PRESS RELEASE

May 30th 2014

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1st Quarter 2014 Financial Results of F.G. EUROPE S.A. Group

• Sales increase in domestic market.

• Decrease in Group's net financial results.

• Negative effect on Group's financial results, due to both the extraordinary taxation of 10% on revenues arising from energy sector (Law 4093/2012) in 2014 and the credit note of 10%, implemented on revenues from energy sector in 2013,

u!nder the provisions of Law 4254/14.

The change of Company's development strategy in Turkey temporarily affected its sales in
this market, which in the 1st quarter presented a 63.37% decrease and a further 35.53% decline in Company's total exports. The current situation is expected to normalize by the l!aunch of the Group's subsidiary in Turkey, in June 2014.
Sales in the domestic market presented a 6.24% increase, limiting Company's total sales
decrease to the level of 24.55%. Sales ratio between domestic over foreign markets stood in t!he 1 quarter 2014 to 37% / 63% versus 26% / 74% of the respective sales in 2013.
Said decrease in exports affected both Company's EBT and net income, amounted to € 0.05 m!il and € 0.02 mil respectively, from € 1.23 mil and € 0.89 mil in the 1 quarter 2013.
The obligation to issue a credit note on revenues achieved in 2013 from the energy sector,
under the Law 4254/7-4-2014, had a further negative effect on Group's results. Said credit n!ote of € 1.02 mil affected Group's turnover and EBT, amounted to € 0.94 mil loss.

(amounts in '000 €)

Turnover (Minus): C.G.S. Gross Profit

Gross Profit Margin General Expenses Operating Profit EBITDA

ΕBITDA Margin

Net Financial

Results

EBT Income Tax Net Profit Distributed as

follows:

Group

Company

(amounts in '000 €)

Turnover (Minus): C.G.S. Gross Profit

Gross Profit Margin General Expenses Operating Profit EBITDA

ΕBITDA Margin

Net Financial

Results

EBT Income Tax Net Profit Distributed as

follows:

1/1-31/3/2

014

14,648 (10,544)

4,104

28.02% (3,969)

169

1,328

9.07% (1,113)

(944)

168 (776)

1/1-31/3/2

013

20,990 (13,555)

7,435

35.42% (4,371)

3,117

3,821

18.20% (1,260)

1,857

(325)

1,532

Δ%

-30.21%

-22.21%

-44.80%

-7.40 µ

-9.20%

-94.58%

-65.24%

-9.13 µ

-11.67%

-

-

-

1/1-31/3/2

014

13,297 (8,948)

4,349

32.71% (3,478)

900

1,187

8.93% (849)

51

30

21

1/1-31/3/2

013

17,624 (12,112)

5,512

31.28% (3,593)

1,971

1,780

10.10% (739)

1,232

(347)

885

Δ%

-24.55%

-26.12%

-21.10%

1.43 µ

-3.20%

-54.34%

-33.31%

-1.17 µ

14.88%

-95.86%

-

-97.63%

128 Vouliagmenis Av., P.C. 166 74, Glyfada

Parent Company

Shareholders

Minority Rights

EPS

....---


128 Vouliagmenis Av.,P.C.166 74,Glyfada

A!t the parent Company Level:

In the 1st quarter 2014 Total sales amounted to € 13.30 mil against € 17.62 mil in the
corresponding quarter 2013, presenting a 24.55% decrease.
Air Conditioners total sales, decreased by 26.00% due to said decline in sales in Turkish market, amounted to € 12.43 mil against € 16.80 mil in the 1st quarter 2013. Air conditioners domestic sales presented an upward movement by 6.52%, amounted to € 4.05 mil over € 3.80 mil in the 1st quarter 2013, while respective exports limited to € 8.38 mil against € 12.99 mil i!n 2013.
Domestic sales of white goods, under the own brand name ESKIMO, slightly fell to € 0.39
mil versus € 0,41 mil in 2013, while sales of SHARP products presented a 20.10% increase in the respective period, amounted to € 0.47 mil against 0.39 mil in the 1st quarter 2013.
Gross profit margin slightly increased, accounting for 32.71% versus 31.28% in 2013. The improvement of GPM made the reduction in gross profit to be proportionally less than the r!eduction in total sales (21.10% compared to 24.55% respectively).
Cash & Cash Equivalents significantly increased in the 1st quarter 2014, amounted to the level
o!f € 22.22 mil versus € 10.71 mil at 31/12/2013.
To meet the expected demand in view of the summer season, the stock increased to € 56,67
m!il compared to € 40,43 mil at the end of 2013.

A!t the Group Level:

Group's total sales amounted to € 14.65 mil against € 20.99 mil in the 1st quarter 2013,
decreased by
3!0.21%.
Revenues received from the energy sector in the 1st quarter 2014 significantly decreased to €
1.35 mil against € 3.35 mil in 2013, mainly due to abovementioned deduction of 10% on the revenues arising in 2013 (€ 1.02 mil - Law 4254/2014) and the unfavorable wind conditions o!ccurred in the 1st quarter 2014.
Group's gross profit presented a 44.80% decrease, amounted to € 4.10 mil over € 7.44 mil
a!chieved in the respective period in 2013.
EBITDA dropped to € 1.33 mil against € 3.82 mil in 2013, while operating margin (EBITDA/
S!ales) accounts for 9.07% versus 18.20% in 2013.
General expenses (Administration - Distribution - Miscellaneous) fell by 9.20%, amounted to
€ 3.97 mil compared to € 4.37 mil in 2013, bringing the ratio General Expenses / Sales to
2!7.10% against 20.82% in the 1 quarter 2013.
Group's net financial expenses decreased to € 1.11 mil against € 1.26 mil in 2013 mainly due
to positive exchange differences of € 0.25 mil achieved in the 1st quarter 2014 (negative e!xchange differences of € 0.23 mil occurred in the same period in 2013).
Group's total liabilities presented a 22.52% increase, accounting for € 145.23 mil against €
118.54 mil at 31/12/2014. Said increase is primarily due to the rise in trade and other payables, resulted from the stock increase with a view to meeting the expected demand in the f!orthcoming period.
EBT amounted to € 0.94 mil loss against € 1.86 mil profit in the 1st quarter 2013, entirely due
to the credit note of € 1.02 mil, implemented by the provision of Law 4254/2014.

128 Vouliagmenis Av., P.C. 166 74, Glyfada

!

Group's Net profit after tax and minority rights amounted to € 0.367 mil loss compared to €
1!.169 mil profit for the corresponding quarter in 2013.
The Management Team of the Group strongly estimates that both Parent Company's and
Group's Sales will significantly augment in the forthcoming period in the domestic market as w!ell as in active markets abroad.
Financial Statements for the three month period ended March 31st, 2014 will be available to
the public on the Company's website (URL: http://www.fgeurope.gr) under section "Investors
R!elations" on 30/5/2013.
For further information please contact the Investors Relations Department of F.G. Europe
S.A., 128 Vouliagmenis Avenue, Glyfada - 166 74, Tel. +30 210 9696500, Fax +30 210
9603802, email ir@fgeurope.gr

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128 Vouliagmenis Av., P.C. 166 74, Glyfada
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