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Annual Financial Report for the year ended December 31, 2021 
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1.  ESTABLISHMENT AND ACTIVITY OF THE COMPANY ............................................................................................................. 109 
2.  BASIS OF PRESENTATION OF FINANCIAL STATEMENTS… ...................................................................................................... 110 
3.  PRINCIPAL ACCOUNTING POLICIES ....................................................................................................................................... 113 
4.  PROPERTY, PLANT & EQUIPMENT ........................................................................................................................................ 125 
5.  RIGHT OF USE ASSETS – LEASE LIABILITIES ............................................................................................................................ 128 
6.  INVESTMENT PROPERTY ...................................................................................................................................................... 129 
7.  INTANGIBLE ASSETS ............................................................................................................................................................. 131 
8.  OTHER NON-CURRENT ASSETS ............................................................................................................................................. 132 
9.  INCOME TAX (CURRENT AND DEFERRED) ............................................................................................................................. 133 
10.  INVENTORIES ....................................................................................................................................................................... 135 
11.  TRADE AND OTHER RECEIVABLES ........................................................................................................................................ 135 
12.  CASH AND CASH EQUIVALENTS ........................................................................................................................................... 137 
13.  SHARE CAPITAL .................................................................................................................................................................... 137 
14.  RESERVES ............................................................................................................................................................................ 138 
15.  GOVERNMENT GRANTS ....................................................................................................................................................... 139 
16.  RESERVE FOR STAFF LEAVING INDEMNITIES ........................................................................................................................ 140 
17.  PROVISIONS ......................................................................................................................................................................... 141 
18.  LONG-TERM & SHORT TERM BORROWINGS ........................................................................................................................ 142 
19.  DIVIDENDS ........................................................................................................................................................................... 143 
20.  ACCRUED AND OTHER CURRENT LIABILITIES ....................................................................................................................... 144 
21.  DEFERRED INCOME ............................................................................................................................................................. 144 
22.  SEGMENT INFORMATION .................................................................................................................................................... 146 
23.  REVENUES ........................................................................................................................................................................... 148 
24.  ANALYSIS OF EXPENSES ....................................................................................................................................................... 149 
25.  OTHER OPERATING INCOME / EXPENSES ............................................................................................................................ 150 
26.  FINANCIAL  INCOME/EXPENSES ........................................................................................................................................... 151 
27.  DEPRECIATION AND AMORTISATION .................................................................................................................................. 151 
28.  PAYROLL AND EMPLOYEE RELATED COST ............................................................................................................................ 151 
29.  EARNINGS PER SHARE.......................................................................................................................................................... 153 
30.  COMMITMENTS AND CONTINGENT LIABILITIES .................................................................................................................. 153 
31.  RELATED PARTIES ................................................................................................................................................................ 155 
32.  FINANCIAL INSTRUMENTS ................................................................................................................................................... 157 
33.  SUBSEQUENT EVENTS.......................................................................................................................................................... 159 
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Page 3 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Statements of the Members of the Boards of Directors

(In accordance with article 4 par. 2 of L. 3556/2007)

The Board of Directors Members of the Company “Piraeus Port Authority Societé Anonyme” and trade

title “PPA S.A.” (hereinafter referred to as “Company” or as “PPA”) and the undersigned:

1. YU Zeng Gang , Chairman of the Board of Directors

2. ZHANG Anming, Chief Executive Officer (Acting)

3. LI JIN, Member of the Board of Directors

In our above-mentioned capacity and as specifically appointed by the Board of Directors of the

Company, we state and we assert that to the best of our knowledge:

(a) the financial statements of the societe anonyme Company under the name “Piraeus Port Authority

Societe Anonyme” and trade title “PPA S.A.” for the period from January 1, 2021 to December 31,

2021, which were compiled according to the applicable International Financial Reporting Standards

as adopted by the E.U., provide a true and fair view of the assets and the liabilities, the equity and

the results of the period of the Company, according to that stated in paragraphs 3 to 5 of article 4

of the L.3556/2007 and the relevant executive Decisions of the Board of Directors of the Capital

Market Commission.

(b) the annual Report of the Company’s Board of Directors provide a true and fair view of the evolution,

the achievements and the financial position of the Company, including the description of the main

risks and uncertainties it faces and relevant information that is required according to paragraphs 6

to 8 of article 4 of the L. 3556/2007, and the relevant executive Decisions of the Board of Directors

of the Capital Market Commission.

Athens, March 14, 2022

YU ZENG GANG

ZHANG ANMING

LI JIN

Chairman of the

Chief Executive Officer (Acting)

Member of the

Board of Directors

Passport No ΡΕ1895434

Passport No PE2110665

Passport No PE1614410

Page 4 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

“

”

“

”

from 1st January 2021 until 31st December 2021

(In accordance with article 5 par. 6 of L. 3556/2007)

1. Development & performance of the Company

Α. Brief Description of Business

The Port of Piraeus (Piraeus Port) is the largest port in Greece, with a coast line spanning over twenty-

four kilometers in length and expanding over an aggregate area exceeding five million square meters.

The geographic location of the Piraeus Port makes it a vital transportation, trade and supply, tourism

and communication hub connecting the Greek islands with the mainland, as well as being an

international centre of marine tourism and the commercial passage of cargos. The position of the

Piraeus Port is conducive to its operation both as a commercial and touristic gate of Greece and as

transshipment hub for the Balkans and Black Sea countries.

The Port of Piraeus is situated at the intersection of sea routes linking the Mediterranean with Northern

Europe and its geographic position (south of the 38

parallel) enables major liner ships to access it

without significant deviation from the Far East trade routes. It hosts a complex and unique variety of

port activities, including Cruise activity, Coastal (ferry/passenger) activity, Container and Car and other

General Cargo activities, Ship Repair activities, as well as Free Zone operations under applicable tax and

customs legislation in the area currently designated pursuant to Decisions D18/7.8.2013 (Government

Gazette B’ 2038/22.8.2013) and D18/9.9.2013 (Government Gazette B’ 2330/17.9.2013) of the Minister

of Finance (Piraeus Free Zone).

Further to the amendment and codification on 24/06/2016 in a single text of the Concession Agreement

dated 13/02/2002 between the Hellenic Republic and Piraeus Port Authority S.A., which was ratified by

Law 4404/2016 (Government Gazette A 126/8.7.2016) (hereinafter CA), the Company retains the

exclusive right to use and exploit the land, buildings and infrastructure that are included in the Piraeus

Port until 13/02/2052.

Page 5 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

B. Objectives, Core Corporate Values and Key Strategies

▪ b.1. Objectives

o The implementation of the Investment Plan that multiplies benefits for the local and national

economy.

Under Article 7 of the Concession Aggreement between PPA S.A. and the Hellenic Republic, the

Company is required to implement, within the First Investment Period, mandatory investments,

summed with a total reference cost of 293.8 million Euros, which concern the following:

- Passenger Port Expansion (Southern Zone Phase A)

- Repair of Pier I RMG yard area and cranes

- Conversion of Pentagonal Warehouse into Cruise Passenger Terminal

- Underground Linkage of Car Terminal with Former ODDY Area

- Port Infrastructure Improvement and Maintenance

- Supply of Equipment

- Dredging of Central Port

- Construction of New Oil Pier

- Car Terminal Expansion (Herakleous)

- Improvement Infrastructure of Ship Repair Zone

o The further highlighting and reinforcement of Piraeus position as a hub for passenger and freight

transportation.

The Company's declared goal is the further highlighting of Piraeus Port strategic advantages and

strengthening its position in the port industry.

The role of the Piraeus Port is not only consolidated but further upgraded through the Investment Plan

of PPA S.A., the customer-oriented approaches and the marketing policy, while the outward

development and the international collaborations were enhanced.

In the above context, the Company has strengthened its presence in national and international

organizations relating to the port industry (detailed reference follows in paragraph b.3, titled “outward

looking’’).

▪ b.2. Core Corporate Values

The basic values that constitute the central core and driving forces of the Company are related to:

a. Preservation and promotion of the general corporate interest and the interests of the

Shareholders.

The primary concern and duty of the Company is the continuous pursuit of enhancing the Company's

long-term financial value and the protection of the general corporate interest and the interests of the

Shareholders.

Page 6 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

b. Continuous improvement

The ultimate aim is the continuous improvement of the port services provided to the port users, at

levels comparable to the best practices adopted by ports of international scope. The Company has as its

primary concern to build strong and long-lasting relationships with its customers, and to provide

excellent service, especially in terms of quality, reliability and delivery time.

c. Health and Safety

The value of human life is the primary Company value, by creating conditions for a safe working

environment.

Particular emphasis is placed on the continuous improvement of the systems and procedures related to

environment, health and safety in the workplace, through full compliance with relevant legislations.

d. Evolution of employees

The Company recognizes that the cornerstone for the achievement of its goals is the best utilization of

its human resources. By understanding and respecting the needs of the personnel and by using

meritocratic criteria, the Company ensures the continuous training and development of the employees,

taking into account the needs of the Company and the protection of the corporate interests.

e. Social Responsibility

Corporate Social Responsibility is a daily practice of how the Company operates. Creating relationships

of trust and cooperation with local communities is a priority of the Company's Management, which aims

at setting up a sustainable development model with the emphasis on environmental protection, poverty

aid, supporting education, sport and other charity causes within the capability of the Company.

▪ b.3 Key Strategies

o Strategic Business Objectives

The formation of the strategic axes of the Company takes into account the very positive

perspectives that were formed by the establishment and activation of the COSCO SHIPPING group

in the organization.

The Company continues working in order to achieve its strategic objectives, as described below, in

a dynamic context that the COVID-19 pandemic has created and which is estimated to affect their

implementation.

1. Leadership in the Mediterranean homeport cruise: Attract additional homeport cruise passengers

(as a port of departure) in order to create a significant benefit to the local economy. Support the

objective by strengthening non-port infrastructure.

2. Eastern Mediterranean Ship Repair Hub: Installation of a new Floating Dock and revival of ship

repairs attracting 350-450 ships per year as a result of the increased reliability and efficient

service.

Page 7 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

3. Southern gateway to Chinese-European trade: Expansion of container terminal activities by

enhancing ocean lines and use to the extent of land interconnection with transit centers (trains),

attracting new Ro-Ro customers and expanding supply chain activities.

4. Passenger port for the whole of Greece: Maintaining the current level of activity and upgrading the

services provided through targeted investments (e.g. parking, dredging, commercial activity).

o Outward looking Strategy

The port of Piraeus hosted this year’s International "GreenPort Cruise & Congress"

The 16

edition of the International “GreenPort Cruise & Congress” took place in Greece and it was

hosted by Piraeus Port Authority S.A.,lasting from October 20-22, 2021. This influential event on

sustainable environmental practices welcomed by PPA as one initiative serving the prime objective to

minimize environmental impacts attributable to Port’s operations, while being committed to act as a

role model in green innovation and environmental performance for the broader industry.

More than 180 decision makers from the port community - port authorities, terminal operators,

shipping lines, logistics operators attended the Conference and discussed about the latest news in

sustainable development and environmental practice to enable them to effectively implement the

changes needed to reduce their carbon footprint and to be more sensitive to environmental

considerations and decisions. GreenPort Cruise & Congress 2021 covered a range of themes including

the EU’s new climate plan, financial and technical challenges to onshore power supply, ports getting

ahead for new fuels, collaborative community projects, sustainable transport and logistics in the

hinterland connections of the port.

COSCO SHIPPING – Piraeus Port Authority: Joint initiative for the release of the popular Greek

children’s novel “A Child Counts the Stars” in Chinese

COSCO SHIPPING and the Piraeus Port Authority have launched a joint initiative to release the

autobiographical and the most popular novel of Menelaos Lountemis, “A Child Counts the Stars” in

Chinese, by Patakis publishers contributing to the dissemination of the Greek culture and the Greek

thought through this literature genre to the Chinese people.

The joint initiative of COSCO SHIPPING and the Piraeus Port Authority showcase that synergies in one

area, through investing for growth and modernization of the Piraeus Port, bring multiple benefits across

the board, towards strengthening of the relationships and establishing strong ties between the two

countries, Greece and China.

During an event organized at COSCO SHIPPING offices in Beijing to promote this special initiative,

Captain Xu Lirong, Chairman of COSCO SHIPPING at that time, Greece's ambassador to Beijing, Mr.

Georgios Iliopoulos and Ministers of the Chinese government have honored the event with their

presence and addressed welcome messages to the participants.

Page 8 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

- Participation in National and International Forums

PPA S.A. remains strongly extrovert and actively participates in a series of national and international

maritime and maritime oriented/related organizations, trying not only to follow but also to contribute to

the developments taking place in the port industry. In the above framework, PPA S.A. participates in:

➢ European Sea Port Organization, by staffing the structures of the below technical

committees:

- Marine Affairs,

- Cruise & Ferry Port Network,

- Trade Facilitation, Customs and Security,

- Port Governance,

- Sustainable Development,

- Economic Analysis and Statistics,

- Multimodal, Logistics and Industry,

- Labor and Operation.

➢ Association of Mediterranean Cruise Ports, by undertaking the responsibility of the Med

Cruise relations with other associations (Cruise Lines International Association,

International Association of Ports and Harbors, Worldwide Network of Port Cities,

Association of the Mediterranean Chambers of Commerce and Industry, etc.).

➢ Association of Hellenic Ports, by taking over the Chairmanship of the BoD.

➢ Piraeus Chamber of Commerce and Industry, by taking over the chairmanship of the

Maritime and Ship Repair Activities Dept.

➢ Chamber of Greek-Chinese Economic Cooperation, by taking over the chairmanship of the

Board of Directors.

- Participation in international exhibitions

Participation in the 4th International Import Expo (CIIE)

Piraeus Port Authority participated in the 4th International Import Expo (CIIE), which was held in

Shanghai from 5-10 November 2021, under the auspices of the Government of China. The

representatives of the Port of Piraeus participated online, due to pandemic measures. However, PPA

had an important presence to the Exhibition through the existence of a booth where there was the

opportunity of promoting its multifaceted activities and upgraded services to a wide, international and

specialized audience targeting to attract more customers and expand the market of the largest Greek

port.

Participation in the 8th International Expo Logistics Supply Chain

For one more year PPA participated in the International Expo Logistics Supply Chain which was held in

Athens Metropolitan Expo Center and had the opportumnity to interact with stakeholders from the

Supply Chain Industry.

Page 9 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

C. Administration Principles

The management of the Company provides direction, leadership and an appropriate environment for its

operation to ensure that all its available resources are fully engaged in the achievement of its objectives.

The Company's policies at the stages of its productive and operational activity emphasize on

implementing procedures based on transparency and fairness, and establishing common principles and

rules, through the below principles:

Collectivity in decision-making

The function of the Administration Board, which supports and advises the other Company bodies in the

exercise of their responsibilities, is constituted by the Chairman of the BoD, the CEO, the Deputies and

Assistants to the CEO, ensuring better exchange of information, fuller exploration and better evaluation

of alternatives, consistency of the Management Team, increasing acceptance of the decision issued.

Segregation of Responsibilities

Clear distinction in the allocation of responsibilities through the assignment of specific duties at all levels

of the PPA hierarchy ensures the speed of decision making, the smooth operation of the business and

the subsequent effective control of all its actions.

On the basis of this principle, all members of the Company, according to their positions in the hierarchy

and qualifications, undertake specific responsibilities and are given the necessary authorities to carry

out the obligations arising therefrom.

Responsibility - Accountability - Liability

Responsibility - Accountability - Liability is vital to ensure high performance of the Company.

The Company's Management clearly communicates its expectations and sets out specific objectives to

the persons responsible for the execution of specific tasks and duties. Clear communication of

expectations and clearly defined goals are aimed at enhancing performance at all organizational levels

and structures of the Company.

Through the submission of continuous progress reports to the Management of the Company, the

organizational units of PPA S.A. are provided with the possibility to operate within the components of

the particular administration principle (Responsibility - Accountability - Liability), as well as to the

Company's Management to check its effectiveness.

Good Governance

The primary objective of the Company's Management is to increase its value and protect the legitimate

interests of all its shareholders. The PPA S.A.’s management bodies, in the exercise of their discretionary

powers, act in accordance with the rule of law in order to avoid unnecessary and unfair solutions. Good

administration, both as a principle and as a right, is a particularly useful "instrument" of the

Administration in order to ensure the trust of the persons who are managed and to firmly establish the

legal certainty and the legitimacy of its actions.

Page 10 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Audit - Transparency

For PPA S.A., adherence to market rules, participation in international standards of corruption

prevention and transparency enhancement, are commitments that are fully in line with its Values and

Principles, while at the same time demonstrate the degree of commitment to integrity practices and

Corporate Governance.

D. Internal Management Systems

Periodic Evaluation Policy of the Internal Control System of PPA SA and Implementation of the

provisions on Corporate Governance of Law 4706/2020

Key Elements

PPA SA having recognized the importance of the operation of an adequate and integrated Internal

Control System (hereinafter "ICS") for achieving its business objectives and in accordance with Law

4706/2020 regarding corporate governance and decision of the Board of Directors of the Hellenic

Capital Market Commission 1/891/30.09.2020 as in force from time to time, adopted a policy of periodic

evaluation of the Company's ICS as well as of the Implementation of the provisions on Corporate

Governance of Law 4706/2020.

The Company's ICS includes five (5) basic elements that exist and operate in the Company and are

described in general terms below:

a. Control Environment

The Company is committed to operate with integrity and ethical values. Its organizational structure

determines a specific position and specific and distinct responsibilities for each body and organizational

unit of the Company. There are specific benchmarks and areas of responsibility in achieving the

Company's goals, while a regulation is followed on the selection and recruitment of staff and senior

management as well as a remuneration policy aiming at attracting and retaining highly qualified human

resources.

b. Risk Management

The Company clearly communicates its objectives in the individual Departments in a simple and

understandable way, so that they are taken into account during the process of risk identification and risk

assessment as well as its acceptable risk tolerance level. In general, the Top Management of the

Company determines the way of responding to the risks by categorizing them according to the

probability and their impact on the operation of the Company in the following categories:

• High risk: immediate actions required

• Increased risk: immediate actions required

• Acceptable risk: immediate actions required

• Low risk: no immediate action required

The recording of the risks faced by the Company as well as the management and risk response

procedures, is carried out in all operations of the Company on an annual basis. In addition, the Company

has established control mechanisms and safety valves to detect and/or prevent the inability to deal with

risks, in order to achieve its objectives.

Page 11 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Risk Management function

The Company has a Risk Management function, which operates in accordance with appropriate and

effective policies, procedures and tools (such as keeping a risk register) on the determination, analysis,

control, management and monitoring of any kind of risk inherent to the operation of the Company.

c. Controls Activities

The Company develops policies and procedures in accordance with the objectives of the Management.

In addition, it implements a system of safety valves, based on the risks it has identified, but considering

the specific characteristics of the Company. Special emphasis is placed on the adequacy, proper

implementation and monitoring of procedures, the handling of error cases and the frequency of

reassessment of policies and procedures.

In addition, the Company implements adequate safeguards for issues of conflict of interest, segregation

of duties as well as the governance and security of its Information Systems.

d. Communication System

The Company ensures the quality of financial and non-financial information and follows appropriate

ways of internal and external communication, such as communication with the members of the Board of

Directors, shareholders and investors, communication with the existing Company committees,

complaint on whistleblowing, Regulatory Authorities etc.

e. Monitoring of the Internal Control System

The Company has mechanisms and functions that have as its objective the continuous evaluation of the

Internal Audit System and the reporting of findings to be corrected or improved.

Internal Orgazination and Operation Regulation (IOOR)

The updated Internal Operation Regulation (IOOR) of the Company is the Company's compliance with

the requirements of the applicable regulatory framework, as formulated, in particular, by Law

4706/2020 «Corporate governance of public limited companies, modern capital market, incorporation

into Greek legislation of Directive (EU) 2017/828 of the European Parliament and of the Council,

measures for implementation of Regulation (EU) 2017/1131 and other provisions» (Government

Gazette 136/17.7.2020), Law 4548/2018 "Reform of the Company Law (New legislation for Societe

Anonymes)" (Government Gazette A '104/13-06-2018), Law 3016/2002 "On Corporate Governance etc."

(Government Gazette A 110/17-05-2002) as in force today, the general provisions of the legislation

governing companies that have listed shares in the regulated stock market as well as the current Articles

of Incorporation of the Company.

This Regulation entered into force with No. 32/2021 Company’s Board of Directors decision and its

purpose is to depict:

a) The organizational structure, the units’ objectives, the committees of article 10 or other standing

committees’ objectives, as well as the duties of their heads and their reporting lines.

b) The main characteristics of the Internal Control System, i.e. the Internal Audit Department and the

functions of risk management and regulatory compliance.

c) The process of hiring and evaluating Senior Executives.

Page 12 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

d) The compliance procedure for persons holding managerial duties, as defined in number 25 of par. 1 of

article 3 of Regulation (EU) 596/2014, and the persons closely related to them, according to the

definition of par. 14 of article 2 hereof, which include the obligations deriving from the provisions of

article 19 of Regulation (EU) 596/2014.

e) The procedure for notifying the existence of dependent relations, in accordance with Article 9, of the

independent non-executive members of the Board of Directors and of the persons who have close ties

with these persons.

f) The procedure to comply with the obligations arising from articles 99 to 101 of Law 4548/2018,

regarding transactions with related parties.

g) The policies and procedures for the prevention and management of conflict of interest situations.

h) The policies and procedures of compliance of the Company with the legislative and regulatory

provisions that regulate its organization and operation, as well as its activities.

i) The procedure available to the Company for the management of privileged information and the

correct information of the public, in accordance with the provisions of Regulation (EU) 596/2014.

j) The policy and procedure for conducting periodic evaluations of the Internal Control System, in

particular as regards the adequacy and effectiveness of financial information, on an individual and

consolidated basis, as regards risk management and regulatory compliance, in accordance with

recognized standards of evaluation and internal control, as well as the implementation of the provisions

on corporate governance of this law. This evaluation is carried out by persons who have proven relevant

professional experience and do not have dependent relationships according to par. 1 of article 9.

k) The training policy of the members of the Board of Directors, the Executives, as well as the other

executives of the Company, especially those involved in internal control, risk management, regulatory

compliance and information systems.

l) The sustainable development policy followed by the Company.

General Staff Regulation

The General Staff Regulation drafted as per the provisions of Law 1876/1990 and Article 10A (a) of Law

4404/2016 "Ratifying the amendment dated 24.6.2016 and codification into an integrated text of

Concession Agreement dated 13.2.2002 between the Hellenic Republic and Piraeus Port Authority S.A.

and other provisions".

The GSR is intended to regulate all employment relations, on the basis of the principles of equality and

transparency, with a view to ensuring the smooth and efficient operation of all Company Departments

and serving effectively the common interests of the Company and its staff.

Page 13 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Regulation of operation of Internal Audit Department

As a listed Company, the Company has an independent Internal Audit Department, the operation of

which is supervised by the Audit Committee.

Based on the Regulation of Operation of Internal Audit Department as approved by the Board of

Directors of the Company, the mission of the Internal Audit Department is to add value and improve the

operations of the Company, providing objective and risk-based assurance, advice, and insight. The

Internal Audit Department helps the Company to achieve its objectives, adopting a systematic,

professional approach to evaluating and improving the effectiveness of Risk Management, Internal

Control Systems, and Corporate Governance processes.

During the year 2021, the Internal Audit Department, submitted nineteen (19) internal audit reports

according to the Annual Audit Plan of 2021. Regarding other assignments, the Internal Audit

Department submitted ten (10) Tender procedures Compliance Reports. Also the Internal Audit

Department provided periodic reports for the work performed to the Audit Committee on a monthly,

quarterly and annual basis and to the BoD on a quarterly and annual basis.

After the proposal of the Institute for Internal Auditors Greece, PPA participated to its Annual

Conference, as a silver sponsor. The Conference was held in the context of the effort to improve the

professional development and training of its members and all those involved in Internal Audit, Risk

Management, Regulatory Compliance and Governance in general.

Members of the Internal Audit Department, as active members, have gained valuable knowledge and

practical tools they can apply to their work, while the principles, standards and best practices of the

industry in the private sector have been shared.

The sponsorship reflects the importance PPA attaches and interest in the fields of Internal Audit, Risk

Management, Regulatory Compliance and Governance.

Internal Complaint Process (ICP)

The Company maintains an Internal Complaint Process (ICP), which is described in the Code of Conduct

that has been approved by the Administration Board with the decision n. 1/17-1-2020.

As part of Good Governance Policy and respect to the company’s shareholders PPA SA sees every

complaint as an opportunity to assess business processes and improve them whenever possible. It is

believed that the ICP will offer the chance to get feedback on the business activities/ operations and will

serve as a quick and efficient means of resolving any problems that may arise and will promote good

relations and communication between the Company and its employees.

According to the ICP, a complaint falls into the following (indicative) categories:

01. Fraud

02. Internal Policy / Regulation / Procedure Violation

03. Data Privacy Protection

04. Corruption / Bribery

05. Human Rights Issues

06. Issues regarding failure in services provided to clients

07. Issues regarding health and safety

08. Issues regarding rational resource management of the company

09. Issues regarding environmental protection and energy saving

10. Other

Page 14 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Should a complaint being made involves a member or members of the Board of Directors or the Audit

Committee, or the Administration Board, Internal Audit Department must immediately report the

complaint to the Audit Committee or to the Board of Directors respectively, which will forthwith direct

the investigations and necessary actions as appropriate.

On a monthly basis, the Internal Audit Department provides to Top Management (Chairman of the BOD,

CEO, Deputy CEOs, Assistant CEOs) information regarding the complaints it receives, the actions taken in

order to facilitate them and any proposed improvements that need to be implemented.

On an annual basis the Internal Audit Department provides to the Audit Committee a summary report of

the above work performed.

During 2021, one (1) complaint was submitted through the ICP, for which the approved procedures

were followed.

Certifications & Implementation of Standards and other requirements

Quality, Environmental & Energy Management Certification (ISO 9001:2015 - ISO 14001:2015 - ISO

50001:2018)

In 2021, PPA SA continued to maintain its certifications as per ISO 9001:2015, ISO 14001:2015 & ISO

50001:2015 standards for the quality, environmental and energy management for all its activities:

• Provision of Port Cruise, Ferry, Ro-Ro and Container Terminal Services.

• Management of Logistics center.

• Provision of Dry Docking Services for the Repair of Vessels Two (2) Graving Docks at Akti

Vasiliadi and three (3) Floating Docks at Perama Ship Repair Zone and sub-concessions of

berthing posts and land space for the repair of vessels (Perama Ship Repair Zone, Drapetsona

Pier, DEI Pier).

• Port construction and maintenance projects management.

• Management for the Implementation of co-funded projects characterized as Public ones:

- Technical Infrastructure Works,

- Procurement Contracts and Services.

Lloyd’s Register (LR) following an external audit conducted in May 2021 verified that PPA SA’s

certifications remain valid.

Within this framework, PPA SA continued the maintainace and improvement of the certified Integrated

Quality, Environmental & Energy Management System, which has been developed in line with these

three (3) standards’ requirements, aiming at continuous improvement at all fields.

PPA SA works in a consistent way to understand customers’ needs and expectations, continually

improve the level of services provided, address the environmental challenges emerged in daily

operation and improve the energy performance. Moreover, through the energy management

certification, PPA seeks ways to reduce energy consumption, increase energy efficiency, minimize the

CO2 footprint of port operations and reduce operational cost, while moving towards decarbonization.

Page 15 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

According to PPA SA’s Quality - Environmental - Energy Policy, that is available on its official website, the

company is committed to improving the quality of the provided services, the environmental and energy

performance and setting quality, environmental & energy objectives to address risks and opportunities,

significant environmental aspects and significant energy uses. These objectives are continuously

monitored and reviewed.

PPA SA has adopted new processes and procedures for considering energy performance improvement

opportunities during the design of new facilities and activities, the upgrade of current facilities and the

renewal and upgrade of equipment according to its Masterplan. Τhe use of alternative energy types and

their deployment at the new infrastructure are also under consideration.

Risks and opportunities are defined through systematic analysis of internal and external issues.

Significant environmental aspects are defined through assessment of the impact port activities pose or

may pose to the environment. Significant energy uses are defined through Annual Energy Reviews.

Also, internal inspections are conducted regularly and the top management, through the Management

Reviews, assesses the effectiveness of the Integrated Quality, Environmental & Energy Management

System, the achievement of the objectives set and supports actions to ensure continual improvement.

PPA SA through the certification as per these three (3) standards also contributes to the UN Sustainable

Development Goals.

Corporate Social Responsibility Reporting as per GRI Standards

Since 2018, PPA S.A. publishes Corporate Social Responsibility Reports according to GRI Standards.

AEOF license

In 2020, PPA SA became an Authorized Economic Operator (AEOF/ Security and Safety) following the

issuance of the relevant license.

E. Major events of 2021

Notification of significant change of voting rights

Following the execution of an over-the-counter transaction, which took place on October 6, 2021, the

percentage of voting rights in PPA S.A. directly held by COSCO SHIPPING (Hong Kong) Co. has risen from

51% to 67%.

This change in the share capital of PPA S.A. is due to the transfer from HRADF S.A. of 4,000,000 common

registered voting shares (percentage 16%) to COSCO SHIPPING (Hong Kong) Co. The transfer is

attributed to an amended Share Purchase Agreement following ratification of the amendment of the

Concession Agreement (Law 4838/2021, Government Gazette 180A/ 01.10.2021), the main points of

which are the following:

• non-imposition of liquidated damages for the delayed completion of the first mandatory

enhancements under article 16 of the concession agreement par 5 (a) (i)

• extension of the first investment period for five (5) years

• possibility of suspension of the first investment period - establishment of an amicable settlement

mechanism - possibility of replacing of the first investment period

• non-imposition of liquidated damages against PPA S.A. in case of suspension

• extension of the second investment period

• introduction of a flexible procedure for the approval of final studies and non-mandatory ppa

investments

• extension of the grace for the partial achievement of minimum levels of services

Page 16 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Increase capacity of the Pier I of the Container Terminal

PPA S.A. in 2021 announced:

a. the supply of five (5) Stacking Cranes (E-RTG), for installation in Pier I of the Container Terminal.

It is noted that the new electric E-RTGs are more environmentally friendly than conventional

ones and their use will improve the environmental footprint of the port of Piraeus.

b. the supply and installation of one (1) new Super Post Panamax Crane for loading and

discharging container operation, which can handle 20.000 TEU mega container vessels.

c. the Repair of Pavements and Rails for RMG Cranes, in the framework of the Mandatory

Investment 02 with object the upgrade of Pier I, to ensure the smooth and modern operation of

the Container Terminal.

Initiating new investments

All below mandatory investments part of the concession agreement between PPA S.A. and the Greek

Government with a contract total over 32 million euro are on their way to implementation.

The contract was signed for the Herakleous Pier Car Terminal Extension at Keratsini commercial port

worth about 20 million euro. Based on the project plan, the existing pier will be extended by 35 acres

transforming into a new area measuring 1,100 m. platform width, along with a functioning depth of

12.50 meters and a total surface of 110 thousand square meters. In addition, the project involves the

improvement and upgrade of the existing port facilities and computer electronics. The new investment

will strengthen the competitiveness of the Car Terminal at Port of Piraeus through the creation of 5,400

new car park positions.

Additionally, the company proceeded with the final stage of contractors’ designation for the Mandatory

Enhancements No4 and No7 worth about 12.5 million euro.

The above major investments are significant steps forward, allowing Piraeus Port to continue its

dynamic sustainable growth path, while further increasing not just the Port of Piraeus but Greece

competitiveness overall in the global shipping and trade industry. The progression of the above

investments is of great importance and a high necessity for the Port of Piraeus, being the gate to Europe

and the world, needing to maintain the already achieved top positions among the leading ports in the

Mediterranean and beyond.

Page 17 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

F. Past performance, comments on Financial Statements and investments

F1. Past performance

The volumes of international trade depend on global economic conditions. The IMF estimates for

January this year

record GDP growth of 5.2% in the Euro area and 5.9% worldwide. These estimates are

lower than the previous forecasts in October 2021. Estimates for 2022 show a 4.4% increase in global

GDP but this depends on data on the extent of vaccination in developing countries and possible

inflationary pressures. The European Commission, in the autumn of 2021, predicts that the euro area

economy will expand by 5% in 2021 and 4.3% in 2022

The Greek economy is recovering faster than expected with the estimates for the GDP of 2021

increase by 6.9% after a decrease of 9% in 2020. For 2022 a further increase of the GDP by 4.5% is

predicted with a significant degree of uncertainty due to exogenous factors such as the evolution of the

vaccination program and international gas/fuel prices.

F2. Comment on Financial Statements for the 2021

- Revenues

The total revenues for the year 2021 amounted to € 154.2 million increased by 16.0% or € 21.3 million

(2020: € 132.9 million). The increase is mainly due to the significant increase of revenues from the cruise

sector and the car terminal sector by 375.1% and 27.6% or by € 7.5 million and € 3.1 million respectively,

as well as to the increase of revenues from the container terminal and coasting sector by 21.8% and

14.1% or by € 5.3 million and € 1.2 million respectively. Moreover, there was an increase by 5.4% or by

€ 3.6 million in the revenue from the Pier II + III concession agreement with PCT . Finally in the

shiprepair sector there was a slight decrease in revenues by 3.0 % or by € 0.4 million.

Cost and Expenses

The key operating costs mainly relate to the payroll costs which in 2021 did not show a significant

variation and amounted to € 58.5 million compared to € 58.0 million in 2020 (Note 28).

In regard to the remaining operating costs, except for payroll costs, they remainedconsistent toto the

prior year figures except for the following:

Provisions for legal cases increased significantly as an additional provision amounting to € 4.4 million

was recorded in the current year. During the previous year, a provision of € 2.3 million was recorded and

also a reversal of a provision amounting to € 3.6 million was recognized for legal cases that were re-

evaluated by the Company’s Legal Department based on recent events or were ruled in its favor (Note

17 and Note 24).

https://www.imf.org/-/media/Files/Publications/WEO/2022/Update/January/English/text.ashx [Accessed 27 Jan.

2022]

https://ec.europa.eu/commission/presscorner/api/files/document/print/en/ip_21_5883/IP_21_5883_EN.pdf

[Accessed 27 Jan. 2022]

https://www.minfin.gr/web/guest/proupologismos/-/asset_publisher/qmvb5pyzdGAQ/content/kratikos-

proupologismos-

2022?inheritRedirect=false&redirect=https%3A%2F%2Fwww.minfin.gr%2Fweb%2Fguest%2Fproupologismos%3Fp

_p_id%3D101_INSTANCE_qmvb5pyzdGAQ%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dvie

w%26p_p_col_id%3Dcolumn-2%26p_p_col_count%3D1 [Accessed 27 Jan. 2022]

Page 18 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

A significant increase was noted in "Third Party Fees and Expenses" by € 2.4 million, due to the use of

external partners by the Company (December 2020) for loading and unloading services as well as in

"Third Party Services" by € 1.2 million, mainly due to the increase in the Company’s electricity charges.

The "Greek State Concession" fee presented an increase during the current year, by € 0.8 million

(31.12.2021: € 2.1 million compared to 31.12.2020: € 1.3 million) which is mainly due to the increase in

revenues of the period compared to the fiscal year 2020 (Note 24).

There was an increase in the consumption of materials by 40.0% which in the current period amounted

to € 2.8 million while in the previous year was € 2.0 million.

Depreciation did not show a significant change during the current period, amounting to € 17.9 million

(31.12.2020: € 18.0 million), (Note 27).

- Other Operating Income/Expenses

Other operating income for the current year did not change significantly compared to the previous year.

However, in the current year an increase was noted in rental income by € 0.4 million, insurance

compensation by € 0.2 million as well as in rental subsidy due to Covid 19 by € 0.1 million in comparison

with the previous year. This increase was offset the decrease in other revenues by € 0.4 million. Also,

during the previous year, the receivable of the contractor company “Pier I” was collected and the

amount of € 0.7 million, related to the penalty on late payment was recorded as other income (Note

25).

Other operating expenses for the period amounted to € 0.6 million compared to the corresponding

period of 2020 (€ 1.6 million) have been decreased by € 1.0 million. The decrease is mainly due to the

reduction of third party compensation by € 0.4 million, the decrease of other expenses by € 0.3 million

as well as to the decrease in loss on disposal of property, plant and equipment amounting to € 0.4

million.

- Financial Income

In financial income a significant decrease of interest and related income was noted due to the decrease

of bank interest during the current year (31.12.2021: € 0.01 million instead of € 0.3 million in

31.12.2020).

- Net impairment losses on financial assets

The net impairment loss on financial assets did not change significantly during the current year and

amounted to € 0.9 million (31.12.2020: € 1.1 million).

- Impairment loss of non-current assets held for sale

In December 2020, management approved the disposal of four (4) Quay Cranes with a net book value of

€ 1.9 million. For the above quay cranes, based on the valuation that was obtained by an independent

appraiser, the Company conducted a relevant tender process to sell the assets directly at scrap value of

€ 185.0 thousand with a corresponding cost to sell of € 1.5 thousand. As the net book value of the quay

cranes exceeded the fair value less cost to sell, an impairment loss was recorded amounting to € 1.7

million, from the application of IFRS 5. The quay cranes were sold during the current year (Note 4).

Page 19 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

- Total Assets

Total assets at December 31, 2021 amounted to € 526.2 million, increased by 9.8% or € 47.10 million

(31.12.2020: € 479.1 million).

The increase in total assets was mainly due to the following sub-items, namely:

• increase in cash and cash equivalents by € 23.6 million

• increase of the unamortized balance of tangible property, plant and equipment by € 22.2 million

(due to the additions € 38.7 million of the year reduced by € 16.0 million current year depreciation

and net value of write-offs-sales/transfers to intangible property, plant and equipment by € 0.5

million).

• increase in trade and other receivables by € 3.8 million due to the increase of grant receivable by €

2.0 million and the increase in the balance of trade receivables by € 3.0 million as well as to the

decrease of the income tax advance by € 0.9 million (Note 11).

• increase in other long-term receivables by € 1.0 million mainly due to advance payments to

suppliers for two new projects during the current year. The aforementioned advance payments are

amortized during the construction period of the projects with a 5% withholding rate (Note 8).

This increase was mainly offset by:

▪ decrease of the deferred tax asset by € 1.0 million (Note 9)

▪ decrease in right of use assets by € 2.0 million due to the current year depreciation

▪ decrease in inventories by € 0.4 million.

- Total Liabilities

Total liabilities as at 31.12.2021 amounted to € 250.0 million (31.12.2020: € 229.6 million) increased by

€ 20.4 million. The change in total liabilities was mainly due to the following:

• increase in grants by the amount of € 12.8 million (Note 15) relating to the grant received during

the year, which was offset by the current period’s depreciation.

• net increase in the provisions for legal cases by the amount of € 4.3 million (Note 17).

• increase in income tax payable by the amount of € 5.2 million.

• increase in accrued and other liabilities by the amount of € 5.9 million (Note 20).

• increase in suppliers by the amount of € 0.3 million.

• increase in other long term liabilities by the amount of € 0.3 million.

• decrease in bank debt by € 6.0 million due to the repayment of four installments of the long-term

loan.

• decrease in deferred income by € 1.1 million (Note 21)

• decrease in short-term and long-term lease liabilities by € 1.1 million (Note 5), due to the current

year payments of € 3.7 million, finance cost € 2.4 million and additions of € 0.2 million

• decrease in provision for staff leaving indemnities by € 0.3 million (Note 16).

Page 20 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

E3. Investments

The implementation of investment plan is to strengthen the financial position and sustainable

development of the Company. It will benefit also to the local economy by creation job opportunity and

bring tax contribution to the national economy. According to the Concession Agreement, the mandatory

investment of the Company is around € 293.8 million of Reference Cost and the additional investment is

budgeted around € 167.0 million of Reference Cost. Until end of 2021, the accumulated contracted

amount for the above investment is € 250.5 million with the reference cost of € 278.6 million in total,

89.9% of total reference cost.

The accumulated investment amount by end of December 2021 for the above contracts for mandatory

investments have been made around € 117.8 million which can be split into completed project € 60.3

million, projects under construction € 51.7 million and prepayments of € 5.8 million.

Apart from the above, the Company completed some additional investments as maintenance

infrastructure of the port with the amount of € 6.8 million.

Page 21 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

1 ME01

Passenger Terminal Expansion

(South Zone - Phase A)

136,283,800 136,283,800 102,954,367 32,908,599

2 ME02

Repair of pavements, rails and

RMG cranes of Pier I Container

Terminal

8,000,000 8,000,000 6,800,475 6,962,078

3 ME03

Convertion of Pentagonal

Warehouse to Passengers

Terminal

1,500,000 0 0 15,888

4 ME04

Underground Tunnel for the

connection of G2 Car Terminal

to the ex-ODDY area.

5,000,000 5,000,000 6,416,285 67,334

5 ME05

Upgrade and maintenance of

Port Infrastructure

15,000,000 1,270,483 854,467 1,021,679

6 ME06

Supply of Equipment

25,000,000 25,000,000 28,052,761 17,564,261

7 ME07

Dredging of Central Port

8,000,000 8,000,000 6,128,325 87,859

8 ME08 Studies 5,000,000 5,000,000 9,600,000 2,483,047

9 ME09

Construction of New Oil

Terminal

15,000,000

15,000,000 19,541,587 20,846,402

10 ME10

Expansion of Ro-Ro (Car)

Terminal - Hrakleous Pier

20,000,000

20,000,000 19,810,488 2,337,309

11 ME11

Improvement of Infrastructure of

Ship Repair Zone (Including

floating docks)

55,000,000

55,000,000 50,353,403 33,494,387

293,783,800 278,554,283 250,512,158 117,788,843

a/a

Additional

Investments

Item name Budgeted Cost

Development of a logistics center

in the former ODDY area, surface

of 80.000m2

60,000,000

Construction of two car park

buildings, surface of 75.000m2

each in the G2 region

27,000,000

Construction of a Cruise

Passenger Terminal

80,000,000

Maintenance and repair of port

and building infrastructure not

included in Obligatory

Investments

6,749,511 6,749,511

167,000,000 6,749,511 6,749,511

460,783,800 278,554,283 257,261,669 124,538,354

Total amount € without VAT (A)

Total amount (A+B)

Amounts in Euros (€)

Total amount € without VAT (A)

Accumulated

Investment Amount

until Dec 31 2021

(including prepayments)

Summary of Mandatory Investment in PPA

a/a

Mandatory

Enhancement

Item Name

Concession

Agreement

Reference Amount

Reference amount of

contracted projects

Construction Contract

Amount

Page 22 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

2. Principal Risks Analysis and Risk Management

A. Monitoring the supply chain with reference to the main suppliers and their cooperation rules

There are no suppliers, the interruption of which would jeopardize the operation of the Company in

the event of a temporary failure of supplies provision.

B. Other risks that are related to the activity or sector that the company is operating.Risk of loss of

assets

- Risk of property loss

The Company takes all necessary measures to minimize the risk and possible losses of assets due to

natural disasters or similar related causes.

- Property insurance

PPA S.A. has insured all its assets in accordance with the provisions of Article 17.1 of the CA with the

Greek State for the following indicative but not limited to perils:

Fire, lightning, explosion, storm damage, aircraft crashes and named perils or Property All Risks,

based on new replacement cost of asset.

The income loss due to disaster-related closing of the business facility or due to the rebuilding

process after a disaster, i.e. storm, earthquake, flood, strikes, riots and terrorist actions, has been

insured.

