HELLENIC REPUBLIC ASSET DEVELOPMENT FUND. 1st GREEK INVESTMENT FORUM China, 11 December 2017

Transcription

1 HELLENIC REPUBLIC ASSET DEVELOPMENT FUND 1st GREEK INVESTMENT FORUM China, 11 December 2017

2 Greece at a glance Economy Overview ECONOMY LABOR After a prolonged depression, the economy stabilized in 2016 and GDP is projected to grow by 1.6% in 2017 and 2.5% in In 2016, the primary budget surplus was 3.8% of GDP, exceeding expectations and the 0.5% target. The agreement on the second review has improved prospects for a reversal in economic sentiment and lowered bond yield spreads. Financing conditions remain tight as a large stock of non-performing loans is weighing on banks balance sheets, restricting credit supply especially to SMEs and households, though a new resolution framework is now in place for the orderly reduction of NPLs. The labor market is improving, supporting private consumption, and higher demand from abroad is boosting exports ( 9.5%). Unemployment is declining but remains high, especially among the young, contributing to high poverty. CONSTRUCTION The number of building permits is rising and construction has bottomed out. INVESTMENT Investment has started to recover from very low level and should gather pace. PRODUCTION Production of capital goods is recovering, pointing towards rising investments. Source: OECD

3 Greece at a glance Opportunity Greece Economic Indicators Overview Last Reference GDP Annual Growth Rate 1.6% Nov 17 Unemployment Rate 20.6% Aug 17 Youth Unemployment Rate 40.2% Aug 17 Inflation Rate 0.7% Oct 17 Government Debt to GDP 179% Dec 16 Private Debt to GDP 137% Dec 16 GDP per capita $ 22,736 Dec 16 GDP from Agriculture 1,688m Jun 17 GDP from Construction 868m Jun 17 GDP from Mining 5,163m Jun 17 GDP from Public Administration 9,042m Jun 17 GDP from Services 9,664m Jun 17 Foreign Direct Investment 305m Sep 17 Tourism Revenues 3,522m Aug 17 Tourist Arrivals 2,743,210 Sep 17 Greece offers some very competitive advantages for investments: Geographical position Environment (energy resources) Tourism & Culture Human capital (low labor cost at the moment and very well educated) Climate & Lifestyle The basic problem of the economy at the moment is the insufficiency of domestic savings to meet the investment needs, which are significant in order to satisfy the agreed growth rates as well as cover the fiscal targets set on the economic adjustment program implemented. The problem worsens by the weakness of the banking system to act its role as a mediator and support the conversion of deposits to investments. Foreign investment then provides the only solution to growth, and capital inflow will be achieved by strengthening the country s credibility as a safe investment destination. A couple of previous privatization cases prove that Greece is a safe and attractive investment destination and the opportunity for Investors remains high. Corporate Tax Rate 29% Dec 17 Sales Tax Rate 24% Dec 17 Social Security Rate 40.06% Dec 17 Social Security Rate for companies Social Security Rate for employees 24.56% Dec % Dec 17

4 Privatizations Development & growth One reason people resist change is because they focus on what they have to give up, instead of what they have to gain. Privatizations have always been a difficult task and face a lot of opposition from society in all countries. The main obstacle is the lack of information or evidence of the benefits of privatization. Aside from the fact that in most cases the state has proven to be a poor manager, having gained all past international experience, nowadays we may claim that privatization is a one-way street for modernizing a company, bringing in new funding and expertise, and making it a profitable and efficient business. Privatizations have a significantly positive impact on: the local economy increasing competition, improving productivity and services creating new jobs overall growth of the economy reducing public debt Greece has one of the highest degrees of state control in the productive sectors across OECD countries, not only because of direct state ownership but also because of extensive government regulation. The scaling down of an oversized and inefficient public sector will facilitate the reduction of the excessively high tax rates benefiting the private economy and facilitating return to growth. Transparency of the bidding process, precise specification of the contract and the monitoring and enforcement of the agreement secure the advantages.

5 The Fund Hellenic Republic Asset Development Fund S.A. Background Established in 2011 following a severe sovereign debt crisis, in order to privatize public assets yielding significant revenues to reduce public debt. Share capital 30m euros ( ) Shareholder: Hellenic Corporation of Assets & Participations (HCAP) Key objectives Attract direct investment Maximize revenues to the Greek State Restart the Greek economy

6 Hellenic Republic Asset Development Fund S.A. Core principles of operation Financial, Legal, Technical Advisors Hellenic Corporation of Assets & Participations HRADF BoD & Observers HRADF s staff Clarity of purpose Adapting to market trends. Pursuing clear & market-oriented privatization concepts. Restructuring/Reforming operations & financial status of assets to achieve higher revenues. Transparency of the process Corporate Governance Policies. Internal & External Auditors. Tenders announced to media and corporate website. Three independent parties involved in every privatization: Council of Experts Independent Evaluator Court of Auditors. Council of Experts Independent Evaluator Swift action & focus on results Value Preferred Bidder Court of Auditors CONTRACT Engagement with Government Departments, Local Authorities, State Agencies and other appropriate bodies to eliminate regulatory, administrative and technical barriers. Privatizations and mandatory investments included in infrastructure tenders, promote growth, increase competition, create new jobs, and restore the country s credibility. Two-way communication with local communities to consider and address their concerns and decide on optimum solutions. Ongoing & after-sales service to Investors, to facilitate transactions.

7 Current Status Key achievements Transactions Overview ( ) million ( ) million 38 privatizations completed or put on track properties reviewed for development 7.5bn completed transactions from 2011 to date Transactions 1.165, ,40 419,6 289,1 5, ,70 4.7bn collected until today Proceeds split 1.4bn total proceeds in ,70 929, projects in progress/in preparation 277,1 352,4 235,1 5, ,3 25,4 134, Corporate & Infrastructure Real Estate

8 Portfolio Corporate Company Market Shares (%) Status Energy Electricity 17% RFP for the appointment of Strategic Advisors - Dec PUBLIC POWER CORPORATION (PPC) GREEK PETROLEUM (HELPE) Energy Oil 35.5% Energy Natural Gas 65% In the process of evaluating optimum ways of privatization RFPs for the appointment of Legal Consultants, Greek and Int l & European Law TBC In the process of evaluating optimum ways of privatization PUBLIC GAS CORPORATION (DEPA) Telcos 5% RFPs for the appointment of Legal Consultants, Greek and Int l & European Law OTE

