Lamda Development S.A. — Audit Report / Information 2006

Oct 5, 2015

The figures and information illustrated below aim to provide a summary view of the financial position and results of LAMDA DEVELOPMENT S.A. and LAMDA DEVELOPMENT SA GROUP. Before making any investment decision or any other transaction concerning the company, we advise the reader to visit the company's website (www.Lamda-development.net) which presents the detailed financial statements according to International Financial Reportin					Standards, along with the external audit report, whenever is required.
Headquarters :	Laodikeias 16 & Nimfaiou, 11528 Athens				Board of Directors
Number in the Register of Societies Anonymes:	3039/06/Β/86/28				Chairman of the Board and Managing Director:	Apostolos S. Tamvakakis
Main activity :	Holding and Real Estate Development					Evaggelos I.Chronis
Audit Authority :	Ministry of Developments, Department of Anonymes Companies				Members :	Georgios K. Papageorgiou
Date of Financial statement's Approval : Certified Auditor Public Accountant :	10/08/2006 Michalatos Konstantinos (SOEL Reg.No.17701)					Emmanuel Leonard Bussetil Petros P. Kalantzis
Auditor Company : PRICEWATERHOUSECOOPERS					Dimitrios Th. Papalexopoulos
Type of audit report:	No qualification - With emphasis issue					Fotios S. Antonatos
Web site :	www.Lamda-development.net					Spiridon Ι.Theodoropoulos
Balance sheet ( Amounts in €)							Income statement (Amounts in €)
	Group		Company			Group		Company		Group		Company
	30/06/2006	31/12/2005	30/06/2006	31/12/2005		1/01-30/06/2006 1/01-30/06/2005		1/01-30/06/2006 1/01-30/06/2005				1/04-30/06/2006 1/04-30/06/2005 1/04-30/06/2006 1/04-30/06/2005
ASSETS Non-current assets					Sales	67.107.260	33.493.314	2.028.560	3.064.026	20.803.087	16.303.116	657.268	1.665.198
Investment property	649.689.803	602.702.993	5.495.441		5.495.441 Cost of sales	(46.442.647)	(32.372.181)	(2.772.662)	(1.595.514)	(14.918.639) (16.384.011)		(1.949.654)	(905.742)
Property, plant and equipment	55.442.075	49.133.840	1.197.110		1.505.602 Gross profit	20.664.613	1.121.133	(744.102)	1.468.512	5.884.448	(80.895)	(1.292.386)	759.456
Intangible assets	4.938.260	5.008.223	-		- Administrative expenses	(9.619.015)	(11.009.818)	(2.859.849)	(1.995.556)	(3.203.672)	(7.635.786)	(431.782)	(1.165.882)
Investments in associates Available-for-sale financial assets	704.326 37.392.300	34.770.662 -	193.218.081 37.392.300		254.645.469 Reverse of provision for impairment - Fair value gains / (losses) of investment property	- 43.231.452	- -	38.693.042 -	- -	- 43.231.452	- -	38.693.042 -	- -
Deferred income tax assets	242.234	328.861	96.732		139.715 Profit / (loss) from participations sale in associates	9.835.536	2.105.263	4.960.301	2.105.263	9.835.536	2.105.263	4.960.301	2.105.263
Derivative financial instruments	1.133.724	-	340.515		- Other operating income / (expenses) - net	758.972	(308.237)	19.124	(254.168)	212.923	625.850	22.054	(88.094)
Trade and other receivables	728.862	3.060.183	56.182		2.338.084 Earnings before interest, taxes, depreciation & amortization	64.871.558	(8.091.659)	40.068.517	1.324.051	55.960.687	(4.985.568)	41.951.229	1.610.743
	750.271.585	695.004.763	237.796.361	264.124.311 Depreciation		(1.644.598)	(1.547.128)	(323.998)	(327.609)	(738.178)	(760.521)	(161.001)	(173.693)
Current assets Inventories	59.569.028	80.939.513	-		Earnings before interest and taxes - Finance costs - net	63.226.960 (8.572.535)	(9.638.787) 764.327	39.744.519 (1.534.682)	996.442 1.291.128	55.222.510 (3.733.565)	(5.746.089) 1.421.056	41.790.228 (537.661)	1.437.050 1.665.297
Trade and other receivables	73.119.683	77.112.115	22.076.722		7.039.934 Share of (loss) / profit of associates	1.277.640	(1.110.655)	(4.732.585)	(1.500.913)	905.733	(1.655.822)	(4.732.585)	(1.500.913)
Available-for-sale investments in associates	-	-	83.985.637		- Profit before income tax	55.932.066	(9.985.115)	33.477.252	786.657	52.394.678	(5.980.855)	36.519.982	1.601.434
