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Number in the Registry of Societes Anonymes: 29709/06/Β/93/1

ACHARNES, ATTICA (4 ANEMONIS STR.)

“STELIOS KANAKIS INDUSTRIAL AND COMMERCIAL S.A., RAW

MATERIALS FOR CONFECTIONARY, BAKERY AND ICE-CREAM”

SEMI-ANNUAL FINANCIAL REPORT

For the period between January 1, 2011 and June 30, 2011

Prepared in accordance with article 5, law 3556/2007 and the pertinent executive

Decisions by the Board of Directors of the Hellenic Capital Commission

It is certified that the present Semi-annual Financial Statement, for the period

01.01.2011-30.06.2011 is the one approved by the Board of Directors of "STELIOS

KANAKIS INDUSTRIAL AND COMMERCIAL S.A., RAW MATERIALS FOR

CONFECTIONARY, BAKERY AND ICE-CREAM" during its meeting on August 25,

2011, posted in the internet at www.stelioskanakis.gr, where it shall remain available to

investors for a time period of at least five (5) years from the date it was prepared and

published.

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TABLE OF CONTENTS

Α. Statements of Board of Directors’ Representatives .................................................. 3

B. Semi-annual Director’s Report.................................................................................. 5

C. Review Report on Interim Financial Information ................................................... 25

D. Interim Semi-annual Financial Statements ............................................................. 27

E. Details and information for the period between January 1 – June 30, 2011 ........... 52

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Α. Statements of Board of Directors’ Representatives

The following statements, which are performed in accordance with article 5, par. 2, law

3556/2007, as applied, are made by the Representatives of the Company’s Board of

Directors, and specifically by the following:

1. Stylianos Kanakis, son of Dimitrios, resident of Dionisos, Attica, at 9 Terpsihori

Street, President of the Board of Directors and Managing Director.

2. Maria, wife of Stylianos Kanakis, resident of Dionysos, Attica, at 9 Terpsihori Street,

Vice-President of the Board of Directors.

3. Athanasios Syrmos, son of Vasileios, resident of Kokkinos Mylos, Acharnes, Attica,

at 4 Metsovou Street, Member of the Board of Directors.

**************************

The undersigned, in our capacity, in accordance with the law and specifically

appointed for this purpose by the Board of Directors of the Societe Anonyme titled

"STELIOS KANAKIS INDUSTRIAL AND COMMERCIAL S.A., RAW

MATERIALS FOR CONFECTIONARY, BAKERY AND ICE-CREAM", trade

title: “STELIOS KANAKIS S.A.” (hereinafter referred to as the “Company” or

“KANAKIS” or “STELIOS KANAKIS") hereby state that to the best of our

knowledge:

(a) the semi-annual financial statements of the Company concerning the period

between 01.01.2011 – 30.06.2011, which have been prepared in accordance to the

applicable accounting standards, present in a true manner the assets and liabilities, the

net position and the results of the Company, in accordance with paragraphs 3-5 of article

5, l. 3556/2007.

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(b) the semi-annual Director’s report presents in a true manner the significant events

that took place during the first six months of 2011 fiscal year, along with their impact on

the semi-annual financial statements, the most important risks and uncertainties for the

2nd

six-month period of 2011 fiscal year, and the important transactions performed

between the Company and its related entities, and

(c) there are no businesses affiliated to the Company, thus the latter does not prepare

any consolidated financial statements.

Acharnes, August 25, 2011

The stating parties

Stylianos Kanakis

ID no.: AI 647976

Maria Kanaki

ID no.: Ρ 004160

Athanasios Syrmos

ID no.: AE 152234

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B. Semi-annual Director’s Report

For the period: 01.01.2011 - 30.06.2011

PREAMBLE

The present Semi-annual Directors' Report (hereinafter referred to as the “Report” or

“Semi-annual Report”) refers to the first six-month period for the current fiscal year of

2011 (01.01.2011-30.06.2011); it has been prepared and is aligned to the pertinent

clauses (article 5), law 3556/2007 (Hellenic Government Gazette (FEK) 91Α/30.4.2007)

and the executive decisions by the Hellenic Capital Market Commission, deriving from

it, and specifically decisions 7/448/2007 and 1/434/2007 of the BoD of the Hellenic

Capital Market Commission.

The present Report includes in a brief, but substantial manner, every separate section

necessary, based on the above legislation, and accurately presents every law-required

information, in order to have a true and comprehensive update about the operations of

the “STELIOS KANAKIS S.A.” Company (hereinafter referred to as the “Company”

or “KANAKIS” or “STELIOS KANAKIS”).

It is noted that during the present fiscal year, there is no business related to the

Company, as defined by the law, thus the Company does not prepare any consolidated

statements, only the company financial statements.

The present Report was prepared in accordance with the terms and conditions of article

5, law 3556/2007 and the above decisions of the BoD of the Hellenic Capital Market

Commission; it is attached to the semi-annual financial statements for this period

(01.01.2011-30.06.2011) and is completely included in the Semi-annual Financial

Report concerning the first six-month period for 2011 fiscal year.

The various sections of the present Report, divided as such in order to facilitate reading,

and the content thereof in particular is as follows:

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Section A’

Important events that took place during the 1st semester of 2011

The important events that took place during the 1st semester of the current fiscal year

(01.01.2011-30.06.2011), as well as their impact (if any) on the semi-annual financial

statements are briefly presented below:

1. Completion of the procedure for reducing the Capital Stock by reducing the

nominal value of every Company share.

The Extraordinary General Assembly of the Company shareholders, which met on

November 2010, had unanimously decided on the following: a) the reduction of the

Company capital stock per the amount of €1.200.000,00 by reducing the nominal value

of each Company share per €0,16 ,i.e. from €0,90 to €0,74 and through the equal refund

- payment of the above amount to Company shareholders, and b) the amendment of

article 5, par. 1 of the Company’s Statute, as a result of the above decision.

After the above reduction, the Company capital stock amounted to €5.550.000,00

divided into 7.500.000 common registered shares, each of €0,74 nominal value. The

Ministry for Finance, Competitiveness and Shipping approved the amendment of

pertinent article 5, par. 1 of the Company Statute, through their decision, ref. no.: Κ2-

11456/13-12-2010.

The beneficiaries for receiving the refund were the investors registered in the files of the

Dematerialized Securities System as on January 11, 2011, while the starting date for the

pay-out was set on January 17, 2011. The payment of cash for the refund began without

any problems on January 17, 2011 through Piraeus Bank S.A.

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2. Participation in 12th

ARTOZA Expo

The presence of STELIOS KANAKIS at the 12th

ARTOZA Expo, which was held at the

new expo centre of METROPOLITAN EXPO, from February 26 to March 1, 2011, was

a true success. Once more, the large number of visitors proved the importance of this

commercial expo for confectionary, pastry and ice-cream businesses, along with the true

interest of professionals concerning new market trends.

In addition, during the expo, the Company’s vivid sales department offered the visitors

of the booth the necessary information concerning the unique competitive advantages of

STELIOS KANAKIS products, while the expert technical team of the Company,

consisting of 5 Confectionary and Ice-Cream Chefs, and 3 Pastry technicians, prepared

and presented at the spot delicious creations before the visitors using both the existing

range of products, as well as the new products that were launched during the expo.

Special reference should be made to the presence of distinguished Chefs of the

companies whose products are represented in Greece by the Company, and specifically

the presence of Mr. Philippe Depape (UNIFINE F & Bi), Mr. Gilles Maisonneuve

(ELLE & VIRE), Mr. Wolfgang Jungmann (KOMPLET) & Ms Sylvia Gaetta (FABBRI

1905).

It should be mentioned that the participation of STELIOS KANAKIS was extremely

successful, since our renovated booth, the preparations offered and our excellent

presence, allowed us to enjoy the most visits among the expo’s booths.

