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

Sep 29, 2015

LAMDA DEVELOPMENT A.E. HOLDING AND REAL ESTATE DEVELOPMENT COMPANY S.A.

S.A.REG.No 3039/06/B/86/28

SUMMARY FINANCIAL DATA AND INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2006 Published according to article 135 of Law 2190, for companies preparing annual financial statements, consolidated or not, in accordance with the IFRS

: Information listed below is aiming to provide general awareness about the financial position and the financial results of LAMDA DEVELOPMENT S.A. Users requiring non-summarised information of the company's financial position and results, must refer to the annual financial statements prepared under International Financial Reporting Standards (IFRS), as well as the certified auditors opinion. Indicatively, users may visit the company's website (www.Lamda-development.net), where the aforementioned information is published. Registered office: Laodikeias 16 & Nimfaiou, 11528, Athens Board of Directors Register No: 3039/06/Β/86/28 Chairman of the Board and Managing Director Apostolos S. Tamvakakis Regulatory authorities: Ministry of Developments, Department of Anonymes Companies Vice president: Evaggelos I.Chronis Date of approval of the annual financial statements (from which summary data wer compiled): e Members: Georgios K. Papageorgiou 6 March 2007 Emmanuel Leonard Bussetil

Certified auditor accountant: Michalatos Konstantinos (SOEL Reg.No.17701) Petros P. Kalantzis Audit firm: PricewaterhouseCoopers S.A. Dimitrios Th. Papalexopoulos Auditors opinion: No qualification - With emphasis issue Fotios S. Antonatos

changed from full to proportionate.The sale of 50% of the Company's participation in LAMDA Olympia Village S.A. resulted to gains € 62m for the parent and € 33,1 for the Group, that		Repayments of borrowings		(257.463.726)	(123.798.650)	(188.266.316)	(7.864.798)
are presented in "Profit from sale of participations" figure of Company and Group's financial statements.		Cash flows from financing activities - net		29.721.477	165.259.461	(203.869)	29.900.125
6.On 04/09/2006, the Company transferred its acquired shares in LAMDA Shipyards and Marine Services S.A., namely 75% of its share capital. The total cost of this transaction amounts to € 10,9 m. On 14/04/2006 the above mentioned subsidiary LAMDA Shipyards and Marine Services S.A., had proceeded to the transfer of ΑΡΓΟΝΑΥΤΗΣ M.S.A. total shares for the amount of € 5,2m. The turnover of the above mentioned companies until the transfer date was € 8,8m (2005: € 12,2m) and the earnings before interest, taxes, depreciation & amortization in € 1,1m (2005: loss € 1,9m) for 2006. The profit from discontinued operations amounted to € 2,6m for 2006 (2005: loss € 2,9m) for the Group results.		Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of year		43.081.465 36.829.823	12.420.963 23.938.113	47.212.621 4.291.681	3.160.731 1.130.951
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 € 7,7m but also for the liability of € 12,7 m. In addition, for the subsidiary company 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.		Cash and cash equivalents - discontinued operations		-	470.747	-
		Cash and cash equivalents at the end of year		79.911.287	36.829.823	51.504.302	4.291.682
8.The subsidiary company LAMDA Development DOO (Beograd) is consolidated for the first time due to previous non-significant value. The parent Company participates with a percentage of 100% (direct consolidation method).
		15.Also, during March 2007, the Company has signed a pre sale agreement for the acquisition of the Bulgarian company TIHI Ltd, which owns 6.300 sqm plot of land in Sofia, Bulgaria. The price of the
9.The account "Trade and other Receivables" includes € 26,5 m approximately, concerning receivables against Hellenic State, for the reimbursement of VAT related to construction cost of the Shopping Centers. 10.The company Consolidated Lamda Holdings SA registered in Luxembourg participates in Company's share capital by 55,677% and therefore Group's financial statements are included i n Consolidated Lamda Holdings SA's consolidated financial statements.		transaction is € 13m.
		16.Intercompany transactions for the fiscal year 2006 and intercompany balances as of 31 December 2006, according to IAS 24 are as follows:
		Amounts in € a) Sales of goods and services		GROUP COMPANY 2.303.186 2.842.701
11.Real estate liens and pre-notices, amount to € 425,2m concerning guaranties for bank loans.	b) Purchases of goods and services c) Receivables		5.286.066 285.181 7.744.906 21.026.786
12.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 statement.	d) Payables		43.379.839 109.970
13. The number of employees at the end of the year was 131 for the Group in total of which 80 for the Company (2005: Group 228, Company 85).	e) Transactions and gross salaries of BoD members and management f) Receivables from BoD members and management		672.866 629.250 5.913	-
14.The Company, during January 2007, proceeded in the acquisition of 90% of the share capital of Cypriot company Robies Services Ltd, which owns 100% of a Romanian company that holds a 95.000 sqm plot of land in the western part of Bucharest. The total price of the above transaction is € 2.6m.		g) Payables from BoD members and management		-	-
		h) Sale of subsidiaries		10.950.000 10.950.000
		Athens, 6 March 2007
THE CHAIRMAN OF THE BOARD OF DIRECTORS & CHIEF EXECUTIVE OFFICER	THE GENERAL MANAGER & MEMBER OF THE BOARD OF DIRECTORS	THE DIRECTOR OF FINANCE & ADMINISTRATION	THE FINANCIAL DIRECTOR
APOSTOLOS S.TAMVAKAKIS I.D.No P704691	GEORGIOS K. PAPAGEORGIOU I.D.No P655346		ODYSSEAS E. ATHANASIOU I.D.No AB510661		BASILIOS . BALOUMIS Α I.D.No Τ061891

