$118$/ 5(3257 $1'),1$1&,$/...STELIOS S. ANASTASIADES Chief Executive Officer: ANTONIOSA. ANTONIOU...

Offices, Factory and Port, VassilikoΤ: +357 24 845 555, F: +357 24 332 651

Registered office and Postal Address1Α Kyriakos Matsis Avenue P.O.Box 22281 CY-1519 Nicosia - Cyprus

Τ: +357 22 458 100, F: +357 22 762 741E: [email protected], [email protected]

An

nu

al R

ep

ort a

nd

Fin

an

cia

l Sta

tem

en

ts 2

018

ANNUALREPORTANDFINANCIALSTATEMENTS

ANNUAL REPORT AND FINANCIAL STATEMENTS 2018

Annual Report & Financial Statements '18 v

NOTICE OF ANNUAL GENERAL MEETING

ANNUAL REPORT AND FINANCIAL STATEMENTS

Officers,professionaladvisorsandbankers

StatementoftheMembersoftheBoardofDirectors

Managementreport

Corporategovernancereport

Remunerationreport Directors'CurriculaVitae

Independentauditors'report

Consolidatedstatementofprofitorlossandothercomprehensiveincome Companystatementofprofitorlossandothercomprehensiveincome

Consolidatedstatementoffinancialposition

Companystatementoffinancialposition

Consolidatedstatementofchangesinequity

Companystatementofchangesinequity Consolidatedstatementofcashflows Companystatementofcashflows

NOTES TO THE FINANCIAL STATEMENTS

CONTENTS

6

10

11

12

17

23 25

30

36 37

38

39

40

41 42 43

44

Annual Report & Financial Statements '186

The53rdAnnualGeneralMeetingoftheshareholdersofVassilikoCementWorksPublicCompanyLtdwillbeheldatParklaneResort&Spa,inLimassol,on30May2019at5:00p.m.totransactthefollowingbusiness:

1. ConsidertheManagementreportoftheBoardofDirectorsfortheyear2018.2. Receive,considerandapprovetheannualfinancialstatementsandthereportoftheauditorsfortheyear

2018.3. Approveadividendpaymentof€0,12persharefortheyear2018.4. ElectnewDirectorsintheplaceofthosewhoretire.5. Approvetheremunerationreport.6. FixtheremunerationoftheDirectorsfortheyear2019.7. Re-appointKPMGLimitedastheauditorsoftheCompanyandfixtheirremunerationfortheyear2019.8. Transactanyotherbusinesswhich, inaccordancewith theCompany’sArticlesofAssociation, canbe

presentedattheAnnualGeneralMeeting. ByorderoftheBoard M. MAVRIDOU Secretary 11 April 2019

NOTICE OF ANNUAL GENERAL MEETING

Annual Report & Financial Statements '18 7

NOTES TO THE NOTICE OF THE ANNUAL GENERAL MEETING

ENTITLEMENT TO PARTICIPATE IN THE ANNUAL GENERAL MEETING

1. AnypersonappearingasashareholderintheRegisterofMembersoftheCompanyontherecorddateisentitledtoparticipateintheAnnualGeneralMeeting.Eachordinaryshareisentitledtoonevote.TherecorddatefordeterminingtherighttovoteattheAnnualGeneralMeetingis28May2019.Transactionswhichwillbetakingplaceon27May2019andthereafterwillnotbeconsideredindeterminingtherighttovoteattheAnnualGeneralMeeting.

2. AmemberentitledtoattendandvoteattheAnnualGeneralMeetingisentitledtoappointaproxytoattendandvoteonhisbehalf.Shareholdersmayappointanypersonastheirproxy.SuchproxyneednotbeamemberoftheCompany.Shareholderswhoappointaproxytovoteontheirbehalf,butwishtospecifyhowtheirvoteswillbecast,shouldticktherelevantboxesontheFormofProxy.

3. Theinstrumentappointingaproxy,whichwillbeavailableonthewebsiteoftheCompanywww.vassiliko.com

(underInvestorsRelations),mustbedepositedattheRegisteredOfficesoftheCompany(1A,KyriakosMatsisAvenue,4thFloor,CY-1082Nicosia,Cyprus,fax+35722762741)24hourspriortothecommencementofthebusinessoftheAnnualGeneralMeeting.

4. Ifsuchappointorisacompany,theFormofProxymustbearthenameofthecompany,andbesignedbyits

dulyauthorisedofficer/s.Inthecaseofjointshareholders,theFormofProxycanonlybesignedbythepersonwhosenameappearsfirstintheRegisterofMembers.ShareholdersshouldconfirmthattheformofproxyhasbeensuccessfullyreceivedbytheCompanybycalling+35722458100.

5. Shareholdersand/or theirproxieswhowillattendtheAnnualGeneralMeetingarerequestedtocarrywiththemtheiridentitycard,orotherproofofidentification.

6. Anycorporation,whichisashareholderoftheCompany,maybyresolutionofitsDirectorsorothergoverningbody,authorisesuchperson,asitthinksfittoactasitsrepresentativeatanymeetingoftheCompany,andthepersonsoauthorisedshallbeentitledtoexercisethesamepowersonbehalfofthecorporationwhichhe/sherepresents,asthatcorporationcouldexercise,ifitwereanindividualmemberoftheCompany.

VOTING PROCEDURES AT THE ANNUAL GENERAL MEETING

7. AttheAnnualGeneralMeetingaresolutionputtothevoteofthemeetingshallbedecidedonashowofhandsunlessapollis(beforeoronthedeclarationoftheresultoftheshowofhands)demanded:a. bytheChairman,orb. byatleastthreememberspresentinpersonorbyproxy,orc. byanymemberormemberspresentinpersonorbyproxyandrepresentingnotlessthanone-tenthofthe

totalvotingrightsofallthemembershavingtherighttovoteatthemeeting.d. byamemberormembersholdingsharesintheCompanyconferringarighttovoteatthemeetingbeing

sharesonwhichanaggregatesumhasbeenpaidupequaltonotlessthanone-tenthofthetotalsumpaiduponallthesharesconferringthatright.


NOTES TO THE NOTICE OF THE ANNUAL GENERAL MEETING (continued)

8. Ifapollisdemandedinthemanneraforesaid,itshallbetakeninsuchamanner,astheChairmanshalldirect,andtheresultofthepollshallbedeemedtobetheresolutionofthemeetingatwhichthepollwasdemanded.Thedemandforapollmaybewithdrawn.

SHAREHOLDERS RIGHTS AT THE ANNUAL GENERAL MEETING

9. Pursuanttoarticle127BofCompaniesLawCap113,shareholdersoftheCompanyhavetherighttoputanitemontheagendaoftheAnnualGeneralMeeting,providedthattheitemisaccompaniedbyawrittenexplanationjustifyingtheinclusionoftheitemortheproposedresolutionforapprovalattheAnnualGeneralMeetingprovidedthat:a. theshareholderorgroupofshareholdersholdatleast5%oftheissuedsharecapitaloftheCompany,

representingatleast5%ofthevotingrightsofshareholdersentitledtovoteatthemeetingforwhichanitemhasbeenaddedontheagenda,and

b. theshareholders’requesttoputanitemontheagendaorresolution(asdescribedabove)isreceivedbytheCompany’sSecretaryinhardcopyorelectronicallyattheaddressesindicatedbelowatleast42dayspriortotheAnnualGeneralMeeting.

VassilikoCementWorksPublicCompanyLimited1A,KyriakosMatsisAvenue,4thFloor,CY-1082Nicosia,[email protected]

10.Pursuanttoarticle128CoftheCompaniesLawCap113,shareholdershavearighttoaskquestionsrelated

to itemsontheagendaandtohavesuchquestionsansweredbytheBoardofDirectorsof theCompanysubjecttoanyreasonablemeasurestheCompanymaytaketoensuretheidentificationofshareholders.

OTHER INFORMATION AND AVAILABLE DOCUMENTS

11.Asat11April2019,theissuedsharecapitaloftheCompanyis€30.932.457dividedinto71.935.947ordinarysharesofnominalvalue€0,43each.

12.TheAnnualReport andFinancial Statements of theCompany for 2018 (incorporating theNotice to andtheAgenda of theAnnual General Meeting, Explanatory Notes on theAgenda Items, theManagementReport,theCorporateGovernanceReport,theRemunerationReport,theAuditors’ReportandtheFinancialStatements),andtheFormofProxyshallbemadeavailableinelectronicformonthewebsiteoftheCompanywww.vassiliko.com(InvestorRelations)andinhardcopyattheCompany’sRegisteredOffices,1AKyriakosMatsisAvenue,4thFloor,1082Nicosia.


NOTES TO THE NOTICE OF THE ANNUAL GENERAL MEETING (continued)

EXPLANATORY NOTESTheformalNoticeofthe2019AnnualGeneralMeetingissetoutonpage6.TheNoticeaskstheshareholdersofVassilikoCementWorksPublicCompanyLtdtoapproveanumberofitemsofbusiness.Foryourinformation,theexplanatorynotesbelowsummarisethepurposeofeachResolutiontobevotedonbyVassilikoCementWorksshareholdersatthisyear’sAnnualGeneralMeeting.

RESOLUTION 1: TO CONSIDER THE MANANGEMENT REPORT TheChairmanwillpresenttheManagementReportfortheyear2018tothemeeting.

RESOLUTION 2: TO RECEIVE, CONSIDER AND APPROVE THE ANNUAL FINANCIAL STATEMENTS AND THE REPORT OF THE AUDITORSTheChairmanwillpresenttheAnnualFinancialStatementsandKPMGLimitedwillpresenttheirAuditReportfortheyearended31December2018tothemeeting.

RESOLUTION 3: APPROVE A DIVIDEND PAYMENT FOR THE YEAR 2018TheDirectorsproposed thepaymentofadividend for2018,of€0,12 perOrdinaryShare. Ifapprovedat theAnnualGeneralMeeting,thedividendwillbepaidtotheentitledshareholdersregisteredasat12June2019(recorddate).TheshareoftheCompanywillbetradedex-dividendasof11June2019.Paymentofthedividendwillbemade(effected)tillthe9July2019.

RESOLUTION 4: RE-ELECTION OF DIRECTORSIn accordancewith thearticlesof associationMessrsGeorgeSt.Galatariotis,CharalambosPanayiotouandChristopheAllouchery,aretheDirectorswhowillretirebyrotationthisyearandofferthemselvesforre-electioninaccordancewiththeCompany’sArticlesofAssociation.

BriefdetailsofallDirectorsappearonpages25to29oftheAnnualReport.

RESOLUTION 5: APPROVE THE REMUNERATION REPORTTheShareholdersareaskedtoapprovetheremunerationreportthatappearsonpages23to24.

RESOLUTION 6: TO FIX THE REMUNERATION OF THE DIRECTORSTheShareholdersareaskedtoapprovetheremunerationoftheDirectorsfortheyear2019toremainthesameasforthepreviousyear,i.e.:€25.000fortheChairman€20.000foreachoftheDirectors€300attendancefeepermeetingheld

RESOLUTION 7: APPOINTMENT OF AUDITORSThisresolutionrelatestothere-appointmentofKPMGLimitedastheCompany’sauditorstoholdofficeuntilthenextAnnualGeneralMeetingoftheCompany,andtoauthorisetheDirectorstosettheirremuneration.


OFFICERS, PROFESSIONAL ADVISORS AND BANKERS

Directors: ANTONIOSA.ANTONIOU(ExecutiveChairman) GEORGEST.GALATARIOTIS COSTASST.GALATARIOTIS STAVROSG.GALATARIOTIS COSTASKOUTSOS CHARALAMBOSPANAYIOTOU MAURIZIO MANSI MONTENEGRO ANTONISMIKELLIDES CHRISTOPHEALLOUCHERY ANTONIOSKATSIFOS STELIOSS.ANASTASIADES Chief Executive Officer: ANTONIOSA.ANTONIOU Chief Financial Officer: GEORGES.SAVVASecretary: MARIAMAVRIDOU Independent Auditors: KPMGLIMITED 14,ESPERIDONSTREET 1087 NICOSIA CYPRUS

Legal Advisοrs: TASSOSPAPADOPOULOS&ASSOCIATES CHRYSSESDEMETRIADES&CO.LLC L.PAPAPHILIPPOU&COLLC LEONIDASG.GEORGIOU CHRISTYS&COLLC Bankers: ALPHABANKLTD BANKOFCYPRUSPUBLICCOMPANYLTD EUROBANKEFGCYPRUSLTD HELLENICBANKPUBLICCOMPANYLTD NATIONALBANKOFGREECE(CYPRUS)LTD NATIONALBANKOFGREECESA UBSSWITZERLANDAG Registered office: 1A,KYRIAKOSMATSISAVENUE CY-1082NICOSIA CYPRUS

Registered number: 1210

Internet website: www.vassiliko.com


MANAGEMENT REPORT

TheBoardofDirectorsofVassilikoCementWorksPublicCompanyLtd(the'Company')presentstothemembersitsmanagementreporttogetherwiththeauditedfinancialstatementsfortheyearended31December2018. FINANCIAL STATEMENTS Theconsolidatedfinancialstatementsfortheyear2018includetheresultsoftheholdingcompany,itssubsidiariesandassociatecompanies. PRINCIPAL ACTIVITIES TheGroup'sprincipalactivitiesaretheproductionofclinkerandcement,whicharedistributedinthelocalandoverseasmarkets.TheGroupalsohasapresenceinaggregatesquarryingthroughitsassociatedcompanies. REVIEW OF DEVELOPMENTS, POSITION AND PERFORMANCE OF THE OPERATIONS Therevenuefor2018reached€97.926.000comparedto€102.467.000for2017,showingadecreaseof4,4%. Year2018 resultswereaffectedbyhigherenergyandcarbonemissioncostswithan impactongrossprofitmargin.Electricitycosthadthemostnoticableimpact.Thecostofsolidfuelsalsoincreasedbuttheirimpactwasmoderatedthroughtheuseofalternativefuels.TheCompanyispursuingfurtheritsstrategytoreplacetraditionalsolidfosilfuelswithalternativesources,whichofferbothfinancialandenviromentalbenefitstotheCompany. FINANCIAL RESULTS TheresultsoftheGrouparepresentedintheconsolidatedstatementofprofitorlossandothercomprehensiveincome.Theprofitaftertaxationfortheyearended31December2018amountedto€15.722.000comparedto€19.873.000in2017. DIVIDENDS On4October2018,theBoardofDirectorsapprovedthepaymentofaninterimdividendof3centspershareof€2.158.078. Onthesamedate,theExtraordinaryGeneralMeetingapprovedthepaymentofadividendof6,5centspershareof€4.675.837outoftheprofitsofyear2016.

TheBoardofDirectorsrecommendsthepaymentofanadditionaldividendof€8.632.314or€0,12pershare.Thetotaldividendtobepaidincludingtheinterimdividendabovewillbe€10.790.392or€0,15pershare.Therespectivedividendspaidforthepreviousyearwere€17.264.628or€0,24pershare.

MAIN RISKS AND UNCERTAINTIES Statementsmadeinthisreportthatarenothistoricalfacts,includingtheexpectationsforfuturevolumeandpricingtrends,demandfortheproducts,energycostsandothermarketdevelopmentsareforwardlookingstatements.Thesestatementsarenotguaranteesoffutureperformanceandinvolverisks,uncertaintiesandassumptions("Factors"),whicharedifficulttopredict.


MANAGEMENT REPORT (continued)

SomeoftheFactorsthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedintheforward-lookingstatementsinclude,butarenotlimitedto:thecyclicalnatureoftheCompany'sbusiness;nationalandregionaleconomicconditions;currencyfluctuations;energyprices;emissionrightspricefluctuation;seasonalnatureoftheCompany’soperations;levelsofconstructionspendingand,inparticular,inGovernmentinfrastructureprojectsannounced;supply/demandstructureoftheindustry;competitionfromneworexistingcompetitors;unfavourableweatherconditionsduringpeakconstructionperiods;changesinandimplementationofenvironmentalandothergovernmentalregulations.Ingeneral,theCompanyissubjecttotherisksanduncertaintiesoftheconstructionindustry.Theforward-lookingstatementsaremadeasofthisdateandtheCompanyundertakesnoobligationtoupdatethem,whetherasaresultofnewinformation,futureeventsorotherwise. Further information for risksanduncertainties towhich theGroup isexposed, isdisclosed innote36of thefinancialstatements. FUTURE DEVELOPMENTS Thecementindustryisfacingnewchallengeswithoversupplyofcementandhighcostofcarbonandemissionrightswhichhasincreasedfivetimesinaperiodoftwoyears.

PHOTOVOLTAIC PARK TheCompanyisproceedingwithanewinvestmentinrenewableenergy.Thisrelatestoaphotovoltaicparkwithacapacityof8MWthatisexpectedtobeinoperationthefirstquarterof2020,atacostof€6,7million.Theproducedenergywillcover8%to10%ofcurrentelectricityrequirementsandwillreducecarbondioxideemissions.

TheCompanyhasalsobeenworkinghardonreducingcarbonemissionsatitskilnbyreplacingtraditionalfossilfuelswithtreatedstreamsofwaste,currentlyachievingarateofreplacementof45%in2018. EVENTS AFTER THE REPORTING PERIOD Noimportanteventshaveoccuredafterthereportingperiod(seenote39ofthefinancialstatements). SHARE CAPITAL TheissuedsharecapitaloftheCompanycomprises71.935.947ordinarysharesof€0,43pershare.TherewerenochangestothesharecapitaloftheCompanyduring2018.TheCompany’ssharesarelistedontheCyprusStockExchange.

TherearenorestrictionsonthetransferoftheCompany’ssharesotherthantherequirementsoftheDirectiveonInsiderDealingandMarketManipulation,whichrelatestotransactionswithrelatedparties.

TheCompanydoesnothaveanysharesinissuewhichcarryspecialcontrolrights.



AGREEMENTS WHICH ARE EFFECTIVE UPON A CHANGE OF CONTROL OF THE COMPANY TheCompanyhasnotcontractedanyagreementwhichbecomeseffective,isamendedorceasestoapplyincaseofchangeofcontrol followingapublic tenderoffer to theCompany’sshareholdersor theproposalofaresolutiontothegeneralmeetingoftheCompanyforamerger,acquisitionorsaleofitsoperations.

TherearenoagreementswiththeExecutiveDirectorsoremployeesoftheCompanyprovidingforcompensationincaseofresignationordismissalwithoutavalidreasonorforterminationoftheiremploymentduetoapublictenderoffer for theacquisitionof thesharesof theCompany. Incaseof terminationby theCompanyof theemploymentofExecutiveDirectorsoremployees,priortotheirretirement,theCompanyhastocompensatethemaccordingtotheprovisionsoftheLawandtheCompany’sagreementswiththeTradeUnions. DIRECTORS’ INTEREST IN THE SHARE CAPITAL OF THE COMPANY ThebeneficialinterestintheCompany’ssharesheldbymembersoftheBoardofDirectors,directlyorindirectly,at31December2018and6April2019,issetoutinnote32oftheFinancialStatements. BRANCHESDuringtheyear,theGroupdidnotoperateanybranches. BOARD OF DIRECTORS Themembersof theBoardofDirectorsonthedateof thereportappearonpage10.InaccordancewiththeCompany’sArticlesofAssociation(Article92),atthenextAnnualGeneralMeeting,MessrsGeorgeSt.Galatariotis(Non-Executive Director), Charalambos Panayiotou (non-Executive Director) and Christophe Allouchery(Non-ExecutiveDirector)retirefromofficebyrotationand,beingeligible,offerthemselvesforre-election. TheDirectorswhoservedduringtheperiodfrom31May2018,thedateofthelastAnnualGeneralMeeting,tillthisdatewerethefollowing:

AntoniosA.Antoniou GeorgeSt.Galatariotis CostasSt.Galatariotis StavrosG.Galatariotis CostasKoutsos CharalambosPanayiotou MaurizioMansiMontenegro AntonisMikellides ChristopheAllouchery AntoniosKatsifos SteliosS.Anastasiades

The responsibilities of the Directors as members of the Board Committees are disclosed in the CorporateGovernanceReport. TherewerenomaterialchangestothecompensationoftheBoardofDirectors.



CORPORATE GOVERNANCE STATEMENT TheCompany recognises the importanceof implementing corporate governanceprinciples andadopted theCSE’s Corporate Governance Code and applies its principles. The CSE’s Corporate Governance Code isavailableontheCSEwebsite(www.cse.com.cy).

