Presentation Transcript
Slide1:
Nick Demos
President HIRI
HCBT Conference Jan 26, 2005
of
The Olympic Spirit
the Greek Market
Slide2: Agenda â–º Greek Decathlon
â–º Macroeconomic view
â–º Capital Markets
â–º Athens Stock Exchange
â–º Stock picking
â–º Concluding remarks
Slide3: Hellas DOING the Impossible
Slide4: 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
Slide5: Solid market conditions â–º Significant prospects for many economic sectors
(banking, construction, refineries, cement, etc)
â–º Rising international investor interest
â–º Olympic games raise country's profile
â–º Positive post Olympic effects
â–º Continuous economic growth
â– structural funds
■government’s investment spending
â– business capex
â–º Greek companies are market leaders in most of the Balkans
â–º Continuous expansion in the Balkans and SE Europe
â–º Looking for partners for the area of 100-150 million people
Slide6: GDP growth
Slide7: CPI & LT interest rates
Slide8: Greek Capital Market â–º 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
â–º Certain economic developments at the background. Economic stability, economic growth, structural reforms
â–º Sound regulatory framework, transparency, disclosure, corporate governance
â–º Efforts for a more efficient market continue
Slide9: Athens Stock Exchange (ASE) Indices â–º General Index
â–º Parallel market index
â–º Sectoral indices
â–º FTSE/ASE 20
â–º FTSE/ASE Mid 40
â–º FTSE/ASE Small 80
â–º FTSE/ASE 140
â–º FTSE Med 100
Slide10: GDP growth & Mkt cap
Slide11: Athens Stock Exchange (ASE)
Slide12: ASE: Liquidity Daily Value of Transactions € million
Slide13: Steps implemented to improve transparency, disclosure and investor protection â—™ Implementation of EU directives
â—™ Convergence with European mature financial markets
â—™ Corporate Governance (Law 3016/2002)
â—™ International Accounting Standards as of 2004
â—™ Audit of financial statements
â—™ External auditors
â—™ Capital market ombudsman
Slide14: Needs improvement â–º Voluntary (company) steps:
â—Š Board of Directors structure (ie family)
â—Š Duality (CEO & Chairman)
â—Š Company Performance
â—Š Managerial Accountability
â—Š Public Shareholder Wealth Maximization
â—Š Investment case promotion
â—Š Dual listing
Slide15: Good prospects for ASE
Slide16: Stock Picking: Not so easy
Slide17: Value & Growth Criteria
Slide18: ASE Index vs Merit 20 Annual Return (1997-2003) +4% +21% +119% +2% +23% +30% +37%
Slide19: Invest with the pros…to avoid…
Slide20: Avoid easy & quick Methods & People
Slide21: Concluding remarks The Country
â– Significant infrastructure investments
â– Capital inflows through the 3rd Community Support Framework
â– Successful completion of the Olympic Games
â– Good growth prospects of the total area market
â– Improved corporate profits
â– Reduction of corporate taxes ASE
Strong companies
Improving financials/cost structure
Leaders in the SE Europe
Maximization of shareholders value