In reply to the Greek Capital Committee, we informed you for the following subjects:
The company, according to the financial statements which was over in 31.12.2007 and has been published in 20.2.2008 announces the followings:
1. Basic Accounting Principles for the period 1.7.2007-31.12.2007
In the interim financial statements for the period 1.7.2007-31.12.2007 has been used the same Accounting Principles and Policies as in the annual financial statements of the 1.7.2006-30.6.2007 year of accounts and have been put in practice in all years of accounts that been presented.
2. Group Structure and Method of Companies' Consolidation.
The parent company in 28.09.2007 undersign the agreement (on approval of Competition Comitee in 01.08.2007) for the acquisition of 51% of Sarafidis S.A. company. Consequently the consolidated financial statements contain the Balance Sheet (of 31.12.2007), the Income Statement and the Cash Flow Statement of the period between 29.9.2007 and 31.12.2007 of the new subsidiary company.
If this (subsidiary) company has been consolidated from the beginning of this financial period the effect will have been augmented per euro 76.000.
Subsidiary companies are consolidated with the method of Total Consolidation begins at the day in which Electroniki Athinon S.A. get into control and terminates the consolidation at the day in which this control bring to an end. Control is the condition in which a company has the authority to direct the financial and the entrepreneur policy of another financial entity, in order to have profits from the activities. Basic accounting principles are the same for the parent company and the subsidiary one.
Company's Goodwill
Goodwill emerges for first time in the group's financial statements after the financial statements consolidation of the new subsidiary company "SARAFIDIS S.A." which has been acquired in 28.09.2007 by the parent company.
The acquisition cost of this company was more than the group's portion in the equity, consequently the group accounts as goodwill the divergence be shown in the next table:
Day of shares' purchase 28/9/2007
Total number of shares 2.360.000
Number of shares acquired 1.203.600
Percentage of shares acquired 51,00%
Nominal shares value 1,00
Purchase price per share 2,66
Shares' acquisition cost:
Cash played 3.199.999,97
Direct costs about shares' acquisition 0,00
Dividends from earnings (before shares' acquisition) 0,00
Total shares' acquisition cost 3.199.999,97
Minus: Fair Value of Assets and Liabilities -1.559.576,16
Goodwill 1.640.423,81
We have to notice that the goodwill's percentage which came up from the shares' acquisition is temporary. The determinating of fair value of assets and liabilities of the acquired companies, the acquisition cost's proration according to the orderings of IFRIC 3 Companies Compilation and the sequent definitive assessment of goodwill are ordering of the IFRIC above, in order to definitive the financial data in twelve months from the acquisition day.
The accounting value of the acquisition ,the total acquisition cost and the group's temporary goodwill in 28.09.2008 (day of acquisition) analyzed as follows:
Assets and Liabilities of "Sarafidis S.a." Accounting value in 28/9/2007 Fair Value in 28/9/2007
Tangible Assets 2.238.810,15 2.238.810,15
Intangible Assets 600,96 600,96
Deferred tax assets 315.545,94 315.545,94
Other long-term receivables 61.211,60 61.211,60
Inventories 8.569.747,38 8.569.747,38
Customer & other trade receivables 6.721.899,34 6.721.899,34
Other receivables 1.278.113,24 1.278.113,24
Cash & cash equivalents 2.845.086,63 2.845.086,63
Liabilities for employee benefits due to termination of employment. -
383.285,00 -383.285,00
Other long-term liabilities -504.561,36 -504.561,36
Suppliers and other liabilities -15.876.409,07 -15.876.409,07
current tax liabilities -272.196,87 -272.196,87
Short terms loans -386.276,87 -386.276,87
Other short-term liabilities -1.550.293,59 -1.550.293,59
Total equity 3.057.992,48 3.057.992,48
Acquired investment's percentage by the parent company 51,00%
Fair Value of the assets and the liabilities 1.559.576,16
The impact at the group's basic financial data in 31.12.2007 (after the consolidation of SARAFIDIS S.A. financial statement) is the following:
GROUP
31/12/2007 Impact in group's data after the consolidation of SARAFIDIS S.A. IMPACT'S PERCENTAGE
Total Assets 133.426.409,93 24.603.367,38 18,44%
Equity given at the parent's shareholders 28.306.292,76 107.927,65 0,38%
Sales 119.407.037,07 11.769.267,22 9,86%
Results after taxes and Minority interest 4.842.071,06 107.927,65 2,23%
Additional Information
3.1 Transaction with affiliated parties
The introcorporative transactions between the group's parties
Concern exclusively the sales of merchandise
Function in the same conditions like these which are ruled clearly in Trade Statement (only if these conditions can be ascertained)
Have been totally off the consolidated financial statement.
3.2 Cash and Cash equivalents
Cash is analyzed as follows:
GROUP COMPANY
31/12/2007 30/6/2007 31/12/2007 30/6/2007
Funds 759.689,07 633.811,79 606.825,81 623.286,79
Demand Deposits 17.638.271,02 17.630.189,48 13.362.487,16 16.611.275,21
Time Deposits 6.196.619,72 5.222.636,69 6.196.619,72 5.222.636,69
Total 24.594.579,81 23.486.637,96 20.165.932,69 22.457.198,69
3.3 Dividends
The dividend that has been decided to be distribute by the annual ordinary General Assembly of the shareholders after the taxes of the previous fianancial year 1.7.2006-30.6.2007 run into euro 3.622.500,00 or euro 0,21 per share.
During the period 1.7.2007-31.12.2007, the dividend that have been payed worth 1.237.139,64?, compared to the same period the previous year that there was not any payment.
Finally we inform you that this notification will be announced in the website of our company.