TheCompanyhasadoptedthe4thRevisedEditionoftheCorporateGovernanceCode,issuedbytheCyprusStockExchangeinApril2014.AtthedateofthisreporttheprinciplesoftheCorporateGovernanceCodearepartlyimplemented,giventhatthePrincipleregardingBoardBalanceandtheProvisionB.1.2oftheCorporateGovernanceCoderegardingtheindependencecriteriaofthemembersoftheRemunerationsCommitteewerenotfullymet.OnJanuary2019theCompanyadoptedthe5thRevisedEditionoftheCorporateGovernanceCodewhichisapplicablefortheCorporateGovernanceReportfortheyearending31/12/2019onwards. The Corporate Governance Report of the Company for 2018 is available on the website of the Company(www.vassiliko.com). TherulesgoverningthecompositionandfunctionoftheBoardofDirectorsandtheappointmentandreplacementofitsmembersaswellasthecompositionandfunctionoftheBoardCommitteesaresetoutinSectionBoftheReportonCorporateGovernance. AnyamendmentoradditiontotheArticlesofAssociationoftheCompanyisonlyvalidifapprovedbyaspecialresolutionatashareholders’meeting. TheBoardofDirectorsmayissuesharecapitalifthereissufficientsharecapitalwhichhasnotbeenissuedandaslongasthenewsharestobeissuedareofferedfirsttotheexistingshareholders,proratatotheirpercentageholding. In theevent that thenewshareswill notbeoffered toexistingshareholders,a resolutionapprovedwithaspecialmajorityofatleastthe80%oftheshareholders,whoareentitledtoattendandvoteinaGeneralMeeting,mustbepassed.Intheeventthatasharecapitalincreaserequiresanincreaseintheauthorisedsharecapital,theapprovaloftheshareholdersinaGeneralMeetingmustbeobtained.TheBoardofDirectorsmayalsoproposetotheGeneralMeetingofshareholdersasharebuybackscheme.

TherearenorestrictionsinvotingrightsandspecialcontrolrightsinrelationtothesharesoftheCompany.

SHAREHOLDERS HOLDING MORE THAN 5% Theshareholdersholdingdirectlyorindirectlymorethan5%oftheissuedsharecapitaloftheCompanyasat31December2018and6April2019,aresetoutinnote33ofthefinancialstatements. PREPARATION OF PERIODIC REPORTING TheGrouphasinplaceaneffectiveinternalauditsystem,theadequacyofwhichisevaluatedatleastannuallyby theBoardofDirectorsand theBoard’sAuditCommittee, in respectof financialandoperational systems.TheadequacyoftheInternalAuditSystemsecuresthevalidityoffinancialdataandcompliancewithrelevantlegislationandaimstosecurethemanagementofriskswhileprovidingreasonableassurancethatnolosswillincur.


CORPORATE GOVERNANCE REPORT

SECTION ATheCompanyhasadoptedthe4thRevisedEditionoftheCorporateGovernanceCode,issuedbytheCyprusStockExchangeinApril2014.AtthedateofthisreporttheprinciplesoftheCorporateGovernanceCodearepartlyimplemented,giventhatthePrincipleregardingBoardBalanceandtheProvisionB.1.2oftheCorporateGovernanceCoderegardingtheindependencecriteriaofthemembersoftheRemunerationsCommitteewerenotfullymet.OnJanuary2019theCompanyadoptedthe5thRevisedEditionoftheCorporateGovernanceCodewhichisapplicablefortheCorporateGovernanceReportfortheyearending31/12/2019onwards.

SECTION B

THE BOARD TheCompanyisheadedbytheBoardofDirectorswhichat31December2018comprisedoneExecutiveandtennon-ExecutiveDirectorsandisresponsibletotheshareholdersforthepropermanagementofthecompany«ΤσιμεντοποιίαΒασιλικούΔημόσιαΕταιρείαΛτδ»(Englishtranslation“VassilikoCementWorksPublicCompanyLtd”) and its subsidiaries.Thenon-ExecutiveDirectors comprised two independentDirectors andeight non-independent Directors. The members of the Board (excluding the Chairman) comprised two independentnon-ExecutiveDirectors and eight non-independentDirectors, all of which are non-ExecutiveDirectors.Theindependentnon-ExecutiveDirectorsoftheBoardwereMr.AntonisMikellidesandMr.SteliosS.Anastasiades. TheBoardofDirectorsoftheCompanyasatthedateofthisreportcomprisesthefollowingmembers:

AntoniosAntoniou –ExecutiveChairmanGeorgeSt.Galatariotis –Νon-ExecutiveDirectorCostasSt.Galatariotis –Νon-ExecutiveDirectorStavrosG.Galatariotis –Νon-ExecutiveDirectorCostasKoutsos –Νon-ExecutiveDirectorCharalambosPanayiotou –Νon-ExecutiveDirectorMaurizioMansiMontenegro –Νon-ExecutiveDirectorAntonisMikellides –Independentnon-ExecutiveDirectorChristopheAllouchery –Νon-ExecutiveDirectorAntoniosKatsifos –Νon-ExecutiveDirectorSteliosS.Anastasiades –Independentnon-ExecutiveDirector

TheCompany’ssharesaretradedintheAlternativeMarketoftheCyprusStockExchange.CorporategovernanceprovisionsregardingBoardBalanceforCompanieslistedintheAlternativeMarketprovidethatthemajorityofthenon-ExecutiveDirectors,orat least twoDirectors,have tobe independentnon-ExecutiveDirectors.TheCompanycomplieswiththeaboveBoardBalanceprovisionsincetwomembersoftheBoardareIndependentnon-ExecutiveDirectors.BasedontheprovisionsoftheCorporateGovernanceCode,andgiventhattheBoardof Directors is comprised of two Independent non-Executivemembers and nine non-Independentmembers(executiveandnon-executive),BoardBalanceisnotmetaccordingtoPrincipleA.2oftheCorporateGovernanceCode.


CORPORATE GOVERNANCE REPORT (continued)

Mr.SteliosS.Anastasiades, independentnon-ExecutiveDirector,wasappointedon30May2017asSeniorIndependentDirector.TheSeniorIndependentDirectoroftheCompanyisavailabletoshareholdersiftheyhaveconcerns thathavenotbeen resolved through thenormalchannelsofcontactwith theExecutiveChairman,or theGeneralManager /DeputyGeneralManagers or forwhich such contact is inappropriate.TheSeniorIndependentDirectorwillattendsufficientmeetingsofmajorshareholdersandfinancialanalyststodevelopabalancedunderstandingoftheissuesandconcernsofsuchshareholders.TheSeniorIndependentDirectorcanbecontactedinitiallyviatheCompanySecretaryattheRegisteredOfficeoftheCompany.

TheBoardhassixscheduledmeetingsayear,settingandmonitoringtheGroup’sstrategy,reviewingtradingperformance,ensuringadequatefunding,examiningmajorcapitalexpenditure,formulatingpolicyonkeyissuesand reporting to shareholderswhere appropriate.TheBoard ofDirectors convened 7 times during 2018. Inaccordancewithbestpractice,theBoardhasestablishedtheAuditCommittee,theRemunerationsCommitteeandtheNominationsCommitteeaspertherequirementsoftheCode.TheCompanySecretaryisresponsibletoandappointedbytheBoardandallDirectorshaveaccesstoheradviceandservices.Directorsmayobtainindependentprofessionaladviceifnecessary,attheCompany’sexpense.Formalagendas,papersandreportsaresuppliedtoDirectorsinatimelymanner,priortoBoardmeetings.Briefingsarealsoprovidedatothertimes,forexample,throughoperationalvisitsandbusinesspresentations.

CHAIRMAN, CHIEF EXECUTIVE OFFICER AND GENERAL MANAGER Thedivisionof responsibilitybetween theExecutiveChairmanand theGeneralManagerof theCompany ispresentedbelow.FollowingtheassignmentofthedutiesandresponsibilitiesoftheGeneralManageronthe1stofAugust2017totheExecutiveChairmanoftheCompany,inhisadditionalroleastheChiefExecutiveOfficeroftheCompany,thedutiesandresponsibilitiesoftheGeneralManagerliewiththeExecutiveChairman.

TheExecutiveChairmanhas,amongothers,thefollowingduties&responsibilities:

• DeterminestheAgendaofthemeetingoftheBoardofDirectors.• Chairs theMeetings of the Board of Directors and the General Meetings of the Shareholders of the

Company.• Reviews the information and documents and confirms their relevance in order to be submitted to the

MembersoftheBoardofDirectorspriortotheBoardMeetings.• ReviewsthestrategyoftheGroupwiththeGeneralManager/DeputyGeneralManagersoftheCompany.• RepresentstheCompanyinallitsmajordealings.• MeetswiththemajorshareholdersoftheCompanyandconveystheirsuggestionstotheBoardofDirectors.• Cooperateswith theGeneralManager /DeputyGeneralManagers of theCompany to determine the

strategictargetsoftheGroupaccordingtothedevelopmentsofthesectorwithinwhichtheGroupoperatesandsecuresthethoroughappraisaloftheCompany’sstrategicorotherdevelopmentproposalsandthepresentationthereoftotheBoardofDirectorsforfinalapproval.

• EvaluatesandpromotesvariousotherproposalsoftheGeneralManager/DeputyGeneralManagers.• RepresentstogetherwiththeGeneralManager/DeputyGeneralManagersand/orselectivemembersof

theManagementTeamtheCompanyatvariousmeetingsforthepromotionofthestrategictargetsoftheCompany.



• IdentifiestheCompany’smajorandotherstakeholdersandformulatesaclearpolicyoncommunicatingorrelatingwiththemthroughaneffectiveinvestorrelationsprogram.

• Develops and maintains effective relationships with the stakeholders involved in the Company’s life,ensuringthecontinuityanddevelopmentofthebusiness.

• Supervisestheinternalcontrolsystem,securestheproperimplementationoftheCompany’stargetsandupdatestheBoardofDirectorsontherelatedprogress.

• HoldsperiodicmeetingswiththemanagementoftheCompanytodiscussvariousspecificsubjects.

TheGeneralManagerand /or theChiefExecutiveOfficerof theCompany,amongothers,has the followingduties&responsibilities,whichcurrentlyliewiththeExecutiveChairman:

• To manage together with the Deputy General Managers the Company in line with the strategy andthecommercial targetsdeterminedby theBoardofDirectorsand incompliancewithall relevant laws,regulations,CorporateGovernancecodesaswellasinternalpoliciesandprocedures.

• ToensurewiththesupportandcollaborationoftheDeputyGeneralManagersthedailysmoothoperationoftheCompanyinlinewiththepolicy,thetargetsandthebudgetsapprovedbytheBoardofDirectors.

• Toensure timely andeffective implementationof the strategic resolutionsof theBoardofDirectors inagreementwiththeExecutiveChairman.

• In cooperation with the Executive Chairman tomanage the business development of the Company’sactivities,itssubsidiariesandassociates.

• ToinformregularlytheExecutiveChairmanregardingallthemajorissuesoftheCompany,includingthecurrentstatusoftheoperationsoftheCompany.

• Toimplementprocedurestoensureexistenceofanefficientinternalcontrolsystem.• Todefineandintroduceappropriaterules,measuresandprocedurestogovernoperationsatrisk.• Toidentifythemainbusinessrisksandapprovetherelevantactionplanstomitigatethem.

APPOINTMENTS TO THE BOARD TheNominationsCommitteeischairedbyMr.GeorgeSt.Galatariotis(non-ExecutiveDirector)andiscomposedof twootherDirectors,MessrsC.Koutsos (non-ExecutiveDirector)andA.Katsifos (non-ExecutiveDirector).AllthemembersoftheCommitteearenon-ExecutiveDirectors.TheNominationsCommitteeisresponsiblefortheselectionandnominationofanynewDirector,fortheBoard’sconsideration.TheCommitteeisresponsibletocarryoutaselectionprocess.UpontheappointmentofanewDirector,appropriate training isprovidedasrequired.InaccordancewiththeArticlesofAssociationoftheCompanyandtheCorporateGovernanceCode,threeoutoftheelevenDirectorsoftheCompany(excludingtheExecutiveChairmanandChiefExecutiveOfficeroftheCompany)retirebyrotationeveryyear(eachDirectorretireseverythreeyears)and,ifeligible,mayofferthemselvesforre-election.TheBoardhassetthe75thyearofageastheyearofretirement.



RELATIONS WITH SHAREHOLDERS Importance is attached tomaintaining a dialoguewith theCompany’s institutional shareholders.TheAnnualGeneralMeetingisusedasaforumforcommunicatingwithshareholders,providingbriefingsontheCompany’sperformance during the year under review and current business activity. There will be an opportunity forshareholderstomeetwithandputquestionstotheDirectors,includingthechairmenoftheAudit,Nominationsand Remunerations Committees.AtAnnual General Meetings, separate resolutions are proposed on eachsubstantiallyseparateissueandthenumberofproxyvotesreceivedforandagainsteachresolutionisannounced.Memberswithvotingrightsof5%mayplaceitemsontheagendaofAnnualGeneralMeetingsbysubmittingsuchitems,eitherinhardcopiesorsoftcopies(electronic),accompaniedwithrelevantexplanations,atleast42daysbeforethedateoftheAnnualGeneralMeeting.NoticesofAnnualGeneralMeetingsaresenttotheshareholdersat least21daysbeforethemeeting.TheBoardofDirectorsappointedMr.GeorgeSavvaasInvestorLiaisonOfficertofacilitatebettercommunicationwithshareholdersandinvestors.

FINANCIAL REPORTING Thepreparationandpresentationofthisreportandfinancialstatementsandotherpricesensitivepublicreports,seektoensurethatreportsarepreparedinawaythatrepresentsabalancedandunderstandableassessmentoftheGroup’spositionandprospects.

INTERNAL CONTROL Riskassessmentandreviewiscarriedoutbytheexecutivemanagementwithdetailsofsignificantrisksbeingdocumented. Periodic reports relating to significant risks and associated controls are prepared from thisdocumentationandpresentedtotheBoardforitsreview.TheBoardhasoverallresponsibilityfortheGroup’ssystemsofinternalcontrolandforreviewingtheireffectivenessonanannualbasis,aswellasoftheprocedureswhichconfirmtheaccuracy,completenessandvalidityoftheinformationthatisprovidedtotheinvestors.Thereviewcoversallsystemsofinternalcontrol,includingfinancialandoperationalsystems,aswellascompliancesystemsandsystemsforthemanagementofrisks,whichthreatentheattainmentoftheCompany’sobjectives.OnthebasisoftheprocessdescribedaboveduringtheyeartheInternalAuditorsprepareInternalAuditReportsaddressedtotheAuditCommitteewhichinformstheBoardthroughitsAnnualInternalAuditReport.AccordingtotheInternalAuditorsReports,thesystemsofinternalcontroldonotpresentanysignificantweaknesses.TheBoardhasreviewedthekeyrisksinherentintheGroup,togetherwiththeoperating,financialandcompliancecontrolsthathavebeenimplementedtomitigatethosekeyrisks.However,anysystemofinternalcontrolcanprovideonlyreasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.TheBoardhasputinplaceanorganisationstructurewithclearlydefinedlinesofaccountabilityanddelegatedauthority.Theprincipleshavebeendesignedtoestablishclearlocaloperatingautonomywithinaframeworkofcentralleadership,statedaimsandobjectives.Procedureswereestablishedforbusinessplanning,budgeting,capitalexpenditureapprovalandtreasurymanagement.TheExecutiveChairmanandtheGeneralManagerandDeputyGeneralManagersregularlyreviewtheoperatingperformanceofeachbusinessandmonitorprogressagainstbusinessplans.



AUDIT COMMITTEE AND AUDITORS TheAuditCommitteecomprisesofMessrsCostasSt.Galatariotis(ChairmanoftheCommittee-non-ExecutiveDirector),A.Mikellides (Independentnon-ExecutiveDirector)andMr.St.S.Anastasiades (Independentnon-Executive Director). The majority of the members of the Audit Committee are Independent non-ExecutiveDirectors.TheCommitteemetfourtimesduring2018.TheCommitteemeetingsprovideaforumforreportingbytheGroup’sexternalandinternalauditorswhohaveaccesstotheCommitteeforindependentdiscussion,withoutthepresenceoftheExecutiveDirectors.

TheAuditCommittee reviewsawide rangeof financialmatters including the annual andhalf-yearly results,statementsandaccompanyingreports,before theirsubmission to theBoardandmonitors thecontrolswhichare in force to ensure the integrity of the financial information reported to shareholders, and also overseestheprocedures for theselectionofaccountingpoliciesandaccountingestimates for theCompany’sfinancialstatementsandensuresthatamechanismisinplacetoensuretheCompany’sassets,includingthepreventionanddetectionof fraud.TheAuditCommitteealsoadvises theBoardon theappointmentofexternalauditorsandontheirremunerationbothforauditandnon-auditwork,aswellasproposestotheBoardofDirectorstheappointment and revocation of appointment of the audit firm assignedwith the InternalAudit functions, andensuresitsindependence.

TheGroup’sinternalauditfunctionisoutsourcedtoPricewaterhouseCoopersLtd,aprofessionalAuditorsFirm,whichmonitorstheGroup’sinternalfinancialcontrol,theinternalcontrolsystemsandriskmanagementsystemsandreportstothemanagementandtotheAuditCommittee.

TheAuditCommitteeconsiderstheabovementionedperiodicreportswhereastheManagementisresponsiblefor the implementation of the recommendations made by internal audit that carry out post-implementationreviews.Theexternalauditorscarryout independentandobjective reviewsand testsof the internalfinancialcontrolprocesses,onlytotheextentthattheyconsidernecessarytoformtheirjudgementwhenexpressingtheirauditopinionontheaccounts.

TheAuditCommitteediscussesextensivelywiththeauditorssignificantauditfindingsarisingduringtheirauditwork,whichwereresolvedorremainedunresolved,aswellastheauditor’sreportwhichreferstoweaknessesintheinternalcontrolsystem,inparticularthoseconcerningtheproceduresoffinancialreportingandthepreparationoffinancialstatements.

GOING CONCERN Aftermakingappropriateenquiries,theDirectorsconsiderthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.ForthisreasontheycontinuetoadoptthegoingconcernbasisinpreparingtheaccountsandstatethattheCompanyintendstooperateasagoingconcernforthenexttwelvemonths.



REMUNERATIONS COMMITTEE TheRemunerationsCommitteecomprisesofthreenon-ExecutiveDirectors.ThemembersoftheRemunerationsCommitteeareMessrsCh.Panayiotou(non-ExecutiveDirector),St.Galatariotis(non-ExecutiveDirector)andA.Mikellides(Independentnon-ExecutiveDirector).TheCommitteeischairedbyMr.Ch.Panayiotouwhohasknowledgeandexperienceinremunerationpolicy.EventhoughallthemembersoftheRemunerationsCommitteearenon-executiveDirectors,onlyonedirectoroutof the threemembersof theRemunerationsCommittee isindependentnon-executivedirectoraccordingtothecriteriaofindependencyofadirectorasthesearedefinedbytheprovisionA.2.3.oftheCorporateGovernanceCode.TheCommitteewillusuallymeetatleastonceayear.TheGroupExecutiveChairmanwillnormallybeinvitedtoattenditsmeetingsinordertomakerecommendationsregardingtheremunerationof theGeneralManager/DeputyGeneralManagers.TheCommitteeperiodicallyreviewstheDirectorsRemunerationundertheircapacityasnon-ExecutiveDirectorsandmembersoftheBoard’sCommittees,aswellastheremunerationpolicyfortheExecutiveDirectorsandtheGeneralManager/DeputyGeneralManagers.Independentexternallegalandconsultancyadviceisobtainedwhennecessary.TheGroupExecutiveChairmanisnotpresentwhenhisownremunerationisdiscussed.

TheRemunerationpolicyoftheDirectorsoftheCompanyisincludedintheRemunerationsReport(page23).

DIRECTORS SEEKING RE-ELECTION AlltheDirectorsaresubjecttoelectionbytheshareholdersatthefirstAnnualGeneralMeetingthatfollowstheirappointmentandthereafterretireeverythreeyears.AccordingtotheArticlesofAssociation,onethirdofthetenCompanyDirectors(excludingtheExecutiveChairman/ChiefExecutiveOfficeroftheCompany)retirefromtheBoardateachAnnualGeneralMeeting.TheDirectorsliabletoretirementaccordingtotheaboveprovisionsarethosewhoservedasmembersoftheBoardforthelongestperiodsincetheirlastelection.

InaccordancewiththeCompany’sArticlesofAssociation(Article92),atthenextshareholdersAnnualGeneralMeeting Messrs George St. Galatariotis (Non-Executive Director), Charalambos Panayiotou (non-ExecutiveDirector) and ChristopheAllouchery (Non-Executive Director), shall retire from office by rotation. All abovementionedDirectors,beingeligible,shallofferthemselvesforre-election.

LOANS AND GUARANTEES GRANTED TO DIRECTORSNoloansand/orguaranteesweregrantedtotheDirectorsoftheCompanyortoDirectorsofanysubsidiaryorrelatedcompany,eitherbytheCompanyitselforbyitssubsidiaryorrelatedcompanies,andtherearealsonomoniesreceivablefromanycompanyaDirectorand/oranypersonrelatedtohim,isinvolvedwith.

COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE OFFICERTheBoard ofDirectors appointedMr.GeorgeSavva, FinancialManager of theCompany, at the position ofCompliancewiththeCodeofCorporateGovernanceOfficer.

BOARD OF DIRECTORS CONFIRMATIONTheBoardofDirectorsassuresthattothebestofitsknowledge,therehasbeennoviolationoftheSecuritiesandStockExchangeofCyprusLawandRegulations.


REMUNERATION REPORT

TheRemunerationReportoftheCompanyfortheyear2018hasbeenpreparedaccordingtoAppendices1and2oftheCorporateGovernanceCode.

REMUNERATIONS COMMITTEE TheRemunerationsCommitteeoftheBoardisresponsibleforensuringthattheremunerationpackagesawardedtoExecutiveDirectorsareappropriatetoindividuallevelsofresponsibilityandperformance,areconsistentwiththeCompany’sremunerationpolicy,andareinlinewiththeprinciplesoftheCorporateGovernanceCode.

