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SA REG. NO.: 29709/06/Β/93/1

ACHARNES ATTICA (NO. 4, ANEMONIS STREET)

“STELIOS KANAKIS INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME,

RAW MATERIALS FOR CONFECTIONARY, BAKERY AND ICE-CREAM”

SEMI-ANNUAL FINANCIAL REPORT

Term January 1st, 2010 to June 30

th, 2010

Established in accordance with Article 5 of Law 3556/2007 and under the authority

of the executive decisions of the board of the Capital Market Commission

It is hereby certified that the present Semi-Annual Financial Report for the term

01.01.2010-30.06.2010 is the one approved by the Board of Directors of “STELIOS

KANAKIS INDUSTRIAL AND COMMERCIAL SA, RAW MATERIALS FOR

CONFECTIONARY, BAKERY AND ICE-CREAM” at a session held on August 25, 2010

and is posted on the internet, at www.stelioskanakis.gr, where it will remain available to

the investing public for at least five (5) years from the date of its drafting and

publication.

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TABLE OF CONTENTS

Α. Statements by Representatives of the Board.............................................................3

B. Semi-Annual Board Report .......................................................................................5

C. Review Report on Interim Financial Information ...................................................23

Introduction..................................................................................................................23

D. Interim Semi-annual Financial Statements .............................................................25

E. Information for the period from January 1 to June 30, 2010...................................47

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Α. Statements by Representatives of the Board

The representatives of the Company’s Board of Directors listed below proceed to the

following statements, which were provided in accordance with Article 5 paragraph 2 of

L. 3556/2007, as currently in effect:

1. . Stylianos Kanakis, son of Dimitrios, resident of Dionysos Attica, No. 9 Terpsichore

Street, Chairman of the Board and Chief Executive Officer.

2. Maria, spouse of Stylianos Kanakis, resident of Dionysos Attica, No. 9 Terpsichore

Street, Vice President of the Board.

3. Athanasios Sirmos, son of Vasilios, resident of Kokkinos Milos, Acharnes, Attica,

No. 4 Metsovou street, Board Member.

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

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

designated for that purpose by the Board of the Société Anonyme under the trade name

“STELIOS KANAKIS INDUSTRIAL AND COMMERCIAL SA, RAW MATERIALS FOR

CONFECTIONARY, BAKERY AND ICE-CREAM” trading as“STELIOS KANAKIS

ABEE”, (hereinafter referred to for reasons of brevity as the “Company” or

“KANAKIS”) hereby declare that, to the best of our knowledge:

(a) the semi-annual financial statements of the Company for the period 01.01.2010-

30.06.2010, which were established in accordance with the applicable accounting

standards, accurately reflect the true assets and liabilities, net worth and results of the

Company, pursuant to paragraphs 3 to 5 of Article 5 of Law 3556/2007.

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(b) the semi-annual report of the Company’s Board of Directors accurately reflects

the important events that took place during the first half of the financial year and their

impact on the semi-annual financial statements, the principal risks and uncertainties for

the 2nd semester of the financial year and the significant transactions established

between the Company and related persons, and

(c) there are no businesses affiliated with the Company and hence the Company does

not prepare consolidated financial statements.

Acharnes, August 25, 2010

The reporting parties

Stylianos Kanakis

ID Card No: Κ 369650

Maria Kanaki

ID Card No: Ρ 004160

Athanasios Sirmos

ID Card No: ΑΕ 152234

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B. Semi-Annual Board Report

Term 01.01.2010 - 30.06.2010

PREAMBLE

The present Semi-Annual Board Report (hereinafter referred to for reasons of brevity as

the “Report” or “Semi-Annual Report”), which concerns the first six months of the

current operating period 2010 (01.01.2010-30.06.2010), was established and harmonized

with the relevant provisions (Article 5) of Law 3556/2007 (GG 91Α/30.4.2007) and the

executive decisions issued by the Capital Market Commission thereon, and in particular

decisions 7/448/2007 and 1/434/2007 by the Board of the Capital Market Commission.

The present report contains a succinct yet essential description of all the major sub-

modules necessary, as per the above legal framework, and accurately illustrates all the

relevant information required by law, in order to allow for the extrapolation of

substantial and detailed information on the activities of the Company “STELIOS

KANAKIS ABEE” (hereinafter referred for reasons brevity as the “Company” or

“KANAKIS”).

It is noted that there are no businesses affiliated with the Company, in the context of the

law, and hence the Company does not prepare consolidated statements, but only

company financial statements.

This report was prepared in accordance with the terms and conditions of Article 5 of

Law 3556/2007 and the decision of the Board of the Capital Market Commission, it

accompanies the semi-annual financial statements for this period (01.01.2010-

30.06.2010) and is included verbatim in the Semi-annual Financial Report on the first

half of the operating period 2010.

The sections of this Report, presented in order to enhance the cohesion and readability

of the content of the present, are as follows:

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Section A

Significant events that occurred during the first semester of 2010

The major events that occurred during the first half of the current fiscal period 2010

(01.01.2010-30.06.2010), as well as their eventual impact on the semi-annual financial

statements are summarized as follows:

1) Company participation in the International trade show SIGEP

FABBRI, the leading Italian company in ice cream and confectionary raw material, once

again made a statement with its dynamic presentation in international trade show,

SIGEP (23-27/01/2010). This company is represented exclusively in Greece, Cyprus and

the Balkans by “STELIOS KANAKIS ΑΒΕΕ”. The visitors of the always impressive

stand of the Italian company had the opportunity to taste a wide range of products,

numerous new flavors, as well as combinations of ice cream flavors. Products that stood

out were, amongst others, the brand new coating NAPPAGE Caramel, new

VARIEGATO Lime, the highly impressive flavor of Mojito from the revolutionary

range SIMPLE (Gelato System), initially inspired from the famous cocktail, as well as

DELIPASTE Cappuccino, a wonderful suggestion which adds to the DELIPASTE

product range. Through the enhancement of the relation with the firms, the products of

which are represented by the Company, the Company has the opportunity to gain further

product and geographical market penetration.

2) Dynamic Company presence to the international trade show ΑRTOZYMA 2010

The Company was distinguished once more through its excellent presentation at the

International Trade Show ARTOZYMA 2010, which was conducted during the period

March 5 to 8, 2010 in the international exhibition center HELEXPO in Thessalonica.

Particularly impressive was the attendance from numerous professionals as well as of

students of professional bakery and confectionary schools from Greece and abroad, and

in particular the Balkans, who visited the imposing stand of “STELIOS KANAKIS

Α.Β.Ε.Ε.”, in order to be informed on the new Company activities in Northern Greece,

the brand new training schemes of Thessaloniki Center of Gastronomy, as well as the

latest developments and modern trends in the domain. At the same time, they had the

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opportunity to meet, first hand, the rich and renewed range of raw materials for bakery,

confectionary, and ice cream, and at the same time taste many delicious products,

prepared by the technical division of the Company. Moreover, they had the opportunity

to exchange useful insight and opinions with the technical consultants and salespersons

of the Company on technical and other important issues related to their daily work.

Of important value was the attendance of the famous Confectionary Chef, Anthony Guy,

representative of the leading French company ELLE & VIRE, who graciously provided

exciting live demonstrations to the visitors of the Company stand. During the

demonstrations by Mr. Guy, there was presentation of many innovative ideas, in order

for the professionals to acquire a complete insight of the abilities provided by the high

quality products of ELLE & VIRE.

