INFORM P. LYKOS SA

H1 2017 sales and EBITDA at the level of the relevant period of previous year

• New contracts for billing services  
• New innovative services with higher added value (Dynamic Statements, Cloud Printing)

Koropi, 29/09/2017 – The consolidated financial statements of Inform P. Lykos S.A. are published today, in accordance with the International Financial Reporting Standards (I.F.R.S.).

INFORM Group maintained sales and operating profitability (EBITDA) in the first semester of 2017 at the same level as at the first semester of 2016. At the same time, it maintained its gross profit margin despite high competition, due to the contribution of its previous year's investments, which resulted in the addition of new billing service contracts as well as the offer of new innovative services with higher added value (Dynamic Statements, Cloud Printing), offsetting the price pressure on traditional products.

More specifically, during the first semester of 2017, Group sales showed a marginal decrease of -0.4% and reached € 31.8 million compared to € 31.9 million in the corresponding semester of 2016, despite the price pressure on traditional products, which was offset by increased sales of services in the banking sector, the supply to the market of new innovative value-added services and the addition of new billing services contracts.

At the same time, the operating expenses excluding depreciation in the first semester of 2017 decreased by 3% compared to the corresponding last year's semester, due to the efficiency improvement program applied to the Group companies in recent years.

As a result of the above, the key profitability figures of INFORM Group were as follows:

• The earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group, were marginally lower by € 0.1 million or -4.8% and reached € 2.8 million compared to € 2.9 million in the corresponding semester of 2016,

• The earnings before interest and taxes (EBIT) of the Group, decreased by € 0.2 million or -22.1% and reached € 0.9 million compared to € 1.1 million in the corresponding semester of 2016, as a result of the higher depreciation due to the new investments implemented by the Group in the previous year,

• The earnings before taxes (EBT) of the Group, reached € 263 thousand compared to € 522 thousand in the corresponding semester of 2016,

• As a result of the above, the consolidated earnings after taxes (EAT) of the Group, reached € 86 thousand compared to € 344 thousand in the corresponding semester of 2016.

The consolidated operating cash flow in the first semester of 2017, strengthened to € 1.5 million compared to negative € -0.2 million in the corresponding semester of 2016. The net bank debt of the Group reached € 17.1 million in the first semester of 2017, marginally increased from € 16.7 million in the corresponding semester of 2016.

For the second half of 2017, the Group continues to work hard focusing on its strategy to strengthen its position in the areas of its operation in order to accelerate growth and create added value for its customers and shareholders. The contribution of new, innovative, higher added value products and services is expected to be increased in the second half of the year, as some of the new contracts started gradually in the first half of the year, while some others will start within the second half of 2017.

It is noted that the consolidated financial statements of Inform P. Lykos S.A. include the companies: INFORM P. LYKOS S.Α., LYKOS PAPERLESS SOLUTIONS S.Α., ALBANIAN DIGITAL PRINTING SOLUTIONS Sh.p.k., as well as the consolidated financial statements of TERRANE LTD (INFORM LYKOS SA - Romania). The aforementioned financial statements are included in the consolidated financial statements of the parent company AUSTRIACARD AG (former LYKOS AG) with its headquarters in Austria.

About INFORM

INFORM LYKOS was founded in 1897, has been listed on the Athens Stock Exchange since 1994 and today is an international Group with leading presence in the Central and Eastern Europe in the area of Information Management, with production facilities in Greece, Romania and Albania. The Group is activated internationally and is leader in the area of printing management, production of secured documents, and Business Process Outsourcing, offering services of statement and bill printing and delivery, electronic presentation of statements and print management for Banks, Telecommunication companies, Public sector and Industrial/Trade companies, and employees about 410 employees.

It is a member of the Group AUSTRIACARD AG (former LYKOS AG) headquartered in Austria, which is an international group active in the business areas of “Digital Security” under the brand AUSTRIACARD and “Information Management” under the brand INFORM, having two additional production facilities for production of smart cards, identities, etc. in Austria and Romania, certified by international organizations such as Visa, MasterCard, Diners etc. It has five personalization centers for smart cards in Greece, Austria, Poland, Romania and Turkey, also certified by international organizations.

In 2016, the Group recorded revenues of € 122 million and EBITDA € 11.5 million, employing in total about 860 employees.

For more information, you could visit the website www.lykos.gr