Lamda Development S.A. — Interim / Quarterly Report 2007

Sep 29, 2015

LAMDA DEVELOPMENT S.A. HOLDING AND REAL ESTATE DEVELOPMENT COMPANY S.A. S.A.REG.No 3039/06/B/86/28 Registered office: Laodikeias 16 & Nimfaiou, 11528, Athens
Summary financial data and information for the nine-month period ended 30 September 2007 According to the decision 2/396/31.08.2006 of the Board of Directors of the Capital Market Commission 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 (www.Lamda
Registered office: Laodikeias 16 & Nimfaiou, 11528, Athens Register No: 3039/06/Β/86/28 Main activity: Holding and Real Estate Development Regulatory authorities: Ministry of Development, Department of Anonymes Companies Date of approval of the nine-month interim financial information (from which summary data were compiled): 8 November 2007 Certified auditor accountant: Michalatos Konstantinos (SOEL Reg.No.17701) Audit firm: PricewaterhouseCoopers S.A. Auditors opinion: Not required Company's website: www.Lamda-development.net					development.net) where the interim financial information prepared in accordance with International Accounting Standards are available together with the auditors review report if required.	Board of Directors Chairman of the Board and Managing Director: Apostolos S.Tamvakakis Vice president: Evaggelos I.Chronis Members: Georgios K.Papageorgiou Emmanuel Leonard Bussetil Petros P.Kalantzis Dimitrios Th.Papalexopoulos Fotios S.Antonatos Spiridon Ι.Theodoropoulos Georgios K.Gerardos
BALANCE SHEET ( Amounts in €)						Achilleas V.Konstantakopoulos INCOME STATEMENT ( Amounts in €)
	GROUP 30/09/2007	31/12/2006	COMPANY 30/09/2007	31/12/2006		GROUP COMPANY 1/01- 1/01- 1/01-	GROUP 1/01- 1/07- 1/07-	COMPANY 1/07- 1/07-
ASSETS Non-current assets					Continuing operations	30/09/2007 30/09/2006 30/09/2007	30/09/2006 30/09/2007 30/09/2006	30/09/2007 30/09/2006
Investment property Property, plant and equipment	465,295,963 129,137,770	439,017,856 48,334,727	5,560,441 594,311	5,540,441 Sales	982,819 Gross profit	67,281,806 80,542,834 1,371,558 2,725,403 31,396,868 39,698,775 1,333,010 2,591,988	16,049,337 23,000,189 11,383,073 13,516,100	351,129 696,843 344,129 689,237
Intangible assets Investments in associates	4,763,352 1,396,127	4,868,297 957,386	- 172,887,604		- Fair value gains / (losses) of investment property 131,440,237 Earnings / (losses) before interest, taxes, depreciation & amortization	19,525,301 43,231,452 20,000 46,745,652 70,010,135 4,300,633 34,004,138	- - 5,691,762	- - - 6,640,283 (1,603,169) (1,331,794)
Available-for-sale financial assets Derivative financial instruments	34,051,921 927,657	42,427,796 31,150	34,051,921 -		42,427,796 Depreciation - Earnings / (losses) before interest and taxes	(1,440,262) (1,499,809) (491,141) (485,994) 45,305,390 68,510,326 3,809,492 33,518,144	(446,603) 5,245,159	(566,148) (163,432) (161,996) 6,074,135 (1,766,601) (1,493,790)
Deferred income tax assets Other receivables	860,520 76,249,794	20,574 75,377,186	- 117,679,756		- Finance costs - net 49,730,705 Share of (loss) / profit of associates	(9,029,645) (13,284,173) 628,049 (2,669,131) 403,741 497,096 -	(3,374,196) (4,965,513) - 13,972	(415,739) (1,134,449) 116,871 - -
Current assets Inventories	712,683,104	611,034,973	330,774,033		230,121,999 Profit / (loss) before income tax Minus: Taxes - Profit / (loss) for the period from continuing operations	36,679,486 55,723,249 4,437,541 30,849,013 (8,713,198) (11,133,217) (798,523) (77,106)	1,884,936 (591,738)	1,225,493 (2,182,339) (2,628,239) (908,266) 891,665 (18,902)
Trade and other receivables	46,816,482 32,663,803	58,394,743 30,452,747	- 9,163,044	14,414,017		27,966,287 44,590,032 3,639,018 30,771,907	1,293,198	317,227 (1,290,674) (2,647,141)
Current income tax assets Cash and cash equivalents	4,478,866 48,274,905	2,506,107 79,911,287	4,051,336 300,584		1,411,689 Discontinued operations 51,504,302 Profit for the period from discontinued operations	- 2,650,869	- 1,048,419 -	827,115 - 1,048,419
Total assets	132,234,057 844,917,162	171,264,884 782,299,856	13,514,964 344,288,997	297,452,006	67,330,007 Profit / (loss) after tax for the period (continuing and discontinued operations)	27,966,287 47,240,901 3,639,018 31,820,326	1,293,198	1,144,342 (1,290,674) (1,598,722)