With regard to the impressive program of live shows of the technical division of the

Company, this included special creations of high confectionary art (Cake Bueno,

Ferrero, Brulee Biscotti, Chocolate tart, etc.), tasty bread in classic and modern versions

(Dark Multi-grain, Rye bread, Metsovitiko, Italian Ciapata, French Baquette,

Scandinavian, Cereal bread, etc.), delicious salty snacks (croissines, multi-grain and

parmesan kritsinia, olive bread, courou cheese pies, etc.), irresistible baked

confectionary (Danish, coffee tarts, berlins, chocolate pies, apple pies, sour cherry pies,

Florentines, cheesecake, milk pie, yogurt pie, marzipans, etc.), as well as brand new

flavors and combination of flavors of ice cream for the period spring -summer 2010, all

prepared with high quality bakery, confectionary and ice cream raw materials, availed

by the Company.

Finally, it should be noted that company STELIOS KANAKIS ΑΒΕΕ received a

honorary distinction for the Continuous Support and Organized Presence in

ΑΡΤΟΖΥΜΑ trade show, demonstrating once more that the Company does not cease

creating, evolve and hold the leading position in innovation, enhancing its approach to

Greek professionals and professionals from Balkan countries. Through its participation

to the particular accredited Trade Show, the Company confirmed its leading position in

the domain and had the ability to inform its customers on new developments, by means

of the aforementioned demonstrations and live shows. Participation to the above trade

show always yields positive effects to the financial turnover of the Company and

contributes to the enhancement of its sales

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3) Golden Award for the cream of ELLE & VIRE

The golden award in the category was achieved by the top selling cream of France, 35%,

by ELLE & VIRE, imported exclusively in Greece by “STELIOS KANAKIS ABEE”.

The competition was held by the French Ministry of Agriculture and Nutrition and the

golden medal was awarded on March 2, 2010. This competition was established in 1870

and is conducted on an annual basis, awarding the best and most qualitative products in

fields such as dairy, wine, juice, drinks, etc. The product has received golden distinction

in its category in the past, a fact that clearly defines the supremacy of cream 35% of

ELLE & VIRE and the continuous pursuit of the Company to focus on quality and

standard values. The Company is firmly oriented to high quality products, a choice that

have always and systematically rewarded it till nowadays.

4) Notice of termination of a special trading contract

In view of the forthcoming expiration of the special arrangement contract concerning its

shares, by the Member of the Athens Stock of Exchange “BΕΤΑ SECURITIES

Α.Ε.Π.Ε.Υ.” on March 25, 2010, it was mutually agreed not to proceed to renewal

thereof. The final day of special trading was defined to be March 24, 2010, day

Wednesday. Through the stated termination of the special trading contract, there is

concurrent validity cessation of all side agreements entered in the framework thereof,

particularly of the one entered between the member of the Athens Stock of Exchange

“ΒΕΤΑ SECURITIES Α.Ε.Π.Ε.Υ.” and Mr. Stelios Kanakis, principal shareholder of

the Company, in order for the said principal shareholder to enter repurchase agreements

in the Derivatives Market of the Athens Stock of Exchange in order to facilitate specia

trade tasks.

5) Notification of special broker appointment

The Market Operation Committee of the Athens Stock of Exchange, through the

decision dated March 22, 2010 approved the acquisition by the Member of the Athens

Stock of Exchange “CYCLOS SECURITIES Α.Ε.Π.Ε.Υ.” the capacity of special broker

over the Company’s shares in order to enhance their liquidity and defined the special

trade commencement date on April 1st, 2010. As per the Stock Exchange Regulation,

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the Company has entered a special trade agreement with “CYCLOS SECURITIES

Α.Ε.Π.Ε.Υ.” under the following basic terms:

1. “CYCLOS SECURITIES Α.Ε.Π.Ε.Υ.” shall transfer to the Transactions System of

the Athens Stock of Exchange special trade orders (that is concurrent buy and sell

orders) for the same account over the shareholders of the Issuing party, as per the

specific provisions of the applicable legislation. For this service, the Company shall pay

to “CYCLOS SECURITIES Α.Ε.Π.Ε.Υ.” a fee.

2. Special trade agreement shall have the duration of one (1) year.

3. In order to facilitate the task of special trading, in view of the eventual risks

undertaken by the special broker, “CYCLOS SECURITIES Α.Ε.Π.Ε.Υ.” has entered a

contract with Mr. Stylianos Kanakis, son of Dimitrios, primary shareholder of the

Company, in order for the later to enter repurchase agreements in the Derivatives Market

of the Athens Stock of Exchange.

6) Enforcement of extraordinary social responsibility contribution

The extraordinary social responsibility single contribution, enforced by virtue of section

5 of the Law 3845/2010 (GG Α΄ 65/06.05.2010), shall reach the amount of 181.159,58

Euros. The amount of the said contribution was applied against the turnover of the

current period (01.01.2010-30.06.2010).

7) Annual Regular General Assembly of the Company

The Annual Regular General Assemby of the Company’s shareholders was held on June

21 2010 at the Company’s headquarters, at number 4 Anemonis Street, Acharnai, Attica.

The Annual Regular General Assembly was attended by shareholders representing

88,02% of the share capital and voting rights of the Company (6.601.877 shares out of a

total of 7.500.000 shares) and unanimously approved the following:

a. The Annual Financial Statements for the operating period 2009 (01.01.2009-

31.12.2009) in the format they were drafted and published.

b. The Annual Report of the Board, which is included in its entirety in the Minutes of

the Company’s Board of Directors dated March 15, 2010, as well as the Audit report

dated March 17, 2010 of the Chartered Auditor – Accountant of the Company, Mr.

Theodorols N. Papailiou.

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c. The distribution of dividends from the profits of the fiscal year 2009 amounting in

total to 1.350.000,00 Euros, that is 0,18 Euros per share; under Law 3697/2008 (GG A

194/2008) a proportional tax rate of 10% is retained from that amount and therefore the

total amount of dividends paid per share amounted to 0,162 Euros. The designated

beneficiaries for these dividends were the parties registered in the Company’s

Dematerialized Securities System on Tuesday, June 29, 2010 (record date). The

dividends’ cut-off date was set to Friday, June 25, 2010. The payment of dividends for

2009 commenced on Monday July 5, 2010 through PIRAEUS Bank S.A.

d. The relieve of the Board members and auditors of the Company from any

responsibility for the actions and the general management of the concluded operating

period 2009 (01.01.2009-31.12.2009) and the annual financial statements for the year

2009.

e. The election as auditors of the fiscal year 2010 (01.01.2010-31.12.2010) for the audit

of the annual, semi-annual corporate financial statements of the company, the following

Auditors of the chartered audit firm SOL A.E.O.E.: a) the Chartered Accountant-

Auditor, Mr. Theodoros N Papailiou, S.O.E.L number. 16641, was elected regular

auditor and b) the Chartered Accountant-Auditor Mr. Vassis Athanasios son of Ioannis,

S.O.E.L. number 21301, was elected deputy auditor.

f. The fees of the Board members paid during the operating period 2009 were approved,

while there was pre-approval of the fees of the (executive and non- executive) Board

members for 2010 till the next annual Regular General Assembly.

g. The increase of the share capital of the Company per the amount of 2.925.000,00

Euros, through capitalization of the following amounts: i) the entire reserve as per article

8 of the law 2579/1998 amounting to 10.441,73 Euros, Law 1828/1989 amounting to

1.505,50 Euros and Law 3220/2004 amounting to 100.000,00 Euros and ii) part of the

reserve “Difference from the issuance of shares above par” amounting in total to

2.813.052,77 Euros. Such increase was materialized by means of the increase of the

nominal value of all Company shares from 0,51 to 0,90 Euros.

h. Modification of par. 1, article 5 of the Articles of Association of the Company, as a

result of the decision issued as per the above.

i. Modification, amendment, cancelation and re-numbering of the Articles of

Association of the Company for reasons of functionality, harmonization and adaptation

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to regulatory law 2190/1920, as currently in effect following its revision by law

3604/2007.

