DIMOIL SA

STRATEGIC PLANNING STUDY

MAY 2011

2

CONTENTS

1 INTRODUCTION 3 2 MACROECONOMIC ENVIRONMENT 4 2.1 DEMOGRAPHIC ANALYSIS OF GREECE 4 2.2 MACROECONOMIC ENVIRONMENT 5 2.3 THE PETROLEUM PRODUCTS MARKET 6 2.3.1 HISTORICAL REVIEW OF THE GREEK PETROLEUM PRODUCTS MARKET 6 2.3.2 DOMESTIC MARKET DEPENDENCE ON PETROLEUM 9 2.3.3 STRUCTURE OF THE DOMESTIC MARKET 10 2.3.4 MARKET SHARES 12 2.3.5 FINANCIAL ANALYSIS OF THE MARKET 13 2.3.6 PROBLEMS, OPPORTUNITIES AND RECENT DEVELOPMENTS 16 3 BACKGROUND AND CURRENT STATE 19 3.1 THE COMPANY: BACKGROUND – OBJECTIVE OF WORKS 19 3.2 FACILITIES 19 3.3 MANPOWER 21 3.4 MAJOR SUPPLIERS AND CUSTOMERS 21 3.5 SUMMARY OF PAST FINANCIAL DATA 22 3.6 LATEST DEVELOPMENTS – CURRENT STATE 26 3.7 OBSERVATIONS - CONCLUSIONS 27 4 METHODOLOGY 28 5 STRATEGY 29 6 FINANCIAL MODEL ASSUMPTIONS 31 6.1 2009 BALANCE SHEET ADJUSTMENTS 31 6.2 RESULTS 2010-2014 31 6.3 ASSETS 2010-2014 35 6.4 LIABILITIES 2010-2014 37 6.5 SUMMARY FINANCIAL DATA 2010-2014 39 7 CONCLUSION 40 8 APPENDIX 42

3

1 INTRODUCTION The aim of this study is to determine the viability of the company based

on its internal needs and the competitive forces, in the new enlarged

environment of the single European market. This is followed by an

exploration of the possibilities, conditions, and prospects for its development.

It thus sets out the strategy of DIMOIL SA for the period 2009-2013.

The study is structured as follows:

Section 2 is an analysis of the macroeconomic environment in which

the Company operates. In particular, it provides data and information

on the demographics of Greece, the main macroeconomic indicators of the Greek economy and information on the petroleum products market,

in which the Company operates.

Section 3 presents information on the history, scope of operations, the ownership structure, and management structure of the company,

information on its staff and customers as well as the display and

analysis of the company’s historical financial data.

Section 4 describes the methodological approach of this business plan.

Section 5 formulates the main strategic directions of the company

during the next six years.

Section 6 details the financial model’s conditions. Additionally, it

provides an overview of the basics of financial reporting for the next

six years.

Section 7 summarizes the conclusions regarding the company’s results,

in conjunction with the consistency check of its results compared to

past performance and the corresponding market performance.

Section 8 is the Appendix of the study.

4 2 MACROECONOMIC ENVIRONMENT

The population growth in the Greek territory, the evolution of economic fundamentals such as GDP, inflation, consumer spending and the trade

balance of fuel, combined with statistical figures of the petroleum

products industry are the main variables affecting the studied market.

2.1 DEMOGRAPHIC ANALYSIS OF GREECE

In early 2001, according to the last census, the Greek population stood at 11 million inhabitants, representing a growth rate of around 6.4% for the

period 1991-2001 (see Figure 1). A characteristic of the Greek population

is the increasing percentage of people over 64 years, and the concurrent

reduction of the percentage of those aged up to 14 years (see Chart 2).

Chart 1

Source: NSS

Chart 2

Source: NSS

0 2 4 6 8

10 12

1971 1981 1991 2001 2002 2003

DEVELOPMENT AND CATEGORIZATION OF POPULATION BY SEX

WOMEN MEN

DEVELOPMENT AND CATEGORIZATION OF POPULATION BY AGE

0% 10% 20% 30% 40% 50% 60% 70%

1971 1981 1991 2001

0-14 YRS 15-64 YRS 64 YRS AND ABOVE

5

The majority of the population is concentrated in the greater Athens area

(4 million inhabitants), followed by Macedonia and the Peloponnese with

2.3 million and 1.2 million inhabitants respectively.

According to recent estimates by the NSS, the total population of

permanent residents in Greece on 1st January 2011 was 11.5 million,

51% women and 49% men. It is worth noting that in recent years, migratory flows have increased

sharply and rapidly in our country. According to the 2001 census, our

country hosts 762.191 immigrants, 415.552 men and 346.639 women,

corresponding to 7% of the population. However, according to recent

estimates, this figure has now exceeded 12%, with the majority of immigrants concentrated in eastern mainland Greece (Attica, Viotia and

Fthiotida) and in the north-eastern and southern Peloponnese.

2.2 MACROECONOMIC ENVIRONMENT

Despite the recent debt crisis, macroeconomic environment in Greece has

been positive by up to 2008, helped by the Olympics in 2004, which

accelerated the pace of GDP growth to among the highest of the European Union. Inflation has declined significantly (from 8.2% in 1996

to 2.9% in 2007), due mainly to the country’s effort to achieve

convergence with the corresponding European Union average, has been

relatively stable since the single currency was adopted.

Table 1 lists key macroeconomic indices of the Greek economy for the

period 2004-2008.

Table 1 : Macroeconomic indices 2004-2008

DEVELOPMENT OF SELECT MACROECONOMIC INDICES 2004-2008

2004 2005 2006 2007 2008 GDP (€ bn) at current annual values 185,85 197,65 213,21 228,18 242,95

% real change in GDP 4,9 2,9 4,5 4,0 2,9

Inflation % 2,9 3,5 3,2 2,9 4,2 Consumer spending (€ bn) 128,53 138,95 150,63 160,16 170,53

Trade balance of fuel (€ bn) -4,51 -6,63 -8,76 -9,22 -12,15

Source: NSS

The negative economic climate since the end of 2007 has brought about

serious losses, particularly in money and capital markets. Inflation surged,

in both developed, but especially in developing economies, influenced

decisively by the increase in fuel, goods, and foodstuffs prices. Furthermore, the forecast growth rates were continuously revised

downward, since the main characteristic of the current international

6

economic situation is an unusual uncertainty that compromises any direct

future prediction.

The worsening economic climate in Greece is in line with similar

developments in the relevant index in the S.E. European Union, close to

the lowest level in years. However, Greek economy remains introverted

(foreign trade represents a low percentage of GDP). This year too, the dynamics of domestic demand, albeit weak, will form

the key instrument of the national Greek economy. In 2008, growth in

Greece stood at 3%, while according to estimates of international and

domestic organizations (EU Commission, OECD, Bank of Greece), Greek

GDP was shrink in 2009 - for the first time since 1993 - by 1.3%, as domestic demand drops due to tightening credit and the breakdown of

trust.

2.3 THE PETROLEUM PRODUCTS MARKET

2.3.1 HISTORICAL REVIEW OF THE GREEK PETROLEUM

PRODUCTS MARKET

As with many other sectors in Greece, the petroleum distribution market preceded the building of the required infrastructure for the production of

these products by several years. The presence of the first distributors of

petroleum products in Greece dates back to before the 1950s, when

organised distribution networks made their first appearance package, featuring central and regional storage facilities, vessels and road tankers.

The first Greek refinery, in Aspropyrgos, was built in the 1950s by a

consortium of public and private funds. After several years of operation, the refinery passed into the hands of the government, which maintains

significant shares to date. The presence of this refinery alone

revolutionised the previous de facto trade practices, allowing distribution

companies to buy small quantities of petroleum products and serve their

distribution networks with local petroleum products. In the meantime, two new refineries were added to the country’s production capacity: the

Motor Oil Refinery in Aghioi Theodoroi of Corinth and the Petrola refinery

in Elefsina, in the early 1970s. These three refineries, and another in

northern Greece, founded in the 1960s, created the conditions for developing a national energy policy that would not only serve the

immediate needs of consumption, but also later meet EU requirements on

emergency stocks. Through mergers, the number of independent Greek

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refineries is now reduced to two, with Hellenic Petroleum (ELPE)

dominating the market, after the integration of Esso Pappas (Thessaloniki)

and the merger with Petrola.

Up to August 1992, retail prices in Greece were fully supervised by the

State. Thus, distribution companies were forced to operate in a regime of

very small and controlled margins. The reason the Greek State imposed this regime from the outset was that it did not wish to cede pricing in this

key sector to a market structure that, at the time, featured all the

characteristics of an oligopoly, especially in the area of distribution. Today,

this regime has been abandoned in alignment with the general EU

petroleum products trade scheme, and prices are set freely by the petroleum products trading companies and gas stations.

The geographic dispersion of the centres of consumption in Greece,

particularly the existence of the archipelago in the Aegean, required the operation of many, small storage facilities, which serve as hubs for the

distribution of these products. The supply of these facilities, which were

designed to allow supplies by sea, led to the creation of a local fleet of

tankers whose task was, and still is, to fill the tanks of regional facilities, at favourable transportation costs.

While the stocks of regional facilities were replenished - and largely still

are - by sea, the corresponding supply of the gas station network in the

province, but also in major cities, requires 1800 large road tankers, of which 500 belong to petroleum products companies. This significant fleet

of vehicles is supplemented by smaller tankers, mainly for the distribution

of diesel.

Until very recently, the major distributors of petroleum products had

avoided operating in the field of maritime transport in Greece, but there

are indications that, given the increased demands for protection of the

marine environment, some companies already start acquiring ships. Contrariwise, many companies in the sector chose to keep fleets of road

tankers, to achieve a certain balance between vehicle companies on the

one hand and public-use tanker truck owners on the other. There is long-

standing rivalry between commercial companies and the Private Tanker Truck Owners’ Federation.

Given that Greek refineries produce according to international standards,

the decisions by companies trading and distributing petroleum products to

buy from domestic producers or import, are significantly influenced by factors such as price, transportation costs, the cost of maintaining

reserves, quality of service and of course ensured continuity and

consistency in the supply of their networks. Another important factor is

8

the trading companies’ risk aversion to the value fluctuation of stocks, to

which they are exposed when importing.

Within a relatively short time, Greek petroleum products companies

managed to obtain a significant market share from foreign petroleum

products companies, exploiting the limited pricing flexibility of their

competition. Any further market share detachment from large companies though is to become increasingly difficult as the Greek companies

approach these in size, but mainly due to adoption of defence policies by

foreign companies, since this market is very competitive, especially in the

part concerning sales to retail gas stations.

The petroleum-trading sector in Greece employs approximately 2.500

people directly, but the number of indirectly employed in their trading and

distribution is estimated at 100.000 people. As in other countries, the

benefits for the wider Greek economy from the good functioning of this sector are important, as is the corresponding impact of any problems in

this area, because of the direct and significant influence fuel prices exert

on all sectors of the economy.

At this point, we believe it is useful to present a summary table with the

main changes in the Greek oil market from 1984 to today.

Table 2: Main changes in the Greek oil market

1984. EKO buys all ESSO Papas shares and acquires the control of all the multinational’s plants.

1998. Full absorption of the facilities and gas stations of MOBIL OIL HELLAS from BP HELLAS.

1999. TOTAL merges with CYCLON.

2000. International exchange of markets between TEXACO & SHELL (Greece-UK) with complete absorption of the first company’s gas stations by the latter.

2001. Merger-acquisition of the facilities and gas of “C. Mamidakis SA” by “EKO-ELDA SA”.

2003. Petrola Hellas SA merges with ELPE by acquisition

2009. Acquisition of all commercial activities and storage facilities of BP Hellas by Hellenic Petroleum.

2011. Acquisition of all commercial activities and storage facilities of SHELL Hellas by

Moto Oil.

