Lamda Development S.A. — Interim / Quarterly Report 2018

May 30, 2018

LAMDA Development S.A.

Condensed separate and consolidated interim financial statements in accordance with International Financial Reporting Standards («IFRS»)

1 January – 31 March 2018

G.E.MI.: 3379701000

37^A Kifissias Ave.

15123, Maroussi

These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over this document.

	Statement of financial position	2
	Income Statement	3
	Total Comprehensive Income Statement	4
	Statement of changes in equity (Consolidated)	5
	Statement of changes in equity (Company)	6
	Cash Flow Statement	7
	Notes to the condensed separate and consolidated interim financial statements	8
1.	General information	8
2.	Basis of preparation and summary of significant accounting policies	8
3.	Fair value estimation	12
4.	Segment information	12
5.	Investment property	13
6.	Property, plant and equipment	15
7.	Investments in subsidiaries, joint ventures and associates	16
8.	Financial instruments by category	20
9.	Financial instruments held at fair value through profit or loss	21
	10. Cash and cash equivalents	21
	11. Share capital	21
	12. Borrowings	21
	13. Derivative financial instruments	23
	14. Cash generated from operations	24
	15. Commitments	24
	16. Contingent liabilities	25
	17. Related party transactions	28
	18. Earnings per share	29
	19. Income tax expense	30
	20. Number of employees	31
	21. Events after the balance sheet date	31

Statement of financial position

		GROUP			COMPANY
	Note	31.03.2018	31.12.2017	31.03.2018	31.12.2017
all amounts in € thousands ASSETS
Non-current assets
Investment property	5	761.915	768.415	1.840	1.840
Property, plant and equipment	6	4.386	4.475	624	647
Investments in subsidiaries	7	-	-	279.156	285.018
Investments in joint ventures and associates	7	27.399	26.542	8.261	8.261
Deferred tax assets		12.153	11.436	9.106	8.348
Derivative financial instruments	13	36	45	-	-
Receivables		3.022	4.070	19.145	18.576
		808.911	814.983	318.134	322.692
Current assets
Inventories		10.226	10.226	-	-
Trade and other receivables		31.398	33.984	27.622	27.130
Current tax assets		3.143	3.120	2.979	2.972
Financial instruments held at fair value through
profit or loss	9	26.499	28.155	25.901	27.557
Cash and cash equivalents	10	95.656	86.244	31.311	29.894
		166.921	161.729	87.813	87.554
Total assets		975.832	976.712	405.947	410.245
EQUITY AND LIABILITIES
Equity
Share capital and share premium	11	376.800	376.800	376.800	376.800
Other reserves		6.498	6.419	3.007	3.007
Retained earnings/(Accumulated losses)		(68.239)	(70.377)	(151.815)	(148.218)
		315.060	312.841	227.992	231.589
Non-controlling interest		65.957	64.536	-	-
Total equity		381.017	377.377	227.992	231.589
LIABILITIES
Non-current liabilities
Borrowings	12	234.433	236.125	-	-
Deferred tax liabilities		106.736	105.858	-	-
Employee benefit obligations		1.120	1.120	775	775
Other non-current liabilities		1.036	1.066	40.544	40.765
		343.325	344.169	41.319	41.540
Current liabilities
Trade and other payables		43.567	47.787	13.308	13.980
Current tax liabilities		4.350	1.392	-	-
Derivative financial instruments	13	115	225	-	-
Borrowings	12	203.458	205.762	123.328	123.137
		251.490	255.167	136.637	137.117
Total liabilities		594.815	599.335	177.955	178.657
Total equity and liabilities		975.832	976.712	405.947	410.245

These condensed consolidated and Company interim financial statements of LAMDA Development SA have been approved for issue by the Company's Board of Directors on May 30, 2018.

Condensed Interim Financial Statements 1 January - 31 March 2018

Income Statement

	GROUP		COMPANY
Continuing operations (all amounts in € thousands)	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
Revenue	19.684	11.382	844	340
Other direct property operating expenses	(2.620)	(1.987)	-	-
Employee benefits expense	(1.970)	(2.046)	(1.513)	(1.428)
Depreciation of property, plant and equipment	(192)	(184)	(35)	(24)
Other operating income / (expenses) - net	(1.340)	(1.314)	(973)	(865)
Operating profit/(loss)	13.563	5.851	(1.677)	(1.976)
Finance income	7	12	277	295
Finance costs	(6.672)	(4.117)	(2.956)	(2.715)
Share of net profit of investments accounted for using the equity method	(198)	1.243	-	-
Profit/(loss) before income tax	6.700	2.990	(4.356)	(4.396)
Income tax expense	(3.136)	(1.282)	759	736
Profit/(loss) for the year from continuing operations	3.564	1.707	(3.597)	(3.660)
Profit/(loss) attributable to:
Equity holders of the parent	2.167	1.711	(3.597)	(3.660)
Non-controlling interest	1.397	(3)	-	-
	3.564	1.707	(3.597)	(3.660)
Earnings/(losses) per share from continuing operations attributable to the equity holders of the Parent during the period (expressed in € per share)
Basic earnings/(losses) per share	0,03	0,02	(0,05)	(0,05)
Diluted earnings/(losses) per share	0,03	0,02	(0,05)	(0,05)

Total Comprehensive Income Statement

	GROUP		COMPANY
all amounts in € thousands	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
Profit/(loss) for the period	3.564	1.707	(3.597)	(3.660)
Cash flow hedges, after tax	78	75	-	-
Currency translation differences	(2)	52	-	-
Items that may be subsequently reclassified to profit or loss	7 6	127	-	-
Total comprehensive income for the period	3.640	1.834	(3.597)	(3.660)
Profit/(loss) attributable to:
Equity holders of the parent	2.219	1.838	(3.597)	(3.660)
Non-controlling interest	1.421	(3)	-	-
	3.640	1.834	(3.597)	(3.660)

Statement of changes in equity (Consolidated)

		Attributable to equity holders of the parent
all amounts in € thousands	Share capital	Other reserves	Retained earnings / (Accumulated losses)	Total	Non-controlling interests	Total equity
GROUP
1 January 2017	374.863	6.545	(26.147)	355.262	(191)	355.071
Total Income:
Profit/(loss) for the period	-	-	1.711	1.711	(3)	1.707
Other comprehensive income for the period: Cash flow hedges, after tax	-	75	-	- 75	-	- 75
Currency translation differences	-	52	-	52	-	52
Total comprehensive income for the period	-	127	1.711	1.838	(3)	1.834
31 March 2017	374.863	6.672	(24.436)	- 357.100	(195)	- 356.905
1 January 2018	376.800	6.419	(70.378)	312.841	64.536	377.377
Total Income:
Profit for the period	-	-	2.167	2.167	1.397	3.564
Other comprehensive income for the period:
Cash flow hedges, after tax	-	53	-	53	25	78
Currency translation differences Total comprehensive income for the period	- -	(2) 5 1	- 2.167	(2) 2.219	- 1.421	(2) 3.640
Transactions with the shareholders:
Reserves	-	28	(28)	-	-	-
	-	28	(28)	-	-	-
31 March 2018	376.800	6.498	(68.239)	315.060	65.957	381.017

The notes on pages 8 to 31 form an integral part of this condensed interim financial information.

• 5 -

all amounts in € thousands	Share capital	Other reserves	Retained earnings / (Accumulated losses)	Total equity
COMPANY
1 January 2017	374.863	2.999	(120.667)	257.195
Total Income:
Loss for the period	-	-	(3.660)	(3.660)
Total comprehensive income for the period	-	-	(3.660)	(3.660)
31 March 2017	374.863	2.999	(124.326)	253.535
1 January 2018	376.800	3.007	(148.218)	231.589
Total Income:
Loss for the period	-	-	(3.597)	(3.597)
Total comprehensive income for the period	-	-	(3.597)	(3.597)
31 March 2018	376.800	3.007	(151.815)	227.992

Statement of changes in equity (Company)

Condensed Interim Financial Statements 1 January - 31 March 2018

Cash Flow Statement

		GROUP		COMPANY
all amounts in € thousands	Note	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
Cash flows from operating activities
Cash generated from / (used in) operations	14	11.221	870	307	(4.558)
Interest paid		(6.130)	(3.519)	(7.002)	(2.196)
Income taxes paid		(46)	(11)	(0)	-
Net cash inflow (outflow) from operating activities		5.045	(2.660)	(6.695)	(6.754)
Cash flows from investing activities
Purchase of property, plant and equipment	6	(111)	(42)	(12)	(27)
Proceeds from sale of investment property	5	6.500	-	-	-
Loans to/from related parties	17	(620)	-	(620)	-
Interest received		7	4	2	4
Proceeds from sale/liquidation of participation		1.987	430	1.987	430
(Purchase)/sale of financial instruments held at fair value through profit or loss		1.591	5.194	1.591	5.194
Acquisition/(disposal) in interest held in investments	7	(450)	200	5.862	(300)
Net cash inflow from investing activities		8.904	5.786	8.812	5.301
Cash flows from financing activities
Repayment of borrowings from related parties	17	-	-	(700)	(350)
Repayment of borrowings	12	(4.538)	(1.904)	-	-
Net cash outflow from financing activities		(4.538)	(1.904)	(700)	(350)
Net increase (decrease) in cash and cash equivalents		9.411	1.223	1.417	(1.803)
Cash and cash equivalents at the beginning of the period	10	86.244	98.644	29.894	71.703
Reclassification of restricted cash in Receivables		-	2.113	-	2.113
Cash and cash equivalents at end of period	10	95.656	101.980	31.311	72.013

Notes to the condensed separate and consolidated interim financial statements

1. General information

These financial statements include the separate financial statements of the company LAMDA Development S.A. (the "Company") and the consolidated financial statements of the Company and its subsidiaries (together "the Group") for the three month period ended March 31, 2018. The names of the subsidiaries are presented in note 7 of these financial statements.

