Annual Financial Report

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Annual Financial Report [translation from the Greek original] ANNUAL FINANCIAL REPORT (01.01.2018 – 31.12.2018) September 2019 HELLENIC CORPORATION OF ASSETS AND PARTICIPATIONS S.A. Annual Consolidated and Separate Financial Statements for the third fiscal period 01.01.2018- 31.12.2018 in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. It is declared that the attached Annual Financial Statements have been approved by the Board of Directors of “Hellenic Corporation of Assets and Participations S.A.” on 23.09.2019 and will be available on the internet after the approval of the General Assembly of the Company, at the web site address www.hcap.gr. The annual consolidated and separate financial statements for the fiscal period 01.01.2018-31.12.2018, which can be found at pages 128-220, were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, truly represent assets, liabilities, equity and the statement of income of the Hellenic Corporation of Assets and Participations S.A., as well as of the companies included in the consolidation considered as a whole. The Chairman The Chief Executive Officer and The Executive Director of the Board of Directors Member of the Board of Directors Member of the Board of Directors George Diamantopoulos Ourania Ekaterinari Stefanos Giourelis ID No. Μ299970 ID No. Τ222068 ID No. ΑΚ142391 The responsibles for the preparation of the Financial Statements in The Chief Financial Officer compliance with IFRS Charalambos Pilitsidis Maria Trakadi Konstantinos Motsakos ECG License Class A' No. 33983 ECG License Class A' No. 27913 ECG License Class A' No. 105030 Deloitte Business Process Solutions S.A. License number Ο.Ε.Ε 1297 ANNUAL FINANCIAL REPORT (01.01.2018-31.12.2018) i HELLENIC CORPORATION OF ASSETS AND PARTICIPATIONS S.A. Thessaloniki International Fair ANNUAL FINANCIAL REPORT (01.01.2018-31.12.2018) ii HELLENIC CORPORATION OF ASSETS AND PARTICIPATIONS S.A. TABLE OF CONTENTS HCAP BoD Chairman Message .................................................................................................................................... viii HCAP CEO Message ...................................................................................................................................................... ix Α | ANNUAL REPORT OF THE BOARD OF DIRECTORS ..................................................................................................... 1 Α.1. Purpose and Legal Framework of the Corporation ....................................................................................................... 1 Α.2. Direct Subsidiaries of the Corporation .......................................................................................................................... 3 Α.3. Other Subsidiaries of the Corporation ........................................................................................................................... 5 Α.4. Other Participations and Rights ..................................................................................................................................... 8 Α.5. The contribution of HCAP to development ................................................................................................................... 8 Α.6. Main Corporate Bodies of the Corporation ................................................................................................................... 9 Α.7. Organization chart ....................................................................................................................................................... 11 Α.8. Corporation’s Share Capital ......................................................................................................................................... 12 Α.9. Internal Audit ............................................................................................................................................................... 12 Α.10. External auditor ......................................................................................................................................................... 12 Α.11. Cash Resources – Single Treasury Account................................................................................................................ 13 Α.12. Rules of Procedure, Corporate Governance Framework and Reporting Framework................................................ 13 Α.13. Company’s and Group’s actual results and actions for the year 01.01.2018-31.12.2018 along with subsequent events. ................................................................................................................................................................................ 15 Α.13.1 Condensed Separate and Consolidated Financial Information ............................................................................... 15 Α.13.2 Important activities of the Corporation for the year ended on 31.12.2018 and subsequent events ..................... 22 Α.13.3 Events and activities of the Corporation ................................................................................................................. 26 Α.13.3.i Corporate Governance ............................................................................................................................ 27 Α.13.3.ii Compliance ............................................................................................................................................. 27 A.13.3.iii Assessment of Boards of Directors and upgrading of the role of the Audit Committees of direct and other subsidiaries of HCAP ................................................................................................................................... 29 Α.13.3.iv Strategic and Business Plan and Establishment of Key Performance Indicators (KPIs) ......................... 32 Α.13.3.v Coordination Mechanism ....................................................................................................................... 37 A.13.3.vi Technology, Digital Transformation and Synergies ............................................................................... 38 A.13.3.vii Investment Plans– Alternative Financing Sources & Financing Instruments........................................ 41 Α.13.4 Actual Results and Activities of the Group’s subsidiaries for the year ended on 31.12.2018 ................................. 44 Α.14. Prospects for year 2019 ............................................................................................................................................. 83 Α.15. Risks and uncertainties .............................................................................................................................................. 85 Α.16. Transactions with related parties .............................................................................................................................. 92 Α.17. Corporate Governance Declaration ........................................................................................................................... 93 Α.18. Other Issues ............................................................................................................................................................. 121 Β | INDEPENDENT AUDITOR’S REPORT ...................................................................................................................... 124 C | CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS ................................................................................... 128 Consolidated and Separate Statement of Financial Position as at 31.12.2018 .............................................................. 128 Consolidated and Separate Income Statement for the year 2018 ................................................................................. 129 Consolidated and Separate Statement of Comprehensive Income for the year 2018 .................................................. 130 ANNUAL FINANCIAL REPORT (01.01.2018-31.12.2018) iii HELLENIC CORPORATION OF ASSETS AND PARTICIPATIONS S.A. Consolidated Statement of Changes in Equity for the year ended 31.12.2018 ............................................................. 131 Separate Statement of Changes in Equity for the year ended 31.12.2018 .................................................................... 132 Consolidated and Separate Statement of Cash Flows .................................................................................................... 133 Notes to the financial statements .................................................................................................................................... 135 1. General information ................................................................................................................................................. 135 2. Summary of significant accounting policies ............................................................................................................. 136 2.1 Basis of preparation .................................................................................................................................................... 136 2.2 New standards, amendments to standards and interpretations ................................................................................ 136 2.3 Consolidation .............................................................................................................................................................
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