HELLENIC FUND FOR ENTREPRENEURSHIP AND DEVELOPMENT (ETEAN S.A.)

Transcription

1 HELLENIC FUND FOR ENTREPRENEURSHIP AND DEVELOPMENT (ETEAN S.A.) FINANCIAL STATEMENTS FOR THE YEAR THAT ENDED ON ACCORDING TO THE INTERNATIONAL FINANCIAL REPORTING STANDARDS JUNE 2017

2 TABLE OF CONTENTS Audit Report Of Independent Public Accountants... Management Report of the Board of Directors to the General Meeting... Statement of Comprehensive Income..... Balance Sheet..... Statement of Changes in Equity..... Statement of Cash Flows Information about the company Basis of presentation of the financial statements Drafting base of the financial statements Adoption of IFRS Statutory Financial statements Use of estimates Adoption of Financial Statements New standards, modifications and improvements to existing standards Basic Accounting Principles. 3.1 Revenue recognition Tangible fixed and intangible assets Amortization Financial instruments Impairment of assets Receivable accounts Cash available Benefits to the personnel due to retirement 3.9 State insurance programs Income tax (current and deferred) Provisions and contingent liabilities/receivables Leases Distribution of dividends Important estimates and judgements of the Administration Determination of reasonable values Investments and other financial assets Partial analysis of the company's activities Financial Risk Management Capital adequacy 6. Information by sector.. 7. Cash and Balances in the Central Bank Tangible fixed assets and intangible assets Receivables from guarantee fees & sureties Other assets. 11. Receivables from credit institutions Investment held to maturity Share Capital 14. Reserves Dividends Income taxes and deferred taxes Provisions Provisions for employee benefits.

3 19. Liabilities due to credit institutions Other liabilities 21. Net fee and commission income 22. Other income. 23. Fees/Compensation of Board Members 24. Other expenses Forfeitures of guarantees 26. Personnel wages and expenses Results from financial transactions Transactions and balances with related parties Contingent liabilities & commitments Subsequent to the statement of financial position events...

4 Report of independent public accountant to shareholders of the company "HELLENIC FUND FOR ENTREPRENEURSHIP AND DEVELOPMENT S.A. (ETEAN S.A.)" Audit Report on the Financial Statements We have audited the attached financial statements of the company "HELLENIC FUND for ENTREPRENEURSHIP and DEVELOPMENT S.A.", which consist of the statement of financial condition of 31 st December 2016, the statements of comprehensive income, thechanges in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. The Administration s Responsibility regarding the Financial Statements The administration is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal audit,the administration determines as necessary to enable the drafting of financial statements that are free from significant inaccuracies, whether due to fraud or error. The Auditor's Responsibility Our responsibility lies within the scope of expressing an opinion on these financial statements based on our audit. We have conducted our audit in accordance with the International Standards on Auditing which have been incorporated into the Greek Legislation (GG/Β /2848/ ). These Standards require that we comply with rules of conduct, as well as plan and conduct the audit in order to ensure that the Company's financial statements are free of material inaccuracy. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material inaccuracy of the financial statements, whether due to fraud or error. When conducting these risk assessments, the auditor examines the internal safeguards which are related to drafting and presenting the company's financial statements in order to design audit procedures that are appropriate in these circumstances, but not with the view to express an opinion on the effectiveness of the company's internal safeguards. Moreover, the audit assesses whether the accounting principles and methods used were suitable and the assessment performed by the Management was fair, while it also assesses the overall presentation of the financial statements. We believe that the audit evidence we have compiled is sufficient and appropriate to provide a basis for our audit opinion.

5 Opinion In our opinion, the attached financial statements present fairly, in all essential respects, the financial position of the company "HELLENIC FUND FOR ENTREPRENEURSHIP and DEVELOPMENT S.A." on 31 st of December 2016, its financial performance and its cash flows for the financial year that ended in accordance with International Financial Reporting Standards as adopted by the European Union. Report on Other Legal and Regulatory Requirements Taking into consideration that the administration is responsible for the preparation of the Board of Directors' Management Report, pursuant to the provisions of paragraph 5 of Article 2 (Part B) of Law 4336/2015, we note that: A) In our opinion, the Management Report of the Board of Directors has been prepared in accordance with the applicable legal requirements of article 43a of Cod. Law 2190/1920 and its content corresponds to the attached financial statements for the year ended on B) B) On the basis of the knowledge acquired during our audit, for the Company "NATIONAL FUND OF ENTREPRENEURSHIP AND DEVELOPMENT S.A." (ETEA S.A.) "and its environment, we have not identified material inaccuracies in the Management Report of the Board of Directors. Athens, 07 June 2017 The Certified Auditor Meletios D. Siatathis SOELReg.No12181 A s s o c i a t e Certified Accountants S.A. member of Crowe Horwath International 3 Fok.Negrist., AthensSOEL Reg. No 125