SECTION B’

Principal risks and uncertainties

The main risks and uncertainties for the second semester of the current operating period,

2010 are as follows:

The Company activates in a highly competitive environment. Its specialized know-how,

the creation of a strong brand name, in conjunction with the continuous study, market

research and marketing of new products, with emphasis on quality and the direct

satisfaction of current and future demand, as well as the creation of strong organizational

and operational infrastructure, which combine marketing with training on proper

implementation and usage, supports the Company in its effort to remain constantly

competitive and to continually promote its penetration into new markets (product and

geographical ones).

The common financial and other risks to which the Company is exposed, and the risks

which it may face during the second semester of the current operating period 2010, are

market risk (changes in exchange rates, market prices, credit risk, liquidity risk, interest

rates, stock risk, reduction of consumer demand due to global recession).

In particular :

1. Exchange rate risk

The vast majority of transactions and balances of the Company are in Euro. Compared

to the total transactions of the Company, there are limited liabilities in currencies other

than the euro, notably transactions for 1.794.015,10 Danish kroner appraised to

240.997,74 Euros as of 30.06.2010; therefore the exposure to exchange rate risks is

evaluated as real because of those limited transactions, but fully controlled, both because

of the transactional amount and because of the currency in which the transactions are

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executed. The Company’s Management constantly monitors foreign exchange risks that

may arise and assesses the need for employment of relevant measures, but at this time

that risk is not assessed as significant.

2. Raw materials’ price increase

The price increases of imported goods (mainly Europe) over the last five years fluctuate

at a rate of 3-10% on average. At an international level there is anticipation of greater

increases, mainly on products based on cereals and oils due to the latest catastrophic

events (wildfires – draught). Consequently, the Company’s exposure to this risk is

assessed as significant with regards to the 2nd half of this operating period, but in any

case, given that the risk usually originates from sources which the Company can not

fully control (for example, commercial policy of suppliers, etc), the management will

take the necessary early steps to limit exposure to this risk, both through specific

agreements with suppliers and by adjusting its pricing and trade policy so that any

possible increases shall not affect its profitability and overall financial performance.

3. Credit risk

The Company has no significant concentration of credit risk in any of its transacting

parties, mainly because of the large dispersion of its client base (which currently

numbers about 2.300 customers). Based on internal operational principles, the

Company’s management ensures that its goods and services are sold to customers with

high creditworthiness. Nevertheless, in view of the circumstances of the wider economic

crisis which manifests in almost all areas of economic activity without exceptions and

which has already affected significantly local market, the risk that may arise from any

failure of some customers to meet their obligations in respect to the Company is

assessed as quite significant, regardless of the fact that the Company has ensured the

conditions for the control of any adverse effects this may have.

4. Liquidity risk

The Company has a strong capital structure and high liquidity. The overall liquidity of

the company is high. Indicatively, general liquidity ratio (Current Assets to Short term

Liabilities) is 2,66 while immediate liquidity ratio (Current Assets minus reserves for

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Short term Liabilities) is 2,18. The Company’s policy, implemented on a fixed basis

during the last years, is to exploit the cash discounts offered by suppliers, while the

Company’s management has secured an opportunity to borrow under favourable terms

from banks. Such loaning ability is rarely exploited by the Company due to the

increased liquidity availed. Therefore this risk in the 2nd

half of the operating period year

is assessed as very low, but is presented in the present analysis, as, in the context of the

broader economic crisis, it is very useful and necessary to adequately inform Company

shareholders and the general investing public concerning economic issues, such as

liquidity and the amount of bank lending by the Company.

Below follows a table specifying the maturity of the financial liabilities of the company,

as formulated at the end of the six-month period (30.06.2010), with a comparative

display to the corresponding term of the previous operating period 2009 :

30/06/2010

Mean

Amounts in Euros Rate 0-6 months

6-12

months 1-5 years Total

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

Finance leases 0,00 0,00 0,00 0,00

Bank loans 0,00 0,00 0,00 0,00

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

30/06/2009

Mean Amounts in Euros Rate 0-6 months 6-12 1-5 years Total

months

Suppliers & other creditors 3.006.052,18 0,00 0,00 3.006.052,18

Finance leases 0,00 0,00 0,00 0,00

Bank loans 0,00 0,00 0,00 0,00

Total 3.006.052,18 0,00 0,00 3.006.052,18

5. Interest Rate risk

The company’s management continually monitors trends in interest rates and the

financing needs of the company, but because of the Company’s zero dependence on

bank loans (0,00 Euros on 30.06.2010), no special interest rate risk applies. This

reference is also included in the present report supplementary, in order to inform the

general investing public of the Company’s zero the dependence on bank lending, which

is very important and reflects the healthy financial structure of the Company.

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6. Stock depreciation risks

The Company undertakes all necessary measures (insurance, safekeeping) to minimize

the risk of any damage due to loss of stocks from of natural disasters. At the same time,

due to high stock circulation speed (85 days), and due to their long life-cycle (expiration

date), the risk of depreciation is particularly limited. Yet, if the broader financial

environment deteriorates due to the economic crisis and consequent reduction of

purchase power of the Company’s customers, then the risk could become significant

during the second semester of 2010 and for this reason the entire order and product

distribution network of the Company has been adapted to the prevailing market

conditions in order to prevent to the greatest extent possible product stocking.

7. Reduced consumer demand due to global recession

The Company operates in the food industry and demand for goods in this sector

continues to grow despite the general climate of recession. However, the forecast for

demand cannot be currently expressed accurately given that the rapid deterioration of

economic conditions in the local market has unavoidably affected demand and thus the

relevant risk is assessed, in view of the prevailing conditions, as significant with regard

to the 2nd semester of the current operating period, given that demand reduction shall

inevitably affect the Company’s turnover.

SECTION C

Significant transactions with affiliated parties

This section includes the most important transactions between the Company and

affiliated persons (affiliated parties) as defined in International Accounting Standard 24;

in particular, this section includes:

(a) Transactions between the Company and any affiliated person during the first

semester of the current operating period 2010 (01.01.2010-30.06.2010), which

materially affected the financial position, or performance of the Company during this

period.

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(b) eventual changes in the transactions between the Company and any affiliated person

described in the latest annual Report, which could have substantial effects on the

financial position or performance of the Company during the first semester of the

current operating period, 2010.

It is noted that the reference to these transactions that follows includes the following

items:

(a) the amount of such transactions,

(b) the outstanding balance at the end of the period (30.6.2010),

(c) the nature of the relationship of the person affiliated with the Company

and

(d) any information about the transactions, which is essential for understanding the

financial position of the Company, but only if such transactions are material and

have not taken place under normal market conditions.

