Greece at your business' service

November 2018

A Worldwide Destinationfor Global BusinessServices and Shared Service Centers

GREECE IN THE SPOTLIGHT:

www.enterprisegreece.gov.gr

A. INTRODUCTION

A global trend

It is increasingly common for multinational companies to establish Global Business Services – GBS and Shared Service Centers – SSCs to provide services within the group. With the rise in volume of cross-border transac-tions and intensifying competition among multinational groups, companies often centralize the entire range of intragroup services in a single location to achieve efficiency and avoid duplication of services. This trend has led to a rise in intragroup SSCs.

Why Greece?

Many multinational companies have already chosen Greece as a preferred location for the establishment of Global Business Services – GBS and Shared Service Centers – SSCs. Greece presents a unique investment opportunity as it combines:

An advantageous geostrategic location

A highly educated and multilingual work force

Competitive wages

Flexible investment framework

Telecommunications infrastructure

Competitive real estate

Excellent climate and quality of life

EU member country enjoying stability, security and prosperity

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B. GREECE AS YOUR NEXT BUSINESS LOCATION

B1. GEOGRAPHIC POSITION

2.000 km

1.500 km

1.000 km

Athens

Thessaloniki

Mediterranean SeaTunisia

Spain

MontenegroSerbia

HungarySlovakiaGermany

Belgium

Switzerland

Sweden

Denmark

Netherlands

Poland

LithuaniaBelarus

Ukraine

Romania

Moldova

Russia

Estonia

Latvia

SloveniaAustria

BosniaCroatia

FYROMBulgaria

AlbaniaPortugal

Lebanon

Jordan

Syria

Turkey

Israel

Cyprus

EgyptLibya

Morocco

France

UK

Algeria

Italy

Strategically positioned as the gateway to 3 continents

In a time zone (+/- 3h) Greece covers:

2,4 bn people (30% of global population)~30% of global GDP

Flight time from Athens to (app.):

New York: 10 hoursLondon: 3,5 hoursBrussels: 2,5 hours

Moscow: 3 hoursDubai: 4 hoursBeijing: 8,5 hours

AFRICA MIDDLE EAST

EUROPE

3

MedNautilus Submarine System

Source: https://www.grnog.gr/wp-content/uploads/sites/7/2018/07/Polyrakis-Internet-Infrastructure-in-Greece.pdf

Asia-Africa-Europe 1 (AAE-1)

B2. TELECOM INFRASTRUCTURE Greece can satisfy all telecom infrastructure needs (fixed, mobile, data, fiber-optic networks etc.).

International network: Greece is a part of • MedNautilus Submarine System-Sparkle • Asia-Africa-Europe 1 (AAE-1)• The Quantum Cable, a planned subsea ultra high speed fiber-optic cable system connecting Asia

and Europe via the Mediterranean Sea

Backbone network: OTEGLOBE, WIND, Vodafone, Forthnet, CYTA, among others

According to the National Broadband Strategy, Next Generation Access aims are 100% broadband cov-erage with minimum speeds of 30 Mbps with at least 50% of households benefiting from 100 Mbps by 2020. In line with the targets of the Gigabit Society, this should rise to 1 Gbps connectivity by 2025.

4

Dublin0,64%

Paris0,61%

Lisbon0,28%

Madrid0,18%

Zurich0,29%

Rome0,05%

Athens0,33%

Vienna0,16%

Berlin0,33%

Copenhagen0,49%

Oslo0,51%

Helsinki0,36%

Stockholm0,65%

Amsterdam0,61%

Comparatively high density of developers

Source: https://talent.balderton.com/European_Tech_Talent_Landscape.pdf

Top talent at a highly competitive cost.

3rd in percentage of graduates in Science (ITIF Report Jan 2016).

Density of talent is key to buildingstrong ecosystems

BROADBAND PENETRATION IN EU 28

Italy

Estho

niaFin

land

Belgi

um

Hung

ary

Czec

h Rep

ublic

Roman

ia

Franc

eMa

lta

Irelan

d

Latvi

a

Portu

gal

Germ

any

Lithu

ania

Slova

kia

Bulga

ria

Croa

tia

Gree

ceCy

prus

Austr

ia

Slove

nia

Denm

ark

Nethe

rland

s

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mbourg

EE-2

8

Swed

en UK

Polan

d

Spain

50

45

40

35

30

25

20

15

10

5

0

Source: Hellenic Telecommunications and Post Commission- June 2018, https://www.eett.gr/opencms/export/sites/default/EETT/Electronic_Communications/TelecomMarket/broadbandServices/Broadband-stats-2017-Q4.pdf