9

2.3.2 DOMESTIC MARKET DEPENDENCE ON PETROLEUM

Greece is one of the European countries noted by high dependence on

imported oil. Despite the possible existence of oil in various parts of

Greece and the small oil extraction unit in Prinos, Greece, at the moment,

is not considered an oil producer. Instead, it imports all the oil it uses, albeit today a large percentage of imported oil is crude, while, fifty years

ago all imports were in the form of refined petroleum products. The main

countries of origin of imported crude oil to Greece are Iran and Russia,

while smaller quantities come from Saudi Arabia, Libya, Kazakhstan, and other oil producing countries.

Although Greece’s energy dependence is directly comparable to other

European countries, such as Portugal, Spain, or Italy, and is possibly

slightly better because of the extensive use of lignite for power generation, it suffers from poorly differentiated energy sources, and is

thus dependent mainly on oil.

Chart 3 shows that petroleum accounted for most of the gross energy

demand in Greece in 2007. This extensive energy dependence on imported oil is not expected to change in the immediate future given the

low level of renewable energy use in Greece.

Chart 3: Energy sources in gross consumption in Greece, 2009

Make-up of energy sources in

gross consumption in Greece

2009

Oil 58%

Lignite and coal

27%

Renewable energy sources 4%

Natural gas 10%

Imported electricity

1%

Lignite and coal

Oil

Imported electricity

Natural gas

Renewable energy sources

10

2.3.3 STRUCTURE OF THE DOMESTIC MARKET

The domestic oil market operates on three levels: refining, wholesale trading and retailing. Diesel and heating diesel are the most popular

products in Greece, followed by petrol, while the largest consumer is the

transport sector.

Chart 4 shows the oil value chain from the perspective of the Greek

market. We see that part of finished petroleum products consumed in the

Greek market, is imported directly from international oil markets, without going through the Greek refining companies. Simultaneously, part of the

oil produced in Greece bypasses the oil trading companies.

Chart 4: The oil value chain in the Greek market

Α. Refining Market In the refining market, domestic and foreign refiners and importers of oil

sell petroleum products to domestic oil trading companies. Following the

absorption of Petrola by the Hellenic Petroleum group, the Greek oil

refining market has few players. Hellenic Petroleum owns the refineries of Aspropyrgos, Elefsina and Thessaloniki, while the refinery at Aghioi

Theodoroi in Corinth is owned by Motor Oil. Today, the capacity of

11

refining units covers domestic consumption of all products. In 2007, oil

imports were reduced to 29% of domestic consumption, 20% less than

exports (in terms of tonnes of oil equivalent).

The operation of refineries affords them EBIDTA of around 4% -5%. It is

worth noting that this productive sector is obliged to sell exclusively to

trading companies and large end-consumers and not directly to consumers. The financial results of refineries, however, vary by activity

and sometimes part of product sales on the domestic market may be in

the red, as it is significantly affected by the valuation of stocks, whose

value is directly linked to changes in international prices of crude oil and

the size of the international refining margins.

Β. Wholesale trading

In wholesale trading of petroleum, trading companies sell petroleum

products to gas stations. The wholesale market in the oil sector counts twenty (22) companies, and there is a significant number of smaller

companies that either sell a limited variety of products or specialize in

services to a specific type of customer.

The market is noted by the heterogeneity of firms, both in size and in

terms of purpose. The degree of industry concentration is high, although

in recent years it is marking a downward trend, reflecting the

redistribution of market shares to smaller trading firms.

Another feature of the market is the small gross profit margins

businesses operate, which were smaller than all other trade sectors for

the period 2005-2007 (see Annual Greek Commerce Report 2008), at

9.5%.

Regarding the regulatory framework, the Competition Commission’s

recent recommendations have proposed measures for the functioning of

wholesale trading, which are already applied and relate to the obligation of companies issuing invoice discounts to:

- establish objective nationwide criteria for their issuance

- notify the Competition Commission of the criteria and conditions

under which discounts are provided - indicate the discount amount (Euro/litre) on their sales invoices.

C. Retail market

The retail sector consists of a large number of gas stations, 8.200 in mid-

2010. Given the population of Greece, this is the largest number in

Europe, based on a ratio of gas stations per 1 million inhabitants, and

12

indeed more than twice the corresponding European average (743

stations/1 million inhabitants compared with 260/1 in Europe), according

to the NOIA (National Oil Industries Association).

The retail sector in Greece is fragmented, due to the topography of the

country, and the general trend for self-employment in the Greek economy.

As in the case of oil trading companies, retail companies profit initially

from a surcharge on the price at which they buy. As evident, the location

of the station plays a particularly important role in its operation. Each

station has some geographic monopoly characteristics, which may enable

it to have lower – or higher prices - compared with neighbouring stations.

2.3.4 MARKET SHARES

The Greek oil market is highly concentrated, as the five largest fuel

marketing companies control 56.00% of total turnover, which in 2010

amounted to about € 15.20 billion, marking an increase of 30.00% compared to 2007, when it amounted to € 11.70 billion.

According to a Stat Bank survey, despite the fact that 70 companies

operate in the Greek oil market, six of them control 63% of a pie worth € 14 billion in 2008.

The following Table shows the market shares of the fifteen largest

companies operating in the oil market for the years 2005-2008.

Table 3: Market shares of the petroleum market companies COMPANY 2005 2006 2007 2008 ΕΚΟ-ΕLDΑ 17,30% 17,20% 16,77% 16,14% SHELL 15,50% 14,90% 14,10% 13,11% BP 15,50% 16,70% 15,44% 9,87% JET OIL 7,60% 7,60% 7,87% 9,05% AEGEAN 6,00% 7,00% 7,87% 7,96% AVIN 8,50% 8,20% 8,27% 7,20% ΕLΙΝ 5,00% 5,50% 6,00% 5,25% REVOIL 4,20% 4,90% 5,17% 4,04% ΕΤΕΚΑ 3,40% 3,60% 3,82% 3,77% CYCLON 1,90% 2,30% 2,46% 2,82% SILKOIL 3,50% 3,40% 3,27% 2,46% KAOIL 2,20% 2,10% 2,02% 1,46% DRACOIL 2,40% 2,20% 2,25% 1,44% SUNOIL 1,10% 1,10% 1,24% 0,87% KMOIL 0,80% 0,50% 0,82% 0,62% Sourse: STATBANK

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2.3.5 FINANCIAL ANALYSIS OF THE MARKET

Total sales for the 70 largest traders of petroleum increased by 21.4% in

2008 while their overall profitability dropped sharply by 69% compared

with 2007. This result comes from the nationwide STAT BANK survey

according to which the total sales of 70 companies rose from 11.7 billion in 2007 to 14.2 billion Euros in 2008. Accordingly, their overall profits fell

from 122.1 million Euros in 2007 to 37.9 million in 2008. In essence, oil

traders further reduced their average net profit margin from 1.05% in

2007 to 0.27% in 2008.

EKO was first in terms of turnover (it belongs to Hellenic Petroleum -

ELPE), which after a 14.8% increase, achieved a turnover of 2.28 billion

Euros. The company, however, marked a sharp drop in profits of 88%, which dropped to 2.3 million Euros. On the positive side, however, it

marked a significant reduction of 15.6% in total liabilities.

Shell was in second place, marking considerable losses - over 14 million –

compared to its very high profits in 2007.

Third in terms of turnover is BP, which showed an increase in turnover of

11%, reaching 1.4 billion Euros. Nevertheless, the company’s profits of

47.3 million Euros in 2007 fell to 14.8 million.

With 620 gas stations, Jetoil increased its sales by 36% and its net profit

from 4 million in 2007 to 5.7 million in 2008.

Aegean Oil is in the fifth position in terms of turnover (about 1.1 billion)

and increased its profitability by 5.2%.

MOTOR OIL’s Avin is marking a very positive course. The company

increased its profitability by 156%.

Elin Oil and Revoil are next on the list of company sales. Elin experienced

soaring profits while Revoil remained at high levels of profitability.

The financial results of the 70 largest oil traders are shown in the table

below.

14

Table 4: Key figures of 70 petroleum market companies, 2007-2008 (Sums in Euros)

CO

MP

AN

Y N

AM

E

TU

RN

OV

ER

20

07

TU

RN

OV

ER

20

08

CH

AN

GE

20

08

/2

00

7%

PR

OFIT

BE

FO

RE

TA

XE

S 2

00

7

PR

OFIT

BE

FO

RE

TA

XE

S 2

00

8

CH

AN

GE

20

08

/2

00

7%

NE

T P

RO

FIT

MA

RG

IN

20

08

TO

TA

L O

WN

FU

ND

S 2

00

7

TO

TA

L O

WN

FU

ND

S 2

00

8

TO

TA

L

LIA

BILIT

IE

S

20

07

TO

TA

L

LIA

BILIT

IE

S

20

08

DE

BT

EQ

UIT

Y

RA

TIO

20

07

DE

BT

EQ

UIT

Y

RA

TIO

20

08

ΕΚΟ ΕLDΑ SA 1.991.653.000 2.285.945.000 14,8% 19.189.000 2.317.000 -87,9 0,10% 228.877.000 223.427.000 380.699.000 321.249.000 1,66 1,44

SHELL HELLAS SA 1.604.825.990 1.856.721.069 15,7% 21.122.778 -14.117.291 - -0,76% 97.712.105 94.006.662 294.390.748 258.285.082 3,01 2,75

BP HELLAS SA 1.257.975.751 1.397.522.153 11,1% 47.259.326 14.780.552 -68,7 1,06% 252.478.043 229.335.561 247.719.003 206.236.533 0,98 0,90

MAMIDOIL-JETOIL SA 942.735.000 1.281.047.000 35,9% 4.018.000 5.724.000 42,5 0,45% 59.095.000 62.976.000 299.955.000 306.228.000 5,08 4,86

EGION OIL SA 831.823.347 1.127.308.778 35,5% 1.423.616 1.497.722 5,2 0,13% 14.764.179 16.196.113 134.247.224 157.969.707 9,09 9,75

AVIN OIL SA 826.340.000 1.019.054.000 23,3% 985.000 2.528.000 156,7 0,25% 13.725.000 15.858.000 177.868.000 165.838.000 12,96 10,46

ΕLΙΝΟΙL SA 606.937.000 743.920.000 22,6% 115.000 1.738.000 1411,3 0,23% 34.297.000 35.677.000 114.191.000 102.810.000 3,33 2,88

REVOIL SA 445.330.608 571.993.228 28,4% 2.703.732 2.118.280 -21,7 0,37% 19.186.605 19.803.284 38.255.738 45.440.511 1,99 2,29

ΕΤΕΚΑ SA 404.611.445 533.339.940 31,8% 609.276 715.506 17,4 0,13% 5.057.575 5.533.894 52.523.244 55.533.012 10,39 10,04

CYCLON HELLAS SA 280.511.000 399.245.000 42,3% 3.105.000 3.675.000 18,4 0,92% 25.526.000 27.748.000 65.480.000 82.450.000 2,57 2,97

SILK OIL SA 286.476.781 348.756.506 21,7% 1.022.602 910.451 -11,0 0,26% 2.662.193 2.916.493 40.405.576 40.446.756 15,18 13,87

ERMIS SA 261.308.480 273.052.004 4,5% 2.760.103 2.958.221 7,2 1,08% 5.022.216 5.778.002 9.677.703 7.560.967 1,93 1,31

MYRTEA SA 200.879.613 225.827.583 12,4% 3.095.947 3.811.436 23,1 1,69% 2.194.283 1.617.175 7.808.898 8.223.890 3,56 5,09

ELPETROL SA 176.977.193 219.821.179 24,2% 40.328 -9.658.050 - -4,39% 2.805.463 -6.582.587 32.936.290 36.011.239 11,74 -5,47

