November 2018

GREECE IN THE SPOTLIGHT:

A Worldwide Destination for Global Business Services and Shared Service Centers

Greece at your business' service

www.enterprisegreece.gov.gr

A. INTRODUCTION

A global trend

It is increasingly common for multinational companies to establish Global Business Services – GBS and Shared Service Centers – SSCs to provide services within the group. With the rise in volume of cross-border transac- tions and intensifying competition among multinational groups, companies often centralize the entire range of intragroup services in a single location to achieve efficiency and avoid duplication of services. This trend has led to a rise in intragroup SSCs.

Why Greece?

Many multinational companies have already chosen Greece as a preferred location for the establishment of Global Business Services – GBS and Shared Service Centers – SSCs. Greece presents a unique investment opportunity as it combines:

An advantageous geostrategic location A highly educated and multilingual work force Competitive wages Flexible investment framework Telecommunications infrastructure Competitive real estate Excellent climate and quality of life EU member country enjoying stability, security and prosperity

3 B. GREECE AS YOUR NEXT BUSINESS LOCATION

B1. GEOGRAPHIC POSITION

Strategically positioned as the Flight time from to (app.): gateway to 3 continents New York: 10 hours Moscow: 3 hours In a time zone (+/- 3h) Greece covers: London: 3,5 hours Dubai: 4 hours 2,4 bn people (30% of global population) Brussels: 2,5 hours Beijing: 8,5 hours ~30% of global GDP

Sweden Estonia Denmark Latvia Lithuania Russia Netherlands UK Belarus 2.000 km Poland Belgium 1.500 km Ukraine Slovakia Switzerland Moldova Slovenia Croatia Bosnia Serbia Montenegro AFRICA FYROM Albania Portugal Athens Tunisia Syria Algeria Lebanon Morocco Jordan Libya Egypt 1.000 km

4 B2. TELECOM INFRASTRUCTURE

Greece can satisfy all telecom infrastructure needs (fixed, mobile, data, fiber-optic networks etc.). International network: Greece is a part of • MedNautilus Submarine System-Sparkle • -Africa-Europe 1 (AAE-1) • The , a planned subsea ultra high speed fiber-optic cable system connecting Asia and Europe via the Mediterranean Sea Backbone network: OTEGLOBE, WIND, Vodafone, Forthnet, CYTA, among others According to the National Broadband Strategy, Next Generation Access aims are 100% broadband cov- erage with minimum speeds of 30 Mbps with at least 50% of households benefiting from100 Mbps by 2020. In line with the targets of the Gigabit Society, this should rise to 1 Gbps connectivity by 2025.

Asia-Africa-Europe 1 (AAE-1)

MedNautilus Submarine System

Source: https://www.grnog.gr/wp-content/uploads/sites/7/2018/07/ Polyrakis-Internet-Infrastructure-in-Greece.pdf

5 BROADBAND PENETRATION IN EU 28 50 th 45 GREECE 10 40 35 30 25 20 15 10 5 0 UK Italy Malta EE-28 Spain Latvia France Greece Cyprus Finland Ireland Austria Croatia Poland Sweden Belgium Portugal Slovenia Hungary Slovakia Bulgaria Denmark Germany Esthonia Lithuania Romania Netherlands Luxembourg

Source: Hellenic Telecommunications and Post Commission- June 2018, https://www.eett.gr/opencms/export/sites/ default/EETT/Electronic_Communications/TelecomMarket/broadbandServices/Broadband-stats-2017-Q4.pdf B3. TOP TALENT

Top talent at a highly competitive cost. Density of talent is key to building 3rd in percentage of graduates in Science strong ecosystems (ITIF Report Jan 2016).

Comparatively high density of developers

Oslo Helsinki 0,51% 0,36%

Copenhagen Stockholm Dublin 0,49% 0,65% 0,64% Amsterdam 0,61% Berlin 0,33% Paris 0,61% Zurich 0,29% Vienna Madrid 0,16% Lisbon 0,18% Rome 0,28% 0,05%

Athens 0,33% Source: https://talent.balderton.com/European_Tech_Talent_Landscape.pdf

6 AMONG THE EUROPEAN LEADERS IN SCIENCE & TECHNOLOGY WORKFORCE

Human resources in science and technology as a share of the active population

50,80% 48,70% 44,30%

38,50% 36,50% 36,50% 36,40% 36,30%

28,10% 27,70%

France Germany Spain Greece Bulgaria Hungary Portugal Italy Turkey Romania

Source: Science & technology statistics 2017

A MULTILINGUAL WORKFORCE

Percentage of Managers, Professionals, Percentage of Clerical Support Workers, Service Technicians and Associate Professionals & Sales Workers who speak a foreign language who speak a foreign language

