Intracom S.A. Holdings

Annual Report • Sep 21, 2015

INTRACOM HOLDINGS S.A.

Interim condensed financial statements

in accordance with International Accounting Standard 34

for the period 1 January to 31 March 2011

These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over this document.

INTRACOM HOLDINGS S.A. Interim condensed financial statements in accordance with IAS 34 31 March 2011

Contents Page

	Balance sheet	3
	Statement of comprehensive income	4
	Statement of changes in equity - Group	5
	Statement of changes in equity - Company	6
	Cash flow statement	7
1.	General Information	8
2.	Basis of preparation and accounting policies	8
3.	Financial risk management	12
4.	Critical accounting estimates and judgements	12
5.	Segment information	12
6.	Capital expenditure	13
7.	Investments in subsidiaries	14
8.	Available-for-sale financial assets	14
9.	Share capital	15
10.	Borrowings	15
11.	Finance income / (expenses) - net	16
12.	Income tax	16
13.	Earnings / (losses) per share	16
14.	Cash generated from operations	17
15.	Capital commitments	17
16.	Contingencies / Outstanding legal cases	17
17.	Related party transactions	19
18.	Post balance sheet events	20
19.	Subsidiaries	21

Balance sheet

ASSETS Note 31/3/2011 31/12/2010 31/3/2011 31/12/2010 Non-current assets Property, plant and equipment 6 355.056 362.394 24.998 25.425 Goodwill 68.387 68.387 - - Intangible assets 6 54.135 56.604 6 7 Investment property 6 68.193 68.368 65.546 65.768 Investments in subsidiaries 7 - - 250.098 250.098 Investments in associates 108.042 110.844 115.900 115.900 Available - for - sale financial assets 8 11.563 11.191 9.556 9.470 Deferred income tax assets 4.955 5.236 - - Long-term loans 9.479 8.706 9.479 8.706 Trade and other receivables 6.792 6.009 39 39 686.603 697.740 475.621 475.411 Current assets Inventories 37.102 44.166 - - Trade and other receivables 358.440 367.125 16.948 17.900 Construction contracts 15.974 12.374 - - Financial assets at fair value through profit or loss 210 187 - - Current income tax assets 8.589 10.166 - - Cash and cash equivalents 30.099 34.994 3.169 4.048 450.414 469.012 20.118 21.948 Total assets 1.137.016 1.166.752 495.739 497.359 EQUITY Capital and reserves attributable to the owners of the Company Share capital 9 187.567 187.567 187.567 187.567 Share premium 9 194.204 194.204 194.204 194.204 Other reserves 18.712 30.410 75.857 77.551 400.483 412.180 457.628 459.322 Non-controlling interests 38.571 40.637 - - Total equity 439.054 452.817 457.628 459.322 LIABILITIES Non-current liabilities Borrowings 10 153.033 158.328 13.524 13.699 Deferred income tax liabilities 2.843 3.089 1.138 1.140 Retirement benefit obligations 4.975 5.215 313 335 Grants 20.057 20.888 - - Derivative financial instruments 736 1.241 - - Provisions for other liabilities and charges 1.953 1.939 - - Trade and other payables 12.976 13.387 - - 196.575 204.087 14.976 15.174 Current liabilities Trade and other payables 277.862 291.457 7.728 7.456 Current income tax liabilities 4.622 5.175 - - Construction contracts 6.387 8.190 - - Borrowings 10 200.305 192.805 13.840 13.840 Grants 4.922 5.432 - - Provisions for other liabilities and charges 7.289 6.790 1.568 1.568 501.388 509.848 23.135 22.864 Total liabilities 697.963 713.935 38.111 38.038 Total equity and liabilities 1.137.016 1.166.752 495.739 497.359		Group	Company

Statement of comprehensive income

		Group		Company
	Note	1/1 - 31/3/2011	1/1/ - 31/3/2010	1/1 - 31/3/2011	1/1/ - 31/3/2010
Sales	5	132.481	139.417	532	819
Cost of goods sold		(114.976)	(122.754)	(438)	(696)
Gross profit		17.505	16.663	94	123
Other operating income		2.288	1.664	435	751
Other gains/ (losses) - net		(410)	(94)		- 54
Selling and research costs		(10.264)	(11.797)	(32)	(33)
Administrative expenses		(14.004)	(15.964)	(1.956)	(2.070)
Operating loss		(4.884)	(9.529)	(1.459)	(1.175)
Finance expenses	11	(6.001)	(3.850)	(354)	(187)
Finance income	11	255	298	116	204
Finance income /(expenses) - net		(5.745)	(3.552)	(237)	17
Share of losses of associates		(3.443)	(857)	-	-
Loss before income tax		(14.073)	(13.938)	(1.696)	(1.159)
Income tax expense	12	(583)	(2.022)		1 (30)
Loss for the period		(14.655)	(15.960)	(1.695)	(1.189)
Other comprehensive income :
Fair value gains / (losses) on available for sale financial assets , net of tax	8	286	(267)		1 (1)
Currency translation differences, net of tax		325	218		- -
Cash flow hedges		505	(764)		- -
Other comprehensive income for the period, net of tax		1.116	(813)		1 (1)
Total comprehensive income for the period		(13.539)	(16.773)	(1.694)	(1.190)
Loss attributable to:
Owners of the Company		(12.493)	(11.167)	(1.695)	(1.189)
Non-controlling interests		(2.162)	(4.793)		- -
		(14.655)	(15.960)	(1.695)	(1.189)
Total comprehensive income attributable to:
Owners of the Company		(11.677)	(11.649)	(1.694)	(1.190)
Non-controlling interests		(1.862)	(5.123)		- -
		(13.539)	(16.772)	(1.694)	(1.190)
Earnings per share for loss attributable to the owners of the Company
during the period (expressed in € per share)
Basic	13	(0,09)	(0,08)	(0,01)	(0,01)
Diluted	13	(0,09)	(0,08)	(0,01)	(0,01)