The main activities of the Group comprise investment, development, leasing and maintenance of innovative real estate projects.

The Group operates in Greece, as well as in other neighbouring Balkan countries mainly Romania, Bulgaria, Serbia, Montenegro and the Company's shares are listed on the Athens Stock Exchange.

The Company is incorporated and domiciled in Greece. The address of its registered office is 37^A Kifissias Ave., 15123, Maroussi with the Number in the General Electronic Commercial Registry: 3379701000 and its website address is www.lamdadev.com. The Company Consolidated Lamda Holdings S.A., which is domiciled in Luxembourg, is the main shareholder of the Company as at 31.03.2018 with interest held at 53.82% of the share capital and therefore the Group's financial statements are included in its consolidated financial statements.

The Group activities, and consequently its revenues are not expected to be substantially impacted by seasonal fluctuations.

These condensed consolidated and Company interim financial statements of LAMDA Development SA have been approved for issue by the Company's Board of Directors on May 30, 2018.

2. Basis of preparation and summary of significant accounting policies

2.1. Basis of preparation

These separate and consolidated financial statements have been prepared by Management in accordance with International Financial Reporting Standards (IFRS) and Interpretations by the International Financial Reporting Interpretations Committee (IFRIC), as they have been adopted by the European Union, and specifically in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". These separate and consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017 which are available on the website address www.lamdadev.com.

The accounting principles that have been used in the preparation and presentation of these interim financial statements are in accordance with those used for the preparation of the Company and Group annual financial statements as of December 31, 2017.

These Company and consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and Interpretations by the International Financial Reporting Interpretations Committee (IFRIC), as they have been adopted by the European Union, and present the financial position, results of operations and cash flows on a going concern basis which assumes that the Company has plans in place to avoid material disruptions to its operations and available financial resources to meet its operating requirements. In this respect Management has concluded that (a) the going concern basis of preparation of these financial statements is appropriate, and (b) all assets and liabilities are appropriately presented in accordance with the Company's accounting policies.

On that basis, the following specific matters may impact the operations of the Group in the foreseeable future:

Macroeconomic conditions in Greece

The imposition of capital controls has created an uncertain economic situation, which may affect the Group's business, financial condition and prospects. The Group's operations in Greece are significant and the current macroeconomic conditions may affect the Group as follows:

• Decrease in consumption may impact the amount of shop sales in the shopping centers.
• Possible failure of tenants to fulfil their obligations due to either a reduction in their operating activities or instability of the local banking system.
• Possible further decrease in the fair value of the Group's investment property.

Despite the aforementioned uncertainties, the Group's operations continue without any disruption; however Management is not able to accurately predict the likely developments in the Greek economy and its impact on the Group activities.

Refinancing of short-term liabilities

As described in note 12 "Borrowings" as at 31.03.2018 the short-term loans refer mainly to the syndicate bond loan of the Company (amount of €123.33m) as well as the subsidiaries LAMDA DOMI SA (amount of €60.25m) and LAMDA Prime Properties SA (amount of €5.29m), dates of repayment from June 2018 until November 2018. The Management is expecting that the whole negotiations for the medium-term loan re-financing of the bond loan will be concluded within the third quarter of 2018. The Management is undergoing negotiations with the counterparties in relation to the refinancing of the above mentioned short-term loans, a procedure that has not been completed until the date of these financial statements' release.

The successful completion of the refinancing procedure is necessary for the ongoing normal operation of the Company and the Group. The Management argues that the procedure will be completed successfully and therefore the going concern basis of preparation of these financial statements is appropriate.

"The Mall Athens" - Lamda Olympia Village S.A.

As described in detail in note 16 "Contingent liabilities and assets", in January 2014, the Hellenic Council of State approved the petition for annulment of Codified Law 3207/2003, according to the provisions of which the Olympic Press Village (or "Olympiako Chorio Typou") and the Commercial and Leisure Centre "The Mall Athens" were constructed. This decision by the Hellenic Council of State has no direct impact on the operations of "The Mall Athens" and it is anticipated that the operations will continue unhindered for the foreseeable future. Management has assessed the required actions that have been indicated by the Group's legal advisors as imposed following the decision in order to cope with this situation and therefore has undertaken already all necessary actions to this direction. The completion of the above mentioned procedure, which of course requires the effective contribution of the involved competent public services, will safeguard the full and unhindered operation of the Shopping Center.

The factors above have been taken into account by Management when preparing the financial statements for the period ended March 31, 2018. In this uncertain economic environment, Management continually assesses the situation and its possible future impact to ensure that all necessary actions and measures are taken in order to minimize any impact on the Group's Greek operations. In note 3 "Financial risk management" of the annual financial statements as of December 31, 2017, there is information on the approach of the total risk management of the Group, as well as on the general financial risk that the Group faces on an ongoing basis.

These consolidated and Company condensed interim financial statements have been prepared under the historical cost convention, except for the investment property, the financial instruments held at fair value through profit or loss and the derivative financial instruments which are presented at fair value.

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise judgement in the process of applying the group's accounting policies. In addition, the use of certain estimates and assumptions is required that affect the balances of the assets and liabilities, the disclosure of contingent assets and liabilities as at date of preparation of the financial statements and the amounts of income and expense during the reporting period. Although these estimates are based on the best knowledge of Management in relation to the current conditions and actions, the actual results can eventually differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4 of the annual financial statements as of December 31, 2017.

2.2. Accounting principles

New standards, amendments to standards and interpretations: Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning on or after 1.1.2018. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:

Standards and Interpretations effective for the current financial year

IFRS 9 "Financial Instruments" and subsequent amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2018)

IFRS 9 replaces the guidance in IAS 39 which deals with the classification and measurement of financial assets and financial liabilities and it also includes an expected credit losses model that replaces the incurred loss impairment model that was applied under IAS 39. IFRS 9 establishes a more principlesbased approach to hedge accounting and addresses inconsistencies and weaknesses in the previous model in IAS 39. The effect of this standard on the Group is not anticipated to be significant. At Company level, IFRS 9 may affect the carrying of the loan receivables from subsidiaries. The Management is investigating the effect of this standard on its financial statements.

IFRS 15 "Revenue from Contracts with Customers"

IFRS 15 has been issued in May 2014. The objective of the standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. It contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognised. The underlying principle is that an entity recognises revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The effect of this standard on the Group is not anticipated to be significant, however additional disclosures are required.

IAS 40 (Amendments) "Transfers of Investment Property"

The amendments clarified that to transfer to, or from, investment properties there must be a change in use. To conclude if a property has changed use there should be an assessment of whether the property meets the definition and the change must be supported by evidence.

Annual Improvements to IFRS 2014 (2014 – 2016 Cycle)

IAS 28 "Investments in associates and Joint ventures"

The amendments clarified that when venture capital organisations, mutual funds, unit trusts and similar entities use the election to measure their investments in associates or joint ventures at fair value through profit or loss (FVTPL), this election should be made separately for each associate or joint venture at initial recognition.

Standards and Interpretations effective for subsequent periods

IFRS 16 "Leases" (effective for annual periods beginning on or after 1 January 2019)

IFRS 16 has been issued in January 2016 and supersedes IAS 17. The objective of the standard is to ensure the lessees and lessors provide relevant information in a manner that faithfully represents those transactions. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. The Group in investigating the effect of this standard on its financial statements.

IAS 28 (Amendments) "Long term interests in associates and joint ventures" (effective for annual periods beginning on or after 1 January 2019)

The amendments clarify that companies account for long-term interests in an associate or joint venture to which the equity method is not applied—using IFRS 9. The amendments have not yet been endorsed by the EU.

IFRIC 23 "Uncertainty over income tax treatments" (effective for annual periods beginning on or after 1 January 2019)

The interpretation explains how to recognise and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. IFRIC 23 applies to all aspects of income tax accounting where there is such uncertainty, including taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax rates. The interpretation has not yet been endorsed by the EU.

IAS 19 (Amendments) "Plan amendment, curtailment or settlement" (effective for annual periods beginning on or after 1 January 2019)

The amendments specify how companies determine pension expenses when changes to a defined benefit pension plan occur. The amendments have not yet been endorsed by the EU.

Annual Improvements to IFRS (2015 – 2017 Cycle) (effective for annual periods beginning on or after 1 January 2019)

The amendments set out below include changes to four IFRSs. The amendments have not yet been endorsed by the EU.

IFRS 3 "Business combinations"

The amendments clarify that a company remeasures its previously held interest in a joint operation when it obtains control of the business.

