Greece in the Spotlight New Opportunities for International Investors

October 2018 Today | Priorities and Strengths | Reforms and Results | Path for Growth | Investment Projects Economic Outlοok Economic Outlοok – A Snapshot

 Greece’s economy grew by 1.4% in 2017, and by 2.2% in the first half of 2018, the highest figures since 2007

 The direct contribution of travel and tourism stood at €14.6 billion in 2017, is expected to rise by 5.6% to €15.1 billion in 2018 (WTTC 2018 Annual Research report). The total contribution is projected to increase by 5.3% to €36.9 billion in 2018, corresponding to 20.2% of GDP

 Exports grew by 13.2% to a new record of €28.83 billion in 2017

 Net Foreign Direct Investment inflows during 2017 reached €3.6 billion vs. €2.8 billion during 2016, an increase of 29.4%, following a 2nd consecutive year of increased flows. FDI inflows between January-May 2018 reached €1.728 million, showing an 8.6% increase compared to the same period in 2017, when inflows stood at € 1.590 million

 Estimated total value of M&A deals in 2017 came to €1.4 billion compared to €1.1 billion in 2016, marking a 30% increase within the last year, with 65% of the deals made by strategic investors (M&A Barometer 2017, EY)

 Building activity is showing signs of recovery with the number of building permits rebounding for the first time since 2005 by 8.6% in 2017

 Greek sovereign returned to the capital markets on 25 July, 2017 after three years, while the 10-year bond in December 2017 has reached a 10-year low at 4.39%, equal to its early 2008 level

EUROGROUP approved (June 2018) a 10-year deferral and maturity extension on a large proportion of the Greek debt, as well as €15 billion in new credit, signaling debt viability and easing access to capital markets Economic Outlοok - Snapshot Economic Outlοok - Snapshot Transforming the ecomomy New National Development Strategy

• The new paradigm for the economy will be underpinned by structural competiveness, social justice and the protection of the environment and the natural resources of the country • Fair Growth is a strategic choice, aiming for GDP and income recovery with long term viability, through capitalising on the highly skilled workforce , new productive investments in areas with high extroversion, innovation and a propensity to new technology, producing internationally tradable products and participating in wider value chains • Promotion of investment, exports, innovative small and medium-sized enterprises, value adding and competitive economic sectors, digital education, network development (telecoms, transport, ) • Support Regional development and the a Balanced Growth approach vis-a- vis urban and less urban regions of Greece Government Policies to improve Business Climate and return to growth

• Absorption of the Structural available funds for the period 2014-2020 (€36bn earmarked for the next period 2021-2027) • New investment Law to support new investments, totaling €11bn by 2023 • Cooperation with international financial institutions to increase liquidity and ease investment financing (EIB, EIF, EBRD, IFC, Black Sea Trade & Development Bank etc) • New Development Bank to support SMEs through microcredit, guarantees, loans, infrastructure, innovation • NPLs framework in place • Acceleration of the Privatisation agenda • Improved business Licensing in cooperation with the World Bank New Investment Incentives Law

Aid schemes: 1. Tax exemptions 2. Cash grants 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: Regional State Map percentages foresee maximum aid rates reaching 55% of the total investment cost for small and very small enterprises and 35% for large enterprises. New Financing Instruments for the Greek Economy (forthcoming)

• The EquiFund (Initial Capital €500 million from European, national funds, and extra funds from financial institutions and private investors) is now active • The Entrepreneurship Fund II (approx. €1 billion from NSRF and participating banks) • The new Infrastructure Fund (approx. €1 billion, 2nd semester of 2018) directed to development, regeneration and energy infrastructure projects • The Residential energy efficiency program (approx. €700 million, 2nd semester of 2018) • TANEO fund of funds has signed an MoU with Mubadala, Abu Dhabi’s strategic investment group, to create a €400 million co-investment platform, targeting investment opportunities found in key sectors of Greece’s economy • Business Restructuring Fund (approx. 400 million) to be announced in the 2nd semester of 2018) • The MicroLoans Fund (support to SMEs and entrepreneurs, approx. €200 million) Establishment of intra-group service Centers in Greece Intra-group service centers established in Greece, under Law 3427/2006, may provide the following services to their head-offices or affiliates abroad, as well as in Greece: • Consulting services • Centralised 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. Fast Track + Residence permit for non EU executives of the companies

