Greece presentation november_2011


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TBLI CONFERENCE™ EUROPE 2011- London - United Kingdom

TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

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  • The Greek government is implementing an Economic and financial Program which brings about both structural and fiscal reformsBeing in a tight spot, Greece relies on outside assistance for successfully implementing its fiscal reform. The IMF and the EU have a set schedule of loan payouts toward the Greek government, committing them up to May 2013. By that time, Greece will have pulled out of the tight spot and will be able to raise its on financing.Obviously, in order for Greece to receive the loan payouts, it has committed to achieving a set of fiscal targets, that will enable it to create a haven for growth.
  • I believe that there is one key reason why so many of you are here today and that reason can be summed up in one word: opportunity.All of us here recognize that, despite the crisis that exists in Greece, in the European Union and even in the United States, despite the many challenges that we all face, in reducing deficits, controlling spending, and being more effective in governance, today is a time of great opportunity: a time when energy markets are being revolutionized; when transport is entering a new phase; when green technologies and sustainable practices are becoming part of water use, agricultural production, and construction.  Today, Greece is faced with serious challenges: to balance its accounting books, to become efficient in revenue management, and to create an economy and an environment that is favorable tosustainablegrowth andtosmartgrowth. Greece has always found a way to turn disadvantages into advantages and threats into opportunities. Today, ladies and gentlemen, Greece is undergoing a profound change and this change is implemented through major reforms.
  • Greece is one of the safest countries in the Mediterranean region. Its strategic geopolitical position and stable economic and political environment are key reasons for investors who wish to expand their business activities.  When we think of Greece, we think of the sea: Greece has over 5.000 islands and a coastline of about 15.000klm.When we think of Greece, we think of the sun: Greece has an average of 300 sunshine days per year, having its maximum in July with an average of 14 hours of sunshine per day. Greece boasts the 12th position in global tourism revenue and the 16th position in tourist arrivals globally. Greece offers the fundamental building blocks for running value adding tourism projects: A unique past, a country full of archaeological treasures and 15,000 km of sunbathed coastline.Besides spectacular landscapes with pristine beaches, Greece also offers iconic mountains, and its temperate climate make it ideal for year-round tourism. International investors will be pleased to find in Greece the required infrastructure to support their projects: The 2004 Olympic Games proved to be a catalyst for widespread infrastructure development throughout the country.Finally, Greece is one of the safest countries in the Mediterranean region with a hospitable population.Obvious investor choices within the Tourism sector would include the operation integrated resorts, marinas, golf courses and conference centers, as well as spas and thalassotherapy centers.
  • And because Greece is amongst the countries that respond perfectly in multicultural environment s, our main aim is to achieve top services by delivering information through a dynamic language site. Already operating in English, German, French, Chinese, and in a few days available in Arabic..
  • Greece presentation november_2011

    1. 1. Invest in a New Future. Opportunities out of Crisis Demetra PragalouInvestment Promotion Manager TBLI Conference Europe November 2011 0
    2. 2. Agenda1. Reforms to spur investments and growth2. Greece’s competitive advantage3. Growth sector opportunities4. Invest in Greece Agency’s service offering 1
    3. 3. 1. Reforms to spur investments and growth 2
    4. 4. Greece is decisively tackling the challenge of fiscal consolidation • The Greek government is implementing an Economic and Financial Program that represents the governments firm response to the current challenges that the country faces • The Program is supported with a €110bn financing package provided by the EU, the ECB and the IMF Greece is taking • The Program includes both structural and fiscal reforms that will help Greece overcome structural deficiencies that persisted in public fiscal concrete steps to management, the economy and the financial sectorconfront the recent • The Government’s economic policy is focused on Creating a new growthfiscal consolidation model based on export, competitiveness and private investment to drive jobs, growth and viable external accounts • On the 26th of October 2011 the informal EURO SUMMIT Meeting decided the conclusion of a new EU-IMF multiannual program for Greece that will be In 2010 Greece achieved ready by the end of the year. Together with this program a Private Sector the largest fiscal Involvement (PSI) should secure the decline of the Greek debt to GDP ratio consolidation in the Eurozone by undertaking with 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. 5. Greece is at the forefront of positive changesCrisis Opportunity ReformsTrade Investments 4