EQUITY Capital and reserves attributable to equity holders of the company					Attributable to:
Share capital Other reserves Retained earnings	235,722,818 17,258,000	235,722,818 23,357,593	235,722,818 13,676,321		235,722,818 Equity holders of the Company 22,052,196 Minority interest	24,032,014 46,257,927 3,639,018 31,820,326 3,934,273 982,974 -	504,455 - 788,743	1,650,471 (1,290,674) (1,598,722) (506,129) - -
Total shareholders' equity	120,522,135 373,502,953	106,546,237 365,626,648	18,732,503 268,131,642	25,215,307 282,990,321		27,966,287 47,240,901 3,639,018 31,820,326	1,293,198	1,144,342 (1,290,674) (1,598,722)
Minority interest Total equity LIABILITIES	47,988,434 421,491,387	42,606,437 408,233,085	- 268,131,642		- Earnings / (losses) per share from continuing operations 282,990,321 (expressed in € per share) Basic	0.55 0.99 0.08	0.70 0.02	0.01 (0.03) (0.06)
Non-current liabilities Borrowings	312,981,452	252,924,016	61,500,000	-	Diluted	0.55 0.99 0.08	0.70 0.02	0.01 (0.03) (0.06)
Deferred income tax liabilities Derivative financial instruments	51,199,060 -	44,671,236 124,538	3,123,393 -		2,324,871 Earnings / (losses) per share from discontinued operations - (expressed in € per share)
Retirement benefit obligations Other non-current liabilities	303,200 11,627,204	303,200 9,393,342	275,993 36,148		275,993 Basic 36,148 Diluted	0.00 0.06 0.00 0.00 0.06 0.00	0.02 0.00 0.02 0.00	0.03 0.00 0.02 0.03 0.00 0.02
Current liabilities	376,110,917	307,416,333	64,935,534	2,637,012		CASH FLOW STATEMENT (Amounts in €) - indirect method
Trade and other payables Current income tax liabilities	37,872,663 3,775,243	43,463,855 295,284	11,221,821 -	11,668,222 -			GROUP 1/01- 1/01-	COMPANY 1/01- 1/01-
Borrowings	5,666,953 47,314,859	22,891,300 66,650,439	- 11,221,821		156,451 Cash flows from operating activities 11,824,673 Profit before income tax		30/09/2007 30/09/2006 36,679,486 55,723,249	30/09/2007 30/09/2006 4,437,541 30,849,013
Total liabilities Total equity and liabilities	423,425,775 844,917,162	374,066,771 782,299,856	76,157,355 344,288,997		14,461,685 Adjustments for: 297,452,006 Fair value gains / (losses) of investment property		(19,525,301) (43,231,452)	(20,000) -
STATEMENT OF CHANGES IN EQUITY (Amounts in €)					Results (income, expenses, gains and losses) of investment operations Reversal of provision for participation impairment		-	(10,467,912) (6,354,812) (10,180,607) (257,716) - - (38,693,042)
	GROUP 30/09/2007	30/09/2006	COMPANY 30/09/2007	30/09/2006	Depreciation Finance costs - net		1,440,262 9,029,645 13,284,173	1,499,809 491,141 485,994 (628,049) 2,669,131
Shareholders' equity at the beginning of the period (01/01/2007 & 01/01/2006 respectively)	408,233,085	306,846,439	282,990,321	187,645,129	Other non-cash flow items		366,033 17,522,213 21,410,277	489,311 91,325 (6,566,150) (5,808,649) (11,512,771)
Net profit after taxes	27,966,287 436,199,372	47,240,901 354,087,340	3,639,018 286,629,339		31,820,326 Changes in working capital : 219,465,455 Decrease in inventories		8,155,212 27,552,031	- -
Reserves from revaluation of financial assets available-for-sale Reserves from property, plant & equipment transfer to investment property, net of tax	(8,375,875) 1,315,010	3,285,863 -	(8,375,875) -		10,984,145 Decrease in receivables - Decrease in payables		1,433,730 (1,075,214) ##########	4,562,784 110,970 6,290,366 (802,894) (24,728,414)
Cash flow hedges, net of tax Currency translation differences	604,933 561,613	- 17,375	- -		- Increase in retirement benefit obligations - Minus:		-	(316,286) - -
Shares issued in subsidiaries Changes in participation to subsidiaries	1,797,502 (439,206)	3,848,000 (2,840,638)	-		- Interest paid Income tax paid		(8,266,710) (13,412,511) (2,372,568)	(169,658) (2,620,766) (558,738) (2,639,647) -
Acquisition of subsidiaries Dividends relating to 2006 approved by the shareholders Purchase of treasury shares	(140) (10,171,822) -	- - (3,560)	- (10,121,822)		- Cash flows from operating activities - net - Cash flows from investing activities (3,560) Purchases of property, plant, equipment and investment property		15,396,664 (75,948,488) (87,194,590) (14,217,730)	(9,309,878) (32,571,585) (102,633) (96,450)