Qualification Prerequisites The process

• The total value of the investment exceeds 100 million Euro Or One-stop- • The value of the investment exceeds 40 million Euro and, shop concurrently, the investment creates at least 120 new jobs Or • The investment creates at least 150 new jobs or at least 600 jobs are maintained in a viable and sustainable manner 45 day deadline Or • The value of the investment exceeds 15 million Euro for industrial investments within organized industrial areas or • the total investment cost exceeds 5 million Euro for Absolute investments regarding the development of Business Parks or priority • 3 million Euro for investments included in JESSICA initiative

13 projects approved (budget of €3.5bn) & 10 in the pipeline (budget of €3.8bn) Electronic Company Establishment e-OSS (One-Stop-Shop)

https://eyms.businessportal.gr/auth

Establishing a new company is now even easier through the new swift process introduced through a recently launched e-platform, in 3 steps: • Step 1: Insert company details • Step 2: Acceptance of company details and Articles of association by all company shareholders • Step 3: Automatic registration at the Business Registry (GEMI), Tax Authority (AADE), Local Chamber, Social Security Organisation (EFKA)

There will be gradual introduction of all business types (eg SA, Ltd, etc.) starting with single-member private capital companies A Unique Investment Proposition A Unique Investment Proposition

Combining: A. Timeless competitive advantages: Location & Natural resources B. Developed Country: Stability & Framework C. Emerging economy growth opportunity: • Market opening up to investment • Market consolidation • Run operations at highly competitive costs • Asset development • Growth sectors Supported by high-calibre Human Capital ...

Percentage of Managers, Professionals, Technicians and Associate Professionals TERTIARY EDUCATION who speak a foreign language ENROLLMENT (% IN POPULATION) 59% 60 53,3% 43,9% 50 41,1%39,3%38,9% 41% 40 28,5% 30 13,6% 20 10 0 ITA FIN EST ESP BEL CZE SVK PRT LTU LVA FRA LUX POL SVN NLD AUT GRC GBR DEU DNK SWE HUN OAVG

Source: OECD 2017 Percentage of Clerical Support Workers, Service & Sales Workers who speak a foreign language 55% 45,5% 40,8% 39,1% 36,7% 36,4% 31,2% 19,1%

Source: Education statistics 2015 ... available at a competitive cost

Source: OECD Employment Outlook 2017 Foreign Direct Investment as a key priority Selected Deals 2011-2017 Strategic Investments Underway PORT PRIVATISATIONS Privatisation of Piraeus Port (OLP) - COSCO

Privatisation of Piraeus port An €1.5bn total investment deal, confirmed in August 2016 when COSCO acquired 51% of the port, for €280.5 mn. The Port now ranks 3rd on container traffic in the Mediteranean and 7th in Europe (Porteconomics 2017) having managed to triple its container traffic volume within the last 10 years. At the same time Piraeus climbed another six places on the Lloyds Global Ports List 2017, 38th from 44th(2016). The beginning of 2019 will see OLP increase its total capacity in piers I, III and III to 7,2 mil. Teus’s, following the completion of the ongoing expansion plans. New Business at the Port is expanding with MNC’s like HP, Huawei, ZTE, Sony, Shanghai International Port Group, establishing a presence and expanding their business EU-wide.

“…the world’s fastest growing port, and will be the largest port in the Mediterranean by 2019.” Die Zeit (May 2018)

COSCO is set to invest around €466 million in transforming Piraeus into a Mediterranean home porting hub, through a master plan aiming to boost Piraeus’ reputation as a tourism destination with the construction of four new hotels on the port’s premises and a new cruise terminal that will be able to handle up to six cruise ships transporting some 600,000 passengers. Privatisation of Thessaloniki and other regional ports

Privatisation of Thessaloniki port In March 2018 the consortium of Deutsche Invest Equity Partners (DIEP)-France’s CMA CGM (Terminal Link)- Savvidis Group (Belterra Investments Ltd), acquired a 67% stake in Thessaloniki Port following its succesful tender for €232 mn. The full benefit of the deal will amount to € 1.1 bn as it also includes the consortium’s commitment to invest €180 mn in the next 7 years, capitalising on the ports supreme location as an export gate for the wider Balcan area.

