“Man cannot discover new oceans unless he has the courage to lose sight of the shore.” Andre GideIn the light of the adverse current international economic environment, this newsletter, will try to show a glimpse of how Exports through its people, can and certainly will play a key role in the growth strategy of Greece.

Exports represent one of the most important sources of foreign exchange income that ease the pressure on the balance of payments and create employment opportunities. Exports can increase intra-industry trade, help the country integrate and compete in the world economy and reduce the impact of external and internal financial shocks.

Indicatively, the exports as a percentage of GDP among the wealthiest countries in the world varies between 17% in UK, 20% in France, 21% in Italy and reaches an overwhelming 27% of GDP in China and a 37% in Germany.

On a corporate perspective, a solid path for a company to optimize its global dynamics is to achieve a 20% exports share on total revenues and presence in more than 2-3 countries. In this context the size of a company is not an obstacle for exports as there are plenty of successful small-medium scale companies with huge success abroad (“the invisible champions”).

In the era of globalization of economic activities, Greek exporting companies, regardless of their size, sector, capital and managerial structure, face the issue of optimum model of internationalization. Greek companies nowadays have serious motives to expand their sales abroad including the significant decline of the domestic market and the intensification of the competition. The company’s extroversion facilitates risk diversification, boosts innovation and application of new technologies, creates new job opportunities, enhances access to global practices and finally, guarantees company viability.

In 2011, Greece achieved a 37% increase in exports, a figure sensibly higher than the European Union average which stood at 11.3%. In absolute terms exports reached 22.4 billion Euros and contributed 10.4% to the country’s GDP. It is needless to say that there is still plenty of room for improvement; 35% of exports executives, who participated in our survey, work for companies whose exports contribution is less than 10% to the total turnover. In real numbers, 12,000 companies are exporting, only the 2% of the private sector.

The major challenge for Greek exporters is to deliver high quality products and services that can compete for significant share in global markets. A strategy combined of syndicated efforts and synergies between Chambers of commerce, commercial attachés, trade associations, increased funding and of course less bureaucracy, must gear this effort.

Specialized multi-cultural executive profiles, continuous training, advanced technology, optimum production capabilities, innovation and R&D, are the enablers for a National Export Strategy that will consequently create an Export Culture in our country.

I am very confident that Greek Exports will be a significant contributor to the GDP of Greece in the next years and quite optimistic for the future of our country. When the dust settles down, Greeks will turn the page and move on as they have done at numerous instances back in history.

“Made in Greece”, valued worldwide.I would like to thank all partici-pants in this issue; it is an honor and pleasure hosting you in our Newswire.

Enjoy your reading!Harris Pezoulas, President

72 offices in 46 countries

Contents

p1 Editorial

p2,3 First National Exports Survey

p4 Skinos

p5 Korres

p6 Gaea

p7 Kallimanis

p8,9 Panhellenic Exporters Association

p10,11 Folli-Follie

p12 Chipita

p13 Pharmathen

p14 Sidenor

p15 Alumil

p16 Corallia clusters initiative

E X P O R T S Special Edition

In Tune with the Local Connected to the World

JUNE 2012 The Online Executive News for Corporate Leaders

A driving force to recovery

It is also interesting which sub-function of Exports will be in demand during the next 12 months: First comes Area Exports with 55.1%. Second comes Customer Service with 39.8%, third Logistics 39% and fourth Sales operations by 34.7%, while respondents believe that the available job opportunities are more likely to be found in the sectors of: 1. Energy (58.5%) 2. Consumer products (55.1%) 3. Pharmaceuticals (39.8%) 4. Retail (28%) 5. Logistics & Transportation (26.3%).

Exports executives would consider a career move provided that they will undertake a more senior role with increased responsibility, increased com-pensation and benefits and an implied international relocation assignment.

The percentage of Exports Executives who wish to explore the possibil-ity of a new career is quite high: 54.2% The most known and effective way to achieve change in career, with a significant percentage of 56.9%, is through Executive Search companies. After that, follows the Network-ing, meaning the expansion and development of the private network of acquaintances and contacts (56%).

