FINANCIAL RESULTS: H1 2016

Consolidated EBITDA from business operations1increased 23% to €68.5m vs.

€55.5m in H1 2015

  • EBITDA from business operations1increased 23% to €68.5m vs €55.5m in H1 2015. Group consolidated EBITDA (including holding companies and non- recurring items) amounted to €47.7m vs. €48.3m in H1 2015. H1 2016 results include €13.6m charge related to the extraordinary impairment of receivables from MARINOPOULOS group, in the context of the ongoing restructuring of MARINOPOULOS group.

  • Consolidated H1 2016 revenues amounted to €524m, registering a decline of

    €13m, or -2% vs. H1 2015. The reduction is attributed to the prolonged economic recession in Greece as well as to the ongoing challenging economic and market conditions in the majority of the business sectors.

  • Consolidated net loss after tax and minorities of €45.9m, compared to a relevant bottom-line loss of €51.9m in H1 2015.

  • Net Asset Value (NAV) on 30.06.2016 at €756m, corresponding to €0.81 per share. Cash at Group level amounted to €126m. Consolidated gross debt declined by €27m vs 31.12.2015, to €1.66bn.

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

    companies and non-recurring items (excluding €13.6m extraordinary impairment of receivables from MARINOPOULOS group)

    Summary of key financials

    GROUP (consolidated in €m)

    H1 2015

    H1 2016

    Sales

    536.2

    523.6

    EBITDA business operations(1)

    55.5

    68.5

    % margin

    10.4%

    13.1%

    EBITDA(2)

    48.3

    47.7(3)

    % margin

    9.0%

    9.1%

    Net results after tax and minorities

    (51.9)

    (45.9)

  • EBITDA from business operations = Group consolidated EBITDA excluding holding companies and non-recurring items (excluding €13.6m extraordinary impairment of receivables from MARINOPOULOS group)

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

  • Including €13.6m extraordinary impairment of receivables from MARINOPOULOS group

  • KEY EVENTS AND HIGHLIGHTS: H1 2016

    ATTICA GROUP

    H1 2015 H1 2016

    Sales €108.9m €109.6m

    EBITDA €19.0m €21.7m

    Net Income after minorities €(5.8)m €(2.2)m

    • The key highlights of H1 2016 performance are:

    • revenue growth of 1% vs. H1 2015, driven by higher traffic volumes in both freight units (+8.9% vs. H1 2015) and private vehicles (+10.5% vs. H1 2015), on account of 6% more sailings vs. prior year period (predominantly in the domestic market routes)

    • operating profitability (EBITDA) improvement (14% increase vs. H1 2015) with the EBITDA margin expanding by almost 230bps to 19.8%. A key contributing factor relates to the fuel savings per sailing, amid declining fuel oil prices. In H1 2016 the fuel cost per metric tonne, expressed in € terms (excluding hedging), declined 36% vs. H1 2015.

    • Note that the passenger shipping industry is highly seasonal, with the highest traffic observed between July-September and the lowest between November-February.

    • In H1 2016 Attica operated through its subsidiaries in the Adriatic Sea and in the Greek domestic sea routes with a total fleet of 13 vessels (vs. 12 in H1 2015), of which 12 Ro- Pax vessels are owned and 1 under a bareboat charter agreement. Attica's traffic volumes are as follows (data derived from the Greek Port Authorities and Attica estimates; change vs. H1 2015):

      ./ Domestic market routes (Cyclades, Dodecanese, North Aegean, Crete):

      • passengers: -3%

      • private vehicles: +13%

      • freight units: +17%

      • sailings: +8%

        ./ Adriatic Sea routes (Patra-Igoumenitsa-Ancona and Patra-Igoumenitsa-Bari):

      • passengers: -12%

      • private vehicles: -4%

      • freight units: -5%

      • sailings: -12%

    • In H1 2016, Attica repaid €32.6m borrowing obligations, taking advantage of its liquidity buffer. As of 30.06.2016, Attica's consolidated gross debt declined by €28m vs. 31.12.2015, to €257m.

    • In June 2016, Attica Group and BMCE Bank of Africa Group (BMCE) signed an agreement to operate scheduled ferry services from Morocco to Europe, through the newly- established Moroccan company AFRICA MOROCCO LINKS ("AML"), in which Attica holds a 49% stake. On 17.06.2016 AML commenced its operations in the Tanger Med (Morocco) - Algeciras (Spain) route with two Ro-Pax vessels.

