Vassilico Cement Works Public Company LTD

Quarterly Report • Aug 2, 2024

Report and Consolidated Interim Financial Statements Six months ended 30 June 2024

Report and Consolidated Interim Financial Statements Six months ended 30 June 2024

Contents	Page
Report for the Six Months Ended 30 June 2024	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 2024

On August 1st 2024, 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 2024.

Financial results

Revenues for the first half of 2024 amounted to €69.108.000 compared to €81.119.000 for the same period in 2023 due to lower total sales volumes.

Even though energy prices were lower than expected in the first half of the year, the fast-evolving energy landscape demands that the Company remains proactive in its approach to address any challenges. As part of our strategic initiatives, we are actively working to replace traditional fossil fuels with cleaner and more sustainable alternative energy sources incrementally. This approach aligns with our goal of reducing carbon emissions.

The expenses include the sum of €5.070.950 paid to the Commission for the Protection of Competition ("CPC") as an administrative fine, which was imposed on the Company on February 24, 2023, for alleged excessive pricing of grey cement in the domestic market during 2013-2018. This payment has been made with full reservation of all legal rights, pending the Company's recourse to the Administrative Court for the annulment of the CPC's decision.

As a result of the aforementioned factors, profit for the period reached €11.625.000, compared to €13.241.000 for the same period in 2023.

Transactions with related parties

The transactions with related parties for the first half of 2024 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

Fuels, energy, and the cost of emission rights remain the highest cost factors in cement production, and their high volatility can significantly impact the entire industry. As a result, we are monitoring these factors closely to manage their potential effects on our operations.

Additionally, the persistance of high interest rates and political tentions in the region can influence market demand moving forward. The Company remains vigilant and is proactively adapting its strategies to navigate these challenges, focusing on cost management, operational efficiencies, and sustainable practices to mitigate the impact of these external factors.

Consolidated Statement of Profit or Loss and Other Comprehensive Income Six months ended 30 June 2024

	Six months ended 30 June
	2024 €000	2023 €000
Revenue	69.108	81.119
Cost of sales	(45.528)	(60.768)
Gross profit	23.580	20.351
Other operating income	997	1.196
Distribution expenses	(2.772)	(3.201)
Administrative expenses	(2.326)	(2.419)
Administrative fine	(5.071)	-
Other operating expenses	(764)	(1.011)
Operating profit before financing costs	13.644	14.916
Financial income	233	26
Financial expenses	(359)	(217)
Net financial expenses	(126)	(191)
Loss from investing activities	(4)	-
Share of profit from equity-accounted investees	557	463
Profit before tax	14.071	15.188
Taxation expense	(2.446)	(1.947)
Profit for the financial period	11.625	13.241
Other comprehensive income
Revaluation gain on financial assets at fair value through οther	107	40
comprehensive income Other comprehensive income for the period	107	40
Total comprehensive income for the period	11.732	13.281
Profit attributable to:
Equity holders of the parent	11.625	13.241
Non-controlling interest	-	-
	11.625	13.241
Total comprehensive income attributable to:
Equity holders of the parent	11.732	13.281
Non-controlling interest	-	-
	11.732	13.281
		18,4
Basic and diluted earnings per share (cents)	16,2

Consolidated Statement of Financial Position

30 June 2024

	30 June 2024	31 December 2023
	€000	€000
ASSETS
Property, plant and equipment	196.850	200.381
Intangible assets	12.336	12.336
Investment property	10.135	10.187
Rights of use assets	2.296	2.377
Investment in equity-accounted investee	2.030	1.842
Financial assets at fair value throught other comprehensive income	470	363
Total non-current assets	224.117	227.486
Inventories	50.933	47.332
Trade and other receivables	9.480	11.063
Cash and cash equivalents	27.668	18.181
Total current assets	88.081	76.576
Total assets	312.198	304.062
EQUITY AND LIABILITIES
Equity and reserves
Share capital	30.932	30.932
Reserves	238.044	226.312
Total equity attributable to equity holders of the parent	268.976	257.244
LIABILITIES
Interest-bearing loans and borrowings	6.919	9.023
Lease liabilities	1.374	1.412
Deferred taxation	21.472	21.472
Total non-current liabilities	29.765	31.907
Interest bearing-loan and borrowings	2.585	3.501
Lease liabilities	116	116
Trade and other payables	7.950	10.862
Income tax payable	2.806	432
Total current liabilities	13.457	14.911
Total liabilities	43.222	46.818
Total equity and liabilities	312.198	304.062

