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HELLENIC SEAWAYS’ HEMINGWAY’S CUBA: ANTONIS AGAPITOS memories and mojitos BARCLAYS' ASHOK VASWANI Spotlight on As featured in GLOBALFOUNDRIES’ RUTGER WIJBURG EDUCATION OMV’S JOHANN PLEININGER ALLEGION’S LUCIA VEIGA MORETTI The CEO Magazine hours 4in8 Zurich For more info visit Planet theceomagazine.com

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After some turbulent times, Hellenic Seaways has shown how to successfully turn a business around and is now back on track for future growth and prosperity.

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liding through the Aegean and Adriatic Seas, the high-end fleet of Hellenic Seaways has transported passengers and freight through some of the world’s most renowned mythical waters and sea passages since 1999. In fact, it’s the region’s largest maritime business. However, despite the smooth sailing its passengers and Gcontractors have come to expect, it wasn’t too long ago that this giant was enduring more difficult times.

Caught in the downward spiral of ’s economy after the effects of the Cypriot financial crisis three years ago, Hellenic Seaways filed for bankruptcy. The maritime and shipping sector was hit hard by the crisis, resulting in many smaller players selling to large competitors. Meanwhile, passenger traffic Name Antonis Agapitos continued to shrink substantially as an ongoing result of the Euro debt crisis. Company Hellenic Seaways Position CEO Rising bunker prices, as well as interest payments to service the already HQ , Greece debt-heavy fleets, saw the company go under. Employees 1,000+

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“We are embarking on a new course of development, implementing an extensive investment plan of integrating new ships and extending the destinations the company serves.” – Antonis Agapitos

following the consolidation of a maritime companies, while introducing company called Minoan Flying innovative aspects to both products Dolphins and its subsidiaries Hellas and services, we were able to flip the Flying Dolphins, Hellas Ferries, situation and transform Hellenic Saronikos Ferries and Ferries. Seaways into a successful business Since then, the company has seen some model once more. Now, with a solid challenging times, undergoing both business plan and driven management, growth and contraction. But these past we have restricted and launched new few years it has bounced back and we initiatives, and been one of the very few are embarking on a new course of companies in Greece to be able to do development, implementing an so. We’re setting a secure path for the extensive investment plan of integrating business and our customers, and we’re new ships and extending the creating and developing new prospects. destinations the company serves. Have you been happy with the When you came into the CEO progress that you have made in the position at Hellenic Seaways, the past three years? Do you feel that company had experienced some the company is heading in the right difficulties, including bankruptcy. direction now? What were the strategies you implemented to turn the Yes, absolutely! Hellenic Seaways has operation around? become a case study for successful management and business turnaround Undoubtedly, the company’s position at in Greece. It is not only the technical that time was really tough, as was the expertise of our teams that delivered a general financial situation in Greece. successful outcome, but also our There have been great economic passion for sea transportation, for challenges. Certainly the country’s supporting remote island communities, financial instability during the time and being the ambassador for Greece we were trying to stabilise the tourism. We are now focused on company and achieve profitability executing our latest investment plan, was difficult. Focusing on the strategic including renewing our fleet, adding business plan, enhancing services new ships, as well as fully renovating Enter Antonis Agapitos in 2013, the 26 per cent to €132 million, seeing The company currently owns and with The CEO Magazine, Antonis says he offered to passengers, and renewing the other ones. We have invested now-CEO of a completely revived the company make a net profit of operates 19 conventional and high- is confident that Hellenic Seaways will our fleet were the main tools to around US$18 million out of the Hellenic Seaways. He managed to €3.9 million and showing a strong speed vessels that connect more than 35 remain profitable in 2016–17, and that overcome the situation. company’s own capital in bringing bring the company back from the rebound from its earlier downturn ports in the NE Aegean, the , turnover will continue to increase. excellence to Greek sea transportation, brink, starting with a series of and five consecutive years of losses. the , and the Sporades. We had to implement both short-term and we are delivering continuous years strategic divestments. Between The turnaround is attributed in part Antonis has seen the company reinvest The CEO Magazine: How was and long-term tactics to illustrate that of growth across our operations 2013 and 2015, the company sold to the relief of falling fuel prices in the first new addition to its fleet since Hellenic Seaways founded, and we could grow the business. We set up following an ongoing reinvestment of five of its ships to boost liquidity, and an influx of the migrant the downturn, as well as renovate its what are some key changes to a driven team dedicated to getting the company. The rising progress of which was reinvested into new population to mainland Greece, but existing ships. Furthermore, it is occur since that time? maximum recovery and gain Hellenic Seaways gives us the strategic tactics to improve and is also thanks to a considerable attracting tourists through a series of profitability in all aspects. Bringing a reinforcement to continue this plan of grow the business. By 2015, the revamp of the Hellenic Seaways improvements across service, experience Antonis: Hellenic Seaways as it passion for success, hard work, finance, being and remaining at the top. company’s turnover had jumped by business strategy. and travel network upgrades. Speaking operates today was created in 2005 best practices and facilitating modern We are now focusing on innovation in