Italy Italy Spain EE-28 Malta Spain EE-28 Malta Greece France Portugal Greece France Portugal Germany Germany

Source: Education statistics 2015

7 B4. GREECE REMAINS HIGHLY GOMPETITIVE IN THE EU ON HOURLY LABOR COST

Labour Cost per hour in Euro in the Service Sector

40,6

36,1

30,5 28,7 26,9 25,8

20,1

16,3 13,8 14,3

Belgium

Greece Portugal Cyprus Spain EU Italy EU Area Germany France Belgium

Source: Science & technology statistics 2017

GREECE REMAINS STRONGLY COMPETITIVE ON AVERAGE ANNUAL WAGE COST

60k

50k

40k

30k 25,1k

20k

10k

0k

Italy Chile Latvia Korea Israel Spain Japan Mexico Estonia Greece Poland Finland France Austria Canada Ireland Iceland Hungary Portugal Slovenia Sweden Belgium Norway Lithuania Germany Australia Denmark Netherlands Switzerland New Zealand United StatesLuxembourg Czech Republic Slovak Republic

Source: Employment Outlook 2017

8 B5. COMPETITIVE REAL ESTATE PRICES, AFFORDABLE LIVING COST WITH A UNIQUE LIFESTYLE COMPETITIVE REAL ESTATE MARKET IN PRIME CDB RENTS Prime CBD rents (€/sq.m./year), Q1 2018

Note: Prime rents refer to modern office space, minimum 1,000 sq m

Source: Market report, European Offices Savills

Vacancy rates, Q1 2018

11,00%

8,80% 8,30% 8,00% 7,00%

5,90% 5,70% 4,50%

2,30%

Athens Lisbon Brussels Frankfurt Barcelona Paris CBD London City Copenhagen Luxemburg Source: Market report, European Offices Savills

9 ATHENS' OFFICE MARKET CONTINUES ON A PATH OF IMPROVEMENT

B6. GREECE A UNIQUE PLACE TO LIVE

Greece scores high on all major factors taken into consideration when choosing a new country for relocating, such as quality of life, regulated environment, secure living conditions in urban and rural areas, access to efficient services, residence privileges for family members, freedom to travel:

Rich history and culture Natural beauty and mild climate Greek cuisine-Mediterranean diet A wide variety of educational options Modern healthcare infrastructure and highly skilled medical personnel Multilingual population Intellectual capital

10 IN A DEVELOPED MEDITERRANEAN ECONOMY AFFORDABLE AND COMPETITIVE LIVING COST Price level indexforhouseholdfinalconsumptionexpenditure,2017 Purchasing PowerParities (PPP)program whichwereconductedacross 37Europeanand services countries participatingintheEurostat-OECD coveringSource: (Resultsarebasedonprice morethat2,400consumergoods surveys (*) Thisdesignationiswithoutprejudicetopositionsonstatus,andinlinewithUNSCR1244theICJOpinionKosov per 100.000inhabitantsinEU,2009and2014 Greece Ranks 1rstin#ofPracticing physicians, QUALITY OF LIFE…

Former Yugoslav 47 Republic of Macedonia 48 Bulgaria 51 Serbia 52 Kosovo (*) Bosnia and Herzegovina 52 Romania 52 Albania 52 53 Turkey 55 Montenegro 56 Poland 62 Hungary 65 lithuania Croatia 67 69 Czech Republic Slovakia 69 Latvia 72 Estonia 79 2009 Malta 82 Greece 84 85

2014 Portugal Slovenia 85 Cyprus 88 92 Spain 101 Italy 103 EA-19 105 Germany 108

o Declaration ofIndependence. Austria 109 France 111 Belgium 112 Netherlands 117 United Kingdom 122 Finland 125 Ireland 125

Source: Sweden 127 Luxembourg 142 Denmark 143 Norway 159 11 Switzerland 166 Iceland B7. ESTABLISHMENT OF INTRA-GROUP SERVICE CENTERS IN GREECE AND AVAILABLE FINANCING

An attractive framework for businesses Intra-Group Service Centers established in Greece, under Law 3427/2005, may provide the following services to their head-offices or affiliates abroad, as well as in Greece: Consulting services, Centralized accounting services, Quality control of production, products, procedures and services, Preparation of studies, designs and contracts, Advertising and marketing services, Data processing services, Receipt and supply of Information and Research & Development services. The entities under this law are obliged to maintain a minimum size regarding the employment and operating expenses, at least 4 employees and €100.000 per year operating expenses in Greece.