- Third Party Liability and Employer’s Liability

PPA S.A. maintains insurance in respect of third party liability in accordance with the provisions of

Article 17.1 of the CA with the Greek State for all its activities.

- Maximum Probable Loss (MPL) analysis

According to the requirements of the provisions of Art. 17 and Annex 17.1 of the CA, the company is

in the process of finalizing the Maximum Probable Loss (MPL) analysis.

The relevant tender procedure has been completed and the respective contract has been signed with

a specialized consulting firm in the field of risk insurance. Currently data collection has been

completed and MPL analysis performed by the awarded consulting firm is in progress.

The MPL analysis includes as a minimum the following elements:

1. Estimation of Maximum Probable Property Loss and loss of income for normal risks, excluding

natural disasters (such as earthquakes, tsunamis, etc.).

2. Estimation of Maximum Probable Property Damage and Loss of Revenues in Disastrous Risks, and

in particular in the event of an earthquake.

3. Risk Accountability Quotient that will analyze and quantify the probable scenarios of liability

losses, including environmental liability, under the worst-case scenario.

- Business Risks Associated with the Company's business activities

A detailed report on the main risks associated with the sector in which the Company operates is set

out in Chapter of the Non-Financial Report, which follows (Risk Policy and Risk Management / Major

Business Risks and Uncertainties).

Page 23 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Financial Instruments

Fair Value: The carrying amounts reflected in the accompanying statements of financial position for

cash and cash equivalents, trade and other accounts receivable, prepayments, trade and other

accounts payable and accrued and other current liabilities approximate their respective fair values due

to the relatively short-term maturity of these financial instruments.

The fair value of variable rate loans and borrowings approximate the amounts appearing in the

statements of financial position.

The Company categorized its financial instruments carried at fair value in three categories, defined as

follows:

Level 1: Quoted (unadjusted) values from active financial markets for identical negotiable assets or

liabilities.

Level 2: Other techniques for which all inflows that have a significant impact on the recorded fair value

are identified or determined directly or indirectly from active financial markets.

Level 3: Techniques that use inflows that have a significant impact on the recorded fair value and are

not based on quoted prices from active financial markets.

During the year ended December 31, 2021 there were no transfers between Level 1 and Level 2 fair

value measurements, and no transfers into and out of Level 3 fair value measurements.

As at December 31, 2021 and 2020, the Company held the following financial and non financial

instruments:

December 31, 2021 Level 1 Level 2 Level 3 Total

Financial liabilities

Interest bearing loans and borrowi ngs (including

short term portion)

- 44,499,999.99 - 44,499,999.99

Investment property - - 734,338.38 734,338.38

Non-current ass ets held for sa le - - - -

December 31, 2020 Level 1 Level 2 Level 3 Total

Financial liabilities

Interest bearing loans and borrowi ngs (including

short term portion)

- 50,499,999.99 - 50,499,999.99

Investment property - - 734,338.38 734,338.38

Non-current ass ets held for sa le - 183,500.00 - 183,500.00

Credit Risk: There is no significant credit risk for the Company towards the contracting parties, since it

receives advance payments or letters of guarantee from customers. In addition, the Company's

deposits are placed in bank financial institutions in Greece with the following ratings (Moody's credit

rating):

December 31, December 31,

2021 2020

Β2 102,383,876.42 Caa1 97,735,374.28

Β3 32,775,682.28 Caa1 13,794,460.22

Total 135,159,558.70 111,529,834.50

Page 24 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Foreign Exchange Risk: The Company is neither involved in international trade nor has any long term

loans in foreign currency and therefore is not exposed to foreign exchange risk resulting from foreign

currency rate variations.

Interest rate risk: The Company has two bank loans which are expressed in Euro and one is subject to

fixed interest rate and the other one to floating interest rates (Note 18). The Company does not use

derivatives in financial instruments in order to reduce its exposure to interest rate risk fluctuation as at

the balance-sheet date. The Company management believes that there is no significant risk resulting

from a possible interest rate fluctuation.

The table below presents and analyses the sensitivity of the result in relation to financial assets (cash

on hand and in banks) and financial liabilities (loans) of the Company to the interest rate risk changes

assuming a simultaneous change in interest rates by ± 100 basis points on the Company’s profit.

2021 Decrease (Increase)

Financial assets Accounting values +100bips(Euribor) -100bips(Euribor)

Cash and cash equivalents

134,975,285.73 1,349,752.86 (1,349,752.86)

Effect before income tax

1,349,752.86 (1,349,752.86)

Income tax 24%

(296,945.63) 296,945.63

Net effect

1,052,807.23 (1,052,807.23)

Financial liabilities

Long term loans

(44,499,999.99) (445,000.00) 445,000.00

Effect before income tax

(445,000.00) 445,000.00

Income tax 24%

97,900.00 (97,900.00)

Net effect

(347,100.00) 347,100.00

Total net effect

705,707.23 (705,707.23)

2020 Decrease (Increase)

Financial assets Accounting values +100bips(Euribor) -100bips(Euribor)

Cash and cash equivalents

111,354,314.06 1,113,543.14 (1,113,543.14)

Effect before income tax

1,113,543.14 (1,113,543.14)

Income tax 24%

(267,250.35) 267,250.35

Net effect

846,292.79 (846,292.79)

Financial liabilities

Long term loans

(50,499,999.99) (505,000.00) 505,000.00

Effect before income tax

(505,000.00) 505,000.00

Income tax 24%

121,200.00 (121,200.00)

Net effect

(383,800.00) 383,800.00

Total net effect

462,492.79 (462,492.79)

Page 25 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Liquidity risk: The effective management of liquidity risk is secured by ensuring maintenance of adequate

cash reserves and a possibility for funding if necessary. Corporate liquidity risk management is based on

rationale management of working capital and cash flows.

The following table summarizes the maturities of financial liabilities December 31, 2021 and 2020,

respectively, under the relevant contracts to non-discounted prices.

Amounts of fiscal year 2021 Current portion

Less than

6 months

6-12 months 1 to 5 years >5 years Total

Borrowings - 3,031,400.42 3,029,374.58 24,162,066.67 14,536,464.99 44,759,306.66

Lease liabilities 3,496.15 3,515,530.77 10,346.15 14,000,000.00 91,437,500.00 108,966,873.07

Trade and other payables* 6,653,055.85 8,301,662.10 4,022,595.27 - - 18,977,313.22

Total 6,656,552.00 14,848,593.29 7,062,316.00 38,162,066.67 105,973,964.99 172,703,492.95

Amounts of fiscal year 2020 Current portion

Less than

6 months

6-12 months 1 to 5 years >5 years Total

Borrowings - 3,035,612.50 3,033,577.50 24,195,360.00 20,565,119.99 50,829,669.99

Lease liabilities 3,710.00 3,511,860.00 8,534.67 14,000,000.00 94,937,500.00 112,461,604.67

Trade and other payables* 4,581,933.78 5,978,848.60 3,858,781.59 - - 14,419,563.97

Total 4,585,643.78 12,526,321.10 6,900,893.76 38,195,360.00 115,502,619.99 177,710,838.63

* Trade payables do not have interest and are settled in up to 60 days. Other payables also do not bear any

interest and are settled in up to 12 months.

Capital Management

The primary objective of the Company's capital management is to ensure the maintenance of high credit

rating, and healthy capital ratios in order to support and expand the Company's operations and maximize

shareholder value. The Company's policy is to maintain leverage targets, according to an investment grade

profile. The Company monitors capital adequacy using the ratio of net debt to operating profits, which

should be lower than 9.80 based on the loan agreements (Note 18). The debt includes interest-bearing

loans and lease liabilities, while the operating profit includes profit/(loss) before taxes, financing costs and

depreciation.

2021 2020

Long-term borrowings 38,499,999.99 44,499,999.99

Short-term borrowings 6,000,000.00 6,000,000.00

Lease liability (long-term/short-term) 65,435,982.72 66,538,481.42

Total Debt (including lease liabilities) 109,935,982.71 117,038,481.41

Earnings before interest, tax, depreciation and amortization (EBITDA)

70,304,423.14 58,000,799.42

- Total Debt / EBITDA 1.56 2.02

December, 31

Page 26 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

3. Environmental issues

The Company recognizes both its obligations to the environment and the need for continuously

improvement for its environmental performance so as to achieve a balanced economic development in

harmony with environmental protection.

A. Actual and potential impacts on the environment

The actual and potential impacts on the environment caused by the operation and activities of PPA S.A.

are assessed in the approved Environmental Impact Assessment Study of PPA S.A. The company has in

force a Decision of Environmental Terms, approved by the Ministry of Environment & Energy, and cares

for the correct and full implementation of these Environmental Terms in order to ensure the prevention

and reduction of the impact on all the environmental parameters. Within the year 2020, the new

94701/5991/11-12-2020 Decision of Approval of Environmental Terms of PPA SA was issued regarding

the renewal and modification of the environmental licensing of all the activities and projects of PPA SA

and is valid for 15 years.

B. Notification of the Procedures implemented for the prevention and control of pollution and the

environmental impacts by various factors

In the context of the environmental management system PERS and as EcoPorts network member, PPA

S.A. has elaborated and implemented specific environmental policy, procedures of implementation and

monitoring of environmental parameters associated with all the activities, while it aims at continuous

improvement of its environmental performance, following the European and international standards

with aim the protection of the environment and the conservation of the natural resources for future

generations.

Thus, Piraeus port is committed to the principles of the ESPO Green Guide and establishes objectives

and targets to achieve improvement of its environmental performance.

Taking into consideration all the above and in accordance with the Environmental Terms of port’s

operation, PPA S.A. has developed and implements the following procedures for the prevention and

control of pollution and environmental impacts:

• Environmental quality monitoring Program on acoustic environment. PPA S.A. implements, in

collaboration with external specialized consultants, an integrated noise monitoring programme,

covering the entire port area and focusing on the reduction of noise levels from sources related

to container terminal operations, construction works, vehicles movements etc. The Ldeq

indicator is measured and monitored throughout the entire port area of PPA S.A. twice a year.

The program includes eight (8) 96-hour environmental noise measurement locations, four (4)

24-hour traffic measurement locations and the three (3) permanent noise Monitoring Stations.

The permanent stations were co-financed through the participation of PPA in the European

Programs PIXEL and GREEN C PORTS.

• Air quality monitoring Program. Since 2009, PPA S.A. has been implementing, in cooperation

with the National Technical University of Athens, an integrated program for the monitoring of

air pollution through a specialized monitoring station in order to identify, assess and quantify

the gas emissions of the port and to develop appropriate actions and operational techniques for

protecting and improving air quality in the port area. The parameters recorded and monitored

are: NOx, SO2, CO, heavy metals, PAHs, PM

particles, BTEX hydrocarbons.

Page 27 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

At the same time the Program was recently strengthened with three (3) additional permanent

air pollution Monitoring Stations, which were co-financed through the participation of PPA in

the European PIXEL and GREEN C PORTS Programs.

• Sea water quality monitoring Program. PPA S.A. in cooperation with the laboratory of Sanitary

Technology of Civil Engineering School of National Technical University of Athens (NTUA) applies

a seawater quality monitoring program to the entire port area and finds, where applicable,

corrective measures. The sampling frequency is twice a year in twenty (20) positions each time.

• Marine Sediments Quality Monitoring Program. PPA S.A. in cooperation with the laboratory of

Sanitary technology of Civil Engineering School of National Technical University of Athens

(NTUA) applies a quality monitoring program of marine sediments to the entire PPA S.A.

jurisdiction. The sampling frequency is twice a year in ten (10) positions each time.

• Integrated waste management system produced on land installations. PPA S.A. implements

since 2009 a special management system to enhance recycling, to reduce the quantities led to

final disposal at landfills and to enhance the production of environmentally friendly materials,

where applicable. The main waste streams that are recycled are paper, glass, packaging, empty

ink cartridges & toners, used batteries and accumulators, waste of electrical and electronic

equipment, lubricant oils, tires, wood waste, operational waste by workshops, operational

waste of floating and dry docks, scrap and metal waste etc.

• Ship-generated Waste Management Plan, approved by the Ministry of Shipping.PPA SA

implements a special, approved by the competent Ministry, Plan since 2008 for ship- generated

waste and cargo residues in accordance with the respective European Directive, the provisions

of the International Convention on Marine Pollution and MARPOL 73/78. According to this Plan,

a port Waste Reception System has been set up for the collection and management of solid and

liquid ship- generated waste by specialized contractors. To date, there have been no complaints

from a ship about the inadequacy of the services provided.

• Contingency plan of land and sea pollution incidents, approved by the competent Ministry. PPA

SA has a special Plan for dealing with incidents of pollution from oil and other harmful

substances both in the marine area and on land (piers) in the port area of its competence, while

with a specialized contractor takes care of the daily cleaning of marine waters.

• PPA S.A. is certified according to ISO 14001: 2015 for Environmental Management by Lloyd’s

C. Reference to the development of green products and services where exist

PPA SA recognized the need to reduce resource consumption and in particular energy savings

throughout the port sector. PPA SA highlights the issue by promoting initiatives and behaviors to

improve the balance of the demand and supply of energy and to reduce energy consumption.

In this context, PPA S.A. has installed and operates since August 2016 a photovoltaic power plant

producing up to 430 kWp by using solar panels. The photovoltaic plant is connected to the electricity

system of DEDDIE S.A. (Administrator of the Greek Electricity Distribution Network).

Page 28 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

4. Labor issues

Promoting equal opportunities and protecting diversity are key principles of the Company. Management

does not discriminate in recruitment / selection, pay, education, job assignment or any other work

activities. The factors that are exclusively taken into account are person's experience, personality,

theoretical training, qualifications, efficiency and abilities.

The Company is in favor of respecting the diversity of each employee and does not accept behaviors

that may discriminate in any form whatsoever.

A. Policy of diversification and equal opportunities (regardless of gender, religion, disadvantage or

other aspects).

Liable to article 11 b of GSR, the Company, as employer, is: applies the principle of equality in all

respects in its employment relations, including the equal treatment of male and female employees.

At 31/12/2021 PPA S.A. employed 960 employees. From this staff:

- 137 (14.3%) were women and 823 (85.7%) men

- 809 employees (84.3%) covered by collective labor agreements,

- 145 employees worked on individual contracts (Company Executives, Managers, Deputy Managers,

and Assistant Managers, Employees, etc.).

- 3 were trainee lawyers, 2 were employed on a project contract basis and 1 was an internship.

In addition, there were 23 employees under labor contract of private law for a fixed period.

The gender difference in the Company's staffing is mainly attributable to the labor-intensive

characteristics of the main work items of PPA S.A. (dockworkers, operators, lifting equipment operators,

heavy-duty drivers). In the 2021’s recruitment announcements there were no gender exclusion criteria.

Of the 94 employees assigned in responsibility positions on various tiers of the company's hierarchy

(manager, deputy manager, assistant manager, head of sector, superintendent, supervisor), 58 (61.70%)

were men and 36 (38.30%) were women.

The women participation among manager, deputy manager, and assistant manager positions reached

31.1%.

B. Respect for employees' and trade union rights

Respect for employees rights

The Company respects the rights of employees and observes the Labor Legislation. In the year 2021, no

control body accused the Company for violations of labor law.

In 2021 there was a case of an employee appeal to the Labor Inspectorate for

unilateral harmful change to the terms of the employment contract.

Page 29 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Trade union rights

The Company, as employer, is liable to (articles 11 e, f, g of GSR):

- Ensure that the trade unions of its employees are regularly informed of all staff-related matters

and of the Company's business activities in general, where those have an impact on

employment relations;

- Not intervene in any manner in the legitimate trade union activities of employees;

- Promote interactive discussion with the representatives of employees, especially with any first-

degree and second-degree trade unions representing its employees in the context of collective

autonomy and informed dialogue.

Also, under Article 14.7 of the GCF, provision is made for discharge of their regular work duties

throughout their tenure (depending on the number of members) during their term of office to

members of trade unions.

Labor legislation

The Company, as employer, is liable to (article 11 a of GSR) comply consistently with all labor

regulations and all individual and Collective Labor Agreements applicable to its staff.

C. Health & Safety

Safety at work for employees is a top priority and a prerequisite for the operation of the Company.

Health and Safety Committee Establishment

Company employees have established a Workers’ Health and Safety Committee (W.H.S.C.), consisting of

their elected representatives in the company.

1. W.H.S.C. or the representative is a consultative body and has the following responsibilities:

(a) studying the company working conditions, proposes measures to improve the working conditions as

well as the working environment, monitors compliance with health and safety measures and contributes

to their implementation by employees,

(b) in cases of serious labor accidents or related incidents, proposes appropriate measures to prevent

recurrence,

address it, by participating in this way in the formulation of company's policy for occupational risk

prevention,

(d) is informed by the management of the occurring occupational accidents’ and occupational diseases’

data,

(e) is informed for the introduction of new production processes, machinery, tools and materials to the

company, or the operation of new installations, insofar as they affect health and safety,

(f) in the event of immediate and serious risk, invites the employer to take the appropriate measures,

without excluding the disruption of the machinery or the installation or the production process,

(g) may seek the assistance of experts on Workers’ Health and Safety Matters, with the agreement of

the employer.

Page 30 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Health and safety conditions

The Company, as employer, is liable (article 11.c of GSR) to take all necessary steps to ensure health and

safety at the workplace.

The Company is liable to ensure proper health and safety conditions for all employees and installations

under its responsibility. For that purpose, it is liable to apply proper health and safety rules by means of

special safety regulations, circulars, announcements and instructions. In particular, the Company is liable to

(article 12.3 of GSR):

1. Ensure, carry out and supervise, through its duly authorised bodies, the implementation of all

preventive, operational or corrective measures and procedures necessary to ensure safe execution of all

Company operations;

2. Train its staff to promptly identify all risks and handle same efficiently, in line with the applicable safety

procedures;

3. Keep the staff thoroughly informed of all applicable regulations establishing minimum health and safety

standards at the workplace, as in force from time to time.

Safety Engineer

The company has two Safety Engineers, in accordance with the applicable Legislation, who provide

indications and advices to the employer, in matters concerning the safety of employees and the prevention

of working accidents (article 14 of Law 3850/2010)

Occupational Physician

The company has an Occupational Doctor, in accordance with the applicable Legislation, who provides

indications and advices to the employer, employees and their representatives, regarding the measures to

be taken for the physical and mental health of employees. (article 14 of Law 3850/2010)

D. Training systems, promoting staff ways, etc.

Education and training programs

The Company, as employer, is liable to ensure, within its powers, that the employees gain all professional

knowledge and are offered good opportunities to develop their skills and maximize their efficiency, to the

benefit of the Company but also for the development of their own career and personality.

Staff training is one of the Company's development objectives, which improves the quality of the services

rendered by the Company and the Company's overall productivity. In this context, the Company plans and

subsidizes staff training programs, either on its own or in cooperation with third-party educational/training

organizations. The staff shall participate in these programs at Company's cost.

Employee's career development

According to article 7.1 of GSR each employee's career development depends primarily on their:

1. Professional experience and scientific expertise;

2. General performance while on duty, primarily in terms of efficiency, initiative and responsibility;

3. Planning and coordination skills;

4. Role in improving the efficiency of inferiors and encouraging them to improve their working

performance;

5. Ongoing training, primarily attendance of educational/training seminars and involvement in

projects or studies relating to their work post.

Page 31 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

5. Financial and Non-Financial performance indicators.

A. Financial indicators and Alternative Performance Measures (APM’s)

Financial indicators showing the Company's financial position are presented in the table below:

Financial Structure ratios

31/12/2021 31/12/2020

1. Current assets 158,012,453.33 131,113,833.15

Τotal assets 526,175,272.31 479,055,785.02

2. Total equity 276,169,642.65 249,434,644.23

Total liabilities 250,005,629.66 229,621,140.79

3. Total equity 276,169,642.65 249,434,644.23

Non-current assets 368,162,818.98 347,941,951.87

4. Current assets 158,012,453.33 131,113,833.15

Current liabilities 42,927,199.62 31,367,852.15

5. Borrowings 44,499,999.99 50,499,999.99

Total equity 276,169,642.65 249,434,644.23

Performance and efficiency ratios

31/12/2021 31/12/2020

6. Profit before income taxes 49,210,993.70 36,974,026.70

Revenue 154,189,971.98 132,902,223.89

7. Profit before income taxes 49,210,993.70 36,974,026.70

Total equity 276,169,642.65 249,434,644.23

8. Gross profit 76,814,354.80 60,198,685.47

Revenue 154,189,971.98 132,902,223.89

9. EBITDA 70,304,423.14 58,000,799.42

Revenue 154,189,971.98 132,902,223.89

30%

27%

110%

109%

75%

72%

368%

418%

16%

20%

32%

28%

18%

15%

50%

45%

46%

44%

The Company uses as Alternative Performance Measures (“APMs”) the ratios No 4, 5 and 9, in the context

of making decisions concerning its financial, operational and strategic planning, as well as assessing and

publishing its performance. These APMs help better understand the Company’s financial and operating

results, financial position and cash flow statement. Alternative performance measures (APMs) must always

be taken into account in combination with the financial results prepared in accordance with International

Financial Reporting Standards (“IFRS”) and will not replace the latter under any circumstances.

B. Non-financial performance indicators

Non-financial performance indicators of PPA S.A. operating activities are set out in the Non-Financial

Report below.

Page 32 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

6. Activity of the Company in the field of research and development

The PPA SA continued to be actively involved in the field of research and development in 2021. PPA SA

cooperates closely with Greek and foreing stakeholders by implementing initiatives towards developing

new technological applications and innovative procedures that create new growth and optimized operation

horizons, ensuring the competiveness and inclusiveness of Port of Piraeus in the relevant decision making.

In 2021, PPA S.A. participated as a partner in thirteen (11) European research and development projects,

which continue to be under implementation in 2021, details of which are shown in the table below:

Program

Project Name

Full Name

Budget

Eu Funding

CEF

Poseidon MED

Poseidon MED II

€ 915,000

50%

CEF

EALING

European flagship action for cold ironing in ports

€ 190,300

50%

ADRION

SUPER-LNG

SUstainability PERformance of LNG-based maritime

mobility

€ 92,200

85%

ADRION

MultiAPPRO

Multidichiplinary approach and solutions to

development of intermodal transport in region

€ 117,260

85%

ADRION

NEORION

Green ShipBuilding

€ 135,535

85%

H2020

PIXEL

Port IoT for Environmental Leverage

€ 274,250

100%

H2020

TRESSPASS

robusT Risk basEd Screening and alert System for

PASSengers

€ 230,625

70%

Η2020

D4Fly

Detecting Document frauD & iDentity on the fly

€ 111,125

100%

CEF

GREEN C

PORTS

Green and Connected Ports (GREEN C PORTS)

€ 455,500

50%

H2020

ARSINOE

Climate Resilient-Regions Through Systemic

Solutions and Innovations

€ 497,500

70%

CEF

CIPORT

Cold Ironing in the Port of Piraeus: Taking the Final

Step

€ 170,000

50%

Page 33 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Within 2021, European research and development projects were submitted for funding, with PPA SA

participating as a partner and whose assessment is expected in 2022. Details of which are shown in the

table below:

Program

Project Name

Full Name

Budget

Eu Funding

ERASMUS-LS

ARGO

Alliance foR innovative and effective

STEM traininG in pOrt-centered supply

chains

€ 121,260

100%

H2020

CONFIDENT

MORE EFFICIENT AND EFFECTIVE

MULTIMODAL FREIGHT TRANSPORT

NODES

€ 586,250

70%

H2020

MAGNOLIA

Performant, Compliant and Responsible

Next-Generation Intelligent Services for

Secure, Privacy-Respective and Trust

Guarantying Data Space€

€ 245,000

100%

H2020

GARDANGELO

A holistic framework for the protection

from environmental crimes

€ 217,500

70%

H2020

SYSTEMIC

A Systemic Approach to Collaborative

Regulatory Risk Management in a Cross-

Sector and Cross-Border Contex

€ 191,250

70%

ADRION

MultiAPPRO Plus

(*)

Multidichiplinary approach and solutions

to development of intermodal transport

in region PLUS

€ 21,700

85%

ADRION

SUPER-LNG Plus

(*)

SUstainability PERformance of LNG-

based maritime mobility PLUS

€ 20,118

85%

CEF

JUST IN TIME

PORTS

Just In Time Arrivals and Port Call

Synchronisation of Ships with Sea Traffic

Management in European Ports

€ 556,000

50%

(*) The MULTIAPPRO PLUS and SUPER-LNG PLUS are two small projects considered as a continuation of the initial

projects MULTIAPPRO and SUPER-LNG respectively. The two PLUS projects were submitted under a restricted call for

proposals of the ADRION programme, addressed to beneficiaries of past ADRION actions, aiming to further upgrade

project results, as well as to mitigate and overcome the negative effects produced by the COVID-19 pandemic crisis,

which partly prevented the wide spreading of projects’ outcomes at territorial level and to relevant stakeholders.

7. Non-Financial Information Report

A. Description of PPA S.A. Business Model

In addition to the Report of the Board of Directors entitled "Development & performance of the Company"

and the brief description of the business model that has taken place, the following are stated:

A1. Evolution of Piraeus Port Authority S.A. (PPA)

PPA is the legal entity entrusted with the administration and operation of the Port of Piraeus. It was

established as a legal entity of public law by virtue of Law 4748/1930, which was restated by Compulsory

Law 1559/1950 and ratified by Law 1630/1951, each as subsequently amended and supplemented. In 1999

PPA was transformed into a stock corporation (société anonyme).

Page 34 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Pursuant to the enabling provisions contained in the thirty-fifth article of Law 2932/2001 (Government

Gazette A’ 145/27.7.2001), the Hellenic Republic and PPA entered into a concession agreement on 13

February 2002 (2002 HRCA). In the 2002 HRCA, the Hellenic Republic granted PPA the exclusive right of use

and exploitation of the land, buildings and infrastructure comprising the Port of Piraeus, for an initial term

of forty years, and subject to further terms and conditions. Certain amendments to the 2002 Agreement,

including the extension of the concession’s term by ten years, were authorised on behalf of the Hellenic

Republic by virtue of a joint ministerial decision on 19 November 2008 (Government Gazette B’

2372/21.11.2008). These amendments were agreed upon in an addendum to the 2002 Agreement

executed between the Hellenic Republic and PPA on 18 November 2008 (the 2008 HRCA). The 2002

Agreement, as amended by the 2008 Addendum (together the Old Concession Agreement), was

subsequently ratified by virtue of the first and third article of Law 3654/2008 (Government Gazette A’

57/03.04.2008).

In April 2016, following an open international public tender process, the Hellenic Republic Asset

Development Fund (HRADF), under its capacity as the major shareholder of PPA, and COSCO HK Ltd entered

into a Shares Purchase Agreement (hereinafter: SPA) for the acquisition of the majority participation of the

share capital of PPA. In August 2016, after the satisfaction of certain conditions precedent, the SPA was

affected by the execution of the transaction and the transfer of PPA’s majority shares from HRADF to

COSCO HK Ltd and PPA S.A. ceased to be a state-owned company and since that day it is a private-owned

company.

In the framework of the Privatization Process and as envisaged and permitted by the Old Concession

Agreement (including, without limitation, article 15.1(iii) thereof), the Hellenic Republic and PPA engaged in

negotiations, resulting in the finalization and conclusion of a new amendment of the Old Concession

Agreement, which was finally signed by the parties on 29/06/2016 and ratified by law 4404/2016

(Government Gazette A’ 126/08.07.2016).

The objective of the Company is to perform its obligations, conduct its activities and exercise its faculties

under or in respect of the concession agreement between the Company and the Hellenic Republic dated 13

February 2002 regarding the use and exploitation of certain areas and assets within the Port of Piraeus, as

amended and in force (the “Concession Agreement”), in accordance with the law.

For the purpose of attaining its object under paragraph 1 above, the Company may, by way of an illustrative

but no means exhaustive list, conduct and engage in the following activities:

(a) use all rights assigned to the Company pursuant to the CA and maintain, utilize and exploit all

concession assets in accordance with the Concession Agreement;

(b) provide services and facilities to vessels, cargo and passengers, including ship berthing and cargo and

passenger handling to and from the port;

(d) undertake any activities related to the port and all other commercial activities associated with or

reasonably incidental to the operation of the port of Piraeus;

(e) engage third parties to provide any kind of port services;

(f) award contracts for works;

(g) engage in such further activities as are prudent or customary for the proper conduct of its business and

operations in accordance with the Concession Agreement; and

(h) engage in any and all activities, transactions or operations of a type that are conducted by commercial

corporations generally.

Page 35 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

A.2 Evolution of Business Activities

Cruise Activity

With the resumption of the Cruise Industry in Greece on 14 May, 2021, the industry gradually achieved

growth both in terms of arrivals and passenger traffic. Piraeus succeeded in serving a significant number of

cruise ship arrivals while implementing the required COVID-19 Health Protocols. The total passenger traffic

in 2021 amounted to 303,665 compared to 16,640 in 2020, recording an increase of 1,724.9%. Cruise ship

arrivals also increased by 398.7% with 379 arrivals compared to 76 last year.

Coastal Shipping Activity

Following the lifting of restrictive measures of inland sea transport in our country, the activity of coastal

shipping recorded an increase in ship routes and passenger/vehicle flows compared to the previous year.

The total passenger volume, in 2021, on the domestic lines recorded an increase of 14.7% with 11,896,187

compared to 10,372,523 passengers in 2020. Also, an increase of 11.1% is recorded in the sector of

vehicles’ traffic, 2,521,898 in 2021 compared to 2,270,845 in 2020.

Car Terminal

The performance of the Car Terminal in 2021 has significantly improved, recording an increase of 40.6%

due to the increase in both local and transshipment cargoes. Total volume was 429,213 vehicles compared

to 305,190 in 2020. Local volumes increased by 14.8% (from 87,310 in 2020 to 100,225 in 2021) as well as

transshipment volumes increased significantly by 51% (from 217,880 in 2020 to 328,988 in 2021).

Container Terminal

Container Terminal remained fully operational throughout 2021.

The total volume of Pier I increased by 13.9% (from 540,591 in 2020 to 615,510 TEUs in 2021) due to the

increase in transshipment volumes and a significant increase in local volumes.

The transshipment volumes increased by 7.8% (from 445,949 in 2020 to 480,912 TEUs in 2021), mainly due

to the contribution of the COSCO Shipping group while the local cargo increased by 42.2% (from 94,642 in

2020 to 134,598 TEUs in 2021) corresponding to the increase in imports/exports observed in the Greek

economy

Ship Repair Activity

In the field of dry-docks, 141 vessels were accommodated in 2021 compared to 121 in 2020 (+ 16.5%),

while the total dry-docking days increased by 21.2% (from 958 to 1,161 days). There was also an increase in

vessels in the Ship Repair Zone with 264 ships in 2021 compared to 254 the previous year (+4%). The

measures and consequences of the pandemic encouraged the undertaking of repair works even from 2020

and the upward trend continued in 2021.

A.3 International Conditions – Prospects

The nature of PPA’s business activities depends on numerous domestic and external macroeconomic and

geopolitical impact with a focus on the countries of the Southeastern Mediterranean and the countries

served through the port of Piraeus. It is further affected by developments in the global port industry in

general, as well as the development of individual port activities that are largely related to both PPA’s

investment program and the level of service provided to port users.

https://www.statistics.gr/documents/20181/766fa722-e657-a6b0-e1b1-9ab1c5f9ac39

Page 36 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

On March 11, 2020, the World Health Organization (WHO) officially declared COVID-19 as a pandemic. The

duration and extent of the economic impact of the pandemic on the port related activities still involves

significant uncertainty. Despite the pandemic, the port of Piraeus continued providing services to all sectors

without interruption, by adjusting the operational model for the strict implementation of hygiene

protocols. Although most economies have performed without full-scale lockdowns on 2021, measures

taken on 2020 have disrupted supply chains and as a result very high transportation rates have been

displayed, vessels experienced longer service times and cargoes remained at ports for a longer period

. As

long as current situation remains the same for 2022 there is a possibility of rearrangement of supply chains

as high rates in the Asia-Europe route are pushing importers to alternative, shorter sources of supply.

The commercial port of Piraeus operated without significant increase in cargo service times until the 3

quarter of the year, retaining a fragile balance. Due to the unusual number of days of harsh weather

conditions (September

, November

and December

) and strikes outside of Company’s authority, container

and car terminals are currently operating under high percentages of capacity utilization. This fact has forced

the intensification of available spaces utilization as well as finding temporary solutions for the storage of

cargoes. Subject situation although has been created by external factors is indicative of the necessity of

expanding commercial infrastructure of both container terminal and car terminal as well.

Specifically, container terminal has remained fully operational throughout 2021 and has recorded an

increase of 13.9%. Significant increase has been displayed in the local cargo traffic where an increase of

42.2% compared to 2020 and 25.1% compared to 2019 is displayed (134,598 TEUs in 2021 whereas 107,608

in 2019). This is attributable to the deferred demand as well as the strategic synergies agreed between

container terminals of PPA S.A. and PCT S.A.

In the car terminal sector, the disruption of production chains due to lack of microchips which is severely

affecting European factories is specifically obvious

Car production factories have suspended their operations or have drastically limited their production

during the peak of the pandemic in the beginnings of spring

. As a result, passenger car registrations in the

EU are displaying a decrease during the last 5 months. Due to the efforts of car production groups to cope

with the demand, an increase is displayed in the average cargo per vessel and as a result terminal is

operating in almost maximum capacity concerning storage area. The increased flows towards Black Sea as a

result of the supplying of the area via sea instead of the alternative via the Baltic have further contributed

to this situation. Despite the fact that the terminal is operating in almost full capacity since the 2

half of

2021, an increase of 51% in transshipment traffic has been displayed, exceeding even 2019 traffic. Current

situation in transshipment volumes is estimated to continue at least for the 1

half of 2022.

UNCTAD. (2021). REVIEW OF MARITIME TRANSPORT 2021 (p. 16). United Nations Publications. Retrieved from

https://unctad.org/webflyer/review-maritime-transport-2021

https://www.protothema.gr/greece/article/1158585/apagoreutiko-apoplou-logo-ishuron-anemon-se-peiraia-laurio-

kai-rafina/

https://www.protothema.gr/greece/article/1185593/kairos-kakokairia-mehri-kai-tin-triti-me-ishures-kataigides-apo-

ta-dutika-epikindunes-vrohes-kai-stin-attiki/

https://www.cnn.gr/ellada/story/294074/kakokairia-karmel-aeroplano-pros-hrakleio-epistrefei-stin-athina-logo-

thyellodon-anemon

https://www.acea.auto/message-dg/chip-shortage-auto-industry-calls-for-more-eu-made-semiconductors/

Page 37 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Car imports in Greece recorded an increase of 27.8% in the first 11 months of 2021 compared to 2020

Despite the fact that since August there is a negative display compared to 2020, this is estimated to be a

result of delivery delays instead of decreased demand.

In the cruise sector, after the almost complete suspension of 2020, cruise operations in Piraeus have

restarted on 14 May of 2021, sooner than any other Mediterranean port. The port of Piraeus, by keeping

close cooperation with relevant Authorities and by implementing reliable protection protocols combined

with operational adjustments, has managed to attract significant number of cruise vessels. In this respect,

Piraeus managed to serve 379 vessels (compared to 76 in 2020) out of which 220 as homeport calls

(compared to 13 in 2020). Number of cruise vessels that have been served in Piraeus amid the special

circumstances of the pandemic is deemed satisfying compared to other traditional Mediterranean ports

but the number of passengers remains quite low in relation to the capacity of vessels that have called the

port. Although cruise vessels pre-bookings are increased for 2022 even compared to 2019, the volatility of

the pandemic conditions is calling for conservative optimism. Nevertheless, the successful handling of the

pandemic and the increased vessel calls compared to competition are indicative that the strategy of

expanding cruise infrastructure in Piraeus is well-founded. Cruise port expansion which is already

undergoing will allow port of Piraeus to capitalize on the successful handling of cruise during the years of

the pandemic, consolidating port of Piraeus use as a homeport.

In the coastal terminal sector in 2021, an increase of passenger and vehicle flows is recorded without

though traffic reaching 2019 volumes. This is due to the reduction of demand for transportation to islands

due to the pandemic, due to the fact that tourist flows although increased are still behind the pre-

pandemic levels as well as due to the restrictions in vessel capacity utilization. Total passenger and vehicle

traffic in 2021 have recorded an increase of 14.7% (11,896,187 passengers in 2021 whereas 10,372,523 in

2020) and 11.1% (2,521,898 vehicles in 2021 whereas 2,270,845 in 2020) respectively. This is still behind

2019 volumes though by 28.1% (11,896,187 passengers in 2021 whereas 16,551,054 in 2019) and 8.0%

(2,521,898 vehicles in 2021 whereas 2,742,213 in 2020) respectively. Based on these business conditions,

the business viability of certain ferry companies is negatively impacted and is estimated that this will affect

the number of active companies and vessels in the port.

In the ship-repair sector, an increase of 4% in the number of vessels in the Ship-repair zone is recorded

(from 254 in 2020 to 264 in 2021) and by 16.5% in the dry-docks (from 121 in 2020 to 141 in 2021). An

increase is also recorded in total days of utilization which increased by 21.2% (from 958 in 2020 to 1161

days in 2021). Despite the increased attraction of vessels, revenues recorded a decrease of 6% due to the

decrease of utilization of the larger docks in contrast to the smaller docks due to vessel size. An increase is

also recorded in the number of stern-berthing compared to side-berthing mainly due to decreased

availability of berthing positions as a result of the Company’s investment plan.

https://seaa.gr/wp-content/uploads/2021/12/2021-11-PC-YTD.pdf

Page 38 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

B. Policies and Due Diligence

B1. Policies and Due Diligence for environmental issues

PPA S.A. implements Land and Marine Pollution Contingency Plans, approved by the competent Ministry,

for dealing with oil pollution incidents and other harmful substances in the port area. Emergency situations

are fully covered by the aforementioned contingency plans.

During the year 2021, 22 incidents of marine pollution and 9 incidents of land pollution were recorded in

the area of responsibility of PPA SA (compared to 6 incidents in the marine environment and 9 incidents in

the land area in 2020). All the incidents were of small-scale and were addressed by PPA S.A. directly and

effectively.

The marine pollution incidents were related to petroleum pollution or oils, and from materials and waste

due to heavy rainfall. Incidents of land pollution involved petroleum related leaks or machine oils leaks.

B2. Policies and Due Diligence for safety issues

At high-risk areas (Container Terminal and Perama Ship Repair Zone) the Company provides two

ambulances with trained rescue personnel (two rescuers per vehicle) that are available 24/7, to cover

emergencies that may occur in the above mentioned areas.

B3. Due Diligence Policies for Regulatory Issues

To comply with the requirements of the Concession Agreement dated 24 June 2016 concluded between the

Hellenic Republic and Piraeus Port Authority S.A. regarding the Use and Exploitation of Certain Areas and

Assets within the Piraeus Port, by decision of the Company Management was established a Monitoring

Committee of the above concession.

The task of this Committee, in which nine (9) staff members of PPA S.A. and two (2) external legal

counselors participate, is to monitor, control and coordinate each responsible PPA S.A. Department actions,

relating to the implementation and compliance with the terms of the June 24

2016 Concession

Agreement, within the designated timelines.

The Concession Agreement Monitoring Committee regularly submits progress reports to the Management

of the Company for any issue related to the Concession Agreement follow up.

B4. Outcome of Policies Issues

Outcome of Policies for environmental protection issues

The results of the policies on environmental protection issues are analyzed in a next chapter of this

Non-Financial Information Report entitled "Environmental Issues - Non- financial indicators for

environmental performance”.

Outcome of Policies for Safety Issues

The results of the policies on working safety are analyzed in a next chapter of the Non-Financial Report

entitled "Employee Issues - Safety working conditions”.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Outcome of Due Diligence Policies for Regulatory Issues

The established Monitoring Committee of the Concession Agreement of 24 June 2016 of the Hellenic

Republic and PPA S.A. met eleven (11) times in the year 2021, controlling in any case the obligations arising

for the Company under the above contract and submitted duly completed, within the predetermined date

the Compliance Certificate of 2021, as defined in Article 14.1 (c) of the Concession Agreement.

C. Risk Policy & Management of These Risks

C1. Risk Policy

Piraeus Port Authority S.A. aims to provide high quality, efficient and safe port services in a sustainable

manner, contribute to local and national economy, strengthen the port’s position and achieve sustainable

growth.

Various factors such as internal and external issues, interested parties’ needs & expectations could be

considered as possible risks that can or could negatively affect the company in achieving its objectives and

strategy and therefore it is vital to be identified and addressed.

The Company determines, evaluates and addresses any possible risks in order to:

- achieve its mission, vision, profit, objectives, policy, customer satisfaction, legal and other obligations

compliance, enhancement of environmental and energy performance

- enhance desirable effects

- prevent or reduce undesired effects, including the potential for external environmental conditions to

affect the organization

- achieve continual improvement

PPA’s Top Management is committed to ensure the continuing effort to address all risks involved with its

operation and undertake all necessary proactive actions.

C2. Risk Management Process

PPA S.A. is promoting awareness of risk-based thinking to all its departments in order to protect its values

and address uncertainty and address the uncertainty and insecurity that is largely due to the international

environment. Therefore, each business unit is responsible to implement a risk assessment procedure.

The Company has approved a Risk Management function, which is functionally independent. The main

mission of Risk Management is the effective risk management of risks undertaken by the Company as a

prerequisite for high standards of Corporate Governance and leads to high efficiency and optimal business

performance.

Its purpose is the preparation and implementation of an appropriate methodology for identifying, assessing

and managing the Company's risks according to defined criteria and the general coordination of the process

through the Company's Departments. Risk Management must have the ability of understanding on

important future changes, having at the same time the appropriate strategically treatment.

Risk Management has direct access to all the elements which are necessary for the proper performance of

its duties and submits written reports to Top Management regarding the implementation of appropriate

and effective policies, procedures and tools (such as keeping a risk register) on the determination, analysis,

control, management and monitoring of any kind of risk inherent to the operation of the Company.

Risk management carries out the responsibilities assigned by Law 4706/2020, decision 1/891/30-9-2020 of

the Hellenic Capital Market Commission’s Board of Directors and the best practices framework.

Page 40 of 161

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(amounts in Euro unless stated otherwise)

The main purpose of the document is to establish the general Risk Management Framework which consists

of the following:

➢ Identification of potential incidents that may affect the Company and the determination of levels of

risk deemed acceptable for the Group.

➢ Implementation of the relevant methodology regarding the identification, evaluation and

management of risks for their proper and effective / appropriate management and prioritization.

➢ Structured approach to risk management which is the basis for the provision of assurances

regarding the achievement of the Company 's business objectives.

The purpose of this Policy is not to eliminate the risk, but to effectively manage the risks involved in the

activities of the Company and its subsidiaries in order to maximize opportunities and minimize adverse

effects.

Specifically, the organization:

➢ Ensures that risk management is an integral part of all decision-making processes of the Company

and its subsidiaries.

➢ Evaluates and improves risk management policies, procedures and systems.

➢ Understands and monitors the risks associated with the strategy and business objectives.

➢ Informs the Management about any new significant risk and related safety controls.

➢ Provides appropriate risk management training to management and staff.

➢ Evaluation of actions’ effectiveness through monitoring Key Performance Indicators (KPIs). This

process is monitored by the Quality Control and Inspection Dept through Internal Audits conducted

at all company’s departments. The above process is coordinated by the Quality Control and

Inspection Department, which provides support to each department for training as well as for the

necessary review and updating of risk assessment.