Deferred tax adjustment Shareholders' equity at year end (30/09/2007 & 30/09/2006 respectively)	- 421,491,387	22,267 358,416,647	- 268,131,642		22,267 Dividends received 230,468,305 Loans granted to related parties		1,064,171 (250,000)	897,415 1,180,607 897,415 - (66,595,400) (44,636,796)
Additional records and accounts :					Interest received Proceeds from repayments of borrowings granted to related parties		1,323,937 5,076,000	245,260 1,100,975 483,659 - 10,000,000 22,252,196
% Participation of the parent company				% Participation of the parent company	Sale of participation Decrease in subsidiaries' share capital		- 15,864,029 -	- 15,880,301 - 1,036,296 -
1. GROUP'S COMPOSITION Company Company LAMDA Development SA Parent company					Increase in participations Increase in assets due to acquisition of subsidiaries		(472,267) (190,376)	- (39,679,163) (11,907,886) - - -
Full consolidation LAMDA Estate Development SA Greece	100.00% LAMDA Olympia Village SA	Proportionate consolidation	Greece	49.24%	Cash flows from investing activities - net		(80,643,124)	2,788,974 (93,059,317) (17,127,561)
KRONOS PARKING SA Greece Indirect 100.00% LAMDA Akinita SA LAMDA Prime Properties SA Greece PYLAIA SA Greece LAMDA Technol Flisvos Holding SA Greece	100.00% LAMDA Redding Contracting Consortium 60.10% SC LAMDA Olympic SRL 51.00% Singidunum-Buildings DOO		Greece Greece Indirect Romania Serbia Indirect	50.00% 50.00% 50.00% 50.00%	Cash flows from financing activities Proceeds from issuance of shares of subsidiaries		- 6,229,250	- -
LAMDA Technol Flisvos Marina SA Greece Indirect 39.39% GLS OOD LAMDA Erga Anaptyxis SA Greece 100.00% LAMDA Domi SA Greece 100.00% LAMDA Property Management SA Greece	100.00% 4K Anaptyxi Akinitoy SA	Equity consolidation	Bulgaria Indirect Greece Indirect	50.00% 30.00%	Dividends paid to Company's shareholders Purchase of treasury shares Borrowings received		(10,228,071) - 66,421,102 226,368,988	(254) (10,178,071) (254) (3,560) - (3,560) 61,500,000 89,082,073
LAMDA Hellix SA Greece LAMDA Anadixi SA Greece LAMDA Protypi Anaptyxi SA Greece	80.00% MC Property Management SA 100.00% ECE LAMDA HELLAS SA 100.00% ATHENS METROPOLITAN EXPO SA		Greece Indirect Greece Greece	25.00% 34.00% 11.67%	Borrowings transaction costs Capital repayments of finance leases		(1,195,592) (478,160)	- - - - - -
LAMDA Waste Management SA Greece 100.00% SC LAMDA MED SRL GEAKAT SA Greece LAMDA Development DOO Beograd Σερβία Property Development DOO Σερβία	100.00% EFG PROPERTY SERVICES SA 100.00% EFG PROPERTY SERVICES DOO BEOGRAD 100.00% EFG PROPERTY SERVICES SOFIA AD		Romania Indirect Romania Serbia Bulgaria	40.00% 20.00% 20.00% 20.00%	Repayments of borrowings Cash flows from financing activities - net		(20,909,200) ########## 33,610,079 73,521,236	(156,451) (31,309,150) 51,165,477 57,769,109
LAMDA Development Romania SRL Romania 100.00% LAMDA Development Sofia EOOD Bulgaria 100.00% LAMDA Development South EOOD Bulgaria 100.00%					Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of period		(31,636,382) 79,911,287 36,359,076	361,722 (51,203,717) 8,069,962 51,504,302 4,291,681
LAMDA Development Vitosha EOOD Bulgaria 100.00% TIHI OOD Bulgaria Indirect 100.00% LAMDA Development Montenegro DOO Montenegro 100.00% LAMDA Development (Netherlands) BV The Netherlands 100.00%					Cash and cash equivalents - discontinued operations Cash and cash equivalents at the end of period		- 48,274,905 36,723,239	2,440 - - 300,584 12,361,643
Robies Services Ltd Cyprus 90.00% Robies Proprietati Imobiliare SRL Romania Indirect 90.00%					12. The Company during the six-month period ended 30 June 2007 established the companies Lamda Development Montenegro DOO registered in Montenegro, LAMDA Waste Management SA registered in Greece,
2. The Company has been tax audited until the year 2005. The tax audit has been completed for LAMDA Estate Develoment for the years 2004 to 2006 and additional taxes occurred in the amount of € 1.2m. LAMDA Prime Properties has been tax audited until 2004. All the other subsidiaries have not been tax audited since year 2003. Therefore, Group's tax obligations have not been defined permanently.			LAMDA Development Vitosha EOOD and LAMDA Development South EOOD registered in Bulgaria and Property Development DOO registered in Serbia. 13. The Company during the six-month period ended 30 June 2007 proceeded in the acquisition of 90% of the share capital of Cypriot company Robies Services Ltd, which owns 100% of Romanian company Robies
