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Lamda Development S.A. Audit Report / Information 2015

Mar 30, 2016

2660_10-k_2016-03-30_cba45ff5-511e-425f-895f-46fd801e4239.pdf

Audit Report / Information

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GROUP
COMPANY
GROUP
31/12/2015
31/12/2014
31/12/2015
31/12/2014
1/1-31/12/2015 1/1-31/12/2014 1/1-31/12/2015 1/1-31/12/2014
ASSETS
Investment property
379.362
379.862
1.840
1.840 Revenues from investment property and other revenues
44.037
44.240
Owner occupied property, plant and equipment
4.010
3.818
399
179 Fair value gains / (losses) of investment property
Investments in subsidiaries, joint ventures and associates
106.570
112.018
230.012
237.337 and other assets
(9.303)
(25.023)
Other non-current assets
19.294
15.712
96.140
92.885 Gain/(Loss) from sale of investment property
-
-
Inventories
61.419
70.064
-
- Minus: Operating expenses
(12.592)
(14.267)
Trade and other receivables
29.932
33.826
27.755
31.435 Gross revenue
22.142
4.951
Financial instruments held at fair value through profit or loss
23.642
-
23.642
- Profit / (loss) before interest and taxes
7.736
(9.839)
Cash and cash equivalents
107.173
187.636
76.388
157.191 Loss before income tax
(14.609)
(24.181)
TOTAL ASSETS
731.404
802.937
456.177
520.868 Loss after taxes (A)
(22.103)
(23.501)
EQUITY AND LIABILITIES
Share capital
23.917
23.917
23.917
23.917 Profit / (loss) attributable to:
Share premium
360.110
360.007
360.110
360.007 - Owners of the parent
(22.060)
(23.453)
Treasury shares
(6.737)
(1.757)
(6.737)
(1.757) - Non-controlling interests
(43)
(47)
Other equity components
(16.516)
5.486
(87.918)
(60.676) Other comprehensive income / (loss) after tax (Β)
(16)
(462)
Total share capital and reserves (a)
360.773
387.652
289.371
321.491 Total other comprehensive income / (loss) after tax (Α)+(Β)
(22.119)
(23.962)
Non-controlling interests (b)
(168)
(130)
-
- Profit / (loss) attributable to:
Total equity (c) = (a) + (b)
360.605
387.522
289.371
321.491 - Owners of the parent
(22.075)
(23.913)
Long-term borrowings
269.186
225.319
129.293
64.550 - Non-controlling interests
(43)
(50)
Deferred tax liabilities
31.572
25.250
-
- Earnings per share after taxes (expressed in € per share)
Other non-current liabilities
17.394
17.811
19.537
19.481 - Basic
(0,2806)
(0,4020)
Short-term borrowings
20.419
113.157
2.666
100.150 - Diluted
(0,2806)
(0,4015)
Other short-term liabilities
32.227
33.877
15.310
15.196
Total liabilities (d)
370.798
415.415
166.806
199.377 Profit / (loss) before interest, taxes, depreciation
520.868 and amortisation
Company's data
Supervising authority:
Company's web site:
Date of approval of the financial statements by the Board of Directors:
The certified auditor:
Auditing firm:
Type of auditors opinion:
www.lamdadev.com
30 March 2016
Unqualified
PricewaterhouseCoopers SA Ministry of Economy, Infrastructure, Marine and Tourism
Konstantinos Michalatos (SOEL Reg. No 17701)
Board of Directors
Chairman of the Board: Anastasios K. Giannitsis
Vice Chairman: Evangelos I. Chronis
Chief Executive Officer: Odyssefs Ε. Athanasiou
Members: Photios S. Antonatos
Evgenia G. Paizi
Dimitrios Ch. Politis
Georgios K. Gerardos
Odyssefs P. Kyriacopoulos
Achillefs V. Konstantakopoulos
STATEMENT OF FINANCIAL POSITION (Amounts in € thousands) STATEMENT OF COMPREHENSIVE INCOME (Amounts in € thousands)