The review and update are carried out at least once a year and necessarily before the implementation of

any change, so that the Company is informed in a timely manner about the upcoming changes to which it

must react and prepare accordingly. Documented information as evidence of the results of monitoring and

measuring the actions taken, is maintained by each competent department as well as by the Department of

Quality Control and Inspection. During the Management Review, the Quality Control and Inspection

Department presents all the necessary information and data on the progress and effectiveness of the

actions taken to address the risks.

The above procedure is included in PPA’s Procedures’ Manual that has been approved by Top

Management’s decision. The same approach is also followed for energy related matters within the

framework of the Energy Management Certification as per ISO 50001:2018 standard under the

coordination of PPA SA ‘s Energy Management Team. The company determines, evaluates and addresses

any possible risks related to energy in order to improve energy performance. Significant Energy Uses are

defined through Annual Energy Reviews. During Management Reviews by the Top Management, all

necessary information and data on the energy performance, the progress and effectiveness of actions

taken to address energy related risks are presented to Top Management for further decision making. Thus,

achieving continual improvement.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

C3. Main Business Risks and Uncertainties

General economic environment

The maintenance of the stable economic environment in the country is directly related to the volumes of

imports and exports and consequently to the volumes of serviced goods that offer the highest average

income to the Company. Although the estimates and indications for the economic climate of 2022 in the

first months of the year are positive, the pandemic data have structurally changed the economic

environment, affecting the transport chains and the degree of risk from health reasons, mainly in the cruise

industry where the risks from any new outbreak remain. Regardless of the economic impact that varies

between sectors, the pandemic has highlighted the importance of the time factor in impact assessment.

Since the beginning of the pandemic, the Company has made assessments of the financial impact on its

operation and constantly monitors on a daily basis the developments in the directly related sectors such as

cruise, coastal shipping and the production chains of final products and vehicles in order to assess and take

risk mitigation measures. In addition to the effects of the pandemic, significant geopolitical liquidity is being

recorded in the eastern Mediterranean and the Black Sea, further exacerbating uncertainty about trade

flows and volumes. The Company also monitors the developments in this field and makes assessments for

any positive or negative effects on the transhipment volumes.

Economic instability

Geopolitical and economic instability in the countries of North Africa, Asian Mediterranean and Black Sea

can negatively affect the transit loads served by Piraeus. The slide of the Turkish pound made Turkish

exports more competitive but at the same time hit domestic demand and made it difficult to import raw

materials, creating instability to an important economic partner for Greece. For the risk mitigation, the

Company aims to strengthen and develop a rail link with Central Europe and seeks cargo and customers to

extend the port inland to the north, reducing the dependence on markets with maritime borders to the

south and southeast.

Energy Policy

The recent sharp increase of electricity prices due to numerous factors affects the Company’s operating

costs to a significant decree. The Company has taken into account this burden and adjusts its charges, while

it is in discussions with the energy provider to find the best solution to avoid unexpected differences in

operating costs from rising electricity prices.

The Green Deal policy creates the prospect of using natural gas as a marine fuel. The Company in

cooperation with the sellers and distribution of natural gas participates in a European funding program with

the aim of implementing competent solutions and infrastructures so that the ships in the port can be

supplied with natural gas. In this way, the Company aims to maintain its competitive advantage, as well as

to comply with the regulatory requirements of the European Directives.

Non- expanded customer base (Container Terminal)

The Company, through the cooperation with the neighboring container terminal under PCT S.A., managed

to significantly alleviate the very high dependence it had for many years from a customer. In 2021, the

cooperation with PCT S.A. contributed approximately at 55% to the total shipment. In addition to the above

action, the Company has adopted a customer-centric character while at the same time implementing an

aggressive policy to attract new customers. However, the structure of the container transport market

provides limited options for attracting new cargo in the short term.

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(amounts in Euro unless stated otherwise)

Geopolitical conditions

Piraeus, which relies mainly on transit cargo from Asia due to its distance from EU production centers,

could lose competitiveness. But at the same time, changing the supply chain also provides opportunities.

The Company has intensified discussions with European and Asian car manufacturers to point out the

benefits of Piraeus. The tension in Ukraine and Kazakhstan that may lead to further deterioration of the

prices of raw materials for electricity generation is a risk for the financial planning of the Company. To

address the risk, the company adjusts its tariffs and is in discussions with the energy provider to find the

best solution to avoid sharp differences in operating costs from rising electricity prices.

D. Financial and Non-Financial Performance Indicators ESG

A detailed presentation of a mixture of general and sectoral indicators took place in the module Business

Model - Evolution of Business Activities with a distinct reference to traffic data of each Company's business

sector (Cruise, Coastal Shipping, Car Terminal, Container Terminal, and Ship Repair).

It is pointed out that, PPA SA has included all the elements of non-financial information in the Corporate

Responsibility and Sustainable Development Report 2021 which will be created and published based on the

international standard Global Reporting Initiative (GRI), version. The Report will be uploaded on the

corporate website (www.olp.gr) in the section "Social Responsibility".

In addition, PPA SA recognizing that the international ESG indicators (in the already published Corporate

Responsibility and Sustainable Development Report 2020, there is a special reference to ESG issues entitled

"ESG Data Scorecard") are a strategic tool for investor support in the context of identifying risks and

opportunities associated with the viability of their investment portfolio and responding at the same time to

the challenges of the new environment, builds a sustainable development strategy, aiming to minimize the

negative impact that its activities may have.

The Company's long-term commitment to Sustainable Development has already led to its participation

(August 2020) in the new ATHEX ESG index of the Athens Stock Exchange, in the initial composition of

which 35 companies participate, including PPA SA.

As demonstrated in the Corporate Governance Statement, PPA SA attaches great importance to

Sustainable Development and taking into account both the new legislation on Corporate Governance and

the principles of Taxonomy (EU Taxonomy).

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

EU Taxonomy

The Taxonomy Regulation is a key component of the European Commission’s action plan to redirect capital

flows towards a more sustainable economy. The EU Taxonomy is a classification system, of activities that

can under certain conditions be considered as environmentally sustainable or as activities that enable the

transition to environmental sustainability. Under the Taxonomy regulation, companies and organizations

can attract funds to develop their sustainable activities as well as expand them further, provided they meet

certain criteria. The compliance with said criteria is monitored continuously and reported on an annual

basis, included in the non-financial section of the respective annual report.

Taxonomy-eligible economic activity means an economic activity that is described in the delegated acts

supplementing the Taxonomy Regulation.

The key performance indicators (“KPIs”) include the turnover KPI, the Capex KPI and the Opex KPI. For the

reporting period 2021, the KPIs in relation to Taxonomy-eligible and Taxonomy-non-eligible economic

activities (Art. 10 (2) of the Art. 8 Delegated Act) are as follows:

Eligible

Non-eligible

€000

Turnover

74.171.3

48.10%

80,018.7

51.90%

CapEx

35,422.1

91.01%

3,500.8

8.99%

OpEx

935,9

35.09%

1,731.3

64.91%

On a voluntary basis, we provide below the split of the turnover, Capex and Opex KPI per Taxonomy-eligible

economic activity to report more transparently on our KPIs. The calculation of these numbers is based on

the same accounting policies as for the mandatory KPIs.

Activity

Turnover

CapEx

OpEx

€000

Electricity generation

using solar photovoltaic

technology

36.3

0.02%

0.0

6.0

0.22%

Vessels for port

operations and auxiliary

activities

4,748.2

3.08%

210.6

0.54%

187.2

7.02%

Infrastructure for water

transport

69,386.8

45.00%

35,211.5

90.46%

742.7

27.85%

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(amounts in Euro unless stated otherwise)

Qualitative information

Accounting Policy

I. Τurnover KPI. The proportion of Taxonomy-eligible economic activities from the total turnover has been

calculated based on the net turnover from services corresponding to Taxonomy-eligible activities

(numerator), divided by the total net turnover (denominator), both of which referring to FY2021. The

denominator of the turnover KPI is based on the net turnover in accordance with IAS 1.82(a). Specifically, the

total turnover of PPA SA is presented in the “Revenue” line of the “Statement of Comprehensive Income for

the year ended December 31, 2021” of the Company.

II. CapEx KPI. The CapEx KPI is defined as Taxonomy-eligible Capex (numerator) divided by total Capex

(denominator). As for the reporting period 2021, we only report in the numerator on CAPEX from taxonomy-

eligible economic activities, as there are no CapEx plans to upgrade a taxonomy-eligible economic activity to

become taxonomy-aligned or to expand a taxonomy-aligned economic activity. In addition, we have not

reported purchases of output from taxonomy-eligible economic activities and individual measures, enabling

certain target activities, as reliable statements on the taxonomy-alignment of our suppliers’ output are

currently not available and we are not obliged to assess the taxonomy-alignment of our individual measures

for the purposes of the simplified reporting. The total capital expenditure contains the additions to property,

plant and equipment as well as intangible assets and right-of-use assets during the fiscal year, before

accounting for depreciation, amortization and any re-measurements, including those resulting from any

impairments.The total capital expenditure is can be reconciled to the sum of the following main items in line

“Additions” in “Property, Plant & Equipment” (Note 4), line “Additions” in “Right of use assets – Lease

liabilities” (Note 5), as well as line “Additions” in “Intangible Assets” (Note 7) in the “Annual Financial Report

for the year ended December 31, 2021”.

III. OpEx KPI. The Opex KPI is defined as Taxonomy-eligible Opex (numerator) divided by our total Opex

(denominator). The definition of EU Taxonomy for the operational expenses includes expenses for research

and development, renovation of buildings, maintenance and repair, as well as any other direct expenses

related to the day-to-day maintenance of property, plant and equipment. Total Opex consists of direct non-

capitalised costs relating to repair and maintenance and short term leases (denominator). It does not include

expenditures relating to the day-to-day operation of PP&E such as: raw materials, cost of employees

operating the machine, electricity or fluids that are necessary to operate PP&E. Similar to CAPEX above, for

the reporting period 2021 we only report in the numerator on OpeX from taxonomy-eligible economic

activities, as there are no Opex plans to upgrade a taxonomy-eligible economic activity to become taxonomy-

aligned or to expand a taxonomy-aligned economic activity. In addition, we have not reported purchases of

output from taxonomy-eligible economic activities and individual measures, enabling certain target activities,

as reliable statements on the taxonomy-alignment of our suppliers’ output are currently not available and we

are not obliged to assess the taxonomy-alignment of our individual measures for the purposes of the

simplified reporting.. The total operational expenses of PPA SA are presented in Note 24 “Analysis of

expenses” and specifically in the breakdown of “Third-party services” as well as in “Right of use assets –

Lease liabilities” (Note 5) referring to the lease expense of less than 12 months in the “Annual Financial

Report for the year ended December 31, 2021”. The accounting principles used in the preparation of the

table presented above are outlined in Note 3 “Principal Accounting Policies” in the “Annual Financial Report

for the year ended December 31, 2021”. The financial report of PPA SA has been prepared in accordance

with International Financial Reporting Standards (IFRS) as adopted by the European Union (E.U.).

The current section is included in the Non-Financial Information Report for the first time, as stipulated in EU

Regulation 2020/852. The information presented herein abide by the Regulation’s requirements and the

Delegated Acts issued as of the time of this publication. The related guidelines have a relative margin of

interpretation and are constantly involving to adjust to the needs of the process. Following this, PPA SA will

pay close attention to the related developments and will adjust its approach accordingly regarding the

assumptions and applicable methodology.

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(amounts in Euro unless stated otherwise)

Construction or operation of electricity generation facilities that produce electricity using solar

photovoltaic (PV) technology

Activity

eligibility breakdown

€000

Turnover

Eligible

36.3

0.02%

CapEx

Eligible

0.0

OpEx

Eligible

6.0

0.22%

Taxonomy activity description: Construction or operation of electricity generation facilities that produce

electricity using solar photovoltaic (PV) technology

This activity consists of the construction or operation of electricity generation facilities that produce

electricity using solar photovoltaic (PV) technology.

Eligible PPA activity description: The Company constructed in 2016 a 430 kWp photovoltaic plant which

has been operating within the Container Terminal area, generating energy from solar panels. The

photovoltaic power plant is connected to the national grid and all the energy generated is supplied to the

local medium voltage grid. The installation enhances the use of Renewable Energy Sources (RES) in the port

area by providing “green” power to the grid thus contributing to avoiding the GHG emission that would be

generated by a power plant that would utilize fossil fuels. The production levels were slightly reduced

between 2020 (676.66 kWh) and 2021 (639.61 kWh).

Vessels for port operations and auxiliary activities

Activity

eligibility breakdown

€000

Turnover

Eligible

4,748.2

3.08%

CapEx

Eligible

210.6

0.54%

OpEx

Eligible

187.2

7.02%

Taxonomy activity description: Sea and coastal freight water transport, vessels for port operations and

auxiliary activities

This activity consists of the purchase, financing, chartering (with or without crew) and operation of vessels

designed and equipped for transport of freight or for the combined transport of freight and passengers on

sea or coastal waters, whether scheduled or not. Moreover, the activity includes the purchase, financing,

renting and operation of vessels required for port operations and auxiliary activities, such as tugboats,

mooring vessels, pilot vessels, salvage vessels and ice-breakers.

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(amounts in Euro unless stated otherwise)

Eligible PPA activity description

The Company owns and operates 3 floating tanks (elevators) that are used in shipbuilding and ship

repairing operations as auxiliary equipment/infrastructure. These vessels, play an integral part in the

processes of shipbuilding and ship repairs as they enable the total removal of ships from the sea in order to

be tended to properly. The vessels function with the use of electricity and batteries thus reducing their

direct GHG emissions significantly and contributing to the reduction of the ship repair operations’ emissions

output.

Infrastructure for water transport

Activity

eligibility breakdown

€000

Turnover

Eligible

69,386.8

45.00%

CapEx

Eligible

35,211.5

90.46%

OpEx

Eligible

742.7

27.85%

Taxonomy activity description: Infrastructure for water transport

This activity consists of the construction, modernization and operation of waterways, harbor and rivers

works, pleasure ports, locks, dams and dykes and other, including the provision of architectural services,

engineering services, drafting services, building inspection services and surveying and mapping services and

the like as well as the performance of physical, chemical and other analytical testing of all types of

materials and products and excludes project management activities related to civil engineering works.

Eligible PPA activity description

The Company owns and operates the port of Piraeus, the largest port in Greece and its surrounding area,

including facilities and infrastructure for commercial purposes. In the framework of its operations, the

Company also undertakes maintenance and modernization tasks of said facilities. The services provided to

incoming marine traffic include inter alia the provision of shore-side services vessels at berth, loading,

unloading and transshipment of goods.

Minimum Safeguards

Corporate Responsibility is an integral part of our operations. Creating relationships of trust and

cooperation with local communities is a Management priority which seeks to establish a sustainable

development model focused on environmental protection, charity work and the support of

education,sports and cultural activities, to the best of the Company’s ability.

The Company acknowledges that development of its human resources is the cornerstone in achieving its

goals. Through understanding and respecting employee needs and applying merit-based criteria, the

Company ensures the ongoing training and development of its employees, considering the needs of PPA

S.A. and the protection of corporate interests.

At PPA S.A. we uphold the United Nations 2030 Agenda, as such is represented by the 17 Sustainable

Development Goals for 2030.

Our intention is to actively contribute to their achievement by promoting the population’s well-being and

security, protecting the environment and combating poverty.

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(amounts in Euro unless stated otherwise)

Our priority is to achieve those goals directly linked to the activities and challenges specific to our sector

and to all material aspects arising from this report. The table below details how our programmes and

actions are associated with the Sustainable Development Goals.

OECD Guidelines for Multinational Enterprises

During 2020, the Company has established the “PPA S.A. Code of Conduct”, which was distributed to all

staff and members of the Management. The PPA S.A. Code of Conduct has been developed taking into

account the OECD Guidelines for Multinational Enterprises. At PPA S.A. we consider our people as our most

valuable asset. We thus invest in our human resources in order to maximise their efficiency, organisation

and the services they provide. We take steps to ensure responsibly excellent working conditions, benefits,

advantages and training and advancement opportunities for our people, even in the difficult circumstances

that we had to face in 2020 due to the COVID-19 pandemic.

Responsible Risk Management Policy

PPA S.A. aims to provide high-quality and efficient port services safely, contribute to the local and national

economy and strengthen the port’s position through sustainable development. Various factors, such as

internal and external issues or stakeholders’ needs and expectations, could be seen as potential risks that

negatively affect or may negatively affect the Company in achieving its objectives and strategy; therefore, it

is necessary to identify them in order to be able to address them. The Company’s Management undertakes

to ensure that continuous efforts are made to address all risks associated with its operation and take all

necessary preventive actions. PPA S.A. promotes risk-based thinking in all its Departments to protect the

Company’s values and address uncertainty. Each Business Unit is therefore responsible for the

implementation of a risk assessment procedure.

Respect of Human and Labour Rights

The Company respects human rights as well as the rights of employees and observes the Labour legislation.

To this end, the following issues are material to the Company.

Employee Associations

There are four first-degree Associations (Association of Permanent Employees, Association of Technicians &

Operators, Association of Dockworkers, Association of Supervisors - Foremen) and one second-degree

Association (Federation of Permanent Port Employees of Greece) at PPA S.A. The Company’s Management

is in close cooperation with the employees’ representatives to ensure the proper functioning of its services

and to promote the common interests of the Company and its employees.

Diversity, Equal Opportunities and Non-Discrimination

The Company’s basic principles include the promotion of equal opportunities and the protection of

diversity. The Company’s Management makes no discrimination in terms of personnel recruiting or

selection, earnings, training, assignment of work-related tasks or other work activities.

The Company favours respecting the diversity of each employee and does not tolerate any behavior that

could lead to discrimination of any form.

At PPA S.A., the experience, personality, theoretical training, qualifications, efficiency and competences of

each individual are the main factors that determine their choice for more complex and demanding

positions of responsibility. Characteristics related to candidates’ gender, age, religion, origin and colour,

physical particularities or beliefs are not reasons for their preference or exclusion. In this way, we promote

a climate of equality, which in turn is anchored in respect for diversity and human dignity. At the same

time, we have put in place three key tools for supporting equal opportunities and diversity.

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(amounts in Euro unless stated otherwise)

Furthermore, in accordance with the applicable Enterprise-Level Collective Labour Agreement, we provide

our employees with a series of additional benefits, in order to meet their medical and financial needs, thus

contributing to the health and well-being of their families. These benefits testify to our intent to invest in

our employees and our commitment to providing a quality work environment.

Occupational health and safety

PPA S.A. acknowledges the importance of ensuring safe conditions and workplaces for its personnel, as well

as safe transportation conditions for all involved parties, customers, passengers, etc. Safety at work for

employees is a top priority and a prerequisite for the Company’s operation.

The Company as an employer is obliged to take all appropriate measures to protect the safety and health of

employees in the workplace.

PPA S.A. ensures health and safety conditions for employees and their areas of responsibility. We thus

establish health and safety rules through circulars, announcements and instructions.

Stakeholders communication and engagement

As a business organisation that prioritises transparency and continuous communication of its actions, we

systematically interact with our Stakeholders, who form either part of the Company’s internal environment

(Shareholders, Employees) or external environment (Suppliers, Customers, Local Communities, NGO

Representatives) and are directly or indirectly affected by our actions. Our main concern is to be in constant

and active communication with our stakeholders, with the aim of building mutual trust and excellent

cooperation. Maintaining the dialogue and interaction with each of our key stakeholders and improving our

relationship with them, is particularly important to identify their needs and expectations which are

essential for our operations.

More information can be found in the annual Corporate Responsibility and Sustainability Report at

https://www.olp.gr/en/corporate-responsibility/social-responsibility.

D1. Environmental Issues

PPA S.A. recognizes that the resources consumption must be granted in an efficient way across the port

sector. Piraeus’ port nature and size favors a high amount of daily energy consumption (e.g. ship-to-shore

cranes, terminals lighting, reefer containers, administration buildings, workshops). PPA S.A. raises

awareness on the subject by promoting initiatives and behaviors to improve the balance of the demand

and supply of energy and to reduce energy consumption.

In this scope, PPA’s first photovoltaic station generating energy using solar panels operated in July 2016,

generating up to 430 kWp. The photovoltaic Station is linked up to the grid of DEDDIE S.A. (Administrator of

the Greek Electricity Distribution Network).

Electricity and oil usage have been identified in various energy efficiency reviews as an area for potential

reduction. Indicative energy saving measures implemented by PPA S.A. are:

▪ Staff environmental awareness

▪ Purchasing of electrical equipment with > A energy class and certification

▪ Improvement of buildings’ energy efficiency

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(amounts in Euro unless stated otherwise)

Non- financial indicators for environmental performance

1. Waste generated by the operation of port installations

The quantities of port -generated domestic and recyclable «blue bins» waste from all premises and

activities of PPA S.A. for the years 2020 and 2021 are presented in the Table below.

In 2020 there was a significant reduction in generated domestic waste, which is mainly due to the

significantly reduced traffic of the passenger port due to the restrictive measures of the pandemic. In 2021,

although the operation of the port has been normalized, again it can not be considered representative as

the limitations of the pandemic remain in part.

It is noted that within 2021, some by-cases, emergency cleaning works of the port took place, from which

significant quantities of recyclable waste (mainly metal and wood) were produced. These recyclable

quantities are presented but are not comparable with the rest of port-generated waste as they do not

concern the normal operation of the port facilities.

Finally it is noted that the table below does not include the hazardous and operational waste οf the

facilities driven to recovery (mainly produced at PPA's workshops).

Waste of PPA installations*

2020

2021

ton

Domestic waste (non-hazardous municipal waste)

574

755

Recyclable packaging waste (paper, plastic, glass, metal, wood)

254

334

Recyclable waste from special cleaning works (metal, wood,

etc.)

380

175

*The data of waste of each company are finalized by submitting the annual Waste Report to the Electronic

Waste Register (HMA) of the Ministry of Environment and Energy (submitted for each year on March 31 of

the following year). The waste data for the year 2020 have been finalized by registering the annual Waste

Report of 2020 in the HMA. However, the above waste data for 2021 have not been finalized yet in the

HMA. The finalized waste management data, including the categories of operational and hazardous waste

will be presented in detail in the Annual Corporate Responsibility Report 2021 of PPA SA.

2. Sea and Land Pollution

2020

2021

Sea area accidental pollution

(no. of incidents)

Land area accidental

pollution (no. of incidents)

The above data show that in the year 2021 the incidents of marine pollution were increased while the

incidents of land pollution remained stable compared to 2020. In both cases, both years, all the incidents

were small and local and were treated immediately without problems, by implementing the contingency

plans of PPA S.A.

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(amounts in Euro unless stated otherwise)

3. Results of noise measurements

According to the environmental condition no. 4.6 of the new decision approving the environmental

conditions of the PPA (YPEN/ DIPA/94701/5991/11-012-2020), the PPA has the obligation to implement a

new specialized Noise Monitoring Program in the entire port area.

In this context, the new Noise Monitoring Program was prepared in accordance with the forecasts of the

new AEPO.

Subsequently, the implementation of the new Noise Monitoring Program was assigned to a specialized

company. In this context, in December 2021, the noise measurements of the Winter Semester started

(duration of measurements 1 month). It is noted that the locations of the measurements, the duration of

the measurements and the noise level limits applied in 2020 have been completely revised in the new

Noise Monitoring Program of 2021.

4. Results of air quality monitoring measurements

As mentioned above, PPA SA in collaboration with NTUA, implements a special program for the monitoring

of air quality through a permanent monitoring station in the passenger port.

For the year 2021, in present time the data of the first half have been finalized.

Data from the first semester of 2021 show the following main conclusions:

• Volatile organic compounds are in low concentrations. The average half-year value value of benzene

concentration is less than the limit value of 5.0 μg m-3. The average values of benzene, toluene,

ethylene benzene, m + p-xylene and o-xylene were determined to be 2.7, 7.4, 1.5, 5.6 και 1.6μg m-3,

respectively. The results are at the same level as the previous periods.

• Suspended particles vary in their concentrations. The average half-yearly value of suspended particles

(PM10) is 30 μg m-3 and does not exceed 40 μg m-3. During the measurements, however, the daily

limit of 50 μg / m3 was exceeded in a total of 16 cases. The excesses that are observed are mainly

associated in the winter season with the known problem of smog due to burning and in the spring with

the transport of dust from other areas.

• The average half-yearly value of nitrogen dioxide is 43 μg m-3 and exceeds the annual limit of 40 μg m-

• NO2, SO2, CO did not exceed the limits of average hourly value and average eight-hour value.

• O3 did not exceed the average hourly rate (update limit).

5. Complaint Management

For the years 2020 and 2021 no complaint related to environmental issues was recorded.

Furthermore, it is stated that within 2021 a fine of a total amount of € 6,000 was paid by PPA SA for issues

of compliance with environmental legislation. The fine was imposed by the Attica Prefecture, following an

autopsy on 11-06-2021 at the site of the project of the South Extension of the passenger port of Piraeus.

It is also reported that within 2021 another fine of € 6,000 was paid by PPA SA for issues of compliance with

environmental legislation. The said fine was imposed by the Attica Prefecture following an autopsy on 16-

11-2020 at the site of the project of the southern extension of the passenger port of Piraeus.

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6. Energy production of renewable energy sources (Container Terminal 430KWp photovoltaic power)

2020

2021

Total energy efficiency of photovoltaic

power station (kWh)

676.66

648.30

Emissions’ Reduction (saving of) CO

(tn)

575.16

551

From the above data it is concluded that the P/V Station presents a stable energy production as well as a

stable contribution to the reduction of CO

emissions and therefore a stable contribution to the

improvement of the environmental footprint of the PPA.

7. Expenditures for environmental programs

Research program

COST (€)

2020

2021

Acoustic Environment Monitoring Program for the total of PPA area

5,670

22,700

Seawater Quality Monitoring Program of PPA S.A. area

19,000

Marine Sediments Quality Monitoring Program of PPA S.A. area

6,300

16,000

Air Quality Monitoring Program_ Station installation, measurements,

air quality monitoring and measurement evaluation at the port area of Piraeus

36,000

D2. Social Issues

The Company pays particular attention to social contribution, as demonstrated and expressed through the

timeless efforts and initiatives of both Management and Employees. The Company aims to contribute to

the development of society and especially the creation of added value for the communities that surround

it.

Concession Fee

PPA S.A. pays to the Hellenic Republic an annual concession fee which, equals to three point five percent

(3.5%) of the annual Consolidated Revenue of the Company. With effect from the Effective Date of the new

concession agreement, the annual Concession Fee shall not be less than € 3,500,000. Further to the

Concession Fee, PPA S.A. pays all taxes, duties, levies, VAT, contributions and charges as imposed by

generally applicable tax law. No special privilege arising from Concession Agreement in connection with tax

matters is given to the Company.

Caring for the Society

PPA S.A. published its 3

Corporate Responsibility Report for 2020, which presents in detail all the

responsible actions and policies that the company implements, as well as its positive impact on the wider

society, the environment, the local and national economy, adopting modern and strict standards of

transparency in Sustainable Development and Corporate Responsibility.

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(amounts in Euro unless stated otherwise)

In addition to the strengthening of the national economy and boosting the local economy employment, the

table for financial support of local communities by PPA S.A. for the year 2021 (compared with the

corresponding amounts for the year 2020), concerns the following:

2020

2021

% 2020/2021

Economic support of vulnerable social groups of neighboring

municipalities, orphanages, special schools etc

407,675

226,373

-44.47%

Facilitating the charitable effort of the Holy Metropolis of Piraeus,

Nikaia and St. Nicholas Church

70,000

40,000

-42.86%

Facilitating sports clubs and athletes

31,170

35,400

+13.57%

Aiding cultural associations of Piraeus Region

23,100

2,372

-89.73%

Other donations

242,150

TOTAL

531,945

546,295

+2.70%

Creation of modern Playground Park and a bike lane for the Municipality of Piraeus

PPA S.A. as an actively participating company in the local society taking seriously its Corporate Social

Responsibility with the vision to support the local communities and to improve the living standards of the

citizens of the surrounding municipalities, announced the construction of a new modern playground park

and a bike lane inside the port zone at the cruise terminal area, which will be available for all the citizens to

visit and enjoy its recreational spaces. The construction cost will be covered by Piraeus Port Authority.

More specifically, PPA will transform an area of 8,000 sq. m. (without including the additional parking area)

of the cruise terminal to an open space and modern playground park based on high environmental and

security standards, which will meet the needs of the citizens of the surrounding area. The access to the new

playground park may be accomplished on foot, using public transportation or by car, as a parking area with

50 parking slots will be located near the playground park.

Granting of space to the Coast Guard and the Ministry of Shipping

The PPA S.A. Management during a special event that took place at the “Miaoulis” Cruise Terminal,

announced the granting to the Hellenic Coast Guard of 9 offices, alongside other indoor and outdoor space

areas totaling 1,100 square meters, to cover the housing needs of the Special Forces division (KEA). It is

pointed out that PPA S.A. also covered the cost involved for the remodeling and renovation works of the

spaces offered.

In addition, PPA S.A. granted a space area within the Port of Piraeus zone to the Greek Ministry of Shipping

and Insular Policy to cover the Ministry employee parking needs providing room to 170 vehicles.

Gifts from PPA S.A. to the children of the neighboring Municipalities

As it is known, PPA S.A. in the context of the Corporate Social Responsibility organizes a series of actions

and activities towards the vulnerable groups of the local communities especially during the Christmas

holidays. In 2021, for first time, it was decided the expansion of its action plan for the Easter period,

through the provision of 3,000 gifts for the children of economically weak families of the neighboring

municipalities.

At the same time, PPA continued to support the meals distribution of the Holy Metropolis of Piraeus and

the social groceries of the adjacent municipalities.

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(amounts in Euro unless stated otherwise)

Educational visits

Recognizing the need to support the new generation and broaden knowledge through the educational

process, PPA S.A. through educational visits and guided tours in its premises provides the opportunity to

get acquainted with the objects of operation.

A large number of pupils and students of educational institutions of all levels, from Greece and abroad, visit

the PPA S.A. installations every year.

In 2021, due to special conditions and restrictions due to the pandemic, only a limited number of visits took

place, according to the health protocols as they were currently in force.

2021

2020

Number of

visits

Number of

people

Number of

visits

Number of

people

SECONDARY EDUCATION

HIGHER EDUCATION

OTHER INSTITUTIONS

TOTAL

157

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(amounts in Euro unless stated otherwise)

Caring for people with mobility problems

PPA S.A. takes care to eliminate the difficulties faced by people with disabilities in the use of the Cruise and

Ferry port facilities and their movement within the passenger port.

Within this concern, the following actions are followed:

• Ferry passengers are provided with full discount/exemption for their embarkation and

disembarkation, in accordance with the applicable law.

• Employees, drivers, dockworker’s supervisors and foremen working in Cruise and Ferry Department

have participated in seminars on the management and servicing of people with mobility problems

and people with disabilities in general.

• Accessibility facilities are provided at Cruise and Ferry terminals.

• Meeting points are available at Cruise Terminals for passengers with mobility problems.

• Toilets for passengers with mobility problems are available at every cruise and ferry passenger

terminal.

• Check-in and passport control points at cruise passenger terminals are designed to facilitate people

with mobility problems.

• Specially designed water coolers placed at a proper height are operated at cruise passenger

terminals.

• All buses used for transportation within the passenger port have ramps for wheelchairs.

• Specially designed electrically driven vehicles are available for the transport of disabled passengers

and their escorts in Cruise Terminals.

• Special wheelchairs for people with disabilities are available at cruise and ferry terminals.

The company's planning for the future includes:

• The creation, upgrading and modernization of meeting points for people with disabilities across the

passenger port.

• The improvement of the procedures for servicing passengers with special needs.

• The creation of information material on the rights of passengers with special needs.

• The informing and cooperation with all parties involved in order to provide optimal service to

passengers with special needs.

• The further training and informing of staff about servicing people with disabilities.

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D3. Employee Issues

1. COVID-19 Pandemic Effect

On 30 January 2020, the World Health Organization (WHO) declared the spread of COVID-19 pandemic a

"public health emergency of international concern”, while on March 11, 2020 it was declared by WHO as a

pandemic. Immediately the entire healthcare staff of the country was put on alert and a series of decisions

were taken with the main aim being to slow down the spread of the virus while at the same time measures

were announced to reduce the impact on social and economic level. The evolution of the COVID-19

pandemic, combined with the restrictive measures taken to address it, has had a negative economic impact

worldwide and has inevitably affected and will continue to affect the national economy.

The duration and severity of the effects, although they cannot be estimated reliably at present, will largely

depend on:

• whether the virus will follow a seasonal pattern;

• the time required to complete the vaccination of the vulnerable groups (in the first phase) and then the

whole population as well as the effectiveness of the vaccine (medical action) for the treatment of the virus;

• the effectiveness of fiscal and other reinforcing measures of economy adopted by the Eurozone

countries;

• the decisions of bank supervisory authorities for providing liquidity and support to businesses and

households.

2. Company’s Continuity Plan in the midst of the COVID-19 Pandemic

In this difficult time and within the above-described framework that led to unprecedented measures (eg.

lockdown) in almost all over the world, PPA SA, with responsibility and commitment to its corporate values,

actively participated in the effort of the Greek state to limit the spread of coronavirus (COVID-19) and in the

protection of the public and private health, successfully implementing a set of targeted measures to

combat its transmission, in accordance with the decisions and recommendations of the Ministry of Health

and National Public Health Organization, in order to ensure the health and safety of employees, customers

and users of the port, who in combination are a key pillar of business development.

In particular, since the outbreak of the pandemic in Greece, the Company has implemented those policies

that were deemed necessary and appropriate, in order to ensure its business continuity, its smooth

operation and the reduction of negative consequences to the smallest possible extent, through the:

➢ Ongoing market research and procurement of personal protective equipment to maintain sufficient

stock for employees

➢ Supply a sufficient number of laptops with the appropriate software, allowing remote access to

corporate resources to employees working from home. In total the Company procured, configured and

distributed 164 laptops to office personnel.

➢ Adoption of teleworking for employees who can perform their work from home, so as to achieve

overcrowding and avoid close contacts (In total 247 employees had followed the "Work from Home"

practice with respective creation of equal amount of VPN accounts, for totally 10,682 days during the

period from 1/1/2021 έως και 31/12/2021).

➢ Taking care of those employees belonging to vulnerable groups, in accordance with the instructions of

the NPHO (EODY) and the Occupational Doctor (A total of 4 employees belonging to the "vulnerable

groups" due to health problems did not come to work during the period from 1/1/2021 έως και 30/6/2021.

➢ Granting “special purpose leave” to employees, in accordance with the instructions of the State

Authorities (In total, 58 employees used the "Special Purpose Leave" practice for totally 1,444 days from

1/1/2021 έως και 31/12/2021).

➢ Encouraging business partners for the use of electronic services

➢ Maintenance of communication channel and constant updating by the competent authorities of the

State and the Port (NPHO-EODY / Piraeus Port Health Services / Hellenic Coast Guard).

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➢ Stay in their home for 14 days, for those employees who returned from abroad, according to the

instructions of the NPHO (EODY).

➢ Restriction (where possible) of the entry of business partners into PPA’s premises.

➢ Disinfection of public areas (most of the time on a daily basis):

- inside PPA’s buildings (cashiers, desks, chairs, sofas etc.),

- ferry Terminal waiting rooms and Cruise Passenger Terminals

- PPA’s public buses

as well as increasing the frequency of cleaning and disinfecting workplaces where staff regularly move such

as:

- waiting rooms, garages, etc.

- vehicles / machinery used in freight loading (Cranes, RMGs, Straddle Carriers etc.).

➢ Installation of antiseptic hand bases at Cruise Terminal and PPA’s buses, as well as at key points of the

company's buildings.

➢ Installation of floor marking and plexiglass protective dividers in the passenger Terminals, in platform

scales and shuttle buses.

➢ Reproducing of informational videos of NPHO (EODY) at the passenger stations of Cruise Terminal and

at the company's HQs.

➢ Installation of A4 size laminated posters with NPHO (EODY) guidelines regarding compliance with

hygiene rules in prominent areas of the company's premises.

➢ Suspension of all business trips and delegations visits to and from abroad.

➢ Conduct of business meetings only via videoconferencing.

➢ Informing of maritime agencies about the actions to be taken by crews, in case of close contacting with

PPA’s employees. (Wearing masks etc.)

➢ Equipment of the company's ambulances with the necessary materials to be ready to deal with a

potential incident.

➢ Creation of an Action Plan for a suspected case during work.

➢ Sending of informative messages via e-mail and SMS to all employees of the company, regarding

preventive measures, in accordance with the instructions of NPHO (EODY).

➢ Supply of materials and personal protective equipment (antiseptic gels, FFP2 masks, surgical masks,

gloves etc.) and distribution to all staff, considering their job position.

➢ Continuous communication of the Occupational Doctor with employees presenting symptoms, in order

to provide medical instructions.

3. Safety working conditions

In addition to those mentioned in the BoD report on working safety issues, it is noted that the Company

recognizes the importance of providing safe conditions and workplaces to the staff and safe conditions of

travel - circulation of all involved, tradesmen, passengers etc.

All areas of the port are regularly inspected to ensure that employees comply with health and safety rules

of the company and the instructions of those responsible.

PPA S.A. also monitors and controls the compliance of third parties (contractors) with the Occupational

Health and Safety legislation, requiring health and safety plans before and during the implementation of

technical projects.

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(amounts in Euro unless stated otherwise)

For this purpose, PPA SA employs two (2) safety engineers and an doctor, who submit relevant reports

to the Company's Management in accordance with Law 3850/2010. It has been also set up an

Employees' Health and Safety Committee (EYAE), which consists of elected employees, has all the

responsibilities deriving from the current legislation and meets in the presence of the employer's

representatives at regular intervals.

Potential accidents are recorded and investigated, and corrective actions are planned in order not to be

repeated.

Additionally, at high-risk areas (Container Terminal and Perama Shipyards Zone) the Company provides

two ambulances with trained rescue personnel that are available 24/7.

The Company conducted training in fire safety and workplace evacuation, with the participation of thirty

(30) employees.

The following table illustrates the evolution in the number of accidents, the loss of working days and the

number of transits from the Container Terminal premises of the Company.

2020

2021

Number of accidents (totally declared) of which:

• Labor

• Pathologic / on arrival

Number of accidents with loss of working days based on the

ESAW methodology used by ELSTAT *

10 accidents /

872 working

days lost

4 accidents / 92

working days

lost

Ambulance services (Container Terminal)

107

Ambulance services (Ship Repair Zone)

Although the total number of reported accidents decreased by just 1 accident, there was a large

reduction of 39% (from 18 to 11) in labor accidents that occurred during work.

4. Leave of absence (parental, sick)

Following the aforementioned in the BoD Management Report and in accordance with the applicable

regulations, parental leave is granted for employees in order to attend school performances of children

as well as sick leave is granted. Details are shown in the below tables.

2021

2020

Number of beneficiaries for parental leave

148

138

Number of parental leaves given

547

366

The number of employees who are entitled to parental leaves for attending their children school

performance increased (by 7.25%) from 138 employees in 2020 to 148 employees in 2021, also the

total number of parental leave granted between 2020 and 2021 increased by 49.45%, from 366 to 547.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

2021

2020

Number of

employees who

have taken sick

leave

Number of sick

days leave

granted

Number of

employees who

have taken sick

leave

Number of sick

days leave

granted

547

12,153

462

10,821

With regard to the granting of sick leave, it is noted that the number of employees who have used sick

leave increased by almost 18.40% between 2020 and 2021 (from 462 to 547 respectively) and the total

number of sick leave days increased comparatively by 12.30% (from 10,821 days in 2020 compared to

12,153 in 2021).

5. Educational and training programs

In addition to those mentioned in the BoD Management Report, on staff education and training

programs, the table below provides detailed information on educational programs that took place in

2020 and the participation of employees in them.

2021

2020

Percentage of trained employees

32.38 %

23.5 %

Training man hours

1,930

3,196

Total training cost (€)

48,420.00 €

23,326.00 €

From the above analysis it follows that given the situation throughout 2021, PPA has implemented also

in the field of education, measures in accordance with the decisions and recommendations of the

Ministry of Health and the ESA, with a view to ensuring the health and safety of workers.

In 2021, the number of trainings and participants increased significantly compared to 2020, since all

trainings were implemented by dintance (Web Seminar).

Company’s objective remains to increase the number of training for coming years.

6. Employee Associations / Unions

In PPA S.A. are active total four (4) primary Assocaitions (Association of Permanent Employees, Union of

Technicians and Operators, Association of Dockworkers, Association of Supervisors & Foremen) and one

(1) secondary Association (Federation of Permanent Port Employees of Greece). The Management of the

Company is in close collaboration with employee representatives in order to achieve the proper

functioning of its services and to promote the common interest of the Company and its employees.

7. Additional Social Benefits

Under current operational collective labor contracts, the Company offers to its staff additional social

benefits. In particular, the Company grants interest –free loans to its employees up to amount of 3.000 €

to cover exceptional and unforeseen needs, wedding assistance, creches and camps costs for the

children of staff, prizes for the children of staff with excellent school performance, donation of gifts and

voluntary blood donation leaves, under the conditions that apply for all employees without any

discrimination.

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In particular for 2021, there were provided:

o 51 awards of excellence, towards 34 in 2020,

o 23 marriage grants, towards 13 in 2020,

o camping allowance for 79 employees’ children, towards and 71 in 2020,

o loans for 135 staff members towards 78 in 2020,

o nursery allowance for 44 employees’ children towards 43 children in 2020.

o 10,001 ticket restaurant vouchers towards 1,376 for November & December in 2020

D4. Respect of Human Rights

Protection of personal data

The Company being in compliance with the European General Data Protection Regulation 2016/679

which came into force on 25 May 2018 establishing a single legal framework across the EU for the

protection of personal data, as it is demonstrating through the year’s great dedication and sensitivity

regarding the management and protection of personal data, takes all necessary steps to ensure that its

entire staff is sensitized and constantly working to be compliant with the New GDPR Regulation.

The company recognizes that transparency and accountability are the basis for a trustworthy

collaboration with its customers, whereas legitimate and sensitive handling of personal data is equally a

critical issue to the company and its employees.

For any information or questions regarding the protection of Personal Data or the exercise of legal rights

in relation to Personal Data you can contact us at gdpr@olp.gr.

D5. Anti – Corruption and Bribery Matters

1. Regulation for the award of works, Services, and Procurement

According to the approved Regulation for the award of works, Services, and Procurement, the Company

implements control procedures, under penalty of exclusion, through the obligation to submit certificates

issued by the local competent judicial authority:

a) participation in criminal organizations within the meaning of Article 2 of Council Framework Decision

2008/841/JHA;

b) bribery within the meaning of Article 2(1) of Council Framework Decision 2003/568/JHA;

c) fraud within the meaning of Article 1 of the Convention to protect the financial interests of the

European Communities;

d) terrorism or terrorism – related crimes as defined in Articles 1 & 3 of Council Framework Decision

2002/475/JHA;

e) money laundering within the meaning of Article 1 of the Directive 2005/60/EC;

f) child labour and other offences concerning trafficking in human beings, as defined in Article 2 of the

Directive 2011/36/ΕC;

g) embezzlement, fraud, extortion, forgery, perjury, bribery, fraudulent deliberate bankruptcy,

according to the Greek Penal Code or crimes similar in their specific aspects to the above, provided for

in foreign legal orders.