Privatisation of 10 other ports The Hellenic Republic's Asset Development Fund has 100% share ownership for 10 ports in the form of sociétés anonymes. HRADF has announced its intention to proceed with the tenders in the near future for the ports of Volos, Rafina, Igoumenitsa, Patras, Alexandroupolis, Heraklion, Elefsina, Lavrion, Corfu and Kavala. GREECE IS BECOMING AN ENERGY HUB Shah Deniz Consortium selects TAP as European export pipeline

 550 Km of pipeline in Greece

 70.8% completed (March 2018)

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan, via Greece and Albania, and across the Adriatic Sea to Southern Italy, and further to Western Europe. ASTIR PALLAS VOULIAGMENIS Astir Palace Vouliagmenis

On 31 December 2015, after long negotiations with the Investors, a contract agreement was signed by Jermyn Street Real Estate Fund, as an Addendum of the existing Shares Purchase Contract, regarding the modified Special Plan for the Astir Palace Vouliagmenis.

Construction works have already started, Four Seasons announced in Sep. 2017, its plans to transform legendary Astir Palace into First Four Seasons Hotel in Greece (€100mn will be invested). FORMER AIRPORT Former Athens airport redevelopment project

The biggest real estate redevelopment project in Greece. The €8 billion investment will include a diverse range of residential communities, hotels, shopping centers, family entertainment venues, museums and cultural venues, health and wellness centers, significant space for sports and recreation, a business and metropolitan park and other facilities.

The MoU includes many improvements on the The site spans a total area of approximately original agreement, such as completion of the 6.2 million sq.m. (620 hectares). It has a 3.5 investment in a shorter period of time and a clause km coastline and includes a currently stipulating that 80% of the investment must be operational 337-berth marina (capacity for completed within 12 years. vessels up to 100 meters length). By way of an indication of its size, the site is more than three times the size of Monaco, more than June 2016: MoU signed between two times the size of Hyde Park (London, UK) HRADF and Lamda Development and Central Park (NY, USA). FORMER ATHENS AIRPORTREGIONAL AIRPORTS Privatisation of 14 regional airports FRAPORT 3 bn € deal

German – Greek consortium gained the tender

• 40-year concession to operate, manage, develop and maintain the facilities • 25.3 million passengers in 2016 (9% increase from 2015) • 1.234 bn € upfront concession fee • An annual fixed concession fee of initially 22.9 mn € will be paid • A total of 400 mn € will be invested in airport infrastructure until 2021 • Plus any maintenance and traffic-driven capacity investments during subsequent years of the project • Total investment will exceed €3 bn MANUFACTURING Philip Morris new investment

Philip Morris International new €300 million euro investment in Greece

The project: • 3 new buildings at Papastratos’ facility in Aspropyrgos, Athens • Construction of new lines of tobacco processing and production of refills for innovative IQOS product • Creation of 400 new jobs

Production upgrading: • 20 billion refills a year, absorbing a significant amount of Greek tobacco production • Products will be exported to more than 30 countries

Mytilineos Group investment

Mytilineos Group announced a new investment reaching 400 million euro in Central Greece

The investment:  New aluminum production facility at the Aspra Spitia site, in Central Greece  The new facility will boost output by one million tons, on top of the current factory capacity of 820,000 tons  Completion is estimated in 18 months from the beginning of construction and 300 new jobs will be created

The Mytilineos Group formally merged with the Aluminium of Greece conglomerate – following approval by a majority of its shareholders

Egnatia Motorway Privatisation (in progress) The Project:  The Egnatia Odos is a motorway that crosses Northern Greece, from East to West, from the the Greek-Turkish border to the western Port of Igoumenitsa, which connects Greece to Italy.  The motorway is a catalyst for investments in Northern Greece in the sectors of transport, manufacturing and tourism. It greatly facilitates trade and travel within Greece, bringing Epirus and Western Macedonia much closer to the metropolitan center of Thessaloniki (2nd largest Greek city), the rest of Macedonia and Thrace.  HRADF declared in May (2018) the (7) pre-qualified investment schemes for the tender  Among the schemes qualified to participate in phase B of the tender, the following overseas companies participated: ANAS International Enterprise S.p.A. (IT), EGIS PROJECTS S.A. (FR), Macquarie European Infrastructure Fund (AUS), ROADIS Transportation Holding S.L.U. (PSP Investments – CAN), SICHUAN COMMUNICATIONS INVESTMENT GROUP CO. (CN) and VINCI HIGHWAYS S.A.S – VINCI CONCESSIONS S.A.S (FR) FDI inflows 2010-2018 In million Euro

+29.4% Net FDI Inflows

3590,5 4000 3500 2774,2 3000 2122,2 2500 2022,5 2000 1354,3 1147 1500 822,3 1000 249,2 500 0 2010 2011 2012 2013 2014 2015 2016 2017

Net FDI Inflows According to Bank of Greece data, net Foreign Direct Investment inflows show an annual (year-on-year) increase of 142% between 2015-16, and 29.4% between 2016-17. FDI inflows between January-May 2018 reached €1.728 million, showing an 8.6% increase compared to the same period in 2017, when inflows stood at € 1.590 million.

