Vassilico Cement Works Public Company LTD

Quarterly Report • Jul 29, 2022

Report and Consolidated Interim Financial Statements Six months ended 30 June 2022

Report and Consolidated Interim Financial Statements Six months ended 30 June 2022

Contents	Page
Report for the Six Months Ended 30 June 2022	1
Consolidated Statement of Profit or Loss and Other Comprehensive Income	2
Consolidated Statement of Financial Position	3
Consolidated Statement of Changes in Equity	4
Consolidated Statement of Cash Flows	5
Notes to the Consolidated Interim Financial Statements	6
Statement of the members of the Board of Directors and other responsible persons of the Company for the interim financial statements	7

Report for the Six Months Ended 30 June 2022

On July 28th 2022, the Board of Directors of Vassiliko Cement Works Public Company Ltd approved the financial results of the Group for the first half of the year that ended 30 June 2022.

Financial results

Revenues for the first half of 2022 reached €60.675.000 compared to €50.386.000 for the respective period of 2021. Revenues increased as a result of higher export sales and improved pricing, in response to the increase of electricity, fuels and other production costs.

The price increases though were not adequate to cover the continuing increases of energy costs which continued increasing to unprecedented levels. Rising inflationary pressure and devaluation of euro against the US dollar are impacting the cost structure of the Company even further.

Following the above, the profit for the period reached €5.392.000 compared to €8.783.000 for the same period of 2021.

Transactions with related parties

The transactions with related parties for the first half of 2022 are presented on note 4 of the consolidated interim financial statements.

Μain risks and uncertainties

The main risks and uncertainties faced by the Group are presented on note 5 of the Consolidated Interim Financial Statements.

Prospects for the year

Energy and fuel costs continue to increase rapidly and are expected to increase production costs as well as price levels even further. The war between Russia and Ukraine keeps putting pressure on economic and global financial markets causing disruptions in supply chains as well as limiting the fuels and materials availability, impacting consumer confidence and increasing uncertainty over estimates both in costs as well as in sales for the second half.

Consolidated Statement of Profit or Loss and Other Comprehensive Income Six months ended 30 June 2022

	Six months ended 30 June
	2022 €000	2021 €000
Revenue	60.675	50.386
Cost of sales	(50.658)	(36.157)
Gross profit	10.017	14.229
Other operating income	713	753
Distribution expenses	(2.479)	(2.313)
Administrative expenses	(1.863)	(1.815)
Other operating expenses	(695)	(1.044)
Operating profit before financing costs	5.693	9.810
Financial income	127	39
Financial expenses	(173)	(146)
Net financial expenses	(46)	(107)
Profit from investing activities	352	-
Share of profit from equity-accounted investees	276	405
Profit before tax	6.275	10.108
Taxation expense	(883)	(1.325)
Profit for the financial period	5.392	8.783
Other comprehensive (loss)/income
Revaluation gain / (loss) on financial assets at fair value through	(14)	3
οther comprehensive income
Other comprehensive (loss)/income for the period	(14)	3
Total comprehensive income for the period	5.378	8.786
Profit attributable to:
Equity holders of the parent Non-controlling interest	5.392 -	8.783 -
	5.392	8.783
Total comprehensive income attributable to:		8.786
Equity holders of the parent Non-controlling interest	5.378 -	-
	5.378	8.786
Basic and diluted earnings per share (cents)	7,5	12,2

Consolidated Statement of Financial Position

30 June 2022

€000 €000 ASSETS Property, plant and equipment 219.593 221.837 Intangible assets 12.332 12.332 Investment property 5.533 5.533 Rights of use assets 1.524 1.583 Investment in equity-accounted investee 1.857 1.625 Financial assets at fair value throught other comprehensive income 217 232 Total non-current assets 241.056 243.142 Inventories 42.078 51.766 Trade and other receivables 10.265 6.885 Total current assets 62.031 48.963 292.105 Total assets 303.087 EQUITY AND LIABILITIES Equity and reserves Share capital 30.932 30.933 Reserves 212.679 216.654 Total equity attributable to equity holders of the parent 243.612 247.586 Non-controlling interest - - 247.586 Total equity 243.612 LIABILITIES Interest-bearing loans and borrowings 11.657 3.801 Lease liabilities 1.507 1.542 Deferred taxation 23.910 23.410 Total non-current liabilities 36.574 29.253 Bank overdraft 3.269 6.149 Interest bearing-loan and borrowings 6.249 959 Lease liabilities 115 115 Trade and other payables 10.593 6.868 Provisions for liabilities and charges 300 300 Income tax payable 2.375 875 Total current liabilities 22.901 15.266 Total liabilities 59.475 44.519 Total equity and liabilities 303.087 292.105	30 June 2022	31 December 2021