Huge willingness is observed in exploring opportunities for relocation abroad (70.4% responded positively to this possibility). With greater ease, the Exports executives would move to the nearest more familiar markets of Eastern Europe (71.8%). Furthermore other regions consid-ered are: the Gulf region (67.9%), CIC countries (41.0%), Asia (37.2%) and to a lesser degree in Africa and Latin America (24.4%). Finally respond-ents have spotted those skills needed in order to achieve their career goals and the first two are related with their “own brand develop-ment”, in other words to increase the ability to become more visible in the market (69.3%) and to develop their own marketing plan (51.8%). Last but not least the development of personal skills, the alignment with Executive Search consultants, the development of technical skills and the enrichment of their academic background were also rated as quite import for career advancement.

Overall there is great opportunity in the development of exports across sectors as the current % contribution of exports to the total company’s turnover is still relatively small. Indicatively 35.6% of respondents work for companies whose exports contribution is less than 10% to the total turnover. It should also be em-phasized that there is potential in the geographical coverage as well. Key exporting areas are right now: Eastern Europe (79.7%), Western Europe (72%), Asia (50.8%), Africa (44.1%), US (42.4%), Australia (31.4%), Russia (28%) and CIS countries (25.4%).

With regard to the priorities of the Exports Department, in the first place is the Identification and Assessment of distributors. Second comes the Access to International market information followed by Product availability, Specialization of products and Back office support.

During the last year the performance of Senior Export Managers have been affected by Pricing pressures, Cost consciousness, Com-petition, Recession and Restructurings.

The role of an Exports Management team is extremely crucial during the recession. But which are the competencies required? Flexibility/Adaptability is by far the most important (56.8%). Other compe-tencies are: Strategic orientation (45.8%), Customer orientation (45.8%), Multicultural experience (39.8%), Communication skills (33.9%) and Strong commercial/marketing background (31.4%).

If it was required to rate the capabilities based on their importance, the hierarchy would be as follows: Customer Service, Sales Man-agement, Marketing and Key Account Management.

Export expansion and economic development are closely related. The high-growth countries are characterized by rapid expansion in exports. Here again it is important to note that

export expansion is not confined to those countries fortunate in their natural resources, such as the oil-exporting countries. Some of the developing countries were able to expand their exports in spite of limitations in natural resources by initiating economic policies that shifted resources from inefficient domestic manufacturing industries to export production.

Nowadays, more than ever, Greek exporting companies must target, set as their priority and achieve a long-term competitive advantage in the international markets.

The survey took place in April 2012 among 450 respondents. 60% were at a Managerial/Director level, 6.4% were General Managers (with double role), 6.4% were Owners while the rest were Marketers (3.2%), New Business Development Managers (9.6%) and upper-mid-dle level executives. Furthermore, 83.9% were male and 1 out of 2 in the age group of 40-50. Most respondents are employed at Consumer Products (42.4%) while Pharmaceuticals absorbs 11%, Retail 7.6%, Energy 5.9% and Logistics & Transportation 3.4%.

The vast majority of Exports Executives believe that Greece will see the first signs of economic recovery after 2 years (46.6%) while a 44.9% foresees recovery after 3 years. However, they are quite opti-mistic regarding the positive contribution of exports to the coun-try’s total recovery. More specifically 75.4% of respondents claim that exports will contribute significantly to the recovery of Greece and 83.9% agree that exports can be a leading contributor to the GDB of Greece in the next 5-10 years.

A key topic is the key sectors where the major developments are expected and in that question respondents replied in Agricultural sector (78%), Energy sector (49.2%), Greek gastronomy (42.4%), Services (31.4%), Industrial sector (25.4%) and Consumer Products (22.9%). Concerning the respective developments in product catego-ries, those are expected in Fruits/Vegetables (62.7%), Fish farming/Aqua culture (50.8%), Cheese/Dairy (37.3%), Pharmaceuticals (28.8%), Oil/Petrochemicals (25.4%), Aluminium (20.3%).