Source: Bank of Greece FDI is welcome! Investment Opportunities Key Sectors Attractive Investment Opportunities

TOURISM – REAL ESTATE AGRI – FOOD ENERGY – CLEAN TECH LOGISTICS

ICT LIFE SCIENCES CULTURAL & CREATIVE PRIVATIZATIONS INDUSTRIES TOURISM One of the most popular destinations in the world is undergoing a regeneration, offering an upgraded and diversified tourist product Greece and Athens among Best Worldwide destinations for 2016 and 2017

Athens the fourth Best European Destination for 2017, according to the results of the eighth online competition organized by the European Best Destinations (EBD) organization. Tourism: a growth engine for Greece

• Greece in 2017, for a 5th consecutive year, sets a new record in tourist arrivals. Arrivals: 30.2 million (7.4% y-o-y increase) Tourist receipts: €14.6 billion Export champion for Greece, 27,3% of GDP & 37,2% of employment (2017) • Greece ranked 24th globally in Tourism Competitiveness (WEF), among 141 countries • Also ranked 5th internationally in Tourism, according to the Anholt- GfK Nations Brand Index (2017) • Blue Flags Awarded in 2017, 519 flags in Greek Beaches, ranking 2nd among 47 countries Tourism Investment opportunities

Upgrade existing infrastructure – Large Integrated resorts – Medical tourism – Establish new destinations Vacation Homes Thalassotherapy

Cruise – Marinas Thematic parks / sports tourism Enhance city break experience Tourism Privatisations & New Infrastructure Investment

Privatisations of publicly owned assets Private Projects & Public Assets available for development in our portfolio

Source: PWC, 2018 Golden Visa Program for Investors

• Permanent residence permit to non- EUs and their family members (ascendants/descendants) when purchase property or invest in Greece

• Investment threshold: €250,000 Golden Visa Program for Investors

3 Competitive Options

1. 2. 3. Residence Permit Residence Permit Residence Permit with the purchase of for Investment for Strategic Real Estate Property Activity Investments Golden Visa Program for Investors Benefits

Reside without time restrictions in Greece

Travel without any requirements to 26 European Schengen-area countries and reside for up to 3 months every semester

No language requirement

No minimum personal income requirement

Simple, fast and transparent processing

Access to the Greek education and healthcare systems

Very competitive prices in real estate assets

High rental yields for quality properties in prime locations A fast-growing program Residence Permits when investing in Greece Number of residence permits for real estate owners issued per top 10 countries of origin (as of August 31, 2018)

1521 A total of 3,154 residence permits have been issued since 438 the commencement 337 113 of the program 112 87 84 67 63 61 for real estate owners A fast-growing program Residence Permits when investing in Greece

Number of residence permits for real estate owners & family members issued per top 10 countries of origin (as of August 31, 2018)

4012 A total of 8,123 residence permits have been issued since the commencement of 1021 the program for real estate 880 owners and their family 336 318 274 211 184 163 125 members (spouses, ascendants, descendants) mega projects underway in tourism

Porto Heli Collection: A 347 hectare exclusive development in Greece, to host a range of high-end, masterplanned, leisure- integrated residential resorts

Costa Navarino: New investments to develop new Hotel, residences, golf courses in the new tourism destination of Peloponnese.

Chios Island Fast Track project: A 100-million-euro investment project on the Aegean island of Chios for the development of a 5-star 700-room resort complete with museum, a paleontological theme park, a yacht marina and educational facility

Miraggio Thermal Spa Resort and Mare Village, a 3.000 m2 development in Halkidiki to host one of the biggest spa resort worldwide. Greek Tourism 2021 the new roadmap

• 35 million arrivals + 10 million • €20 billion tourist receipts + 30%

Requirements: €6,5 billion investments in the next 5 years from both public and private sector

Result: €43 billion to the GDP with 1 million employment 105,000 new 5* beds through new developments or upgrades

REAL ESTATE Foreign demand for Greek real estate is growing rapidly as overseas investors are drawn by attractive asset prices, amid strong signs for recovery the Greek real estate market, after years of decline Real Estate Sector in a nutshell

