Keo PLC — Earnings Release 2018

Apr 24, 2019

ANNOUNCEMENT

Subject: Final Results 2018 - Date of the Annual General Meeting - Suggestion for Payment of Dividend

The Board of Directors of KEO plc, at a meeting that took place on 23 April 2019, has decided the following:

(a) Approval of Financial Statements

The Audited Financial Statements of the Group for the financial year ended 31 December 2018 were approved.

Copies of the Audited Financial Statements for the year ended 2018 are available at the Company's registered Office, at 1 Franklin Roosvelt Avenue, 3012 Limassol and at the Company's website www.keo.com.cy

(b) Convening of the Annual General Meeting

The Annual General Meeting will take place on 12 June 2019 at 10:00 a.m., at the Company's registered Office at 1 Franklin Roosvelt Avenue, 3012 Limassol.

(c) Suggestion for Payment of Dividend

The payment of dividend totalling €7,968,603 that corresponds to 21.4 cent per share and that a related resolution will be proposed for approval on Extraordinary General Meeting of the Company's shareholders.

According to the resolution to be proposed at the Extraordinary General Meeting for approval:

• · 81.3% of the dividend will not be paid in cash but shall be used for the payment in full of new shares in the capital of the Company at the price of €1.31 per share to be issued and allotted to the beneficiaries of such dividends.
• " For the calculation of the corresponding number of shares to be allotted to each beneficiary, the amount of dividend to be used for the payment in full of new shares (81.3% of the total dividend) will be divided by the issue price of the new shares (€1,31per share). In

case the aforesaid calculation results to a fractional number, then if the fractional number is less than 0.50 it will be ignored, but if it is equal or greater than 0.50 then an additional share will be allotted in regards to that fractional number.

• For any shareholders for which the above calculation results to the allotment of zero (0) shares, the amount of dividend that corresponds to these shareholders, less any Special Defence Contribution and/or contributions to General Healthcare System (GHS) where it applies, will be paid in cash.
• · The remaining 18.7% of the amount of the dividend shall be payable in cash to the beneficiaries, subject to withholding of any Special Defence Contribution and/or contributions to the General Healthcare System (GHS) payable in respect to the whole amount of the dividend, in each case where applicable.
• The new shares to be issued will have a nominal value of €0.43 per share and shall have the same rights as the existing shares.
• The Company will proceed with an application for the admission of the new shares for trading in the alternative market of the Cyprus Stock Exchange where the existing shares are already trading.

The Board of Directors of the Company has decided to convene the Extraordinary General Meeting on the 12th June at 11:00 a.m. at the Company's registered office, 1 Franklin Roosevelt Avenue, 3012 Limassol.

The related resolution will be included in the notice for the convening of the Extraordinary General Meeting that will be announced within the deadline defined by the relevant legislation.

24 April 2019

EXTRACT FROM ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

Contents

	Page
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018

	Group		Company
	2018	2017*	2018	2017*
	€000	€000	€000	€000
Turnover	54.356	50.613	55.210	51.421
Cost of sales	(33.560)	(31.505)	(34.841)	(32.066)
Gross profit	20.796	19.108	20.369	19.355
Other operating income	284	310	244	277
Selling and distribution expenses	(12.046)	(11.045)	(11.977)	(10.991)
Administration expenses	(3.459)	(2.824)	(3.403)	(2.735)
Other operating expenses	(45)	(87)	(43)	(80)
Profit from operations	5.530	5.462	5.190	5.826
Investment income	1.191	1.027	1.235	1.081
Impairment loss on available-for-sale investments		(26)		(26)
Impairment loss on fair value through profit or loss
investments		(1.043)		(1.043)
Impairment loss on investments in subsidiaries				(49)
Profit on investment properties revaluation	105	450		450
Finance income/(cost), net	130	(647)	207	(499)
Profit before tax	6.956	5.223	6.632	5.740
Taxation	(581)	(273)	(815)	(272)
Net profit for the year	6.375	4.950	5.817	5.468
Other comprehensive income for the year
Items that may be reclassified to the profit or loss in subsequent periods
Net gain on revaluation of available-for-sale investments		617		617
Exchange differences on translating foreign operations	(2)
Items that will be never be reclassified to the profit or
loss in subsequent periods
Loss on revaluation of investments held at fair value
through other comprehensive income	(920)		(920)
Profit on revaluation of Property, plant and equipment	779
Deferred taxation	(160)

Total comprehensive income for the year 1 6.072 - 1 - 1 - 5.567 - 1 - 4.897 - 1 - 4.897 6.085

((303) 2017年 617 2017 (920) 2017 (920) 2017 (617)

Other comprehensive (cost)/income for the year, net of taxation of the second in the first of the station in the first in the

* The presentation of comparative information has been adjusted with the implementation of IFRS 15

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 201 (Cont'd)

	Group		Company
	2018 €000	2017 €000	2018 €000	2017 €000
Net profit for the year attributable to:
Owners of the Company Non - controlling interests	6.375	4.950	5.817	5.468
	6.375	4.950	5.817	5.468
Total comprehensive income for the year attributable to:
Owners of the Company Non - controlling interests	6.072	5.567	4.897	6.085
	6.072	5.567	4.897	6.085
Basic profit per share (cent)	17,1	13,3

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018

	Group		Company
	2018	2017	2018	2017
ASSETS	€000	€000	€000	€000
Non - current assets
Property, plant and equipment
Investment property	14.544	13.914	14.173	13.482
Intangible assets	25.795	26.270	12.220	13.600
Available-for-sale investments	99	105	77	83
Deferred tax	238	13.569		13.569
Investments held at fair value through other comprehensive
income	12.649		12.649
Investments mandatorily held at fair value through profit or loss		2.457		2.457
Investment in subsidiaries			3.906	3.908
Finance lease receivable	1.361		1.361
Amounts due from subsidiaries			1.719	1.661
Trade and other receivables	1.220		1.220
Total non - current assets	55.906	56.315	47.325	48.760
Current Assets
Inventories	13.701	12.460	12.467	10.995
Trade and other receivables	12.023	12.076	11.793	11.791
Finance lease receivable	19		19
Amounts due from subsidiaries			1.610	3.246
Held-to-maturity investments		20.000		20.000
Cash at bank and in hand	7.991	1.907	7.913	1.832
Total current assets	33.734	46.443	33.802	47.864
Total assets	89.640	102.758	81.127	96.624
EQUITY AND LIABILITIES Equity
Share capital	16.012	16.012
Reserves	56.407	52.015	16.012 49.821	16.012 47.534
Equity attributable to owners of the Company	72.419	68.027	65.833	63.546
Non - controlling interests	29	29
Total equity	72.448	68.056	65.833	63.546
Non - current liabilities
Borrowings		2.694
Deferred tax	4.005 3.513	3.188	4.005 1.386	2.694
Total non - current liabilities	7.518	5.882	5.391	1.225
				3.919
Current liabilities
Trade and other payables	8.192	6.327	7.535	5.774
Special contribution for defence on deemed dividend
distribution	191	1.664	191	1.664
Bank overdrafts	69	19.590	69	19.590
Amounts due to subsidiaries			886	892
Borrowings	1.197	1.232	1.197	1.232
Taxation	25	7	25	7
Total current liabilities Total liabilities	9.674	28.820	9.903	29.159
	17.192	34.702	15.294	33.078

The above statements are true extracts from the Annual Report and Financial Statements of KEO PLC which have been prepared in Greek and have been approved by the Board of Directors on 23 April 2019.

George Hiletis Company Secretary