Statement of changes in equity - Group

	Attributable to the owners of the Company				Non-controlling	Total equity
		Note Share capital Other reserves		Retained earnings	interests
Balance at 1 January 2010		377.148	186.224	(120.177)	57.300	500.495
Loss for the period		-		- (11.167)	(4.793)	(15.960)
Fair value losses on available for sale financial assets		-	(166)		- (101)	(267)
Currency translation differences		-	92		- 127	218
Cash flow hedges		-	(408)		- (356)	(764)
Total comprehensive income for the period		-	(482)	(11.167)	(5.123)	(16.772)
Employees stock options scheme
- value of employee services		-		45	-	- 45
Distribution of treasury shares		1.112		- (989)	107	229
Share capital decrease by subsidiary		-		-	- (55)	(55)
Transfer		-	278	(278)		- -
		1.112	323	(1.267)		52 219
Balance at 31 March 2010		378.260	186.065	(132.611)	52.229	483.942
Balance at 1 January 2011		381.771	186.351	(155.942)	40.637	452.817
Loss for the period		-		- (12.493)	(2.162)	(14.655)
Fair value gains on available for sale financial assets		-	178		- 108	286
Currency translation differences		-	369		- (44)	325
Cash flow hedges		-	270		- 235	505
Total comprehensive income for the period		-	817	(12.493)	(1.862)	(13.539)
Disposal of subsidiaries	7	-	(10)	10	(225)	(225)
Transfer		-		- (21)		21 -
		-	(10)	(11)	(204)	(225)
Balance at 31 March 2011		381.771	187.158	(168.446)	38.571	439.054

Statement of changes in equity - Company

	Share capital	Other reserves	Retained earnings	Total equity
Balance at 1 January 2010	377.148	147.730	(56.617)	468.261
Loss for the period	-	-	(1.189)	(1.189)
Fair value losses on available for sale financial assets	-	(1)		- (1)
Total comprehensive income for the period	-	(1)	(1.189)	(1.190)
Distribution of treasury shares	1.112	-	(883)	229
	1.112	-	(883)	229
Balance at 31 March 2010	378.260	147.729	(58.689)	467.300
Balance at 1 January 2011	381.771	147.725	(70.174)	459.322
Loss for the period	-	-	(1.695)	(1.695)
Fair value gains on available for sale financial assets	-	1		- 1
Total comprehensive income for the period	-	1	(1.695)	(1.694)
Balance at 31 March 2011	381.771	147.726	(71.869)	457.628

Cash flow statement

		Group		Company
	Note	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Cash flows from operating activities
Cash generated from operations	14	16.495	(8.093)	410	(6.945)
Interest paid		(7.597)	(3.432)	(354)	(187)
Income tax received / (paid)		248	481	-	(1)
Net cash generated from operating activities		9.146	(11.044)	57	(7.133)
Cash flows from investing activities
Purchase of property, plant and equipment (PPE)		(16.352)	(13.160)	(37)	(1)
Purchase of investment property		(2)	(2)	(2)	(2)
Purchase of intangible assets		(5.465)	(7.480)	-	-
Proceeds from sale of PPE		171	2.560		- 1.344
Proceeds from sale of investment property			- 969		- 969
Proceeds from sale of intangible assets			941		- -
Share capital increase of subsidiary		-		-	- (2.000)
Acquisition of available - for - sale financial assets		(86)	-	(86)	-
Disposal of subsidiaries	7	151	29		- -
Interest received		149	208	10	114
Loans granted		(645)	-	(645)	-
Net cash from investing activities		(22.079)	(15.934)	(760)	423
Cash flows from financing activities
Proceeds from borrowings		5.566	14.260	-	8.900
Repayments of borrowings		(2.512)	(8.517)	-	-
Grants received		5.721	-	-	-
Repayments of finance leases		(737)	(1.132)	(175)	-
Net cash from financing activities		8.038	4.610	(175)	8.900
Net decrease in cash and cash equivalents		(4.895)	(22.368)	(879)	2.190
Cash and cash equivalents at beginning of period		34.994	64.641	4.048	10.146
Cash and cash equivalents at end of the period		30.099	42.273	3.169	12.336

Notes to the financial statements in accordance with International Financial Reporting Standards

1. General Information

INTRACOM Holdings S.A., with the distinctive title "INTRACOM HOLDINGS" was incorporated in Greece and its shares are traded in the Athens Stock Exchange.

Intracom Group operates, through the subsidiaries and associates, in developing products, providing services and undertaking complex, integrated and advanced technology projects in the telecommunications, defence, public administration, and banking & finance industries and has also activities in the construction sector and the telecommunications sector. The parent company operates as a holding company.

The Group operates in Greece, U.S.A, Bulgaria, Romania, as well as in other foreign countries.

