Market announcement

Title

Arco Vara Interim Report (unaudited) for the 4th Quarter and 12months ended 31 December 2013

Message

<strong style="font-size: 11pt;"><span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:10pt;">ARCO VARA GROUP</span></span> 


<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Vara AS and other entities of Arco Vara group
(together referred to as ‘the group’) are involved in real estate development
and provision of real estate services.</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group has three business lines and its operations
are carried out by three divisions – Service, Development and
Construction.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The core business of the Service division consists of
real estate brokerage and valuation, real estate management and consulting, and
short-term investment in residential real estate.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The core business of the Development division is
development of complete living environments and commercial real estate. Fully
developed housing solutions are sold to the end-consumer. In the development of
commercial real estate, the purpose is to create an asset generating cash flow
that can either be held for consolidating the group’s own cash flows or sold.
The group is currently holding some completed commercial properties that
generate rental income.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The core business of the Construction division was
provision of general construction and environmental engineering services as a
general contractor or a subcontractor. We are planning to discontinue provision
of construction services to external customers by the end of 2013 and do not
intend to start any new projects funded by the public sector or the
EU.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The performance of all divisions is subject to seasonal
fluctuations. The transaction volumes of the Service division usually increase
in autumn and spring and the Construction division’s turnover and the
Development division’s investment volumes decline in winter.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of the IV quarter of 2013, the group
comprised of 23 companies (31 December 2012: 23). In addition, at 31 December
2013 the group had one joint venture (31 December 2012: 2) and one associate
(31 December 2012: 1).</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group’s active markets are Estonia, Latvia and
Bulgaria.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Mission, vision and shared values</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The mission of Arco Vara is</span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span style="font-size:9pt;">
to be a comprehensive and valued provider of real estate
solutions</span></span><span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The vision of Arco Vara is</span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span style="font-size:9pt;">
to become a symbol of real estate</span></span><span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Our core values include:</span></span> 

                <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Partnership </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– our client is our partner</span></span> 

                <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Reliability </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– we are reliable, open and honest</span></span> 

                <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Professionalism </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– we deliver quality</span></span> 

                <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Consideration </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– we value our clients as individuals</span></span> 

                <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Responsibility </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– we keep our promises</span></span> 



 <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">KEY PERFORMANCE INDICATORS</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Revenue for 12 months 2013 was 14.2 million euros, which
was 31% lower compared to previous</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">year. Most significant reduction in revenues is related
to construction services, decreased by 6.3 million euros in 2013. Revenue of
development division decreased by 0.6 million euros or 7% and revenue of
service division increased by 0.3 million euros or 13%. Revenue decreased in Q4
2013 by 59% compared to the same period of last year.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Operating proft for 2013 was 4.4 million euros,
significant part of which was gain from reversals of provisions and revalutions
of assets and liabilities by 3.1 million euros in total. In 2012, operating
loss was 16.1 million euros, of which loss from recognition of provisons and
revaluation of assets and liabilities totalled 15.8 million
euros.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group ended up year 2013 with net profit of 3.4
million euros. Last year, net loss was 18 million euros.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In 2013, equity to assets ratio showed significant
improvement. As at 31 December 2013, it was 27%, compared to 11% at 31 December
2012.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group net loans have decreased to 14 million euros
as at the end of 2013 (17.1 million euros as at 31 December 2012). Average
annual interest rate of loans decreased to 6.0%, annual decrease by 0.5
percentage point.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·                    </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In 2013, was sold 73 apartments, plots and commercial
areas developed in the group (81 in 2012), of which 14 in Q4 2013 (24 in Q4
2012).</span></span> 

                  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12 month             <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">12 month                 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Q4                   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Q4 
                                                                               
             2013</span></span>                                                
                                       2012</span></span>                      
                                                               
