Greece -Daily Note - AXIA Ventures

1 AXIA Research Bloomberg <AXVA> Greece -Daily Note April 13, 2018 Headlines Athens General Index Macroeconomic News According to press, EuroWorking Group (EWG) officials told the Greek government that the draft growth strategy it presented for the day after Greece s exit from the adjustment program, needs to be more precise in specific areas and to clearly account for the associated costs on the budget. According to Kathimerini, in parallel to the EWG meeting yesterday, there was also a Washington Group meeting yesterday. Debt relief and reforms will be the focus in today s meeting between the Greek Finance Minister Euclid Tsakalotos and his German counterpart Olaf Scholz in Berlin. ELSTAT announced that the seasonally adjusted unemployment rate for January 2018 came to compared to the upward revised in January 2017 and in December 2017. According to ELSTAT, total building activity in Jan 18 on the basis of issued permits increased by y-o-y, by in volume terms while increased by in surface terms.

2 For the rolling 12-month period, building permits are up (+ surface, + volume). Additional Headlines ECB s Governing Council on April 11th lowered the ELA ceiling for Greek banks by EUR to EUR Aegean Airlines announced that traffic volumes in 1Q18 increased by 12%. Volumes were driven by a y-o-y increase in international passengers ( ), while domestic passengers increased by y-o-y ( ). The company importantly managed to improve its load factor by 440bps to stand at vs. in 1Q17. The first quarter is the historically seasonally weaker one for Aegean, with 1Q17 net losses amounting to EUR Given the recent data we would expect Aegean to manage to contain bottom line losses in 1Q18 and pave the way for a new record year. According to press INTRAKAT is interested in the revamp of the lignite unit in Amuntaio. The proposal will reportedly include apart for the environmental upgrade of the unit, investments in RES in the area and a joint operation of the unit will PPC including long term bilateral contracts with industries.

3 Recall that Mytilineos, Gek Terna and Copelouzos Group have submitted similar proposals. Amuntaio is one pf PPC s oldest lignite units and has a finite operating lifetime due to environmental restrictions. Given the rally in emission (CO2) prices over the previous months (currently at EUR 13-14/tn) we are cautious for any investment decision in the unit. Hellenic Petroleum announced that the Greek State following the lapse of the office term of the current BoD will propose as Chairman of the BoD and CEO Mr Efstathios Tsotsoros, replacing Mr Grigoris Stergioulis as CEO. According to Naftemporiki, Attica Department Stores (Folli Follie owns ) posted an y-o-y top line growth in Q1:18. Growth was driven by higher tourism (assisted also by the timing of the Easter this year), as tax-free sales grew by 33% y-o-y during the period. Please continue close daily % Ytd % Athens General Market Turnover (EURm) Market Cap (EURbn) Market Cap / GDP* *2016 FTSE ASE movers (last trading day) TOP Bank of Greece Grivalia Properties REIC ELLAKTOR SA Eurobank Ergasias Piraeus Bank BOTTOM Aegean Airlines Thessaloniki Water Supply & Sewerage Co.

4 Marfin Investment Group Holdings National Bank of Greece Alpha Bank FTSE ASE Ratios* FY2018 FY2019 FY2020 P/E EV/EBITDA P/BV EV/Sales Dividend yield *S&P Capital IQ Weekly calendar Friday, April 13: CPI/HICP (March), Import Price Index in Industry (Feb) Axia Ventures Group - 4 Vas. Sofias Ave., 10674 Athens Greece , Tel: +30 210 7414400, Fax: +30 210 7414449, Web: Please refer to the last page for disclosures and analyst certification MiFID II Research - Have you agreed to your access? Contact us now AXIA Research AXIA Research Page 2 Greek Economy EU asks for more precision on the growth plan / IMF states its views on the debt relief mechanism Fact: According to press, EuroWorking Group (EWG) officials told the Greek government that the draft growth strategy it presented for the day after Greece s exit from the adjustment program, needs to be more precise in specific areas and to clearly account for the associated costs on the budget.

5 According to Kathimerini, in parallel to the EWG meeting yesterday, there was also a Washington Group meeting yesterday. Debt relief and reforms will be the focus in today s meeting between the Greek Finance Minister Euclid Tsakalotos and his German counterpart Olaf Scholz in Berlin. Assessment: Regarding the growth strategy presented, Naftemporiki reports that all parties involved agree with the general aims of the plan but the institutions want to make sure that the Greek government does not enter into a spending mode after the country s exit from the program and that does not backtrack on the reforms. The growth plan is expected to be finalized in the coming days and the aim is to be approved at the April 27 Eurogroup. According to Kathimerini, the Washington Group meeting yesterday, convened to discuss Greek debt relief, was attended by ESM s Klaus Regling, officials from the EU, the ECB, Germany, France, Italy and Spain and also by the IMF s EU Director Poul Thomsen.