2. General Staff Regulation (GSR)

According to the article 17.4 of the General Staff Regulation (GSR) are clearly considered (among others)

as disciplinary offences the following:

- Solicitation or acceptance of any fee, consideration or favorable treatment from any person whose

affairs are managed by the employee concerned as part of his/her duties;

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(amounts in Euro unless stated otherwise)

- Any action that is detrimental to Company's reputation, staff or any individual member of the staff, in

relation to their duties;

- Participation, whether directly or through third parties, in any auctioning procedure carried out by the

Company;

- Engagement in private activities for profit or in any form of remunerated employment, save where this

is requested and specifically authorized by the CEO. Such authorization is granted, provided that the

employee's performance within the Company is not howsoever impaired.

- Any act that constitutes a criminal offence, if committed on or off the PPA premises by an employee

during the performance of his/her duties or if committed on the PPA premises during or after the

employee's work time; In this latter situation, the act constitutes a disciplinary offence only if it is

directly and seriously harmful to the employment relationship.

- Failure to prosecute or sanction a disciplinary offence;

- Any acts or omissions committed by fault, potentially capable of causing material or moral damage to

the Company or to any member of its staff;

- Any act of mismanagement;

Also according to the article 17.6 of the GSR temporary or permanent suspension (dismissal) may be

imposed (among others) in respect of the following offence:

- Acceptance of any fee or consideration from any person whose affairs are managed by the employee

concerned as part of his/her duties;

- Characteristically improper or indecent conduct demonstrated by an employee either on or off

Company's premises;

3. Internal Complaint Process (ICP)

Through the PPA S.A. Internal Complaint Process (ICP) as described in the Code of Conduct, provides the

chance for complaints submission on issues related to Fraud and Corruption / Bribery.

D6. Supply Chains

1. Contracts and Subconcessions Regulations

The aim of the Contracts and Subconcessions Regulations (which entered into force by the CEO’s

Decision No. 833/04-10-2019) is to create a stable reference framework for the Company and its related

traders, in the regulated sectors. This Regulation is more simplified in fulfilling the procurement process.

Furthermore, backbone of the Regulation is primarily to serve the interests of the Company and the

strict compliance towards obligations that arise from Concession Agreement, through the proper

selection of the most appropriate counterparty, in financial terms and in terms of adequacy.

Furthermore, the Regulation sets the general award procedures, with reference to the respective

Declaration and context for signing a contract for the case when specific setting of the award conditions.

This option provides greater flexibility and simplification of procedures, which may contribute decisively

to the fulfillment of the Mandatory Investment Program completion timelines.

With the application of Contracts and Subconcessions Regulations, Company fulfills its obligation to

respect the principles of transparency, publicity and equal treatment in the awarding of project

execution, studies and services, as reflected in the provision of art. 8 par. 2 N. 4404/2016.

Page 61 of 161

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(amounts in Euro unless stated otherwise)

2. Procurements

For its procurement needs, PPA S.A., pursuant to the Contracts and Subconcessions Regulations (CEO’s

Decision No. 833/04-10-2019) fulfills the statutory obligation to observe the principles of transparency,

publicity and equal treatment in the award of works, studies and services, as reflected in the relevant

provision of Law 4404/2016.

In the year 2021, PPA S.A. conducted 82 tenders with a total value of € 57.3 million, with a sufficient

average number of bidders (an average of 3 - 4 participants per tender).

The Company's main suppliers come from both the National and International markets. The rules of

cooperation between them are in line with the prevailing market conditions. There are no overdue

debts to Suppliers or other breaches in relation to the contracts that have been signed.

3. Preparation of Establishment of an Approved Contractors Register

PPA S.A. published and completed tender procedure for the creation of an approved Suppliers Register

in the categories of Projects, Implementation of European programs and Tourist services for the

Administration dep. The vendor registers created following open tender procedures for each category

with specific criteria and will be evaluated regularly by Management. Suppliers will have specific rights

and obligations.

Regarding the process of creating the Contractors’ Register, Procurement Department has contacted

operational Departments to investigate the needs, the criteria, the prerequisites and the way they are

evaluated.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

E. Related Parties

The Company provides services to certain related parties in the normal course of business. The

Company’s transactions and account balances with related companies are as follows:

31.12.2021 78,206,476.27 73,513.45

31.12.2020 72,306,665.57 80,347.77

31.12.2021 44,934.22

9,112.93

31.12.2020 370,355.24

56,323.85

PCDC A.E. 31.12.2021

36,555.59 -

31.12.2020

35,941.94 3,240.00

31.12.2021

- -

31.12.2020

124,585.75 -

31.12.2021

27,300.00 -

31.12.2020

78,050.00 -

31.12.2021

- 9,244.91

31.12.2020

- 58,684.08

31.12.2021

- 509,727.44

31.12.2020

- 596,748.58

31.12.2021

- 106,346.61

31.12.2020

- 35,790.00

31.12.2021

- 83,570.51

31.12.2020

- -

31.12.2021

- 95,145.41

31.12.2020

- -

31.12.2021 78,315,266.08 886,661.26

31.12.2020 72,915,598.50 831,134.28

31.12.2021 2,635,950.59 7,776.48

31.12.2020 1,992,540.54 4,526.33

31.12.2021

- 35,164.30

31.12.2020

382,088.08 570.40

31.12.2021

- -

31.12.2020

316.74 -

31.12.2021

- -

Related Party 31.12.2020 - 478,094.95

31.12.2021

181.91 -

31.12.2020

156.91 -

31.12.2021 2,636,132.50 42,940.78

31.12.2020 2,375,102.27 483,191.68

COSCO SHIPPING TECHNOLOGY Co LTD

Related Party

PIRAEUS CONTAINER TERMINAL S.A

Related Party

COSCO SHIPPING TECHNOLOGY (BEIJING)

Related Party

COSCO SHIPPING PORTS LIMITED

Related Party

Related party

Related Party

COSCO SHIPPING LINES GREECE S.A

Related Party

CHINA COSCO SHIPPING CORPORATION LIMITED

Related Party

COSCO SHIPPING DEVELOPMENT CO. LTD

COSCO (HONG KONG) INSURANCE BROKERS L.T.D.

Related Party

COSCO SHIPPING GLOBAL EXH

COSCO SHIPPING DEVELOPMENT CO. LTD

Related Party

Relation with the Company

Year ended

Sales to related

parties

Purchases from related

parties

Related Party

Year ended

Amounts due from

related parties

Amounts due to

related parties

Relation with the Company

PIRAEUS CONTAINER TERMINAL S.A

COSCO SHIPPING LINES GREECE S.A.

Related Party

PCDC A.E.

COSCO (HONG KONG) INSURANCE BROKERS L.T.D.

Page 63 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The revenues of € 70,097,734.45 (2020: € 66,493,707.34) (Note 23) from Piraeus Container Terminal S.A.

(PCT S.A.) are related to the fixed and variable revenue from the concession agreement (PIER II & III) and

revenues of € 8,108,741.83 (2020: € 5,812,958.23) related to mooring and loading/uploading. Besides, PPA

in April 2020, signed a contract about the provision of project management services with PCT S.A. for the

business operation of Pier I of PPA S.A. On December 29, 2020, the letter of guarantee from PCT S.A. with

the amount € 42.0 million, reduced by 50% to € 21.0 million in previous year, and the letter of guarantee

with the amount € 475,000.00, reduced from € 950,000.00 by 50% in previous year, were returned to PCT

S.A. On the same date, a new letter of guarantee of € 663,000.00 regarding the rest of the construction of

the west side of Pier III for the construction works of Pier II and III was received (Note 21).

The transactions with COSCO SHIPPING LINES GREECE S.A. relate to ship services.

The transactions with COSCO SHIPPING DEVELOPMENT CO. LTD are related to ship repair services for their

vessels.

The transactions with COSCO SHIPPING GLOBAL EXH relate to exhibition expenses.

The transaction with COSCO SHIPPING TECHNOLOGY (Beijing) relates to software licence renewal.

The transaction with COSCO (HONG KONG) INSURANCE BROKERS L.T.D. of the current and the previous

period relates to the insurance coverage of PPA S.A. regarding third party liability, employer' s liability,

property and business interruption and directors and officers liability, according to article 17 of the

Concession Agreement (Law 4404/2016).

The transaction with CHINA COSCO SHIPPING CORPORATION LIMITED of the previous year relates to its

participation to Company’s advertising expenses.

The transaction with COSCO SHIPPING PORTS LIMITED is related to software for tax interconnection

services with the SAP software.

The transaction with COSCO SHIPPING TECHNOLOGY Co. LTD of the previous year relates to software

support costs.

Board of Directors Members Remuneration: During the year 2021, remuneration and attendance costs,

amounting to € 889,082.91 (December 31,2020: € 910,855.30) were paid to the Board of Directors

members. Furthermore during the year ended December 31, 2021 emoluments of € 554,857.42 (December

31, 2020: € 557,368.68) were paid to Managers / Directors for services rendered.

The Extraordinary General Meeting of the Company's shareholders on September 23, 2019 approved the

long-term incentive bonus plan, which is cash settled of a certain number of Units. Beneficiaries of the

program are members of the Board of Directors, senior executives and other key management and

business executives who have a significant influence on the performance and uninterrupted operation of

the Company (Note 28).

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(amounts in Euro unless stated otherwise)

F. GOING CONCERN DISCLOSURE:

The Company, for the preparation of the Annual Financial Report of December 31, 2021, has adopted the

going concern basis. For the application of this principle, the Company took into account the current

financial developments as well as the risks arising from the financial environment and made estimates for

the shaping, in the near future, of the trends and the economic environment in which it operates. The main

factors that can affect the implementation of this principle are mainly related to the economic environment

in Greece and internationally, tourism and the consequences of the pandemic (COVID-19) in the Greek

economy and internationally.

As part of the consideration of whether to adopt the going concern basis in preparing the Annual Financial

Report of December 31 2021, management reviewed a range of scenarios and forecasts. The assumptions

have been modelled on the estimated potential impact and plausible negative scenarios, along with the

Company’s proposed responses as a result of the COVID-19 pandemic. Τhe Management, analyzing the

financial statements of 31 December, 2021 and in comparison with the financial statements of the previous

year in combination with the evolution of the vaccination of the general population in Greece and

internationally, foresees a reversal of the climate and considers that even in the case of negative scenarios,

these will not affect the results and the financial position of the Company to the extent that they were

affected in previous years. The management also believes that the Company’s strong balance sheet and

liquidity position, its operation in several segments, the strong and dynamic management and the

experienced human resources will allow the Company to successfully overcome this period of uncertainty.

Accordingly, and having reassessed the principal risks, the members of Board of Directors continue to adopt

the going concern basis of accounting in preparing the Annual Financial Report of December 31, 2021 and

have not identified any material uncertainties to the Company's ability to continue trading as a going

concern over a period of at least 12 months from the date of approval of these financial statements.

Page 65 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

STATEMENT OF CORPORATE GOVERNANCE

(Article 152 of L. 4548/2018)

Ι. Code of Corporate Governance

Law 4706/2020 (Government Gazette 136 / Α / 17-7-2020), on Corporate Governance of public limited

companies, modern capital market, which incorporated in Greek legislation the Directive (EU) 2017/828

of the European Parliament and Council, measures to implement Regulation (EU) 2017/1131 and other

provisions, as well as Decision 2/905 / 3.3.2021 of the Board of Directors of the Hellenic Capital Market

Commission establish the obligation to adopt and implement the Corporate Governance Code, which

has been prepared by a body of known prestige.

The Company, in compliance with the requirements and regulations of the said law, implements with a

relevant decision of its Board of Directors the Code of Corporate Governance, of the Hellenic Corporate

Governance Council issued in June 2021, the text of which is available at website of the Company at the

following link: https://www.esed.org.gr/en/code-listed.

The implementation of this Code aims at the continuous improvement of the corporate institutional

framework and the wider business environment, as well as the improvement of the Company's

competitiveness as a whole.

Deviation from the Corporate Governance Code

The Company fully complies with the provisions of the relevant Greek legislation, rules and regulations

and internal corporate values for the development of corporate governance principles it applies and has

adapted to those defined by the existing institutional framework of corporate governance.

As mentioned above, following a Board of Directors decision and in accordance with article 17 of law

4706/2020, it implements and adopts the Hellenic Corporate Governance Code (HCGC, June 2021) of

the Hellenic Corporate Governance Council (HCGC). HCGC 2021 of HCGC is available at the following

link: https://www.esed.org.gr/web/guest/code-listed.

The Company has not adopted some specific practices of the Code that are specifically mentioned below

but remains faithful to its commitment to take all the necessary actions for the implementation of the

provisions of Law 4706/2020:

Individual Evaluation of members of the Board of Directors

The individual evaluation process regarding the effective fulfillment of the duties of the BoD members

was not considered necessary at this time as the individual performance of the members and the BoD as

a whole will be evaluated by the forthcoming Ordinary General Assembly, at the same time with the

evaluation of annual financial statements of the Company and the other BoD reports provided by the

current legislation and in combination with the results of the year and the general course of the

Company's operations (Special practice of Code 1.13, 3.3.3, 3.3.4 and 3.3.12).

ΙΙ. Description of the main features of the Company’s internal control and risk management systems in

relation to the financial reporting process

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(amounts in Euro unless stated otherwise)

II.1. The internal control system of the Company covers adequately the control procedures involving risk

management and preparation of financial reports.

II.2. In respect of the preparation of financial statements, the Company considers its accounting system

adequate for reporting to the Management and external users. The financial statements are prepared in

compliance with the International Financial Reporting Standards, as adopted by the European Union for

reporting purposes to the administration, and also for the purpose of publication in line with the

applicable regulations (hereinafter, “IFRS”). All reports include the data of the current period, compared

to the respective data of the Budget as approved by the Board of Directors, and to the data of the

respective period of the year before the report. All published interim and annual financial statements

include all necessary information and disclosures in compliance with the IFRS, are reviewed by the Audit

Committee and are approved in their entirety by the Board of Directors.

II.3. Safeguards are implemented with respect to: a) supervision and approval of all important

transactions through the structural hierarchy of the Company; b) monitoring of financial figures and risk

evaluation as for the reliability of the financial statements; c) fraud prevention and tracking; and d)

protection of data provided by information systems.

II.4. The internal reports to the Management and the reports required from the provisions of the

legislation and by the supervisory authorities are prepared by the Financial Management Department,

which is staffed with adequate and experienced executives to this effect.

II.5. The statutory auditors of the Company PRICEWATERHOUSE COOPERS S.A. (Greek AM SOEL 113), i.e.

the statutory audit firm of financial statements of the Company for the year ended on 31 December

2021, are not related to the Company or to any persons having supervisory responsibilities over the

Company’s financial reporting in ways which could be considered as affecting their independence as of

the date of this report. Therefore, they remain independent within the meaning of Article 21 of Law

4449/2017.

II.6. Provision of non-audited services by statutory Auditors: The statutory auditors do not offer to the

Company non-audit services which are prohibited, as per the provisions article 5 of Regulation (EU)

537/2014 of the European Parliament and of the Council and of Law 4449/2017, that are relevant to the

audit of the financial statements in Greece.

The non-audit services that have been provided to the Company, during the year ended as at 31

December 2021, are disclosed in the note 24 to the financial statements.

III. Reference to the information required by points (c), (d), (f), (h) and (i) of paragraph 1 of article 10 of

the Directive 2004/25/EC

The above information is included in another part of the Management Report, i.e. in the Explanatory

Report of the Board of Directors according to article 4, par. 7 and 8 of Law 3556/2007.

IV. Composition and operation of the administrative, management and supervisory bodies of the

Company

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

IV.1. General Assembly of Shareholders

1. The General Assembly of the shareholders of the company is the supreme body of the Company and

is entitled to decide on any affair regarding the Company. Its legal resolutions also bind the absent or

disagreeing shareholders.

2. The General Assembly of shareholders is convened by the Board of Directors and meets obligatorily at

the seat of the Company or in the region of another municipality within the region where the seat of the

company is located, at least once in any corporate fiscal year until the tenth (10th) calendar day of the

ninth month at the latest after the end of the corporate financial year. It may also be convened at the

region of the Municipality, in which the seat of the Athens Stock Exchange is located.

3. The General Assembly has a quorum and validly meets on the issues of the daily agenda, provided

they are present or represented therein shareholders representing at least one fifth (1/5) of the paid

share capital. If no such quorum occurs at the first meeting, a repetitive General Assembly is convened

within twenty (20) days from the date of the cancelled meeting, which is convened at least ten (10) days

prior to this meeting, unless the procedure of article 9 par. 5 last sentence of these articles of

association has been applied. This repetitive General Assembly has quorum and validly meets on the

issues of the initial daily agenda, whichever is the part of the paid share capital of the company, which

represented in the meeting. The resolutions of the General Assembly are taken upon full majority of the

votes represented in the meeting.

4. Until the election of its Chairman, performed by the same meeting with a simple majority, in the

General Assembly chairs the Chairman of the Board of Directors or his/her alternate. The Chairman of

the meeting may be assisted by a secretary and a teller, elected in the same way. The Chairman checks if

the convocation of the General Assembly follows the normal procedure, the identity and legalization of

those present in the meeting, the accuracy of the minutes, administers the discussion, sets the issues on

vote and announces the results of the vote.

5. The discussions and resolutions of the General Assembly are limited to the issues of the daily agenda.

The result of the voting is announced by the Chairman of the General Assembly as soon as it is

confirmed. The company, under the responsibility of its Board of Directors, publishes in its website the

results of the voting within maximum five (5) days from the date of the General Assembly, specifying for

each resolution at least the number of shares for which valid votes were given, the percentage of the

share capital that is represented by these votes, the total number of valid votes, as well as the number

of votes for and against each resolution and the number of the absences.

IV.2. Board of Directors

1. The Company is managed by the Board of Directors composed by nine (9) to thirteen (13) members

(directors), elected by the General Assembly, subject to paragraph 2 below, with absolute majority of

the represented votes, for a duty up to five (5) years, which is extended until the expiry of the deadline,

within which the next ordinary General Assembly following directly the previous one must be convened

and until the adoption of the relevant resolution.

2. As long as the Hellenic Republic Asset Development Fund S.A. or any global successor or successor by

operation of law of the Hellenic Republic Asset Development Fund S.A. (each and collectively, the

“FUND”) holds at least one million two hundred and fifty thousand (1,250,000) voting shares and less

than 10% of the voting shares issued by the Company and subject to the FUND is entitled to appoint one

(1) Member pursuant to article 79 of Law 4548/2018 as in force. If the FUND holds at least 10% of the

voting shares, the FUND is entitled to appoint 1/3 of the total number of Members of the Board of

Directors of the Company.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

3. Should any Director appointed pursuant to paragraph 2 of this article resign or become incapacitated

for whatever reason, they shall be replaced by such persons the HRADF shall specify in a pertinent

written notice to the Company, with immediate effect.

4. The directors, shareholders and non-shareholders may always be reelected and are freely revocable.

5. Member of the Board of Directors may also be a legal person. In this case the legal person is obliged

to appoint a natural person for the exercise of the powers of the legal person as member of the Board of

Directors. This appointment is subject to publicity according to article 13 of the L.4548/2018. The

natural person is jointly and severally liable together with the legal person for the company's

management.

6. The Board of Directors consists of executive, non-executive and independent nonexecutive members.

7. Executive members are those who deal with the day-to-day management of the Company. The

executive members of the Board of Directors, in particular: (a) are responsible for the implementation of

the strategy determined by the Board of Directors and (b) consult at regular intervals with the non-

executive members of the Board of Directors on the most appropriate strategy to be implemented. In

situations of crisis or risk, as well as when circumstances require it to take measures that are reasonably

expected to significantly affect the Company, such as when decisions are to be made regarding the

development of the business and the risks that are expected to affect the financial situation of the

Company, the executive members inform the Board of Directors in writing without delay, either jointly

or separately, submitting a relevant report with their estimates and proposals.

8. The non-executive members of the Board of Directors, including the independent nonexecutive

members, have, in particular, the following obligations: (a) They monitor and examine the Company's

strategy and its implementation, as well as the achievement of its objectives. (b) Ensure effective

oversight of executive members, including monitoring and control of their performance. (c) Examine and

express views on the proposals submitted by the executive members, based on existing information.

9. The number of non-executive members of the Board of Directors must not be less than 1/3 of the

total number of members, including independent non-executive members.

10. Independent non-executive members are those members who are elected by the General Assembly,

or appointed by the Board of Directors (according to par. 4 of article 9 of Law 4706/20120), who are free

from financial, business, family or other relationships of dependency with the Company or with persons

related to it, which may influence their decisions and their independent and objective judgment, and

meet the additional conditions provided by the relevant legislation (article 9 of Law 4706/2020),

including non-executive obstruction assistance and not exceeding the maximum permitted percentage

of their participation in the share capital of the Company.

Power - Duties of the Board of Directors

1. The Board of Directors is competent for the administration and representation of the Company and

for the management of its property and for the pursuit of its object. Defines and supervises the

implementation of the corporate governance system, monitors periodically evaluating its

implementation and effectiveness, taking appropriate action to address deficiencies and ensures the

adequacy, efficiency and independence of the Company's internal control system. Approves the

Regulation of the Company and the suitability policy of the members of the Board of Directors, based on

the content defined by the provisions of Corporate Governance as applicable. In general, it decides on

all issues of the Company, in general, within the frame of the company's scope and object, except for

these issues which pursuant to the Law and these articles of association are subject to the exclusive

competence of the General Assembly.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

2. The Board of Directors may, only and exclusively in writing, assign the exercise of all its powers and

duties, save these requiring a collective action, as well as the representation of the company to one or

more persons, members of the Board of Directors, managers and employees of the company or third

parties, by specifying at the same time the scope of such assignment as well. All these persons may, as

long as it is provided by the relevant resolution of the Board of Directors, assign further the exercise of

the powers entrusted to them or part of these powers to other members or third parties.

Constitution of the Board of Directors

1. The Board of Directors elects one of the Directors as Chairman and may designate up to two (2) other

Directors as Vice Chairmen.

2. The Chairman of the Board of Directors chairs its meetings and exercises the responsibilities provided

by law and the articles of association. When the Chairman is absent or hindered, he shall be replaced by

the appointed for this purpose Vice Chairman.

3. In case the Board of Directors, by way of derogation from par. 1, of article 8 of law 4706/2020

appoints as Chairman one of the executive members of the Board of Directors, it obligatorily appoints a

vice-chairman from the non-executive members.

4. The Board of Directors elects a Member as the Chief Executive Officer of the Company. The Chief

Executive Officer and the Chairman may be the same person.

Convocation of the Board of Directors

1. The Board of Directors should meet any time provided by law, the articles of association or required

under the needs of the company.

2. Meetings of the Board of Directors shall convene within the Municipality of the registered office of

the Company or alternatively within the prefecture of the Municipality of the registered office of the

Athens Exchange. Alternatively, meetings of the BoD may convene in Mainland China or Hong Kong.

3. The Board of Directors may duly meet at another place out of the seat of the company, located either

in Greece or abroad, provided that in this meeting all the members of the BoD are present or

represented, and no member objects to the execution of the meeting and to the adoption of

resolutions.

4. The invitation to the members of the Board of Directors may provide that the meeting of the Board of

Directors will take place through conference call for some or for all members. In this case, the invitation

addressed to the members of the Board of Directors includes the necessary information and technical

instructions about their participation in the meeting.

5. The Board of Directors is convened by the Chairman or Vice Chairman who chair its meetings, upon

invitation notified to its members at least two (2) working days prior to the meeting, and at least five (5)

working days if the meeting is going to be held in a location outside the seat of the company. In the

invitation the issues of the daily agenda must be stated clearly, otherwise the adoption of resolutions is

permitted only if present or represented are all the members of the Board of Directors and none objects

to the adoption of resolutions.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The composition of the Board of the Directors has as follows:

External professional commitments of the BoD members.

With a solemn declaration, the BoD members informed twice, July and December 2021, about their

other professional commitments, that they do not participate in more than three (3) Boards of Directors

of listed companies.

On January 4, 2021, PPA S.A. announced the appointment of the non-executive member of the Board of

Directors Mr. ZHU Jianhui, as Vice Chairman of the BoD.

The General Assembly of July 15, 2021 approved the election of Ms. LI Jin, as a new member of the

Board of Directors.

On September 10, 2021, the BoD decided the replacement of the late Ioannidou Lito, non-executive

member of the BoD of PPA S.A., representative of HRADF, for the rest of her term, by Mr. Dimitris Politis.

On October 25, 2021, the Board of Directors decided to accept the resignations of the members of the

Board of Directors, Mr. Ioannis Moralis and Mr. Apostolos Papapostolou (representatives of HRADF).The

Extraordinary General Assembly of November 16, 2021 approved the election of Mr. Moralis Ioannis as

independent member and Ms. YU Tao as member of the Board of Directors.

The term of the above Board of Directors expires on July 15, 2022.

CVs of the members of the Board of Directors follow, which can be also found on the web page of the

Company, at the link https://www.olp.gr/en/about-us/corporate-governance/board-of-directors.

Page 71 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Mr. Yu Zenggang

Mr. Yu Zenggang is Executive Vice President and Member of China COSCO SHIPPING Corporation

Limited. He started his career in August 1984, and served as the Chief Representative of the Japan

Representative Office of Shanghai Shipping Bureau, BoD Member and President of Shanghai Haixing

Shipping (Japan) Co. Ltd., Deputy General Manager, General Manager of the Development Division of

China Shipping (Group) Company, Executive Vice President of China Shipping (North America) Holding

Co., Ltd., President of China Shipping (Europe) Holding GmbH, General Manager of the President Office

of China Shipping (Group) Company, Director of BOD Office and General Office, Executive Vice President

and BOD Secretary of China Shipping (Group) Company. He has over 35 years’ working experience in

shipping industry, and has abundant expertise in corporate management, corporate governance,

overseas port industry development, international operation, and listed company management. Mr. Yu

Zenggang graduated from Wuhan University of Technology with a Bachelor’s Degree of engineering

science in 1984 and obtained the Master’s Degree in 2012 from CEIBS (China Europe International

Business School).

Mr. Zhang Anming

Mr. Zhang Anming has over 25 years of work experience in the shipping industry. Mr. Zhang has

extensive experience in container shipping and management. He has served (period 1996-2002 and

2009-2012) from different financial managerial positions COSCO Container Lines Ltd, while he had

international working experience from serving as Deputy General Manager of COSCO Container Lines in

Italy (period 2002-2008). In 2012 he appointed as Deputy General Manager and in 2016 Managing

Director of Piraeus Container Terminal SA. He graduated from Peking University, Guanghua School of

Finance and Management.

Mr. Zhu Jianhui

Mr. Zhu Jianhui possesses extensive professional knowledge in ocean shipping and logistics

management and also has rich experience in corporate operation and management. Mr. Zhu was

graduated from Shanghai Maritime College (now known as Shanghai Maritime University) and obtained

a Master's degree. He is a senior economist.

Mr. FENG Boming

Mr. FENG served as Manager of the Commercial Section of the Ministry of Trade Protection of COSCO

Container Lines Co., Ltd., General Manager of COSCO Container Hong Kong Mercury Co., Ltd., General

Manager of the Management and Administration Department of COSCO Holdings (Hong Kong) Co., Ltd.,

General Manager of COSCO International Freight (Wuhan) Co., Ltd./COSCO Logistics (Wuhan) Co., Ltd.

and Supervisor of the Strategic Management Implementation Office of China Ocean Shipping Company

Limited/COSCO SHIPPING Holdings, General Manager of the Strategic and Corporate Management

Department of China COSCO SHIPPING Corporation Limited, Non-executive BoD member of COSCO

SHIPPING Holdings, Non-executive BoD member of COSCO SHIPPING Energy Transportation Co. and

COSCO SHIPPING Development Co., Ltd., and Director of COSCO SHIPPING Bulk Co., Ltd. Mr. FENG is the

Chairman of the Executive Committee and the Investment and Strategic Planning Committee, and a

member of the Nomination Committee, the Remuneration Committee and the Environmental, Social

and Governance Committee of COSCO SHIPPING Ports Limited. Mr. FENG has over 25 years of work

experience in the shipping industry and has extensive experience in ports management and operation,

enterprise strategy management, business management and container shipping management. Mr. FENG

is an economist and holds a Master of Business Administration degree from The University of Hong

Kong.

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(amounts in Euro unless stated otherwise)

Ms. LI Jin

Ms. LI serves since May 2020 till today as a Deputy Chief Executive Officer and Chief Financial Officer of

PPA SA. Ms. LI has over 25 years’ professional experience and throughout her career professional served

COSCO Ocean Shipping, China COSCO Holding and COSCO SHIPPING in various Financial Managerial

positions up to the General Manager of Finance Division level and she has international working

experience by serving COSCO SHIPPING Group, In Oceania and Europe. Ms. LI got the senior accountant

qualification certificate and senior economist qualification certificate in 2008, and became a Certified

management accountant in 2015. Ms. LI participated in “the National Accounting Leading Talents

training project” which was organized by Ministry of Finance of the People’s Republic of China from

2012 to 2019 and in “the special training course for international talents” which was organized by China

COSCO Shipping Group in 2019. Ms. LI graduated from Beijing Vocational College of Finance and

Commerce and holds a bachelor’s degree in International Credit and Investment and a Master’s Degree

in Finance from Beijing Central University of Finance and Economics.

Mr. Kwong Che Keung Gordon

Mr.Kwong has been the Independent Non-executive Director of the COSCO SHIPPING INTERNATIONAL

(HONG KONG) CO., LTD since July 2020. Mr. Kwong is also independent nonexecutive director of a

number of listed companies in Hong Kong, namely, Agile Group Holdings Limited, Chow Tai Fook

Jewellery Group Limited, FSE Lifestyle Services Group Limited, Henderson Investment Limited,

Henderson Land Development Company Limited and NWS Holdings Limited. Mr. Kwong graduated from

The University of Hong Kong with a bachelor’s degree in social sciences in 1972 and is a fellow member

of the Institute of Chartered Accountants in England and Wales and the Hong Kong Institute of Certified

Public Accountants respectively. Mr. Kwong was a partner of international accounting firms from 1984

to 1998 and an independent member of the Hong Kong Stock Exchange Council from 1992 to 1997,

during which he had also served as Chairman of both the Listing Committee and the Compliance

Committee of the Hong Kong Stock Exchange. He has over 40 years of experience in accounting and

auditing, as well as long experience in port industry.

Mr. Ip Sing Chi

Mr. Ip Sing Chi is the Group Managing Director of Hutchison Port Holdings Limited and the chairman of

Yantian International Container Terminals Co., Ltd. He is also an executive director of Hutchison Port

Holdings Management Pte. Limited (the Trustee-Manager of Hutchison Port Holdings Trust, listed in

Singapore, stock code NS8U), an outside director of Hyundai Merchant Marine Co., Ltd. (listed in Korea),

an independent non-executive director of COSCO Pacific Limited (listed in Hong Kong) and a non-

independent non-executive director of Westports Holdings Berhad (listed in Malaysia). Mr. Ip was the

founding chairman (in 2000-2001) of the Hong Kong Container Terminal Operators Association Limited.

Mr. Ip was a non-executive director of Tradelink Electronic Commerce Limited (listed in Hong Kong). Mr.

Ip has over 30 years of experience in the maritime industry, and holds a Bachelor of Arts degree.

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(amounts in Euro unless stated otherwise)

Mr. Nikolaos Arvanitis

He studied and participated in seminars in the Maritime Economics, in the Management and

Organization of Shipping Companies and in Combined Transport. He has been graduated from BCA

College of Athens, London School of Foreign Trade and City of London Polytechnic. He started his career

in 1980 in London at FENTON STEAMSHIP CO, a subsidiary of Hellenic Lines LTD, and continued in Top

Management positions in Piraeus at ZIM HELLAS SA 1984-2010 and at VISTA MARITIME & LOGISTICS LTD

since 2010.

He has participated since April 2000, as an elected member of the BoD of the International Maritime

Union, (an institution representing the agencies of international shipping companies in Greece) and was

elected President of the BoD for two consecutive terms Apr. 2006 - Mar- 2012. In June 2013 the

International Maritime Union BoD unanimously named him as Honorary President. Due to his

institutional role as President of the International Maritime Union, he participated in working

committees and meetings on issues related to the Port Industry, Shipping Policy, Customs and

Regulation Issues, in collaboration with the Ministry of Merchant Shipping & Island Policy, the General

Secretariat of Ports Policy and Maritime Investments, the PPA SA and other Port Organizations, the PCT

SA, the Customs Administration. He has participated in many national and international conferences on

port industry development, liner shipping services, combined transport and supply chain & Logistics

infrastructure. His articles and interviews have been published in many magazines, newspapers and

media both in Greece and abroad.

Ms. Yu Tao

Ms. Yu Tao is economist (graduated from University of International Business and Economics) and she

also holds a Master degree in Business Administration (Guanghua School of Management Peking

University), while she has significant experience in the following areas:

• "International Transportation"

• "Business Administration"

• "Import/Export trade"

• "Logistics"

• "Shipping Lines Management"

• "Container Lines Management".

Ms. YU Tao has also served in various management positions (Deputy Chief Executive Officer) at COSCO

Logistics Co., COSCO Container Lines Co., and COSCO SHIPPING Lines Co.

Mr. Moralis Ioannis

Mr. Moralis Ioannis studied at the finance department of the University of Piraeus. Son of the late

Minister Petros Moralis was always interest in citizenship and politics but without having actively joined

a political party. He works since the age of 22 years old. For more than 20 years he was engaged in

Piraeus both as a freelancer in the field of Sports Marketing and communication, as well as the strain

Olympiacos FC having taken major positions of responsibility. In 2011 he was appointed Vice President

and General Manager of Olympiacos FC. In 2012 he was elected Chairman of the Super League. In 2014

and in 2019 he was elected Mayor of Piraeus.

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(amounts in Euro unless stated otherwise)

Mr. Dimitris Politis, Chief Executive Officer of Hellenic FUND

Dimitris Politis is a graduate of the American College of Greece and holds an MBA in International

Business & Export Management from City University Business School in London, as well as various

professional certifications. Since 1993, he has held positions of responsibility at international financial

organizations. He began his career at HSBC Bank PLC, initially in Athens and then in London, in the

Sector of Investment Banking, covering Greece and the wider region of Southeast Europe and the

Middle East. He returned to Athens in 2001 as head of Credit Commercial de France, and in 2003 he

returned the HSBC Bank plc Greece as Head of Corporate & Institutional Banking. From 2012 to

September 2020, he worked at Credit Suisse AG, based in Zurich, as head of Wealth Management

UHNWI for Greece and Cyprus while in October 2020 he took on the same role at EFG Bank AG, based in

Zurich. Mr. Politis is highly experienced in attracting and managing investments in strategic sectors of

the economy and has close professional relationships with international institutional and private

investors.

CV’s of Deputies CEO

Mr. Angelos Karakostas joined COSCO SHIPPING Lines (Greece) S.A. in 1997 as General Manager. In

2009, he was appointed Deputy General Manager of the Piraeus Container Station (PCT SA). In August

2016, he took over the duties of Deputy CEO of the Port of Piraeus SA.

In December 2017, he was elected President of the Hellenic Ports Association (E.LIM.E).

He holds a degree in Mathematics and a postgraduate degree in Business Research from the University

of Patras. He holds an MBA and an MSc in Management from Teeside University of the United Kingdom.

Captain Weng Lin has three decades work experience in the shipping industry. He entered COSCO family

as Captain for Shanghai Ocean Shipping Co Ltd (1984-1997) and since then he has served COSCO Europe,

COSCO Container Lines and COSCO SHIPPING Lines in upper managerial positions for over 20 years in

Shanghai and Hamburg.Today he is a Senior Specialist in Global Maritime Operations Center of COSCO

SHIPPING Lines Co (since 2017) and a Deputy CEO in Piraeus Port Authority (since 2018).He holds a

University Degree in and an MSc in Business Administration from Shanghai Maritime University.

From the above Members of the Board and Company Executives Mr. Nikolaos Arvanitis, Independent

Board Member on 31/12/2021 held 500 shares of PPA SA and Mr. Angelos Karakostas on 31/12/2021

held 1559 shares of PPA SA.

For the fiscal year 01.01.2021-31.12.2021, the compensations paid to the Board of Directors members

are those provided in the current Remuneration Policy and as has been approved by General Assembly

of Shareholders decision (gross annual compensation for each Board of Directors member of the

amount of € 40,000.00. It is to be noted that in 2021, the Company prepared the members of the Board

of Directors remuneration report for fiscal year 01.01.2020-31.12.2020 in accordance with article 112 of

Law 4548/2018. The remuneration report was discussed at the Regular General Assembly of the

Company on 15.07.2021, which was attended by shareholders representing 82.36% of the share capital,

while the percentage of "FOR" votes amounted to 92.79% of the shareholders present. The

remuneration report for the fiscal year 01.01.2020-31.12.2020 is available on the Company's website:

https://www.olp.gr/en/about-us/corporate-governance/board-of-directors

IV.3. Administration Board

1. The Administration Board operates within the Company, supports and advises the other bodies of the

Company in the discharge of duties thereof and takes decisions on the matters, which have been

assigned thereto by virtue of a relevant decision of the Board of Directors.

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(amounts in Euro unless stated otherwise)

2. The Administration Board consists of the Chairman of the Board of Directors, the CEO, the Deputies to

the CEO, the Assistants to the CEO and the Senior Consultants, whoever they are each time. The

composition of the Administration Board may be extended by decision of the Board of Directors or of

the Chairman of the Board of Directors.

3. Upon invitation by the Chairman of the Board of Directors, to the meetings of the Administration

Board may attend and participate, without the right to vote, external Advisors of the Company and the

each time responsible managers or acting managers of departments of the Company, for matters

related to their responsibilities.

IV.4. Audit Committee

The Audit Committee operates in accordance with the provisions of article 44 of L.4449/2017. It is a

Committee of the Board of Directors and is composed of three (3) non-executive members of the Board

of Directors, of which two (2) are independent under article 9 of Law 4706/2020, which were appointed

by the BoD meeting that took place on 16.07.2021.

Until 15.07.2021, the Audit Committee’s composition was as follows:

- Kwong Che Keung Gordon, Board of Directors independent Non-Executive Member and Chairman of

the Audit Committee.

- Arvanitis Nikolaos, Board of Directors independent Non-Executive Member and Member of the Audit

Committee.

- Karamaneas Charalampis, Board of Directors Non-Executive Member and Member of the Audit

Committee.

Following a relevant discussion made by the General Assembly of shareholders dated 15.07.2021 in

terms of the Audit Committee’s type, composition and term of office, as well as relevant decisions made

by the Board of Directors on the 16.07.2021 and 07.09.2021, the current composition of the Audit

Committee as of 07.09.2021, is as follows:

- Kwong Che Keung Gordon, Board of Directors independent Non-Executive Member and Chairman of

the Audit Committee.

- Arvanitis Nikolaos, Board of Directors independent Non-Executive Member and Member of the Audit

Committee.

- Politis Dimitrios, Board of Directors Non-Executive Member and Member of the Audit Committee.

The term of office of the Audit Committee will be equal to the term of office of the elected Board of

Directors of the Company, whose term of office is annual, ie until 16.07.2022, which is extended, in

accordance with the provisions of article 85, par. c of Law 4548/2018 until the expiration of the

deadline, within which the next Ordinary General Meeting must be convened in 2022 and until the

relevant decision is taken.

The members of the Audit Committee, all non-executive members, did not hold positions incompatible

with their status during 2021, while both their objectivity and independence were ensured, in the

absence of any transaction with the Company that could affect them.

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(amounts in Euro unless stated otherwise)

The main responsibilities of the Audit Committee is to assist the work of the Board of Directors in the

execution of its duties by overseeing the financial information procedures, policies and internal control

system of the Company. Its responsibilities are defined by the current legislation (Law 4449/2017) as in

force, within the current institutional framework and corporate governance principles regarding

companies whose securities are traded on a regulated market (listed companies) and its Operation

Regulation, which has been approved by the BoD and is uploaded to the company’s website.

During 2021, the Audit Committee met three (3) times while additionally in four (4) other cases

decisions were issued through circulation of minutes.

In order to ensure the Company’s independence, the meetings took place without the presence of other

top management executives, except in cases where their presence was deemed necessary (such as the

cases of discussion of the review of the interim and annual Financial Reports). All Committee members

participated in all the meetings and all Committee decisions were taken unanimously.

The main issues handled by the Audit Committee in 2021 were the following:

• Monitoring and evaluation in collaboration with the competent bodies of the Management and the

External Auditor of the Company of the process of preparation of the semi-annual and annual Financial

Statements, prepared in accordance with the International Financial Reporting Standards and

confirmation of their accuracy and completeness, according to the information provided to its members.

• Evaluation of the Financial Statements of the Company (annual and semi-annual) and confirmation of

their completeness and consistency, before their approval by the Board of Directors.

• Discussion with the External Auditor and receiving information about their cooperation with the

Management on issues of financial control.

• Discussion and provision of its agreement to all official announcements concerning the Company's

financial issues.

• Evaluation and approval of the internal audit program and review of the results of the audits carried

out by the Internal Audit Department.

• Monitoring the effective operation of the internal control and risk management system, in accordance

with the applicable legal and regulatory framework.

• Provision of its consent to the proposal of the Board of Directors to the Ordinary General Meeting of

Shareholders for the re-appointment of the auditing company “PwC”, as External Auditor for the

mandatory audit of the Company for the year 2021.

• Evaluation and confirmation on the objectivity and independence of the External Auditor, receiving a

relevant letter.

• Assessing the nature and cost of the non-audit services provided by the External Auditor and

confirmation that they do not pose a threat to the independence of the latter regarding the statutory

audit of the fiscal year 2021, in accordance with the provisions of L.4449/2018 and Regulation 537/2014

of the EU.

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(amounts in Euro unless stated otherwise)

• Provide information to the Board of Directors of the Company about the issues within its competence.

A self-assessment process of the Audit Committee took place in the form of a questionnaire. The

structure of the questionnaire was designed to assist and to provide guidance to PPA SA Audit

Committee in evaluating the key roles, responsibilities and general effectiveness of its operation and

identify any weaknesses that should result in an action plan for improving its performance to an

acceptable level, by including questions that have been selected from the Legislative and Regulative

framework applied for its operation. Through the above self-assessment process, no issues were

identified, which need corrective actions.

In carrying out its work in general, the Audit Committee had full access to all the information necessary

for the effective performance of its duties. The discussions and the decisions of the Audit Committee are

recorded in minutes signed by the members.

I.V.5. Nomination Committee

The Nomination Committee operates in accordance with the provisions of articles 10 and 12 of

L.4706/2020. It is a Committee of the Board of Directors and is composed of three (3) non-executive

members of the Board of Directors, of which two (2) are independent under the article 9 of Law

4706/2020, which were appointed by the BoD Meeting of Shareholders that took place on 16.07.2021.

During the fiscal year 2021, the Nomination Committee’s composition was as follows:

- IP Sing Chi, Board of Directors independent Non-Executive Member and Chairman of the Nomination

Committee.

- ZHU Jianhui, Board of Directors Non-Executive Member and Member of the Nomination Committee.

- Kwong Che Keung Gordon, Board of Directors independent Non-Executive Member and Member of the

Nomination Committee.

The term of office of the Nomination Committee will be equal to the term of office of the elected Board

of Directors of the Company, whose term of office is annual, i.e. until 16.07.2022, which is extended, in

accordance with the provisions of article 85, par. c of Law 4548/2018 until the expiration of the

deadline, within which the next Ordinary General Meeting must be convened in 2022 and until the

relevant decision is taken.

The members of the Nomination Committee, all non-executive members, did not hold positions

incompatible with their status during 2021, while both their objectivity and independence were

ensured, in the absence of any transaction with the Company that could affect them.

The responsibilities and the mode of operation of the Nomination Committee are described in the

Internal Rules of Operation of the Committee, which has been approved by the Board of Directors and is

available at website of the Company.