3. The accounting principles adopted in the preparation and presentation of the interim financial information are consistent with the same accounting principles adopted for the financial statements of the Company and the Group for the year ended 31 December 2006.		Proprietati Imobiliare SRL. Also, the subsidiary company LAMDA Development (Netherlands) BV registered in The Netherlands paid €10.3m for the acquisition of 100% of TIHI EOOD, registered in Bulgaria, share capital. In addition, on 03/07/2007 the Company has acquired GEAKAT SA which holds a 116,000 sqm plot of land in Perdika district of Aegina island. The transaction cost is approximately € 13.5m.
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 20 of the Company's interim financial information. 5. During 2006, the Company proceeded in the sale of its subsidiaries LAMDA Shipyards and Marine Services S.A. and ARGONAFTIS M.S.A. and as a result, business segment that				14. On 12/07/2007 LAMDA Development SA announced the signing, through its 100% subsidiary company in Romania "Lamda Development Romania SrL", of a pre-sale agreement for a plot of land of 10,000 sqm in Bucharest.
refers to shipyards services is regarded as discontinued operation. The profit after tax from discontinued operations at 30/09/2006 amounted to profit € 1.05m for the Company results and € 2.65m for the Group results.						15. On 23/07/2007, the Company increased its participation in 100% subsidiary LAMDA Development (Netherlands) BV registered in The Netherlands, by €5m. 16. On 13/08/2007, the Company announces that its 100% subsidiary company in Serbia, Property Development DOO, was the highest bidder in the open public contest for the sale of the property that was possessed by the company BEKO which was under the status of bankruptcy. The contest took place as an open auction and the bid reached € 55.8m.
6. 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 € 15m. 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	17. The Company participated by 11.7% in the share capital of ATHENS METROPOLITAN EXPO SA which through a concession agreement is developing and will operate the new Exhibition and Convention Center that will be constructed in the premises of the Athens International Airport.
company foresees a favorable outcome on these cases. 7. The company Consolidated Lamda Holdings SA registered in Luxembourg participates in Company's share capital by 55,68% and therefore Group's financial statements are included in Consolidated Lamda Holdings SA's consolidated financial statements.			18. Intercompany transactions for the period ended 30 September 2007 and intercompany balances as of 30 September 2007, according to IAS 24 are as follows: Amounts in € a) Sales of goods and services		GROUP COMPANY 22,310,995 1,381,302
8. Real estate liens and pre-notices, amount to € 425.2m concerning guaranties for bank loans. 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 statement.					b) Purchases of goods and services c) Dividend income d) Receivables		4,712,037 368,044 1,064,171 1,180,607 2,982,252 74,352,576
10. The number of employees at the end of the period was 135 for the Group in total of which 83 for the Company (30/09/2006: Group 130, Company 80) from which seasonal were: Group 7, Company 0 (30/09/2006: Group 0, Company 0).					e) Payables f) Transactions and gross salaries of BoD members and management g) Receivables from BoD members and management		30,056,638 28,761,297 952,330 952,330 20,123	-
11. On 02/07/2007, the Company acquired an extra 6% of the share capital of Lamda TechnolFlisvos Marina with transaction cost € 437k. As a result, the Company's participation h) Payables to BoD members and management - - i) Cash at bank - related parties 10,054,150 285,765 reached 51%.
Athens, 8 November 2007 THE CHAIRMAN OF THE BOARD OF DIRECTORS THE GENERAL MANAGER THE DIRECTOR OF FINANCE & ADMINISTRATION THE FINANCIAL DIRECTOR & CHIEF EXECUTIVE OFFICER & MEMBER OF THE BOARD OF DIRECTORS
APOSTOLOS S.TAMVAKAKIS GEORGIOS K. PAPAGEORGIOU					ODYSSEAS E. ATHANASIOU			BASILIOS Α. BALOUMIS
I.D.No P704691				I.D.No P655346	I.D.No AB510661			I.D.No Τ061891