Manos Chatzidakis

         Market Comment

Greek stocks remained under pressure for the fourth consecutive session on Thursday, hit by a negative climate prevailing in international markets in the aftermath of comments made by US Federal Reserve governor over a possible gradual exit from monetary easing policies as early as June. National Bank came at the focus of selling activity ahead of a four-day suspension of trading –beginning on Friday- ahead of a reverse split plan.

General Index is short term oversold (G.I.: -9.9%, FTSE-25 -13.4%, Bank Index -39.4%) and that might give incentives for a strong positive reaction as European markets seem to stabilise after yesterday drop.

           In the Spotlight

Greece: Fiscal spending fell short by 9.9 pct compared with budget targets in the first quarter of 2013, the Finance Ministry said on Thursday. Spending by most government agencies was down between 1-67.4 pct in the January- March period, while spending surpassed budget targets by 31 pct in the Finance Ministry, 65.7 pct in the Justice Ministry and by 156.6 pct in regional authorities.

OPAP (Results 3M 2013): OPAP posted an expected weak set of results in line with market estimates. Revenues down 18.4% to €869.3m due to the adverse local macroeconomic environment, fewer effective trading days and player winnings taxation. GGR down 13.4% exhibiting an improved trend compared to the revenues’ decline due to lower payout in Stihima and less prize payouts (-20%).

EBITDA settled 68.8% lower to €57.6m (2012: €184.4m), hit by the 30% GGR taxation effective January 1st, 2013 while Net Profit is down 70.5% to €38.9m (2012: €131.9m). Management keeps intact its net profit guidance for the year at €116m as presented in the company’s business plan.

A conference call with financial analysts will take place today at 16:00 Athens time. To join the call, you may dial in +44 (0) 800 376 9250 (UK) or +30 211 1802000 (GR) or +1 866 288 9315 (US).

OPAP	Results Q1 2013			Estimates Q1'13
In thous. Euro	2012	2013	Δ	3M 13 E	Δ (Est)
Sales	1.065.230	869.300	-18,4%	883.750	-1,6%
EBITDA	184.379	57.600	-68,8%	59.850	-3,8%
(% of sales)	17,31%	6,63%	-1.068 bps	6,77%	-15 bps
Net Income	131.906	38.900	-70,5%	39.050	-0,4%
(% of sales)	12,38%	4,47%	-791 bps	4,42%	+6 bps

National Bank: NBG will release its Q1 results today after market close. A conference call will follow at 17: 30 local time. In order to participate in the teleconference, please use one of the following telephone numbers:

                        

¡         + 44 (0) 800 3769 250 (UK)

¡         +30 211 180 2000 (GR)

¡         +1 866 288 9315 (US)

¡         +44 (0) 20 70753 205 (Other International Dial In)

Attica Bank (Results 3M 2013): The pre-tax result of the Group for Q1 2013 was a loss of 25.9 million euros, against a loss of 24.2 million euros in Q1 2012. Respectively, the financial result after tax for Q1 2013 was a loss of 18.7 million euros, against a loss of 5.6 million euros in Q1 2012. In specifics:

 

¡         Equity of the Group was 84.08 million euros.

¡         Total Assets of the Group were 3.8 billion euros.

¡         NPL ratio was 21.6%

¡         Provisions for credit risks were 12.1 million euros for Q1 2013, against 10.8 million euros in Q1 2012, displaying an annual increase of 12%.

¡         Accumulated provisions amounted to 373.9 million euros, displaying an annual increase of 3.3%. The coverage ratio for loans that are more than 90 days in arrears (IFRS-7) from accumulated provisions was 42.2% for Q1 2013.

¡         Net interest income for the Group was 5.3 million euros, displaying a reduction of 68.7% on a year-on-year basis, owed to the fiscal crisis inGreece which results in the lack of access of banks to the markets in order to raise low-cost liquidity.

¡         Total operating income for the Group was 11.9 million euros displaying an annual reduction of 47.5%.

¡         It should be noted that operating expenses (excluding provisions for operational risks and depreciation) were reduced by more than 19.5% and also personnel cost was reduced by 7.7%. Total operating expenses (including personnel cost) were reduced by 11.4%.

GEKTERNA: TERNA  in joint venture with Arabtec, were awarded a project of constructing a hospital in Riyadh, Saudi Arabia. TERNA holds 40% in the joint venture. The project is expected to be completed in early 2015 and the contract price is 84.1 mio Euro. TERNA’ s backlog has reached the amount of 3,1 bn. Euro.

Other Q1 results :

Flexopack	Results Q1 2013
In thous. Euro	2012	2013	Δ
Sales	12,877	13,793	7.1%
EBITDA	1,924	2,178	13.2%
(% of sales)	14.94%	15.79%	+85 bps
Net Income	871	288	-66.9%
(% of sales)	6.76%	2.09%	-468 bps

HOL	Results Q1 2013
In thous. Euro	2012	2013	Δ
Sales	59,885	54,860	-8.4%
EBITDA	16,653	17,748	6.6%
(% of sales)	27.81%	32.35%	+454 bps
Net Income	-3,117	2,007	164.4%
(% of sales)	-5.20%	3.66%	+886 bps

General Com.	Results Q1 2013
In thous. Euro	2012	2013	Δ