IFRS 11 "Joint arrangements"

The amendments clarify that a company does not remeasure its previously held interest in a joint operation when it obtains joint control of the business.

IAS 12 "Income taxes"

The amendments clarify that a company accounts for all income tax consequences of dividend payments in the same way.

IAS 23 "Borrowing costs"

The amendments clarify that a company treats as part of general borrowings any borrowing originally made to develop an asset when the asset is ready for its intended use or sale.

1 January - 31 March 2018

There are no other new standards or amendments to standards, which are mandatory for periods beginning during the current period and subsequent periods that may have significant impact on the Group's financial statements.

3. Fair value estimation

The Group and the Company use the following hierarchy for determining and disclosing the fair value of the assets and liabilities by valuation method.

Level 1: based on quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: based on valuation techniques whereby all inputs having a significant effect on the fair value are observable, either directly or indirectly and includes quoted prices for identical or similar assets or liabilities.

Level 3: based on valuation techniques whereby all inputs having a significant effect on the fair value are not observable market data.

The financial instruments that are measured at fair value are the investment property (note 5), the derivative financial instruments (note 13) and the financial instruments held at fair value through profit or loss (note 9).

4. Segment information

The Group is operating into the business segment of real estate in Greece and in other neighbouring Balkan countries. The BoD (which is responsible for the decision making) defines the segments according to the use and of the investment property and their geographical location.

Management monitors the operating results of each segment separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on revenue and EBITDA (Earnings before interest, tax, depreciation and amortization). It is noted that the Group applies the same accounting policies as those in the financial statements in order to measure the performance of the operating segment. Group financing, including finance costs and finance income, as well as income taxes are monitored on a group basis and are included within the administration segment without being allocated to the profit generating segments.

A) Group's operating segments

The segment results for the three month period ended 31 March 2018 were as follows:

		Real estate
all amounts in € thousands	GREECE		BALKANS	Administrative and Management Services	Eliminations among segments	Total
	Shopping centers	Other investment property	Other investment property
Revenue from third parties	19.438	268	2	386 -	(410)	19.684
Other direct property operating expenses	(3.341)	(129)	-	-	850	(2.620)
Other	(72)	(76)	(70)	(2.652)	(440)	(3.310)
Share of profit / (loss) from joint ventures and associates	-	106	(304)	-	-	(198)
EBITDA	16.025	170	(373)	(2.266)	-	13.556

all amounts in € thousands	GREECE		BALKANS	Administrative and Management Services	Eliminations among segments	Total
	Shopping centers	Other investment property	Other investment property
Revenue from third parties	10.447	394	2	857 -	(317)	11.382
Other direct property operating expenses	(2.396)	(94)	-	-	504	(1.987)
Other	(22)	(89)	(739)	(2.323)	(186)	(3.360)
Share of profit / (loss) from joint ventures and associates	1.529	(95)	(195)	4	-	1.243
EBITDA	9.557	115	(932)	(1.462)	-	7.278

The segment results for the three month period ended 31 March 2017 were as follows:

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

The reconciliation of the segments' EBITDA to total profit after tax for the Group is as follows:

all amounts in € thousands
Adjusted EBITDA for reportable segments	31.03.2018	31.03.2017
EBITDA	13.556	7.278
Depreciation	(192)	(184)
Finance income	7	12
Finance costs	(6.672)	(4.117)
Profit before income tax	6.700	2.990
Income tax expense	(3.136)	(1.282)
Profit for the period	3.564	1.707

B) Geographical segments

The segment information for the three month period ended 31 March 2018 were as follows:

31 March 2018
all amounts in € thousands	Total revenue	Non-current assets
Greece	19.683	786.482
Balkans	2	22.428
	19.684	808.911

The segment information for the three month period ended 31 December 2017 were as follows:

31 December 2017
all amounts in € thousands	Total revenue	Non-current assets
Greece	62.172	793.347
Balkans	25.007	21.637
	87.179	814.983

5. Investment property

	GROUP		COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Balance at 1 January	768.415	379.955	1.840	1.840
Acquisition of interest held in participations	-	381.900	-	-
Disposals	(6.500)	(5.150)	-	-
Net gain from fair value adjustment on investment property	-	11.710	-	-
Balance at end of period	761.915	768.415	1.840	1.840

The investment property includes property operating lease that amounts to €152.5m.

In the first quarter of 2018, the Group announces the sale of the ownership that its 100% subsidiary LAMDA Estate Development S.A. held in the office building Kronos Business Center in Maroussi, for a total consideration of €6.5m

The fair value for all investment property was determined on the basis of its highest and best use by the Group taking into account each property's use which is physically possible, legally permissible and financially feasible. This estimate is based on the physical characteristics, the permitted use and the opportunity cost for each investment of the Group.

Investment property is valued each semester by independent qualified valuers using the Discounted Cash Flows (DCF) method. The cash flows are based on reliable estimates of future cash flows, supported by the terms of any existing lease and other contracts and (where possible) external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect each tenant's sector (food and restaurants, electronic appliances, apparel etc.) as well as the current market assessments of the uncertainty in the amount and timing of the cash flows. In some cases, where necessary, the valuation is based on the Comparative Method. The aforementioned valuation methods come under hierarchy level 3 as described in note 3.

More precisely, at 31.03.2018 95% of total fair value of the Group's investment property relates to Shopping Centres and 2% to Office Buildings. For both type of property, the valuation was determined using the DCF approach with the following significant assumptions:

• With regards to the Shopping Centres, The Mall Athens has a freehold status, Mediterranean Cosmos is held under a lease that expires in Q4 2035 and Golden Hall has a 86 year exploitation period. As far as the office buildings are concerned, they are owned by the Group.
• In short, the yields according to the latest valuations at December 31, 2017 are as follows:

	Discount rate
Malls
The Mall Athens	9,50%
Med.Cosmos	10,75%
Golden Hall	9,75%
Office buildings
Cecil, Kefalari	9,25%

In relation to the annual consideration that every tenant of the Malls pays (Base Consideration – fixed consideration that is set in the contract), it is adjusted annually according to the CPI plus a slight indexation which is differentiated between the tenants. The average CPI that has been used over the period is 1.75%.

The most significant valuation assumptions of the investment property are the assumption regarding the future EBITDA (including the estimations related to the future monthly lease) of each investment property as well as the estimated yields that are applied for the investment property's valuation. As a result, the table below presents two basic scenarios in relation to the impact on the valutions of the following investment properties of an increase in the yields by 25 basis points (+ 0,25%) or a decrease in EBITDA by €1m per Shopping Mall.

(all amounts in € millions) Discount rate Discount rate	+0,25%	+0,25%
The Mall Athens	-5,3	5,5
Med.Cosmos	-1,9	1,9
Golden Hall	-2,7	2,7
Malls	-9,9	10,0
Cecil, Kefalari	-0,2	0,2
Office buildings	-0,2	0,2
Total	-10,1	10,2

1 January - 31 March 2018

The above mentioned valuations of the investment property as at 31 December 2017 have taken into account the uncertainty of the current economic conditions in Greece (as described in note 2.1). It has to be noted that this situation is unprecedented and therefore the consequences cannot be accurately assessed at this point. In this context, we note that despite the existence of an increased level of valuation uncertainty, the values reported provide the best estimate for the Group's investment property. Management will observe the trends that will be formed in the investment property market in the next few months since the complete impact of the consequences of the economic situation in Greece may affect the value of the Group's investment property in the future.

On the amount of €761.9m of the total investment property, there are real estate liens and pre-notices over these assets.

6. Property, plant and equipment

all amounts in € thousands	Lease hold land and buildings	Vehicles and machinery	Furniture, fittings and equipment	Software	Assets under construction	Total
GROUP - Cost
1 January 2017	705	5.287	4.449	2.780	1.557	14.778
Additions	-	6	27	1	8	42
Disposals / Write-offs	-	(4)	(1)	-	-	(5)
31 March 2017	705	5.289	4.475	2.781	1.565	14.814
1 January 2018	798	6.196	7.887	2.931	1.575	19.387
Additions	-	(0)	86	2	23	111
Disposals / Write-offs	-	-	(1)	-	-	(1)
Transfer to the Income Statement	-	-		- -	(9)	(9)
31 March 2018	798	6.196	7.973	2.933	1.590	19.489
Accumulated depreciation
1 January 2017	(374)	(3.958)	(4.087)	(2.598)	-	(11.017)
Depreciation charge	(10)	(81)	(81)	(12)	-	(184)
Disposals / Write-offs	-	4		1 -	-	5
31 March 2017	(384)	(4.035)	(4.167)	(2.609)	-	(11.196)
1 January 2018	(454)	(5.051)	(6.690)	(2.717)	-	(14.912)
Depreciation charge	(11)	(89)	(78)	(13)	-	(192)
Disposals / Write-offs	-	-		1 -	-	1
31 March 2018	(466)	(5.140)	(6.768)	(2.730)	-	(15.103)
Closing net book amount at 31 March 2017	321	1.253	307	173	1.565	3.619
Closing net book amount at 31 March 2018	332	1.056	1.205	203	1.590	4.386
all amounts in € thousands	Lease hold land and buildings		Vehicles and machinery	Furniture, fittings and equipment	Software	Total
COMPANY - Cost
1 January 2017		367	9 3	1.181	2.675	4.316
Additions		-	6	20	1	27
Disposals / Write-offs		-	(4)	(1)	-	(5) -
31 March 2017		367	9 5	1.200	2.676	4.338
1 January 2018		367	190	1.392	2.736	4.685
Additions		-	(0)	10	1	12
Disposals / Write-offs		-	-	(1)	-	(1)
31 March 2018		367	190	1.402	2.737	4.696