The participation in the specific expo, and general the participation of the Company in

similar expos, supports its corporate image and allows further infiltration in other areas,

apart from Attica; as a result, it plays a major role for supporting the dispersion of its

turnover.

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3. Renewal of Market Making Agreement duration

The Company announced to investors that the Market Operations Commission of

Athens Stock Exchange, through their decision, dated 23.03.2011, approved the renewal

of the capacity of the Market Maker concerning the shares of the Company for the

company – member of ASE “CYCLOS SECURITIES SA”.

It is noted that the Company has signed a market making agreement with CYCLOS

SECURITIES S.A. which is still valid, upon the above decision, on the following main

terms:

1. CYCLOS SECURITIES S.A. shall forward to the Transaction System of Athens

Stock Exchange market making orders (i.e. simultaneous orders for sales and purchases)

on its own behalf over Company shares. For this service, the Company shall pay a fee

to CYCLOS SECURITIES S.A.

2. The duration of the market making contract was been renewed for one (1) year.

4. Development of existing and new activities – New collaborations

During the first six-month period of 2011, as well as during ARTOZA expo, the

Company launched in total 25 new product codes, including the new flavours from

FABBRI 1905 for ice cream and confectionary, concerning Spring / Summer 2011

(Cotton Candy, decorative stars, variegato mango, crockolosi almond and honey), as

well as new chocolate decorations by American company MONA LISA.

The new collaborations achieved by the Company at the beginning of 2011 are also

noteworthy:

a. CARO IMPORT: This refers to the Spanish manufacturing company Dulce de

Leche. With this company, we agreed on an exclusive cooperation for Greece, Cyprus,

Bulgaria, Albania, FYROM, and Kosovo. STELIOS KANAKIS launched by the

specific company the DULCE DE LECHE Pastelero and Heladero products, which are

creams with butter scotch flavour, used in confectionary and ice-creams.

b. CAULLET: this is a French affiliate of UNIFINE F&Bi, through which STELIOS

KANAKIS shall launce the confectionary icing in canister and box packaging,

exclusively for the Greek market.

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c. MAMMA MIA: This is an Italian company manufacturing confectionary and ice-

cream raw materials; its products shall be exclusively distributed in Greece by STELIOS

KANAKIS. Within the context of the above cooperation, the new exquisite chocolate

ripples for confectionary and ice-cream use were launched (Roke, Cookie Crunch,

Biscottino, Bonito, Crunch Bonito, Cocosnik), as well as various confection fruits

(cherry, slice of orange, orange swab, lemon swab).

The new collaborations achieved by the Company shall contribute to the expansion of

the product range represented and to the further quality differentiation of the Company

in regards to competition, while allowing the Company to improve the services provided

to its clients.

3. New exclusive distribution agreement in Cyprus

The Company, seeking to increase its infiltration in Cyprus, completed negotiations

with a company in Cyprus and signed a new agreement of exclusive distribution for its

products in Cyprus. This agreement bolsters the exporting nature of the company,

allowing it to boost its presence in the specific market.

4. Annual Ordinary General Assembly of the Company

On June 14, 2011, at the offices of the registered seat of the Company (4 Anemonis

Street, Acharnes, Attica), the annual Ordinary General Assembly of its shareholders

took place; it was attended, in person or through representatives, by shareholders

representing 6.720.430 common registered shares and equal voting rights, i.e. 89,61%

over the entire 7.500.000 shares and equal voting rights of the Company.

The annual Ordinary General Assembly took the following decisions on the subjects of

the agenda:

In regards to the 1st subject, they unanimously approved the annual Financial Statements

concerning the 2010 fiscal year (01.01.2010-31.12.2010), as well as the entire Annual

Financial Report of the Company’s Board of Directors.

In regards to the 2nd subject, they unanimously approved the Annual Directors' Report

of the Board of Directors, which has been completely included in the Minutes of the

Board of Directors, dated March 15, 2011, as well as the Auditor's Report, dated March

17, 2011, prepared by the Company’s Certified Auditor – Accountant, Mr. Theodoros N.

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Papaeliou, concerning the Financial Statements about the 2010 fiscal year (01.01.2010 -

31.12.2010).

In regards to the 3rd

subject, they unanimously approved the pay-out of the profits for

2010 fiscal year (01.01.2010-31.12.2010), and in particular, they approved the non-

payment of any dividend to Company shareholders among the profits of the 2010 fiscal

year under closing (01.01.2010-31.12.2010) and the formation of an ordinary reserve

amounting to €80,000.00.

Concerning the 4th

subject, they unanimously relieved the members of the Board of

Directors and the Company Auditors from any liability concerning their actions and the

management performed during 2010 fiscal year (01.01.2010-31.12.2010), as well as

about the annual financial statements of the above year.

In regards to the 5th

subject, they unanimously elected as Auditors for 2011 fiscal year

(01.01.2011-31.1.2011), concerning the audit of the annual and semi-annual Financial

Statements of the Company, the following members of the S.O.L. SA auditing company

–a company registered in the Registry of Certified Auditors- and specifically the

following: a) Ordinary Auditor: Certified Auditor – Accountant Mr. Theodoros

Papaeliou, with license no.: 16641, b) Substitute Auditor: Certified Auditor –

Accountant, Mr. Athanasios Vassis, license no.: 21301. The fee of the auditors was set

to the amount of €14.740,00 plus VAT 23%.

Concerning the 6th

subject, they unanimously approved the fees of the members of the

Board of Directors paid during 2010 fiscal year (01.01.2010-31.12.2010) for the services

provided by them, amounting to €559.395,63 (gross payments) and preapproved the fees

of the BoD members for the period between 01/06/2011 – 31/05/2012.

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Section B'

Main risks and uncertainties

The main risks and uncertainties, applying also to the second six-month period of 2011

fiscal year, are the following:

The Company is active in an intensely competitive environment. Its specialized know-

how, the creation of a strong brand name, along with constant product research, market

research and launching of new products, focused on quality and the ability for

immediate and complete satisfaction of current and future demand, along with the

creation of strong organizational and functional infrastructures, which combine the

commercial promotion of the products while providing training for the proper

application and use thereof, help the Company stay constantly competitive, while

increasing its infiltration in new markets (in regards to both products and territories); as

a result, there are no substantial impacts from the negative conditions of the external

environment.

The standard financial and other risks for the Company, which it may have to deal with

during the 2nd

six-month period of 2011 fiscal year (01.01.2011-30.06.2011) include

market risks (changes in currency exchanges, market risks, credit risk, liquidity risk,

interest rate risk, stock risk, and demand reduction risk due to the general consumer

recession).

Particularly:

1. Foreign currency risk

The large majority of Company transactions and balances are in Euros. There are some

minor obligations, in comparison to the turnover of the Company, expressed in a

different currency than Euro, i.e. transactions amounting to 2.575.241,63 Danish

Krones, equal to €345.266,82 as on 30.06.2011; as a result, the exposure to foreign

currency risks is present, however, due to the limited size thereof, is considered

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completely under control, firstly due to the amount of such transactions, and secondly,

due to the fact that the specific currency is not under significant fluctuation in regards to

Euro. Company management is constantly monitoring the foreign currency risks that

may come up and is ready to take any necessary measure; however, currently, this risk is

not considered substantial, thus it is not expected to have a significant impact on the

financial performance of the Company.

2. Increase in the prices of raw materials

The increases of the princes of the commodities imported and then forwarded by the

Company (mainly from Europe) during the past five years reach 3-10% per annum on

average; on a global level, larger increases are expected in regards to wheat-based

products and oils, due to a series of destructive events (fires – draughts). As a result,

exposure in regards to this risk is considered significant in regards to the 2nd

six-month

period of the current fiscal year; in any case, and due to the fact that this risk derives

usually from sources which the Company is unable to completely control (such as the

commercial policy of its suppliers, etc.), Company management is promptly taking the

necessary steps in order firstly to limit through special agreements with its suppliers its

exposure at this risk, and, secondly, in order to adjust its pricing and commercial policy,

so that any such increases do not affect its profitability and its financial performance.

