Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme : Annual Financial Report

MOTODYNAMICS S.A.

Société Anonyme

EMPORIKI EISAGOGIKI AFTOKINITON DITROHON kai MIHANON THALASSIS S.A. under the distinctive title "MOTODYNAMICS S.A." General Commercial Register No. 122090707000 10 Germanikis Scholis Athinon, 15123 Maroussi

CONTENTS	Page
DIRECTORS' STATEMENTS............................................................................................................................................................	1
ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 1/1-31/12/2020 .............................................................	2
REPORT OF INDEPENDENT CHARTERED AUDITOR ACCOUNTANT...........................................................................................................	8
STATEMENT OF TOTAL INCOME FOR THE YEAR ENDED 31 DECEMBER 2020....................................................................	23
FINANCIAL STATEMENT..............................................................................................................................................................	24
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.........................................................................................................	25
SEPARATE STATEMENT OF CHANGES IN EQUITY ...................................................................................................................	26
STATEMENT OF CASH FLOW ......................................................................................................................................................	27
NOTES ON THE ANNUAL FINANCIAL STATEMENTS ................................................................................................................	28
1.	GENERAL INFORMATION....................................................................................................................................................	28
2.	BASIS FOR PRESENTATION OF CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS...................................	28
3.	BASIC ACCOUNTING PRINCIPLES.....................................................................................................................................	32
4.	HOLDINGS IN SUBSIDIARIES..............................................................................................................................................	38
5.	TRANSACTIONS - BALANCES WITH SUBSIDIARIES..........................................................................................................	39
6.	SALES .....................................................................................................................................................................................	43
7.	ADMINISTRATIVE EXPENSES .............................................................................................................................................	43
8.	SALES AND DISTRIBUTION EXPENSES..............................................................................................................................	43
9.	OTHER INCOME ...................................................................................................................................................................	44
10.	OTHER EXPENSES................................................................................................................................................................	44
11.	FINANCIAL INCOME ............................................................................................................................................................	44
12.	FINANCIAL EXPENSES.........................................................................................................................................................	45
13.	INCOME TAX (CURRENT AND DEFERRED) ......................................................................................................................	45
14.	PAYROLL COST.....................................................................................................................................................................	48
15.	DEPRECIATION ....................................................................................................................................................................	48
16.	EARNINGS PER SHARE ........................................................................................................................................................	49
17.	TANGIBLE FIXED ASSETS....................................................................................................................................................	50
18.	GOODWILL............................................................................................................................................................................	52
19.	RIGHT-TO-USE ASSETS........................................................................................................................................................	53
20.	INTANGIBLE ASSETS - RIGHTS.............................................................................................................................................	55
21.	INVENTORIES .......................................................................................................................................................................	56
22.	TRADE RECEIVABLES..........................................................................................................................................................	56
23.	OTHER RECEIVABLES .........................................................................................................................................................	58
24.	CASH & CASH EQUIVALENTS .............................................................................................................................................	58
25.	ALLOCATION OF BONUS SHARES TO DIRECTORS ..........................................................................................................	59
26.	SHARE CAPITAL....................................................................................................................................................................	59
27.	RESERVES..............................................................................................................................................................................	59
28.	DIVIDENDS ...........................................................................................................................................................................	60
29.	PROVISION FOR STAFF RETIREMENT INDEMNITIES .....................................................................................................	60
30.	TRADE PAYABLES ................................................................................................................................................................	62
31.	LOANS ....................................................................................................................................................................................	62
32.	OTHER SHORT-TERM LIABILITIES.....................................................................................................................................	63
33.	FINANCIAL RISK MANAGEMENT .......................................................................................................................................	63
34.	COMMITMENTS AND CONTINGENCIES............................................................................................................................	65
35.	OPERATING SEGMENT REPORTING .................................................................................................................................	67
36.	EVENTS AFTER THE DATE OF THE STATEMENT OF FINANCIAL POSITION ................................................................	68
TABLE OF REFERENCES TO THE INFORMATION OF ARTICLE 10 OF LAW 3401/2005.........................................................	69
AVAILABILITY OF FINANCIAL STATEMENTS ............................................................................................................................	70