Accumulated depreciation
1 January 2017	(240)	(75)	(1.080)	(2.550)	(3.945)
Depreciation charge	(3)	(2)	(10)	(9)	(24)
Disposals / Write-offs	-	4	1	-	5
31 March 2017	(243)	(73)	(1.089)	(2.558)	(3.964)
1 January 2018	(252)	(82)	(1.117)	(2.586)	(4.038)
Depreciation charge	(3)	(6)	(14)	(11)	(35)
Disposals / Write-offs	-	-	1	-	1
31 March 2018	(255)	(88)	(1.131)	(2.597)	(4.072)
Closing net book amount at 31 March 2017 Closing net book amount at 31 March	124	2 2	111	118	374
2018	112	102	271	140	624

7. Investments in subsidiaries, joint ventures and associates

The Group's structure on March 31, 2018 is as follows:

	Country of Incorporation		% interest held		Country of Incorporation		% interest held
Company				Company
LAMDA Development SA - Parent	Greece
Subsidiaries
PYLAIA SA	Greece	Indirect	68,3%	LAMDA Development Sofia EOOD	Bulgaria		100,0%
LAMDA Domi SA	Greece	Indirect	68,3%	TIHI EOOD	Bulgaria	Indirect	100,0%
LAMDA Malls SA	Greece		68,3%	LOV Luxembourg SARL	Luxembourg	Indirect	100,0%
LAMDA Olympia Village SA	Greece		100,0%	Hellinikon Global I SA	Luxembourg		100,0%
LAMDA Estate Development SA	Greece		100,0%	LAMDA Development (Netherlands) BV	Netherlands		100,0%
LAMDA Prime Properties SA	Greece		100,0%	Lamda Singidunum Netherlands BV	Netherlands	Indirect	100,0%
MALLS MANAGEMENT SERVICES SA	Greece		100,0%	Robies Services Ltd	Cyprus		90,0%
MC Property Management SA	Greece		100,0%	Joint ventures
KRONOS PARKING SA	Greece	Indirect	100,0%	Lamda Dogus Marina Investments SA	Greece		50,0%
LAMDA Erga Anaptyxis SA	Greece		100,0%	LAMDA Flisvos Marina SA	Greece	Indirect	32,2%
LAMDA Leisure SA	Greece		100,0%	LAMDA Flisvos Holding SA	Greece	Indirect	41,7%
GEAKAT SA	Greece		100,0%	LAMDA Akinhta SA	Greece		50,0%
LD Trading SA	Greece		100,0%	Singidunum-Buildings DOO	Serbia	Indirect	68,3%
Property Development DOO	Serbia		100,0%	GLS OOD	Bulgaria	Indirect	50,0%
Property Investments DOO	Serbia		100,0%	Associates
LAMDA Development Montenegro DOO	Montenegro		100,0%	ATHENS METROPOLITAN EXPO SA	Greece		11,7%
LAMDA Development Romania SRL	Romania		100,0%	METROPOLITAN EVENTS	Greece	Indirect	11,7%
Robies Proprietati Imobiliare SRL	Romania	Indirect	90,0%	SC LAMDA MED SRL	Romania	Indirect	40,0%

Notes on the above mentioned participations:

• The country of the establishment is the same with the country of operating.
• The interest held corresponds to equal voting rights.
• The investments in joint ventures correspond to the Group's strategic investments mainly due to the exploitation of investment property inside Greece and abroad.
• The investments in associates do not have significant impact to the Group's operations and results however they are consolidated with the equity method since the Group has control over their operations.
• The Group has contingencies in respect of bank guarantees as well as pledged shares deriving from its borrowings.

(a) Investments of the Company in subsidiaries

The Company's investment in subsidiaries is as follows:

1 January - 31 March 2018

all amounts in € thousands		31.03.2018			31.12.2017
Name	Country of incorporation	% interest held	Cost	Impairment	Carrying amount	Cost	Impairment	Carrying amount
LAMDA OLYMPIA VILLAGE SA	Greece	100%	131.839	-	131.839	131.839	-	131.839
LAMDA MALLS SA	Greece	68,3%	51.496	-	51.496	51.496	-	51.496
LAMDA ESTATE DEVELOPMENT SA	Greece	100%	46.184	25.024	21.160	52.047	25.024	27.022
LAMDA PRIME PROPERTIES SA	Greece	100%	9.272	-	9.272	9.272	-	9.272
GEAKAT SA	Greece	100%	14.923	10.030	4.893	14.923	10.030	4.893
LAMDA ERGA ANAPTYXIS SA	Greece	100%	9.070	-	9.070	9.070	-	9.070
LD TRADING SA	Greece	100%	1.110	910	200	1.110	910	200
LAMDA LEISURE SA	Greece	100%	1.050	-	1.050	1.050	-	1.050
MC PROPERTY MANAGEMENT SA	Greece	100%	745	-	745	745	-	745
MALLS MANAGEMENT SERVICES SA	Greece	100%	1.224	-	1.224	1.224	-	1.224
LAMDA DEVELOPMENT SOFIA EOOD	Bulgaria	100%	363	363	-	363	363	-
LAMDA DEVELOPMENT DOO (BEOGRAD)	Serbia	100%	-	-	-	992	992	-
PROPERTY DEVELOPMENT DOO	Serbia	100%	11.685	11.685	-	11.685	11.685	-
PROPERTY INVESTMENTS LTD	Serbia	100%	1	-	1	1	-	1
LAMDA DEVELOPMENT ROMANIA SRL	Romania	100%	741	741	-	741	741	-
ROBIES SERVICES LTD	Cyprus	90%	1.724	1.724	-	1.724	1.724	-
LAMDA DEVELOPMENT (NETHERLANDS) BV	Netherlands	100%	75.178	27.200	47.978	75.178	27.200	47.978
LAMDA DEVELOPMENT MONTENEGRO DOO	Montenegro	100%	800	800	-	800	800	-
LOV LUXEMBOURG SARL (indirect)	Luxembourg	100%	193	-	193	193	-	193
HELLINIKON GLOBAL I SA	Luxembourg	100%	36	-	36	36	-	36
Investment in subsidiaries			357.632	78.476	279.156	364.487	79.468	285.018

The movement in investment in subsidiaries is as follows:

COMPANY
31.03.2018	31.12.2017
285.018	190.500
-	300
(5.862)	400
-	(8.300)
-	131.839
-	(29.914)
-	193
279.156	285.018

Share capital decrease

The Group's subsidiary LAMDA Estate Development SA decreased its share capital by €5.9m.

Non-controlling interest

The non-controlling interest of the Group amounts to €66.0m at 31.03.2018 (31.12.2017: €64.5m) out of which €66.2m are coming from the subsidiary LAMDA MALLS SA which was established in 2017. Non-controlling interest represents 31.7% of the total equity of LAMDA MALLS SA's Group, which 100% subsidiaries are LAMDA DOMI S.A. and PYLEA S.A.

(b) Investments of the Company and the Group in joint ventures

The Company's investment in joint ventures is as follows:

COMPANY			31.03.2018				31.12.2017
Name	Country of incorporation	% interest held	Cost	Impairment	Carrying amount	Cost	Impairment	Carrying amount
LAMDA AKINHTA SA	Greece	50,00%	4.454	1.773	2.681	4.454	1.773	2.681
LAMDA DOGUS MARINA INVESTMENTS SA	Greece	50,00%	4.022	-	4.022	4.022	-	4.022
Investment in joint-ventures			8.476	1.773	6.703	8.476	1.773	6.703

The Group's investment in joint ventures is as follows:

GROUP				31.03.2018			31.12.2017
Name	Country of incorporation	% interest held	Cost	Impairment	Carrying amount	Cost	Impairment	Carrying amount
LAMDA AKINHTA SA	Greece	50,00%	4.454	(1.791)	2.663	4.454	(1.787)	2.668
LAMDA DOGUS MARINA INVESTMENTS SA	Greece	50,00%	4.022	(1.929)	2.093	4.022	(1.995)	2.027
SINGIDUNUM-BUILDINGS DOO	Serbia	68,26%	35.645	(17.954)	17.691	34.590	(17.651)	16.939
GLS OOD	Bulgaria	50,00%	3.631	(2.637)	994	3.631	(2.638)	993
TOTAL			47.753	(24.312)	23.441	46.698	(24.071)	22.627

The movement of the Company and the Group in investment in joint ventures is as follows:

	GROUP		COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Balance at 1 January	22.627	105.394	6.703	35.484
Increase in share capital	1.055	7.299	-	-
Share in profit/(loss)	(241)	2.365	-	-
Provision for impairment Acquisition / change in consolidation method in	-	-	-	(100)
participations	-	(92.432)	-	(28.681)
Balance at end of period	23.441	22.627	6.703	6.703

