1. Invest in a New Future. Opportunities out of CrisisDemetra PragalouInvestment Promotion Manager TBLI Conference EuropeNovember 20110

2. Agenda1. Reforms to spur investments and growth2. Greeces competitive advantage3. Growth sector opportunities4. Invest in Greece Agencys service offering1 3. 1. Reforms to spur investments and growth2 4. Greece is decisively tacklingthe challenge of fiscal consolidation The Greek government is implementing an Economic and Financial Programthat represents the governments firm response to the current challenges thatthe country faces The Program is supported with a 110bn financing package provided by theEU, the ECB and the IMFGreece is taking The Program includes both structural and fiscal reforms that will help Greeceovercome structural deficiencies that persisted in public fiscal concrete steps tomanagement, the economy and the financial sectorconfront the recent The Governments economic policy is focused on Creating a new growthfiscal consolidationmodel based on export, competitiveness and private investment to drivejobs, growth and viable external accounts On the 26th of October 2011 the informal EURO SUMMIT Meeting decided theconclusion of a new EU-IMF multiannual program for Greece that will be In 2010 Greece achievedready by the end of the year. Together with this program a Private Sectorthe largest fiscalInvolvement (PSI) should secure the decline of the Greek debt to GDP ratioconsolidation in the Eurozone by undertakingwith an objective of reaching 120% by 2020. This includes a voluntary bonddeep expenditure cuts and exchange with a nominal discount of 50% on Greek debt held by private tax increases, and investors.introducing a broad range of structural reforms.3 5. Greece is at the forefront of positive changesCrisis OpportunityReformsTradeInvestments4 6. Greece is taking concrete steps Concrete steps are being taken to boost economic activity New projects in the pipeline New investment framework Structural reforms Acceleration of the The Fast Track Law, which aims Rationalization of Health spendingimplementation of the EU-to dramatically accelerate big Modernizing of State enterprisesfunded NSRF 2007-2013investments projects has been Enhancing Tax administration Concessions of state owned realvoted by the parliamentOpening up access toestate assets A new Investment Incentivesservices, trades, and professions. New Highways under Law covering almost all business Strengthening of the Banking andconstruction sectorsinsurance supervision. Urban regeneration programs A new bill to reduce all New framework for fiscalsupported by EIB procedures of business start ups monitoring New regional airports to bein just one step New framework for supportingconcessed A new framework to promote tourism and commerce Ambitious privatization programinvestments in the Renewable Program to support exportsunder way to reach 50bn byEnergy Sector (RES) has alreadyAcceleration of the Land Registry2015 been passed by the ParliamentLiberization of the energy market Piraeus Port Investment plan New Law for the development of Simplification of the establishment Railways restructuring tourism residences and licensing of new companies Restructuring of the state owned Lifting of cabotage in marinebanking system cruises 5 7. Financial analysts expect several sectors to grow significantly in the next few yearsRoom for investment: 1-5 year horizon Infrastructure Property developmentAirport development Toll roads & concessions Tourism Marine/port developments REIT& REIC formation & flotation Existing & New airportsGaming sector / Casinos Estimated investments 10bnEstimated investments 5bn Energy projectsWater & Waste Capacity replacement (generation)Water resources management New business (RES) Waste management Transmission/Interconnection investments Utility companies Natural gas Estimated investments 20bnEstimated investments 2bnTotal estimated investments of 37bnSource: EFG Eurobank, 2010 6 8. Investments materialized could contribute up to 1.5% of GDP growth A review of only some key sectors, in whichGreece holds a competitive advantage, suggestsadditional growth in the order of 1 percentagepoints annually to Greek GDP growth in themedium term Source: National Bank of Greece Greece presents a tremendous opportunity for investments," said European Commission Task Forcechief Horst Reichenbach during a press conference heldat the Commissions offices in Athens on the 15th of September 2011 7 9. Deals in 2011Qatar Holdings agreed on October 1st to acquire 13 million shares of Greek mining companyEuropean Goldfields for C$130 mn. Qatar Holding has also entered into a call option agreement toacquire a further 9,373,390 shares at 13 C$ per share and as a strategic partner will provide 600 mnUS$ as a loan facilities.The Dutch group of Friesland - Campina has announced a new 10million investment in food sectorQatar Investment Authority agreed to become a major shareholder in the new private banking groupone of the 30 biggest in Eurozone- following the merge between Alpha Bank and EurobankU.S. Watson Pharma buys Greeces Specifar for $562 million Chinese Fosun committed to acquire approximately 9.5% stake in Greek Folli Follie Group Greek ship owner Victor Restis acquires Porto Hydra resortAquis Hotels and Resorts buys two Hotels in CreteCzech investment group PPF and ICT Group, the vehicle of Russian investor Alexander Nesis, havebought minority stakes in Greeces fourth-largest lender Piraeus BankLinnaeus Fund acquires stakes in Greek aquaculture companiesTenders by the Greek government for investments in geothermal energy, solar parks and marinasattracted foreign companies in 20118 10. 