Mallouppas & Papacostas Public CO LTD

Earnings Release • Nov 20, 2013

The Board of Directors of Mallouppas & Papacostas Public Co Ltd presents the Interim Management Statement for the period from July 1, 2013 to November 18, 2013, which has been examined and approved by the Board of Directors at the meeting held on November 18, 2013 and has not been audited by the external auditors of the Group.

The unaudited Interim Management Statement has been prepared pursuant to Article 11 of the Transparency Requirements Law 190(I)/2007.

Activities

The main activities of the Group remain the same and are divided in the following sectors:

• i. Telephony and satellite systems, electrical and electronic appliances
• ii. Clothing and footwear
• iii. Gifts, school materials and fashion accessories
• iv. Home furniture and equipment and other products
• v. Investments, trade and property development

Specifically, the Group represents Mango, Stradivarius, Intimissimi, Calzedonia, Tezenis, Bagatt, Kipling and Charles & Keith and has 47 fashion stores in all towns, shopping centers and department stores across Cyprus. Also, the Group imports and distributes satellite systems and antennas, furniture, house appliances and other goods via the Four Day Clearance.

During the period, the Group closed four Bagatt stores in the Debenhams of Nicosia, Larnaca, Limassol and Paphos. Also, after the closing of the Orphanides Shopping Centre in Paphos, the Group was forced to terminate the activities of the two stores Charles & Keith and Calzedonia.'

Irrespective of the closure of the aforementioned stores, the aim of the Board of Directors is to further boost and develop the Group's activities. In November 2013, the Group will strengthen its network with the opening of six new stores (Mango, Stradivarius, Calzedonia, Intimissimi, Tezenis and Charles & Keith) at the Kings Avenue Mall in Paphos.

Review of results

Turnover

The Group's turnover reached €23.6 million compared to €25.6 million in the corresponding period of 2012, recording a decrease of 7.8%.

This decline is attributable to the fact that the turnover of the corresponding nine months of 2012 includes the sales of Prototel Co Ltd of €874.225, which was sold at the end of 2012, as well as the sales of Mallouppas & Papacostas Leisurewear Ltd (representative of PLAYLIFE) of €682.116, the activities of which were terminated at the end of 2012.

Gross profit

The gross profit stood at €9.2 million compared to €9.6 million in the corresponding period of 2010, recording a decrease of 4.2%.

The percentage of gross profit stood at 39.1% compared to 37.4% in the corresponding period of 2012, recording an increase of 4.5%.

Loss for the period

The loss for the period stood at €1.219.993 compared to a loss of €1.499.161 in the corresponding period of 2012.

The loss for the period includes charge for the amortization of goodwill of shops of €1.7 million.

Main risks and uncertainties

The main risks and uncertainties that the Group faces are the same as those described in the Annual Report 2012.

Main events

There were no other events affecting the Company's activities during the period.

Prospects

Due to the negative impacts from the Eurogroup decision and the uncertain economic condition in Cyprus, the Board of Directors believes it is not in the position to predict all the economic developments that could affect the future financial performance, the cash flows and the financial position of the Group. The Board of Directors believes that the financial crisis will continue to affect negatively the retail trade sector for the rest 2013 but it has taken all necessary measures to safeguard the viability and profitability of the Group mostly through efforts for the further development of the shop network and the restriction of operating expenses.