Undoubtedly nowadays executives in Exports are required to manage complex problems in an unstable and quite difficult environment. There are though certain reinforcers which can accelerate exports development and the research concludes that these reinforcers are: Quality of products (50.8%), Access to emerging markets (43.2%), Trend for Mediterranean diet (37.3%), Tourism experience on Greek products (36.4%), Skilled and available workforce (32.2%), Product customization per market (26.3%), Government / banking support and subsidizing (25.4%).

On the other hand there are various obstacles which constrain the development of exports in Greece with Bureaucracy rated as by far the number one obstacle. Respondents also mentioned other obsta-cles such as lack of specialized exports marketing, not sufficient export culture and experience, competition forces, cost issues and production capacity issues.

First National Exports Survey 2012, by Stanton Chase Athens

In those turbulent times for Greece and in continuation

to a series of surveys conducted either functionally or

sectorially, Stanton Chase Athens took the initiative

for the first time to explore the “world” of Exports and its

upper and senior Executives.

22.9 %

In which sector do you expect major exports development?

Agricultural

Energy

Greek gastronomy

Services

Industrial

Consumer products

Technology

Other (please specify)

0% 20% 40% 60% 80%

78.0 %

49.2 %

42.4 %

31.4 %

25.4 %

7.6 %

5.1 %

Very much SomewhatNot at all

54.2 %

5.9 %

39.8 %

How interested are you in investigating a new carrer opportunity?

In which product categories do you expect major exports development?80%

60%

40%

20%

0%

Fruits, Vegetables Cheese, Daily Oil-Petrochemicals PDO products Cotton All Other Responses

Fish farming/ Pharmaceuticals Aluminium Other (please specify) Tubes/Pipes Aqua culture

62.7 %

50.8 %

28.8 %

25.4 %

20.3 %

12.7 %9.3 %

5.1 % 5.1 %3.4 %

37.3 %

To which geographical areas does your company export?

Eastern Europe

Western Europe

Asia

Africa

US

Australia

Russia

CIS

0% 20% 40% 60% 80%

25.4 %

28.0 %

31.4 %

42.4 %

44.1 %

50.8 %

72.0 %

79.7 %

0% 20% 40% 60%

Flexibility/adaptability

Strategic orientation

Customer orientation

Multicultural experience

Communication skills

Strongh commercial/marketing background

Networking

Ability to work skillfully with teams

Results orientationCreativity

management abilityOther Responses

What competencies are required for a successful Exports Management team?

7.7 %

45.8 %

45.8 %

39.8 %

33.9 %

31.4 %

23.7 %

19.5 %

19.5 %

18.6 %

56.8 %

3ExecutiveNewswire 06/12

Your decision to leave the corporate world: I joined IDV Greece in 1994 initially in the finance department and then moved into the marketing department as a Brand Manager.

In 1997 I moved in PILLSBURY (DIAGEO subsidiary) as Market Manager for Haagen Dazs business in Greece, Middle East & North Africa. My key responsibilities were to develop the Haagen Dazs brand either by setting up from zero or restructuring already existing organizations.

In 2000, I made a shift in my professional career by joining the leading strategic communications and public relations agency in Greece, BELUGA & ASSOCIATES, as a General Manager. At BELUGA & ASSOCIATES I had the chance to work with some of the major FMCGs and service companies of Greece as well as to be the leading communication partner on the Volunteers Communication program of ATHENS 2004.

I have always had an entrepreneurial attitude as a professional but I made the decision to start my own business in 2004 setting up, with my brother Alfred, CONCEPTS an imports / exports company in the alcoholic beverages business.

Leaving the “safety” and the structure of the corporate world was not an easy decision.

History of the brand: We were always looking to build our own brand in the world of spirits to drive our exports business.

Mastiha liqueur was an unexploited territory, a rather forgotten category, mainly represented by some artisanal brands with poor presentation and non existent exports track record.

On the other hand Mastiha is indigenous to Greece and there is no other place in the world that this unique aromatic raisin could be found.

Skinos was launched in 2005 in Greece and soon enough became one of the fastest growing brands in the spirits business in the market.

Exports started in 2006, initially in Europe and then in US, Canada and Australia.

What does the brand stand for:

The ultimate definition of Skinos is truly a Mediterranean spirit. A contemporary premium brand based on a unique ingredient –with great history- that flourishes on a small island of the east Mediterranean.

