Our core purpose is:

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2 AVRAMIDIS PANAGIOTIS ADAMOPOULOS IOANNIS ADELFIDIS ANTONIOS APOSTOLOU KONSTANTINOS ATHANASOPOULOS STAVROS ALEXIADIS DIMITRIS ANAGNOSTOPOULOS THODOROS ANASTASIOU ELINA ANDREADIS NIKOLAOS ANTONETSIS CHARALAMPOS ANTONOPOULOS GEORGIOS ANTONOPOULOS IOANNIS ARGYRATOU EFTHYMIA ARGYRIS ALEKOS ARGYROPOULOU IOANNA ARGYROS VASILEIOS ASIMAKOPOULOS DIMITRIS VAITSIS STEFANOS VELOUDOS SPYRIDON VITTIS DIMITRIOS VRYONI MAGDALINI GAVRIIL IOANNIS GARGANOURAKIS NIKOLAOS GEDEON MELPOMENI-MARIA GEORGIADIS VASILIOS GKEKI MARIANNA GIANNOPOULOS GEORGIOS GIANNOPOULOS KONSTANTINOS DALKITZIS ELEFTHERIOS DARDAMANI MARIA DARDANOS GKIKAS DIMAKI IOANNA DIMOMELETIS ANASTASIOS DIMOU GIORGOS DIMOU DIMITRIOS DIALYNAS MANOLIS DOUKAKIS GEORGIOS DRANDAKI ELEFTHERIA ZAGORAKIS NIKOLAOS ZAMPELIS IOANNIS ZEPPOS CHRONIS ZOGLOPITIS PANAGIOTIS THEODORIDIS ILIAS THEODOROPOULOU VASILIKI KAITTANI PARASKEVI KALAMARAS ANASTASIOS KALAVROS STAVROS KALOGERAKIS EMMANOUIL KARASARIDOY ATHINA KANDANOLEON EMMANOUIL KANELLAKIS IOANNIS KAPATSOS DIMITRIS KAPOUKINIS PANAGIOTIS KARACHALIOU PANAGIOTA KARVELA ANASTASIA KARRAS SPYRIDON KIOUKIS IOANNIS KIOULAFAS STERGIOS KOVATSOS PANAGIOTIS KOKKORI MARIA KOKKORI CHRISTINA KONTOGIANNI EVANTHIA KONTOLAIMOS PANAGIOTIS KOUNDOURAKIS GEORGIOS KOUROUGIAOURIS KONSTANTINOS KOUTSIOUMPA GEORGIA KYPRAIOU CHRISTINA LAZARIDIS ATHANASIOS LAZOS ASIMAKIS LENTA GEORGIA LEONTARIDIS NIKOLAOS LIAKOS LOUKAS LOUKAS THEOFANIS MANIATIS DIMITRIOS MANOLIS ANASTASIOS MANOLIS ANASTASIOS MARGARONI IOANNA MARKAKIS STYLIANOS MASVOULAS DIMITRIOS MIZYTHRAS KONSTANTINOS MITRAKI GIOTA MITRAKI SOFIA BARLAS NIKITAS BAROUTIS VASILEIOS BELLOS NIKOLAOS BONATSOS IOANNIS BONH ELENI BOULIS GIORGOS BRAVOS GIORGOS MYLONIDOU ELENI NIKOLAOU NIKOLAOS NTAIS NIKOLAOS NTINTIKOS DIMITRIOS XENOS GEORGIOS XIROS STAVROS Our core purpose is: XYGKAKIS CHRISTOS XYDIAS CHARALAMPOS ONOPAS DIMITRIS ORFANIDIS PERIKLIS PAGKRAKIOTIS ALEXANDROS PANTELEIMONITIS NIKOLAOS PANTELEIMONITIS SPIROS PAPAGEORGIOU ELENI PAPAGIANNIS IOANNIS PAPADOPOULOS GEORGIOS PAPAROUPAS To survive and grow in harmony with our values by creating superior and sustainable Economic Value for the prosperity of our people and of society GIORGOS PASPALIARIS KOSTANTINOS PASCHALIS VALIANOS PASCHALIS BAMPIS PAVLIDIS MICHAIL PAVLIDIS NEKTARIOS PEPERA THOMI PERLEPES DIMITRIOS PETROPOULOS DIONYSIOS PETROPOULOS IOANNIS PETROPOULOS KONSTANTINOS PETROU DIMITRIS PIALOGLOU LAZAROS PIPPOS VASILEIOS PISIMISIS DIMITRIOS PLAKAKIS PETROS POLYKRETIS STAMATIS POULAKIDA OURANIA POLYMENAKOU MPESSY PRINTZOU ARTEMISIA RAPTOU MARIA ROUSSIS DIMITRIOS ROUSSOU KYRIAKOULA SAGANIS PAVLOS SAMPANI CHRYSA SERIATOS DIMITRIS STAVRIANOU PLOUMI STAVROPOULOS VAIOS STOGIANNOU SOFIA STRATAKI EVANGELIA TORPOUZIDIS ANASTASIOS TSOLIAKOS GEORGIOS TZIALAS NIKOS TSALMANOGLOU ATHANASIA TSIAGKA ATHINA TSOMI MARIA TSONOS NEKTARIOS FLORIDIS GEORGIOS FOLIA AIMILIA CHARALAMPOPOULOS DIMITRIOS CHARMANTAS STEFANOS CHARMANTZIS NIKOLAOS CHATZIIOAKEIMIDOU EIRINI CHATZITHEODOSIOU DIMITRIOS CHIOTELLIS IOANNIS CHRONOPOULOS EMMANOUIL CHRYSANTHOPOULOS ATHANASIOS CHTAPODAS ELEFTHERIOS AVRAMIDIS PANAGIOTIS ADAMOPOULOS IOANNIS ADELFIDIS ANTONIOS APOSTOLOU KONSTANTINOS ATHANASOPOULOS STAVROS ALEXIADIS DIMITRIS ANAGNOSTOPOULOS THODOROS ANASTASIOU ELINA ANDREADIS NIKOLAOS ANTONETSIS CHARALAMPOS ANTONOPOULOS GEORGIOS ANTONOPOULOS IOANNIS ARGYRATOU EFTHYMIA ARGYRIS ALEKOS ARGYROPOULOU IOANNA ARGYROS VASILEIOS ASIMAKOPOULOS DIMITRIS VAITSIS STEFANOS VELOUDOS SPYRIDON VITTIS DIMITRIOS VRYONI MAGDALINI GAVRIIL IOANNIS GARGANOURAKIS NIKOLAOS GEDEON MELPOMENI-MARIA GEORGIADIS VASILIOS GKEKI MARIANNA LEONTARIDIS NIKOLAOS LIAKOS LOUKAS LOUKAS THEOFANIS MANIATIS DIMITRIOS MANOLIS ANASTASIOS MANOLIS ANASTASIOS MARGARONI IOANNA MARKAKIS STYLIANOS MASVOULAS DIMITRIOS MIZYTHRAS KONSTANTINOS MITRAKI GIOTA MITRAKI SOFIA BARLAS NIKITAS BAROUTIS VASILEIOS BELLOS NIKOLAOS BONATSOS IOANNIS BONH ELENI BOULIS GIORGOS BRAVOS GIORGOS MYLONIDOU ELENI NIKOLAOU NIKOLAOS NTAIS NIKOLAOS NTINTIKOS DIMITRIOS XENOS GEORGIOS XIROS STAVROS XYGKAKIS CHRISTOS XYDIAS CHARALAMPOS ONOPAS DIMITRIS ORFANIDIS PERIKLIS PAGKRAKIOTIS ALEXANDROS PANTELEIMONITIS NIKOLAOS PANTELEIMONITIS SPIROS PAPAGEORGIOU ELENI PAPAGIANNIS IOANNIS PAPADOPOULOS GEORGIOS PAPAROUPAS GIORGOS PASPALIARIS KOSTANTINOS PASCHALIS VALIANOS PASCHALIS BAMPIS PAVLIDIS MICHAIL PAVLIDIS NEKTARIOS PEPERA THOMI PERLEPES DIMITRIOS PETROPOULOS DIONYSIOS PETROPOULOS IOANNIS PETROPOULOS KONSTANTINOS PETROU DIMITRIS PIALOGLOU LAZAROS PIPPOS VASILEIOS PISIMISIS DIMITRIOS PLAKAKIS PETROS POLYKRETIS STAMATIS POULAKIDA OURANIA POLYMENAKOU MPESSY PRINTZOU ARTEMISIA RAPTOU MARIA ROUSSIS DIMITRIOS ROUSSOU KYRIAKOULA SAGANIS PAVLOS SAMPANI CHRYSA SERIATOS DIMITRIS STAVRIANOU PLOUMI STAVROPOULOS VAIOS STOGIANNOU SOFIA STRATAKI EVANGELIA TORPOUZIDIS ANASTASIOS TSOLIAKOS GEORGIOS TZIALAS NIKOS TSALMANOGLOU ATHANASIA TSIAGKA ATHINA TSOMI MARIA TSONOS NEKTARIOS FLORIDIS GEORGIOS FOLIA AIMILIA CHARALAMPOPOULOS DIMITRIOS CHARMANTAS STEFANOS CHARMANTZIS NIKOLAOS CHATZIIOAKEIMIDOU EIRINI CHATZITHEODOSIOU DIMITRIOS

