AutoHellas Hertz SA

Q1 results 2013

Consolidated turnover reached €29 mill from €31.5mill in the respective period last year, mainly the result of lower demand from the corporate Operating leasing segment.

Despite this slowdown, losses before taxes where reduced in the first quarter to -€163 thousands from -€1.3 million in Q1 2012.

It must be mentioned that Q1 is always weak for Autohellas because of the rent a car turnover, which is highly seasonable.

The increase in the corporate tax percentage to 26% from 20% as from 1st Jan 2013, has increased substantially the company's deferred tax liability by €4.5mill. As a result earnings after tax and minority rights show losses of         -€4.8mill despite the improved pre-tax result.

It must be said that consolidated earnings before tax, depreciation and financial results were reported at €12.3 mill, with a positive operating cash flow of €5.4mill, allowing the strengthening of the company's cash reserves which in consolidated level reached €112.3 mill.

Following the expiration of the 5 year bond loan in April 2013, the company proceeded in repayment of €56mill (27%) of its loan obligations with a respective decrease in its cash reserves. The refinancing of the outstanding bond loan will be concluded within June.

The company is foreseeing that the slow down for operating leasing will continue throughout 2013 as well, as a result of the economic recession.

On the other hand, increase in tourist arrivals is expected to result in higher short term rental revenues during the May-October period.

The company, and following the Hertz licensee agreement given to Autohellas for Romania's short term in May 2012, now fully operates  in 5 foreign countries, Bulgaria, Cyprus, Romania, Serbia and Montenegro, following a steady and moderate growth policy, strengthening its position to these countries.