General Meeting of Shareholders of the PPA SA

Piraeus,  22.06.2012




The General Meeting of Shareholders of the Piraeus Port Authority (PPA SA) ended with the approval of the Results of the Annual Financial Report 2011.
As noted by the Chairman and Managing Director of PPA SA, George Anomeritis, 2011 was a year of positive economic and reform measures, which enhance PPA SA as an important hub in the area of the port industry. This positive trend will continue in 2012, as shown by the financial data to date.
It is known that as a country we are experiencing a fiscal crisis, which has led to a recession in the Greek economy for the fourth year running. At the same time, in the field of shipping and freight companies all indicators are falling and large companies are showing serious loses, as seen by the operating loss of 5.6 billion Euros by the 22 largest carriers in 2011. In a crisis, which requires Europe to lower growth rates, which decreases indices continuously in China, USA and Japan, the shipping and port industries will be compressed in the coming years.
1. Despite the crisis and the difficult adjustment to new realities that followed the granting of Container Terminal II to a third provider in 2011, PPA SA shows profits. Specifically:
• Revenues for use increased by 6.5%, despite a decrease in turnover by 9.93%. This is due to a significant reduction in administrative expenses and operating expenses.
• Earnings before tax amounted to 10.7 million.
• Net profit after taxes is 6.4 million.
• All indicators (quick liquidity, leverage, general liquidity) showed improvement.

2. From 2010 onwards, PPA SA after the shrinking of the container sector, has strengthened the strategic development of the cruise industry and the automotive sector (car-terminal). However, our development policy supported all sectors even where loses were recorded. In 2011, the areas of cruising, cars, containers and shipping moved incrementally, while the area of drydocks moved downwards. Especially in the area of cruise which showed a 35% growth had all positively surprised, since 2010 compared with 2009 showed 8.1% decline.

3. PPA SA implements the investment program of EUR 1 billion Euro, which is distributed in all areas of activity with particular emphasis after the container terminal on the cruise. Already 4 major projects in the central port joined the NRSF, while all works have been issued the necessary approvals for implementation, after titanic effort to their maturity through the bureaucratic centralized system of the central management.
4. 2011 was also an important year in the development of international relations within the "port industry."
• We reconstituted the Hellenic Ports Association (ELIME).
• We became members of the European Ports Union (ESPO).
• We became members of MedCruise, we held its General Assembly and we elected a new President for it, the General Director of PPA SA, Stavros Hatzakos.
• MedCruise recently decided to transfer its headquarters from Barcelona to Piraeus.
• Within the context of Elime, we created the Cruise Ports Association.
• We actively participated in all forums and together with 20 other ports in European projects and finally
• We gained the title of ECOPORT, which was awarded to us by ESPO.

5. As part of the business and our corporate social responsibility, we began the great work of the Cultural Coast of Piraeus, a space that connects the city with the port through various cultural activities. This project is currently the most important work of regeneration in the Attica area and thus the Municipality of Attica has signed a memorandum of cooperation with PPA SA
Both our investment program and the achievements of 2011 will be distributed along with the financial report in detail in separate brochures.

6. The country is in the midst of difficult economic times. We must develop and reform our port system, so that the port industry can contribute actively to the development of the area and reduce budget deficit. Since the last general meeting, in the face of so many unacceptable complaints, we have openly supported our views, which are currently supported by a wide range of forces. We restate them in summary:
• To maintain the European port model, where a 51% stake is maintained and controlled by the state, government, chambers and users of the shipping and port industries.
• To rearrange into a new sustainable business model for all port operations and funds.
• To create an "Independent Ports Authority", which will resolve all matters of dispute between ports and users.
• To create a complete distinction between "Port Authority" to be responsible for the exercise of public authority over all activities and "Operation of Port Services".
• User involvement through transparency and concessions to those who create new infrastructure, long-term investments and new jobs.
• Wide port combinations venture holdings to bolster the business of all ports in the country.
PPA SA in every respect is the leader of the country's port industry. The leading role through Elime leads to complete dissipation capabilities in all the other ports in the Greek port industry. In an era of difficult circumstances, we all realize that the state model of “customer democracy” and the Thatcher model of full privatization do not serve the interests of the Greek economy and businesses in the country. The joint ventures with respect to social rights and protecting the environment, are the only viable options in the area of the port industry.