Current income tax assets	2.989.611	2.770.365	1.172.712		756.177 Minus: Taxes	(9.835.507)	(1.215.519)	(58.204)	(57.177)	(13.942.447)	32.177	(18.903)	(27.494)
Cash and cash equivalents	18.180.532 153.858.853	36.829.823 197.651.816	3.990.709 111.225.780	12.087.792	4.291.681 Profit for the period	46.096.559	(11.200.635)	33.419.048	729.480	38.452.231	(5.948.678)	36.501.079	1.573.940
Total assets	904.130.438	892.656.578	349.022.140		276.212.102 Attributable to :
EQUITY					Equity holders of the Company	44.607.456	(6.850.491)	33.419.048	729.480	38.043.893	(3.718.723)	36.501.079	1.573.940
Capital and reserves attributable to equity holders of the company					Minority interest	1.489.103	(4.350.144)	-	-	408.338	(2.229.955)	-	-
Share capital	235.893.312	235.878.092	235.893.312	235.878.092		46.096.559	(11.200.635)	33.419.048	729.480	38.452.231	(5.948.678)	36.501.079	1.573.940
Other reserves Retained earnings / (Accumulated losses)	8.929.488 66.192.851	5.983.471 21.585.395	15.265.839 (19.444.605)	4.630.689	(52.863.652) Earnings per share for profit attributable to the equity holders
Total shareholders equity	311.015.652	263.446.958	231.714.546		187.645.129 of the Company during the half year (expressed in € per share)
Minority interest	48.781.584	43.399.481	-		- Basic	1,01	(0,16)	0,76	0,02	0,86	(0,08)	0,83	0,04
Total equity	359.797.235	306.846.439	231.714.546	187.645.129 Diluted		1,01	(0,16)	0,76	0,02	0,86	(0,08)	0,83	0,04
LIABILITIES Non-current liabilities						Cash Flow Statement (Amounts in €) - indirect method
Borrowings	299.316.049	125.673.929	58.186.861	31.320.689		Group		Company
Deferred income tax liabilities	54.603.746	44.992.104	-	-		1/01-30/06/2006 1/01-30/06/2005		1/01-30/06/2006 1/01-30/06/2005
Retirement benefit obligations	1.067.046	583.332	173.098		173.098 Cash flows from operating activities
Other non-current liabilities	1.502.190 356.489.031	1.418.522 172.667.887	36.148 58.396.107		36.148 Profit before income tax 31.529.935 Adjustments for:	55.932.066	(9.985.115)	33.477.252	786.657
Current liabilities					Fair value gains / (losses) of investment property	(43.231.452)	-	-	-
Trade and other payables	67.565.903	175.447.044	13.786.909		35.737.138 Profit / (loss) from participations sale in associates	(9.835.536)	(2.105.263)	(4.960.301)	(2.105.263)
Current income tax liabilities	259.721	280.109	-		- Depreciation	1.644.598	1.547.128	323.998	327.609
Borrowings Provisions for other liabilities and charges	119.457.513 561.035	237.047.926 367.173	44.844.683 279.895		21.020.006 Finance costs - net 279.895 Share of (loss) / profit of associates	8.572.535 (1.277.640)	(764.327) 1.110.655	1.534.682 4.732.585	(1.291.128) 1.500.913
	187.844.172	413.142.252	58.911.487		57.037.039 Reverse of provision for impairment	-	-	(38.693.042)	-
Total liabilities	544.333.203	585.810.139	117.307.594		88.566.974 Other non-cash flow items	1.117.746	3.076.857	(6.853.900)	2.183.183
Total equity and liabilities	904.130.438	892.656.578	349.022.140	276.212.102		12.922.317	(7.120.065)	(10.438.726)	1.401.971
					Changes in working capital :
Statement of changes in equity (Amounts in €)	Group		Company		Decrease in inventories Decrease / (increase) in receivables	21.370.485 9.547.240	5.031.614 10.134.822	- 1.825.078	- 16.124.081
	30/06/2006	30/06/2005	30/06/2006	30/06/2005	Increase / (decrease) in payables	(118.971.608)	(4.400.322)	(22.570.420)	(1.657.894)
					Increase in provisions	193.862	538.202	-	-
Shareholder's equity at the beginning of the period (1/01/2006 & 1/01/2005 ) Net profit for the half year after taxes	306.846.439 46.096.559	215.832.610 (11.200.635)	187.645.129 33.419.048	729.480 Minus:	181.126.067 Increase / (decrease) in retirement benefit obligations	483.714	(315.000)	-	-
	352.942.998	204.631.975	221.064.177		181.855.547 Interest expenses paid	(9.460.609)	(1.505.050)	(1.698.177)	(832.142)
