
Pledge on
5%
2023
leased
209.738
EUR
equipment
Pledge on
4%
2023
leased
838.105
EUR
equipment
Pledge on
0%
2023
leased
8.569
EUR
equipment
Pledge on
2%
2024
leased
543.966
EUR
equipment
Pledge on
Euribor 1y +
2024
leased
14.577
3,5% > 3,99%
EUR
equipment
Pledge on
5%
2025
leased
307.322
EUR
equipment
Pledge on
Euribor 1y +
2025
leased
24.635
3,5% > 3,99%
EUR
equipment
Pledge on
5%
2025
leased
44.738
EUR
equipment
Pledge on
2%
2026
leased
534.677
EUR
equipment
Nominal Year of Carrying
less than 1 year
130.852
IFRS 16
more than 1 year 409.356
23.512.772

19. Trade and other payables

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Trade payables 12.344.365 11.630.725 88.815 59.923
Accrued expenses 1.248.703 660.460 0 0
Trade payables 13.593.068 12.291.185 88.815 59.923
Other trade payables due to related parties 628.225 361.496 702.784 216.530
Trade payables due to related parties 628.225 361.496 702.784 216.530
Social security 256.102 410.212 12.203 25.615
Wages and salaries payable 182.075 159.169 0 0
Accruals - personnel related 184.422 106.187 19.134 0
VAT payable and other taxes 979.089 683.355 141.318 129.062
Other non-financial payables 157.986 38.963 158.011 38.976
Other payables - non-finanacial instruments 1.759.675 1.397.886 330.666 193.652
Dividends payable 845.966 47.358 822.118 23.631
Accruals (42.352) 221.999 (256.299) 0
Other financial payables 12.739 87.262 0 0
Other payables - financial instruments 816.353 356.619 565.820 23.631
Other payables 2.576.028 1.754.505 896.485 217.284
Total 16.797.321 14.407.185 1.688.085 493.737
Non current 16.883 16.883 16.883 16.883
Current 16.780.437 14.390.302 1.671.202 476.854
16.797.321 14.407.185 1.688.085 493.737

20. 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 30/06/2021:

Company Country Participation
percentage
Consolidation
method
Participation
relationship
INFORM P. LYKOS HOLDINGS S.A. Greece Parent - Parent
INFORM LYKOS (HELLAS) S.A. Greece 100,00% Full Direct
INFORM ALBANIA Sh.p.k Albania 75,50% Full Direct
TERRANE LTD Cyprus 100,00% Full Direct
CLOUDFIN LTD Cyprus 56,50% Full Direct
CLOUDFIN SINGLE MEMBER S.A. Greece 56,50% Full Indirect
S.C. INFORM LYKOS S.A. Romania 99,99% Full Indirect
COMPAPER CONVERTING S.A. Romania 97,44% Full Indirect
NEXT DOCS ECM EXPERT S.R.L. Romania 80,60% Full Indirect
NEXT DOCS CONFIDENTIAL S.R.L. Romania 80,00% Full Indirect
Investments in subsidiaries 30/06/2021 31/12/2020
TERRANE LTD 20.402.500 20.402.500
INFORM LYKOS (HELLAS) S.A. 14.295.632 14.295.632
CLOUDFIN LTD 1.017.000 0
INFORM ALBANIA Sh.p.k 317.000 317.000
36.032.132 35.015.132

On February 10, 2021, INFORM P. LYKOS SA HOLDINGS signed an agreement for the acquisition of a majority stake of 56,5% of the share capital and at the same time the acquisition of control of the Cypriot company CLOUDFIN LTD at a price of 1 million euro. The company CLOUDFIN SINGLE MEMBER S.A. was established on June 7, 2021 with CLOUDFIN LTD as the sole shareholder.