6 MANAGEMENT REPORT Of the Board of Directors of the company "Hellenic Fund for Entrepreneurship and Development/ETEAN SA" to the annual Ordinary General Meeting of the shareholders for the activities of the financial year Dear shareholders, In 2016, the Greek economy experienced significant signs of stabilization, despite the fluent international environment and the difficulties in the euro area.in the second half of 2016, the economy showed positive growth rates, and for the year as a whole, GDP grew by 0.3%. These signs of recovery were also reflected in private consumption growth of 1.4% per year.a landmark for 2016 was the update of the Memorandum of Understanding in June 2016 and the adoption in May 2016 of the mechanism for correction of potential discrepancies as a prerequisite for completing the evaluation of the Third Program, while ensuring future budgetary targets. The completion of the first evaluation resulted in a disbursement of 10.3 billion to serve the debt and repayment of overdue liabilities.banks showed earnings before taxes for the first time in several years. Nevertheless, their lending activity continued to be extremely limited, and in 2016 the credit standards for lending to businesses continued to be tightened was a year - challenge for ETEAN, after being called to: play a central role in development planning for the employment of financial technique instruments for the programming period maximize the absorption of resources from the previous programming period for the benefit of small and medium-sized enterprises contribute to the stoppage of the shrinkage of bank financing by returning cumulative overdue liabilities from previous periods Regarding the proceedings of the Board, it is noted that in 2016, the Board of Directors of ETEAN met 18 times with the same composition, i.e. with Board members that were elected and appointed for an office term of three years by the General Meeting of ETEAN with its decision No 23/ (Constitution of the Board of Directors, Minutes 95/ ). Below are listed the main administrative events that shaped the current economic situation and prospects of the company. Formulation of business strategy and business objectives of the company In June 2015, the new Administration has determined the role and strategy of ETEAN in the next crucial years for the economic development of the country, established the fundamentals of strategy and determined the immediate priorities as regards the taking up of new functions and activities.

7 In 2016, this strategy was implemented by expanding the activity to new areas such as business venture, which was a turning point for ETEAN, since with the incorporation of TANEO SA is now becoming a group, expanding its activities in this field as well. With the new funds of National Fund for Entrepreneurship II (TEPIX) and the Home Subsidy Fund II (TEXOIK), set up at the end of 2016, the new financial instruments that will be implemented in the next programming period with the utilization of NSRF resources were activated. ACTIONS OF ETEAN S.A. I. Transfer of shares of TANEO S.A. to ETEAN On December 31, 2016, the process of transferring the shares of the New Economy Development Fund SA (TANEO SA) at the National Entrepreneurship and Development Fund SA (ETEAN SA), was completed with the registration of the transfer act, in the shareholder's register of TANEO SA. The New Economy Development Fund (TANEO) is a fund-of-funds in the form of a societe anonyme. The aim of TANEO is to co-invest, as a minority shareholder with private investors, in the creation of Mutual Funds of Business Participations (AKES), which in turn invest in small and medium-sized enterprises, which are preferably in the starting or early stages of development. According to the relevant Joint Ministerial Decision (Government Gazette B '3953 / ), a title of twenty thousand (20,000) common registered shares of a nominal value of Euro each,it is transferred to ETEAN SA, issued by TANEO SA while at the same time the members of the Board of Directors are elected by the General Meeting of Shareholders, which appoints the Chairman and the CEO and its Vice-Chairman. Three of the five members come from the Board of Directors of ETEAN SA. Consequently, TANEO SA is transformed into a subsidiary of ETEAN SA, since upon the registration of the transfer act in the shareholders' book of the first, the latter holds its shares with full rights of shares. II. Signing a Memorandum of Understanding with the European Investment Fund On 9 December 2016, a Memorandum of Understanding was signed by Mr. Yiannis Tsakiris, Southeast Europe Manager of the EIF and ETEAN President &CEO, Mr. Kostas Galiatsos, to create a strategic framework for cooperation, from which small and medium-sized enterprises,

8 particularly those active in new technologies, will be able to benefit at all stages of their development. The purpose of this Memorandum is to strengthen the links between the two organizations and to facilitate their strategic partnership to support their actions aimed at addressing the financial gap for Greek enterprises, especially for the immediate time horizon until the With the signing of this memorandum, the two organizations are given the opportunity for closer future cooperation and exchange of views and know-how on best practices as well as on the financing needs of Greek enterprises, especially in the venture capital sector, as well as on the platform of the National Development Organizations established by the EIF and where ETEAN is a founding member. Finally, operational cooperation is also envisaged at the level of financial product implementation. III. ETEAN is a founding member of the EIF-NPI Equity Platform The European Investment Fund (EIF) and the European Commission have launched the EIF-NPI Equity Platform, an initiative aimed at facilitating cooperation between the EIF and National Development Banks (NPIs) in the EU Member States. The Platform aims to assist the national and community bodies involved to promote and share knowledge and best practices between them in order to facilitate access to equity finance by companies by participating in their share capital. During the first meeting, which took place on September 29 at the EIF headquarters in Luxembourg, the founding members of the Platform's General Meeting signed its articles of incorporation, and then the first discussions on possible ways and forms of cooperation began. 29 National Development Banks from 18 EU Member States participated in the proceedings of the General Meeting. Greece is represented in this important European initiative by the National Entrepreneurship and Development Fund (ETEAN), which participated in the first meeting as a founding member, represented by the Chairman of the Board of Directors & Managing Director, Mr. Konstantinos Galiatsos. IV. Settlement of maturity liabilities / Earnings of cash at ETEAN SA through the exchange of Greek Government Bonds The primary pillar of activity and particularly important in the time of the crisis the country is going through is the guarantee. A key element of this function is the consistency and credibility of the parties involved, both the guarantor and the one that receives the guarantee in order to ensure