Currency translation differences	9.150	159.776	-		- Income tax paid	(340.222)	(1.087.448)	-	8.048
Employees share option scheme Shares issued in subsidiaries	- 3.893.000	- -	- -		17.636 Net cash flows from operating activities - Cash flows from investing activities	(84.254.823)	1.276.756	(32.882.244)	15.044.064
Change in subsidiary shareholdings	-	1.136.646	-		- Purchase of property, plant, equipment, investment property and intangible assets	(4.425.496)	(39.873.284)	(15.506)	(434.421)
Fair value gains on available-for-sale financial assets	2.936.868		10.635.150		Dividends received	897.415	-	897.415	604.350
Deferred tax adjustment	15.220	-	15.220		- Loans granted to related parties	-	-	(36.634.600)	-
Shareholder's Equity at period end (30/06/2006 & 30/06/2005)	359.797.235	205.928.397	231.714.546		181.873.183 Participation in share capital issue in subsidiaries Sales of available-for-sale financial assets	- 9.496.079	- 92.480	(9.315.357) 4.930.301	(18.901.389) -
					Interest received	93.052	187.708	28.394	18.008
Additional records and accounts :					Loan repayments received from related parties	-	-	22.000.000	-
1. GROUP'S COMPOSITION % Participation			% Participation		Net cash flows from investing activities	6.061.050	(39.593.096)	(18.109.353)	(18.713.452)
Company name of the parent company	Company name		of the parent company		Cash flows from financing activities
LAMDA Development S.A. Parent company FULL CONSOLIDATION		PROPORTIONATE CONSOLIDATION			Dividends paid to Company's shareholders	(225)	(3.884)	(225)	(3.884)
LAMDA Estate Development S.A., Athens KRONOS PARKING S.A., Athens Indirect	100,00% LAMDA Akinita S.A., Athens 100,00% LAMDA Olympic SRL, Romania		50,00% 50,00%		Borrowings received Repayments of borrowings and capital repayments of finance leases	216.845.339 (160.793.632)	42.053.501 -	79.000.000 (28.309.150)	6.505.172 -
LAMDA Prime Properties S.A., Athens 100,00% LAMDA Shipyards & Marine Services S.A., Elefsina	75,00% 4 K ANAPTYXI AKINHTOY S.A., Athens	EQUITY CONSOLIDATION	Indirect 30,00%		Share capital issue expenses	-	(175.427)	-	-
PYLAIA S.A., Athens LAMDA Technol Flisvos Holding S.A., Athens	60,10% MC PROPERTY MANAGEMENT S.A., Athens Indirect 45,00% ECE LAMDA HELLAS SA, Athens		25,00% 34,00%		Proceeds from minority shareholders from issuance of shares in subsidiaries	3.493.000	-	-	-
LAMDA Technol Flisvos Marina S.A., Athens Indirect LAMDA Erga Anaptyxis S.A., Athens	33,75% LAMDA MED S.A., Romania 100,00% EFG Property Services Romania S.A., Romania		Indirect 40,00% 20,00%		Net cash flows from financing activities	59.544.482	41.874.190	50.690.625	6.501.288
LAMDA Domi S.A., Athens LAMDA Property Management S.A., Athens	100,00% EFG Property Services Sofia A.D., Bulgaria 100,00% EFG Property Services DOO BEOGRAD, Serbia		20,00% 20.00%		Net increase in cash and cash equivalents	(18.649.291)	3.557.850	(300.972)	2.831.900
LAMDA Hellix S.A., Athens 80,00% LAMDA OLYMPIA VILLAGE S.A., Athens 98,48%					Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period	36.829.823 18.180.532	24.408.860 27.966.710	4.291.681 3.990.709	1.130.951 3.962.851
LAMDA Development Romania SRL, Romania 100,00%
					7. The subsidiary company Lamda Technol Flisvos Marina S.A. is on the procedure of arbitration with the company ETA S.A. not only for the demand of 7,8 million but also for the liability of 9,8 million. In addition, for the subsidiary company
2. The accounting principles adopted in the preparation and presentation of the financial statements are consistent with the same accounting principles adopted for the					outstanding blea in abatements in the slight of State of Council regarding the expansion and the development of the Marina. The company expects a successful issue of the cases mentioned above. 8. The average number of employees was at the end of the current period, 164 for the Group in total of which 86 for the Company.
