Marfin Investment S A : MIG Investor Release 9M 2016

FINANCIAL RESULTS: 9M 2016

Improvement in consolidated EBITDA from business operations1:

€138.7m vs. €136.8m in 9M 2015

• EBITDA from business operations1reached €138.7m vs €136.8m in 9M 2015. Group consolidated EBITDA (including holding companies and non-recurring items) amounted to €113.7m vs. €125.7m in 9M 2015. 9M 2016 results include

  €14.5m charge related to the extraordinary impairment of receivables from MARINOPOULOS group, in the context of the retail group's ongoing restructuring.

• Continued efforts to improve efficiencies as well as rationalise costs have resulted to the expansion of the EBITDA margin from business operations1to 16.3% vs. 15.6% in 9M 2015. In the face of the worsening liquidity conditions, due to the imposition of bank capital controls since the summer of 2015, the enhancement of the Group's EBITDA margin demonstrates the successful efforts to improve operating performance.

• Consolidated 9M 2016 revenues amounted to €848.4m, registering 3% decline vs. 9M 2015. The reduction reflects the challenging market conditions in the majority of the business sectors where our subsidiaries operate (particularly the adverse impact from the halt of operations of MARINOPOULOS as well as the declining household consumption), amid the prolonged economic recession in Greece.

  Summary of key financials
  GROUP (consolidated in €m)	9M 2015	9M 2016
  Sales	876.8	848.4
  EBITDA business operations(1)	136.8	138.7
  % margin	15.6%	16.3%
  EBITDA(2)	125.7	113.7(3)
  % margin	14.3%	13.4%

• EBITDA from business operations = Group consolidated EBITDA excluding holding companies and non-recurring items (excluding €14.5m extraordinary impairment of receivables from MARINOPOULOS group)

• Group consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

• Including €14.5m extraordinary impairment of receivables from MARINOPOULOS group

• 1 Consolidated EBITDA from business operations is defined as Group EBITDA excluding holding companies and

  non-recurring items (excluding €14.5m extraordinary impairment of receivables from MARINOPOULOS group)

  KEY EVENTS AND HIGHLIGHTS: 9M 2016

  ATTICA GROUP

  9M 2015 9M 2016

  Sales €222.5m €216.0m

  EBITDA €72.9m €62.3m

  • Consolidated 9M 2016 revenues amounted to €216.0m (3% reduction vs. 9M 2015) while consolidated EBITDA reached €62.3m (vs. €72.9m in 9M 2015). The key factors to the 9M 2016 performance related to the impact of the refugee flows in the islands of the North Aegean and the Dodecanese, as well as the heightened competition in domestic passenger shipping.

  • In 9M 2016 Attica reported increased traffic volumes in both freight units (+9%) and private vehicles (+4%) and decreased traffic volumes in passengers (-10%) (data derived from the Greek Port Authorities and Attica estimates; % change vs. 9Μ 2015). Group sailings increased by 1% compared to 9M 2015.

  • Management assesses plans for further revenue growth, including alternative fleet deployment combination as well as development of new routes. In this context, management's immediate plan is to strengthen the newly established company Africa Morocco Links (AML) so as to expand its activity in new routes between Morocco and Continental Europe.

    VIVARTIA

    9M 2015 9M 2016

    Sales €459.3m €440.4m

    FMCG (Dairy & Frozen) 335.3€m €320.0m

    Food Services (FSE) €128.9m €125.8m

    EBITDA (recurring) €42.0m €48.7m Impairment of receivables -- €13.7m EBITDA (reported) €42.0m €35.1m

    FMCG (Dairy & Frozen) €31.3m €23.3m

    Food Services (FSE) €10.7m €12.7m

  • 9M 2016 group EBITDA has been adversely impacted by €13.7m one-off impairment of receivables from Marinopoulos group (ailing retail supermarket chain undergoing a major restructuring plan). Excluding this one-off impairment, recurring EBITDA increased 16% vs. 9M 2015, courtesy of efficiency improvements and ongoing efforts to rationalise costs. This is evident in the expansion of the recurring EBITDA margin by c190bps to 11.1%.

  • Dairy: 9M 2016 revenues have been adversely impacted by worsening market conditions in the Greek Dairy market (revenues declined by 12% in the total milk market and by 11% in the fresh milk segment, compared to 9M 2015). Excluding the one-off impairment of receivables from Marinopoulos group, recurring EBITDA for the business segment increased 7% vs. 9M 2015, courtesy of structural efficiency improvements,

    lower raw material costs as well as innovative product launches in value accretive segments (e.g. chocolate milk with flavour, yogurt with quinoa). Yogurt exports in Italy (Granarolo partnership) increased by 42% in terms of volume and 34% in terms of revenue compared to 9M 2015. Despite the adverse impact to the retail market from the cease of operations of Marinopoulos as well as the overall declining household consumption, DELTA remains the undisputed leader in the total milk market in Greece with 27.8% share (9M 2016).