The Company's registered office is at 19 km Markopoulou Ave., Peania Attikis, Greece. Its website address is www.intracom.com.

These interim condensed financial statements of the Group and the Company have been approved for issue by the Board of Directors on 30 May 2011.

2. Basis of preparation and accounting policies

These interim condensed financial statements consist of the stand alone financial statements of Intracom Holdings S.A. (the "Company") and the consolidated financial statements of the Company and its subsidiaries (the "Group") for the period 1/1 – 31/3/2011. They have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting".

These interim condensed financial statements must be examined together with the annual financial statements for the year 2010, as published on the Group's website www.intracom.com.

The accounting policies used for the preparation and the presentation of the interim condensed financial statements are consistent with those applied for the preparation and presentation of the annual financial statements of the Company and the Group for the financial year ended 31 December 2010. These interim condensed financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets at fair value through profit or loss and derivative financial instruments, which are carried at fair value.

Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning during the current financial year and subsequent years. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:

Standards and Interpretations effective for the current financial year

IAS 24 (Revised) "Related Party Disclosures"

This amendment attempts to reduce disclosures of transactions between government-related entities and clarify related-party definition. More specifically, it removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities, clarifies and simplifies the definition of a related party and requires the disclosure not only of the relationships, transactions

and outstanding balances between related parties, but of commitments as well in both the consolidated and the individual financial statements. This revision does not affect the Group's financial statements.

IAS 32 (Amendment) "Financial Instruments: Presentation"

This amendment clarifies how certain rights issues should be classified. In particular, based on this amendment, rights, options or warrants to acquire a fixed number of the entity's own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. This amendment is not relevant to the Group.

IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments"

This interpretation addresses the accounting by the entity that issues equity instruments to a creditor in order to settle, in full or in part, a financial liability. This interpretation is not relevant to the Group.

IFRIC 14 (Amendment) "The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction"

The amendments apply in limited circumstances: when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements. The amendments permit such an entity to treat the benefit of such an early payment as an asset. This interpretation is not relevant to the Group.

Amendments to standards that form part of the IASB's 2010 annual improvements project

The amendments set out below describe the key changes to IFRSs following the publication in May 2010 of the results of the IASB's annual improvements project. Unless otherwise stated the following amendments do not have a material impact on the Group's financial statements.

IFRS 3 "Business Combinations"

The amendments provide additional guidance with respect to: (i) contingent consideration arrangements arising from business combinations with acquisition dates preceding the application of IFRS 3 (2008); (ii) measuring non-controlling interests; and (iii) accounting for share-based payment transactions that are part of a business combination, including un-replaced and voluntarily replaced share-based payment awards.

IFRS 7 "Financial Instruments: Disclosures"

The amendments include multiple clarifications related to the disclosure of financial instruments.

IAS 1 "Presentation of Financial Statements"

The amendment clarifies that entities may present an analysis of the components of other comprehensive income either in the statement of changes in equity or within the notes.

IAS 27 "Consolidated and Separate Financial Statements"

The amendment clarifies that the consequential amendments to IAS 21, IAS 28 and IAS 31 resulting from the 2008 revisions to IAS 27 are to be applied prospectively.

IAS 34 "Interim Financial Reporting"

The amendment places greater emphasis on the disclosure principles that should be applied with respect to significant events and transactions, including changes to fair value measurements, and the need to update relevant information from the most recent annual report.

IFRIC 13 "Customer Loyalty Programmes"

The amendment clarifies the meaning of the term 'fair value' in the context of measuring award credits under customer loyalty programmes.

Standards and Interpretations effective from periods beginning on or after 1 January 2012 and have not been applied earlier by the Group

IFRS 9 "Financial Instruments" (effective for annual periods beginning on or after 1 January 2013)

IFRS 9 is the first Phase of the Board's project to replace IAS 39 and deals with the classification and measurement of financial assets and financial liabilities. The IASB intends to expand IFRS 9 in subsequent phases in order to add new requirements for impairment and hedge accounting. The Group is currently investigating the impact of IFRS 9 on its financial statements. The Group cannot currently early adopt IFRS 9 as it has not been endorsed by the EU. Only once approved will the Group decide if IFRS 9 will be adopted prior to 1 January 2013.

IAS 12 (Amendment) "Income Taxes" (effective for annual periods beginning on or after 1 January 2012)

The amendment to IAS 12 provides a practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model in IAS 40 "Investment Property". This amendment has not yet been endorsed by the EU.

IFRS 7 (Amendment) "Financial Instruments: Disclosures" – transfers of financial assets (effective for annual periods beginning on or after 1 July 2011)

This amendment sets out disclosure requirements for transferred financial assets not derecognised in their entirety as well as on transferred financial assets derecognised in their entirety but in which the reporting entity has continuing involvement. It also provides guidance on applying the disclosure requirements. This amendment has not yet been endorsed by the EU.

IFRS 13 "Fair Value Measurement" (Effective for annual periods beginning on or after 1 January 2013)

IFRS 13 provides new guidance on fair value measurement and disclosure requirements. These requirements do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. IFRS 13 provides a precise definition of fair value and guidance on fair value measurement and disclosure requirements for use across IFRSs. Disclosure requirements are enhanced and apply to all assets and liabilities measured at fair value, not just financial ones. This standard has not yet been endorsed by the EU.