Notes on the above mentioned joint ventures:

• The Company starting from 1/1/2014 applies IFRS 11 according to which the Group will account for joint ventures on an equity basis because it provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form
• The Group increased its participation in the joint-venture Singidunum Buildings DOO from 67.16% at 31.12.2017 to 68.26% at 31.03.2018, however the control remains 50%-50% between the two shareholders according to the terms of the current shareholders agreement
• The Group's most significant joint-venture is Singidunum Buildings DOO as follows:

Singidunum Buildings DOO

Statement of financial position	68,26%	67,16%
	31.03.2018	31.12.2017
all amounts in € thousands
Inventories - land	73.267	73.267
Receivables	134	14
Cash and cash equivalents	82	113
	73.483	73.395
Short-term borrowings	47.520	47.520
Trade and other payables	46	652
	47.565	48.172
Total equity	25.917	25.223
(Group's interest)	68,26%	67,16%
Total equity	17.692	16.940

1 January - 31 March 2018

Income statement

	01.01.2018 to	01.01.2017 to
all amounts in € thousands	31.03.2018	31.03.2017
Net loss from fair value adjustment on investment property	-	-
Other operating income / (expenses) - net	(23)	(22)
Finance costs - net	(335)	(403)
Loss before income tax	(358)	(425)
Income tax expense
Loss for the period	(358)	(425)
(Group's interest)	68,26%	56,81%
Loss for the period	(244)	(241)
Comprehensive income statement
	01.01.2018 to	01.01.2017 to
	31.03.2018	31.03.2017
all amounts in € thousands
Loss for the period Currency translation differences	(244) -	(241) -
Other comprehensive income for the period	(244)	(241)
Total comprehensive income for the period	(244)	(241)
Cash flow statement
	01.01.2018 to	01.01.2017 to
all amounts in € thousands	31.03.2018	31.03.2017
Cash flows from operating activities	(481)	(449)
Cash flows to investing activities	-	-
Cash flows to financing activities	450	-
Net increase in cash and cash equivalents	(31)	(449)

(c) Investments of the Group and the Company in associates

The Group participates in the following associates' equity:

GROUP				31.03.2018			31.12.2017
Name	Country of incorporation	% interest held	Cost	Impairment	Carrying amount	Cost	Impairment	Carrying amount
ATHENS METROPOLITAN EXPO SA	Greece	11,67%	1.559	-	1.559	1.559	-	1.559
S.C. LAMDA MED SRL (Indirect)	Romania	40,00%	1.332	1.068	2.399	1.332	1.025	2.356
TOTAL			2.890	1.068	3.958	2.890	1.025	3.915

The movement of associates is as follows:

	GROUP	COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Balance at 1 January	3.915	4.063	1.558	1.651
Share in profit/(loss)	43	145	-	-
Decrease in share capital	-	(200)	-	-
Change in interest held in participations	-	(93)	-	(93)
Balance at end of period	3.958	3.915	1.558	1.558

Notes on the above mentioned associates:

• Although the associates do not have a significant impact in the Group's operations and results, they are consolidated with equity method because the Group exercises control over their operations.
• At Company level, the change in interest held refers to LOV Luxembourg SARL which following the acquisition of 25% is now categorized as subsidiary.

Condensed Interim Financial Statements 1 January - 31 March 2018

8. Financial instruments by category

GROUP - 31.03.2018				GROUP - 31.03.2018	Derivatives used for
Financial assets	Loans and receivables		Financial instruments held at fair value through profit or loss	Financial liabilities	hedging	Liabilities at amortized cost
all amounts in € thousands				all amounts in € thousands
Trade and other receivables	3.723		-	Borrowings	-	437.892
Restricted cash	10.538		-	Derivative financial instruments	115	0
Cash and cash equivalents	95.656		-	Trade and other payables	-	4.334
Derivative financial instruments	-		36	Interest payable	-	2.537
Other financial receivables	8.298		26.499	Other financial payables	-	15.186
Receivables from disposal of participation	968		-	Total	115	459.949
Total	119.183		26.535
COMPANY - 31.03.2018 Financial assets all amounts in € thousands	Loans and receivables		Financial instruments held at fair value through profit or loss	COMPANY - 31.03.2018 Financial liabilities	Liabilities at amortized cost
				all amounts in € thousands
Trade and other receivables	68		-
Restricted cash	10.538		-	Borrowings	123.328
Loans to related parties	29.739		-	Trade and other payables	696
Other financial receivables	2.356		25.901	Loans from related parties	40.590
Receivables from related parties	968		-	Interest payable	707
Total	44.640		25.901	Other financial payables Liabilities to related parties	9.113 2
				Total	174.437
GROUP - 31.03.2017			GROUP - 31.03.2017
Financial assets		Loans and receivables	Financial liabilities		Derivatives used for hedging	Liabilities at amortized cost
all amounts in € thousands			all amounts in € thousands
			Borrowings		-	267.085
Trade and other receivables		2.290		Derivative financial instruments	546	-
Restricted cash		10.538	Trade and other payables		0	2.855
Loans to related parties		1.119	Liabilities to related parties		0	71
Interest reveivable		12	Loans from related parties		0	18.123
Cash and cash equivalents		101.980	Interest payable		0	775
Receivables from related parties		629	Other financial payables		0	11.656
Total		116.568	Total		546	300.566
COMPANY - 31.03.2017			COMPANY - 31.03.2017
Financial assets		Loans and receivables	Financial liabilities		Liabilities at amortized cost
all amounts in € thousands			all amounts in € thousands
			Borrowings		129.021
Trade and other receivables		116	Trade and other payables		84
Restricted cash		10.538	Liabilities to related parties		2
Receivables from related parties		194	Loans from related parties		21.848
Loans to related parties		86.676	Interest payable		656
Cash and cash equivalents		72.013	Other financial payables		9.080
Total		169.537	Total		160.691

9. Financial instruments held at fair value through profit or loss

	GROUP		COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Bonds - Euro	25.901	27.557	25.901	27.557
Money market funds	597	598	-	-
	26.499	28.155	25.901	27.557

Above financial instruments relate to the placement of the Company's cash in various financial counterparties with high ratings and are measured at fair value through income statement. The Company during 2018 liquidated bonds an amount of €1.5m. The Company has recognized a loss from the above mentioned liquidation/valuation of €58k in the income statement.

The above mentioned financial instruments are categorized under hierarchy 1 as described in note 3.

10. Cash and cash equivalents

	GROUP		COMPANY
all amounts in € thousands	31.3.2018	31.12.2016	31.3.2018	31.12.2016
Cash at bank	94.877	85.220	31.251	29.835
Cash in hand	778	1.024	60	59
Total	95.656	86.244	31.311	29.894

No significant credit losses are anticipated in view of the credit status of the banks that the Group keeps current accounts. The above comprise the cash and cash equivalents used for the purposes of the cash flow statement.

11. Share capital

all amounts in € thousands	Number of shares (in thousands)	Ordinary shares	Share premium	Treasury shares	Total
1 January 2017	77.356	23.917	360.110	(9.163)	374.863
Sale of treasury shares	500	-	-	1.937	1.937
31 December 2017	77.856	23.917	360.110	(7.227)	376.800
1 January 2018	77.856	23.917	360.110	(7.227)	376.800
Movement in the period	-	-	-	-	-
31 March 2018	77.856	23.917	360.110	(7.227)	376.800

The share capital of the Company amounts to €23,916,532.50 divided by 79,721,775 shares of nominal value €0.30 each. All the Company's shares are listed on the Athens Stock Exchange.

12. Borrowings

	GROUP		COMPANY
all amounts in € thousands	31.3.2018	31.12.2017	31.3.2018	31.12.2017
Non-current
Bond borrowings	234.433	236.125	-	-
Total non-current	234.433	236.125	-	-

Current
Bond borrowings	203.458	205.762	123.328	123.137
Total current	203.458	205.762	123.328	123.137
Total borrowings	437.892	441.887	123.328	123.137

The movements in borrowings are as follows:

12 months ended 31 December 2017 (amounts in € thousands)	GROUP	COMPANY
Balance at 1 January 2017	268.607	128.714
Acquisition of additional interest in investments (note 8)	193.000	-
Borrowings transaction costs - amortization	2.254	1.204
Borrowings transaction costs	(3.093)	(83)
Borrowings repayments	(18.882)	(6.698)
Balance at 31 December 2017	441.887	123.137
3 months ended 31 March 2018 (amounts in € thousands)	GROUP	COMPANY
Balance at 1 January 2018	441.887	123.137
Borrowings transaction costs - amortization	543	191
Borrowings repayments	(4.538)	-
Balance at 31 March 2018	437.892	123.328

Borrowings are secured by mortgages on the Group's land and buildings (note 5), and in some cases by additional pledges of parent company's shares as well as and/or by assignment of subsidiaries' receivables (note 7) and insurance compensations. Regarding the Company's syndicated bond loan, the securities that have been agreed comprise of mortgages on Group assets as well as share pledges on specific Group participations. The bond loan has a three year tenor and is comprised of two tranches. The first tranche of €133.95m was drawn-down on 30th November 2015, while the second tranche (which amounts to €25m) is expected to be drawn-down at the forthcoming period.

