G.

NOTES TO THE ANNUAL SEPARATE AND CONSOLIDATED FINANCIAL

STATEMENTS

AS AT 31 DECEMBER 2023

1.

Information

The Group’s Consolidated Financial Statements have been prepared in accordance with the International

Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

JUMBO is a trading company, established according to the Greek Legislation. Reference made to the

“COMPANY” or “JUMBO S.A.” indicates, unless otherwise stated in the text, the Group “JUMBO” and

its fully consolidated subsidiary companies.

The Company’s distinctive title is “JUMBO” and it has been registered in its articles of incorporation as

well as at the department for trademarks of the Ministry of Development as a brand name for JUMBO

products and services under number 127218, with protection period upon extension until 5/6/2025. The

Company was incorporated in 1986 (Government Gazette 3234/26.11.1986) and its term was set as that of

thirty (30) years. According to the decision of the Extraordinary General Meeting of the shareholders

dated 3/5/2006, approved by the decision of the Ministry of Development N. K2-6817/9.5.2006, the term

of the company was extended to seventy years (70) from the date of its registration in the Registry of

Societes Anonymes.

Initially, the Company’s registered office was located in the Municipality of Glyfada, at. 11 Angelou

Metaxa street. According to the same aforementioned decision as of 03.05.2006

of the Extraordinary

General Meeting of shareholders, approved by the decision of the Ministry of Development N. K2-

6817/9.5.2006, the registered office of the company was transferred to the Municipality of Moschato,

Attica region, and, specifically, to 9 Cyprou street and Hydras, PC

183 46, where its headquarters are

located.

The Company is registered in the Registry of Societes Anonymes of the Ministry of Development,

Department of Societes Anonymes and Credit, under No 7650/06/

Β

/86/04, while the Company’s

registration number at the General Electronic Commercial Registry (G.E.MI.) is 121653960000.

The Company operates in compliance with the provisions of Law 4548/2018.

The Financial Statements for the period ended 31 December 2023 (01.01.2023-31.12.2023) were approved

by the Board of Directors on 16

th

April, 2024 and are subject to the approval of the Annual General

Meeting.

2.

Company’s Activity

The Company’s main operation

is

retail sale of toys, baby items, seasonal items, decoration items, books

and stationery and is classified based on the STAKOD 03 bulletin of the National Statistics Service in

Greece (E.S.Y.E.) within the

sector “other retail trade of new items in specialized shops” (STAKOD

category 525.9).

A small part of its operations concerns wholesale of toys and similar items to third

parties.

The Company has been listed on the Athens Exchange since 19.7.1997, and since June 2010 participates in

FTSE/Athex 20 index. Based on the provisions of the Athens Exchange Regulation, the Company’s shares

are included in the “Main Market” category. Additionally, applying the decision made on 24.11.2005 by

its Board of Directors, regarding the adoption of a model of FTSE Dow Jones Industry Classification

Benchmark (ICB), as of 02.01.2006, the Athens Exchange classified the Company under the sector of

financial activity Toys, which includes only the company “JUMBO”. Following the regular review of the

composition of the FTSE Russell | Industry Classification Benchmark (ICB) the company "JUMBO

COMMERCIAL COMPANY" was reclassified on 18.09.2023 from the "40203035 - Toys " to the "40401010 -

Diversified Retailers".

Within 38 years of its operation, the Company has become one of the largest retail companies.

At 31.12.2023 the Group operated 85 stores in Greece, Cyprus, Bulgaria and Romania and the on line

store e-jumbo in Greece , Cyprus and Romania.

Furthermore, through partnerships, as at 31.12.2023, the Company had presence in other countries

through stores that operate under the Jumbo brand, in North Macedonia - six stores, Albania - eight

stores, Kosovo- seven stores, Serbia

- six stores, Bosnia - six stores, Montenegro – two stores and Israel-

one store.

On 31

st

December, 2023, the Group employed 7.226 persons, of whom 5.792 as permanent staff and 1.434

as seasonal staff. The average number of employees for the closing period, 01.01.2023 – 31.12.2023, was

6.568 persons (5.831 as permanent and 737 as seasonal staff).

3.

Framework for the Preparation of Financial Statements

The accompanying financial statements of the Group and the Company (henceforth Financial Statements)

dated as at

December 31, 2023, covering the fiscal year from January 1st 2023 to December 31st 2023 have

been prepared according to the historical cost convention, under the going concern principle and

comply

with International Financial Reporting Standards (IFRS) as issued by the International Accounting

Standards Board (IASB), as well as their interpretations issued by the Standards Interpretation

Committee (I.F.R.I.C.) of IASB, as adopted by the European Union.

Preparation of financial statements according to International Financial Reporting Standards (IFRS)

demands the use of accounting estimates and management judgements for the application of accounting

policies of the Group. Significant assumptions regarding the application of the accounting policies of the

Company are disclosed, where it is deemed appropriate. The estimates and judgements made by the

Management are constantly evaluated and are based on empirical facts and other factors, including

provisions made for future events, which are considered predictable under normal circumstances.

The accounting principles adopted for the preparation of these financial statements are the same as those

applied for the preparation of the financial statements of the financial year 01.01.2022-31.12.2022 with the

exception of the new or revised accounting standards and interpretations mentioned in note 3.1. to the

Financial Statements and applicable to the Group.

3.1 Changes in Material Accounting Policies

3.1.1.

New Standards, Interpretations, Revisions and Amendments to existing Standards

that are effective and have been adopted by the European Union.

The following new Standards, Interpretations and amendments of IFRSs have been issued by the

International Accounting Standards Board (IASB), are adopted by the European Union, and their

application is mandatory from or after 01.01.2023.

IFRS 17 “Insurance Contracts” (effective for annual periods starting on or after 01/01/2023)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The

aim of the project was to provide a single principle-based standard to account for all types of insurance

contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would

enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17

sets out the requirements that an entity should apply in reporting information about insurance contracts

it issues and reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments,

which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The

amendments are designed to reduce costs by simplifying some requirements in the Standard, make

financial performance easier to explain, as well as ease transition by deferring the effective date of the

Standard to 2023 and by providing additional relief to reduce the effort required when applying the

Standard for the first time.

The amendments do not affect the consolidated Financial Statements of the

Group. The above have been adopted by the European Union with effective date of 01/01/2023.

Amendments to IAS 1 “Presentation of Financial Statements” (effective for annual periods starting on

or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy

disclosures. The objective of these amendments is to improve accounting policy disclosures so that they

provide more useful information to investors and other primary users of the financial statements. More

specifically, companies are required to disclose their material accounting policy information rather than

their significant accounting policies.