COMPANY
1.264 1.334
(16.894) (18.020)
- -
- -
(15.629) (16.686)
(26.225) (27.044)
(31.107) (26.782)
(27.304) (23.491)
(27.304) (23.491)
- -
(11) (74)
(27.316) (23.565)
(27.316) (23.565)
- -
(0,3473) (0,4026)
(0,3473) (0,4021)
TOTAL EQUITY AND LIABILITIES (c) + (d) 731.404 802.937 456.177 8.666 (8.902) (26.055) (26.922)
GROUP COMPANY
31/12/2015 30/6/2014 31/12/2015 30/6/2014
Equity at the beginning of the year (1/1/2015 and 1/1/2014 respectively) 387.522 249.555 321.491 183.129
Total comprehensive income after tax (continuing operations) (22.119) (23.962) (27.316) (23.565)
Share capital increase - 146.972 - 146.972
Increase/(decrease) in the share capital of subsidiaries 5 3 - -
Increase in share capital due to employees share option scheme 74 160 74 160
Change in deferred tax rate 102 - 102 -
(Purchase)/sale of treasury shares (4.980) 14.795 (4.980) 14.795
Equity at the end of the year (31/12/2015 and 31/12/2014 respectively) 360.605 387.522 289.371 321.491
CASH FLOW STATEMENT - Indirect Method (Amounts in € thousands)
GROUP COMPANY
31/12/2015 30/6/2014 31/12/2015 30/6/2014
Cash flows from operating activities
Losses before taxes from continuing operations (14.609) (24.181) (31.107) (26.782)
Adjustments for: - - - -
Net losses from fair value adjustment on investment property and other assets 9.303 25.023 16.894 18.020
Depreciation 930 937 170 122
Provisions 351 646 50 39
Results (income, expenses, gains and losses) of investment operations 8.285 1.997 (2.480) (5.257)
Finance costs - net 13.971 12.375 7.243 4.996
Other non-cash flow items (1.173) 166 (1.073) 166
Changes in working capital :
Increase in inventories (114) (346) - -
(Increase)/decrease in receivables 1.915 (6.599) 1.739 (1.992)
Decrease in payables (3.607) 2.712 530 1.131
Minus: - - - -
Interest paid (13.678) (13.399) (8.140) (7.186)
Income tax paid (2.325) (2.243) - 188
Cash flows from operating activities - net (750) (2.912) (16.175) (16.556)
Cash flows from investing activities
Purchases of property, plant and equipment and investment properties (1.251) (2.031) (394) (66)
Proceeds from sale of ppe and investment property 18 253 - -
(Purchase)/sale of financial instruments held at fair value through profit or loss (23.831) - (23.831) -
Loans to related parties (1.475) - - -
Dividends received - 2.192 5.124 2.192
Interest received 1.150 2.332 1.009 1.508
Proceeds from disposal of participations 860 1.246 860 1.246
Increase/(decrease) in share capital of participations (985) 139 (9.619) (4.189)
Cash flows from / (to) investing activities - net (25.514) 4.131 (26.851) 691
Cash flows from financing activities
Proceeds from issues of shares - 146.112 - 146.112
Purchase of treasury shares (4.980) 14.795 (4.980) 14.795
Costs for shares issued (2.048) - (2.048) -
Increase in the share capital of subsidiaries 5 3 - -
Borrowings received 133.950 - 133.950 -
Repayments of borrowings (180.121) (11.089) (164.700) (450)
Capital repayments of finance leases (1.006) (989) - -
Cash flows from / (to) financing activities - net (54.200) 148.833 (37.778) 160.458
Net increase / (decrease) in cash and cash equivalents (80.463) 150.051 (80.803) 144.593
Cash and cash equivalents at the beginning of the period 187.636 32.586 157.191 7.597
Restricted cash restated to receivables - 5.000 - 5.000
Cash and cash equivalents at the end of the period 107.173 187.636 76.388 157.191