B3. TOP TALENT

GREECE 10th

5

AMONG THE EUROPEAN LEADERS IN SCIENCE & TECHNOLOGY WORKFORCE

Italy

Italy

Franc

e

Franc

e

Malta

Malta

Portu

gal

Portu

gal

Germ

any

Germ

any

Gree

ce

Gree

ce

EE-2

8

EE-2

8

Spain

Spain

Human resources in science and technology as a share of the active population

50,80%

France

48,70%

Germany

44,30%

Spain

38,50%

Greece

36,50%

Bulgaria

36,50%

Hungary

36,40%

Portugal

36,30%

Italy

28,10%

Turkey

27,70%

Romania

Source: Science & technology statistics 2017

A MULTILINGUAL WORKFORCE

Percentage of Managers, Professionals, Technicians and Associate Professionals who speak a foreign language

Percentage of Clerical Support Workers, Service & Sales Workers who speak a foreign language

Source: Education statistics 2015

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B4. GREECE REMAINS HIGHLY GOMPETITIVE IN THE EU ON HOURLY LABOR COST

Labour Cost per hour in Euro in the Service Sector

Belgium

Source: Science & technology statistics 2017

Source: Employment Outlook 2017

Greece

13,8

Portugal

14,3

Cyprus

16,3

Spain

20,1

EU

25,8

Italy

26,9

EU Area

28,7

Germany

30,5

France

36,1

40,6

GREECE REMAINS STRONGLY COMPETITIVE ON AVERAGE ANNUAL WAGE COST

Italy

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o

Eston

ia

Unite

d King

dom

Chile

Belgi

um

Hung

ary

Japa

n

Czec

h Rep

ublic

Franc

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Korea

Irelan

d

Latvi

a

New

Zeala

nd

Portu

gal

Germ

any

Israe

l

Austr

alia

Lithu

ania

Finlan

d

Gree

ce

Austr

ia

Slove

nia

Denm

arkNe

therla

nds

Norw

ayIce

land

Switz

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dUn

ited S

tates

Luxe

mbourg

Slova

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Swed

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Polan

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Cana

da

Spain

25,1k

0k

10k

20k

30k

40k

50k

60k

Belgium

7

B5. COMPETITIVE REAL ESTATE PRICES, AFFORDABLE LIVING COST WITH A UNIQUE LIFESTYLE

Prime CBD rents (€/sq.m./year), Q1 2018

Note: Prime rents refer to modern office space, minimum 1,000 sq m

COMPETITIVE REAL ESTATE MARKET IN PRIME CDB RENTS

Source: Market report, European Offices Savills

Vacancy rates, Q1 2018

Lisbo

nAthe

ns

Barcelo

na

Brusse

ls

Copen

hage

n

Frank

furt

Luxe

mburg

Paris

CBD

Lond

on City

11,00%

8,80%8,30% 8,00%

7,00%

5,90% 5,70%

4,50%

2,30%

Source: Market report, European Offices Savills

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ATHENS' OFFICE MARKET CONTINUES ON A PATH OF IMPROVEMENT

B6. GREECE A UNIQUE PLACE TO LIVE

Greece scores high on all major factors taken into consideration when choosing a new country for relocating, such as quality of life, regulated environment, secure living conditions in urban and rural areas, access to efficient services, residence privileges for family members, freedom to travel:

Rich history and cultureNatural beauty and mild climateGreek cuisine-Mediterranean dietA wide variety of educational optionsModern healthcare infrastructure and highly skilled medical personnel Multilingual populationIntellectual capital

9

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Turk

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47 48 51 52 52 52 52 53 55 56 62 65 67 69 69 72 79 82 84 85 85 88 92101 103 105 108 109 111 112 117 122 125 125 127

142 143

159 166

AFFORDABLE AND COMPETITIVE LIVING COST IN A DEVELOPED MEDITERRANEAN ECONOMY Price level index for household final consumption expenditure, 2017

(*) This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence.

Source: (Results are based on price surveys covering more that 2,400 consumer goods and services which were conducted across 37 European countries participating in the Eurostat-OECD Purchasing Power Parities (PPP) program

QUALITY OF LIFE…

Greece Ranks 1rst in # of Practicing physicians,

per 100.000 inhabitants in EU, in 2009 and 2014

Source: 2009 2014

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B7. ESTABLISHMENT OF INTRA-GROUP SERVICE CENTERS IN GREECE AND AVAILABLE FINANCING

FRIENDLY AND CONTEMPORARY FRAMEWORK

An attractive framework for businesses

Intra-Group Service Centers established in Greece, under Law 3427/2005, may provide the following services to their head-offices or affiliates abroad, as well as in Greece: Consulting services, Centralized accounting services, Quality control of production, products, procedures and services, Preparation of studies, designs and contracts, Advertising and marketing services, Data processing services, Receipt and supply of Information and Research & Development services.