Company's website:	www.Lamda-development.net					Spiridon Ι.Theodoropoulos
BALANCE SHEET ( Amounts in €)					INCOME STATEMENT ( Amounts in €)
	GROUP 31/12/2006	31/12/2005	COMPANY 31/12/2006	31/12/2005		GROUP 1/01-31/12/2006 1/01-31/12/2005		COMPANY 1/01-31/12/2006 1/01-31/12/2005
ASSETS					Continuing operations
Non-current assets					Sales	108.158.166	61.003.580	3.007.953	6.090.669
Investment property	439.017.856	602.702.993	5.540.441		5.495.441 Cost of sales	(74.553.525)	(63.462.484)	(5.916.858)	(3.374.479)
Property, plant and equipment	48.334.727	49.133.840	982.819		1.505.602 Gross profit	33.604.641	(2.458.904)	(2.908.906)	2.716.190
Intangible assets	4.868.297	5.008.223	-		- Administrative expenses	(10.973.918)	(21.605.709)	(6.554.419)	(5.219.936)
Investments in associates	957.386	34.770.662	131.440.237		254.645.469 Reversal of provision for impairment	-	-	38.693.042	-
Available-for-sale financial assets	42.427.796	-	42.427.796		- Fair value gains / (losses) of investment property	82.183.042	159.325.055	45.000	(45.000)
Derivative financial instruments	31.150	-	-		- Profit / (loss) from participations sale in associates	37.984.028	4.991.703	66.929.471	9.127.700
Deferred income tax assets	20.574	328.861	-		139.715 Other operating income / (expenses) - net	(2.470.320)	2.124.441	(5.548.418)	779.814
Other receivables	75.377.186	3.060.183	49.730.705	2.338.084		140.327.473	142.376.586	90.655.770	7.358.768
	611.034.973	695.004.763	230.121.999	264.124.311	Earnings before interest, taxes, depreciation & amortization
Current assets					Depreciation	(2.289.392)	(1.950.856)	(648.272)	(674.366)
Inventories	58.394.743	80.939.513	-		- Earnings before interest and taxes	138.038.080	140.425.730	90.007.498	6.684.402
Trade and other receivables	30.452.747	77.112.115	14.414.017		7.039.934 Finance costs - net	(17.919.911)	(5.762.987)	(3.687.463)	(2.064.084)
Current income tax assets	2.506.107	2.770.365	1.411.689		756.177 Share of (loss) / profit of associates	2.262.584	3.950.496	1.620.333	898.950
Cash and cash equivalents	79.911.287 171.264.884	36.829.823 197.651.816	51.504.302 67.330.007		4.291.681 Profit before income tax 12.087.792 Minus: Taxes	122.380.753 (29.729.287)	138.613.239 (47.678.349)	87.940.368 (9.158.965)	5.519.267 (41.189)
Total assets	782.299.856	892.656.578	297.452.006		276.212.102 Profit for the year from continuing operations	92.651.466	90.934.891	78.781.402	5.478.078
EQUITY
Capital and reserves attributable to equity holders of the company					Discontinued operations
Share capital	235.722.818	235.878.092	235.722.817		235.878.092 Profit for the year from discontinued operations	2.650.869	(2.901.009)	1.048.419	-
Other reserves	23.357.593	5.983.471	22.052.196		4.630.689 Profit after tax for the year	95.302.335	88.033.883	79.829.821	5.478.078
Retained earnings / (Accumulated losses)	106.546.237	21.585.395	25.215.307	(52.863.652)
Total shareholders equity	365.626.648	263.446.958	282.990.321		187.645.129 Attributable to:
Minority interest	42.606.437	43.399.481	-		- Equity holders of the Company	94.534.422	80.604.184	79.829.821	5.478.078
Total equity	408.233.085	306.846.439	282.990.321		187.645.129 Minority interest	767.913	7.429.699	-	-
LIABILITIES						95.302.335	88.033.883	79.829.821	5.478.078
Non-current liabilities
Borrowings	252.924.016	125.673.929	-		31.320.689 Earnings per share from continuing operations
Deferred income tax liabilities	44.671.236	44.992.104	2.324.871		- (expressed in € per share)