9 Portfolio Infrastructure assets Company Market Shares (%) Status Athens Water supply & Sewerage Thessaloniki Water supply & Sewerage Athens International Airport Egnatia Motorway Water 11% Water 23% Transport 30% Transport Long-term concession Length: 670km Stretching from Western Greece (Igoumenitsa) to the Eastern borders with Turkey (Kipi) In the process of evaluating optimum ways of privatization In the process of evaluating optimum ways of privatization Approvals for the extension of the concession agreement until 2046 pending RFP for the appointment of Legal Consultants (TBC) Phase A (EoI) deadline for submission Jan. 26, 2018 Phase B deadline for submission of binding offers Feb. 14, 2018 Rolling stock maintenance for railways Infrastructure 100% Phase B deadline for submission of binding offers Dec. 22, 2017 Hellenic Gas Transmission System Operator Infrastructure 66%

10 Egnatia Motorway Tender for Expression of Interest (Phase A) Identity Length: 670km Two traffic lanes per direction, a central reserve and an emergency lane 63 road interchanges 177 major bridges 350 entrance / exit overbridges and underpasses 73 twin-bore tunnels (max. length 4.8 km) 43 river crossings 11 railway crossings Connectivity Regions: Thesprotia - Ioannina - Grevena - Kozani - Imathia - Thessaloniki - Kavala - Xanthi - Rodopi Evros Countries: Albania - FYROM - Bulgaria - Turkey, through nine major vertical axes Towns: Igoumenitsa - Ioannina - Metsovo - Grevena - Kozani - Veroia - Thessaloniki - Kavala - Xanthi - Komotini Alexandroupoli Passing near: 332 towns and villages, 30 touristic or otherwise special locations Overall construction cost: 6bn (VAT excl.) Co-funded by the EU Part of the Trans- European Transport Network A project of great geopolitical significance in SE Europe Commercial/Civil transport 4 Ports: Igoumenitsa - Thessaloniki - Kavala Alexandroupoli 6 Airports: Ioannina - Kastoria - Kozani - Thessaloniki - Kavala Alexandroupoli 10 Industrial Zones: Ioannina - Florina - Edessa - Thessaloniki - Kilkis - Serres - Drama - Xanthi - Komotini Alexandroupolis, either directly or through its vertical axes Zone of influence 36% of the country s population 33% of the country s GNP In the primary sector, 54% of the country s agricultural land and 65% of the total irrigated land. In the secondary sector, 41% of the country s employment in industry/small trade 51% of the country s extractive industry

11 Portfolio Infrastructure assets Ports & Marinas Company Market Shares (%) Status Transport Long-term concession In the process of evaluating optimum ways of privatization 10 Regional Ports Thessaloniki Port Authority Transport Long-term concession Preferred bidder selected Approvals pending for the Concession Agreement to be signed In the process of evaluating optimum ways of privatization Tourism Long-term concession Marinas Alimos Marina Tourism Long-term concession 1,100 berths Total Land Area: 210,000 m² Location: 10km from Athens center Phase A (EoI) deadline for submission Jan. 16, 2018 Chios Marina Tourism Long-term concession Total land area: 41,000 m² Berths: 196 Location: Eastern Aegean Sea Phase A (EoI) deadline for submission Jan. 18, 2018 Tourism Long-term concession Phase B deadline for submission of binding offers Feb. 16, 2018 Pylos Marina

12 Alimos Marina (Athens Attica region) Open tender for Expression of Interest (Phase A) Few hours sail to the islands of Saronic Gulf (Hydra, Spetses, Poros, Aegina). Less than a day s sail to the islands of Cyclades (Kea, Kithnos, Sifnos, Myconos, Milos, Ios, Paros, Naxos and others). Specifications Currently managed and operated by ETAD (Public Properties Company). 1,100 berths Total Land Area: 210,000 m² 18,200 m² of buildable space Location: South-West of Athens 20 min from Athens city center 30 min from Athens International Airport 15 min from Piraeus Port

13 Alimos Marina (Athens Attica region) Open tender for Expression of Interest (Phase A) Zone Use Buildable Area Zone I Marina Offices Dry Docking Service Area Tourism & Leisure m 2 Zone I Zone II Zone IIIa Zone II Marina main offices 525 m 2 Zone IV Zone IIIb Zone III Tourism & Leisure (incl. the existing Olympic size swimming Pool) Marina Offices m 2 Zone IIIc Karathona Estate Zone IV Tourism & Leisure (Bars & Restaurants only) m 2 Zone V Zone V Sailing Academy (Ν.Ο.Κ.) 600 m 2 TOTAL: m 2

14 Chios island Marina (Eastern Aegean Sea) Open tender for Expression of Interest (Phase A) Uses may include (indicatively): Specifications Restaurants, tavernas, marine stores, leisure, boat sales, boat service & maintenance and buildings for similar uses, etc. The parking area may be used for dry docking during low season. The slots at the land area may be used as a parking during high season. Currently managed and operated by Chios Municipal Port Authority Total land area: 41,000 m² Berths: 196 Max rate of building construction: 0,30 of the total land area Max percentage of plot coverage: 20% Uses segmentation Hotels 0,20 Commercial activities 0,30 Residencies 0,20 Sports facilities & Land storage facilities Max permissible exploitation

15 Chios island Marina (Eastern Aegean Sea) Open tender for Expression of Interest (Phase A) ZONE 2 ZONE MAX COVERAGE (%) PERMISSIBLE EXPLOITATION CONSTRUCTION TERMS SIZE (sq. m.) MAX TOTAL EXPLOITATION ZONE , OUT OF ZONES SUB ZONE 2A SUB ZONE 2B 49 0, , MAX HEIGHT ALLOWANCE (m) Maintenance & dry docking toll. Control tower: 10m. Other buildings: 8,50m + roof height (from final ground elevation) Control tower: 10m. Other buildings: 8,50m + roof height (from final ground elevation) 4,50m + roof height (from final ground elevation) USES - Marina Offices - Dry Docking / Service Area - Tourism & Leisure - Athletics - M&E facilities - Marina Offices - Tourism & Leisure - M&E facilities - Marina Offices - Tourism & Leisure apart from shopping centers (stores & offices) & gathering areas & Karathona Estate cultural activities - M&E facilities TOTAL GENERAL BUILDING CONSTRUCTION AVERAGE: / = Gas station & waste and residue reception - Other uses (entrance, streets, parking areas, seafront service zone, green, etc.)