    • Attica's management assesses plans for further revenue growth, including alternative fleet deployment combinations, as well as, development of new routes in Greece and abroad.

      VIVARTIA

      H1 2015 H1 2016

      Sales €292.0m €279.5m

      FMCG (Dairy & Frozen) 220.5€m €212.7m

      Food Services (FSE) €74.6m €70.5m

      EBITDA (recurring) €19.4m €23.2m Impairment of receivables -- €12.7m EBITDA (reported) €19.4m €10.5m

      FMCG (Dairy & Frozen) €18.2m €9.2m

      Food Services (FSE) €1.4m €1.9m

      Net Income after minorities €(12.2)m €(16.3)m

    • H1 2016 group EBITDA has been adversely impacted by €12.7m one-off impairment of receivables from Marinopoulos group (ailing retail supermarket chain undergoing a major restructuring plan). Excluding this one-off impairment, recurring EBITDA registered 20% increase vs. H1 2015 to €23.2m, courtesy of efficiency improvements and ongoing efforts to rationalise costs. The latter is also evident in the gross profit margin expansion by c150bps to 34.1%.

    • Dairy: H1 2016 revenues have been adversely impacted by worsening market conditions in the Greek Dairy market (market revenues declined by 11.5% vs. H1 2015 in the total milk market and by 11.7% vs. H1 2015 in the fresh milk market). Excluding the one-off impairment of receivables from Marinopoulos group, recurring EBITDA for the business increased 6% vs. H1 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). Including the aforesaid one-off

20 September 2016

impairment, reported EBITDA for the business amounted to €0.5m vs. €8.5m in H1 2015. Yogurt exports in Italy (Granarolo partnership) increased by 59% in terms of volume and 48% in terms of revenue compared to H1 2015. DELTA remains the undisputed leader in the total milk market in Greece with 27.5% share (data for the period Jan-May 2016).

  • Frozen Foods: H1 2016 revenues increased 2% vs. H1 2015, outperforming a declining relevant market (-12.5% for the total frozen vegetables and -9.1% for the total frozen dough market in Greece). This resulted to the strengthening of market position in Greece, with the business preserving its undisputed leadership in the frozen vegetables market (62.8% market share in H1 2016) and among branded products in the frozen dough market (27.0% market share in H1 2016). This validates the effectiveness of the strategy of increasing brand awareness and penetration (especially in frozen vegetables). Excluding the one-off impairment of receivables from Marinopoulos group, recurring EBITDA increased 29% vs. H1 2015. Reported EBITDA amounted to €8.7m, burdened by the aforesaid one-off impairment, vs. €9.7m in H1 2015.

  • Food Services (FSE): the highlight of H1 2016 performance is the EBITDA improvement (36% increase vs. H1 2015 to €1.9m), attributed to ongoing cost cutting efforts, network and product portfolio rationalisation. Note that this improvement has been achieved amidst deteriorating market conditions, due to the prolonged recession in Greece, which have weighed on the division's revenues (6% decline vs. H1 2015). The FSE business is expanding its international reach, by inaugurating in August 2016 a new Goody's Burger House store in Melbourne, Australia as well as a Flocafe Espresso Room store in London, UK in July 2016. FSE's international network now counts 12 stores in 10 countries.

    HYGEIA GROUP

    H1 2015 H1 2016

    Sales €114.5m €116.7m

    EBITDA €11.9m €18.2m

    Net Income after minorities €(1.7)m €4.3m

  • Key features of H1 2016 performance:

  • revenue growth of 2% vs. H1 2015, despite prolonged challenging market conditions on account of the tax and social security reforms as well as the overall economic recession in Greece, and

  • marked EBITDA improvement (+53% vs. H1 2015), attributed to efficiency improvements and cost rationalisation (EBITDA margin widened by c530bps vs. H1 2015 to 15.6%)

  • return to bottom-line profitability, driven by the aforesaid marked EBITDA improvement.

  • 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 H1 2016 is €9.3m vs. €6.7m in H1 2015. Since the introduction of the

Marfin Investment Group SA Holdings published this content on 20 September 2016 and is solely responsible for the information contained herein.
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