KAOIL KOUTLA BROS LLC 158.624.350 206.961.765 30,5% 685.892 94.987 -86,2 0,05% 2.912.894 4.269.107 19.445.469 23.432.494 6,68 5,49

DRACOIL SA 176.662.324 204.432.702 15,7% -1.384.614 -1.979.315 -43,0 -0,97% 2.122.587 290.640 43.477.098 43.375.744 20,48 149,24

SEKA SHIP FUEL SUPPLY STATIONS SA

123.948.106 144.063.944 16,2% 561.703 2.826.317 403,2 1,96%

3.943.479 5.235.798 19.943.873 8.678.125 5,06 1,66

SEKAVIN FUEL SUPPLY STATIONS SA

148.415.891 132.250.127 -10,9% 549.499 1.102.323 100,6 0,83%

4.907.411 4.822.241 22.126.154 11.259.493 4,51 2,33

SUNOIL SA 100.874.292 123.880.932 22,8% 69.712 -3.182.912 - -2,57% 2.145.758 -950.276 20.517.950 27.018.708 9,56 -28,43

GALLON OIL SA 40.426.055 94.690.146 134,2% -220.550 615.081 - 0,65% 4.285.519 5.107.037 4.515.600 6.949.319 1,05 1,36

MOBIL OIL HELLAS SA 75.606.504 90.021.341 19,1% 6.398.171 6.477.248 1,2 7,20% 15.258.056 20.303.306 10.657.005 6.261.060 0,70 0,31

KMOIL SA 73.220.309 88.033.699 20,2% 77.331 15.557 -79,9 0,02% 3.165.583 3.168.049 15.404.840 15.362.706 4,87 4,85

ARGO GREEK PETROLEUM PRODUCTS COMPANY SA

60.408.624 74.121.085 22,7% 634.606 439.533 -30,7 0,59%

4.705.235 5.142.427 11.493.209 11.987.361 2,44 2,33

DIMOIL SA 39.616.909 55.943.902 41,2% -457.795 23.422 - 0,04% 2.135.167 2.598.481 33.997.078 46.229.452 15,92 17,79

NETOIL SA 36.558.914 47.839.199 30,9% 254.064 1.033.387 306,7 2,16% 2.079.686 2.420.918 16.279.832 20.752.885 7,83 8,57

ELPETRA ENERGY SA 37.114.190 45.528.740 22,7% -31.822 123.508 - 0,27% 28.178 128.764 2.591.511 6.668.534 91,97 51,79

CHEVRON SHIPPING PRODUCTS

HELLAS SA 30.780.215 34.811.911 13,1% 1.174.105 -398.042 -

-1,14% 1.070.491 672.449 17.011.419 21.134.003 15,89 31,43

SAMERKAS SA 23.561.220 33.422.660 41,9% 574.858 587.841 2,3 1,76% 2.906.073 2.957.488 20.325.599 28.440.701 6,99 9,62

MEDITERRANEAN OIL SA 29.873.304 32.769.375 9,7% 15.915 5.785 -63,7 0,02% 3.691.584 3.670.193 6.690.467 7.385.090 1,81 2,01

ATLANTIS SA 26.544.954 32.026.391 20,6% 280.014 285.113 1,8 0,89% 4.412.821 4.426.814 12.996.765 13.082.264 2,95 2,96

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LIOMAS SOT. SA '' PETROHEAT '' 26.622.755 25.393.965 -4,6% -324.406 70.163 - 0,28% -85.451 374.712 3.353.950 6.872.028 -39,25 18,34

ATHENS OIL SA 18.837.796 23.876.819 26,7% 259.986 272.941 5,0 1,14% 921.143 1.065.725 8.349.528 6.706.728 9,06 6,29

AL OIL LLC 14.618.612 20.612.920 41,0% 153.680 592.936 285,8 2,88% -659.158 -135.950 3.059.614 2.912.578 -4,64 -21,42

DIMKA SA 15.073.464 19.348.704 28,4% 1.718.086 2.002.642 16,6 10,35% 2.338.246 3.062.122 9.220.593 10.524.238 3,94 3,44

TOTAL HELLAS SA 17.142.545 18.598.722 8,5% 3.026.446 2.642.092 -12,7 14,21% 1.314.328 1.314.328 6.472.894 5.995.702 4,92 4,56

ALIAGAS SA 13.117.497 17.683.837 34,8% 49.291 57.777 17,2 0,33% 1.378.795 1.365.409 8.865.595 13.485.502 6,43 9,88

PETRELEA LAVRIOU SA 1.263.214 16.763.383 1227,0% -59.567 235.121 - 1,40% -14.609 231.151 412.330 3.051.917 -28,22 13,20

CABI GAS SA 13.151.186 16.174.860 23,0% 129.210 195.194 51,1 1,21% 1.534.799 2.066.187 7.808.349 8.422.958 5,09 4,08

APIROTAN SA 9.236.484 13.773.223 49,1% -173.201 318.071 - 2,31% 2.458.451 2.556.928 7.326.351 9.165.970 2,98 3,58

THESSALIKA PETRELEA SA 9.750.355 13.113.858 34,5% 139.044 199.139 43,2 1,52% 781.518 394.481 885.281 4.425.063 1,13 11,22

CHEVRON HELLAS SA 26.750.698 11.763.612 -56,0% -1.626.271 34.069 - 0,29% 14.798.955 14.833.025 2.857.420 1.944.013 0,19 0,13

SHELL HELLAS LLC 10.317.656 10.650.437 3,2% 199.899 265.357 32,8 2,49% 292.638 302.843 768.858 694.180 2,63 2,29

PYRSOS SA PETROLEUM 7.879.534 8.925.136 13,3% 17.249 9.435 -45,3 0,11% 226.390 276.016 790.710 605.407 3,49 2,19

INTERNATIONAL SERVICE SA 8.755.068 8.845.655 1,0% 1.026.465 1.037.727 1,1 11,73% 2.239.221 2.278.628 2.159.690 2.111.424 0,96 0,93

PETROSTAR SA 12.014.374 8.759.200 -27,1% 44.837 84.544 88,6 0,97% 324.169 327.378 748.285 339.145 2,31 1,04

JEMOIL SA 7.198.741 8.673.678 20,5% 42.332 29.489 -30,3 0,34% 281.256 291.338 1.310.511 1.119.323 4,66 3,84

EUROTHERM SA 2.783.289 8.466.828 204,2% 6.601 40.632 515,5 0,48% 146.276 186.908 345.448 1.221.334 2,36 6,53

TRIGON GAS SA 6.680.117 8.445.495 26,4% 142.816 339.437 137,7 4,02% 972.119 948.225 3.727.668 4.032.607 3,83 4,25

ATHEA SA 4.407.255 8.256.428 87,3% 73.594 204.240 177,5 2,47% 2.672.033 2.701.211 3.333.166 4.061.633 1,25 1,50

RIZOUDIS GEORGIOS SA 6.760.813 7.935.276 17,4% -440.199 -105.533 76,0 -1,33% 519.875 412.461 3.572.565 3.112.395 6,87 7,55

KOUTSOBOS ELASTIKSA SA 7.423.848 7.857.970 5,8% 12.928 2.436 -81,2 0,03% 352.714 353.932 8.346.949 9.138.774 23,66 25,82

BIEM AUSTRIA OIL SA 6.450.818 7.333.158 13,7% 329.420 130.441 -60,4 1,78% 2.861.539 3.746.420 5.704.272 7.438.641 1,99 1,99

KASIMATIS I. SA 7.908.169 7.197.437 -9,0% 54.373 13.016 -76,1 0,18% 300.412 304.769 4.501.559 4.547.631 14,98 14,92

CHALAZIA A. SA 6.430.327 6.456.739 0,4% 11.279 12.589 11,6 0,19% 534.676 566.893 1.664.501 2.254.831 3,11 3,98

KAKLAMANOS ANASTASIOS LLC 4.721.352 5.932.730 25,7% 34.843 -92.029 - -1,55% 203.955 180.838 2.308.950 2.776.179 11,32 15,35

ASROPYRGAZ SA 5.364.474 5.877.151 9,6% 272.752 282.641 3,6 4,81% 1.218.490 1.353.705 1.468.862 1.393.484 1,21 1,03

KOTOULAS BROS SA 3.889.740 5.694.253 46,4% 7.000 59.110 744,4 1,04% 865.250 1.069.805 1.038.271 1.479.391 1,20 1,38

SAVVIDIS SA 4.621.329 4.878.681 5,6% 83.672 49.086 -41,3 1,01% 581.790 728.049 2.131.838 2.413.676 3,66 3,32

AKOIL SA 3.846.014 4.667.458 21,4% 5.271 11.486 117,9 0,25% 1.432.710 1.882.188 2.465.021 2.654.260 1,72 1,41

FUCHS HELLAS LLC 5.143.203 4.596.766 -10,6% 343.690 147.506 -57,1 3,21% 1.231.911 1.276.109 4.593.781 3.608.082 3,73 2,83

AEXANDROS OIL LLC 5.803.386 4.575.080 -21,2% -430.307 -345.811 19,6 -7,56% -130.691 -496.117 2.024.815 1.929.019 -15,49 -3,89

ALEXANDRATOS D. & SONS SA 3.742.352 3.960.629 5,8% 92.763 60.875 -34,4 1,54% 496.097 499.141 543.891 689.618 1,10 1,38

SIMOUDIS SA LIQUID VEHICLE

FUELS 2.677.939 2.900.202 8,3% -23.957 45.037 -

1,55% 35.401 110.339 723.441 553.443 20,44 5,02

AKRITAS SA 2.221.313 2.552.334 14,9% 98.865 75.283 -23,9 2,95% 191.881 323.829 419.808 344.763 2,19 1,06

SIDERIDIS E. SA 2.838.215 2.322.966 -18,2% -95.159 -116.097 -22,0 -5,00% 157.750 109.956 790.168 463.933 5,01 4,22

THERMOIL PATRAS SA 1.556.525 2.251.376 44,6% 7.851 11.215 42,9 0,50% 28.890 37.031 365.350 300.213 12,65 8,11

IOANNIDIS PETROLEUM PRODUCTS INTER OIL SA

2.178.568 2.094.197 -3,9% 19.620 -33.378 - -1,59%

233.924 200.545 520.352 608.385 2,22 3,03

ARETAKIS E. LLC 21.300.523 1.209.339 -94,3% 520.937 24.910 -95,2 2,06% 666.490 685.173 3.956.848 1.689.634 5,94 2,47

Source: STAT BANK

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2.3.6 PROBLEMS, OPPORTUNITIES AND RECENT DEVELOPMENTS

Problems: The major problems in the Greek petroleum market, which exist throughout the entire supply chain, are as follows:

A. A pronounced bureaucracy in the customs procedures with a limited

degree of automation. For example, the compulsory physical presence

of a customs officer during the customs clearance of petroleum products from the refineries in the domestic market restricts the

capacity for re-supply at times outside normal public service hours.

B. A distortion in the market due to the noted smuggling, piracy or

falsification and tax avoidance, which annually deprives the Greek State of € 400 million in income.

C. A slight potential to minimise the supply cost due to the restriction on

the issue of new motor vehicle licenses for tankers, the obligation on

petroleum companies to retain a large number of tankers separately for each type of fuel and finally the specification of transportation

charges on public use tankers by the State.

D. A lack of town planning design as well as reactions by local

communities regarding the establishment of new storage areas for

petroleum products.

