Annual Report of the BoD

Annual Report 2012

<Investments, disposals, mergers and acquisitions

In the course of 2012, the Group’s capital expenditure, excluding acquisitions, stood at €51 million a decrease of 11% compared to 2011.

In the course of 2012, the Group disposed of fixed assets of a net book value of €26 million. The bulk of these disposals was undertaken by the Group in the USA where it sold machinery and fixed track transportation units, of a total net book value of €24 million.

The total amount of the intangible assets' impairment, excluding goodwill, stood at €5.0 million. The amount of €3.1 million relates to impairment of mining rights in Greece and the remaining amount of €1.9 million relates to impairment arising from the revaluation in fair value of Carbon Emissions Rights (CER) that the Group possessed as at 31.12.2012.

On 21.3.2012, the Group exercised the call option held for the acquisition of a non-controlling stake in Terret Enterprises Ltd.

On 20.6.2012 the Group's subsidiary Antea Cement SHA completed a €22 million share capital increase. The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), who constitute the non-controlling interest in Antea Cement SHA, participated in the capital increase in the amount of €8.8 mllion.

On 27.6.2012 the Group announced a €50 million investment undertaken by the International Finance Corporation (IFC) in the Group's subsidiaries in the F.Y.R. of Macedonia, Serbia and Kosovo. The transaction resulted in IFC holding, through its participation in Titan Cement Cyprus Ltd., a Titan Group subsidiary company, a minority stake of approximately 11.49% in the Group's operations in the above countries.