REMUNERATION POLICY TheBoard’spolicy is toemployhighcalibrepeople for itskeypositions. It requiresacorresponding levelofperformancefromthosepeopleandseekstorewardaccordingly.TheGroupmaycommissionspecialreviewsfromtimetotimetoassesstheDirectors’compensationlevels.Accountistakenofthesalaryandtotalremunerationlevels prevailing in comparable jobs both inside and outside theConstruction andBuildingMaterials sector,togetherwiththeindividualperformanceandcontributionofeachExecutiveDirector.

Theremunerationof theExecutiveChairmanandtheGeneralManager includesvariable-paycomponentstoensurethattheexecutiveremunerationislinkedtotheCompany’sperformance.Amaximumlimitofthevariable-paycomponentisset.Thenon-variablecomponentissufficientremunerationwhenavariableremunerationisnotgranted.TheBoardconsidersthatpackagesofthisnatureareconsistentwithprevailingpracticeandarenecessarytoattract,retainandrewardexecutivesofthecalibretheGrouprequires.Inframingthepolicy,theBoardhasgivenfullconsiderationtotheprovisionsoftheCorporateGovernanceCode.Theannualincentiveplanrewardsfortheperformanceofthepreviousyearandispaidincash.ThemaximumbonuspaymentisexpressedasapercentageofbasesalaryandisbasedontheevaluationoftheperformanceoftheExecutiveChairmanandtheGeneralManagerconductedbytheRemunerationsCommitteeattheyearfollowingtheperformanceperiod.TheRemunerationsCommitteeevaluatestheperformanceoftheExecutiveChairmanandtheGeneralManagerconsideringtheCompany’sfinancialperformance,costscontainmentmeasures,measurestowardstheGroup’slong-termviability,aswellasnon-financialcriteriarelatingtodevelopmentandcreatinglongtermvaluefortheGroup.Bonusesgrantedin2018concernrewardsforthefinancialperformanceoftheCompanyfortheyear2017.TheCompanyreservestherightforfullorpartialrecoveryofanybonusesgrantedonthebasisofinformationwhichsubsequentlyprovestobeinaccurate.

Inadditiontothebasesalaryandincentiveplanparticipation,theExecutiveChairmanandtheGeneralManagerenjoythesamebenefitsasotheremployeesoftheCompany,whichincludeprovidentfundandmedicalfund.

NosignificantchangesweremadetotheremunerationpolicyoftheCompanyforyear2018comparedtothepreviousyear.

ThetotalremunerationsoftheExecutiveDirectorsundertheircapacityasExecutivesfortheyear2018were€404.571.

PENSION SCHEME AlltheEmployeesoftheCompanyincludingtheGeneralManagerandtheExecutiveChairmanaremembersoftheCompany’sProvidentFund,whichisadefinedcontributionscheme.NootheradditionalpensionschemesexistforanyoftheExecutiveMembersoftheBoard.


REMUNERATION REPORT (continued)

EMPLOYMENT CONTRACTS EmploymentofExecutiveDirectorsareforindefiniteperiods,howevernoticeperiodsdonotexceedoneyearas per the requirements of theCorporateGovernanceCode. In caseof termination by theCompanyof theemploymentofExecutiveDirectors,prior to their retirement, theCompanyhas tocompensate theExecutiveDirectorsaccordingtotheprovisionsoftheLaw.

NON-EXECUTIVE DIRECTORS TheremunerationoftheDirectors,bothExecutivesandnon-Executives,forservicesrenderedtotheCompanyasDirectors,isdeterminedbytheannualgeneralmeetingoftheCompanyontheproposaloftheBoard.Thenon-ExecutiveDirectorshavelettersofappointmentforathree-yearterm.Theydonotparticipateinanyprofitsharing,shareoptionorother incentivescheme.The remunerations foreachof theDirectors for2018were€20.000,and€25.000fortheChairmanand€300permeetingforattendanceinperson.

The remunerationsof theDirectors,Executivesandnon-Executives,under their capacityasDirectorsof theCompanyandasmembersoftheBoardofDirectors’CommitteesaswellasundertheircapacityasExecutiveDirectorsfor2018wereasfollows:

Directors

Fees as Members of the Board

and its Committees

Fees and emoluments

as executives Bonuses

Other Benefits

Social Benefits

Provident Fund

Total Remuneration

€ € € € € €

Executive DirectorsAntoniosAntoniou 28.300 276.000 100.000 4.800 4.243 19.528 432.871

Non-Executive Directors GeorgeSt.Galatariotis 23.600 - - - - - 23.600

CostasSt.Galatariotis 23.900 - - - - - 23.900

StavrosG.Galatariotis 23.300 - - - - - 23.300

CostasKoutsos 23.600 - - - - - 23.600

CharalambosPanayiotou 23.600 - - - - - 23.600MaurizioMansiMontenegro 21.500 - - - - - 21.500AntonisMikellides 23.900 - - - - - 23.900

ChristopheAllouchery 20.900 - - - - - 20.900

AntoniosKatsifos 22.100 - - - - - 22.100

SteliosS.Anastasiades 23.000 - - - - - 23.000

257.700 276.000 100.000 4.800 4.243 19.528 662.271

LOANS AND GUARANTEES GRANTED TO DIRECTORSNo loansand/orguaranteesweregranted to theDirectorsof theCompanyor toDirectorsofanysubsidiarycompanyortotheirrelatedpartiesbytheCompanyanditssubsidiarycompanies.


DIRECTORS’ CURRICULA VITAE

ANTONIOS ANTONIOU – EXECUTIVE CHAIRMANMr.AntoniosAntoniouwasborn inLondon.Hestudiedat theUniversityofLondonwhereheobtainedaBSc(Hons)degreeandapostgraduatediploma.

Mr.Α.Antoniouworkedfor5yearsasaBiochemistatUniversityCollegeLondonandfor3yearsasaComputerSystemsAnalystatBritishGasHeadquartersinLondon.HewasafoundingpartnerofAMERWorldResearchLtdandDeputyGeneralManagerfrom1983until1998.From1998untilDecember2006heservedasSeniorVicePresident (OperationsandSystems)ofNielsenEuropeandwasamemberof theEuropeanExecutiveCommittee.

AsfromFebruary2008hehasbeentheExecutiveChairmanofVassilikoCementWorksPublicCompanyLtd,andsinceAugust2017hastakenontheadditionalroleoftheChiefExecutiveOfficeroftheCompany.

HeisaMemberoftheBoardofDirectorsoftheCyprusEmployers&IndustrialistsFederationandViceChairmanofitsExecutiveCommittee.

GEORGE ST. GALATARIOTISMr.GeorgeSt.GalatariotiswasborninLimassolin1947.HestudiedBusinessAdministrationatCityPolytechnicinLondon.

Mr.GeorgeGalatariotisisExecutiveChairmanofGalatariotisGroupofCompanies,ExecutiveChairmanofTheCyprusCementPublicCompanyLtdandK&GComplexPublicCompanyLtd.HeisalsoMemberoftheBoardofDirectorsofseveralprivateandpubliccompanies.HeisaTrusteeoftheCyprusConservationFoundation(TerraCypria).Mr.GeorgeGalatariotishasalsoservedasamemberoftheBoardofLimassolChamberofCommerceandIndustryandtheCyprusPortsAuthority.Asfrom2017Mr.GalatariotisisamemberoftheBoardofDirectorsoftheCyprusEmployers&IndustrialistsFederation.

COSTAS ST. GALATARIOTISMr.CostasSt.GalatariotiswasborninLimassolin1963.Hegraduatedthe5thGymnasiumofLimassolandhestudiedEconomics,IndustryandCommerceattheLondonSchoolofEconomicsandPoliticalScience.

Mr.CostasGalatariotisisExecutiveChairmanoftheGalatariotisGroupofCompanies,ExecutiveChairmanofC.C.C.TouristEnterprisesPublicCompanyLtdandmemberofBoardsofDirectorsofseveralprivateandpubliccompanies.HeisamemberoftheboardofdirectorsoftheAssociationofCyprusTouristEnterprises(ACTE).Mr.CostasSt.GalatariotisisChairmanoftheAuditCommitteeofVassilikoCementWorksPublicCompanyLimitedsince2008.

Mr.CostasSt.GalatariotishasservedasHonoraryConsulGeneralofJapaninCyprusfrom2007until2012.SinceSeptember2014heisthePresidentoftheBoardoftheLimassolChamberofCommerceandIndustryandasfromJuly2018heistheViceChairmanoftheCyprusInvestmentPromotionAgency(CIPA).


DIRECTORS’ CURRICULA VITAE (continued)

STAVROS G. GALATARIOTISMr. StavrosGalatariotiswasborn in Limassol in 1976. In 1999hegraduated from theUniversity ofSurreywithaBSc inBusinessEconomics(FirstClass).Duringhisstudieshewasawarded theCIMAawardby theCharteredInstituteofManagementAccountants.StavrosholdsanMBAfromtheCyprusInternationalInstituteofManagement.

Since2000,StavrosGalatariotisisanExecutiveDirectoroftheGalatariotisGroupofCompaniesandamemberoftheBoardofDirectorsofseveralprivateandpubliccompanies.HeisaDirectorofVassilikoCementWorksPublicCompanyLtdsince2008.

COSTAS KOUTSOSMr.CostasKoutsosistheExecutiveChairmanofKEOPlcandMemberof theBoardofDirectorsofHellenicMiningPublicCompanyLtd.Between1978and2011hewastheManagingDirectorofBMSMetalPipesIndustriesGroup.HeisaFinancialConsultant,CompaniesTaxConsultant,SecretaryandMemberoftheBoardofDirectorsofotherprivate companies.Mr.C.Koutsos isaqualifiedaccountantandhehasworked for twelveyears inaseniorposition inan internationalauditfirm.Hehasaperennialexperience in theCyprusStockExchangeMarket.Heisanactivememberofvariouscharitablefoundations.HeservedasMemberoftheBoardofDirectorsofCyprusMetalIndustryAssociation,memberoftheCyprusEmployersandIndustrialistsFederationfrom1985to2011.

CHARALAMBOS P. PANAYIOTOUMr.CharalambosPanayiotouwasbornonthe6thofJuly1971.HestudiedManagementSciences(BSc)attheLondonSchoolofEconomicsandPoliticalScience(1993).HejoinedCoopers&LybrandasaCharteredAccountanttraineeintheauditandtaxdepartmentfrom1993to1996.Heisamemberof“TheInstituteofCharteredAccountants inEnglandandWales”aswellasaMemberof “The InstituteofCertifiedPublicAccountantsofCyprus”since1996.HethenjoinedtheCyprusPopularBankLtd.In2000hewasappointedFinancialControlleroftheHolyBishopricofPaphos,ExecutivememberoftheBoardofDirectorsofSt.GeorgeHotel(Management)LtdaswellasofSMTsadaGolfLtduntilSeptember2010,uponwhichdatehewasappointedasManagingDirectoroftheKEOPLCGroup.HeisaMemberoftheBoardofDirectorsofHellenicMiningGroupCompanies.HeservedasaMemberof theBoardof theHellenicBankPublicCompanyLtd fromJune2005 toJanuary2014.DuringthissameperiodheservedasChairmanoftheHellenicBank(Investments)Ltd.Asfrom2017Mr.PanayiotouisamemberoftheBoardofDirectorsoftheCyprusEmployers&IndustrialistsFederation.



MAURIZIO MANSI MONTENEGROMr.MaurizioMansiMontenegrowasbornonMarch10,1962.HeholdsadegreeinStatisticalSciencefromRomeUniversity“LaSapienza”,andapost-graduatedegreeinStrategicandInternationalMarketingfromSDABocconi(Milan),afterhavingattendedtheInternationalExecutiveProgrammeat“InstitutEuropéend’AdministrationdesAffaires”(INSEAD).

He started his career inHewlett-Packard as aBusinessAnalyst, thenas aStrategicPlanningSpecialist inAugusta–Westland.

In1990,hejoinedItalcementiGroupasaMarketingAnalystCoordinatorand,aftersevenyearsofexperienceintheGroup’sStrategicPlanDirection,hehasbeenresponsibleforCementCommercialactivitiesinEgypt.In2007hewasappointedasAssistanttotheC.E.O.ofItalcementiS.p.A.,andbetween2009and2016hewastheManagingDirectorofInterbulkTradingS.A.

Sincethe1stofJanuary2017,heistheDeputyC.E.O.ofHCTradingBV,thetradingcompanyofHeidelbergCementGroup.He isalsoamemberof theBoardofDirectorsof IntercomS.r.l., IntercomLibyaF.Z.C,HilalCementCo.,andAlMahaliyaReadyMixConcreteCo.

ANTONIS MIKELLIDESMr.AntonisMikellideswasborninLondonin1978.HestudiedattheUniversityofWestminsterwhereheobtainedaBAdegree inBusinessComputingandholdsaPostgraduatedegree inShipping,TradeandFinance fromCityUniversityLondonaswellasadiplomainTerrorismStudies, focusingmainlyonMarinePiracy, fromtheUniversityofSt.AndrewsinScotland.

Mr.Α.MikellidesjoinedZelaShippingCoLtdinLondonin2002asafleetoperator,andin2006wasinchargeof restructuring the fleet’smanagement company inPiraeusGreece.As from2010he has beenaDirector,ChiefFinancialOfficerandVice-PresidentofOlympiaOceanCarriersLtdandin2012alsobecameaDirectorofSeaTradeHoldings.Mr.AntonisMikellideshasbeenelectedontheBoardofDirectorsoftheCyprusUnionofShipownerssince2009.



CHRISTOPHE ALLOUCHERY Mr.ChristopheAlloucherywasborninFrancein1971.ChristophegraduatedinEconomicsfromParisIIUniversity,andholdstwoMaster’sdegreesinFinanceawardedin1996fromParisSchoolofBusiness.

Hestartedhis career inGrantThorton in1997asfinancialauditorand in2000he joinedCimentsCalcia inGuerville(France),memberofItalcementiGroup,asHeadofAnalyticalAccountingandthenHeadofCementControlling.In2010hemovedtoItalcementiGroupHeadquartersinBergamo(Italy)andwaspromotedSeniorZoneController–AssistanttotheZoneManager,responsibleforEgypt,Greece,Bulgaria,Kuwait,SaudiArabia,KazakhstanandTurkey.HeistheFinanceDirectoroftheBulgarianandAlbanianactivitiesofHeidelbergCementsince October 2016 and Chief Financial Officer and Board member of Halyps Building Materials inAthens(Greece)since2013.HeisalsomemberoftheboardofDevnyaCement,VulkanCementandLyulyakaMaterials,alllocatedinBulgaria.

ANTONIOS KATSIFOSMr.AntoniosKatsifoswasborn inAthens in1955.Hestudiedat theNationalTechnicalUniversityofAthenswhereheobtainedaDegreeasMiningandMetallurgyEngineerandhesuccessfullycompletedtheAcceleratedDevelopmentprogramatLondonBusinessSchool.

Heworkedfor10years,from1981until1991,asaMiningEngineerinundergroundoperationsatGreekBauxiteofElikonS.A.atDistomonViotiasandatMETVAS.A.atMolaoi Lakonias,Greece.Heworked forHALYPScement,memberof Intalcementigroupof companies inGreeceandnowHeidelbergCement, formore than25years.In1991,hejoinedETBETON,areadymixconcreteproductioncompanyasProductionManagerinAthens,andin1995hebecameVicePresidentandManagingDirectoratDOMIKIBETONatHeraclionCreta,apositionhelduntil2001.

In1999hebecameGeneralDirectorofHALYPSQUARRYinAtticaandin2001SalesandMarketingDirectorofHALYPSCEMENT.HeservedasSalesandMarketingDirectorinCementandAggregatesactivityatHALYPSBUILDINGMATERIALS S.A. until 2017 having served simultaneously the position of Sales Director for theconcreteactivityfrom2013to2015.HewasamemberoftheBoardofDirectorsoftheHellenicCementIndustryAssociationfrom2002until2017andamemberoftheBoardofDirectorsoftheMiningandQuarryAssociationinGreece,as representativeofHALYPS, from2014until2017.PresentlyMr.Katsifos isactively involvedasPartnerintheConsultancyfirmECHMESLtd,whichprovidesintegratedsolutionsinthefieldofEnvironmentalManagementandPermitting,ofMining,Metallurgical,LandPlanning,TouristandIndustrialprojectswithintheframeworkofsustainabledevelopment.



STELIOS S. ANASTASIADESMr.SteliosS.AnastasiadesisaMechanicalEngineer,aged65.HewasawardedaFirstClassHonoursB.Sc.(Eng)degreefromtheQueenMaryCollegeandaM.Sc.degreeandD.I.CfromtheImperialCollege,UniversityofLondon.

Mr.AnastasiadesistheManagingDirectorofKONEElevatorsCyprusLtd,theleadingcompanyinCyprusinthefieldofliftsandescalators,with120employeesandanannualturnoverof€15,7million.

HeisthePresidentoftheNicosiaChamberofCommerceandIndustry,amemberoftheexecutivecommitteeoftheCyprusChamberofCommerceandIndustry,amemberoftheCyprusTechnicalChamberandPresidentoftheBoardofDirectorsoftheFinancialOmbudsmanoftheRepublicofCyprus.InthepastheservedasViceChairmanofEurocypriaAirlines,memberoftheBoardofSocialInsurance,memberoftheBoardoftheLoanCommissionersandmemberoftheboardoftheCyprusOrganizationforStandardsandQualityControl.

30

INDEPENDENT AUDITORS’ REPORT

Reportontheauditoftheconsolidatedandseparatefinancialstatements

TothemembersofVassilikoCementWorksPublicCompanyLimited

OPINION WehaveauditedtheaccompanyingconsolidatedfinancialstatementsofVassilikoCementWorksPublicCompanyLimited(the''Company'')anditssubsidiaries(the''Group''),whicharepresentedonpages36to86andcomprisetheconsolidatedstatementoffinancialpositionasat31December2018,andtheconsolidatedstatementsofprofitorlossandothercomprehensiveincome,changesinequityandcashflowsfortheyearthenended,andnotestotheconsolidatedfinancialstatements,includingasummaryofsignificantaccountingpolicies.

Inouropinion,theaccompanyingconsolidatedandseparatefinancialstatementsgiveatrueandfairviewoftheconsolidatedfinancialpositionoftheGroupandtheCompanyasat31December2018,andofitsconsolidatedfinancialperformanceanditsconsolidatedcashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandards as adopted by theEuropeanUnion (“IFRS-EU”) and the requirements of theCyprusCompaniesLaw,Cap.113,asamendedfromtimetotime(the“CompaniesLaw,Cap.113”).

BASIS FOR OPINION Weconductedouraudit inaccordancewith InternationalStandardsonAuditing (“ISAs”).Our responsibilitiesunder thosestandardsare furtherdescribed in the“Auditors’ responsibilities for theauditof theconsolidatedandseparatefinancialstatements”sectionofourreport.WeremainedindependentoftheGroupthroughouttheperiodofourappointmentinaccordancewiththeCodeofEthicsforProfessionalAccountantsoftheInternationalEthics Standards Board for Accountants (“IESBA Code”), and the ethical requirements in Cyprus that arerelevanttoourauditoftheconsolidatedandseparatefinancialstatements,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

31

INDEPENDENT AUDITORS’ REPORT (continued)


KEY AUDIT MATTERSKeyauditmattersarethosemattersthat,inourprofessionaljudgementwereofmostsignificanceinourauditoftheconsolidatedandseparatefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditoftheconsolidatedandseparatefinancialstatements,asawhole,andinformingouropinionthereonandwedonotprovideaseparateopiniononthesematters.

Revenuerecognition

PleaserefertoNote6ofthefinancialstatements.

The key audit matter How the matter was addressed in our audit

ThevastmajorityoftheGroup’srevenue,isgeneratedfromthesalesofClinkerandCement.

The Group generally recognizes revenue whenproducts are delivered to the customers for thedomesticsales,or inaccordancewith the termsandconditions of sale for export sales. Accordingly theterms and conditions by customers vary and mayaffectthetimingofrecognitionofrevenue.

Giventhesignificanceofrevenueasamajorcomponentinthestatementofcomprehensiveincome,andsincerevenue is oneof the keyperformance indicatorsoftheGroupand is, therefore,subject tomanipulation,weconsideredtherevenuerecognitionasakeyareaoffocusduringouraudit.

Ourauditproceduresconsistofthefollowing:• Evaluation and assessment of the operating

effectivenessoftheinternalcontrolsrelevanttotherecognitionandmeasurementofrevenue.

• Performing substantive analytical procedures,developinganexpectationofthelevelofrevenuebased on historical data and macroeconomicfactors.

• Evaluationoftheappropriatenessofrecognitionofboth revenueanddiscountsby reference tothe relevant invoices and/or agreements withcustomers,inordertoassesswhetherrevenueand discounts have been recognized in thecorrectaccountingperiod.

Valuationofinvestmentproperties

PleaserefertoNote15ofthefinancialstatements.

The key audit matter How the matter was addressed in our audit

At31December2018,themanagementhasassessedthe fair value of its investment properties at Euro8.284.678.

Giventhesignificanceof theaboveamountsaswellas the inherent subjectivity included in determiningthefairvalue,aswellas,thejudgmentinvolvedinthisarea, the valuation of investment property has beenidentifiedasanareaoffocusduringouraudit.

