The International Investors’ View Of Risks and Opportunities in Greek Financial Assets

1. November, 2000 Materials for Presentation The International Investors’ View Of Risks and Opportunities in Greek Financial Assets

2. Overview • Greek Economy – An Overview • Macroeconomic Development and Indicators • Credit Ratings and Rating history of the Hellenic Republic • Credit Developments and Implications • Bond Markets • Equity Markets • Macro-economic risks • Addressing the Changing Market Environments

3. Greek Economy – Overview of a positive development • 1999E GPD US$ 128.9b. (2000E US$ 123.5bn.) • Real GDP Growth rate above EU average since 1996 – 3.5% in 1999 • Large public sector in the economy • Steady economic improvements in recent years • Improving public deficit and tightened monetary policy • On-going low inflation - average of 2.6% in 1999 • Privatisation for leading Government enterprises in progress • Convergence and integration in EMU well on track • Falling interest rates and improved credit profile Source: CIA World Fact book 2000

4. Greek Economy – Inflation Declined whilst Growth Increased Source: National Bank of Greece; CSFB Research

5. Greek Economy – Unemployment and Interest Rates Are Heading Down Source: National Bank of Greece; CSFB Research

6. Greek Economy – Deficit Control at Work Source: National Bank of Greece; CSFB Research

7. Moody’s Foreign Currency: A2 Local Currency: A2 Outlook: “STABLE” Standard & Poor’s Foreign Currency: A- Local Currency: A- Outlook: “POSITIVE” The Sovereign Credit Rating of Greece: Now Firmly Single-A Fitch Foreign Currency: A- Local Currency: A- Outlook: “STABLE”

8. Aaa / AAA Aa1 / AA+ Aa2 / AA Aa3 / AA- A1 / A+ A2 / A A3 / A- Baa1 / BBB+ Baa2 / BBB Baa3 / BBB- Ba1 / BB+ Ba2 / BB Sovereign Rating History – LT Foreign Currency Debt

9. Credit Spread: Hellenic Republic $ Bond (2008) – US$ Swap

10. Hellenic Republic – Credit Development • Country Risk has declined • Greek Government has gained credibility • Foreign currency credit “ceiling” has been upgraded to Aaa by Moody’s • Convergence to EMU criteria is well on track • Entry in Euro-zone likely to result in: • Monetary Stability • Low interest rates • Reduced exchange rate risk • Financial markets denominated in Euro’s • Better level-playing field with other European countries • For the international investor these macro-economic developments may relatively increase the attraction of Greek investments

11. Bond Issuance by sector US$ mil. Bond Issuance by rating Greek Issuers are well Established in the Eurobond Markets Source: Bondware

12. GRD bn. Equity Markets – Market Capitalisation • Correction and slow-down in 2000 • Volatility in the Greek equity market • World-wide volatility in equity markets • Volatility due to limited size and liquidity • Volatility due to significant concentration • Consolidation in Banking sector • Large caps and telecom performance has retained strong performance Data Source: National Bank of Greece

13. European Equity Indices 1998-2000 Equity Markets Source: Bloomberg. 02/01/1998=100

14. *15 Largest Companies by Market Capitalisation The Greek Stock Market – Concentration and Diversity • Main Sectors in the Economy: • Banks 27.7% • Telecom 12.6% • Metal industry 7.3%

15. Modernizing the Economy and Reducing Public Debt through Privatizations • “Privatisation Programme well ontrack”: • Increased market volume • Increased market liquidity

16. Macroeconomic Risks – Investors’ viewpoint • Tight Financial and Monetary Policy likely to continue • High level of public debt will remain a constraint for years to come • EMU convergence well on track – but still incomplete • Unemployment still a major challenge • Further Slowdown of EU growth • GDP growth slows down by 0.7% for each 1% reduction in EU growth • Current Account deficit to GDP increases and neutralises the devaluation effect • Increase in import prices • Sustained high oil price may adversely affect economy • EUR/USD exchange rate affects GRD price of oil and commodities • Inflation increases by 0.20pp for every 1% increase in import prices Data Source: National Bank of Greece

17. Addressing the Changing Market Environments • Move from EMI to MSCI in 2001 will impact the Greek business environment • Analytical focus will move from country base to sector base • Relevant peers will now be top performing worldwide corporates • Recommended approach for Greek companies: • New beginning in communicating with investor community • Increased transparency • Improved financial reporting • Adoption of IAS in addition to Greek GAAP • Improved Investor Relations capabilities • Communication • Corporate information readily available • > Value creation through analyst and investor “friendly” corporate structures and communication policies