3. Credit risk

The Company does not have a significant concentration of credit risk for any of its

contracted parties, mainly due to the large diffusion of its clientele (currently amounting

to approx. 2.200 customers). Company management, based on its bylaws is taking steps

in order to ensure that the sales of goods and services are performed to clients of

increased financial solvency. In any case, due to the conditions of the economic

recession, which has affected almost every sector of the financial activities in the

domestic market, the risk that may come up from client defaulting is considered

significant, regardless of the fact that the Company has taken measures that would

reduce the negative impacts of such defaulting.

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4. Liquidity risk

The Company has powerful capital structure and an increased liquidity rate. The general

liquidity of the Company is substantial. Indicatively, the rate of general liquidity

(Circulating Assets vs. Short-term Obligations) is 3,29 ,while the rate of immediate

liquidity (Circulating Assets minus reserves vs. Short-term Obligations) amounts to

2,63. The Policy that has been consistently applied by the Company during the past

years is the exploitation of cash discounts offered by its suppliers, while at the same

time, Company management has secured loans on favourable terms by collaborating

banks; this ability is seldom used due to the increased liquidity of the Company. As a

result, this risk, in regards to the 2nd

six-month period of the current fiscal year, is

considered significantly law; in any case, it is presented in the present analysis, since in

an environment of widespread financial crisis and intense internal recession, the

provision of proper information to Company shareholders and investors is necessary in

regards to financial subjects, such as the liquidity and the amount of loans taken by the

Company.

The following table presents the expiration dates of the financial obligations of the

company, as valid at the end of the six-month period (30.06.2011), along with a

comparative presentation of the respective period for 2010:

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30/6/2011

Average Interest

Amounts in Euros 0-6 months 6-12

months 1-5 years Total

Suppliers & various creditors 3.382.573,23 0,00 0,00 3.382.573,23

Financial leases 0,00 0,00 0,00 0,00

Bank loans 5,5 242.869,94 0,00 0,00 242.869,94

Total 3.625.443,17 0,00 0,00 3.625.443,17

30/6/2010

Average Interest

Amounts in Euros 0-6 months 6-12

months 1-5 years Total

Suppliers & various creditors 4.775.920,40 0,00 0,00 4.775.920,40

Financial leases 0,00 0,00 0,00 0,00

Bank loans 3,2 0,00 0,00 0,00 0,00

Total 4.775.920,40 0,00 0,00 4.775.920,40

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5. Interest rate risk

The management of the Company is constantly monitory the trends of interest rates as

well as the financing needs of the Company; however, due to the small dependence of

the Company on bank loans (€242.869,94 on 30.06.2011) there is no significant interest

rate risk. The specific reference is included in the present Report in order to inform

investors on the small dependence of the Company on bank loans, a fact that is very

important and showcases the healthy financial structure of the Company.

6. Stock depreciation risk

The Company is taking every necessary measures (insurance, safekeeping), in order to

minimize the risk related from damages caused by the loss of stock due to natural

disasters. At the same time, due to the increased turnover rate of stock (84 days), and

also due to their significant duration (expiration date), the stock depreciation risk is

significantly reduced; however, if the wider financial climate is further aggravated due

to the financial crisis and subsequent reduction of the purchasing power of the Company

clients, then the specific risk may become important during the 2nd

six-month period of

2011. For this reason, the entire Company circuit of orders and distribution of stock has

been adjusted to the current market conditions, with the purpose of avoiding, as much as

possible, stock building.

7. Reduction of demands due to general consumer recession

The Company belongs to the field of foods; as a result, the demand for the commodities

in which the Company is active remains steady, despite the general consumer recession.

However, the projections on demand cannot be accurate currently, since the rapid

aggravation of the financial climate domestically has inevitably affected demand.

Consequently, this risk, in view of the prevailing conditions, is considered important in

regards to the 2nd

six-month period of the present fiscal year, since any reduction in

demand would definitely affect Company results.

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Section C’

Important transactions with related parties

The present section includes the most important transactions between the Company and

its related parties, as defined in International Accounting Standard 24. Specifically, this

Section includes the following:

(a) transactions between the Company and any related party performed during the first

six-month period of 2011 fiscal year (01.01.2011-30.06.2011) that had a significant

impact on the financial position or performance of the Company during this fiscal year,

(b) any changes in transactions between the Company and any related party that has

been included in the past annual Report, which could have a significant impact on the

financial position or performance of the Company during the first six-month period of

2011 fiscal year.

It must be noted that the reference to the above transactions, presented below, shall

include the following details:

(a) The amount of such transactions,

(b) The balance thereof at the end of the fiscal year (30.6.2011),

(c) The nature of the relation between the related party and the Company,

and

(d) Any information on the transactions that are necessary in order to understand

the financial position of the Company, provided that such transactions are

important and that they have not been performed on standard market terms.

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TIME PERIOD 01.01-30.06.11

TABLE I

Sales of goods and services

To subsidiaries 0,00

To other related parties 0,00

Purchases of goods and services

From subsidiaries 0,00

From other related parties 0,00

Sales of fixed assets

To subsidiaries 0,00

To other related parties 0,00

Demands

From subsidiaries 0,00

From other related parties 0,00

Liabilities

To subsidiaries 0,00

To other related parties 0,00

TABLE 2: Provisions to management and key company executives

A. Transactions and rewards for the members of the Board of Directors and

management members 320.621,17

B. Demands from members of the BoD and management members 0,00

C. Liabilities to members of the BoD and management members 18.335,10

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Notes:

1. There are no legal entities related to the Company.

2. No loans have been allocated to members of the Board, or to any other key personnel

(or to their families).

3. The amounts stated above in category A, Table 2, refer to the gross payments paid to

the directing and other executives of the Company during the above period, for their

personal services - work offered to the Company, based on the pertinent decisions by the

Ordinary General Assemblies of the Company Shareholders; these are analysed as

follows:

PERSON TITLE FISCAL YEAR FEE BALANCE AS ON

30.6.2011

KANAKIS STYLIANOS

PRESIDENT &

MANAGING

DIRECTOR 98.085,00 0,00

KANAKI MARIA VICE-PRESIDENT

OF THE BoD 65.390,00 0,00

KANAKI ELEFTHERIA

ASSISTANT

MANAGING

DIRECTOR 65.390,00 18.335,10

SYRMOS ATHANASIOS MEMBER OF THE

BoD 58.193,44 0,00

VATALIDIS CHRISTOS MEMBER OF THE

BoD 33.562,73 0,00

TOTAL 320.621,17 18.335,10

4. Apart from the above fees, there are no other transactions pending between the

Company and the above executive members and members of the BoD.

5. There is no transaction that has occurred without applying standard market terms.

Section D’

Capital Stock – Equity

1. The capital stock of the Company currently amounts, after the last decision by the

Extraordinary General Assembly of the shareholders, dated November 1, 2010, to

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€5.550.000,00; it has been completely paid and is divided to 7.500.000 common

registered shares, each of €0,74 nominal value.

Every Company share is listed in Athens Stock Exchange and is traded in the category

of Medium and Small Capitalization.

It is noted that after the recent amendment of ASE Rulebook, the specific category shall

be made obsolete upon the revision of the market making categories for October 2011;

then, the shares shall be transferred to their respective new categories, based on this

amendment.

2. Furthermore, the significant direct or indirect participations in the capital stock and

voting rights of the Company, as provided for by the clauses of articles 9 to 11, law

3556/2007, are the following:

• Stylianos Kanakis: 5.407.932 shares and voting rights (percentage: 72,11%).