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TIME PERIOD 01.01-30.06.10

TABLE 1

Sales of goods and services

To subsidiaries 0,00

To other affiliated parties 0,00

Purchases of goods and services

From subsidiaries 0,00

From other affiliated parties 0,00

Sales of fixed assets

To subsidiaries 0,00

To other affiliated parties 0,00

Receivables

From subsidiaries 0,00

From other affiliated parties 0,00

From subsidiaries

From other affiliated parties 0,00

From subsidiaries 0,00

TABLE 2 : Sums attributed to Company’s executives and boards

Α. Transactions and payments of executives and board members 236.134,04

Β. Receivables from executives and board members 0,00

C. Liabilities to executives and board members 373,50

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Notes :

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

2. There are no loans issued to members of the Board or other executives of the

Company (and their families).

3. The amounts mentioned above in category A of Table 2 relate in their entirety to

wages paid to executives and members of the Company’s management during this

period, for personal services or work provided to the Company, based on the relevant

Decisions of the Annual Regular General Assemblies of the Company’s Shareholders

and are specifically analyzed as follows:

NAME CAPACITY

REMNUNERATION

FOR THIS PERIOD

DUE BALANCE

AS OF 30.6.2010

KANAKIS STYLIANOS PRESIDENT & CEO 68.659,50 62,19

KANAKI MARIA BOARD VICE-PRESIDENT 39.234,00 0,00

KANAKI ELEFTHERIA DEPUTY CEO 39.234,00 311,31

SYRMOS ATHANASIOS BOARD MEMBER 56.532,81 0,00

VATALIDIS CHRISTOS BOARD MEMBER 32.473,73 0,00

TOTAL 236.134,04 373,50

4. Apart from the above remunerations, no other transactions were effected between the

Company and said directors and members of the Board.

5. There is no transaction carried out over and above normal market conditions.

SECTION D

Share Capital – Equity shares

1. The company’s share capital amounts as of this day and following the last decision of

the Regular General Assembly of the shareholders, dated June 21, 2010, to the amount

of 6.750.000,00 Euros, paid in its entirety and divided into 7.500.000 common registered

shares of nominal value 0,90 Euros each. It is noted that the said decision (for the

increase of share capital through capitalization of reserves, materialized through the

increase of the nominal value of all Company shares), was approved by virtue of the

decision number Κ2-7121/28.7.2010 of the Undersecretary of Economy,

Competitiveness and Maritime, however the shares are not yet traded under their new

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nominal value, given that the relevant notification of the Board of Athens Stock of

Exchange is still pending. All Company shares are listed on the Athens Stock Exchange

and traded in the Medium and Small Capitalization category.

2. Further, the significant direct or indirect participations in the equity and voting rights

of the Company, as per the context of Articles 9 to 11 of Law 3556/2007 are:

• 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 hold own shares, nor has taken any decision for the issue of

own shares.

SECTION Ε

Information on labour or environmental issues

1. During the first semester of 2010 the Company employed an average of 66 persons. It

should be noted that relations between the Company and its staff are excellent and no

labour problems have arisen, as one of the key priorities of the company is to maintain

and strengthen a climate of labour tranquility.

On a daily basis, the Company attends the employment of all necessary measures and

practices for the full and strict compliance with the applicable provisions of the labour

and social security law..

2. The Company acknowledges the need for continuous improvement of its

environmental performance based on the principles of sustainable development and aims

at a balanced economic development in harmony with the natural environment.

Following a course of sustainable development, it operates in a manner that protects the

environment and the health and safety of workers, the local community and the public.

SECTION F

Development, performance and position of the Company - financial and non-

financial key performance indicators

This section contains an accurate and concise display of the development, performance

and position of the Company, presented in a manner providing a balanced and

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comprehensive analysis of its development, performance and position, in conjunction

with the size and complexity of the Company.

1. Company Development :

The course of the Company’s key financial figures during the last four-year period and

during the first semester of 2010 and respectively 2009, 2008 and 2007 is as follows:

Development (amounts in thousands Euros)

30.06.07 30.06.08 30.06.09 30.06.10

Total assets 16.507 17.707 19.751 21.681

Total own capital 12.213 13.322 15.384 15.767

Turnover 7.775 8.561 8.553 8.377

Profit before taxation 855 1.093 1.040 1.036

Profit net of taxes 638 818 776 623

The percentage change in sales and profit is as follows:

30.06.07 30.06.08 30.06.09 30.06.10

Sales’ change 10,90 % 10,11% -0,09% -2,06%

Profit change prior to taxation 7,68 % 27,84 % -4,85 % -0,38%

Profit change after taxation 15,60 % 28,21 % -5,13 % -19,72 %

Important note : Profit following taxation for the current period included the

extraordinary payment of social liability contribution amounting to 181 thousand euros.

If such expense is not taken into consideration, profit after taxation present a 3,6 %

increased compared to the respective ones of the first semester of 2009.

2. Company Performance

Below follow some figures and related indicators on the performance of the company

during the first semester of 2010 and the respective semesters of 2009, 2008, 2007:

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3. Financial and non-financial key performance and position indicators:

Below follow some indexes, both financial and non-financial, related to the key

performances and to the position of the company:

(amounts in thousands Euros)

30.06.07 30.06.08 30.06.09 30.06.10

Traffic speed (days)

Average duration of requirements on hold 176 174 183 192

Average stock preservation duration 55 69 74 86

Average settlement duration of

Short term liabilities 140 135 126 179

Capital Structure (times)

Own to total Capital 0,73 0,75 0,78 0,73

Own Capital to total liabilities 2,96 3,21 3,62 2,67

Own capital circulation speed 1,27 1,29 1,11 1,06

Assets circulation speed 2,52 2,34 2,21 2,20

(amounts in thousands Euros)

30.06.07 30.06.08 30.06.09 30.06.10

Profit net of taxes & amortizations 1.024 1.277 1.176 1.161

Profit prior to taxation 855 1.093 1.040 1.036

Profit following taxation 638 818 776 623

Own capital return (prior to taxation) 14% 16% 14% 13%

Total capital return (following taxation) 8% 9% 8% 6%

21

Investment (Euros)

Profit prior to taxation per share 0,23 0,29 0,28 0,28

Accounting value per share 1,63 1,78 2,05 2,10

SECTION G

Projected course and development of the Company for the second semester of 2010

This section and with regard to the Company activities during the second semester of the

current operating period 2010, presents some data and qualitative estimates in order to

reflect development at the certainty level attainable.

Such data and estimates are the following:

Α. The second semester of the year 2010 is expected to be particularly difficult due to

the adverse economy conditions particularly affecting local market, in which the

Company mainly activates.

In fact, developments cannot be foreseen and Company Management is not able to

assess market course, given the socio-economical conditions and the duration and

intensity of the recession affecting local market, which has unavoidably affected

demand, even in food sector.

Β. Company Sales in the first semester of the year over time and based on its history

cover approximately 45% of its annual turnover, as 55% of Company turnover is

achieved during the second semester of each operating period, so that the profits of the

second semester are greater than those of the first. Currently, there is no event that leads

to a different estimate regarding the results of current operating period 2010.

C. The Company estimates that the continuous sales’ dynamics of the Branch in

Southern Greece and gradual penetration in new geographical markets shall suffice for

offsetting any eventual demand reduction in Central Greece and islands regions caused

by tourist inflow reductions.