16 Thessaloniki Marina (Aretsou Kalamaria) Future openings Uses may include (indicatively): Specifications Restaurants, tavernas, marine stores, leisure, boat sales, boat service & maintenance and buildings for similar uses, etc. The parking area may be used for dry docking during low season. The slots at the land area may be used as a parking during high season. Currently managed and operated by Chios Municipal Port Authority Total land area: 78,000 m² Berths: 245 Max rate of building construction: 0,40 of the total land area Max percentage of plot coverage: 20% Uses segmentation Hotels 0,20 Commercial activities 0,20 Residencies 0,20 Sports facilities & Land storage facilities Max permissible exploitation

17 Argostoli Marina (Cephalonia Ionian Islands) Future openings Currently the land area is occupied by: There are no buildings within the land area of the marina The land area is used as a dry storage area by locals Abandoned ships, shipwrecks and some solid waste Specifications Currently managed by the Ministry of Tourism. 190 berths (provides dry storage area) marina includes an unconstructed B-phase of the marina Land area: sq.m. (also dry docking capacity for dry storage and yacht maintenance for 100 vessels). Land surface needs to be re-measured. Sea/coastal area: sq.m.

18 Argostoli Marina (Cephalonia Ionian Islands) Future openings Full Development Potential (Phase A&B) Planned Allowed Uses and Maximum Buildable Area Envisaged Developments Zoning: Currently, there is no zoning in the land area of the marina. Berths: 190 berths (A+B phase) Sea area: Accommodation of yachts, potential accommodation of seaplanes Dry storage area: Dry storage and yacht maintenance area for 100 vessels Maximum available area for building development: sq.m. Land area: Developments and uses relative to: Marina administration & operation, Yachts dry storage & maintenance, Tourism & Leisure, E/M facilities, nautical sports, petrol station, hotel, vacation homes, etc. Green areas, landscaped free spaces, footpaths, bicycle way, internal network

19 Zakynthos Marina (Zakynthos - Ionian Islands) Future openings Currently the land area is occupied by: There are no buildings within the land area of the marina The land area is used as a dry storage area by locals Abandoned ships, shipwrecks and some solid waste Specifications Currently managed by the Ministry of Tourism Berths: 150 berths Sea /coastal area: sq.m. Land area: sq.m. (part of it is concessed to the Prefecture for the building of a bridge across the creek of Agios Haralambis along with the necessary road junction) Adjusted to the main harbor of Zakynthos Land use categories Hotels 0,20 Commercial activities 0,40 Residencies 0,70 Maximum building coefficient for each use Building coefficient: 1,0 of the total land area Uses may indicatively include: restaurants, taverns, boat stores, other shops, entertainment centers, sale of boats, buildings for repair and maintenance of boats and similar stores etc.

20 Marina of Mandraki (Rhodes island) Future openings Currently the land area is occupied by: Management office 70m 2 3 stores, each 24m 2 Port Authority & Customs Sea area: Accommodation of yachts Dry storage area: There is no such provision Specifications Currently managed by the Municipal Port Authority of Southern Dodecanese Berths: 175 berths Total berthing length: 1,030m Sea /coastal area: 69,630 sq.m. Land area: 12,700 sq.m. Located on the coastal front of the town of Rhodes Berth size Up to 13m Up to 17m Up to 20m No. of Berths Up to 30m 10 Maximum available area for building development: n/a. Planned Allowed Uses and Maximum Buildable Area Zoning: Currently, there is no zoning in the land area of the marina

21 Marina of Itea Future openings Although small and without a significant development capacity of the Land zone, the marina has a potential to act as a stop during the crossing of the Corinthian Gulf for vessels traveling from the Aegean to the Ionian Sea via the Corinth Canal. Boaters can also visit the historical site of Delphi nearby. Specifications Currently managed by the Municipal Port Authority Berths: 146 berths Sea /coastal area: sq.m. Land area: 24,700 sq.m. Zone 1 Zone 2 Zone 3 ZONE USE Max. Buildable Entrance Fire station Electro-mechanical facilities Marina Administration and Operation Port Authority Customs Storage Toilets 67 sq.m. 425 sq.m. 135 sq.m. Zone 4 Tourism Leisure (restaurants and canteens) 80 sq.m. Total*: Various 4 sq.m. *Uses outside zones area (yacht fuel and waste reception station) of total area of 20 sq.m. 711 sq.m.

22 Regional Ports Future openings HRADF holds 100% of the shares in the port companies (private companies) that operate these ports Specifications Port Container General Cargo Dry Bulk Car Terminal Ferry Cruise Patra Heraklion Volos Igoumenitsa Currently in the process of evaluating the most appropriate approach for development Corfu Elefsina Lavrion Rafina Kavala Alexandroupolis

23 Elefsina Port (Attica Region) Future openings Located in the broader Athens area. Mostly serving the Attica region. Specifications Operational General cargo Dry bulk Coastal/Ferries/PAX Drivers/Demands Local economy Local economy Commuting srvc to isl. Volume Handled (2015) 0.3 MM tons * 0.1 MM tons 0.5 MM pax / 0.3 MM vehicles Installed Capacity 2.8 MM tons 0.3 MM tons 1.7 MM pax / 0.7 MM vehicles General cargo mostly steel and iron, presumably reduced in line with economy. Future plans for port relocation to the western end of port zone; location with very good road and rail connection possibilities. Utilization Level (%) 10% 32% 28% (Pax), 41% (vehicles) Rail Connection Road Connection *Includes limited amounts of liquid bulk Infrastructure data Piers at Perama Megaridos (12km to the west of the main port) Quay Length 1,048m 118m (also use the General Cargo quays) 32m at Perama (Megaridos, 12km west of the main port) Water Depth to m to -6.00m -2.50m Usable Area 36,000 m² 6,000 m² Major Equipment Source Technical Advisors estimates 3 Mobile Cranes, 6 Clarks, 1 Loader No Road connection to the national road network and ATTIKI ODOS through the city of