• Maria Kanaki: 600.000 shares and voting rights (percentage: 8,00%).

3. The Company does not own any equity shares and no decision has been issued by the

competent body of the Company in regards to the acquisition of equity shares on its

behalf.

Section E’

Information on labour or environmental issues

1. During the 1st six-month period of 2011 the Company employed on average 67

persons. It should be noted that the relations between the Company and its personnel are

excellent and no labour-related problems have risen, since one of the main priorities of

the Company is to maintain and support a proper working environment.

The Company is active and takes every necessary measure in order to fully comply with

the applicable clauses of labour and social security law.

2. Acknowledging the need for constant improvement concerning its environmental

performance, based on the principles of sustainable development, the Company aims to

a balanced financial development, in harmony with the natural environment. By

following a course of sustainable development, the Company’s operations are performed

in a manner that protects the environment and personnel health and safety, while also

protecting the local community and the public.

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Section F’

Progress, performance and position of the Company – Financial and other

performance rates

The present section includes a proper and concise presentation of the progress,

performance and position of the Company, in such a manner that it allows for a balance

and thorough analysis of the Company's progress, performance and position in relation

to its volume and complexity.

1. Company progress:

The course of the basic Company financial rates during the past four years is as follows:

Course

30.06.08 30.06.09 30.06.10 30.06.11

Total assets 17.707 19.751 21.681 20.588

Total of equity capitals 13.322 15.384 15.767 15.992

Turnover 8.561 8.553 8.377 8.558

Profits before taxes 1.093 1.040 1.036 801

Profits after taxes 818 776 623 609

The percentile change of sales and profits is as follows:

30.06.08 30.06.09 30.06.10 30.06.11

Change in sales 10,90% -0,09% -2,06% 2,16%

Change in profits before taxes 7,68% -4,85% -0,38% -22,68%

Change in profits after taxes 15,60% -5,13% -19,72% -2,41%

Important note: The profits after taxes of the previous period (first semester of 2010)

have been charged with the extraordinary social responsibility contribution, amounting

to 175 thousand Euros. Without taking into consideration this charge, the profits after

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taxes have been reduced by 19,5% in comparison to the respective profits of the 1st

semester of 2010.

2. Company performance

Certain amounts and pertinent indices are provided below in regards to the performance

of the Company during the first six-month period of 2011 and the respective period for

2010, 2009, and 2008:

(amounts in th. of €) 30.06.08 30.06.09 30.06.10 30.06.11

Earnings before interest, taxes & depreciations

(EBITDA) 1.277 1.176 1.161 950

Profits before taxes 1.093 1.040 1.036 801

Profits after taxes 818 776 623 609

Return on Equity (before taxes) 16% 14% 13% 10%

Return on capital employed (after taxes) 9% 8% 6% 6%

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3. Financial and other basic performance and company position rates:

Certain indices, financial or not, have been provided below, which refer to the basic

performance and position of the Company:

30.06.08 30.06.09 30.06.10 30.06.11

Turnover rate (days)

Average days receivables outstanding 174 183 192 209

Average days stock outstanding 69 74 86 84

Average days payables outstanding

for short-term liabilities 135 126 179 126

Capital structure (times)

Equity to total Capitals 0,75 0,78 0,73 0,78

Equity to total Liabilities 3,21 3,62 2,67 3,48

Turnover rate of equity 1,29 1,11 1,06 1,07

Turnover rate of fixed assets 2,34 2,21 2,20 2,27

Investments (Euros) Profit before taxes per share

0,29 0,28 0,28 0,21

Share book value 1,78 2,05 2,10 2,13

Section G’

Anticipated course and progress of the Company for the 2nd

six-month period of

2011

In the present Section, and in regards to the operations of the Company during the

second six-month period of 2011, certain details and evaluations of qualitative nature

have been included, in order to present this progress in the safest way possible.

Such details and evaluations are as follows:

23

A. The 2nd six-month period of 2011 is also expected to be very difficult, due to the

negative conditions of the economy that have seriously affected the domestic market,

which is the main Company field of operations.

In reality, it is impossible to accurately forecast any future developments and the

Company’s management is unable to foresee the course of the market, due to the current

social and financial conditions, as well as due to the duration and intensity of the

recession faced by domestic market; obviously, the above has had a serious impact on

demand, even in the field of food, which is usually more resistant in comparison to other

fields.

B. The sales of the Company during the 1st semester of the year according to historical

data cover approx. 46% of the annual turnover, since 54% of the Company’s turnover is

realized during the 2nd

six-month period of each fiscal year; as a results, the profits of

the 2nd

period will be larger than those of the 1st six-month period. Currently, there is no

event that could lead to a different evaluation concerning the fiscal year of 2011.

C. The Company believes that it is capable of offsetting any reduction of demand in

areas of Central Greece, Epirus and Thrace through the increase of tourism noted mainly

in the islands of the Aegean and Ionian Seas.

24

Section H’

Significant events after June 30, 2011 and until the preparation of the present

No significant events have occurred from the expiration of the 1st six-month period of

2011 fiscal year and until the present Report was prepared.

VERIFICATION BY CERTIFIED AUDITOR – ACCOUNTANT

It is hereby verified that the above semi-annual Report of the Board of Directors,

consisting of 20 pages, is the one referred to in the Review Report I provided on

26.08.2011.

Athens, August 26, 2011

Certified Auditor - Accountant

Theodoros N. Papaeliou

Lic. no.: 16641

25

C. Review Report on Interim Financial Information

To the Shareholders of “STELIOS KANAKIS AE”

Introduction

We have reviewed the accompanying separate condensed statement of financial position

of STELIOS KANAKIS AE (the “Company”) as at 30 June 2011 and the relative

separate condensed income statement and statements of comprehensive income, changes

in equity and cash flows for the six-month period then ended, as well as the selected

explanatory notes, that constitute the interim financial information, which is an integral

part of the six-month financial report under the article 5 of L. 3556/2007. Management

is responsible for the preparation and presentation of this condensed interim financial

information, in accordance with International Financial Reporting Standards, as adopted

by the European Union (EU) and which apply to Interim Financial Reporting

(International Accounting Standard “IAS 34”). Our responsibility is to express a

conclusion on this condensed interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review

Engagements 2410, “Review of Interim Financial Information Performed by the

Independent Auditor of the Entity”. A review of interim financial information consists

of making inquiries, primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures. A review is substantially

less in scope than an audit conducted in accordance with International Standards on

Auditing and consequently does not enable us to obtain assurance that we would become

aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the

accompanying interim financial information is not prepared, in all material respects, in

accordance with International Accounting Standard “IAS 34”.

26

Report on Other Legal and Regulatory Requirements

Our review did not identify any inconsistency or mismatching of the other data of the

provided by the article 5 of L. 3556/2007 six-month financial report with the

accompanying financial information.