2013</span></span>                                                             
                          2012</span></span> 
<span 
 style 
="font 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 milli 
ons of 
 euros 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14.2</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">20.7</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.9</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">4.7</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
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8pt;"> 
Revenu 
e</spa 
n></sp 
an> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">4.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16.1</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.6</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16.1</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Operat 
ing 
 profi 
t/loss 
</span 
></spa 
n> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-18.0</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17.0</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Net 
 profi 
t/loss 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.72</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-3.79</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.30</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-3.58</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
EPS 
 (in 
 euros 
)</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">25.1</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">31.2</span></span> 
 style 
="font 
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serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 asset 
s at 
 perio 
d-end< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">21.7</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">21.4</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Invest 
ed 
 capit 
al at 
 perio 
d-end< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14.0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">17.1</span></span> 
 style 
="font 
-famil 
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l, 
 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Net 
 loans 
 at 
 perio 
d-end< 
/span> 
</span 
> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6.8</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3.4</span></span> 
 style 
="font 
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serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Equity 
 at 
 perio 
d-end< 
/span> 
</span 
> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.3</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.0</span></span> 
 style 
="font 
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serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Averag 
e loan 
 term 
 (in 
 years 
)</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6.0%</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">6.5%</span></span> 
 style 
="font 
-famil 
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serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Averag 
e 
 inter 
est 
 rate 
 of 
 loans 
 (per 
 year) 
</span 
></spa 
n> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">neg</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">neg</span></span> 
 style 
="font 
-famil 
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serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
ROIC 
 (roll 
ing, 
 four 
 quart 
ers)</ 
span>< 
/span> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">neg</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">neg</span></span> 
 style 
="font 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
ROE 
 (roll 
ing, 
 four 
 quart 
ers)</ 
span>< 
/span> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">178</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Number 
 of 
 staff 
 at 
 perio 
od-end 
</span 
></spa 
n> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">FORMULAS USED</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Earnings per share </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">(EPS) = net profit attributable to owners of the parent
/ (weighted average number of ordinary shares outstanding during the period –
own shares)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Invested capital</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">= current interest-bearing liabilities + non-current
liabilities + equity (at end of period)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Net loans</span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">= current interest-bearing
liabilities + non-current liabilities – cash and cash equivalents – short-term
investments in securities (at end of period)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Equity to assets ratio</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">= equity at end of period / total assets at period
end</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Average equity</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">= past four quarters’ equity at end of period /
four</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Return on equity </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">(ROE) = past four quarters’ net profit / average
equity</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Average invested capital </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">=</span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">past four quarters’
current interest-bearing liabilities, non-current liabilities and equity /
four</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Return on invested capital </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">(ROIC) = past four quarters’ profit before tax and
interest expense / average invested capital</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Number of staff at period-end </span></span><span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">= number of people working under employment  and service
contracts</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">GROUP STRUCTURE</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">As at 31 December 2013</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">CHANGES IN GROUP STRUCTURE DURING 2013</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 1 March 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Pärnu Turg OÜ to Bellvory Turg OÜ. The group’s
sales gain on the transaction amounted to 98 thousand euros. As a result of the
divestment, the group’s assets decreased by 2,067 thousand euros and its loan
liabilities declined by 772 thousand euros. The group’s annual revenue will
decrease by around 300 thousand euros.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 30 May 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary T53 Maja OÜ to the group’s parent Arco Vara AS.
The purpose of the divestment was to streamline the group’s structure and loan
relations and achieve administrative cost efficiencies. The transaction had no
impact on the group’s financial position or financial
performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 31 May 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Kolde AS to the group’s parent Arco Vara AS.
The purpose of the divestment was to streamline the group’s structure and
achieve administrative cost efficiencies. The transaction had no impact on the
group’s financial position or financial performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 20 June 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Kerberon OÜ to the group’s parent Arco Vara AS.
The purpose of the divestment was to streamline the group’s structure and loan
relations and achieve administrative cost efficiencies. The transaction had no
impact on the group’s financial position or financial
performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 1 July 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Arco Development SIA to the group’s parent Arco
Vara AS. The purpose of the divestment was to streamline the group’s structure
and loan relations and achieve administrative cost efficiencies. The
transaction had no impact on the group’s financial position or financial
performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 8 July 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Arco Invest UAB to the group’s parent Arco Vara
AS. The purpose of the divestment was to streamline the group’s structure and
loan relations and achieve administrative cost efficiencies. The transaction
had no impact on the group’s financial position or financial
performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 17 July 2013, Arco Investeeringute AS divested its
100% interest in the subsidiary Marsili II SIA to the group’s parent Arco Vara
AS. The purpose of the divestment was to streamline the group’s structure and
loan relations and achieve administrative cost efficiencies. The transaction
had no impact on the group’s financial position or financial
performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 9 August 2013, the group’s Bulgarian subsidiary Arco
Invest EOOD established subsidiary Arco Manastirski EOOD with 100% ownership
and share capital amounted to 2,676 thousand euros. On 4 September 2013, Arco
Invest EOOD divested its shares in Arco Manastirski EOOD to Arco Vara AS. The
transaction had final registrations in October 2013. The aim of transaction was
separate different assets into separate legal entities (Madrid Blvd development
and Manastirski Livadi development). The transaction had no impact on the
group’s financial position or financial performance.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 30 September 2013, the group’s subsidiary T53 Maja OÜ
was renamed to Arco Vara Haldus OÜ.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">On 29 November 2013, Arco Investeeringute AS sold its
50% share in the joint venture Arco HCE OÜ to Ahtrimaa OÜ, the other 50%
shareholder of the joint venture. In the framework of the transaction the
credit relations related to Ahtri 3 were restructured and all court disputes
between Danske bank on the one hand and Arco HCE OÜ, Arco Investeeringute AS
and Ahtrimaa OÜ on the other hand became settled. The group has no more rights
or obligations related to Arco HCE OÜ or Ahtri 3 land plot. As a result of the
transaction the group reversed provision in amount of 1.9 million euros that
was created in previous years to cover the possible obligations arising from
the surety to Danske bank.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Group continues restructuring and simplification of
group structure. The goal is to have two-tier group structure. Resturcturing
must meet two criterias:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">i)             </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Direct control of all relevant business entities by
parent company;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">ii)            </span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Separating all development projects into separate
companies- i.e. one project, one entity.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">As a result all risks, revenues and liabilities of
separate projects are kept in individual companies.  Due to changes parent
company will have direct control of all development projects (as owner and
creditor) and other relevant subsidiaries which offer products and services to
clients.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;"> Group Chief Executive’s review</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Q4 and the whole year ended successfully for the group.
The management’s objective in general terms was to restructure of the group’s
balance sheet to such extent that it would contain only actively productive
assets and related liabilities. We had to remove from the balance sheet
non-productive assets and liabilities related to them. All objectives that were
set in the beginning of year became fulfilled, especially the re-launch of
profitable development activities in Riga and in Sofia, as well as acquisition
of landbank at Paldiski road in Tallinn that is suitable for future profitable
development. The group cleaned its balance sheet: exited from Tivoli and Ahtri
projects and was released from related liabilities. The group completed the
sale and delivery  of blocked apartments in Sofia and reduced its outstanding
loan liability. Arco construction company performed duly its pending contracts
and is, ast at the date of the present report, sold out of the group. The
operations volume of service division grew.        </span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Development division: mass developments:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">a)  We proceeded according to timetable with the project
in Tallinn, Paldiski road 70c, which is currently in detail planning stage.
Presumed volume is 300 apartment units, presumed gross sellable area (GSA)
above grade 24 000 sq.m.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">b)   On 15.11.2013 we started the construction of the
project in Sofia, Manastirski Livadi Stage II with presumed volume of 132
apartment units and gross sellable area above grade  of 12 500 sq.m. As of the
date of the present report, construction is ahead of schedule by two weeks and
more than 30% of gross sellable area is already booked by means of presale
agreements. </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;"> c)     We will also proceed with Manastirski Livadi
Stage III where the group is the owner of the immovable, construction rights
and partly completed under grade construction. Presumed project volume is
exceeding 70 apartments and GSA above ground is in excess of 6,000 sq.m. The
project will be launched in accordance with fulfilment of the internal sales
targets of Stage II, presumably by end of 2015;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;"> d)     The group continues selling Bisumuiša-1
apartments in Riga. As at the end of Q4, 2 apartments from the finished 14
apartment block remained unsold and as at the date of the present report, the
construction of the last 14-apartment block is pending. The pre-sale will
commence in March 2014. </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">e) In Estonia, the next consumer residence products will
be ready for delivery in 2015 as planned.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">f) The biggest risk of upcoming quarters is related to
consequences of nonperformance of the Piraseus Bank loan agreement by Arco
Invest EOOD, fully owned subsidiary of the group. The loan was received for
construction of the Madrid blvd building in Sofia. The liabilities relates to
Madrid Blvd building are a little smaller, than the value of the said building
in the balance sheet and neither the group’s parent nor any of its significant
subsidiaries is guaranteeing these liabilities. According to the loan
agreement, Arco Invest EOOD is obliged to repay during 2014 1.8 million euros
and by June 30, 2015 the rest of remaining principal in amount of 10.4 million
euros. Although the lettable area in the building is 99% occupied and is
producing positive cashflow, which among others is sufficient to cover all loan
interest costs, the sales pace of existing apartments stock in the building is
not sufficient to catch up the principal repayment schedule of 1.8 million
euros during 2014.  The deadline of full principal repayment by June 2015
presumes the sale of lettable area by that time. As of the date of present
report, Arco Invest EOOD has failed to repay principal in amount of ca 250.000
euros in due time. The negotiations with Piraeus bank to terminate the
constrcution loan agreement and refinance it with a long term investment loan
that is served from the rent revenues of Arco Invest EOOD are pending. It is
also possible that the group will complete the interior works of unsold
apartments and puts them to the short-term rental market, a business concept
that the group started already in 2013.     </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Comment on sale revenues</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">As a minimum it takes more than 4 years to complete one
full production cycle of the group’s main product – residential or office
property, if one counts the time from the moment of acquisition of the land
without building rights, followed by design, construction and selling or
letting out.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The sale revenues of Q4 met the
expectations.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The groups own projection for 2014 revenues is 9 million
euros, of which 50% is made by sale of development products, 11% is made by
rent of development products and 39% is made by service division.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The sale revenue of development products remains minimal
until Q4 2014 and consists until Q4 mainly of the revenue from sale of Riga
apartments. We will complete construction and start the delivery of Manastriski
Livadi II apartments in Q4. The revenue from rents is stable throughout the
year, as well as the revenue from service division. </span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Comment on profit</span></span> 


