Mallouppas & Papacostas Public CO LTD

Earnings Release • Nov 26, 2015

Mallouppas & Papacostas Public Co Ltd

Interim Management Statement

For the period from 1 July 2015 until 25 November 2015

The Board of Directors of Mallouppas & Papacostas Public Co Ltd presents the Company's Interim Management Statement for the period from 1 July 2015 until 25 November 2015, which has been examined and approved by the Board of Directors at its meeting of 26 November 2015 and has not been audited by the Group's external auditors.

The unaudited Interim Management Statement for the above period has been prepared pursuant to Article 11 of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 190(I)/2007.

Activities

The Group's main activities are divided into the following sectors:

• i. Sale of clothes and shoes
• ii. Sale of satellite systems, electrical and electronic goods
• iii. Sale of personal gifts, school items and fashion accessories
• iv. Sale of furniture, household equipment and other items
• v. Investments, trade and property development

More specifically, the Group represents the brands Mango, Stradivarius, Calzedonia, Intimissimi, Tezenis, Bagatt, Charles & Keith, Primadonna and Kipling and operates a total of 50 fashion stores across Cyprus in commercial streets, commercial centres and department stores. The Group also imports and distributes satellite systems and antennae, indoor and outdoor furniture as well as household equipment and other items through the Four Day Clearance activity.

Review of results for the period 1/1/2015 – 30/9/2015

Turnover

The Group's turnover was €25.5 million compared to €26,7 million in the corresponding period of 2014, recording a decrease of 4.5%. The decrease derives from all of the Group's activities and is attributed to the ongoing economic crisis.

Gross profit

The Group's gross profit was €9.9 million compared to €10.5 million in the corresponding period of 2014, recording a decrease of 5.7%.

The gross profit percentage was 39% compared to 39.2% in the corresponding period of last year, and has therefore remained at approximately the same levers.

Loss for the period

The loss for the period was €141.545 compared to a loss of €243.981 in the corresponding period of 2014.

These are the figures after the charge for losses of fair value of investments in immovable property of €0 for the current period compared to a charge of €1.2 million in the corresponding nine-month period of 2014.

Other material events

Beyond what is stated above, there have been no other material events in the period under review.

Main risks and uncertainties

The main risks and uncertainties faced by the Group are the same as those described in the Annual Report for 2014.

Prospects

In 2015, economic indicators have started showing signs of stabilisation compared to 2013 and 2014. This obviously derives mostly from the fact that the economy has shrunk to such a degree that there is no room for further shrinkage.

The Management estimates that as regards retail trade, 2016 will be a difficult year, without foreseeable clear prospects of recovery. The aim of the Management in these adverse conditions is to maintain the Group's profitability at satisfactory levels, taking all necessary measures to this end.

MPT Secretarial Services Ltd Secretary

Nicosia, 26 November 2015