Premuda : Financal Results 2014 - draft balance

DRAFT OF 2014 ANNUAL FINANCIAL REPORT APPROVED BY THE BOARD OF DIRECTORS

CONSOLIDATED GROUP RESULTS (net of minority interests):

Loss €41.8m (2013: Loss €32.7m)

Shareholders' Equity: € 98.0m (2013: € 126.0m)

PREMUDA SPA RESULTS:

Loss €10.8m (2013: €4.6m)

Shareholders' Equity: €116.3m (2013: €127.1m)

The 'Premuda SpA' Board of Directors has today approved the draft of Annual Financial Statements at December 31, 2014, drafted in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

The financial year 2014 was defined by the action of negotiations with the banks aimed at reaching an agreement to restructure the financial indebtedness for the entire Group (under Art. 67 of the Italian Bankruptcy Law for the Italian Companies).

Pending these negotiations, the freight market has continuously deteriorated rendering unfeasible the forecasted plan presented to the Lenders and for which an agreement was about to be reached by the end of July 2014. Due to the very poor freight market conditions, the Group has unilaterally suspended also the interest payments since December 2014 (principle not repaid since June 2013 as already known) in order to preserve the necessary liquidity to fulfill all the commercial transactions.

For that reason the Group has amended both the industrial (prepared with VSL Spa) and the financial plan many times during the last year. With its financial advisors (Lazard Srl), the Group has met many times with the Lenders with its new updated proposals which reflected the market evolution as well as the Lenders requests.

The last proposal was presented to the Lenders on 7th April 2015 and, at the date of the signature of this Financial Statement, the Group (and the Company) is awaiting comments. The negotiation is, therefore, still ongoing.

However, the Company's Directors, after having analyzed the situation, believe that the outcome of the negotiations could lead to the safety of the Company and the Group and evaluates a positive outcome in the negotiations could be more likely than other scenarios like a liquidation of all Companies of the Premuda Group.