9 a sound system designed to reduce credit risk and thereby facilitate access to finance by better terms. In 2016, the Greek state responded to corresponding requests from ETEAN SA and attributed a significant amount of cash through the exchange of Greek Government Bonds. Following the decision of the Deputy Minister of Finance (GG B 2273 / ) according to which, on 20/07/2016, ETEAN SA, was allocated a total amount of million, by the Greek State, with an equivalent amount return of Greek Government Bonds, in order to meet the due liabilities of ETEAN SA to credit institutions, due to guaranteed loan repayments, these funds were allotted directly to the Credit Institutions. In this way, on the one hand, a significant amount was pushed into the banking system underpressure and, on the other hand, ETEAN's credibility was enhanced as a public guarantee body. V. Participation in the Investment Fund of Greece (IFG) With the L. 4307/2014, ETEAN was instructed to represent the interests of the Greek State in the creation of the Fund for Development (IFG) established jointly with the German Government (represented by the KFW), and which will activate directly in the financing of Greek small and medium-sized enterprises. The first 100 million Euros placed through ETEAN S.A.to IFG relate to the implementation of sub-loans, which was implemented in 2015 from the two participating banks (Eurobank and Piraeus Bank). The total of available resources for funding, i.e million have already been absorbed by the Greek companies. Portfolio funds ETEAN SA, plans, implements and manages Portfolio Funds financed by NSRF and the European Structural Funds. During 2016 it administered: -Home Subsidy Fund (TEXOIK) The synonymous Program is a financial instrument, which is addressed to natural personshouseholds for their aid in implementing projects aimed at the energy retrofit of their homes. The program is funded by the Greek State and the European regional development fund and is composed of: a) The Home Subsidy Fund, through which, but also with the co-financing of the four banks, interest-free (fully subsidized) loans are granted.

10 b) The program of Direct Aid (grant), which complements with the interest-free loan, as it allows non-repayable financial aid, which is paid and from intermediary banks, as described in the Program guide. The Program from its activation in the second quarter of 2011 until the completion of the program of direct aid in , has had great resonance, with the result that there was a significant number of requests not met due to depletion of available resources. Until the end of 2015, were implemented 45,373 disbursements of Program beneficiaries, who have completed interventions of energy upgrade of their houses and were granted the benefits of the Program. The completed projects corresponded to eligible budget of million, while the amount of benefits (subsidy cost of energy upgrade Certificates, Project Adviser costs) amounted to million. The Home Subsidy Fund (TEXOIK)operated with the co-investment of its resources with four (4) Greek Banks (NATIONAL BANK OF GREECE, PIRAEUS BANK, EFGEUROBANK S.A., APLHA BANK). The Operation has successfully operated with a combination of lending and direct support. The share of participation-co-investment in capital between the Contracting Parties was set at 1: 2, i.e % covered by the Home Subsidy Fund and 66.67% by the Bank, and is identical to the risk-taking ratio of each Contracting Party. The regulatory provisions provided for the expiry of the expenditure eligibility period of the Home Subsidy Fund (TEXOIK) on , i.e. after the completion of the direct aid program which was on It was therefore decided to use 40 million of the Fund's Return Fund resources for the Immediate Aid Program in order to meet 8,518 additional applications with a total budget of million out of a total of 35,943 requests submitted in time and not possible to be satisfied due to the exhaustion of the Immediate Aid budget. Overall, the absorption by the Fund at the end of the eligibility period amounted to million. - National Fund for Entrepreneurship (TEPIX) (1) The FUND FOR ENTREPRENEURSHIP was introduced as Portfolio Fund (Capital), with No /1245 (GG 1697/B/ ) Joint Ministerial Decision, with a view to achieving the objectives of operational programs in Greece, as to improve the competitiveness of Greek businesses. As purpose of the recommendation of the Fund is described the improvement of access to

11 finance, as well as the reinforcement of entrepreneurship, investment and the development of small, micro and medium-sized enterprises that operate in Greece. The amount of the Fund is co-financed by the European Union (European Regional Development Fund (ERDF) and national funds, via the regional operational programs (ROP) and the operational program "Competitiveness and entrepreneurship" (E.P.A.E.) of NSRF With No. 7954/1500/Β2/ (Government Gazette B '4370/ ), the implementation of the actions of TEPIX were extended until The final budget balance on 31/12/2016 amounted to 372 million euros. The total number of disbursements as on 31/12/2016 was 7,587 whereas the total amount of approvals amounted to EUR 750,45 million in loans and to 68,6 million loan guarantees, with the corresponding support from the Fund amounting to 330,32 million Euro and 31,17 million euros respectively. Via ENTREPRENEURSHIP FUND (TEPIX) during 2016 the following Funds operated: Entrepreneurship Fund (Entrepreneurship Fund -Business Restart) The Entrepreneurship Fund (TEPIX)-Business Restart works as separate financial unit with funds from co-investment of the FUND FOR ENTREPRENEURSHIP and 14 collaborating banks aimed at providing business development loans, special-purpose capital and/or loans that finance investment projects on favorable terms to eligible businesses. Until 31/12/2016, 4,602 loans of a total budget of million were approved, of which the Fund's contribution amounted to million. Entrepreneurship Fund (TEPIX)-Sponsorship Sponsorship Fund is intended to provide guarantees for micro, small and medium-sized enterprises in business development loans (special purpose vehicle) and/or loans that finance investment projects or ripe loans to implement investment projects. The Fund relates to providing guarantees up to 80% for investment and capital movements, including advances for obtaining grants from other Community programs. Until the end of 2016, 1,229 applications for loans worth EUR 128,8 million were approved. Entrepreneurship Island & Tourism Entrepreneurship Fund (TANE). It is a Lending Fund of initial budget of 80 millioneuros, in which the principle of co-financing is applied directly to the private sector of the economy. This is an action to provide small-scale loans (up to 30,000 Euros) and highly favorable cost (2.8% and zero interest rate for business and investment in the Islands with a population of more and less of 3,100 residents respectively),