FRIENDLY AND CONTEMPORARY FRAMEWORK

Intra-Group Service Centers enjoy the following benefits:

Flexibility with regards to the type of business entity Simple, fast and transparent licensing process Legal certainty with pre-defined profit margin on costs The submission of the necessary documentation can be done electronically Residence and work permits for its foreign staff

Companies wishing to establish presence in Greece for the provision of Intra-Group Services, subject to the provisions of Law 3427/2005, are required to submit to the Directorate for Foreign Capital at the Ministry of Economy and Development

INVESTMENT INCENTIVES FOR INTRA-GROUP SERVICES shortly available under Law 3427/2005

The following investment incentives will be shortly introduced as an amendment to the existing Law 3427/2005 in order to provide a comprehensive investment framework for GBS and SSCs in Greece.

Types of incentives: Total wage cost (wage and social security contributions) subsidies for the creation of new employment in labor intensive GBS and SSCs Total wage cost subsidies up to 50% for new scientific personnel and technical staff Subsidy for research tools and research equipment up to 50%

Provision of tax incentives: Tax exemption of 130% of total annual R&D expenses

12 FRIENDLY FRAMEWORK FOR START-UP FINANCING

Equifund a fund-of-funds to support innnovation and SMEs was launched with: 200 million euro from European and national funds 60 million from the European Investment Fund 40 million from the European Investment Bank European Fund for Strategic Investments, the core of the so-called ‘Juncker Plan’ and another 100 million is calculated to receive from other private investors. In total, 400 million euro is expected to be deployed in the period 2018-2023 in venture capital investing

TOP 10 MOST FUNDED GREEK STARTUPS

A total amount of more the 200 million euros have been invested in Greek startups during the period 2010-2016. For 2017, almost 100 million euros were added to this amount, as two of the biggest exits were announced, Taxibeat’s and Innoetics, for a combined total of almost €80m

COMPANY TOTAL FUNDING (IN MILLIONS)

1 Persado 83,46 €

2 Workable 30 €

3 Hellas Direct undisclosed

4 Metamaterial Technologies 16,26 €

5 Book 'n' Bloom 12,55 €

6 Resin.io 10,78 €

7 Blueground 6,94 €

8 Taxibeat (Beat) 5,49 €

9 Transifex 5,47 €

10 Intale > 5 €

Source: Foundation_Start ups in Greece report

13 …MORE THAN €250MN INVESTMENTS SINCE 2012

Foreign investors have acquired majority stakes in Greek startups Four Greeks were in the 2017 edition of Forbes 30 under 30 and two Greeks made it to the 2018 list

150

18x

100 90

75

50 50 40

5 0

2012 2013 2014 2015 2016

INVESTMENT INCENTIVES LAW

Aid schemes: Percentages depend on the size of the company and the region of the 1. Tax exemptions country in which the project will be 2. Cash grants implemented 3. Leasing subsidy (leasing) 4. Wage costs subsidy 5. Financial instruments (capital participation, loan guarantee, loan etc.) 6. Fixed tax regime for a certain period of time 7. Rapid licensing

State Aid percentages: The First Round for Calls of Interest has attracted 772 investment plans, Regional State Map percentages foresee maximum aid with a total investment budget of €2 rates reaching 55% of the total investment cost for small bn and €700 mn of total investment and very small enterprises and 35% for large enterprises. support. The first 70 projects have been approved with a total budget in excess of €500 mn

14 INTERNATIONAL BPOS & CONTACT CENTERS IN GREECE LARGE SIZE CONTACT CENTERS IN GREECE

847 companies offer business services to other companies in Greece More than 120 are shared service centers, mainly call centers Large size contact centers with over 250 positions operate at full capacity in Greece as regional mul- tilingual hubs, currently employing more than 20,000 highly skilled employees Smaller size call centers, with 50 to 100 positions, offer services mainly to the Greek market

CUSTOMER SUPPORT SERVICES STAFF NUMBER AND CALL CENTERS Teleperformance Greece 6,200 COSMOTE E-value 6,000 Mellon Group of Companies 4,500 ICAP Outsourcing Solutions 2,100 First Data Greece 1,100 360Connect 500 Mediate 500 Piraeus Direct Services 350

INTERNATIONAL BPOS & CONTACT CENTERS IN GREECE

In 2002 it became the Regional Headquarters for the Teleperformance Operations in South Europe & the Mid- dle-East and in 2004 it started becoming a major Multilingual destination for Europe, the Middle East and Africa, serving currently over 140 markets in 35 languages & dialects and employing more than 6,200 people from 91 nationalities. Teleperformance Greece operates today out of 3 Multilingual Hubs in Athens and 1 Site in Chania.