The entities under this law are obliged to maintain a minimum size regarding the employment and operating expenses, at least 4 employees and €100.000 per year operating expenses in Greece.

Companies wishing to establish presence in Greece for the provision of Intra-Group Services, subject to the provisions of Law 3427/2005, are required to submit to the Directorate for Foreign Capital at the Ministry of Economy and Development

Intra-Group Service Centers enjoy the following benefits:

Flexibility with regards to the type of business entitySimple, fast and transparent licensing processLegal certainty with pre-defined profit margin on costsThe submission of the necessary documentation can be done electronicallyResidence and work permits for its foreign staff

INVESTMENT INCENTIVES FOR INTRA-GROUP SERVICES

The following investment incentives will be shortly introduced as an amendment to the existing Law 3427/2005 in order to provide a comprehensive investment framework for GBS and SSCs in Greece.

Types of incentives:

Total wage cost (wage and social security contributions) subsidies for the creation of new employment in labor intensive GBS and SSCsTotal wage cost subsidies up to 50% for new scientific personnel and technical staff Subsidy for research tools and research equipment up to 50%

Provision of tax incentives: Tax exemption of 130% of total annual R&D expenses

shortly available under Law 3427/2005

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FRIENDLY FRAMEWORK FOR START-UP FINANCING

TOP 10 MOST FUNDED GREEK STARTUPSA total amount of more the 200 million euros have been invested in Greek startups during the period 2010-2016. For 2017, almost 100 million euros were added to this amount, as two of the biggest exits were announced, Taxibeat’s and Innoetics, for a combined total of almost €80m

Equifund a fund-of-funds to support innnovation and SMEs was launched with:

200 million euro from European and national funds

60 million from the European Investment Fund

40 million from the European Investment Bank

European Fund for Strategic Investments, the core of the so-called ‘Juncker Plan’ and

another 100 million is calculated to receive from other private investors.

In total, 400 million euro is expected to be deployed in the period 2018-2023 in venture capital investing

COMPANY TOTAL FUNDING (IN MILLIONS)

1 Persado 83,46 €

2 Workable 30 €

3 Hellas Direct undisclosed

4 Metamaterial Technologies 16,26 €

5 Book 'n' Bloom 12,55 €

6 Resin.io 10,78 €

7 Blueground 6,94 €

8 Taxibeat (Beat) 5,49 €

9 Transifex 5,47 €

10 Intale > 5 €

Source: Foundation_Start ups in Greece report

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…MORE THAN €250MN INVESTMENTS SINCE 2012

INVESTMENT INCENTIVES LAW

Foreign investors have acquired majority stakes in Greek startupsFour Greeks were in the 2017 edition of Forbes 30 under 30 and two Greeks made it to the 2018 list

Aid schemes:

1. Tax exemptions2. Cash grants3. Leasing subsidy (leasing)4. Wage costs subsidy5. Financial instruments (capital participation, loan guarantee, loan etc.)6. Fixed tax regime for a certain period of time7. Rapid licensing

State Aid percentages:

Regional State Map percentages foresee maximum aid rates reaching 55% of the total investment cost for small and very small enterprises and 35% for large enterprises.

18x

2012

0

50

5

4050

75

90100

150

2013 2014 2015 2016

Percentages depend on the size of the company and the region of the country in which the project will be implemented

The First Round for Calls of Interest has attracted 772 investment plans, with a total investment budget of €2 bn and €700 mn of total investment support. The first 70 projects have been approved with a total budget in excess of €500 mn

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INTERNATIONAL BPOS & CONTACT

CENTERS IN GREECE

LARGE SIZE CONTACT CENTERS IN GREECE847 companies offer business services to other companies in GreeceMore than 120 are shared service centers, mainly call centersLarge size contact centers with over 250 positions operate at full capacity in Greece as regional mul-tilingual hubs, currently employing more than 20,000 highly skilled employeesSmaller size call centers, with 50 to 100 positions, offer services mainly to the Greek market

CUSTOMER SUPPORT SERVICESAND CALL CENTERS

STAFF NUMBER

Teleperformance Greece 6,200

COSMOTE E-value 6,000

Mellon Group of Companies 4,500

ICAP Outsourcing Solutions 2,100

First Data Greece 1,100

360Connect 500

Mediate 500

Piraeus Direct Services 350

INTERNATIONAL BPOS & CONTACT CENTERS IN GREECE

In 2002 it became the Regional Headquarters for the Teleperformance Operations in South Europe & the Mid-dle-East and in 2004 it started becoming a major Multilingual destination for Europe, the Middle East and Africa, serving currently over 140 markets in 35 languages & dialects and employing more than 6,200 people from 91 nationalities. Teleperformance Greece operates today out of 3 Multilingual Hubs in Athens and 1 Site in Chania.