<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The groups target for 2013 was to achieve operating
profit. After  12 months, we are making operating profit as well as net profit
in service and development division, and the group makes net profit. Partly the
profit was made because the group solved the problems  underlying the 
provisions that were created previously. At foremost it is pleasing that the
group made money for its shareholders and created added value for its customers
with its dvelopment products and services.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group expects to make in 2014 an operating profit of
not less than 1.5 million and net profit  of not less than 500 thousand euros.
</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Development division is the most profitable part of the
group and remains so in the foreseenable future, depending on its sale volumes,
of course.  Sale volumes and especially their future increase depend, in case
of Arco Vara, at foremost on success of creating its own landbank, professional
design, optimal construction and group finance. We are engaged in all these
directions simultaneously, as reported also previously.  </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">As regards the service division, it should be
continuously noted that we have increased expenditure and investments into main
assets and work processes improvement (software, team trainings etc), which
have been postponed in previous years. This reduces the profitability of
service division in 2014.  In the long run the expenditure and investments
should result in further increase of service division’s revenue and also
increase of profit. It should also bring along the further improvements in the
quantity and quality of the input data for development division.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Construction division completed the year and fulfillment
of existing contracts with a minimal loss, that is an optimal result, all
circumstances considered. We have no plans to continue constrution  activities
in the same line.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;"> REVENUE AND PROFIT</span></span> 



                   <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">12month             <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12 month                  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Q4                   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Q4 
                                                                               
             2013</span></span>                                                
                                       2012</span></span>                      
                                                               
2013</span></span>                                                             
                          2012</span></span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 milli 
ons of 
 euros 
</span 
></spa 
n> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Revenu 
e</spa 
n></sp 
an> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">8.1</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">8.6</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.2</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.9</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Develo 
pment< 
/span> 
</span 
> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2.8</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.6</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.8</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.7</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Servic 
e</spa 
n></sp 
an> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3.5</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">9.8</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.0</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Constr 
uction 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.2</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.3</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.1</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.1</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Elimin 
ations 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14.2</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">20.7</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.9</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">4.7</span></span> 
 style 
="font 
-famil 
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 Helve 
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 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 reven 
ue</sp 
an></s 
pan> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Operat 
ing 
 profi 
t</spa 
n></sp 
an> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">5.1</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-14.9</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-14.8</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Develo 
pment< 
/span> 
</span 
> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.2</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.3</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.3</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Servic 
e</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.1</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.3</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.6</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.5</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Constr 
uction 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.3</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.2</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.0</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Elimin 
ation< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.5</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1.4</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.2</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.8</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Unallo 
cated 
 incom 
e and 
 expen 
ses</s 
pan></ 
span> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">4.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16.1</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.6</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 opera 
ting 
 profi 
t</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1.0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1.7</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.2</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.6</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Financ 
e 
 incom 
e and 
 expen 
ses 
 (net) 
</span 
></spa 
n> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.2</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Income 
 tax</ 
span>< 
/span> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-18.0</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.4</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17.0</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Net 
 profi 
t</spa 
n></sp 
an> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">CASH FLOWS</span></span> 

                  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12 month            <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">12 month                 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Q4                  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Q4 
                                                                               
             2013</span></span>                                                
                                      2012</span></span>                       
                                                              
2013</span></span>                                                             
                         2012</span></span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 milli 
ons of 
 euros 
</span 
></spa 
n> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.3</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.3</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.5</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 flows 
 from 
 opera 
ting 
 activ 
ities< 
/span> 
</span 
> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.7</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.8</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.3</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.1</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 flows 
 from/ 
used 
 in 
 inves 
ting 
 activ 
ities< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-2.9</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-3.5</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.5</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1.5</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 flows 
 used 
 in 
 finan 
cing 
 activ 
ities< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-0.9</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-0.4</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.3</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.6</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Net 
 cash 
 flows 
</span 
></spa 
n> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1.8</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2.2</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.6</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1.2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 and 
 cash 
 equiv 
alents 
 at 
 begin 
ning 
 of 
 perio 
d</spa 
n></sp 
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<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.9</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1.8</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0.9</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1.8</span></span> 
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Cash 
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<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">During next 12 months the group must pay back 1.45
million euros of loans in Boulevard Residence Madrid in Sofia.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">During 12 monts of 2013 the group has made loan
repayments in Madrid and Manastirski projects in Sofia and completely paid back
loans of Pärnu Turg, Kodukolde and Kastanimaja projects in
Estonia.</span></span> 