Group of standards on consolidation and joint arrangements (effective for annual periods beginning on or after 1 January 2013)

The IASB has published five new standards on consolidation and joint arrangements: IFRS 10, IFRS 11, IFRS 12, IAS 27 (amendment) and IAS 28 (amendment). These standards are effective for annual periods beginning on or after 1 January 2013. Earlier application is permitted only if the entire "package" of five standards is

adopted at the same time. These standards have not yet been endorsed by the EU. The Group is in the process of assessing the impact of the new standards on its consolidated financial statements. The main provisions are as follows:

IFRS 10 "Consolidated Financial Statements"

IFRS 10 replaces all of the guidance on control and consolidation in IAS 27 and SIC 12. The new standard changes the definition of control for the purpose of determining which entities should be consolidated. This definition is supported by extensive application guidance that addresses the different ways in which a reporting entity (investor) might control another entity (investee). The revised definition of control focuses on the need to have both power (the current ability to direct the activities that significantly influence returns) and variable returns (can be positive, negative or both) before control is present. The new standard also includes guidance on participating and protective rights, as well as on agency / principal relationships.

IFRS 11 "Joint Arrangements"

IFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form. The types of joint arrangements are reduced to two: joint operations and joint ventures. Proportional consolidation of joint ventures is no longer allowed. Equity accounting is mandatory for participants in joint ventures. Entities that participate in joint operations will follow accounting much like that for joint assets or joint operations today. The standard also provides guidance for parties that participate in joint arrangements but do not have joint control.

IFRS 12 "Disclosure of Interests in Other Entities"

IFRS 12 requires entities to disclose information, including significant judgments and assumptions, which enable users of financial statements to evaluate the nature, risks and financial effects associated with the entity's interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. An entity can provide any or all of the above disclosures without having to apply IFRS 12 in its entirety, or IFRS 10 or 11, or the amended IAS 27 or 28.

IAS 27 (Amendment) "Separate Financial Statements"

This Standard is issued concurrently with IFRS 10 and together, the two IFRSs supersede IAS 27 "Consolidated and Separate Financial Statements". The amended IAS 27 prescribes the accounting and disclosure requirements for investment in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. At the same time, the Board relocated to IAS 27 requirements from IAS 28 "Investments in Associates" and IAS 31 "Interests in Joint Ventures" regarding separate financial statements.

IAS 28 (Amendment) "Investments in Associates and Joint Ventures"

IAS 28 "Investments in Associates and Joint Ventures" replaces IAS 28 "Investments in Associates". The objective of this Standard is to prescribe the accounting for investments in associates and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures, following the issue of IFRS 11.

Roundings

Differences between amounts presented in the financial statements and corresponding amounts in the notes result from roundings.

3. Financial risk management

There have been not any material changes in the financial risk management of the Group or any material changes in fair value measurement since 31 December 2010.

4. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

In preparing these interim condensed financial statements, the accounting estimates and judgements made by management were consistent to those applied to the annual financial statements of the Company and the Group for the year ended 31 December 2010.

5. Segment information

At 31 March 2011, the Group is organised into five main segments:

• (1) Telecommunications systems
• (2) Technology solutions for government and banking sector
• (3) Defence systems
• (4) Construction
• (5) Telecom operations

The segment information for the period 1/1 – 31/3/2011 is as follows:

	Telecommunications systems	Technology solutions for government and banking sector	Defence systems	Construction	Telecom operations	Other	Total
Total sales per segment	1.241	31.678	13.707	33.231	54.576		556 134.989
Inter-segment sales	(12)	(982)	(13)	(988)	(75)	(438)	(2.508)
Sales from external customers	1.229	30.696	13.694	32.242	54.502		118 132.481
Earnings before interest, tax, depreciation and amortisation (EBITDA)	(72)	(1.384)	(680)	2.597	15.037	(1.013)	14.486

The segment information for the period 1/1 – 31/3/2010 is as follows:

	Telecommunications systems	Technology solutions for government and banking sector	Defence systems	Construction	Telecom operations	Other	Total
Total sales per segment	1.322	30.857	10.135	51.196	47.732		837 142.080
Inter-segment sales	-	(720)	(1)	(1.717)	(59)	(166)	(2.663)
Sales from external customers	1.322	30.138	10.134	49.478	47.674		671 139.417
Earnings before interest, tax, depreciation and amortisation (EBITDA)	59	(548)	305	2.425	11.185	(2.629)	10.799

The activities of the parent company Intracom Holdings SA are included under the column "Other".

The reconciliation of earnings before interest, tax, depreciation and amortization (EBITDA) to losses before tax is as follows:

	1/1 - 31/3/2011	1/1 - 31/3/2010
Earnings before interest, tax, depreciation and
amortisation (EBITDA)	14.486	10.799
Depreciation	(19.370)	(20.328)
Finance cost - net	(5.745)	(3.552)
Loss from associates	(3.443)	(857)
Loss before income tax	(14.073)	(13.937)

Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would also be available to unrelated third parties.