The Group has evaluated and amended the disclosure of accounting

policies in accordance with the guidance provided in IAS 1. The above have been adopted by the

European Union with effective date of 01/01/2023.

Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition

of Accounting Estimates”

(effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should

distinguish changes in accounting policies from changes in accounting estimates. That distinction is

important because changes in accounting estimates are applied prospectively only to future transactions

and other future events, but changes in accounting policies are generally also applied retrospectively to

past transactions and other past events. The amendments do not affect the consolidated Financial

Statements of the Group. The above have been adopted by the European Union with effective date of

01/01/2023.

Amendments to IAS 12 “Income Taxes: Deferred Tax related to Assets and Liabilities arising from a

Single Transaction” (effective for annual periods starting on or after 01/01/2023)

In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account

for deferred tax on transactions such as leases and decommissioning obligations – transactions for which

companies recognise both an asset and a liability. In specified circumstances, companies are exempt from

recognising deferred tax when they recognise assets or liabilities for the first time. The amendments

clarify that the exemption does not apply and that companies are required to recognise deferred tax on

such transactions. The amendments do not affect the consolidated Financial Statements of the Group and

are not expected to have a significant effect on future transitions of such kind should they arise. The

above have been adopted by the European Union with effective date of 01/01/2023.

Amendments to IFRS 17 “Insurance contracts: Initial Application of IFRS 17 and IFRS 9 –

Comparative Information” (effective for annual periods starting on or after 01/01/2023)

In December 2021, the IASB issued a narrow-scope amendment to the transition requirements in IFRS 17

to address an important issue related to temporary accounting mismatches between insurance contract

liabilities and financial assets in the comparative information presented when applying IFRS

17 “Insurance Contracts” and IFRS 9 “Financial Instruments” for the first time.

The amendment aims to

improve the usefulness of comparative information for the users of the financial statements. The

amendments do not affect the consolidated Financial Statements of the Group. The above have been

adopted by the European Union with effective date of 01/01/2023.

Amendments to IAS 12 “Income taxes”: International Tax Reform – Pillar Two Model Rules (effective

immediately and for annual periods starting on or after 01/01/2023)

In May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS

12 “Income Taxes”: International Tax Reform—Pillar Two Model Rules. The amendments introduced a) a

temporary exception to the requirements to recognise and disclose information about deferred tax assets

and liabilities related to Pillar Two income taxes and b) targeted disclosure requirements for affected

entities. Companies may apply the temperorary exception immediately, but disclosure requirements are

required for annual periods commencing on or after 1 January 2023.

The Pillar II rules related legislation

has been enacted or substantially enacted in certain jurisdictions where the Group operates. The

legislation will become effective for the Group's fiscal year beginning January 1, 2024. As the Pillar II

legislation was not in effect at the reporting date, the Group applies the exemption to the recognition and

disclosure of information about deferred tax assets and liabilities related to Pillar II income taxes as

provided in the amendments to IAS 12 issued in May 2023 and is in the process of assessing the impact

for the Group for subsequent reporting periods.

3.1.2.

New Standards, Interpretations, Revisions and Amendments to existing Standards

that have not been applied yet or have not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the

International Accounting Standards Board (IASB), but their application is not effective yet or they have

not been adopted by the European Union.

Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” (effective for annual

periods starting on or after 01/01/2024)

In September 2022, the IASB issued narrow-scope amendments to IFRS 16 “Leases” which add to

requirements explaining how a company accounts for a sale and leaseback after the date of the

transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same

asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for

a sale and leaseback at the date the transaction takes place. However, IFRS 16 had not specified how to

measure the transaction when reporting after that date. The issued amendments add to the sale and

leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting

Standard. These amendments will not change the accounting for leases other than those arising in a sale

and leaseback transaction. The Group will examine the impact of the above on its Financial Statements

regarding a sale and leaseback transaction. The above have been adopted by the European Union with

effective date of 01/01/2024.

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (effective for annual

periods starting on or after 01/01/2024)

In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of

liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the

requirement for an entity to have the right to defer settlement of the liability for at least 12 months after

the reporting period. The amendments include: (a) specifying that an entity’s right to defer settlement

must exist at the end of the reporting period; (b) clarifying that classification is unaffected by

management’s intentions or expectations about whether the entity will exercise its right to defer

settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for

classifying liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in

July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued

amendment to IAS 1, in response to the Covid-19 pandemic. However, in October 2022, the IASB issued

an additional amendment that aim to improve the information companies provide about long-term debt

with covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid

settling the debt in the 12 months after the reporting date. However, a company’s ability to do so is often

subject to complying with covenants. The amendments to IAS 1 specify that covenants to be complied

with after the reporting date do not affect the classification of debt as current or non-current at the

reporting date. Instead, the amendments require a company to disclose information about these

covenants in the notes to the financial statements. The amendments are effective for annual reporting

periods beginning on or after 1 January 2024, with early adoption permitted. The Group will examine the

impact of the above on its Financial Statements. The above have been adopted by the European Union

with effective date of 01/01/2024.

Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”:

Supplier Finance Arrangements (effective for annual periods starting on or after 01/01/2024)

In

May

2023,

the

International

Accounting

Standards

Board

(IASB)

issued Supplier

Finance

Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:

Disclosures. The IASB issued Supplier Finance Arrangements to require an entity to provide additional

disclosures about its supplier finance arrangements. The amendments require additional disclosures that

complement the existing disclosures in these two standards. They require entities to provide users of

financial statements with information that enable them a) to assess how supplier finance arrangements

affect an entity’s liabilities and cash flows and to understand the effect of supplier finance arrangements

on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangements were no

longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after

1 January 2024. The Group will examine the impact of the above on its Financial Statements, though it is

not expected to have any

.

The above have not been adopted by the European Union.

Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability

(effective for annual periods starting on or after 01/01/2025)

In August 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21 The

Effects of Changes in Foreign Exchange Rates that require entities to provide more useful information in

their financial statements when a currency cannot be exchanged into another currency.

The amendments

introduce a definition of currency exchangeability and the process by which an entity should assess this

exchangeability. In addition, the amendments provide guidance on how an entity should estimate a spot

exchange rate in cases where a currency is not exchangeable and require additional disclosures in cases

where an entity has estimated a spot exchange rate due to a lack of exchangeability.

The amendments to

IAS 21 are effective for accounting periods on or after 1 January 2025. The Group will examine the impact

of the above on its Financial Statements, though it is not expected to have any. The above have not been

adopted by the European Union.

3.2. Significant

,

Accounting

Judgments

Estimates

and

Assumptions

The preparation of financial statements in accordance with IFRS requires management to make

judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, as well as

the disclosure of contingent assets and liabilities at the date of the financial statements and the reported

amounts of revenue and expenses during the reporting period. Actual results could differ from those

estimates. Estimates and judgments are based on past experience as well as on other factors including

expectations for future events, which are considered reasonable under the specific circumstances.