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“We are proud to say that our innovative product offerings have been three new vessels offering luxury, our main contribution to the shipping industry. In 2016 alone, we quality journeys that have also earned introduced three new vessels offering luxury, quality journeys that our customers’ trust. Moving forward, we hope to continue to innovate, to – Antonis Agapitos have also earned our customers’ trust.” improve our quality and offerings in the sea transportation of passengers and cargo, while also always aiming our products and services for ticket, you have it with you always, and to create continual value for our passengers, to improve the quality of if you decide to change your plan or go shareholders. We are also looking our fleet and our services, and making to more or different islands, you don’t at expanding or finetuning some of the journey and booking or planning need to go to a travel agent or have our networks to allow new or longer experience easier and more cash with you; you just need your travel options to include new lines convenient. Outside the vessels and credit card and mobile. between Greece and Turkey, or the wharfs, we were the first ones to between Spain and Africa. In the introduce the smart ticket and online What are the key areas of focus to next year, we will be aiming to check-in to the Greek service market. continue to improve the company’s expand our presence in the The smart ticket is an application that strength in the marketplace? works through any mobile or “Hellenic Seaways represents one of the most successful turnaround stories in the ferry shipping smartphone device. You install the Our strength now is in our innovation industry. New management has commendably application and buy the tickets — we are proud to say that our implemented a major operational and financial restructuring plan resulting into 30-per-cent sales through it, so it means you can plan innovative product offerings have been growth and remarkable EBITDA. We are proud to a trip a few hours, or the day, before our main contribution to the shipping have contributed to this success story as Hellenic Seaways’ major banking partner.” – George your trip. This way you can’t lose your industry. In 2016 alone, we introduced Papaioannou, General Manager, Piraeus Bank

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“We are incredibly passionate was quieter politically; it was more original Greek maritime company’. Our mission today remains about the destinations we serve stable. July 2015 was not a good month We are incredibly passionate about strong: We want to continually and about the communities for travellers because of the capital the destinations we serve and about provide a variety of high-quality controls in the area, but in 2016 we the communities we support. We offer sea transportation services to we support.” – Antonis Agapitos had far more stability and the traffic our customers many privileges for passengers and cargo before, was better. It was a good period. Many returning their trust and believing during and after travel. In addition, people from Europe were visiting in Hellenic Seaways’ offering. We are we will always strive to maintain because Greece has a lot to offer and not only focusing on profitability high safety levels during the Mediterranean Sea cargo pricing is more competitive compared by any means; what we do care operation of our ships. This is for transportation markets. Hellenic to other European spots. The overall about is our passengers and their the sake of our crew and passengers, Seaways is now investing in new ships, traffic is up 5–8 per cent since 2015, comfort and safety. Thus, we are and also for the surrounding marine exploring destinations and providing its but there are still some negative investing in implementing many life that might be affected in some customers with new services. perceptions from tourists, both Greek new innovative services. way by our operations. and international, around certain The company has purchased and islands. Greece is safe, though; it’s What are some of the core The ongoing modernisation and built nine new ships over the years, two beautiful and we have a lot to offer. values that are paramount for growth of the Hellenic Seaways of which were built entirely in Greece, Hellenic Seaways? fleet, combined with the upgrade supporting the Greek shipbuilding Hellenic Seaways has won many of the services we provide to our industry. As part of the investment awards over the years. What do you Safety, liability and commitment passengers, constitutes a constant plan, early this year Hellenic Seaways think makes the company stand out to quality services. We incorporate commitment from everyone within relaunched three vessels in its existing from other players in the sector? these core values in our daily the team. Going forward, this will fleet: the Highspeed 7, the Hellenic operations across all segments of continue to be a front-of-mind Highspeed, and the Nissos . We are not just another maritime the company. This is crucial to strategic goal for the company company; we are what we call ‘The our success. well into the future. What are some further challenges that Hellenic Seaways has had to overcome to remain ahead of the competition?

Shipping is a hard and very competitive industry, especially when you include shipping as part of the daily sea transport field. All the companies in the industry are working hard, and, for us, being the ambassador of national tourism means it pays to be a market leader. But we have ensured we keep market share because Hellenic Seaways Half page advert focuses on the passengers’ needs and RINA S.p.A on quality services. Because of our size and history, Hellenic Seaways is already a pioneer in the sector.

We serve as a case study for other companies to follow, and we are extremely happy to lead the competition.

Off-peak seasons for tourism can remain a challenge, as do lingering economic issues and perceptions around instability and safety. 2016

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