Traditional pillar .Real Estate coupled with construction used to represent more than 10% of Greek GDP of the Greek .Real Estate traditionally offers high yields economy

.Investment and employment in residential construction have fallen to low levels Stressed by the .Credit availability for house purchase is constrained; financial crisis . Taxation stresses the owners

. Even during the current crisis some subsectors and locations show comparative Relatively resilience resilient .High yields for specific sub sectors

.New deals from foreign investors (Canada, UAE, Russia, Germany, Israel, Turkey, New deals Argentina, US etc) shaping the trend .Many foreign companies participate in public tenders for real estate assets .Growing interest from foreign companies

Big projects in .New legislation provides new investment opportunities for real estate development the pipeline .State owned real estate assets, largely unexploited till now, are bringing new opportunities in the market Real estate market drivers …

 Historical data show that real estate pays better than all other investments in Greece

 New public and private projects under way

 Building costs decrease, because of the decline in investment in construction

 New law for the construction of tourism residences in conjunction with 5* tourism infrastructure projects

 New law makes it easier for foreigners to acquire real estate in Greece’s boundaries and islands

 Golden Visa Program for non- EU investors in Real estate

 Airbnb rental expansion, with over 25,000 premises currently available in 6 major tourist locations (Mykonos, , Corfu, , Chalkidiki & )

 New Law for REICs

 Wide range privatisation program to exploit public real estate assets Real estate subsector opportunities

New investment opportunities through the new law for integrated Hospitality tourism resorts and holiday homes + new regime for residence permits

Privatization of Piraeus port to COSCO, Thessaloniki port, Thriasio Industrial/Logistics Logistics center and TRAINOSE offer new investment opportunities in the sector

Shops and commercial centers stand strong in the general decline in Retail the prices and yields, while new projects are under planning

Due to the current crisis, significant opportunities exist in the offices Offices market, with many good projects in high-end location being available

+ Favorable legislation for REICs FOOD & AGRICULTURE The home of the Mediterranean diet is becoming a favorite to foodies from around the world, who enjoy the highest quality ingredients on offer Agribusiness and Food A snap shot

F&B: The most dynamic Greek industry sector

Annual Turnover: Employment: Production Value: 25.2 % 33.6 % 24.3 % of Manufacturing of Manufacturing of Manufacturing Activity Activity Activity

Number of Gross Value Added: Exports: Companies: 24.6 % €5.5 billion / 19.5% 26.4 % of Manufacturing of total exports of Manufacturing Activity (2017) Activity

Sources: IOBE , Facts & Figures 2017/ Panhellenic Exporters’ Association Agribusiness and Food Greece: A strategic location in global food production

Opportunities Strengths • Development of new livestock farms and new crop cultivations in vacant agricultural land. •Brand value and positioning • Repositioning and consolidation of agricultural production using •Geography and climate conditions new technologies • Consolidation of smaller, organic producers • Traditional high-quality ingredients with strong export potential. • Investment in the packaging, export and •Specialized know how and marketing of traditional staples of Greek diet expertise • Development of joint venture activities with domestic agricultural producers through • Research and Innovation Network contract farming. • Invest in certified, protected products under the strict and favorable PDO/PGI framework. ENERGY Combining a strong capacity to produce Electricity with abundant RES, availability to develop previously unexplored hydrocarbons, and a strategic location right in the centre of evolving new networks for the transportation of energy from Asia and the Middle East to Europe, Greece is now emerging as a key energy hub in the EMEA region Energy and green-tech Investment opportunities

• New infrastructure in natural gas transmission (TAP, IBG, EASTMed, LNG terminals, gas distribution s, etc.) • Renewable energy projects (Wind, Solar-thermal, Biomass, Small Hydro, Geothermal, Hybrid, etc.) • RES production capacity of 5.6GW, supported by a new “feed in premium framework”, penetration in production at 18% on a national level (2016) and a revised national target for 2030 set to 50%, with new RES investments expected to amount to €2,5 bn in the next 2 years, directed mainly to wind farms • RES electricity auctions scheduled for 2018 (July-end of year): Wind 300MW, Solar 300MW, Wind-Solar combined 400MW) • Waste to Energy • Hydrocarbons exploration and deveIopment is evolving rapidly with of world class energy MNC’s participating • Privatisations to unbundle the Public Gas Corporation of Greece (DEPA), Public Power Corporation (PPC) and Greece’s oil company are on track • Grid connectivity projects estimated at €2.5 bn (Cyclades, Crete, EuroAsia Interconnector, etc.) • Energy efficiency, an emerging subsector with rewarding investments • High-end R&D focusing on generation and storage • 19 strategic energy projects, “Projects of Common Interest” (PCIs), in the electricity and natural gas sectors will spur new investment activity in the Greek energy sector • Total investment in the Energy Sector is expected to reach €25bn, in the medium term Energy Infrastructure Projects (Developed – under development)

