Athens, April 24th, 2008

Yearly analyst's briefing
 

The annual presentation of I.Kloukinas-I.Lappas SA took place on Friday 24th of April 2009 in the company’s offices. The management of the company referred to the financial results of 2008, as well as to its perspectives and strategic goals.

The consolidated profits before taxes are decreased by 33,54% amounting to 9.896.625€ over 14.890.208 € in 2007. The profits after taxes are decreased by 36,32%, amounting to 7.004.467 € over 11.000.099 € in 2007.

We point out that the results of the FY 2007 do not include the profits from the valuation of investment property, amounting to 6.970.909€ , non recurrent in the FY 2008. The Group’s inventory was increased to 11.835.390€ over 9.127.814€ on 31/12/2007, an increase of 29,67%. This is attributed to the Group’s sales network expansion, as well as to the collapse of demand during December 2008 because of the riots that took place in Greece, which essentially lead to sales less than expected.

The Group’s receivables amounted to 22.461.062€ over 15.580.255€ on 31/12/2007, increasing by 44,16%. This increase is due mainly to the increased sales of the construction sector of the Group on the one hand, while on the other, to the increase of its turnover.

The Group’s Equity on 31/12/2008 was at the level of 66.371.322€, while it was 66.382.888€ on 31/12/2007, remaining thus substantially unchanged. The Group’s Net debt amounted to 21.080.118,90€, over 14.734.884,16€ of the FY 2007, increasing thus by 43,06%. It must be noted that the investment program of the Group for the FY 2008 was mainly financed through debt capital.

REVIEW OF RESULTS BY SECTOR :

Review of construction activity :

The turnover increased by 23,81%, amounting to 30.597.188€ over 24.713.634€ of the FY 2007. The gross profit was 4.535.174€ over 6.024.999€ of the previous FY, decreased by 24,73%. This decrease is due to the intense competition during this FY, which offered prices even below cost, because of the crisis that the constructions' sector is facing as an impact of the general world-wide financial crisis. The company reduced the gross profit margin, gaining thus, share of the market.

The profit before taxes was 2.517.688€ over 3.761.344€ of the FY 2007, decreased by 33,06%, as a result of the gross profit margin. For the FY 2009 the company has already signed contracts of about 15.000.000€. Predictions for the sales and the results of the FY 2009 cannot be made given the general crisis of the sector.

Review of commercial activity :

The turnover amounted to 45.211.542 Euro over 38.624.957 Euro, an increase of 17,05% compared to 2007. The gross profit amounted to 29.924.751 €, over 24.400.194, an increase of 22,64%.The percentage of gross profit for 2008 amounted to 66,19%, over 63,17% of 2007.This raise was due to the different policy of invoicing from Mothercare UK, which now invoices the goods at cost price and benefits over royalties on the sales.

The royalties have raise the distribution cost over 1.000.000€ and also the gross profit accordingly. The different way of invoicing does not affect the results.

The profits pre taxes amounted to 7.274.762 €, over 10.999.371,62, a decrease of 33,86 % . This financial year was also burdened with the rent of the new warehouse of 1.000.000€, surface 9.600sq.m, the additional depreciations of 600.000€ for the new stores and with the expenses due to the consolidation of the affiliated Compton House Hellas , which was consolidated entirely for the first time , while in the previous year it was consolidated only from the acquisition date November 2007.

Following the development plan of “I. KLOUKINAS – I. LAPPAS S.A.” during 2008, there were realized total investments of 3.069.039€, these investments had to do mainly with the expansion and renovation of the sales points network of the Group. More specifically, the above mentioned investments, concerned the creation of ten (10) new sales points in Greece and abroad, as well as the upgrade of the Group's warehouse facilities and the I.T. infrastructure.

Prospects for FY 2009

The management of the company estimates that the present economic crisis , which affects directly all the productive sectors of the economy , affects respectively the retail market , in which the Group operates. The company, given the present economic crisis, cannot proceed to any estimation for the turnover and the results for 2009.

The company proceeds with the reduction of the operating cost as far as it is possible. The gross profit margin will remain at the same levels. In retail sector, opportunities are presented relating to the leasing or purchase of premises in good sales points. The company will take advantage of this opportunity in order to expand the Early Learning Centre network. In the construction sector the backlog amounts to 16 m. € almost 50% of the 2008 turnover. The company will undertake new projects having as a target the elimination of bad debts and maintenance of existing clientele. The profit margins in the construction sector are declining.