12 which has a geographical and sectoral targeting simultaneously (Islands and tourism). It is aimed at small and micro-enterprises, which constitute the basis of the productive fabric of the Islands. It is about investments or capital movement under purely tourist but also related with tourism business and up to 70% of the net value of the eligible costs. The Fund also included requests from businesses from the Prefecture of Kefalonia who rushed to repair the damages from the earthquake of January 2014, in order to meet the requirements of the summer season. For those requests in a short period of time an individual frame was created within the Fund (Measure), which worked with the collaboration of two banks with extensive presence on the island. The Measure was the predominant action of the State for assistance for the relief operations. By the end of 2016, 1,536 applications for loans totaling Euro 33,6 million were approved by the Fund. VII. Establishment of new Portfolio Funds: Home Subsidy Fund II (ΤΕXΟΙΚ ΙΙ) With the Ref. No 7313/1818 (Government Gazette 3905/Β/ ) Joint Ministerial Decision, a Fund with the name "Home Subsidy Fund II" was established as a separate financial unit within the framework of the National Entrepreneurship & Development Fund (ETEAN SA). The Fund will manage NSRF resources totaling 68,000,000. The Greek State will pay through the Public Investment Program funds for the financing of the "Saving Fund II" and the "Direct Payment Program", amounting to a total of two hundred and ninety-two million and two hundred thousand euros ( million). The purpose of the Fund's recommendation is described as the support of interventions aimed at energy efficiency and upgrading of housing, the use of renewable energy sources, smart energy management, etc. in order to reduce the consumption of primary energy. The co-operating Financial Institutions will use equity together with the funds of the "Home subsidy Fund II" to create a Loan Fund to finance a portfolio of new loans to be granted on a favorable basis to natural persons / households to be included in the program "Home savings II". Entrepreneurship Fund (ΤΕPΙΧ) II With the Ref. No 7314/1819 (Government Gazette 3904/Β/ ) Ministerial Decision a Portfolio Fund was established under the name of Entrepreneurship Fund II as an independent

13 financial unit within the framework of the National Entrepreneurship & Development Fund (ETEAN SA).With the Financing Agreement between the Greek State and ETEAN SA, the Greek State pays through the Public Investment Program to ETEAN SA funds for the financing of the "Entrepreneurship Fund II", totaling 400,000,000, as defined in Articles 38, (2) and (6) of Regulation (EC) No. 1303/2013.The objective of the Fund will be to create financial instruments to facilitate the access of Greek businesses to finance, the creation and/or development of viable enterprises in innovative, dynamic and promising sectors and activities of the economy, facilitating the lifting of Credit crunch conditions, unfavorable borrowing conditions and closing the financial market gaps. The aforementioned objectives of the Entrepreneurship Fund II will be implemented in the first instance by the creation of financial instruments that have been used again in the Greek market with positive results such as risk-sharing loans and guarantees, i.e. by investing in Loan Funds, Guarantee Funds. Dear shareholders, In this management context and in terms of the company's key financial figures, it is worth highlighting the following: The results of the company in 2016 show a positive image, with earnings after taxes being set at 0.06 million euros. The operating costs of the company have been kept at even lower levels than those of the previous year. Personnel fees and expenses totaled 1.73 million Euros compared to 1.98 million Euros in the previous year, while the compensations and remunerations of the Board and other operating expenses amounted to a total of 0.58 million Euros against 0,75 million Euros last year. Overall, the company's operating expenses were down to 2.31 million euros against 2.75 million and 3.39 million in the previous two years. Total commission income was limited to 0.78 million, which is related to the cyclical orientation of the company's activities in lending through the NSRF. Regarding the financial position of the company, following the very significant liquidation of overdue liabilities, which we have already mentioned, the liabilities to credit institutions are now set at 31.6 million versus 242 million in During the year 2016, a share capital reduction of 238,559,000 was effected and all the transferred losses of 165,800, (mainly due to non-

14 operating expenses such as guaranteed loan repayments) were offset and the remaining uncollected amount 72,758, from the reduction of the share capital was transferred to the special reserve for future loss offsetting. It is noteworthy that this year, when these completely remedial actions on the company's financial data took place, its liquidity and capital adequacy were not only negatively affected but they were even more improved. And in 2016, both the liquidity and the capital adequacy of the Fund were maintained at very high levels exceeding the minimum due limits of the Act of the Governor of the Bank of Greece GA/BoG No 2540/2004. In particular the liquidity ratio on 31/12/2016 amounted to 936% while capital adequacy rate amounted to 1,063. 3%, against the respective limits of the BoG 20% and 10% respectively.