Amortization of borrowings transaction costs of €2.7 are included in the total borrowings as at March 31, 2018, out of which €1.5m is applied to current borrowings whereas the rest €1.1m is applied to noncurrent borrowings.

The maturity of non-current borrowings is as follows:

GROUP			COMPANY
31.3.2018	31.12.2017	31.3.2018	31.12.2017
22.065	22.070	-	-
212.368	214.055	-	-
-	-	-	-
234.433	236.125	-	-

The fair value estimation of the total borrowings is based on inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The effective weighted average interest rates at 31.03.2018 are as follows:

	GROUP	COMPANY
Current bond borrowings	5,99%	6,00%
Non-current bond borrowings	4,34%	-

At 31.03.2018, the average base effective interest rate of the Group is 0.05% and the average bank spread is 5.06%. Therefore, the Group total effective borrowing rate stands at 5.11% at 31.03.2018.

During the first quarter of 2018, regarding the subsidiaries, they proceeded to total payments of €4.5m within current reporting period, as described in their bond loan contracts

The Company's bond loans have the following financial covenants: at Company level (Issuer) the total borrowings (current and non-current) to total equity should not exceed 1.2 and at Group level the total borrowings to total equity should not exceed 2.5 and the ratio of total net debt to investment portfolio must be ≤ 75%.

At Group level, at 31.03.2018, the Company's subsidiary LAMDA DOMI SA's syndicated loan of current balance €60.3m, granted by the following banking institutions: Eurobank Ergasias, Alpha Bank, National Bank of Greece and HSBC has the following covenants: Loan to value <60% and Debt Service Ratio >120%. Also, the bond loan of the Company's subsidiary PYLAIA SA granted by Eurobank Ergasias, of current balance €64.8m has the following covenants: Loan to value <80% and Debt Service Ratio >120%. Moreover, LAMDA OLYMPIA VILLAGE SA's bond loan of current balance €186.2m, granted by HSBC and Eurobank Ergasias has the following covenants: Loan to value <65% and Debt Service Cover ratio >110%.

At 31.12.2018 the short-term borrowings include the following liabilities that expire in 2018:

• The Company's bond loan, amount of approximately €123.3m, repayment date November 2018.
• The bond loan of the subsidiary LAMDA DOMI S.A, amount of approximately €60.2m, repayment date June 2018.
• The loan of the subsidiary Lamda Prime Properties S.A., amount of approximately €5.3m, repayment date September 2018.

The Management is undergoing negotiations with the counterparties in relation to the refinancing of the above mentioned short-term loans, a procedure that has not been completed until the date of these financial statements' release.

More specific, the course of the refinancing procedures at the date of these financial statements' approval is the following:

• In relation to the syndicate bond loan the Company, is undergoing negotiations for the conclusion of the medium-term loan re-financing. The major part of the Programme amendment and the security documents has been agreed as well as the highly important security of the bondholders with the shares that the Company owns in the subsidiary LAMDA MALLS SA. The Management is expecting that the whole negotiations for the medium-term loan re-financing of the bond loan will be concluded within the third quarter of 2018.
• The discussions regarding the loan refinancing of LAMDA DOMI SA are at an advanced stage of finalization following binding offers that the company received from various financial institutions. The Management expects that the procedure will be completed until June 2018.
• The discussions regarding the loan of Lamda Prime Peoperties S.A. (which owns the building Cecil at Kefalari) are at an early stage. However, the Management expects that the loan will be refinanced successfully before its expiration.

		GROUP					COMPANY
		31.03.2018		31.12.2017		31.03.2018		31.12.2017
all amounts in € thousands	Assets	Liabilities	Assets	Liabilities	Assets	Liabilities	Assets	Liabilities
Derivatives held at fair value through profit or loss (Cap)	36	-	45	-	-	-	-	-
Interest rate swaps - cash flow hedges (IRS)	-	115	-	225	-	-	-	-
Total	3 6	115	4 5	225	-	-	-	-

13. Derivative financial instruments

1 January - 31 March 2018

Non-current	36	-	45	225	-	-	-	-
Current	-	115	-	-	-	-	-	-
Total	3 6	115	4 5	225	-	-	-	-

The nominal value of interest rate swaps that are hedged as at 31.03.2018 is €41.9m, for the Company's subsidiary LAMDA DOMI SA, and their maturity date is June 2018. The interest rate swaps have been measured at fair value stated by the counterpart bank. As at 31.03.2018 the long-term borrowings floating rates are secured with interest risk derivatives (swaps) ranged according to 3-month Euribor plus 6.38%. In relation to derivatives at fair value through profit or loss, a Cap instrument as a hedging strategy for the Interest Rate Risk has been selected for the subsidiary' s, LAMDA Olympia Village S.A., bond loan at a notional amount of €160m. The movement of the fair value is recognized in the income statement.

The total fair value of the derivative financial instrument, which is described under hierarchy 2 in note 3, is presented in the statement of financial position as long-term liability since the remaining duration of the loan agreement which is hedged, exceeds 12 months.

The movement in fair value is related to the effective portion of the cash flow hedge and is recognised in special reserves in equity. The effectiveness test of the cash flow hedges is based on discounted cash flows according to the forward rates (3-month Euribor) and their volatility rating.

14. Cash generated from operations

			GROUP	COMPANY
all amounts in € thousands	Note	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
Profit/(loss) for the period		3.564	1.707	(3.597)	(3.660)
Adjustments for:
Tax		3.136	1.282	(759)	(736)
Depreciation of property, plant and equipment	6	192	184	35	24
Share of profit from associates	7	198	(1.243)	-	-
Provision for impairment of receivables from subsidiaries	17	-	-	(81)	(29)
Loss from sale/valuation of financial instruments		67	25	57	25
Interest income		(7)	(12)	(277)	(295)
Interest expense		6.672	4.117	2.956	2.715
		13.822	6.061	(1.667)	(1.956)
Changes in working capital:
Increase in inventories		-	(13)	-	-
(Increase)/decrease in payables		668	55	(2.072)	(8)
Decrease in payables		(3.269)	(5.233)	4.046	(2.594)
		(2.601)	(5.191)	1.974	(2.602)
Cash flows from operating activities		11.221	870	307	(4.558)

15. Commitments

Capital commitments

There is no capital expenditure that has been contracted for but not yet incurred at the balance sheet date.

Operating lease commitments

The Group leases tangible assets, land, buildings, vehicles and mechanical equipment under operating leases. Total future lease payments under operating leases are as follows:

	GROUP		COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
No later than 1 year	3.412	3.395	942	944
Later than 1 year and not later than 5 years	13.953	13.889	1.681	1.919
Later than 5 years	52.512	53.408	-	-
Total	69.877	70.692	2.623	2.863

The Group has no contractual liability for investment property repair and maintenance services.

16. Contingent liabilities

The Group and the Company have contingencies in respect of bank guarantees, other guarantees and other matters arising in the ordinary course of business, for which no significant additional liabilities are expected to arise as follows:

	GROUP		COMPANY
Liabilities (all amounts in € thousands)	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Letters of guarantee relating to obligations	36.258	36.258	30.004	30.004
Total	36.258	36.258	30.004	30.004
Assets (all amounts in € thousands) Letters of guarantee relating to receivables from tenants	39.952	39.929	-	-
Total	39.952	39.929	-	-

In addition to the issues mentioned above there are also the following particular issues:

• The Group provides, when considered appropriate, and on a company by company basis for possible additional taxes that may be imposed by the tax authorities. As a result, the Group's tax obligations have not been defined permanently (note 19).

• A property transfer tax of €10,1m approximately has been imposed on the societe anonyme LAMDA Olympia Village (former DIMEPA, hereinafter referred to as LOV); Out of the forty (40) recourses which have been filed respectively, twenty five (25), amounting to €8.5m, have been irrevocably accepted by the Administrative Court of Appeals, as either the corresponding to them appeals on points of law of the Hellenic Republic have been rejected (for eight of them) or the Hellenic Republic did not even file an appeal on points of law (for the remaining seventeen); the remaining fifteen (15) recourses have been rejected by courts of first instance. LOV has filed appeals against all these rejecting decisions, with one exception where an appeal could not be filed, due to the amount of the litigation. Out of these fourteen (14) appeals, eight (8) have been irrevocably rejected in favor of the Hellenic Republic either because an appeal on points of law could not be filed, due to the amount of the litigation (for six of them) or because the filed appeal on points of law was rejected (also due to the amount of the litigation). For the remaining six (6) appeals, which were also rejected, LOV has filed appeals on points of law, which were heard on 09.05.2018; positive decisions are expected. Consequently out of the forty (40) recourses twenty (25), amounting totally to €8.5m, have been irrevocably accepted in favor of LOV, while another nine (9), amounting totally to €480k, have been irrevocably rejected in favor of the Hellenic Republic.

During the whole term of this litigation, LOV has been obliged to pay to the Hellenic Republic the amount of approximately €836k during 2005, €146k during 2006, €27k during 2007, €2.9m in 2012, €2.2m in 2013, €983k in 2014 and €235k in 2015 (which remained as a claim against the Hellenic Republic). Until 31.12.2017 the total amount of €3.8m has been returned to the Company on the basis of the appeals which have been irrevocably accepted. If the outcome of the case is negative, according to the share sale agreement between the Municipality of Amaroussion and the Company, the total obligation will be on the Municipality, as it relates to transfers of properties before the acquisition of LOV's shares.