Athens, 26 August 2011

THEODOROS N. PAPAILIOU

Certified Public Accountant Auditor

Institute of CPA (SOEL) Reg. No. 16641

Associated Certified Public Accountants s.a.

member of Crowe Horwath International

3, Fok. Negri Street – 112 57 Athens, Greece

Institute of CPA (SOEL) Reg. No. 125

27

D. Interim Semi-annual Financial Statements

Statement of Comprehensive Income

Period Period

Note 01.01-30.06.11 01.01-30.06.10 01.04-30.06.11 01.04-30.06.10

Turnover 16 8.557.915,95 8.377.447,65 4.534.437,56 4.119.082,08

Cost of sales 18 5.685.835,78 5.380.026,45 3.045.080,34 2.666.598,52

Gross profit 2.872.080,17 2.997.421,20 1.489.357,22 1.452.483,56

Other operational incomes 17 178.897,53 116.414,91 99.911,61 81.574,13

Management expenses 18 316.589,75 296.783,75 169.929,95 139.547,83

Cost of sales 18 1.859.886,15 1.724.161,81 930.483,36 797.966,46

Other operational expenses -39.953,46 -52.063,95 -8.794,17 -30.521,32

Profits before taxes, of

financing and investments 834.548,34 1.040.826,60 480.061,35 566.022,08

Financial incomes 1.545,23 3.279,82 1.524,51 1.505,04

Financial expenses 18 35.065,24 7.908,26 19.400,62 3.909,09

Profits before taxes 801.028,33 1.036.198,16 462.185,24 563.618,03

Income tax 19 192.064,87 425.485,80 128.872,85 316.427,91

Profits after taxes 608.963,46 610.712,36 333.312,39 247.190,12

Distributed to:

Company shareholders 608.963,46 610.712,36 333.312,39 247.190,12

Profits after taxes per share 0,081 0,081 0,044 0,033

28

Statement of Comprehensive Income

Period Period 01.01-30.06.11 01.01-30.06.10 01.04-30.06.11 01.04-30.06.10

Net period profits 608.963,46 610.712,36 333.312,39 247.190,12

Other total profits after taxes 0,00 12.282,71 0,00 0,00

Total period income 608.963,46 622.995,07 333.312,39 247.190,12

Profits after taxes per share in total

earnings 0,081 0,083 0,044 0,033

Concise results

Profits before taxes 801.028,33 1.036.198,16 462.185,24 563.681,03 Financial incomes 1.545,23 3.279,82 1.524,51 1.505,04 Financial expenses 35.065,24 7.908,26 19.400,62 3.909,09 Fiscal year depreciations 115.949,69 120.570,96 60.046,26 61.672,42

Profits before taxes, of financing

and investment results and

depreciations 950.498,03 1.161.397,56 540.107,61 627.694,50

29

Statement of Financial Position

Non-circulating assets Note 30.06.11 31.12.10

Own-used tangible fixed assets 6 7.528.412,61 7.542.372,89

Intangible fixed assets 7 33.706,66 37.884,80

Other non-circulating assets 24.852,49 23.920,49

Total of non-circulating assets 7.586.971,76 7.604.178,18

Circulating assets

Inventories 9 2.604.007,13 2.648.851,08

Trades and other receivables 10 9.784.212,47 10.241.874,10

Other demands 11 502.997,52 532.660,58

Cash available and equivalents 12 109.721,60 510.309,23

Total circulating assets 13.000.938,72 13.933.694,99

Total assets 20.587.910,48 21.537.873,17

Capital stock 13 5.550.000,00 5.550.000,00

Reserves at premium 13 458.596,86 458.596,86

Other reserves 13 921.017,95 841.017,95

Balance of profits carried forward 13 7.989.984,28 7.461.020,82

Revaluation differences 13 1.072.141,30 1.072.141,30

Total of equity capitals 15.991.740,39 15.382.776,93

Obligations for personnel 173.552,83 173.552,83

Deferred tax liabilities 8 364.195,73 352.260,94

Other provisions 130.000,00 100.000,00

Total non-current liabilities 667.748,56 625.813,77

Short-term loans 14 242.869,94 0,00

Current income tax 302.978,36 403.971,11

Suppliers and other liabilities 15 3.382.573,23 5.125.311,36

Total current liabilities 3.928.421,53 5.529.282,47

Total equity capitals and liabilities 20.587.910,48 21.537.873,17

30

Changes in Equity

Capital

stock Balance

above par Ordinary

reserve Other

reserves Revaluation

differences

Balance

carried

forward

Total

Balance on January 1, 2011 5.550.000,00 458.596,86 753.000,00 88.017,95 1.072.141,30 7.461.020,82 15.382.776,93

Other total earnings after taxes

0,00 0,00 0,00 0,00 0,00 608.963,46 608.963,46

Increase of capital stock 0,00

Pay-out of profits by the G.A. 0,00 0,00 80.000,00 0,00 0,00 -80.000,00 0,00

Acquisition of equity shares 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Dividend for 2010 approved by the

shareholders

0,00 0,00 0,00 0,00 0,00 0,00 0,00

Balance as on June 30, 2011 5.550.000,00 458.596,86 833.000,00 88.017,95 1.072.141,30 7.989.984,28 15.991.740,39

31

Capital

stock Balance

above par Ordinary

reserve Other

reserves Revaluation

differences

Balance

carried

forward

Total

Balance on January 1, 2010 3.825.000,00 3.293.857,69 663.000,00 199.965,18 1.010.727,76 7.501.364,50 16.493.915,13

Other total earnings after taxes

0,00 0,00 0,00 0,00 12.282,71 610.712,36 622.995,07

Increase of capital stock 2.925.000,00 -2.813.052,77 -111.947,23 0,00

Payout of profits by the G.A. 0,00 0,00 90.000,00 0,00 0,00 -90.000,00 0,00

Acquisition of equity shares 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Dividend for 2009 approved by the

shareholders

-1.350.000,00 -1.350.000,00 0,00 0,00 0,00 0,00 0,00

Balance as on June 30, 2010 6.750.000,00 480.804,92 753.000,00 88.017,95 1.023.010,47 6.672.076,86 15.766.910,20

32

Cash Flow Statement

01.01-30.06.11 01.01-30.06.10

Operational activities Profits before taxes (continued activities) 801.028,33 1.036.198,16

Plus / minus adjustments for:

Depreciations 115.949,69 120.570,96 Provisions 40.000,00 50.000,00 Results (incomes, expenses, profits and losses) of investments

0,00

Debit interest and relative expenses 35.065,24 7.908,26

Plus/ minus adjustments for changes in the working capital accounts,

or related to operational activities: Decrease (increase) of reserves 44.843,95 -94.768,66 Decrease / (increase) of demands 446.392,69 574.721,60 (Decrease) / increase of liabilities (apart from banks) -693.448,04 67.839,52 Minus: Debit interest and relative expenses paid -26.511,22 -7.908,26 Paid taxes -100.992,76 -164.280,77 Total of inflows / (outflows) from operational activities (a)

662.327,88 1.590.280,81

Investing activities Purchase of tangible and intangible fixed assets -97.811,27 -150.193,34 Collected interest 1.545,23 3.279,82 Total of inflows / (outflows) from investing activities (b) -96.266,04 -146.913,52 Financing activities Payments for the reduction of the capital stock -1.199.420,16 0,00 Collections from issued / undertaken loans 232.770,69 0,00 Loan payments 0,00 -3.890,93 Total of inflows / (outflows) from financing activities (c)

-966.649,47 -3.890,93

Net increase / (decrease) in cash available and equivalents for the

period (a) + (b) + (c) -400.587,63 1.439.476,36 Cash available and cash equivalent at the start of the period 510.309,23 653.855,70 Cash available and cash equivalent at the end of the period 109.721,60 2.093.332,06

33

Notes on the financial statements

1. Background:

“STELIOS KANAKIS S.A.” Company (hereinafter referred for simplicity reasons as the

“Company” or “STELIOS KANAKIS” is a purely commercial company, active in the

area of trading and distributing raw materials for pastry, bakery and ice-cream. The

products represented, distributed and handled are imported from countries of West

Europe, mainly from France, Belgium, Germany, Denmark and Italy. The facilities and

registered seat of the company are located in the Municipality of Acharnes, at 4

Anemonis Street, Postcode: 136 78, while its branch is located in Industrial Zone of

Sindos, Thesssaloniki, C' Stage, Building block no.: 38, Postcode: 57022. The company is

set up as a Societe Anonyme; its corporate website address is www.stelioskanakis.gr and

is listed in Athens Stock Exchange (listing date: 18.07.2002), with Share code in OASIS:

"KANAK".

