31 March 2014

Financial Results 2013

According to J&P-AVAX’s consolidated financial accounts for 2013, turnover reached €410.7 million versus €473.7 million in 2012.

At a pre-tax level, the Group recorded a €71.5 million loss in 2013 versus a €6.2 million loss in 2012, while net earnings after tax and minorities registered a €69.7 million loss in 2013 compared to a €10.6 million loss a year earlier.

These results were affected by the following factors, which are linked to the ongoing economic crisis:

provisions for doubtful receivables taken in excess of usual levels, amounting to €11.2 million for the Group

The effective absence of a real estate market led to a further drop in property values, and independent appraisal reports were used to impair the value of Group property by €21.9 million, of which €10.0 million weighed on profitability and €11.9 million were written off against equity.

  1. Provisions for the total haircut of bank deposits in Cyprus amounted to €4.5 million for the Group.
  2. The value of participations was impaired by €5.6 million for the Group.
  3. The results of the concessions business unit were reduced by €15.5 million, as follows:
    • the share in profits from the Athens Ring Road concession was burdened with additional taxation amounting to €6.7 million for the distribution of capital reserves
    • the share in profits from the Aegean Motorway concession was burdened with losses from an interest rate swap, amounting to €8.8 million
  4. The fair value of participations in concessions was impaired by a total amount of €23 million for the Group through the increase in the discount rate used in the valuation, directly impacting the net equity of the Group.

Losses incurred in 2013 are circumstantial and not representative of the Group’s long-term prospects and management’s projections for a turnaround in financial performance from 2014 onwards.

Group work-in-hand has already reached historic highs, with the backlog of signed projects exceeding €2.2 billion and projects pending to be signed amounting to around €500 million.

The re-start of large road concessions has already been achieved, while other large projects recently agreed in Greece and in international markets are about to enter construction phase.

The Group continues to pursue large projects in the local and international markets, and expects turnover and profitability to return to pre-crisis levels in coming years.

Marousi, March 31, 2014