• Additionally, LOV had to pay for the transfer of specific real property in the past (on 2006), property transfer tax of approximately €13,7m, reserving its rights with regard to this tax and finally taking recourse to the administrative courts against the silent rejection of its reservations by the competent Tax Authority. In 2013 the said recourse was accepted in part and the re-calculation of the owed property tax was ordered, which led to the returning to LOV of an amount of approximately €9,5m. Further to appeals on points of law filed by both parties, the Council of State rejected LOV's appeal and accepted the Hellenic Republic's appeal; consequently the case was referred back to the Administrative Court of Appeals, which initially postponed the issue of a final decision and obliged the parties to adduce evidence for the determination of the market value of the property; after resuming hearing of the case, the Administrative Court of Appeals finally rejected the recourse, determined the taxable value of the property and obliged the competent Tax Authority to re-calculate the transfer tax due upon the new taxable value. Following this decision, LOV had to pay transfer tax of approximately €16,3m. An appeal on points of law has been filed and is estimated by the legal counsels of the Company to have high chances of success. In specific, grounds of appeal challenging re-calculation of transfer tax upon the market value of the property, to the extent it exceeds the objective value, are expected to succeed with very high probability.

• Five (5) petitions for annulment have been filed and were pending before the Council of State related to LOV, regarding the plot of land where the Maroussi Media Village (or "Olympiako Chorio Typou") and the Commercial and Leisure Centre "The Mall Athens" were built. More specifically: the first of these petitions was heard on 3.5.2006 and the decision no 391/2008 of the Fifth Chamber of the Council of State was issued committing for the Plenary Session of the Council of State. Further to successive postponements the case was heard on 05.04.2013. By virtue of its decision No 376/2014, the Plenary Session accepted the said petition and the Court annulled the silent confirmation by the competent planning authority of the Ministry of Environment, Planning & Public Works (namely, DOKK) that the studies of the project submitted to such authority were compliant with article 6 paragraphs 1 and 2 of Law 3207/2003. The Council of State annulled the aforementioned act, because it identified irregularities of a procedural nature in the issuance of the licenses required for the project. In light of such nature of the identified irregularities, it is estimated that they may be rectified, and LOV has already initiated the procedure required further to the issuance of the said decision. The completion of the above mentioned procedure, which of course requires the effective contribution of the involved competent public services, will safeguard the full and unhindered operation of the Shopping Center.

• The second petition was heard on 02.04.2014, further to successive postponements, and the Fifth Section issued its Decision No. 4932/2014, whereby the Court cancelled the proceedings. The hearing for the third and fourth petitions took place on 24.04.2018 (again, further to successive postponements). The third and fourth petitions for annulment seek the annulment of a series of preapprovals and operating licenses respectively, issued by the Municipality of Maroussi to a number of stores operating in the aforementioned Shopping Center, on the basis that the law on which said pre-approvals and licenses were issued is not compatible with the provisions of the Constitution. In light of the aforementioned decision of the Court's Plenary Session, the Company's legal advisors believe that the third and fourth petitions for annulment will be accepted. The fifth petition for annulment, which was heard on 21.03.2017, will probably be rejected on the grounds that the matter falls outside of the Court's jurisdiction (since the decision under annulment is the decision of the Board of Directors of OEK (Worker's Housing Organization or "Organismos Ergatikis Katoikias") which is not an enforceable administrative act).

• In addition to the above, LOV sold the office building "ILIDA BUSINESS CENTRE" to the company "EUROBANK Leasing S.A." on 26.06.2007. "EUROBANK Leasing S.A." entered into a financial lease agreement with "Blue Land S.A." regarding the said office building. The respective deed of transfer includes a provision specifying that, if either of the first two petitions is irrevocably accepted on the grounds that Law 3207/2003 is not compatible with the provisions of the Constitution, then the transaction shall be reversed by reinstatement of the property to its original status, in which case the buyer "EUROBANK Leasing" shall be entitled to the full buying price and the ownership of the office building shall return to LOV. Two opposing lawsuits have been filed; the first one was filed by the Company and LOV and is seeking to have identified that the conditions for the said provision have not been fulfilled and the second one was filed by "EUROBANK Leasing S.A." (and "BLUE LAND S.A." intervened as a third party in the proceedings to support the validity of EUROBANK's claims) and is seeking to have identified that the conditions have been met and that the purchase price be returned to "EUROBANK Leasing S.A.". The case was heard (further to postponement) on 11.10.2016. The Multimember First Instance Court issued decision No, 1522/2017, whereby the Company's and the LOV's lawsuit was rejected and the opposing lawsuit filed by Eurobank Leasing was partially accepted.

The Company and LOV filed appeal Νo. 572531/504467/2017. "EUROBANK Leasing S.A." also filed an appeal (Νo. 573006/50450/2017) and "BLUE LAND S.A." intervened again in favour of

Eurobank Leasing. The hearing of both appeals has been set for 11.10.2018 (further to postponements). Currently, all alternatives are being considered, including the possibility of an extrajudicial settlement.

Further, pursuant to the aforementioned deed of transfer, in the event of any other ruling of the Council of State regarding the said Law's non-compatibility to the Constitution, including the acceptance of the third, fourth or fifth petition, then the purchaser will be entitled to repudiate the contract and demand restoration of the aforementioned actual damages, following the lapse of a period of two years from the date of issuance of the decision on the annulment petitions, on condition that any defects or deficiencies resulting from said decision have not been remedied in the meantime

• Contractor "MICHANIKI SA" undertook a significant part of the construction works for the "Mediterranean Cosmos" shopping centre in Pylaia, Thessaloniki. Both "PYLAIA SA", a subsidiary of the Company, and "MICHANIKI SA" have filed actions and counter-actions against each other, which were jointly heard on 1.4.2009. The Athens Multimember Court of 1st Instance issued decision 8172/2009 according to which the actions of "PYLAIA SA" were rejected whereas an expert was appointed in relation to the actions of "MICHANIKI SA". "PYLAIA SA" appealed against that decision and the hearing of the appeal took place, following postponements, on 28.02.2013 before the Athens Court of Appeal. The Athens Court of Appeal issued decision No. 3977/2013 which rejected the appeal of "PYLAIA S.A.". The Company submitted an appeal on points of law before the Supreme Court, which was heard on 11.05.2015. The Court accepted the appeal of "PYLAIA S.A." by means of its Decision No 208/2016, despite the negative opinion issued by the Judge Rapporteur, and sent the case back to the Court of Appeals for a new hearing. That hearing in the Court of Appeals has been set for 26.10.2017, when it was postponed for 07.02.2019. Moreover, on 28.12.2010 the "PYLEA SA" filed lawsuits No 13132, 13134 and 13129/2010 before the Athens Multi-Member 1st Instance Court against "MICHANIKI SA", the hearing of which took place on 13.02.2013, following a postponement on 14.11.2012. Such lawsuits are identical to the previously presented lawsuits, save that they have been filed jointly with the company "EUROHYPO S.A." to address the event where the Court rules that "PYLAIA SA" is not entitled to file these lawsuits in its name. For this reason, the hearing of such lawsuits was cancelled on 13.02.2013 and had been reenacted so that those lawsuits were scheduled to be heard on 18.03.2015, when hearing was postponed for 25.01.2017 and then again cancelled. A new hearing for these lawsuits was set for 21.02.2018 and then again cancelled.

Additionally, further to the submission before the Court of the expert's report, which is favorable to "PYLAIA SA", the hearing of the actions of "MICHANIKI SA" had been set for 27.05.2015 (after postponement of 13.03.2013), but it was cancelled. A new hearing has been set for 10.10.2018. Moreover, "PYLAIA SA" filed an action against "MICHANIKI SA" on 24.12.2010 for additional compensation from the above causes, the hearing of which had been set, following postponements, on 25.02.2015, but it was cancelled. Given the outcome of the hearing before the Supreme Court, it is likely that a new hearing will be set for said action as well. Finally, "MICHANIKI S.A." filed a new lawsuit seeking compensation for amounts that "PYLAIA S.A." had collected from Alpha Bank by forfeiture of "MICHANIKI S.A." bank bonds. The lawsuit was set to be heard on 28.05.2015, but was postponed for 12.10.2017, when it was cancelled. The amount of total claims of "PYLAIA SA" against "MICHANIKI SA" is €20m (which includes the amount of €2,5m for moral damages), while "MICHANIKI SA" with said actions claims the amount of €37m (including the amount of €10.5m in compensation for moral damages). In any case, the Company's legal advisors believe that the legitimate claims of "PYLAIA SA" against "MICHANIKI SA" significantly exceed the legitimate claims of the latter against "PYLAIA SA".

In relation to the above mentioned cases the Management estimates that apart from the case of "Ilida Business Center", there is no need for further provision for future cash outflow. In relation to the "Ilida Business Center", a provision of €12.977 thousand has been formed in 2017, corresponding to the return of the ownership of an office building owned by the subsidiary Lamda Olympia Village SA as an estimation by the Management, taking into consideration the today's valuation of this certain property as well as the potential benefits from the favorable conditions of the transaction's financing. The transaction is anticipated to be completed during the second quarter of 2018.