Mediterranean Shipping Company operating a network of over 480 offices in 155 countries, employing a team of over 70,000 dedicated individuals. MSC has an established fleet of 490 container vessels with an intake capacity of circa 3.1 million TEU and its sailing schedules cover 200 routes, calling at 500 ports.

Accenture Analytics – “Center of Excellence” in Athens, a global analytics centre for Accenture, serving more than 30 markets, doing analytics in all developed and developing markets, such as, US, UK, Italy, France, Germany, Spain, Portugal, Greece, Turkey, Middle East, Japan, India, China.

Oracle opened a new software center in Greece. Oracle’s cloud development hub will develop software applications and tools and provide support for customers of the California-based IT company. This is the company’s second biggest hub out of the five currently in operation. The other four are in the US, the UK, the Netherlands and India.

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€43 mil. investment by Coca-Cola HBC for one of the largest private sector ICT projects in Greece, serving 24/7 business transactions for 36,000 employees and 18.5 mil. orders annually

The Coca-Cola Company established in the 2014 the Consumer Interaction Center (CIC), a pioneering social networking hub based in Athens. The CIC is operating like a startup, yet in full alignment with the Company’s philosophy and employs a total of 25 people, of which 8 in Athens, where the social media strategy for 26 countries is designed.

SAP sets up its first global data science delivery hub in Athens. The role of the new hub will not cover just the domestic and wider geographical region and would be the start of a further expansion of SAP’s activities in Greece.

Nokia Solutions and Networks a wholly subsidiary of Finnish Nokia, launched new activities for its research and development center in Athens, creating more than 1100 job positions.

SHARED SERVICE CENTRES IN ACCOUNTING ESTABLISHED BY FOREIGN COMPANIES, L. 3427/2005 FOR INTRA-GROUP SERVICES

NAFTOMAR SHIPPING & TRADING CO LTD INC (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30

Nike Hellas (SPORTS CLOTHING) has established its centralized accounting SSC in Greece. # employees 46

World Gaz Corporation SA (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 37

BMS UNITED BUNKERS (CYPRUS) LTD, (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30

Consolidated Contractors Group S.A.L. (CCC) (CONSTRUCTION SECTOR) has established its centralized accounting SSC in Greece. # employees 589

PEOPLECERT (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 100

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CRESCENT HOLDING GHBH (INVESTMENT SECTOR) has established its centralized accounting SSC in Greece. # employees 49

EPSILON HELLAS OVERSEAS LTD (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 40

GAS Security SA has established its centralized accounting SSC in Greece. # employees 11

HILL INTERNATIONAL (CONSULTING SERVICES ) has established its centralized SSC in Greece. # employees 34

IKEA FRANCHISE AND PROJECT MARKETING LTD (RETAIL SECTOR) hasestablished its centralized SSC in Greece. # employees 27

SAMSUNG HEAVY INDUSTRIES CO LTD has established its centralized accounting SSC in Greece. # employees 4

DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO LTD has established its centralized accounting SSC in Greece. # employees 5

HANWHA CORPORATION has established its centralized accounting SSC in Greece. # employees 4

McGRAW-EDISON DEVELOPMENT CORPORATION has established its centralized accounting SSC in Greece. # employees 15

HYUNDAI HEAVY INDUSTRIES COPMANY LTD has establishedits centralized accounting SSC in Greece. # employees 4

Coca-Cola Hellas S.A. has established its centralized accounting SSC in Greece. # employees 67

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Enterprise Greece is the official agency of the Greek State, under the supervision

of the Ministry for Economy and Development.

To showcase Greece as an outstanding destination for investment and to promote the highly

competitive products and services produced in Greece for export.

Athens: 109 Vasilissis Sophias, 115 21 Athens, GreeceThessaloniki: 36 Tsimiski, 546 21 Thessaloniki, Greece

Tel: +30 210 335 5700

email: info@enterprisegreece.gov.grwebsite: www.enterprisegreece.gov.gr/

Your partner for growth