Athens, 30/08/2013

Heracles Group Announces 1^st Semester 2013 Results

Results reflect the continued effects of recession and the one off impact of the cement production structure reorganization

The Group efforts to increase export activity continue to intensify     

Heracles Group of Companies announced today sales of 112.9 million Euros for the first semester of 2013, increased by 4.1% compared with 108.5 million Euros in the same period of 2012. Sales of the Company were at 102.2 million Euros, increased by 10.1% compared with 92.8 million Euros in the first semester of 2012.

The Group's earnings before taxes, interest, depreciation and amortization (EBITDA) was a loss of 118.5 million Euros in the first semester of 2013 compared to a loss of 50.7 million Euros in the first semester of 2012. The Company's EBITDA was a loss of 115.2 million Euros in the first semester of 2013 compared to a loss of 60.6 million Euros in the first semester last year. 

The Group presented in the first semester of 2013 losses after taxes of 108.8 million Euros, compared to 63.4 million Euros losses after taxes in the same period of 2012. In the first semester of 2013 the Company presented losses after taxes of 102.5 million Euros compared to 69.8 million Euros losses after taxes in 2012.

The results of the Group and the Company in the first semester of 2013 were significantly affected by the reorganization of the cement production structure. Following the permanent cease of Halkis plant operation, the Company proceeded with total impairment of the assets of the plant and relevant provisions. Following the Minister of Labor, Social Security and Welfare decision No 13449/246, rejecting the planned collective redundancies requested by the Company, the non recurring charge, net of deferred taxes, amounts to 80.8 million Euros and affected the financial results of the Company and the consolidated financial results of the Group.

The deep recession in the domestic market continued during the first semester of the year. In order to offset the effects of the recession in the domestic market both the Group and the Company continue to intensify their export activity. The sales increase in the first semester of 2013 is attributed to the increase of exports. In addition, in the first semester of 2013, the Group and the Company continued implementing strong measures to reduce operating costs and optimize performance in production and supply chain and administration activities.