<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Also sale-related debt reduction has been occurred in
Marsili II SIA and loan payment schedule has been set for loan of Arco Real
Estate AS.</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">SERVICE DIVISION</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">Service division Estonia</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Real Estate Ltd and Arco Vara Haldus Ltd make up
the Estonian service division. The most important part of Arco Real Estate
Ltd’s turnover in 2013 IV quarter was made up by brokerage activities and
valuations. There were 211 brokerage transactions and 640 valuation reports.
The turnover of both activities together in IV quarter vas 366,6 thousand euros
which is 25,3% of the sales of the entire year. Compared to 2012 last quarter
the turnover has decreased 4,8%. During the last quarter of 2013 were sold the
last remaining apartments of the Lutheri Quarter (Vana-Lõuna 39) the sales of
which had given largest part of revenue in 2012. During the year the brokerage
fees and exclusive sale mandates in the brokerage activities have decreased
which consequently have led to the decrease in brokerage sales revenue. In the
appraisal activity the unit price has however increased and this has affected
the revenue of the appraisal activity. The 12 month turnover of the company was
1 444.1 thousand euros which is  6% less than the 12 months results in 2012 (1
538.9 thousand euros).</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The brokerage activities are in many ways affected by
the real estate developers’ desire to sell their own products and hire a sale
manager instead of giving the exclusive sale mandate to real estate agencies.
On the other hand the appraisal activity is with each year more and more being
transferred to the certificated valuators.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In the VI quarter Arco Real Estate Ltd continued
increasing the volume of activity and recruiting additional employees. At the
end of the year 62 people worked at the company. The company has decided to put
more emphasize to providing better service to Russian-speaking clients. In
order to reach that goal a representative of Arco Real Estate Ltd has been
hired to cover the region of St. Petersburg.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">As a result of the reformation of</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">T53 Maja Ltd Arco Vara Haldus Ltd was established and
started providing property management services. The goal of the company is to
develop a sufficient clientele primarily in magaging the commercial real
estate. Company started operating in IV Quarter of 2013 and there is no revenue
from maintenance activities. Company had one employee by
year-end.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Service division activities in Latvia</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In Latvia the service division consists only of
brokerage and appraisal activity. Arco Real Estate Ltd the minority
shareholding, i.e 40%, in Arco Facility Management Ltd. Due to the fact that we
have minority participation and Arco Vara group does not control the activity
of the mentioned related company the results of it have not been disclosed in
the quarterly report.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The turnover of the brokerage and appraisal activity
increased in IV quarter abruptly. The growth in the brokerage activity compared
to the same period last year was up to 101%, i.e 137 thousand euros (68,3
thousand euros in 2012 IV quarter) and in the appraisal activity the growth was
10%, i.e up to 135,1 thousand euros (122,9 thousand euros in 2012 IV quarter).
The reason fro the extremely large growth of the turnover was the fear that the
Republic of Latvia will stop or limit the issuance of residence permits to
those foreigners who acquire real estate in Latvia. Today it is known that the
government will prolong the residence permit program until 2014 April. By that
time the new criteria for issuing residence permits will be worked out.
Undoubtedly such a growth in the turnover is temporary and the company does not
expect that achieved turnover in brokerage activity will remain the same. The
turnover of Arco Real Estate Ltd during 12 months in 2013 was 1005 thousand
euros (770 thousand euros for 12 months in 2012 ) increasing 13%.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of the year 78 people worked at Arco Real
Estate Ltd</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Service division activities in Bulgaria</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Bulgarian service division includes/consist of the
following activities:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">real estate brokerage and
appraisals (Arco Imoti)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">property management
services (Arco Facility Management);</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">providing accommodation
service (Arco Projects)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">real estate rental service
(Arco Invest)</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The turnover of the brokerage activity of Arco Imoti Ltd
grew in 2013 IV quarter 18%, i.e up to 122 deals per month. Despite the very
weak sale results in November and December the turnover of the brokerage
activity grew 24%, i.e up to 98,9 thousand euros, compared to the IV quarter of
last year. Compared to the IV quarter of last year the turnover of the
appraisal activity decreased marginally – from 14,0 thousand euros to 13,5
thousand euros.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The demand for brokerage services in the IV quarter was
lower compared to the previous months of the year which is different than the
market development in 2012. At the moment the recovery of the demand is
detectable and primarily the demand on the market for bigger, 3-bedroom,
apartments is increasing. The lack of existing high-quality apartments and new
developments has brought along an increase in the market prices of the
apartments – approximately 2...3 per cent  compared to the same period last
year. Regarding the evaluation activities the market has stayed active and in
that part the IV quarter of 2013 did not differ significantly from the last
year. The main part of the evaluation services is connected to the appraisal of
the private residences and apartments or the evaluation of the real estate of
the companies (primarily in order to find out the value of the real estate
investments).</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In IV quarter of 2013 3 new brokers joined the team of
Arco Imoti Ltd which makes the total number of people in the broker’s team 14.
All together 22 people worked at the company at the end of the
year.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The turnover of Arco Facility Management Ltd in the IV
quarter was 28,2 thousand euros which is 72% more than it was in last year
during the same period (16,4 thousand euros). The services are mainly provided
in the Madrid commercial building in Sofia. At the end of the IV quarter of
2013 2 peoples worked at the company.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Projects Ltd rents the apartments in the Madrid
commercial building. At the end of the IV quarter of 2013 4 apartments were
being used by the company. The 2013 IV quarter turnover of the company was 9,9
thousand euros. The company starting providing the rental service only in 2013
and the turnover of the whole year was 23,7 thousand euros. At the end of year
2013 2 empoyees worked at the company.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Invest Ltd rents out commercial premises in the
Madrid complex. The rental turnover of the company at the end of the IV quarter
of 2013 was 249,7 thousand euros which is somewhat more than in the last
quarter of year 2012 when the rental revenue was 234,8 thousand euros. The
revenue of property management and other sale revenue remained basically the
same compared to the last quarter of year 2012.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The most important change was the 55% decrease in the
real estate sales turnover compared to the IV quarter of 2012. A significant
part of the sales, 125 thousand euros, was made up by the sales inside the
group (3 apartments were sold to Arco Manastirski Ltd) in order to better
manage the risks of the company. This turnover is excluded from consolidated
turnover.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">DEVELOPMENT DIVISION</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Development division activities in Estonia</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of the IV quarter of 2013 the development
division in Estonia consisted of the following companies:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Arco Investeeringute
Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Kolde Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Kerberon
Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">T53 maja
Ltd.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The turnover of the development division in Estonia in
the IV quarter of 2013 was 139.6 thousand euros which was the sale of the last
apartment of Tehnika 53. In the last quarter of 2012 the development division
in Estonia did not have turnover as well. All together the turnover of the
development division in year 2013 was 1 864.0 thousand euros which was made up
by the sales of the Tehnika 53 apartments.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The development division in Estonia continued dealing
with the proceedings of the detailed plans of Paldiski road 70 and Lehiku
street. At the end of year 2013 in Estonia the development division did not
have a store with completed products which could be sold. </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">2 people work in the development division in
Estonia.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Development division activities in Latvia</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of the IV quarter of 2013 the development
division in Latvia consisted of the following companies:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Arco Development
Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Marsili II
Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Ulmana gatves nami
Ltd.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The Latvian (including Riga) real estate market has
greatly been influenced by the real estate companies of the credit institutions
and therefore by the relatively low priced offers that puts pressure on the
sales of the new apartments in Riga. On the other hand it is expected that
active sales by the real estate companies of the banks will stop in
2014.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Development Ltd continued selling the apartments of
Kometas iel 2. In the IV quarter of 2013 5 apartments were sold and the
turnover was 294.8 thousand euros (1059 thousand euros in the IV quarter of
2012). All together the sales revenue of 12 months in 2013 was 642.9 euros (the
revenue of 12 months in year 2012 was 387.3 thousand euros). 2 apartments were
left in the store of the company.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Marsili II Ltd did not have any sales in the last
quarter of 2013. In the IV quarter of 2012 2 registered immovables were sold
for 69.2 thousand euros. The turnover of the company in 2013 was 134.9 thousand
euros (in 2013 212.9 thousand euros). 17 immovables were left in the store of
the company.</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Development division activities in
Bulgaria</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The development division in Bulgaria consists of the
following two companies:</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Arco Invest
Ltd;</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">·        </span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Arco Manastirski
Ltd.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The first on develops the Madrid commercial-residential
building in the centre of Sofia and sells the immovables of the building. The
other one deals with the construction and the sales of the blocks A and B of
Manastirski. In 2013 the construction of block A and B of Manastrirski was
started. The apartmenthouse consists of 132 apartments and 13 commercial areas.
The whole development area is 12.5 thousand square metres. By the end of the IV
quarter of 2013 the presale contracts for selling 22 apartments and 5
commercial areas were concluded. By the time of submitting the current
quarterly report the presale contracts for selling 43 apartments and 8
commercial areas have been concluded. The construction will be finished in the
IV quarter of 2014. The turnover of the whole year 2013 as in the IV quarter of
2013 was 85.0 thousand euros.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In the IV quarter of 2013 no immovables were sold in the
Madrid building.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of the year 110 apartments and 8 commercial
areas were left in the store of the company.</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">CONSTRUCTION DIVISION</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The Construction division included Arco Ehitus Ltd.
During the 4th Quarter company did not had any turnover( in 4th quarter 2012
the turnover was 1 187 thouand euros. Arco Ehitus had Annal turnover 9 801
thousand euros) . There is one empoyee at the end of year.</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">SUMMARY TABLE OF ARCO VARA’S PROJECTS AS AT 31 DECEMBER
2013</span></span> 



