Lamda Development S.A. — Interim / Quarterly Report 2023

May 31, 2023

LAMDA Development S.A.

CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD JANUARY 1st TO MARCH 31st , 2023

ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

These condensed financial statements have been translated from the original condensed 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.

INDEX OF CONDENSED FINANCIAL STATEMENTS

CONDENSED COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD JANUARY 1ST TO
MARCH 31ST, 2023 2 STATEMENT OF FINANCIAL POSITION (COMPANY AND CONSOLIDATED) 2
INCOME STATEMENT (COMPANY AND CONSOLIDATED) 3
COMPREHENSIVE INCOME STATEMENT (COMPANY AND CONSOLIDATED) 4
STATEMENT OF CHANGES IN EQUITY (CONSOLIDATED) 2023 5
STATEMENT OF CHANGES IN EQUITY (CONSOLIDATED) 2022 6
STATEMENT OF CHANGES IN EQUITY (COMPANY) 2023 7
STATEMENT OF CHANGES IN EQUITY (COMPANY) 2022 8
CASH FLOW STATEMENT (COMPANY AND CONSOLIDATED) 9
ALTERNATIVE PERFORMANCE MEASURES ("APMS") 11

Condensed Company and Consolidated Financial Statements for the period January 1st to March 31st , 2023

Statement of Financial Position (Company and Consolidated)

	GROUP		COMPANY
Amounts in € thousands	31.03.2023	31.12.2022	31.03.2023	31.12.2022
ASSETS
Non-current assets
Investment property	2.022.102	2.010.614	1.840	1.840
Inventories	836.110	830.613	-	-
Right-of-use assets	131.569	131.783	6.896	6.305
Tangible assets	90.208	88.429	4.015	4.198
Intangible assets	27.902	27.920	2.022	2.020
Investments in subsidiaries	-	-	882.364	880.780
Investments in joint ventures and associates Deferred tax assets	41.455 489	3.919 521	2.634 295	2.634 329
Restricted cash	11.347	11.347	11.347	11.347
Other receivables	21.875	21.842	4.692	4.690
Derivative financial instruments	13.533	10.267	-	-
Other financial instruments	13.120	11.757	817	817
	3.209.710	3.149.012	916.922	914.960
Current assets
Inventories	237.807	237.311	-	-
Trade and other receivables	96.644	113.884	109.457	116.758
Current tax assets	615	533	165	160
Restricted cash	167.000	167.000	167.000	167.000
Cash and cash equivalents	496.437	515.515	196.134	212.436
	998.503	1.034.243	472.756	496.354
Total assets	4.208.213	4.183.255	1.389.678	1.411.314
EQUITY
Share capital and share premium	1.024.508	1.024.508	1.024.508	1.024.508
Treasury shares	(16.216)	(15.848)	(16.216)	(15.848)
Other reserves	27.985	27.616	18.139	17.278
Retained earnings/(accumulated losses)	96.076	117.482	(261.476)	(251.484)
Equity attributable to equity holders of the Company	1.132.353	1.153.758	764.955	774.454
Non-controlling interests	13.846	13.884	-	-
Total equity	1.146.199	1.167.642	764.955	774.454
LIABILITIES
Non-current liabilities
Borrowings	773.542	775.346	541.685	541.257
Lease liabilities Deferred tax liabilities	182.712 192.841	178.242 204.090	5.447 -	4.890 -
Net employee defined benefit liabilities	940	940	468	468
Provisions for infrastructure investments for HELLINIKON S.M.S.A.	485.609	507.354	-	-
Consideration payable for the acquisition of HELLINIKON S.M.S.A.	357.633	354.656	-	-
Other non-current liabilities	21.316	20.673	-	-
	2.014.593	2.041.301	547.600	546.615
Current liabilities
Borrowings	382.947	387.315	51.919	57.391
Lease liabilities	4.464	3.094	1.814	1.751
Trade and other payables	308.024	265.225	23.390	31.103
Provisions for infrastructure investments for HELLINIKON S.M.S.A.	140.487	121.260	-	-
Consideration payable for the acquisition of HELLINIKON S.M.S.A.	165.247	163.872	-	-
Current tax liabilities	46.252	33.546	-	-
	1.047.421	974.312	77.123	90.245
Total liabilities	3.062.014	3.015.613	624.723	636.860
Total equity and liabilities	4.208.213	4.183.255	1.389.678	1.411.314