Key Energy Infrastructure Projects (approx. € 7bn) • Trans-Adriatic Pipeline of 878 km in total will supply Europe with natural gas from Azerbaijan through Greece, Albania and Italy, with a capacity of 20 bn m³ per annum • Attica – Crete and Attica-Peloponnese – Crete Interconnectors: 310 km underwater electric cable connecting Crete with the mainland, capacity of 1,000 MW and 400MW respecttively • IGB: Natural gas pipeline of 182km length will connect the Greek and Bulgarian existing networks, with daily transport capacity of approximately 3-5bcm per year • Alexandroupoli Independent Natural Gas System: New offshore LNG with 28 km length of subsea and onshore pipeline (4 km onshore and 24 km offshore), with storage capacity of 170k m³ and pumping capacity of 6,1bcm per year • V Power Plant: New single lignite power plant of 660 MW and 140 MW for district heating (PPC) • Kavala LNG: Floating storage (170k m³ LNG capacity) and processing terminal (annual sent-out capacity of 3-5bcm) at Kavala Bay

Source: PWC, 2018 Energy and Hydrocarbon Exploration

Map of the 20 Greek sea blocks for the exploration and exploitation of hydrocarbon reserves

The Norwegian company Petroleum Geo-Services (PGS) conducted the necessary seismic surveys which opened the way for the relevant public tenders

Exploration activities in 6 offshore and onshore areas of Western Greece have already initiated, while in the meantime international tenders are currently open for other unexplored sea blocks in West and South Greece, following an overall increased petroleum and natural gas activity in the entire Eastern Mediterranean basin, from major conglomerates like Total, Edison, Repsol, ENI, ExxonMobil, Noble & Delek LOGISTICS Quickly emerging as a major logistics hub, located on one of the busiest trade routes in the world, Greece is developing the capacity to capture increased trade flows to Europe Logistics: Trends, …

• Greece stands on the crossroad of three continents -a strategic node in the greater region. • Logistics sector in Greece accounts for almost 10% of Greece’s GDP • Piraeus ranks 6th between the top 50 Ports, ranked by 5-Year Increase Ratio 2012&2016 (data from International Association of Ports and Harbors,) and a significant node in the new Maritime Silk Road from China to Europe. Logistics: …, prospects, …

• Modernization of existing logistics infrastructure and targeted development of new facilities (in Attica-Viotia and Thessaloniki), a major component of Greece’s priorities, including Hellenic Railways Organization, ports (Piraeus, Thessaloniki, other regional and small ports), motorways (Egnatia Odos) and marinas • New Rail projects amounting to € 6.7bn, with 73% coming from urban rail projects • Agreements between Greek and foreign countries’ Certification Organizations provide new opportunities for middle products manufacturing and forwarding services • New energy projects provide new opportunities also to logistics companies that establish their presence in the country.

Source: PWC, 2018 …and investments…

Privatisation of Piraeus port concluded successfully in 2016, with Chinese COSCO gaining a multimillion tender and their ongoing investment plan in Piraeus Port (COSCO) with a value of €300 mn, till 2021 Privatisation of 14 Regional airports concluded successfully in late 2015, with German Fraport signing an 1,2 bn € deal Italian Ferrovie Dello Stato Italiane S.p.A. gained the tender for the Greek Railway Operator TRAINOSE

Privatisation of Thessaloniki port: In April 2017 the consortium of Deutsche Invest Equity Partners (DIEP) -France’s CMA CGM (Terminal Link) - Savvidis Group (Belterra Investments Ltd), offered 231.92 mn € for a 67% stake in Thessaloniki Port. The full benefit of the deal will amount to 1.1 bn € as it will also include the consortium’s commitment to invest €180 mn in the next 7 years … in intermodal cargo centres linked to cargo ports and rail centres

 Piraeus, Thriassio Mega Logistics Center, the Goldair-ETVA consortium, will deploy Phase A of their €180 mn investment plan within 2018  Thessaloniki, Str. Gonou Logistics Center, tendered Larissa ● within 2018  Alexandroupolis Logistics ● Volos Center, to be tendered by the end of 2018  Kavala, Larissa, Volos, ●Piraeus Igoumenitsa Logistics Centers, will be rolling ahead ICT From start-ups to research centres of global ICT giants, the ICT scene benefits from highly- skilled personnel at competitive costs ICT

Top talent at a highly competitive cost. Greece is listed as a stage 3 economy (innovation driven), together with 36 developed economies in the world. Also according to the Global Competitive Index, Greece ranks 44th in Higher Education & Training, 50th in Technological Readiness and 58th in Market Size. (World Economic Forum 2017-2018)

National and EU funds are available for cooperation and development.