Consolidated Statement of Changes in Equity Six months ended 30 June 2022

	Share Capital	Share premium reserve	Revaluation reserve	Fair value reserve	Retained profits	Equity attributable to holders of parent	Non-controlling interest	Total equity
	€000	€000	€000	€000	€000	€000	€000	€000
Six months ended 30 June 2022
Balance 1 January 2022	30.932	45.388	34.160	(399)	137.505	247.586	-	247.586
Profit for the period	-	-	-	-	5.392	5.392	-	5.392
Other comprehensive loss for the period	-	-	-	(14)	-	(14)	-	(14)
Total comprehensive income for the period	-	-	-	(14)	5.392	5.378	-	5.378
Dividends	-	-	-	-	(9.352)	(9.352)	-	(9.352)
Balance 30 June 2022	30.932	45.388	34.160	(413)	133.545	243.612	-	243.612
Six months ended 30 June 2021
Balance 1 January 2021	30.932	45.388	35.503	(413)	135.655	247.065	-	247.065
Profit for the period	-	-	-	-	8.783	8.783	-	8.783
Other comprehensive income for the period	-	-	-	3	-	3	-	3
Total comprehensive income for the period	-	-	-	3	8.783	8.786	-	8.786
Dividends	-	-	-	-	(10.790)	(10.790)	-	(10.790)
Balance 30 June 2021	30.932	45.388	35.503	(410)	133.648	245.061	-	245.061

Consolidated Statement of Cash Flows

Six months ended 30 June 2022

	Six months ended 30 June
	2022 €000	2021 €000
Cash flows from operating activities
Profit for the period	5.392	8.783
Adjustments for:
Depreciation and amortisation charges	7.205	7.049
Unrealised exchange profit	(127)	(39)
Dividends income	(5)	-
Interest expense	173	146
Share of profit of equity-accounted investees	(276)	(405)
Loss on sale of property, plant and equipment	74	75
Taxation expense	1.032	1.325
Operating profit before changes in working capital	13.468	16.934
Changes in:
Trade and other receivables	(3.033)	(1.032)
Inventories	(9.688)	(7.787)
Trade and other payables	3.318	(655)
Cash generated from operations	4.065	7.460
Interest paid	(173)	(127)
Taxes paid	-	(13)
Net cash inflow from operating activities	3.892	7.320
Cash outflows to investing activities
Proceeds from sale of property, plant and equipment	-	3
Dividends received	105	220
Acquisition of property, plant and equipment	(4.977)	(4.925)
Net cash used in investing activities	(4.872)	(4.702)
Cash flows from financing activities
Proceeds from new loans raised	13.719	-
Repayment of loans	(573)	(4.417)
Repayment of leases	(61)	(57)
Dividends paid	(9.352)	(10.790)
Net cash inflows/(outflows) from/(to) financing activities	3.733	(15.264)
Effect of exchange rate fluctuations on cash held	127	-
Net increase/(decrease) of cash and cash equivalents	2.880	(12.646)
Cash and cash equivalents at 1 January	(6.149)	13.782
Cash and cash equivalents at 30 June	(3.269)	1.136

Notes to the Consolidated Interim Financial Statements

• 1. The interim financial statements relate to the period from 1 January to 30 June 2022, are not audited by the Company's auditors and were approved by the Board of Directors on 28 July 2022.
• 2 The interim financial statements comply with the International Accounting Standard 34 "Interim Financial Statements".
• 1. The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements. The interim financial statements are expressed in thousands of Euro.

4. Transactions with related companies

The Company entered into various transactions with associated and related companies. These transactions include the rendering of technical, administrative, commercial and other services to the Group as well as the purchase and sale of raw materials, spare parts and other goods and services at mutually agreed prices. During the period, the transactions with the above were as follows:

	Sales 30 June		Purchases
			30 June
	2022	2021	2022	2021
	€000	€000	€000	€000
Hellenic Mining Group	-	-	81	74
HeidelbergCement Group	3.989	-	13	-
KEO Plc	-	-	3	2
Cyprus Cement Group	-	-	60	60
Enerco - Energy Recovery Ltd	483	835	856	866
	4.472	835	1.013	1.002

5. Μain risks and uncertainties

The uncertain economic conditions, the increased regulatory conditions imposed by the EU ETS, energy prices and exchange rates, could affect:

• (1) the Group's income and operating costs,
• (2) the ability of the Group's trade and other debtors to repay the amounts due to the Group, and

(3) the cash flow forecasts of the Group and the assessment of impairment of other financial and non financial assets.

The uncertainty regarding the course of developments in the markets does not allow a safe prediction for the remaining of the current year, which may affect negatively the future financial performance, cash flows and financial position of the Group. Considering the above uncertainties the Group's Management is taking measures to limit exposure to certain risks and mitigate any possible negative consequences.

Other risks and uncertainties faced by the Group are detailed in note 34 of the Annual Report and Financial Statements for 2021.