Sales Channels:

Skinos has a wide distribution both in the retail as well as in the HoReCa market.

Achievements of the brand so far in Greece:Skinos is exported in more than 15 markets with great success. Major markets for the brand are US, Canada, Australia, Cyprus, Lebanon, Switzerland and Germany. What is amazing with the brand is that we managed, in a very short period of time, to take the brand beyond the Greek communities and penetrate the local audiences on each of the above markets.

Skinos is the only Greek liqueur that got the Gold Medal at San Francisco World Spirits

competition and currently is the number one Greek liqueur brand in exports.

Do you market the brand differently in Greece than abroad?

Exports marketing requires a level of adaptability to the needs and specifications of any given market. Within this perspective we always try to adapt our strategy to the local needs and to the profile of the market.

Barriers to exports: The country’s of provenance brand equity, in this case of Greece, is reflected on the product brand equity that is exported.

The truth is that the perception of Greece as an exporting country is characterized by a good range of authentic quality products.

Red tape procedures is always an issue then again with good preparation this can be easily resolved. Another significant barrier is weak support of exports from the state.

The perception of a Greek entrepreneur abroad: I do not think that the Greek entrepreneur is stereotyped abroad. I believe that Greek entrepreneurs are generally flexible and resourceful and if I had to point out a major weakness then this would be the capacity to focus on our targets and build a plan to achieve them.

Future challenges:We have just launched the first Mediterranean value added sparkling water with Mastiha, a product that we believe will have a tremendous potential in the foreign markets as well as in Greece.

Opportunities for Greek exports in general:I believe deeply on the potential of the Greek products as long as we, the exporters, understand the need to implement long term brand building strategies and the government employs contemporary techniques to support the exports.

Are your optimistic about the future of our country?The major pillar in entrepreneurship is optimism, the faith that tomorrow things will be better than today. From that point of view, I am passionately optimistic.

Chat with Nancy Mathioudaki, Partner

Demetre Steinhauer, Managing Director

By Andriana Theodorakopoulou, Consultant

A Success Story in Beauty.An article by Dimitris Vidakis, CEO

The beginningThe Korres story begins at the oldest homeopathic pharmacy of Athens. George Korres joined the pharmacy team in 1989 while still studying Pharmacology and though skeptical at first about homeopathy, he was soon overwhelmed by the power of natural ingredients. Driven by his own passion and deep understanding of herbs, George envisaged the development of a natural skincare line, which was realized soon after, led by the pharmacy heritage, his knowledge and understanding of over 3,000 herbal remedies and his quest for a more natural approach. In 1996, Korres was born. The brand’s simple philosophy was rooted in four core principles that remain the same as in its early pharmacy days: natural and/or organic ingredients; skin and environmentally-friendly products; clinically-tested efficacy; affordable and of interesting aesthetics. These core principles remain the same since the initial pharmacy days; and due to their universal appeal, they helped establish Korres as a global brand, despite not having an international customer in mind when it first started.

TodayKorres grew into a respected brand by focusing its research and development efforts on addressing skincare needs with natural ingredients without compromising the benefits associated with conventional skincare, and developing natural products to help solve conditions that traditionally require heavy chemicals. Within its 15 year history, the Greek skincare brands count three worldwide innovations including

the first cosmetic worldwide based on the Nobel-awarded discovery of the Proteasome - a result of primary research on ‘Proteasome & Ageing’; the first natural cream to achieve higher scores on all comparative crash-tests with the market’s top-selling anti-ageing creams.

The Korres portfolio now includes over 400 natural and certified organic products, with brand presence in 30 countries. In addition to stand-alone Korres stores – 25 stores in cities such as Athens, Paris, Madrid and Singapore – products are also in exclusive department stores in Tokyo, Los Angeles, Milan, Berlin, Sydney, Hong Kong and in over 6,500 pharmacies in its homeland, Greece. From one single pharmacy, one product and a team of two, Korres has grown to an over €40 million business (the company ended 2011 with approximately €42.6 million sales).