22

SECTION H

Significant events after June 30, 2010 and up to the establishment of the present

report

There are no significant events that took place following expiration of the first semester

of the current operating period 2010 and up to the date of establishment of the present

Report.

CHARTERED ACCOUNTANT - AUDITOR'S CERTIFICATE

It is certified that the above Semi-annual Report of the Board, consisting of 20 pages, is the one

reported in the Review Report issued under date 26/08/2010.

Athens, August 26, 2010

THE CHARTERED AUDITOR – ACCOUNTANT

Theodoros Ν. Papailiou

SOEL No. 16641

Σ.Ο.Λ α ε ο ε

23

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 2010 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”.

24

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 2010

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

25

D. Interim Semi-annual Financial Statements

Total Revenue Statement

Period Period

Item 01.01-30.06.10 01.01-30.06.09 01.04-30.06.10 01.04-30.06.09

Turnover 16 8.377.447,65 8.552.624,25 4.119.082,08 4.500.631,31

Cost of sales 18 5.380.026,45 5.492.474,22 2.666.598,52 2.887.167,21

Gross profit 2.997.421,20 3.060.150,03 1.452.483,56 1.613.464,10

Other operating income 17 116.414,91 62.769,53 81.574,13 18.000,00

Administrative expenses 18 296.783,75 349.522,05 139.547,83 197.012,07

Sales operating expenses 18 1.724.161,81 1.665.244,30 797.966,46 784.235,60

Other exploitation expenses -52.063,95 -48.738,49 -30.521,32 -26.987,00

Profit prior to taxation from

financing and investment results 1.040.826,60 1.059.414,72 566.022,08 623.229,43

Financial income 3.279,82 528,87 1.505,04 514,10

Financial costs 18 7.908,26 19.945,68 3.909,09 1.408,33

Profit prior to taxation 1.036.198,16 1.039.997,91 563.618,03 622.335,20

Income tax 19 425.485,80 264.149,34 316.427,91 159.586,79

Profit after taxation 610.712,36 775.848,57 247.190,12 462.748,41

Distributed to :

Company shareholders 610.712,36 775.848,57 247.190,12 462.748,41

Profit after taxation per

share 26 0,0814 0,1034 0,0330 0,0617

Total Revenues Analysis

Period Period

01.01-30.06.10 01.01-30.06.09 01.04-30.06.10 01.04-30.06.09

Net profit for the period 610.712,36 775.848,57 247.190,12 462.748,41

Other total revenue after taxation 12.282,71 0,00 0,00 0,00

Total period income 622.995,07 775.848,57 247.190,12 462.748,41

Profit after taxation per share

over total income 0,083 0,103 0,033 0,062

26

Definition of Sum of financial and investment results and amortizations prior to

taxation.

Profit prior to taxation 1.036.198,16 1.039.997,91 563.618,03 622.335,20

Financial profit 3.279,82 528,87 1.505,04 514,10

Financial loss 7.908,26 19.945,68 3.909,09 1.408,33

Term amortizations 120.570,96 117.055,57 61.672,42 58.336,63 Profit of financial and investment

results and amortizations, prior to

taxation 1.161.397,56 1.176.470,29 627.694,50 681.566,06

Financial position statement

Balances

Non-current assets Item 30.06.10 31.12.09

Tangible assets used by company 6 7.609.929,75 7.607.424,70

Intangible assets 7 45.268,76 18.151.43

Other non-current assets 24.640,47 26.149,01

Total non-current assets 7.679.838,98 7.651.725,14

Current assets

Reserves 9 2.543.160,33 2.448.391,67

Accounts receivable 10 8.816.517,64 9.455.121,82

Other assets 11 547.860,76 532.469,64

Cash and cash equivalents 12 2.093.332,06 653.855,70

Total current assets 14.000.870,79 13.089.838,83

Total assets 21.680.709,77 20.741.563,97

Share capital 13 6.750.000,00 3.825.000,00

Premium Reserves 13 480.804,92 3.293.857,69

Other Reserves 13 841.017,95 862.965,18

Unappropriated earnings 13 6.672.076,86 7.501.364,50

Revaluation differences 13 1.023.010,47 1.010.727,76

Total equity 15.766.910,20 16.493.915,13

Retirement benefit liabilities 167.655,88 167.655,88

Deferred tax liabilities 8 417.380,96 416.101,32

Other provisions 60.000,00 60.000,00

Total non-current liabilities 645.036,84 643.757,20

Short term loans 14 0,00 611,11

Current income tax 492.842,33 657.123,10

Suppliers and other liabilities 15 4.775.920,40 2.946.157,43

Total current liabilities 5.268.762,73 3.603.891,64

Total equity and liabilities 21.680.709,77 20.741.563,97

27

Statement of Changes in Equity

Share Premium Regular Other Revaluation Unappropriated

Capital Difference reserves reserves Differences Earnings 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 income

after tax 12.282,71 610.712,36 622.995,07

Share capital increase 2.925.000,00 -2.813.052,77 -111.947,23 0,00

Distribution of profits by GA 90.000,00 -90.000,00 0,00

Stock buyback 0,00

Dividend for 2009 approved by shareholders -1.350.000,00 -1.350.000,00

Balance at 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

Balance at January 1, 2009 3.825.000,00 3.293.857,69 573.000,00 199.965,18 1.010.727,76 6.306.025,70 15.208.576,33

Other Total income

after tax 775.848,57 775.848,57

Distribution of profits by GA 90.000,00 -90.000,00 0,00

Stock buyback

Dividend for 2008 approved by shareholders -600.000,00 -600.000,00

Balance at June 30, 2009 3.825.000,00 3.293.857,69 663.000,00 199.965,18 1.010.727,76 6.391.874,27 15.384.424,90

28

Cash Flow Data

01.01-

30.06.2010

01.01-

30.06.2009

Operating activities

Profit before tax (continuing operations) 1.036.198,16 1.039.997,91

Plus / minus adjustments for:

Depreciation 120.570,96 117.055,57

Forecasts 50.000,00 45.000,00

Results (income, expenses, gains and losses)

from investing activities 0,00 0,00

Interest and related expenses 7.908,26 19.416,81

Plus / minus adjustments for changes in working

capital or related to operating activities :

Decrease / (increase) in inventories -94.768,66 195.444,86

Decrease / (increase) in receivables 574.721,60 647.970,71

(Decrease) / increase in liabilities (excluding

banks) 67.839,52 -414.845,06

Less:

Interest and related expenses paid -7.908,26 -16.332,17

Paid taxes -164.280,77 -180.151,70

Total inflows / (outflows) from operating

activities (a) 1.590.280,81 1.453.556,93

Investing activities Purchase of tangible and intangible assets -150.193,34 -26.303,71

Interest received 3.279,82 528,87

Total inflows / (outflows) from investing

activities (b) -146.913,52 -25.774,84

Financing activities Repayment of loans -3.890,93 -1.079.010,77

Total inflows / (outflows) from financing

activities (c) -3.890,93 -1.079.010,77

Net increase / (decrease) in cash and cash equivalents for the period (a) + (b) + (c) 1.439.476,36 348.771,32

Cash and cash equivalents at beginning of

period 653.855,70 297.348,65

Cash and cash equivalents at end of period 2.093.332,06 646.119,97

29

Notes to the Financial Statements

1. General information

The company under the trade name “STELIOS KANAKIS ABEE” (from now on and for

reasons of brevity referred to as the “Company” or “STELIOS KANAKIS”) is a purely

commercial company, which operates in the general trading domain of raw materials for

confectionery, bakery and ice creams. All products it represents, distributes and trades are

imported from Western Europe and in particular from France, Belgium, Germany,

Denmark and Italy. The Company's facilities and headquarters are located in the

municipality of Acharnes, 4 Anemonis street, PC 136 71 and its branch is located in the

Industrial Area of Sindos, Thessalonica, Phase C, Organizational Sector 38, PC 57022.