On February 18, 2021, INFORM LYKOS Romania (INFORM LYKOS S.A.), a subsidiary of INFORM P. LYKOS SA HOLDINGS, increased its majority stake in the share capital of NEXT DOCS ECM EXPERT S.R.L. and NEXT DOCS CONFIDENTIAL S.R.L., who are already members of the Group. Specifically, INFORM LYKOS Romania now owns 80,59% of NEXT DOCS ECM EXPERT S.R.L. and 80% of NEXT DOCS CONFIDENTIAL S.R.L. The purchase price of 15,52% and 14,55% respectively of the above mentioned companies amounted to 1,3 million euros. This transaction was recognized as changes in ownership interests in subsidiaries without change of control and the difference of 1,2 million euro between fair value of the consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary was recorded in equity.

21. Non - controlling interests (NCI)

The Group does not include subsidiary with material non-controlling interests

22. Dividend distribution

No dividends were paid by the Parent Company of the Group during the period presented. The Ordinary General Meeting of June 18, 2021 unanimously approved the distribution of profits proposed by the Board of Directors of the fiscal year 01.01.2020 to 31.12.2020. Specifically, it was decided to pay a dividend of € 823.134,96, ie € 0,04 per share before withholding tax (€ 0,038 net per share, dividend). The cut-off date for dividend entitlement was set at 01 July 2021 and the starting date for dividend payment was 8 July 2021.

23. Commitments

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

24. Contingencies

There are no judicial or legal claims that are expected to affect significantly the financial position of the Group as at 30/06/2021.

For the Greek companies of the Group, for the years 2011-2019, an unqualified conclusion formed from the conducted tax audits, in accordance with the provisions of Article 82, par. 5, of Law 2238/1994 and Article 65a of Law 4174/2013. Tax audit regarding fiscal year 2020 is in progress although the Group Management does not expect a significant tax burden when the audit is completed and for this reason has not recognized a relevant provision.

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 Domicile Tax
unaudited
years
INFORM P. LYKOS HOLDINGS S.A. Greece 2020
INFORM LYKOS (HELLAS) S.A. Greece 2020
INFORM ALBANIA SH.P.K. Albania 2011-2020
TERRANE LTD Cyprus 2015-2020
CLOUDFIN L.T.D. Cyprus 2015-2020
S.C. INFORM LYKOS S.A. Romania 2005-2020
COMPAPER CONVERTING S.A. Romania 2005-2020
NEXT DOCS ECM EXPERT S.R.L. Romania 2008-2020
NEXT DOCS CONFIDENTIAL S.R.L. Romania 2010-2020

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

Encumbrances

There are no encumbrances on the Group's fixed assets in order to cover loan obligations.

25. Related parties

The operational and investment activity of the Group creates certain earnings, assets or liabilities that concern except others related companies or individuals 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 transactions between the Company and the related parties during the reporting periods:

Sales of goods / services

THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Subsidiaries 0 0 611.946 549.832
Other related parties 441.963 378.982 0 0
Total 441.963 378.982 611.946 549.832

Purchases of goods / services

THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Subsidiaries 0 0 0 0
Other related parties 1.171.718 2.048.456 0 0
Total 1.171.718 2.048.456 0 0

Granted loans

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Subsidiaries 0 0 180.000 0
Total 0 0 180.000 0

Balances of receivables from sales of goods / services

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Subsidiaries 0 0 1.434.195 1.208.667
Other related parties 809.253 535.254 0 0
Total 809.253 535.254 1.434.195 1.208.667

Balances of liabilities from purchases of goods / services

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Subsidiaries 0 0 702.784 216.530
Other related parties 628.224 361.496 0 0
Total 628.224 361.496 702.784 216.530
Income from dividends
THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Subsidiaries 0 0 1.070.000 2.500.000
Other related parties 45 0 0 0
Total 45 0 1.070.000 2.500.000

Remuneration of key executives

THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Key executives 301.828 278.368 301.828 278.368
Total 301.828 278.368 301.828 278.368

Balances of receivables from key executives

THE GROUP THE COMPANY
30/6/2021 31/12/2020 30/6/2021 31/12/2020
Key executives 0 0 0 0
Total 0 0 0 0

Balances of liabilities to key executives

THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Key executives 0 0 0 0
Total 0 0 0 0

Remuneration of non-executive members of the Board of Directors

THE GROUP THE COMPANY
30/6/2021 30/6/2020 30/6/2021 30/6/2020
Non-executive members of the Board of Directors 31.983 34.784 31.983 34.784
Total 31.983 34.784 31.983 34.784

26. Subsequent events

No event has taken place after 30/06/2021, which may have a significant impact on the Group's financial position or operation.