Potential: In forthcoming years the environmental factor is expected to play a decisive role in the E.U. with the commercial emissions trading

system, the specifications for Nitrogen Monoxide emissions, the institution

of specific areas for sulphur oxides and other burdensome measures for

industry and transportation that pollute the atmosphere. Nevertheless, the slow introduction and the slow pace in the importation of new

technology for transportation (hybrid and electrically powered vehicles) in

the medium term retain the dependence upon fossil fuels. Furthermore,

the introduction of natural gas and Renewable Sources of Energy in

industry and domestic consumption is being rapidly realized, which threatens fossil fuels in the medium to long term future, while the above

categories correspond to approximately 1/3 of the total consumption of

petroleum products as opposed to 55% for transportation. As it was

stressed by the ΙΟΒΕ (Institute for Economic & Industrial Research) report, the petroleum products market exhibits positive development

potential in the forthcoming years but at a lower rate of growth in relation

to previous years. The replacement of petroleum products by other forms

of energy, such as natural gas, will be realized at a relatively slow pace, which is a result of a lack of incentives and the high capital investment

that is required by both households and industry, whereby in the next

two decades petroleum products will hold a dominating role in the

domestic energy market.

17

There are significant opportunities in the development of 2nd generation

bio-fuels, the competitive development of a network of service stations,

quality control and activity in the Eastern European and Balkan markets.

Business developments: In addition to the above and in relation to

developments at a business level unit, the vertical drop of profitability for businesses in conjunction with the tightening of payment terms (credit

limits and settlement terms) by Hellenic Petroleum and Motor Oil has led

to rapid changes in the domestic fuels market. Many companies are

following a pronounced negative course in the market after the closure of El Petrol.

The recent agreement for the take over of the BP service stations network

by Hellenic Petroleum and the sale of the Shell network to Motor Oil has been decisive on the new landscape being created in the domestic fuel

market. The above are decisive factors for the redistribution of the

correlations in the fuel market. Of course, the withdrawal by the multi-

nationals in stages has undoubtedly created a negative climate in the Greek economy and does not exclude the support for monopolies in the

domestic market.

Legislative Framework: It is being sought to supplement the existing

institutional framework that regulates the petroleum products market in

relation to the legislative framework, following the recent changes to the Ministry for Development, in order to intensify control at all stages of the

market and to improve market operating supervision. The smooth

operation of the petroleum products market and healthy competition will

be achieved in this way, as well as consumer protection, since there will be greater transparency and control, in accordance with the Ministry’s

relevant announcement.

It is also stressed the measures being adopted are based both on the

Ministry’s experience of the market’s operation, and the relevant recommendations submitted by the Competition Committee for the

petroleum products market. Specifically:

- To compulsorily install cash registers (electronic tax devices) at liquid

fuel service stations within 6 months from the passing of the amendment.

These devices will be connected to the integrated inflow – outflow control system. This will ensure that the transparency rules for transactions are

observed and will ultimately provide better protection to the consumer.

- To also support the Fuel Distribution and Storage Department (KEDAK)

with the responsibility for costing control. KEDAK, in addition to monitoring the permit for facilities and the establishment of companies

active at all stages of petroleum products trading and the type and

quality of fuels, will also be able to conduct inspections on the purchase

and sale prices per fuel type and the subsidies provided and be accordingly informed about cases of profiteering.

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- The capacity is provided for the first time to KEDAK to temporarily seal

facilities at all stages of the petroleum products market, where violations

are detected regarding the type and quality of traded products (fraud). - A central Information Monitoring System has been developed at the

Ministry for Development for controls and sanctions imposed by different

authorities at all stages of the petroleum products market by sector of

responsibility. - A uniform National Register of Permits has been developed at the

Ministry for Development for permits granted at all stages of the

petroleum products market supply chain. All the permits that to date

have been entered on separate registers will be gathered at the Register,

such as refinery permits, distribution of bio-fuels, trading, retail trading, transportation by petroleum products pipeline and bottling of liquid

gasses.

- A Committee for Monitoring the Petroleum Products Market has been

instituted, with the participation of all authorities and social partners involved, as a consultative committee for measures in the petroleum

products sector, whose opinion will not be binding on the State.

- The capacity for access to existing infra-structure by third parties is

provided, in line with what already applies for access to petroleum pipelines. Specifically, due to the difficulty in developing new infra-

structure in certain regions of the country, such as island regions, the

Energy regulating Authority will examine the capacity for access by a

company to the infra-structure of another company, e.g. to reserves of

operational reserves. This policy is already being implemented in other member states of the E.U., and contributes to an improvement of

competition conditions in a region, a price reduction, and accordingly

complete consumer protection.

It is noted that further to a resolution by the Ministry for Development the capacity for the operation of automatic vendors at liquid fuel service

stations outside normal operating hours has already been instituted since

June 2009.

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3 BACKGROUND AND CURRENT STATE

3.1 THE COMPANY: BACKGROUND – OBJECTIVE OF WORKS

The company was established as an individual business in 1988 with the

main aim being to service petroleum product consumers at competitive

prices with immediate service on a 24-hour basis. It now trades as

“DIMOIL PETROLEUM PRODUCTS INDUSTRIAL TRADING COMPANY” and

the distinct title “DIMOIL S.A.” The company was incorporated in its present form in 1996 with S.A.

Registration No: 33490/22/Β/96/25 and Tax File No: 094365627 at the

Patra II IRS and based at the Patra Industrial Region and is active in

petroleum products with its main objective being the trading and distribution of petroleum products, LPG and hot asphalt.

The company’s particulars are synoptically presented below, in relation to

its trading name, legal structure, headquarters, aim and share capital.

TRADING NAME : DIMOIL S.A.

DIMOIL Petroleum Products Industrial

Trading Company

LEGAL STRUCTURE : Societe Anonyme HEADQUARTERS : Theriano, Patra VI.PE (Industrial Zone)

AIM : The (wholesale & retail) trading in all types

of petroleum products, oils, asphalt and LPG,

and the import and export of the above

traded products. CAPITAL : The Company’s share capital is €

2,931,066.00 and is divided into 99,900

shares at € 29.34 each. The major

shareholder is Mr. Nikolaos Dimos (99%) and Mrs. Eugenia Dimou (1%).

3.2 FACILITIES

The Company is based at Theriano in the Vrahneika Municipality, close to

the Patra VI.PE (Industrial Region), on a private area of 7.2 hectares. The area houses buildings and storage areas and areas for the Company’s re-

supply, with the modern equipment expected at petroleum product

facilities. The facilities comply with all the safety regulations and

specifications in accordance with E.U. directives and international requirements, together with a respect for the natural environment.

20

More specifically, at the Theriano Patra facilities, in addition to the

buildings that house the offices and technical services, there are storage

reservoirs with a total capacity of 9,804 Μ3 as follows:

1. Asphalt Reservoirs 2,084 Μ3

2. Diesel Reservoirs 2,255 Μ3

3. Vehicle DIESEL Reservoirs 1,187 Μ3 4. Heating DIESEL Reservoirs 1,187 Μ3

5. Petrol Reservoirs 2,561 Μ3

6. LPG Reservoirs 530 Μ3

There are also lubricant storage areas with a total surface area of 900 m2. In addition to the Theriano facilities, the company has secured since

23/12/2008 a permit to establish a plant for the production of bio-fuel

(bio-diesel) with a capacity of 150 tonnes / day.

In addition to the above, in 2001 the Company purchased a seaside property of 27.5 hectares at Astakos Aetoloakarnania, at the Platygiali Ag.

Panteleimonas location. In 2008 it completed, the construction of

petroleum products facilities with a pipeline supply to the facilities via a

pipeline from the sea by ship. This property, in addition to being a seaside property, is beautiful and with access to the Astakos Port. The natural

position of the said property provides the ideal conditions for the

constructions of facilities for the re-supply, storage, and distribution of

petroleum products.

These new facilities are a plant for the storage and distribution of asphalt, diesel, fuel oil and petrol, with a storage capacity of 20,347.20 m3 and

are comprised of:

Diesel storage Reservoir;

Asphalt storage Reservoir; Fuel oil storage Reservoir; and

Petrol storage Reservoir.

The developed surface area of the property is 18,819.13 m2 on a 6

hectares property. The building facilities include sheds, base platforms for the product storage reservoirs, a weighbridge, waste processing

reservoirs and buildings (office building, entry guard post, pump station

buildings, boiler, workshop, tanker filling depot and fire extinguishment

facilities). It must be noted that these are the only facilities in Western Greece.

The company, inter alia, has a privately owned fleet of 18 tanker trucks

for the distribution of its merchandise. It has also concluded agreements

with Public Use tanker trucks for the same purpose.

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3.3 MANPOWER

The company currently operates with a suitable manpower of 35 employees (Administration – 3 people, Financial Services – 4 people,

Distribution / Trade – 20 people and Workers – Technicians – 8 people)

with specific knowledge of the objective and with faith in the company’s

principles and philosophy that are responsible for the final result, the due and direct servicing of customers and the complete coverage of the

demands by the company’s creditors and suppliers for the future.

The company is in the process of sourcing competent personnel for the

staffing of the new facilities at Astakos Port plant.

The following table presents particulars relating to the staffing of the

company’s management positions.

CHAIRMAN : Mr. Nikolaos Dimos

CEO & GENERAL MANAGER : Mr. Ioannis Dimos

COMMERCIAL MANAGER : Mr. Spiros Dimos

FCO : Mr. Nikolaos Potamianos

ACCOUNTANT : Mrs. Lambrini Koletsi

MAJOR SUPPLIERS AND CUSTOMERS

The facilities are supplied by the refineries of the “MOTOR OIL” company

at Corinth and the State Refineries of “HELLENIC PETROLEUM - ELPE” at

Aspropyrgos via the above-mentioned transportation means. The two

above-mentioned companies are the Company’s main suppliers. Alternative, equally significant suppliers are “SHELL S.A.” and “AVIN LTD”

At the other end of the supply chain are the company’s customers that

are classified under the following categories:

Technical Companies; Public Works Contractors;

Hospitals – Public Buildings;

Heating Diesel Re-sellers;

Industry;

Factories; and Transportation Companies.

We indicatively refer: “KOLOVO ANASTASIO”, “DOXA S.A.”, “ATLAS

TEHNIKI S.A.”, “ATLAS S.A.”, “THERMOIL PATRAS S.A.”, “S.P. FRANGOS S.A.”, “NIREAS S.A.” and the “WESTERN GREECE HOSPITALS”.

22

3.4 SUMMARY OF PAST FINANCIAL DATA

Table 5 presents the key figures and the main financial ratios for the company DIMOIL during 2005-2008.

Table 5 2005 2006 2007 2008

KEY FIGURES

Turnover 32.049.080,44 40.671.563,11 39.616.909,15 55.943.901,97

Gross profit 3.515.610,20 4.462.582,92 3.977.825,00 5.171.141,37

Operating Expenses 2.522.981,32 3.151.758,00 3.098.735,78 3.207.114,35

EBITDA 992.628,88 1.315.284,33 879.390,22 1.964.027,02

Net profit (before taxes) 218.031,13 98.792,51 -457.794,67 23.422,15

Assets 24.821.025,35 32.991.284,15 36.132.245,31 48.827.933,23

Own funds 2.992.110,52 2.993.887,22 2.135.166,59 2.598.481,23

Net Fixed Assets 1.821.856,51 1.839.528,51 2.075.639,07 5.127.417,65

LIQUIDITY INDICATORS

Current Assets /Current Liabilities 1,07 1,04 1,02 1,04

(Cash in hand +Requirements) / Current Liabilities 1,02 1,01 0,98 0,99

ACTIVITY INDICATORS

Days receivable 244,12 246,82 275,62 256,12

Days stock 2,72 5,30 8,76 2,26

Days credit 83,02 70,74 106,10 95,63

Speed of converting current assets into cash 1,29 1,23 1,10 1,15

Speed of converting fixed assets into cash 17,59 22,11 19,09 10,91

PERFORMANCE INDICATORS

Gross Profit / Turnover 10,97% 10,97% 10,04% 9,24%

EBITDA / Turnover 3,10% 3,23% 2,22% 3,51%

Net profit before taxes / Turnover 0,68% 0,24% -1,16% 0,04%

Own fund performance 7,29% 3,30% -21,44% 0,90%

OPERATING EXPENSES INDICATORS

(Cost of sales + Oper. expenses) / Turnover 96,90% 96,78% 97,78% 96,49%

Oper. expenses / Turnover 7,87% 7,75% 7,82% 5,73%

CAPITAL STRUCTURE INDICATORS

Loan equity ratio 7,28 9,97 15,80 17,79

Own funds / Net Fixed Assets 1,64 1,63 1,03 0,51

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ANALYSIS OF TABLE 5

Α. KEY FINANCIAL FIGURES

1. Turnover: The turnover of the group showed an average annual

increase of 22%, but fluctuates, as in 2006 and 2008 it increased

significantly, while in 2007 it marked a slight decline. We note that the drop in 2007 was a direct result of the turmoil in world market prices

of petroleum products, while in 2008 the dynamics of the company

enabled it to recover from the distress of the previous year and

achieve a strong increase in turnover.