<span          <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Passive            <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">In preparation       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Under Construction          <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In stock             <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">Cash flow              
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Total 
 style                                               m2</span></span>          
                                                                               
 m2</span></span>                                                              
                             m2</span></span>                                  
                                                        m2</span></span>       
                                                                               
   m2</span></span>                                                            
                              m2</span></span> 
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<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">446 555</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">79 498</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">70 446</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">596 499</span></span> 
 style 
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9pt;"> 
Estoni 
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 <span        <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">40 331</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">40 331</span></span> 
style= 
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 <span  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">446 555</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">39 167</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">70 446</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">556 168</span></span> 
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<span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">2 450</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">110 951</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">960</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">39 888</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">154 999</span></span> 
 style 
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Latvia 
</span 
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n> 
 <span        <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">960</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">210</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">1170</span></span> 
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 <span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">2 450</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">110 951</span></span>     
 <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">39 678</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">153079</span></span> 
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<span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">6 651</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">15 842</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">5 674</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">7 349</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">35 516</span></span> 
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9pt;"> 
Bulgar 
ia</sp 
an></s 
pan> 
 <span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">6 651</span></span>        <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">15 842</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">3829</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">7349</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">33 671</span></span> 
style= 
"font- 
family 
:Arial 
   , 
Helvet 
 ica, 
sans-s 
erif;" 
><span 
style= 
"font- 
size:9 
pt;">b 
uildin 
g</spa 
n></sp 
 an> 
 <span        <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0</span></span> 
style= 
"font- 
family 
:Arial 
   , 
Helvet 
 ica, 
sans-s 
erif;" 
><span 
style= 
"font- 
size:9 
pt;">l 
and</s 
pan></ 
 span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">455 656</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">206 291</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">960</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">116 008</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">7 349</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">787 014</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Arco 
 Vara 
 Total 
</span 
></spa 
n> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">The results are in sq.meter ?.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Note: The development and success of the group’s
development projects depend largely on external factors, particularly on the
adoption of plans and the issue of construction permits by the local
governments and the planning authorities. Expectations of the projects’
realisation may also change over time in connection with changes in the market
situation and the competitive environment. Management estimates the value of
the projects portfolio on an ongoing basis and is prepared to sell any project
or part of a project at any time, depending on the results of the cost-benefit
analysis.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Passive</span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">– development projects
that have not reached the preparation or construction phase.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In preparation</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– development projects in the phase of market research,
marketing, detailed plan process or design work. In the case of apartment
development, the area presented is the gross above-ground building
right.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Under construction</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">– development projects for which financing has been
obtained and which are under construction.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In stock</span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">– completed development
projects, apartments or plots on sale.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Cash flow</span></span> <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">– completed development
projects that generate regular cash flow.</span></span> 


<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">PEOPLE</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">At the end of 2013, the group employed 178
people.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The remuneration of the member of the management
board/chief executive and the members of the supervisory board of the group’s
parent company including social security charges for 12 months of 2013 amounted
to 174 thousand euros compared with 230 thousand euros for 12 month of
2012.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The management board of Arco Vara AS has one member.
Since 22 October 2012, the member of the management board and chief executive
of Arco Vara AS has been Tarmo Sild.</span></span> 




<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">SHARE AND SHAREHOLDERS</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Arco Vara AS has issued a total of 4,741,707 shares. At
31 December 2013, the company had 1,778 shareholders and the share price closed
at 1.39 euros, a 11.39% decrease within twelve months.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The following charts reflect movements in the price and
daily turnover of the Arco Vara share</span></span> <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">in the 12 month of 2013    </span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In euros (EUR)</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Changes in share price compared with the benchmark index
OMX Tallinn in 12 month of 2013</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Index/equity</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">01.01.2013</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">31.12.2013</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">+/-%</span></span> 

<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">734,20</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:11pt;">817,72</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">11,38</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
OMX 
 Talli 
nn</sp 
an></s 
pan> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">1,58                  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:11pt;">1,40                 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-11,39</span></span> 
 style   EUR</span></span>                                                     
                                     EUR</span></span> 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
ARC1T< 
/span> 
</span 
> 





<span                              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;"> Number of shares</span></span>      
     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Interest 
 style                                                                         
                                                                               
                                                                               
 %</span></span> 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Major 
 share 
holder 
s as 
 of 
 31st 
 of 
 Decem 
ber 
 2013< 
/span> 
</span 
> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     920
000</span></span>   <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">19%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
AS 
 Baltp 
last</ 
span>< 
/span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     470
080</span></span>   <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">10%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Gamma 
 Holdi 
ng 
 OÜ</s 
pan></ 
span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     374
188</span></span>   <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:10pt;">8%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Alarmo 
 Kapit 
al 
 OÜ</s 
pan></ 
span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     324
495</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">7%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Osaühi 
ng HM 
 Inves 
teerin 
gud</s 
pan></ 
span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     312
378</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">7%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Lõhmus 
 Holdi 
ngs 
 AS</s 
pan></ 
span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     310
000</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">7%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
LHV 
 Pensi 
onifon 
d 
 L</sp 
an></s 
pan> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     234
000</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">5%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
10pt;" 
>OÜ 
 Rimon 
ne 
 Balti 
c</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     205
064</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">4%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Firebi 
rd 
 Repub 
lics 
 Fund 
 LTd</ 
span>< 
/span> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                     140
171</span></span>    <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">3%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Centra 
l 
 Secur 
ities 
 Depos 
itory 
 of 
 Lithu 
ania</ 
span>< 
/span> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                  1 574
886</span></span>   <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">33%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Other 
 share 
holder 
s</spa 
n></sp 
an> 
<span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">                                  4 741
707</span></span>  <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">100%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Total< 
/span> 
</span 
> 







<span   <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Number of shares                  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Interest 
 style   style   held</span></span>                                            
                                                                               