6 According to the report, Poul Thomsen noted the conditions under which the IMF could participate in the program. Specifically, according to the report, the IMF want the French mechanism (the debt relief mechanism suggested by the French government ) to be independent of any conditionalities and to apply automatically. Any conditionalities can be attached to other debt relief measures, the return of the ANFAs and SMP to Greece (a total of EUR4-5bn in the coming years). This view is shared by France, Italy and Spain but on the other hand, reportedly, Germany, Austria and The Netherlands feel that there have to be conditionalities since they are worried that the Greek government backtracks on reforms. Apart from the debt relief the IMF wants an agreement for the level of the primary surplus targets after 2023 (the IMF wants the target to be reduced to of GDP after 2022, while the EU suggests ).

7 Finally, there is still disagreement between the IMF and the EU over the interest rates of the debt (issue of new debt) that there will be applied in the projections over the medium term (IMF forecasts high interest rates). Further discussions will take place at the IMF s Spring meeting next week, while the intention is to have further progress in the April 27 Eurogroup. AXIA Research AXIA Research Page 3 Corporate & Macro Calendar Macros Event For the month of Release date Harmonized Index of Consumer Prices Mar'18 4/13/2018 Import Price Index in Industry Feb'18 4/13/2018 Motor Vehicle Circulation Licences Mar'18 4/13/2018 National Consumer Price Index Mar'18 4/13/2018 Turnover Index in Industry Feb'18 4/19/2018 Fiscal Data (1st notification) 2014-2017 4/23/2018 Material Costs Index for New Residential Buildings Mar'18 4/25/2018 Quarterly Non-Financial Accounts of General government 4Q:17 4/25/2018 Work Categories Price Indices and Construction Costs Indices for New Residential Buildings 1Q:18 4/25/2018 Quarterly Non-Financial Accounts of Institutional Sectors 4Q:17 4/27/2018 Producer Price Index in Industry Mar'18 4/30/2018 Statistics on International Trade in Goods broken down by invoicing currency FY.

8 17 4/30/2018 Turnover Index in Retail Trade Feb'18 4/30/2018 Corporates THRACE PLASTICS HOLDING AND COMMERCIAL (PLAT) Q4:17 results 4/19/2018 NBG PANGAEA (PANGAEA) GM 4/23/2018 BRIQ PROPERTIES REIC (BRIQ) Dividend Cut 4/24/2018 AUTOHELLAS (OTOEL) GM 4/25/2018 BRIQ PROPERTIES REIC (BRIQ) Dividend Holders 4/25/2018 GREEK ORGANISATION OF FOOTBALL PROGNOSTICS (OPAP) GM 4/25/2018 MERMEREN KOMBINAT PRILEP (MERKO) GM 4/25/2018 Folli Follie Q4:17 results 4/26/2018 BRIQ PROPERTIES REIC (BRIQ) Dividend Payment Date 4/30/2018 Disclosures General information This research report was prepared by AXIA Ventures Group Limited, a company incorporated under the laws of Cyprus (referred to herein, together with its subsidiary companies and affiliates, collectively, as AXIA ) which is authorised and regulated by the Cyprus Securities and Exchange Commission (authorisation number 086/07). AXIA is authorized to provide investment services in the United Kingdom, Cyprus, Greece and in Portugal pursuant to its permissions under the Markets in Financial Instruments Directive and may also provide similar services in other countries, inside or outside of the European Union, subject to the applicable provisions.

9 AXIA Ventures Group Limited is not a registered broker-dealer in the United States ( ), and, therefore, is not subject to rules regarding the preparation of research reports and the independence of research analysts. In the , this research report is intended solely for persons who meet the definition of major institutional investors in Rule 15a-6 under the Securities and Exchange Act, as amended, or persons listed under Rule 15a-6(4)) and is meant to be disseminated only through Axia Capital Markets LLC , a wholly owned subsidiary of AXIA Ventures Group Limited and associated US registered broker-dealer in accordance with Rule 15a-6 of the US Securities and Exchange Act. Content of the report The persons in charge of the preparation of this report, the names of whom are disclosed below, certify that the views and opinions expressed on the subject security, issuer, companies or businesses covered by this research report (each a Subject Company and, collectively, the Subject Companies ) are their personal opinions and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendations or views contained in this research report.

10 Whilst all substantial sources of information for the research are indicated in this report, including, without limitation, bases of valuation applied to any security or derivative security, such information has not been disclosed to the Subject Companies for their comments and no such information is hereby certified. All information contained herein is subject to change at any time without notice. No member of AXIA has an obligation to update, modify or amend this research report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on the Subject Company is withdrawn. Further, past performance is not indicative of future results. Persons responsible for this report: (Analyst) Argyrios Gkonis, (Head of Research) Constantinos Zouzoulas Key Definitions - AXIA Research 12-month rating* Buy The stock to generate total return** of and above 10% within the next 12-months Neutral The stock to generate total return**between -10% and 10% within the next 12-months Sell The stock to generate total return** of and below -10% within the next 12 months Under Review Stock s target price or rating is subject to possible change Restricted Applicable Laws / Regulation and AXIA Ventures Group Limited policies might restrict certain types of communication and investment recommendations Not Rated There is no rating for the company by AXIA Ventures Group Limited * Exceptions to the bands may be granted by the Investment Review Committee of AXIA taking into account specific characteristics of the Subject Company **Total return.