Containment of operating losses: EBITDA from business operations at €2.8m loss vs. €6.6m loss in Q1 2013

• Consolidated Q1 2014 revenues of €257.3m vs €263.3m a year ago, amid a seasonally soft quarter, challenging market conditions and the impact to HYGEIA Group (€3.4m charge) related to the legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector. Excluding this impact, consolidated revenues declined 1% y-o-y, matching the annual real GDP contraction (-1.1%) in Greece in Q1 2014. Note that the first quarter is seasonally less important, hence it is not indicative of full-year trends.
• EBITDA from business operations^[1] at €2.8m loss, vs €6.6m loss a year ago. Containment of losses is attributed to ongoing gross profit margin expansion, efficiency improvements as well as cost containment effectiveness. The curtailment of operating losses is primarily associated to better results from VIVARTIA, ATTICA and HYGEIA (excluding aforesaid impact).
• Reported consolidated EBITDA at €9.1m loss, adversely impacted by the aforesaid charge to HYGEIA Group, vs. €10.0m loss a year ago.
• Consolidated net loss, after tax and minorities, of €51.7m, compared to a relevant bottom-line loss of €104.3m in Q1 2013. Note that Q1 2013 bottom-line results included a one-off €35m charge related to deferred taxes.
• Net Asset Value (NAV) at €978m (vs. €967m on 31.12.2013 and €1,240m on 31.03.2013), translating to a NAV per share of €1.27 (vs. €1.26 on 31.12.2013 and €1.61 on 31.03.2013).
• Cash balances, including restricted cash, of €141m at consolidated and €63m at parent company level. Consolidated gross debt declined by €29m vs 31.12.2013.
• The strategic agreement with Piraeus Bank marks a new development stage for the Group. Holding a portfolio of leading companies in the Food & Beverages, Passenger shipping, Healthcare and IT sectors, MIG will seek to play a vital role in the upcoming sector consolidation, for the benefit of its shareholders and the Greek economy overall.
  

Marfin Investment Group (MIG) consolidated Q1 2014 sales reached €257.3m compared to €263.3m in Q1 2013, amid protracted challenging economic and market conditions in Greece and the impact to Hygeia Group (€3.4m charge) related to the unilateral, on the part of the Greek state, legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector. Excluding this impact, consolidated Q1 2014 sales declined 1% y-o-y, matching the annual real GDP contraction in Greece (-1.1% y-o-y in Q1 2014 vs -6% y-o-y in Q1 2013). Note that the first quarter is seasonally less important, hence it is not indicative of full-year trends.

Consolidated EBITDA from business operations[2] amounted to €2.8m loss, an improvement compared to €6.6m loss a year ago. The containment of operating losses is primarily associated to better results at VIVARTIA, HYGEIA (excluding the impact from government policy decisions in the healthcare sector) and ATTICA. For yet another quarter, the majority of the group's portfolio companies registered widening gross profit margins (reported group gross profit margin improved by c100bps y-o-y), efficiency improvements as well as cost containment effectiveness (group SG&A declined 3% y-o-y).

Consolidated reported EBITDA amounted to €9.1m loss, compared to €10.0m loss a year ago, reflecting the curtailment of operating losses at the business operations level.

Q1 2014 consolidated net loss, after tax and minorities, amounted to €51.7m, compared to €104.3m a year ago. The relevant bottom-line results in Q1 2013 had been burdened by €35m one-off deferred taxes (as of 1 January 2013 a higher corporate tax rate of 26% vs. 20% before was introduced in Greece) as well as €22.4m losses from discontinued operations (losses from discontinued operations amounted to €1.4m in Q1 2014).

Net Asset Value (NAV) stood at €978m on 31.03.2014 (vs. €967m on 31.12.2013 and €1.24bn on 31.03.2013), or at €1.27 on a per share basis (vs. €1.26 on 31.12.2013 and €1.61 on 31.03.2013). The improvement since 31.12.2013 is attributed to the quarterly positive changes in fair values (HYGEIA Group mark-to-market).

Cash balances, including restricted cash, at the parent company level amounted to €63m and €141m at group level. Consolidated gross debt declined by €29m compared to 31.12.2013.