2. Greeces competitive advantage9 11. Why Greece?:1. Greece is strategically positioned as the gateway to the EU and SEE Members of the Eurozone, NATO, EBRD, EIB,IMF, UN, OECD, WTO, WHO, Interpol,UNESCO and CERN Access to the strategic and high growth SEEmarkets with: - Over $1,000bn of GDP - Over 140 million people Strong business and cultural ties with theregion Network of over 4,000 Greek companiespresent More than 3,000 Greek branches of bankscovering over 20% of the banking market inSE Europe Greek companies in top 3 investors in everymarket10 12. which makes it ideal for selecting it as a regional hub for the EMEA areaEntry point for EU, SEE, ME, NA salesRegionalEuropeheadquartersBusiness operations Middle East AfricaBack officesupport Service centerGreece can be the regional hub for strategic growth inSE Europe, Africa and the Middle East11 13. Why Greece?: 2. The Greek economy supports FDI World Banks country rating as FDI destination OECDs FDI Restrictiveness IndexSector Group Greeces Score Global average The less the better: FDI Index Scores by CountryHealth care & waste(closed = 1, open = 0) 10096.0managementConstruction, tourism & 10098.1retailLight manufacturing10096.6Telecom10088.0Mining, oil & gas10092.0Agriculture & forestry 10095.9Banking10091.0Insurance10091.2Media10068.0Source: Investing across boarders, Worldbank, 2010 Source: OECD 20108 12 14. Why Greece?:3a. Supportive investment climatePPP- PrivatisationPlanNew framework forRES Simplification of theLifting of cabotage establishment ofin marine cruises new companiesNew investmentincentives lawFast Track Law 13 15. Why Greece?:3b. Fast Track Process Qualification Prerequisites The total value of the investment must exceed 200Case #1 million The value of the investment must exceed 75 millionand, concurrently, the investment must create at least3 RenewableCase #2 200 new jobsEnergy projects have already At least 3 million are invested every three years in beenCase #3 advanced technologies and innovation projectsapproved, with a total budget of The investment creates at least 250 new jobs1, 13 bn.Case #4 At least 3 million are invested every three years inCase #5 actions to promote environmental protection At least 3 million are invested every three years inactions that create added value for Greece in terms ofCase #6 education and R&D 14 16. Why Greece?:4.Top talent at competitive rates Top ten countries in ICT DevelopmentAverage weekly work hours of skilled Index skillspersonnel 9.94 41404040 9.7839389.63 37 37 9.36359.269.269.29.18 9.179.14Source: ITU, 2009 Source: UBS Europe Middle EastNorth America Asia Greece 88 75 77 656259 59 60 57Gross annual 5540 39 50 423534 income of 3029 engineers(USD thous.) Source: UBS; Prices and Earnings report 2009 15 17. Why Greece?:5. Attractive investment opportunitiesAmbitiousPrivatisation ProgramTourismRenewable EnergyFood and BeverageICT Life SciencesEnvironmentalManagement 16 18. 3. Growth sector opportunities 17 19. Compelling public and PPP projectsand PrivatizationsInfrastructure projects Privatization ProgramAn ambitious privatization agenda The privatisation and state asset management program will: Support growth Attract private investment and create jobs Provide impetus to critical sectors of the economy that will reap significant revenue: 15 billion Euros by the end of 2012 50 billion Euros in total until 2015Source: Ministry of Finance18 20. Privatization program with a flexible approach and transparent processes A range of sectors with high potentialProcedures Infrastructure: Airports, Ports, Motorways Concession AgreementsEnergy: Public Power Corporation, PublicGas Corporation, Hellenic PetroleumSaleTelecommunications: HellenicTelecommunication Organisation, FrequencyStrategic InvestorsSpectrumGaming: OPAP, Casino of Parnitha, HellenicEquity through the Stock ExchangeHorse Racing Organization, State Lottery, e-gamingReal EstateOther Holdings:LARCO, TRAINOSE, Hellenic DefenseSystems, Hellenic Vehicle Industry S.A Source: Ministry of Finance19 21. Privatization program with a flexible approach and transparent processes Privatisations on the wayGaming:On November 1st the Greek government announced an invitation to submit an Expressionof Interest for the grant of an exclusive license to produce, operate, circulate, promote andmanage in general the Greek State Lotteries (the Hellenic Lotteries) for 12 yearsDeadline: 