Derivative financial instruments	124.538	-	-		- Basic	2,10	2,08	1,79	0,13
Retirement benefit obligations	303.200	583.332	275.993		173.098 Diluted	2,10	2,07	1,79	0,12
Other non-current liabilities	9.393.342	1.418.522	36.148	36.148
	307.416.333	172.667.887	2.637.012		31.529.935 Earnings per share from discontinued operations
Current liabilities					(expressed in € per share)
Trade and other payables	43.463.855	175.814.217	11.668.222	36.017.033 Basic		0,18	(1,12)	0,00	0,00
Current income tax liabilities	295.284	280.109	-		- Diluted	0,18	(1,12)	0,00	0,00
Borrowings	22.891.300	237.047.926	156.451	21.020.006
Total liabilities	66.650.439 374.066.771	413.142.252 585.810.139	11.824.673 14.461.685	88.566.974	57.037.039 Proposed dividend per share for 2006 (expressed in € per share)			0,23
Total equity and liabilities	782.299.856	892.656.578	297.452.006	276.212.102	CASH FLOW STATEMENT (Amounts in €) - indirect method
						GROUP		COMPANY
STATEMENT OF CHANGES IN EQUITY (Amounts in €)						1/01-31/12/2006 1/01-31/12/2005		1/01-31/12/2006 1/01-31/12/2005
	GROUP		COMPANY		Cash flows from operating activities
	31/12/2006	31/12/2005	31/12/2006	31/12/2005	Profit before income tax	122.380.753	138.613.239	87.940.368	5.519.267
Shareholder's equity at the beginning of the period (1/01/2006 & 1/01/2005 respectively) Net profit after taxes	306.846.439 95.302.335	215.832.610 88.033.883	187.645.129 79.829.821		181.126.068 Adjustments for: 5.478.078 Depreciation	2.289.392	1.950.856	648.272	674.366
	402.148.774	303.866.493	267.474.950		186.604.146 Fair value gains / (losses) of investment property	(82.183.042)	(159.325.055)	(45.000)	45.000
Currency translation differences	37.900	1.698.662	-		- Provisions	3.270.824	7.612.705	6.005	363.101
Shares issued in subsidiaries	3.848.000	1.197.000	-		- Employees share option scheme	-	521.924	-	521.924
Fair value gains on available-for-sale financial assets	7.972.364	-	15.670.647		- Interest and other related expenses	(40.246.611)	(9.591.812)	(101.642.846)	(10.356.650)
Cash flow hedges	(70.041)	-	-		- Finance costs - net	17.919.909	7.441.583	3.687.463	2.064.084
Transfers between reserves	2.893	-	-		- Other non-cash flow items	(19.315.680)	(441.351)	503.100	-
Net income / (expense) recognised directly in equity	(12.782)	-	27.118	-		4.115.544	(13.217.910)	(8.902.638)	(1.168.907)
Sale of subsidiaries Change in subsidiary shareholdings	(2.841.549) (2.670.083)	(1.572.096) 615.397	- -	-	- Changes in working capital :
Purchase of treasury shares	(182.393)	-	(182.393)		- Decrease / (increase) in inventories	2.160.304	10.008.803	-	-
Employees share option scheme	-	1.040.982	-		1.040.983 Decrease / (increase) in receivables	(32.477.377)	(19.855.949)	(48.525.976)	(7.537.436)
Shareholder's equity at year end (31/12/2006 & 31/12/2005 respectively)	408.233.085	306.846.439	282.990.321		187.645.129 Increase / (decrease) in payables	(63.360.111)	9.725.856	(24.303.167)	(11.149.923)
					Minus:
Additional records and accounts : % Participation			% Participation		Interest expenses paid Income tax paid	(16.918.983) (6.485.038)	(6.080.409) (3.650.855)	(5.267.425) (7.321.497)	(1.848.663) (534.856)
of the parent 1. GROUP'S COMPOSITION company			of the parent company		Cash flows from operating activities - net	(112.965.661)	(23.070.463)	(94.320.704)	(22.239.784)
Com pany Com pany LAMDA Developm ent SA P arent com pany					Cash flows from investing activities