Brand new Greek start-ups ecosystem

Greece became the center of several new investment initiatives announced by some of the largest companies in the global ICT industry such as NSN, Microsoft, HTC, Samsung and SAP, exploring investment opportunities in… • Software Design & Development • Information security services • Data centers – Training Centres • B2B cloud services • Multilingual Call centers / service centers • Assembly and distribution of ICT devices • Mobile Marketing & advertising The Greek tech start-up scene: Success Stories

US Third Point Capital and Endeavor Taxibeat has been acquired by Daimler (€40mn) Catalyst invest in the online start up insurer HellasDirect, > €10mil. Greek start up Persado got €83M, from Bain Capital ventures, and other funding sources Israeli fund 83North, Greek Openfund and other investors, invested in Greek start up Samsung Electr. acquired Innoetics approx. €35mn Workable, €30mn Yemeksepeti.com invests in Greek US DFJ and angel investors invested startup ClickDelivery. > €10mil. in Greek start-up Resin.io The Greek start up software company Nubis Austrian Novomatic announced raised 1 mil. Euros funding by the investment the acquisition of Greek born US fund Elikonos Jeremie Fund start up AbZorba games, €8.5 mn The Greek start up Metamaterial Technologies Swiss u-blox AG acquired raised 3,1 mil.Euro funding by the venture capital Greek start – up Antcor, 8.5 mn € Innovacorp

US Angel investors invest The German leading company Delivery Hero acquires in Greek start-up Intelen – 1.6mn€ the Greek start up e-FOOD.gr (> €10mil.)

US PIC Invest invests in Greek Greek born start up Pinnatta, a leading start up Daily Secret – 1.3mn$ mobile messaging platform has raised $3.7m funding up to date American Splunk acquires the Greek start up Bugsense (€6,7mn)) The Greek start ups Metamaterial Technologies and Book’n’Bloom have raised €16mn and €12,5mn German Glispa acquired Avocarrot respectively in funding (€17,85mn) ...and many more... LIFE SCIENCES With one of the highest per capita ratios of doctors to the population and an established presence by all major pharmaceuticals, life sciences will develop extensively in the next decade Life Sciences / Key facts

Indicative type of Investment Projects • Almost 6 doctors per 1,000 population, Greece ranks 1st in OECD • Regional Hub for Clinical Trials: Greece has established itself as a regional hub for clinical trials • The educational background of the executives is very high (71% hold an MBA and 14% hold a PhD). Also, 64% of the workers in the industry are university degree holders. • Strong Business base: More than 100 producers and importers (almost 70% of the companies are foreign multinationals) • R&D and Development know-how –The share of patents filed in the pharmaceutical sector in 2016 was 21.4% much higher than the corresponding figure in Europe (3.1%) Health Sector: recent investments & acquisitions

Perseus Healthcare SA -owner of Metropolitan Hospital- sold a majority equity stake to Hellenic Healthcare Sarl, an investment vehicle controlled by CVC Capital Partners. Iaso SA, a Greek-listed clinic sold a 97.2 pct equity stake in its subsidiary Iaso General to Hellenic Healthcare Sarl ( a CVC CAPITAL PARTNERS affiliated company), based in Luxembourg. DIMERA (Savvidis) and IASO Group agreed to invest in a clinic with health care (rehabilitation, plastic surgery, center of slimming, center of kidneys, etc.) The Life Sciences health resort will include tourist residences as well as a marina. The total investment will reach € 80 million and will be carried out by "Premium Development". HOLDINGS S.A.” (MIG) has sold its majority stake in HYGEIA hospital amounting to 215,189,466 shares, corresponding to 70.38 pct of HYGEIA’s share capital, to Hellenic Healthcare Sarl ( a CVC CAPITAL PARTNERS affiliated company) . Furthermore, MIG will have an option to acquire up to 10 pct in “HELLENIC HEALTHCARE S.A R.L.”. Life Sciences