    6. 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 spending implementation of the EU- to dramatically accelerate big • Modernizing of State enterprises funded NSRF 2007-2013 investments projects has been • Enhancing Tax administration• Concessions of state owned real voted by the parliament •Opening up access to estate assets • A new Investment Incentives services, trades, and professions.• New Highways under Law covering almost all business •Strengthening of the Banking and construction sectors insurance supervision.• Urban regeneration programs • A new bill to reduce all •New framework for fiscal supported by EIB procedures of business start ups monitoring• New regional airports to be in just one step •New framework for supporting concessed • A new framework to promote tourism and commerce• Ambitious privatization program investments in the Renewable •Program to support exports under way to reach €50bn by Energy Sector (RES) has already •Acceleration of the Land Registry 2015 been passed by the Parliament •Liberization 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 marine banking system cruises 5
    7. 7. Financial analysts expect several sectors to grow significantly in the next few years Room for investment: 1-5 year horizon Infrastructure Property development Airport development Toll roads & concessions Tourism Marine/port developments REIT& REIC formation & flotation Existing & New airports Gaming sector / Casinos Estimated investments €10bn Estimated investments €5bn Energy projects Water & Waste Capacity replacement (generation) Water resources management New business (RES) Waste management Transmission/Interconnection investments Utility companies Natural gas Estimated investments €20bn Estimated investments €2bn Total estimated investments of €37bnSource: EFG Eurobank, 2010 6
    8. 8. Investments materialized could contribute up to 1.5% of GDP growth• A review of only some key sectors, in which Greece holds a competitive advantage, suggests additional growth in the order of 1½ percentage points annually to Greek GDP growth in the medium term Source: National Bank of Greece ”Greece presents a tremendous opportunity for investments," said European Commission Task Force chief Horst Reichenbach during a press conference held at the Commissions offices in Athens on the 15th of September 2011 7
    9. 9. Deals in 2011Qatar 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 sectorQatar Investment Authority agreed to become a major shareholder in the new private banking group–one of the 30 biggest in Eurozone- following the merge between Alpha Bank and EurobankU.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 resortAquis Hotels and Resorts buys two Hotels in CreteCzech investment group PPF and ICT Group, the vehicle of Russian investor Alexander Nesis, havebought minority stakes in Greeces fourth-largest lender Piraeus BankLinnaeus Fund acquires stakes in Greek aquaculture companies Tenders by the Greek government for investments in geothermal energy, solar parks and marinas attracted foreign companies in 2011 8
    10. 10. 2. Greece’s competitive advantage 9
    11. 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 SEE markets with: - Over $1,000bn of GDP - Over 140 million people • Strong business and cultural ties with the region • Network of over 4,000 Greek companies present • More than 3,000 Greek branches of banks covering over 20% of the banking market in SE Europe • Greek companies in top 3 investors in every market 10
    12. 12. …which makes it ideal for selecting it as a regional hub for the EMEA area Entry point for EU, SEE, ME, NA sales Regional Europe headquarters Business operations Middle East Africa Back office support Service centerGreece can be the regional hub for strategic growth in SE Europe, Africa and the Middle East 11
    13. 13. Why Greece?: 2. The Greek economy supports FDI World Bank’s country rating as FDI destination OECD’s FDI Restrictiveness IndexSector Group Greece’s Score Global average The less the better: FDI Index Scores by CountryHealth care & waste (closed = 1, open = 0) 100 96.0managementConstruction, tourism & 100 98.1retailLight manufacturing 100 96.6Telecom 100 88.0Mining, oil & gas 100 92.0Agriculture & forestry 100 95.9Banking 100 91.0Insurance 100 91.2Media 100 68.0Source: Investing across boarders, Worldbank, 2010 Source: OECD 2010 8 12
    14. 14. Why Greece?: 3a. Supportive investment climate PPP- Privatisation Plan New framework for RES Simplification of theLifting of cabotage establishment ofin marine cruises new companies New investment incentives law Fast Track Law 13