2. Gross Profit: The gross profit of the company follows the behaviour of

turnover. In absolute terms, it amounted to € 5.2 million in 2008,

compared to € 3.5 million in 2005.

3. Operating costs (Administrative operation Expenses and Distribution

Costs): In absolute terms, operating expenses amounted to € 3.2

million in 2008 compared to € 2.5 million in 2005, recording a

conservative increase of 27% in four years.

4. EBITDA: The company’s EBITDA follows the behaviour of turnover,

while in 2008 it increased by over 100%, much higher than the

corresponding increase in turnover, mainly due to lower operating costs despite the reduction in the gross profit margin.

5. Net income: Net income has remained relatively stable in absolute

terms over the four years, except in 2007 when the company recorded

losses, mainly because of falling sales and the reduction in the gross profit margin.

6. Assets: Assets doubled within four years, amounting to € 48 million in

2008, compared with € 24 million in 2005.

7. Own funds: Own funds have remained relatively stable throughout

the four years, with a slight decrease observed is due to the losses of

2007.

8. Net Assets: The Net Assets of the Group increased by approximately

3 million within four years due to the partial integration in its Fixed

assets of the investment in Astakos. The main increase is recorded in

2008.

24

Β. LIQUIDITY

a. General Liquidity: The general liquidity ratio remains at levels

marginally above the unit throughout the period of four years, and is 1.04

on average.

b. Direct Liquidity: The direct liquidity ratio is similar to the general

liquidity ratio, as the company stores few goods. It amounts on average

to 1 throughout the four years.

C. ACTIVITY

a. Creditors - Requirements: As a four-year average, creditor days

stand at 89 days, while days receivable at about 256, which in

combination shows an imbalance between the company’s credit and lending policy.

b. Stocks: The days for which stock is held by the company amount to 5

on average over the four years, showing a relatively stable course in all years.

c. Circulation Speed of Assets and Fixed Assets: The Circulation

Speed of Assets and Fixed Assets is 1.2 on average, remaining at levels above the unit in all years, although marking a slight decrease over the

last two years. The four-year average Circulation Speed of Assets and

Fixed Assets is 17.4, reduced significantly in 2008.

D. PERFORMANCE

a. Gross Profit Margin (GPM): The four-year average gross margin

stands at 10.3%, in line with the framework of the oil industry behaviour,

descends, and in 2008 amounts to 9.2% compared with 11% in 2005.

b. EBITDA / Sales: The mean index is 3%, while in 2008 it is the

highest in four years (3.5%), mainly due to lower operating expenses of

the company.

c. Net Profit Margin (NPM): The net profit for the group decreases over

the years, assuming a negative value in 2007.

25

d. Return on Equity: The company’s returns on equity have been low

throughout the four years and in 2008 stood at 0.9%.

Ε. OPERATING EXPENSES

Operating expenses as a percentage of sales amounted to 7.3% on

average four years, but dropped sharply in 2008, to 5.7%.

As a four-year average, the index (Cost of sales + Oper. Expenses) / Sales, is around 97%. It has remained relatively stable throughout the

four years.

F. CAPITAL STRUCTURE

a. Loan Equity Ratio: The loan equity ratio has increased over the years

and in 2008 is remarkably high, at around 18/1, while the four-year

average is 12.7/1.

b. Own funds / Net Assets: The index has decreased over the years,

due to the increase of fixed assets and the relatively stable values of

equity. The four-year average is 1.2/1.

The main comments drawn from the examination of the above financial

information, considering the corresponding figures of other companies in

the oil market as discussed in section 2.3.5, are summarized as follows:

1. Regarding sales, the company has grown, with high growth rates,

in line with average market behaviour. For example, in four years,

the company reported an average annual growth rate of 22%, in

line with the market’s development in 2008.

2. Regarding performance, the company’s gross profit margin is

consistent with the relevant industry performance. Typically, the oil

industry has the lowest gross profit margin of all other branches of

trade, close to 9.5%-10%. The company’s performance over the past four years was within the aforementioned framework.

3. Regarding profitability, we observe that the cumulative net profit

of the company during the four years is zero, despite the fact that in these four years its cumulative turnover was approximately €

170 million. This outcome, noted in most companies in the industry,

is exacerbated by the company’s high financial costs from interest

on borrowed funds, in addition to the low gross profit margin, as interest costs are on average about 3.3% of sales.

26

4. Regarding liquidity, the observed imbalance between the

company’s credit and lending policy impedes its liquidity as the company receives client requirements after an average of 250 days

and pays its suppliers in approximately three months.

5. Regarding its capital structure, the company’s loan equity ratio is very high, much higher than the market average, which indicates

that the company is undercapitalised to achieve this sales volume.

6. Finally, it is noteworthy that the remarkable EBITDA change rate in

2008, to a percentage much higher than the change in sales, mainly because of falling overheads, may suggest an

underemployment problem in previous years.

3.5 LATEST DEVELOPMENTS – CURRENT STATE

On April 2010, its related company the OSELINER company, in its

capacity as the service provider for the distribution of petroleum products, waste management and slops reception, signed a contract with the

ASTAKOS TERMINAL and AKARPORT companies, where the former owned

and utilised the land area and the ASTAKOS NAVIPE Port Facilities, and

the latter managed and administered the Port, as this had been assigned

to it by the ASTAKOS TERMINAL. The subject of the contract is as follows:

1. AKARPORT assigned to OSELINER the jobs for the removal of the

liquid waste from the ships that sail into the Port and its

transportation to the temporary storage holding tanks. In this regard, OSELINER will receive 85% in respect of each recorded

invoice from AKARPORT.

2. AKARPORT permits OSELINER to resupply the ships that sail into

Astakos Port with shipping fuel. In this regard, OSELINER will reimburse € 2 / metric tonne of fuel to AKARPORT.

3. AKARPORT permits OSELINER to load and unload and transport

petroleum products through the Port from the ships that sail into it,

to the DIMOIL facilities and vice-versa. In this regard, OSELINER will reimburse AKARPORT with € 0.25 / tonne petroleum products

handled in the first year and € 0.30 in the second year, while for

subsequent years the charge will be increased based on the

average annual rate of inflation.

27

In relation to the above, a connection is required of the DIMOIL storage

and petroleum products distribution facilities adjacent to ASTAKOS

NAVIPE with the Port, via three steel pipelines, which shall pass through ASTAKOS NAVIPE. The transit right for the pipelines is assigned to

OSELINER by the ASTAKOS TERMINAL in consideration of the sum of €

60,000 in the first year, € 80,000 in the second year, while for

subsequent years the charge will be increased based on the average annual rate of inflation.

3.6 OBSERVATIONS - CONCLUSIONS After recording and analyzing the external and internal environment of

the company, both in terms of economics and level of organization and

operation, the resulting conclusions are summarized in Table 6, in the

form of a SWOT analysis.

Table 6: S.W.O.T. Analysis DIMOIL SA

Strengths

Development of the new plant in

Astakos Port, to increase sales and

reduce transport cost accounting

Location: Covers the needs of Western, Central Greece, and the Ionian Islands

can reach Northern Greece.

Community directives on green growth

and NATURA protected zones

Weaknesses

High loan equity ratio –

Undercapitalised company

Imbalance between credit and lending policy

Opportunities

Extensive dependence of the Greek

market on oil in the coming decades

Development of 2nd generation

biofuels Development in the markets of the

Balkans, Eastern Europe and SE Italy

Threats

Depression due to the financial

crisis

Market fragmentation

Problematic and incomplete regulatory framework

28

4 METHODOLOGY The methodology of this study is first to detect the trends/forces of inertia

of the company and the oil market, and to identify the strategic

objectives in a manner reflecting the expected benefits and feasibility of

the project.

In particular, the forces of inertia, expressed through the behavioural

indicators of the company and the industry (growth, loan equity ratio,

gross profit margin, profitability) constitute the basis for calculating the

feasibility of strategic objectives - e.g. operation of the company new plant, and the cost and time required for the changes these entail.

Given the above, a six-year forecast scenario is made, under the

assumptions mentioned in Section 6.

We subsequently take into account market trends and competition, as

well as the exploitation of company’s new investment in Astakos. Thus,

two consistency checks will be conducted:

A. Consistency check compared with the past of the company.

B. Consistency check compared with competition.

Given two above consistency checks, strategic objectives will be set, to

form the basis of the Company’s corresponding five-year business plan.

29

5 STRATEGY The incorporation of the Greek economy into the European Union and

more broadly into the globalisation framework has necessarily compelled

it to inter alia proceed to: its institutional adaptation, namely to

restructure, modernise and reorganise the size, operating level and

orientation of its business units. In this case, it is of crucial significance to rationalise companies in terms of the particulars in their assets and

liabilities together with the corresponding restructuring, to reorganise

their size and business direction through mergers, take-overs and more

generally through business alliances and to finally to modernise their activities and operations within the uniform European market.

The medium sized units and more specifically the regional units have

been dramatically slow in this reorganization process, which is supported by the fact that these businesses have a noteworthy lack of direction in

the activities and the necessary strengths. This is of exceptional

significance, since the above reorganization ultimately relates to the

structural change of the individual markets. In other words, medium sized

businesses, and of course with lesser emphasis, large businesses, will close, be sold or will merge, but will definitely modernise.

The implementation of the above into the petroleum market in Greece is

evident. The market, which is fragmented by both the size and the objective of the businesses, as stressed in chapter 2.3, has recently

undergone significant re-arrangement in terms of its structure and

operation. This re-arrangement relates to a change in the market

equilibrium through the absorption of the BP network by ELPE, the closure of El Petrol, the agreement for the purchase of the Shell network by

Motor Oil, together with a vertical drop in the profitability by businesses

in the sector that has been observed in the last year, a fact that has led

to significant problems for a large number of companies. It is reasonable that concentrating trends will be observed in the market through a

composition of the above elements, by the creation of larger units

through take-overs and mergers.

DIMOIL has invested in new petroleum storage and distribution facilities at Astakos Port Plant in Aetoloakarnania, in light of the above

developments, to exploit the potential provided by the above facilities for

developing its sales and drastically reducing its operating costs. The

investment will significantly strengthen the company’s position in the geographical market of Central and Western Greece and create a channel

to develop new markets, in terms of geography (Northern Greece) and

30

products, by also providing the potential to attain economies of scale and

to reduce its transportation costs.

On the basis of the above regarding the market trends and possibilities,

the competition forces, the operating and financial background, and the

current state of the DIMOIL company, the following new strategic

directions for its operation have been set out:

A. A rapid increase in the sales through an enlargement of the clientele

and activity in new product and geographical markets, as a result of the

operation of the new Astakos Port facilities.