DIRECTORS' STATEMENTS (pursuant to Article 4(2)(c) of Law 3556/2007)

The undersigned below, Messrs:

1. Paris Kyriakopoulos, Chairman of the Board of Directors
2. Sotirios Hatzikos, Chief Executive Officer, and
3. Nikolaos Sokratis Labroukos, member of the Board of Directors, especially nominated for this purpose by the Board of Directors during today's meeting (30.03.2021)

STATE THAT

To the best of our knowledge:

1. The attached annual financial statements of the Company and the Group MOTODYNAMICS S.A. for the period 1/1/2020 and 31/12/2020, drawn up in accordance with the applicable International Financial Reporting Standards, as endorsed by the European Union, provide the true picture of the assets and liabilities, the net equity and the results of the Company, as well as of the companies included in the consolidation taken overall, pursuant to the provisions of Article 4 of Law 3556/2007.
2. The Board of Directors' annual report provides a true picture of the development, performance and position of the Company and of the companies included in the consolidation overall, including descriptions of the main risks and uncertainties they are confronted with.

Maroussi, 30 March 2021

Kyriakopoulos Paris

Hatzikos Sotirios

Labroukos Nikolaos-Sokratis

BoD Chairman

Chief Executive Officer

BoD Member

1

ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 1/1-31/12/2020

Dear Shareholders,

The Board of Directors' annual report pertains to the financial year 2020 (1 January to 31 December 2020) and has been drawn up in accordance with the relevant provisions of Articles 150-154 of Law 4548/2018, of Law 3556/2007 (Government Gazette, Series I, No 91/30.4/2007) and the implementing decisions of the Capital Market Committee's and in particular the Decision under no. 7/448/11-10-2007 of the Board of Directors of the Capital Market Committee.

This report includes all significant individual thematic sections that are required, pursuant to the aforementioned legislative framework, and provides a true picture of all information required by the law, in order to provide substantial and well-documented information about activity during the period in question and the overall progress of "MOTODYNAMICS S.A." (hereinafter referred to as the Company) and the Group, in which the following companies are consolidated:

1. MOTODIKTYO S.A. having its registered office in Greece and a participating interest of 100%
2. MOTODYNAMICS SRL having its registered office in Romania and a participating interest of 100%
3. MOTODYNAMICS LTD having its registered office in Bulgaria and a participating interest of 100%
4. LION RENTAL S.A. having its registered office in Greece and a participating interest of 80,5%

The Report is included in its entirety, together with the Company and Group financial statements and other data and declarations of the Annual Financial Report as required by law, pertaining to the fiscal year 2020.

1) Overall course of the Company and the Group during 2020

The following tables present the main income statement and 2020 balance sheet accounts on a Group and Company level.

Income Statement:

		Group			Company
	01.01-31.12.2020	01.01-31.12.2019			01.01-31.12.2020	01.01-31.12.2019
Turnover	78.305.142	94.388.869		59.916.300	60.214.357
Earnings Before Interest, Taxes, Depreciation an	6.292.289	11.022.517	3.329.353	4.253.094
% on the sales	8,0%	11,7%	5,6%	7,1%
Operating profit / Losses	-759.379	3.580.217	1.592.832	2.778.393
% on the sales	n/a	3,8%	2,7%	4,6%
Results before tax	-2.250.807	1.747.944	1.032.392	1.922.751
Results after tax	-2.601.163	1.243.908	563.643	1.286.448

Turnover:

The turnover of the Group in 2020 amounted to € 78,3 million, showing a decrease of 17% compared to 2019. Respectively, the turnover of the Company for the same period amounted to € 59,9 million, showing a decrease of 0,5 % compared to 2019

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA)

			Group				Company
	01.01-31.12.2020	01.01-31.12.2019			01.01-31.12.2020	01.01-31.12.2019
Profit after tax	-2.601.163	1.243.908		563.643	1.286.448
Taxes	-350.355	-504.036	-468.748	-636.302
Interest	-1.491.429	-1.832.273	-560.440	-855.642
Depreciation	-7.051.668	-7.442.300	-1.736.522	-1.474.702
Earnings Before Interest, Taxes,	6.292.289	11.022.517	3.329.353	4.253.094
Depreciation and Amortisation (EBITDA)
% on sales
	8,0%	11,7%	5,6%	7,1%

