Interim Management Statement Relating to the Second Half of for Fiscal Year 2013
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Nicosia, 6th November 2013 DISCLOSURE OF REGULATED COMPANY INFORMATION In accordance with the provisions of section 11 of the Conditions of Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Laws of 2007 and 2009 (the “Transparency Law”), we wish to inform you that in its meeting convened on the 31st October 2013, the Board of Directors of Agroton Public Ltd (“Agroton”, the “Company”) examined and approved the Interim Management Statement of the Company for the second half of fiscal year 2013, which is exhibited below: Interim Management Statement Relating to the Second Half of for Fiscal Year 2013 Main Activities For the period 1st July 2013 until 31st October 2013, the principal activities of the Agroton Group, which exhibited no change with respect to the Group’s activities for the first half of the fiscal year, included the growing of grain and oil crops, the storage and sale of agricultural products, breeding of cattle, farming of poultry and milk processing. It is noted that in the course of fiscal year 2011, the Agroton Group had discontinued its operations of pig-breeding and production of cheese. Financial Affairs During the period under review, there have been no material changes in the financial position of the Company, and no material events have come about, which would influence the financial performance and results of the Company and /or the Group. The Company continues to hold Bank of Cyprus equity securities converted into Class A shares, after the decree issued by the Central Bank of Cyprus on 29 March 2013, imposing measures for the Bank of Cyprus under the Resolution of Credit and Other Institutions Law of 2013. Following the aforementioned decree on the rescue by own means of Bank of Cyprus issued by the Central Bank of Cyprus on 29 March 2013, the Cyprus Stock Exchange and the Athens Exchange, which are the two Exchanges on which the shares of the Bank of Cyprus are listed, have suspended the trading of Bank of Cyprus equity securities until 30 October 2013, inclusive. Following a pertinent request made by the Cyprus Securities and Exchange Commission to the Board of the Cyprus Stock Exchange, on the 30th October 2013 it was announced that the suspension of the trading of the shares of Bank of Cyprus Public Company Limited will be extended for the period between 31 October 2013 and 31 January 2014. The decision for the extension of the suspension of trading was taken pursuant to article 127(2) of the Investment Services and Activities and Regulated Markets Laws 2007 to 2012. As stated in the announcement, the Commission ended up with the decision so as to give time, based on the timetable given by the Bank of Cyprus Public Company Limited, for compliance with its continuous obligations in relation to the financial information as well as the possible preparation of a Prospectus for the listing of the shares that have emerged from the implementation of the relevant decrees on the CSE. Currently, there is no indication of the fair value of the Bank of Cyprus equity securities. As also stated in the unaudited financial statements of Agroton for the period ended 30 June 2013, the management of the Company estimates that the nominal value of the securities is higher than their fair value by approximately 45%. It is noted that the loss on derecognition of the above securities for the period ended 30 June 2013 amounted to 921k USD and was recognised on Agroton Group’s Profit & Loss Account for the corresponding period. It is also noted that on the basis of conditions existing as at 30 June 2013, the amount of an affected bank deposit with Bank of Cyprus was derecognised and the four assets described below were recognised in accordance with the provisions of the Decree issued for the Bank of Cyprus on 29 March 2013 and relevant developments thereafter up to 30 June 2013: (a) 10% of the affected deposit (USD 431 thousand) was released and it continues to be held as cash at bank; (b) 30% of the affected deposit (USD 1.292 thousand) was restricted at 30 June 2013 and as a result does not fulfil the requirements for presentation as cash and cash equivalents. As a result, it was not presented as a restricted bank deposit in the Group’s condensed, consolidated interim financial statements for the six months ended 30 June 2013; (c) 22,5% of the affected deposit (USD 969 thousand) was exchanged into a new debt instrument that is convertible into shares in Bank of Cyprus and was disclosed as Financial Assets at fair value through profit or loss in the Group’s condensed, consolidated interim financial statements for the six months ended 30 June 2013; (d) 37,5% of the affected deposit (USD 1.616 thousand) represents an equity financial asset and was disclosed as Financial Assets at fair value through profit or loss in the Group’s condensed, consolidated interim financial statements for the six months ended 30 June 2013. Non-Recurrent and Extraordinary Activities During the period under review, no non-recurrent or extraordinary activities were undertaken by Agroton and, subsequently, no profits or losses arose as a result of activities, other than the Company’s main activities. Main Risks and Uncertainties Finally, it is noted that the major financial and other risks and uncertainties to which Agroton Group and the parent company are exposed, including, inter alia, credit risk, liquidity risk, market risk, interest rate risk and operation risk, as well as the means used to mitigate such risks are the same to those presented in detail in the Consolidated Financial Statements for fiscal year 2012. On behalf of the Board of Directors Intelion Partners Limited |