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(amounts in Euro unless stated otherwise)

During 2021 (in the almost less than half year period after its establishment), the Nomination Committee

met two (2) times.

To ensure the independence of the Nomination Committee, the meetings were held without the

presence of other members of the Management. All the members of the Committee attended all the

meetings and all the decisions of the Committee were taken unanimously.

The main issues handled by the Nomination Committee in 2021 were the following:

The enhancement of the collective suitability and diversity of the Board of Directors, in such a way that

the new composition of the Company’s Board of Directors, fully covers the appropriate and suitable

exercise of the responsibilities of the Board of Directors of the Company and reflects the size and

activity of the Company and can further contribute to the implementation of its business objectives.

The expansion the composition of the Board of Directors of the Company by adding new independent

non-executive member and further enhancing women’s representation in it, in accordance with Law

4706/2020 and the Suitability Policy of the Board of Directors members established by the Company,

based on which a respective proposal was submitted.

The supervision of the preparation of the introductory information program of the new members of the

Board in the context of fulfilling their duties and according to the operational needs of the Board.

The new Board members appointed during 2021 have received an Induction Program whose main

objectives were to (a) communicate the Company's vision and culture, (b) communicate practical

procedural duties, (c) reduce the time taken for them to become productive in their duties, (d) become

familiar with the Company's organizational structure, (e) give them an understanding of Company's

business and strategy and the markets in which it operates, (f) to provide a link with the Company’s

people and an understanding of its main relationships. Also, the new Board members, upon their

appointment received information material of Company’s Obligations towards Supervisory Authorities,

aiming to inform them on their main obligations under the legislative and regulatory framework that the

Company operates.

The evaluation of the fulfillment of the independence criteria of the Independent Non-Executive

Members of the Board of Directors, according to the definition of the law, as well as the evaluation of

the existence of conflicts of interest to the extent that hinders the ability of Members to perform their

duties independently and objectively (independent will).

Despite the short time since its establishment (in the second half of the year), a self-evaluation process

of the Nomination Committee took place in the form of a questionnaire. The structure of the

questionnaire was designed in order to assist and guide the Nomination Committee of PPA SA. in

evaluating the key roles, responsibilities and overall effectiveness of its operation. Through the above

self-evaluation process, no issues were identified, which need corrective actions.

IV.6. Remuneration Committee

The Remuneration Committee operates in accordance with the provisions of articles 10 and 11 of

L.4706/2020. It is a Committee of the Board of Directors and is composed of three (3) non-executive

members of the Board of Directors, and all of them are independent under the article 9 of Law

4706/2020, who were appointed by the BoD Meeting of Shareholders that took place on 16.07.2021.

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(amounts in Euro unless stated otherwise)

During the fiscal year 2021, the Remuneration Committee’s composition was as follows:

- ARVANITIS Nikolaos, Board of Directors independent Non-Executive Member and Chairman of the

Remuneration Committee.

- IP Sing Chi, Board of Directors independent Non-Executive Member and Member of the Remuneration

Committee.

- KWONG Che Keung Gordon, Board of Directors independent Non-Executive Member and Member of

the Remuneration Committee.

The term of office of the Remuneration Committee will be equal to the term of office of the elected

Board of Directors of the Company, whose term of office is annual, ie until 16.07.2022, which is

extended, in accordance with the provisions of article 85, par.1 c of Law 4548/2018 until the expiration

of the deadline, within which the next Ordinary General Meeting must be convened in 2022 and until

the relevant decision is taken.

The members of the Remuneration Committee, all non-executive members, did not hold positions

incompatible with their status during 2021, while both their objectivity and independence were

ensured, in the absence of any transaction with the Company that could affect them.

The responsibilities and the mode of operation of the Remuneration Committee are described in the

Internal Rules of Operation of the Committee, which has been approved by the Board of Directors and is

available at website of the Company.

During 2021 (in the almost less than half year period after its establishment), the Remuneration

Committee met two (2) times.

To ensure the independence of the Remuneration Committee, the meetings were held without the

presence of other members of the Management, All the members of the Committee attended all the

meetings and all the decisions of the Committee were taken unanimously.

The main issues handled by the Remuneration Committee in 2021 were the following:

• The submission of proposal to the Company’s BoD, for the setting up of the regular

remuneration up to the amount of 40.000€ per annum, for the newly elected BoD members.

• The further Implementation of the Company's Long-term Incentive Bonus Plan of the Company.

• Conducting contacts by the Committee’s Chairman with the Senior Management of the

Company on issues related to the responsibilities of the Committee, as well as initiating a

process of possible updating of policies and procedures related to the remuneration of persons

falling within the scope of remuneration policy.

Despite the short time since its establishment (in the second half of the year), a self-evaluation process

of the Remuneration Committee took place in the form of a questionnaire. The structure of the

questionnaire was designed in order to assist and guide the Remuneration Committee of PPA SA. in

evaluating the key roles, responsibilities and overall effectiveness of its operation. Through the above

self-evaluation process, no issues were identified, which need corrective actions.

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(amounts in Euro unless stated otherwise)

IV.7. Periodic Evaluation Policy of the Internal Control System of PPA SA and Implementation of the

provisions on Corporate Governance of Law 4706/2020

Key Elements

PPA S.A. (hereinafter the "Company") recognizing the importance of the operation of an adequate and

integrated Internal Control System (hereinafter "ICS") to achieve its business objectives and in

accordance with Law 4706/2020 regarding corporate governance and decision of the Board of Directors

of the Hellenic Capital Market Commission 1/891/30.09.2020 as in force from time to time, adopts the

present policy of periodic evaluation of the Company's ICS as well as of the Implementation of the

provisions on Corporate Governance of Law 4706/2020.The Company's ICS includes five (5) basic

elements that exist and operate in the Company and are described in general terms below:

a. Control Environment

The Company is committed to operate with integrity and ethical values. Its organizational structure

determines a specific position and specific and distinct responsibilities for each body and organizational

unit of the Company. There are specific benchmarks and areas of responsibility in achieving the

Company's goals, while a regulation is followed on the selection and recruitment of staff and senior

management as well as a remuneration policy aiming at attracting and retaining highly qualified human

resources.

In particular:

Integrity, Moral Values & Top Management Behavior:

The Management of the Company provides direction, leadership as well as an appropriate environment

for its operation, in order to ensure that all its available resources are fully utilized to achieve its

objectives. The Company has a Code of Conduct. Any deviation is reported to the Top Management

which is solely responsible for taking relevant actions.

Organizational structure:

The Company maintains an organizational structure sufficient for the planning, execution, control and

supervision of corporate operations for all its Departments and operational activities, according to

which the main areas of responsibility are determined while at the same time the appropriate reference

lines are established.

Board of Directors:

The Board of Directors of the Company meets every time the Law, the Bylaws or the needs of the

Company dictate and decides on any matter concerning the management of the Company, the

management of its assets and the general pursuit of its purpose. The Board of Directors maintains

adequate oversight of the operation and effectiveness of the ICS. For this purpose, it consists of a

sufficient number of executive, non-executive and independent non-executive members, with a variety

of knowledge, skills and experience in order to achieve the business model and strategy of the

Company.

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Corporate Responsibility:

The Company maintains appropriate structures and pursues policies that promote the principle of

responsibility, the speed of decision making, the smooth operation of the Company and the effective

control of all its actions. Based on this principle, responsibilities are assigned to the executives of the

Company, according to their position in the hierarchy and their qualifications. Furthermore, the

Company forms the framework to enable the individual organizational units to operate within the

components of the specific management authority (Responsibility – Accountability Obligation -

Assumption of Responsibility), as well as the Management to control its effectiveness.

Human Recourses:

Recognizing the utilization of human resources as a cornerstone for the achievement of the Company's

goals, the Company pursues specific policies of recruitment, training, remuneration, and evaluation of

staff.

b. Risk Management

The Company clearly communicates its objectives in the individual Departments in a simple and

understandable way, so that they are taken into account during the process of risk identification and risk

assessment as well as its acceptable risk tolerance level. In general, the Top Management of the

Company determines the way of responding to the risks by categorizing them according to the

probability and their impact on the operation of the Company in the following categories:

• High risk: immediate actions required

• Increased risk: immediate actions required

• Acceptable risk: immediate actions required

• Low risk: no immediate action required

The recording of the risks faced by the Company as well as the management and risk response

procedures, is carried out in all operations of the Company on an annual basis. In addition, the Company

has established control mechanisms and safety valves to detect and/or prevent the inability to deal with

risks, in order to achieve its objectives.

Risk Management function

The Company has a Risk Management function, which operates in accordance with appropriate and

effective policies, procedures and tools (such as keeping a risk register) on the determination, analysis,

control, management and monitoring of any kind of risk inherent to the operation of the Company.

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c. Controls Activities

The Company develops policies and procedures in accordance with the objectives of the Management.

In addition, it implements a system of safety valves, based on the risks it has identified, but considering

the specific characteristics of the Company. Special emphasis is placed on the adequacy, proper

implementation and monitoring of procedures, the handling of error cases and the frequency of

reassessment of policies and procedures.

In addition, the Company implements adequate safeguards for issues of conflict of interest, segregation

of duties as well as the governance and security of its Information Systems.

d. Communication System

The Company ensures the quality of financial and non-financial information and follows appropriate

ways of internal and external communication, such as communication with the members of the Board of

Directors, shareholders and investors, communication with the existing Company committees,

complaint on whistleblowing, Regulatory Authorities etc.

e. Monitoring of the Internal Control System

The Company has mechanisms and functions that have as object the continuous evaluation of the

Internal Audit System and the reporting of findings to be corrected or improved:

Audit Committee

The Company has an Audit Committee, which is a committee of the Board of Directors, consists in its

majority of independent non-executive members of the Board and its goal is to support the Board of

Directors fulfilling its responsibilities for overseeing compliance control procedures with the legislative

and regulatory framework on: (a) financial information, (b) the internal control system, the risk

management system, the regulatory compliance system and (c) its supervision of the (external)

statutory audit of the financial statements of the Company.

Internal Audit Department

The Company has an Internal Audit Department, which operates in accordance with the applicable

Regulation approved by the Board of Directors. The Internal Audit Department is organizationally

independent and adequately staffed. Implements the appropriate tools and control methodology in

order to achieve the best result, while the audit reports that are prepared are submitted at least

quarterly to the Audit Committee and then to the Board of Directors.

Regulatory Compliance function

The Company has a Regulatory Compliance function, which is functionally independent. It is staffed with

staff who have sufficient knowledge and experience to carry out their responsibilities and are trained

and informed in order to monitor the effective adoption and unwavering implementation of changes

taking place in the regulatory framework, with direct access to all required sources of information. In

addition, it implements adequate procedures for the prevention and suppression of money laundering

activities. It follows the annual audit plan, while the findings of its work are promptly and truthfully

communicated.

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General Description

The Company in the context of ensuring the continuous operation of an adequate and integrated ICS

and the continuous improvement where and when deemed appropriate, follows this policy, which sets

out the framework for periodic evaluation of the ICS and implementation of the provisions on Corporate

Governance of Law 4706/2020 that is in effect and governs its operation.

Legal and regulatory framework

The content of this policy fully complies with Law 4706/2020 and the relevant decision

1/891/30.09.2020 of the Board of Directors of the Hellenic Capital Market Commission. The terms of

this policy are applied in combination with the respective provisions of the Company's Internal

Organization and Operation Regulations, the Regulations of the Audit Committee, the Internal Audit

Department, the Regulatory Compliance function and the Risk Management function.

Policy Purpose

The purpose of this policy is to establish the framework to ensure the timely and correct

implementation of the periodic evaluation of the ICS based on the respective standards by appropriate

evaluators and the compliance of the Company with the applicable legislation on relevant corporate

governance matters.

Policy Scope - Compliance

This policy applies to Top Management, the collective bodies and all the organizational units of the

Company, its processes and functions, as well as its Information Systems.

The Top Management, the collective bodies and all the organizational units are obliged to comply with

the content of this policy.

Policy Subject

The subject of this policy includes the general principles regarding the object, the periodicity of the

audit, the scope of evaluation and the general process which governs the periodic evaluation of the

Company's ICS as well as the Implementation of the provisions on Corporate Governance of Law 4706 /

2020 as well as the assignment and monitoring of the results of the evaluation and the determination of

the object of the evaluation.

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Evaluation Process

7 a. General

The periodic assessment of the adequacy of the ICS is carried out on the basis of international best

practices.

The purpose is to evaluate the system of identification and risk management and regulatory compliance

developed by the Company, the system of safeguards that applies to the adequacy and effectiveness of

financial information, as well as the application of corporate governance provisions of the Law.

4706/2020

7 b. Evaluation Subject

Subject of the evaluation are the following:

Control Environment

The review of the control environment consists mainly of the following:

Integrity, Morals & Conduct of the Management: Examines to what extent a clear framework of integrity

and morals that run through the decision making of the Board of Directors have been implemented as

well as to what extent there are monitoring procedures on full compliance so as any deviation is

detected promptly and corrected appropriately.

Organization structure: To what extent the organizational structure of the Company provides for a

framework on the planning, execution, control and supervision of the Company’s activities based on its

organizational structure for each business unit and its operational activities according to which the

primary areas of responsibility within the Company are determined and the suitable reference

guidelines are determined depending on the size of the Company and the nature of its activities

Board of Directors: The structure, organization and the way of operation of the Boards of Directors and

its committees are examined: in particular, with regard to a) the relation with the executive

administration, b) the supervision authority on the operation and the effectiveness of the ICS and c) the

composition of the Board of Directors (eg size, suitability and diversity of its members etc.).

Corporate responsibility: The operation of the higher executive administration and the way in which it

implements under the supervision of the Board of Directors, the appropriate infrastructures, reference

lines, areas of responsibility and power in order to achieve the scope of the Company are examined.

Human Resources: The following but not limited to the recruitment practices, fees, training and

evaluation of the performance of the personnel are examined in order to establish the commitment of

the Administration to the principles of integrity, morals and sufficient knowledge of the personnel).

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Risk Management

It consists of the review of the risk acknowledgement and assessment procedure (risk assessment),

management and response procedures of the Company to the said risks (risk response) and the

procedures on the monitoring of the development of the risk (risk monitoring).

In particular, the following are reviewed:

the work and duties of the Risk Management function, and

the implementation of the appropriate and effective policies, procedures and tools (such as keeping a

risk register) on the determination, analysis, control, management and monitoring of any kind of risk

inherent to the operation of the Company.

Control Activities

Review of the mechanisms on the control of the critical safety net emphasizing on the safety net related

to conflict of interest issues, separation of duties and governance and security of Information Systems.

Information and Communication

Review of the procedure of the development of the financial (including the reports of the auditing

mechanisms (e.g. Supervisory, Regulatory and Regulating Authorities, Independent Professional Entities

etc.) and non-financial information (e.g. sustainable development policy, environmental, social and

labor issues, respect of human rights, fight against corruption, issues on bribery as provided in article

151 of Law 4548/2018) as well as the review of the procedures on the critical internal and external

communication of the Company, which are mentioned above at point 1.d.

Monitoring of ICS

Review of the infrastructure and the mechanisms of the Company that are competent for the constant

evaluation of the components of the ICS and the report of the findings to be corrected or improved.

In particular, the operation of the following infrastructure and mechanisms are reviewed:

Audit Committee

It concerns the review by the evaluator of the procedure on the monitoring of the efficiency of the ICS

by the Audit Committee.

Internal Audit Department

It includes the review by the evaluator of the following elements on the organization and operation of

the Internal Audit Department and the compliance with the provisions of articles 15 and 16 of Law

4706/2020 and the applicable regulatory framework, i.e. the policies, procedures, practices and

applicable legislative and regulatory requirements and in particular:

The implementation and application of an approved Regulation of Operation of the Internal Audit

Department by the Board of Directors.

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The integration of the operation of the Internal Audit Department to the framework of the governance

of the Company, its organizational independence and the sufficiency of its staffing.

The review of the tools and techniques used by the Internal Audit Department.

The review of the combination of the knowledge and qualifications of the personnel of the Internal

Audit Department.

The “random” review of the audit reports on the Internal Audit Department of the Company and its

affiliates as to the prompt filing as well as the appropriateness and completeness thereof based on the

provisions of article 16 of Law 4706/2020.

The effective operation of the supervisory bodies of the Internal Audit Department as these are

provided in the regulatory framework and the Company’s Internal Organization and Operation

Regulations.

Regulatory Compliance

It refers to the review by the evaluator of the monitoring procedure on the compliance with the

regulatory and legal framework as well as the internal regulations that govern the operation of the

Company. The provisions on corporate governance of Law 4706/2020 are included in the said

framework.

In particular, the following are reviewed:

the Regulatory Compliance function, as to its independence, possibility to access all the necessary

sources of information, the prompt and truthful communication of all its findings, the training on

regulatory compliance matters and the monitoring of the effective adoption and the application without

any deviations of the changes in the regulatory framework.

the adequacy of the procedures as to the prevention and fight against money laundering from criminal

activities, where applicable.

the sufficient staffing with persons that have the sufficient knowledge and experience to carry out the

said duties.

the adoption of an approved annual audit plan and the monitoring of its implementation.

7 c. Timing – periodicity

The evaluation of the ICS is carried out either periodically or on an ad hoc basis.

Periodicity is defined as the time period between two consecutive evaluations and which is determined

in three (3) years starting from the reference date of the last evaluation.

The time is defined as the time at which it is required to carry out either the periodic evaluation or the

ad hoc evaluation at the request of the Hellenic Capital Market Commission.

In any case, the evaluation of the ICS is part of the overall evaluation of the corporate governance

system of the Company, according to article 4 par. 1 of Law 4706/2020.

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The first assessment of the ICS must be completed and sent to the Hellenic Capital Market Commission,

in accordance with the decision 1/891/30.09.2020 of the Hellenic Capital Market Commission, by 31

March 2022 with a reference date 31 December 2021 and a reference period from the effective date of

article 14 of law 4706/2020.

7 d. Characteristics of the persons that carry out the evaluation

The evaluator is a legal or natural entity or association of persons. The evaluator shall have the following

characteristics:

Matters of independence and objectivity

When selecting the evaluator of the ICS, matters of independence and integrity are taken into

consideration. The evaluator and the members of his taskforce must be independent and do not have

any dependency according to par. 1 of article 9 as particularized in par. 2 of Law 4706/2020 as well as be

objective in the course of exercising his duties.

Objectivity is the impartial attitude and ways of thinking that shall allow for the evaluator to perform his

duties as he thinks proper and do not settle as to its quality. The objectivity requires for the evaluator

not to be affected by third parties or other facts.

In the course of ensuring the independence and the objectivity, the evaluation of the ICS shall not be

carried out by the same evaluator for three subsequent evaluations.

Proven relevant professional experience and training

When selecting the evaluator of the ICS matters related to the knowledge and his professional

experience are taken into consideration. In particular, the head of the taskforce of the evaluation of the

ICS and in any case the signatory of the evaluation must have the appropriate professional qualifications

(depending on the professional standards that he refers to) as well as proven relevant experience (such

as in evaluations of other ICS and structures of corporate governance).

The evaluator implements all the necessary measures in order in the course of his work the persons that

participate therein have the appropriate knowledge and experience as to the duties assigned to them

and he uses the suitable systems on quality assurance, sufficient human and material resources and

procedures in order to ensure the continuity, periodicity and quality of the performance of the works.

7 e. Candidates selection and award of evaluation – Responsibilities

The Company assigns timely, through its competent bodies, the evaluation of the ICS to a suitable

external evaluator. Specifically:

Within a reasonable time and at least six months before the date of mandatory submission of the final

evaluation report to the Hellenic Capital Market Commission, the Audit Committee arranges for the

receipt of bids by appropriate, in accordance with the provisions of point (7d), evaluators for the award

of the relevant project to evaluate the ICS.

Interested parties are invited to submit a bid within a specific deadline specified in the relevant

invitation, where relevant reference is made to the independence and proven experience and training in

relevant ICS and corporate governance structure evaluation projects as defined in point (7 d).

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The submitted bids are reviewed and evaluated by the Audit Committee, which proposes as the

competent body to the Board of Directors, the assignment of the evaluation of the ICS to the

appropriate at their discretion evaluator, considering the independence and professional experience of

the candidate. The Board of Directors decides upon the assignment to the appropriate evaluator.

The Regulatory Compliance function and / or the Internal Audit Department, under the guidance of the

Audit Committee, facilitate the evaluator during the implementation of his project regarding the

communication and cooperation with the various bodies or Departments of the Company.

7 f. Evaluation report and recipients

The evaluator carries out the evaluation of the ICS, within the agreed schedule and upon completion

submits an evaluation report, which should at least include:

Summary of test results and a detailed description of them;

The time of submission of the evaluation report;

The reference date of the evaluation and the period it covers (which starts from the next day of the

reference date of the previous evaluation).

The summary includes the evaluator’s conclusion regarding the adequacy and effectiveness of the

Internal Control System. It also includes the most important findings of the evaluation, the risks and the

consequences arising from them as well as the response from Top Management to these findings,

including the relevant action plans with clear and realistic timetables.

The detailed report includes all the findings of the evaluation with the relevant analyses.

Recipients of the report are defined the Audit Committee and the Board of Directors.

The Company submits without delay to the Hellenic Capital Market Commission, and in any case within

three (3) months from the reference date of the evaluation report, the report and, if required, the

detailed report.

The annual declaration on corporate governance includes reference to findings of the relevant

evaluation report.

Relevant documents – references

Reference of this policy is made to the Internal Organization and Operation Regulation of the Company

as it applies, the Regulation of operation of the Audit Committee and the Internal Audit Department and

the Company’s Corporate Governance Code.

Force – Exceptions

This policy shall enter into force on the date of its adoption and shall not be subject to any exceptions.

Policy Update

This Policy will be evaluated for update when significant changes are identified in the covered area or

upon the implementation of legislative changes.

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IV.8. Internal Audit Department

1. The Company has an Internal Audit Department under the supervision of the Audit Committee. The

Board of Directors, upon the proposal of the Audit Committee, appoints the Head of the Internal Audit

Department, pursuant to article 15 of Law 4706/2020.The members of the Internal Audit Department

are independent in the exercise of their duties, do not belong to any other Department of the Company

and are supervised by the Audit Committee, which is responsible for monitoring their independence and

their evaluation.

2. The responsibilities of the Internal Audit Department, are the following:

a) To monitor, audit and evaluate:

• the implementation of the Internal Organization & Operation Regulation and the Internal Audit

System, in particular as to the adequacy and accuracy of the provided financial and non-financial

information, risk management, regulatory compliance and the Code of Corporate Governance adopted

by the Company,

• the internal controls of quality assurance

• corporate governance mechanisms, and

• the compliance with the commitments contained in newsletters and the Company's business plans

regarding the use of funds raised from the regulated market.

b) To prepare reports to the audited Departments with findings regarding tasks Nr. a), the risks arising

from them and suggestions for improvement, if any. The reports, after incorporating the relevant

comments of the audited Departments, the agreed actions, if any, or the acceptance of the risk of non-

action by them, the limitations on its scope of audit, if any, the final internal audit proposals and the

results of the response of the audited Departments of the Company to its proposals, are submitted at

least quarterly to the Audit Committee.

c) To inform the Audit Committee on a monthly basis about its activities, the audits carried out and the

progress of its work.

d) To submit at least every three (3) months to the Audit Committee reports, including its most

important issues and proposals, regarding the tasks a) and b), which the Audit Committee presents and

submits along with recommendations to the Board.

e) To ensure the receipt of written complaints and their examination, in accordance with the provisions

of the Code of Ethics chapter 19, regarding the Internal Complaints Process (ICP).

f) To be present only to the tenders that concern Mandatory Enhancements (ME), providing at all stages

of the tender procedure consulting assistance to the Tender Management Committees and Tender

Evaluation Committees, regarding the issues of compliance of the procedures with the decisions of the

Management and the Internal Regulations and to those who are specially assigned by the Chairman of

the BOD and/or the CEO and submits relevant reports to the President of the TMT and the CEO and

Administration Board at the stage of submitting the relevant proposals.

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3. Further to the responsibilities described above, the Head of the Internal Audit Department especially:

a) Submits to the Audit Committee an annual audit plan for the following year and the requirements for

the necessary resources, as well as the implications of the resource limitation or audit work of the

Department as a whole. Once approved, the annual audit plan is submitted by the Audit Committee to

the Board of Directors for final approval.

b) Attends the general meetings of shareholders and

c) Provides in writing any information requested by the Hellenic Capital Market Commission, cooperates

with it and facilitates in every possible way the task of monitoring, auditing and supervising by it.

V.Diversity Policy applied in relation to the Company’s administrative, managerial and supervisory

bodies

Description of the policy of diversity with regard to the administrative bodies of the Company.

Given the fact the Board of Directors is the highest administrative body of the Company, which is

responsible for the safeguarding of the broader corporate interests, the policy making and the growth

strategy of the Company as well as for the strengthening of the long-term economic value of the

Company, it is very essential for the particular body to possess, with regard to its composition, a

diversity of skills, views and abilities which at the same time respond to the need to effectively attain

corporate goals.

From the time of the Company’s establishment and until today, the entire members of the Board of

Directors fulfill all necessary conditions and have set the foundations in order to be granted with the

capacity of the member of the Board of Directors. At the same time, they are distinguished for their high

professional skills, educational level, knowledge, capabilities, experiences and their organizational and

administrative abilities, and at the same time they possess high standards of ethics and integrity of

character. The members of the board of Directors cover a broad range in terms of age combining

effectively their dynamics and experience (indicatively between 49 and 73 years old). The members, in

their majority, are holders of graduate and postgraduate degrees of domestic as well as international

universities, have worked in high ranked positions of major companies domestically and abroad. They

have also been members of the higher managerial staff of large organizations and as a result they

possess significant international experience in the corporate as well as the broader social fields and are

in position to actively contribute to the growth prospects of the Company. They finally fulfill the

requirements of suitability as well as the criteria with regard to the Company’s effective staffing and

operation.

The current composition of the Board of Directors aims undoubtedly at the best possible facilitation of

corporate goals, as it increases the pool of skills, experience and vision that the Company has for its

highest-ranking personnel, and consequently its competitiveness, productivity and innovation.

The current 11-member Board of Directors of the Company, consists of 9 men and 2 women and was

elected in the framework of the decision of the Company’s Management for immediate, substantial and

effective compliance and harmonization with the provisions of the law 4706/2020 on suitability,

diversity and, above all, adequate representation by gender on the Board of Directors and completely

covers the appropriate exercise of the responsibilities of the Board of Directors of the Company, reflects

the size and activity of the Company and its characteristic feature is diversity of knowledge, skills and

experience that can contribute to the achievement of business objectives.

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PROCEDURE TO COMPLY WITH THE OBLIGATIONS ARISING FROM ARTICLES 99 TO 101 OF LAW

4548/2018, REGARDING TRANSACTIONS WITH RELATED PARTIES

The Company recognizes the importance of its compliance with the obligations arising from articles 99

to 101 of Law 4548/2018, regarding transactions with related parties, to ensure the smooth and

efficient operation of the market.

Therefore, the Company establishes the following procedure of compliance with the obligations arising

from articles 99 to 101 of Law 4548/2018, regarding transactions with related parties:

The Group to which the company belongs, maintains a list of related parties, from which the Company

has the opportunity to obtain relevant information.

Contracts of the Company with related parties, as well as the provision of security and guarantees to

third parties in favor of such 29 parties, within the meaning of articles 99-101 of Law 4548/2018, are

only permitted upon prior authorization by the Board of Directors or, in the case of paragraph 4 of this

article, by the General Meeting. Related parties with respect to the Company are those parties defined

as related parties of the Company pursuant to International Accounting Standard 24, as well as the legal

entities controlled by them, pursuant to International Accounting Standard 27.

In the case where, a contract with a related party of the Company is awarded after and according to

tender procedures, as they are described in the approved and posted on the Company's website

Regulations for the Award of Contracts and Sub-concessions of the Company, the above paragraph is

not followed.

The Board of Directors may grant authorization, pursuant to the preceding paragraph, which is valid for

six (6) months. In the case of recurring contracts with the same person, a single authorization may be

provided that sets forth the characteristics of the contracts concerned and is valid for one (1) year.

Within ten (10) days as of the publication of the notice on the granting of the said permission by the

Board of Directors, shareholders representing one twentieth (1/20) of the paid-in share capital may

request the convocation of the General Meeting in order for the General Meeting to adopt a resolution

on the matter of the said permission. The contract for which permission has been granted by the Board

of Directors shall be considered as effective only after the lapse of the said ten-day time period or upon

securing the permission of the General Meeting or upon a written statement by all shareholders to the

Company to the effect that they do not intend to request the convocation of the General Meeting.

If by the time permission is granted by the General Meeting, the contract under para. 1 of this article

has already been concluded or the guarantee or security has been provided, then the granting of

permission by the General Meeting is canceled if objected to by shareholders representing one

twentieth (1/20) of the capital represented at the Meeting.

If the transaction involves a shareholder of the Company, the shareholder concerned does not take part

at the vote in the General Meeting and is not counted for the purposes of quorum and majority. Other

shareholders with whom the counterparty is related under a relationship falling under paragraph 2 of

article 99 of Law 4548/2018 will not take part in the vote either. This paragraph is not applicable when

permission by the Board of Directors was given with the concurrence of the majority of its independent

members.

In all cases, the granting of permission by the General Meeting is canceled if opposed by shareholders

representing one third (1/3) of the capital represented thereat.

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If the permission for the conclusion of the contract was given by the General Meeting, any amendments

thereto may be made under permission by the Board of Directors, unless the General Meeting has

reserved for itself the right to authorize such amendments as well.

Decision thereon by the Board of Directors or the General Meeting is made on the basis of a report by a

certified public accountant or auditing firm or other third party unrelated to the Company, that assesses

whether the transaction is fair and reasonable for the Company and shareholders who are not a related

party, including the minority shareholders of the Company, and explains the assumptions on which it

has relied together with the methods employed.

The Board of Directors issues a notice about the granting of permission to the conclusion of the contract

by the Board itself or by the General Meeting, and the lapse of the time period set forth in paragraph 4

of the present article. Such notice is published prior to the conclusion of the transaction. An inaccuracy

in the notice cannot be invoked towards third parties, unless the Company demonstrates that such third

parties were aware of the inaccuracy in question. The notice shall as a minimum include information: (a)

on the nature of the relationship of the Company to the related party; (b) the date and value of the

transaction; (c) any other information as necessary in order to assess whether the transaction is fair and

reasonable for the Company and those persons who are not a related party, including the minority

shareholders. The said notice is accompanied by the report referred to in the preceding paragraph. A

transaction entered into between the related party of the Company and a Company subsidiary shall also

be submitted to the publication formalities.

Sustainable development policy followed by the Company

The Company, implements a Sustainable Development Policy and seeks, over time, to create value for

its stakeholders, i.e. shareholders, customers, employees and society in general.

To achieve this goal, the Company places particular emphasis on, among others, the training and

development of its personnel, health and safety at work, as well as respect for the environment,

following the principles of sustainable development.The Sustainable Development Policy of the

Company reflects the approach and commitment of the Management to the issue of responsible

operation. Responsible operation is a continuous commitment to action of substance, in order to

generate value for all stakeholders that meet the modern needs of society and contribute in general to

its prosperity. The Company has a specific strategy, which focuses on the important issues related to its

activity and seeks its continuous responsible development, focusing on the critical pillars of business

responsibility: Economy, Society, Environment.

Sustainable development is an integral part of the Company's business practice model and culture. In

the context of the implementation of Sustainable Development, the Company develops activities,

among others, in the following areas:

a) Personnel health and safety

b) Training and development of Personnel

c) Corporate Social Responsibility

d) Environmental protection

e) Market

f) Protection of personal data

g) Corporate governance

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For the above main issues concerning the Company, individual Sustainable Development goals are set,

which are evaluated on an annual basis in terms of their effectiveness and are reviewed when

necessary. The policy, the results of the Company's performance in the issues of Sustainable

Development, as well as the implementation of the programs and the achievement of the objectives,

are published on an annual basis, in order to fully and comprehensively inform under a general

framework of transparency of all partners, which are considered during the annual Management Review

for all the above issues.

PPA SA Supports the United Nations 2030 Agenda, as set out in the 17 Sustainable Development Goals,

with a view to actively contributing to their achievement by promoting the prosperity and security of

the people; environmental protection and the fight against poverty.

The priority of PPA SA is the fulfillment of the objectives that are directly related to the activities and

challenges of the sector in which it operates, as well as to the essential issues arising from the Corporate

Responsibility and Sustainable Development Report, which details the connection of the programs and

of the Company's actions with the Sustainable Development Goals.

The strategy, programs, results and related commitments are analyzed in the annual Corporate

Responsibility and Sustainable Development Report, which is based on the Global Reporting Initiative

(GRI) guidelines and more specifically the Standards (In Accordance - Core), which are the most

internationally recognized and demanding guidelines of their kind, and is available in the Company’s

website.

Materiality Assessment

Material Recognition Process

One of the most important and fundamental guiding principles of the GRI is the concept of materiality.

PPA addresses the issues that cause the most significant economic, environmental and social impact, or

those that are considered most important, by its internal and external stakeholders. In the process of

identifying the essential issues PPA actively involves its stakeholders and considers all the issues and

topics in the given time period that fall within the limits of the organization's exposure.

During the process of identifying the essential issues, PPA SA conducted quality, electronic research on

representatives of its Stakeholders in order to examine all important issues related to Corporate

Responsibility, as well as to systematize the dialogue with them on these issues.

Methodology

The methodology followed is described below:

Step 1: Identify and prioritize the main Stakeholders, who will be included in the process of finding the

essential issues. Involves stakeholder groups such as employees, NGO representatives, suppliers,

customers and local community representatives.

Step 2: Identify and prioritize key indicators (economic, environmental, social, work practices, human

rights, responsible services, etc.), using the GRI guidelines.

Step 3: Conduct a survey, through a quality questionnaire to identify the key issues in the opinion of

stakeholders and management. The following quality scale was used for each question: Very Important,

Important, Not at all Important. The stakeholders who responded to the questionnaire consist of the

following internal and external ensembles: employees, NGO representatives, suppliers, customers and

local community representatives. The same questionnaire was completed by the members of the

administration.

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Step 4: Create a table (matrix) that identifies the essential issues. A numerical value was given to each

response to the significance questionnaire (High Significance = 3, Medium Significance = 2, Low

Significance = 1).

For each essential question included in the questionnaire, an average value was calculated through the

answers of all interested parties.

Material aspects and Materiality Matrix

The GRI guidelines recommend the design of issues according to their materiality in a materiality matrix,

with the X-axis representing issues that cause significant impact on the operation of PPA SA.

(Management view), and the Y-axis to represent issues that are considered important between

stakeholders (stakeholder view). The issues that are considered very important for the Management and

the Stakeholders are included in detail in the report.

By calculating both of the above parameters, as essential issues for 2021 are mentioned:

• Fight against corruption

• Competition legislation

• Environmental legislation

• Security practices

• Health and safety of employees

• Impacts on seawater quality

• Taxation

• Waste management

• Profitability

• Health and safety of users

• Pollutants

• Employee benefits

• Avoidance of discrimination

• Employee training

• Indirect financial implications

• Investments in the local economy

• Treatment of COVID-19

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Board of Directors Explanatory Report (according to article 4,

par. 7 and 8 of Law 3556/2007)

The present explanatory report of the Company’s Board of Directors to the annual General Meeting of

Shareholders is an integral part of the Annual Report of the Board of Directors.

Share capital structure

The Company’s share capital amounts to Euro fifty million (50,000,000€) and is divided into 25 million

ordinary shares, of a nominal value of Euro two (€2,00) each. Each share is entitled to one vote. The

Company’s shares are dematerialised and listed to trading on the Athens Stock Exchange.

According to the Company’s Articles of Association, the Company’s shares and rights deriving therefrom

are indivisible and, in case of joint ownership, the joint owners exercise their rights through a common

representative, whereas each joint owner is jointly and severally liable to the Company for the

fulfillment of the obligations deriving from the share.

Restrictions on the transfer of the Company’s shares

The Company’s shares may be transferred in the manner laid down by law and there are no restrictions

on their transfer contained in the Articles of Association of the Company.

Major direct or indirect holdings within the meaning of Articles 9 to 11 of Law 3556/2007

The major holdings (over 5%) as at 31.12.2021 were as follows:

Following the execution of a share purchase agreement and corresponding over the counter transaction

made on August 10

, 2016, COSCO SHIPPING (Hong Kong) Co., Limited obtained 51% of shares and

voting rights in the Company.

As a result of an over-the-counter transaction that took place on 06 October 2021, the percentage of

voting rights of COSCO SHIPPING (Hong Kong) Co., Limited in PPA S.A. has increased from 51% to 67%.

With the above over-the counter transaction, COSCO SHIPPING (Hong Kong) Co., Limited has acquired

from Hellenic Republic Asset Development Fund S.A. an additional 16% of shares in PPA S.A.

The above transaction has taken place under an Amended Share Purchase Agreement between COSCO

SHIPPING (Hong Kong) Co., Limited as Purchaser and Hellenic Republic Asset Development Fund S.A. as

Seller, following ratification of an Amendment to the Concession Agreement between the Hellenic

Republic and PPA S.A. (Law 4838/2021, Government Gazette 180A/ 01.10.2021).

COSCO SHIPPING (Hong Kong) Co., Limited is 100% held by China Shipping Group Co. Ltd, which is 100%

held by China COSCO Shipping Corporation Limited. As a result of the transaction, China COSCO Shipping

Corporation Limited indirectly holds 67% of voting rights in PPA S.A.

Page 96 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

As a result of the above referred transaction, the “Hellenic Republic Asset Development Fund S.A.”

percentage of voting rights in PPA S.A. directly has fallen from 23,1378% to 7,1378%. The total (100%) of

the shares in HRADF S.A. is owned by EESYP S.A., which is 100% controlled by the Greek State. The

transfer is attributed to an amended Share Purchase Agreement following ratification of the

amendment of the Concession Agreement (Law 4838/2021, Government Gazette 180A/ 01.10.2021).

Pursuant to a transaction made on November 10, 2021, the percentage of voting rights in PPA held by

the shareholder Helikon Long Short Equity Fund Master ICAV amounts to 5,376%.

Holders of any type of shares granting special rights of control

There are no shares of the Company that grant to their holders special rights of control.

Restrictions to voting rights

The Company’s Articles of Association do not contain any restrictions to the voting rights deriving from

the Company’s shares.

Agreements between shareholders which result in restrictions on the transfer of shares or limitations

on voting rights

The Company is aware of a Shareholders Agreement dated 8 April 2016 between COSCO Hong Kong

Group Limited (currently incorporated under the corporate name COSCO SHIPPING (Hong Kong) Co.,

Limited) and Hellenic Republic Asset Development Fund S.A., which contains certain restrictions on the

transfer of shares and certain limitations on voting rights of the contracting parties.

The rules contained in the Company’s Articles of Association on appointment and replacement of

members of the Board of Directors and on amendment of the provisions of the Articles of Association

are not different from the provisions of the legislation. However, the Company wishes to inform that

according to article 18 of the Articles of Association, as long as the Hellenic Republic Asset Development

Fund S.A. or any global successor or successor by operation of law of the Hellenic Republic Asset

Development Fund S.A. (each and collectively, the “FUND”) holds at least one million two hundred and

fifty thousand (1,250,000) voting shares and less than 10% of the voting shares issued by the Company

and subject to the FUND is entitled to appoint one (1) Member pursuant to article 79 of Law 4548/2018

as in force. If the FUND holds at least 10% of the voting shares, the FUND is entitled to appoint 1/3 of

the total number of Members of the Board of Directors of the Company. Should any Director appointed

pursuant to paragraph 2 of this article resign or become incapacitated for whatever reason, they shall be

replaced by such personas the HRADF shall specify in a pertinent written notice to the Company, with

immediate effect.

Competence of the Board of Directors or of some of its members to issue new shares or purchase own

No special competence different from the provisions of the legislation is awarded by the Articles of

Association to the Board of Directors or to some of its members to issue new shares or purchase own

shares of the Company.

Important agreements contracted by the Company, which will enter into effect, be amended or expire in

case of change in the Company’s control following a public offer and the results of such agreements

There are no such agreements.

Page 97 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Agreements that the Company has contracted with the members of the Board of Directors or with its

personnel, which provide for the payment of compensation in case of resignation or release without

substantiated reason or in case of termination of their term or employment due to a public offer

There are no such agreements.

Piraeus, March 14, 2022

THE CHAIRMAN OF THE BoD

YU ZENG GANG

Page 98 of 161

PricewaterhouseCoopers SA, T: +30 210 6874400, www.pwc.gr

Athens: 268 Kifissias Avenue, 15232 Halandri, Greece | T:+30 210 6874400

Thessaloniki: 16 Agias Anastasias & Laertou, 55535 Pylaia, Greece | Τ: +30 2310 488880

[Translation from the original text in Greek]

Independent auditor’s report

To the Shareholders of “Piraeus Port Authority S.A.”

Report on the audit of the financial statements

Our opinion

We have audited the accompanying financial statements of Piraeus Port Authority S.A. (Company) which

comprise the statement of financial position as of 31 December 2021, the statements of comprehensive

income, changes in equity and cash flow statement for the year then ended, and notes to the financial

statements, including a summary of significant accounting policies.

In our opinion, the financial statements present fairly, in all material respects the financial position of the

Company as at 31 December 2021, its financial performance and its cash flows for the year then ended in

accordance with International Financial Reporting Standards, as adopted by the European Union and comply

with the statutory requirements of Law 4548/2018.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs), as they have been

transposed into Greek Law. Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Independence

During our audit we remained independent of the Company in accordance with the International Ethics

Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) that has been

transposed into Greek Law, and the ethical requirements of Law 4449/2017 and of Regulation (EU) No

537/2014, that are relevant to the audit of the financial statements in Greece. We have fulfilled our other

ethical responsibilities in accordance with Law 4449/2017, Regulation (EU) No 537/2014 and the requirements

of the IESBA Code.

We declare that the non-audit services that we have provided to the Company are in accordance with the

aforementioned provisions of the applicable law and regulation and that we have not provided non-audit

services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014.

The non-audit services that we have provided to the Company, during the year ended as at 31 December

2021, are disclosed in the note 24 to the financial statements.

Page 99 of 161

Key audit matter

Key audit matter is that matter that, in our professional judgment, was of most significance in our audit of the

financial statements of the current period. This matter was addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on that

matter.

Contingent liabilities and provisions arising

from litigation

The Company faces a number of pending legal

proceedings (see Note 30 Commitments and

contingent liabilities par. A and Note 17). The

Company establishes provisions based on

management’s judgements of the probable

amount of the liabilities. The level of judgement

involved in estimating the provision and / or the

level of disclosures required for contingent

liabilities was considered as a key audit matter.

Our audit approach included the following

key procedures:

• We obtained the analysis of provisions

established and approved by management

and we compared them to lists provided by

the legal department with no exceptions.

• Where relevant we obtained external legal

confirmations directly requested by us.

• For a sample of these pending legal

proceedings, we reviewed documentation

supporting the movement of the accounting

balance during the year ended December

31, 2021.

• We discussed a selection of open cases

and their possible outcome with company’s

legal department and/or external lawyers

as well as with management.

Based on evidence obtained we determined the

level of provisioning at December 31, 2021 to be

appropriate (Note 17 Provisions). We also

consider that disclosures in Note 30 are deemed

to be sufficient.