                                                     %</span></span> 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Holdin  Positi 
gs of   on</sp 
 membe  an></s 
rs of   pan> 
 the 
 manag 
ement 
 and 
 super 
visory 
 board 
s at 
 30 
 Septe 
mber 
 2013< 
/span> 
</span 
> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">920 000</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">19%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Toomas  Memebe 
 Tool   r of 
 (OÜ     Super 
 Baltp  visoy 
last)<   Board 
/span>  </span 
</span  ></spa 
>       n> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">470 080</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">10%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Arvo    Memebe 
 Nõges  r of 
 (Gamm   Super 
a       visoy 
 Holdi   Board 
ng      </span 
 OÜ)</  ></spa 
span><  n> 
/span> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">374 188</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">8%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Tarmo   Member 
 Sild    of 
 ja      Manag 
 Allar  eeMeme 
 Niine  ber of 
puu      Super 
 (Alar  visoy 
mo       Board 
 Kapit  </span 
al      ></spa 
 OÜ)</  n> 
span>< 
/span> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">334 002</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">7%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Hillar  Memebe 
-Peete  r of 
r        Super 
 Luits  visoy 
alu      Board 
 (HM    </span 
 Inves  ></spa 
teerin  n> 
gud 
 OÜ, 
 lähik 
ondsed 
)</spa 
n></sp 
an> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">312 378</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">7%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Rain    Memebe 
 Lõhmu  r of 
s        Super 
 (Lõhm  visoy 
us       Board 
 Holdi  </span 
ngs     ></spa 
 AS)</  n> 
span>< 
/span> 
<span   <span     <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">  -    </span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">0%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Stepha  Memebe 
n       r of 
 David   Super 
 Balki  visoy 
n</spa   Board 
n></sp  </span 
an>     ></spa 
        n> 
<span   <span       <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:9pt;">-    </span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">0%</span></span> 
 style   style 
="font  ="font 
-famil  -famil 
y:Aria  y:Aria 
l,      l, 
 Helve   Helve 
tica,   tica, 
 sans-   sans- 
serif;  serif; 
"><spa  "><spa 
n       n 
 style   style 
="font  ="font 
-size:  -size: 
9pt;">  9pt;"> 
Aivar   Memebe 
 Pilv<  r of 
/span>   Super 
</span  visoy 
>        Board 
        </span 
        ></spa 
        n> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">3,224,288</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:9pt;">68%</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
9pt;"> 
Total< 
/span> 
</span 
> 



   <span style="font-size:11pt;"> </span>

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:10pt;">DESCRIPTION OF THE MAIN RISKS</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Credit risk</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Credit risk exposure is the greatest at the Construction
and Development division. Accordingly, counterparties’ settlement behaviour is
monitored on on going basis quarantines and collaterials are also
used.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Liquidity risk</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The group’s free funds are placed on current accounts or
short-term deposits with the banks operating in Estonia, Latvia and Bulgaria.
Owing to high refinancing risk, cash flow management is critical. The group’s
cash and cash equivalents balance is constantly smaller than the balance of
loans that require refinancing in the next 12 months. At 31 December 2013, the
weighted average duration of interest-bearing liabilities was only 0.3 years
mainly due to stopping by the group scheduled loan principal repayments to
Piraeus bank. As a result whole loan amount could become redeemable
prematurely. At the end of 2013, the group’s cash and cash equivalents totalled
0.9 million euros and term deposits with maturities from 3 month to 2 years
totalled 0.3 million euros. Out of the above balance 0.7 million euros was
under the group’s own control and the rest was in accounts with restricted
withdrawal opportunities (mostly accounts of designated purpose where
withdrawals require the banks’ consent). Liquidity and refinancing risks
continue to be the most significant risks for the group.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Interest rate risk</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The base currency of most of the group’s loan agreements
is the euro and the base interest rate is 3 or 6 month EURIBOR. As a result,
the group is exposed to developments in international capital markets. At the
moment, the group does not use hedging instruments to mitigate its long-term
interest rate risk.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">In 2013, the group’s interest-bearing liabilities
decreased by 3.9 million euros to 14.9 million euros at 31 December 2013. In
2013, interest payments on interest-bearing liabilities totalled 1.0 million
euros. Compared with 31 December 2012, the weighted average interest rate as at
31 December 2013 decreased from 6.5% to 6.0%, mainly thanks to a decrease in
the interest rates negotiated on refinancing the bank loans of the group’s
Bulgarian development company.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Currency risk</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Purchase and sales contracts are mostly signed in local
currencies: euros (EUR), Latvian lats (LVL) and Bulgarian levs (BGN). Real
estate sales are nominated in euros due to that company has low currency risk
asset- liability structure. The group is not protected against currency
devaluations. Most liquid funds are held in short-term deposits denominated in
euros. Devalution risk will decrease since 2014 because Republic of Latvia
transferred to euro on 1 January 2014.</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">The chief executive/member of the management board
confirms that the directors’ report of Arco Vara AS for the fourth quarter and
twelve months ended 31 December 2013 provides a true and fair view of the
development, financial performance and financial position of the group as well
as a description of the main risks and uncertainties.</span></span> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Tarmo Sild                                              
                                             </span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">Chief Executive and Member of the Management Board of
Arco Vara AS</span></span> 

<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:9pt;">28 February 2014</span></span> 



<span style="font-family:Arial, Helvetica, sans-serif;">Consolidated statement
of comprehensive income</span> 



         <span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">12 month               <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12 month                    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Q4  <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">Q4 2012</span></span> 
        style=                                                                 
                        2013</span></span>                                     
                                                    2012</span></span>         
                                                                              
2013</span></span> 
        "font- 
        family 
        :Arial 
           , 
        Helvet 
         ica, 
        sans-s 
        erif;" 
        ><span 
        style= 
        "font- 
        size:8 
        pt;">N 
        ote</s 
        pan></ 
         span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 thous 
ands 
 of 
 euros 
</span 
></spa 
n> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">7,288</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">13,700</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">984</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,136</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Revenu 
e from 
 rende 
ring 
 of 
 servi 
ces</s 
pan></ 
span> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6,880</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">7,032</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">955</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,577</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Revenu 
e from 
 sale 
 of 
 own 
 real 
 estat 
e</spa 
n></sp 
an> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14,168</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">20,732</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,939</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">4,713</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">2 
8pt;">  .3</sp 
Total   an></s 
 reven   pan> 
ue</sp 
an></s 
pan> 
<span    <span  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-10,702</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-23,560</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,592</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-9,773</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">4 
8pt;">  </span 
Cost    ></spa 
 of       n> 
 sales 
</span 
></spa 
n> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,466</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-2,828</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">347</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-5,060</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Gross 
 profi 
t</spa 
n></sp 
an> 
<span    <span      <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">543</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,092</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">313</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">208</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">7 
8pt;">  </span 
Other   ></spa 
 incom    n> 
e</spa 
n></sp 
an> 
<span    <span     <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-278</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-267</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-87</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-64</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">5 
8pt;">  </span 
Market  ></spa 
ing       n> 
 and 
 distr 
ibutio 
n 
 expen 
ses</s 
pan></ 
span> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,979</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-3,409</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-559</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,399</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">6 
8pt;">  </span 
Admini  ></spa 
strati    n> 
ve 
 expen 
ses</s 
pan></ 
span> 
<span    <span     <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-359</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-5,445</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-262</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-4,691</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">7 
8pt;">  </span 
Other   ></spa 
 expen    n> 
ses</s 
pan></ 
span> 
<span    <span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,995</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-5,272</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,897</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-5,096</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">8 
8pt;">  </span 
Gain/l  ></spa 
oss on    n> 
 trans 
action 
s 
 invol 
ving 
 subsi 
diarie 
s and 
 joint 
 ventu 
res</s 
pan></ 
span> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">4,388</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,129</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,649</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,102</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Operat 
ing 
 profi 
t/loss 
</span 
></spa 
n> 
<span    <span       <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">23</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">84</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">13</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">9 
8pt;">  </span 
Financ  ></spa 
e         n> 
 incom 
e</spa 
n></sp 
an> 
<span    <span     <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-994</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,738</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-236</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-618</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">9 
8pt;">  </span 
Financ  ></spa 
e         n> 
 costs 
</span 
></spa 
n> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,417</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17,783</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,416</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,707</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Profit 
/loss 
 befor 
e 
 tax</ 
span>< 
/span> 
<span                 <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-251</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-251</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Income 
 tax</ 
span>< 
/span> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,417</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-18,034</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,416</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,958</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Profit 
/loss 
 for 
 the 
 perio 
d</spa 
n></sp 
an> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,400</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17,964</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,416</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,956</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
attrib 
utable 
 to 
 owner 
s of 
 the 
 paren 
t</spa 
n></sp 
an> 
<span                <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">17</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-70</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
attrib 
utable 
 to 
 non-c 
ontrol 
ling 
 inter 
ests</ 
span>< 
/span> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,417</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-18,034</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,416</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,958</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 compr 
ehensi 
ve 
 incom 
e/expe 
nse 
 for 
 the 
 perio 
d</spa 
n></sp 
an> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,400</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17,964</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,416</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16,956</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
attrib 
utable 
 to 
 owner 
s of 
 the 
 paren 
t</spa 
n></sp 
an> 
<span                <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">17</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-70</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-2</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
attrib 
utable 
 to 
 non-c 
ontrol 
ling 
 inter 
ests</ 
span>< 
/span> 
<span    <span 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  0</spa 
Earnin  n></sp 
gs per   an> 
 share 
 (in 
 euros 
)</spa 
n></sp 
an> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0.72</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-3.79</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.30</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-3.58</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
  - 
 basic 
</span 
></spa 
n> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0.66</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-3.79</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0.28</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-3.58</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
  - 
 dilut 
ed</sp 
an></s 
pan> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">Consolidated statement of financial
position</span></span> 