The Group's pre-tax profits, interest and depreciation stood in 2020 at €6,3 million, an increase of 42,9% compared to 2019. Similarly, the profits before interest, taxes & depreciation of the parent company in 2020 amounted to € 3,3 million, a decrease of 21,7%

The Group and the company have adopted IFRS 16 'Leases' as of January 1, 2019. The comparable EBITDA of 2020 without the effect of the adoption of IFRS16 for the Group is € 4,8 million compared to € 9,6 million in 2019; for the Company it is € 2,4 million compared to € 3,6 million in 2019

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Operating results

The Group's operating results amounted to € -0,8 million compared to € +3,6 million in 2019. Respectively, the operating profits of the Company in 2020 amounted to € 1,6 million compared to € 2,8 million in 2019

The comparable operating results of 2020 without the effect of the adoption of IFRS16 for the Group are losses of € 982 thousand against profits of € 3,4 million in 2019. Respectively, the comparable operating profits of the Company in 2020 amounted to € 1,5 million compared to € 2,7 million in 2019.

Net profit before tax and after tax:

The results before taxes of the Group amounted to losses of € 2,25 million, against profits of € 1,75 million in 201 9, while the results after taxes of the Group amounted to losses of € 2,6 million, compared to profits of € 1,2 million in 2019. The comparable results before taxes of the Group for 2020 without the effect of the adoption of IFRS16 is a loss of € 2,1 million against a profit of € 1,9 million in 2019. Respectively, the comparable results after taxes are losses of € 2,5 million against profits of € 1,41 million in 2019.

In 2020, the profits before tax of the Company stood at € 1 million compared to € 1,9 million in 2019, while the profits after tax stood at € 0,6 million compared to € 1,3 million in 2019. The comparable profits before tax of the Company for 2020 not taking into account the adoption of IFRS16 are € 1,13 million compared to € 1,99 million in 2019. The comparable profits after taxes are € 0,7 million compared to € 1,36 million in 2019.

Long-term assets:

	Group					Company
	31-Dec-20	31-Dec-19			31-Dec-20	31-Dec-19
Intangible Assets	27.907.005	34.716.594		4.445.538	4.432.010
Intangible assets	444.860	530.453	235.326	393.479
Right-of-use assets (IFRS 16)	5.709.141	4.499.074	4.152.555	2.622.135
Deferred tax assets	6.369.723	6.238.933	775.653	841.090
Other long-term assets	1.545.583	2.268.211	812.025	898.854
	41.976.313	48.253.264			10.421.098	9.187.567
Investments in subsidiaries			18.372.057	17.821.919
Goodwill	2.766.409	2.766.409
Total long-term assets	44.742.721	51.019.673		28.793.154	27.009.486

In 2020 and excluding the impact of IFRS16, the long-term assets of the Group was reduced by 16,1% compared to 2019. The long-term assets of the Company excluding the effect of IFRS16 increased by 1% compared to 2019

Working capital (excluding net borrowings):

			Group					Company
		31-Dec-20	31-Dec-19				31-Dec-20	31-Dec-19
Inventories	9.912.588	12.533.289		7.800.137	10.652.972
Trade accounts receivable	4.140.245	7.968.579	2.190.298	2.771.790
Amounts due from subsidiaries				2.130.740	3.482.343
Other receivables	1.626.198	3.140.921	1.171.102	818.412
	15.679.032	23.642.790		13.292.278	17.725.518
Trade payables	12.027.433	16.197.878	9.229.748	8.844.710
Other short-term payables	3.415.993	3.936.352	2.547.346	2.682.750
	15.443.427	20.134.229			11.777.094	11.527.460
Working capital	235.605	3.508.560		1.515.184	6.198.058
% on the sales
	0,3%	3,7%		2,5%	10,3%

In 2020, the Group's and Company's working capital showed improvement, confirming management's focus on cash flow generation

3