6. Capital expenditure

Group

	Property, plant and equipment	Intangible assets	Investment property	Total
Net book amount at 1 January 2010	375.496	64.831	57.618	497.945
Additions	9.327	7.396	-	16.723
Disposals	(1.587)	(941)		- (2.528)
Transfer from assets classified as held for sale	-	-	7.369	7.369
Depreciation charge	(11.624)	(8.540)	(164)	(20.328)
Transfer	(203)	-	203	-
Other movement	63	2	181	247
Net book amount at 31 March 2010	371.472	62.749	65.207	499.428

	Property, plant and equipment	Intangible assets	Investment property	Total
Net book amount at 1 January 2011	362.394	56.604	68.368	487.367
Additions	4.381	5.461	2	9.844
Disposals/write-offs	(406)		- -	(406)
Depreciation charge	(11.280)	(7.926)	(164)	(19.370)
Other movement	(33)	(3)	(13)	(50)
Net book amount at 31 March 2011	355.056	54.135	68.193	477.385

Company

	Property, plant and equipment	Intangible assets	Investment property	Total
Net book amount at 1 January 2010	29.190	8	64.009	93.207
Additions	1	-	2	3
Depreciation charge	(299)	(1)	(217)	(517)
Transfer	(97)		97 -	-
Net book amount at 31 March 2010	28.795	7	63.891	92.693
	Property, plant and equipment	Intangible assets	Investment property	Total
Net book amount at 1 January 2011	25.425	7	65.768	91.200
Additions	37		- 2	40
Disposals/write-offs	(226)		- -	(226)
Depreciation charge	(239)	(1)	(224)	(465)
Net book amount at 31 March 2011	24.998	6	65.546	90.550

7. Investments in subsidiaries

Period 1/1 – 31/3/2011

On 5 January 2011 the subsidiary company Intrakat S.A. disposed of its entire holding (51%) in the subsidiary company KEPA Attikis S.A. for the consideration of €214. The activities of the company as well as the result from the disposal were not material for the Group. This transaction resulted in a decrease of the non-controlling interests by €225, while the net cash inflow arose to €151.

8. Available-for-sale financial assets

	Group		Company
	31/3/2011	31/12/2010	31/3/2011	31/12/2010
Balance at the beginning of the period	11.191	12.562	9.470	9.520
Additions	86	52	86	-
Fair value gains / (losses)	286	(1.376)	1	(5)
Impairment	-	(46)		- (46)
Balance at the end of the period	11.563	11.191	9.557	9.470

9. Share capital

	Number of shares	Share capital	Share premium	Treasury shares	Total
Balance at 1 January 2010	131.945.181	187.567	194.204	(4.622)	377.148
Treasury shares	1.080.815	-		- 4.622	4.622
Balance at 31 December 2010	133.025.996	187.567	194.204	-	381.771
Balance at 1 January 2011	133.025.996	187.567	194.204	-	381.771
Balance at 31 March 2011	133.025.996	187.567	194.204	-	381.771

On 31 December 2010 and on 31 March 2011 the Company's share capital amounts to €187.567 divided into 133.025.996 shares with a nominal value of €1,41 each.

During 2010 the Company granted all of its treasury shares and does not possess any treasury shares since 31 December 2010.

10. Borrowings

	Group		Company
	31/3/2011	31/12/2010	31/3/2011	31/12/2010
Bank loans	176.978	174.148	16.196	16.196
Finance lease liabilities	159.947	17.112	11.168	11.343
Bond loans	16.413	159.873	-	-
Total borrowings	353.338	351.133	27.364	27.539
Non-current borrowings	153.033	158.328	13.524	13.699
Current borrowings	200.305	192.805	13.840	13.840
	353.338	351.133	27.364	27.539

11. Finance income / (expenses) - net

	Group		Company
	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Finance expenses
- Bank borrowings	(2.466)	(1.832)	(203)	(187)
- Bond loans	(1.847)	(1.671)	-	-
- Finance leases	(243)	(102)	(151)	-
- Letters of credit and related costs	(662)	(463)	-	-
- Other	(866)	(615)	-	-
- Net foreign exchange gains	85	832	-	-
Total of finance expenses	(6.001)	(3.850)	(354)	(187)
Finance income
- Interest income	142	200	10	114
- Interest income from loans granted	106	98	106	90
- Other	7	-	-	-
Total of finance income	255	298	116	204
Finance (expenses) / income - net	(5.745)	(3.552)	(237)	17

12. Income tax

	Group		Company
	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Current tax	485	1.608	-	-
Deferred tax	98	414	(1)	30
Total	583	2.022	(1)	30

On 31 March 2011 the new tax law 3943/2011 was implemented, according to which the corporate income tax rate of legal entities is set at 20% for financial years beginning on 1 January 2011.

13. Earnings / (losses) per share

Basic / diluted earnings / (losses) per share

	Group		Company
	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Loss attributable to equity holders of the Company	(12.493)	(11.167)	(1.695)	(1.189)
Weighted average number of ordinary shares in issue (in 000s)	133.026	131.945	133.026	131.945
Basic/diluted earnings/(losses) per share (€ per share)	(0,09)	(0,08)	(0,01)	(0,01)