24 Lavrio Port (Attica Region) Future openings Located in the broader Athens area. Ferry traffic to the islands (Kea, Kythnos, Syros etc.). The decrease of revenues in 2010 is mainly due to the termination of containers loading/ unloading activity. Minor RoRo traffic (Greece Cyprus Israel). New Passengers Terminal under construction. Plans for upgrading and expanding existing marinas. Specifications Operational Piers 65 to 69 (Dry Bulk also here) 9 to 19 Quay Length 679m 590m Water Depth to -9.50m to 7.00m Usable Area Major Equipment Source Technical Advisors estimates General Cargo Ferry Cruise Drivers/Demands Local economy Island Population Tourism Greek economy Tourism Cruise sector trends Volume Handled (2015) 0.02 MM tons 0.38 MM pax 0.04 MM pax Installed Capacity 0.9 MM tons 3.4 MM pax - Utilization Level (%) 2% 11% - Rail Connection No * Road Connection *Plans for extension of Athens Suburban Railway Infrastructure data Road connection to the Commercial port through the city of connection to the passenger s port

25 Rafina Port (Attica Region) Future openings Located in the broader Athens area East coast of Attica, 30 km from Athens Ferry traffic to the islands (Cyclades) Specifications Operational Ferry Drivers/Demands Island Population Tourism Greek economy Volume Handled (2015) 1.64 MM pax/0.3 MM vehicles Installed Capacity 3.1 MM pax Utilization Level (%) 53% Plans for New Passengers Terminal Rail Connection No * Road Connection Road connection to ATTIKI ODOS *Plans for extension of Athens Suburban Railway Infrastructure data Piers 1 to 13 Quay Length Water Depth Usable Area 343m to -8.00m Source Technical Advisors estimates

26 Patras Port (Peloponnese) Future openings Located in Western Greece. Specifications Handles more than half of Greek International Ferry passenger traffic. Old port used for small domestic ferry traffic; part of it to be used for cruise activity. Operational General Cargo Dry Bulk Ferry Cruise Drivers/Demand Local economy Local economy Islands Population Greek economy Volume Handled (2011) 161,000 tons 0.1 MM tons 0.6 MM Pax 0.3 MM vehicles (2014) Tourism Cruise sector trends 467 Pax Installed Capacity 306,000 tons 245,000 tons 2.8 MM Pax 350,000 Pax Utilization Level (%) 52% 45% 19% ~ 0% Rail Connection Road Connection Infrastructure data Road connection to Patras ring road/athens-patras motorway No New port used for Int l Ferry & Ro-Ro traffic (Greece-Italy). Four berths in the new ferry terminal completed, start of construction of 5th birth imminent. Piers Gounari Pier (serves both general and bulk cargo) Quay Length 250m 1,192m New Port/ Ag. Nikolaou Pier (Old Port) Water Depths -8.40m to 10.5m Usable Area Major Equipment 26,200m² 3 Cranes, 14 Forklifts This activity does not exist In Patras Port New passengers terminal & other port services buildings completed. Source Technical Advisors estimates Mainly used by ferry lines.

27 Igoumenitsa Port (Ionian Sea) Future openings Located in Northwestern Greece Int l & domestic ferry and Ro-Ro traffic (Greece-Italy & Igoumenitsa-Corfu) Specifications Operational Ferry Cruise Drivers/Demands Islands Population Tourism Tourism Cruise sector trends Egnatia motorway Greek economy and economic policy Volume Handled (2015) 2.4 MM Pax/0.8 MM Vehicles 3,090 Pax Part of TEN-T core Network (Trans-European Transport Network) Installed Capacity 8.0 MM Pax 624,000 Pax Utilization Level (%) 30% 0% Rail Connection No Road Connection The port is directly connected to EGNATIA Motorway Infrastructure data Phase B of new ferry terminal under construction Piers Quay Length 1,831m Water Depth to m Usable Area For Cruise activity same quays as for the Ferry Source Technical Advisors estimates

28 Corfu Port (Ionian Sea) Future openings Located on the island of Corfu Cruise traffic destination (430 calls in 2012); well-established cruise destination (UNESCO heritage site) Specifications Operational Ferry Cruise Drivers/Demands Island Population Tourism Tourism Cruise sector trends Greek economy Volume Handled (2015) 1.5 MM Pax/0.4 MM Vehicles 0.6 MM Pax Installed Capacity 4.65 MM Pax 0.7 MM Pax Utilization Level (%) 32% 83% Rail Connection - Road Connection - Domestic ferry traffic (Igoumenitsa-Corfu) and international ferry traffic (Greece-Italy) Infrastructure data Piers 8-18 & lee breakwater Quay Length 1,503m 975m Water Depth to m to m Usable Area New domestic ferry terminal completed; extension of cruise pier under construction Source Technical Advisors estimates Yacht shelter under construction

29 Heraklion Port (Crete) Future openings Located on the island of Crete 5 piers that facilitate the traffic of dry bulk and general cargo, containers, as well as coastal shipping and cruise passengers Specifications Operational Container General Cargo Dry Bulk Ferry Cruise Islands Population Tourism Drivers / Demand Local Economy Local Economy Local Economy Tourism Cruise sector Greek economy trends Volume Handled (2015) 19,551 TEU 0.02 MM tons 0.1 MM tons 1.5 MM Pax / 0.3 MM vehicles 0.2 MM Pax Installed Capacity 195,000 TEU 1.7 MM tons 1.4 MM tons 2.8 MM Pax 0.5 MM Pax Utilization Level (%) 10% 8% 7% 51% 42% Rail Connection - Road Connection - Customs Service operating within the port, allows movement and storage of imports/exports Cruise traffic, homeporting agreement for 2012 Infrastructure data Piers IV-V III I, II & AB I, II, IV & V, CD Quay Length 311m 450m Same quays as for 978m 1744m Water Depth m m General Cargo to m to m Usable Area 50,000 m 3 31,500 m 2 Major Equipment Source Technical Advisors estimates 2 Mobile cranes, 1 Gantry crane, 3 Reachstackers 6 Gantry cranes, 8 Forklifts Beginning of authorization procedures for the operation of hydroplanes

