Annual Report
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ANNUAL REPORT ANNUAL REPORT 2003 ATHENS,JUNE 2004 ∫∂º∞§∞π√ TABLE OF CONTENTS A. SUMMARY FINANCIAL STATEMENTS OF THE COMPANY......................................6 B. FINANCIAL INDICATORS OF THE COMPANY............................................................8 C. ADJUSTMENT OF THE COMPANY’S EARNINGS AND EQUITY CAPITAL..............9 D. SUMMARY CONSOLIDATED FINANCIAL STATEMENTS .......................................13 E. CONSOLIDATED FINANCIAL INDICATORS..............................................................17 F. ADJUSTED CONSOLIDATED EARNINGS AND EQUITY CAPITAL ........................18 I. INFORMATION ON THE ANNUAL REPORT AND THE COMPANY’S AUDITORS........22 II. SHARE CAPITAL INCREASE AND ALLOCATION OF RAISED FUNDS ............................37 III. SHAREHOLDERS’ RIGHTS......................................................................................................44 IV. TAXATION OF DIVIDENDS ...................................................................................................46 V. INFORMATION ON THE COMPANY.....................................................................................47 VI. BUSINESS ACTIVITY ...............................................................................................................57 VII. PRODUCTION WORK FLOW.................................................................................................87 VIII. FIXED ASSETS - GUARANTEES AND COLLATERALS ........................................................92 IX. CORPORATE ACTIONS ON SHARE CAPITAL ...................................................................101 X. EQUITY CAPITAL - BOOK VALUE OF SHARE ...................................................................106 XI. CONSOLIDATED EQUITY CAPITAL - CONSOLIDATED BOOK VALUE OF SHARE...107 XII. SHAREHOLDERS - SHAREHOLDING STRUCTURE .........................................................108 XIII. MARKET VALUE OF THE SHARES ......................................................................................109 XIV. BOARD OF DIRECTORS ........................................................................................................110 XV. MANAGEMENT OF THE COMPANY ...................................................................................117 XVI. PERSONNEL.............................................................................................................................120 XVII. THE COMPANY’S INVESTMENTS FOR THE PERIOD 1999-2003.................................121 XVIII. REVIEW OF ACTIVITIES AND EARNINGS......................................................................122 XIX. REVIEW OF THE COMPANY’S BALANCE SHEET ..........................................................128 XX. SOURCES AND USES OF CAPITAL ...................................................................................143 XXI. CONSOLIDATED FINANCIAL STATEMENTS .................................................................146 XXII. DIRECT AND INDIRECT HOLDINGS OF LAMBRAKIS PRESS SA OVER 5% ON 30.4.2004 .......................................................156 XXIII. COMPANIES ASSOCIATED WITH LAMPRAKIS PRESS SA...........................................157 XXIV. INTER COMPANY TRANSACTIONS WITHIN THE GROUP.........................................252 APPENDIX..............................................................................................................................257 ∞. SUMMARY FINANCIAL DATA OF THE COMPANY SUMMARY INCOME STATEMENT(1) 2002 2003 thousand euros thousand euros Turnover 113.967,10 123.354,46 Less: Cost of Goods Sold before depreciation (2) 72.081,56 70.965,02 Gross earnings before depreciation 41.885,54 52.389,44 (% of turnover) 36,75% 42,47% Plus: Other operating revenues 1.869,66 1.595,26 Total before depreciation 43.755,19 53.984,69 (% of turnover) 38,39% 43,76% Less: General Admin. & Selling Expenses before Depreciation (2) 39.676,29 43.712,77 Operating Result before depreciation 4.078,91 10.271,92 (% of turnover) 3,58% 8,33% Plus: Net income (expenses), profit (loss) from participations, securities, forecasts for decline of participations & securities 646,65 2.268,04 Plus: Extraordinary and non-Operating Income 1.325,51 2.671,60 Profit or Loss before Interest payments, Depreciations and Taxes 6.051,07 15.211,55 Less: Interest (Credit - Debit) 798,40 638,19 Profit or Loss before Depreciation and Taxes 5.252,67 14.573,36 (% of turnover) 4,61% 11,81% Profit or Loss before Fiscal year Taxes 2.008,34 12.050,59 (% of turnover) 1,76% 9,77% Profit or Loss after Fiscal year Taxes 1.925,44 11.960,23 (% of turnover) 1,69% 9,70% Profit or Loss after current year’s taxes, Board of Directors fees and tax imposed by Tax Audit of previous years (3) (4) 1.925,44 11.960,23 (% of