(i) Judgments

The main judgments made by the Management of the Group (apart from those involving estimates which

are presented further below) that have the most significant effect on the amounts recognised in the

financial statements mainly relate to:

•

Contingencies

The Group is involved in litigation and claims in the normal course of its operations. The Management is

of the opinion that any resulting settlements would not materially affect the financial position of the

Group and of the Company as at December 31, 2023. However, the determination of contingent liabilities

relating to the litigation and claims is a complex process that involves judgments as to the outcomes and

interpretation of laws and regulations.

(ii) Estimates and assumptions

Certain amounts included in or affecting the financial statements and related disclosure must be

estimated, requiring management to make assumptions with respect to values or conditions which

cannot be known with certainty at the time the financial statements are prepared. A ‘‘critical accounting

estimate’’ is the one which is both significant to the portrayal of the company’s financial position and

results and requires management’s most difficult, subjective or complex judgments, often as a result of

the need to make estimates about the effect of matters that are inherently uncertain. The Group evaluates

such estimates on an ongoing basis, based upon historical results and experience, consultation with

experts, trends and other methods considered reasonable in the particular circumstances, as well as

Group’s projections as to how they might change in the future.

•

Estimation of Fair Value of Financial Instruments

The calculation of the fair value of financial assets and liabilities for which there are no public market

prices, requires the use of specific valuation techniques. The measurement of their fair value requires

different types of estimates. The most important estimates include the assessment of different risks to

which the instrument is exposed to such as business risk, liquidity risk etc., and the assessment of the

future profitability prospects in the case of equity securities valuation.

•

Measurement of expected credit losses

Impairment of financial assets is based on assumptions regarding the risk of default and percentages of

expected credit losses. In particular, the Group's management applies judgments in selecting such

assumptions, as well as in selecting the inflows for the calculation of impairment, based on historical

data, the current market conditions and the projections for future financial amounts at the end of the

reporting period.

Regarding contractual assets, trade receivables and leases, the simplified approach of IFRS 9 is applied,

calculating the expected credit losses over the life of those items using a table of projections. This table is

based on historical data but is adjusted in such a way that it should reflect the projections for the future

economic environment. The correlation between the historical data, future financial conditions and the

expected credit losses requires making significant estimates. The amount of expected credit losses

depends to a large extent on changes in the circumstances and the projections of the future financial

conditions. Moreover, historical data and projections for the future may not lead to conclusions indicative

of the actual amount of customer liabilities default in the future.

•

Inventory

Inventories are measured at the lower of cost and net realisable value. In order to estimate the net

realisable value, Management takes into consideration the most reliable data available at the time of

making the estimate.

•

Income tax

The Group is subject to income tax in in Greece and other countries where it operates. Significant

estimates are required in determining the provision for income taxes. There are many transactions and

calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

The Group recognises liabilities for expected tax audit issues based on estimates of whether additional

taxes will be due. Where the final tax outcome of these matters is different from the amounts that were

initially recorded, such differences will impact the income tax and deferred tax provisions in the period

in which such amounts are finalized.

•

Provisions

Doubtful accounts are reported at the amounts likely to be recoverable. The estimation of the amounts to

be recovered is a result of analysis as well as the Group’s experience regarding the probability of default.

As soon as it is noted that a particular account is subject to a risk over and above the normal credit risk

(e.g., low credit worthiness of the customer, dispute as to the existence or the amount of the claim, etc.),

the account is analyzed and recorded as a bad debt if circumstances indicate the receivable is non-

recoverable.

•

Useful life of depreciated assets

The Group’s Management examines the useful life of depreciated assets during each reporting period. At

31

st

December, 2023, it is estimated that the useful life represents the expected usefulness of the

underlying assets.

•

Impairment of property, plant and equipment

Property, plant and equipment are tested for impairment whenever events or changes in circumstances

indicate that the carrying amount may not be recoverable. To calculate the value in use, the Management

estimates the future cash flows from the asset or cash-generating unit and selects the appropriate

discount rate to calculate the present value of future cash flows.

4.

Material accounting principles

Significant accounting policies which have been used in the preparation of these consolidated financial

statements are summarized below.

It is worth noting, as analytically reported above in paragraph 3.2, that accounting estimates and

assumptions

are used for the preparation of the financial statements.

Despite the fact that these estimates are based on the Management’s best knowledge of the current issues

and actions, the final results are likely to differ from what has been estimated.

4.1

Segment Reporting

The Group recognizes four geographical segments: Greece, Cyprus, Bulgaria and Romania as operating

segments. The above segments are used by Group management for internal reporting purposes.

Management’s strategic decisions are based on the operating results of every segment, which are used for

the measurement of their productivity.

4.2

Basis for Consolidation

Subsidiary companies:

Subsidiary companies are all the companies controlled, directly or indirectly, by

another company (parent) either through holding the majority of shares of the company in which the

investment was made or through its ability to appoint the majority of the Board of Directors members.

Namely, subsidiary companies are the ones controlled by the parent company. JUMBO S.A. obtains and

exercises control through voting rights. Existence of any potential voting rights which are enforceable at

the preparation of the financial statements is taken into consideration to determine whether the parent

company exercises control over the subsidiaries.

Subsidiary companies are fully consolidated from the date control over them is obtained and cease to be

consolidated as from the date such control no longer exists.

The acquisition of a subsidiary company by the Group is accounted through the acquisition method.

The

acquisition cost of a subsidiary is the fair value of the assets transferred, of shares issued and liabilities

undertaken as at the acquisition date, plus any costs directly associated with the transaction.

Identifiable

assets, liabilities and contingent liabilities acquired in a business combination are measured at the

acquisition at their fair values, regardless of the participation rate.

The acquisition cost other than the fair value of the net assets acquired is recorded as goodwill.

If total

acquisition cost is lower than the fair value of the net identifiable assets acquired, the difference is

recognized directly to the income statement.

Investments in subsidiaries are carried at cost less any accumulated impairment losses. An impairment

test is performed whenever there is clear evidence of impairment in accordance with the provisions of

IAS 36 "Impairment of Assets".

4.3

The Group Structure

The companies included in the full consolidation of JUMBO S.A. are the following:

Parent Company:

The Societe Anonyme under the name «JUMBO SA» and the distinctive title «JUMBO» was founded in

1986, with current headquarters in Moschato, Attica region (9 Cyprus and Hydras street), has been listed

since 1997 on the

Athens Exchange and is registered in the Registry for Societes Anonymes of the

Ministry of Development with reg. no. 7650/06/Β/86/04

while the Company’s number at the General

Electronic Commercial Registry (G.E.MI.) is 121653960000. The company has been classified in the Main

Market category of the Athens Exchange.