30 Volos Port (Eastern Greek mainland) Future openings Located at the Gulf of Pagasitikos General cargo and dry bulk traffic (mainly scrap & grains) Ferry connections to Sporades islands Specifications Operational Container General Cargo Dry Bulk Ferry Cruise Islands Population Tourism Drivers / Demand Local Economy Local Economy Local Economy Tourism Cruise sector Greek economy trends Volume Handled (2015) 19,046 TEU 0.4 MM tons 0.25 MM tons 0.32 MM Pax / 0.05 MM vehicles 0.07 MM Pax Installed Capacity 41,000 TEU 2.6 MM tons 1.4 MM tons 1.4 MM Pax 247,000 Pax Utilization Level (%) 46% 15% 18% 22% 26% Rail Connection Road Connection Infrastructure data Piers Rail connection to the national network Road connection to Athens-Thessaloniki Motorway Same quays as Quay Length 413m for Dry Bulk and 994m 333m 380m Water Depth m Containers -11.0m to -11.0m m Usable Area 37,000 m 2 70,000 m 2 Major Equipment 11 Harbour Cranes, 5 non-operational

31 Kavala Port (Northern Greece) Future openings Located in East Macedonia and Thrace region. Main commodity is marble, as general cargo and dry bulk Ferry & Cruise activities from old port in city center; Ferry connection to Thassos island and North Aegean islands Old Port: Extension of main breakwater by 80m under construction; Rehabilitation of old warehouse (2,000 sq.m.) to be used as passengers/cruise terminal; call for tenders for 35 years lease Phillipos B: Construction of a 120 m long detached breakwater under way Specifications Operational Infrastructure data Source Technical Advisors estimates General Cargo Dry Bulk Ferry Cruise Drivers/Demand Local economy Local economy Islands Population Tourism Greek economy Volume Handled (2015) 0.06 MM tons 0.46 MM tons 1.9 MM Pax/ 0.5 MM Vehicles Tourism Cruise sector trends 0.1 MM Pax Installed Capacity 1.1 MM tons 4.9 MM tons 2.1 MM Pax 0.04 MM Pax Utilization Level (%) 3% 9% 91% 18% Rail Connection Road Connection Piers No Phillipos B commercial port is directly connected to Egnatia Motorway Quay Length 405m Same quays 450m 588m Water Depths m as for the m m Usable Area 52,000 m 2 General Cargo Major Equipment 1 Crane

32 Alexandroupolis Port (Northeastern Greece) Future openings Located in Thrace region, close to Turkey & Bulgaria Potential Container Terminal yard completed; not in use (idle space) Specifications Operational General Cargo Dry Bulk Costal/Ferries/Pax Drivers/Demands Local economy Local economy Island Population Tourism Greek economy Volume Handled (2015) 0.03 MM tons 0.27 MM tons 0.14 MM pax/0.03 MM vehicles Installed Capacity 1.9 MM tons 0.6 MM tons 0.7 MM pax General cargo and dry bulk traffic volumes; Cargo traffic due to geographical position, rail and road connection and existing infrastructure Ferry connection to Samothraki island Agreement between Kavala, Alexandroupolis, Varna and Burgas ports for submitting a proposal to MED Program for upgrading the rail infrastructure between them Utilization Level (%) 2% 45% 21% Rail Connection Rail connection close to the port (300m) Road Connection Road access through the city to EGNATIA Motorway (10km) Infrastructure data Piers Quay Length 670m Same quays as for the General 395m Cargo Water Depth -8.00m to m Usable Area 44,000 m² Major Equipment 1 Mobile Crane Source Technical Advisors estimates Dredging of access channel needs to be completed

33 Portfolio Real Estate Real Estate e-auction e-publicrealestate.gr Olympic Assets Thermal Springs Residential Infrastructure Mixed uses Tourism Leisure Commercial Commercial Tourism / Leisure Unique variety of healing properties Proximity to exquisite natural sceneries Potential for outdoor activities Proximity to historical sites Potential to grow into holistic wellness centers Cluster of Fthiotida, Kyllini, Kythnos island

34 Real Estate Development Special Development Planning Zone (ESCHADA) Legal framework introduced in 2011 for the development of public real estate. ESCHADA plans set specific regulations on areas and define the permitted land uses and planning restrictions for public real estate assets. ESCHADA provides for land uses regulations and building terms conditions on public properties, supported by a Strategic Environmental Impact Assessment Study. Advantages summarized: Assignment multifaceted, multi-operational and complementary land uses to a public real estate property. Faster and easier procedures for the approval of urban planning arrangements. Assignment of higher building coefficients on the property. Ability to develop properties with special uses, such as vacation homes and homes in combination with other operations resulting in their best exploitation. This ability provides the perspective of grouping properties under common types of development (golf, winter tourism, health tourism, etc.). Higher certainty for the investor regarding the implementation of the projects. This is achieved through the ratification of ESCHADA as a Presidential Decree, so that the investor has the approval of land uses and building terms secured for the property they are interested in. Flexibility of planning framework, which until it is implemented in the form of zoning profile proposed by the investor it allows for changes and choices for the optimization of the investment.

35 Real Estate Attica Location: Pounta Zeza, Municipality of Lavreotiki Two adjacent land plots in Lavrio (ΑΒΚ 983 & 192Α) Land plot area: ΑΒΚ 192Α: 38, sqm ΑΒΚ 983: 146, sqm Other information: Encroachments have been identified inside the land plots. Parts of the properties wider area are subject to archaeological restrictions. Development concept: Tourism - Recreation and/or residential uses

36 Real Estate Attica Location: Merenda area, Municipality of Markopoulo Mesogaias Markopoulo Olympic Equestrian Center Land plot area: 1,029, sqm (exploitable area: 305, sqm) Built area: 24, sqm (open and enclosed equestrian fields, training arenas, stables, veterinary clinic, office building) Development concept: Sport and recreation uses, upon elaboration of ESCHADA

37 Real Estate Attica Location: Schinias, Marathonas Municipality Schinias Olympic Rowing Center Land plot area: 2,002, sqm (of which 750, sqm constitute water area) Built area: 7, sqm Other information: Located within Natura 2000 Network and within Zone B1 of Schinias National Park. HRADF only retains the right of use and exploitation of the property. Development Concept: Sport and recreation uses

38 Real Estate Thessaloniki Location: Thermi Municipality, Thessaloniki Military Air Base SEDES (ΑΒΚ 2653) Land plot area: 1,360, sqm Existing buildings: Buildings and facilities that are currently used by Hellenic Air Force Other information: The property has been characterized as a military area, whose use and competence belongs to Hellenic Air Force (GG 224/A/1999) Development concept: Mixed uses