turnover) 1,69% 9,70% Total Dividend 0,00 0,00 Total Dividend (5) 75.300.000 75.300.000 Profit or Loss per share (5) 2002 2003 euros euros Results before Depreciation and Fiscal year Taxes 0,07 0,19 Results before Fiscal year Taxes 0,03 0,16 Results after current year’s taxes, Board of Directors Fees and tax imposed by Tax Audit of previous fiscal years (3) (4) 0,03 0,16 Dividend per share 0,00 0,00 (1) Certain amounts of the year 2002 have been adjusted in order to be comparable with the respectire amounts of the year 2003. Specifically, direct selling expenses relating to fiscal year 2003, were included in distribution expenses instead of Cost of Goods sold in order to comply with industry practice, and the respective accounts for fiscal year 2002 were adjusted accordingly. (2) To calculate Gross Results (Profit or Loss) before Depreciation and Operating Results before Depreciation, the Depreciation included in Operating Cost was deducted from the Cost of Goods Sold, the Administrative and Selling Expenses as follows: 6 SUMMARY FINANCIAL DATA ALLOCATION OF DEPRECIATION 2002 2003 thousand euros thousand euros Cost of Goods Sold 1.520,74 898,78 Administrative Expenses 935,36 791,75 Selling Expenses 788,23 832,25 a) Included in the Operating Cost 3.244,33 2.522,78 b) Not included in the Operating Cost 0,00 0,00 Grand Total 3.244,33 2.522,78 (3) There was no distribution of profits to the Board of Directors for fiscal years 2002 and 2003. (4) The Company was subjected to ordinary tax audit for all kinds of tax purposes (income, Books and Records Code, stamp duties, tax on large real estate, wage tax (FMY), tax on third party remuneration) up until the year 1999 inclusive. The charges from the ordinary tax audits until 1998 burdened the fiscal years up to 1999. No tax discrepancies were noted during the audit for year 1999, given that the book discrepancies imputed reduced tax losses for the fiscal year 1999. Consequently, the operating earnings for fiscal years 2002 and 2003 will not be burdened with allocation of taxes from tax audits. In relation to this, the Chartered Accountant noted the following on the Report for fiscal year 2003: "The Company has been audited for tax purposes up to fiscal year 1999. Consequently, the Company’s tax obligations for fiscal years from 2000 to 2003 remain inconclusive" More information is provided in Chapter "INFORMATION ON THE ANNUAL REPORT AND THE COMPANY AUDITORS’ " (5) There were no exigencies for weighting of the shares during the fiscal years of 2002 and 2003. The earnings per share have been calculated on the basis of the number of shares existing at the end of the fiscal year SUMMARY BALANCE SHEET OF LAMBRAKIS PRESS S.A. 2002 2003 thousand euros thousand euros Assets Non-depreciated Establishment Expenses 1.916,39 1.222,15 Non-depreciated Intangible Assets 80,81 70,86 Non-depreciated Tangible Assets 15.961,91 17.934,79 Participations in Subsidiaries 107.177,41 130.004,85 Other Long-term Receivables 360,66 442,86 Total Fixed Assets 123.580,79 148.453,36 Total Current Assets 87.359,75 83.159,26 Debit Items in Transit 598,78 2.975,02 Total Assets 213.455,70 235.809,78 Liabilities Total Shareholders’ Equity 172.993,52 182.266,84 Provisions 10,82 3,74 Total Short-term Liabilities 38.367,98 50.995,14 Total Liabilities 38.367,98 50.995,14 Transit Credit Balances 2.083,38 2.544,07 Total Liabilities 213.455,70 235.809,78 Book Value of Share (1) 2,30 2,42 (1) To calculate the book value of shares at the end of the fiscal year, the total equity capital was taken into account. 7 µ. FINANCIAL INDICATORS OF THE COMPANY The following table provides the development of the Company’s basic financial indices for fiscal years 2002 and 2003 FINANCIAL RATIOS PER FISCAL YEAR 2002 2003 GROWTH RATE (%) Turnover 9,02% 8,24% Fiscal year’s results before taxes 111,68% 500,03% Fiscal year’s results after taxes and Board of Directors fees 111,16% 521,17% Tangible assets (in acquisition value) -1,34% 8,39% Total Assets -3,31% 10,47% PROFITABILITY RATIOS (%) Gross results before depreciation 36,75% 42,47% Fiscal year’s results before taxes 1,76% 9,77% Fiscal year’s Results After Taxes and Board of Directors fees 1,69% 9,70% PERFORMANCE RATIOS (before taxes) (%) Return On Average Equity Capital 1,13% 6,78% Return On Average of Total Employed Capital 0,93% 5,36% TURNOVER RATIOS (days) Claims (1) 160,28 147,14 Suppliers (2) 111,18 76,03 Inventories 37,09 26,53 DEBT TO EQUITY RATIOS (:1) Borrowed Capital / Equity Capital 0,23 0,29 Bank Liabilities / Equity Capital 0,07 0,11 LIQUIDITY RATIOS (:1) General Liquidity 2,28 1,63 Immediate Liquidity 2,09 1,53 Cash Flow / Financial Expenses 3,12 25,05 Cash Flow / Total Fiscal Year’s Taxes 31,35 179,39 FINANCIAL BURDEN RATIOS (%) Financial Charges / Gross Result before Depreciation 1,99% 1,24% Financial