Subsidiary companies:

1.

The subsidiary company under the title «JUMBO TRADING LTD» is a Cypriot limited liability

company. It was founded in 1991. Its headquarters are in Nicosia, Cyprus (Avenue Avraam Antoniou 9,

Kato Lakatamia of Nicosia). It is registered in the Cyprus Companies’ Register, under number

Ε

44824. It

operates in Cyprus and has the same objective as the Parent, which is retail trade of toys and related

items. The parent company holds 100% of its shares and its voting rights.

2.

The subsidiary company in Bulgaria under the title «JUMBO EC.B. LTD» was founded on the

1st of September 2005 as a Single-member Limited Liability Company under the Registration Number

96904, book 1291, of the First Instance Court of Sofia and according to the conditions of the Special Law,

under number 115. Its headquarters are in Sofia, Bulgaria (Bul. Bulgaria 51, Sofia 1404). The parent

company holds 100% of its shares and voting rights.

3

.

The subsidiary company in Romania under the title «JUMBO EC.R. S.R.L.»

was founded on the

9th of August 2006 as a Limited Liability Company

(srl) under

Registration Number J40/7122/2013 of

the Trade Register, with registered office in Bucharest, district 3,

Theodor Pallady Avenue, number 51,

Centrul de Calcul building 5

th

floor. The parent company holds 100% of its shares and voting rights.

4.

GEOCAM HOLDINGS LIMITED was a subsidiary of JUMBO TRADING LTD which held a

100% stake of its share capital. The company has no activity.

5.

GEOFORM LIMITED is a subsidiary of JUMBO TRADING LTD which holds a 100% stake of

its share capital. The company registered office is in Nicosia, of Cyprus (Avraam Antoniou 9 Avenue,

Kato Lakatamia of Nicosia). The company was founded on 13.03.2015.

6.

INTROSERVE PROPERTIES LIMITED is a subsidiary of JUMBO TRADING LTD which holds

a 100% stake of its share capital. The company registered office is in Nicosia, of Cyprus (Avraam

Antoniou 9 Avenue, Kato Lakatamia of Nicosia). The company was

acquired on 19.12.2019.

7.

INDENE PROPERTIES LIMITED is a subsidiary of JUMBO TRADING LTD which holds a

100% stake of its share capital. The company registered office is in Nicosia, of Cyprus (Avraam Antoniou

9 Avenue, Kato Lakatamia of Nicosia). The company was

acquired on 19.12.2019.

8.

INGANE PROPERTIES LIMITED is a subsidiary of JUMBO TRADING LTD which holds a

100% stake of its share capital. The company registered office is in Nicosia, of Cyprus (Avraam Antoniou

9 Avenue, Kato Lakatamia of Nicosia). The company was

acquired on 19.12.2019.

9.

NIVAMO PROPERTIES LIMITED is a subsidiary of JUMBO TRADING LTD which holds a

100% stake of its share capital. The company registered office is in Nicosia, of Cyprus (Avraam Antoniou

9 Avenue, Kato Lakatamia of Nicosia). The company was

acquired on 30.06.2023.

The Group companies, included in the consolidated financial statements and the consolidation

method are the following:

Consolidated

Subsidiary

Percentage and

Participation

Headquarters

Activity

Consolidation

method

JUMBO TRADING

LTD

100% Direct

Cyprus

Commercial

Full Consolidation

JUMBO EC.B LTD

100% Direct

Bulgaria

Commercial

Full Consolidation

JUMBO EC.R SRL

100% Direct

Romania

Commercial

Full Consolidation

GEOCAM

HOLDINGS

LIMITED

100% Indirect

Cyprus

Investment

Full Consolidation

GEOFORM

LIMITED

100% Indirect

Cyprus

Investment

Full Consolidation

INTROSERVE

100% Indirect

Cyprus

Investment

Full Consolidation

PROPERTIES

LIMITED

INDENE

PROPERTIES

LIMITED

100% Indirect

Cyprus

Investment

Full Consolidation

INGANE

PROPERTIES

LIMITED

100% Indirect

Cyprus

Investment

Full Consolidation

JUMBO SA.

Parent company

JUMBO Trading Ltd

Subsidiary company

It was founded in 1991

The parent company holds 100% of

shares and voting rights.

It's

headquarters are in Nicosia, Cyprus.

JUMBO EC.B LTD

Subsidiary company

It was founded in September 2005

The parent company holds 100% of

shares and voting rights.

It's headquarters are in Sofia, Bulgaria.

JUMBO EC.R SRL

Subsidiary company

It was founded in 1August 2006

The parent company holds 100% of

shares and voting rights.

It's headquarters are in Bucharest,

Romania

GEOCAM HOLDING LIMITED

Subsidiary company

It was founded in 13.03.2015

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

GEOFORM LIMITED

Subsidiary company

It was founded in 13.03.2015

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

INTROSERVE PROPERTIES LIMITED

Subsidiary company

It was acquired in 19.12.2019

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

INDENE PROPERTIES LIMITED

Subsidiary company

It was acquired in 19.12.2019

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

INDENE PROPERTIES LIMITED

Subsidiary company

It was acquired in 19.12.2019

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

Nivamo Properties LIMITED

Subsidiary company

It was acquired in 30.06.2023

JUMBO Trading Ltd owns 100% of the

voting rights and shares.

It's headquarters are in Cyprus

4.4

Functional currency, presentation currency and

foreign currency translation

The items in the financial statements of the Group’s companies are measured based on the currency of the

primary economic environment in which the Group operates (functional currency). Consolidated

financial statements are presented in euro, which is the functional currency and the presentation currency

of the parent Company.

Transactions in foreign currency are translated to the functional currency at the rates applicable as at the

date of transactions. Gains and losses from foreign exchange differences which arise from settling these

transactions during the period and from the conversion of monetary items denominated in foreign

currency at applicable rates as at the statement of financial position date, are recognised in profit or loss

account.

Foreign exchange differences from non - monetary items measured at fair value are considered

a part of fair value and are consequently recognised in a manner consistent with the recognition of

differences in fair value.

The Group’s operations in foreign currency (which are an integral part of the parent company’s

operations) are translated into

the functional

currency at the rates applicable as at the transactions’ date,

while assets and liabilities pertaining to foreign operations, arising during the consolidation, are

translated

to euro at exchange rates applicable as at the statement of financial position date.

Separate financial statements of the companies included in the consolidation, which are initially

presented in a currency other than the presentation currency of the Group, have been translated into

euro.