         <span           <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">31 December           <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">31 December 
        style=                                                                 
                       2013</span></span>                                      
                                                  2012</span></span> 
        "font- 
        family 
        :Arial 
           , 
        Helvet 
         ica, 
        sans-s 
        erif;" 
        ><span 
        style= 
        "font- 
        size:8 
        pt;">N 
        ote</s 
        pan></ 
         span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
EUR 
 tuhan 
detes< 
/span> 
</span 
> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">898</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,775</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 and 
 cash 
 equiv 
alents 
</span 
></spa 
n> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,360</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3,094</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  1</spa 
Receiv  n></sp 
ables    an> 
 and 
 prepa 
yments 
</span 
></spa 
n> 
<span    <span  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">10,824</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">11,701</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  2</spa 
Invent  n></sp 
ories<   an> 
/span> 
</span 
> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">13,082</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">16,570</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 curre 
nt 
 asset 
s</spa 
n></sp 
an> 
<span                <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">1</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Invest 
ments 
 in 
 equit 
y-acco 
unted 
 inves 
tees</ 
span>< 
/span> 
<span    <span     <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">240</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  1</spa 
Receiv  n></sp 
ables    an> 
 and 
 prepa 
yments 
</span 
></spa 
n> 
<span                <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">4</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Deferr 
ed 
 incom 
e tax 
 asset 
s</spa 
n></sp 
an> 
<span    <span  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">11,377</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">14,097</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  3</spa 
Invest  n></sp 
ment     an> 
 prope 
rty</s 
pan></ 
span> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">413</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">540</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Proper 
ty, 
 plant 
 and 
 equip 
ment</ 
span>< 
/span> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">19</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">21</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Intang 
ible 
 asset 
s</spa 
n></sp 
an> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12,054</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">14,659</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 non-c 
urrent 
 asset 
s</spa 
n></sp 
an> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">25,136</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">31,229</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
TOTAL 
 ASSET 
S</spa 
n></sp 
an> 
<span    <span  <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12,589</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">16,838</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  4</spa 
Loans   n></sp 
 and     an> 
 borro 
wings< 
/span> 
</span 
> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,223</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">6,645</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  5</spa 
Payabl  n></sp 
es and   an> 
 defer 
red 
 incom 
e</spa 
n></sp 
an> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">172</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,084</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Provis 
ions</ 
span>< 
/span> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">15,984</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">26,567</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 curre 
nt 
 liabi 
lities 
</span 
></spa 
n> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,308</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1,231</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  4</spa 
Loans   n></sp 
 and     an> 
 borro 
wings< 
/span> 
</span 
> 
<span    <span       <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">64</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  5</spa 
Payabl  n></sp 
es and   an> 
 defer 
red 
 incom 
e</spa 
n></sp 
an> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,308</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1,295</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 non-c 
urrent 
 liabi 
lities 
</span 
></spa 
n> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">18,292</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">27,862</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
TOTAL 
 LIABI 
LITIES 
</span 
></spa 
n> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,319</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3,319</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  0</spa 
Share   n></sp 
 capit   an> 
al</sp 
an></s 
pan> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,011</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,011</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Statut 
ory 
 capit 
al 
 reser 
ve</sp 
an></s 
pan> 
<span    <span      <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">60</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  0</spa 
Other   n></sp 
 reser   an> 
ves</s 
pan></ 
span> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,442</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,958</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Retain 
ed 
 earni 
ngs</s 
pan></ 
span> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6,832</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3,372</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 equit 
y 
 attri 
butabl 
e to 
 owner 
s of 
 the 
 paren 
t</spa 
n></sp 
an> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">12</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-5</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Equity 
 attri 
butabl 
e to 
 non-c 
ontrol 
ling 
 inter 
ests</ 
span>< 
/span> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6,844</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3,367</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
TOTAL 
 EQUIT 
Y</spa 
n></sp 
an> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">25,136</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">31,229</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
TOTAL 
 LIABI 
LITIES 
 AND 
 EQUIT 
Y</spa 
n></sp 
an> 








<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">Consolidated statement of cash flows</span></span> 



         <span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">12 month               <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">12 month                    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Q4                    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Q4 
        style=                                                                 
                        2013</span></span>                                     
                                                    2012</span></span>         
                                                                              