2. Summary of important accounting policies

2.1 Drafting framework for the financial statements

The concise interim financial statements regarding the 1st six-month period of 2011 for

the company have been prepared in accordance to the International Financial Reporting

Standards (hereinafter IFRS), adopted by the European Union, and follow the

International Accounting Standard (IAS) 34, in regards to interim financial statements.

The semi-annual financial statements have been approved for publication by the

company’s Board of Directors, during its meeting on 25.08.11. For the preparation of the

semi-annual financial statements of 30.06.11, the accounting principles applicable on

31.12.10 were applied.

Important note: The preparation of the financial statements in accordance to the generally

acceptable accounting principles requires the use of calculations and assumptions that

affect the stated amounts of assets and obligations, the notification of any requirements

and obligations on the date of the financial statements, as well as the stated amounts of

34

incomes and expenses during the period stated. Despite the fact that these calculations are

based on the best possible knowledge of the Company’s management, in relation to the

current conditions and actions, the actual results may be different than those calculations;

as a result, care is required by the reader of the financial statements.

3. Significant accounting principles

3.1 Tangible fixed assets

The real property (land and buildings) are evaluated at their fair value, which is performed every

four (4) years, at least, by independent evaluators. The remaining tangible fixed assets are

evaluated at their acquisition cost, minus the accumulated depreciations and any impairment

losses. The increases in the accounting value of the tangible assets, resulting from readjustments

in the fair value are registered in the reserves of the equity capitals. Any reductions in the

accounting value are performed by reducing the reserves, if there was such as reserve formed in

the past, for the same asset. Any reductions above the value of the reserve, as well as any

reductions in the accounting value of the assets, for which there is no readjustment reserve, are

registered in the results as an expense.

The difference between the depreciations performed over the readjusted value of the tangible

assets, which are also registered in the expenses of the depreciations based on the acquisition

cost of the tangible assets, is transferred from the readjustment reserve to the profits carried

forward, through their full amortization or sale.

The value of the fields – properties cannot be amortized; the depreciations of the other elements

of the tangible assets are calculated with the fixed method during their useful life, which is as

follows:

- Buildings 45 – 55 Years

- Plant 6-8 Years

- Vehicles 8-10 Years

- Miscellaneous equipment 4-6 Years

The residual values and useful lives of the tangible fixed assets are subjected to re-examination

in each annual Balance Sheet.

35

The registration of additions, in the company books, is performed at the acquisition cost, which

shall include all directly related expenses for the acquisition of the elements.

Later expenses shall be registered by increasing the accounting value of the tangible fixed assets,

only if it is estimated that future financial benefits shall result for the company, and that their

cost can be credibly evaluated. Any repairs and maintenances, when performed, are registered

against the results of operations.

3.2 Intangible fixed assets

Software licenses are evaluated at acquisition cost, minus depreciations. The depreciations are

performed with the fixed method during the useful life of these elements, which varies between

4-5 years.

3.3 Deferred income tax

Deferred income tax is defined by the liability method resulting by the temporary differences

between the accounting value and the tax base of the assets and liabilities.

The deferred tax is defined by the tax coefficients applicable on the date of the Balance Sheet.

The deferred tax demands are registered at the extent where a future tax profit will be present for

the use of the temporary difference creating the deferred tax demand.

36

3.4 Inventories

Inventories are evaluated at the lowest value between acquisition cost and clear liquidating value.

The acquisition cost is defined by the method of the weighted average term. The lending cost is

not included in the acquisition cost of the inventories. The net liquidating value is estimated in

accordance to the current sale prices of inventories in the context of usual activity, after

deducting any sales expenses, according to each individual case.

3.5 Trades and other receivables

Trades and other receivables are initially registered at their fair value. Impairment losses (losses

from doubtful demands) are recognized when there is objective proof that the company is not in

the position to collect all due amounts based on the contractual terms. The impairment loss is

registered as an expense in results.

3.6 Cash available and equivalents

Cash available and equivalents include cash, demand deposits and short-term, up to 3 months,

investments, of high liquidity and low risk.

3.7 Exchanges in foreign currency

Any exchanges noted in a foreign currency shall be converted to Euro, based on the exchange

rate valid on the transaction date. During the preparation of the financial statements, currency

assets and liabilities, noted in a foreign currency, are converted to Euro, based on the exchange

rate valid on that date. Exchange differences resulting from this conversion shall burden the

results of the closing accounting period.

37

3.8 Capital Stock

Ordinary shares are registered in equity capitals. Direct costs for issuing shares are presented

after deducting the relative income tax, by reducing the issuing product. Direct costs related to

the issuing of shares for the acquisition of businesses are included in the acquisition cost of the

business to be acquired.

The acquisition cost of the equity shares, reduced through the application of income tax (per

instance), is noted and deducted from the equity capitals of the company, until the equity shares

are sold or revoked. Every profit or damage resulting from a sale of equity shares (cleared from

any costs related to the transaction and from income tax, if necessary), appears as a reserve in

equity capitals.

3.9 Dividends

Payable dividends are noted as an obligation on the time they were approved by the Ordinary

General Assembly of shareholders.

3.10 Provisions to personnel

The obligation of the company before the individuals receiving a wage from it, in regards to the

future payment of provisions, depending on each person’s years of service, is included and

presented in accordance to the earned right of each employee, expected to be paid on the date of

the financial statements.

38

3.11 Provisions

Provisions for the restoration of the environment, restructuring costs and indemnifications are

included when:

a) There is a current lawful or inferred commitment as a result of past events, and

b) It is possible to require an outflow of resources in order to settle the commitment, and

c) The required amount can be credibly evaluated.

3.12 Financial tools

The basic financial tools of the company are cash, bank deposits, short-term demands and

liabilities. Due to the short-term nature of these elements, the Management of the company

believes that their fair value is identical to the value noted in the accounting books.

3.13 Recognition of incomes

Incomes include the fair value of the sold items and provided services, cleared from retrievable

taxes, discounts and returns. The registration of income is effectuated via the following manner:

(a) Sales of goods

The sales of goods are recognized when the Company delivers the goods to customers, the goods

are then acceptable by them and the collection of the demand is reasonably ensured.

(b) Provision of services

Income from services rendered are accounted on the basis of the service’s completion stage, in

relation to its estimated total cost.

39

4. Important Accounting Assessments and judgments

Management assessments and judgements are under continuous re-examination, based on the

historical data and expectations for the future events considered reasonable in accordance to

current data. Any assessments and assumptions that may result to adjusting the accounting values

of the assets and obligations for the immediate coming years mainly involve unaudited tax

accounting periods.

The obligations in regards to expected taxes after audit are recognized on the basis of

assessments supported on previous audits. When the final result of the audit is different from the

one initially recognized, the difference shall burden the income tax of the relative accounting

period.