The company has the legal form of a Société Anonyme. Its website (company site) is

www.stelioskanakis.gr and it is listed on the Athens Stock Exchange. (registration date

18.07.2002), under OASIS Share code “ΚΑΝΑΚ”.

2. Summary of significant accounting policies

2.1 Basis of preparation of Financial Statements

The company’s summary interim financial statements for the first Semester of 2010 have

been prepared in accordance with the International Financial Reporting Standards (from

now on, the IFRS), adopted by the European Union and comply with the IAS 34 on

interim financial statements. The semi-annual financial statements were approved for

publication by the Board of Directors at the assembly of 25/08/2010. The preparation of

the semi-annual financial statements of 30/06/2010 satisfies the accounting policies of

31/12/2009.

Important note: The preparation of financial statements in conformity with the generally

accepted accounting principles requires estimates and assumptions that affect the reported

amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the

date of the financial statements and the reported amounts of revenue and expenses during

the period of reference. Although these estimates are based on the best knowledge of

30

management of the Company in relation to current events and actions, actual results may

differ from those estimates.

3. Significant accounting principles

3.1 Tangible assets

The property (land and buildings) are valuated at fair value, which is conducted every four (4)

years at least by independent assessors. Other tangible assets are valuated at cost less

accumulated depreciation and impairment losses. Increases in the book value of tangible assets

arising from fair value adjustments are recorded in the equity reserve. Reductions in the book

value reduce the reserve if such a reserve had previously been formed for the same asset. Value

reductions in excess of reserves and reductions in book value of assets for which there is no

reserve adjustment are recorded in the results as expenses.

The difference between the depreciation made on the adjusted value of the tangible assets, which

are charged to expenses, and the depreciation based on the acquisition cost of tangible assets is

transferred from the revaluation reserve to retained earnings, with the full depreciation or sale

thereof.

The value of land-plots is not depreciated, and the depreciation of other tangible fixed assets is

calculated by the standard method over its useful life, which is as follows:

- Buildings 45 – 55 Years

- Mechanical equipment 6-8 Years

- Cars 8-10 Years

- Other equipment 4-6 Years

The residual values and useful lives of tangible assets are subject to review in each annual

balance sheet.

The registration of additions in the company’s books is made at acquisition cost, which includes

all directly attributable costs for the acquisition of the items.

31

Subsequent expenses are recorded by enhancement of the book value of tangible assets only if it

is probable that future economic benefits will arise for the company and their cost can be

measured reliably. Repairs and maintenance, when made, are deducted from the profit and loss

account.

3.2 Intangible assets

Software licenses are valued at cost less depreciation. Depreciation is calculated by the standard

method over their useful life, which ranges from 4 to 5 years.

3.3 Deferred income tax

Deferred income tax is determined using the liability method, which arises from the temporary

differences between the book value and tax basis of assets and liabilities.

Deferred tax is determined using the tax rates effective at the balance sheet date.

Deferred tax assets are recorded to the extent there will be a future taxable profit for the use of

the temporary difference created by the deferred tax.

3.4 Stocks

Stocks are valued at the lowest cost between the cost of acquisition and the net realizable value.

The cost of acquisition is determined using the weighted average. Borrowing costs are not

included in the cost of acquiring the stock. The net realizable value is estimated based on the

current selling price in the ordinary course of business, less any selling expenses where

applicable.

3.5 Customer receivables

Customer receivables are recorded initially at fair value. Impairment losses (losses from bad

debts) are recognized when there is objective evidence that the company is unable to collect all

32

amounts due according to contractual terms. The amount of the impairment loss is recorded as an

expense in the profit and loss account

3.6 Cash and cash equivalents

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

months, with a high realisable value and low risk.

3.7 Foreign currency transactions

Transactions denominated in foreign currency are translated into euro based on the exchange rate

effective at the transaction date. At the date of the financial statements, the monetary assets and

liabilities which are denominated in foreign currency are translated into Euros using the

exchange rate effective at that date. Exchange differences arising from the conversion affect the

results of the current fiscal year.

3.8 Share capital

Ordinary shares are classified as equity. Direct costs for the issuance of shares are shown after

deduction of the corresponding income tax, as deducted from the proceeds. Direct costs

associated with issuing shares to acquire companies are included in the cost of the acquired

company.

The cost of acquisition of own shares less income tax (if applicable) is presented as a deduction

in the equity of the company until the same shares are sold or cancelled. Any gain or loss from

the sale of own shares net of other direct transaction costs and income tax, if any, appears as a

reserve in equity.

3.9 Dividends

Dividends payable are shown as a liability at the time of their approval by the Regular General

Assembly of shareholders.

33

3.10 Employee benefits

The company's obligation to persons on its payroll for the future payment of benefits depending

on their length of service is measured and reported based on the accrued right expected to be

paid of every worker at the balance sheet date.

3.11 Provisions

Provisions for environmental restoration, restructuring costs and allowances, are recognized

when:

a) There is a present legal or constructive obligation as a result of past events and

b) It is likely that an outflow of resources will be required to settle the commitment and

c) The amount required can be accounted reliably.

3.12 Financial instruments

The company's basic financial instruments are cash, bank deposits and short-term receivables

and liabilities. Given the short-time nature of these items, the Company's management believes

that their fair value is equal to the value shown in the accounts.

3.13 Revenue acknowledgment

Revenue comprises the fair value of sales of goods and services, net of recovered taxes,

discounts and rebates. The acknowledgment of revenue is performed as follows:

(a) Sales of goods

Sales of goods are acknowledged when the company delivers the products to customers, the

goods are accepted by them and the collection of receivables is reasonably assured.

(b) Provision of services

Revenues from the provision services are construed according to the completion stage of the

service compared to its estimated total cost.

34

4. Critical accounting estimates and judgments

The management’s estimates and judgments are under constant review based on historical data

and expectations for future events, which are acceptable according to current standards. The

estimates and assumptions that could cause adjustments to the carrying values of assets and

liabilities within the next few years mostly concern unaudited tax years.

The liabilities for anticipated tax resulting from audit are recognized through estimates based on

previous audits. When the outcome of these audits is different from the original, the difference is

charged to the income tax for the attribution period.