14. Cash generated from operations

	Group		Company
	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Loss for the period	(14.655)	(15.960)	(1.695)	(1.189)
Adjustments for:
Tax	583	2.022	(1)	30
Depreciation of PPE Amortisation of intangible assets	11.280 7.926	11.624 8.540	239 1	299 1
Depreciation of investment property	164	164	224	217
Loss on sale of PPE	231	120	226	-
Fair value losses / (gains) of financial assets at fair value
through profit or loss	(23)	26		- -
Employees share option scheme		- 45		- -
Losses from sale of subsidiaries	20	59		- -
Interest income	(255)	(298)	(116)	(204)
Interest expense	6.001	3.850	354	187
Distribution of treasury shares		- 229		- -
Depreciation of grants received	(1.340)	(800)		- -
Share of loss from associates	3.441	807		- -
Exchange loss / (gain)	(406)	38	-	-
	12.965	10.466	(769)	(659)
Changes in working capital
Decrease in inventories	7.064	1.992		- -
(Increase)/decrease in trade and other receivables	(2.101)	(19.645)	929	(4.125)
Increase/ (decrease) in trade and other payables	(1.707)	(1.472)	272	(2.161)
Increase in provisions	513	521		- -
Increase/ (decrease) in retirement benefit obligations	(239)	44	(22)	-
	3.530	(18.559)	1.179	(6.286)
Cash generated from operations	16.495	(8.093)	410	(6.945)

15. Capital commitments

As at the balance sheet date there were capital commitments for property, plant and equipment of €8.119 for the Group (2010: €8.253).

16. Contingencies / Outstanding legal cases

The Group and the Company have contingent liabilities in respect of banks, other guarantees and other matters arising in the ordinary course of business as follows:

	Group		Company
	31/3/2011	31/12/2010	31/3/2011	31/12/2010
Guarrantees for advance payments	49.673	50.360	47.710	47.229
Guarrantees for good performance	177.173	167.089	157.127	152.113
Guarrantees for participation in contests	18.937	23.479	16.064	10.126
Other	10.025	14.588	5.624	9.775
	255.809	255.516	226.525	219.243

The Company has given guarantees to banks for subsidiaries' loans amounting to €362.842.

In addition, the Company has guaranteed the contractual liabilities of an associate company.

Outstanding legal cases

There is an outstanding legal case against a subsidiary company from the Ministry of Merchant Marine (MMM) concerning violations during the execution of a project completed and delivered to the MMM in a prior period. The penalties and rebates that were initially claimed have been reduced to €9 mil., following relevant appeals of the Company and ministerial decisions. Subsequently, according to a decision by the administrative court of appeal of Piraeus, the above mentioned penalties and rebates were cancelled. According to the Company's legal advisers the appeal exercised by the Greek State against the previous decision by the administrative court of appeal of Piraeus will not succeed and hence there will be no surcharge on the Company. In addition the company, in order to ensure its claim for the remaining balance of the project consideration (€9 mil. approximately) against an assumed request by the State for statutory-limitation, it filed an appeal against the Greek State.

On 4 March 2008 specific major shareholders of Teledome S.A. took legal action against Intracom Holdings, Hellas Online and members of the Management, requesting among others, to abolish the earlier decision of key management personnel (Board of Directors and General Meeting) of the Group for the annulment of the merger of Hellas online, Unibrain and Teledome. Through this lawsuit, an amount of approximately €141 mil. is claimed from the parent company and the subsidiary, for the loss and the moral damage that the plaintiffs allege to have suffer. The Group's management and its lawyers assess that the possibility of any material liabilities arising for the Group in relation to this case is very low.

The Hellas Online Group is in dispute, which is under examination by EETT (Hellenic Telecommunications and Post Commission), with OTE SA regarding certain charges of the latter which are claimed to be unlawful. In relation to this case, the company disputed charges of €2.825 as at 31 March 2011, for which a provision of an equal amount has been recorded.

It is not anticipated that any material liabilities will arise from the contingent liabilities.

17. Related party transactions

The following transactions are carried out with related parties:

		Group		Company
	1/1 - 31/3/2011	1/1 - 31/3/2010	1/1 - 31/3/2011	1/1 - 31/3/2010
Sales of goods / services:
To subsidiaries		-	- 438	183
To associates	441	609	26	90
To other related parties	471	499	1	4
	912	1.108	465	277
Purchases of goods / services:
From subsidiaries		-	- 127	74
From associates	2.347	2.003		- -
From other related parties	47	201		- -
	2.394	2.204	127	74
Rental income:
From subsidiaries		-	- 433	409
From associates	113	250	1	143
From other related parties	67	37	33	2
	181	287	467	554
Purchases of fixed assets:
From subsidiaries		- -	40	-
From associates	1.750	5.179		- -
	1.750	5.179	40	-

Services from and to related parties, as well as sales and purchases of goods, take place on the basis of the price lists in force with non-related parties. Other related parties are mainly associates and companies in which the major shareholder of the Company holds an interest share.

Period-end balances arising from transactions with related parties are as follows:

	Group		Company
	31/3/2011	31/12/2010	31/3/2011	31/12/2010
Receivables from related parties
From subsidiaries	-	-	8.516	9.369
From associates	9.029	7.908	2.739	2.705
From other related parties	4.344	9.770	1.230	1.194
	13.373	17.678	12.485	13.268
Payables to related parties
To subsidiaries	-	-	1.075	973
To associates	62.356	61.571	3.575	3.442
To other related parties	659	734	9	80
	63.015	62.305	4.659	4.495

Key Management compensations

For the three months ended 31 March 2011 a total of €355 was paid by the Company as remuneration to Directors and key Management personnel (1/1 – 31/3/2010: €478). As at 31 March 2011 there were not any receivables or payables from / to Directors.

18. Post balance sheet events

No significant events occurred after the balance sheet date.

19. Subsidiaries

The companies and joint ventures included in the consolidated financial statements and the related direct percentage interests held as at 31 March 2011 are as follows.