B. A more efficient management of the transportation cost for the

products through the utilization of the potential provided by the new

Astakos Port facilities.

C. An improvement in its cash flow, through the corresponding variations

of the credit policy to the company’s customers, with a significant

reduction to the average period for the collection of debts, through a

change in the product mix and the clientele dispersal as a result of the new investment in Astakos Port.

D. A change to natural levels in the relation of foreign to the own capital.

E. The utilization of the new Astakos Port facilities with real estate income

through the rental of storage space to third parties.

31

6 FINANCIAL MODEL ASSUMPTIONS

The financial model is a financial display with the above strategy based on

underlying assumptions that have been drawn in collaboration with the

Company’s management and are presented below.

6.1 2009 BALANCE SHEET ADJUSTMENTS

In collaboration with the Company’s management, adjustments have

been made to the Balance Sheet of the year 2009, concerning the

regularization of the accounting of the investment in Astakos Port. These

adjustments are as follows:

Interim Assets 2009 Interim Liabilities 2009

Fixed: 13,29 Net position: 1,87

Requirements: 21,41 Long-term loans: 5,43 Stocks: 0,20 Current loans: 16,20

Cash in hand: 0 Suppliers: 11,01

Other: 1,31 Other: 1,70

TOTAL: 36,21 TOTAL: 36,21

The adjustments concern the regularization of the accounting of the

investment in Astakos Port, through the consolidation of part of the

investment that had not been included in the company’s Fixed Assets,

leading to an upwards distortion of cash in hand.

6.2 RESULTS 2010-2014

1. The company’s turnover in 2009 amounted to € 45,5 million decreased

by 20% compared with 2008, consistent with the company’s policy of

adjusting its turnover to lower levels to avoid the risk of exposure to bad customers (the company has already absorbed €6 million of bad

customers in 2009), but also due to the general negative economic

climate and the loss recorded by the market as a whole because of the

economic crisis. After the establishment of the new facility in Astakos Port, the company's turnover grows at a rapid pace.

The increase in turnover to these levels is supported by:

a. the broadening of the company’s client base, as through the

operation of the above facility, the company may receive licenses for operation in three new product categories, maritime fuel, petrol and

wastewater management. Specifically:

32

- Maritime Fuel: the company can immediately acquire a market

share from the vessels operating in the ports of Patras, Igoumenitsa,

Kyllini, Mesolonghi Egio and Katakolo. Later, the company will be able to add to its operations the ports of Piraeus, Rafina, Corinth, etc. The

company is already in contact with several ship owners who wish to

cooperate. In addition, the company is able to support already

provided shipping volumes through the loading of fuel to ships calling at the port of Astakos, based on the above contract (see Section 3.6).

Annual volumes for this activity can amount to 180,000 tons of fuel.

- Gas Stations: the company can immediately acquire a market share

from independent gas stations, and create a private network. An

advantage is that the company already owns car tankers that can manage the supply to gas stations at significantly lower transport costs.

- Wastewater Management: On the basis of a signed contract,

presented in section 3.6, the company expects an annual revenue of

around € 1,3 million, with a significantly higher gross profit margin than other product categories (22% compared with 11 %).

b. the expansion of business into new geographic markets, including northern Greece, taking advantage of competitive prices and volumes

to distribute its goods. Already, the company's management has

proceeded to negotiations with specific customers and partners, with

positive prospects.

c. the broadening of partnerships with other oil companies that have

expressed interest to buy fuel from the company or rent storage

premises (the company will tranship fuel to other companies through the Astakos facility, from the goods stored there, as a consignment,

and will receive the corresponding fee for these through-put

operations). All trading companies such as SHELL HELLAS SA, AVIN

OIL ABENEP, SILK OIL, AEGION OIL (AEGEAN), REVOIL, in western Greece cover approximately 70% of gas station supplies. This supply is

performed by road tankers that load fuel from refineries in Athens, so

that transport costs are very high, the risk for the road tankers on the

road is high and the date and time of delivery to the customer is always late. The means of transport used by each company at this

time may be halved if they serve their customers in western Greece

from the Astakos facility, so all these companies have expressed keen

interest in using the company’s Astakos facility immediately after its

establishment. This means that for every cubic meter of loading, the loading fees paid to the company will be about 14 € per m3, with the

associated cost amounting to 7 € per m3. Given that the overall

market in which the company operates is worth approximately

33

500.000 m3 per year and the company aims to cover 60% of this

market, the company’s annual income will amount to € 4.2 million.

Specifically, the projected sales by product group for the years 2010-

2014 are as follows:

In thousands € SALES 2012 2013 2014

Maritime 11.420 12.980 15.060

Diesel 20.145 24.600 28.950

Heating 21.100 25.140 31.360

Petrol 14.250 17.100 20.870

Fuel oil 10.980 14.770 18.960

Asphalt 12.170 15.740 19.910

Liquid gas 3.199 3.583 4.012

Waste 1.275 1.275 1.275 Through-Put 4.631 4.862 5.105

99.169 120.050 145.503

It is noted that for 2012 in specific, the company aims to increase its

turnover from activities that generate higher liquidity through the

shorter-term recovery of the generated requirements (e.g. diesel) and

has correspondingly decreased activities with a longer period of recovery of the generated requirements (e.g. Fuel oil and asphalt).

It should be noted that these sales forecasts are formed taking into account the current oil prices and with reasonable assurance that

these prices will not undergo significant changes until the end of 2012.

Below, we see the forecast values and quantities for each company

product in 2012.

2012 CATEGORY Fuel Heating Petrol Fuel oil Asphalt Liquid gas

PRICE (€) 825 545 870 293 247 365 QUANTITY (m3 ) 18.570 28.771 7.356 26.109 35.628 6.986

2. The gross profit margin stands at approximately 14% for the years 2012-2014, increased if compared to the company’s past and the

competition. The increase in the gross profit margin is possible thanks

to the reduction of cost accounting for the transport of the company’s

products during its new operation after the commencement of investment. At its existing facilities, in the Industrial Area of Patras,

the company is far from the sea and all deliveries of goods take place

by road tankers. With the operation of the Astakos Port facility, the

company will be able to receive supplies by sea, thus reducing costs.

For example, the region consumes about 800,000 tons annually. 70%

34

of this fuel is transported by land from the refineries of Aspropyrgos

and Corinth with transportation costs of 50.00 € per tonne.

Transportation from the Company’s Astakos facility will cost 25.00 € per tonne. The benefits achieved from Transportation alone therefore

are great. In addition, the possibility to receive supplies by sea will

give the company the advantage of an economy of scale. Buying larger

quantities, the Company can negotiate better prices, resulting in a greater profit. Please note that the calculation of the gross profit

includes the company’s involvement in the through-put of petroleum

products for companies in the industry, which offers it a major gross

profit margin of 50%, as well as the company’s contractual obligations

to AKARPORT as the company invoices in a manner achieving the required gross profit margin, having calculated the cost of the

contractual obligations to AKARPORT.

3. Operating expenses as percentage of sales for the years 2012-2014 will be as follows.

2012 2013 2014

5,27% 5,26% 5,25%

It is noted that the operating expenses as percentage of sales are

reduced compared to the past of the company, especially after the full

establishment of the new investment. The reduction in operating costs

is achievable because of the costing advantage of the new investment,

as mentioned above, and because the largest part of the investment’s operation will be supported through the company’s current facilities in

Patras, through an on-line connection. Please note that the operating

expenses for each year include the company’s contractual obligation to

AKARPORT for the payment of fees for the transit of pipelines through the port of Astakos, for conducting ship refuelling and loading of

petroleum products.

4. Interest expenses relate to interest from the company’s short- and long-term loans and are calculated each year as the annual average

balance of loans at rate of 5.5%. Interest income relates to interest

from the company’s cash and are calculated each year as the annual

average balance of cash at rate of 2%.

5. Income tax is calculated at 25% on net profits before taxes. Dividends

are calculated at 35% of net profit after tax for the period 2011-2014,

as the company does not distribute dividends in 2010 to strengthen its

capital base.

35

6.3 ASSETS 2010-2014

1. The annual depreciation of the company’s fixed assets is detailed in the attached Depreciation Table.

2. The new stocks for the years 2010-2014 are obtained from the

formula:

(Days-Stocks * Cost of goods sold)/365, where Days-Stocks are set at approximately 1 from 2010 onwards. These stocks are sufficient for

the unimpeded function of distribution, as the company may retain, as

a consignment, a large volume of stocks in the new facility at any time,

essentially acting as a repository for refineries. Specifically, per product category, Days-Stocks are as follows:

Category Days - Stocks

Maritime 0

Diesel 0

Heating 0

Petrol 0

Fuel oil 0

Asphalt 10

Liquid gas 5

3. Claims amounting to € 5 million, as shown in the balance sheet of

31/12/2009 are collected in 2010 to settle current liabilities. Claims

amounting to approximately € 6 million, which, in accordance with the

Auditor’s observation on the balance sheet of 2008 originate from the

checks of customer who recently face liquidity problems (VOUTOS, KATSIKIS, KAMPEROS) and from a requirement against a member of

management, which has paid as an advance for work, are assumed to

be fully recovered within the decade, starting in 2010. It should be

noted that the level of these bad requirements has increased from € 4.5 million to € 6 million in 2009.

4. Advances from clients concern the required advance of that part of the

cost of buying fuel that pertains to taxes, duties, etc., for receiving fuel from the company. This requirement amounts to approximately €

500 thousand per two weeks.

5. The new requirements for the years 2009-2013 are obtained from the formula:

(Days-Requirements * Sales)/365, where Days-Requirements for each

product category are listed in the table below:

36

Category Days - Requirements

2008 2009 2010 2011 2012 2013 2014

Maritime 0 0 30 30 30 35 40

Diesel 90 70 50 45 40 40 40

Heating 120 110 50 40 35 35 35

Petrol 0 0 20 20 20 25 30

Fuel oil 150 120 90 90 90 95 105

Asphalt 180 120 90 90 90 95 105

Liquid gas 120 90 60 60 60 60 65

Wastewater 0 0 30 30 30 30 30

Through-Put 0 0 30 30 30 30 30

The change in the company’s credit policy is a strategic objective, as

reported, to improve its liquidity and is achievable based on its product mix and expansion of the company’s clientele through the new

investment, thereby reducing the Days-Requirements from the nature

of works alone. Until now, the high rate of claim recovery was justified

by the fact that the company has claims against the government, which is known to delay payments, and from the sale of asphalt to

construction companies, which in turn are awaiting payment by the

government. The company’s future strategy is that new customers will

enjoy the same credit policy as older clients, and the benefits offered

by the company will be integrated in turnover discounts rather than long-time credits. In the second phase, the company’s strategic goal is

to change the credit policy applicable to older clients.

More specifically, the company’s target collection policy per product category is as follows:

Maritime Fuel: Recovery in about 30-40 days for the years 2010-2014.

Diesel: The significant change in company policy is that, first, the

company did not renew its contract with the state, which causes delay in payments, and, secondly, that it follows the credit policy of the

market, which concerns reducing the time to collect claims. The

company offers the credit offered by the competition plus one month

extra credit at a marginally higher price. The integration of the above in the present business plan takes into account their gradual

absorption over time. In 2010, the average collection period for diesel

fuel is 50 days, while in 2011-2014 the average collection period is

approximately 40 days.

Heating: As with diesel, the change in the company’s credit policy is that now it will not distribute gas to public bodies, which delay

payments, but only to wholesalers and the private sector, with a

maximum credit of 15 days or purchase by cash. The integration and

37

implementation of the above in this business plan takes into account

the forces of inertia of the past, so in 2010 the average collection

period for heating oil is 50 days, and for subsequent years (2011-2014) the corresponding credit is around 35 days.