Consolidated Statement of Changes in Equity Six months ended 30 June 2024

				Equity
	Share Capital	Share premium reserve	Revaluation reserve	Fair value reserve	Retained profits	attributable to holders of parent	Non-controlling interest	Total equity
	€000	€000	€000	€000	€000	€000	€000	€000
Six months ended 30 June 2024
Balance 1 January 2024	30.932	45.388	32.461	(268)	148.731	257.244	-	257.244
Profit for the period	-	-	-	-	11.625	11.625	-	11.625
Other comprehensive income for the period	-	-	-	107	-	107	-	107
Total comprehensive income for the period	-	-	-	107	11.625	11.732	-	11.732
Balance 30 June 2024	30.932	45.388	32.461	(161)	160.356	268.976	-	268.976
Six months ended 30 June 2023
Balance 1 January 2023	30.932	45.388	34.625	(351)	137.943	248.537	-	248.537
Profit for the period	-	-	-	-	13.241	13.241	-	13.241
Other comprehensive income for the period	-	-	-	40	-	40	-	40
Total comprehensive income for the period	-	-	-	40	13.241	13.281	-	13.281
Balance 30 June 2023	30.932	45.388	34.625	(311)	151.184	261.818	-	261.818

Consolidated Statement of Cash Flows

Six months ended 30 June 2024

	Six months ended 30 June
	2024 €000	2023 €000
Cash flows from operating activities
Profit for the period	11.625	13.241
Adjustments for:
Depreciation and amortisation charges	7.302	7.622
Unrealised exchange (profit)/loss	(10)	4
Interest income	(223)	(30)
Interest expense	359	217
Share of profit of equity-accounted investees	(557)	(463)
Loss on disposal of investment property	4	-
Gain on sale of property, plant and equipment	(34)	(1)
Bad debts recovered	-	(38)
Taxation expense	2.446	1.947
Operating profit before changes in working capital	20.912	22.499
Changes in:
Trade and other receivables	1.708	3.320
Inventories	(3.601)	1.383
Trade and other payables	(2.918)	1.319
Cash generated from operations	16.101	28.521
Interest paid	(350)	(216)
Taxes paid	(4)	-
Net cash inflow from operating activities	15.747	28.305
Cash outflows to investing activities
Proceeds from sale of property, plant and equipment	94	15
Interest received	223	30
Dividends received	175	250
Acquisition of property, plant and equipment	(3.687)	(2.198)
Net cash used in investing activities	(3.195)	(1.903)
Cash flows from financing activities
Repayment of loans	(3.021)	(1.578)
Repayment of leases	(54)	(54)
Net cash outflows to financing activities	(3.075)	(1.632)
Effect of exchange rate fluctuations on cash held	10	(4)
Net increase of cash and cash equivalents	9.487	24.766
Cash and cash equivalents at 1 January	18.181	2.209
Cash and cash equivalents at 30 June	27.668	26.975

Notes to the Consolidated Interim Financial Statements

• 1. The interim financial statements relate to the period from 1 January to 30 June 2024, are not audited by the Company's auditors and were approved by the Board of Directors on 1 August 2024.
• 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 parties

The Company entered into various transactions with associated and related parties. 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
	2024 €000	2023 €000	2024 €000	2023 €000
Hellenic Mining Group	-	-	89	90
Heidelberg Materials	-	-	18	19
KEO Plc	-	-	5	6
The Cyprus Cement Public Company Ltd	-	-	60	60
Enerco - Energy Recovery Ltd	1.371	1.108	778	1.027
HM Trading Global GMBH	-	3.019	-	-
	1.371	4.127	950	1.202

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 33 of the Annual Report and Financial Statements for 2023.