Information regarding the formation of the fundamental financial figures during the third quarter of the fiscal year 2022 and on a cumulative basis for the nine-month period

Earnings before Interest, Taxes and Depreciation (EBITDA) 2.9 million euros for IKTINOS HELLAS in the 9th month of 2022. Positive prospects for 2023

The Chinese market is recovering
Significant penetration in India, Egypt and Tunisia
New quarry in Drama with the popular in international markets white dolomite marble
Quadrupling of Iktinos investments compared to the corresponding period of 2021

1. Information regarding the formation of the fundamental financial figures during the third quarter of the fiscal year 2022 and on a cumulative basis for the nine-month period

Earnings before Interest, Taxes and Depreciation (EBITDA), which amounted to 2.9 million euros, compared to 6.6 million euros in the corresponding nine months of 2021, showing a decrease of 56.23%. In the third quarter of 2022, Earnings before Interest, Taxes and Depreciation (EBITDA) amounted to 0.4 million euros, compared to 0.9 million euros in the corresponding third quarter of 2021.
Earnings before Interest and Taxes (EBIT) for the nine months of 2022, which amounted to 0.9 million euros, compared to 4.6 million euros for the corresponding nine months of 2021, showing a decrease of 78.45%. In the third quarter of 2022, Earnings before Interest and Taxes (EBIT) amounted to 0.2 million euros, compared to 0.3 million euros in the corresponding third quarter of 2021.
Turnover for the nine months of 2022, which amounted to 21.4 million euros, compared to 25.5 million euros in the corresponding nine months of 2021, recording a decrease of 16%. In the third quarter of 2022, turnover amounted to 5.9 million euros, compared to 7.1 million euros in the corresponding third quarter of 2021.
The results (losses) before taxes amounted to 0.16 million euros, compared to 3.0 million euros profits in the corresponding nine months of 2021. In the third quarter of 2022, the profit/loss account before taxes recorded 0.4 million euro losses, compared to 0.2 million euro profits in the corresponding third quarter of 2021.
The total net borrowing for the nine months of 2022 amounted to 43.2 million euros, compared to 42.1 million euros, recording a decrease of 1.1 million euros, compared to 31/12/2021.
In the nine months of 2022 the company proceeded with investments amounting to 3.0 million euros, compared to 0.7 million euros in the corresponding nine months of 2021.
Marble exports in the first nine months of 2022 amounted to 96% of the company's turnover.

Respectively, on a consolidated basis for the first nine months of 2022:

The EBITDA index amounted to 4.5 million euros, compared to 7.6 million euros in the corresponding first nine months of 2021, showing a decrease of 41.2%. In the third quarter of 2022, EBITDA amounted to 1.1 million euros, compared to 1.0 million euros in the corresponding third quarter of 2021.

Earnings before Interest and Taxes (EBIT) for the nine months of 2022 amounted to 1.0 million euros, compared to 4.4 million euros for the corresponding nine months of 2021. In the third quarter of 2022, the results (losses) before Interest and Taxes (EBIT) amounted to 0.3 million euros, compared to 0.3 million euros profits in the corresponding third quarter of 2021.

Turnover amounted to 23.2 million euros, compared to 27.2 million euros in the previous period, showing a decrease of 14.8%. In the third quarter of 2022, turnover amounted to 6.4 million euros, compared to 7.7 million euros in the corresponding third quarter of 2021.
The results (losses) before taxes amounted to 0.1 million euros, compared to 2.8 million euros profits in the corresponding first nine months of 2021,. In the third quarter of 2022, the profit-loss account before taxes recorded 0.5 million euro losses, compared to 0.4 million euro profits in the corresponding third quarter of 2021.

On a consolidated basis, the total Net borrowing for the nine months of 2022 amounted to 43.2 million euros, compared to 43 million euros, recording aan increase of 0.2 million euros, compared to 31/12 /2021.

Effects of the macroeconomic environment on the financial figures of the company

At the given time, we are called to manage, in addition to the remains left by the pandemic, a new crisis, the energy one. We live in an era of very intense fluctuations and multiple problems that affect every type of business. The new increases in electricity and oil, factors that have recently become more pronounced due to the significant geopolitical developments in Ukraine, have increased the company's operating costs by 10%. Along with energy increases, large and sharp increases in raw material prices of more than 15% multiply our production costs further shrinking our profit margins. Also, within 2022, interest rate increases by the European Central Bank were added with the aim of indirectly controlling the explosive increase in inflation which is at the highest level in recent decades. The serious problems plaguing the supply chain are exacerbated by restrictions in China due to the pandemic and at the same time Russia's invasion of Ukraine and are disrupting the smooth flow of trade with huge delays in the delivery of our goods and with exorbitant sea surges transportation. In addition, the lock down of the Chinese market, the largest market for Greek marbles, has negatively affected the company's turnover, since in the first six months of 2022, the participation of our sales to China in our total sales was limited to only 30% of the turnover of our operations, from 60% in the corresponding period in 2021. The company has already covered some of the loss of sales in China by opening other markets, such as India, Egypt and Tunisia, which absorb lower quality marble. All the above geopolitical and social upheavals had a negative impact on the financial figures of the company in the first half of 2022.

Prospects - assessment of the development of activities during the fourth quarter of the year

The Management closely monitors the developments of the global market and estimates that it will limit the impact of revaluations, through the reduction of production costs, due to the better performance of the production process both qualitatively and quantitatively, a consequence of its investment program of the last three years. Indicative of the company's dynamism, despite the temporary problems in the Chinese market, is the significant increase in investments recorded in the financial results. During the first 9 months of 2022, investments quadrupled and reached 3 million euros from 0.7 million euros in the corresponding period of 2021. At the same time, from the second half of 2022 it gradually increased the prices of the company's products by approximately 12%, in order to cover its increased operating costs, a fact that will be reflected in the results of the last quarter of 2022. An optimistic message is coming from the Chinese market with the lifting of restrictive measures by the Chinese government due to the growing and ongoing backlash against the country's strict restrictions due to the pandemic. A new opening of the Chinese market is evident as our company receives increasing orders which exceed 3 million euros and will be executed by the end of the year. At the same time, customers are preparing to travel to Greece, submitting visa applications. Indicative of the normalization of the situation is the fact that the international marble exhibition held in Xiamen will take place this year as normal in early June, after three years of cancellations due to covid. The official organizer of the exhibition has already sent relevant information to the major Greek marble exporters. This particular exhibition brings together all interested marble buyers from the vast market of China. Meanwhile, while the Chinese market was experiencing the known problems, Iktinos managed to make up for much of the lost sales with sales mainly in India, Egypt and Tunisia, where exports tripled compared to the corresponding period in 2021. Movements have also been made in other markets, such as the United Arab Emirates, while the first results from the recent presence of Iktinos at the exhibition in Dubai can be seen. The UAE is the second largest market for processed Greek marbles with a share of 15%. The presence of Iktinos in this exhibition has been stable for more than 10-15 years. The result of these efforts is that the participation of third countries, excluding China, in Iktinos exports rose from 40% to 70%. In Greece, Iktinos obtained a license and started mining operations at a new quarry site in the area of Drama with new white dolomite marble that has great appeal in international markets Thus, our turnover is predicted to be improved compared to the first half of 2022. It is estimated that the decrease in turnover in 2022 will not exceed 10% compared to 2021. At the same time, the company has sufficient cash available and appropriate financial tools - financing lines from the banking system to be able to cope with current financial obligations.