5. Information per sector

The company operates in Greece, Cyprus and the Balkans. It markets its goods through its

own distribution network in the Prefecture of Attica and through agents in the rest of

Greece. The company's sales through its own network and representatives are as follows:

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 2.114.829,29 35,94

Totals 8.377.447,65 5.380.026,45 2.997.421,20 35,78

35

30/6/2009

Sales Cost of Sales Gross Profit %

Wholesalers 2.820.300,30 1.833.220,46 987.079,84 35,00

Network 5.732.323,95 3.659.253,76 2.073.070,19 36,16

Totals 8.552.624,25 5.492.474,22 3.060.150,03 35,80

Sales per geographical region are as follows:

REGIONS 30/6/2010 30/6/2009

1 ATTICA 3.821.645,92 3.960.685,07

2 MACEDONIA 1.802.386,82 1.717.711,85

3 PELOPONNESE 661.060,47 757.949,18

4 THESSALIA 532.568,27 555.266,80

5 MAINLAND 433.717,92 424.621,35

6 AEGEAN ISLANDS 324.202,90 358.970,85

7 CRETE 291.479,12 310.135,10

8 THRACE 248.834,93 235.998,70

9 EPIRUS 131.991,90 138.756,72

10 IONIAN ISLANDS 34.763,30 37.433,59

11 CYPRUS-EXPORTS 94.796,10 55.095,04

TOTAL 8.377.447,65 8.552.624,25

36

6. Property, industrial facilities and equipment

Below are the changes in fixed assets for the period from 01.01.10 to 30.06.10 and for the

corresponding period from 01.01.09 to 30.06.09

Lands Buildings Mechanical Other fixed

Acquisition or

valuation cost plots facilities equipment assets Total

Inventory of

01.01.2010 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 30.06.2010 3.586.911,40 3.926.733,80 559.016,25 1.410.366,87 9.483.028,32

Accumulated

depreciation

Inventory of

01.01.2010 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 30.06.2010 0,00 369.546,68 495.893,00 1.007.658,89 1.873.098,57

Unamortized value

On 01.01.2010 3.568.850,20 3.596.446,57 83.565,30 358.562,63 7.607.424,70

On 30.06.2010 3.586.911,40 3.557.187,12 63.123,25 402.707,98 7.609.929,75

Inventory of

01.01.2009 3.568.850,20 3.923.546,87 550.473,49 1.287.001,15 9.329.871,71

Additions 0,00 0,00 4.150,00 11.083,71 15.233,71

Reductions 0,00 0,00 0,00 0,00 0,00

Balance 30.06.2009 3.568.850,20 3.923.546,87 554.623,49 1.298.084,86 9.345.105,42

Accumulated

depreciation

Inventory of

01.01.2009 0,00 251.807,33 432.547,15 846.500,55 1.530.855,03

Additions 0,00 39.227,58 21.087,85 54.021,35 114.336,78

Reductions 0,00 0,00 0,00 0,00 0,00

Balance 30.06.2009 0,00 291.034,91 453.635,00 900.521,90 1.645.191,81

Unamortized value

On 01.01.2009 3.568.850,20 3.671.739,54 117.926,34 440.500,60 7.799.016,68

On 30.06.2009 3.568.850,20 3.632.511,96 100.988,49 397.562,96 7.699.913,61

Depreciation for the period 01.01.10 to 30.06.10 amounted to 120.570,96 Euros (tangible

114.711,29 € and intangible 5.859,67 €) and increased per 5.386,93 Euros the

37

administrative costs and per 115.184,03 Euros the distribution costs. There is no lien over

the fixed assets of the company.

7. Intangible assets

Below are the changes in intangible assets, whose balance entirely concerns software

used in the period from 01.01.10 to 30.06.10 and from 01.01.09 to 30.06.09, respectively.

Acquisition or valuation cost Software

Inventory of 01.01.2010 116.059,80

Additions 32.977,00

Reductions 0,00

Balance 30.06.2010 149.036,80

Accumulated depreciation

Inventory of 01.01.2010 97.908,37

Additions 5.859,67

Reductions 0,00

Balance 30.06.2010 103.768,04

Unamortized value

On 01.01.2010 18.151,43

On 30.06.2010 45.268,76

Acquisition or valuation cost

Inventory of 01.01.2009 103.664,80

Additions 11.070,00

Reductions 0,00

Balance 30.06.2009 114.734,80

Accumulated depreciation

Inventory of 01.01.2009 91.716,59

Additions 2.718,79

Reductions 0,00

Balance 30.06.2009 94.435,38

Unamortized value

On 01.01.2009 11.948,21

On 30.06.2009 20.299,42

38

8. Deferred tax liabilities

Below follows a list of movements and balances of deferred tax assets.

Balances

30.06.10 31.12.09

Balance at beginning of year -416.101,32 -396.684,68

Credit (debit) on net position 12.282,71 0,00

Credit (debit) on operating results -13.562,35 -19.416,64

Balance at end of year -417.380,96 -416.101,32

9. Stocks

The following are the stock balances on 30.06.10 and 31.12.09 respectively:

Balances

30.06.10 31.12.09

Goods 2.543.160,33 2.448.391,67

Note that the cost of stocks recorded as an expense in the cost of sales in the period

01.01.10 to 30.06.10 amounted to 5.358.004,20 Euros, plus 22.022,25 Euros, which

concerns direct selling expenses (total cost of goods sold in the period 5.380.026,45).

10. Customer receivables

The balances of customer receivables are analysed as follows:

Please note that the company is at no significant credit risk, given the large number of its

customers and their dispersion.

Balances

30.06.10 31.12.09

Customers 4.484.434,78 4.618.535,16

Bills and checks receivable 4.542.082,86 4.996.586,66

Impairment provisions -210.000,00 -160.000,00

Totals 8.816.517,64 9.455.121,82

39

11. Other assets

The balances of the other assets are analysed as follows:

Balances

30.06.10 31.12.09

Greek state tax deposit 514.811,17 514.576,58

Suspense accounts 6.137,52 13.503,35

Other assets 26.912,07 4.389,71

Totals 547.860,76 532.469,64

12. Cash and cash equivalents

The balances of cash and cash equivalents are analyzed as follows:

Balances

30.06.10 31.12.09

Cash at hand 29.837,73 13.383,02

Balance with banks 2.063.494,33 640.472,68

Totals 2.093.332,06 653.855,70

13. Equity capital accounts

The balances of equity capital accounts as of 30.06.10 and as of 31.12.09 respectively, are

as follows:

Balances

30.06.10 31.12.09

Share capital 6.750.000,00 3.825.000,00

Reserves premium 480.804,92 3.293.857,69

Other reserves 841.017,95 862.965,18

Retained earnings 6.672.076,86 7.501.364,50

Adjustment Differences 1.023.010,47 1.010.727,76

Total equity 15.766.910,20 16.493.915,13

The sum of issued and fully settled shares amounts to 7.500.000 common registered

shares of nominal value 0,90 Euros each.

40

It is also noted that, during the current operating period, there was also conduction of an

increase of the Company share capital, by virtue of the decision issued by the Regular

General Assembly of the Company Shareholders, per the amount of 2.925.000,00 Euros,

through capitalization of the following amounts: i) the entire reserve as per article 8 of the

law 2579/1998 amounting to 10.441,73 Euros, Law 1828/1989 amounting to 1.505,50

Euros and Law 3220/2004 amounting to 100.000,00 Euros and ii) part of the reserve

“Difference from the issuance of shares above par” amounting in total to 2.813.052,77

Euros. Such increase was materialized by means of the increase of the nominal value of

all Company shares from 0,51 to 0,90 Euros per share.