5. Information per segment

The Company is active in Greece, Cyprus and in the Balkans. The company allocates its

commodities through its own distribution network for the district of Attica, and through dealers

for the rest of Greece. The sales of the company, through its private network and dealers are as

follows:

30/6/2011

Sales Cost of sales Gross profit %

Wholesalers 2.629.240,04 1.731.831,35 897.408,69 34,13%

Network 5.928.675,91 3.954.004,43 1.974.671,48 33,31%

Total 8.557.915,95 5.685.835,78 2.872.080,17 33,56%

30/6/2010

Sales Cost of sales Gross profit %

Wholesalers 2.493.738,02 1.611.146,01 882.592,01 35,39%

Network 5.883.709,63 3.768.880,44 2.114.829,19 35,94%

Total 8.377.447,65 5.380.026,45 2.997.421,20 35,78%

40

Sales per geographical territory are as follows:

PERIPHERIES 30/6/2011 30/6/2010

1 ATTICA 4.016.064,54 3.821.645,92

2 MACEDONIA 1.765.511,94 1.802.386,82

3 PELOPONNESUS 683.598,00 661.060,47

4 THESSALY 519.223,67 532.568,27

5 CENTRAL GREECE 433.598,75 433.717,92

6 AEGEAN ISLANDS 343.275,14 324.202,90

7 CRETE 327.085,46 291.479,12

8 THRACE 213.494,36 248.834,93

9 EPIRUS 115.135,76 131.991,90

10 IONIAN ISLANDS 35.308,76 34.763,30

11 CYPRUS - EXPORTS 105.619,57 94.796,10

TOTAL 8.557.915,95 8.377.447,65

41

6. Facilities, plant and equipment

The changes in the fixed assets during the period 01.01.11 – 30.06.11 and during the

period 01.01.10 – 30.06.10 are noted below:

Value of acquisition or

evaluation Fields – land

property Buildings -

Facilities Mechanical

equipment Other fixed

assets Total

Inventory on 01.01.11 3.586.946,40 3.944.674,02 572.636,25 1.418.602,88 9.522.859,55 Additions 0,00 1.830,00 0,00 94.295,17 96.125,17 Reductions 0,00 0,00 0,00 0,00 0,00

Balance on 30.06.11 3.586.946,40 3.946.504,02 572.636,25 1.512.898,05 9.618.984,72

Accrued depreciations

Inventory on 01.01.11 0,00 409.009,25 505.730,30 1.065.747,11 1.980.486,66 Additions 0,00 39.452,51 10.108,87 60.524,07 110.085,45 Reductions 0,00 0,00 0,00 0,00 0,00

Balance on 30.06.11 0,00 448.461,76 515.839,17 1.126.271,18 2.090.572,11

Undepreciated value

On 01.01.11 3.586.946,40 3.535.664,77 66.905,95 352.855,77 7.542.372,89

On 30.06.11 3.586.946,40 3.498.042,26 56.797,08 386.626,87 7.528.412,61

Value of acquisition or

evaluation Fields – land

property Buildings -

Facilities Mechanical

equipment Other fixed

assets Total

Inventory on 01.01.10 3.568.850,20 3.926.733,80 558.711,25 1.311.516,73 9.365.811,98 Additions 18.061,20 0,00 305,00 98.850,14 117.216,34 Reductions 0,00 0,00 0,00 0,00 0,00

Balance on 30.06.10 3.586.911,40 3.926.733,80 559.016,25 1.410.366,87 9.483.028,32

Accrued depreciations

Inventory on 01.01.10 0,00 330.287,23 475.145,95 952.954,10 1.758.387,28 Additions 0,00 39.259,45 20.747,05 54.704,79 114.711,29 Reductions 0,00 0,00 0,00 0,00 0,00

Balance on 30.06.10 0,00 369.546,68 495.893,00 1.007.658,89 1.873.098,57

Undepreciated value

On 01.01.10 3.568.850,20 3.596.446,57 83.565,30 358.562,63 7.607.424,70

On 30.06.10 3.586.911,40 3.557.187,12 63.123,25 402.707,98 7.609.929,75

42

7. Intangible fixed assets

The changes in the intangible fixed assets are noted below; their balance refers

completely to software used, for the periods between 01.01.11 - 30.06.11 and 01.01.10 -

30.06.10 respectively.

Value of acquisition or evaluation Software

Inventory on 01.01.11 150.461,82

Additions 1.686,10

Reductions 0,00

Balance on 30.06.11 152.147,92

Accrued depreciations

Inventory on 01.01.11 112.577,02

Additions 5.864,24

Reductions 0,00

Balance on 30.06.11 118.441,26

Undepreciated value

On 01.01.11 37.884,80

On 30.06.11 33.706,66

Value of acquisition or evaluation Software

Inventory on 01.01.10 116.059,80

Additions 32.977,00

Reductions 0,00

Balance on 30.06.10 149.036,80

Accrued depreciations

Inventory on 01.01.10 97.908,37

Additions 5.859,67

Reductions 0,00

Balance on 30.06.10 103.768,04

Undepreciated value

On 01.01.10 18.151,43

On 30.06.10 45.268,76

43

The Depreciations for the period 01.01.11 up to 30.06.11 reached the amount of

€115.949,69 (tangible €110.085,45 and intangible €5.864,24) and charged with €5.386,31

the expenses for management operation and with €110.563,38 the distribution operation

expenses. No tangible liens have been placed on the fixed assets of the company.

8. Deferred tax liabilities

Below follows the activity and the balances of the deferred tax demands.

Balances

30.06.11 31.12.10

Balance on start of period -352.260,94 -416.101,32

Charges on net position 0,00 66.965,55

Charges on results of operations -11.934,79 -3.125,17

Balances at the end of the fiscal year -364.195,73 -352.260,94

9. Inventories

The balances of inventories on 30.06.11 and 31.12.10 respectively are noted below:

Balances

30.06.11 31.12.10

Commodities 2.604.007,13 2.648.851,08

It is noted that the cost of the reserves, registered as an expense in the cost of sold items,

for the period from 01.01.11 until 30.06.11 reached the amount of €5.645.131,63 along

with an amount of €40.704,15 which refers to direct sales expenses (total cost for the

period €5.685.835,78).

44

10. Trades and other receivables

The balances from other client demands are analysed below:

Balances

30.06.11 31.12.10

Clients 4.746.094,71 4.868.125,14 Promissory notes and checks

receivables 5.278.117,76 5.573.748,96

Impairment provisions -240.000,00 -200.000,00

Total 9.784.212,47 10.241.874,10

It must be noted that the Company is not under any significant credit risk, due to the large

volume of its clientele and the dispersion thereof (approx. 2.200 active clients).

11. Other demands

The balances from other demands are analysed below:

Balances

30.06.11 31.12.10

Greek State, tax prepayment 414.240,48 414.240,48

Transitional accounts 73.455,01 89.111,04

Other demands 15.302,03 29.309,06

Total 502.997,52 532.660,58

12. Cash available and equivalents

The balances of cash available and their equivalents are analysed as follows:

Balances

30.06.11 31.12.10

Available in treasury 29.294,33 9.799,27

Available in banks 80.427,27 500.509,96

Total 109.721,60 510.309,23

45

13. Equity capital accounts

The balances of equity capital accounts on 30.06.11 and on 31.12.10 are as follows:

Balances

30.06.11 31.12.10

Capital stock 5.550.000,00 5.550.000,00

Reserves at premium 458.596,86 458.596,86

Other reserves 921.017,95 841.017,95

Balance of profits carried forward 7.989.984,28 7.461.020,82

Revaluation differences 1.072.141,30 1.072.141,30

Total of equity capitals 15.991.740,39 15.382.776,93

The amount of the issued and fully paid shares reaches the amount of 7.500.000 common

registered shares, of each of €0,74 nominal value.

It must be noted that during the previous fiscal year, upon a decision issued by the

Company Shareholder Extraordinary General Assembly, dated November 1, 2010, the

following took place: a) the reduction of the Company capital stock per the amount of

€1.200.000,00 by reducing the nominal value of each Company share per €0,16 , i.e. from

€0,90 to €0,74 and through the equal refund - payment of the above amount to Company

shareholders, and b) the amendment of article 5, par. 1 of the Company’s Statute, as a

result of the above decision. After the above reduction, the Company capital stock

amounts to €5.550.000,00 divided into 7.500.000 common registered shares, each of

€0,74 nominal value. The Ministry for Finance, Competitiveness and Shipping approved

the amendment of pertinent article 5, par. 1 of the Company Statute, through their

decision, ref. no.: Κ2-11456/13-12-2010. The beneficiaries for receiving the refund were

the investors registered in the files of the Dematerialized Securities System as on January

11, 2011, while the starting date for the pay-out was set on January 17, 2011. The

payment of cash for the refund began on January 17, 2011 through Piraeus Bank S.A.