39 Real Estate Chalkidiki Location: Monodendri Azapiko area, Sithonia Municipality Land plot in Monodendri - Azapiko Land plot area: 291, sqm Existing buildings: Three abandoned ground floor buildings ( sqm) and one little church Other information: An archaeological site is identified inside the property. Parts of the property fall within Protection Areas P2 according to the current General Urban Plan Development Concept: Tourism - Recreation

40 Real Estate Chalkidiki Location: Possidi area, Kassandra Municipality Possidi Camping Land plot area: 250, sqm Existing buildings: Camping facilities and supporting buildings with a total built area of 3, sqm Other information: Archaeological sites, as well as forest areas of absolute protection are identified inside the property Development Concept: Tourism - Recreation, upon elaboration of ESCHADA

41 Real Estate Chalkidiki Location: Sani area, Kassandra Municipality Land plot in Sani, Kassandra Land plot area: 915, sqm (comprising of two adjacent land plots of 643, sqm and 271, sqm, respectively) Existing buildings: N/A Other information: The property is subject to severe environmental and archaeological restrictions Development Concept: Tourism - Recreation

42 Real Estate Kavala Location: Alanes area, Nea Heraklitsa, Municipality of Paggaio ΑΒΚ 3396 & Nea Iraklitsa Estate Land plot area: 149, sqm (Plot Α: 44, sqm & Plot B: 105, sqm) Existing buildings: Three non-permanent buildings operating as a bar Other information: Adjacent seaside land plots with a total coastal façade of c. 600 m. Development concept: Tourism - Recreation

43 Real Estate Aetoloakarnania Location: South and east of the toll station of Rio- Antirrio bridge, Municipality of Nafpaktia Land plot (former construction site) in Antirrio (ΑΒΚ 314) Land plot area: 189, sqm (exploitable area: 145, sqm) Existing buildings: N/A Development concept: Conference center - Logistics, upon elaboration of ESCHADA

44 Real Estate Argolida - Peloponnese Location: Sampariza or Pigadia area, Thermisia, Municipality of Ermionida Land plot area: 171, sqm Existing buildings: N/A Other information: Property comprised of two land plots (157, sqm & 13, sqm) separated by a road Development concept: Tourism Recreation, upon elaboration of ESCHADA Seaside land plot in Sampariza, Ermioni (ΑΒΚ 123, 199 & 200)

45 Real Estate Argolida - Peloponnese Location: Ververonta area, Porto Heli, Municipality of Ermionida Land plot area: 627, sqm Existing buildings: N/A Development concept: Tourism and Leisure uses, e.g. a 9-hole golf course and hotel with supporting hospitality and leisure facilities, as well as development of a Type B Airport, upon elaboration of ESCHADA Land plot in Porto Heli

46 Real Estate Argolida - Peloponnese Location: Karathona beach, Municipality of Nafplio Land plot area: 425, sqm Coastal facade: 1,480 m Other information: Unique location, at a distance of 4 km from the town of Nafplio, offering a panoramic view to the bay of Argos. Development concept: Hotel - Leisure Resort & Second Home Residencies Land plot in Nafplio

47 Real Estate Ilia - Peloponnese Location: Thines area, Vartholomio, Pineios Municipality Land plot in Vartholomio Land plot area: 952, sqm Other information: A large part of the property is covered by sand hills, while a smaller part is covered by bushy vegetation. Parts of the property have been characterized as forest and as reforestation areas. Development concept: Tourism Recreational uses, including a 18-hole golf course, upon elaboration of ESCHADA

48 Real Estate Lakonia - Peloponnese Location: Kato Glykovryssi area, Municipality of Evrotas Land plot area: 600, sqm Coastal facade: 1,600 m Existing buildings: Abandoned camping facilities and a few arbitrary constructions Other information: Uncultivated land covered mainly by soil, native vegetation and high trees Development concept: Tourism - Recreation Seaside land plot in Glykovryssi (ΑΒΚ 379)

49 Real Estate Heraklion - Crete Location: Gouves area, Hersonissos Municipality Former American Base in Gournes, Heraklion, Crete (ΑΒΚ 289) Land plot area: 738, sqm Exploitable area: 349, sqm Existing buildings: Approx. 140 buildings built during the operation period of the Base, which could be demolished. Outside the exploitable area there buildings of the Hellenic Centre for Marine Research, the International Exhibition Center of Crete and others. Development concept: Theme Park Retail and Tourism Recreation uses, upon elaboration of ESCHADA

50 Thermal Springs HRADF portfolio Platystomo Thermal Spring Ypati Thermal Spring Thermopylae Thermal Spring Kamena Vourla Thermal Spring & Koniavitis Camping Kamena Vourla Thermal Spring Kyllini Thermal Spring Kythnos Thermal Spring

51 Thermal Springs Why thermal springs in Greece? Greek thermal water composition provides a unique variety of healing properties (Hellenic natural resources spread all over Greece are recommended for both therapeutic and preventative purposes, having beneficial effect in several diseases related to musculoskeletal system, rheumatism, gynecological ailments etc) Proximity to areas of great historical interest (Thermopylae monument of Leonidas, Byzantine Museum of Fthiotida, ancient ruins and castles) Proximity to exquisite natural sceneries (Both seaside and mountainous landscapes of unique natural beauty) Potential for many complimentary outdoor activities (skiing in Parnassos and Karpenisi ski areas, trekking, hiking etc)

52 Thermal Springs Why thermal springs in Greece? Why Rehabilitation enhanced with thalassotherapy The proximity of all Greek thermal springs to the sea offers the possibility of combining thermal healing methods with thalassotherapy Thermal Rehabilitation enhanced with climatotherapy Greece is one of the privileged countries that nature has endowed with rich scenery changes and Mediterranean climate, which is characterized by dry, warm-hot and sunny summers and mild and wet winter. Residence in this climate during the summer can have beneficial effect on asthma, allergies, tuberculosis, bronchitis, pneumonia, cardiovascular and neurological diseases patients. Greek Greece is considered to be rich in geothermal resources, offering a promising potential for geothermal water utilization for heating applications alongside patients rehabilitation purposes Easy extraction of thermal water The hot springs in Greece gush to the surface, allowing them to be easily exploited Springs

53 Thermal Springs Platystomo - Fthiotida Recommended for treatment of rheumatism, arthritis, skin diseases, gynecological ailments, liver diseases, biliary tract, digestive tract and urinary disorders The property is envisaged to be promoted for development through sale or long-term lease, as is Potential development of the property is suggested to be oriented towards the upgrade and enhancement of existing tourism and leisure facilities General Info Prefecture Municipality Fthiotida Makrakomi Two hotels, one hydrotherapy center (spa) and numerous supporting facilities are located inside the property. Landplot 785,398 sqm One of the hotels and some of the supporting facilities are abandoned. The rest of the Built area 11,194 sqm existing facilities (of total built area sq.m.) are currently operating. Development concept Tourism-Leisure, Spa, Thematic Park The property is currently leased. However, there is a pending litigation between ETAD S.A. and the lessee, who is expected to leave the property.

