SARANTIS GROUP ANNUAL PRESENTATION TO ANALYSTS

During its annual corporate presentation, Sarantis Group presented the FY 2013 financial results as well as the management’s strategy and estimates for 2014.

According to Mr. Rozakeas, Sarantis Group FY 2013 financial results signify another year of operational excellence and sound strategic choices.

Sarantis Group ended the fiscal year of 2013 delivering an EPS growth of 28%, exceeding the estimates across all profitability lines.

EBITDA settled at € 23.07 mil. up by 8.97%, EBIT rose by 11.64% to € 19.38 mil. and Net Profit presented a significant growth of 27.75% to €15.53 mil. from €12.15 mil. last year.

The main elements of Sarantis Group performance are a considerable improvement in the Group’s Gross Profit margin that rose to 49.35% from 47.51% during last year largely due to better sourcing, lower production cost as well as more favorable commodities prices, cost control and operational leverage and a robust financial position which enables the Group to self-finance its activities and investments, supporting at the same time the total turnover.

Particular reference was made to the Group’s turnover, that settled at €236.59 mil., up by 0.25% compared to the previous year, supported by a relatively strong fourth quarter across both regions of Greece and the Foreign Countries. During the year the foreign markets, that represent the 64% of the Group’s turnover, increased by 2.17% thus providing support to total turnover and compensating for the sales drop of 3% from the Greek operations, which is however much less than the 9% drop of the Greek retail market.

Sarantis Group resilience in sales is largely attributed to our strong and diverse brand portfolio that is balanced by geography and product category.

Continuous initiatives behind the enrichment of our brand portfolio through product relaunches, new product lines, new exclusive representation agreements, together with strategic plans towards further geographical expansion, strengthen the Group’s presence within a highly competitive and dynamic business environment.

On the balance sheet front, exhibiting its strong financial position Sarantis Group continued to generate free cashflows. Despite the challenging economic and business environment, the Group further deleveraged its balance sheet, reducing its total bank debt by €35 mil. euros during 2013 since the end of 2012, while net cash position increased further by the end of the 2013 to €22 mil.

Devoted to creating additional value to its shareholders, following the cancellation of its treasury stock at the end of 2012 and on the back of this year’s remarkable financial results the Group proceeded in January of 2014 to an interim dividend payment for FY 2013 of 0.30 eur per share.

Sarantis Group healthy financial position allows for investing behind the strategic pillars that support the Group’s growth and profitable outlook.

The focus is behind the Group’s core business categories of mass market cosmetics and household products through the continuous renewal and enrichment of the Group’s brand portfolio, increasing its market shares, improving productivity and production cost, examining acquisitions of profitable and well established companies or brands suitable to the Group’s portfolio, and finally capitalizing on the human resources capabilities.

Operational excellence is achieved through a continuing effort to optimise the Group’s figures in a highly competitive and dynamic international business environment, with a view to ongoing growth and improved financial performance.

The Management’s guidance with regards to the Group’s 2014 financial performance is shown in the following table:

Click on the table to see in large

NOTES:      
* 2007 Financial Results as shown in this table do not include the capital gains from the sale of the company’s participation in K.P. MARINOPOULOS S.A.

**2010 Financial Results as shown in this table do not include the capital losses from sale of the of the company’s participation in K. Theodorides S.A.

***In 2013 capital losses from sale of Folli Follie Group (FFG) stock not included.

The Group’s presentation can be found in the Company’s website:  http://ir.sarantis.gr/en-us/presentations/sarantis-presentation.