Despite protracted, challenging economic and market conditions, a number of MIG's core portfolio companies have succeeded in improving their overall performance compared to last year:

• Vivartia:delivered +3% y-o-y revenue growth, while it further strengthened its leading market position across its key businesses, registering market share gains in both the fresh milk market (33% in Q1 2014 vs 32.5% in FY2013) and the frozen vegetables market (64.2% in Q1 2014 vs 64.1% in FY2013). Vivartia commanded 26.5% market share (vs 26.2% in FY2013) in the total Greek Dairy market and 24.5% (vs 23.9% in FY2013) in the total Greek Dairy & Drinks market. Management efforts to rationalise costs (SG&A -4.5% y-o-y) and improve efficiency have resulted in significant containment of losses at the EBITDA level (reported EBITDA loss of €2.8m vs. €6.7m loss a year ago).
  • Attica Group: revenues remained virtually unchanged compared to Q1 2013. Note however that the 1^st quarter is the seasonally weakest (winter period), hence it is not indicative of full-year trends. Ongoing cost containment (COGS –5% y-o-y and SG&A flat y-o-y), supported the curtailment of losses at the EBITDA level (reported EBITDA at €7.2m loss vs. €7.9m loss a year ago).
  • Hygeia Group: excluding the aforementioned impact related to the legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector (€3.4m charge to Q1 2014 revenues and EBITDA), group recurring EBITDA increased 4% y-o-y to €9.9m, supported by ongoing efficiency improvements and cost optimisation.

Management priorities are to actively rebalance the group's investment portfolio, aimed at deleveraging, support existing core companies' strategic initiatives as well as successfully complete debt restructuring/refinancing negotiations with lending banks. Consistent with the aforementioned strategy, we highlight:

• Strategic agreement between MIG and Piraeus Bank Group (May 2014): as per the terms of the signed agreement, Piraeus Bank will purchase €250m worth of unsold Tranche A bonds of the outstanding Convertible Bond Loan (CBL) issue at their nominal value. Piraeus Bank has committed to convert bonds worth at least €90m into MIG common registered shares. Hence upon conversion Piraeus Bank will become MIG's largest strategic shareholder with at least 17.7% stake. The intention of both parties is to convert the full amount of bonds, purchased by Piraeus Bank, into MIG common registered shares. The conversion will be executed either by Piraeus Bank or by means of a placement to institutional and strategic investors that will be mutually agreed by the parties. In the event of a future sale of MIG shares held by Piraeus Bank, the parties have agreed to provide pre-emption rights as well as a right of first refusal to MIG's existing strategic shareholders, following MIG's Board of Directors nomination. The transaction is subject to approval by the Board of Directors of both Groups as well as the competent supervisory authorities.
• Acquisition of a 43% stake in MEVGAL by DELTA (April 2014): according to the preliminary agreement, DELTA will purchase a 43% stake in MEVGAL (the leading dairy company in Northern Greece) from the Papadakis - Chatzitheodorou families. The transaction consideration amounts to €4.5m, which will be paid following the repayment of €3.8m obligation by MEVGAL to DELTA. The transaction is subject to the approval of the Hellenic Competition Commission. MEVGAL commands market shares of 6.3% in the total milk market and 5.7% in the total dairy & drinks market in Greece (FY2013 data).
• ATTICA in debt restructuring discussions/negotiations with lending banks and Fortress Credit Corp (April 2014): ATTICA announced that it is in advanced discussions/negotiations with its lending banks as well as with Fortress Credit Corp. These discussions have not yet been concluded, while any potential agreement is subject to the approval of the lending banks. These discussions involve, among other proposed corporate actions, assessment for the issuance of a convertible bond, the amount of which, the time of issuance and generally the timeframe for the finalisation of any potential agreement cannot yet be determined.
• HYGEIA Group subsidiary maternity hospital completes refinancing of bond loan (May 2014): HYGEIA Group announced the issuance of a €42m bond loan for its subsidiary maternity hospital Mitera, as a means to refinance an existing borrowing obligation. With this issue, HYGEIA Group successfully completed the refinancing of the majority of its outstanding debt obligations.

Contacts:

Investor Relations: +30 210 350 4046

InvestorRelations@marfingroup.gr

About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeast Europe (SEE). The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional investment vehicles lacking MIG's regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG in its current structure has been listed on the Athens Stock Exchange since July 2007. Its portfolio includes leading companies in sectors across the SEE region, grouped into Food & Beverages, Healthcare, IT & Telecoms, Transportation & Shipping, Real Estate, Tourism & Leisure. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in SEE; Attica Group, a leading passenger ferry operator in the Eastern Mediterranean; Hygeia Group, a market leader in integrated private hospitals and clinics in SEE, with the leading general hospital facilities and maternity clinics in Greece; SingularLogic, the leading IT operator in Greece; Flight Ambulance International (FAI) a top-5 global fixed-wing medical evacuation company; Sunce (Bluesun) a leading hospitality and leisure group in Croatia; and Robne Kuce Beograd (RKB), owner of the largest commercial real-estate portfolio in Serbia.