    15. 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 million and, concurrently, the investment must create at least 3 RenewableCase #2 200 new jobs Energy projects have already • At least €3 million are invested every three years in beenCase #3 advanced technologies and innovation projects approved, with a total budget of • The investment creates at least 250 new jobs 1, 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 in actions that create added value for Greece in terms ofCase #6 education and R&D 14
    16. 16. Why Greece?: 4.Top talent at competitive rates Top ten countries in ICT Development Average weekly work hours of skilled Index skills personnel 9.94 41 40 40 40 9.78 39 38 9.63 37 37 9.36 35 9.26 9.26 9.2 9.18 9.17 9.14 Source: ITU, 2009 Source: UBS Europe – Middle East North America Asia Greece 88 75 77 65 62 59 59 60 57Gross annual 55 40 39 50 42 35 34 income of 30 29 engineers(USD thous.) Source: UBS; Prices and Earnings report 2009 15
    17. 17. Why Greece?: 5. Attractive investment opportunitiesAmbitiousPrivatisation ProgramTourismRenewable EnergyFood and BeverageICT – Life SciencesEnvironmentalManagement 16
    18. 18. 3. Growth sector opportunities 17
    19. 19. Compelling public and PPP projects and Privatizations Infrastructure projects Privatization Program An 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 Finance 18
    20. 20. Privatization program with a flexible approach and transparent processes A range of sectors with high potential Procedures Infrastructure: Airports, Ports, Motorways Concession AgreementsEnergy: Public Power Corporation, PublicGas Corporation, Hellenic Petroleum SaleTelecommunications: HellenicTelecommunication Organisation, Frequency Strategic InvestorsSpectrumGaming: OPAP, Casino of Parnitha, Hellenic Equity through the Stock ExchangeHorse Racing Organization, State Lottery, e-gamingReal EstateOther Holdings:LARCO, TRAINOSE, Hellenic DefenseSystems, Hellenic Vehicle Industry S.A Source: Ministry of Finance 19
    21. 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.A 20
    22. 22. Privatization program with a flexible approach and transparent processes Advisors selected for 14 projects:OPAP: Deutsche Bank AG London Branch and National Bank of GreeceHellenic Petroleum: UBS Limited and NOMURA International PLC.LARCO: HSBC Bank PLC and PriceWaterhouseCoopers Business SolutionsParnitha 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 GreeceHellenic 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 EquitiesNational Horse Racing Organisation: Commercial Bank of Greece and Credit Agricole CIB.Greek Vehicles Company: Societe GeneraleFormer Athens Airport (Helliniko): Citigroup Global Markets Limited, PiraeusBank, Βarcelona Strategical Urban Systems.Public Gas Company: UBS, Rothschild and Alpha Bank 21
    23. 23. Investment opportunities: Tourism …with unique competitive advantages: 17th in tourist arrivals globally A unique past, a country full of archaeological treasures. (2010) Spectacular landscapes with pristine beaches and iconic mountains (More than 6,000 islands and islets, 15,000 km of coastline) An established Mild climate ideal for year-round tourism tourism  Healthy and tasteful gastronomy in the country that destination… Tourism represents gave birth to symposiums and the Epicurean philosophers. 21st in global 15.3% of tourism National GDPand almost 18% revenue Strong Tourism Infrastructureof employment (2010) (2010) One of the safest countries in the Mediterranean region with a hospitable population. Always among top tourism destinations of the world (Greek islands received first award in 2011 Condé Nast Traveler) 22
    24. 24. Tourism: Facts & Priorities Facts 2010 Priorities- Existing hotel infrastructure: 9,732 Hotel Units Increase receipts per tourist providing for 763,407 Hotel beds in total Attract tourists from new markets- Hotel Concentration:66% of hotel beds in Crete, Macedonia and Tackle seasonalityDodekanese Exploit 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 residences Take advantage of the number-Low average per capita tourism expenditure: €640 of islands, promoting sea tourism- Seasonality: Exploiting synergies between55% of arrivals from July to September tourism and culture and between tourism and medical sector 23
    25. 25. Investment opportunities: Tourism subsectors Marinas Golf courses Health tourismIntegrated Resorts Wellness & spas Athletic tourism Conference Tourism Eco tourism 24
    26. 26. Renewable Energy Sources: An untapped potential• Bound by EU regulations and Kyoto Protocol agreements € 20 Billions Euros Investment• National target for RES at 20% of energy production by 2020 210,000 new Jobs• Increased domestic demand for electrical energy, to surpass 80,000 GWh in 2020 from about 73,000 GWh in Projects with 2010 strong cash flows and attractive• High feed-in tariffs through 20 – year PPA (power Returns on purchase agreement) Investment  4th in EU for Solar 9th in EU for Wind• Ideal conditions for wind and solar energy• Decrease of RES production cost, attractive investment incentives 25