54 Thermal Springs Ypati - Fthiotida Recommended for treatment of heart disorders, hypertension, rheumatism, arthritis, migraine, post traumatic situations and chronic nervous diseases. Potential development of the Property could indicatively include: Continuation of the operation of the hydrotherapy center Restoration of the listed buildings Lamia, Ypati and Xenia Development of a new 5* hotel (c. 300 rooms) Development of agro tourism facilities Supporting commercial leisure uses Total buildable area: 53,250 sqm General Info Prefecture Municipality Landplot Built area Development concept Fthiotida Lamia 700,326 sqm c. 11,098 sqm Tourism-Leisure, athletic facilities, healthcare buildings Located at the foot of Oiti mountain, within the homonymous town of Loutra Ypatis. Three listed hotel buildings, one hydrotherapy center (spa) and numerous supporting facilities included. The spring is known since ancient times and its therapeutic value is unique compared to other greek springs. The property is currently operating as a hydrotherapy center. ESCHADA area Property s boundaries

55 Thermal Springs Thermopylae - Fthiotida Recommended for treatment of rheumatism, gynecological and peripheral nerves diseases. Potential development of the Property could indicatively include: Upgrade of existing hotels and supporting facilities Part II: Development of theme / historical park supported by restaurants and a 4* hotel. Total buildable area: 6,323 sqm Part III: Rehabilitation center / training center, supported by a number of bungalows for the accommodation of the patients and their companions Total buildable area: 14,055 sqm General Info Prefecture Municipality Landplot Built area Development concept Fthiotida Lamia 785,398 sqm. 4,057 sqm Tourism, Leisure, Historical Theme Park Located in an area of great natural beauty, at the foot of mountain Kallidromo, next to very important historical sites Two hotels, one hydrotherapy center (spa) and numerous supporting facilities are located inside the property but, currently, are not operating. I II I II ESCHADA area Property s boundaries Under investigation

56 Thermal Springs Kamena Vourla Thermal Spring & Koniavitis Camping Fthiotida Recommended for treatment of rheumatism, arthritic deformation, gynecological ailments, skin and vascular diseases. Potential development of the Property could indicatively include: Development of vacation homes and supporting tourism recreation facilities, mainly at parts II and VI of the property Development of supporting commercial leisure uses and a marina at the southeastern part of the property. General Info Prefecture Municipality Landplot Built area Development concept Fthiotida Molos - Ag. Konstantinos 789,272 sqm 1,510 sqm Tourism, Leisure, vacation homes, ecocamping Beachfront property Located at the foot of mountain Kallidromo, in proximity to areas of historical interest and natural beauty Abandoned camping and supporting facilities are located inside the property Total buildable area at parts II and VI: Tourism / recreation: 8,500 sqm Vacation homes: 24,600 sqm Total buildable area at parts III and IV: Tourism / recreation: 8,900 sqm I II V I III I V

57 Thermal Springs Kamena Vourla Thermal Spring Fthiotida Recommended for treatment of chronic rheumatism, arthritis, nephritis, gout and nervous disorders, gynecological ailments, skin and circulatory system diseases. Potential development of the Property could indicatively include: Upgrading and enhancing of the operating hotel Galini and the hydrotherapy center (spa) Ippokratis Restoration of listed hotels Radion and Thronion and of listed hydrotherapy center Asklipios Development of a new 5* hotel Separation of the area intended to serve the Ippokratis visitors from the remaining complex, which will be oriented towards wellness tourism Total buildable area: Part IV: 35,005 sqm Part I: 3,277sqm * Part II: 2,125 sqm * * Subject to any limitations arising from the existing transport nodes General Info Prefecture Municipality Landplot Built area Development concept Fthiotida Molos - Ag. Konstantinos ,00 sqm c. 22,100 sqm Tourism-Leisure, Conf. Center Beachfront property Located at the foot of mountain Kallidromo, in proximity to areas of historical interest and natural beauty Three hotels, two hydrotherapy centers (spa) and supporting facilities are located inside the property. Two hotels and one spa are characterized as listed. Property currently leased and operating as one of the top wellness natural SPA resorts in Greece (only hotel Galini and spa Ippokratis are operating). IV V III I II ESCHADA area Property s boundaries

58 Thermal Springs Kyllini Thermal Spring Ilia Peloponnese Kyllini Thermal Spring comprises three (3) luxury resorts, one thalassotherapy center, one conference center and multiple supporting / leisure facilities, which are currently operating as a well-known hotel and spa complex of high level. General Info Prefecture Municipality Landplot Built area Development concept Ilia Andravida-Kyllini 1,380,000 sq.m. 77, sq.m. Tourism-Leisure, Spa Property situated in an area of special natural beauty and rich cultural heritage with the main archaeological site of Ancient Olympia in close proximity. Property leased by "LOUTRA KYLLINIS SA and currently operating as a hotel and spa complex of high level, comprising three (3) luxury resorts, one thalassotherapy center and one conference center. The leasing agreement of the property expires in HRADF promotes the longterm lease of the property. 100 km from the port of Patras Just 45 minutes from the airport of Araxos The port of Kyllini offers ferry connections with the Ionian islands

59 Thermal Springs Kythnos Thermal Spring Cyclades islands Potential development of the property could include upgrade and enhancement of existing facilities (maximum permissible built area amounts to approximately 5,700 sqm), ensuring to highlight their great architectural value. A complex with total built area c. 4,685 sqm comprising one hotel with 46 rooms (96 beds), a hydrotherapy center with 14 baths, 1 hydromassage and auxiliary spaces is located inside the property. It is said that the construction of the hydrotherapy center began between , motivated by the personal interest of Queen Amalia. Between the building was modified / supplemented based on plans of the architect Ernst Ziller, The latest modifications and additions are considered to have taken place during General Info Prefecture Cyclades The hot springs of Kythnos were among the first to have emerged Municipality Kythnos in Greece, including the spring o:aghioi Anargyroi, which is a saline hot spring and is situated in the hydrotherapy center, and Landplot 7,200 sqm the spring Kakavos which is situated 50 meters away from the first one. Built area 4,685 sqm A complex containing one hotel with 46 rooms (96 beds), a hydrotherapy center with 14 baths, 1 hydromassage and auxiliary Development concept Tourism- Leisure, Spa spaces is located inside the property. The property is currently partially operating.