14. Short term loan liabilities

The balances of short term loan liabilities are analyzed as follows:

Balances

30.06.10 31.12.09

Bank loans 0,00 611,11

Totals 0,00 611,11

15. Suppliers and other short term liabilities

The balances of other short term accounts are analyzed as follows:

Balances

Accounts payable 30.06.10 31.12.09

Suppliers 408.358,16 437.906,26

Denominated checks payable 2.354.092,17 2.115.453,32

Dividends payable 1.215.934,25 1.087,83

Other Taxes 694.898,17 222.118,45

Social security institutions 54.184,20 111.770,04

Suspense accounts 4.500,00 6.700,00

Sundry creditors 43.953,45 51.121,53

Totals 4.775.920,40 2.946.157,43

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16. Sales

The turnover of the Company, by main category of goods on 30.06.2010 and 30.06.2009

is analysed as follows:

Balances

Περιγραφή 30.06.2010 30.06.2009

MIXTURES 1.122.687,73 1.136.219,55

MARGARINES 1.260.546,08 1.096.013,47

BUTTER 964.260,75 945.633,35

CREAMS 841.602,74 868.749,04

DELIFRUIT 578.777,82 687.796,96

ICE CREAM PRODUCTS 771.320,65 815.013,70

COOKING CHOCOLATE 426.358,50 572.139,36

ARTIFICIAL CREAM 385.576,15 405.229,53

JELLIES 303.083,66 345.412,83

OTHER PRODUCTS 1.723.233,57 1.680.416,46

Total 8.377.447,65 8.552.624,25

Cost of Sales 5.380.026,45 5.492.474,22

Gross profit 2.997.421,20 3.060.150,03

Note that the cost of goods sold includes the sum of 22.022,25 Euros, which concerns

direct selling expenses.

17. Other operating income

The Company’s other income per kind, on 30.06 2010 and on 30.06.2009 respectively are

analysed as follows:

30.06.2010 30.06.2009

Income from sales discounts and

supplier payment terms 81.596,56 55.769,53

Participation of foreign companies

in trade shows - Advertisements 34.818,35 7.000,00

TOTAL 116.414,91 62.769,53

42

18. Expense Analysis per category

The analysis of the Company’s expenses and their distribution to operations is as follows:

Term 01.01.10 to 30.06.10

Cost of Administrative Distribution Financial

Type of expenditure Sales Expenses Expenses Expenses Total

Staff payment and expenses 0,00 148.301,45 1.013.595,72 0,00 1.161.897,17

Third-party payment and

expenses 13.200,00 81.468,00 121.229,00 0,00 215.897,00

Third-party benefits 0,00 21.345,19 187.744,31 0,00 209.089,50

Taxes & duties 0,00 0,00 30.710,22 0,00 30.710,22

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

Interest charges and related

expenses 0,00 0,00 0,00 7.908,26 7.908,26

Depreciation of tangible assets 0,00 4.536,93 110.174,36 0,00 114.711,29

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

Cost of stocks 5.358.004,20 0,00 0,00 0,00 5.358.004,20

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

Term 01.01.09 to 30.06.09

Cost of Administrative Distribution Financial

Type of expenditure Sales Expenses Expenses Expenses Total

Staff payment and expenses 0,00 141.399,43 987.296,66 0,00 1.128.696,09

Third-party payment and

expenses 26.400,00 132.001,50 99.008,24 0,00 257.409,74

Third-party benefits 0,00 40.372,46 166.353,41 0,00 206.725,87

Taxes & duties 0,00 0,00 21.393,84 0,00 21.393,84

Other expenses 14.761,41 30.754,87 279.130,37 0,00 324.646,65

Interest charges and related

expenses 0,00 0,00 0,00 19.945,68 19.945,68

Depreciation of tangible assets 0,00 3.965,00 110.371,78 0,00 114.336,78

Depreciation of intangible assets 0,00 1.028,79 1.690,00 0,00 2.718,79

Cost of stocks 5.451.312,81 0,00 0,00 0,00 5.451.312,81

Totals 5.492.474,22 349.522,05 1.665.244,30 19.945,68 7.527.186,25

43

19. Income tax

The movement of income tax for the period from 01.01.-30.06.10 and 01.01-30.06.09 is

as follows:

Balances

Description 30.06.10 30.06.09

Income tax 230.763,87 247.044,18

Extraordinary contribution, Law 3845/2010 181.159,58 0,00

Deferred income tax on results 13.562,35 17.105,16

Total 425.485,80 264.149,34

Income tax for the interim period has been calculated using the taxation coefficient of

non-distributable income applicable for the current period, which amounts to 24 %. The

respective coefficient for the interim period of the year 2009 was 25 %. Moreover,

significant expense over the results of the current period was the extraordinary

contribution over 2009 operating period profits, enforced by Law 3845/2010, which

amounted to € 181.159,58.

20. Existing mortgages

There are no mortgages on the company’s real estate.

21. Contingent Assets - Liabilities

Information on contingent liabilities

There are no disputed or under arbitration differences, or judicial decisions of decisions

by arbitrators or judges or arbitrators who have or may significantly affect the financial

condition or operation of the company.

Information on contingent liabilities

There are no contingent liabilities that require reporting in the Company’s financial

statements.

44

22. Purchases and sales of tangible fixed assets

Investment in fixed assets for the period 01.01.2010 to 30.06.2010 amounted to €

150.193,34.

23. Unaudited fiscal years

The Company is audited up to the operating period 2007, inclusive, for all types of tax

liabilities. For the non-audited periods of 2008 and 2009 there has been formation of a

provision amounting to 60.000 Euros.

24. Number of personnel employed

Personnel employed on 30/06/2010 : Company 66 persons.

Personnel employed on 30/06/2009 : Company 70 persons.

45

25. Transactions with parties related with the Company

Transactions of the Company with related parties as defined in IAS 24 are as follows.

01.01-30.06.2010 01.01-30.06.2009

Sales of goods and services

To subsidiaries 0,00 0,00

To other affiliated parties 0,00 0,00

Purchases of goods and services

From subsidiaries 0,00 0,00

From other affiliated parties 0,00 0,00

Sales of assets

To subsidiaries 0,00 0,00

To other affiliated parties 0,00 0,00

Assets

From subsidiaries 0,00 0,00

From other affiliated parties 0,00 0,00

Liabilities

To subsidiaries 0,00 0,00

To other affiliated parties 0,00 0,00

Benefits to management and executives of the company

Transactions and payments of executives and board

members 236.134,04 229.268,92

Demands from executives and board members 0,00 0,00

Liabilities to executives and board members 373,50 16.720,54

No loans have been granted to members of the Board or other executives of the Company

(and families).

46

26. Profit per share

Profit per share is calculated by means of dividing the profit with the weighted mean

average number of common registered shares during the operating period.

Period Period

01.01-

30.06.10

01.01-

30.06.09

01.04-

30.06.10

01.04-

30.06.09

Profit after taxation 610.712,36 775.848,57 247.190,12 462.748,41

Weighted mean number of shares 7.500.000 7.500.000 7.500.000 7.500.000

Profit after taxation per share 0,0814 0,1034 0,0330 0,0617

27. Events after the date on which the Financial Statements.

Apart from the already mentioned, there are no events after the date of the financial

statements that relate to the Company, which must be reported according to the

International Accounting Standards.

The parties responsible for preparing the semi-annual Financial Report

Acharnai, August 25, 2010

Stylianos Kanakis Maria Kanaki Athanasios Syrmos

President & CEO Board vice-president Financial Director

47

E. Information for the period from January 1 to June 30, 2010.