Vonpende Holdings PLC

Management Reports • Jan 14, 2019

Attention of: Cyprus Stock Exchange ("CSE") Lord Byron avenue 71-73 1096 Nicosia

30 November 2018

Dear Sirs.

SUBJECT: Letter by the CSE dated 20 November 2018 addressed to VONPENDE HOLDINGS P.L.C. (the "Company" or the "Group")

By reference to your letter dated 20 November 2018, we hereby update the CSE and the public on the Group's steps to materialize its Business Plan during the year 2018.

The Company, since its admission to the Emerging Companies Market of the CSE, has been actively implementing the Business Plan as outlined in its Admission Document dated 20 December 2015 with a firm commitment to reaching the objectives set out therein.

More specifically, we highlight the following events indicating the Company's commitment to its original Business Plan:

• The Board continued its high-level meetings with institutional investors including private equity firms and funds which are interested in investing in Cypriot-listed securities. The Board held meetings in Cyprus, Greece, Switzerland and the UK with a view to raising awareness about the Company's offering among potential investors.
• The Company has increased its authorised share capital, and admitted the newly issued shares to the CSE.
• The Company as part of its reinvestment strategy, has proposed to shareholders a dividend reinvestment plan in order for the Group to utilise any profits for the purpose of further future investments and growth.
• In line with its continuing efforts to apply a sound risk diversification strategy, the Company has continued its investments in securities issued by Cypriot companies, including shares and bonds and gradually increasing its stake. More specifically, in the course of 2018, the Company received business opportunity proposals for investment in the equity of Cypriot-owned businesses which are currently being evaluated by the board and has also invested in corporate bonds issued by another Cypriot company.

The Company continues to pursue its commitment to implementing a sound $\bullet$ corporate social responsibility strategy through supporting various events that took place during the year, and sponsorships of local athletic organisations.

During the course of the year 2018, the Company made every effort to continue its steady growth with a view of raising capital, reinvesting profits in order to promote further growth and maximize returns for its shareholders.

By Order of the Board $u \circ \alpha_1$