Income Statement (Company and Consolidated)

	GROUP		COMPANY
Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022
Revenue	48.187	24.815	3.578	3.861
Net gain/(loss) from fair value adjustment on investment property	(282)	16.129	-	-
Cost of sales of inventory	(10.805)	-	-	-
Expenses related to investment property	(2.746)	(1.796)	-	-
Expenses related to the development of the Ellinikon site	(18.012)	(8.513)	(2.597)	(3.283)
Employee benefits expense	(4.842)	(5.337)	(2.801)	(3.522)
Depreciation	(2.240)	(2.373)	(803)	(789)
Provision for impairment of receivables from subsidiaries	-	-	-	(198)
Gain on disposal of subsidiary	-	30	-	5
Other operating income / (expenses) – net	(3.356)	(4.637)	(981)	(1.188)
Operating profit/(loss)	5.904	18.318	(3.604)	(5.114)
Finance income	5.403	1.857	2.172	1.026
Finance costs	(30.489)	(17.996)	(8.526)	(4.408)
Share of net profit/(loss) of investments accounted for using the equity method	(164)	10	-	-
Profit/(loss) before income tax	(19.346)	2.189	(9.958)	(8.496)
Income tax expense	(2.098)	(5.294)	(34)	(159)
Profit/(loss) for the period	(21.444)	(3.105)	(9.992)	(8.655)
Profit/(loss) attributable to:
Equity holders of the parent	(21.406)	(7.719)	(9.992)	(8.655)
Non-controlling interests	(38)	4.614	-	-
	(21.444)	(3.105)	(9.992)	(8.655)
Earnings / (losses) per share (€) attributable to the equity holders of the parent
-Basic	(0,12)	(0,04)	(0,06)	(0,05)
-Diluted	(0,12)	(0,04)	(0,06)	(0,05)
Weighted Average number of shares	174.307.258	175.610.887	174.307.258	175.610.887
Revised Weighted Average number of shares	174.307.258	175.665.728	174.307.258	175.665.728

Comprehensive Income Statement (Company and Consolidated)

		GROUP		COMPANY
Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022
Profit/(loss) for the period	(21.444)	(3.105)	(9.992)	(8.655)
Change in cash flow hedges, after tax	(491)	1.501	-	-
Currency translation differences	(1)	-	-	-
Items that may be subsequently reclassified to Income Statement	(492)	1.501	-	-
Actuarial gain / (losses), after tax	-	-	-	-
Items that may not be subsequently reclassified to Income Statement	-	-	-	-
Other Comprehensive Income for the period	(492)	1.501	-	-
Total Comprehensive Income for the period	(21.936)	(1.604)	(9.992)	(8.655)
Profit/(loss) attributable to:
Equity holders of the parent	(21.898)	(6.693)	(9.992)	(8.655)
Non-controlling interests	(38)	5.089	-	-
	(21.936)	(1.604)	(9.992)	(8.655)

Statement of Changes in Equity (Consolidated) 2023

	Attributable to equity holders of the parent
Amounts in € thousands	Share capital and share premium	Treasury shares	Other reserves	Retained earnings / (accumulated losses)	Total	Non controlling interests	Total Equity
GROUP
1 January 2023	1.024.508	(15.848)	27.616	117.482	1.153.758	13.884	1.167.642
Total Income:
(Loss) / Profit for the period	-	-	-	(21.406)	(21.406)	(38)	(21.444)
Other comprehensive income for the period:
Change in cash flow hedges, after tax	-	-	(491)	-	(491)	-	(491)
Currency translation differences	-	-	(1)	-	(1)	-	(1)
Total other comprehensive income for the period	-	-	(492)	-	(492)	-	(492)
Total comprehensive income for the period	-	-	(492)	(21.406)	(21.898)	(38)	(21.936)
Transactions with the shareholders:
Acquisition of treasury shares	-	(368)	-	-	(368)	-	(368)
Employees share option scheme	-	-	861	-	861	-	861
Total transactions with the shareholders for the period	-	(368)	861	-	493	-	493
31 March 2023	1.024.508	(16.216)	27.985	96.076	1.132.353	13.846	1.146.199