Assets and liabilities have been translated in euro at the closing rate as at the statement of financial

position date.

Income and expenses have been converted to the presentation currency of the Group at the

average exchange rate applicable in the relevant financial year.

Any differences arising from that

procedure have been debited / (credited) to a reserve of exchange differences in equity (foreign currency

translation reserve).

Any differences in the sums are due to rounding.

4.5

Property, Plant and Equipment

Property plant and equipment are disclosed in financial statements at their acquisition cost less

accumulated depreciation and any impairment. Cost includes all expenses directly associated with the

acquisition of assets.

Subsequent expenses are recognised as increase to the book value of tangible assets or as a separate fixed

asset only to the extent that those expenses increase future economic benefits expected to flow from the

use of the fixed asset and their cost can be reliably measured. Repairs and maintenance costs are

recognised in the income statement when incurred.

Depreciation of other items in tangible assets (other than land, which is not depreciated) is calculated

based on the straight line method over their useful life, which has been estimated as follows:

Buildings

30 – 35 years

Mechanical equipment

5 - 20 years

Vehicles

5 – 10

years

Other equipment

4 - 10 years

Computers and software

3 – 5 years

The depreciation of fixed assets owned by third partied and of the right of use assets is calculated based

on the duration of the related lease contracts.

Residual values and useful lives of tangible assets are reviewed at every statement of financial position

date.

When book values of tangible assets exceed their recoverable amount, the difference (impairment)

is directly recorded as an expense in the income statement, profit or loss.

At the sale of tangible assets, differences between the consideration received and their book value are

recognised in the income statement.

Software

: Software licenses are evaluated at acquisition cost less amortization and any impairment

losses.

4.6

Investment Property

Investment Property items concern

the investments that are related to those property items

(including

land, buildings or parts of buildings or both) that are owned (via acquisition

or via finance lease) by the

Group, in order to acquire rents from their hiring, or for the increase of their value (aid of capital), or

both, and they are not owned for: (a) being utilized in the production or in the supply of materials /

services or for administrative aims, and (b) sale at the usual course of the company’s operations.

Investment Property items are initially measured at acquisition cost, including transaction expenses.

The

Group has selected after the initial recognition, the cost model and measures the investment property

according to the requirements of IAS 16 for this method.

Transfers to Investment Property category take place only when there is a change of their use that is

proved by the completion of the self-use from the Group, the construction or the exploitation of an

operating

lease to a third party.

Transfers of items from Investment Property category take place only when there is a change of their use

that is proved by the commencement of the self-use by the Group or by the commencement of the

exploitation aiming at disposal.

An Investment Property item is written off (eliminated from the statement of financial position) during

the disposal or when the investment is being withdrawn permanently from the use and future financing

profits are not expected from its disposal.

Profits or losses that arise from the withdrawal or disposal of the Investment Property item concern the

difference between the net-income of the disposal and the book value of the asset and are

recognised in

the income statement for the period of withdrawal or disposal.

4.7

Impairment of Assets

Depreciated assets are tested for impairment if there is any indication that their book value will not be

recovered.

The recoverable amount is the higher amount between the fair value of the asset (net selling

price less costs to sell) and value in use. The loss incurred due to the impairment of assets is recognised

by the company if the book value of those items (or of the Cash Generating Units) is higher than its

recoverable amount.

The Group considers each store as a separate Cash Generating Unit.

The net selling price is defined as the amount from the sale of the asset in the context of a bi-lateral arm’s

length transaction after the deduction of any additional direct cost for sale of the asset, while value in use

is the present value of estimated future cash flows expected to flow in the business from the use of the

asset and from its sale at the end of its estimated useful life.

Any impairment losses are recognised as an expense in the income statement in the financial year in

which they arise.

4.8

Financial Instruments

Initial Recognition and Derecognition

A financial asset or a financial liability is recognised in the Statement of Financial Position, when and only

when the Group becomes a party to the contractual provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset

expire, or when the financial asset and substantially all the risks and rewards associated with its

ownership are transferred.

A financial liability (or part of it) is derecognised from the Statement of Financial Position, when and only

when the contractual liability is extinguished, discharged, cancelled or expires.

Classification and measurement of financial assets

Except for those trade receivables that do not contain a significant financing component and are

measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at

fair value adjusted for transaction costs except for financial assets measured at fair value through profit

and loss.

Financial assets, other than those designated and effective as hedging instruments, are classified into the

following categories:

a. Amortised cost

b. Fair value through profit and loss, and

c. Fair value through other comprehensive income

The classification is determined by the Group’s business model for managing financial assets and the

contractual cash flow characteristics of the financial assets.

All income and expenses relating to financial assets that are recognised in the Income Statement are

presented in the line items “Other financial results”, “Financial income” and “Financial Expenses”, except

for impairment of trade receivables, presented as part of the operating results.

Subsequent measurement of financial assets

A financial asset is subsequently measured at fair value through profit and loss, amortised cost or fair

value through other comprehensive income. The classification is based on two criteria:

i.

the entity ‘s

business model for managing the financial asset, meaning, whether the objective is

to hold for the purpose of collecting contractual cash flows or collecting contractual cash flows as well as

the sale of financial assets, and,

ii.

whether the contractual cash flows of the financial asset consist exclusively of capital repayments

and interest on the outstanding balance (“SPPI” criterion).

The measurement category at amortised cost includes non-derivative financial assets like loans and

receivables with fixed or determinable payments that are not quoted in an active market. After initial

recognition they are measured at amortised cost using the effective interest method. Discounting is

omitted where the effect of discounting is immaterial.

For financial assets measured at fair value through other comprehensive income, changes of fair value are

recognised in the Statement of Comprehensive Income and reclassified in Income Statement upon

derecognition of the financial instruments, except for equity instruments, for which accumulated gains or

losses are

not reclassified from other comprehensive income to the income statement upon

derecongnition.

The financial assets at fair value through profit and loss, are measured at their fair value and

fair value

changes are recognised as gains or losses in the Income Statement. The fair value of these instruments is

determined by reference to active market transactions or using a valuation technique where no active

market exists.

Impairment of financial assets

The Group and the Company recognize impairment

provisions for expected credit losses of all financial

assets except for those

measured at fair value through profit and loss.

The purpose of IFRS 9 ‘s impairment requirements is to recognize expected credit losses over the financial

asset ‘s lifetime, whose credit risk has increased after initial recognition, regardless if the assessment is at

an aggregated or standalone level, using all information which can be collected, based on both historical

and current data as well, but also data in respect of reasonable future estimates.

