Annual Financial Report According to article 4 of L. 3556/2007 for the financial year from January 1st, 2017 to December 31st, 2017 (amounts in € thousand unless otherwise mentioned) MARFIN INVESTMENT GROUP HOLDINGS S.A. 67, Thisseos Avenue, 146 71 Kifissia, Greece Tel. +30 210 6893450 General Commercial Reg. Nr. 3467301000 (Societe Anonyme Reg. Nr. 16836/06/Β/88/06) ANNUAL REPORT 2017 [THIS PAGE HAS DELIBERATELY BEEN LEFT BLANK] MARFIN INVESTMENT GROUP HOLDING S.A., 67 Thiseos Ave, 146 71 Kifissia, Greece Page 2 ANNUAL REPORT 2017 TABLE OF CONTENTS A. REPRESENTATIONS OF THE MEMBERS OF THE BOARD OF DIRECTORS ............................................... 6 Β. INDEPENDENT AUDITOR’S REPORT.............................................................................................................. 7 C. MANAGEMENT REPORT OF THE BOARD OF DIRECTORS OF “MARFIN INVESTMENT GROUP S.A.” ON THE CONSOLIDATED AND CORPORATE FINANCIAL STATEMENTS FOR THE YEAR 2017 ................ 13 D. ANNUAL SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED AS AT 31ST OF DECEMBER 2017 ........................................................................................................... 95 CONSOLIDATED INCOME STATEMENT FOR THE FINANCIAL YEAR 2017 ................................................. 96 SEPARATE INCOME STATEMENT FOR THE FINANCIAL YEAR 2017 ........................................................... 97 CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR 2017 ............................................................................................................................................................ 98 STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31st 2017 ........................................................... 99 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2017 ................... 100 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2016 ................... 101 SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2017 ............................ 102 SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2016 ............................ 102 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR 2017 (CONSOLIDATED AND SEPARATE) . 103 1 GENERAL INFORMATION ON THE GROUP ........................................................................................... 105 2 GROUP STRUCTURE AND ACTIVITIES .................................................................................................. 106 3 BASIS OF FINANCIAL STATEMENTS PRESENTATION ......................................................................... 115 4 SUMMARY OF SINGIFICANT ACCOUNTING POLICIES ....................................................................... 124 5 SIGNIFICANT ACCOUNTING ESTIMATES AND MANAGEMENT ASSESSMENT ................................. 146 6 BUSINESS COMBINATIONS AND ACQUISITIONS OF NON-CONTROLLING INTERESTS .................. 150 7 DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS ........... 153 8 OPERATING SEGMENTS .......................................................................................................................... 157 9 PROPERTY, PLANT AND EQUIPMENT .................................................................................................... 160 10 GOODWILL ................................................................................................................................................ 162 11 INTANGIBLE ASSETS ................................................................................................................................ 166 12 INVESTMENTS IN SUBSIDIARIES ........................................................................................................... 167 13 INVESTMENTS IN ASSOCIATES .............................................................................................................. 169 14 INVESTMENT PORTFOLIO ...................................................................................................................... 171 15 INVESTMENT PROPERTY ........................................................................................................................ 171 16 OTHER NON-CURRENT ASSETS .............................................................................................................. 172 17 DEFERRED TAX RECEIVABLES AND LIABILITIES .............................................................................. 172 18 INVENTORIES ............................................................................................................................................ 173 19 TRADE AND OTHER RECEIVABLES ....................................................................................................... 174 20 OTHER CURRENT ASSETS ....................................................................................................................... 175 21 TRADING PORTFOLIO AND OTHER FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT & LOSS ......................................................................................................................................... 176 22 CASH, CASH EQUIVALENTS AND RESTRICTED CASH ........................................................................ 176 23 SHARE CAPITAL AND SHARE PREMIUM ............................................................................................... 177 24 OTHER RESERVES AND FAIR VALUE RESERVES ................................................................................. 177 25 EMPLOYEE RETIREMENT BENEFITS .................................................................................................... 178 26 GRANTS ...................................................................................................................................................... 181 27 BORROWINGS ........................................................................................................................................... 181 28 CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES............................................................... 187 29 FINANCIAL DERIVATIVES ....................................................................................................................... 187 30 PROVISIONS .............................................................................................................................................. 188 MARFIN INVESTMENT GROUP HOLDING S.A., 67 Thiseos Ave, 146 71 Kifissia, Greece Page 3 ANNUAL REPORT 2017 31 OTHER LONG-TERM LIABILITIES ......................................................................................................... 188 32 SUPPLIERS AND OTHER LIABILITIES ................................................................................................... 189 33 TAX PAYABLE ........................................................................................................................................... 189 34 OTHER SHORT-TERM LIABILITIES ....................................................................................................... 189 35 SALES ......................................................................................................................................................... 190 36 COST OF SALES – ADMINISTRATIVE – DISTRIBUTION EXPENSES ................................................... 190 37 OTHER OPERATING INCOME ................................................................................................................. 191 38 OTHER OPERATING EXPENSES .............................................................................................................. 191 39 OTHER FINANCIAL RESULTS ................................................................................................................. 192 40 FINANCIAL EXPENSES ............................................................................................................................. 193 41 FINANCIAL INCOME ................................................................................................................................ 193 42 PROFIT/(LOSS) FROM ASSOCIATES CONSOLIDATED UNDER THE EQUITY METHOD ................... 194 43 INCOME TAX ............................................................................................................................................. 194 44 MANAGEMENT REMUNERATION ........................................................................................................... 195 45 EARNINGS PER SHARE ............................................................................................................................. 195 46 ANALYSIS OF TAX EFFECTS ON OTHER COMPREHENSIVE INCOME............................................... 196 47 RELATED PARTY TRANSACTIONS ......................................................................................................... 197 48 CONTINGENT LIABILITIES ..................................................................................................................... 199 49 FAIR VALUE OF FINANCIAL INSTRUMENTS ........................................................................................ 207 50 RISK MANAGEMENT POLICIES .............................................................................................................. 209 51 STATEMENT OF FINANCIAL POSITION POST REPORTING DATE EVENTS ...................................... 215 52 APPROVAL OF FINANCIAL STATEMENTS ............................................................................................