29th November 2011Energy:By the beginning of 2012 the government plans the privatisation of Public PowerCorporation, Public Gas Corporation, Hellenic PetroleumReal Estate:An international tender for the development of the 6,000 sqm area of the former Athensairport will be launched by the end of 2011Other Holdings:OPAP, LARCO, TRAINOSE, Hellenic Defense Systems, Hellenic Vehicle Industry S.A20 22. Privatization program with a flexibleapproach and transparent processes Advisors selected for 14 projects:OPAP: Deutsche Bank AG London Branch and National Bank of GreeceHellenic Petroleum: UBS Limited and NOMURA International PLC.LARCO: HSBC Bank PLC and PriceWaterhouseCoopers Business SolutionsParnitha Casino: Alpha Bank and Investment Bank Of Greece.Piraeus and Thessaloniki Ports: Morgan Stanley, Piraeus Bank.Public Power Corporation: Alpha Bank, Bank Of America Merrill Lynch, Credit SuisseSecurities (Europe) Limited, National Bank of GreeceHellenic Post: Lazard Freres SAS, PriceWaterhouseCoopers Business Solutions.Small ports and marinas: Investment Bank Of Greece, consortium of Maritime & TransportBusiness Solutions, KLC LC and Rogan and Partners.Regional airports: Eurobank EFG Equities and CITIGROUP Global Markets limited.State Lotteries: Credit Suisse and Eurobank EFG EquitiesNational Horse Racing Organisation: Commercial Bank of Greece and Credit Agricole CIB.Greek Vehicles Company: Societe GeneraleFormer Athens Airport (Helliniko): Citigroup Global Markets Limited, PiraeusBank, arcelona Strategical Urban Systems.Public Gas Company: UBS, Rothschild and Alpha Bank 21 23. Investment opportunities:Tourismwith unique competitive advantages:17th intouristarrivalsgloballyA unique past, a country full of archaeological treasures. (2010)Spectacular landscapes with pristine beaches and iconicmountains (More than 6,000 islands and islets, 15,000 kmof coastline)Anestablished Mild climate ideal for year-round tourismtourism Healthy and tasteful gastronomy in the country that destinationTourism representsgave birth to symposiums and the Epicurean philosophers. 21st in global15.3% of tourism National GDPand almost 18% revenueStrong Tourism Infrastructureof employment (2010) (2010) One of the safest countries in the Mediterranean regionwith a hospitable population.Always among top tourism destinations of the world(Greek islands received first award in 2011 Cond Nast Traveler) 22 24. Tourism: Facts & Priorities Facts 2010Priorities- Existing hotel infrastructure: 9,732 Hotel Units Increase receipts per touristproviding for 763,407 Hotel beds in total Attract tourists from new markets- Hotel Concentration:66% of hotel beds in Crete, Macedonia and Tackle seasonalityDodekaneseExploit current trends in tourism marketing-Top 5 Airports (in foreign arrivals): Enhance tourismAthens, Heraklion,Rhodes, Thessaloniki, Corfu model, incorporating special forms and development of- Employment (direct & indirect): 746.200 tourism residencesTake advantage of the number-Low average per capita tourism expenditure: 640of islands, promoting seatourism- Seasonality:Exploiting synergies between55% of arrivals from July to Septembertourism and culture andbetween tourism and medicalsector23 25. Investment opportunities: Tourism subsectorsMarinasGolf coursesHealth tourismIntegrated Resorts Wellness & spas Athletic tourismConference Tourism Eco tourism24 26. Renewable Energy Sources: An untapped potential Bound by EU regulations and Kyoto Protocol agreements 20 Billions EurosInvestment National target for RES at 20% of energy production by2020 210,000 new Jobs Increased domestic demand for electrical energy, tosurpass 80,000 GWh in 2020 from about 73,000 GWh inProjects with2010 strong cash flows and attractive High feed-in tariffs through 20 year PPA (powerReturns onpurchase agreement)Investment 4th in EU for Solar9th in EU for Wind Ideal conditions for wind and solar energy Decrease of RES production cost, attractive investmentincentives 25 27. Renewable Energy Sources:RES Market is expected to grow significantly Targeted participation of RES & conventional technology in electricity In 2020 1 MW out of 3 MWgeneration for the year 2020 in market shares & numerical targetsshould come from RES Targets set by the Committee for the National Energy Strategy The infrastructure cost to Targets are binding for the Greek governmentmeet targets represents 1/3 Wind energy is expected to dominate electricity generation from RESof the penalty to be paid byGreeks in case the targets 7,500are not metNational Targets for the year 2020Participation of RES & Conventional Technology 4,650 in Electricity Generation for the year 2020 3,237 PV 1,44%Hydro 6,08%Biomass2,200 GeothermalBiogas1.297,7 0,24%0.53%120 198,3 250 3500 0 44 Wind 24,09%HydroGeothermalPV Concetraded WindBiomass Solar ConventionalConcetrated Capacity 2010 Target 2020 66,90%Solar 0.73% Source: YPEKA, National Renewable Energy Action PlanSource: Committee for the National Energy Strategy26 28. Renewable Energy Sources:Greece has various opportunities