In applying the above mentioned approach, a distinction is made between:

•

financial instruments that have not deteriorated significantly in credit quality since initial

recognition or that have low credit risk (‘Stage 1’)

•

financial instruments that have deteriorated significantly in credit quality since initial recognition

and whose credit risk is not low (‘Stage 2’), and

•

financial instruments for which there is objective evidence of impairment at the reporting date.

(Stage 3).

For financial instruments of Stage 1, 12-month expected credit losses are recognised, while for financial

assets of Stage 2 or Stage 3

- expected credit losses are recognised over their lifetime.

Credit losses are defined as the difference between all the contractual cash flows that are due to and the

cash flows that are actually expected to be received by the Group or the Company. This difference is

discounted at the original effective interest rate of the financial asset.

The Group and the Company apply the simplified approach of this Standard for contract assets, trade

receivables and receivables from leases by calculating the expected credit losses over the lifetime of the

abovementioned instruments. In this case, the expected credit losses reflect the expected shortfalls in

contractual cash flows, considering the potential for default at any point during the life of the financial

instrument. In calculating the expected credit losses, the Group uses a provision matrix in which the

above mentioned financial instruments have been grouped based on balances’ nature and ageing, by

taking into account available historical data in respect of the debtors, adjusted with future factors related

to debtors and financial environment.

4.9

Inventory

As at the statement of financial position date, inventories are measured at the lower of cost and net

realizable value.

Net realizable value is the estimated sale price in the ordinary course of the company’s

operations less any related sale expenses. Where necessary, impairments are performed for obsolete,

useless and particularly slow-moving inventory. The amounts of any impairment of inventories at net

realisable value and all the losses on inventories are recognised as an expense in the period in which the

impairment or loss occurs. The cost of inventory does not include any financial expenses. The acquisition

cost of inventory is determined based on annual weighted-average price.

4.10

Trade receivables

The greatest volume of the Group sales concerns retail sales. Trade debtors are initially recorded at their

fair value while any balances beyond ordinary credit limits or balances with objective evidence that the

Group is in no position to collect are assessed for impairment. At the same time, impairment provisions

for expected credit losses are assessed.

Impairment losses, are recognised in the income statement.

4.11

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid

investments in money market and bank deposits under 3 months.

The Group classifies time deposits and high liquidity deposits over 3 months in the item "Other current

financial assets". Bank deposits classified in this item are highly liquid, directly convertible into cash

without being subject to a significant risk of change in their value or giving rise to a significant cost in the

event of their earlier termination before the end of the contractual period. For this reason, cash flows of

the Group and the Company include this item as cash available, in a separate line item.

4.12

Share capital

Share capital is determined using the nominal value of shares that have been issued.

Common shares are

classified in equity. A share capital increase through cash includes any share premium during the initial

share capital issuance.

Expenses incurred for issuance of shares are accounted for, after the deduction of relevant income tax, as

a deduction from equity.

Expenses associated with the issuance of shares for the acquisition of

companies are included in the cost of the company acquired.

Retained earnings include current and previous financial year’s results as presented in the income

statement.

4.13

Financial Liabilities

As the accounting for financial liabilities remains largely the same under IFRS 9 compared to IAS 39, the

Group’s accounting principles regarding financial liabilities were not affected by the adoption of IFRS 9.

The Group’s financial liabilities comprise bank loans, trade and other payables and lease liabilities.

The Group’s financial liabilities (apart from loans) are presented

in the “Trade and other payables”

account, “Other current liabilities” account as well as in “Other long-term

liabilities” the

statement of

financial position.

Financial liabilities are recognised when the company becomes a party to the contractual agreements of

the instrument and derecognised when the Group is discharged from the liability or the liability is

cancelled or expired. Interest expenses are recognised as an expense in the “Finance Costs” line of the

Income Statement. Financial leases liabilities are measured at their initial cost, net of the amount of the

financial payments capital. Trade payables are recognised initially at their nominal value and are

subsequently measured at their amortized cost, net of settlement payments. Shareholder’s dividends are

included in the “Other current liabilities” account, when the dividend is approved by the Shareholders’

General Meeting. Profit and loss is recognised in the Income Statement when the liabilities are written off

and through amortization.

Financial liabilities may be classified upon initial recognition at FVTPL, if the following criteria are met.

(a) The Classification reverses or reduces significantly the accounting mismatch effects that would

emerge if the liability had been measured at amortized cost.

(b) These liabilities belong to a group of liabilities, being managed or evaluated with respect to their

performance, based on fair value, according to the Group’s financial risks management strategies.

(c) A financial liability contains an embedded derivative, classified and measured separately.

4.14

Loans

Loan liabilities are initially recorded at cost reflecting their fair value reduced by the relevant expenses

for contracting the loan.

After the initial recognition they are measured at the amortized cost based on

the effective interest rate method. Borrowing costs are recognised as expenses in the period in which they

occur.

Loans in foreign currency are measured at the closing rate at the statement of financial position date,

except for those loans for which the exchange rate regarding the conversion and payment has been

specified upon their initiation.

4.15

Income & deferred tax

The financial year’s charge with income tax consists of current taxes and deferred taxes, namely taxes or

tax relieves related to financial benefits arising in the period but which have already been allocated or

will be allocated by the tax authorities to different financial years and provisions regarding finalization of

income tax liabilities after relevant tax inspections for uninspected financial years. Income tax is

recognised in the statement of total comprehensive income with the exception of tax pertaining to

transactions directly recorded in equity, which is also recognised in equity or in other comprehensive

income.

Current income tax includes current liabilities or receivables from the tax authorities pertaining to tax

payable on taxable income of the financial year and any additional income tax pertaining to previous

years.

Current taxes are calculated according to tax rates and tax laws applied for the accounting periods to

which they pertain, based on taxable profit for the year. Changes in current tax items in assets or

liabilities are recognised as a part of taxable expenses in the statement of total comprehensive income.

Deferred income tax is determined based on the liability method arising from temporary differences

between the carrying amount and the tax base for items in assets and liabilities.

Deferred income tax is

not recognised if it arises from the initial recognition of an asset or liability in a transaction, outside a

business combination and at time of the transaction, did not affect the accounting nor the tax profit or

loss.

Deferred tax assets and liabilities are measured based on the tax rates expected to be applied in the

period during which the asset or liability will be settled considering the tax rates (and tax laws) in force

up to the statement of financial position date.

If it is not possible to specify the time of reversal of

temporary differences, the tax rate applied is the one being in force in the year subsequent to the

statement of financial position date.

Deferred tax assets are recognised to the extent that there will be a future taxable profit for the use of the

temporary difference creating the deferred tax receivable.

Deferred income tax is recognised for the temporary differences arising from investments in subsidiaries

and affiliated undertakings, unless the reversal of temporary differences is controlled by the Group and it

is unlikely that temporary differences will be reversed in the foreseeable future.