Ourauditproceduresconsistofthefollowing:• Assessment of the capability, competenceand

independenceoftheexternalvaluator.• Assessment of the methodology used by the

externalvaluator.• Assessment of the reasonableness of the

comparabledatausedinthevaluations.• Assessmentoftheaccuracyofthemathematical

calculations.

32

OtherinformationTheBoardofDirectorsisresponsiblefortheotherinformation.Theotherinformationcomprisesthemanagementreport,thecorporategovernancereport,theRemunerationreportandtheDirectorsCurriculaVitaebutdoesnotincludetheconsolidatedandseparatefinancialstatementsandourauditors’reportthereon.

Ouropinionontheconsolidatedandseparatefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon,exceptasrequiredbytheCompaniesLaw,Cap.113.

Inconnectionwithourauditoftheconsolidatedandseparatefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedandseparatefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.

WithregardstotheremunerationreportandtheDirectors’CurriculaVitaewehavenothingtoreport.

Withregardstothemanagementreportandthecorporategovernancereport,ourreportinthisregardispresentedinthe''Reportonotherlegalandregulatoryrequirements''section.

ResponsibilitiesoftheBoardofDirectorsandthosechargedwithgovernancefortheconsolidatedandseparatefinancialstatementsTheBoardofDirectorsisresponsibleforthepreparationofconsolidatedandseparatefinancialstatementsthatgiveatrueandfairviewinaccordancewithIFRS-EUandtherequirementsoftheCompaniesLaw,Cap.113,and forsuch internalcontrolas theBoardofDirectorsdetermines isnecessary toenable thepreparationofconsolidatedandseparatefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

In preparing the consolidated and separate financial statements, the Board of Directors is responsible forassessingtheGroup’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccounting,unlessthereisanintentiontoeitherliquidatetheGrouportoceaseoperations,orthereisnorealisticalternativebuttodoso.

TheBoardofDirectorsandthosechargedwithgovernanceareresponsibleforoverseeingtheGroup’sfinancialreportingprocess.



33

Auditors’responsibilitiesfortheauditoftheconsolidatedandseparatedfinancialstatementsOur objectives are to obtain reasonable assurance about whether the consolidated and separate financialstatements as awhole are free frommaterialmisstatement,whether due to fraud or error, and to issue anauditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguaranteethatanauditconductedinaccordancewithISAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpected to influence theeconomicdecisionsofusers takenon thebasisof theseconsolidatedandseparatefinancialstatements.

As part of an audit in accordance with ISAs, we exercise professional judgment andmaintain professionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedandseparatefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatement resulting from fraud is higher than for one resulting fromerror, as fraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrol.

• EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheBoardofDirectors.

• ConcludeontheappropriatenessoftheBoardofDirectors’useofthegoingconcernbasisofaccountingand, basedon theaudit evidenceobtained,whetheramaterial uncertaintyexists related toeventsorconditions thatmaycastsignificantdoubton theGroup’sability tocontinueasagoingconcern. Ifweconclude thatamaterialuncertaintyexists,weare required todrawattention inourauditors’ report totherelateddisclosuresintheconsolidatedandseparatefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditors’report.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

• Evaluate the overall presentation, structure and content of the consolidated and separate financialstatements, including thedisclosures,andwhether theconsolidatedandseparatefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievestrueandfairview.

• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitiesoftheGrouptoexpressanopinionontheconsolidatedandseparatefinancialstatements.Weare responsible for the direction, supervision and performance of the Group audit.We remain solelyresponsibleforourauditopinion.



34

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedandseparatefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditors’report.

Reportonotherlegalandregulatoryrequirements

Other regulatory requirementsPursuant to the requirementsofArticle10(2)ofEuropeanUnion (“EU”)Regulation537/2014weprovide thefollowinginformationinourIndependentAuditor’sReport,whichisrequiredinadditiontotherequirementsofISAs.

Date of appointment and period of engagementWewerefirstappointedauditorsoftheCompanybytheGeneralMeetingoftheCompany’smembersin1988.Ourappointmenthasbeenrenewedannuallybyshareholderresolution.Ourtotaluninterruptedperiodofengagementis32yearscoveringtheperiodsending31December1987to31December2018.

Consistency of auditors’ report with the additional report to the Audit Committee WeconfirmthatourauditopinionisconsistentwiththeadditionalreportpresentedtotheAuditCommitteedated11April2019.

Provision of non-audit services (“NAS”)Wehavenot providedanyprohibitedNAS referred to inArticle 5ofEURegulation537/2014asappliedbySection72oftheAuditorsLawof2017,L.53(I)2017,asamendedfromtimetotime(''LawL.53(I)/2017'').




CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME fortheyearended31December2018

The notes on pages 44 to 86 form an integral part of these financial statements

Note 2018 2017 Continuing operations €000 €000

Revenue 6 97.926 102.467Costofsales (70.944) (71.576)Gross profit 26.982 30.891

Otheroperatingincome 7 977 1.071Distributionexpenses (4.169) (4.510)Administrativeexpenses (3.803) (3.528)Otheroperatingexpenses (1.606) (1.678)Operating profit before financing costs 8 18.381 22.246

Financeincome 198 -Financeexpenses (114) (439)Net finance income/(cost) 10 84 (439)

Net(loss)/profitfrominvestingactivities 11 (703) 948 Shareofprofitfromequity-accountedinvestees 19 830 500 Profit before tax 18.592 23.255

Taxation 12 (2.870) (3.382)Profit for the year 15.722 19.873

Other comprehensive income

Items that will not be reclassified to profit or lossRevaluationofproperty,plantandequipment 14 (1.509) (290)

Items that are or may be reclassified to profit or lossCashflowhedges–effectiveportionofchangesinfairvalue (254) 812 Deferredtaxonrevaluationofproperties 12 (1.246) 389 Other comprehensive (loss)/income for the year (3.009) 911

Total comprehensive income for the year 12.713 20.784

Profit attributable to:Equityholdersoftheparent 15.722 19.873Non-controllinginterest - -

15.722 19.873

Total comprehensive income attributable to:Equityholdersoftheparent 12.713 20.784Non-controllinginterest - -

12.713 20.784

Basicanddilutedearningspershare(cents) 13 21,9 27,6


fortheyearended31December2018

COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


Note 2018 2017 Continuing operations €000 €000

Revenue 6 97.926 102.467Costofsales (70.944) (71.576)Gross profit 26.982 30.891

Otheroperatingincome 7 977 1.071Distributionexpenses (4.169) (4.510)Administrativeexpenses (3.799) (3.524)Otheroperatingexpenses (1.606) (1.678)Operating profit before financing costs 8 18.385 22.250

Financeincome 198 -Financeexpenses (114) (439)Net finance income/(cost) 10 84 (439)

Net(loss)/profitfrominvestingactivities 11 (333) 1.196Profit before tax 18.136 23.007

Taxation 12 (2.776) (3.384)

Profit for the year 15.360 19.623

Other comprehensive income

Items that will not be reclassified to profit or lossRevaluationofproperty,plantandequipment 14 (1.509) (290)

Items that are or may be reclassified to profit or lossCashflowhedges–effectiveportionofchangesinfairvalue (254) 812 Deferredtaxonrevaluationofproperties 12 (1.246) 389 Other comprehensive (loss)/income for the year (3.009) 911

Total comprehensive income for the year 12.351 20.534

Basicanddilutedearningspershare(cents) 13 21,4 27,3


CO

NS

OLI

DA

TED

STA

TEM

EN

T O

F C

HA

NG

ES

IN E

QU

ITY

fortheyearended31Decem

ber2018

The

note

s on

pag

es 4

4 to

86

form

an

inte

gral

par

t of

the

se fi

nanc

ial s

tate

men

ts

Shar

e ca

pita

lSh

are

prem

ium

Rev

alua

tion

rese

rve

Cas

h flo

w

hedg

eR

etai

ned

earn

ings

Tota

l equ

ity

attr

ibut

able

to

equi

ty h

olde

rs

of th

e pa

rent

Non

-co

ntro

lling

in

tere

stTo

tal

equi

ty€0

00

€000

€0

00

€000

€0

00

€000

€0

00

€000

At1January2017

30.932

45.388

44.337

(558)

113.922

234.021

-234.021

Profitfortheyear

--

--

19.873

19.873

-19.873

Othercom

prehensiveincome

--

99

812

-91

1 -

911

Totalcom

prehensiveincomefortheyear

--

99

812

19.873

20.784

-20.784

Dividends(note31)

--

--

(15.826)

(15.826)

-(15.826)

Transfer

--

(1.646)

-1.646

--

-A

t 31

Dec

embe

r 201

7 /

1 Ja

nuar

y 20

1830

.932

45

.388

42

.790

25

4 11

9.61

5 23

8.97

9 -

238.

979

Profitfortheyear

- -

- -

15.7

22

15.7

22

- 15

.722

Othercom

prehensiveloss

- -

(2.7

55)

(254

)-

(3.0

09)

- (3

.009

)

Totalcom

prehensiveincome/(loss)fortheyear

- -

(2.7

55)

(254

)15

.722

12

.713

-

12.7

13

Dividends(note31)

- -

- -

(18.

343)

(18.

343)

- (1

8.34

3)Transfer

- -

(1.7

93)

- 1.

793

- -

- A

t 31

Dec

embe

r 201

830

.932

45

.388

38

.242

-

118.

787

233.

349

- 23

3.34

9


CO

MPA

NY

STA

TEM

EN

T O

F C

HA

NG

ES

IN E

QU

ITY

fortheyearended31Decem

ber2018

The

note

s on

pag

es 4

4 to

86

form

an

inte

gral

par

t of

the

se fi

nanc

ial s

tate

men

ts

Shar

e ca

pita

lSh

are

prem

ium

Rev

alua

tion

rese

rve

Cas

h flo

w

hedg

eR

etai

ned

earn

ings

Tota

l eq

uity

€000

€0

00

€000

€0

00

€000

€0

00

At1January2017

30.932

45.388

44.449

(558)

113.845

234.056

Profitfortheyear

--

--

19.623

19.623

Othercom

prehensiveincome

--

99

812

-91

1 Totalcom

prehensiveincomefortheyear

--

99

812

19.623

20.534

Dividends(note31)

--

--

(15.826)

(15.826)

Transfer

--

(1.646)

-1.646

-A

t 31

Dec

embe

r 201

7 /

1 Ja

nuar

y 20

1830

.932

45

.388

42

.902

25

4 11

9.28

8 23

8.76

4

Profitfortheyear

- -

- -

15.3

60

15.3

60

Othercom

prehensiveloss

- -

(2.7

55)

(254

)-

(3.0

09)

Totalcom

prehensiveincome/(loss)fortheyear

- -

(2.7

55)

(254

)15

.360

12

.351

Dividends(note31)

- -

- -

(18.

343)

(18.

343)

Transfer

- -

(1.7

93)

- 1.

793

- A

t 31

Dec

embe

r 201

830

.932

45

.388

38

.354

-

118.

098

232.

772

Com

panieswhichdonotdistribute70%

oftheirprofitsaftertax,asdefinedbytheSp

ecialC

ontributionfortheDefenceoftheRepublicLaw

,withintw

oyearsaftertheendofthere

levant

taxyear,w

illbedeemedtohavedistributedasdividends70%oftheseprofits.Specialcontributiontothedefencefundat17%

willbepayableonsuchdeemeddividendstotheextentthat

theshareholders(com

paniesandindividuals)areCyprustaxresidents.Theamountofdeemeddistributionisreducedbyanyactualdividendspaidoutoftheprofitsoftherelevantyearat

anytim

e.ThisspecialcontributiontothedefencefundispayablebytheCom

panyfortheaccountoftheshareholders.


CONSOLIDATED STATEMENT OF CASH FLOWSfortheyearended31December2018


Note 2018 2017 €000 €000

Cash flows from operating activities

Profitfortheyear 15.722 19.873Adjustmentsfor:Depreciationandamortisationcharges 14,16 14.555 13.788Loss/(profit)fromdisposalofinvestmentproperty 1.749 (104)Changeinfairvalueonfinancialassetsthroughothercomprehensiveincome 11 14 (56)Changeinfairvalueofinvestmentproperty 15 (986) (711)Interestincome 10 (198) -Dividendincome 11 (5) (3)Interestexpense 10 542 569 Shareofprofitofequity-accountedinvestees 19 (830) (500)Lossondisposalofproperty,plantandequipment 30 4 Incometaxexpense 12 2.870 3.382

Operating profit before changes in working capital and provisions 33.463 36.242Changes in:Tradeandotherreceivables 38 880 Inventories (1.249) (5.886)Tradeandotherpayables (236) 1.445Provisions - (100)

Cash generated from operating activities 32.016 32.581Interestpaid (579) (605)Taxpaid (1.011) (1.363)Net cash inflow from operating activities 30.426 30.613

Cash flows to investing activitiesProceedsfromdisposalofproperty,plantandequipment 178 22 Proceedsfromdisposalofinvestmentproperty 1.490 560 Interestreceived 198 -Dividendsreceived 310 128 Acquisitionofproperty,plantandequipment 14 (5.897) (13.893)Acquisitionofintangibles 16 - (59)Acquisitionofequity-accountedinvestee 19 (169) -

Net cash used in investing activities (3.890) (13.242)

Cash flows to financing activitiesRepaymentofloans (7.907) (7.907)Dividendspaid (18.343) (15.826)

Net cash used in financing activities (26.250) (23.733)

Net increase/(decrease) in cash and cash equivalents 286 (6.362)Cashandcashequivalentsat1January (27) 6.335Cash and cash equivalents at 31 December 24 259 (27)


COMPANY STATEMENT OF CASH FLOWSfortheyearended31December2018


Note 2018 2017 €000 €000

Cash flows from operating activities

Profitfortheyear 15.360 19.623Adjustmentsfor:Depreciationandamortisationcharges 14,16 14.555 13.788Loss/(profit)fromdisposalofinvestmentproperty 1.749 (104)Changeinfairvalueonfinancialassetsthroughothercomprehensiveincome 11 14 (56)Changeinfairvalueofinvestmentproperty 15 (1.051) (665)Interestincome 10 (198) -Dividendincome 11 (310) (297)Interestexpense 10 542 569 Lossondisposalofproperty,plantandequipment 30 4 Incometaxexpense 12 2.776 3.384

Operating profit before changes in working capital and provisions 33.467 36.246Changes in:Tradeandotherreceivables 34 873 Inventories (1.249) (5.886)Tradeandotherpayables (236) 1.448Provisions - (100)

Cash generated from operations 32.016 32.581Interestpaid (579) (605)Taxpaid (1.011) (1.363)Net cash inflow from operating activities 30.426 30.613

Cash flows to investing activitiesProceedsfromdisposalofproperty,plantandequipment 178 22 Proceedsfromdisposalofinvestmentproperty 1.490 560 Interestreceived 198 -Dividendsreceived 310 128 Acquisitionofproperty,plantandequipment 14 (5.897) (13.893)Acquisitionofintangibles 16 - (59)Acquisitionofsharesinassociatecompany 19 (169) -

Net cash used in investing activities (3.890) (13.242)

Cash flows to financing activitiesRepaymentofloans (7.907) (7.907)Dividendspaid (18.343) (15.826)Net cash used in financing activities (26.250) (23.733)

Net increase/(decrease) in cash and cash equivalents 286 (6.362)Cashandcashequivalentsat1January (27) 6.335Cash and cash equivalents at 31 December 24 259 (27)


NOTES TO THE FINANCIAL STATEMENTSfortheyearended31December2018

1. Reporting entity and principal activities

"ΤσιμεντοποιίαΒασιλικούΔημόσιαΕταιρείαΛτδ",translatedinEnglishas"VassilikoCementWorksPublicCompanyLtd"(the'Company')isacompanydomiciledinCyprusandisapubliccompanyinaccordancewiththerequirementsoftheCyprusCompaniesLaw,Cap.113andtheCyprusStockExchangeLawandRegulations.TheCompany'sregisteredofficeisat1AKyriakosMatsisAvenue,CY-1082Nicosia,Cyprus.

The consolidated financial statements of the Company as at and for the year ended 31 December 2018 comprise theCompanyanditssubsidiaries(togetherreferredtoasthe'Group')andtheGroup'sinterestinassociates.TheCompany'sandtheConsolidatedFinancialStatementswereauthorisedforissuebytheBoardofDirectorson11April2019.

Principal activitiesTheGroup'sprincipalactivityistheproductionofclinkerandcement,whicharesoldinthelocalandinternationalmarkets.TheGroupalsohasapresenceinaggregatesquarryingthroughitssubsidiaryandassociatecompanies.

2. Basis of preparation

Statement of complianceTheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards("IFRS")asadoptedbytheEuropeanUnion("EU").Inaddition,thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCyprusCompaniesLaw,Cap.113,andtheCyprusStockExchangeLawandRegulations.

Basis of measurementTheconsolidatedfinancialstatementshavebeenpreparedonthehistoricalcostbasis,modifiedtoincludetherevaluationtofairvalueoflandandbuildings,financialassetsatfairvaluethroughothercomprehensiveincomeandinvestmentproperty.

Functional and presentation currencyTheconsolidatedfinancialstatementsasatandfortheyearended31December2018arepresentedinEuro(€),whichistheCompany'sfunctionalcurrency.Allamountshavebeenroundedtothenearestthousand,unlessotherwiseindicated.

Use of estimates and judgmentsThepreparationoftheconsolidatedfinancialstatementsinaccordancewithIFRSrequiresfrommanagementtheexerciseofjudgment,tomakeestimatesandassumptionsthatinfluencetheapplicationofaccountingprinciplesandtherelatedamountsofassetsandliabilities,incomeandexpenses.Theestimatesandunderlyingassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthataredeemedtobereasonablebasedonknowledgeavailableatthattime.Actualresultsmaydeviatefromsuchestimates.

The estimates and underlying assumptions are reviewed on a continuous basis. Revisions in accounting estimates arerecognisedintheperiodduringwhichtheestimateisrevised,iftheestimateaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiods,iftherevisionaffectsthepresentaswellasfutureperiods.



2. Basis of preparation (continued)

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsaredescribedbelow:

a. Income taxesSignificantjudgmentisrequiredindeterminingtheprovisionforincometaxes.Therearetransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGrouprecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

b. Measurement of fair valuesAnumberoftheGroup'saccountingpoliciesanddisclosuresrequirethemeasurementoffairvalues,forbothfinancialandnon-financialassetsandliabilities.TheGrouphasanestablishedcontrolframeworkwithrespecttothemeasurementoffairvalues.

Thisincludesavaluationteamthathasoverallresponsibilityforoverseeingallsignificantfairvaluemeasurements,includingLevel 3 fair values, and reports directly to the Chief Financial Officer. The valuation team regularly reviews significantunobservableinputsandvaluationadjustments.Ifthirdpartyinformation,suchasbrokerquotesorpricingservices,isusedtomeasurefairvalues,thenthevaluationteamassessestheevidenceobtainedfromthethirdpartiestosupporttheconclusionthatsuchvaluationsmeettherequirementsofIFRS,includingthelevelinthefairvaluehierarchyinwhichsuchvaluationsshouldbeclassified.SignificantvaluationissuesarereportedtotheGroup'sAuditCommittee.

Whenmeasuringthefairvalueofanassetoraliability,theGroupusesobservablemarketdataasfaraspossible.Fairvaluesarecategorizedintodifferentlevelsinafairvaluehierarchybasedontheinputsusedinthevaluationtechniquesasfollows:

- Level1-quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities. - Level2-inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices).

- Level3-inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Iftheinputsusedtomeasurethefairvalueofanassetoraliabilityfallintodifferentlevelsofthefairvaluehierarchy,thenthefairvaluemeasurementiscategorizedinitsentiretyinthesamelevelofthefairvaluehierarchyasthelowestlevelinputthatissignificanttotheentiremeasurement.

TheGrouprecognisestransfersbetweenlevelsofthefairvaluehierarchyattheendofthereportingperiodduringwhichthechangehasoccurred.

c. Provision for bad and doubtful debtsTheGroupreviewsitstradeandotherreceivablesforevidenceoftheirrecoverability.Suchevidenceincludesthecustomer'spaymentrecordandthecustomer'soverallfinancialposition.Ifindicationsofirrecoverabilityexist,therecoverableamountisestimatedandarespectiveprovisionforbadanddoubtfuldebtsismade.Theamountoftheprovisionischargedthroughtheprofitorloss.Thereviewofcreditriskiscontinuousandthemethodologyandassumptionsusedforestimatingtheprovisionarereviewedregularlyandadjustedaccordingly.



2. Basis of preparation (continued)

d. Impairment of investments in subsidiaries/associatesThe Company periodically evaluates the recoverability of investments in subsidiaries/associates whenever indicators ofimpairment are present. Indicators of impairment include such itemsasdeclines in revenues, earningsor cash flowsormaterialadversechangesintheeconomicorpoliticalstabilityofaparticularcountry,whichmayindicatethatthecarryingamountofanassetisnotrecoverable.Iffactsandcircumstancesindicatethatinvestmentinsubsidiaries/associatesmaybeimpaired,theestimatedfutureundiscountedcashflowsassociatedwiththesesubsidiaries/associateswouldbecomparedtotheircarryingamountstodetermineifawritedowntofairvalueisnecessary.

e. Impairment of goodwillDeterminingwhether goodwill is impaired requires an estimation of the value in use of the cash-generating units of theCompanyonwhichthegoodwillhasbeenallocated.ThevalueinusecalculationrequirestheCompanytoestimatethefuturecashflowsexpectedtoarisefromthecash-generatingunitsusingasuitablediscountrateinordertocalculatethepresentvalue.