60 Projects Completed Corporate & Infrastructure 1,608 million (shares & license) 490 million OPAP Lotteries State Lotteries License 385 million 42.5 million 2,150 million Digital Dividend Mutual Horse betting License 14 Regional Airports million 45 million Piraeus Port Authority (OLP) TRAINOSE Hellenic Railways

61 Projects Completed Real Estate 63.5 million 1.3 million 81 million 95 million Properties abroad Properties abroad (NY, Washington, Rome, Brussels (NY, Washington, etc) Rome, Brussels etc) Pelion Mansions International Broadcasting Center (IBC) Astir Vouliagmeni, Athens 14 million 2.6 million 23 million 1.9 million Paliouri, Chalkidiki Xenia, Skiathos Kassiopi, Corfu Modiano Market, Thessaloniki 9.6 million 22.5 million 16.9 million St Ioannis, Chalkidiki E-auctions Leto Hotel Mykonos

62 Projects completion imminent Real Estate 915 million 42.1 million Hellinikon (former Athens airport) Afantou, Rhodes

63 HELLENIC REPUBLIC ASSET DEVELOPMENT FUND Case Studies

64 Piraeus Port Authority (OLP) Concession agreement Transfer of 67% of shares Fiscal revenue 1 Shares 368.5m Concession fee 410m Dividends & capital gain 400m Social contributions & taxation Catalyst effects Increased container traffic Revival of the ship repair activity Other catalyst effects Investments Mandatory 350m Other 2 867m Multipliers/ Macro effects GDP +0.8% Employment new jobs Other macro aggregates IOBE Financial Impact Study for the privatization of Piraeus Port 1 Net fiscal revenue increase ( ) 511m. 2 Ten-year projection ( ) The total value of the investment amounts to 1.5bn and apart from the shares acquisition ( 368.5m) includes mandatory investments of 350m as well as expected revenue from the concession agreement ( 410m) and revenue from dividends (for the remaining 7% in HRADF), interests and new investment until the end of the concession period in 2052 ( 400m). Since 2009 COSCO has already invested more than 600m in expanding infrastructure and upgrading equipment of the Container Terminals piers II + III. The goal is for Piraeus Port to rank No1 among container ports in the Mediterranean, by 2019 (third in 2016). Investment will grow even further from the contractual obligations, and the activities running at the moment include: Revival of the ship repair zone the capacity of the new floating dock that will be acquired in February offers great potential and there have already been contacts with ship-owners. Cruise a great effort has been made to turn Piraeus into a cruise homeport. Extension of the existing infrastructure, to host 4 more berths (from 10 to 14), and a full upgrade of services. Cruise terminal construction in order to further support homeport. Act as a facilitator to develop the Chinese Cruise market. Logistics expand current capacity through connection with ex ODDY area and providing modern logistics services. Car terminal a plan to turn Piraeus into a hub for car imports is being realized, through the construction of an underground car terminal and two 5-storey parking stations. Real Estate the development of cruise will lead to the construction of at least one hotel and shopping mall. Railway the privatization of TRAINOSE and the modernization of the railway network will lead to further development of the Piraeus Port container business unit, through the increase of the daily rail routes supporting its operation. The port needs to be connected through the renewed railway network to the greater Balkan area and Central Europe, in order to become more competitive as a combined transportation hub.

65 Piraeus Port Authority (OLP) Concession agreement Transfer of 67% of shares Research by EY in collaboration with Mr Athanasios Pallis Associate Professor University of the Aegean Sample: 779 Shipping Executives 58% consider Piraeus as a shipping center offering the most attractive and holistic shipping environment for the operation of a ship management office. (Singapore-53%, Dubai-29%, London-24%) Piraeus Port has climbed to No38 among container ports worldwide ranking in 2016 (No43 in 2015) Lloyd s List annual Top 100 ports In a zero growth environment during 2016, OLP had a revenue increase of 12.9% and 8.7% increase in profitability; results that prove the potential of the investment and establish Piraeus port among the most profitable assets of COSCO group. Container traffic in Piraeus increased by 14.4% in 2016 (vs 2015) when global traffic increased by a mere 1.3% (Drewry Maritime Research). Piraeus ranked No1* among the terminals COSCO operates outside China. Q ( ) Q ( ) CHANGE % 49% predicted Piraeus as among the top shipping centers worldwide for the next decade, although shipping is moving to the East following the global economy. (Singapore-73%, Shanghai-33%) Turnover 52m 46.2m 12.6% Revenue 8.6m 1.8m 377.8% Net profit 4.4m 1.6m 175% * COSCO SHIPPING Ports Limited 2017 INTERIM RESULTS ANNOUNCEMENT 1Q Q2016 CHANGE TEU TEU %

66 Regional Ports Transferred to HRADF in 2012 Regional Ports in HRADF portfolio cumulatively doubled operating profits during 2016 Average annual profit increase for 9 out of 10 ports at 112% Profit increase 20% in 2015 Profit increase 40% in 2014 The dividends paid to the State, amount close to 5m in total Furthermore, there was a significant increase in turnover for 5 of these ports PORT AUTHORITY SALES 2016 ( mil.) CHANGE PROFITS 2016 ( mil.) CHANGE % VOLOS ,8% % ELEFSINA ,56% % IGOUMENITSA ,81% % HERAKLEION ,49% % General Car Port Container Cargo Dry Bulk Terminal Ferry Cruise Patra Heraklion Volos Igoumenitsa Corfu Elefsina Lavrion Rafina Kavala Alexandroupolis KAVALA % % CORFU ,92% % LAVRIO ,16% % PATRA* ,01% ,262% RAFINA ,15% % ALEXANDROUPOLI ,93% % *Change between is affected by entries of fixed assets for year 2015 when the Patras Port presented losses of -12,384,127 Source: Annual Financial Statements, IAS