Annual Financial Report According to article 4 of L. 3556/2007 for the financial year from January 1st, 2016 to December 31st, 2016 (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 2016 [THIS PAGE HAS DELIBERATELY BEEN LEFT BLANK] MARFIN INVESTMENT GROUP HOLDING S.A., 67 Thiseos Ave, 146 71 Kifissia, Greece 2 ANNUAL REPORT 2016 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 2016 .................. 9 D. ANNUAL SEPARATE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 ................................................................................................................................ 51 CONSOLIDATED INCOME STATEMENT FOR THE FINANCIAL YEAR 2016 ................................................. 52 SEPARATE INCOME STATEMENT FOR THE FINANCIAL YEAR 2016 ........................................................... 53 CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR 2016 ............................................................................................................................................................ 54 STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31st 2016 ........................................................... 55 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2016 ..................... 56 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2015 ..................... 57 SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2016 .............................. 58 SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR 2015 .............................. 58 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR 2016 (CONSOLIDATED AND SEPARATE) ... 59 1 GENERAL INFORMATION ON THE GROUP ............................................................................................. 61 2 GROUP STRUCTURE AND ACTIVITIES .................................................................................................... 62 3 BASIS OF FINANCIAL STATEMENTS PRESENTATION ........................................................................... 73 4 SUMMARY OF IMPORTANT ACCOUNTING POLICIES ........................................................................... 79 5 SIGNIFICANT ACCOUNTING ESTIMATES AND MANAGEMENT ASSESSMENT ................................. 101 6 BUSINESS COMBINATIONS AND ACQUISITIONS OF NON-CONTROLLING INTERESTS .................. 105 7. DISCONTINUED OPERATIONS ................................................................................................................ 108 8. OPERATING SEGMENTS .......................................................................................................................... 109 9. PROPERTY, PLANT AND EQUIPMENT .................................................................................................... 112 10. GOODWILL ................................................................................................................................................ 114 11. INTANGIBLE ASSETS ................................................................................................................................ 118 12. INVESTMENTS IN SUBSIDIARIES ........................................................................................................... 119 13. INVESTMENTS IN ASSOCIATES .............................................................................................................. 121 14. INVESTMENT PORTFOLIO ...................................................................................................................... 123 15. INVESTMENT PROPERTY ........................................................................................................................ 124 16. OTHER NON-CURRENT ASSETS .............................................................................................................. 124 17. DEFERRED TAX RECEIVABLES AND LIABILITIES .............................................................................. 125 18. INVENTORIES ............................................................................................................................................ 126 19. TRADE AND OTHER RECEIVABLES ....................................................................................................... 126 20. OTHER CURRENT ASSETS ....................................................................................................................... 128 21. TRADING PORTFOLIO AND OTHER FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT & LOSS ................................................................................................................................................. 129 22. CASH, CASH EQUIVALENTS AND RESTRICTED CASH ........................................................................ 129 23. SHARE CAPITAL AND SHARE PREMIUM ............................................................................................... 130 24. OTHER RESERVES AND FAIR VALUE RESERVES ................................................................................. 130 25. EMPLOYEE RETIREMENT BENEFITS .................................................................................................... 132 26. GRANTS ...................................................................................................................................................... 135 27. BORROWINGS ........................................................................................................................................... 135 28. FINANCIAL DERIVATIVES ....................................................................................................................... 140 29. PROVISIONS .............................................................................................................................................. 140 30. OTHER LONG-TERM LIABILITIES ......................................................................................................... 141 MARFIN INVESTMENT GROUP HOLDING S.A., 67 Thiseos Ave, 146 71 Kifissia, Greece 3 ANNUAL REPORT 2016 31. SUPPLIERS AND OTHER LIABILITIES ................................................................................................... 141 32. TAX PAYABLE ........................................................................................................................................... 142 33. OTHER SHORT-TERM LIABILITIES ....................................................................................................... 142 34. SALES ......................................................................................................................................................... 142 35. COST OF SALES – ADMINISTRATIVE – DISTRIBUTION EXPENSES ................................................... 143 36. OTHER OPERATING INCOME ................................................................................................................. 144 37. OTHER OPERATING EXPENSES .............................................................................................................. 144 38. OTHER FINANCIAL RESULTS ................................................................................................................. 145 39. FINANCIAL EXPENSES ............................................................................................................................. 146 40. FINANCIAL INCOME ................................................................................................................................ 146 41. PROFIT/(LOSS) FROM ASSOCIATES CONSOLIDATED UNDER THE EQUITY METHOD ................... 146 42. INCOME TAX ............................................................................................................................................. 147 43. STAFF COSTS ............................................................................................................................................. 148 44. MANAGEMENT REMUNERATION ........................................................................................................... 148 45. EARNINGS PER SHARE ............................................................................................................................. 149 46. ANALYSIS OF TAX EFFECTS ON OTHER COMPREHENSIVE INCOME............................................... 150 47. RELATED PARTY TRANSACTIONS ......................................................................................................... 150 48. CONTINGENT LIABILITIES ..................................................................................................................... 152 49. FAIR VALUE OF FINANCIAL INSTRUMENTS ........................................................................................ 160 50. RISK MANAGEMENT POLICIES .............................................................................................................. 162 51. STATEMENT OF FINANCIAL POSITION POST REPORTING