3. Changes in accounting policies

TheGrouphasadoptedthefollowingnewstandards,amendmentstoastandardandnewinterpretationswithadateofinitialapplicationof1January2018.Thenatureandeffectsofthechangesareexplainedbelow.

IFRS 15 Revenue from Contracts with Customers:

• IFRS15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised.ItreplacedIAS18Revenue,IAS11ConstructionContractsandrelatedinterpretations.UnderIFRS15,revenueisrecognisedwhenacustomerobtainscontrolofthegoodsorservices.Determiningthetimingofthetransferofcontrol-atapointintimeorovertime-requiresjudgement.

• TheGrouphasadoptedIFRS15usingthecumulativeeffectmethod(withoutpracticalexpedients),withtheeffectofinitiallyapplyingthisstandardrecognisedatthedateofinitialapplication(1January2018).

• DuetothetransitionmethodschosenbytheGroupinapplyingthesestandards,comparativeinformationthroughoutthesefinancialstatementshasnotbeenrestatedtoreflecttherequirementsofthenewstandards

• Accordingly,theinformationpresentedfor2017hasnotbeenrestatedanditispresentedaspreviouslyreportedunderIAS18,IAS11andrelatedinterpretations.Additionally, thedisclosurerequirements inIFRS15havenotgenerallybeenappliedtocomparativeinformation.

• Theadoptionof IFRS15 in theFinancialStatementsof theGrouphasnot resulted in significant changes in theopeningretainedearningsandintherevenuerecognition.



3. Changes in accounting policies (continued)

IFRS 9 Financial Instruments:

IFRS9setsoutrequirementsforrecognisingandmeasuringfinancialassets,financialliabilitiesandsomecontractstobuyorsellnon-financialitems.ThisstandardreplacesIAS39FinancialInstruments:RecognitionandMeasurement.AsaresultoftheadoptionofIFRS9,theGrouphasadoptedconsequentialamendmentstoIAS1PresentationofFinancialStatements,whichrequireimpairmentoffinancialassetstobepresentedinaseparatelineiteminthestatementofprofitorlossandOCI.Previously,theGroup'sapproachwastoincludetheimpairmentoftradereceivablesinotheroperatingexpenses.

Additionally,theGrouphasadoptedconsequentialamendmentstoIFRS7FinancialInstruments:Disclosuresthatareappliedtodisclosuresabout2018buthavenotbeengenerallyappliedtocomparativeinformation.

Thereisnoeffectontheopeningretainedearningson1January2018fromtheadoptionofIFRS9.

Classification and measurement of financial assets and financial liabilities

IFRS9containsthreeprincipalclassificationcategoriesforfinancialassets:measuredatamortisedcost,FVOCIandFVTPL.

TheclassificationoffinancialassetsunderIFRS9isgenerallybasedonthebusinessmodel inwhichafinancialasset ismanagedanditscontractualcashflowcharacteristics.IFRS9eliminatesthepreviousIAS39categoriesofheldtomaturity,loansandreceivablesandavailableforsale.UnderIFRS9,derivativesembeddedincontractswherethehostisafinancialassetinthescopeofthestandardareneverseparated.Instead,thehybridfinancialinstrumentasawholeisassessedforclassification.

IFRS9largelyretainstheexistingrequirementsinIAS39fortheclassificationandmeasurementoffinancialliabilities.

ForanexplanationofhowtheGroupclassifiesandmeasuresfinancialinstrumentsandaccountsforrelatedgainsandlossesunderIFRS9,seenote4“Significantaccountingpolicies”.

ThefollowingtableandtheaccompanyingnotesbelowexplaintheoriginalmeasurementcategoriesunderIAS39andthenewmeasurementcategoriesunder IFRS9 foreachclassof theGroup'sfinancialassetsandfinancial liabilitiesasat1January2018.TheeffectofadoptingIFRS9onthecarryingamountsoffinancialassetsat1January2018relatessolelytothenewimpairmentrequirements.




Group

Original classification under IAS 39

New classification under IFRS9

Original carrying amount

under IAS39

New carrying amount

under IFRS9

Financial assets €000 €000

Tradeandotherreceivables Loansandreceivables Amortisedcost 6.362 6.362

Equitysecurities Availableforsale FairValuethroughOtherComprehensiveIncome 4.423 4.423

Cashandcashequivalents Loansandreceivables Amortisedcost 259 259

Total financial assets 11.044 11.044

Financial liabilities

Tradeandotherpayables Otherfinancialliabilities Otherfinancialliabilities 7.019 7.019

Securedbankloans Otherfinancialliabilities Otherfinancialliabilities 23.062 23.062

Bankoverdraft Otherfinancialliabilities Otherfinancialliabilities - -

Total financial liabilities 30.081 30.081

Company

Original classification under IAS 39

New classification under IFRS9

Original carrying amount

under IAS39

New carrying amount

under IFRS9

Financial assets €000 €000

Tradeandotherreceivables Loansandreceivables Amortisedcost 6.871 6.871

Equitysecurities Availableforsale FairValuethroughOtherComprehensiveIncome 3.499 3.499

Cashandcashequivalents Loansandreceivables Amortisedcost 259 259

Totalfinancialassets 10.629 10.629

Financial liabilities

Tradeandotherpayables Otherfinancialliabilities Otherfinancialliabilities 6.966 6.966

Securedbankloans Otherfinancialliabilities Otherfinancialliabilities 23.062 23.062

Bankoverdraft Otherfinancialliabilities Otherfinancialliabilities - -

Total financial liabilities 30.028 30.028




Impairement of financial assetsIFRS9replacesthe'incurredloss'modelinIAS39withan'expectedcreditloss'(ECL)model.Thenewimpairmentmodelappliesto:-financialassetsmeasuredatamortisedcost;-debtinvestmentsatFVOCI;-contractassets;-leasereceivables;

Thenewimpairmentmodeldoesnotapplytoinvestmentsinequityinstruments.

UnderIFRS9,creditlossesarerecognisedearlierthanunderIAS39.

4. Significant accounting policies

The following accounting policies have been applied consistently to all years presented in these consolidated financialstatementsandhavebeenappliedconsistentlybytheGroupentities.

Adoption of new and revised IFRS and Interpretations as adopted by the EU:Asfrom1January2018,theGroupadoptedallchangestoInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEU,whicharerelevant to itsoperations.ThisadoptiondidnothaveamaterialeffectontheconsolidatedfinancialstatementsoftheGroupexceptfortheadoptionofIFRS9FinancialInstrumentsandIFRS15RevenuefromContractswithCustomers(seeNote3).

ThefollowingStandards,AmendmentstoStandardsandInterpretationshavebeenissuedbytheInternationalAccountingStandardsBoard (IASB)butarenotyeteffective forannualperiodsbeginningon1January2018.ThosewhichmayberelevanttotheGrouparesetoutbelow.TheGroupdoesnotplantoadopttheseStandardsearly.

i. Standards and Interpretations adopted by the EU• IFRS9''FinancialInstruments''(effectiveforannualperiodsbeginningonorafter1January2018).InJuly2014,theIAS

issuedthefinalversionofIFRS9,whichreplacestheexistingguidanceinIAS39''FinancialInstruments:RecognitionandMeasurement''.IFRS9includesrevisedguidanceontheclassificationandmeasurementoffinancialinstruments,anewexpectedcreditloss(ECL)modelforcalculatingimpairmentonfinancialassets,andnewgeneralhedgeaccountingrequirements.IFRS9largelyretainstheexistingrequirementsinIAS39fortheclassificationoffinancialliabilities.ItalsocarriesforwardtheguidanceonrecognitionandderecognitionoffinancialinstrumentsfromIAS39.

Classification Financial assets

IFRS9containsanewclassificationandmeasurementapproachforfinancialassetsthatreflectsthebusinessmodelinwhichassetsaremanagedandtheircashflowcharacteristics.IFRS9containsthreeprincipalclassificationcategoriesforfinancialassets:measuredatamortisedcost,FVOCIandFVTPL.ThestandardeliminatestheexistingIAS39categoriesofheldtomaturity,loansandreceivablesandavailableforsale.UnderIFRS9,derivativesembeddedincontractswherethehostisafinancialassetinthescopeofthestandardareneverbifurcated.Instead,thehybridfinancialinstrumentasawholeisassessedforclassification.



4. Significant accounting policies (continued)

Impairment Financial assets and contract assets

IFRS9 replaces the 'incurred loss'model in IAS39witha forward lookingECLmodel.Thiswill requireconsiderablejudgementabouthowchangesineconomicfactorsaffectECLs,whichwillbedeterminedonaprobabilityweightedbasis.ThenewimpairmentmodelwillapplytofinancialassetsmeasuredatamortisedcostorFVOCI,exceptforinvestmentsinequityinstruments,andtocontractassets.

UnderIFRS9,lossallowanceswillbemeasuredoneitherofthefollowingbases: - 12monthECLs:theseareECLsthatresultfrompossibledefaulteventswithinthe12monthsafterthereportingdate;and

- lifetimeECLs:theseareECLsthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.

LifetimeECLmeasurementappliesifthecreditriskofafinancialassetatthereportingdatehasincreasedsignificantlysinceinitialrecognitionand12monthECLmeasurementappliesif ithasnot.Anentitymaydeterminethatafinancialasset'screditriskhasnotincreasedsignificantlyiftheassethaslowcreditriskatthereportingdate.However,lifetimeECLmeasurementalwaysappliesfortradereceivablesandcontractassetswithoutasignificantfinancingcomponent;theentityhaschosentoapplythispolicyalsofortradereceivablesandcontractassetswithasignificantfinancingcomponent.Thereisarebuttablepresumptionthatdefaultdoesnotoccurlaterthanwhenafinancialassetis90dayspastdueunlessanentityhasreasonableandsupportableinformationtocorroborateamorelaggingdefaultcriterion.

• IFRS15''RevenuefromContractswithCustomers''(effectiveforannualperiodsbeginningonorafter1January2018).TheapplicationofthestandardisnotexpectedtohaveanimpactonthefinancialstatementsoftheGroup

IFRS15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised.Itreplacesexistingrevenuerecognitionguidance,includingIAS18'Revenue',IAS11'ConstructionContracts'andIFRIC13'CustomerLoyaltyPrograms'.Itprovidesaprinciplesbasedapproachforrevenuerecognition,andintroducestheconceptofrecognizingrevenueforperformanceobligationsastheyaresatisfied.Therecognitionofsuchrevenueisinaccordancewithfivestepsto:1)identifyingthecontractwiththecustomer;2)identifyingeachoftheperformanceobligationsincludedinthecontract;3)determiningthetransactionprice;4)allocatingthetransactionpricetotheperformanceobligationsinthecontract;and5)recognisingrevenueaseachperformanceobligationissatisfied.

• IFRS15(Clarifications)''RevenuefromContractswithCustomers''(effectiveforannualperiodsbeginningonorafter1January2018).

Clarifications to IFRS 15 provide additional application guidance but do not change the underlying principles of thestandard.Theclarificationsrelateprincipally to identifyingperformanceobligations(step2),accounting for licensesofintellectualproperty(step5)andagentvsprincipalconsiderations.Theclarificationsalsointroduceadditionalpracticalexpedientsontransitioninrelationtomodifiedandcompletedcontracts.




• IFRS16''Leases''(effectiveforannualperiodsbeginningonorafter1January2019).IFRS16 replacesexisting leasesguidance including IAS17 'Leases', IFRIC4Determiningwhether anArrangementcontainsaLease,SIC15'OperatingLeases'IncentivesandSIC27'EvaluatingtheSubstanceofTransactionsInvolvingtheLegalFormofaLease'.Thestandardintroducesasingle,onbalancesheetleaseaccountingmodelforlessees.IFRS16appliesacontrolmodeltotheidentificationofleases,distinguishingbetweenleasesandservicecontractsonthebasisofwhetherthereisanidentifiedassetcontrolledbythecustomer.Thepreviousdistinctionbetweenoperatingandfinanceleasesisremovedforlessees.Instead,alesseerecognisesarightofuseassetrepresentingitsrighttousetheunderlyingassetandaleaseliabilityrepresentingitsobligationtomakeleasepayments.Therearerecognitionexemptionsforshorttermleasesandleasesoflowvalueitems.Lessoraccountingremainssimilartothecurrentstandardi.e.lessorscontinuetoclassifyleasesasfinanceoroperatingleases.

Basedontheassessmentundertakentodate,thetotaleffectonthestatementoffinancialpositionontheCompany’sandGroup’sfinancialstatements,fromtheadoptionofthestandardisexpectedtobe€112.000.

• AnnualImprovementstoIFRSs20142016Cycle(effectiveforannualperiodsbeginningonorafter1January2018(IFRS1andIAS28)).TheamendmentstoIFRS1removetheoutdatedexemptionsforfirsttimeadoptersofIFRS.TheamendmentstoIAS28clarifythattheelectiontomeasureatfairvaluethroughprofitorlossaninvestmentinassociateorajointventurethatisheldbyanentitythatisaventurecapitalorganisation,orotherqualifyingentity,isavailableforeachinvestmentinanassociateorjointventureonaninvestmentbyinvestmentbasis,uponinitialrecognition.Additionally,anoninvestmententityinvestormayelecttoretainthefairvalueaccountingappliedbyaninvestmententityassociateorinvestmententityjointventuretoitssubsidiaries(electioncanbemadeseparatelyforeachinvestmententityassociateorjointventure).

• IFRS 2 (Amendments): Classification andMeasurement of Share based Payment Transactions (effective for annualperiodsbeginningonorafter1January2018).

Theamendmentscoverthreeaccountingareas:a)measurementofcashsettledsharebasedpayments;b)classificationofsharebasedpaymentssettlednetoftaxwithholdings;andc)accountingforamodificationofasharebasedpaymentfromcashsettled toequitysettled.Thenewrequirementscanaffect theclassificationand/ormeasurementsof thesearrangementsandpotentiallythetimingandamountofexpenserecognisedfornewandoutstandingawards.

• IAS28(Amendments):LongtermInterestsinAssociatesandJointVentures(effectiveforannualperiodsbeginningonorafter1January2019).Theamendmentsclarify thatanentityapplies IFRS9 ''Financial Instruments'', including itsimpairmentrequirements,tolongterminterestsinanassociateorjointventurethatformpartofthenetinvestmentintheassociateorjointventure.

• IAS40(Amendments):''TransfersofInvestmentProperty''(effectiveforannualperiodsbeginningonorafter1January2018).Theamendmentsclarifytherequirementsontransfersto,orfrom,investmentproperty.Atransferismadewhen,andonlywhen,thereisanactualchangeinusei.e.anassetmeetsorceasestomeetthedefinitionofinvestmentpropertyandthereisevidenceofthechangeinuse.Achangeinmanagementintentionalonedoesnotsupportatransfer.Inaddition,theamendmentsclarifythattherevisedexamplesofevidenceofachangeinuseintheamendedversionofIAS40arenotexhaustive.




• AmendmentstoIFRS9:PrepaymentFeatureswithNegativeCompensation(effectiveforannualperiodsbeginningonorafter1January2019).InOctober2017,theIASBissued''PrepaymentFeatureswithNegativeCompensation(AmendmentstoIFRS9)''.Theamendments address the issue that under pre amended IFRS9, financial assetswith such featureswould probablynotmeet theSPPI criterion and as suchwould bemeasured at fair value through profit or loss.The IASBbelievesthat thiswould not be appropriate becausemeasuring themat amortised cost provides useful information about theamount,timinganduncertaintyoftheirfuturecashflows.Financialassetswiththeseprepaymentfeaturescanthereforebemeasuredat amortisedcostor fair value throughother comprehensive incomeprovided that theymeet theotherrelevantrequirementsofIFRS9.Thefinalamendmentsalsocontainaclarificationintheaccountingforamodificationorexchangeofafinancialliabilitymeasuredatamortisedcostthatdoesnotresultinthederecognitionofthefinancialliability.Basedontheclarification,anentityrecognisesanyadjustmenttotheamortisedcostofthefinancialliabilityarisingfromamodificationorexchangeinprofitorlossatthedateofthemodificationorexchange.

• AnnualImprovementstoIFRSs20152017Cycle(effectiveforannualperiodsbeginningonorafter1January2019).

InDecember2017,theIASBpublishedAnnualImprovementstoIFRSs20152017Cycle,containingthefollowingamendmentstoIFRSs:

IFRS3''BusinessCombinations''andIFRS11''JointArrangements''.TheamendmentstoIFRS3clarifythatwhenanentityobtainscontrolofabusinessthatisajointoperation,thenthetransactionisabusinesscombinationachievedinstagesandtheacquiringpartyremeasuresthepreviouslyheldinterestinthatbusinessatfairvalue.

TheamendmentstoIFRS11clarifythatwhenanentitymaintains(orobtains)jointcontrolofabusinessthatisajointoperation,theentitydoesnotremeasurepreviouslyheldinterestsinthatbusiness.

IAS12''IncomeTaxes'':theamendmentsclarifythatallincometaxconsequencesofdividends(i.e.distributionofprofits)arerecognisedconsistentlywiththetransactionsthatgeneratedthedistributableprofitsi.e.inprofitorloss,OCIorequity.

IAS23 ''BorrowingCosts'': theamendmentsclarify that ifanyspecificborrowingremainsoutstandingafter therelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalisationrateongeneralborrowings.

• IFRIC22''ForeignCurrencyTransactionsandAdvanceConsideration''(effectiveforannualperiodsbeginningonorafter1January2018).

Theinterpretationclarifiesthatthetransactiondate,forthepurposeofdeterminingtheexchangerate,isthedateofinitialrecognition of theprepayment or deferred incomearising from theadvance consideration. For transactions involvingmultiplepaymentsorreceipts,eachpaymentorreceiptgivesrisetoaseparatetransactiondate.




• IFRIC23''UncertaintyoverIncomeTaxTreatments''(effectiveforannualperiodsbeginningonorafter1January2019).

IFRIC 23clarifiestheaccountingforincometaxtreatmentsthathaveyettobeacceptedbytaxauthorities,whilstalsoaiming to enhance transparency.The key test iswhether it is probable that the tax authoritywill accept the chosentaxtreatment,ontheassumptionthattaxauthoritieswillhavefullknowledgeofallrelevantinformationinassessingaproposedtaxtreatment.Theuncertaintyisreflectedusingthemeasurethatprovidesthebetterpredictionoftheresolutionoftheuncertaintybeingeitherthemostlikelyamountortheexpectedvalue.Theinterpretationalsorequirescompaniestoreassessthejudgementsandestimatesappliediffactsandcircumstanceschange.IFRIC23doesnotintroduceanynewdisclosuresbutreinforcestheneedtocomplywithexistingdisclosurerequirementsinrelationtojudgementsmade,assumptionsandestimatesused,andthepotentialimpactofuncertaintiesthatarenotreflected.

ii. Standards and Interpretations not adopted by the EU• ''AmendmentstoReferencestotheConceptualFrameworkinIFRSStandards''(effectiveforannualperiodsbeginningon

orafter1January2020).InMarch2018theIASBissuedacomprehensivesetofconceptsforfinancialreporting,therevised''ConceptualFrameworkforFinancialReporting''(ConceptualFramework),replacingthepreviousversionissuedin2010.Themainchangestotheframework'sprincipleshaveimplicationsforhowandwhenassetsandliabilitiesarerecognisedandderecognisedinthefinancialstatements,whilesomeoftheconceptsintherevisedFrameworkareentirelynew(suchasthe''practicalability''approach to liabilities''.Toassistcompanieswith the transition, the IASB issuedaseparateaccompanyingdocument''AmendmentstoReferencestotheConceptualFrameworkinIFRSStandards''.ThisdocumentupdatessomereferencestopreviousversionsoftheConceptualFrameworkinIFRSStandards,theiraccompanyingdocumentsandIFRSPracticeStatements.

• IFRS 3 “BusinessCombinations”(amendments):DefinitionofaBusiness(effectiveforannualperiodsbeginningonorafter1January2020).Theamendmentsnarrowandclarifythedefinitionofabusiness.Theyalsopermitasimplifiedassessmentofwhetheranacquiredsetofactivitiesandassetsisagroupofassetsratherthanabusiness.Theamendeddefinitionemphasisesthattheoutputofabusinessistoprovidegoodsandservicestocustomers,whereasthepreviousdefinitionfocusedonreturnsintheformofdividends,lowercostsorothereconomicbenefitstoinvestorsandothers.Inadditiontoamendingthewordingofthedefinition,theBoardhasprovidedsupplementaryguidance.Distinguishingbetweenabusinessandagroupofassetsisimportantbecauseanacquirerrecognisesgoodwillonlywhenacquiringabusiness.

• IAS1andIAS8(amendments):DefinitionofMaterial(effectiveforannualperiodsbeginningonorafter1January2020).Theamendmentsclarifyandalign thedefinitionof 'material'andprovideguidance tohelp improveconsistency in theapplicationofthatconceptwheneveritisusedinIFRSStandards.Theamendmentsincludedefinitionguidancethatuntilnowhas featuredelsewhere in IFRSStandards. Inaddition, theexplanationsaccompanying thedefinitionhavebeenimproved.Finally,theamendmentsensurethatthedefinitionofmaterialisconsistentacrossallIFRSStandards.