3 R E S U L T S As a whole, the market which our Group s products serve recorded a significant increase in Our share improved in all sectors in which we operate. The Group s sales closed at 73.2m, lower by 21.5% compared to 2016 due to a drop in spot foreign sales, but with improved profitability. We now anticipate a further improvement in market figures for 2018, along with a significant growth in our market share. Group ΕΒΙTDA increased by 1.8% to 5.7m compared to 5.6m in Earnings before income tax increased by 33.3% to 3.2m ( 2.4m in 2016) and earnings after income tax and minority interests increased also by 76.9% to 2.3 m ( 1.3m 2016). Total bank borrowing increased at 23.1m, ( 22.6 in 2016) while net debt was 9.6m ( 9.8m in 2016). Cash and cash equivalents increased at 13.5m ( 12.7m as at ). Equity amounted to 30m ( 29m in 2016). The capital adequacy ratio (Equity as a percentage of Total Assets without Cash and Cash Equivalents) also improved to 58.4% (56.5% in 2016). N E W B U S I N E S S A C T I V I T I E S The Cooper, Avon & Starfire tire distributorship was assumed in 2017, becoming part of the Batteries Business Unit. Cooper Tires is a leader in the car tire industry, offering a full range of tires for passenger cars, 4x4 SUVs and light trucks. The Kubota equipment distributorship was also assumed as the year came to an end. Kubota is one of the world s largest manufacturers of agricultural tractors, related equipment, industrial engines, construction machinery, irrigation and water treatment systems. With over 30 years of presence in Greece, Kubota has managed to gain a significant share of the market. COOPER AVON STARFIRE KUBOTA I N V E S T M E N T S Investments in fixed assets amounted to approximately 250,000, mainly in vehicles and IT. Investments of 520,000 have been budgeted for 2018, mainly to upgrade the safety and functionality of Company facilities. Once again, the Group s employees and associates, including local dealers, suppliers and subcontractors, deserve the Board of Directors gratitude for their loyal support and congratulations for being the superior professionals that they all are. Μ. K. Michaloutsos Chairman J.P. Petropoulos Vice Chairman & Managing Director 1