15 STATEMENT of COMPREHENSIVE INCOME January 1 St,2016- December 31 St, January January 2015 Notes 31 December December 2015 Ongoing Ongoing Activities Activities Net income from fees/commissions , ,049, Other income 22 12,508, ,975, Revenue from operating activities 13,287, ,024, Results from financial operations 27 17,258, ,265, Personnel wages and expenses 26 (1,736,846.54) (1,989,318.30) Compensation of the Board members 23 (21,600.00) (17,280.00) Other costs 24 (558, ) (741,868.40) Operating expenses (2,316,490.93) (2,748,466.70) Results before interest, depreciation, provisions, 28,229, ( ,70) 31,541, Provisions (23,320.00) (1,664,131.05) Forfeitures of guarantees 25 (28,003,628.61) (66,735,291.69) Depreciations 8 (166,571.25) (181,766.01) Non-operating expenses (28,193,519.86) (68,581,188.75) Total expenses (30,510,010.79) (71,329,655.45) Losses / profits before taxes 35, (37,039,378.90) Minus taxes 16 (26,052.37) (29,869.30) Losses - Profit after taxes(a) 61, (37,009,509.60) Other comprehensive income after taxes (B) 0,00 0,00 Total comprehensive income after taxes (A+B) 61, (37,009,509.60)

16 DECEMBER 31, 2016 STATEMENT OF FINANCIAL POSITION of 31 st December 2016 ASSET Notes 31 December December 2015 Cash and balances in the Central Bank 7 460,961, ,793, Receivables from credit institutions Receivables from supplies of benefit guarantees and counterguarantees , , , ,019, Held to maturity investments ,053, ,453, Intangible fixed assets and intangible assets 8 346, , Deferred tax asset 16 95, , Other assets 10 17,648, ,156, TOTAL ASSETS 1,083,117, ,303,230, EQUITY AND LIABILITIES Liabilities due to credit institutions 19 31,586, ,063, Obligations for benefits to personnel due to termination of service , , Provisions 17 19,102, ,418, Other liabilities , , Total liabilities 51,455, ,630, Share Capital ,479, ,181,038, Reserves 14 89,120, ,361, Results 61, (165,800,321.49) Total Equity 1,031,661, ,031,599, TOTAL LIABILITIES AND EQUITY 1,083,117, ,303,230,395.97

17 ETEAN SA 31ST DECEMBER 2016 STATEMENT of CHANGES in EQUITY of December 31 st, 2016 Share capital Regular reserve Extraordinary reserve Special Reserve Other equity assets Total Equity January 1, ,181,038,700 1,227, ,134, ,00 (128,790,811.89) 1,068,609, Decrease in share capital Increase in share capital Total comprehensive income after tax (37,009,509.60) (37,009,509.60) December 31, ,181,038,700 1,227, ,134, ,00 (165,800,321.49) 1,031,599, Decrease in share capital (238,559,000.00) 72,758, ,800, ,00 Increase in share capital Total comprehensive income after tax 61, , December 31, ,479, ,227, ,134, ,758, , ,031,661,794.19

18 DECEMBER 31, 2016 STATEMENT of CASH FLOWS FOR THE YEAR January 1, 2016-December 31, 2016 Cash flows from ordinary (operational) activities-continuing operations Cash inflows Note Interest and Comission (Income) 1,208, , Other income 2,854, , Collection of receivables 644,525,35 551, It is removed: Increase in Revenue Receivables (900,692.31) (424,867.09) It is added: Increase in revenue of next Fiscal years 4, , It is removed: Reduce Revenue of next Fiscal year (311,687.82) (443,924.64) It is added: Reduction of costs Other assets 2,664, ,728, It is removed: Increase of costs Other assets (2,750,389.40) (853,397.63) Total Cash Inflows (1) 3,413, ,054, Cash outflows Interests and commissions (expenses) 1, , General administrative expenses (including forfeitures 28,003,628.61) 30,317, ,436, Other expenses 1, , It is added: Decrease in costs Other Liabilities accounts 240,758, ,480, It is removed: Increase in costs Other liabilities (30,359,474.28) (70,125,409.63) Taxes 157, , Total cash outflows (2) 240,875, ,031, Cash flows from ordinary (operating) activities Continued activities (1-2) = A (237,462,614.96) 22, Cash flows from investing activities-continuing operations Cash inflows Sale of securities, participations and titles 238,400, ,00 Other income 18,179, ,039, Total Cash inflows (3) 256,579, ,039, Cash outflows Purchase of securities, participations and titles 0,00 99,300, Purchase of intangible and tangible fixed assets 68, , Total cash outflows (4) 68, ,368, Cash flows from investing activities - ongoing activities (3-4) =B 256,511, (91,329,222.50) Cash flows from financing activities-continuing operations Cash inflows Receipt of share capital increase 0,00 0,00 Total cash inflows (5) 0,00 0,00 Cash outflows Return of share capital 0,00 0,00 Total cash outflows (6) 0,00 0,00 Cash flows from financing activities-continuing operations (5-6) = C 0,00 0,00 CASH FLOWS ETEAN (A+/-B+/-C) 19,048, ,307,178.93) Plus: Year start cash ,096, ,404, Year-end cash ,145, ,096,898.82