Olddefinition:Omissionsormisstatementsof itemsarematerial if theycould, individuallyorcollectively, influencetheeconomicdecisionsthatusersmakeonthebasisofthefinancialstatements(IAS1PresentationofFinancialStatements).

Newdefinition:Informationismaterialifomitting,misstatingorobscuringitcouldreasonablybeexpectedtoinfluencethedecisionsthattheprimaryusersofgeneralpurposefinancialstatementsmakeonthebasisofthosefinancialstatements,whichprovidefinancialinformationaboutaspecificreportingentity.




• IFRS10(Amendments)andIAS28(Amendments)''SaleorContributionofAssetsbetweenanInvestoranditsAssociateorJointVenture''(effectivedatepostponedindefinitely).TheamendmentsaddressanacknowledgedinconsistencybetweentherequirementsinIFRS10andthoseinIAS28,indealingwiththesaleorcontributionofassetsbetweenaninvestoranditsassociateorjointventure.Themainconsequenceoftheamendmentsisthatafullgainorlossisrecognisedwhenatransactioninvolvesabusiness(asdefinedinIFRS3).Apartialgainorlossisrecognisedwhenatransactioninvolvesassetsthatdonotconstituteabusiness.InDecember2015,theIASBpostponedtheeffectivedateofthisamendmentindefinitelypendingtheoutcomeofitsresearchprojectontheequitymethodofaccounting.

TheBoardofDirectorsexpectsthattheadoptionofthesestandardsorinterpretationsinfutureperiodswillnothaveamaterialeffectontheconsolidatedfinancialstatementsoftheGroup.

Basis of consolidation

i. Business combinationsBusinesscombinationsareaccountedforusingtheacquisitionmethodasattheacquisitiondate,whichisthedateonwhichcontrolistransferredtotheGroup.Controlisthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Inassessingcontrol,theGrouptakesintoconsiderationpotentialvotingrightsthatcurrentlyareexercisable.

TheGroupmeasuresgoodwillattheacquisitiondateas:•thefairvalueoftheconsiderationtransferred;plus•therecognisedamountofanynon-controllinginterestsintheacquiree;plus•ifthebusinesscombinationisachievedinstages,thefairvalueofthepre-existingequityinterestintheacquiree;less•thenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.

Whentheexcessisnegative,abargainpurchasegainisrecognisedimmediatelyinprofitorloss.

Theconsiderationtransferreddoesnotincludeamountsrelatedtothesettlementofpre-existingrelationships.Suchamountsgenerallyarerecognisedinprofitorloss.

Transactionscosts,otherthanthoseassociatedwiththeissueofdebtorequitysecurities,thattheGroupincursinconnectionwithabusinesscombinationareexpensedasincurred.

ii. Acquisitions of non-controlling interestsAcquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners andthereforenogoodwillisrecognisedasaresult.Adjustmentstonon-controllinginterestsarisingfromtransactionsthatdonotinvolvethelossofcontrolarebasedonaproportionateamountofthenetassetsofthesubsidiary.




iii. SubsidiariesSubsidiaries are entities controlled by theGroup. Control existswhere theGroup is exposed, or has rights, to variablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.The financial statements of subsidiaries are included in the consolidated financial statements from the date that controlcommencesuntilthedatethatcontrolceases.

Wherenecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheminlinewiththeaccountingpoliciesoftheGroup.

iv. Loss of controlOnthelossofcontrol,theGroupde-recognisestheassetsandliabilitiesofthesubsidiary,anynon-controllinginterestsandtheothercomponentsofequityrelatedtothesubsidiary.Anysurplusordeficitarisingonthelossofcontrolisrecognisedinprofitorloss.IftheGroupretainsanyinterestintheprevioussubsidiary,thensuchinterestismeasuredatfairvalueatthedatethatcontrolislost.Subsequently,itisaccountedforasanequity-accountedinvesteeorasanavailable-for-salefinancialassetdependingonthelevelofinfluenceretained.

v. Investments in associates and jointly controlled entities (equity-accounted investees)AssociatesarethoseentitiesinwhichtheGrouphassignificantinfluencebutnocontrolorjointcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee.Investmentsinassociatesareinitiallyrecognisedatcost,whichincludestransactionscosts,andareaccountedforusingtheequitymethod.

The resultsandassetsand liabilitiesofassociatesare incorporated in theseconsolidatedfinancial statementsusing theequitymethodofaccounting,exceptwhen the investment isclassifiedasheld forsale, inwhichcase it isaccounted forinaccordancewith IFRS5Non-currentAssetsHeld forSaleandDiscontinuedOperations.Under theequitymethod,aninvestment inanassociate is initially recognised in the consolidatedstatementof financial positionat costandadjustedthereaftertorecognisetheGroup'sshareoftheprofitorlossandothercomprehensiveincomeoftheassociate.WhentheGroup'sshareoflossesofanassociateexceedstheGroup'sinterestinthatassociate(whichincludesanylong-termintereststhat,insubstance,formpartoftheGroup'snetinvestmentintheassociate),theGroupdiscontinuesrecognisingitsshareoffurtherlosses.AdditionallossesarerecognisedonlytotheextentthattheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociate.

Anyexcessof thecostofacquisitionover theGroup'sshareof thenet fairvalueof the identifiableassets, liabilitiesandcontingentliabilitiesofanassociaterecognisedatthedateofacquisitionisrecognisedasgoodwill,whichisincludedwithinthecarryingamountoftheinvestment.AnyexcessoftheGroup'sshareofthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofacquisition,afterreassessment,isrecognisedimmediatelyinprofitorloss.

TherequirementsofIAS39areappliedtodeterminewhetheritisnecessarytorecogniseanyimpairmentlosswithrespecttotheGroup'sinvestmentinanassociate.Whennecessary,theentirecarryingamountoftheinvestment(includinggoodwill)istestedforimpairmentinaccordancewithIAS36ImpairmentofAssetsasasingleassetbycomparingitsrecoverableamount(higherofvalueinuseandfairvaluelesscoststosell)withitscarryingamount.Anyimpairmentlossrecognisedformspartofthecarryingamountoftheinvestment.AnyreversalofthatimpairmentlossisrecognisedinaccordancewithIAS36totheextentthattherecoverableamountoftheinvestmentsubsequentlyincreases.



Whenagroupentity transactswith itsassociate,profitsand lossesresultingfromthetransactionswith theassociatearerecognisedintheGroup'sconsolidatedfinancialstatementsonlytotheextentofinterestsintheassociatethatarenotrelatedtotheGroup.

vi. Transactions eliminated on consolidationIntra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions,areeliminated inpreparing theconsolidatedfinancial statements.Unrealisedgainsarising from transactionswithequity-accountedinvesteesareeliminatedagainsttheinvestmenttotheextentoftheGroup’sinterestintheinvestee.Unrealisedlossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.

Property, plant and equipment

i. Recognition and measurementLandiscarriedatfairvalue,basedonvaluationsbyexternalindependentvaluers,lesssubsequentdepreciationforbuildings.Revaluationsarecarriedouteveryfiveyearssothatthecarryingamountdoesnotdiffermateriallyfromthatwhichwouldbedeterminedusingfairvalueatthereportingdate.Allotherproperty,plantandequipment,includingthevassilikoportarestatedathistoricalcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.

Increasesinthecarryingamountarisingonrevaluationofpropertyplantandequipmentarecreditedtoothercomprehensiveincome.Decreasesthatoffsetpreviousincreasesofthesameassetarechargedagainstthatreserve;allotherdecreasesarechargedtothestatementofcomprehensiveincome.Eachyearthedifferencebetweendepreciationbasedontherevaluedcarryingamountoftheasset(thedepreciationchargedtothestatementofcomprehensiveincome)anddepreciationbasedontheasset'soriginalcostistransferredfromfairvaluereservestoretainedearnings.

Propertiesunderconstructionarecarriedatcost,lessanyrecognisedimpairmentloss.CostincludesprofessionalfeesandborrowingcostscapitalisedinaccordancewiththeGroup'saccountingpolicy.Depreciationoftheseassets,onthesamebasisasotherpropertyassets,commenceswhentheassetsarereadyfortheirintendeduse.

ii. Reclassification to investment propertyWhentheuseofapropertychangesfromowner-occupiedtoinvestmentproperty,thepropertyisremeasuredtofairvalueandreclassifiedasinvestmentproperty.Anygainarisingonremeasurementisrecognisedinprofitorlosstotheextentthatitreversesapreviousimpairmentlossonthespecificproperty,withanyremaininggainrecognizedinothercomprehensiveincomeandpresentedintherevaluationreserveinequity.Anylossisrecognisedimmediatelyinprofitorloss.

iii. Subsequent expenditureSubsequent expenditure is capitalised only when it is probable that the future economic benefits associated with theexpenditurewillflowtotheGroup.Ongoingrepairsandmaintenanceisexpensedasincurred.




iv. DepreciationDepreciationisrecognisedinprofitorlossonastraight-linebasisovertheestimatedusefullivesofeachcomponent.Landisnotdepreciated.

Leasedassetsaredepreciatedovertheshorteroftheleasetermandtheirusefullives,unlessitisreasonablycertainthattheGroupwillobtainownershipbytheendoftheleaseterm.

Itemsoftheproperty,plantandequipmentaredepreciatedfromthedatethattheyareinstalledandarereadyforuse,orinrespectofinternallyconstructedassets,fromthedatethattheassetsarecompletedandarereadyforuse.

Theestimatedusefullivesareasfollows: Buildings 20-50years VassilikoPort 50years(termoflease) Machinery,plantandequipment 4-25years

Non-current assets held for sale

Non-currentassetsanddisposalgroupsareclassifiedasheldforsaleiftheircarryingamountwillberecoveredthroughasaletransactionratherthanthroughcontinuinguse.Thisconditionisregardedasmetonlywhenthesaleishighlyprobableandtheasset(ordisposalgroup)isavailableforimmediatesaleinitspresentcondition.Managementmustbecommittedtothesale,whichshouldbeexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification.

WhentheGroupiscommittedtoasaleplaninvolvinglossofcontrolofasubsidiary,alloftheassetsandliabilitiesofthatsubsidiaryareclassifiedasheldforsalewhenthecriteriadescribedabovearemet,regardlessofwhethertheGroupwillretainanon-controllinginterestinitsformersubsidiaryafterthesale.

Non-currentassets(anddisposalgroups)classifiedasheldforsalearemeasuredattheloweroftheassetspreviouscarryingamountandfairvaluelesscoststosell.Anyimpairmentlossonadisposalgroupisallocatedfirsttogoodwill,andthentotheremainingassetsandliabilitiesonaproratabasis,exceptthatnolossisallocatedtoinventories,financialassets,deferredtaxassets,employeebenefitassets,investmentpropertyorbiologicalassets,whichcontinuetobemeasuredinaccordancewiththeGroup'sotheraccountingpolicies.Impairmentlossesoninitialclassificationasheldforsaleorheldfordistributionandsubsequentgainsandlossesonremeasurementarerecognisedinprofitorloss.

Onceclassifiedasheldforsale,intangibleassetsandproperty,plantandequipmentarenolongeramortisedordepreciated,andanyequity-accountedinvesteeisnolongerequityaccounted.




Intangible assets

i. GoodwillAllbusinesscombinationsareaccountedforbyapplying theacquisitionmethod.Goodwill representsamountsarisingonacquisitionofsubsidiariesandassociates.Goodwillrepresentsthedifferencebetweenthecostoftheacquisitionandthefairvalueofthenetidentifiableassetsoftheacquiredundertakingatthedateofacquisition.

Whentheexcessisnegative,abargainpurchasegainisrecognisedimmediatelyinprofitorloss.

Goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwillisallocatedtocash-generatingunitsandistestedannuallyforimpairment(note16).Goodwillonacquisitionofassociatesisincludedininvestmentsinassociates.

ii. Other intangible assetsOtherintangibleassetsthatareacquiredbytheGroupandhavefiniteusefullivesaremeasuredatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.

Expenditureon internallygeneratedgoodwillandbrands is recognised in thestatementofcomprehensive incomeasanexpenseasincurred.

iii. Subsequent expenditureSubsequentexpenditureonintangibleassetsiscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedinthespecificassettowhichitrelates.Allotherexpenditureisexpensedasincurred.

iv. AmortisationAmortisationischargedtoprofitorlossonastraight-linebasisovertheestimatedusefullivesofintangibleassetsunlesssuchlivesareindefinite.Goodwillandintangibleassetswithanindefiniteusefullifearesystematicallytestedforimpairmentateachreportingdate.Otherintangibleassetsareamortisedfromthedatetheyareavailableforuse.Theestimatedusefullivesareasfollows:

Computersoftware 3years Leaseholdproperty 33years

Investments

i. Investments in equity securitiesEquityfinancial instrumentsheldbytheGroupareclassifiedasbeingavailable-for-saleandarerecognisedinitiallyatfairvalueplusanydirectlyattributabletransactioncosts,withanyresultedgainorlossbeingrecogniseddirectlyinequity,exceptforimpairmentlossesand,inthecaseofmonetaryitemssuchasdebtsecurities,foreignexchangegainsandlosses.Whentheseinvestmentsarede-recognised,thecumulativegainorlosspreviouslyrecogniseddirectlyinequityisrecognisedinthestatementofcomprehensiveincome.Wheretheseinvestmentsareinterest-bearing,interestcalculatedusingtheeffectiveinterestmethodisrecognisedinthestatementofcomprehensiveincome.

Thefairvalueoffinancialinstrumentsclassifiedasheldfortradingandavailable-for-saleistheirquotedbidpriceattheyear-enddate.




Financialinstrumentsclassifiedasheldfortradingoravailable-for-saleinvestmentsarerecognised/de-recognisedbytheGrouponthedateitcommitstopurchase/selltheinvestments.Securitiesheld-to-maturityarerecognised/de-recognisedonthedaytheyaretransferredto/bytheGroup.

Financial instruments designated as available-for-sale are included in non-current assets, unless management has theexpressedintentionofholdingtheinvestmentforlessthan12monthsfromthereportingdate.

ii. Investment propertyInvestmentpropertiesarepropertieswhichareheldeithertoearnrentalincome,orforcapitalappreciation,orforboth,butnotforsaleintheordinarycourseofbusiness,orusedfortheproductionorsupplyofgoodsorservices,orforadministrativepurposes.Investmentpropertiesarecarriedatfairvaluelesscosttosell,representingopenmarketvaluedeterminedannuallybyexternalvaluers.Anexternal,independentvaluer,havinganappropriaterecognisedprofessionalqualificationandrecentexperience in the locationandcategoryofpropertybeingvalued,values theportfolioat regular intervals.The fairvaluesarebasedonmarketvalues,beingtheestimatedamountforwhichapropertycouldbeexchangedonthedateofvaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.

Anygainorlossarisingfromachangeinfairvalueisrecognisedinprofitorloss.RentalincomefrominvestmentpropertyisaccountedforasdescribedinaccountingpolicyforRevenue.

Whenan itemof property, plant and equipment is transferred to investment property following a change in its use, anydifferencesarisingatthedateoftransferbetweenthecarryingamountoftheitemimmediatelypriortotransferanditsfairvalueisrecogniseddirectlyinequity,ifitisagain.Upondisposaloftheitemthegainistransferredtoretainedearnings.Anylossarisinginthismannerisrecognisedimmediatelyinthestatementofcomprehensiveincome.

If an investment property becomesowner-occupied, it is reclassifiedas property, plant andequipment and its fair valueatthedateofreclassificationbecomesitscostforaccountingpurposesofsubsequentrecording.WhentheGroupbeginsto redevelop an existing investment property for continued future use as investment property, the property remains aninvestmentproperty,whichismeasuredbasedonfairvaluemodel,andisnotreclassifiedasproperty,plantandequipmentduringtheredevelopment.

Cash flow hedgesWhenaderivativeisdesignatedasacashflowhedginginstrument,theeffectiveportionofchangesinthefairvalueofthederivative is recognized inothercomprehensive incomeandaccumulated in thehedging reserve.Any ineffectiveportionofchangesinthefairvalueofthederivativeisrecognizedimmediatelyinprofitorloss.Theamountaccumulatedinequityisretainedinothercomprehensiveincomeandreclassifiedtoprofitorlossinthesameperiodorperiodsduringwhichthehedged itemaffectsprofitor loss. If thehedging instrumentno longermeetsthecriteria forhedgeaccounting,expiresorissold,terminatedorexercised,orthedesignationisrevoked,thenhedgeaccountingisdiscontinuedprospectively.Iftheforecasttransactionisnolongerexpectedtooccur,thentheamountaccumulatedinequityisreclassifiedtoprofitorloss.




Trade and other receivablesTrade receivables are initially measured at fair value, and are subsequently measured at amortised cost using theeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinstatementofcomprehensiveincomewhenthereisobjectiveevidencethattheassetisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset'scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.

InventoriesInventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandsellingexpenses.

Thecostofrawmaterials,sparepartsandotherconsumablesisbasedontheaveragecostandincludesexpenditureincurredinacquiringtheinventoriesandbringingthemtotheirexistinglocationandcondition.Inthecaseofmanufacturedinventoriesandworkinprogress,costincludesanappropriateshareofproductionoverheadsbasedonnormaloperatingcapacity.

Cash and cash equivalentsCashandcashequivalentscomprisecash inhandandatbankandcalldeposits.Bankoverdrafts thatarerepayableondemandandformanintegralpartoftheGroup’scashmanagementareincludedasacomponentofcashandcashequivalentsforthepurposeofthestatementofcashflows.

Impairment of non-financial assetsThecarryingamountsoftheGroup’sassets,otherthaninvestmentproperty,inventoriesanddeferredtaxassets,arereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimated.

Forgoodwill,assetsthathaveanindefiniteusefullifeandintangibleassetsthatarenotyetavailableforuse,therecoverableamountisestimatedateachyearenddate.

Animpairmentlossisrecognisedwheneverthecarryingamountofanassetoritscash-generatingunitexceedsitsrecoverableamount.Impairmentlossesarerecognizedintheprofitorloss.

Impairment lossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtocash-generatingunits(groupofunits)andthen,toreducethecarryingamountoftheotherassetsintheunit(groupofunits)onaproratabasis.

Whenadeclineinthefairvalueofanavailable-for-salefinancialassethasbeenrecogniseddirectlyinequityandthereisobjectiveevidencethattheassetisimpaired,thecumulativelossthathadbeenrecogniseddirectlyinequityisrecognisedin profit or loss even though the financial asset has not beende-recognised.Theamount of the cumulative loss that isrecognisedinthestatementofcomprehensiveincomeisthedifferencebetweentheacquisitioncostandcurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinthestatementofcomprehensiveincome.




Interest-bearing borrowingsInterest-bearingborrowingsarerecognisedinitiallyatfairvalueplusanydirectattributabletransactioncosts.Subsequentlytheyaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

Employee benefits

i. Defined contribution plansAdefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsintoaseparateentityandhasnolegalorconstructiveobligationtopayfurtheramounts.Obligationsforcontributionstodefinedcontributionplans are recognised as an employee benefit expense in profit or loss in the periods duringwhich related services arerenderedbyemployees.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninfuturepaymentsisavailable.Contributionstoadefinedcontributionplanthatareduemorethan12monthsaftertheendoftheperiodinwhichtheemployeesrendertheservicearediscountedtotheirpresentvalue.

ii. Termination benefitsTerminationbenefitsarerecognisedasanexpensewhentheGroupisdemonstrablycommitted,withoutrealisticpossibilityofwithdrawal, toa formal detailedplan toeither terminateemploymentbefore thenormal retirementdate, or toprovidetermination benefits as a result of an offermade to encourage voluntary redundancy.Termination benefits for voluntaryredundanciesarerecognisedasanexpenseiftheGrouphasmadeanofferofvoluntaryredundancy,itisprobablethattheofferwillbeaccepted,andthenumberofacceptancescanbeestimatedreliably.Ifbenefitsarepayablemorethan12monthsafterthereportingdate,thentheyarediscountedtotheirpresentvalue.

ProvisionsAprovisionisrecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligationandareliableestimateoftheamountcanbemade.Iftheeffectismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

Trade and other payablesTradeandotherpayablesarepresentedatthenominalvalueoutstandingattheyearenddate.

Revenue

TheGroup has initially applied IFRS15 from 1 January 2018. Information about Group’s accounting policies relating tocontractswithcustomersisprovidedinNote3.ThereisnosignificantimpactonthefinancialstatementsfromtheapplicationofIFRS15.

i. Goods soldRevenuefromthesaleofgoodsinthecourseofordinaryactivitiesismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netofreturns,tradediscountsandvolumerebates.

Revenuefromthesaleofgoodsisrecognisedinprofitorlosswhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Norevenueisrecognisediftherearesignificantuncertaintiesregardingrecoveryoftheconsiderationdue,associatedcostsorthepossiblereturnofgoods.




ii. Rental incomeRentalincomefrominvestmentpropertyisrecognisedinprofitorlossonastraight-linebasisoverthetermofthelease.iii. Government grantsGovernmentgrantsarerecognisedinthestatementoffinancialpositioninitiallyasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachedtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueinprofitorlossonasystematicbasisinthesameperiodsinwhichtheexpensesareincurred.GrantsthatcompensatetheGroupforthecostofanassetareamortisedonasystematicbasisusingthestraight-linemethodovertheexpectedusefullifeoftherespectiveasset.

iv. Finance incomeFinanceincomeincludesinterestincomewhichisrecognisedusingtheeffectiveinterestmethod.

v. Dividend incomeDividendincomeisrecognisedinthestatementofcomprehensiveincomeonthedatetheentity’srighttoreceivepaymentsisestablished,whichinthecaseofquotedsecuritiesisusuallytheex-dividenddate.