4 T o m e a s u r e i s t o i m p r o v e L O R D K E L V I N Board οf Directors MICHALIS K. MICHALOUTSOS JOHN P. PETROPOULOS GEORGE P. DRAKOS NIKOLAOS M. EBEOGLOU MICHAEL E. ECONOMAKIS Chairman Non Executive Member Vice Chairman & Managing Director Executive Member Independent non Executive Member Chairman of the Nominations Committee Independent non Executive Member Independent non Executive Member JOHN N. FILIOTIS JOHN M. KATSOURIDIS STEFANOS A. MANOS EFSTATHIOS E. PAPAGEORGIOU Chairman of the Executive Evaluation and Compensation Committee Independent non Executive Member Independent non Executive Member Independent non Executive Member Chairman of the Audit Committee Independent non Executive Member The Board of Directors was elected by the Annual General Meeting of Shareholders on April 18, 2013 for a five year term. It holds four major meetings per year. The December meeting is devoted to approving the Business Plan and the Company s strategy for the next year. The April, July, and October meetings deal with the progress of the Business Plan and long-term issues. 6,70% 3,6 % PER ANNUM 2,5% 5,00% 4,94% 3,00% 3,00% 4,84% 2,5% 1,1% 4,93% 2,2% 1,00% -1,3% -1,7% -0,8% SALES TO AVERAGE OPERATING CURRENT ASSETS WITHOUT REAL ESTATE & END USER FINANCE 2014 COST OF BORRWING T-BILL INTEREST 2018 Projection AVERAGE INFLATION GREEK ECONOMY: COST OF CAPITAL & INFLATION 160,00 140,00 MILLIONS EUROS 83,1 63,7 50,2 55,3 66,5 80,3 93,3 73,2 120,00 100,00 80,00 60,00 40,00 20, /1/17 2/2/17 2/3/17 2/4/17 2/5/17 2/6/17 2/7/17 2/8/17 2/9/17 2/10/17 2/11/17 2/12/17 2 SALES ASE INDEX STOCK PRICE PETRO

5 N a t u r a n o n f a c i t s a l t u m A L F R E D M A R S H A L L P E T R O S P E T R O P O U L O S G R O U P Financial History IN THOUSAND Total Sales 73,619 93,282 80,292 66,558 55,367 Invoiced Sales 73,202 93,236 80,198 66,427 55,061 Gross Profit 14,716 15,628 14,705 12,659 10,485 (Percent of Invoiced Sales) (20.1%) (16.8%) (18.3%) (19.1%) (19.0%) Other Income 1, ,011 1,287 1,197 Marketing and Administrative Expenses (11,750) (11,799) (11,355) (10,826) (9,431) (Percent of Invoiced Sales) 16% (12.7%) (14.2%) (16.3%) (17.1%) Depreciation Included 911 1, Operating Profit 4,816 4,601 4,361 3,120 2,251 (Percent of Invoiced Sales) 6.5% (4.9%) (5.4%) (4.7%) (4.1%) Losses from Revaluation of Property Ιnvestments (200) (640) (664) - - Other Taxes - - (1,156) - - Νet Financial Expense (1,416) (1,506) (1,308) (1,231) (1,520) Foreign Exchange Gain (Loss) (19) (19) (15) 1 (22) Net Profit / (Losses) Before Tax 3,181 2,436 1,218 1, (Percent of Invoiced Sales) 4.3% (2.6%) (1.5%) (2.8%) (1.3%) Income Tax (839) (1,097) (627) (465) (97) Net Profit / (Losses) After Tax 2,342 1, , BALANCE SHEET ITEMS (As at 31 December) Fixed & Long Term Assets 23,000 26,143 29,604 33,075 34,468 Current Assets 28,570 25,316 21,292 24,965 25,629 Cash & Securities 13,512 12,746 18,597 13,312 14,149 Total Assets 65,082 64,205 69,493 71,352 74,246 Short Term Liabilities 22,973 24,861 29,686 27,287 23,801 Long Term Liabilities 11,967 10,265 9,014 11,915 19,561 Net Worth 30,142 29,079 30,793 32,150 30,884 EMPLOYMENT ITEMS Average Number of Employees Total Cost 5,181 5,208 5,634 5,299 4,707 Redundancy Compensation Net Total Cost 5,104 5,109 5,303 5,152 4,496 Company Social Security Payments , KEY RATIOS Solvecy 31/12 * 58.4% 56.5% 60.5% 55.4% 51% Current Ratio Total Employment Cost Per Person Sales Per Employee Weighted Average Number of Shares 7,070,400 6,999,918 6,992,898 6,924,574 6,999,341 Earnings / (Losses) per Share after Tax Capital Return per Share Dividend per share * Equity as % of Total Assets without Cash and Securities 3

