Impairment assessment of investments in Subsidiaries (Separate Financial Statements)

At 31 December 2017, the Company had investments of€778.805 thousand, which are accounted for at costadjusted for any impairment where necessary.

Management annually assesses any indications ofimpairment of the Company’s investments insubsidiaries. In order to establish whether animpairment provision is required, the Companydetermines the amount of impairment as the differencebetween the recoverable amount and carrying value ofthe investment.

Management has determined the recoverable amount ofeach investment to be the higher amount between itsfair value less cost of sale and its value in use, accordingto the provisions of International Accounting Standard36.

The determination of the value in use is based onmanagement’s estimates and assumptions such as thefuture cash flows of each company, its futureperformance and the discount rate used. Furthermore,these assumptions vary due to the different marketconditions in the countries in which the Group operates.

We focused on this area due to the significance ofinvestments in subsidiaries and due to the estimatesand judgments applied by management in the processof impairment testing.

In the year ended 31 December 2017 an impairmentcharge of €178 thousand was recognized in the incomestatement line “Losses from participation andinvestments” with respect to the Company’sinvestments in Titan Cement International Trading S.A.and Aeolian Maritime Company. (Notes 1.2Consolidation and 14. Principal subsidiaries, associatesand joint ventures)

We evaluated management’s assessment andconclusions as to whether any indication ofimpairment of the Company’s investments insubsidiaries exists.

Following the completion of the proceduresapplicable to the consolidated financial statements,we assessed the analysis prepared by management,by which the recoverable amounts of CGUsdetermined in the impairment tests of goodwillrelated to the corresponding investments insubsidiaries.

We performed the procedures described in the keyaudit matter relating to “Impairment assessment ofgoodwill”, for the investments in subsidiarieswhereby an indication of impairment exists.

From the testing procedures performed above, wenoted no exceptions. Furthermore we also validatedthe appropriateness of the related disclosuresincluded in Note 14 - Principal subsidiaries,associates and joint ventures.

Recoverability of Deferred Tax assets (Consolidated financial statements)

As disclosed in Note 8 «Income tax expense» and Note18 «Deferred income taxes» to the consolidatedfinancial statements, the Group’s deferred tax positionas at December 31, 2017 includes a deferred tax assetamounting to euro 80,8 million attributable to taxlosses euro 284,5 million.

Management assesses at each reporting period theexpected utilisation of deferred tax assets consideringthe likelihood of expected future taxable profits inaccordance with the approved budgets.

We focused on this area due to the significance ofrelated amounts in the consolidated financialstatements and judgment required on the part ofmanagement as to the likelihood of future taxableprofits.

With the assistance of PwC tax specialists weperformed the following procedures with regard tothe recoverability of deferred tax assets:

• We assessed the available tax losses that can becarried forward to offset future taxable profits.
• We considered the expiry periods and with anyapplicable restrictions in recovery of tax losses forsignificant tax jurisdictions.
• We assessed the future taxable profits determinedby management, by testing the business plans andexpected annual taxable profit growth rates, bycomparing with historical achieved results andindustry forecasts.

Based on our procedures we noted no exceptions inthe recoverability of deferred tax assets attributableto tax losses and disclosures in the consolidatedfinancial statements to be adequate.

Other information

The members of the Board of Directors are responsible for the Other Information. The Other Information, whichis included in the Annual Report in accordance with Law 3556/2007, is the Annual report of the Board of Directors, Corporate Governance Report, Explanatory report of the Board of Directors, Statement of Members ofthe Board of Directors and the Non-financial statements (but does not include the financial statements and ourauditor’s report thereon), which we obtained prior to the date of this auditor’s report.

Our opinion on the separate and consolidated financial statements does not cover the Other Information andexcept to the extent otherwise, explicitly stated in this paragraph of our Report, we do not express an audit opinionor other form of assurance thereon.

In connection with our audit of the separate and consolidated financial statements, our responsibility is to readthe Other Information identified above and, in doing so, consider whether the Other Information is materiallyinconsistent with the separate and consolidated financial statements or our knowledge obtained in the audit, orotherwise appears to be materially misstated.

We considered whether the Board of Directors report includes the disclosures required by Codified Law2190/1920 and the Corporate Governance Statement required by article 43bb of Codified Law 2190/1920 hasbeen prepared.

Based on the work undertaken in the course of our audit, in our opinion:

• The information given in the the Board of Directors’ report for the year ended at 31 December 2017 isconsistent with the separate and consolidated financial statements,
• The Board of Directors’ report has been prepared in accordance with the legal requirements of articles 43aand 107A of the Codified Law 2190/1920,
• The Corporate Governance Statement provides the information referred to items c and d of paragraph 1 of article 43bb of the Codified Law 2190/1920.

In addition, in light of the knowledge and understanding of the Company and Group and their environment obtained in the course of the audit, we are required to report if we have identified material misstatements in theBoard of Directors’ report and Other Information that we obtained prior to the date of this auditor’s report. Wehave nothing to report in this respect.