Korres is currently developing its diversified expansion abroad, moving from the initial ‘global awareness’ phase to a deeper mature-market penetration strategy. The brand’s natural retail environment due to its roots, herb heritage and research focus, is the pharmacy distribution network for markets where natural cosmetics are predominantly in pharmacies. Due to the brand’s equity – natural and clinically efficacious, ethical, pleasing to use, affordable and of interesting design – Korres sits equally well in high-end, luxury department stores as well as specialised cosmetics retailers and independent beauty/perfumery shops. In department stores, products are usually in the natural cosmetics section or in the para-pharmacy area where available. In some cases, the brand has managed to secure shop-in-shop areas within the cosmetics hall.

The futureResearch will remain fundamental to the company’s growth in terms of product development; identifying natural ways

to activate specific biological paths that enable cells to prolong their healthy life-cycle. Korres realizes science and technology today have made possible the use of several raw materials in a way that allows us to develop clinically effective, natural and sustainable formulations that are as good as conventional solutions yet more skin and environment compatible, without compromising on performance. To that end, the company has just strengthened its anti-ageing and hair care portfolio [2012 launches] consistent with its continuous effort to introduce natural problem-solving products addressing key concerns. In terms of its global presence, Korres is set to continue growing, through targeted initiatives focusing on its top international markets, aiming to further strengthen the brand’s presence in both mature markets [US, UK, Germany, Spain] and those that present great potential [Russia, Scandinavian countries].

CrisisDespite the adverse financial environ-ment, 2011 closed with sales and market share growth [Pharmacy Network] in Greece for the KORRES Group - The Group achieved a 6% sales increase in Greece alone [Pharmacy network], enhancing its market share by 50 bps, reaching 10% in 2011 vs. 9.5% in 2010. Outside Greece, the Group has further strengthened its international presence with its export sales increasing by 15% [in fact the sales growth for priority markets such as Germany, Spain and Russia was 18%]. The crisis is partly an opportunity mainly due to an exceptional shift in con-sumer buying behavior; not only because of the bias towards Greek brands but more so because of the need for affordable and efficacious skincare; the number of con-sumers going to the pharmacy in search of affordable dermocosmetics - instead of expensive, luxurious creams found in the selective market – is constantly growing.

5ExecutiveNewswire 06/12

Overview of Greek exports and of Greek companies’ extroversionAlthough Greece produces a wide variety of top quality food products thanks to the excellent climate that makes the earth fertile, most Greek food companies until recently were either trying to make some short term profit by selling their products mainly bulk or were focused in the domestic market which before the crisis used to be a very lucrative market. Nowadays, a substantial number of good Greek companies producing excellent products realized that they cannot rely any more exclusively or predominantly to the Greek market for survival. At the same time they realized that exporting is not easy, nor can you develop distribution networks and sales internationally in a fortnight by a change in your priorities. The realities of the crisis will change mentalities, and will eventually create a dynamic group of Greek companies with strong export orientation and strategies geared for the international markets.

Company presentation and corporate actions abroadGaea was founded in 1995 upon the realization that Greek agricultural food products, despite their inherent high quality and good taste, were absent from the international markets. Our company’s vision and mission is to offer high quality, authentic Greek products with the aim to make the brand name “Gaea” the leading Greek brand internationally synonymous to quality, traditional, authentic and innovative Greek specialty food products, promoting “meze” – the culture of sharing as the authentic Greek Mediterranean culinary experience. Gaea sells its products in most developed markets of the world and exports account for 82% of our company’s annual turnover. The other 18% of its turnover is achieved in the domestic market, where Gaea is the number one brand in the organic olive oil and organic olives category. Gaea manufactures all its products in its state of the art factory using the highest quality natural and organic ingredients available. All of our products are 100% natural and free from additives or preservatives supporting consumer wellness through a healthy tasty and balanced diet. Gaea has strong presence in most international markets

yet our focus is in N. Europe and the US. Our major markets are: Germany, UK, USA, Russia and Scandinavia. According to Nielsen statistics Gaea is: number 3 brand overall and leading Greek brand in the olive oil category in Germany, number 3 brand and leading Greek brand in the olives category in the UK, number 1 brand in the olives category in Norway and number 2 brand in the olive oil category in Norway , number 1 brand in the organic olive oil and organic olives category in Greece, number 3 brand in the olive oil category in Russia, while it is the fastest growing brand in the olive category in the US.

