Dear shareholders,

During 2014 our Group completed another successful year in all its main activities. We focused on our strategy to expand our own brands and diversify into new markets, whereas our key task was to bolster profitability through improved margins and a low cost base.

Our own brands Folli Follie and Links of London exceeded once again our expectations and enforced their brand names around the world. The rising demand for affordable luxury on a global level confirms our strategy and positioning in an industry which continuously gains customers worldwide.

The performance of our domestic operations demonstrated impressively how our Group turned challenges into opportunities which resulted into significant market share gains and reinforced our local operations as a leading force for branded retail in Greece and the Balkans. Looking at our financial performance, consolidated Group revenues for the full year 2014 increased by 12,5%. The Group’s Gross profit increased by 12,3%, with the respective gross margin at 50,3%.

In the effort to further control and reduce operating expenses, we managed to achieve an increase in the Group’s operating profit of 21,5%. Net profit after minorities reached EUR 141,2 million.

The Jewellery, Watches and Accessories activity reported for the Full Year 2014 another record performance confirming the favorable positioning of our brands Folli Follie and Links of London. Revenues grew in 2014 by 10% with EBITDA increasing by 14,4% and the respective margin at 27,8%.

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. Revenues for the activity Retail/Wholesale grew by 28,7% for the year 2014, EBITDA grew by 44% with the respective EBITDA margin at 11%.

The same trend can be observed in the Department Store activity where revenues grew by 12,7% and EBITDA by 35,4% with a margin increase from 7,1% to 8,5%.

Looking ahead we remain optimistic about the prospects of the Group, supported by strong strategic partners, we managed to strengthen our capital structure and capitalizing on our strong liquidity and successful operating model in case opportunities arise 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
Chairman of the Board of Directors