Exports: the Greek pharmaceutical sector has been significantly extrovert, emerging markets in South Eastern Europe, Eastern Europe and the Commonwealth of Independent States are likely to rise, driven by cost-effective domestic production and ready access to new EU member states Manufacturing of Generics - R&D centers: significant market growth both in Greece and internationally, sizeable established industry, successful exporting activities of domestic players Medical tourism: outpatient segment (e.g. dental care, certain cosmetic procedures, selected eye surgery) and inpatient segment (e.g. cardiovascular interventions, orthopedic procedures). High number of specialized doctors, Lower cost for medical services compared to high-end destinations, Good offering of supporting tourism infrastructure Long term and elderly care: Focus on pensioners of Northern European countries plus fast ageing of Greek population; 32% expected to share 65+ population in 2050 in Greece compared to 19% in 2010 Clinical Trials Hub E-health tools and services CULTURAL AND CREATIVE INDUSTRIES The Cultural and Creative Industries (CCI) have shown great resilience during the crisis – they actually continued to grow – while stimulating creativity and innovation spill-overs in other sectors Greece’s strong comparative advantages and opportunities

ADVANTAGES • Τop talent at a highly competitive cost • Advantageous geographical position; favourable weather conditions • Strong market • Development of creative clusters • Personal identity of creation • Freedom of thought and expression • High aesthetics • Emphasis on innovation

INVESTMENT OPPORTUNITIES • Digital Design and Animation • Film Industry • Plastic arts, museums • Fashion • Jewelry, silverware and crafts • Performing and Visual Arts • Video and Computer Game Investment incentives for the Greek Creative sector The recent implementation of the cash rebate system (L.4487/2017) for the production of audiovisual works in Greece is a decisive step towards attracting film, television, documentary, animation producers and digital games developing companies to invest in the Greek creative sector

 The cash rebate amounts to 25% on the eligible expenses incurred in Greece  The maximum amount payable per audiovisual work cannot exceed €5,000,000  Fast-track procedure 45 days  The cash rebate will be available to producers no later than six months after the completion of production  Financing of the rebate is guaranteed through the Greek Public Investment Program and amounts to a total of €75m available for the years 2018 to 2022 INDICATIVE INVESTMENT PROJECTS Indicative Investment Projects

TOURISM AGRICULTURAL ICT LIFE ENERGY PRODUCTION SCIENCESCT SOURCES • Marinas Cruises • Commodity • Data Centers • Generics • Oil & Gas products • City hotels • Call Centers • Elderly and • RES • Olive oil • Grid connectivity • Hotels & • Mobile LTC care for the islands Integrated • Aquaculture Marketing & • Clinical Trials • resorts • Niche products Energy advertising • E-health efficiency • Conference (i. e. superfoods) • Software • Home care • & Incentives • Organic Waste development services Management • Health Tourism • Information Security Services Investment Financing International Organizations support Greek Investments (1)

• EIB – European Investment Bank invested over EUR 2.5 billion in the Greek economy in 2017. Between 2012-2016, EIB has invested EUR 6.4 billion in Greece, mainly in infrastructure, SMEs and energy projects. Financing for small businesses accounted for 75%, with an additional 22% for innovation and 3% for infrastructure projects.

• Juncker Plan (EFSI), Greece ranks second among all EU countries in absorption of funds (per € of GDP), with approvals for 20 investment plans (by 2017) in various sectors, funded with EUR 2,7 bn. from EFSI, mobilizing another EUR 10,6 bn of investments from other sources

• European Bank for Reconstruction and Development (EBRD) is financing 24 projects, EUR 2,5 Billion (March 2018), with investments in Energy, Financial institutions (Greek banks, Equity funds), Industry, commerce and agribusiness, Infrastructure (airports) International Organizations support Greek Investments (2)

• EIF - European Investment Fund-total commitment EUR 420 million

o 7 supported Private Equity Funds investing in Greek SMEs

o 8 Partner Finance and Guarantee Providers

o 3,600 Greek SMEs supported

• IFC (WBG) has also assumed long term committed investments in Greece amounting to 359 million Euros

• Black Sea Trade and Development Bank (BSTDB) has approved 23 projects with a total investment of EUR 470 million (Industrial, IT, Utilities, Telecom) 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. Enterprise Greece Your partner for growth

E: [email protected] www.enterprisegreece.gov.gr