6 B U S I N E S S U N I T Truck and Bus SCANIA KOGEL ALLISON GETMAN In 2017, the overall new truck market remained at last year s low levels. A total of 190 trucks over 16 tonnes were registered in the Greek market. Despite the relatively small Greek market, the Business Unit managed to record a positive Economic Profit, that was triple its initial projections, with its market share at 14.5%. Long-haul Scania trucks maintain their lead position in the Greek market, with a share exceeding 32%. The overall tourist and intercity bus market also remained at low levels, but the Business Unit managed to deliver 4 Scania Touring buses, ideal for intercity routes. A further drop was noted in the market for midi-buses of up to 30 seats. Nevertheless, the Unit delivered 5 Isuzu buses to the Intercity Bus System (KTEL) of Heraklion, Crete and to Athens. The launch of the 9.5-metre Isuzu CITIBUS, suitable for urban bus service, will continue in 2018 mainly to Municipalities. Scania is a worldwide leader in diesel engine fuel economy and low carbon technologies. It sets high environmental standards for all its authorised service centres in Greece and around the globe. ACTIVITIES Sales, modification, super-structures and technical support for: Scania trucks and buses, Isuzu buses, Getman mining equipment, Allison automatic transmissions and Kögel trailers. CUSTOMERS International and national transport companies and drivers, tourism enterprises, the public sector, public utilities, local administration organisations, private individuals, civil engineering contractors, sub-contractors, mines and quarries. 4

7 B U S I N E S S U N I T Isuzu I S U Z U P i c k - U p T r u c k s The downward trend of the agricultural sector and the further restrictions set for beneficiaries of pick-up trucks, does not seem to adversely affect the market, which rose by a further 23%, exceeding 2,500 vehicles sold. ISUZU The pick-up segment is now addressed to a variety of professionals/users, and has thus managed to attract new customers and increase competition. The new D-MAX model, with its innovative engine technology, was a contributing factor in the 13.5% rise in sales, with the share at 10% remaining quite higher than the European average. In 2018, new levels of equipment will be added to the new Isuzu D-MAX range and the full model range will undergo a minor facelift (single cab, extended cab and double cab to MY18). In Bulgaria, the market remains at a low rate of pick-up sales overall. The complete overhaul of the Isuzu authorised dealer and repair shop network-now covering the entire countrywas a success, increasing sales and laying the groundwork for the continuing growth and establishment of the brand over the next three years. T r u c k s The 3.5 to 8- tonne light truck market is still quite small, and sales are mostly limited to public sector organisations. The Isuzu N-Series Euro 6 trucks are the most comprehensive offering in this market due to their low tare and therefore large payload, their already proven reliability and their low fuel consumption achieved thanks to Isuzu s innovative diesel engines. The number of vehicles sold may be small, but the market share stands at satisfactory levels. The Business Unit is not expecting significant changes in the market or its sales in ACTIVITIES Sales and technical support for Isuzu pick-ups and light trucks in Greece and Bulgaria. CUSTOMERS Farmers, professionals, delivery companies, construction companies and the public sector. NETWORK The authorised dealer network consists of 47 points of sale and 49 repair shops throughout Greece. 5

8 B U S I N E S S U N I T Jaguar Land Rover JAGUAR LAND ROVER The luxury car market in 2017 remained practically stable, at last year s levels, as a result of increased sales and destocking in 2016 across the sector, following the elimination of the luxury tax. Sales of Jaguar Land Rovers in the Greek market were up by 31% in 2017, thanks to the targeted actions and entry of an additional partner in the Athens area, with extensive experience and a long history in luxury cars. The Range Rover Evoque and Range Rover Sport were Land Rover s star performers once again. The Range Rover Velar was added to the range in 2017, its innovative design having already drawn significant attention. At Jaguar, it was the F-PACE that was almost the exclusive focus of interest, while as the year came to a close, the E-PACE, the brand s compact SUV, also made its appearance to steal the show. These new models provided the necessary boost for the sales of both brands during The JLR Business Unit s principal goal in 2017 was to increase Jaguar Land Rover s registrations in the Greek market, which it managed to do, leading the Unit to a high market share well above the European average-and to a positive Economic Profit. For 2018, the Business Unit expects an increase of registrations, as the brand-new E-PACE, the Range Rover Velar and the new PHEV Range Rover and Range Rover Sport versions will play a decisive role towards this end. The ability of the Land Rover and Range Rover vehicles to traverse even the most inaccessible terrains will be of vital importance for conservation groups seeking to protect the natural environment throughout the globe. At the same time, Land Rover s commitment through the Fragile Earth programme is a global promise aimed at ensuring that our activities have the least possible impact on the environment. ACTIVITIES Sales and distribution of Land Rover and Range Rover cars and Land Rover, Range Rover and MG spare parts. CUSTOMERS Private consumers and rental companies. NETWORK The official network consists of 3 authorised repair shops and 2 points of sale. 6

9 B U S I N E S S U N I T Petrogen The generating set market during 2017 was decreased, mainly due to absence of big construction projects. The Business Unit achieved positive results mainly due to investments in the tourism sector (new hotels & renovations). In 2017, our completed orders included two 1375 KVA gensets to Elin Techniki for the warehouses of the Lidl supermarket chain, one 2100 KVA genset to Κls Hellas for the San Stefano Hotel, one custom-built 1100 KVA genset to Hellas Gold, one 1100 KVA genset to the Stella Beach Hotel and one 880 KVA genset to the Nammos Club. PETROGEN F.G. WILSON KOHLER GNB - EXIDE The Business Unit has 50 years of accumulated experience in generating sets and customization solutions, a customer list of powerful players across all sectors and specialised personnel. It is also first in genset sales in Greece. It has an organised network of authorised dealers providing technical support for generating sets and uninterruptible power sources (UPS) all over Greece and ensures that personnel receive regular training through seminars offered year-round, helping to provide excellent customer service. The high-quality construction, product reliability and excellent value for money, combined with the outstanding support provided anywhere in Greece and abroad, constitute the Petrogen Unit s competitive advantage and guarantees its future profitability. The Unit is also active in the sales and support of GNB-Exide Technologies industrial batteries, UPS and voltage stabilisers. We are anticipating a marginal increase of the genset market in 2018, driven by investments in the tourism sector and construction. ACTIVITIES Manufacturing, sales and technical support for Petrogen generating sets from 2 to 2500 kva, Exide industrial batteries and uninterruptible power sources (UPS). CUSTOMERS Manufacturing and construction companies, retailers, banks, telecommunication companies, shipping, hotels, hospitals, data centres, the Armed Forces, private consumers and the public sector. NETWORK A network of 30 authorised technical dealers operates throughout Greece. 7