Other Information

The members of the Board of Directors are responsible for the Other Information. The Other Information,

which is included in the Annual Report in accordance with Law 3556/2007, is the Statements of Board of

Directors members and the Board of Directors Report (but does not include the financial statements and our

auditor’s report thereon), which we obtained prior to the date of this auditor’s report.

Our opinion on the financial statements does not cover the Other Information and except to the extent

otherwise explicitly stated in this section of our Report, we do not express an audit opinion or other form of

assurance thereon.

Page 100 of 161

In connection with our audit of the financial statements, our responsibility is to read the Other Information

identified above and, in doing so, consider whether the Other Information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We considered whether the Board of Directors Report includes the disclosures required by Law 4548/2018

and the Corporate Governance Statement required by article 152 of Law 4548/2018 has been prepared.

Based on the work undertaken in the course of our audit, in our opinion:

• The information given in the the Board of Directors’ Report for the year ended at 31 December 2021 is

consistent with the financial statements,

• The Board of Directors’ Report has been prepared in accordance with the legal requirements of articles 150

and 151 of Law 4548/2018,

• The Corporate Governance Statement provides the information referred to items c and d of paragraph 1 of

article 152 of Law 4548/2018.

In addition, in light of the knowledge and understanding of the Company and its environment obtained in the

course of the audit, we are required to report if we have identified material misstatements in the Board of

Directors’ Report and Other Information that we obtained prior to the date of this auditor’s report. We have

nothing to report in this respect.

Responsibilities of Board of Directors and those charged with governance for the financial statements

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in

accordance with International Financial Reporting Standards, as adopted by the European Union and comply

with the requirements of Law 4548/2018, and for such internal control as the Board of Directors determines is

necessary to enable the preparation of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability

to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease

operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 101 of 161

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional

scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of Board of Directors’ use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to

the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a

manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope

and timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other matters that

may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were

of most significance in the audit of the financial statements of the current period and are therefore the key

audit matters. We describe these matters in our auditor’s report.

Page 102 of 161

Report on other legal and regulatory requirements

1. Additional Report to the Audit Committee

Our opinion on the accompanying financial statements is consistent with our Additional Report to the Audit

Committee of the Company.

2. Appointment

We were first appointed as auditors of the Company by the decision of the annual general meeting of

shareholders on 30 June 2016. Our appointment has been renewed annually by the decision of the annual

general meeting of shareholders for a total uninterrupted period of appointment of 6 years.

3. Operating Regulation

The Company has an Operating Regulation in accordance with the content provided by the provisions of

article 14 of Law 4706/2020.

4. Assurance Report on the European Single Electronic Format

We have examined the digital file of Piraeus Port Authority S.A. (hereinafter referred to as the “Company”),

which has been compiled in accordance with the European Single Electronic Format (ESEF) defined by the

Commission Delegated Regulation (EU) 2019/815, as amended by Regulation (EU) 2020/1989 (hereinafter

“ESEF Regulation”), and which includes the financial statements of the Company for the year ended 31

December 2021, in XHTML format “549300UNB6JCR0XZT864-2021-12-31-el.xhtml”.

Regulatory framework

The digital file of the European Single Electronic Format is compiled in accordance with ESEF Regulation and

2020 / C 379/01 Interpretative Communication of the European Commission of 10 November 2020, as

provided by Law 3556/2007 and the relevant announcements of the Hellenic Capital Market Commission and

the Athens Stock Exchange (hereinafter “ESEF Regulatory Framework”).

In summary, this Framework provides that all annual financial reports should be prepared in XHTML format.

The requirements set out in the current ESEF Regulatory Framework are suitable criteria for formulating a

reasonable assurance conclusion.

Responsibilities of the management and those charged with governance

The management is responsible for the preparation and submission of the financial statements of the

Company, for the year ended December 31, 2021, in accordance with the requirements set by the ESEF

Regulatory Framework, as well as for those internal controls that management determines are necessary to

enable the compilation of digital file free of material error due to either fraud or error.

Page 103 of 161

Auditor’s responsibilities

Our responsibility is to plan and carry out this assurance work, in accordance with no. 214/4 / 11.02.2022

Decision of the Board of Directors of the Hellenic Accounting and Auditing Standards Oversight Board

(HAASOB) and the "Guidelines in relation to the work and the assurance report of the Certified Public

Accountants on the European Single Electronic Format (ESEF) of issuers with securities listed on a regulated

market in Greece" as issued by the Board of Certified Auditors on 14/02/2022 (hereinafter "ESEF Guidelines"),

providing reasonable assurance that the financial statements of the Company prepared by the management in

accordance with ESEF comply in all respects with the current ESEF Regulatory Framework.

Our work was carried out in accordance with the Code of Ethics for Professional Accountants of the

International Ethics Standard Board for Accountants (IESBA Code), which has been transposed into Greek

Law and in addition we have fulfilled the ethical responsibilities of independence, according to Law 4449/2017

and the Regulation (EU) 537/2014.

The assurance work we conducted is limited to the procedures provided by the ESEF Guidelines and was

carried out in accordance with International Standard on Assurance Engagements 3000, “Assurance

Engagements other than Audits or Reviews of Historical Financial Information”. Reasonable assurance is a

high level of assurance, but it is not a guarantee that this work will always detect a material misstatement

regarding non-compliance with the requirements of the ESEF Regulation.

Conclusion

Based on the procedures performed and the evidence obtained, we conclude that the financial statements of

the Company, for the year ended December 31, 2021, in XHTML file format “549300UNB6JCR0XZT864-

2021-12-31-el.xhtml”, have been prepared in all material respects, in accordance with the requirements of the

ESEF Regulatory Framework.

Athens, 14 March 2022

The Certified Public Accountant

PricewaterhouseCoopers S.A.

268 Kifissias Avenue

152 32 Halandri Socrates Leptos – Bourgi

SOEL Reg No 113 SOEL Reg No. 41541

Page 104 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

–

In accordance with the International Financial Reporting

Standards as adopted by the European Union

Page 105 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Notes 01.01-31.12.2021

01.01-31.12.2020

Restated*

Revenue

23 154,189,971.98 132,902,223.89

Cost of sales

24 (77,375,617.18) (72,703,538.42)

Gross profit

76,814,354.80 60,198,685.47

Administrative expenses

24 (27,686,314.12) (20,970,877.23)

Net impairment losses on financial assets

11 (882,101.88) (1,050,165.79)

Other operating expenses

25 (580,106.38) (1,630,435.03)

Impairment loss of non-current assets held for sale

4 - (1,676,705.02)

Other operating income

25 4,747,118.22 5,142,101.59

Financial income

26 106,376.68 367,567.99

Financial expenses

26 (3,308,333.62) (3,406,145.28)

Profit before income taxes 49,210,993.70 36,974,026.70

Income taxes

9 (12,449,283.84)

(10,637,348.99)

Net profit after taxes

36,761,709.86 26,336,677.71

Net other comprehensive income not to be reclassified

in profit or loss in subsequent period:

Actuarial losses

16 (34,245.43) (41,583.66)

Income taxes

9 7,533.99 9,980.08

Other total comprehensive income after tax

(26,711.44) (31,603.58)

Total comprehensive income after tax

36,734,998.42 26,305,074.13

Profit per share (Basic and diluted)

29 1.4705 1.0535

Weighted Average Number of Shares (Basic)

29 25,000,000 25,000,000

Weighted Average Number of Shares (Diluted)

29 25,000,000 25,000,000

* Restated amounts due to change in accounting policy (See note 3.1)

The accompanying notes are an integral part of Financial Statements

Page 106 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Page 107 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Notes

Share capital

(Note 13)

Statutory reserve

(Note 14)

Other reserves

(Note 14)

Retained earnings Total

Total Equity at January 1, 2020 50,000,000.00 12,775,515.17 68,287,029.53 102,390,739.64 233,453,284.34

Change in accounting policy (Note 3.1) - - - 3,146,285.76 3,146,285.76

Total Equity at January 1, 2020 (restated) 50,000,000.00 12,775,515.17 68,287,029.53 105,537,025.40 236,599,570.10

Net profit after taxes - - - 26,336,677.71 26,336,677.71

Total comprehensive income after income taxes - - - (31,603.58) (31,603.58)

Total comprehensive income after income taxes - - - 26,305,074.13 26,305,074.13

Dividends payable 2019

- - - (13,470,000.00) (13,470,000.00)

Transfer to reserves - 1,320,705.92 - (1,320,705.92) -

Total Equity at December 31, 2020

50,000,000.00 14,096,221.09 68,287,029.53 117,051,393.61 249,434,644.23

Total Equity at January 1, 2021 50,000,000.00 14,096,221.09 68,287,029.53 117,051,393.61 249,434,644.23

Profit after income taxes - - - 36,761,709.86 36,761,709.86

Other comprehensive loss after income taxes - - - (26,711.44) (26,711.44)

Total comprehensive income after income taxes

- - -

36,734,998.42 36,734,998.42

Dividends payable 2020

- - - (10,000,000.00) (10,000,000.00)

Transfer to reserves - 1,838,085.49 - (1,838,085.49) -

Total Equity at December 31, 2021 50,000,000.00 15,934,306.58 68,287,029.53 141,948,306.54 276,169,642.65

0.00 102,576,362.36

The accompanying notes are an integral part of Financial Statements

6,553,619.36

Page 108 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Notes

01.01-31.12.2021

01.01-31.12.2020

Restated*

Cash flows from Operating Activities

Profit before income taxes 49,210,993.70 36,974,026.70

Adjustments for:

Depreciation and amortisation

27 16,626,697.23 16,770,223.73

Amortisation of subsidies

27 (864,724.92) (864,724.94)

Depreciation right-of-use assets

27 2,129,500.19 2,082,696.64

Finance cost for lease liabilities

26 2,433,961.29 2,472,612.61

(Gain)/ Loss on disposal of property, plant & equipment and non current assets held for sale

4,25 (89,235.16) 401,296.11

Impairment loss of non-current assets held for sale

4 - 1,676,705.02

Financial expenses, net

26 767,995.65 565,964.68

Provisions for cash settled share based payments

28 284,398.46 67,691.29

Provision for staff retirement indemnities

28 1,821,366.68 2,428,514.69

Other Provisions

5,159,016.09 (790,440.68)

Operating profit before working capital changes 77,479,969.21 61,784,565.85

(Increase)/Decrease in:

Inventories 370,743.07 (508,068.80)

Trade and other receivables (3,771,890.98) (59,363.24)

Other long term assets 8 (2,518.00) 1,679,742.68

Increase/(Decrease) in:

Trade accounts payable 3,075,312.96 (781,366.23)

Accrued and other current liabilities 5,957,469.03 (7,311,176.27)

Deferred income 21 (1,061,242.69) (1,239,730.36)

Interest paid (346,009.31) (295,739.03)

Payments for staff leaving indemnities 16 (2,162,000.00) (685,933.76)

Interest income on debtors late payments 26 96,585.78 39,650.30

Income taxes paid 9 (5,228,338.35) (10,186,506.81)

Net cash from Operating Activities 74,408,080.72 42,436,074.33

Cash flow from Investing activities

Grants received 15

11,717,036.41 6,766,044.97

Proceeds from the sale of property, plant and equipment and non current asset held for sale 287,000.00 -

Capital expenditure for property, plant and equipment and intagible assets 4 (40,647,689.68) (15,548,205.95)

Advances for capital expenditure for property, plant and equipment 8 (1,931,968.55) (5,147,718.36)

Interest and related income received

26 9,790.90 327,917.69

Net cash used in Investing Activities (30,565,830.92) (13,601,961.65)

Cash flows from Financing Activities

Net change in long-term borrowings 18 (6,000,000.00) (6,000,000.00)

Interest paid and guarantee fee (528,363.05) (1,098,389.92)

Lease payments 5 (3,692,915.08) (3,641,845.56)

Dividends paid 19 (10,000,000.00) (13,470,000.00)

Net cash used in Financing Activities (20,221,278.13) (24,210,235.48)

Net increase in cash and cash equivalents 23,620,971.67 4,623,877.20

Cash and cash equivalents at the beginning of the year 12 111,354,314.06 106,730,436.86

Cash and cash equivalents of the end of the year 12 134,975,285.73 111,354,314.06

* Restated amounts due to change in accounting policy (See note 3.1)

The accompanying notes are an integral part of Financial Statements

Page 109 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

1. ESTABLISHMENT AND ACTIVITY OF THE COMPANY

“Piraeus Port Authority S.A” (from now on “PPA S.A.” or “Company”) was established in 1930 as Civil Law

Legal Corporation (C.L.L.C.) by Law 4748/1930, which was revised by L.1559/1950 and was ratified by

L.1630/1951 and converted into a Societé Anonyme (S.A.) by Law 2688/1999. The Company is located at

Municipality of Piraeus, at 10 Akti Miaouli street.

The Company’s main objective based on its articles of incorporation is to perform its obligations, conduct

its activities and exercise its faculties under or in respect of the concession agreement between the

Company and the Hellenic Republic dated 13 February 2002 regarding the use and exploitation of certain

areas and assets within the Port of Piraeus, as amended and in force.

The Company may, by way of an illustrative but no means exhaustive list, conduct and be engaged in the

following activities:

- to use all rights assigned to the Company pursuant to the Concession Agreement and maintain,

utilize and exploit all concession assets in accordance with the Concession Agreement;

- provide services and facilities to vessels, cargo and passengers, including ship berthing and cargo and

passenger handling to and from the port;

- install, organize and exploit all kinds of port infrastructure;

- undertake any activities related to the port and all other commercial activities associated with or

reasonably incidental to the operation of the port of Piraeus;

- engage third parties to provide any kind of port services;

- award contracts for works;

- engage in such further activities as are prudent or customary for the proper conduct of its business and

operations in accordance with the Concession Agreement; and

- engage in any and all activities, transactions or operations of a type that are generally conducted by

commercial corporations.

The main activities of the Company are anchoring services of vessels, handling cargo, loading and unloading

services as well as goods storage and car transportation. The Company is also responsible for the

maintenance of port facilities, the supply of port services (water, electricity, telephone connection etc.

supply), for services provided to travelers (coastal and cruise ships) and for renting space to third parties.

The Company is governed by the principles of L. 4548/2018 as replaced the Company Law 2190/1920 and

the founding Law 2688/1999, as amended by Law 2881/2001 and Law 4404/2016.

The duration period of the Company is one hundred (100) years from the effective date of Law 2688/1999.

This period may be extended by special resolution of the shareholders general meeting.

The Company is a subsidiary of COSCO SHIPPING (Hong Kong) Limited which controlled 51% of the voting

rights, with date of transfer of such rights on 10 August 2016. COSCO SHIPPING (Hong Kong) Limited is

100% held by China Shipping Company Limited, which is 100% held by China COSCO SHIPPING Corporation

Limited, a Chinese state-owned company. As a result, China COSCO SHIPPING Corporation Limited, by

indirectly holding 100% of COSCO SHIPPING (Hong Kong) Limited, indirectly held 51% of the voting rights in

PPA.

On 6 October 2021, an over-the-counter transaction took place where COSCO SHIPPING (Hong Kong) Co.,

Limited acquired from Hellenic Republic Asset Development Fund S.A. an additional 16% of shares in PPA

S.A.As a result, the percentage of voting rights of COSCO SHIPPING (Hong Kong) Co., Limited in PPA S.A. has

increased from 51% to 67%. The above transaction has taken place under an Amended Share Purchase

Agreement between COSCO SHIPPING (Hong Kong) Co., Limited as Purchaser and Hellenic Republic Asset

Development Fund S.A. as Seller, following ratification of an Amendment to the Concession Agreement

between the Hellenic Republic and PPA S.A. (Law 4838/2021, Government Gazette 180A/ 01.10.2021).

Page 110 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

COSCO SHIPPING (Hong Kong) Co., Limited is 100% held by China Shipping Group Co. Ltd, which is 100%

held by China COSCO Shipping Corporation Limited. As a result of the transaction, China COSCO Shipping

Corporation Limited indirectly holds 67% of voting rights in PPA S.A.

The Company’s number of employees as at December 31, 2021 amounted to 960. At December 31, 2020,

the respective number of employees was 991.

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS:

(a) Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with International Financial Reporting

Standards (IFRS) as adopted by the European Union (E.U.). These financial statements have been

prepared under the historical cost and going concern basis.

The preparation of financial statements according to the IFRS requires estimates and assumptions to be

made by the management, influencing the assets and liabilities amounts, the disclosure of potential

receivable and liabilities as at the financial statements date, as well as the revenue and expenditure

amounts, during the financial period. Actual results may differ from these estimations. It also requires

management to exercise its judgment in the process of applying the accounting policies which have been

adopted. The areas involving a higher degree of judgment or complexity, or areas where assumptions and

estimates are significant to the financial statements are disclosed in note 2(c).

Management continuously assesses the situation and the possible future impacts from the

macroeconomic environment in Greece as well as the effects of the pandemic COVID-19 evolution in

order to ensure that all necessary actions and initiatives are undertaken to minimize possible

consequences for the Company’s activities. Management cannot accurately forecast the possible

developments; however, based on its assessment as well as the insignificant effect of the pandemic

COVID-19 evolution in its financial position and activities, has reached the conclusion that no additional

impairment provisions of the financial and non-financial assets of the Company are required on December

31, 2021.

(b) Approval of Financial Statements

The Board of Directors of the Company approved the financial statements for the year ended at

December 31, 2021, on March 14, 2022. The abovementioned financial statements are subject to the final

approval of the Annual General Assembly of the Shareholders.

The Company makes estimates and judgments in order to select the most appropriate accounting

principles taking into consideration the future outcome of events and transactions. Estimates and

judgments are continually evaluated and are based on historical experience and other factors, including

expectations of future events that are believed to be reasonable under the circumstances. Estimates and

judgments adopted in the preparation of the annual financial statements are consistent with those

followed in the preparation of the annual financial statements for the year ended December 31, 2021.

On June 30, 2021, the Company conducted an interim assessment of impairment of the recoverable

amount for the sectors that were significantly affected by the impact of the COVID-19 pandemic in the

previous year, although in the first half of 2021 there were positive signs of reversal of the negative

climate of the pandemic, mainly due to the vaccination program that was implemented in Greece and

internationally. Following the mid-term evaluation, the Company proceeded on December 31, 2021 to an

impairment assessment of the recoverable amount, evaluating the new data and the significant recovery

of the cruise sector, only in the field of activity of the Container Terminal which continued, during the

current year, to present losses ,although quite reduced compared to the previous year(Note 2(c) (v)).

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(amounts in Euro unless stated otherwise)

In addition, the Company has included disclosures about the impact of the COVID-19 pandemic in the

notes:

• Trade and other receivables (Note 11)

• Revenue (Note 23)

• Other operating income (Note 25)

The estimates and judgments that have a risk of causing a material adjustment to the carrying amounts of

assets and liabilities within the next financial year are as follows:

(i) Allowance for doubtful accounts receivables and legal cases: Management periodically reassess the

adequacy of allowance for doubtful accounts receivable following an expected credit losses (‘ECLs’)

approach. The expected loss rate is assessed on the basis of historical credit losses adjusted to reflect

current and forward-looking information. ECLs are based on the difference between the contractual cash

flows due and all the cash flows that the Company expects to receive and taking into consideration reports

from its legal department. For the allowance of legal cases management assesses the probability of

negative outcome, as well as possible payment amounts for their settlement.

(ii) Provision for income taxes: According to IAS 12, income tax provisions are based on estimations as to

the taxes that shall be paid to the tax authorities and includes the current income tax for each fiscal year,

the provision for additional taxes which may arise from future tax audits and the recognition of future tax

benefits. The final clearance of income taxes may be different from the relevant amounts which are

included in these financial statements.

(iii) Deferred tax assets on provisions of bad debts: Deferred tax assets are recognized for provisions of

bad debts to the extent that it is probable that, based on tax law, the Company has the right to proceed

with the tax deduction of the related provision. Significant management judgment is required to determine

the amount of deferred tax assets that can be recognized, based upon the particular actions that have been

taken (seizure, auction, filling of relevant lists to the tax authorities etc.) in order to record a provision for

bad debts.

(iv) Depreciation rates: The Company’s assets are depreciated over their estimated remaining useful lives.

These useful lives are periodically reassessed to determine whether the original period continues to be

appropriate. The actual lives of these assets can vary depending on a variety of factors such as

technological innovation and maintenance programs.

(v) Impairment of property, plant and equipment: Property, plant and equipment are tested for

impairment when there are indicators that the carrying amounts may not be recoverable. When value in

use calculations are undertaken, management estimates the expected future cash flows from the asset or

cash-generating unit and chooses a suitable discount rate in order to calculate the present value of those

cash flows.

The impact of COVID-19 pandemic on specific segments of activity (Note 22) as well as the deterioration of

the macroeconomic environment in previous year, led the Company to proceed with an interim assessment

of impairment of the recoverable amount for the sectors of activity that were significantly affected and

recorded losses due to COVID-19 pandemic impact and deteriorating macroeconomic conditions.

Specifically, in 2020, Company's management assessed the segment report and identified indications of

impairment for the container terminal and cruise terminal and has prepared discounted cash flows to

calculate the value in use. The value in use was higher than the carrying amount and consequently, no

impairment loss was recognized.

The Company, evaluating the new data and the significant recovery of the cruise sector, on December 31

2021, conducted an impairment assessment of the recoverable amount, only in the activity sector of the

Container Terminal, which continued in the current year to show losses, although quite reduced compared

to previous year.

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(amounts in Euro unless stated otherwise)

Regarding the Container Terminal, the recoverable amount of the sector was determined from the value in

use which was calculated based on adjusted discounted cash flows and revised business plans of the sector.

The pre-tax interest rate used to discount the projected cash flows is 7.1% (31.12.2020: 7.0%). Sensitivity

analysis was performed on the positive or negative change in the discount rate and income by 0.25% and

0.50% respectively. Based on the results, the present value exceeds the book value of the tangible fixed

assets of the Container Terminal and therefore as at 31 December 2021, no impairment was recorded.

(vi) Contingent liabilities: The existence of contingent liabilities requires from management to make

assumptions and estimates continuously related to the possibility that future events may or may not occur

as well as the effects that those events may have on the activities of the Company.

(vii) Provision for staff leaving indemnities:The cost for staff leaving indemnities is determined based on

actuarial valuations. The actuarial valuation requires management to make assumptions about future salary

increases, discount rates, mortality rates, etc. Management, at each reporting date when the provision is

re-examined, tries to give its best estimate regarding the above mentioned parameters.

(viii) Leases: The Company during the prior year made a significant estimate to determine the “incremental

borrowing rate” that it used to recognize its lease contract with the Greek State because of its special

nature. This contract is the Company's main lease agreement (Note 3 (t)).

In addition, the Company during the current year has made judgments and assessments as to whether the

sub-lease agreements in which the Company is a lessor relate to operating or finance leases. The contracts

to which the Company is a lessor relate mainly to the contract with Piraeus Container Terminal S.A. (Note 3

(t)) as well as contracts related to leased areas to ship repair zone. The management's judgment was based

mainly on the duration of the leases.

Concerning the contract with Piraeus Container Terminal S.A., in previous years management concluded

that it is an operating lease due to its duration and because the lease does not substantially transfer the

risks and rewards of the right of use.

(ix) Share-based payments, cash-settled : At each reporting date, the Company makes estimates to

measure the fair value of the share-based benefit obligation on the data to be included in the relevant

valuation model as the dividend yield, free interest-risk. In addition, the Management of the Company, in

assessing the fair value of the obligation of the specific benefits, makes estimates regarding the

performance of its specific financial figures, as well as estimates regarding the performance of the

beneficiaries of those benefits.

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(amounts in Euro unless stated otherwise)

3. PRINCIPAL ACCOUNTING POLICIES

The Company applies the following accounting policies for the preparation of the accompanying financial

statements:

(a) Tangible Assets: Buildings, technical projects and other building installations are valued at

acquisition cost less accumulated depreciation and possible impairment provision. The privately

owned land, machinery and other equipment, acquired before PPA’s conversion into an S.A.,

1.6.1999, were valued at deemed cost, arising by the Evaluation Committee of article 9 C.L.

2190/1920, while those acquired afterwards are valued at acquisition cost less accumulated

depreciation and possible value impairment provision.

Acquisition cost of a building installation or equipment consists of purchase price include import

duties, plus non-refundable purchase taxes as well as any cost required for the asset to become

operational. Repairs and maintenance are posted to the financial period in which they were incurred.

Significant additions and improvements made at a later stage are capitalized in the relevant asset

cost.

Fixed assets constructed by the Company are posted to the self-construction cost which includes

subcontractors’ fees, materials and technicians’ payroll costs involved in the construction (including

relevant employer contributions) as well as part of general administration expenses.

Assets under construction include fixed assets under construction and are stated at their cost. Assets

under construction are not depreciated until the fixed assets are complete and operational.

(b) Depreciation: Fixed assets are depreciated on a straight line basis according to the following useful

lives per fixed asset category:

Fixed Asset Categories

Useful Life (years)

Buildings, technical & port projects

25-40

Machinery & other equipment

10-30

Motor Vehicles

5-12

Floating transportation means

20-35

Furniture, fixture & fittings

5-10

The residual value, the useful life and the depreciation method of the Company's assets are examined

annually and they are adjusted if necessary.

shall be evaluated for possible impairment loss, when there are indications that the asset’s book value is

over its recoverable amount. When an asset’s book value is over its recoverable amount, the respective

impairment loss is posted to the period financial results. An asset’s recoverable value is the greater

amount between the fair value less cost of disposal and the value in use.

For the purpose of assessing impairment, assets are grouped at the lowest level for which cash flows can

be identified separately (cash generating units). Impairment losses recognized in prior periods in non-

financial assets are reviewed at each reporting date for any reversal.

(d) Investment property: Investment property that includes land and buildings is held by the Company for

long-term rental yields and not for own use. Investment property is measured at cost less depreciation

and impairment.

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(amounts in Euro unless stated otherwise)

The depreciation of buildings is calculated using the straight line method over the buildings’ useful life

which is 30 years. When the carrying amounts of the investment property exceed their recoverable

amounts, the difference (impairment) is charged directly to the statement of comprehensive income.

Land is not depreciated.

Transfers are made to investment property when, and only when, there is a change in use, evidenced by

the end of owner occupation.

(e) Fixed Asset Subsidies: Subsidies are considered as deferred revenue and are recognized as income at

the same depreciation rate as the relevant subsidized fixed assets are depreciated. This income is

deducted from the depreciation in the period financial results.

(f) Intangible Assets: Intangible assets include software purchase cost and any expenditure for software

development. Software depreciation is calculated on a straight line basis and its useful life of 3-4 years.

(g) Borrowing Cost: The Company has adopted the basic accounting policy suggested by IAS 23, where the

borrowing cost recognized as expense in the statement of comprehensive income.

(h) Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be

recovered principally through a sale transaction rather than through continuing use and a sale is

considered highly probable. They are measured at the lower of their carrying amount and fair value less

costs to sell.

The criteria for classifying assets held for sale are deemed to be met only when the sale is highly

probable, and the asset or disposal group is available for immediate sale in the present situation. The

steps required to complete the sale should indicate that it is unlikely that significant changes will be

made to the sale or that the sale decision will be revoked. Management must commit to the plan of sale

of the asset and the sale that is expected to be completed within one year from the date of

classification.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal

group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less

costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss

previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current

asset (or disposal group) is recognised at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised

while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a

disposal group classified as held for sale continue to be recognised.

(i) Financial Instruments: Initial recognition and subsequent measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial

liability or equity instrument of another entity.

i) Financial assets

Initial recognition and measurement

Financial assets of the Company are classified, at initial recognition, as subsequently measured at amortised

cost, fair value through other comprehensive income, and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash

flow characteristics and the Company’s business model for managing them. With the exception of trade

receivables that do not contain a significant financing component or for which the Company has applied the

practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a

financial asset not at fair value through profit or loss, transaction costs.

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(amounts in Euro unless stated otherwise)

Trade receivables that do not contain a significant financing component or for which the Company has

applied the practical expedient, are measured at the transaction price as determined under IFRS 15.

In order for a financial asset to be classified and measured at amortised cost or fair value through other

comprehensive income, it needs to give rise to cash flows that are solely payments of principal and interest

on the principal amount outstanding. This assessment is referred to as the ‘solely payments of principal and

interest’ test and is performed at an instrument level.

The Company’s business model for managing financial assets refers to how the Company manages its

financial assets in order to generate cash flows. The business model determines whether cash flows will

result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by

regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the

date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt

instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses

upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

This category is the most relevant to the Company. The Company measures financial assets at amortised

cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order

to collect contractual cash flows

And

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and

are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised,

modified or impaired.

The Company’s financial assets at amortised cost include trade and other receivables.

Derecognition of financial asset

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets)

is derecognised when:

• The rights to receive cash flows from the asset have expired

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(amounts in Euro unless stated otherwise)

• The Company tranfers a financial asset and the tranfer meets the requirements for write-off The

Company transfers a financial asset if, and only if, it either:

• transfers the contractual rights to receive the cash flows of the financial asset

• retains the contractual rights to receive the cash flows of the financial asset but assumes a

contractual obligation to pay the cash flows to one or more recipients in an arrangement.

When the Company transfers a financial asset, it shall evaluate the extent to which retains the risks and

rewards of ownership of the financial asset.

In this case:

• if the Company transfers substantially all the risks and rewards of ownership of the financial asset,

the entity shall derecognise the financial asset and recognise separately as assets or liabilities any rights

and obligations created or retained in the transfer.

• if the Company retains substantially all the risks and rewards of ownership of the financial asset, the

Company shall continue to recognise the financial asset.

• if the Company neither transfers nor retains substantially all the risks and rewards of ownership of

the financial asset, shall determine whether it has retained control of the financial asset. In this case:

(i) if the Company has not retained control, it shall derecognise the financial asset and recognise separately

as assets or liabilities any rights and obligations created or retained in the transfer.

(ii) if the Company has retained control, it shall continue to recognise the financial asset to the extent of its

continuing involvement in the financial asset.

Impairment of financial assets

The Company recognise an allowance for expected credit losses for all debt instruments not held at fair

value through profit or loss. Expected credit losses are based on the difference between the contractual

cash flows due in accordance with the contract and all the cash flows that the Company expects to receive,

discounted at an approximation of the original effective interest rate. The expected cash flows will include

cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual

terms.

For trade and other receivables, the Company apply a simplified approach in calculating expected credit

losses. Therefore, the Company does not track changes in credit risk, but instead recognises a loss

allowance based on lifetime expected credit losses at each reporting date. For other financial assets, the

ECL is based on the 12-month ECL. The 12-month ECL is the portion of lifetime ECLs that results from

default events on a financial instrument that are possible within 12 months after the reporting date.

However, when there has been a significant increase in credit risk since origination, the allowance will be

based on the lifetime ECL. The Company considered the risk of default, the days past due and the historical

credit losses experienced adjusted to reflect current and forward-looking information per debtor to

measure the expected credit losses for each individual trade and other receivable balance.

At each reporting date, the Company assess whether the credit risk of a financial asset has increased

significantly from the initial recognition. The Company consider a financial asset in default when

contractual payments past due over the Company’s credit policy. However, in certain cases, the Company

may also consider a financial asset to be in default when internal or external information indicates that the

Company is unlikely to receive the outstanding contractual amounts in full before taking into account any

credit enhancements held by the Company. A financial asset is written off when there is no reasonable

expectation of recovering the contractual cash flows.

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(amounts in Euro unless stated otherwise)

ii) Financial liabilities

Initial recognition and measurement

Financial liabilities of the Company are classified, at initial recognition, as financial liabilities at fair value

through profit or loss, loans and borrowings, trade and other payables.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and

payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank

overdrafts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised

cost using the effective interest rate method. Gains and losses are recognised in the statement of

comprehensive income when the liabilities are derecognised as well as through the effective interest rate

amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or

costs that are an integral part of the effective interest rate. The effective interest rate amortisation is

included as finance costs in the statement of comprehensive income.

This category generally applies to interest-bearing loans and borrowings. Loans and borrowings are

classified as current liabilities unless the Group and the Company has the right to defer settlement for at

least twelve months from the date of financial position date.

Trade and other payables

Trade payables are obligations for goods or services that have been acquired in the ordinary course of

business by suppliers. Accounts payable are classified as current liabilities if payment is due within one year

or less. If not, they are presented as non-current liabilities. Trade account payables subsequent to the initial

recognition are measured at amortized cost using the effective interest method.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or

expires.

When an existing financial liability is replaced by another from the same lender on substantially different

terms, or the terms of an existing liability are substantially modified, such an exchange or modification is

treated as the derecognition of the original liability and the recognition of a new liability.The difference in

the respective carrying amounts is recognised in the statement of comprehensive income.

iii) Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated

statement of financial position if there is a currently enforceable legal right to offset the recognised

amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities

simultaneously.

(j) Cash on hand and in banks: The Company considers as cash (apart from cash on hand) time deposits and

liquid investments maturing in three months from the acquisition date.

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(amounts in Euro unless stated otherwise)

(k) Provisions: Provisions are recognized when the Company has a present obligation (legal or constructive)

as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be

required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If

the effect of the time value of money is material, provisions are measured by discounting the expected

future cash flows at a pre-tax rate that reflects current market assessments of the time value of money

and the risks specific to the liability. Where discounting is used, the increase of the provision due to the

passage of time is recognized as a borrowing cost. Provisions are reviewed at each reporting date, and if it

is no longer probable that an outflow of resources embodying economic benefits will be required to settle

the obligation, they are reversed. Provisions are used only for expenditures for which they were originally

recognized. No provisions are recognized for future operating losses. Contingent assets and contingent

liabilities are not recognized.

(l) Income Tax (Current and Deferred): Current and deferred income tax assessment are based on the relevant

amounts of the financial statements, according to tax Laws effective in Greece. Current income tax

concerns tax on the Company taxable profits, adjusted according to Greek tax Law and calculated using the

current tax rate. Deferred tax is assessed using the liability method in all temporary tax differences on the

balance- sheet date between the tax base and the accounting value of assets and liabilities. The expected

tax consequences from the temporary tax differences are assessed and stated either as deferred tax

liabilities or as deferred tax assets. Deferred tax assets are posted to the financial statements for all

allowable temporary differences and tax losses carried forward as far as it is likely to set off these allowable

temporary differences against available taxable profits.

The accounting value of deferred tax assets is revised at each balance- sheet date and it is reduced up to

the point that it is not likely to have enough taxable profits, where part or all of the deferred tax assets may

be set off against. Current income tax receivable and liabilities for current and previous financial years are

valued at the amount expected to be paid to Tax Authorities (or be refunded by them), using the tax rates

(and tax Laws) in force up to the balance- sheet date.

(m) Revenue Recognition: Revenue is the amount of consideration expected to be received in exchange for

transferring promised services to a customer, excluding amounts collected on behalf of third parties (value-

added tax, other sales taxes etc.).

Revenue is recognized when (or as) a performance obligation is satisfied by transferring the control of a

promised service to the customer. A customer obtains control of a service if it has the ability to direct the

use of and obtain substantially all of the remaining benefits from that service. Control is transferred over

time or at a point in time when the service is provided to the customer.

Management has determined that contracts in general comprise of a single performance obligation and

prices are fixed, based on stand-alone selling prices derived from price lists. Revenue is recognised at a

point in time when the service is provided to the customer.

Revenue arising from services is recognised at a point in the time in the accounting period in which the

services are rendered, and it is measured based on stand-alone selling prices derived from price lists.

A receivable is recognised when there is an unconditional right to consideration for the performance

obligations to the customer that are satisfied.

A contract asset is recognized when the performance obligation to the customer is satisfied before the

customers pays or before payment is due, usually when services are transferred to the customer before the

Company has a right to invoice.

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(amounts in Euro unless stated otherwise)

A contract liability is recognized when there is an obligation to transfer services to a customer for which the

Company has received consideration from the customer (prepayments) or there is an unconditional right to

receive consideration before the Company transfers a service (deferred income). The contract liability is

derecognized when the promise is fulfilled and revenue is recorded in the profit or loss statement.

(n) Inventories: Materials and spare parts related to the Company mechanical equipment maintenance are

valued at the lower of acquisition cost and net realisable value and their cost is determined on the

weighted average cost basis. Net realizable value is estimated based on the current selling price in the

ordinary course of business, less selling expenses. Materials are posted to inventories on purchase and

recognized as expenditure on consumption.

(o) Defined benefit plan: The provision for staff termination indemnities recorded in the statement of financial

position for the defined benefit plan is the present value of the liability for the defined benefit in addition

to changes occurring from any other actuarial profit or loss and the past service cost. The discount rate is

considered as the yield, at the balance sheet date, of high quality European corporate bonds which have a

maturity which approaches the time period of the Company’s liability.

The liability for this plan is determined using the projected unit credit method from an independent valuer

and includes the present value of accrued services during the year, the interest on future liabilities, the

prior service cost and the actuarial gains or losses.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net

interest and the return on plan assets, are recognized immediately in the statement of financial position

with a corresponding debit or credit to the actuarial differences reserve through other comprehensive

income in the period in which they occur. Remeasurements are not classified to profit or loss in subsequent

periods.

(p) Leases:

a) Company as lessee

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased

asset is available for use by the Company. Each lease payment is divided between the lease liability and the

finance cost. The interest on the lease liability for each period of the lease term is equal to the amount

resulting from the application of a fixed periodic interest rate on the outstanding balance of the lease

liability. The right of use asset is depreciated over the shorter period between the useful life of the asset

and the lease contact duration.

The assets and liabilities arising from the lease are initially valued at present value.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities

include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable,

• variable lease payment that are based on an index or a rate, , which are initially measured using the

ratio or interest rate at the date of commencement of the lease term

• amounts expected to be payable by the lessee under residual value guarantees,

• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that

option.

The lease payments are discounted using the interest rate implicit in the lease. If that rate can not be

determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to

pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment

with similar terms and conditions.

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(amounts in Euro unless stated otherwise)

After the commencement date, the lease liability is measured by increasing the carrying amount to reflect

interest on the lease liability and by reducing the carrying amount to reflect the lease payments made.

The lease liability is remeasured to reflect any reassessment or lease modifications or to reflect revised in-

substance fixed lease payments.

The Company elected to use the on-going recognition exemptions for lease contracts that, at the

commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-

term leases), and lease contracts for which the underlying asset is of low value (low-value assets).

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line

basis as an expense in profit or loss.

Finally, the Company chose not to separate the non-lease components from lease components, and instead

account for each lease component and any associated non-lease components as a single lease component

for all classes of underlying assets to which the right of use relates.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability,

• any lease payments made at or before the commencement date less any lease incentives received,

• any initial direct costs, and

• an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,

restoring the site on which it is located or restoring the underlying asset to the condition required by the

terms and conditions of the lease, unless those costs are incurred to produce inventories. The lessee incurs

the obligation for those costs either at the commencement date or as a consequence of having used the

underlying asset during a particular period.

The Company presents the rights of use of the assets of the assets, which are not investment properties, in

the account "Right of use assets".

b) Company as lessor

The leases in which the Company is a lessor relate solely to sub-leases and are classified as finance or

operating. The Company's sub-lease agreements at 31 December 2021 and 31 December 2020 relate

exclusively to operating leases.

Revenue from rental income arising, from operating leases, is accounted for on a straight-line basis over

the lease terms.

The Company reflects the future tax impacts of leases and recognises deferred tax. When recognising

deferred tax the Company has assessed the lease asset and lease liability together as a single or ‘integrally

linked’ transaction and assessed the net temporary difference.

(q) National Insurance Programs: The obligation for main or supplementary pension provision is covered by

the main National Insurance Department (IKA- Social Insurance Institute) which concerns private sector and

provides retirement, medical and pharmaceutical services. Each employee is obliged to contribute part of

his salary to the National Insurance Department, while part of the total contribution is paid by the

Company. On employee retirement the National Insurance Department is responsible for their pension

payments. Therefore, the Company has no legal or presumed obligation for future payments according to

this program.

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(amounts in Euro unless stated otherwise)

The employees of PPA are entitled upon retirement an allowance from the Unified Fund for Supplementary

Benefits and Lump-sum Benefits (ΕΤΕΑΕP) according to the statutory provisions of the Fund and the Law N.

2084/92.

For the two welfare sectors, dockworkers and employees of PPA, the granted amount is currently

determined on the basis of the provisions of article 35 of Law N.4387 / 12-05-2016 (FEK), considering the

average of the total remuneration – without accounting holiday bonus - on which were calculated social

insurance contributions for welfare for the five-year period 2009-2013 and with the employee's work year

experience until 31/12/2013.

To this amount is added the total of insurance contributions for welfare from 01/01/2014 and afterwards.

Every employee is required to contribute a part of his monthly salary to the fund, while part of the total

contribution is covered by the Company.

This fund is a legal public company and is responsible for paying the above benefits to employees.

Consequently, the Company has no legal or constructive obligation to pay future benefits under this plan.

(r) Earnings per Share: Earnings per share are calculated by dividing the financial period net profit,

corresponding to ordinary shareholders, by the weighted average number of ordinary shares issued. The

accompanying financial statements did not include any profit decreasing bonds or other stock, convertible

to shares. Consequently, diluted earnings per share were not calculated.

(s) Dividends: Dividends are accounted for when receipt rights are finalized by the resolution of the

shareholders general meeting.

(t) Concession Agreement to PPA S.A.: In persuasion of the 35th article of 2932/2001 Law, Greek Government

and the Company signed on 13.2.2002 the Concession Agreement, by which the government transfers its

exclusive right of use and exploitation of port zone lands, buildings and facilities of Piraeus Port to the

Company.

This concession was agreed for fixed period initial duration of 40 years, beginning on the day the

agreement and ending on 13.2.2042. The initial duration is possible to be extended once or several times

by Law. And a new written agreement and modification of the 4.1 article of the Concession Agreement.

With the Common Ministry Decision (CMD) no. 8322/3-12-2008, published in Government Paper 2372/21-

11-2008, the Concession Agreement duration has been modified from 40 to 50 years, beginning on the

13/2/2002 (initial signature date) and ending on the respective date of the year 2052.

Management has examined whether the contract for the concession of the exclusive right to use and

exploit land, buildings and facilities at the Port of Piraeus Land Zone fall under the scope of the provisions

of Interpretation 12. Management concluded that the concession does not fall under the scope of

application of Interpretation 12, as it is a lease contract.

Government has received 1% of the Company’s consolidated annual income for each of the first 3 years of

the concession. The above percentage has increased to 2% of the Company’s consolidated annual income

after the 3rd year, on the same calculation basis. Based on the new Concession Agreement signed on

24.6.2016 the percentage to Greek State has increased to 3.5% of the Company’s consolidated annual

income excluding finance income with fixed minimum fee amounted to € 3.5 million.

As of 1/1/2019, due to the adoption of IFRS 16, in the expenses is recorded only the variable amount of the

concession fee while the fixed minimum fee amounted to € 3.5 million is included to the right-of-use assets

and lease liability (Note 5).

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(amounts in Euro unless stated otherwise)

The Company most significant obligations arising from this agreement are:

• Constant rendering of port services

• Responsibility for the installation, improvement and maintenance of the security level in Piraeus

Port.