Expenses

i. Operating lease paymentsRentalspayableunderoperatingleasesarechargedtothestatementofcomprehensiveincomeonastraight-linebasisoverthe termof therelevant lease.Benefitsreceivedandreceivableasan incentive toenter intoanoperating leasearealsospreadonastraight-linebasisovertheleaseterm.

ii. Financing costsFinancingcostscompriseinterestexpenseonborrowingscalculatedusingtheeffectiveinterestratemethod,interestreceivableonfundsinvested,dividendincome,foreignexchangegainsandlosses,andgainsandlossesonhedginginstrumentsthatarerecognisedinthestatementofcomprehensiveincome.

iii. Foreign currency transactions

Functional currenciesItemsincludedinthefinancialstatementsofeachGroupentityaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhicheachentityoperates('thefunctionalcurrency').

Transactions and balancesForeign currency transactions are translated into respective functional currencies of theGroup companies using theexchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from thesettlementofsuchtransactionsandfromthetranslationat thereportingdateexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognizedinprofitorloss.Non-monetaryassetsandliabilitiesthataremeasuredatfairvalueinaforeigncurrencyaretranslatedintothefunctionalcurrencyattheexchangeratewhenthefairvalueisdetermined.




Tax expenseTaxexpenseonthestatementofcomprehensiveincomefortheyearcomprisescurrentanddeferredtax.Taxexpenseisrecognisedinprofitorloss,excepttotheextentthatitrelatestoitemsrecogniseddirectlyinothercomprehensiveincome.

Currenttaxistheexpectedtaxpayableorreceivableonthetaxableincomeorlossfortheyear,usingtheapplicabletaxratesenactedorsubstantiallyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferredtaxisrecognizedondifferencesbetweenthecarryingamountsofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit,andisaccountedforusingthestatementoffinancialpositionliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognizedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichdeductibletemporarydifferencescanbeutilized.Suchassetsandliabilitiesarenotrecognizedifthetemporarydifferencearisesfromgoodwillorfromtheinitialrecognition(otherthaninabusinesscombination)ofotherassetsandliabilitiesinatransactionthataffectsneitherthetaxableprofitnortheaccountingprofit.

Share capitalOrdinarysharesareclassifiedasequity.

DividendsDividenddistributiontotheCompany'sshareholdersisrecognisedintheCompany'sfinancialstatementsintheyearinwhichtheyareapprovedbytheCompany'sshareholders.

ComparativesWherenecessary,comparativefigureshavebeenadjustedtoconformtochangesinpresentationinthecurrentyear.




6. Revenue

5. Operating segments

Following an assessment to identify operating segments, the Company has identified asmain segment that of cementoperation.OtheractivitiesthatgiverisetoincomeandexpensesareonlyincidentaltothemainoperationoftheCompanyorthevalueofeithertheirassetsorincomearebelowthequantitativethresholdsofIFRS8toformseparatereportableoperatingsegmentsseparatelyorintheiraggregatevalue.

7. Other operating income

8. Operating profit before financing costs

Group CompanyRevenueanalysis: 2018 2017 2018 2017

€000 €000 €000 €000

Cementproducts 97.811 102.201 97.811 102.201Other 115 266 115 266

97.926 102.467 97.926 102.467

Group Company2018 2017 2018 2017 €000 €000 €000 €000

IncomefromVassilikoPort 787 870 787 870 Lossondisposalofproperty,plantandequipment (30) (4) (30) (4)Other 220 205 220 205

977 1.071 977 1.071

Group Company2018 2017 2018 2017

Thisisstatedaftercharging: €000 €000 €000 €000

Staffcosts(note9) 10.704 10.588 10.704 10.588Directorsremunerationasdirectors 258 246 258 246 Directorsremunerationasexecutives 413 233 413 233 Depreciationofproperty,plantandequipment 14.081 13.773 14.081 13.773Amortisationofintangibleassets 28 15 28 15 Independentauditors'remuneration 55 55 52 52



9. Staff Costs

10. Net finance income/(cost)

Group Company2018 2017 2018 2017

€000 €000 €000 €000

Wagesandsalaries 9.169 9.118 9.169 9.118

Socialinsurancecontributions 669 654 669 654

Providentandmedicalfundcontributions(note34) 518 459 518 459

Othercontributions 348 357 348 357

10.704 10.588 10.704 10.588

Averagenumberofemployees 243 238 243 238

Group Company

2018 2017 2018 2017

€000 €000 €000 €000

Interestincome 198 - 198 -Netforeignexchangedifferences 428 130 428 130

Financeincome 626 130 626 130

Interestexpense (542) (569) (542) (569)Financeexpense (542) (569) (542) (569)

Netfinanceincome/(cost) 84 (439) 84 (439)

Interestincomeisearnedonbankdepositsheldincurrentandshorttermnoticeaccounts.Theinterestrateontheabovedepositsisvariable.Interestexpenserelatestoloaninterestchargesaswellasinterestchargesonoverdraftaccounts.

11. Net (loss)/ profit from investing activities Group Company

2018 2017 2018 2017

€000 €000 €000 €000

Dividendincome 5 3 310 297

Changeinfairvalueofavailable-for-salefinancialassets (14) 56 (14) 56 Changeinfairvalueofinvestmentproperty 986 711 1.051 665 Rentalofinvestmentproperty 69 74 69 74 (Loss)/Gainondisposalofinvestmentproperty (1.749) 104 (1.749) 104

(703) 948 (333) 1.196



12. Taxation

Group CompanyRecognised in profit or loss 2018 2017 2018 2017

€000 €000 €000 €000

Analysis of charge in the year

Incometaxonprofitsoftheyear 1.000 1.311 1.000 1.311Specialcontributiontothedefencefund 61 2 61 2 Shareoftaxfromassociate 99 (7) - -Deferredtax (note27) 1.710 2.076 1.715 2.071

2.870 3.382 2.776 3.384

Recognised in other comprehensive income

Deferredtaxonrevaluationofproperty 1.246 (389) 1.246 (389)

TheGroupissubjecttoincometaxat12,5%. Group Company

2018 2017 2018 2017 Reconciliation of tax based on taxable income and tax based on accounting profits

€000 €000 €000 €000

Accountingprofitbeforetax 18.592 23.255 18.136 23.007

Taxcalculatedattheapplicabletaxrates 2.324 2.907 2.267 2.876Taxeffectofexpensesnotdeductiblefortaxpurposes 1.800 1.864 1.800 1.895Taxeffectofallowancesandincomenotsubjecttotax (3.124) (3.207) (3.067) (3.207)Taxeffectoftaxlossesbroughtforward - (253) - (253)Specialcontributiontothedefencefund 61 2 61 2 Prioryeartax - - - -Deferredtax 1.710 2.076 1.715 2.071Shareoftaxfromassociates 99 (7) - -Taxchargefortheyear 2.870 3.382 2.776 3.384

13. Earnings per share

The calculation of earnings per sharewas based on the profit attributable to ordinary shareholders of €15.722.000(2017:€19.873.000)andtheweightedaveragenumberofordinarysharesoutstandingduringtheyearof71.935.947(2017:71.935.947).

ThecalculationofearningspershareintheCompanyStatementofComprehensiveIncomewasbasedontheprofitfortheyearof€15.360.000(2017:€19.623.000).



14. Property, plant and equipment

GroupLand and buildings

Vassiliko port

Plant and equipment Total

€000 €000 €000 €000

Cost

Balanceat1January2017 75.586 24.085 253.155 352.826

Acquisitions 10.117 15 6.210 16.342

Revaluationofassets (290) - - (290)

Disposals - - (1.266) (1.266)

Balanceat31December2017 85.413 24.100 258.099 367.612


Acquisitions 2.598 - 3.299 5.897

Revaluationofassets (1.509) - - (1.509)

Transfertoinvestmentproperty (1.787) - - (1.787)Transferfrominvestmentproperty 999 - - 999 Disposals (196) - (55) (251)


DepreciationBalanceat1January2017 22.988 8.165 83.834 114.987Chargefortheyearonhistoricalcost 1.028 937 10.162 12.127

Additionalchargeonrevaluedamounts 1.646 - - 1.646Disposals - - (1.240) (1.240)


Balanceat1January2018 25.662 9.102 92.756 127.520 Chargefortheyearonhistoricalcost 1.853 492 10.577 12.922 Additionalchargeonrevaluedamounts 1.159 446 - 1.605 Disposals - - (43) (43)Balanceat31December2018 28.674 10.040 103.290 142.004

Carrying amountsAt1January2017 52.598 15.920 169.321 237.839At31December2017 59.751 14.998 165.343 240.092

At1January2018 59.751 14.998 165.343 240.092 At31December2018 56.844 14.060 158.053 228.957



14. Property, plant and equipment (continued)

CompanyLand and buildings

Vassiliko port

Plant and equipment Total

€000 €000 €000 €000

Cost


Acquisitions 10.117 15 6.210 16.342

Revaluationofassets (290) - - (290)

Disposals - - (1.266) (1.266)Balanceat31December2017 85.413 24.100 258.099 367.612

Balanceat1January2018 85.413 24.100 258.099 367.612 Acquisitions 2.598 - 3.299 5.897 Revaluationofassets (1.509) - - (1.509)Transfertoinvestmentproperty (1.787) - - (1.787)Transferfrominvestmentproperty 999 - - 999 Disposals (196) - (55) (251)Balanceat31December2018 85.518 24.100 261.343 370.961

DepreciationBalanceat1January2017 22.988 8.165 83.834 114.987

Chargefortheyearonhistoricalcost 1.028 937 10.162 12.127

Additionalchargeonrevaluedamounts 1.646 - - 1.646Disposals - - (1.240) (1.240)Balanceat31December2017 25.662 9.102 92.756 127.520

Balanceat1January2018 25.662 9.102 92.756 127.520 Chargefortheyearonhistoricalcost 1.853 492 10.577 12.922 Additionalchargeonrevaluedamounts 1.159 446 - 1.605 Disposals - - (43) (43)Balanceat31December2018 28.674 10.040 103.290 142.004

Carrying amountsAt1January2017 52.598 15.920 169.321 237.839At31December2017 59.751 14.998 165.343 240.092

At1January2018 59.751 14.998 165.343 240.092 At31December2018 56.844 14.060 158.053 228.957

ThefairvaluemeasurementfortheLandhasbeencategorizedasaLevel3.

Plantandequipmentunderconstructionasat31December2018was€2.488.000(2017:€13.231.000).



15. Investment property

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Balanceat1January 9.964 9.259 9.684 9.025Transferfromproperty,plantandequipment 1.787 - 1.787 -Transfertoproperty,plantandequipment (999) - (999) -

Transferfromassetsclassifiedasheldforsale - 450 - 450 Changeinfairvalue 986 711 1.051 665 Disposals (3.239) (456) (3.239) (456)

Balanceat31December 8.499 9.964 8.284 9.684

Thecarryingamountofinvestmentpropertyisthefairvalueofthepropertyasdeterminedbyanindependentvaluerhavinganappropriaterecognisedprofessionalqualificationandrecentexperienceinthelocationandcategoryofthepropertybeingvalued.FairvaluesweredeterminedhavingregardtorecentmarkettransactionsforsimilarpropertiesinthesamelocationastheGroup’sinvestmentproperty.ThelastrevaluationofinvestmentpropertywasperformedinDecember2018.

Investmentpropertycomprisesanumberofcommercialpropertiesthatareleasedtothirdpartiesor landheldforcapitalappreciation.

ThefairvaluemeasurementforalltheinvestmentpropertieshasbeencategorizedasaLevel3.

Valuation techniqueForinvestmentpropertythecomparablesalesapproachwasused.

Significant Unobservable InputsSalescomparisonapproachofinvestmentpropertiestakesintoconsiderationsthelocationandsizeoftheplot,thebuildingcoefficientandlegalframeworkaswellasthemarketdataatthevaluationdate.

14. Property, plant and equipment (continued)

ThecarryingamountofVassilikoPortconsistsofthenetbookvalueofthecapitalisedcostoftheimprovementsincurredbytheCompanythroughtheyears.TheCyprusPortsAuthority,whichaccordingtotheCyprusPortsAuthorityLawistheowneroftheport,leasedittotheCompanyforaperiodof50yearsasfrom1January1984.

Arevaluationexerciseforlandwasperformedinrelationto2017byindependentprofessionalvaluers.

Bank loans of €23.062.000 (2017: €30.969.000) are secured by €25.500.000 mortgages on land and buildings and€25.500.000fixedchargesonplantandmachinery.


16. Intangible assets

Group Goodwill Software Total€000 €000 €000

CostBalanceat1January2017 12.328 94 12.422

Acquisitions - 59 59

Balanceat31December2017 12.328 153 12.481

Balanceat1January2018 12.328 153 12.481


Amortisation and impairment charge

Balanceat1January2017 - 53 53

Amortisationfortheyear - 15 15

Balanceat31December2017 - 68 68




Carrying amounts

At1January2017 12.328 41 12.369At31December2017 12.328 85 12.413

At1January2018 12.328 85 12.413

At31December2018 12.328 57 12.385



18. Investments in subsidiaries Ownership

2018 2017 €000 €000

Balanceat1January - -Balanceat31December - -

VenusBetonLtd-Cyprus - -CCCAggregatesLtd-Cyprus - -

- -


17. Group entities

Company Goodwill Software Total€000 €000 €000

Cost


Acquisitions - 59 59




Amortisation and impairment charge







Carrying amountsAt1January2017 12.328 41 12.369At31December2017 12.328 85 12.413

At1January2018 12.328 85 12.413

At31December2018 12.328 57 12.385

OwnershipName and country of incorporation Principal Activity 2018 2017

VenusBetonLtd-Cyprus Dormantcompany 51,0% 51,0%CCCAggregatesLtd-Cyprus Dormantcompany 51,0% 51,0%

16. Intangible assets (continued)



19. Investments in equity-accounted investees

OwnershipName and country of incorporation Principal Activity 2018 2017

LatomioPyrgonLtd-Cyprus Aggregatesquarry 30% 30%Enerco-EnergyRecoveryLtd-Cyprus Wastetoenergy 50% 50%LatomiaLatourosLtd-Cyprus Aggregatesquarry 50% 50%

2018 2017 €000 €000

Balanceat1January 3.828 3.622Additions 169 -Shareofprofitfromequity-accountedinvestees 830 500 Shareoftaxfromequity-accountedinvestees (99) -Dividendsfromequity-accountedinvestees (305) (294)Balanceat31December 4.423 3.828

LatomioPyrgonLtd-Cyprus 394 393 Enerco-EnergyRecoveryLtd-Cyprus 1.060 940 LatomiaLatourosLtd-Cyprus 2.969 2.495

4.423 3.828

IntheCompany'sstatementoffinancialposition,theinvestmentsinassociatesarestatedatcost:

2018 2017 €000 €000

Balanceat1January 3.330 3.330Additions 169 -Balanceat31December 3.499 3.330

TheGroupprovidedcorporateguaranteestobanksforloansheldbyequity-accountedinvestees.Asat31December2018theseamountedto€2.684.000(2017:€2.630.000).

Thefollowingtablesummarizesthefinancialinformationoftheequityaccountinginvesteesasincludedinitsownfinancialstatementsadjustedforfairvalueadjustmentsatacquisitionsanddifferencesinaccountingpolicies.ThetablealsoreconcilesthethesummarisedfinancialinformationtothecarryingamountoftheGroup’sinterestinequityaccountedinvestees.



20. Financial Assets at Fair Value through Other Comprehensive Income (Available for sale -2017)

21. Inventories

Group Company

2018 2017 2018 2017

€000 €000 €000 €000

At1January 200 144 200 144

Changeinfairvalue (14) 56 (14) 56

At31December 186 200 186 200

Valuation Valuation

2018 2017 2018 2017

€000 €000 €000 €000

Non-current investments

Equitysecuritiesatfairvaluethroughothercomprehensiveincome 186 200 186 200

Group Company

2018 2017 2018 2017

€000 €000 €000 €000

Rawmaterialsandworkinprogress 3.387 2.698 3.387 2.698

Finishedgoods 8.266 5.218 8.266 5.218

Fuelstocks 2.434 5.405 2.434 5.405Sparepartsandconsumables 11.158 10.675 11.158 10.675

25.245 23.996 25.245 23.996

In2018,inventoriesof€70.944.000(2017:€71.576.000)wererecognisedasasexpenseduringtheyearandincludedincostofsales.

Latomio Pyrgon Ltd - Cyprus

Enerco - Energy Recovery Ltd -

Cyprus

Latomia Latouros Ltd -

Cyprus

€000 €000 €000 Noncurrentassets 1.703 1.582 9.185

Currentassets 1.023 1.116 3.565

Noncurrentliabilities 894 450 3.914

Currentliabilities 3.234 128 1.930

Netassets(100%) (1.402) 2.120 6.906

Group’sshareofnetassets (421) 1.060 3.453

Revenue 1.898 3.322 3.856

Profitfromcontinuedoperations 2 850 609

Othercomprehensiveincome - - 18

Total comprehensive income 2 850 627

19. Investments in equity-accounted investees (continued)



22. Trade and other receivables

23. Assets classified as held for sale

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Tradereceivables 7.508 7.638 7.508 7.638

Amountowedbysubsidiarycompanies(note30) - - 527 523

Amountowedbyassociatecompanies(note30) (72) 99 (72) 99

Amountowedbyrelatedcompanies - 10 - 10 Otherreceivablesandprepayments 304 43 304 43

7.740 7.790 8.267 8.313Lessimpairment (1.378) (1.390) (1.396) (1.408)

6.362 6.400 6.871 6.905

Impairment movement

At1January 1.390 1.646 1.408 1.664

Accrueddiscounts (12) (256) (12) (256)

At31December 1.378 1.390 1.396 1.408

TheGroup'shistoricalexperience incollectionofaccounts receivable fallswithin the recordedallowances.Due to thesefactors,managementbelievesthatnoadditionalcreditriskbeyondamountsprovidedforcollectionslossesisinherentintheCompany'stradereceivables.

InformationabouttheGroup'sexposuretocreditandmarketrisksfortradeandotherreceivables,isincludedinnote36.

TheeffectofinitiallyapplyingIFRS9intheGroup'sfinancialinstrumentsisdescribedinNote3.DuetothetransitionmethodchoseninapplyingIFRS9,comparativeinformationhasnotbeenrestatedtoreflectthenewrequirements.

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Balanceat1January - 450 - 450

Transfertoinvestmentproperty - (450) - (450)

Balanceat31December - - - -

Assetsclassifiedasheldforsaleincludelandvaluedin2017at€450.000thatwasnolongerrequiredfortheactivitiesoftheGroupandhasbeenclassifiedasassetsheldforsale.Thiswastransferredtoinvestmentpropertyasitwasnotforeseentobesoldduringthenexttwelvemonths.



24. Cash and cash equivalents

25. Capital and reserves

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Cashandbankbalances 259 (27) 259 (27)Cashandcashequivalents 259 (27) 259 (27)

Cashandcashequivalentsinthestatementofcashflows 259 (27) 259 (27)

Share capital 2018 2017

No. of shares No.ofshares

Authorised:

Ordinarysharesof€0,43each 72.000.000 72.000.000

2018 2017 2018 2017

No. of shares No.ofshares €000 €000

Allotted,calledupandfullypaid:

Ordinarysharesof€0,43each 71.935.947 71.935.947 30.932 30.932

Reserves

Revaluation reserveRevaluationreservecomprisesthecumulativenetchangeinthefairvalueoflandandbuildingsandVassilikoport.Whenrevaluedlandorbuildingsaresold,theportionoftherevaluationreservethatrelatestothatasset,andthatiseffectivelyrealised,istransferreddirectlytoretainedearnings.

Cash flow hedges reserveCash flow hedge reserve represents the accumulated gains and losses arising on the changes in the fair value of thederivativesrecognizedinothercomprehensiveincome.



26. Interest bearing loans and borrowings

27. Deferred taxation

Group Company2018 2017 2018 2017

€000 €000 €000 €000Non-current liabilitiesSecuredbankloans 15.155 23.062 15.155 23.062

Current liabilitiesCurrentportionofsecuredbankloans 7.907 7.907 7.907 7.907

Analysisofmaturityofdebt:Withinoneyearorondemand 7.907 7.907 7.907 7.907Betweenoneandtwoyears 7.907 7.907 7.907 7.907

Betweentwoandfiveyears 7.248 15.155 7.248 15.155

Afterfiveyears - - - -

23.062 30.969 23.062 30.969

Thebankloansaresecuredasfollows:-BymortgageagainstimmovablepropertyoftheCompanyfor€25.500.000(2017:€25.500.000).-FixedchargeontheCompany'sfinancedplantandmachineryfor€25.500.000(2017:€25.500.000).