10 B U S I N E S S U N I T Engines and Boats PERKINS LOMBARDINI SCANIA ISUZU BRIGGS & STRATTON EVINRUDE TOHATSU CAN - AM SEA - DOO SPYDER ZODIAC BOMBARD AVON O u t b o a r d M o t o r s The year 2017 was a year of stabilisation for the marine leisure sector, as the outboard motor market grew from 3,800 motors sold in 2016 to 4,000 motors in The Business Unit retained its market share in engine horsepower where it records a positive Economic Profit. Tohatsu engines represent a full range of four-stroke engines from 2.5hp to 50hp, as well as state-of-the-art TLDI two-stroke direct injection engines from 30hp to 115hp. The Business Unit also supplies the Greek market with Evinrude E-Tec outboard motors (from 25hp to 300hp), whose main advantages include their low weight, great torque, reliability, low emissions and ease of use. The new G2 motors (150hp-300hp), innovative both in respect to design and technology, have made a favourable impression thanks to their performance. The outboard motor market is expected to remain at the same levels in 2018 and the Unit to increase its market share. B o a t s Sales of Zodiac, Bombard and Avon boats were stable at the level of 2016, both in units sold and in value. We do not expect significant change in the total inflatable boat market in P e r s o n a l W a t e r c r a f t ( P W C ) Sales of personal watercraft in 2017 marked a small drop with the high demand causing serious problems in delivery. Increased sales are anticipated for 2018 driven by the new range of models by Sea Doo, both for personal and professional use, such as the GTX LTD 300hp and RXT/RXP 300hp with newly designed hulls. B o m b a r d i e r R e c r e a t i o n a l P r o d u c t s - B R P ( A T V - S S V - S P Y D E R ) Sales of BRPs (Outlander, Maverick and Spyder) dropped in 2017, as they did not comply with all regulations of the Euro 4 Emission Standard. An increase in the sales of the new BRP models, which are registered as agricultural vehicles, is anticipated for D i e s e l a n d G a s o l i n e E n g i n e s The sales of industrial engines and marine diesel engines remained unchanged in 2017, and the same is anticipated for ACTIVITIES Sales, modification and technical support for: Evinrude and Tohatsu outboard motors, Sea-Doo personal watercraft, Can-Am ATV, Spyder motorcycles, Zodiac, Avon and Bombard inflatable and rigid inflatable boats, marine and industrial engines, marine generating sets and internal combustion engines. 8 CUSTOMERS Consumers, boat-yards, importers of power boats, fishermen, fish farms, pleasure craft owners, equipment manufacturers and dealers, farmers and the public sector.

11 B U S I N E S S U N I T Agricultural Equipment In 2017, the overall agricultural equipment market decreased compared to 2016, primarily because of a lack of agricultural equipment subsidy programmes, and the consecutive postponements in the release of the current EU subsidies programme. Yet despite this adverse economic environment, the Business Unit managed to significantly improve its market share. Due to the upcoming very strict safety and exhaust emission specifications introduced by the EU, the plant made major changes across the entire range and launched a new generation of orchard tractors. The new cab orchard tractor has now become a point of reference in its category with a wide range of versions and choices, offering 6 models (70hp- 112hp) that meet all needs. LANDINI McCORMICK GALLIGNANI CELLI McCormick launched the new X7.4 and X7.6 series, with 8 models offering from 150hp to 225hp, equipped with the new cutting-edge transmission systems by ZF and new engines meeting the Tier 4 Final exhaust emission specifications. The X6-VT range (110hp to 140hp) was also launched by McCormick and was named the best machine in its category for Landini launched new low-profile versions in the orchard tractor category, as well as its new 6 series, with 3 models and engines ranging from 110hp to 130hp, covering the demanding heavy-duty general-use medium horsepower agricultural tractor category. The full replacement of orchard tractors and the changes to the other models are expected to be completed within For 2018, the Business Unit aims to improve its share of the Greek market and increase its profitability. ACTIVITIES Sales and technical support for: McCormick and Landini agricultural tractors, Gallignani square and round balers, Celli soil preparation machines, Enorossi tillers and Sigma 4 agricultural loaders. CUSTOMERS Farmers, livestock units, public utilities, municipalities and communities. NETWORK A network of 85 authorised dealers operates throughout Greece. 9

12 B U S I N E S S U N I T Industrial Equipment INGERSOLL- RAND PUREGAS 2G Investment in markets in which this Business Unit operates decreased further in A i r C o m p r e s s o r s The industrial compressed-air systems market decreased in comparison to In 2018, the Unit will continue to focus on the Greek market in order to improve its share, capitalising on the capabilities of integrated compressed-air system solutions by Ingersoll-Rand. C o g e n e r a t i o n S y s t e m s The cogeneration systems market was affected by the economic environment and the anticipation of the new legislation that will determine subsidies for RES. Provided there are no delays or other changes to this market s regulatory framework, the Unit s position in this activity is expected to improve in Ingersoll-Rand Nirvana compressors are leaders in energy savings. 2G Energy AG is amongst the world s leading manufacturer of cogeneration systems (CHP) for decentralized energy production and supply by means of combined heat and power with an overall degree of efficiency between 85% and 92%. ACTIVITIES Sales, modification, design-assembly and technical support for: Ingersoll-Rand air compressors and air tools, Puregas compressed air dryer systems and 2G cogeneration systems. CUSTOMERS Industry, commerce, shipping, shipyards and telecommunication companies. 10