financial statements of the Company and the Group for the year ended 31 December 2005.					9. There are neither cases under dispute, litigation, or arbitrations nor any court decisions that are likely to have a significant impact on the Company's financial.
3. The Parent company participates with a percentage of 100% (Direct participation) in the company LAMDA DEVELOPMENT DOO BEOGRAD which is not consolidated due to non-significant value.					10. Company sales to and purchases from related parties from 01/01/2006 to 30/06/2006, amount (in thousands) to €1.927 and to € 218 respectively. The Company's payables to and receivables from related parties, on 30/06/2006, rose (in thousands) to € 47.905 and to € 22.051 respectively. The Group's inter-company sales and purchases (in thousands) amount to € 1.056, and € 3.590 respectively, whilst inter-company receivables and payables amount (in thousands) to € 142 and € 53.681
4. Real estate liens and pre-notices, amount to € 442.045.341 concerning guaranties for bank loans.					respectively.
5. The parent company and LAMDA SHIPYARDS & MARINE SERVICES SA, have been audited by the tax authorities year-end 2002, whereas in both companies					11. The company's board of Directors has approved the financial statements for publication on 10/08/2006.
regular tax auditing is in process. LAMDA ESTATE DEVELOPMENT SA has been tax audited until the year-end 2003. LAMDA PRIME PROPERTIES SA has been audited until the year-end 2004. The rest of the subsidiaries companies of the Group have not been audited for tax purposes since 2003. Consequently, the tax					12. At 14/04/206 2006 LAMDA SHIPYARDS & MARINE SERVICES SA transferred its 75% portion of total share capital of the subsidiary company ARGONAYTIS SA at the price of € 5,2m. 13. At 16/05/2006 the parent company received an additional amount of € 4,9 million as price for the transfer of 16,7% of Eurobank Properties R.E.I.C. total share capital, which was realised during August 2005.
obligations of the group have not been defined permanently.					14. At 4 August 2006 the Company announced that has signed a sale pre-agreement of the 50% of its participation in the commercial and leisure centre "The Mall Athens", which is owned by its subsidiary Lamda Olympia Village S.A. The transfer of
6. The account "Trade and other Receivables" includes € 41,4 million approximately, concerning receivables against Hellenic State, for the reimbursement of VAT related to construction cost of the Shopping Centers.					shares is expected to be concluded following the completion of the conditions of the sale agreement, among which is the granting of the necessary approvals from the authorities. Specifically, following the completion of the transaction, HSBC LUXEMBURG SARL will own 13.006.105 shares of Lamda Olympia Village S.A., which represent 49,239% of the company's share capital.
THE CHAIRMAN OF THE BOARD OF DIRECTORS				THE GENERAL MANAGER		THE DIRECTOR OF FINANCE AND ADMINISTRATION						THE FINANCIAL DIRECTOR
& CHIEF EXECUTIVE OFFICER
APOSTOLOS S.TAMVAKAKIS I.D.No P704691				GEORGIOS K. PAPAGEORGIOU I.D.No P655346		ODYSSEAS Ε. ATHANASIOU I.D.No L072206					BASILIOS Α. BALOUMIS I.D.No Τ061891

LAMDA DEVELOPMENT S.A.

HOLDING AND REAL ESTATE DEVELOPMENT COMPANY S.A.

Figures and information for the period of 01 January 2006 until 30 June 2006