CHAIRMAN'S MESSAGE

Dear shareholders,

We look back at an eventful year 2016 influenced by ongoing uncertainties and geopolitical tensions. Despite all this Group managed to reach another excellent performance in 2016 based on an effective diversification in terms of business activities and regional exposure. We anticipate that 2017 will be another challenging but successful year, while addressing efficiently all global challenges at the same time, we remain focused on creating value to our stakeholders.

All activities exhibited remarkable growth, whereas we expanded our footprint in new markets and we prepared the next stage of the Group development. Our reported consolidated revenue rose by 12,1% while Group net income increased by almost 22%. These sound results were supported by the resilience of our local activities and an exceptional performance of the affordable luxury division.

Our own brands Folli Follie and Links of London recorded an impressive performance driven by dynamic sales and improved profitability. The continuous demand for affordable luxury confirms our strategy and positioning in an industry which continuously gains customers worldwide. The performance of our domestic operations demonstrated impressively the resilience of our diversified brand portfolio and benefits of market share gains we experienced throughout the last couple of years.

The Jewellery, Watches and Accessories activity demonstrated its solid performance which accelerated in the last quarter of the year, proving the brands ability to capitalize on the many opportunities available in existing as well as new markets.

The Retail and Wholesale as well as the Department Store activities experienced another year of impressive recovery, translating a growing market share into rising revenues and profitability.

We remain alert regarding the market dynamics and we are ready to adopt our business model in the changing conditions. For 2017 we are focused on our targets and are confident that we will continue to develop our brands irrespective of the challenges in the markets we operate. I wish to express my special thanks and appreciation to our customers, our loyal shareholders and colleagues, who achieved with enthusiasm and great commitment these outstanding results.

Thank you for your loyalty and support.

Yours sincerely, Dimitris Koutsolioutsos

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