P.R.: Publication announcement of the Strategic Plan of Hellenic Corporation of Assets and Participations S.A.

The Hellenic Corporation of Assets and Participations S.A. publishes the Strategic Plan for the exploitation of its assets.

The current portfolio of Hellenic Corporation of Assets and Participations includes three companies as ‘’Direct Subsidiaries’’, namely the Hellenic Financial Stability Fund (“HFSF”), the Hellenic Republic Asset Development Fund (“HRADF”) and the Public Property Company (‘’ETAD”), as well as the “Other Subsidiaries”, which are the participations of the State in public enterprises, including Public Power Corporation S.A. (PPC), Athens Water Supply and Sewerage Company S.A. (EYDAP), Thessaloniki Water Supply and Sewerage Company S.A. (EYATH), Hellenic Post S.A. (ELTA), Athens Urban Transportation Organisation (OASA) (and its 100% subsidiaries, Road Transport Services S.A. and Urban Rail Transport S.A.), Central Markets and Fisheries Organisation S.A., Thessaloniki Central Market S.A. (KATH), Hellenic Saltworks S.A., Corinth Canal Co. S.A. (AEDIK) and Thessaloniki International Fair – HELEXPO S.A. Moreover, the Hellenic Corporation of Assets and Participations is a minority shareholder of the companies ETVA – Industrial Areas S.A., Athens International Airport S.A. (AIA) and Folli Follie S.A. Finally, the Olympic Athletic Centre of Athens (OAKA) will be transferred to HCAP, after its transformation into a capital company.

The Strategic Plan, which was prepared on the basis of the Strategic Guidelines of the Minister of Finance as the Sole Shareholder, includes the overall strategic approach, along with the objectives and priorities towards better management and exploitation of the portfolio of assets and participations of the State, which have been transferred to Hellenic Corporation of Assets and Participations.

Τhe Strategic Plan is a key instrument for the Hellenic Corporation of Assets and Participations in order to achieve its mission, which is to safeguard and maximize the value of the public assets and to contribute to the embedment of macroeconomic and social stability conditions.

It has a strong focus on Corporate Governance principles to ensure the greatest possible transparency and accountability and also sets the necessary reporting framework and the procedures of performance monitoring of the subsidiaries and of disclosure of all relevant information.

The Strategic Plan shall guide the preparation or update of the Business Plans of its subsidiaries, and in particular, of the public enterprises, the responsibility of which remains with their management. The HFSF, the companies where HCAP is a minority shareholder, as well as the HRADF, in relation to the assets included in its Asset Development Plan, are excluded from the submission of business plans.

Regarding Public Property Company (“ETAD”), which has been included into the portfolio of HCAP as a direct subsidiary, the Strategic Plan provides for the establishment of ETAD as the main institutional pillar for the management of public properties, as well as the acceleration of the registration, maturation and exploitation of the portfolio and the increase of revenue and overall performance of the company.

Regarding HRADF, the Strategic Plan foresees reorganization initiatives and targets for better management of the Asset Development Plan, which is executed by HRADF, as well as initiatives to update or supplement the internal regulation of the company, aiming at transparency, conflict of interest prevention and optimal co-operation with the public administration, where required.

The Strategic Plan also analyzes the current status of the enterprises included in the portfolio of the Hellenic Corporation of Assets and Participations, the respective market conditions as well as the short and medium-term opportunities and challenges that they are facing. It will be periodically updated, so that remains in line with the conditions which affect the economy and the respective sectors in which the enterprises operate.

The portfolio of HCAP includes public enterprises that operate in key sectors of the national economy (energy, water supply and sewerage, infrastructures, transport, services, etc.) and thus have a great impact on investment and consumption decisions of the private sector as well as affect critical economic factors. The Hellenic Corporation of Assets and Participations seeks to become a strong model of modern corporate governance for the benefit of the public interest, with the ultimate goal of increasing domestic added value, sustainable employment and corporate culture transformation.

The Coordination Mechanism is also described in the Strategic Plan, which defines the relations between the State, HCAP and the Public Enterprises, and in particular the procedures regarding: a) the formulation of the Mandate of each Public Enterprise; b) the preparation of Performance Agreements and c) the drafting of the Statement of Commitments for each Public Enterprise in relation to certain quantitative and qualitative targets.

The Hellenic Corporation of Assets and Participations S.A. prepared the present Strategic Plan, taking into account modern management practices, so that, through the cooperation, target setting and combined effort with the senior management and employees of its subsidiaries, the companies in its portfolio will be able in the future to provide in a tangible and efficient manner important benefits, and in particular:

For the Greek State

by improving the economic performance of the enterprises,

by increasing the dividend yield and other direct and indirect income,

by reducing the deficits, where these exist

by activating any idle, for many years, assets.

For the Greek economy

by improving the efficiency and competitiveness of its direct and other subsidiaries,

through the upgrade and expansion of networks and infrastructures and the introduction of new technologies and innovative systems,

through the exploitation of synergies between different sectors of the economy,

through investments of HCAP and its portfolio companies.

For the citizens

by providing improved and modern services and goods at competitive costs, and in the light of the country’s social and territorial cohesion, providing services throughout the country,

through transparency and social accountability in their management.

For the enterprises and their employees

by improving operational efficiency and effectiveness,

by optimizing their capital structure and accessing alternative sources of funding,

by ensuring their financial viability and employment,

by investing in training and development of human capital, which are of major importance for the future development of the enterprises.

Regarding the submission of the Strategic Plan, the CEO of Hellenic Corporation of Assets and Participations, Ms. Rania Ekaterinari, stated: “Our country is called upon to create a modern and sustainable economic growth and corporate governance model for the exploitation of its national wealth and its comparative advantages. The Strategic Plan serves this goal and contributes to the effort in order for Greece to make the leap forward. We are well aware of the country’s potential. We have also identified the strengths of each company, the challenges they face and the weaknesses that have accumulated over the years, but also the opportunities that can be exploited in favor of the society and the economy. For these reasons, the Strategic Plan is the first important milestone and represents a solid basis for the organized and with realistic manner operation of the Public Enterprises. We believe in our mission and we know that we must work hard and methodically to meet the challenge of change. In the first year of its operation, the Hellenic Corporation of Assets and Participations S.A. completed significant work. In the coming months, in collaboration with the senior management of our subsidiaries and having set the foundations through the Strategic Plan, we believe that we will achieve tangible and measurable benefits for the Greek State, the national economy, the enterprises themselves and the Greek citizen.”

Note : The Strategic Plan of Hellenic Corporation of Assets and Participations is posted on the Corporation’s website www.hcap.gr