13 B U S I N E S S U N I T Lubricants In 2017, the lubricant market as whole, which had been on a decline for a number of years (-33% between 2010 and 2016 according to ICAP s latest sectoral study), showed signs of stabilisation. Against this backdrop, the Business Unit managed for the fourth consecutive year in 2017 to significantly increase the volume of its sales, while improving its Economic Profit. SHELL LUBRICANTS On a global level, Shell remained in first place in world rankings for lubricant manufacturers and distributors for the 11th consecutive year, making it the undisputed leader in lubricant production and distribution. The Business Unit aims at the overall lubricant market, in all market segments: It is the number one lubricant supplier for drivers globally, offering advanced technology lubricants for modern motors and ensuring optimum lubrication conditions, protecting the engine and reducing the maintenance cost for both professional and private drivers. For all industry sectors and for any specialised equipment, Shell lubricants and services have been designed to add value to the industrial unit s operation, offering significant cost reduction and helping maximise equipment efficiency, by extending its life and decreasing any maintenance downtime. An extensive network of selected resellers ensures that any customer needs for lubricants are met quickly and reliably anywhere in Greece. Shell lubricants have been offering state-of-the-art technology for shipping for over a century, by developing products, applications and technical support services, that respond to the everchanging shipping needs. Apart from the sale of lubricants, the Business Unit offers, in close cooperation with Shell, a high level of technical support services, providing lubricant analysis, lubrication guides, product matching services and technical training adapted to partner needs, while also catering to international shipping customers at all Greek ports. The goal of this Unit for 2018 is to grow its market share and to improve its Economic Profit. ACTIVITIES Sales and distribution of Shell lubricants in Greece and Cyprus. CUSTOMERS Authorised service centres, car import dealerships, industry, lubricant resellers, construction sector, quarrying, cement sector, metal construction, public sector, shipping, aviation, energy generation and private consumers. NETWORK Network of 30 selected partners throughout Greece and Cyprus. 11

14 B U S I N E S S U N I T Batteries and Tires EXIDE HANKOOK COOPER AVON STARFIRE B a t t e r i e s The overall vehicle and boat battery market decreased in 2017 in terms of units sold. The Unit recorded somewhat increased sales, with a small drop in Economic Profit. The Business Unit collaborates with two of the largest battery manufacturers: Exide, which is a leading vehicle and shipping battery manufacturer, with a complete range of high-quality products that meet all electricity needs. As of 2015, Exide has been producing and distributing world-wide the new Start-Stop and Premium battery lines, with the new Carbon Boost technology for faster charging, covering even the increasing demands of modern vehicles. Hankook, with the guaranteed high quality of the famous Korean company, and the best value for money. Exports of batteries to Cyprus, FYROM and Albania marked an impressive increase for yet another year (+18%), with a corresponding increase in market share. T i r e s The Unit entered the tire market in the second half of the year with the Cooper, Avon and Starfire brands. The overall vehicle tire market (passenger, 4x4 SUVs, light trucks, trucks and motorcycles) showed signs of stability in 2017 in terms of units sold. Sales ranged at levels projected by the Unit, and acceptance by market professionals was very positive. The Business Unit s goal for 2018 is to bolster the battery and tire market share on the Greek market and markets abroad, but also to further improve the Economic Profit. The Company is an active participant in an alternative battery management system. (COMBATT S.A.). ACTIVITIES Sales and distribution of Exide and Hankook batteries and Cooper, Avon, Starfire tires. CUSTOMERS Battery-lubricant-parts-tire resellers, tire centres, battery centres, electricians, car dealers and importers, industry, authorised service centres, construction sector, shipping and private consumers. NETWORK Network of 130 selected partners throughout Greece, FYROM and Cyprus. 12

15 S U M M A R Y C O N S O L I D A T E D Balance Sheet IN THOUSAND ASSETS CURRENT ASSETS Inventories 9,350 7,794 Accounts Receivable 14,487 11,394 Other Receivables 4,733 6,128 Cash & Securities 13,512 12,746 TOTAL 42,082 38,062 NON CURRENT ASSETS Intangible Assets 1,060 1,452 Tangible Assets 11,531 13,619 Investments in Real Estate 7,300 8,200 Accounts Receivable Other Long Term Assets 2,712 2,229 TOTAL 23,000 26,143 TOTAL ASSETS 65,082 64,205 LIABILITIES CURRENT LIABILITIES Short Term Bank Debt 12,626 14,251 Suppliers & Other Liabilities 6,636 6,318 Current Income Tax Payable Customer Advances 2,403 1,464 Other Taxes Payable Sundry Creditors Other Short Term Liabilities TOTAL 22,973 24,861 LONG TERM LIABILITIES Long Term Bank Debt 10,525 8,350 Staff Retirement Benefits Provisions Other Long Term Liabilities Income Tax Provisions TOTAL 11,967 10,265 Share Capital 6,575 6,575 Reserves 6,272 7,547 Profit Carried Forward 17,295 14,957 TOTAL NET WORTH ATTRIBUTED TO SHAREHOLDERS 30,142 29,079 Minority Rights 0 0 TOTAL NET WORTH 30,142 29,079 TOTAL LIABILITIES 65,082 64,205 13

