Paperpack A B E E : Annual financial report of the use 2020

PAPERPACK CARTON PACKAGING INDUSTRY

Reg. Number 35197/06/Β/96/101

General Commercial Registry Number: 004465901000

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR 01/01/2020 UNTIL 31/12/2020

According to Art. 4 of Law 3556/2007 and the executive decisions of the Board of the

Exchange Commission

Annual Financial Report for the year 2020

			CONTENTS
STATEMENT BY MEMBERS OF THE BOARD...............................................................	4
INDEPENDENT AUDITOR'S REPORT.........................................................................	5
ANNUAL REPORT OF THE BOARD OF DIRECTORS .................................................	10
FINANCIAL STATEMENTS FOR THE YEAR 2020 .....................................................	27
STATEMENT OF FINANCIAL POSITION ..................................................................	28
STATEMENT OF COMPREHENSIVE INCOME ...........................................................	29
STATEMENT OF CHANGES IN EQUITY ....................................................................	30
CASH FLOW STATEMENT ........................................................................................	31
NOTES TO THE FINANCIAL STATEMENTS...............................................................	33
1 GENERAL INFORMATION FOR THE COMPANY...................................................	33
1.1	The company ....................................................................................................................	33
1.2	Nature of activities ............................................................................................................	33
2 BASIS OF PREPARATION ...................................................................................	33
2.1	Compliance with IFRS ........................................................................................................	33
2.2	Basis of preparation of the financial statements...................................................................	33
2.3	Approval of the Financial Statements ..................................................................................	33
2.4	Period covered ..................................................................................................................	33
2.5	Presentation of the Financial Statements.............................................................................	34
2.6	New standards, amendments to standards and interpretations .............................................	34
2.7	Reclassifications of items ...................................................................................................	36
2.8	Significant accounting judgments and Management's estimations .........................................	37
3 SUMMARY OF ACCOUNTING POLICIES .............................................................	39
3.1	Foreign currency translation ...............................................................................................	39
3.2	Segment reporting.............................................................................................................	39
3.3	Goodwill............................................................................................................................	39
3.4	Intangible assets (excluding goodwill).................................................................................	39
3.5	Tangible assets .................................................................................................................	39
3.6	Non-current assets held for sale .........................................................................................	40
3.7	Financial assets .................................................................................................................	40
3.7.1	Initial Recognition ........................................................................................................	40
3.7.2	Initial Measurement......................................................................................................	40
3.7.3 Classification and Measurement of financial assets .........................................................	40
	3.7.3.1 Commercial claims and Debt securities ................................................................	41
	3.7.3.2	Shares...............................................................................................................	41
	3.7.3.3	Reclassifications .................................................................................................	41
3.7.4 Measurement of impairment of financial assets ..............................................................	41
3.8	Financial liabilities..............................................................................................................	42
3.8.1 Financial liabilities (excluding loans) ..............................................................................	42
3.8.2	Loans ..........................................................................................................................	42
3.8.3	Ordinary shares............................................................................................................	43
3.9	Inventories........................................................................................................................	43
3.10	Deferred income tax ..........................................................................................................	43
3.10.1 The current tax asset ...................................................................................................	43
3.10.2 Deferred income tax.....................................................................................................	43
3.11	Government grants............................................................................................................	43
3.12	Retirement benefits and short-term employee benefits ........................................................	44
3.12.1 Short-term benefits ......................................................................................................	44
3.12.2 Retirement Benefits.....................................................................................................	44
	3.12.2.1	Defined benefit plans .........................................................................................	44
	3.12.2.2	Defined contribution plans ..................................................................................	44
3.13	Other provisions ................................................................................................................	44
3.14	Contingent liabilities...........................................................................................................	45
3.15	Contingent assets ..............................................................................................................	45
3.16	Leases ..............................................................................................................................	45
3.17	Revenue	recognition .........................................................................................................	46
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Annual Financial Report for the year 2020