    27. 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 MW generation for the year 2020 in market shares & numerical targets should come from RES • Targets set by the Committee for the National Energy Strategy • The infrastructure cost to • Targets are binding for the Greek government meet targets represents 1/3 • Wind energy is expected to dominate electricity generation from RES of the penalty to be paid by Greeks in case the targets 7,500 are not met National 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% Biomass– 2,200 Geothermal Biogas 1.297,7 0,24% 0.53% 120 198,3 250 350 0 0 44 Wind 24,09% Hydro Geothermal PV Concetraded Wind Biomass Solar Conventional Concetrated Capacity 2010 Target 2020 66,90% Solar 0.73% Source: YPEKA, National Renewable Energy Action PlanSource: Committee for the National Energy Strategy 26
    28. 28. Renewable Energy Sources:Greece has various opportunities to offer • Greenfield investments in wind farms Wind • Cooperation with existing firms • Light manufacturing • Greenfield investments in PV & SolarPV & Solar Thermal Thermal parks • Light manufacturing • Greenfield investments in geothermal Geothermal power plants • Greenfield investments in Biofuel plants Biofuels • Biorefineries • Greenfield investments in small hydro Hydro plants 27
    29. 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 waste Country 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 packaging waste by 2011 which includes recycling at • Construction of suitable transfer station least 55% networks and recycling centres Current Status: 50% • Selective collection at source and further decrease biodegradable waste , that is sent to recycling of municipal waste landfill 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 desalination Current Status: 461,079 tons (42% target • Wastewater and sewage treatment coverage) 28
    30. 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 waste 29
    31. 31. ICT and Life Sciences: Greece innovates Intense R&D activity… …generates multiple investment opportunities Thessaloniki • Software • Drug development development Larissa • Microchip and • Medical & MEMS design diagnostic devices Patras Athens • R&D lab • Clinical trialsClusters: • Regional support Iraklio center ICT Life Sciences 30
    32. 32. ICT and Life Sciences: Strong growth in recent years The Greek ICT sector displays strong growth• Strong uptake of new technologies telecoms services s/w h/w 16,828 16,916 • Booming broadband penetration 14,181 • Worldwide leaders in mobile 12,261 penetration 10,521 Amounts in $ bn• Strategic geographical position and established company network in the region 2005 2006 2007 2008 2009 Source: Source: Federation of Greek ICT Enterprises; Digital Planet, Global Insight 2010 World leaders in mobile penetration (% of pop.) Broadband penetration (mn lines) 173% 171% 148% 148% 145% 144% 141% 139% 134% 131% 2,320 2,253 2,154 2,105 2,039 1,917 1,794 1,753 1,629 1,507 1,311 1,246 1,125 1,017 904 761 623 488 370 297 225 160 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Source: Pyramid Research, OECD, Economist Intelligence Unit Source: Regulatory Authority World leaders in mobile penetration 57% CAGR in the last 3 years 31
    33. 33. Food & Beverage: A natural growth industry Niche Markets 24% of Sales • Honey and nut based snacks • Pasta products • Marmalades and pickled goods • Ready made meals and frozen GDP food20% of Total • Seafood Exports • Chocolates and confectionery • Cheeses • Specialty herb mixes 5 – 6% 1,5% • Traditional spoon sweets • Liqueurs and fruit juices • Herbal beverage products 24% of • Organic products Employment Revenues > 2 bn € 32
    34. 34. 4. Invest in Greece Agency’s service offering 33
    35. 35. We provide full services, so you establish yourselves and expand in Greece1. Governmental Legal Entity2. Incorporation and operation since Assistance & 1996 Advice3. Business Units: • Investment Promotion Unit Aftercare • Investor Services Unit FAST TRACK Analysis • Strategic Investments Unit Support • Policy and Planning Unit • Finance and Administration Unit • Communication and Public Relations Unit Facilitation Invest in Greece provides support throughout the entire business cycle 34
    36. 36. Development of Investment Opportunities Portfolio Public Projects Private Projects• Promotion of mature public • Development of a portfolio of projects, in sectors where the mature private projects in many country has competitive sectors of the economy advantages. • More than 150 mature privately• Cooperation with the relevant owned projects in our projects Ministries and the local authorities portfolio. for finding projects which can • Customized promotion to foreign attract private investments. Investors 35
    37. 37. Invest in Greece’s web-site embraces the world 36
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