Most changes in deferred tax assets or liabilities are recognised as a part of tax expenses in statement of

profit or loss.

4.16

Employee benefits

a) Short-term benefits

Short-term employee benefits (except post-employment benefits) monetary and in kind are recognised as

an expense when they accrue. Any unpaid amount is recognised as a liability, while in the case where the

amount paid exceeds the amount of services rendered, the company recognizes the excess amount as an

asset (prepaid expense) only to the extent that the prepayment will lead to a reduction of future

payments or to reimbursement.

b) Post-employment benefits

Post-employment benefits include pensions or other benefits which the company offers after the

termination of employment to the employees as acknowledgement of their services. Thus, they include

both defined contribution schemes as well as defined benefits schemes. The accrued cost of the defined

contributions scheme is registered as an expense in the relative period.

• Defined contribution plan

Defined contribution plans are relating to contributions to Insurance Funds (eg Social Security), so the

Group does not have any legal obligation in the event that State Fund is unable to pay a pension to the

insured. The employer's obligation is limited to the payment of employer contributions to the insurance

companies or state social insurance funds. The payable contribution from the Group to a defined

contribution scheme, is recognised as liability, after deduction of the paid contribution, while the accrued

contributions are recognised in the income statement as an expense.

• Defined benefit plan

According to Law 2112/20 and 4093/2012 the company is obliged to compensate its employees in case of

retirement or dismissal. The amount of the compensation paid depends on the years of service, the level

of wages and the removal from service (dismissal or retirement). The entitlement to participate in these

programs is usually based on years of service of the employee until retirement.

In May 2021 the International Accounting Standards Board accepted the interpretation of IAS 19

Employee Benefits of the International Financial Reporting Standards Interpretations Committee on the

distribution of defined retirement benefits. This interpretation did not have an impact on the financial

statements since the Company applies the provisions of article 8 of L.3198 / 1955.

It is noted that the subsidiary company JUMBO TRADING has a defined contribution plan, JUMBO

TRADING LTD Employee Welfare Fund, which is funded separately and prepares its own financial

statements, under which employees are entitled to certain benefits upon retirement or early termination

of their services. Furthermore, JUMBO EC.R. has no legal or constructive obligation to pay compensation

to employees on termination of service. As a result, the aforementioned subsidiaries have not recognised

liabilities related to defined retirement benefits in their statement of financial position.

The liability that is reported in the Statement of Financial Position with respect to this scheme is the

present value of the liability for the defined benefit depending on the accrued right of the employee and

the period to be rendered. The commitment of the defined benefit is calculated annually by an

independent actuary with the use of the projected unit credit method. For the fiscal year ended at

31.12.2023 the choice of interest rate has been made under

the

Full Yield Curve method. The Yield Curve

uses

the yield of iBoxx AA –rated which is considered consistent with the principles of IAS 19, since it is

based on bonds corresponding to the currency and term estimation in relation to employee benefits and

appropriate for long-term provisions.

A defined benefit obligations plan is determined based on various parameters, such as age, years of

service, salary, specific obligations for payable benefits. The provisions for the period are included in

personnel cost , in income statement and consist of current and past service cost, the relative financial

cost, actuarial gains or losses and any possible additional charges. Regarding unrecognised actuarial

gains or losses the revised IAS 19R is followed, which includes a number of changes in accounting for

defined benefit plans, including:

- The recognition of actuarial gains/losses in other comprehensive income and permanent exclusion from

the year’s income statement.

- The expected returns on investment of the program of each period is not recognised according to the

expected returns but it is recognised the interest on net liability/(asset) according to the discount rate

used to measure the defined benefit obligation.

- The recognition of prior service cost in the income statement earlier than the plan readjustment date or

when the relative readjustment or end of service benefit is recognised.

- Other changes include new disclosures, such as quantitative sensitivity analysis.

4.17

Provisions and Contingent Liabilities/Assets

Provisions are recognised if the Group has current legal or constructive obligations as a result of past

events; their settlement is probable through outflows of resources and the exact amount of the liability

can be reliably measured.

Provisions are reviewed as at each statement of financial position date and

they are adjusted so that they reflect the present value of the expense expected to settle the liability.

If it is no longer probable that an outflow of resources will be required to settle a liability for which a

provision has already been recognised, the provision is reversed.

Contingent liabilities are not recognised in the financial statements but they are disclosed, unless the

possibility of outflows of incorporating economic benefits is minimum. Contingent assets are not

recognised in the financial statements but they are disclosed if the inflow of economic benefits is

probable.

4.18

Leases

Company of the Group as a Lessee

On 01.07.2019, on the implementation of IFRS 16 "Leases" that replaced IAS 17 and its relevant

interpretations, the Group assessed whether the active contracts it had concluded constitute leases in

accordance with the new Standard and, therefore, the relevant assessment will be conducted

for each

new contract.

A contract constitutes or entails a lease if the contract conveys the right to control the use of an identified

asset for a specified period of time in exchange for consideration. In these cases, the new Standard

requires the lessee to recognize the right-of-use assets and the lease liability.

Under IFRS 16, the distinction between operating and finance leases is eliminated and all leases are

recognised applying a single model, except in cases of lease terms of 12 months or less, without a

purchase option and

leases of low-value assets. Such rentals are recognised as an expense.

At the lease commencement date, the Group recognises as a lease liability the present value of future

lease payments. Lease liabilities are divided into short-term and long-term, depending on the repayment

period.

Valuation of lease liabilities mainly includes: fixed payments, variable payments based on an index or a

rate, the exercise price of a purchase option if it is certain that the option will be exercised. These

payments are calculated for the duration of the lease contract, which is the non-cancellable lease period.

Periods covered by options to extend or terminate are only included only if it is reasonably certain that

the options will be exercised by the Group.

Future rentals are discounted for the term of the lease, using the interest rate implicit in the lease, or if

this percentage cannot be easily determined, the incremental borrowing rate. This is the rate of interest

that a lessee would have to pay to borrow, over a similar term, and with a similar security, the funds

necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

The Group mainly uses the incremental borrowing rate as a discount rate. The book value of lease

liabilities is recalculated using a renewed discount rate, where required, in cases where there is a contract

has been amended.

The right-of-use asset is measured initially at the amount of the initial measurement of the lease liability

adjusted for any rental payments made on the date of commencement of the lease period or earlier, plus

the initial direct cost and an estimate of costs to be incurred in dismantling and removing the underlying

asset,

in the event of a contractual obligation, less

any lease incentives received.

The rights-of-use assets

are carried at cost less accumulated depreciation, calculated using the straight-line method over the term

of the contract, less any impairment losses and are adjusted regarding any amendments arising

subsequent

to the commencement of the contract.