• Ensure fair deal to all port users

• Payment of maintenance expenditure for all the property included in the Concession Agreement

The Concession Agreement was amended by Law 4838/2021, Government Gazette 180A/ 01.10.2021 and

the main points are the following:

• non-imposition of liquidated damages for the non-time completion of the first mandatory

enhancements under article 16 of the concession agreement par 5 (a) (i)

• extension of the first investment period for five (5) years

• possibility of suspension of the first investment period - establishment of an amicable settlement

mechanism - possibility of replacing of the first investment period

• non-imposition of liquidated damages against PPA in case of suspension

• extension of the second investment period

• introduction of a flexible procedure for the approval of final studies and non-mandatory PPA

investments

• extension of the grace for the partial achievement of minimum levels of services

(u) Concession Agreement of Piers II and III with COSCO Pacific Ltd (currently COSCO Shipping Port Ltd): The

Law 3755/2009 ratified by the Parliament ruled the concession of use and operation of Piers II and III

between the Company and COSCO Pacific Ltd. The contract term provided for 35 years at fair value of € 4.3

billion, of which 79% is guaranteed by future income and additional investment at € 620 million to be

implemented. The Concession Agreement entered into force on 1/10/2009 and till 31/5/2010 the

operation of Pier II was provided by the staff of the Company as a subcontractor. Within this period the

project in Pier I, which was constructed by the Company, was completed and started its operation by

providing services directly to Company’s clients.

The Agreement B. Modification of the original Concession Agreement (OG 52 / 30.03.2009) between the

Company and PCT S.A., following the 'Practical Process Amicable Settlement', has been published in the

Government Gazette 269 / 24.12.2014.

According to the above, the payment of the guaranteed consideration was suspended until 31.12.2021 and

has been replaced by paying only Variable consideration that arises as a percentage on consolidated

revenues of PCT SA from the previous contract year.

The calculation of fixed consideration I & II is adjusted regarding the length of exploitation and the

corresponding sq.m (Note 21). The concession consideration is calculated and recognized in income for the

period in accordance with the terms of the contract and considered as lease contract based on IFRS 16

(Notes 2c and 3p).

The payment of Variable Consideration is performed on a monthly basis in arrears and the payment of the

standard exchange every six months in advance (Note 21).

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(amounts in Euro unless stated otherwise)

(v) Benefits that depend on the value of share and are settled in cash:

The Company in accordance with IFRS 2 measures the services it obtains and the liability it undertakes at

the fair value of the liability. Until the settlement of the liability, the entity shall remeasure the fair value of

the liability at the reporting date as well as at the settlement date, and any changes in fair value are

recognized in profit or loss for the period. The obligation is measured, initially and at each reporting date

until the final settlement, at the fair value of the units on the increase in the share price from the grant

date and the respective redemption date, with the application of a valuation model taking into account the

terms and conditions under which the units have been granted. The fair value of the long-term reward plan

was determined using the Binomial model taking into account the share price, the expected volatility of the

share, the dividend yield as well as the free interest rate (Note 28) and the liability is recognized in other

long-term liabilities.

(w) Foreign Currency Conversion: All the operations of the Company are all performed in Euro. Transactions

made in foreign currencies are converted into Euro using exchange rates effective at transaction date.

Receivable and liabilities in foreign currency are adjusted at the financial statements preparation date in

order to state the exchange rates effective at that date. Gains or losses arising from these adjustments are

included in the Statement of comprehensive income as foreign exchange gains or losses.

Changes in accounting policies and disclosures

The accounting policies adopted in the preparation of the annual financial statements, are consistent with

those followed for the year ended December 31, 2020, except for the adoption of new standards and

interpretations applicable for fiscal periods beginning at January 1, 2021 as well as the change in the

accounting principle regarding the implementation of the final agenda decision under the heading

"Allocation of benefits in periods of service in accordance with International Accounting Standard (IAS) 19"

(Note 3.1).

New standards, amendments to standards and interpretations: Certain new standards, amendments to

standards and interpretations have been issued that are mandatory for periods beginning on or after January

1, 2021. The Company’s evaluation of the effect of these new standards, amendments to standards and

interpretations is as follows:

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Standards and Interpretations effective for the current financial year

IFRS 16 (Amendment) ‘Covid-19-Related Rent Concessions’

The amendment provides lessees (but not lessors) with relief in the form of an optional exemption from

assessing whether a rent concession related to COVID-19 is a lease modification. Lessees can elect to

account for rent concessions in the same way as they would for changes which are not considered lease

modifications.

IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) ‘Interest rate benchmark reform – Phase 2’

The amendments complement those issued in 2019 and focus on the effects on financial statements when

a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the

reform. More specifically, the amendments relate to how a company will account for changes in the

contractual cash flows of financial instruments, how it will account for the change in its hedging

relationships and the information it should disclose. The Company evaluated the above amendments and

concluded that there is no replacement of the old interest rates in contracts of financial elements and

liabilities and consequently there is no impact on its financial statements as at 31 December 2021.

Regarding the long-term loans held by the Company (Note 18), as at 31 December, the loan is subject to a

floating EURIBOR reference rate which has not been transferred to another reference rate.

Standards and Interpretations effective for subsequent periods

IFRS 16 (Amendment) ‘Covid-19-Related Rent Concessions’ (effective for annual periods beginning on or

after 1 April 2021).The amendment extends the application period of the practical expedient in relation to

rent concessions by one year to cover rental concessions that reduce leases due only on or before 30 June

2022.

IAS 16 (Amendment) ‘Property, Plant and Equipment – Proceeds before Intended Use’ (effective for

annual periods beginning on or after 1 January 2022). The amendment prohibits an entity from deducting

from the cost of an item of PP&E any proceeds received from selling items produced while the entity is

preparing the asset for its intended use. It also requires entities to separately disclose the amounts of

proceeds and costs relating to such items produced that are not an output of the entity’s ordinary

activities.

IAS 37 (Amendment) ‘Onerous Contracts – Cost of Fulfilling a Contract’ (effective for annual periods

beginning on or after 1 January 2022). The amendment clarifies that ‘costs to fulfil a contract’ comprise the

incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling

contracts. The amendment also clarifies that, before a separate provision for an onerous contract is

established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the

contract, rather than on assets dedicated to that contract.

IAS 1 (Amendment) ‘Classification of liabilities as current or non-current’ (effective for annual periods

beginning on or after 1 January 2023). The amendment clarifies that liabilities are classified as either

current or non-current depending on the rights that exist at the end of the reporting period. Classification is

unaffected by the expectations of the entity or events after the reporting date. The amendment also

clarifies what IAS 1 means when it refers to the ‘settlement’ of a liability. The amendment has not yet been

endorsed by the EU.

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(amounts in Euro unless stated otherwise)

IAS 1 (Amendments) ‘Presentation of Financial Statements’ and IFRS Practice Statement 2 ‘Disclosure of

Accounting policies’ (effective for annual periods beginning on or after 1 January 2023). The amendments

require companies to disclose their material accounting policy information and provide guidance on how to

apply the concept of materiality to accounting policy disclosures. The amendments have not yet been

endorsed by the EU.

IAS 8 (Amendments) ‘Accounting policies, Changes in Accounting Estimates and Errors: Definition of

Accounting Estimates’ (effective for annual periods beginning on or after 1 January 2023). The

amendments clarify how companies should distinguish changes in accounting policies from changes in

accounting estimates. The amendments have not yet been endorsed by the EU.

IΑS 12 (Amendments) ‘Deferred tax related to Assets and Liabilities arising from a Single Transaction’

(effective for annual periods beginning on or after 1 January 2023). The amendments require companies to

recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and

deductible temporary differences. This will typically apply to transactions such as leases for the lessee and

decommissioning obligations. The amendments have not yet been endorsed by the EU.

Annual Improvements to IFRS Standards 2018–2020 (effective for annual periods beginning on or after 1

January 2022)

IFRS 9 ‘Financial instruments’

The amendment addresses which fees should be included in the 10% test for derecognition of financial

liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or

fees paid to third parties will not be included in the 10% test.

IFRS 16 ‘Leases’

The amendment removed the illustration of payments from the lessor relating to leasehold improvements

in Illustrative Example 13 of the standard in order to remove any potential confusion about the treatment

of lease incentives.

3.1 CHANGE IN ACCOUNTING POLICY

The IFRS Interpretations Committee issued in May 2021 the final decision on the agenda entitled

"Distribution of benefits in periods of service in accordance with International Accounting Standard (IAS)

19", which includes explanatory material on how to recognized benefits in periods service on a specific

program of defined benefits based to that defined in article 8 of L.3198 / 1955 regarding the provision of

compensation due to retirement (the "Program of Fixed Benefits of Labor Law").

Based on the above decision, the way in which the basic principles of IAS 19 were applied in Greece in this

regard in the past, and consequently, according to what is defined in the “IASB Due Process Handbook (par.

8.6)”, is differentiated, entities that prepare their financial statements in accordance with IFRS are required

to amend their accounting policies in this regard.

Until the issuance of the agenda decision, the Company applied IAS 19 by recognized the benefits defined

by article 8 of L.3198/1955, L.2112/1920, and its amendment by L.4093/2012 in the period from the

recruitment to the completion of 16 years of work following the scale of Law 4093/2012.

The application of this final Decision in the attached financial statements, has as a result the recognition of

benefits in the last 16 years until the date of retirement of employees following the scale of Law

4093/2012.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Based on the above, the Management of the Company decided that the implementation of the above final

decision has been treated as a change in accounting policy, applying the change retrospectively from the

beginning of the first comparative period, in accordance with paragraphs 19-22 of IAS 8. For the

distribution of the cumulative actuarial gain/losses the proportional adjustment as at January 1, 2020 of

cumulative actuarial gain/losses was implemented.

The effect from the implementation of the final decision for each specific item of the financial statements

that is affected is as follows:

In addition, due to the change of accounting policy the profit before income taxes, interest and

depreciation (EBITDA) of the year 2020 increased by € 44,356.29 and amounted to € 58,000,799.42

(Published 31.12.2020: € 57,956,443.13).

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

4. PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment are analysed as follows:

Buildings Machinery & equipment

Motor vehicles and floating

docks

Furniture, fixtures and

fittings

Advances & Assets

under construction

Total

ACQUISITION COST

Balance January 1, 2020 256,400,163.38 159,280,463.64 44,655,182.32 9,709,204.41 7,291,245.34 477,336,259.09

Addi ti ons 53,632.30 687,892.34 8,583.20 308,393.42 15,981,979.65 17,040,480.91

Dispos a l s / write off

- (2,010,271.46) - (626.01) (60,352.32) (2,071,249.79)

Non current assets held for sale

- (8,138,347.13) - - - (8,138,347.13)

Transfers 139,400.00 2,063,200.00

233,270.00

(2,435,870.00) -

Transfers to intangibl es (Note 7) - - - - (1,218,076.30) (1,218,076.30)

Balance December 31, 2020 256,593,195.68 151,882,937.39 44,663,765.52 10,250,241.82 19,558,926.37 482,949,066.78

Addi ti ons 338,323.95 434,772.07

210,590.00

236,269.54 37,458,079.50 38,678,035.06

Dispos a l s / write off

- - - (1,986,496.34) (1,986,496.34)

Transfers 239,484.80

1,194,643.80 -

620,857.54

(2,054,986.14) -

Transfers to intangibl es (Νote 7)

- - - - (506,489.45) (506,489.45)

Balance December 31, 2021 257,171,004.43 153,512,353.26 44,874,355.52 9,120,872.56 54,455,530.28 519,134,116.05

DEPRECIATION

(88,789,001.99) (97,338,242.67) (10,163,957.60) (6,721,673.06) - (203,012,875.32)

Depreci ation

(7,890,676.52) (6,303,114.87) (1,496,534.90) (583,831.13) - (16,274,157.42)

Non current assets held for sale

- 6,278,142.11 - - - 6,278,142.11

Dispos a l s - 1,578,675.35 - 626.00 - 1,579,301.35

Depreciation December 31, 2020 (96,679,678.51) (95,784,540.08) (11,660,492.50) (7,304,878.19) - (211,429,589.28)

Depreci ation (Note 27)

(7,902,667.01) (5,957,847.58) (1,505,148.44) (633,330.43) - (15,998,993.46)

Dispos a l s / write off

- - - 1,972,231.50 - 1,972,231.50

(104,582,345.52) (101,742,387.66) (13,165,640.94) (5,965,977.12) - (225,456,351.24)

NET BOOK VALUE

January 1,2020 167,611,161.39 61,942,220.97 34,491,224.72 2,987,531.35 7,291,245.34 274,323,383.77

December 31, 2020 159,913,517.17 56,098,397.31 33,003,273.02 2,945,363.63 19,558,926.37 271,519,477.50

December 31, 2021 152,588,658.91 51,769,965.60 31,708,714.58 3,154,895.44 54,455,530.28 293,677,764.81

Depreciation January 1, 2020

Depreciation December 31, 2021

The PPA S.A. property, plant and equipment are insured with various insurance companies. Insurance covers

compulsory insurance of transport vehicles and machinery up to 30.09.2022 as well as general civil liability

up to 31.10.2022 and employer liability up to 30.09.2022, property and floating tanks insurance up to

31.10.2022 .

During the year ended December 31, 2021, the total investment in property, plant and equipment

amounted to € 38,678,035.06 (31.12.2020 € 17,040,480.91) and related mainly to the purchase of

machinery and other equipment as well as port infrastructure. During the current year, the Company made

payments of € 40,647,689.68 (01.01.2020-31.12.2020 : € 15,548,205.95) to suppliers related to investments

in tangible and intangible fixed assets.

There is no property, plant and equipment that has been pledged as security.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Non-current assets held for sale

In December 2020, the Company’s management approved the disposal of four (4) Quay Cranes with a net

book value of € 1,860,205.02. For the above quay cranes, taking into account the valuation that was

obtained by an independent appraiser, Company conducted a relevant tender process to sell the assets

directly at scrap value of € 185,000.00 with a corresponding cost to sell of € 1,500.00. As the net book

value of the quay cranes exceeded the fair value less cost to sell, an impairment loss was recorded

amounting to € 1,676,705.02, from the application of IFRS 5. The impairment loss was charged to the "PCT-

Concession of Pier II and III" segment and is included in the statement of comprehensive income. The

difference of € 183,500.00 between the net book value of the property, plant and equipment and the

impairment loss, was reclassified under non-current assets held for sale, applying the provisions of IFRS 5

”Non-current assets held for sale and discontinued operations”.

During the current year, the four quay cranes that were recorded in the non-current assets held for sale

amounted to € 183,500.00 were sold at the price of € 287,000.00 resulting in an equal reduction in the

value of non-current assets available for sale. The profit of the sale amounted to € 103,500 was recognised

in the other income of the current year (Note 25).

5. RIGHT OF USE ASSETS – LEASE LIABILITIES

The recognised right-of-use assets and lease liabilities as at December 31, 2021 and December 31, 2020 are

as follows:

31.12.2021 31.12.2020

Right-of-use assets

Concession Agreement with Greek State 58,829,548.32 60,782,396.40

Motor vehicles 400,796.03 420,993.05

59,230,344.35 61,203,389.45

31.12.2021 31.12.2020

Lease-liabilities

Current 1,307,885.46 1,236,796.23

Non-current 64,128,097.26 65,301,685.19

65,435,982.72 66,538,481.42

The amounts recognized in the statement of comprehensive income and the movement of the right of use

of assets and the lease liability from 1 January 2021 to 31 December 2021 as well as the corresponding

period last year are as follows:

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(amounts in Euro unless stated otherwise)

Concession Agreement

with Greek State

Motor

vehicles Total Lease liability

Balance 1.1.2021 60,782,396.40 420,993.05 61,203,389.45 66,538,481.42

Additions - 156,455.09 156,455.09 156,455.09

Cancellation / modification of contracts -

- - -

Depreciation (Note 27)

(1,952,848.08) (176,652.11) (2,129,500.19) -

Finance cost (Note 26) - - -

2,433,961.29

Payments - - -

(3,692,915.08)

Balance 31.12.2021 58,829,548.32 400,796.03

59,230,344.35

65,435,982.72

Concession Agreement

with Greek State

Motor

vehicles Total Lease liability

Balance 1.1.2020 62,735,244.48 249,230.90 62,984,475.38 67,407,072.16

Additions - 363,601.60 363,601.60 363,601.60

Cancellation / modification of contracts -

(61,990.89) (61,990.89) (62,959.39)

Depreciation (Note 27)

(1,952,848.08) (129,848.56) (2,082,696.64) -

Finance cost (Note 26) - - -

2,472,612.61

Payments - - -

(3,641,845.56)

Balance 31.12.2020 60,782,396.40 420,993.05

61,203,389.45

66,538,481.42

Right-of-use assets

Lease expense less than 12 months for 2021 amounted to € 171,598.90 (31.12.2020: € 204,040.97) and is

included in Expenses (Note 24) and specifically in the line “Third-party services”.

6. INVESTMENT PROPERTY

For the year ended December 31, 2021:

Land Buildings Total

Net Book Value at January 1, 2021 734,338.35 0.03 734,338.38

Additions - - -

Depreciation - - -

Net Book Value at December 31, 2021 734,338.35 0.03 734,338.38

December 31, 2021

Cost 734,338.35 0.03 734,338.38

Accumulated Depreciation - - -

Net Book Value 734,338.35 0.03 734,338.38

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(amounts in Euro unless stated otherwise)

For the year ended December 31, 2020:

Land Buildings Total

Net Book Value at January 1, 2020 734,338.35 0.03 734,338.38

Additions - - -

Depreciation - - -

Net Book Value at December 31, 2020 734,338.35 0.03 734,338.38

December 31, 2020

Cost 734,338.35 0.03 734,338.38

Accumulated Depreciation - - -

Net Book Value 734,338.35 0.03 734,338.38

Investment property includes seven land plots and four buildings (commercial spaces and schools) located

in Athens and Piraeus.

There is no investment property that has been pledged as security.

The fair value of investment property as at December 31, 2021 amounted to € 5.6 million (December 31,

2020: € 5.3 million) according to the valuation of the independent appraiser 'Mavrakis Certified Appraisers'.

The valuation, as a Level 3 (Note 32) fair value measurement is based on comparative assessment method,

residual replacement cost method and cost approach depending on the particular characteristics of each

property.

Income from rent for the above investment property for the year ended December 31, 2021 and December

31, 2020 amounted to € 19,219.30 and € 18,499.30 respectively and is included in other operating income

(Note 25). For the years ended December 31, 2021 and 2020 there were no repair and maintenance costs

for investment property.

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(amounts in Euro unless stated otherwise)

7. INTANGIBLE ASSETS

For the year ended December 31, 2021:

Software

Net Book Value January 1, 2021 1,409,534.21

Additions 88,455.80

Transfers from assets under construction (Note 4) 506,489.45

Amortisation of the year (Note 27) (627,703.77)

Net Book Value December 31, 2021 1,376,775.69

January 1, 2021

Cost 10,460,136.00

Accumulated amortisation (9,050,601.79)

Net Book Value 1,409,534.21

December 31, 2021

Cost 11,055,081.25

Accumulated amortisation (9,678,305.56)

Net Book Value 1,376,775.69

For the year ended December 31, 2020:

Software

Net Book Value January 1, 2020 665,112.76

Additions 22,411.46

Transfers from assets under construction (Note 4) 1,218,076.30

Amortisation of the year (Note 27) (496,066.31)

Net Book Value December 31, 2020 1,409,534.21

January 1, 2020

Cost 9,219,648.24

Accumulated amortisation (8,554,535.48)

Net Book Value 665,112.76

December 31, 2020

Cost 10,460,136.00

Accumulated amortisation (9,050,601.79)

Net Book Value 1,409,534.21

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(amounts in Euro unless stated otherwise)

8. OTHER NON-CURRENT ASSETS

This account consists of the following:

31/12/2021 31/12/2020

Guarantees to third parties 323,407.75 323,407.75

Car leases guarantees 77,605.00 75,087.00

Advances to suppliers

5,796,696.77

4,753,085.85

Total 6,197,709.52 5,151,580.60

In the previous year an advance payment amounting to € 5,147,718.36 was made to a supplier for the

initiation of the construction of the project "Cruise Terminal Expansion". According to the signed contract,

an amount of 5% on the issued invoices for the execution of the project, is withheld from the initial

advance payment, which on December 31, 2020 amounted to € 394,632.51 and the corresponding

receivable amounted to € 4,753,085.85. At December 31, 2021, an amount of € 840,996.55 was withheld

on the value of the issued invoices and the receivable amounted to € 3,912,089.30.

During the current year, an advance payment of € 941,444.13 was given to a supplier for the start of works for

the project "Improvement of Infrastructure of the Shipbuilding and Repair Zone". According to the signed

contract, during the execution of the project, a percentage of 5% of the issued invoices has been withheld

from the amount of the advance payment which amounts to € 18,212.91 on December 31, 2021 and the

corresponding receivable was set at the amount of € 923,231.22.

In addition, during the current year, an advance payment of € 990,524.42 was given to a supplier for the start

of works for the project "Expansion of Car Terminal Station (Port of Heraklion)". According to the signed

contract, during the execution of the project, a percentage of 5% of the issued invoices has been withheld

from the amount of the advance payment which amounted to € 29,148.17 on December 31, 2021 and the

corresponding recevable was set at the amount of € 961,376.25.

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(amounts in Euro unless stated otherwise)

9. INCOME TAX (CURRENT AND DEFERRED)

The income tax rate according to article 22 of law 4646/2019 amounted to 24% for the fiscal year 2020. With

Law 4799/2021 the income tax rate was reduced to 22% for the financial income of the fiscal year 2021 and

afterward.

The amount of income taxes which are reflected in the statements of comprehensive income are as follows:

Statement of comprehensive income 1/1-31/12/2021

1/1-31/12/2020

Restated*

Current income taxes 11,464,004.35 9,587,609.17

Deferred income taxes 985,279.49 1,049,739.82

Total 12,449,283.84 10,637,348.99

Other Comprehensive Income

Deferred income taxes (7,533.99) (9,980.08)

Total (7,533.99) (9,980.08)

* Restated amounts due to change in accounting policy (See note 3.1)

The payments made for the income tax liability of the current and prior year amounted to € 5,228,338.35

and € 10,186,506.81, respectively.

The reconciliation of income taxes reflected in statements of income and the amount of income taxes

determined by the application of the Greek statutory tax rate to pretax income is summarized as follows:

2021

2020 Restated*

Profit pre-tax income 49,210,993.70 36,974,026.70

Reversing/ originating temporary differences 615,064.63 1,043,582.58

Change in tax rates

558,413.82 -

12,449,283.84 10,637,348.99

December 31

Income tax calculated at the nominal applicable tax rate in effect

(2021:22% and 2020: 24%)

10,826,418.61

8,873,766.41

Tax effect of non-taxable income and expenses not deductible for tax

purposes

449,386.78

720,000.00

Income tax reported in the statements of comprehensive income

* Restated amounts due to change in accounting policy (See note 3.1)

Greek tax laws and regulations are subject to interpretations by the tax authorities. Tax returns are filed

annually but the profits or losses declared for tax purposes remain provisional until such time, as the tax

authorities examine the returns and the records of the taxpayer and a final assessment is issued. Tax losses,

to the extent accepted by the tax authorities, can be used to offset profits of the five fiscal years following

the fiscal year to which they relate.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Tax Compliance certificate:

From the financial year 2011 and onwards, all Greek Societe Anonyme and Limited Liability Companies that

are required to prepare audited statutory financial statements must in addition obtain an “Annual Tax

Certificate” as provided by Article 65Α of L.4174/2013. This “Annual Tax Certificate” must be issued by the

same statutory auditor or audit firm that issues the audit opinion on the statutory financial statements. For

tax years commencing from 1/1/2016 onwards, the tax compliance report becomes optional according to

the provisions of Law 4410/2016. Upon completion of the tax audit, the statutory auditor or audit firm

must issue to the entity a "Tax Compliance Report" which will subsequently be submitted electronically to

the Ministry of Finance, by the statutory auditor or audit firm.

For the Company, the tax audit for the financial years 2011 to 2020 was performed by the statutory

auditors. The tax audit for the current financial year is in progress by the company’s statutory auditors. The

tax certificate will be granted after the publication of the Financial Statements.

With No.444 and 445 of October 6, 2021 order from the General Directorate of Tax Administration (Audit

Authority Center for Large Enterprises) was notified to the Company a tax audit for the period 1/1/2020-

31/7/2021 and 1/1/2016 -31/12/2019, respectively. The audit of tax authorities is in process.

The movement of the deferred tax asset is as follows:

31/12/2021

31/12/2020

Restated*

Opening balance 7,923,631.73 8,963,391.47

Income taxes (debit) (985,279.49) (1,049,739.82)

Income taxes credit – Other Comprehensive Income

7,533.99 9,980.08

Closing balance

6,945,886.23 7,923,631.73

* Restated amounts due to change in accounting policy (See note 3.1)

The movement of deferred tax assets/liabilities as at December 31, 2021 and 2020 is as follows:

31/12/2021 31/12/2020 31/12/2021 31/12/2020

Deferred tax assets:

Investment property

144,810.10 157,974.66 (13,164.56) -

Provisions (Doubtful receivables, Legal cases, Staff retirement indemnities)

8,389,510.89 8,425,418.83 (35,907.94) (1,096,750.14)

Accrued expenses

107,049.65 116,781.43 (9,731.78) -

Finance lease (IFRS 16)

1,365,240.44 1,280,422.07 84,818.37 218,998.84

Cash settled share based payments

209,459.75 160,245.91 49,213.84 16,245.91

Other

748,242.11 864,925.78 (116,683.67) 101,568.11

Deferred tax asset

10,964,312.94 11,005,768.68 (41,455.74) (759,937.28)

Deferred tax liabilities:

Depreciation based on useful life

(3,974,745.15) (3,032,412.49) (942,332.66) (281,894.31)

Accrued income

(43,681.56) (49,724.46) 6,042.90 2,071.85

Deferred tax liability

(4,018,426.71) (3,082,136.95) (936,289.76) (279,822.46)

Deferred tax asset

6,945,886.23 7,923,631.73

Deferred tax recognized in the statement of comprehensive income

(977,745.50) (1,039,759.74)

Statement of financial position

Statement of comprehensive income

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The deferred tax asset balance from provisions includes the relevant deferred tax on the provision on

doubtful receivables which has been established mainly in previous years (before 2016) when the Company

was operating under specific legislation Law 1559/1950 and Law 2688/1999. The Company believes that

they have taken the ultimate possible measure for collecting a long outstanding receivable balance, part of

which has been assigned to tax authority for collection. For such doubtful receivable balances of € 24.1

million referring to € 2.6 million deferred tax asset recorded in the Company book, the Company intends to

utilize this deferred asset writing off these balances in the future. That intention was declared in a notice

letter to the Ministry of Finance. A response is critical for any future action to be determined by the

Company.

10. INVENTORIES

Inventories are analysed as follows:

31/12/2021

31/12/2020

Consumable materials

441,426.91 440,605.94

Spare parts and equipment

2,891,118.54 3,262,682.58

Total 3,332,545.45 3,703,288.52

Inventory consumption cost for the year ended December 31, 2021 and 2020 amounted to € 2,820,801.67

and € 1,953,467.68 respectively (Note 24). Consumables include an amount of € 65,239.12 (31.12.2020: €

81,361.18) related to write off of obsolete tools.

There was no inventory devaluation to their net realisable value.

11. TRADE AND OTHER RECEIVABLES

This account is analysed as follows:

31/12/2021 31/12/2020

Trade Debtors 51,782,819.58 48,811,422.55

Minus: Provision for doubtful debts

(40,830,048.47) (39,885,944.27)

Total trade receivables

10,952,771.11 8,925,478.28

Personnel loans 391,994.51 381,765.94

Prepaid Expenses 1,342,878.91 1,247,232.97

Income tax advance - 888,394.50

Advances to suppliers 1,592,594.35 1,303,319.16

Other receivable 2,080,663.58 2,073,731.79

Grant receivable

5,334,495.75 3,381,759.99

Minus: Provision for other receivables and

advances to suppliers

(2,204,043.54) (2,542,219.54)

Total other receivables

8,538,583.56 6,733,984.81

Total trade and other receivables

19,491,354.67 15,659,463.09

Personnel loans: The Company provides interest-free loans to its personnel. The loan amount per

employee does not exceed approximately € 3,000.00 and loan repayments are made by withholding

monthly instalments from the employee salaries.

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(amounts in Euro unless stated otherwise)

Other receivable: Other receivable include the compulsory seizure of Piraeus municipality amounted to

€ 238,838.62 (2020: € 238,838.62), as well as receivable from third parties and municipality of Drapetsona

amounted to € 1,841,824.96 (2020: € 1,834,893.17).

Advance tax payment: At 31 December 2020, the Company had a receivable of € 888,394.50 while at 31

December 2021 the income tax payable amounts to € 5,236,248.21.

Grant receivable: The grant receivable for the current and previous period concerns the outstanding

balance from the Attica Regional Fund of the approved grant for the project "Expansion of the Passenger

Port for cruise ship ”(Note 15).

The movement of the allowance for doubtful trade receivables is analysed as follows:

31/12/2021 31/12/2020

Beginning balance 39,885,944.27 40,114,312.20

Provision for the year 1,220,277.88 711,989.79

Provision used (276,173.68) (940,357.72)

Ending balance 40,830,048.47 39,885,944.27

The used provision in the current year of € 276,173.68 and € 940,357.72 (in prior year) relates to the write-

off of customers’ debt based on a decision of the Board of Directors and for which a provision for doubtful

debts had been made in previous years.

Trade receivables are normally settled on 10 days’ terms. A single customer represents 51% of the

Company’s total revenue (Note 31) (2020: 54 %). The outstanding amount of this customer as at December

31, 2021 amounted to € 2.6 million (2020: € 2.0 million )(Note 31).

For trade receivables and other receivables, the Company has calculated estimated credit losses (ECLs)

based on lifetime expected credit losses. Taking into consideration that trade receivables are normally

settled within 10 days from the issuance of the invoice, the risk of default and the expected loss rate of

0.5% has been determined by management whereas for all balances that are outstanding for more than 10

days, the Company has considered the risk of default, the days past due and the historical credit losses

experienced adjusted to reflect current and forward-looking information per debtor to measure the

expected credit losses for each individual trade receivable balance. In the current COVID-19 pandemic

impacted environment, the Company is actively monitoring the recoverability of trade receivables and

ensures that the loss allowance recorded reflects, on a timely basis management’s best estimate of

potential losses in compliance with IFRS 9.

The ageing analysis of trade receivables (net of ECLs) is as follows:

2021 2020

0-10 days 9,052,399.02 6,390,613.28

10-90 days 188,102.46 188,937.19

91-180 days 208,328.53 295,434.13

181-365 days 280,218.29 328,851.06

>365 days 1,223,722.81 1,721,642.63

Total 10,952,771.11 8,925,478.28

December 31,

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The ageing analysis of receivables past due more than 365 days applies to claims for which the Company

has filed appeals or taken actions for their collectability. Management and Legal Department estimate that

the final court decisions and the other actions will be in favour of the Company .

The movement of the allowance for doubtful other receivables and advances to suppliers is analysed as

follows:

31/12/2021 31/12/2020

Beginning balance 2,542,219.54 2,204,043.54

Provision for the year - 338,176.00

Reversal of provision

(338,176.00)

Ending balance 2,204,043.54 2,542,219.54

The net impairment losses on financial assets are analysed as follows:

31/12/2021 31/12/2020

1,220,277.88 711,989.79

(338,176.00)

338,176.00

Net impairment losses on financial assets 882,101.88 1,050,165.79

Movement in loss allowance for trade receivables

Impairment losses

Movement in loss allowance for other receivables and

advances to suppliers

12. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are analyzed as follows:

31/12/2021 31/12/2020

Cash in hand 28,994.51 37,747.04

Cash at banks 134,946,291.22 111,316,567.02

Total 134,975,285.73 111,354,314.06

Restricted cash 213,267.48 213,267.48

Total 135,188,553.21 111,567,581.54

Cash at banks earns interest at floating rates based on monthly bank deposit rates. Interest earned on cash

at banks and time deposits is accounted for on an accrual basis and for the year ended December 31, 2021,

amounted to € 9,790.90 (31.12.2020: € 327,917.69) and is included in the financial income (Note 26).

The remaining restricted cash of € 213,267.48 relates to Company’s freezed deposits, in favor of a

municipality against which there are pending trials.

13. SHARE CAPITAL

Share capital amounts to € 50,000,000.00 is fully paid up and consists of 25,000,000 ordinary shares, of

nominal value € 2.00 each. There are neither shares which do not represent Company’s capital nor bond

acquisition rights.

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(amounts in Euro unless stated otherwise)

14. RESERVES

Reserves are analysed as follows:

31/12/2021 31/12/2020

Statutory reserve 15,934,306.58 14,096,221.09

Special tax free reserve L. 2881/2001 61,282,225.52 61,282,225.52

Specially taxed income reserve 728,128.36 728,128.36

Taxed reserve L. 4172/2013 art. 72 6,087,915.56 6,087,915.56

Taxed reserve based on general provisions 188,760.09 188,760.09

Total 84,221,336.11 82,383,250.62

Statutory reserve: Under the provisions of Greek corporate Law, companies are obliged to transfer at least

5% of their annual net profit, as defined, to a statutory reserve, until the reserve equals the 1/3 of the

issued share capital. The reserve is not available for distribution throughout the Company activity.

Special tax free reserve Law 2881/2001: This reserve was created during the conversion of the Company to

a Societé Anonyme. The total Company’s net shareholder funds (Equity) was valued, by the article 9

Committee of the Codified Law 2190/1920, at € 111,282,225.52, € 50,000,000.00 out of which was decided

by Law 2881/2001 to form the Company share capital and the remaining € 61,282,225.52 to form this

special reserve.

Untaxed or specially taxed income reserve: This is interest income which was either not taxed or taxed by

withholding 15% tax at source. In case these reserves are distributed, they are subject to tax on the general

income tax provision basis. Based on Article 72 par.11 of Law 4172/2013 those reserves are subject (from 1

January 2014) to an independent taxation at a rate of 19%. On December 30

, 2014, the Company

proceeded to the taxation of those reserves which amounted to € 1,428,029.58. After the tax deduction

created the taxed reserves of Article 72 N.4172 / 2013 and the taxed reserve with the general provisions

amounting to € 6,087,915.56 and € 188,760.09 respectively.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

15. GOVERNMENT GRANTS

The movement of the account is analyzed as follows:

31/12/2021 31/12/2020

Opening 38,242,578.05 28,094,773.09

Approved grant in current year 13,669,772.17 10,147,804.96

Closing 51,912,350.22 38,242,578.05

Accumulated amortization (13,639,086.70) (12,774,361.78)

Net Book Value 38,273,263.52 25,468,216.27

Grants received up to December 31, 2011 relate to the requirements of the Olympic Games of 2004 (€

11,400,000.00) and on the construction of infrastructure for the OSE S.A. port station (€ 3,700,000.00).

Also, a grant of € 3,653,518.80 has been received in 2012 and is divided in a) € 2,536,168.80, which relates to

the widening of the quay Port Alon and b) € 1,117,350.00 for the construction of new dock at the area of Agios

Nikolaos in the central port of Piraeus, under the operational program “Improvement of accessibility-energy”

of the Attica region. Finally, a grant amounted to € 9,901,740.45 has been received in December 2013 and

relates to the operational program “Support Accessibility” of the Ministry of Infrastructure, Transport and

Network and in particular, in two projects which have been completed. According to a decision of Attica

Region issued during 2017, it was decided to return the amount of € 13,735.39 for the correction of the

subsidy for the project "Widening of the quay Port Alon".

Moreover, according to a decision of Attica Region issued during 2018, it was decided to return the amount of

€ 546,750.77 for the correction of the subsidy for the project “Construction of new dock of Ag. Nikolaos”.

During the previous year, the Attica Regional Fund approved a grant of € 10,147,804.96 for the project

"Expansion of the Passenger Port for the service of the cruise" and the amount of € 6,766,044.97 was

collected. The above amount concerned two payment orders for the project of the expansion of the

Themistocleous pier and the construction of a new Pier on the south side of the central port, with a total

approved amount of € 97,720,853.49 from the ATPIC WPP (NSRF 2013 - 2020) according to the decision

Α.Π.403 / 11-2-2020.

During the current year, a grant of € 13,669,772.17 was approved by the Attica Regional Fund for the project

"Expansion of the Passenger Port for the service of the cruise", which is under execution. As at December 31,

2021 the amount of approved grant of € 5,334,495.75 (Note 11) is pending (31.12.2020: € 3,381,759.99),

while in the current year the amount of € 11,717,036.41 was received (31.12.2020: € 6,766,044.97).

Grants are considered as future revenue and are recognized in revenue at the same rate at which the

subsidized assets are depreciated (note 27) . Grants related to assets under execution are not amortized until

the fixed asset is completed and available for its intended productive operation.

There are no other obligations regarding the received grants.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

16. RESERVE FOR STAFF LEAVING INDEMNITIES

The relevant provision movement for the financial year ended on December 31, 2021 and the financial

year ended on December 31, 2020 is as follows:

Liability in Statement of Financial Position 1.1.2020 Restated*

8,729,499.11

Current cost of employment

1,076,300.86

Past service costs

1,243,095.09

Interest cost on liability

109,118.74

Actuarial (gain)/loss on liability due to financial assumptions

283,523.68

Actuarial gain/loss on liability due to experience

(241,940.02)

Benefits paid

(685,933.76)

Liability in Statement of Financial Position 31.12.2020

10,513,663.70

Current cost of Employment

1,742,514.20

Interest cost on liability

78,852.47

Actuarial gain/(loss) on liability due to financial assumptions

83,167.96

Actuarial gain/(loss) on liability due to experience

(48,922.53)

Benefits paid

(2,162,000.00)

Liability in Statement of Financial Position 31.12.2021

10,207,275.80

* Restated amounts due to change in accounting policy (See note 3.1)

According to the Collective Agreement Port Workers (dated 1/7/2019, article 6,) an employee who fulfills

retirement conditions, leaving the Company, is entitled to a retirement allowance of € 30,000.

According to the Collective Agreement, employees of PPA SA (effective from 1/11/2020, article 8),

employee who fulfills retirement conditions, leaving the Company, is entitled to a retirement allowance of

€ 34,000.

According to the SAE of Supervisors / Planners of PPA SA (effective from 1/4/2019, article 8,) an employee

who fulfills retirement conditions, leaving the Company is entitled to receive a retirement allowance of €

30,000.

The principal actuarial assumptions used are as follows:

2021 2020

Discount Rate 0.60% 0.75%

Salaries increase 0.00% 0.00%

Average annual growth rate of long-term inflation 1.80% 1.50%

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

A quantitative sensitivity analysis for significant assumption as at December 31, 2021 and December 31,

2020 is as shown below:

2021

0.50% 0.50%

increase decrease

Impact on defined benefit obligation (273,202.80) 284,965.20

2020

0.50% 0.50%

increase decrease

Impact on defined benefit obligation (283,523.68) 295,931.58

Sensitivity Level

Discount rate

Sensitivity Level

Discount rate

The expected cash flows in the future years are analyzed as follows:

2021 2020 Restated*

Within the next 12 months (next annual reporting period)

1,382,105.00 1,585,908.00

Between 2 and 5 years 5,221,132.00 4,780,513.00

Between 5 and 10 years 8,398,595.00 9,777,663.00

Beyond 10 years 12,348,043.00 12,927,917.00

Total expected payments 27,349,875.00 29,072,001.00

* Restated amounts due to change in accounting policy (See note 3.1)

The average duration of the defined benefit plan obligation at the end of the year is 5,50 years (2020:5,55

years).

17. PROVISIONS

The Company has made provisions for various pending legal cases as at December 31, 2021 amounting to

€ 21,005,319.88,(2020: € 16,728,405.67) relating mainly to claims from personnel and other third parties.

The movement of the provision for legal claims by third parties is as follows:

31/12/2021 31/12/2020

Opening balance 16,728,405.67 18,400,468.08

Charge of the year (Note 24) 4,389,258.57 2,302,471.03

Provision used (87,925.94) (400,666.16)

Reversal of provision (Note 24) (24,418.42) (3,573,867.28)

Closing balance 21,005,319.88 16,728,405.67

The current’s year provision relates to legal cases of employees, Greek State and other third parties

amounting to € 1,734,308.57, € 2,000,000.00 and € 654,950.00 respectively (31.12.2020:

€ 1,089,922.20, € 0 and € 1,212,548.83 respectively) .The reversal of the provision relates to legal cases

which have been reassessed by the Company’s legal department based on current developments or

finalized in favor of the Company. The provision used relates to legal cases which have been finalised

against the Company and a provision has been made in prior years.

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(amounts in Euro unless stated otherwise)

18. LONG-TERM & SHORT TERM BORROWINGS

a) Long-term borrowings:

The long term portion of borrowings as at December 31, 2021 and December 31, 2020 respectively is as

follows:

31/12/2021 31/12/2020

Total of Long term borrowings

44,499,999.99 50,499,999.99

Minus:

Short term portion of Long term borrowings

Long term portion 38,499,999.99 44,499,999.99

6,000,000.00

Balance included in the following loans between the Company and the European Investment Bank:

1. Loan of € 35,000,000.00 for the construction of Container Terminal Pier I, issued on 30/7/2008.

The repayment of the loan will be in thirty (30) semi-annual installments, payable from December 15, 2013

up to and including June 15, 2028. As amended in October 2, 2017 the loan bears an annual interest rate,

that is the sum of a fixed interest rate and a margin of 0.25% which is payable quarterly.

From this contract there are obligations and restrictions for the Company, the most important of which are

summarized as follows: (i) to submit the annual financial statements within 1 month of publication along

with a Certificate of Compliance audited by a recognized firm of certified auditors, and (ii) to hold throughout

the duration of the loan and until fully repaid, the following financial ratios, calculated on annual financial

statements, audited by certified auditors, for each financial year:

1. EBITDA [Profit / (loss) before interest, taxes, depreciation and amortization] / Interest ≥ 3.00

2. Total gross bank debt / EBITDA [Profit / (loss) before interest, tax, depreciation, amortization]

≤ 9.80

3. Total shareholders' equity ≥ 140 million

As at 31 December 2021 the Company was in compliance with the above financial ratios.

The balance of the loan as at 31 December 2021 amounted to € 15,166,666.61 (31.12.2020: € 7,499,999.95).

2. Loan of € 55,000,000.00 for the construction of Container Terminal Pier I issued on the 10/02/2010.

The repayment of the loan will be in thirty (30) semi-annual installments, payable from 15 June 2015 up to

and including 15 December 2029. As amended in October 2, 2017 the loan bears an annual interest rate, that

is the sum of a floating EURIBOR interest rate and a margin of 0.25% which is payable quarterly.

The balance of the loan as at 31 December 2021 amounted to € 29,333,333.38 (31.12.2020: €

33,000,000.04).

From this contract there are obligations and restrictions for the company, the most important of which are

summarized as follows: (i) to submit the annual financial statements within 1 month of publication along

with a Certificate of Compliance audited by a recognized firm of certified auditors, and (ii) to hold throughout

the duration of the loan and until fully repaid, the following financial ratios, calculated on annual financial

statements, audited by certified auditors, for each financial year:

1. EBITDA [Earnings before interest, taxes, depreciation and amortization] / Interest ≥ 3.00

2. Total gross bank debt / EBITDA [Earnings before interest, taxes, depreciation, amortization]

≤ 9.80

3. Current assets / current liabilities ≥ 1.2

4. Total shareholders' equity ≥ 140 million.

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(amounts in Euro unless stated otherwise)

As at 31 December 2021 the Company was in compliance with the above financial ratios.

On September 26, 2017 a Guarantee Issuance Facility Agreement was signed between the Company and the

‘’Export Import Bank of China’’, in respect of the issuance of guarantees of an initial amount of €

75,074,999.99 to support the loans from the European Investment Bank outstanding debt. The amount of

guarantee is variable and is based on an amortization table linked to the total outstanding balance of both

loans agreements. The guarantee bears an issuance fee of zero point six per cent (0.6%) of the relevant

maximum guarantee amount. This fee paid for the year ended December 31, 2021 amounted to €

457,619.66 (31 December 2020 € 458,873.42) and is included in financial expenses (Note 26).