  • Frozen Foods: 9M 2016 revenues increased 4% vs. 9M 2015, outperforming a declining relevant market (-8% for the total frozen vegetables and -9% for the total frozen dough market in Greece). This is a testament to the favourable market positioning, since the business has preserved its undisputed leadership in the frozen vegetables market (62.8% market share in 9M 2016) and among branded products in the frozen dough market (27.4% market share in 9M 2016). This validates the effectiveness of the strategy to increase brand awareness and penetration (especially in frozen vegetables). Excluding the one-off impairment of receivables from Marinopoulos group, recurring EBITDA increased 26% vs. 9M 2015.

  • Food Services (FSE): the highlight of 9M 2016 performance is the EBITDA improvement (19% increase vs. 9M 2015 to €12.7m), attributed to ongoing cost cutting efforts, network and product portfolio rationalisation (e.g. improved performance at Goody's Burger House, which currently counts 82 POS out of Goody's total network of 124 POS). Note that this has been achieved amidst deteriorating trading conditions, due to the prolonged recession in Greece, which have weighed on the division's revenues (2% decline vs. 9M 2015). The FSE business is expanding its international reach, by inaugurating in August 2016 a new Goody's Burger House in Melbourne, Australia as well as a Flocafe Espresso Room in London, UK in July 2016. FSE's international network now counts 12 POS in 10 countries. Vivartia's FSE business is the market leader in the foodservice sector in Greece with 480 POS.

    HYGEIA GROUP

    9M 2015 9M 2016

    Sales €165.5m €167.4m

    EBITDA €14.7m €21.6m

  • Key features of 9M 2016 performance:

  • revenue growth of 1% vs. 9M 2015, despite challenging market conditions, and

  • marked EBITDA improvement (47% growth vs. 9M 2015), courtesy of efficiency improvements and cost rationalisation (EBITDA margin widened by c400bps vs. 9M 2015 to 12.9%).

  • Sales and EBITDA have been adversely impacted by the legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector (imposed by law in July 2013, effective retroactively as of 01.01.2013 and until 31.12.2018). The relevant charge in 9M 2016 is €13.5m vs. €10.1m in 9M 2015. Since the introduction of

25 November 2016

the claw back and rebate mechanisms (01.01.2013), the aggregate impact to Hygeia's consolidated sales and EBITDA has reached €77m.

SINGULARLOGIC

9M 2015 9M 2016

Sales €34.8m €28.6m

EBITDA (recurring) €4.5m €3.6m

Impairment of receivables -- €0.9m

EBITDA (reported) €4.5m €2.7m

• Excluding €0.9m charge related to the extraordinary impairment of receivables from MARINOPOULOS group, EBITDA reached €3.6m, registering 19% decline vs. 9M 2015. The recurring EBITDA margin remains on an upward trend, thanks to ongoing revenue mix improvements towards proprietary IT solutions as well as cost containment.

• Note that results in 2015 had been supported by the projects related to (a) the Parliamentary Elections in January 2015, (b) the Referendum in July 2015 and (c) the Parliamentary Elections in September 2015.

• Excluding the aforesaid elections-related projects, recurring revenues registered a marginal decline of 2% vs. 9M 2015.

  SUNCE BLUESUN

  9M 2015 9M 2016

  Sales €36.0m €39.5m

  EBITDA €13.6m €15.9m

• Key features of 9M 2016 performance:

• 10% revenue increase vs. 9M 2015, backed by a solid 10% increase in RevPAR to

  €62.6 as well as a 60bps increase in the average occupancy rate to 83%, and

• 17% EBITDA growth vs. 9M 2015, fuelled by the aforesaid revenue growth as well as improved efficiency (EBITDA margin expanded by c250bps vs. 9M 2015 to 40.3%).

• ROBNE KUCE BEOGRAD (RKB)

  9M 2015 9M 2016

  Sales €3.3m €3.5m

  EBITDA recurring €1.3m €0.8m

  •As of 30.09.2016 RKB's total leased area was 76,659m2vs. 60,150m2on 31.12.2015.

• As of 30.09.2016 RKB had leased 38.3% of its total portfolio (vs. 30.1% on 31.12.2015).