Statement of Changes in Equity (Consolidated) 2022

	Attributable to equity holders of the parent
Amounts in € thousands	Share capital and share premium	Treasury shares	Other reserves	Retained earnings / (accumulated losses)	Total	Non controlling interests	Total Equity
GROUP
1 January 2022	1.024.508	(3.729)	17.256	164.206	1.202.241	99.002	1.301.243
Total Income:
(Loss) / Profit for the period	-	-	-	(7.719)	(7.719)	4.614	(3.105)
Other comprehensive income for the period:
Change in cash flow hedges, after tax	-	-	1.026	-	1.026	475	1.501
Total other comprehensive income for the period	-	-	1.026	-	1.026	475	1.501
Total comprehensive income for the period	-	-	1.026	(7.719)	(6.693)	5.089	(1.604)
Transactions with the shareholders:
Other reserves	-	-	383	(383)	-	-	-
Acquisition of treasury shares	-	(6.915)	-	-	(6.915)	-	(6.915)
Employees share option scheme	-	-	1.760	-	1.760	-	1.760
Total transactions with the shareholders for the period	-	(6.915)	2.143	(383)	(5.155)	-	(5.155)
31 March 2022	1.024.508	(10.644)	20.425	156.104	1.190.393	104.091	1.294.484

Statement of Changes in Equity (Company) 2023

Amounts in € thousands	Share capital and share premium	Treasury shares	Other reserves	Retained earnings / (accumulated losses)	Total Equity
COMPANY
1 January 2023	1.024.508	(15.848)	17.278	(251.484)	774.454
Total Income:
Loss for the period	-	-	-	(9.992)	(9.992)
Other comprehensive income for the period:
Actuarial gain / (losses), after tax	-	-	-	-	-
Total other comprehensive income for the period	-	-	-	-	-
Total comprehensive income for the period	-	-	-	(9.992)	(9.992)
Transactions with the shareholders:
Acquisition of treasury shares	-	(368)	-	-	(368)
Employees share option scheme	-	-	861	-	861
Total transactions with the shareholders for the period	-	(368)	861	-	493
31 March 2023	1.024.508	(16.216)	18.139	(261.476)	764.955

Statement of Changes in Equity (Company) 2022

Amounts in € thousands	Share capital and share premium	Treasury shares	Other reserves	Retained earnings / (accumulated losses)	Total Equity
COMPANY
1 January 2022	1.024.508	(3.729)	10.218	(212.973)	818.024
Total Income:
Loss for the period	-	-	-	(8.655)	(8.655)
Other comprehensive income for the period:
Actuarial gain / (losses), after tax	-	-	-	-	-
Total other comprehensive income for the period	-	-	-	-	-
Total comprehensive income for the period	-	-	-	(8.655)	(8.655)
Transactions with the shareholders:
Acquisition of treasury shares	-	(6.915)	-	-	(6.915)
Employees share option scheme	-	-	1.760	-	1.760
Total transactions with the shareholders for the period	-	(6.915)	1.760	-	(5.155)
31 March 2022	1.024.508	(10.644)	11.978	(221.628)	804.214

Cash Flow Statement (Company and Consolidated)