Petrol: The average recovery period is set at 20 to 25 days, consistent

with the corresponding period in the industry.

Fuel oil, Asphalt, Liquid gas: The gradual decrease in the company’s average collection period was already noted in 2009 compared to 2008,

and continued in 2010. This is consistent with the market trend, where

competitive forces contribute to the reduction of the collection time,

for liquidity purposes. The above market trend is followed by the

company. Waste-Through Put: For all years, the period of one month is defined

as the average collection time.

6. The Balancing Account is used to balance Assets and Liabilities.

6.4 LIABILITIES 2010-2014

1. The company’s existing long-term loans are serviced based on existing

contractual relationships and could be repaid within five years.

2. To alleviate the pressure the company is under due to its debts to

Shell, it proceeds to a sale and lease back of the Astakos facilities,

worth € 15 million, through which the debts to Shell (€ 7 million) and Piraeus Bank (bonds € 4 million) are paid, while the working capital for

the company amounts to € 4 million.

3. New Days-Creditors are calculated as follows:

(Days Suppliers * Cost of sales)/365, where Days Suppliers = approximately 21 for the years 2010-2014. Today, the main suppliers

of the company are refineries that follow a policy of collecting no later

than 30 days on average. Specifically, Days-Creditors, by product

category are as follows:

Category Days - Creditors Category Days - Creditors

Maritime 20 Fuel oil 30

Diesel 20 Asphalt 35

Heating 15 Liquid gas 30

Petrol 15 Through-Put 15

38

Please note that, to receive fuel, every 15 days the company must pay

around € 500 thousand (for the first two years of operation through

the new activity), because of taxes and duties to be paid in advance for the purchase of fuel. This amount is added as suppliers’ advance in

the company’s claims for all years, with a corresponding reduction in

the credit it receives.

4. The short-term bank loans balancing account is used to balance Assets

and Liabilities.

5. The reason the company is looking for financing is that due to the financial and debt crisis in Greece, the local banking system was not liquid and capable to refinance existing long term debts, to perform the Astakos Port facilities sale and lease back and to finance

with short term loans some customers’ bad debts.

39

6.5 SUMMARY FINANCIAL DATA 2012-2014

2012 2013 2014

KEY FINANCIAL FIGURES

Sales 99.169.220 120.049.591 145.502.601

Gross profit 13.781.896 16.375.520 19.522.260

Operating Expenses 5.241.002 6.330.440 7.657.838

EBITDA 8.540.894 10.045.081 11.864.423

Net Profit 7.444.924 9.113.629 11.056.221

Assets 28.748.581 31.607.048 36.068.391

Own Funds 11.861.296 16.304.190 21.694.098

Net Assets 9.304.265 8.687.655 8.071.045

LIQUIDITY INDICATORS

Current Assets / Current Liabilities 3,74 4,20 4,38

(Cash + Receivables) / Current Liabilities 3,71 4,17 4,36

ACTIVITY INDICATORS

Days receivable 66,76 66,12 67,57

Days stock 0,49 0,46 0,42

Days credit 15,14 15,45 15,61

Speed of converting current assets into cash 3,45 3,80 4,03

Speed of converting fixed assets into cash 10,66 13,82 18,03

PERFORMANCE INDICATORS

Gross Profit / Turnover 13,90% 13,64% 13,42%

EBITDA / Turnover 8,61% 8,37% 8,15%

Net profit before taxes / Turnover 7,51% 7,59% 7,60%

Own fund performance 62,77% 55,90% 50,96%

OPERATING EXPENSES INDICATORS

(Cost of sales + Oper. expenses) / Turnover 91,39% 91,63% 91,85%

Oper. expenses / Turnover 5,28% 5,27% 5,26%

CAPITAL STRUCTURE INDICATORS

Loan equity ratio 1,42 0,94 0,66

Own funds / Net Fixed Assets 1,27 1,88 2,69

40

7 CONCLUSION The following points-conclusions can be extrapolated from DIMOIL’s

results for the years 2010-2014, in conjunction with the consistency

check in Table 8.

1. The turnover of the company is growing, reflecting the positive outlook of the petroleum industry and the specifics of the

company’s activity.

2. Gross profit will increased to 13.8% on average, at levels higher

than past years (2005-2008) and than competition, mainly due to the costing advantage in the transport of products from the

company’s new plant.

3. Returns on equity tend to be above the levels of competition, with a

rising trend in the years 2012-2014. 4. The net profit margin stands at an average of 7%, increasing in

upcoming years is not much higher than the competition and the

past performance of the company.

5. The loan equity ratio drops significantly over the years and in 2014

stands at 0.7/1.

The operations will allow the company to achieve these results are:

Functional activation of the company based on the operation of the new facility in Astakos Port, which enables the development of its

turnover and the reduction of operating expenses.

Change in credit terms for the payment and collection of claims, to

boost liquidity and reduce the need for short-term bank loans.

In the consistency checks, as competitors we have chosen companies in

the upper third of the market (23 out of 70 companies), in terms of

turnover, based on their 2008 data. A key point arising from this business

plan is that the company, in its new region of focus, aims to achieve a market share that will allow it to be part of the 15-20 leading companies

in the industry in the next five years.

41

Table 8: Consistency Check

YEAR COMPANY TURNOVER

GROSS

PROFIT

NET

PROFIT

OWN

FUNDS LIABILITIES

GROSS PROFIT

MARGIN

NET PROFIT

MARGIN

LOAN EQUITY

RATIO

EQUITY

PERFORMANCE

2008 DIMOIL 55.943.902 5.171.141 23.422 2.598.481 46.229.452 9,24% 0,04% 17,79 0,90%

2008 Market Average 573.968.227 31.830.328 1.082.380 33.716.470 85.098.622 5,55% 0,19% 2,52 3,21%

2008 EKO ELDA SA (IAS) 2.285.945.000 119.237.000 2.317.000 223.427.000 321.249.000 5,22% 0,10% 1,44 1,04%

2008 SHELL HELLAS SA 1.856.721.069 93.124.506 -14.117.291 94.006.662 258.285.082 5,02% -0,76% 2,75 Ν/Α

2008 BP HELLAS SA (IAS) 1.397.522.153 153.975.752 14.780.552 229.335.561 206.236.533 11,02% 1,06% 0,90 6,44%

2008 MAMIDOIL-JETOIL SA (IAS) 1.281.047.000 56.862.000 5.724.000 62.976.000 306.228.000 4,44% 0,45% 4,86 9,09%

2008 AIGAION OIL SA 1.127.308.778 37.937.050 1.497.722 16.196.113 157.969.707 3,37% 0,13% 9,75 9,25%

2008 AVIN OIL SA (IAS) 1.019.054.000 50.788.000 2.528.000 15.858.000 165.838.000 4,98% 0,25% 10,46 15,94%

2008 ELINOIL SA (IAS) 743.920.000 48.274.071 1.738.000 35.677.000 102.810.000 6,49% 0,23% 2,88 4,87%

2008 REVOIL SA (IAS) 571.993.228 20.824.700 2.118.280 19.803.284 45.440.511 3,64% 0,37% 2,29 10,70%

2008 ETEKA SA 533.339.940 13.486.315 715.506 5.533.894 55.533.012 2,53% 0,13% 10,04 12,93%

2008 CYCLON HELLAS SA (IAS) 399.245.000 24.010.000 3.675.000 27.748.000 82.450.000 6,01% 0,92% 2,97 13,24%

2008 SILK OIL SA 348.756.506 16.100.013 910.451 2.916.493 40.446.756 4,62% 0,26% 13,87 31,22%

2008 MIRTEA SA 225.827.583 25.058.292 3.811.436 1.617.175 8.223.890 11,10% 1,69% 5,09 235,68%

2008 ELPETROL SA 219.821.179 5.022.901 -9.658.050 -6.582.587 36.011.239 2,28% -4,39% Ν/Α 146,72%

2008 KAOIL BROS KOUTLA SA 206.961.765 6.151.775 94.987 4.269.107 23.432.494 2,97% 0,05% 5,49 2,22%

2008 DRACOIL SA 204.432.702 5.156.255 -1.979.315 290.640 43.375.744 2,52% -0,97% 149,24 Ν/Α

2008 SEKA STATIONS FUEL SUPPLY SHIP SA 144.063.944 7.644.277 2.826.317 5.235.798 8.678.125 5,31% 1,96% 1,66 53,98%

2008 PETROL SUPPLY STATIONS SEKAVIN SA 132.250.127 3.371.842 1.102.323 4.822.241 11.259.493 2,55% 0,83% 2,33 22,86%

2008 SUNOIL SA 123.880.932 4.280.641 -3.182.912 -950.276 27.018.708 3,46% -2,57% Ν/Α Ν/Α

2008 MOBIL OIL HELLAS SA 90.021.341 16.672.165 6.477.248 20.303.306 6.261.060 18,52% 7,20% 0,31 31,90%

2008 KMOIL SA 88.033.699 2.876.679 15.557 3.168.049 15.362.706 3,27% 0,02% 4,85 0,49%

2008 EKO KALIPSO LLC 79.163.000 9.202.000 2.027.000 2.264.000 2.418.000 11,62% 2,56% 1,07 89,53%

2008 ARGO GREEK PETROLEUM COMPANY SA 74.121.085 5.073.126 439.533 5.142.427 11.987.361 6,84% 0,59% 2,33 8,55%

2008 NETOIL SA 47.839.199 6.968.173 1.033.387 2.420.918 20.752.885 14,57% 2,16% 8,57 42,69%

2014 DIMOIL 145.502.601 19.522.260 11.056.221 21.694.098 14.374.293 13,42% 7,60% 0,66 50,96%

42

8 APPENDIX ASSETS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

B. OTHER INSTALLATION EXPENSES

1. Foundation & Installation Expenses 2.458 2.458 11.238 34.365 51.699 41.360 31.020 20.680 10.340 0

2. Construction period interest 176.241 636.007 1.421.567 1.137.253 852.940 568.627 284.313 0

4. Other establishment expenses 8.794 88.938 69.209 52.724 50.725 40.580 30.435 20.290 10.145 0

Total other installation expenses (Β) 11.252 91.396 256.688 723.097 1.523.991 1.219.192 914.394 609.596 304.798 0

C. FIXED ASSETS

Ι. Intangible Assets

1. Costs of research and development

2. Concessions and industrial property rights

Total 0 0 0 0 0 0 0 0 0 0

ΙΙ. Investments

1. Land-Plots 919.011 990.698 990.698 1.376.224 1.376.224 1.376.224 1.376.224 1.376.224 1.376.224 1.376.224

2. Buildings and structures 201.955 183.582 178.677 220.480 8.266.549 7.439.894 7.026.567 6.613.240 6.199.912 5.786.585

3. Mechanical-Technical Facilities-Other equipment 521.633 468.069 414.369 368.516 1.995.498 1.632.681 1.451.272 1.269.863 1.088.454 907.045

4. Transportation means 131.773 158.737 137.097 206.832 114.179 76.120 57.090 38.060 19.030 0

5. Furniture and fixtures 34.123 25.081 18.579 16.499 17.059 11.373 8.530 5.687 2.844 0

6. Assets under construction and advances 13.361 13.361 336.219 2.938.866 0 0 0 0 0

Total 1.821.857 1.839.529 2.075.639 5.127.418 11.769.511 10.536.292 9.919.682 9.303.073 8.686.464 8.069.854

ΙΙΙ. Other financial investments

1. Investments in affiliated companies

2. Investments in other companies

7. Other current receivables 1.192 1.192 1.192 1.192 1.192 1.192

Total 0 0 0 0 1.192 1.192 1.192 1.192 1.192 1.192

Total Fixed Assets (CΙΙ) 1.821.857 1.839.529 2.075.639 5.127.418 11.770.702 10.537.484 9.920.874 9.304.265 8.687.655 8.071.045