For the year ended December 31, 2021 and 2020, total interest expense on long-term borrowings, amounted

to € 70,743.39 and € 178,919.81 respectively and is also included in financial expenses (Note 26).

On November 8, 2019 a loan agreement of € 100,000,000.00 was signed between PPA S.A. and the European

Investment Bank. The purpose of the loan is to finance the projects relating to the expansion and upgrading

of many areas of Piraeus Port, such as the extension of the car terminal, improving the infrastructure of the

ship repair zone, the development of a new Iogistics Port Center, the construction of a new cruise service

facility, the acquisition of new container terminal equipment and the renovation-upgrading of other port and

electromechanical installations. Guarantor of P.P.A. regarding the loan is the Export-Import Bank of China

(based on contract 14/11/2019) and a letter of guarantee € 105 million will be issued upon the draw down

of the loan. As at December 31, 2021 and 2020 the Company has not drawn down any amount.

b) Short-term borrowings:

The Company has a credit line available for € 50,000,000.00 with National Bank of Greece valid until

December 31, 2022. The credit line bears annual variable interest rates of Euribor, plus margin 2.9%. The

Company has not utilised any amount under the overdraft agreement.

19. DIVIDENDS

Dividends related to fiscal year 2020, paid in 2021: The Annual General Meeting of the Company, which

took place on July 15, 2021, approved the proposal of the Board of Directors proposed for the distribution of

dividend for the fiscal year 2020 amounted to € 10,000,000.00 or € 0.4000 per share. The dividend is subject

to withholding tax at the corresponding rate provided by income tax. The dividend for the fiscal year 2020

was paid on July 30, 2021.

Dividends proposed for the fiscal year 2021: On March 14, 2022 the Board of Directors proposed for the

fiscal year 2021 a dividend distribution amounting to € 15,700,000.00 or € 0.6280 per share. The final

authorization is subject to the approval by the Annual General Assembly.

Page 144 από 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

20. ACCRUED AND OTHER CURRENT LIABILITIES

This account is analyzed as follows:

31/12/2021 31/12/2020

Taxes payable (except Income taxes) 3,333,511.76 2,709,518.61

National insurance and other contribution 2,225,157.43 3,234,001.17

Salaries Payable 882,015.42 658,960.07

Concession Agreement Liability 2,062,798.16 1,331,551.38

Other creditors 2,811,941.36 713,878.03

Other Short Term Obligations 871,325.32 1,372,644.95

Regulatory Authority for Ports 477,130.41 415,235.58

Greek State committed dividends 804,000.00 804,000.00

Customers’ payment in advance 5,847,083.54 3,767,972.17

Provision for employee’s voluntary retirement incentives - 256,500.00

Accrued expenses 2,900,005.38 1,004,453.31

Total 22,214,968.78 16,268,715.27

Taxes Payable: Current period’s amount consists of: a) Value Added Tax € 1,685,968.50 (31.12.2020: €

1,005,387.62, b) Employee withheld income tax € 1,290,539.49 (2020: € 1,379,371.83) and c) other third

party taxes € 357,003.77 (2020: € 324,759.16).

Concession Agreement Liability: The liability relates to the variable amount of annual fee with an equal

debit in the expense account “Concession agreement fee” (Note 24) and excludes the fixed minimum annual

fee for the current period of € 3,500,000.00. Regardless of the application of IFRS 16, the Company's

contractual obligation to pay to the Greek State as at 31 December 2021 amounted to € 5,562,798.16 (31

December 2020: € 4,831,551.38) and was calculated as a percentage of 3.5% on the total revenue of the

current year excluding financial income.

Payment in advance: The Company receives payments in advance for services rendered on an ordinary

basis, which are then settled on a regular basis. Customer payments in advance amounted to € 5,847,083.54

(31.12.2020: € 3,767,972.17).

21. DEFERRED INCOME

On April 27, 2009 “PCT S.A.” paid € 50,000,000.00 as a one-off consideration for the use of port facilities of

Piers II and III of SEMPO of PPA (N.3755/2009). From the aforementioned amount, € 2,930,211.41 was offset

with the cost of supplies and parts provided by PCT S.A., while the remaining amount of € 47,069,788.59 is

amortized over the concession period. On August 2009, PPA S.A received from PCT S.A. three letters of

guarantee amounted to € 61.4 million, € 21.0 million and € 42.0 million respectively for the concession

agreement, the upgrade of PIER II and the construction of PIER IIΙ respectively. The letter of guarantee of €

21.0 million has been expired and returned in 2013. On September 2016, the last letter of guarantee of €

42.0 million, was reduced by 50% to € 21.0 million, upon completion of the project construction of the

eastern side of PIER III. The letter of guarantee of € 61.4 million from China Development Bank was replaced

with an equal letter of guarantee of COSCO SHIPPING Port Ltd. and came into effect on 26.8.2019. In

addition, the Company has received from PCT S.A. letter of guarantee for the construction of the petroleum

pier of € 950,000.00, which was reduced by 50% to € 475,000.00. On December 29, 2020, the letter of

guarantee from PCT S.A with the amount of € 42.0 million (which had been reduced by 50% to 21.0 million)

and the letter of guarantee with the amount € 475,000.00 were returned. On the same date the Company

received a letter of guarantee of € 663,000.00 regarding the rest of the construction of the west side of Pier

III . The initial concession period was thirty (30) years, which was increased to thirty five (35) years, after the

completion the construction of the port infrastructure on the east side of Pier III.

Page 145 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Following the transfer of the cumulative amount € 16,474,426.00 on revenue of the years 2009 until 2021

the new balance at December 31, 2021 amounted to € 30,595,362.59 (December 31, 2020: € 31,940,213.69).

b) The Company receives Fixed Annual Consideration from PCT S.A based on the length and surface of the land

under concession. Fixed Annual Considerations is invoiced in advance in April and October of each fiscal year.

As a result the company has recognized as deferred revenue of € 3,160,771.97 and € 3,099,349.84 as at

December 31, 2021 and December 31, 2020 respectively.

Balance December 31, 2019

36,300,733.27

Less: Amortization of the year – Initial concession (1,344,851.10)

Plus: Deferred Fixed Annual Consideration for the period 1.1.2021-31.3.2021

3,099,349.84

Balance December 31, 2020

35,039,563.55

Less: Amortization of the year – Initial concession (1,344,851.10)

Plus: Deferred Fixed Annual Consideration for the period 1.1.2022-31.3.2022

3,160,771.97

Balance December 31, 2021

33,756,134.58

Less: Deferred Fixed Annual Consideration for the period 1.1.2020-31.3.2020 realized

Less: Deferred Fixed Annual Consideration for the period 1.1.2021-31.3.2021 realized

(3,015,668.46)

(3,099,349.84)

c) Additionally as at December 31, 2021, deferred income includes an amount of € 256,249.26 (31.12.2020:

€ 34,062.98) which relates to the deferred income from rentals.

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Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

22. SEGMENT INFORMATION

The Company operates in Greece, regardless of the fact that its clientele includes international companies.

Additionally, the Company has no other commercial or industrial activities other than the provision of

services solely in the Port area and does not have income or assets from foreign customers (based on the

geographical area in which they operate).

The port of Piraeus is a port complex activity, putting work in many areas of port activity, such as containers

Car-terminal, shipping, cruise, Ro-Ro, ship repairing, environmental and logistics services.

It is the main port of coastal connecting mainland Greece and the islands, the main cruise port service in the

country, the main port container, the main car – terminal port of the country.

PPA S.A. provides all the requested port services: water, fuel oil, solid and liquid slot tankers, jack residual oil,

electricity, fiber optics and internet, victuals, repairs, environmental services and is fully connected to all

activities with modern computer systems.

The management of PPA S.A. monitors at the level of results of the above activities and takes business

decisions based on the implemented internal management information system.

Based on the above and in accordance with the provisions of IFRS 8, the Company has determined to disclose

the following segments:

• Container Terminal

• Car Terminal

• Coasting

• Cruise

• Ship repairing

• Other segments (water supply, space management, merchandise management)

The other segments include activities representing less than 10 % of total revenue and profit in all segments

and therefore are not disclosed as separate operating segments.

The Company level includes revenues and expenses that are not allocated by operating segment because

management monitors them at entity level.

Management does not make business decisions and does not monitor periodically the assets and liabilities of

the business sectors and for this reason does not make the relevant disclosures as required by the provisions

of IFRS 8.

Page 147 από 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The segment information for the years ended December 31, 2021 and 2020 is analysed as follows:

CONTAINER

TERMINAL

OPERATION

CONSESSION

ARRANGEMENT

PIER II&III

Revenues

29,608,551.07 70,097,734.50 14,126,608.03 9,443,942.88 9,511,906.83 13,374,152.82 8,027,075.85 - 154,189,971.98

Cost of sales

(36,500,686.94) (3,820,393.81) (8,823,798.19) (4,506,803.67) (5,720,804.12) (10,545,122.02) (7,458,008.43) - (77,375,617.18)

Gross profit/(loss)

(6,892,135.87) 66,277,340.69 5,302,809.84 4,937,139.21 3,791,102.71 2,829,030.80 569,067.42 - 76,814,354.80

Other expenses

(4,141,290.56) (10,129,643.94) (1,836,348.85) (975,351.12) (543,887.07) (2,187,818.53) (1,384,110.87) (7,950,071.44) (29,148,522.38)

Other income

- - - - - 1,342,903.70 2,094,229.78 1,309,984.74 4,747,118.22

Financial income

- - - - - - - 106,376.68 106,376.68

Financial expenses

(830,593.66) (1,408,497.30) (167,872.67) (109,658.86) (119,813.12) (164,306.31) (118,113.14) (389,478.56) (3,308,333.62)

Profit/ (loss) before income taxes

(11,864,020.09) 54,739,199.45 3,298,588.32 3,852,129.23 3,127,402.52 1,819,809.66 1,161,073.19 (6,923,188.58) 49,210,993.70

Income taxes

- - - - - - - (12,449,283.84) (12,449,283.84)

Net profit / (loss) after taxes

(11,864,020.09) 54,739,199.45 3,298,588.32 3,852,129.23 3,127,402.52 1,819,809.66 1,161,073.19 (19,372,472.42) 36,761,709.86

Depreciation and amortisation (inclunding right-of-

use assets depreciation)

7,068,083.75 3,343,145.33 939,605.82 1,167,757.06 1,428,795.15 2,313,100.31 1,630,741.96 243.12 17,891,472.50

(Losses)/Earnings before Interest, Taxes,

Depreciation and Amortisation

(3,965,342.68) 59,490,842.08 4,406,066.81 5,129,545.15 4,676,010.79 4,297,216.28 2,909,928.29 (6,639,843.58) 70,304,423.14

CONTAINER

TERMINAL

OPERATION

CONCESSION

ARRANGEMENT

PIER II&III

Revenues

24,303,482.47 66,493,707.37 11,069,491.04 8,274,978.93 2,002,255.52 13,786,557.81 6,971,750.75 - 132,902,223.89

Cost of sales

(35,112,995.40) (3,954,346.14) (8,063,875.71) (4,479,085.52) (3,811,049.68) (9,865,904.87) (7,416,281.10) - (72,703,538.42)

Gross profit/(loss)

(10,809,512.93) 62,539,361.23 3,005,615.33 3,795,893.41 (1,808,794.16) 3,920,652.94 (444,530.35) - 60,198,685.47

Other expenses

(3,583,995.30) (11,840,803.89) (1,489,500.54) (875,650.24) (70,490.91) (2,570,471.95) (1,279,235.83) (3,618,034.41) (25,328,183.07)

Other income

- - - - - 1,085,692.93 1,918,597.47 2,137,811.19 5,142,101.59

Financial income

- - - - - - - 367,567.99 367,567.99

Financial expenses

(998,915.57) (1,209,092.61) (203,554.94) (153,469.20) (38,859.59) (272,072.39) (155,134.67) (375,046.31) (3,406,145.28)

Profit/ (loss) before income taxes

(15,392,423.80) 49,489,464.73 1,312,559.85 2,766,773.97 (1,918,144.66) 2,163,801.53 39,696.62 (1,487,701.54) 36,974,026.70

Income taxes

- - - - - - - (10,637,348.99) (10,637,348.99)

Net profit / (loss) after taxes

(15,392,423.80) 49,489,464.73 1,312,559.85 2,766,773.97 (1,918,144.66) 2,163,801.53 39,696.62 (12,125,050.53) 26,336,677.71

Depreciation and amortisation (inclunding right-of-

use assets depreciation)

7,032,749.88 3,680,584.79 856,729.21 1,184,217.32 1,261,037.61 2,358,492.24 1,614,141.32 243.06 17,988,195.43

(Losses)/Earnings before Interest, Taxes,

Depreciation and Amortisation

(7,360,758.35) 54,379,142.13 2,372,844.00 4,104,460.49 (618,247.46) 4,794,366.16 1,808,972.61 (1,479,980.16) 58,000,799.42

SHIP REPAIRING

(TANKS AND

DOCK)

OTHER

SEGMENTS

31.12.2021

CONTAINER TERMINAL

CAR TERMINAL

COASTING

CRUISE

SHIP REPAIRING

(TANKS AND

DOCK)

31.12.2020 Restated*

CONTAINER TERMINAL

CAR TERMINAL

COASTING

CRUISE

COMPANY

TOTAL

OTHER

SEGMENTS

COMPANY

TOTAL

* Restated amounts due to change in accounting policy (See note 3.1)

Page 148 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

23. REVENUES

Revenues are analyzed as follows:

1/1-31/12/2021 1/1-31/12/2020

Revenue from:

Loading and Unloading

34,118,025.70 27,688,786.82

Storage

3,755,225.38 2,754,438.09

Supply of water

1,412,144.39 1,501,510.91

Dry docking services

6,660,355.12 6,493,397.35

Cruise services

9,511,906.83 1,602,704.45

Ferry services

9,443,942.88 7,585,085.58

Environmental services

2,400,927.50 2,139,231.43

Mooring

3,062,490.76 3,768,064.53

Shipbuilding Repair Zone services

6,713,797.70 7,293,160.46

Other supporting services

6,695,340.56 5,322,858.53

Revenue from concession of liquid wastes’ collection and

transportation

318,080.71 259,278.40

Total

84,092,237.53 66,408,516.55

Revenue from Fixed and Variable Consideration:

Revenue from concession agreement Pier ΙΙ+ΙΙΙ 68,631,091.05 65,092,198.41

Other income from concession agreement Pier ΙΙ+ΙΙΙ 1,466,643.40 1,401,508.93

Total 154,189,971.98 132,902,223.89

The current year increase in revenue is mainly due to the significant increase in revenues from cruise services

by € 7,909,202.38 or 493.5% and revenue from loading-unloading services by € 6,429,238.88 or 23.2% as

these sectors in 2021 recovered from the prior year negative impact of the COVID-19 pandemic. Mooring

revenue decreased by € 705,573.77 as well as revenues of ship repair and water supply decreased slightly.

With the resumption of the Cruise Industry in Greece on 14 May, 2021, the industry gradually marked growth

both in terms of arrivals and passenger traffic. Piraeus succeeded in serving a significant number of cruise

ship arrivals by implementing the required COVID-19 Health Protocols. The total passenger traffic in 2021

amounted to 303,665 compared to 16,640 in 2020, recording an increase of 1,724.9%. Cruise ship arrivals

also increased by 398.7% with 379 arrivals compared to 76 last year.

The increase in revenue from the Pier II + III concession agreement is mainly due to the increase in the

variable consideration which amounted to € 55,988,003.14 (31.12.2020: € 52,694,799.05).

Page 149 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

24. ANALYSIS OF EXPENSES

Expenses (cost of sales and administrative expenses) are analyzed as follows:

1/1-31/12/2021

1/1-31/12/2020

Restated*

Payroll and employee related costs (Note 28) 58,475,925.78 57,967,380.55

Third party fees 3,395,542.46 951,738.47

Third party services 11,251,090.09 10,019,389.26

Depreciation- Amortization (Note 27) 17,891,472.50 17,988,195.43

Taxes and duties 729,455.19 635,862.44

General expenses 4,070,005.30 4,098,226.69

Cost of sales of inventory and consumables (Note 10) 2,820,801.67 1,953,467.68

Provision for pending lawsuits (Note 17) 4,364,840.15 (1,271,396.25)

Consession agreement fee (Note 20) 2,062,798.16 1,331,551.38

Total 105,061,931.30 93,674,415.65

The above expenses are analyzed as follows:

1/1-31/12/2021

1/1-31/12/2020

Restated*

Cost of sales 77,375,617.18 72,703,538.42

Administrative expenses 27,686,314.12 20,970,877.23

Total 105,061,931.30 93,674,415.65

* Restated amounts due to change in accounting policy (See note 3.1)

Third party fees: The significant increase of third party fees is due to the adoption by the Company

(December 2020) of the use of external partners for the provision loading and unloading services.

Third party services (including concession agreement fee): For the year ended December 31, 2021 third

party services include electricity charges of € 3,838,004.16 (31.12.2020: € 2,586,669.65), water supply

charges of € 1,312,053.17 (31.12.2020: € 1,147,365.41), telecommunication charges of € 278,796.85

(31.12.2020: € 333,540.78), rental expenses (including concession agreement fee) of € 2,187,449.54

(31.12.2020: € 1,439,398.51), insurance expenses of € 1,063,419.02 (31.12.2020: € 1,044,474.97), repair and

maintenance costs of € 2,495,627.29 (31.12.2020: € 2,088,013.66) and other expenses of € 2,138,538.26

(31.12.2020: € 2,711,477.66). Additionally, third party services include the fees of the company

"PricewaterhouseCoopers" in Greece for the services provided related to statutory audit fees for the

financial statements (€ 141,500.00) and tax audit certificate in accordance with article 65A of L. 4174/2013

and the POL 1124/18.06.2015 decision of the General Secretary of Public Revenue of the Ministry of Finance

(€ 25,000.00) as well as other non – audit services (€ 11,750.00).

Page 150 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

25. OTHER OPERATING INCOME / EXPENSES

OTHER OPERATING INCOME

The amounts are analyzed as follows:

1/1-31/12/2021 1/1-31/12/2020

Rental income

3,400,757.54 3,034,540.40

Income from European Union programs

429,828.41 476,767.19

Insurance compensation

224,679.38 -

Rental subsidy due to COVID-19

127,342.25 -

Surcharges of the debt from project contractor of Pier I

- 678,266.60

Various other operating income

564,510.64 952,527.40

Total

4,747,118.22 5,142,101.59

Rental income concerns land and building rents as well as the investment properties rent (Note 6).

The Company as an administration and operator of the port of Piraeus does not belong to the legal entities

under public law or public limited companies, the majority of the share capital of which belongs directly or

indirectly to the Greek State of article 68 par. 2 of the 13.4.2020 Legislative Content Act (A ' 84), as it was

veryfied by article 1 of law 4690/2020 (A '104) and as it was amended by article 16 of law 4728/2020.

Therefore, it decides with a relevant act of its administrative body the exemption from the obligation to pay

financial compensation for the concessioned rights of use of Piraeus port area areas, that are affected by the

special and extraordinary measures related to the coronavirus COVID-19, taking into account the market and

related decisions of the government.

Regarding the exemption from the obligation to pay the rents of the professional leases that the Company

has concluded and concern its private property, it applies the Legislative Content Act of 20.03.2020 (A '68) as

it was veryfied by article 1 of law 4683 / 2020 (Government Gazette AD 83) and its relevant issued decisions.

According to legislative regulations, the companies that have been taken special and extraordinary measures

to suspend or temporarily ban operation for preventive or repressive reasons related to pandemic COVID-19,

is exempted from the obligation to pay 40% of the total rent from March 2020 to June 2021. Τhe Company

applied the above legal regulations for the lease of its premises to third parties. As a state subsidy for the

reduction of rents the Company received the amount of € 127,342.25 during the current period.

During the previous year, the receivable of the contractor company “Pier I” was collected and the amount of

€ 678,266.60, related to the penalty on late payment.

OTHER OPERATING EXPENSES

The amounts are analyzed as follows:

1/1-31/12/2021

1/1-31/12/2020

Third parties compensation 156,190.61 566,663.30

Loss on disposal of fixed assets

14,264.81 401,296.11

Other expenses 409,650.96 662,475.62

Total 580,106.38 1,630,435.03

The third parties compensations relate mainly to interest compensations according to court decisions

finalized against Company.

Page 151 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

26. FINANCIAL INCOME/EXPENSES

The amounts are analyzed as follows:

01/01-31/12/2021 1/1-31/12/2020

Interest income and related financial income

9,790.90 327,917.69

Finance cost for lease liabilities (Note 5)

(2,433,961.29) (2,472,612.61)

Interest expense and related financial expenses (874,372.33) (933,532.67)

(3,298,542.72) (3,078,227.59)

Interest income on debtors late payments

96,585.78 39,650.30

Total (3,201,956.94) (3,038,577.29)

27. DEPRECIATION AND AMORTISATION

The amounts are analyzed as follows:

1/1-31/12/2021 1/1-31/12/2020

Depreciation of property, plant and equipment (Note 4)

15,998,993.46 16,274,157.42

Software depreciation (Νote 7) 627,703.77 496,066.31

Depreciation of right of use assets (Note 5)

2,129,500.19 2,082,696.64

Fixed assets subsidies depreciation (Note 15)

(864,724.92) (864,724.94)

Total

17,891,472.50 17,988,195.43

28. PAYROLL AND EMPLOYEE RELATED COST

The amounts are analyzed as follows:

01/01-31/12/2021 1/1-31/12/2020

Wages and salaries 43,130,552.48 43,062,001.04

Social security costs 9,832,978.59 10,334,928.70

Other staff costs 2,068,629.57 1,378,987.76

Provision for staff leaving indemnities (Note 16) 1,821,366.68 2,428,514.69

Employee retirement incentives 1,338,000.00 695,257.07

Provision for cash-settled share based payments

284,398.46 67,691.29

Total 58,475,925.78 57,967,380.55

* Restated amounts due to change in accounting policy (See note 3.1)

The Company announced in prior years the offer of voluntary retirement incentives to those employees who

are close to retirement date.

During the previous year, 9 workers and 8 employees made use of the incentives of € 461,257.07 and an

additional provision of € 234,000.00 for 4 workers and 7 employees was recorded. Also, a worker made use

of incentives amount of € 22,500.00 consequently to reverse the relevant provision that had been made on

31/12/2019.

In the current year 11 workers and 48 employees made use of the incentives of € 1,338,000.00. Also, the

relevant provision that was recorded at 31/12/2020 was used for 4 workers amount of € 90,000.00 and 8

employees and amounted € 166,500.00. The provision for retirement incentives as at 31 December 2021

amounted to € 0 (December 31, 2020: € 256,500.00) (Note 20). According to the decision 25 / 15-04-2021 of

the BoD Chairman, the employees eligible for these incentives had to retire until 30/09/2021. Therefore

there is no intention to continue the incentive program beyond 30/9/2021.

Page 152 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Cash settled share based payments

The Extraordinary General Meeting of the Company's shareholders on September 23, 2019 approved the

long-term incentive bonus plan, which is cash settled of a certain number of Incentive Units. Beneficiaries of

the program are qualified members of the Board of Directors, senior executives and other key management

and business executives who have a significant influence on the performance and uninterrupted operation of

the Company.

The total number of Incentive Units in the Program is six hundred sixty-six thousand (666,000) and 80% of

the Incentive Units, equal to five hundred thirty-two thousand eight hundred (532,800) Incentive Units, were

allocated to the first Award date, and the remaining 20% of the total number of Incentive Units, namely one

hundred thirty three thousand two hundred (133,200) Incentive Units, was reserved for beneficiaries that

will join the Company or be promoted to beneficiary positions after the First Award Date and until 31

October 2020 Award date. Any key management personnel joining the Company after 31 October 2020 will

not benefit from the Program.

The Board of Directors of the Company at the meeting of October 25, 2019 named the beneficiaries of

498,200 units at the first award date (October 8, 2019). The minutes of the Board of Directors of December

22, 2020 named the beneficiaries of the program including the new-coming qualified managers and/or

promoted managers and canceling the Incentive Units of the beneficiaries who left the Company during the

period between the grant date and 31 October 2020 along with the remaining unallocated units. Following

this decision of the Board of Directors, there is no change in the Units of the program regarding the issuance

of new units. The Board of Directors of the Company at the meeting of December 6, 2021 decided the

cancellation of 92,000 units.

In more detail, the movement of the Program Units during the year and the final Units are listed in the table

below:

Number of Units

January 1, 2020

498,200

Forfeited units (54,900)

Granted units

47,900

December 31, 2020

491,200

Forfeited units (92,000)

Granted units

December 31, 2021

399,200

The amount payable to the beneficiaries is determined by the increase in the share price from the grant date

(8/10/2019: € 22.53) and the redemption date. The amount payable is determined by the same parameters

for the units granted in 2020. In addition, the redemption of the Incentive Units depends on the achievement

of predetermined performance criteria of the Company and the Beneficiaries.

After fulfilling the Program's performance criteria over two years, the Incentive Units will be redeemed on

specific dates on the 2nd, 3rd and 4th anniversary from the date of the first award with the possibility of

being redeemed by the 7th anniversary by the above dates. The date of the first expiration, provided that no

redemption, will take place after the seventh (7th) anniversary. During the 2nd anniversary of the 1

award

date (8/10/2021) due to non-fulfillment of the performance criteria of the Program, no unit was redeemed.

Page 153 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The fair value of the long-term incentive bonus plan as of December 2019 was determined using the Binomial

model with the following data:

Share price at measurement date Εuro 21.85

Expected share voladility 25%

Dividend yield 2%

Risk-free interest rate 0%

The fair value of the units of the long-term reward plan granted during the fiscal year 2020 was determined

using the Binomial model with the following data:

Share price at measurement date Εuro 17.86

Expected share voladility 30%

Dividend yield 2%

Risk-free interest rate 0%

The valuation of the liability as at December 31, 2021 amounted to € 952,089.75 (31 December 2020 €

667,691.29) and is recorded in line item “Other long-term liabilities”.

29. EARNINGS PER SHARE

The earnings per share for December 31, 2021 and 2020 are as follows:

1/1-31/12/2021

1/1-31/12/2020

Restated*

Net profit for the year 36,761,709.86 26,336,677.71

Weighted average number of shares 25,000,000 25,000,000

Basic Earnings per share 1.4705 1.0535

* Restated amounts due to change in accounting policy (See note 3.1)

30. COMMITMENTS AND CONTINGENT LIABILITIES

(a) Litigation and Claims: The Company is currently involved in a number of legal proceedings and has

various claims of a total amount of approximately € 144.4 million concerning mainly labour disputes and

legal proceedings with municipalities around the port, arising in the ordinary course of business. Based on

currently available information, management and its legal department believe that the outcome of these

proceedings will not have a significant effect on the Company’s operating results or financial position,

except for the recorded provisions in Note 17.

(b) Liabilities arising from letters of Guarantee: The Company has issued letters of guarantee amounting to €

19,493,412.45 (December 31, 2020: € 19,941,326.61), of which € 4,428,900.45 (December 31, 2020: €

4,611,093.11) in favor of the General Directorate of Customs (E 'and F' Customs Office) of the Ministry of

Economy for the operation of all warehouses for temporary storage of goods PPA S.A. Under the current

concession agreement of 24.06.2016 between the PPA and the Greek Government, PPA has issued a

letter of guarantee in favor of the Ministry of Finance General Secretariat of Public Property amounted to

€ 15,000,000.00.

Page 154 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

existing rental agreements are as follows:

31/12/2021

Within 1 year 14,248,075.79

Beetween 1 and 2 years 13,706,007.96

Beetween 2 and 3 years 13,558,551.93

Beetween 3 and 4 years 13,445,672.53

Beetween 4 and 5 years 13,428,069.23

Over 5 years 244,433,546.89

Total 312,819,924.32

(d) Commitments for investments based on concession arrangement: Pursuant to the provisions of the

Concession Agreement signed between the Company and the Hellenic Republic dated on 24.06.2016, as

ratified by Law 4404/2016 (Gov. Gazette A '126 / 08.07.2016), the Company has the contractual

obligation for the implementation of investments in projects within the Port of Piraeus for the five

years, August 2016 - August 2021 amounting to € 293.8 million. The Concession Agreement included

specific terms regarding the conditions for the imposition of penal clauses by the Greek State, in case of

non-execution of mandatory investments as of August 2021. The possibility of imposing penalties under

the Concession Agreement was assessed by Compamy Management during the previous period and

was deemed remote, as the Company was able to prove that delays in the execution of mandatory

investment projects were outside the Company's reasonable control and therefore fell within the

exemption from the imposition of penalties in Article 16.5 (a) (i) of the Contract Concession. This

assessment was verified with the agreement of 22/09/2021 Amendment the Concession Agreement

between the Company and the Greek State as verified by Law 4838 / 1.10.2021 Government Gazette

180 A '(Note 3(t)).

As at December 31, 2021, the mandatory investments comprise of:

• completed mandatory investments of € 60.3 million (31.12.2020: € 59.3 million),

• projects under construction € 51.7 million (31.12.2020: € 18.6 million)

as well as prepayment for a mandatory investment of € 5.8 million (31.12.2020: € 5.1).

(e) Contractual commitments with creditors: with regard to (d) above and other contracts signed, the

outstanding balance of the contractual commitments with suppliers on significant infrastructure

projects (construction, maintenance, improvements, etc.) at December 31, 2021 amounted to

approximately € 148.8 million (December 31, 2020: € 132.7 million) of which approximately € 76.5

million relate to the project "Passenger Port Expansion - South Zone - Phase A ' (December 31, 2020:

approximately € 95.1 million).

(f) Special Contribution to Social Security Institute (IKA – ETAM): On November 7, 2011 the Company

notified the management of IKA its intention to stop paying the special contribution in favor of the

supplementary fund of Company’s employees, since after the merger of IKA with IKA – TEAM

management of the Company considers that there is no further obligation. From October 2013, The

Company decided to cease the payments to those institutions. The management of the Company

believes that this contingent liability could be settled without significant adverse effects on its financial

position.

Page 155 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

31. RELATED PARTIES

The Company provides services to certain related parties in the normal course of business. The Company’s

transactions and account balances with related companies are as follows:

31.12.2021 78,206,476.27 73,513.45

31.12.2020 72,306,665.57 80,347.77

31.12.2021 44,934.22

9,112.93

31.12.2020 370,355.24

56,323.85

PCDC A.E. 31.12.2021

36,555.59 -

31.12.2020

35,941.94 3,240.00

31.12.2021

- -

31.12.2020

124,585.75 -

31.12.2021

27,300.00 -

31.12.2020

78,050.00 -

31.12.2021

- 9,244.91

31.12.2020

- 58,684.08

31.12.2021

- 509,727.44

31.12.2020

- 596,748.58

31.12.2021

- 106,346.61

31.12.2020

- 35,790.00

31.12.2021

- 83,570.51

31.12.2020

- -

31.12.2021

- 95,145.41

31.12.2020

- -

31.12.2021 78,315,266.08 886,661.26

31.12.2020 72,915,598.50 831,134.28

31.12.2021 2,635,950.59 7,776.48

31.12.2020 1,992,540.54 4,526.33

31.12.2021

- 35,164.30

31.12.2020

382,088.08 570.40

31.12.2021

- -

31.12.2020

316.74 -

31.12.2021

- -

Related Party 31.12.2020 - 478,094.95

31.12.2021

181.91 -

31.12.2020

156.91 -

31.12.2021 2,636,132.50 42,940.78

31.12.2020 2,375,102.27 483,191.68

COSCO SHIPPING TECHNOLOGY Co LTD

Related Party

PIRAEUS CONTAINER TERMINAL S.A

Related Party

COSCO SHIPPING TECHNOLOGY (BEIJING)

Related Party

COSCO SHIPPING PORTS LIMITED

Related Party

Related party

Related Party

COSCO SHIPPING LINES GREECE S.A

Related Party

CHINA COSCO SHIPPING CORPORATION LIMITED

Related Party

COSCO SHIPPING DEVELOPMENT CO. LTD

COSCO (HONG KONG) INSURANCE BROKERS L.T.D.

Related Party

COSCO SHIPPING GLOBAL EXH

COSCO SHIPPING DEVELOPMENT CO. LTD

Related Party

Relation with the Company

Year ended

Sales to related

parties

Purchases from related

parties

Related Party

Year ended

Amounts due from

related parties

Amounts due to

related parties

Relation with the Company

PIRAEUS CONTAINER TERMINAL S.A

COSCO SHIPPING LINES GREECE S.A.

Related Party

PCDC A.E.

COSCO (HONG KONG) INSURANCE BROKERS L.T.D.

Page 156 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The revenues of € 70,097,734.43 (2020: € 66,493,707.34) (Note 23) from Piraeus Container Terminal S.A.

(PCT S.A.) are related to the fixed and variable revenue from the concession agreement (PIER II & III) and

revenues of € 8,108,741.83 (2020: € 5,812,958.23) related to mooring and loading/uploading. Besides, PPA in

April 2020, signed a contract about the provision of project management services with PCT S.A. for the

business operation of Pier I of PPA S.A. On December 29, 2020, the letter of guarantee from PCT S.A. with the

amount € 42.0 million, reduced by 50% to € 21.0 million in previous year, and the letter of guarantee with

the amount € 475,000.00, reduced from € 950,000.00 by 50% in previous year, were returned to PCT S.A. On

the same date, a new letter of guarantee of € 663,000.00 regarding the rest of the construction of the west

side of Pier III for the construction works of Pier II and III was received (Note 21).

The transactions with COSCO SHIPPING LINES GREECE S.A. relate to ship services.

The transactions with COSCO SHIPPING DEVELOPMENT CO. LTD are related to ship repair services for their

vessels.

The transactions with COSCO SHIPPING GLOBAL EXH relate to exhibition expenses.

The transaction with COSCO SHIPPING TECHNOLOGY (Beijing) relates to software licence renewal.

The transaction with COSCO (HONG KONG) INSURANCE BROKERS L.T.D. of the current and the previous

period relates to the insurance coverage of PPA S.A. regarding third party liability, employer' s liability,

property and business interruption and directors and officers liability, according to article 17 of the

Concession Agreement (Law 4404/2016).

The transaction with CHINA COSCO SHIPPING CORPORATION LIMITED of the previous year relates to its

participation to Company’s advertising expenses.

The transaction with COSCO SHIPPING PORTS LIMITED is related to software for tax interconnection services

with the SAP software.

The transaction with COSCO SHIPPING TECHNOLOGY Co. LTD of the previous year relates to software support

costs.

Board of Directors Members Remuneration: During the year 2021, remuneration and attendance costs,

amounting to € 889,082.91 (2020: € 910,855.30) were paid to the Board of Directors members. Furthermore

during the year ended December 31, 2021 emoluments of € 554,857.42 (December 31, 2020: € 557,368.68)

were paid to Managers / Directors for services rendered.

The Extraordinary General Meeting of the Company's shareholders on September 23, 2019 approved the

long-term incentive bonus plan, which is cash settled of a certain number of Units. Beneficiaries of the

program are members of the Board of Directors, senior executives and other key management and business

executives who have a significant influence on the performance and uninterrupted operation of the

Company (Note 28).

Page 157 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

32. FINANCIAL INSTRUMENTS

Fair Value: The carrying amounts reflected in the accompanying sheets of financial position for cash and cash

equivalents, trade and other accounts receivable, prepayments, trade and other accounts payable and

accrued and other current liabilities approximate their respective fair values due to the relatively short-term

maturity of these financial instruments.

The fair value of variable rate loans and borrowings approximate the amounts appearing in the statements of

financial position.

The Company categorized its financial instruments carried at fair value in three categories, defined as

follows:

Level 1: Quoted (unadjusted) values from active financial markets for identical negotiable assets or liabilities.

Level 2: Other techniques for which all inflows that have a significant impact on the recorded fair value are

identified or determined directly or indirectly from active financial markets.

Level 3: Techniques that use inflows that have a significant impact on the recorded fair value and are not

based on quoted prices from active financial markets.

During the years ended December 31, 2021 , there were no transfers between Level 1 and Level 2 fair value

measurements, and no transfers into and out of Level 3 fair value measurements.

As at December 31, 2021 and 2020, the Company held the following financial and non financial instruments:

December 31, 2021 Level 1 Level 2 Level 3 Total

Financial liabilities

Interest bearing loans and borrowings (including

short term portion)

- 44,499,999.99 - 44,499,999.99

Investment property - - 734,338.38 734,338.38

Non-current ass ets held for sale - - - -

December 31, 2020 Level 1 Level 2 Level 3 Total

Financial liabilities

Interest bearing loans and borrowings (including

short term portion)

- 50,499,999.99 - 50,499,999.99

Investment property - - 734,338.38 734,338.38

Non-current ass ets held for sale - 183,500.00 - 183,500.00

Credit Risk: There is no significant credit risk for the Company towards the contracting parties, since it

receives advance payments or letters of guarantee from customers. In addition, the Company's deposits are

placed in bank financial institutions in Greece with the following ratings (Moody's credit rating):

December 31, December 31,

2021 2020

Β2 102,383,876.42 Caa1 97,735,374.28

Β3 32,775,682.28 Caa1 13,794,460.22

Total 135,159,558.70 111,529,834.50

Page 158 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Foreign Exchange Risk: The Company is neither involved in international trade nor has any long term loans in

foreign currency and therefore is not exposed to foreign exchange risk resulting from foreign currency rate

variations.

Interest rate risk: The Company’s borrowings consist of two loans in Euro and one is subject to fixed interest

rate and the other one to floating interest rate (Note 18). The Company does not use derivatives in financial

instruments in order to reduce its exposure to interest rate risk fluctuation as at the balance-sheet date. The

Company management believes that there is no significant risk resulting from a possible interest rate

fluctuation.

The table below presents and analyses the sensitivity of the result in relation to financial assets (cash on

hand and in banks) and financial liabilities (loans) of the Company to the interest rate risk changes assuming

a simultaneous change in interest rates by ± 100 basis points on the Company’s profit.

Liquidity risk: The effective management of liquidity risk is secured by ensuring maintenance of adequate

cash reserves and a possibility for funding if necessary. Corporate liquidity risk management is based on

rationale management of working capital and cash flows.

The following table summarizes the maturities of financial liabilities December 31, 2021 and 2020,

respectively, under the relevant contracts to non-discounted prices.

2021 Decrease (Increase)

Financial assets Accounting values +100bips(Euribor) -100bips(Euribor)

Cash and cash equivalents

134,975,285.73 1,349,752.86 (1,349,752.86)

Effect before income tax

1,349,752.86 (1,349,752.86)

Income tax 24%

(296,945.63) 296,945.63

Net effect

1,052,807.23 (1,052,807.23)

Financial liabilities

Long term loans

(44,499,999.99) (445,000.00) 445,000.00

Effect before income tax

(445,000.00) 445,000.00

Income tax 24%

97,900.00 (97,900.00)

Net effect

(347,100.00) 347,100.00

Total net effect

705,707.23 (705,707.23)

2020 Decrease (Increase)

Financial assets Accounting values +100bips(Euribor) -100bips(Euribor)

Cash and cash equivalents

111,354,314.06 1,113,543.14 (1,113,543.14)

Effect before income tax

1,113,543.14 (1,113,543.14)

Income tax 24%

(267,250.35) 267,250.35

Net effect

846,292.79 (846,292.79)

Financial liabilities

Long term loans

(50,499,999.99) (505,000.00) 505,000.00

Effect before income tax

(505,000.00) 505,000.00

Income tax 24%

121,200.00 (121,200.00)

Net effect

(383,800.00) 383,800.00

Total net effect

462,492.79 (462,492.79)

Page 159 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

Liquidity risk: The effective management of liquidity risk is ensured by maintaining sufficient cash and the

availability of financing in case of need. Corporate liquidity risk management is based on the proper

management of working capital and cash flows.

The following table summarizes the maturity dates of the financial liabilities of 31 December 2021 and 2020

respectively, arising from the relevant contracts at unpaid prices.

Amounts of fiscal year 2021 Current portion

Less than

6 months

6-12 months 1 to 5 years >5 years Total

Borrowings - 3,031,400.42 3,029,374.58 24,162,066.67 14,536,464.99 44,759,306.66

Lease liabilities 3,496.15 3,515,530.77 10,346.15 14,000,000.00 91,437,500.00 108,966,873.07

Trade and other payables* 6,653,055.85 8,301,662.10 4,022,595.27 - - 18,977,313.22

Total 6,656,552.00 14,848,593.29 7,062,316.00 38,162,066.67 105,973,964.99 172,703,492.95

Amounts of fiscal year 2020 Current portion

Less than

6 months

6-12 months 1 to 5 years >5 years Total

Borrowings - 3,035,612.50 3,033,577.50 24,195,360.00 20,565,119.99 50,829,669.99

Lease liabilities 3,710.00 3,511,860.00 8,534.67 14,000,000.00 94,937,500.00 112,461,604.67

Trade and other payables* 4,581,933.78 5,978,848.60 3,858,781.59 - - 14,419,563.97

Total 4,585,643.78 12,526,321.10 6,900,893.76 38,195,360.00 115,502,619.99 177,710,838.63

* Trade payables do not have interest and are settled in up to 60 days. Other payables also do not bear any

interest and are settled in up to 12 months.

Capital Management

The primary objective of the Company's capital management is to ensure the maintenance of high credit

rating, and healthy capital ratios in order to support and expand the Company's operations and maximize

shareholder value. The Company's policy is to maintain leverage targets, according to an investment grade

profile. The Company monitors capital adequacy using the ratio of total debt to operating profits, which

should be lower than 9.80 based on the loan agreements (Note 18). The debt includes interest-bearing loans

and lease liabilities, while the operating profit includes profit/(loss) before taxes, financing costs and

depreciation.

2021 2020 Restated*

Long-term borrowings 38,499,999.99 44,499,999.99

Short-term borrowings 6,000,000.00 6,000,000.00

Lease liability (long-term/short-term) 65,435,982.72 66,538,481.42

Total Debt (including lease liabilities) 109,935,982.71 117,038,481.41

Earnings before interest, tax, depreciation and amortization

(EBITDA)

70,304,423.14 58,000,799.42

- Total Debt / EBITDA 1.56 2.02

December, 31

* Restated amounts due to change in accounting policy (See note 3.1)

Page 160 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

33. SUBSEQUENT EVENTS

The recent geopolitical events in Ukraine, the military actions from Russia and the subsequent response

from European Union and European countries as well as the United States in the form of economic

sanctions could affect global energy markets and economic developments in general and specifically to

the Company. The Company is following developments around the crisis in Ukraine and is planning

accordingly, however, its activities do not appear to be significantly affected. The Company regards these

events as non-adjusting events after the reporting period, the potential effect of which cannot be

estimated at the moment.

Except the above, there are no other events subsequent to December 31, 2021 which would influence

materially the Company’s financial position.

Piraeus, March 14, 2022

CHAIRMAN OF THE BOARD OF

DIRECTORS

CHIEF EXECUTIVE OFFICER (ACTING)

FINANCIAL MANAGER

YU ZENG GANG

ZHANG ANMING

IOANNIS KOUKIS

Passport No ΡΕ1895434

Passport No PE2110665

License No. Ο.Ε.Ε. 0007437

A’ Class

Page 161 of 161

Annual Financial Report for the year ended December 31, 2021

(amounts in Euro unless stated otherwise)

The annual financial report of the Company, the independent auditor’s report and the Management

Reports are available to the website www.olp.gr.