19 1. INFORMATION ABOUT THE COMPANY The companyhellenic FUND FOR ENTREPRENEURSHIP AND DEVELOPMENT (with the distinctive title "ETEAN S.A." was established by L. 3912/2011 (Government Gazette Α/17/ ) as in force. The company is located at 24 Xenia st. Athens Its site is The company started operating on 21/02/2011 and the current year of 01/01/16-31/12/16 is the sixth administrative year (GCR No and TIN ) The composition of the Board of Directors is as follows: Konstantinos Galiatsos Chairman of the Board & Executive Member CEO Paraskevas Liatsos Vice President Executive Member Evangelos Pilalis Board member Non Executive Member Paul Dermenakis Board member Non Executive Member Evangelia Aranitou Board member Non-executive independent Member Nicholaos Andonakis Karpouzis Board Member Non Executive Member Tryphon Kostopoulos Board member Non-executive independent Member The company's objective is: a) the promotion of entrepreneurship and, in particular, the increasing access to financing for the establishment of new, innovative and dynamic businesses that contribute to sustainable and environmentally friendly development. b) the facilitation and improvement of access of Enterprises and the three sectors of economy, primary, secondary and tertiary and mainly the Very Small, Small and Intermediate Enterprises, according to the definition of these in the Constitution of EU. 2003/361/EK, as is in effect each time, in the financing for the promotion of their competitiveness, their growth, their technological and organizationalmodernization and for the import of innovations in the organization and their operation. c) the promotion of social economy and entrepreneurship and more specifically the access in the financing of enterprises or other organizations that are active in the sector of social economy, as well as the access in the financing for the promotion of entrepreneurship and employment, in the context of economic and social cohesion. d) co-investment promotion or participation in investment funds, on financial engineering instruments or investment schemes, including shapes and concessions or public-private partnerships To achieve its purpose, the company may receive a grant, defined for this purpose as a direct

20 financial contribution by way of donation, from the competent public authorities or the managing authority of the operational program as appropriate or other action co-financed by the European Union or from any other source of funding to establish and manage: a) Funds of Portfolio, as forecasted in the article 44 of the Regulation (EC) No 1083/2006, as they are in effect each time, and in the article 36 of the Regulation (EC) No 498/2007, as they are in effect each time. b) financial techniques instruments, including venture capital funds, guarantee funds, loan Funds, as provided for in articles 44 of Regulation (EC) 1083/2006, 71 paragraph 5 of Regulation (EC) No. 1698/2005 and 50, 51, 52, 53, 54 of Regulation (EC) No. 1974/2006, 55 paragraph 8 of Regulation 1198/2006 and 34, 35, 36 and 37 of Regulation (EC) No. 498/2007, as they are in effect each time. In the funding agreements between the Government and the company, as well as the joint ministerial decisions on the establishment of the above Funds, the conditions, processes and all necessary detail implementation and management are defined. Also, the company may, upon a decision of the Ministers of finance and Economy, Competitiveness and Shipping, manage and implement programs financed from the regular budget or public investment Program, community and transnational projects, NSRF programs or other similar programs and programs of international multilateral organizations, including interest rate subsidy programs, supply subsidy and interest-free loans. By the same decision the conditions, procedure and any necessary implementation detail of the above programs and enabling of the financial instruments are determined. These objectives are realized: a) With the provision of guarantees or counter-guarantees in favor of micro, small and mediumsized enterprises, to cover their obligations vis-à-vis credit institutions or financial institutions or Venture companies arising from all forms of financial facilities, such as loans, discounting business requirements, lease, hybrid financing. b) With the co-investment of the amounts that manages the company in accordance with paragraphs 2 and 3 of this article, through financial techniques, such as loan businesses, which operate as separate legal entities either as standalone sections of existing financial institutions or financial institutions, guarantee funds, venture capital funds, seed funds, funds to support new and innovative businesses. This co-investment can be carried out with the establishment of subsidiary companies. c) With the co-investment of the amounts that manages the company in accordance with paragraphs 2 and 3 of this article, to investment funds, concession or Ventures of Public-Private Sector (SDIT) formats or other appropriate partnerships that invest in sustainable and environmentally-friendly urban development or other areas, either to save energy or to promote activities that take advantage of new and renewable sources of energy. This co-investment can be carried out with the establishment of subsidiary companies. d) By providing relevant to these service activities other than direct provision of credit.