	3.18	Borrowing Costs .................................................................................................................	48
	3.19	Fair Values .........................................................................................................................	48
4	SEGMENT REPORTING .......................................................................................	49
	4.1	Determination of functional segments.................................................................................	49
	4.2	Segmental results..............................................................................................................	49
	4.3	Assets and liabilities by operating segment .........................................................................	50
	4.4	Other information by operating segment.............................................................................	50
	4.5	Sales per product and service category ..............................................................................	50
	4.6	Information by geographical area .......................................................................................	51
5	GOODWILL.........................................................................................................	52
6	INTANGIBLE ASSETS .........................................................................................	52
7	TANGIBLE ASSETS .............................................................................................	53
8	FINANCIAL ASSETS............................................................................................	53
	8.1	Available for sale financial assets........................................................................................	53
	8.2	Loans and receivables........................................................................................................	54
	8.2.1 Other non-current assets ..............................................................................................	54
	8.2.2 Trade and other receivables..........................................................................................	54
	8.2.3 Cash and cash equivalents ............................................................................................	55
9 RIGHT OF USE ASSETS.......................................................................................	56
10 INVENTORIES ....................................................................................................	56
11 OTHER CURRENT ASSETS ..................................................................................	56
12 SHARE CAPITAL .................................................................................................	56
13 SHARE PREMIUM ...............................................................................................	57
14 RESERVES ..........................................................................................................	57
15 EMPLOYEES DEFINED BENEFIT LIABILITY .......................................................	57
16 FINANCIAL LIABILITIES....................................................................................	59
	16.1	Financial liabilities at amortized cost ...................................................................................	59
	16.1.1 Borrowings ..................................................................................................................	59
	16.1.2 Leases .........................................................................................................................	61
	16.1.3 Trade and other payable...............................................................................................	61
	16.1.4 Other long term liabilities..............................................................................................	62
17 OTHER CURRENT LIABILITIES ..........................................................................	62
18 TURNOVER .........................................................................................................	62
19 EXPENSE ANALYSIS ...........................................................................................	62
20 OTHER INCOME AND EXPENSES........................................................................	63
21 FINANCIAL RESULTS .........................................................................................	64
22 INCOME TAXES ..................................................................................................	64
	22.1	Current tax liabilities ..........................................................................................................	64
	22.2	Deferred tax assets and liabilities .......................................................................................	65
	22.3	Income tax recognized in income statement........................................................................	65
23 EARNINGS PER SHARE ......................................................................................	66
24 DIVIDENDS ........................................................................................................	66
25 RISK MANAGEMENT POLICIES ..........................................................................	66
	25.1	Risk of changes in exchange rates ......................................................................................	66
	25.2	Risk of changes in interest rates .........................................................................................	67
	25.3	Credit Risk Analysis............................................................................................................	67
	25.4	Liquidity risk analysis .........................................................................................................	68
26 POLICIES AND PROCEDURES FOR CAPITAL MANAGEMENT..............................	68
27 TRANSACTIONS AND BALANCES WITH RELATED PARTIES ..............................	68
	27.1	Balances with related parties..............................................................................................	68
	27.2	Compensation to key management personnel .....................................................................	68
	27.3	Receivables and payables to key management personnel.....................................................	69
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Annual Financial Report for the year 2020
28 LIENS ON THE PROPERTY AND PLEDGES ..........................................................	69
29 CONTINGENT ASSETS AND LIABILITIES ...........................................................	69
29.1 Contingent Liabilities..........................................................................................................	69
29.1.1 Litigations ....................................................................................................................	69
29.1.2 Tax audits....................................................................................................................	69
29.2 Contingent Assets..............................................................................................................	69
30 AUDIT FEES........................................................................................................	70
31 SUBSEQUENT EVENTS........................................................................................	70

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Annual Financial Report for the year 2020

STATEMENT BY MEMBERS OF THE BOARD

In accordance with Article 4, paragraph 2 of Law 3556/2007

The members of the Board of Directors of the company under the name "PAPERPACK INDUSTRIAL COMPANY FOR PRINTING, CELLULOSE AND CARTON PACKAGING" and the distinctive title PAPERPACK S.A.:

1. Petros Sakkas, President of the Board of Directors and CEO
2. Theodoros Rakintzis, Vice-President of the Board of Directors,
3. Ioannis Tsoukaridis, Member of the Board of Directors,

in our above capacity, hereby declare and certify that to the best of our knowledge:

1. The accompanying annual financial statements of PAPERPACK SA for the period from January 1 to December 31, 2020, which have been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, fairly represent the assets and liabilities, equity, cash flows and results for the period ended 31 December 2020 of PAPERPACK SA in accordance with the provisions of paragraphs 3 to 5 of article 4 of Law 3556/2007, and
2. the attached Annual Report of the Board of Directors of PAPERPACK SA illustrates in a true manner the development, performance and position of the Company, including a description of the main risks and uncertainties it face information and the required information under paragraphs 6 to 8 of article 4 of Law 3556/2007.

Kifissia, 28rd of April 2021

President and CEO	Vice President	Member of the
		Board
	Theodoros Rakintzis
Petros Sakkas	Ioannis Tsoukaridis
ID No. AΟ 169266	ID No. ΑK 031015	ID No. ΑM 644642

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