Weighted average effective interest rateTherateofinterestpayableontheloansasat31December2018wasfixedwithaninterestrateswapagreementuntilApril2019at1,19%.At31December2018,theprevailingrateofinterestfortheseloanswasonaverage1,19%(2017:1,19%).

Group Company

2018 2017 2018 2017

€000 €000 €000 €000

Acceleratedcapitalallowances 14.180 12.367 14.180 12.367

Revaluationofproperties 8.406 7.263 8.406 7.258

22.586 19.630 22.586 19.625

2018 2017 2018 2017

€000 €000 €000 €000

At1January 19.630 17.943 19.625 17.943

Deferredtaxchargeinstatementofcomprehensiveincome(note12) 1.710 2.076 1.715 2.071Transfertorevaluationreserve 1.246 (389) 1.246 (389)

At31December 22.586 19.630 22.586 19.625



28. Provisions for liabilities and charges

29. Trade and other payables

30. Related parties

i. Transactions with related companies

TheCompanyhasenteredintoagreementswiththefollowingrelatedparties:

• WithHellenicMiningPublicCompanyLimited(commonshareholderwiththeGroup)fortheprovisionofofficefacilitiesandotherrelatedadministrativeandtechnicalservicesonquarryingactivitiesatanannualfeeof€24.000.Thedurationoftheagreementisforatwo-yearperiod,commencingon1July2018andendingon30June2020.

• WithHellenicSecretarialServicesLtd(commonshareholderwiththeGroup)fortheprovisionofadministrativeandsecretarialservicestotheCompanyatanannualfeeof€138.000.Thedurationoftheagreementisforathreeyearperiod,commencingon1July2016andendingon30June2019.

• WithCCCSecretarialLimited(commonshareholderwiththeGroup)fortheprovisionofcivilengineeringconsultationservicesatanannualfeeof€120.000renewedforanothertwelvemonthsuntil31August2019.

Group Company

Non-current Non-current2018 2017 2018 2017 €000 €000 €000 €000

Provisionsforlitigationandclaims 300 300 300 300

Group Company2018 2017 2018 2017 €000 €000 €000 €000

CurrentTradepayables 5.151 5.241 5.098 5.188Amountsowedtorelatedcompanies 78 34 78 34 Otherpayables 1.566 1.756 1.566 1.756Cashflowhedgeliability/(asset) - (254) - (254)Accruedinterest 115 152 115 152

Dividend 109 109 109 109

7.019 7.038 6.966 6.985



30. Related parties (continued)

ThetransactionsbetweentheGroupandtherelatedcompanies,includingtheaboveagreementswereasfollows:

Sales Purchases2018 2017 2018 2017 €000 €000 €000 €000

HellenicMiningGroup - 2 363 278 HeidelbergCement - - 3.413 8.393KEOPlc - - 10 8 TheCyprusCementPublicCompanyLtd - - 130 120 Enerco-EnergyRecoveryLtd 903 1.411 1.453 1.362

903 1.413 5.369 10.161

ii. Τransactions with key management personnelInadditiontosalaries,theGroupalsocontribυtestotheProvidendFundandMedicalFundwhicharedefinedcontributionsplans(note34).Keymanagementpersonnelcompensation,includingtotalemployercontributionsfor2018was€956.000(2017:€916.000).

iii. Balances with related companiesThebalancesbetweentheGroupandtherelatedpartieswereasfollows:

Group2018 2017 €000 €000

Amounts due to related partiesHellenicMiningGroup 72 21 C.C.CSecretarialLtd - 12 KEOPlc 6 1

78 34

TheabovebalancesrelatetotradingactivitiesbetweentheGroupandtherespectiveparties.

iv. Balances with equity-accounted investees Group Company

2018 2017 2018 2017 €000 €000 €000 €000

Balances due from/(to) equity-accounted investees

Enerco-EnergyRecoveryLtd(note22) (72) (70) (72) (70)LatourosQuarriesLtd(note22) - 169 - 169

(72) 99 (72) 99

Theabovebalancesrelatetotradingactivitiesanddividendsreceivable.



30. Related parties (continued)

31. Dividends

32. Directors’ shareholdings

v. Balances with Group entitiesThebalancesbetweentheCompanyandtheGroupentitieswereasfollows:

Company2018 2017 €000 €000

Balances due from Group entitiesVenusBetonLtd 506 504 CCCAggregatesLtd 21 19

527 523 Lessimpairment (346) (346)

181 177

2018 2017

€000 €000

Interimdividend2018at€0,03(2017:€0,08)pershare 2.158 5.755

Additionaldividend2017at€0,16(2016:€0,14)pershare 11.509 10.071

Dividendfrom2016profitsat€0,065pershare 4.676

18.343 15.826

Dividendsaresubjecttodefencefundcontributionattherateof17%whenthebeneficiaryisaphysicalpersonresidentofCyprus.

At31December2018,andfivedayspriortothedateoftheapprovalofthefinancialstatements,theproportionsofshareshelddirectlyorindirectlybytheDirectorsandtheirrelatedpartieswereasfollows:

Fully paid shares31 December 2018 6 April 2019

AntoniosAntoniou 0,0667% 0,0667%CostasKoutsos 0,0139% 0,0139%StavrosGalatariotis 0,0125% 0,0125%

0,0931% 0,0931%

At31December2018,theCompanyhadnomaterialagreementsinwhichDirectorsoftheCompany,ortheirrelatedparties,hadadirectorindirectinterest.

-



33. Shareholders holding at least 5% of the issued share capital

35. Operating leases

34. Employee contribution schemes

TheGroupcontributestotheVassilikoCementWorksLtdEmployees’ProvidentFundandemployees’medicalschemes.Theschemesarefundedseparately.Accordingtotheseschemes,theemployeesareentitledtopaymentofcertainbenefitsuponretirement,priorterminationofserviceorsickness.ThesearedefinedcontributionschemesandthecontributionsoftheGroupfortheyearwere€518.000(2017:€459.000)andfortheCompany€518.000(2017:€459.000).

At31December2018andfivedayspriortothedateofapprovalofthefinancialstatementsthefollowingshareholderswereholdingatleast5%ofthenominalvalueoftheissuedsharecapital.

Fully paid shares31 December 2018 6 April 2019

HolyArchbishopricofCyprus-directly 19,52% 19,52%HolyArchbishopricofCyprus-indirectly(throughKEOPlc) 6,49% 6,49%CompagnieFinanciereetdeParticipations-directly 9,71% 9,71%CompagnieFinanciereetdeParticipations-indirectly(throughItalmedCementCompanyLtd) 16,27% 16,27%AnastasiosG.LeventisFoundation 5,34% 5,34%TheCyprusCementPublicCompanyLtd 25,30% 25,30%

82,63% 82,63%

Leases as lesseeNon-cancellable operating lease rentals are payable as follows:

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Lessthanoneyear 21 86 21 86 Betweenoneandfiveyears 35 44 35 44 Morethanfiveyears 65 57 65 57

121 187 121 187

TheGroupleasesanumberofpropertiesunderoperatingleases.Theleasestypicallyrunforperiodsupto50years,withoptionstorenewtheleaseafterthatdate.Theleasesprovideforrentalincreasestoreflectmarketrentals.Noneoftheleasesincludecontingentrentals.



35. Operating leases (continued)

36. Financial instruments and risk management

TheGroupisexposedtothefollowingrisksfromitsuseoffinancialinstruments: • Marketrisk • Creditrisk • Liquidityrisk

TheGroupalsohasexposuretothefollowingotherrisks:

• Industryrisk• Operationalrisk• Environmentalrisk • Compliancerisk • Litigationrisk • Reputationrisk

ThisnotepresentsinformationabouttheGroup’sexposuretoeachoftheaboverisks,theGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisk,andtheGroup’smanagementofcapital.Furtherquantitativedisclosuresareincludedthroughouttheseconsolidatedfinancialstatements. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk managementframework. TheGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.TheGroup,throughitstrainingandmanagementstandards and procedures, aims to develop a disciplined and constructive control environment in which all employeesunderstandtheirrolesandobligations. TheGroupAuditCommitteeoverseeshowmanagementmonitorscompliancewiththeGroup'sriskmanagementproceduresandreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.

Leases as lessorTheGroupleasesoutitsinvestmentpropertyunderoperatingleases(seenote15).Thefutureminimumleasepaymentsundernon-cancellableleasesareasfollows:

Group Company2018 2017 2018 2017 €000 €000 €000 €000

Lessthanoneyear 90 77 90 77 Betweenoneandfiveyears 122 167 122 167 Morethanfiveyears - - - -

212 244 212 244

Duringtheyearended31December2018,€69.000wasrecognisedasnetrentalincomeinthestatementofcomprehensiveincome(2017:€74.000).



36. Financial instruments and risk management (continued)

ThemainmonetaryfinancialassetsoftheGroupandtheCompanyarecashandcashequivalents,andtheinvestmentsinsecuritiesandtradereceivables.Themainmonetaryfinancialliabilitiesarebankoverdrafts,loansandtradepayables. Market riskMarket risk is therisk thatchanges inmarketpricessuchas foreignexchangerates, interest ratesandequitypriceswillaffecttheGroup'sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameterswhileoptimisingthereturn. Interest rate riskInterestrateriskresultsfromchangesinmarketinterestrates.TheGroup'smanagementmonitorstheinterestratefluctuationsonacontinuousbasisandactsaccordingly.Theinterestrateandrepaymenttermsoftheloansaredisclosedinnote26. Currency riskCurrency risk is the risk that the value of financial instrumentswill fluctuate due to changes in foreign exchange rates.Currencyrateriskariseswhenfuturecommercial transactionsandrecognisedassetsandliabilitiesaredenominatedinacurrencythatisnottheGroup’smeasurementcurrency.TheGroupisexposedtoforeignexchangeriskarisingfromvariouscurrencyexposuresprimarilywithrespecttotheUnitedStatesDollar(US$).TheGroupsmanagementmonitorstheexchangeratefluctuationsandexposureonforeigncurrencytransactionsonacontinuousbasisandactsaccordingly.

Exposuretocurrencyriskwasasfollows:

Group US$000 US$00031 December 2018 31December2017

Tradereceivables 368 48 Tradepayables - (12)

Netexposure 368 36

Company US$000 US$00031 December 2018 31December2017

Tradereceivables 368 48 Tradepayables - (12)

Netexposure 368 36

Thefollowingsignificantexchangerateswereappliedduringtheyear:

Average rate Reporting date

spot rate2018 2017 2018 2017

US$ 0,843 0,896 0,869 0,832

Credit risk Creditriskariseswhenafailurebycounterpartiestodischargetheirobligationscouldreducetheamountoffuturecashinflowsfromfinancialassetsonhandatthestatementoffinancialpositiondate.TheCompanyhasnosignificantconcentrationofcreditrisk.TheGrouphaspolicies inplacetoensurethatsalesofproductsandservicesaremadetocustomerswithanappropriatecredithistoryandmonitorsonacontinuousbasistheageingprofileofitsreceivables.TheCompanyhaspoliciestolimittheamountofcreditexposuretoanyfinancialinstitution.



Group Company Carrying amount Carrying amount

2018 2017 2018 2017 €000 €000 €000 €000

Tradeandotherreceivables 7.508 7.638 7.508 7.638Amountreceivablefromrelatedparties (72) 109 (72) 109 Otherreceivablesandprepayments 304 43 304 43 Investmentsdesignatedasavailableforsale 186 200 186 200 Cashandcashequivalents 259 (27) 259 (27)

Totalcreditriskexposure 8.185 7.963 8.185 7.963

Group CompanyNoofbanks

2018 2017 Noofbanks

2018 2017 Bank group based on credit ratings by Moody’s €000 €000 €000 €000

B3 2 (385) (1.072) 2 (385) (1.072)B2 1 96 - 1 96 -B1 2 (140) 16 2 (140) 16 Aa2 1 637 741 1 637 741 Bankswithoutcreditratingandcashinhand 1 51 288 1 51 288

259 (27) 259 (27)

TheGrouphaspoliciestolimittheamountofcreditexposuretoanyfinancialinstitution.ThetablebelowshowsananalysisoftheCompany'sbankdepositsbythecreditratingofthebankinwhichtheyareheld:


Thecarryingamountoffinancialassetsrepresentingthemaximumcreditexposuretocreditriskatthereportingdatewas:

Gross carrying amount

Weighted average loss

rate

Loss allowances

Current(notpastdue) 6.442 0,8% 49

1-30dayspastdue 6 6,0% -

31-60dayspastdue 23 11,6% 3

61-90dayspastdue 13 19,1% 2

Morethan90dayspastdue 1.024 26,9% 45

7.508 99

Lossratesarebasedonactualcreditlossexperienceoverthepast3years.Theseratesaremultipliedbyscalarfactorstoreflectdifferencesbetweeneconomicconditionsduringtheperiodoverwhichthehistoricaldatahasbeencollected,currentconditionsandtheGroup’sviewofeconomicconditionsovertheexpectedlivesofthereceivables.

ThefollowingtableprovidesinformationaboutestimatedexposuretocreditriskandECL’sfortradereceivables,includingcontractassets,forindividualsandcompaniesasat31December2018:




Liquidity risk

Liquidityriskistheriskthatariseswhenthematurityofassetsandliabilitiesdoesnotmatch.Anunmatchedpositionpotentiallyenhancesprofitability,butcanalsoincreasetheriskoflosses.TheCompanyhasprocedureswiththeobjectofminimisingsuchlossessuchasmaintainingsufficientcashandotherhighlyliquidcurrentassetsandbyhavingavailableanadequateamountofcommittedcreditfacilities.

Thefollowingarethecontractualmaturitiesoffinancialliabilities,includingestimatedinterestpayments:

Group

Non-derivative financial liabilities

Carrying amount

Contractual cash flow

Payable on demand

and up to 6 months

6 - 12 months

1 - 2 years

2 - 5 years

More than 5 years

€000 €000 €000 €000 €000 €000 €000

31 December 2018 Securedbankloans 23.062 (23.612) (4.105) (4.081) (8.091) (7.335) -Tradeandotherpayables 7.019 (7.019) (7.019) - - - -

30.081 (30.631) (11.124) (4.081) (8.091) (7.335) -


38.007 (38.885) (11.143) (4.127) (8.186) (15.429) -

Company

Non-derivative financial liabilities

Carrying amount

Contractual cash flow

Payable on demand and up to 6

months6 - 12

months1 - 2

years2 - 5

yearsMore than

5 years€000 €000 €000 €000 €000 €000 €000


30.028 (30.578) (11.071) (4.081) (8.091) (7.335) -


37.954 (38.832) (11.090) (4.127) (8.186) (15.429) -




TheGrouphasaccesstofinancingfacilitiesof€37.162.000,ofwhich€14.000.000wereunusedattheendofthereportingperiod.TheGroupexpectstomeetitsotherobligationsfromoperatingcashflowsandproceedsfrommaturityoffinancialassets.

Industry risk TheactivitiesoftheGrouparesubjecttovariousrisksanduncertaintiesrelatedtotheconstructionindustryandtheeconomyingeneral.Theseactivitiesareinfluencedbyanumberoffactorswhichinclude,butarenotrestricted,tothefollowing:

• Nationalandinternationaleconomicandgeopoliticalfactorsandmarkets;• Thegrowthoftheconstructionandrealestatesectors;• Theimpactofwar,terroristacts,diseasesandepidemicswhicharelikelytoinfluencetourists’arrivalsontheislandof

Cyprus; • Increasesinlabourandenergycosts;• Increaseddomesticcompetitionaswellascompetitionfromneighbouringcountries.

Operational risk Operational risk is the risk that derives from any deficiencies relating to theGroup’s information technology, productionprocessesandcontrolsystemsaswellastheriskofahumanerrorandnaturaldisasters.TheGroup’ssystemsareevaluated,maintained,andupgradedcontinuously. Operational environment Cyprushasachievedaturnaroundfollowingthe2013economiccrisisastherecoverycontinuedstrengtheningforfifteenconsecutivequarters.Thebroad-basedeconomicrecoverygatheredpacein2017,withrealGDPincreasingbyanannual4,2%.Cyprus’ realGDPincreasedby3,9%year-onyear in thefirstninemonthsof2018whenseasonallyadjusted.Therecoveryhasbeenbroad-basedandhascontributedtotheincreaseofemploymentinalmostallsectorsandtothereductionofunemployment.

Therecoveryphase,accompaniedbypositivesurprises,haspassedandtheeconomyissettlingintoitsgrowthphase.Inabsoluteterms,thevalueofallfinalgoodsandservicesproduceddomesticallyatconstantprices, i.e,realGDP,stoodat€19,5billionatend2017,recoveringtothepre-crisislevel.Correspondingly,nominalGDP,thevalueofallfinalgoodsandservicesproduceddomesticallyatcurrentprices,reached€19,6billionin2017,upfrom€18,5billioninthepreviousyear.

While consumption continued to be a key recovery driver, investment demand also rebounded, particularly for largeconstructionandinfrastructureprojects.Themainfactordrivingtheincreaseinprivateconsumptionwastheriseinlabourincome,whichresultedfromthegrowthinthenumberofemployedpeople,ratherthanhigherwages.Privateconsumptionwasalsosupportedbytheflourishingtourismsectorwithpositivespillovereffectsinothersectorsoftheeconomy.

Cyprus'macroeconomicoutlook is positiveand is accompaniedbya significant increase in real grossdomestic productduringthefirstninemonthsof2018,arobustemploymentgrowthandfurtherimprovementinkeydomesticindicators.Growthisexpectedtobesupportedbyprivateconsumptionandinvestmentandbyanimprovingandrobustlabourmarket.Publicexpenditure is also expected to contribute positively to growth through higher investment expenditures. In themedium-term,theoutlookoftheeconomyispositiveandgrowthisexpectedtocontinuealbeitataslowerpacenearitslong-termaverage. TheCompany’smanagementisunabletopredictalldevelopmentswhichcouldhaveanimpactontheCypruseconomyandconsequently,whateffect,ifany,theycouldhaveonthefuturefinancialperformance,cashflowsandfinancialpositionoftheCompany. TheCompany’smanagementbelievesthatitistakingallthenecessarymeasurestomaintaintheviabilityoftheCompanyandthedevelopmentofitsbusinessinthecurrentbusinessandeconomicenvironmentandthattheCompanywillbeabletocontinueoperatingasagoingconcern.




Environmental risk Environmentalrisk is therisktocomplywithenvironmentalregulationsof theRepublicofCyprusandtheEU.Therisk islimitedthroughthemonitoringcontrolsappliedbytheGroup.FurthertheGroupisexposedtopricefluctuationsonemissionrights.TheGroup'spositionisthereforeconstantlymonitoredtoensurecorrectriskmanagement. Compliance risk Complianceriskistheriskoffinancialloss,includingfinesandotherpenalties,whicharisesfromnon-compliancewiththelawsandregulationsoftheRepublicofCyprusandtheEU.TheriskislimitedthroughthemonitoringcontrolsappliedbytheGroup. Litigation risk LitigationriskistheriskoffinanciallosswhicharisesfromtheinterruptionoftheGroup’soperationsoranyotherundesirablesituationthatarisesfromthepossibilityofnon-executionorviolationoflegalcontractsandconsequentlyfromlawsuits.TheriskisrestrictedthroughthecontractsusedbytheGrouptoexecuteitsoperations. Reputation TheriskoflossofreputationarisingfromthenegativepublicityrelatingtotheGroup’soperations(whethertrueorfalse)mayresultinareductionofitsclientele,reductioninrevenueandlegalcasesagainsttheGroup.Themanagementismonitoringsuchdevelopmentsthroughitssustainabledevelopmentandcorporategovernancepoliciesandprocedurestomitigatesuchrisks. Capital management TheBoard’spolicy is tomaintainastrongcapitalbasesoas tomaintain investor,creditorandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.TheBoardofDirectorsmonitorsthereturnoncapitalwhichtheGroupdefinesastheamountofnetincomereturnedasapercentageoftotalshareholderequity. TheBoardseekstomaintainabalancebetweenthehigherreturnsthatmightbepossiblewithhigherlevelsofborrowingsandtheadvantagesandsecurityaffordedbyasoundcapitalposition. 38. Fair values ThefairvalueoftheinvestmentsinsecuritiesquotedontheCyprusStockExchangeisdisclosedinnote20.Thefairvalueofinvestmentpropertyisdisclosedinnote15.Thefairvaluesoftheothermonetaryassetsandliabilitiesareapproximatelythesameastheirbookvalues. 39. Events after the reporting period Therewere nomaterial events after the reporting period, until the date of the signing of the financial statementswhichaffectthefinancialstatementsasat31December2018.

Offices, Factory and Port, VassilikoΤ: +357 24 845 555, F: +357 24 332 651

Registered office and Postal Address1Α Kyriakos Matsis Avenue P.O.Box 22281 CY-1519 Nicosia - Cyprus

Τ: +357 22 458 100, F: +357 22 762 741E: [email protected], [email protected]

An

nu

al R

ep

ort a

nd

Fin

an

cia

l Sta

tem

en

ts 2

018

ANNUALREPORTANDFINANCIALSTATEMENTS

$118$/ 5(3257 $1'),1$1&,$/...STELIOS S. ANASTASIADES Chief Executive Officer: ANTONIOSA. ANTONIOU...

Documents

Transcript of $118$/ 5(3257 $1'),1$1&,$/...STELIOS S. ANASTASIADES Chief Executive Officer: ANTONIOSA. ANTONIOU...