Company of the Group as a lessor

When fixed assets are leased under finance leases, the present value of the rentals is recorded as a

receivable.

The difference between the gross amount of the receivable and its present value

is recorded

as deferred financial income. Revenue from lease is recognised in the income statement over the duration

of the lease using the net investment method, which represents a

constant periodic rate of return. Leases

in which the Group does not transfer substantially all the risks and rewards of ownership of the asset are

classified as operating leases. The Group and the Company are not counterparties with each other in the

capacity of a lessor.

4.19

Recognition of revenue and expenses

To facilitate recognition and measurement of revenues from contracts with customers, IFRS 15 establishes

a new model which includes a 5-step procedure.

1.

Identifying the contract with a customer

2.

Identifying the performance obligations.

3.

Determining the transaction price.

4.

Allocating the transaction price to the performance obligations.

5.

Recognising revenue when/as performance obligation(s) are satisfied.

Transaction price is the amount of consideration to which the Group expects to be entitled in exchange

for transferring promised goods or services to a customer, excluding amounts collected on behalf of third

parties (value added tax, other taxes on sales). If the amount of consideration is variable, then the Group

estimates the amount of consideration which it will be entitled to for transferring promised goods or

services, applying the expected value method or the most probable amount method. Transaction price,

usually, is allocated to each performance obligations on the base of relevant stand-alone selling prices of

promised contract, distinct good or service.

Revenues are recognised when the performance obligations are satisfied, either at a point in time (usually

for obligations relevant to transfer of goods at a client) or over time (usually for obligations relevant to

transfer of services to a client).

The Group recognises contractual obligation for amounts received from clients (prepayments) in respect

of performance obligations which have not been fulfilled, as well as when it retains an unconditional

right on an amount of consideration (deferred income) before the execution of contract ‘s performance

obligations and the transfer of goods or services. The contractual obligation is derecognised when the

performance obligations have been executed and the revenue has been recognised in Income Statement.

The Group recognises a trade receivable when it has an unconditional right to receive the consideration

amount for executed performance obligations arising from the contract with the client. Respectively, the

Group recognises a contract asset when it has satisfied the performance obligations, before client‘s

payment or before the payment becomes due, for example when the goods or the services are transferred

to the client before the Group‘s right to issue the invoice.

Revenue is recognised as follows:

Sale of Goods:

The revenue from the sale of goods is recognised when the buyer obtains control of the

goods, usually upon delivery of the goods.

Income from rentals:

Revenue from operating leases of the Group’s investment properties is recognised

gradually over the life of the lease. The application of IFRS 15 has no effect on revenue recognition of this

category as it falls into application frame of IAS 17.

Income from Interest and Dividends:

Interest income

is recognised using the effective interest rate

method which is the rate which

accurately discounts the estimated future cash flows to be collected or

paid in cash during the expected life

of the financial asset or liability, or when required for a shorter

period of time, at its net present value.

Dividends are recognised as income upon establishing their collection right.

Expenses

Expenses are recognised in the income statement on an accrual basis. Payments made for operational

leases are transferred to profit or loss as expenses at the time the lease is used.

Expenses from interest are

recognised on an accrual basis.

4.20

Distribution of dividends

The distribution of dividends to the shareholders of the parent Company is recognised as a liability in the

financial statements as at the date the distribution is approved by the General Meeting of Shareholders.

5. Notes to the Financial Statements

5.1

Segment Reporting

The Group recognizes four geographical segments: Greece, Cyprus, Bulgaria and Romania as

operating segments. The above segments are used by the Group management for internal reporting

purposes. The Management’s strategic decisions are based on the operating results of each reported

segment, which are used for the measurement of productivity.

In the segment “Greece” the Company’s Management also monitors the sales from Greece to North

Macedonia and Serbia based on the commercial agreement with the independent customer

Veropoulos Dooel and the sales from Greece to Albania, Kosovo, Bosnia and Montenegro based on

the commercial agreement with the independent customer Kid Zone Sh.p.k and from Greece to Israel

based on the commercial agreement with the independent customer Fox Group. The total sales of the

Company to North Macedonia, Albania, Kosovo, Serbia, Bosnia, Montenegro and Israel for the

period 01.01.2023-31.12.2023 reached the amount of € 44.734 k.

Group’s results per segment for the current financial year are as follows:

01/01/2023-31/12/2023

(amounts in €)

Greece

Cyprus

Bulgaria

Romania

Total

Sales

862.469.603

119.511.798

107.909.152

231.732.966

1.321.623.519

Intragroup Sales

(238.994.648)

(251.003)

(365.266)

(626.900)

(240.237.817)

Total net sales

623.474.955

119.260.795

107.543.886

231.106.067

1.081.385.702

Cost of sales

(269.393.503)

(57.097.664)

(47.860.944)

(103.995.001)

(478.347.111)

Gross Profit

354.081.452

62.163.131

59.682.942

127.111.065

603.038.591

Other operating income/expenses

4.017.409

1.579.611

67.184

2.021.771

7.685.974

Administrative / Distribution

expenses

(162.992.662)

(20.326.510)

(19.820.272)

(46.002.562)

(249.142.005)

Profit before tax, interest and

investment results

195.106.200

43.416.232

39.929.854

83.130.275

361.582.560

Finance Costs, net

240.895.949

2.076.485

1.883.110

2.787.932

247.643.476

Intragroup Financial results

(240.000.000)

-

-

-

(240.000.000)

Earnings before tax

196.002.149

45.492.717

41.812.964

85.918.206

369.226.036

Depreciation and amortization

(21.661.334)

(3.787.642)

(3.495.136)

(7.574.045)

(36.518.156)

Group’s results per segment for the financial year 01.01.2022- 31.12.2022 are as follows:

01/01/2022-31/12/2022

(amounts in €)

Greece

Cyprus

Bulgaria

Romania

Total

Sales

752.554.299

108.308.923

95.310.109

201.137.023

1.157.310.354

Intragroup Sales

(206.370.196)

(456.296)

(445.341)

(657.709)

(207.929.542)

Total net sales

546.184.103

107.852.627

94.864.768

200.479.314

949.380.812

Cost of sales

(240.185.968)

(50.102.360)

(41.087.106)

(87.158.048)

(418.533.483)

Gross Profit

305.998.135

57.750.267

53.777.661

113.321.265

530.847.329

Other operating income/expenses

1.475.431

322.820

1.887.350

1.299.585

4.985.186

Administrative / Distribution

expenses

(157.142.765)

(19.178.673)

(21.255.636)

(36.904.271)

(234.481.345)

Profit before tax, interest and

investment results

150.330.801

38.894.414

34.409.375

77.716.579

301.351.169