CHAIRMAN OF THE BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER FINANCIAL DIRECTOR

ANASTASIOS K. GIANNITSIS ODYSSEFS E. ATHANASIOU VASSILIOS Α. BALOUMIS
I.D.No Η865601 I.D.No AB510661 I.D.No AK130062

In accordance with 4/507/28.04.2009 resolution of the Greek Capital Market Committee.

LAMDA DEVELOPMENT S.A.

HOLDING AND REAL ESTATE DEVELOPMENT COMPANY S.A.

Company's number in the General Electronic Commercial Registry: 3379701000

Registered offices: 37A Kifissias Ave., 151 23 Maroussi

FINANCIAL DATA AND INFORMATION for the period 1 Janaury 2015 - 31 December 2015

The financial information listed below is aiming to provide a general awareness about the financial position and the financial results of LAMDA DEVELOPMENT S.A. Consequently, it is recommended to the reader, before any investment decision or transaction performed with the Company, to visit the website of the Company where the financial statements are available with the certified auditor's report.

  1. The Company has been audited by tax authorities until the fiscal year of 2008. For further information regarding the Company's and Group's unaudited fiscal years refer to note 27 of the annual financial statements for the year ended 31/12/2015.

STATEMENT OF CHANGES IN EQUITY (Amounts in € thousands) ADDITIONAL DATA AND INFORMATION

Maroussi, 30 March 2016

  1. The accounting principles adopted in the preparation and presentation of the annual financial statements for the year ended 31/12/2015 are consistent with the same accounting principles adopted forthe annual financial statements of the Company and the Group for the year 2015. 3. The company Consolidated Lamda Holdings SA, registered in Luxembourg, participates in Company's share capital by 50,87% as at December 31, 2015 and therefore the Group's financial statements are included in Consolidated Lamda Holdings SA's consolidated financial statements by the full consolidation method.

  2. Companies included in the consolidated financial statements together with names, country of establishment, participation interest, directly and indirectly, and method of consolidation are presented in note 8 of the annual financial statements for the year ended 31/12/2015.

  3. The Company proceeded to share capital increase in its subsidiaries Lamda Development (Netherlands) BV, LAMDA Erga Anaptyxis SA, LAMDA Domi SA, LAMDA Leisure SA, Property Development DOO, LAMDA Development Sofia EOOD, LAMDA Estate Development SA, Robies Services Ltd and GEAKAT SA by €81.350k, €2.000k, €3.075k, €800k, €804k, €40k, €400k, €45k and €160k,respectively. Also, the subsidiary LAMDA Development (Netherlands) BV decreased its share capital by €80.000k. For further details in relation to the

Group's participations, see note 8 of the annual financial statements for the year ended 31/12/2015. 6. Within February 2015, the Company proceeded with selected placement of its cash in prime investment grade money market funds and supranational bonds with various financial counterparties with high ratings. Regarding the subsidiaries, they proceeded to total payments of €16.4m within current reporting period, as described in their bond loan contracts. The cash and cash equivalents at 31/12/2015 are mainly placed in bank institutions as well as in prime investment grade money market funds and supranational bonds.

  1. Real estate liens and pre-notices over assets, amount to €12m concerning guarantees for bank loans.

  2. The number of employees at the end of the year was: Group 140, Company 66 (31/12/2014: Group 137, Company 66). There are no seasonal employees at the end of the year (31/12/2014: Group 0, Company 0).

  3. As at the end of the period, the Company acquires 1.745.594 treasury shares at an average price of €3,85 per share, at an aggregate total value of €6.7m.

  4. Other comprehensive income/(loss) after tax includes: a) Cash flow hedges profit, after tax €30k (31/12/2014 loss €270k) at Group level, b) Foreign exchange difference €-30k (31/12/2014 €-58k) at Group level and c) Actuarial gains/(losses), after tax €-16k (31/12/2014 €-134k) at Group level and €-11k (31/12/2014 €-74k) at Company level.

  5. i) 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 statements ii) During year ended 31/12/2015 a) No provision has been made regarding cases under dispute, litigation, arbitrations or court decisions b) The total amount of the accumulative provision made for the Group's and Company's unaudited by the tax authorities years amount to €1,1m (Group's interest) and €0,7m respectively c) The other provisions that have been made accumulatively for the Group and the Company amount to €8,6m (Group's interest) and include provisions for customers' impairment.

  6. The Company, in January 2016, announces the acquisition of 66% of the share capital of ECE-LAMDA HELLAS SA aiming to the quality upgrading of the property management services of "The Mall Athens" and "Golden Hall", as well as for cost saving purposes. Given that the Company already held 34% of the share capital of ECE-LAMDA HELLAS SA, the Company becomes the holder of 100% of the share capital of the aforementioned company, which is renamed to "Malls Management Services SA.

  7. The Group at 17/2/2016 acquired the 80% of joint ownership in 86 premises located in the office building Kronos Business Center in Maroussi, by its 100% subsidiary LAMDA Estate Development S.A., following the exercise of the repurchase option upon the expiration of the financial lease with Hellas Capital Leasing S.A. The residual value paid on the signing date of the transfer contract for the

above-mentioned premises, amounts to €3.9m, according to the relevant term of the financial lease.

  1. Intercompany transactions for the year ended December 31, 2015 and intercompany balances as at December 31, 2014 according to

IAS 24 are as follows:

(Amounts in $\epsilon$ thous ands) GROUP COMPANY
a) Revenues 409 1.132
b) Expenses 2.391 911
c) Dividend income 2421
d) Receivables 1.536 94.645
e) Payables 18.555 21 228
f) Transactions and gross salaries of BoD members and key management 925 925