27. Changes in accounting principles

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01/01/2021.

Amendments to IFRS 4 "Insurance Contracts" – deferral of IFRS 9 (effective for annual periods starting on or after 01/01/2021)

In June 2020, the IASB issued amendments that declare deferral of the date of initial application of IFRS 17 by two years, to annual periods beginning on or after January 1, 2023. As a consequence, the IASB also extended the fixed expiry date for the temporary exemption from applying IFRS 9 "Financial Instruments" in IFRS 4 "Insurance Contracts", so that the entities are required to apply IFRS 9 for annual periods beginning on or after January 1, 2023. The amendments do not affect the consolidated Financial Statements.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: "Interest Rate Benchmark Reform – Phase 2" (effective for annual periods starting on or after 01/01/2021)

In August 2020, the IASB has finalized its response to the ongoing reform of IBOR and other interest benchmarks by issuing a package of amendments to IFRS Standards. The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. More specifically, the amendments relate to how a company will account for changes in the contractual cash flows of financial instruments, how it will account for a change in its hedging relationships as a result of the reform, as well as relevant information required to be disclosed. The amendments do not affect the consolidated Financial Statements.

New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union

The following new Standards, Interpretations 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.

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 starting on or after 01/01/2022)

In May 2020, the IASB issued a package of amendments which includes narrow-scope amendments to three Standards as well as the Board's Annual Improvements, which are changes that clarify the wording or correct minor consequences, oversights or conflicts between requirements in the Standards. More specifically:

  • Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

  • Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss.

  • Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making.

  • Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases.

The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have been adopted by the European Union with effective date of 01/01/2022.

Amendments to IFRS 16 "Leases": Covid-19 – Related Rent Concessions beyond 30 June 2021 (effective for annual periods starting on or after 01/04/2021)

In March 2021, the IASB issued amendments to the practical expedient of IFRS 16, that extend the application period by one year to cover Covid-19-related rent concessions that reduce only lease payments due on or before 30 June 2022. 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 17 "Insurance Contracts" (effective for annual periods starting on or after 01/01/2023)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments, which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The amendments are designed to reduce costs by simplifying some requirements in the Standard, make financial performance easier to explain, as well as ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required when applying the Standard for the first 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.

Amendments to IAS 1 "Classification of Liabilities as Current or Non-current" (effective for annual periods starting on or after 01/01/2023)

In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments include: (a) specifying that an entity's right to defer settlement must exist at the end of the reporting period; (b) clarifying that classification is unaffected by management's intentions or expectations about whether the entity will exercise its right to defer settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for classifying

liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued amendment to IAS 1, in response to the Covid-19 pandemic. 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 1 "Presentation of Financial Statements" (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The objective of these amendments is to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of the financial statements. More specifically, companies are required to disclose their material accounting policy information rather than their significant accounting policies. 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 8 "Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates" (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. 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 "Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction" (effective for annual periods starting on or after 01/01/2023)

In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account for deferred tax on transactions such as leases and decommissioning obligations – transactions for which companies recognise both an asset and a liability. In specified circumstances, companies are exempt from recognising deferred tax when they recognise assets or liabilities for the first time. The amendments clarify that the exemption does not apply and that companies are required to recognise deferred tax on such transactions. 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.

Koropi Attica, 06 August 2021

CHAIRMAN OF THE BOARD OF DIRECTORS & VICE CHAIRMAN OF THE BOARD OF DIRECTORS GROUP CEO

PANAGIOTIS SPYROPOULOS ILIAS KARANTZALIS I.D. No AI 579288 I.D. No AN 644777

MANAGING DIRECTOR OF THE GROUP CHIEF FINANCIAL OFFICER

EMMANOUIL KONTOS ALEXANDRA ADAM ID No AK 093427 ID No AE 118025

HEAD OF ACCOUNTING DEPARTMENT

ANASTASIOS TATOS ID No AM 556006 Registr. No of E.C. A' CLASS 9657

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