to offer Greenfield investments in wind farmsWind Cooperation with existing firms Light manufacturing Greenfield investments in PV & SolarPV & Solar Thermal Thermal parks Light manufacturing Greenfield investments in geothermal Geothermalpower plants Greenfield investments in Biofuel plants Biofuels Biorefineries Greenfield investments in small hydroHydroplants27 29. Waste management: An upcoming and promising service sector Creation of modern, integrated facilities for treating and disposing municipal solid waste Energy recovery from organic wasteCountry targets Rehabilitation of the existing landfillsAccording to EU and national directives Greece Environmental sound management ofshould:industrial, medical and hazardous waste recover at least 60% by weight all packagingwaste by 2011 which includes recycling at Construction of suitable transfer stationleast 55%networks and recycling centresCurrent Status: 50% Selective collection at source and further decrease biodegradable waste , that is sent to recycling of municipal wastelandfill by- 1,100,000 tons in 2010, Water treatment and sea or brackish- 1,900,000 tons in 2013, and- 2,700,000 tons in 2020 water desalinationCurrent Status: 461,079 tons (42% target Wastewater and sewage treatmentcoverage)28 30. Waste management:A favorable business & legal environment Binding national and EU legislation that sets specific quantity targets in waste management and recycling A favorable 4th EU Programming Period (NSRF 2007- 2013) for waste and wastewater treatment projects A promising Public Private Partnership (PPP) framework favoring the development of environmental projects and relevant infrastructure Fast licensing procedures for large projects and projects of strategic importance ensured by the new Fast Track law (L.3894/2010) Generous incentive schemes for environmental projects through a brand new investment incentives legal framework (L.3908/2011) Easier, simpler and faster company establishment regulated by a brand new legal framework A competitive construction sector that leads project implementation Competitive and generous Feed-in-Tariff for producing electricity from the biodegradable fraction of municipal waste29 31. ICT and Life Sciences: Greece innovatesIntense R&D activitygenerates multiple investment opportunitiesThessaloniki Software Drug developmentdevelopmentLarissa Microchip and Medical &MEMS designdiagnostic devicesPatrasAthens R&D lab Clinical trialsClusters: Regional support IrakliocenterICTLifeSciences30 32. ICT and Life Sciences:Strong growth in recent yearsThe Greek ICT sector displays strong growth Strong uptake of new technologiestelecomsservicess/w h/w16,828 16,916 Booming broadband penetration 14,181 Worldwide leaders in mobile12,261penetration10,521 Amounts in $ bn Strategic geographical position andestablished company network in the region 20052006 20072008 2009 Source: Source: Federation of Greek ICT Enterprises; Digital Planet, Global Insight 2010World leaders in mobile penetration (% of pop.)Broadband penetration (mn lines) 173% 171% 148% 148% 145% 144% 141% 139% 134% 131% 2,3202,2532,154 2,1052,039 1,9171,794 1,7531,629 1,5071,311 1,2461,125 1,017904 761623 488370 297225 160 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09Dec-10Mar-06Mar-07Mar-08Mar-09Mar-10 Mar-11 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10Sep-06Sep-07Sep-08Sep-09Sep-10Source: Pyramid Research, OECD, Economist Intelligence UnitSource: Regulatory Authority World leaders in mobile penetration57% CAGR in the last 3 years31 33. Food & Beverage:A natural growth industryNiche Markets24% of Sales Honey and nut based snacks Pasta products Marmalades and pickled goods Ready made meals and frozen GDPfood20% of Total SeafoodExports Chocolates and confectionery Cheeses Specialty herb mixes5 6% 1,5% Traditional spoon sweets Liqueurs and fruit juices Herbal beverage products 24% of Organic products Employment Revenues > 2 bn 32 34. 4. Invest in Greece Agencys service offering33 35. We provide full services, so you establishyourselves and expand in Greece1. Governmental Legal Entity2. Incorporation and operation since Assistance & 1996 Advice3. Business Units: Investment Promotion Unit Aftercare Investor Services UnitFAST TRACKAnalysis Strategic Investments Unit Support Policy and Planning Unit Finance and Administration Unit Communication and Public Relations Unit FacilitationInvest in Greece provides support throughout the entire business cycle34 36. Development of Investment Opportunities Portfolio Public ProjectsPrivate Projects Promotion of mature public Development of a portfolio ofprojects, in sectors where themature private projects in manycountry has competitive sectors of the economyadvantages. More than 150 mature privately Cooperation with the relevant owned projects in our projectsMinistries and the local authoritiesportfolio.for finding projects which can Customized promotion to foreignattract private investments.Investors35 37. Invest in Greeces web-site embraces the world36 38. 37 39. 38