21 e) With specialized studies, market research and business plans. f) With a procurement bond loan issued by special purpose legal entities established and domiciled in Luxembourg, as the "IFG-Greek SME Finance S.A.» (registration number B ) or in another Member State of the European Union and shall be governed by the relevant legislation, using resource use resulting from the national arm of the public investments program up to the amount specified and by the corresponding increase in share capital of the company and notwithstanding any contrary provisions of this law or of the rules of procedure provided for in the fourth article of this Act. The conclusion of the above debt securities from the Company is permitted solely for the purpose of attaining the objectives of article 3 of the law. 4224/2013 (A' 288) and in particular the channeling of resources on Greek micro, small and medium-sized enterprises (SMES). By a joint decision of the Ministers of Finance and Development and Competitiveness the way, the more specific terms and conditions, as well as any other necessary detail for the conclusion of new bond loans are set out. Activities and Programs administered by ETEAN SA ETEAN S.A. currently manages the following programs: A)With a decision of the Deputy Minister of Economy and Development, No 7314/1819/ (Government Gazette B/3904/ ), a Portfolio Fund under the name "Entrepreneurship Fund II (ΤΕPΙΧΙΙ)" was established as an independent financial unit within the framework of the National Entrepreneurship and Development Fund(ETEAN SA). The ETEAN. SA Shall act as a Portfolio Fund Implementing Agent in accordance with Article 38 (4) (b) (ii) of Reg. 1303/2013 and, in particular, as executive director of a Portfolio Fund. The purpose of setting up the Fund is to improve the competitiveness of businesses by improving their access to finance. The duration of the program is until 31/12/2023. For the establishment of the Fund, a financial contribution of resources of four hundred million (400,000,000.00) euros is foreseen from the Public Investment Program to ETEAN SA. The Fund's resources are co-financed by the European Regional Development Fund (ERDF) and the Greek State, and come from the contribution from the Operational Program Competitiveness, Entrepreneurship and Innovation (OPANEK). The above amount is credited to an interest-bearing bank trust account which has been opened for this purpose at the Bank of Greece. From the above total Public Expenditure of the Program, 100 million has been paid to ETEAN SA. This amount, which is deposited at the Bank of Greece and relates to the current program, totaling 100 million (including credit interest) is not reflected in the statement of financial position and cash flow statement Β) With No. 7313/1818/ (GG B / 3905 / ) JMD of the Ministers of Economy and Development and Environment and Energy a Financial Fund under the name of "Savings Fund II

22 (ΤΕΧΟΙΚΙΙ) as an independent financial unit within the framework of the National Entrepreneurship and Development Fund (ETEAN SA) has been established. The purpose of establishing the Portfolio Fund is to support interventions aimed at energy efficiency and upgrading of housing, the use of renewable energy sources, smart energy management, etc. so as to reduce the consumption of primary energy. The duration of the program is until 31/12/2023. ETEAN. SA will undertake implementation duties of the Portfolio Fund in accordance with the Article 38 (4), and in particular executive duties of the Portfolio Fund. A total of sixty-eight million (68,000,000.00) euros will be made available from the Public Investment Program to ETEAN SA as a financial contribution. The Fund's resources are co-financed by the European Regional Development Fund (ERDF) and the Greek State, and come from the contribution from the Operational Program Competitiveness, Entrepreneurship and Innovation (OPANEK). The above amount is credited in part to an interestbearing bank trust account which has been opened for this purpose at the Bank of Greece. From the above total Public Expenditure of the Program, 17.0 million have been paid to ETEAN SA.This amount, which is deposited with the Bank of Greece and is related to the current program, totaling 17.0 million (including interest expense) is not reflected in the statement of financial position and cash flow statement. C) With No /ΕΥΘΥ 1415/ (31654/ΕΥTHΥ 1415/ ) (GG B/1262/ ) JMD of the Ministers of Finance and Economy, Competitiveness & Shipping and Environment, Energy and Climate Change, a Portfolio Fund (Capital) "Home Subsidy Fund" was established as a separate financial unit within ETEAN SA, for the achievement of the objectives of the Operational Programs in Greece, regarding the completion of the country's energy system and the enhancement of sustainability, and in particular for energy saving. ETEAN SA exercises the functions of a Beneficiary within the meaning of Article 2 of Regulation (EC) 1083/2006 and is obliged to comply with the obligations deriving from the rules of the applied Management and Control System. The total Public Expenditure of the Program, after the modification of the above Joint Ministerial Decision, amounted to million and during the year 2015 the entire amount had been paid into accounts opened for this purpose with the Bank of Greece. According to the provisions of JMD 6988/2777 / (GG B 2845/15) from the aforementioned funds of the Fund, a total amount of million was reimbursed to the Public Investment Program on 12/2015. Also, in the context of the closure of the Action Savings Resident Emergency Aid & Energy Inspectorates, unallocated balances of total amount of 4.0 million were released and given on The eligibility of program expenditure expired on 31/12/2015, with the exception of subsidized interest that was eligible until 30/11/2016 (GG B 2955 / ).

23 Finally, with the 13/02-01/171112/91/ Joint Ministerial Decision on the amendment of the Home Subsidy Fund (TEXOIK), the closing date for the disbursement of the loans is set on With the Joint Ministerial Decision of the Ministers of Economy & Development and Environment and Energy no. 13/02-06/179743/1056/ (GG B '2023/2016) the JMDon Recommendation of the Portfolio Fund was amended, as follows: A) the management costs of the MIF shall be taken into account in the overall management costs of the Fund, which may not exceed 3% of its funds on an annual basis. B) the resources of the Fund to be repaid and the interest accrued from the Bank's capital account interest will be invested once again for the energy efficiency of existing homes. As a result, 40 million for the Direct Payment Scheme and 26 million for the Fund's initial capital may be used from the return resources to finance an "interim program" of Home Subsidy Fund for the needs of which the proclamation of the program was amended by No. 13 / / /1180 / (GG B '2274/2016). According to the amendment, 15 December 2016 was set as the closing date for the disbursement of the loans. Additionally, the interest subsidy was eligible for the entire duration of the loan and the relevant amount, after 30/11/2016, is transferred from the Savings Fund to a reserved escrow account held in the name of ETEAN SA. In addition, for applications under the program after 1/1/2016, the deadline for payment of the grant from the direct aid program for national resources is on 30/6/2017. Then, with No /1023 / JMD on the amendment of the Home Subsidy Fund, the closing date for the disbursement of the loans is 31 December 2016 and the total cost of the Program amounts to EUR 427,3 million of which EUR 101 million relates to reimbursable payments (loans) and EUR million to grants (grants and inspection costs). The direct aid budget (326.3 million) includes resources of 19.1 million from greenhouse gas emission allowances allocated to the program, as defined in JMD 47692/ (B 3245/2016). For the Savings Fund, the Expenditures are million, for the Direct Enhancement to million until 01/17 and for the Direct Strengthening of the Interim Program to 35.4 million to 04/17. It is stated that for the effective implementation of the action, a total amount of 1.8 million was paid to ETEAN SA for the period /2016. Amounts deposited at the Bank of Greece and affiliated banks and related to this program, with a total amount of 100,718, (including credit interest), are not reflected in the statement of