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Intracom S.A Defence Electronic Systems	Greece	100,00%	Full	2010
		49,25%
* HELLAS ON LINE	Greece	(note 1)	Full	2007- 2010
- Attica Telecommunications SA	Greece	100,00%	Full	2008-2010
* Intracom Holdings International Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Technologies Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Operations Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Group USA	USA	100,00%	Full	From establishment - 2010
- Duckelco Holdings Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Ingrelenco Trading Co. Ltd	Cyprus	100,00%	Full	From establishment - 2010
* Intracom IT Services	Greece	100,00%	Full	2005- 2010
- Global Net Solutions Ltd	Bulgaria	100,00%	Full	From establishment - 2010
- Data Bank SA	Greece	90,00%	Full	2010
- Intracom IT Services Middle East & Africa	Jordan	80,00%	Full	2010
- Intracom IT Services Denmark AS	Denmark	100,00%	Full	2008 - 2010
- Intracom Exports Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Cyprus Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intrasoft International SA	Luxembourg	99,76%	Full	2008-2010
- Intrasoft SA	Greece	99,00%	Full	2008-2010
- Intrasoft International Belgium	Belgium	100,00%	Full	2004-2010

Note 1: The total shareholding in Hellas on Line is 53,40% through the participation of subsidiary companies of the Group.

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Intrakat SA	Greece	62,24%	Full	2010
- Inmaint SA	Greece	62,00%	Full	2010
- Intracom Construct SA	Romania	96,54%	Full	2009-2010
-Oikos Properties SRL.	Romania	100,00%	Full	2007-2010
		99,99%
-Rominplot SRL**	Romania	(note 2)	Full	2010
- Eurokat SA	Greece	54,38%	Full	2010
-J./V. ΑΚΤOR ΑΤΕ - LOBBE TZILALIS - EUROKAT ATE (Ily
Administration Κ.Ε.L.)	Greece	18,00%	Proportional	2010
-J./V. ΑΚΤOR ΑΤΕ - Proteas (Sewage network of Paiania
municipality)**	Greece	27,19%	Proportional	-
- Intrakat International Ltd	Cyprus	100,00%	Full	2008-2010
		99%
-SC Plurin Telecommunications SRL	Romania	(note 3)	Full	2008-2010
-Alpha Mogilany Development SP Z.O.O	Poland	25,00%	Equity	2008-2010
-Αmbtila Enterprises Limited **	Cyprus	100,00%	Full	2007-2010
-Α. Katselis Energiaki SA**	Greece	50,00%	Proportional	2009-2010
- Intradevelopment SA	Greece	100,00%	Full	2010
- Fracasso Hellas AE Design & construction of road safety systems	Greece	55,00%	Full	2010
-Prisma - Domi ΑΤΕ	Greece	50,00%	Full	2010
-J/V Athinaiki Techniki s.a.- "J/V Archirodon Hellas ATE - Prisma
Domi ATE" (General Department East Macedonia & Thraki)	Greece	10,00%	Proportional	2010
-J/V VIOTER s.a. - Prisma Domi ATE constructor (Sewages process facilities & subpipe of Ag.Theodorous municipality)	Greece	10,00%	Proportional	2010
-J/V/ NOEL s.a. - Prisma Domi ATE - (Wind park in "Driopi")	Greece	17,50%	Proportional	2010
-J/V Prisma - Domi ATE - Mesogeios ES SA - (operation & mainten. of	Greece	25,00%	Proportional	2010
biolog.wastewater treatment In Oinofita-Schimatari)**
-Intrapower SA Company of Energy Works**	Greece	75,00%	Full	2010
-Ιntra - Phos S.A. Alternative energy **	Greece	42,00%	Full	-
-ΙCC ΑΤΕ** J./V. Mohlos - Intrakat (Tennis)	Greece	50,00%	Equity	2006-2010
J./V. Mohlos - Intrakat (Swimm.)	Greece	50,00%	Equity	2010
J./V. Panthessalikon Stadium	Greece	50,00%	Equity	2010
J./V. Elter-Intrakat (EPA Gas)	Greece	15,00%	Equity	2008-2010
J./V. Intrakat - Gatzoulas	Greece	45,00%	Equity	2010
J./V. Elter-Intrakat-Εnergy	Greece	50,00%	Equity	2004-2010
J./V. "Αth.Techniki-Prisma Domi"-Ιntrakat	Greece	40,00%	Equity	2005-2010
J./V. Intrakat-Ergaz-ALGAS	Greece	57,50%	Equity	2005-2010
J./V. Intrakat - Elter (Maintenance N.Section)	Greece	33,33%	Equity	2007-2010
J./V. Intrakat - ΑΤΤΙΚΑΤ (Εgnatia Οdos)	Greece	50,00%	Proportional	2006-2010
J./V. Intrakat - Elter (Alex/polis pipeline)	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter (Xiria)	Greece	50,00%	Proportional	2009-2010
J./V. Intrakat - Elter (Road diversion- Arta)	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter (Natural gas installation project- Schools)	Greece	30,00%	Proportional	2010
	Greece	30,00%	Proportional	2010
J./V. Intrakat - Elter ( Natural Gas Installation Project Attica Northeast & South )	Greece	49,00%	Proportional	2010
J./V. Intrakat - Intracom Telecom (DEPA Network)	Greece	70,00%	Proportional	2007-2010
J./V. Intrakat - Elter (Broadband networks)	Greece	50,00%	Proportional	2007-2010
J./V. Intrakat - Elter (Natural Gas installation project - Schools EPA 3)	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter (Natural Gas pipelines 2007 Northeastern Attica Region EPA 4)	Greece	50,00%	Proportional	2010
J./V.Intrakat- Elter(Gas Distrib.Network Expansion)	Greece	50,00%	Proportional	2007-2010

Note 2: The total shareholding in Rominplot SRL is 100% through the participation of another subsidiary.