Additionally, there are various legal cases of the Group's companies, which are not expected to create material additional liabilities.

17. Related party transactions

The following transactions were carried out with related parties:

	GROUP		COMPANY
all amounts in € thousands	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
i) Sales of goods and services
- subsidiaries	-	-	787	243
- joint ventures	32	72	15	55
- associates	-	-	17	17
	3 2	7 2	819	315
ii) Purchases of goods and services
- subsidiaries	-	-	236	229
- joint ventures	-	91	-	-
	-	9 1	236	229
iii) Benefits to management
- salaries and other short-term employment benefits	145	141	145	141
	145	141	145	141
iv) Period-end balances from sales-purchases of goods/servises
	GROUP		COMPANY
all amounts in € thousands	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Receivables from related parties:
- subsidiaries	-	-	929	-
- joint ventures	39	-	18	-
- associates	-	-	21	-
	3 9	-	968	-
Payables to related parties:
- subsidiaries	-	-	2	70
	-	-	2	7 0
	GROUP		COMPANY
	31.03.2018	31.12.2017	31.03.2018	31.12.2017
v) Loans to associates:
Balance at the beginning of the period	657	1.111	28.926	86.414
Loans granted during the period	-	360	618	-
Loan repayments/Transfer to share capital	(588)	(825)	-	-
Interest repayments/Transfer to share capital	(18)	(17)	-	-
Loan repayments	(54)	-	-	(24.300)
Loan and interest impairment	-	-	(80)	(34.318)
Interest charged	2	28	275	1.130
Balance at the end of the period	-	657	29.739	28.926

At Company level, the loans to associates refer to loans of initial capital €81m that the parent company has granted to its subsidiaries LAMDA Development Romania SRL, LAMDA Development Sofia EOOD, Robies Services Ltd, LAMDA Development Montenegro DOO and Property Development DOO.

1 January - 31 March 2018

vi) Loans from associates:	31.03.2018	31.12.2017	31.03.2018	31.12.2017
Balance at the beginning of the period	-	17.947	40.808	21.974
Loans received during the year	-	-	-	18.243
Loan repayments	-	-	(700)	(700)
Acquisition of participations	-	(18.302)	-	-
Borrowings transaction costs - amortization	-	-	5	18
Interest paid	-	-	(31)	(141)
Interest charged	-	355	508	1.414
Balance at the end of the period	-	-	40.590	40.808

At Company level, the loans from associates refer to loans of initial capital €36m that the parent company has granted to its subsidiary LAMDA Prime Properties SA and the joint venture LOV Luxembourg SARL. During the current period, the Company repaid the amount of €700k to its subsidiary LAMDA Prime Properties SA. At Group level, following the acquisition of 25% of LOV Luxembourg SARL and 50% of LAMDA OLYMPIA VILLAGE SA, there are no more loans from associates.

Services from and to related parties, as well as sales and purchases of goods, take place based on the price lists in force with non-related parties.

18. Earnings per share

Basic

Basic earnings per share are calculated by dividing profit attributable to ordinary equity holders of the parent entity, by the weighted average number of ordinary shares outstanding during the period

BASIC

	GROUP		COMPANY
all amounts in € thousands	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017	01.01.2018 to 31.03.2018	01.01.2017 to 31.03.2017
Profit/(loss) attributable to equity holders of the Company	2.167	1.711	(3.597)	(3.660)
Weighted average number of ordinary shares in issue	77.856	77.356	77.856	77.356
Basic earnings/(losses) per share (in € per share)	0,03	0,02	(0,05)	(0,05)

We note that the increase of share capital that emanates from the employee share option scheme takes place on 31 December of each year and consequently does not influence the weighted average number of shares.

DILUTED

		GROUP		COMPANY
all amounts in € thousands	01.01.2018 to 31.03.2018 2.167	01.01.2017 to 31.03.2017 1.711	01.01.2018 to 31.03.2018 (3.597)	01.01.2017 to 31.03.2017 (3.660)
Profit/(loss) used to determine dilluted earnings per share
Weighted average number of ordinary shares in issue	77.856	77.356	77.856	77.356
Adjustment for share options:
Employees share option scheme	-	-	-	-
Weighted average number of ordinary shares for dilluted
earnings per share	77.856	77.356	77.856	77.356
Diluted earnings/(losses) per share (in € per share)	0,03	0,02	(0,05)	(0,05)

Diluted earnings / (losses) per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of dilutive potential ordinary shares i.e. share options. For these share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options. The difference that arises is added to the denominator as issuance of common shares with no exchange value. Finally, no adjustment is made in the earnings (nominator).

19. Income tax expense

According to tax law, the corporate income tax rate of legal entities in Greece is set at 29% and intragroup dividends are exempt from both income tax, as well as withholding tax provided that the parent entity holds a minimum participation of 10% for two consecutive years.

In addition, the tax rate for the subsidiaries registered in foreign countries differs from country to country as follows: Greece 29%, Romania 16%, Serbia 15%, Bulgaria 10%, Montenegro 9% and Netherlands 25.5%.

Under Greek tax regulations, an income tax advance calculation on each year's current income tax liability is paid to the tax authorities. Net operating losses which are tax deductible, can be carried forward against taxable profits for a period of five years from the year they are generated.

Tax certificate and unaudited tax years

The unaudited tax years for the Company and the Group's companies are as follows:

	Fiscal years unaudited by the tax authorities		Fiscal years unaudited by the tax authorities
Company		Company
LAMDA Development SA	2012-2017
LAMDA Olympia Village SA	2012-2017
PYLAIA SA	2012-2017	METROPOLITAN EVENTS	2012-2017
LAMDA Domi SA	2012-2017	Property Development DOO	2010-2017
LAMDA Flisvos Marina SA	2012-2017	Property Investments DOO	2008-2017
LAMDA Prime Properties SA	2012-2017	LAMDA Development Romania SRL	2010-2017
LAMDA Estate Development SA	2012-2017	LAMDA Development Sofia EOOD	2006-2017
LD Trading SA	2012-2017	SC LAMDA MED SRL	2005-2017
KRONOS PARKING SA	2012-2017	LAMDA Development Montenegro DOO	2007-2017
LAMDA Erga Anaptyxis SA	2012-2017	LAMDA Development (Netherlands) BV	2008-2017
LAMDA Flisvos Holding SA	2012-2017	Robies Services Ltd	2007-2017
LAMDA Leisure SA	2012-2017	Robies Proprietati Imobiliare SRL	2007-2017
GEAKAT SA	2012-2017	SC LAMDA Properties Development SRL	2007-2017
MALLS MANAGEMENT SERVICES SA	2012-2017	Singidunum-Buildings DOO	2007-2017
MC Property Management SA	2012-2017	GLS OOD	2006-2017
LAMDA Akinhta SA	2012-2017	LOV Luxembourg SARL	2013-2017
LAMDA Dogus Marina Investments SA ATHENS METROPOLITAN EXPO SA	2012-2017 2012-2017	TIHI EOOD	2008-2017
1 January 2016, the Greek sociιtιs anonymes and limited liability companies whose annual financial statements are audited compulsorily, were required to obtain an 'Annual Tax Certificate', which is issued after a tax audit is performed by the same statutory auditor or audit firm that audits the annual financial statements. For fiscal years starting from 1 January 2016 and onwards, the 'Annual Tax Certificate' is optional, however the Group will obtain such certificate. In accordance with the Greek tax legislation and the respective Ministerial Decisions issued, additional taxes and penalties may be imposed by the Greek tax authorities following a tax audit within the applicable statute of limitations (i.e. in principle five years as from the end of the fiscal year within which the relevant tax return should have been submitted), irrespective of whether an unqualified tax certificate has been obtained from the tax paying company.
For the fiscal year 2017 tax audit is currently carried out by PriceWaterhouseCoopers SA., and the relevant tax certificate is expected to be issued after the publication of the semi-annual financial statements for 2018.
Up to 31.12.2016 the Company and PYLEA SA have been officially served with audit mandate by the competent Greek tax authorities for the year 2010. Consequently, the State is not anymore entitled, due to the lapse of the statute of limitation, to issue assessment sheets and assessment acts for taxes, duties, contributions and surcharges for the years up to 2010, pursuant to the following provisions: (a) para. 1 art. 84 of Law 2238/1994 (unaudited cases of Income taxation), (b) para. 1 art. 57 of Law 2859/2000

(unaudited cases of Value Added Tax), and, (c) para. 5 art. 9 of Law 2523/1997 (imposition of penalties for income tax cases).

The Group provides, when considered appropriate, and on a company by company basis for possible additional taxes that may be imposed by the tax authorities. As a result, the Group's tax obligations have not been defined permanently. The total amount of the cumulative provision made for the Group's and Company's unaudited, by the tax authorities, years amount to €0.2m and €0m respectively.

20. Number of employees

Number of employees at the end of the period: Group 226, Company 78 (three month period ended 31 March 2017: Group 219, Company 73) from which there are no seasonal (three month period ended 31 March 2017: Group 0, Company 0).

21. Events after the balance sheet date

There are no other events after the balance sheet date considered to be material to the financial position of the Company.