Keo PLC — Management Reports 2013

May 22, 2013

KEO: Interim Management Statement

KEO plc presents the first Interim Management Statement of the Company and its subsidiaries for the year 2013. The Interim Management Statement has been prepared in accordance with Article 11 of the Transparency Requirements (Securities Admitted to Trading on Regulated Market) Law of 2007 (N.190(I)/2007) and is showed below:

MAIN ACTIVITIES

The main activities of the Group, which have not changed since the previous year, include the vinification of vine products, the production of beer and juices and bottling of natural mineral water which are distributed in the local market and overseas.

TURNOVER

The Group's revenue during the first 3 months of the year has decreased by 7.2% in relation to the same period in the previous year.

The decrease in the sales volume is mainly due to the aggravation of the financial crisis and the uncertain economic conditions which are observed in the economy of Cyprus for the first months of 2013, that have negatively affected the psychology of the Cypriot consumer, that when combined with the decrease of its purchasing power had as a result the decrease of the Group's turnover.

Furthermore, the suspension of operation of the financial sector of Cyprus during March 2013 and the enforcement of restrictive measures on financial transactions by the Central Bank of Cyprus, was another factor that has negatively affected Group sales in relation to the same period 2012.

PROFITABILITY

The Group's loss during the first 3 months of the year has decreased by 28.7% despite the decrease in turnover. The decrease is due to actions taken by the Group for the restriction of its operating costs and especially to the measures for the reduction of labour cost.

MAJOR RISKS AND UNCERTAINTIES

The major risks and uncertainties that the Group faces remain unchanged from those described in the Company's Annual Report for the year 2012.

SIGNIFICANT EVENTS AND TRANSACTIONS

The Group, following an agreement with its employees and their unions, has proceeded with measures towards the decrease of its employees' remuneration with the aim of maintaining positions of employment.

There have been no other significant events and transactions, other than the normal operating activities of the Group, which had an impact on the financial position of the Company and its subsidiaries.