D. CURRENT ASSETS

Ι. Stocks

1a. Merchandise (working) 93.267 103.285 115.680 129.561 145.109

43

1. Merchandise 212.371 462.922 391.191 182.011 204.525

Total 212.560 525.559 855.612 314.382 204.525 93.267 103.285 115.680 129.561 145.109

ΙΙ. Requirements

1a. Clients (working) 9.763.014 10.678.384 12.669.831 16.556.753 21.966.204

1. Clients 6.162.626 6.803.942 8.441.483 9.352.305 4.470.875

2. Bills Receivable 117.085 205.085 135.585 439.485 439.485

2b. Bills in banks for collection 45.300 31.800 16.800 16.800 16.800

3. Checks receivable in portfolio 1.411.909 1.549.902 2.099.141 3.399.553

- Checks receivable in banks to collateral 12.530.839 17.619.687 17.191.865 22.937.603 10.679.561

3b. Checks receivable in arrears 120.399 144.927 47.050 487.989 4.578.751 4.120.876 3.663.000 3.205.125 2.747.250 2.289.375

5. Advances BY suppliers 978.837 1.169.024 1.405.789 1.707.323 2.068.246

11. Sundry Debtors - Others 1.046.847 1.147.047 1.983.637 2.622.310 1.224.772 1.102.294 979.817 857.340 734.863 612.386

Total 21.435.005 27.502.390 29.915.560 39.256.044 21.410.243 15.965.021 16.490.225 18.138.085 21.746.189 26.936.211

ΙΙΙ. Securities

1. Shares

2. Other securities 0 0 0 0 0 0

Total 0 0 0 0 0 0 0 0 0 0

ΙV. Available Funds

1a. Cash in hand (balancing) 0 0 0 0 0 169.266 402.039 580.955 738.845 916.026

1. Cash in hand 837.281 356.627 633.238 1.741.543

2. Current Deposits and Time Deposits 431.665 2.538.729 2.085.192 1.649.949

Total 1.268.946 2.895.357 2.718.430 3.391.492 0 169.266 402.039 580.955 738.845 916.026

TOTAL CURRENT ASSETS (DΙ+DΙΙ+DΙV) 22.916.511 30.923.305 33.489.603 42.961.918 21.614.768 16.227.554 16.995.550 18.834.720 22.614.595 27.997.346

Ε. PREPAYMENTS AND ACCRUED INCOME

1. Prepaid Expenses 11.960 0 0 15.501 1.309.924

2. Income receivable 59.446 137.055 310.315 0 0 0 0 0 0 0

Total 71.406 137.055 310.315 15.501 1.309.924 0 0 0 0 0

TOTAL ASSETS (B+C+D+Ε) 24.821.025 32.991.284 36.132.245 48.827.933 36.219.385 27.984.230 27.830.818 28.748.581 31.607.048 36.068.391

44

LIABILITIES

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Α. OWN FUNDS

Ι. Share capital

1. Paid-up 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066

TOTAL 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066 2.931.066

ΙΙΙ. Revaluation - Investment grants

1. Fixed asset Revaluation Differences 593 593 593 0 0

Total 593 593 593 0 0 0 0 0 0 0

ΙV. Reserves

1. Statutory Reserve 19.036 22.543 22.543 22.543 22.543 22.543 22.543 22.543 22.543 22.543

2. Extraordinary reserves 626 626 626 626 626 626 626 626 626 626

5. Untaxed reserves under special laws 36.351 36.351 36.351 36.351 36.351 36.351 36.351 36.351 36.351 36.351

Total 56.013 59.520 59.520 59.520 59.520 59.520 59.520 59.520 59.520 59.520

V. Retained earnings

2. Profit brought forward -856.012 -392.105 -1.120.313 2.328.772 5.241.310 8.870.710 13.313.604 18.703.512

Total 4.439 2.709 -856.012 -392.105 -1.120.313 2.328.772 5.241.310 8.870.710 13.313.604 18.703.512

TOTAL OWN FUNDS (ΑΙ+AIII+ΑΙV+ΑV) 2.992.111 2.993.887 2.135.167 2.598.481 1.870.273 5.319.358 8.231.896 11.861.296 16.304.190 21.694.098

Β. PROVISIONS FOR RISKS AND EXPENSES

2. Other provisions 0 0 0 0 0 0 0 0 0 0

Total provisions (Β) 0 0 0 0 0 0 0 0 0 0

C. LIABILITIES

Ι. Long-term Liabilities

1. Bonds 0 0 750.000 4.186.000 4.144.361 380.000 300.000 220.000 140.000 60.000

45

2. Bank Loans (1) 355.019 252.152 179.286 622.931 586.650 4.500.000 4.125.000 3.375.000 2.625.000 1.875.000

3. Liabilities from leasing 10.450.000 9.350.000 8.250.000 7.150.000 6.050.000

Total 355.019 252.152 929.286 4.808.931 4.731.011 15.330.000 13.775.000 11.845.000 9.915.000 7.985.000

ΙΙ. Current Liabilities

1. Suppliers 825.403 578.577 1.701.873 4.852.477 7.327.171

2a. Cheques Payable 5.401.539 5.801.130 7.922.732 7.584.651 5.444.071

3. Banks, Current Liability Accounts 14.513.206 22.279.498 21.483.026 26.690.718 16.199.974 5.000.000 3.000.000 1.500.000 1.000.000 1.000.000

4. Customer Advances 260.471 627.372 727.134 866.299

5. Taxes & Fees Liabilities 143.667 101.645 315.170 149.589 227.829

6. Insurance Organizations 35.529 45.030 44.719 51.938 161.559 0 0 0 0 0

7. Long-term liabilities payable next year 71.761 109.628 595.245 1.224.435 696.750

10. Dividends Payable 160.000 55.000 0 0

11. Sundry Creditors 2.873 10.310 7.879 414 0 0 0 0 0 0

1b. Suppliers (working) 2.334.872 2.823.922 3.542.285 4.387.858 5.389.293

3c. Banks, Current Loans (balancing) 0 0 0 0 0

Total 21.414.450 29.608.190 32.797.779 41.420.521 30.057.354 7.334.872 5.823.922 5.042.285 5.387.858 6.389.293

TOTAL LIABILITIES (CΙ+CΙΙ) 21.769.469 29.860.342 33.727.065 46.229.452 34.788.365 22.664.872 19.598.922 16.887.285 15.302.858 14.374.293

D. ACCRUALS AND DEFERRED INCOME

1. Accrued expenses 0 0 0 0 1.310.748 0 0 0 0 0

2. Other Transitory 59.446 137.055 270.013 0 0 0 0 0 0 0

Total Transitory (D) 59.446 137.055 270.013 0 1.310.748 0 0 0 0 0

GRAND TOTAL LIABILITIES (Α+Β+C+D) 24.821.025 32.991.284 36.132.245 48.827.933 37.969.385 27.984.230 27.830.818 28.748.581 31.607.048 36.068.391

46

2012 2013 2014

Ι. Operating Results

Turnover 99.169.220 120.049.591 145.502.601

Less: Cost of Sales 85.387.324 103.674.071 125.980.341

Gross Operating Profit 13.781.896 16.375.520 19.522.260

Plus: Other operating income 0 0 0

Total 13.781.896 16.375.520 19.522.260

LESS:

1. Management Expenses 1.929.273 2.335.358 2.830.500

2. Expenses for Research & Development

3. Selling Expenses 3.311.729 3.995.082 4.827.337

Total Expenses 5.241.002 6.330.440 7.657.838

Partial results (operating profits) 8.540.894 10.045.081 11.864.423

PLUS:

1. Income from investments and securities 0 0 0

2. Income from securities 0 0 0

3. Profits from sale of investments and securities 0 0 0

4. Interest income and similar income 9.830 13.198 16.549

LESS:

1. Provisions for depreciation of investments and securities 0 0 0

2. Expenses and losses from investments and securities 0 0 0

3. Interest and related expenses 828.300 667.150 547.250

828.300 667.150 547.250

Total Operating Results (Profit) 7.722.424 9.391.129 11.333.721

ΙΙ. Extraordinary Results

PLUS:

1. Extraordinary Income 0 0 0

2. Extraordinary profits 0 0 0

4. Income from previous years’ provisions 0 0 0

0 0 0

LESS:

1. Extraordinary Expenses 0 0 0

2. Extraordinary losses 0 0 0

4. Provisions for extraordinary risks 0 0 0

0 0 0

Operating and extraordinary results (profit) 7.722.424 9.391.129 11.333.721

LESS:

Total depreciation of fixed assets 891.854 891.854 891.854

Less: Those incorporated in operating costs 614.354 614.354 614.354

277.500 277.500 277.500

NET ANNUAL PROFIT & LOSS (Profit) 7.444.924 9.113.629 11.056.221

47

2010 2011 2012 2013 2014

Acquisition value Acquisition value Acquisition value Acquisition value Acquisition value

C. FIXED ASSETS

Ι. Installation Expenses 1.523.990,54 1.523.990,54 1.523.990,54 1.523.990,54 1.523.990,54

ΙΙ. Tangible Assets

1. Land-Plots 1.376.224,01 1.376.224,01 1.376.224,01 1.376.224,01 1.376.224,01

3. Buildings and structures 8.266.549,38 8.266.549,38 8.266.549,38 8.266.549,38 8.266.549,38

4. Mechanical-Technical Facilities-Other equipment 1.995.498,45 1.995.498,45 1.995.498,45 1.995.498,45 1.995.498,45

5. Transportation means 114.179,33 114.179,33 114.179,33 114.179,33 114.179,33

6. Furniture and fixtures 17.059,36 17.059,36 17.059,36 17.059,36 17.059,36

Total 13.293.501,07 13.293.501,07 13.293.501,07 13.293.501,07 13.293.501,07

Depreciation 2010 2011 2012 2013 2014

Installation Expenses 275.244,80 275.244,80 275.244,80 275.244,80 275.244,80

Buildings 413.327,47 413.327,47 413.327,47 413.327,47 413.327,47

Machinery 181.408,95 181.408,95 181.408,95 181.408,95 181.408,95

Transportation means 19.029,81 19.029,81 19.029,81 19.029,81 19.029,81

Furniture 2.843,11 2.843,11 2.843,11 2.843,11 2.843,11

Total 891.854,15 891.854,15 891.854,15 891.854,15 891.854,15

Accumulated depreciation 2010 2011 2012 2013 2014

Installation Expenses 275.244,80 550.489,60 550.489,60 550.489,60 550.489,60

Buildings 413.327,47 826.654,94 1.239.982,41 1.653.309,88 2.066.637,34

Machinery 181.408,95 362.817,90 544.226,85 725.635,80 907.044,75

Transportation means 19.029,81 38.059,62 57.089,44 76.119,25 95.149,06

Furniture 2.843,11 5.686,23 8.529,34 11.372,45 14.215,57

Total 891.854,15 1.783.708,29 2.400.317,64 3.016.926,98 3.633.536,33

Non-depreciated Value 2010 2011 2012 2013 2014

Installation Expenses 1.421.566,53 1.137.253,22 852.939,92 568.626,61 284.313,31

Buildings 1.376.224,01 1.376.224,01 1.376.224,01 1.376.224,01 1.376.224,01

Machinery 7.853.221,91 7.439.894,44 7.026.566,97 6.613.239,50 6.199.912,03

Transportation means 1.814.089,50 1.632.680,55 1.451.271,60 1.269.862,65 1.088.453,70

Furniture 95.149,52 76.119,71 57.089,89 38.060,08 19.030,27

Total 14.216,25 11.373,13 8.530,02 5.686,91 2.843,80

Installation Expenses 12.574.467,72 11.673.545,07 10.772.622,42 9.871.699,77 8.970.777,12