Full consolidation Proportionate consolidation LAMDA Estate Development SA Athens 100,00% LAMDA Olympia Village SA KRONOS PARKING SA Athens Indirect 100,00% LAMDA Akinita SA		Athens Athens	49,24% 50,00%		Purchases of property, plant, equipment and investment property	(23.568.979)	(127.891.308)	(125.489)	(2.377.093)
LAMDA Prime Properties SA Athens 100,00% SC LAMDA Olympic SRL PYLAIA SA Athens 60,10% GLS OOD LAMDA Technol Flisvos Holding SA Athens 45,00% LAMDA Redding Contracting Consortium		Rom ania Bulgaria Indirect Athens Indirect	50,00% 50,00% 50,00%		Proceeds from sale of property, plant, equipment and investment property	22.553	2.299.118	-	2.306.955
LAMDA Technol Flisvos Marina SA Athens Indirect 34,75% LAMDA Erga Anaptyxis SA Athens 100,00% Equity consolidation LAMDA Dom i SA Athens 100,00% 4K Anaptyxi Akinitoy SA		Athens Indirect	30,00%		Dividends received	1.620.333	294.000	1.620.333	898.950
LAMDA Property Managem ent SA Athens 100,00% MC Property Management SA LAMDA Hellix SA Athens 80,00% ECE LAMDA HELLAS SA LAMDA Anadixi SA Athens 100,00% SC LAMDA MED SRL		Athens Indirect Athens Rom ania Indirect	25,00% 34,00% 40,00%		Loans granted to related parties Proceeds from sale of subsidiaries	(5.076.000) 161.895.107	- 17.345.766	(10.000.000) 161.895.107	- 18.383.193
LAMDA Protypi Anaptyxi SA Athens 100,00% EFG PROPERTY SERVICES SA LAMDA Developm ent DOO Beograd S erbia LAMDA Developm ent Rom ania SRL Romania 100,00% EFG PROPERTY SERVICES SOFIA AD	100,00% EFG PROPERTY SERVICES DOO BEOGRAD	Rom ania Serbia Bulgaria	20,00% 20,00% 20,00%		Participation in share capital issue in subsidiaries and purchase of subsidiaries	(8.665.964)	(22.011.008)	(12.333.393)	(23.725.014)
LAMDA Developm ent Sofia Bulgaria 100,00%					Interest received	98.599	195.398	680.636	13.400
2.In the parent company, the regular tax audit has been completed for the years 2003 to 2005, and tax payment of € 25.239 has occurred. LAMDA Estate Development S.A. has been tax					Cash flows from investing activities - net	126.325.649	(129.768.035)	141.737.194	(4.499.610)
audited until the year-end 2003 and LAMDA Prime Properties S.A. until the year-end 2004. All the other subsidiaries have not been tax audited since year 2003. Therefore, Group's tax					Cash flows from financing activities
obligations have not been defined permanently. 3.The accounting principles adopted in the preparation and presentation of the financial statements are consistent with the same accounting principles adopted for the financial statements of					Proceeds from issuance of shares of subsidiaries Purchase of treasury shares	5.215.807 (182.393)	1.676.443 -	(1.278) (182.393)	479.443 -
the Company and the Group for the year ended 31/12/2005.					Proceeds from subsidiaries' share capital decrease	(100.000)	-	52.164.298	-

4.Certain comparatives in the income statement and cash flow statement have been reclassified in order to better present the Company's performance. For further analysis, see note 34 of

the Company's annual financial statements.

Dividends paid to Company's shareholders (254) (10.148) (254) (10.148) Borrowings received 282.889.307 288.012.688 136.082.073 37.295.628

5.On 7/11/2006 the Company transferred 50% of its participation in LAMDA Olympia Village S.A. to HSBC LUXEMBOURG SARL. As a result, the Group with this transaction loses the control and in league with HSBC LUXEMBOURG SARL have the power to govern the financial and operating policies of LAMDA Olympia Village S.A. Also, the consolidation method is

Repayments of capital repayments of finance leases (637.265) (620.873) - -