Accenture Analytics – “Center of Excellence” in Athens, a global analytics centre for Accenture, serving more than 30 markets, doing analytics in all developed and developing markets, such as, US, UK, Italy, France, Germany, Spain, Portugal, Greece, Turkey, Middle East, Japan, India, China.

Mediterranean Shipping Company operating a network of over 480 offices in 155 countries, employing a team of over 70,000 dedicated individuals. MSC has an established fleet of 490 container vessels with an intake capacity of circa 3.1 million TEU and its sailing schedules cover 200 routes, calling at 500 ports.

Oracle opened a new software center in Greece. Oracle’s cloud development hub will develop software applications and tools and provide support for customers of the California-based IT company. This is the company’s second biggest hub out of the five currently in operation. The other four are in the US, the UK, the Netherlands and India.

16 €43 mil. investment by Coca‑Cola HBC for one of the largest private sector ICT projects in Greece, serving 24/7 business transactions for 36,000 employees and 18.5 mil. orders annually

SAP sets up its first global data science delivery hub in Athens. The role of the new hub will not cover just the domestic and wider geographical region and would be the start of a further expansion of SAP’s activities in Greece.

The Coca-Cola Company established in the 2014 the Consumer Interaction Center (CIC), a pioneering social networking hub based in Athens. The CIC is operating like a startup, yet in full alignment with the Company’s philosophy and employs a total of 25 people, of which 8 in Athens, where the social media strategy for 26 countries is designed.

Nokia Solutions and Networks a wholly subsidiary of Finnish Nokia, launched new activities for its research and development center in Athens, creating more than 1100 job positions.

INTERNATIONAL BPOS & SHARED SERVICE CENTRES IN ACCOUNTING CONTACT CENTERS IN GREECE ESTABLISHED BY FOREIGN COMPANIES, L. 3427/2005 FOR INTRA-GROUP SERVICES

NAFTOMAR SHIPPING & TRADING CO LTD INC (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30

Nike Hellas (SPORTS CLOTHING) has established its centralized accounting SSC in Greece. # employees 46

World Gaz Corporation SA (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 37

BMS UNITED BUNKERS (CYPRUS) LTD, (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30

Consolidated Contractors Group S.A.L. (CCC) (CONSTRUCTION SECTOR) has established its centralized accounting SSC in Greece. # employees 589

PEOPLECERT (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 100

17 CRESCENT HOLDING GHBH (INVESTMENT SECTOR) has established its centralized accounting SSC in Greece. # employees 49

EPSILON HELLAS OVERSEAS LTD (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 40

GAS Security SA has established its centralized accounting SSC in Greece. # employees 11

HILL INTERNATIONAL (CONSULTING SERVICES ) has established its centralized SSC in Greece. # employees 34

IKEA FRANCHISE AND PROJECT MARKETING LTD (RETAIL SECTOR) has established its centralized SSC in Greece. # employees 27

SAMSUNG HEAVY INDUSTRIES CO LTD has established its centralized accounting SSC in Greece. # employees 4

DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO LTD has established its centralized accounting SSC in Greece. # employees 5

HANWHA CORPORATION has established its centralized accounting SSC in Greece. # employees 4

McGRAW-EDISON DEVELOPMENT CORPORATION has established its centralized accounting SSC in Greece. # employees 15

HYUNDAI HEAVY INDUSTRIES COPMANY LTD has established its centralized accounting SSC in Greece. # employees 4

Coca-Cola Hellas S.A. has established its centralized accounting SSC in Greece. # employees 67

18 Enterprise Greece is the official agency of the Greek State, under the supervision of the Ministry for Economy and Development.

To showcase Greece as an outstanding destination for investment and to promote the highly competitive products and services produced in Greece for export. Your partner for growth

Athens: 109 Vasilissis Sophias, 115 21 Athens, Greece Thessaloniki: 36 Tsimiski, 546 21 Thessaloniki, Greece Tel: +30 210 335 5700 email: [email protected] website: www.enterprisegreece.gov.gr/