24 financial position and cash flow statement. D) With No /1245 / (GG B / 1697 / ) JMD of the Ministers of Finance and Economy, Competitiveness & Shipping, a Portfolio Fund (Capital) under the corporate name "ENTREPRENEURSHIP FUND" was established as a separate finance unit within ETEAN SA for the realization of the objectives of the Operational Programs, regarding the improvement of the competitiveness of the Greek enterprises according to the provisions of article 24 of Law 3614/2007. ETEAN SA exercises the functions of Beneficiary, within the meaning of Article 2 of Regulation (EC) 1083/2006 and is obliged to comply with the obligations arising from the rules of the applicable Management and Control System (SBS). The total Public Expense of the Program amounted to 540 million and was paid in full in accounts opened for this purpose with the Bank of Greece. According to the provisions of JMD 6988/2777 / (GG B 2845/15), the total amount of 168,0 million was reimbursed from the above resources of the Fund on 12/2015 in the Public Investment Program. Moreover, according to the letter 1447/358/B of the Hellenic Transmission System Operational Program (EPANEK), an additional amount of 36,17million was reimbursed to the Public Investment Program on 03/2017. Finally, with letter No. 6764/1307 / Β of the Hellenic Transmission System Operational Program (EPANEK), provided an opportunity to use the proceeds from the Bank of Greece for the payment of requested disbursements of the Program for up to 45.0 million. In accordance with the provisions of JMD 6958/1340 / B2 / (GG B 2845 / ), the implementation of the program was extended until 30 September However, with Ministerial Decision No. 7153/1310 / B2 / , the final date for the completion of the Entrepreneurship Fund Actions was 31 January As a result, until 01/17 total disbursements amounted to million. It is stated that for the effective implementation of the action, a total amount of 2, 65 million was paid to ETEAN SA for the period Amounts deposited at the Bank of Greece and affiliated banks related to this program, totaling 248,345, (including credit interest), are not reflected in the statement of financial position and cash flow statement. E) With No. 1214/ JMD of the Ministers of finance and economy, competitiveness and Shipping & Rural development and Food, the establishment of "RURAL FUND FOR ENTREPRENEURSHIP" took place, for the implementation of the objectives of the rural

25 development program ( ), while the relevant financing agreement between ETEAN SA and the Ministry of rural development was signed on 15/02/2013. The total Public Expense of Program had been budgeted to million. From the above total Public Expense of the Program it was deposited in accounts that have been opened for this reason in the Bank of Greece, an amount of 115,000,000 Based on No 4068/ Call of the "Ministry of Production Reconstruction" Special Management Service RCE, was returned on 10/2015 as unallocated balance the amount of million. The duration of implementation of the program ended on 31/12/2015. At the 13th meeting of the Investment Committee, which took place on on "the definition of the investment strategy and the planning of the actions of the TAE", it was decided to allow for the disbursement of the loans and by the end of 31/12/2015 for the contracted and established costs of the TAE programs (issue of legal documents) until Briefly: Requests approvals: 300 Conventions: 177 Disbursements ( ): 144 with participation of TAE of 4.05 million. The amounts deposited in the Bank of Greece and affiliated banks and associated with this program, totalingat 3,024, (credit interest also included) are not depicted in the statement of the financial condition and in the statement of the cash flows. F) According to No 1871/ (GG B/1741/ ) JMD of the Ministers of Finance and Economy, Competitiveness and Shipping & Rural Development and Food, a Portfolio Fund (capital) under the name "ENALIO FUND" has been set up as a separate accounting financial module through ETEAN SA for the achievement of the objectives of the operational program for fisheries The total Public Expense of the Program amounts to 35 millioneuros and until 31/12/15 the entire amount had been paid, to accounts that have been opened for this purpose in the Bank of Greece. Based on No. 1098/ letter of the ESA "Fisheries and the Sea" is returned as an unallocated balance on 09/2016, the amount of 39,10 million. ETEANS.A acts as Beneficiary, within the meaning of Regulation (EC) No 1198/2006 and is committed to comply with the obligations arising from the rules of the applicable management and control system. The amounts deposited in the Bank of Greece and related to this program, totalingat ,52 (including interest income) are not reflected in the statement of financial position and the statement of cash flows. This particular program was not activated.