16 C O N S O L I D A T E D Profit & Loss Statement IN THOUSAND TOTAL SALES 73,619 93,282 INVOICED SALES 73,202 93,236 Less: Cost of Goods Sold (58,486) (77,608) Gross Profit 14,716 15,628 Plus: Other Operating Income 2,337 2,014 TOTAL GROSS PROFIT 17,053 17,642 AND OTHER OPERATING INCOME Less: General and Administrative Expenses (2,840) (2,837) Sales Expenses (8,909) (8,962) Other Expenses (506) (1,261) TOTAL OPERATING EXPENSE (12,255) (13,060) Losses from Revaluation of Property Ιnvestments (200) (640) Other Taxes 0 OPERATING PROFIT 4,598 3,942 Plus: Financial Income Less: Financial Charges (1,462) (1,579) NET FINANCIAL CHARGES (1,417) (1,506) NET PROFIT BEFORE TAX 3,181 2,436 Less: Income Tax (839) (1,096) NET PROFIT AFTER TAX 2,342 1,340 Depreciation Included in Expenses 911 1,023 Profit Attributable to: Company s Shareholders 2, Minority Shareholders 0 Earnings / (Losses) Per Share After Tax NOTES 1. The consolidated financial statements of the Group of Companies led by Petros Petropoulos AEBE include the following companies: LYPA INTERNATIONAL AEBE, SEMKA EPE, AEGEM AEBE, all based in Athens, equity participation 100% in all cases and PETROMOTOR BULGARIA EOOD, based in Sofia, equity participation 100%. 2. The number of employees at the end of fiscal year 2017 was 117. A U D I T O R S R E P O R T 14 Type of Auditor s Report: Unqualified opinion.

