Mallouppas & Papacostas Public CO LTD

Earnings Release • Nov 28, 2016

Mallouppas & Papacostas Public Co Ltd

Interim Management Statement

For the period from 1 July 2016 until 25 November 2016

The Board of Directors of Mallouppas & Papacostas Public Co Ltd presents the Company's Interim Management Statement for the period from 1 July 2016 until 25 November 2016, which has been examined and approved by the Board of Directors at its meeting of 28 November 2016 and has not been audited by the Group's external auditors.

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 43 fashion stores across Cyprus in commercial streets, commercial centres and department stores. The Group also imports and distributes satellite systems and antennas, indoor and outdoor furniture as well as household equipment and other items through the Four Day Clearance activity.

Review of results for the period 01/01/2016 – 30/09/2016

Turnover

The Group's turnover was €26.6 million compared to €25.5 million in the corresponding period of 2015, registering an increase of 4.3%. The increase derives from all of the Group's activities.

Gross profit

The Group's gross profit was €10.7 million compared to €9.9 million in the corresponding period of 2015, registering an increase of 8.1%.

The gross profit percentage was 40.2% compared to 39% in the corresponding period last year registering an increase of 3%.

Profit for the period

The profit for the period was €65.968 compared to a loss of €141.545 in the corresponding period of 2015.

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 2015.

Prospects

Despite the continued problems in the economy, the Management estimates that some signs of recovery have appeared. The Management will continue its efforts to increase sales, reduce costs and improve the Group's profitability.

MPT Secretarial Services Ltd Secretary

Nicosia, 28 November 2016