2013</span></span>                                                             
                           2012</span></span> 
        "font- 
        family 
        :Arial 
           , 
        Helvet 
         ica, 
        sans-s 
        erif;" 
        ><span 
        style= 
        "font- 
        size:8 
        pt;">N 
        ote</s 
        pan></ 
         span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 thous 
ands 
 of 
 euros 
</span 
></spa 
n> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14,393</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">25,757</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,539</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">5,327</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 recei 
pts 
 from 
 custo 
mers</ 
span>< 
/span> 
<span           <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-10,514</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-19,725</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,351</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-2,249</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 paid 
 to 
 suppl 
iers</ 
span>< 
/span> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-2,389</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-2,732</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-449</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-913</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Taxes 
 paid< 
/span> 
</span 
> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">235</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">471</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">52</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">53</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Taxes 
 recov 
ered</ 
span>< 
/span> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,158</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,577</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-248</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-317</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 paid 
 to 
 emplo 
yees</ 
span>< 
/span> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-277</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">145</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-87</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">250</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Other 
 cash 
 payme 
nts 
 and 
 recei 
pts 
 relat 
ed to 
operat 
ing 
 activ 
ities< 
/span> 
</span 
> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">290</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,339</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">456</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">2,151</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
NET 
 CASH 
 FROM 
 OPERA 
TING 
 ACTIV 
ITIES< 
/span> 
</span 
> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-34</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-28</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-16</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Purcha 
se of 
 prope 
rty, 
 plant 
 and 
 equip 
ment</ 
span>< 
/span> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">152</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">14</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">117</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">7</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Procee 
ds 
 from 
 sale 
 of 
 prope 
rty, 
 plant 
 and 
 equip 
ment</ 
span>< 
/span> 
<span                <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">80</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,160</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">60</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Procee 
ds 
 from 
 sale 
 of 
 inves 
tment 
 prope 
rty</s 
pan></ 
span> 
<span    <span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,610</span></span>        <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:   pt;"> 
8pt;">  13</sp 
Procee  an></s 
ds       pan> 
 from 
 sale 
 of a 
 subsi 
diary< 
/span> 
</span 
> 
<span                 <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-12</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-12</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Aquisi 
tion 
 of a 
 subsi 
diary< 
/span> 
</span 
> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-48</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-400</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-11</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-92</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Loans 
 provi 
ded</s 
pan></ 
span> 
<span                 <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">77</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">75</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Repaym 
ent of 
 loans 
 provi 
ded</s 
pan></ 
span> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-353</span></span>        <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-90</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Placem 
ent of 
 secur 
ity 
 depos 
its</s 
pan></ 
span> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">258</span></span>        <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">258</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Releas 
e of 
 secur 
ity 
 depos 
its</s 
pan></ 
span> 
<span                 <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">7</span></span>       <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">17</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Intere 
st 
 recei 
ved</s 
pan></ 
span> 
<span                 <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">0</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-90</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-42</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Other 
 payme 
nts 
 relat 
ed to 
 inves 
ting 
 activ 
ities< 
/span> 
</span 
> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,672</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">738</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">320</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-62</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
NET 
 CASH 
 FROM/ 
USED 
 IN 
 INVES 
TING 
 ACTIV 
ITIES< 
/span> 
</span 
> 
<span    <span    <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,046</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,399</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">165</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">169</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  4</spa 
Procee  n></sp 
ds       an> 
 from 
 loans 
 recei 
ved</s 
pan></ 
span> 
<span    <span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-4,809</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-4,392</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-325</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,569</span></span> 
 style  style= 
="font  "font- 
-famil  family 
y:Aria  :Arial 
l,         , 
 Helve  Helvet 
tica,    ica, 
 sans-  sans-s 
serif;  erif;" 
"><spa  ><span 
n       style= 
 style  "font- 
="font  size:8 
-size:  pt;">1 
8pt;">  4</spa 
Settle  n></sp 
ment     an> 
 of 
 loans 
 and 
 finan 
ce 
 lease 
 liabi 
lities 
</span 
></spa 
n> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-964</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-1,487</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-222</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-98</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Intere 
st 
 paid< 
/span> 
</span 
> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-75</span></span>      <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-31</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-66</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-15</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Other 
 payme 
nts 
 relat 
ed to 
 finan 
cing 
 activ 
ities< 
/span> 
</span 
> 
<span            <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-2,802</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-3,511</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-448</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,513</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
NET 
 CASH 
 USED 
 IN 
 FINAN 
CING 
 ACTIV 
ITIES< 
/span> 
</span 
> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-840</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-434</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">328</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">576</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
NET 
 CASH 
 FLOW< 
/span> 
</span 
> 
<span             <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,775</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,209</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">570</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1,199</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 and 
 cash 
 equiv 
alents 
 at 
 begin 
ning 
 of 
 perio 
d</spa 
n></sp 
an> 
<span              <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-840</span></span>     <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-434</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">328</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">576</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Increa 
se/dec 
rease 
 in 
 cash 
 and 
 cash 
 equiv 
alents 
</span 
></spa 
n> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">-37</span></span>        <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>       <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span> 
 style="font-f 
amily:Arial, 
 Helvetica, 
 sans-serif;"> 
<span 
 style="font-s 
ize:8pt;">Decr 
ease in cash 
 and cash 
 equivalents 
 through sale 
 of a 
 subsidiary</s 
pan></span> 
<span               <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">898</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,775</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">898</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">1,775</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Cash 
 and 
 cash 
 equiv 
alents 
 at 
 end 
 of 
 perio 
d</spa 
n></sp 
an> 





<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:11pt;">Consolidated statement of changes in
equity</span></span> 

                                                                               
                                                                               
                                         <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Equity attributable to
owners of the parent</span></span>                                             
                                                                               
                                                                         <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Non-controlling                  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Total 
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                          
interests</span></span>                                                        
                               equity</span></span> 
                      <span style="font-family:Arial, Helvetica,
sans-serif;"><span style="font-size:8pt;">Share    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Statutory capital             <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Other               <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">Retained    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">Total</span></span> 
                                                                               
           capital</span></span>                                               
                                     reserve</span></span>                     
                                                          
reserves</span></span>                                                         
                            earnings</span></span> 
<span 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
In 
 thous 
ands 
 of 
 euros 
</span 
></spa 
n> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,319</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,011</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">16,306</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">21,636</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-447</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">21,189</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Balanc 
e as 
 at 31 
 Decem 
ber 
 2011< 
/span> 
</span 
> 
<span       <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-300</span></span>    
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-300</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">512</span></span>     
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">212</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Acquis 
ition 
 of 
 non-c 
ontrol 
ling 
 inter 
ests</ 
span>< 
/span> 
<span       <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-17,964</span></span> 
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-17,964</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-70</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">-18,034</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 compr 
ehensi 
ve 
 expen 
se for 
 the 
 perio 
d</spa 
n></sp 
an> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,319</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,011</span></span>  
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>   <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-1,958</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,372</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">-5</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,367</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Balanc 
e as 
 at 31 
 Decem 
ber 
 2012< 
/span> 
</span 
> 
<span       <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>   <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">3,400</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,400</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">17</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,417</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Total 
 compr 
ehensi 
ve 
 incom 
e for 
 the 
 perio 
d</spa 
n></sp 
an> 
<span       <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">0</span></span>      <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">60</span></span>        <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">60</span></span>     <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">0</span></span>      
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">60</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Format 
ion of 
 equit 
y 
 reser 
ve</sp 
an></s 
pan> 
<span   <span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">3,319</span></span>  <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">2,011</span></span>  <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">60</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">1,442</span></span>   
<span style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6,832</span></span>    <span style="font-family:Arial,
Helvetica, sans-serif;"><span style="font-size:8pt;">12</span></span>    <span
style="font-family:Arial, Helvetica, sans-serif;"><span
style="font-size:8pt;">6,844</span></span> 
 style 
="font 
-famil 
y:Aria 
l, 
 Helve 
tica, 
 sans- 
serif; 
"><spa 
n 
 style 
="font 
-size: 
8pt;"> 
Balanc 
e as 
 at 31 
 Decem 
ber 
 2013< 
/span> 
</span 
> 




         Marko Err
         Finantsjuht/CFO
         [email protected]