Nick Demos Toronto Presentation Jan 26 no graphics

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Nick Demos President HIRI HCBT Conference Jan 26, 2005 of The Olympic Spirit the Greek Market

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Agenda ► Greek Decathlon ► Macroeconomic view ► Capital Markets ► Athens Stock Exchange ► Stock picking ► Concluding remarks

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Hellas DOING the Impossible

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Macro view The Country Sound fundamentals at macro level Growth prospects of the local market Infrastructure investments for 2004 Olympic Games Major inflows through EU funding BOT projects Increased awareness of the local market Visibility of individual stocks Good growth prospects for S-E Europe Companies Growth & Dividend Specific strong industries Greek global companies Management quality

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Solid market conditions ► Significant prospects for many economic sectors (banking, construction, refineries, cement, etc) ► Rising international investor interest ► Olympic games raise country's profile ► Positive post Olympic effects ► Continuous economic growth ■ structural funds ■ government’s investment spending ■ business capex ► Greek companies are market leaders in most of the Balkans ► Continuous expansion in the Balkans and SE Europe ► Looking for partners for the area of 100-150 million people

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GDP growth

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CPI & LT interest rates

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Greek Capital Market ► Qualitative and quantitative changes led to the upgrading of the Greek capital market, which was declared a developed- mature market by international investors, in May 2001 ► Certain economic developments at the background. Economic stability, economic growth, structural reforms ► Sound regulatory framework, transparency, disclosure, corporate governance ► Efforts for a more efficient market continue

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Athens Stock Exchange (ASE) Indices ► General Index ► Parallel market index ► Sectoral indices ► FTSE/ASE 20 ► FTSE/ASE Mid 40 ► FTSE/ASE Small 80 ► FTSE/ASE 140 ► FTSE Med 100

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GDP growth & Mkt cap

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Athens Stock Exchange (ASE)

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ASE: Liquidity Daily Value of Transactions € million

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Steps implemented to improve transparency, disclosure and investor protection ◙ Implementation of EU directives ◙ Convergence with European mature financial markets ◙ Corporate Governance (Law 3016/2002) ◙ International Accounting Standards as of 2004 ◙ Audit of financial statements ◙ External auditors ◙ Capital market ombudsman

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Needs improvement ► Voluntary (company) steps: ◊ Board of Directors structure (ie family) ◊ Duality (CEO & Chairman) ◊ Company Performance ◊ Managerial Accountability ◊ Public Shareholder Wealth Maximization ◊ Investment case promotion ◊ Dual listing

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Good prospects for ASE

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Stock Picking: Not so easy

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Value & Growth Criteria

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ASE Index vs Merit 20 Annual Return (1997-2003) +4% +21% +119% +2% +23% +30% +37%

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Invest with the pros…to avoid…

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Avoid easy & quick Methods & People

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Concluding remarks The Country ■ Significant infrastructure investments ■ Capital inflows through the 3rd Community Support Framework ■ Successful completion of the Olympic Games ■ Good growth prospects of the total area market ■ Improved corporate profits ■ Reduction of corporate taxes ASE Strong companies Improving financials/cost structure Leaders in the SE Europe Maximization of shareholders value