	GROUP		COMPANY
	01.01.2023	01.01.2022	01.01.2023	01.01.2022
Amounts in € thousands	to 31.03.2023	to 31.03.2022	to 31.03.2023	to 31.03.2022
Profit/(loss) for the period	(21.444)	(3.105)	(9.992)	(8.655)
Adjustments for:
Income tax expense	2.098	5.294	34	159
Depreciation	2.240	2.373	803	789
Share of net profit of investments accounted for using the equity method	164	(10)	-	-
Provision for impairment of receivables from subsidiaries	-	-	-	198
Impairment of receivables	25	25	-	-
(Gain)/loss from sale/acquisition share of control in entities	-	(30)	-	(5)
Employees share option scheme	861	1.760	861	1.760
Finance income	(5.403)	(1.857)	(2.172)	(1.026)
Finance costs	30.489	17.996	8.526	4.408
Net (gain)/losses from fair value adjustment on investment property	282	(16.129)	-	-
	9.312	6.317	(1.940)	(2.372)
Changes in working capital:
(Increase)/decrease in inventories	(13.132)	(2.963)	-	-
Decrease/(increase) in trade receivables	17.180	(9.368)	3.988	(10.543)
Increase/(decrease) in trade payables	34.042	(11.309)	(5.369)	(6.496)
Increase/(decrease) related to payments in advance from revenue contracts of HELLINIKON S.M.S.A.	(3.176)	5.216	-	-
	34.914	(18.424)	(1.381)	(17.039)
Income tax paid	(549)	(448)	(5)	-
Net cash (outflow)/inflow from operating activities	43.677	(12.555)	(3.326)	(19.411)
Cash flows from investing activities
Purchase of tangible assets and investment property	(7.617)	(10.156)	-	(47)
Purchase of intangible assets	(188)	(135)	(150)	(4)
Dividends/pre-dividends received	-	-	3.773	17.922
Interest received	47	42	35	-
Payments of consideration for the (acquisition)/disposal of participations	(13.001)	2.325	-	2.325
(Purchase)/sale of other financial instruments at fair value through profit or loss	(1.163)	-	-	-
(Increase)/decrease in the share capital of participations	(12.960)	(229)	(2.344)	(2.229)
Restricted cash	-	(5.661)	-	(5.661)
Net cash (outflow)/inflow from investing activities	(34.882)	(13.814)	1.314	12.306

	GROUP		COMPANY
Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022
Cash flows from financing activities
Acquisition of treasury shares	(368)	(7.264)	(368)	(7.264)
Dividends paid to non-controlling interests	(42)	(4.602)	-	-
Loans received/(repayment) of loans from related parties	-	-	-	(42)
Repayment of borrowings	(1.784)	(7.144)	-	-
Repayment of lease liabilities	(2.389)	(3.294)	(444)	(436)
Interest paid and related expenses	(21.046)	(9.884)	(13.405)	(6.566)
Interest paid related to lease liabilities	(2.244)	(1.736)	(73)	(81)
Net cash (outflow) / inflow from financing activities	(27.873)	(33.924)	(14.290)	(14.389)
Net increase / (decrease) in cash and cash equivalents	(19.078)	(60.293)	(16.302)	(21.494)
Cash and cash equivalents at the beginning of the period	515.515	162.402	212.436	31.505
Cash and cash equivalents at end of the period	496.437	102.109	196.134	10.011

ALTERNATIVE PERFORMANCE MEASURES ("APMs")

The Group uses certain Alternative Performance Measures (APMs), due to certain special features of the industry that operates, which are defined as below:

Definitions:

• 1. Group operating result (EBITDA): Profit/(loss) before income tax, plus net finance costs, plus depreciation of tangible assets, intangible assets and right-of-use assets.
• 2. Operating result (EBITDA) of Ellinikon project: Profit/(loss) before income tax, plus net finance costs, plus depreciation of tangible assets, intangible assets and right-of-use assets, which concern Ellinikon project, excluding operations of Marina of Agios Kosmas.
• 3. Group operating result (EBITDA) excluding Ellinikon project: Group operating result (EBITDA) minus operating result (EBITDA) of Ellinikon project.
• 4. Total Group operating result (EBITDA) before valuations and other adjustments: Group operating result (EBITDA) excluding any investment property fair value gains/losses, inventory impairment losses, profit or loss from acquisition/disposal of participation share in investments, profit or loss from disposal of investment properties and other extraordinary valuation gains/losses and costs, as well as other adjustments.
• 5. Total operating result (EBITDA) before valuations and other adjustments of Ellinikon project: Group operating result (EBITDA) excluding any investment property fair value gains/losses, inventory impairment losses, profit or loss from acquisition/disposal of participation share in investments, profit or loss from disposal of investment properties and other extraordinary valuation gains/losses and costs, as well as other adjustments, which concern Ellinikon project, excluding operations of Marina of Agios Kosmas.
• 6. Total Group operating result (EBITDA) before valuations and other adjustments excluding Ellinikon project: Total Group operating result (EBITDA) before valuations and other adjustments minus total operating result (EBITDA) before valuations and other adjustments of Ellinikon project.
• 7. Retail EBITDA (Shopping Malls Operating Result before valuations and other adjustments): Individual operating result (EBITDA) before valuation and other adjustments of the entities LOV S.M.S.A., PYLAIA S.M.S.A. and LAMDA DOMI S.M.S.A. and DESIGNER OUTLET ATHENS S.M.L.L.C., which are involved in the exploitation of the Shopping Malls The Mall Athens, Mediterranean Cosmos, Golden Hall and Designer Outlet Athens respectively.
• 8. Net Asset Value (NAV): Equity attributable to equity holders of the Company adjusted by the deferred tax liability and asset attributable to equity holders of the Company.
• 9. Investment Portfolio: Investment property, excluding Right-of-use Assets for which a relevant lease liability is recognized, plus Inventories, plus Tangible and Intangible assets, plus Investments in joint ventures and associates, plus Right-of-use Assets of the Ellinikon properties under development.
• 10. Total Investment Portfolio: Investment property, plus Inventories, plus Tangible and Intangible assets, plus Investments in joint ventures and associates, plus Right-of-use assets.
• 11. Total Debt: Borrowings, plus Lease liabilities, plus Consideration payable for the acquisition of HELLINIKON S.M.S.A..
• 12. Adjusted Total Debt: Total Debt, plus Provisions for infrastructure investments for HELLINIKON S.M.S.A..
• 13. Net Total Debt: Total Debt, less Cash and cash equivalents, less Restricted cash for serving or securing Borrowings, less Restricted cash for the purpose of repaying Consideration payable for the acquisition of HELLINIKON S.M.S.A..
• 14. Adjusted Net Total Debt: Adjusted Total Debt, less Cash and cash equivalents, less Restricted cash for serving or securing Borrowings, less Restricted cash for serving or securing Borrowings, less Restricted cash for the purpose of repaying Consideration payable for the acquisition of HELLINIKON S.M.S.A..

15. Adjusted Net Total Debt / Total Investment Portfolio

16. Gearing Ratio: Total Debt / (Total Equity and Total Debt)

• 17. Net profit/(loss) of the period of Ellinikon project: Net profits/(losses) of the period which concern Ellinikon project, excluding operations of Marina of Agios Kosmas.
• 18. Adjusted net profit/(loss) attributable to equity holders of the parent Company: Net profits/(losses) for the period attributable to equity holders of the parent Company minus net profits/(losses) of the period of Ellinikon project.

Beginning from the annual financial report of 2022 and compared to the condensed financial statements of the 1st Quarter of 2022, the Group has reformed the APMs to reflect more representatively the overall picture of the Group considering the recent developments of the Ellinikon project.

Calculations

	31.03.2023	31.12.2022	Variance
Net Asset Value (€ thousands) (as derives by internal information of the Group)	1.324.308	1.356.977	-2,4%
Net Asset Value (NAV) (€ per share)1	7,60	7,78	-2,4%

Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	Variance
Total Group operating result (EBITDA) before valuations and other adjustments excluding Ellinikon project	20.395	12.920	+58%
Total operating result (EBITDA) before valuations and other adjustments of Ellinikon project	(12.133)	(8.378)
Total Group operating result (EBITDA) before valuations and other adjustments	8.262	4.542	+82%
Revaluation gain/(loss) of Shopping Malls and other investment properties	(282)	16.129
Revaluation gain/(loss) of Ellinikon investment properties	-	-
Provision for impairment of inventories	-	-
Gain on disposal of investments in entities and investment properties	-	30
Group operating result (EBITDA)	7.980	20.701

Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	Variance
Group operating result (EBITDA) excluding Hellinikon project	20.113	29.079
Operating result (EBITDA) of Ellinikon project	(12.133)	(8.378)
Group operating result (EBITDA)	7.980	20.701
Depreciation	(2.240)	(2.373)
Finance income	5.403	1.857
Finance costs	(30.489)	(17.996)
Profit/(loss) before income tax	(19.346)	2.189

Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	Variance
The Mall Athens	8.168	6.478	+26%
Mediterranean Cosmos	4.977	4.313	+15%
Golden Hall	5.367	4.612	+16%
Designer Outlet Athens	2.408	-
Retail EBITDA (Shopping Malls Operating Result before valuations and other adjustments)	20.920	15.403	+36%

Amounts in € thousands	01.01.2023 to 31.03.2023	01.01.2022 to 31.03.2022	Variance
Net profit/(loss) for the period attributable to equity holders of the parent	(21.406)	(7.719)
Minus: Net profit/(loss) of the period of Ellinikon project	(21.852)	(16.941)
Adjusted net profit/(loss) for the period attributable to equity holders of the parent	446	9.222

¹ Revised number of shares for the 2.445.335 and 2.382.693 treasury shares which the Company holds as at 31.03.2023 and 31.12.2022 respectively.

Amounts in € thousands	31.03.2023	31.12.2022
Investment property	2.022.102	2.010.614
Inventories	1.073.917	1.067.924
Tangible assets	90.208	88.429
Intangible assets	27.902	27.920
Investments in joint ventures and associates	41.455	3.919
Right-of-use assets	131.569	131.783
Total Investment Portfolio	3.387.153	3.330.589

Amounts in € thousands	31.03.2023	31.12.2022
Borrowings	1.156.489	1.162.661
Lease liabilities	187.176	181.336
Consideration payable for the acquisition of HELLINIKON S.M.S.A.	522.880	518.528
Total Debt	1.866.545	1.862.525

Amounts in € thousands	31.03.2023	31.12.2022
Total Debt	1.866.545	1.862.525
Plus: Provisions for infrastructure investments for HELLINIKON S.M.S.A.	626.096	628.614
Adjusted Total Debt	2.492.641	2.491.139

Amounts in € thousands	31.03.2023	31.12.2022
Adjusted Total Debt	1.866.545	1.862.525
Less: Cash and cash equivalents	(496.437)	(515.515)
Less: Restricted cash for serving or securing borrowings	(11.347)	(11.347)
Less: Restricted cash for the purpose of repaying consideration payable for the acquisition of HELLINIKON S.M.S.A.	(167.000)	(167.000)
Adjusted Net Total Debt	1.191.761	1.168.663

Amounts in € thousands	31.03.2023	31.12.2022
Adjusted Total Debt	2.492.641	2.491.139
Less: Cash and cash equivalents	(496.437)	(515.515)
Less: Restricted cash for serving or securing borrowings	(11.347)	(11.347)
Less: Restricted cash for the purpose of repaying consideration payable for the acquisition of HELLINIKON S.M.S.A.	(167.000)	(167.000)
Adjusted Net Total Debt	1.817.857	1.797.277

Amounts in € thousand	31.03.2023	31.12.2022
Total Investment Portfolio	3.387.153	3.330.589
Total Debt	1.866.545	1.862.525
Net Total Debt	1.191.761	1.168.663
Adjusted Total Debt	2.492.641	2.491.139
Adjusted Net Total Debt	1.817.857	1.797.277

Group Financial Ratios	31.12.2023	31.12.2022
ADJUSTED NET TOTAL DEBT / TOTAL INVESTMENT PORTFOLIO	53,7%	54,0%
TOTAL DEBT / TOTAL EQUITY AND TOTAL DEBT (GEARING RATIO)	62,0%	61,5%