46

14. Short-term loans

The balances from short-term loans are analysed below:

Balances

30.06.11 31.12.10

Bank loans 242.869,94 0,00

Total 242.869,94 0,00

15. Suppliers and other short-term liabilities

The balances from other short-term accounts are analysed below:

Balances

Payable accounts 30.06.11 31.12.10

Suppliers 372.952,70 622.857,27

Payable checks – promissory notes 2.463.576,06 2.711.421,06

Payable dividends 831,64 1.218,74

Other Taxes 406.856,97 419.500,83

Insurance organizations 43.455,53 97.750,14

Transitional accounts 0,00 12.251,74

Capital refund to shareholders 579,84 1.200.000,00

Various creditors 94.320,49 60.311,58

Total 3.382.573,23 5.125.311,36

16. Sales

The company turnover, per main category of commodities, on 30.06.11 and 30.06.10, is

analysed below:

Balances Description 30.06.2011 30.06.2010

MIXTURES 1.120.435,01 1.122.687,73

MARGARINE 1.410.613,48 1.260.546,08

BUTTER 1.207.402,98 964.260,75

CREAMS 915.253,35 841.602,74

DELIFRUIT 442.794,86 578.777,82

ICE-CREAM PRODUCTS 756.990,45 771.320,65

DARK CHOCOLATES 321.040,33 426.358,50

ARTIFICIAL MILK CREAM 386.093,73 385.576,15

JELLIES 242.941,68 303.083,66

OTHER ITEMS 1.754.350,08 1.723.233,57

Total 8.557.915,95 8.377.447,65

Cost of sales 5.685.835,78 5.380.026,45

Gross profit 2.872.080,17 2.997.421,20

47

It is noted that the cost of sold items includes an amount of €40.704,15 ,which refers to

direct costs of sales.

17. Other operational incomes

The remaining incomes of the company, on 30.06.11 and 30.06.10, itemized in their

respective categories, are analysed below:

30.06.2011 30.06.2010

Incomes from exploitation of

purchases and from the suppliers’

payment manner.

52.170,09

81.596,56

Participation of foreign houses in

exhibitions – Advertisement 45.638,87 34.818,35

Subsidy to labour contributions by

OAED 81.088,57 0,00

TOTAL 178.897,53 116.414,91

18. Analysis of expenses per category

The analysis of the company expenses and their allocation to the operations is as follows:

Period 01.01.11 to 30.06.11

Cost of sales Management

expenses Distribution

expenses Financial

expenses

Type of expense Total

Personnel fees and expenses 0,00 154.031,72 1.043.642,17 0,00 1.197.673,89

Third party fees and expenses 26.400,00 139.649,39 158.272,97 0,00 324.322,36

Third party provisions 0,00 341,12 202.337,90 0,00 202.679,02

Fees - Taxes 0,00 0,00 20.448,61 0,00 20.448,61

Various expenses 14.304,15 17.181,21 324.621,12 0,00 356.106,48

Interests and relative expenses 0,00 0,00 0,00 35.065,24 35.065,24 Depreciations from tangible

assets 0,00 4.536,31 105.549,14 0,00 110.085,45 Depreciations of intangible

assets 0,00 850,00 5.014,24 0,00 5.864,24

Cost of reserves 5.645.131,63 0,00 0,00 0,00 5.645.131,63

Total 5.685.835,78 316.589,75 1.859.886,15 35.065,24 7.897.376,92

48

Period 01.01.10 to 30.06.10

Cost of sales Management

expenses Distribution

expenses Financial

expenses

Type of expense Total

Personnel fees and expenses 0,00 148.301,45 1.013.595,72 0,00 1.161.897,17

Third party fees and expenses 13.200,00 81.468,00 121.229,00 0,00 215.897,00

Third party provisions 0,00 21.345,19 187.744,31 0,00 209.089,50

Fees - Taxes 0,00 0,00 30.710,22 0,00 30.710,22

Various expenses 8.822,25 40.282,18 255.698,53 0,00 304.802,96

Interests and relative expenses 0,00 0,00 0,00 7.908,26 7.908,26

Depreciations from tangible assets 0,00 4.536,93 110.174,36 0,00 114.711,29

Depreciations of intangible assets 0,00 850,00 5.009,67 0,00 5.859,67

Cost of reserves 5.358.004,20 0,00 0,00 0,00 5.358.004,20

Total 5.380.026,45 296.783,75 1.724.161,81 7.908,26 7.408.880,27

19. Income tax

The activity of income tax for periods 01.01-30.06.11 and 01.01-30.06.10 is as follows:

Balances

Description 30.06.11 30.06.10

Income tax 150.130,08 230.763,87 Extraordinary contribution, as per Law

3845/2010 0,00 181.159,58 Forecasts and differences from

previous years 30.000,00 0,00

Postponed tax of results 11.934,79 13.562,35

Total 192.064,87 425.485,80

The income tax of the interim period has been calculated by using the tax rate for non-

distributable profits which shall apply in the current fiscal year, amounting to 20%. The

respective rate for the 2010 interim period amounted to 24%.

49

20. Existing tangible liens

There are no tangible liens over Company real property.

21. Probable demands – Obligations

Information in relation to probable obligations

There are no litigious or under arbitration differences among court and arbitration bodies

or decisions by court or arbitration bodies that have or may have a significant impact on

the financial standing or operation of the company.

Information in relation to probable demands

There are no probable demands requiring special reference in the financial statements of

company.

22. Purchases and sales of tangible fixed assets

The investments in fixed equipment for the period between 01.01.11 and 30.06.11

reached the amount of €96.125,17.

23. Unaudited fiscal years

The company has been audited up to period 2007; periods 2008, 2009 and 2010 have not

been audited. The formed tax provision for the above 3 periods is equal to €130.000,00.

24. Employed personnel

Employed personnel on 30.06.11: In the Company: 67 persons.

Employed personnel on 30.06.10: In the Company: 66 persons.

50

25. Transactions with Company related entities

The transactions of the company with the connected parties, as provided for by the IAS

24, are as follows:

01.01-30.06.2011 01.01-30.06.2010

Sales of goods and services

To subsidiaries 0,00 0,00

To other related parties 0,00 0,00

Purchases of goods and services

From subsidiaries 0,00 0,00

From other related parties 0,00 0,00

Sales of fixed assets

To subsidiaries 0,00 0,00

To other related parties 0,00 0,00

Demands

From subsidiaries 0,00 0,00

From other related parties 0,00 0,00

Liabilities

To subsidiaries 0,00 0,00

To other related parties 0,00 0,00 Provisions to management and key company

executives Transactions and rewards for the members of the

Board of Directors and management members 320.621,17 236.134,04

Demands from members of the BoD and

management members 0,00 0,00

Liabilities to members of the BoD and

management members 18.335,10 373,50

No loans have been allocated to members of the Board, or to any other key personnel (or

to their families).

51

26. Profits per share

The profits per share are calculated by dividing profit with the weighted average number

of common registered shares during the fiscal year.

Period

01.01-30.06.11 01.01-30.06.10

Profits after taxes 608.963,46 610.712,36

Weighted average number of shares 7.500.000 7.500.000

Earnings after taxes per share 0,0812 0,0814

27. Events after the preparation date of the Financial Statements

Apart from the above mentioned events, no events have occurred after the preparation of

the Financial Statements, that would affect the Company and which should be mentioned,

in accordance with the International Accounting Standards (IAS).

The persons responsible for the preparation of the Semi-annual Financial Report

Acharnes, August 25, 2011

Stylianos Kanakis Maria Kanaki Athanasios Syrmos

Vice-Chairman & Managing

Director

Vice-President of the BoD Financial Director

52

E. Details and information for the period between January 1 – June 30, 2011