Note 3: The total shareholding in SC Plurin Telecommunications SRL is 100% through the participation of another subsidiary.

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
J./V. ΑΚΤOR ΑΤΕ - Pantechniki SA - Intrakat (J./V. Μoreas)	Greece	13,33%	Proportional	2008-2010
J./V. Intrakat - Elter (ΕPA 5) - Natural Gas Installation Central Region	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter (EPA 6) - Natural Gas Installation South Region	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter ( Hospital of Katerini)	Greece	50,00%	Proportional	2008-2010
J./V. Intrakat - Elter (Hospital of Corfu)	Greece	50,00%	Proportional	2008-2010
J./V. Intrakat Elter (EPA 7) - Natural Gas Distribut.Network Attica South Region	Greece	49,00%	Proportional	2010
J./V. Ιntrakat Elter -Natural Gas Suppl.Network Lamia-Thiva-Chalkida	Greece	50,00%	Proportional	2010
J./V. Intrakat - Elter (Completion of Ionio Building, General Clinic)	Greece	50,00%	Proportional	2010
J./V. Eurokat-ΕΤVO- Construction of Central Library Building of School of Fine Arts	Greece	70,00%	Proportional	2008-2010
J/V Anastilotiki - Getem - Intrakat (Museum of Patras)	Greece	25,00%	Proportional	2010
J/V Anastilotiki - Getem - Intrakat (Piros-Parapiros Dams)	Greece	33,30%	Proportional	2006-2010
J/V Intrakat - Elter - (dam construction in Filiatra)	Greece	50,00%	Proportional	2010
J/V Intrakat - K.Panagiotidis & Co (line transfer construction 1)	Greece	60,00%	Proportional	2010
J/V Altec - Intrakat - Anastilotiki (Thessaloniki Airport)	Greece	46,90%	Proportional	2010
J/V Elter ATE - Intrakat - Nea Messimvria project	Greece	50,00%	Proportional	-
J/V Intrakat - Filippod SA - Anthipolis project**	Greece	50,00%	Proportional	2010
J/V Ekter SA - Erteka SA - Themeli SA - Intrakat (Filothei & Kiffisias Aven. Network construction)**	Greece	24,00%	Proportional	-
J/V Intrakat - Μavridis (Carrefour Supemarket consruction in Chalkidiki)**	Greece	99,00%	Proportional	-

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Intracom Telecom Solutions SA	Greece	49,00%	Equity	2009-2010
-Intracom Bulgaria S.A.	Bulgaria	100,00%	Full	1998-2010
-Intracom Svyaz Ltd.	Russia	100,00%	Full	From establishment - 2010
-Intracom Doo Skopje	FYROM	100,00%	Full	2006-2010
-Intralban Sha	Albania	95,00%	Full	2005-2010
-Intrarom S.A.	Romania	66,70%	Full	2004-2010
-Sitronics Intracom India PL	India	100,00%	Full	From establishment - 2010
-Intracom Telecom Holdings International Ltd	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Middle East L.L.C.	United Arab Emirates	100,00%	Full	Not applicable
- Connklin Corporation	USA	100,00%	Full	2001-2010
- Intracom Telecom solutions S.R.L.	Moldova	100,00%	Full	From establishment - 2010
- Intracom doo Belgrade	Serbia	100,00%	Full	From establishment - 2010
- Ε-Teleserv doo Belgrade	Serbia	100,00%	Full	-
- Intracom doo Armenia	Armenia	100,00%	Full	2008 -2010
- Intracom Telecom Technologies Ltd.	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Telecom Operations Ltd.	Cyprus	100,00%	Full	From establishment - 2010
- Intracom Telecom Solutions Saudi Arabia	Saudi Arabia	95,00%	Full	From establishment - 2010

* Direct shareholding

(**) These companies have been included in the Group for the first time in the current period ending 31 March 2011 but were not included in the corresponding period of 2010.

The companies KEPA Attikis SA and Dialogos SA were included in the consolidated financial statements for the period 1/1 – 31/3/2010 but not in the current period's financial statements (1/1 – 31/3/2011). In particular Dialogos SA was included in the consolidated financial statements up to 7 June 2010, at which date it was disposed of.

Except for the above, there are no further changes in the consolidation method for the companies included in the Group financial statements.

Peania, 30 May 2011

THE CHAIRMAN OF THE BOARD OF DIRECTORS & MANAGING DIRECTOR

THE VICE CHAIRMAN OF THE BOARD OF DIRECTORS & DEPUTY MANAGING DIRECTOR

S. P. KOKKALIS ID No ΑΙ 091040/05.10.2009

D. C. KLONIS ID No Ρ 539675/06.11.1995

THE CHIEF ACCOUNTANT

J. K. TSOUMAS ID No ΑΖ 505361/10.12.2007 License No 637