17 AVRAMIDIS PANAGIOTIS ADAMOPOULOS IOANNIS ADELFIDIS ANTONIOS APOSTOLOU KONSTANTINOS ATHANASOPOULOS STAVROS ALEXIADIS DIMITRIS ANAGNOSTOPOULOS THODOROS ANASTASIOU ELINA ANDREADIS NIKOLAOS ANTONETSIS CHARALAMPOS ANTONOPOULOS GEORGIOS ANTONOPOULOS IOANNIS ARGYRATOU EFTHYMIA ARGYRIS ALEKOS ARGYROPOULOU IOANNA ARGYROS VASILEIOS ASIMAKOPOULOS DIMITRIS VAITSIS STEFANOS VELOUDOS SPYRIDON VITTIS DIMITRIOS VRYONI MAGDALINI GAVRIIL IOANNIS GARGANOURAKIS NIKOLAOS GEDEON MELPOMENI-MARIA GEORGIADIS VASILIOS GKEKI MARIANNA GIANNOPOULOS GEORGIOS GIANNOPOULOS KONSTANTINOS DALKITZIS ELEFTHERIOS DARDAMANI MARIA DARDANOS GKIKAS DIMAKI IOANNA DIMOMELETIS ANASTASIOS DIMOU GIORGOS DIMOU DIMITRIOS DIALYNAS MANOLIS DOUKAKIS GEORGIOS DRANDAKI ELEFTHERIA ZAGORAKIS NIKOLAOS ZAMPELIS IOANNIS ZEPPOS CHRONIS ZOGLOPITIS PANAGIOTIS THEODORIDIS ILIAS THEODOROPOULOU VASILIKI KAITTANI PARASKEVI KALAMARAS ANASTASIOS KALAVROS STAVROS KALOGERAKIS EMMANOUIL KARASARIDOY ATHINA KANDANOLEON EMMANOUIL KANELLAKIS IOANNIS KAPATSOS DIMITRIS KAPOUKINIS PANAGIOTIS KARACHALIOU PANAGIOTA KARVELA ANASTASIA KARRAS SPYRIDON KIOUKIS IOANNIS KIOULAFAS STERGIOS KOVATSOS PANAGIOTIS KOKKORI MARIA KOKKORI CHRISTINA KONTOGIANNI EVANTHIA KONTOLAIMOS PANAGIOTIS KOUNDOURAKIS GEORGIOS KOUROUGIAOURIS KONSTANTINOS KOUTSIOUMPA GEORGIA KYPRAIOU CHRISTINA LAZARIDIS ATHANASIOS LAZOS ASIMAKIS LENTA GEORGIA LEONTARIDIS NIKOLAOS LIAKOS LOUKAS LOUKAS THEOFANIS MANIATIS DIMITRIOS MANOLIS ANASTASIOS MANOLIS ANASTASIOS MARGARONI IOANNA MARKAKIS STYLIANOS MASVOULAS DIMITRIOS MIZYTHRAS KONSTANTINOS MITRAKI GIOTA MITRAKI SOFIA BARLAS NIKITAS BAROUTIS VASILEIOS BELLOS NIKOLAOS BONATSOS IOANNIS BONH ELENI BOULIS GIORGOS BRAVOS GIORGOS MYLONIDOU ELENI NIKOLAOU NIKOLAOS NTAIS NIKOLAOS NTINTIKOS DIMITRIOS XENOS GEORGIOS XIROS STAVROS Our values: XYGKAKIS CHRISTOS XYDIAS CHARALAMPOS ONOPAS DIMITRIS ORFANIDIS PERIKLIS PAGKRAKIOTIS ALEXANDROS PANTELEIMONITIS NIKOLAOS PANTELEIMONITIS SPIROS PAPAGEORGIOU ELENI PAPAGIANNIS IOANNIS PAPADOPOULOS GEORGIOS PAPAROUPAS Respect for and trust in the individual GIORGOS PASPALIARIS KOSTANTINOS PASCHALIS VALIANOS PASCHALIS BAMPIS PAVLIDIS MICHAIL PAVLIDIS NEKTARIOS PEPERA THOMI PERLEPES DIMITRIOS PETROPOULOS DIONYSIOS PETROPOULOS IOANNIS PETROPOULOS KONSTANTINOS PETROU DIMITRIS PIALOGLOU LAZAROS PIPPOS VASILEIOS PISIMISIS DIMITRIOS PLAKAKIS PETROS POLYKRETIS STAMATIS POULAKIDA OURANIA Keep the promise POLYMENAKOU MPESSY PRINTZOU ARTEMISIA RAPTOU MARIA ROUSSIS DIMITRIOS ROUSSOU KYRIAKOULA SAGANIS PAVLOS SAMPANI CHRYSA SERIATOS DIMITRIS STAVRIANOU PLOUMI STAVROPOULOS VAIOS STOGIANNOU SOFIA STRATAKI EVANGELIA TORPOUZIDIS Fair championship ANASTASIOS TSOLIAKOS GEORGIOS TZIALAS NIKOS TSALMANOGLOU ATHANASIA TSIAGKA ATHINA TSOMI MARIA TSONOS NEKTARIOS FLORIDIS GEORGIOS FOLIA AIMILIA CHARALAMPOPOULOS DIMITRIOS CHARMANTAS STEFANOS CHARMANTZIS NIKOLAOS CHATZIIOAKEIMIDOU Zero waste EIRINI CHATZITHEODOSIOU DIMITRIOS CHIOTELLIS IOANNIS CHRONOPOULOS EMMANOUIL CHRYSANTHOPOULOS ATHANASIOS CHTAPODAS ELEFTHERIOS AVRAMIDIS PANAGIOTIS ADAMOPOULOS IOANNIS ADELFIDIS ANTONIOS APOSTOLOU KONSTANTINOS ATHANASOPOULOS STAVROS Prudence ALEXIADIS DIMITRIS ANAGNOSTOPOULOS THODOROS ANASTASIOU ELINA ANDREADIS NIKOLAOS ANTONETSIS CHARALAMPOS ANTONOPOULOS GEORGIOS ANTONOPOULOS IOANNIS ARGYRATOU EFTHYMIA ARGYRIS ALEKOS ARGYROPOULOU IOANNA ARGYROS VASILEIOS ASIMAKOPOULOS DIMITRIS VAITSIS STEFANOS VELOUDOS SPYRIDON VITTIS DIMITRIOS VRYONI MAGDALINI GAVRIIL IOANNIS GARGANOURAKIS NIKOLAOS GEDEON MELPOMENI-MARIA GEORGIADIS VASILIOS GKEKI MARIANNA LEONTARIDIS NIKOLAOS LIAKOS LOUKAS LOUKAS THEOFANIS MANIATIS DIMITRIOS MANOLIS ANASTASIOS MANOLIS ANASTASIOS MARGARONI IOANNA MARKAKIS STYLIANOS MASVOULAS DIMITRIOS MIZYTHRAS KONSTANTINOS MITRAKI GIOTA MITRAKI SOFIA BARLAS NIKITAS BAROUTIS VASILEIOS BELLOS NIKOLAOS BONATSOS IOANNIS BONH ELENI BOULIS GIORGOS BRAVOS GIORGOS MYLONIDOU ELENI NIKOLAOU NIKOLAOS NTAIS NIKOLAOS NTINTIKOS DIMITRIOS XENOS GEORGIOS XIROS STAVROS XYGKAKIS CHRISTOS XYDIAS CHARALAMPOS ONOPAS DIMITRIS ORFANIDIS PERIKLIS PAGKRAKIOTIS ALEXANDROS PANTELEIMONITIS NIKOLAOS PANTELEIMONITIS SPIROS PAPAGEORGIOU ELENI PAPAGIANNIS IOANNIS PAPADOPOULOS GEORGIOS PAPAROUPAS GIORGOS PASPALIARIS KOSTANTINOS PASCHALIS VALIANOS PASCHALIS BAMPIS PAVLIDIS MICHAIL PAVLIDIS NEKTARIOS PEPERA THOMI PERLEPES DIMITRIOS PETROPOULOS DIONYSIOS PETROPOULOS IOANNIS PETROPOULOS KONSTANTINOS PETROU DIMITRIS PIALOGLOU LAZAROS PIPPOS VASILEIOS PISIMISIS DIMITRIOS PLAKAKIS PETROS POLYKRETIS STAMATIS POULAKIDA OURANIA POLYMENAKOU MPESSY PRINTZOU ARTEMISIA RAPTOU MARIA ROUSSIS DIMITRIOS ROUSSOU KYRIAKOULA SAGANIS PAVLOS SAMPANI CHRYSA SERIATOS DIMITRIS STAVRIANOU PLOUMI STAVROPOULOS VAIOS STOGIANNOU SOFIA STRATAKI EVANGELIA TORPOUZIDIS ANASTASIOS TSOLIAKOS GEORGIOS TZIALAS NIKOS TSALMANOGLOU ATHANASIA TSIAGKA ATHINA TSOMI MARIA TSONOS NEKTARIOS FLORIDIS GEORGIOS FOLIA AIMILIA CHARALAMPOPOULOS DIMITRIOS CHARMANTAS STEFANOS CHARMANTZIS NIKOLAOS CHATZIIOAKEIMIDOU EIRINI CHATZITHEODOSIOU DIMITRIOS

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