Future challenges / opportunities for developmentGaea is now expanding in Austria, Slovenia, Poland, Cyprus, China, Italy. Our goal is to gain wider market share in all other countries in which we do have presence as well as to enter new markets such as the Balkan countries and the Arabic peninsula. In addition, our company is now moving forward in expanding our range, entering into new, exciting product categories in cooperation with Greek companies and producers of high quality products under our new concept “cooperation – synergasia” and dual branding, with one goal – to create a basket of authentic – quality Greek products and to promote the best of Greece in the entire world.

Challenges for the exports’ executives The biggest challenge that an executive from Greece faces today in the international markets, is the poor image of Greece and the low morale of Greeks, as a result of the economic crisis and the bad publicity on our country.

The other major challenge relates to the short-termism of the strategies adopted by Greek companies that have been spoiled in the past by the easy profits made in the Greek market. On the contrary, export markets require long term strategy, consistency, reli-ability and focus on the values and goals of the company.

Current situation - impact of the crisis on the specific sectorGaea is seeing the crisis as an opportunity to expand and assist other Greek businesses

who are struggling to survive the collapse of the domestic market. Given Gaea’s interna-tional distribution network, consisting of the absolute market leaders in the distribution of specialty food products in their respective market, the company is working with other Greek businesses that supply the very best authentic food products in developing joint ventures with them with a long term view of taking these products to the international market. At the same time Gaea keeps ex-panding the sales of its core product range, growing our sales in all international markets despite Greece’s poor image internationally because of the crisis.

Ways to overcome the crisisThe deep economic crisis is the result of bad practices, consumerism and state bureaucracy and control of economic activity, plus a society that lost values and vision. The reforms are an absolute necessity as well as the transformation of our society and the inspiration that a new vision and values will bring. If the reforms take place I believe that then Greece will positively surprise the world with strong and healthy growth.

Out to lunch with Harris Pezoulas, President

Aris Kefalogiannis, CEO

Aris Kefalogiannis, CEO

Every cloud has a silver lining; crisis has urged the Greek entrepreneurs to «reinvent» their market position and, by boosting their national identity, to make their entrance in the

foreign markets that are still fans of the Greek culture and nature. Consequently, during the last years, Greek exports not only have they flourished but they have also made a small miracle in 2011 when the export increase reached 37% while the value of Greek exports over the same period was estimated at 22.4 billion Euros. This is a historic record, since Greek exports have never before surpassed 20 billion Euros. In the forthcoming years, we expect this upward trend to be repeated with double-digit growth rates in Greek exports.

KALLIMANIS Group of Companies is a Greek corporation with an unrivalled reputation as a national leader in the Greek frozen fish and seafood market for more than half a century.

Today, the Group has 200 employees, headquarters and two factories located in the city of Aegeon in Peloponnese, branches in Athens and Salonika and annual turnover of 60m euro. Over the last few years, the Group has realised successful exports in both the retail and HO.RE.CA channels that are expected to represent 15% of the annual turnover by 2012. The Group has already achieved a strong and holistic presence in Balkans and SE Europe, Germany, Italy, and Spain and prepares its entrance to new emerging markets. Regarding exports, KALLIMANIS Group is investing in long term cooperation with reliable onsite agents as well as in the branded demand of its export products. Its export plans include the launching of new products in the existing markets, enhancement of the export activities and expansion in new markets.

Greece has not yet fully exploited the export opportunities arising from the single market and SE Europe -an area of strategic importance to Greece and a main destination for its

exports that has embarked on a dynamic growth path, despite short-term difficulties. Moreover, Greece has globally a strong national identity, which, if stressed out by the marketing of their export brands, can become a significantly competitive asset. In specific, regarding the food sector there are significant yet unexploited opportunities to promote the Mediterranean diet in destinations such as Russia, USA and Canada.

Greek Export Managers have the unique opportunity to cross the country’s borders and work in an international environment; however at the same time they are challenged

to enhance the level of their professionalism and become more sophisticated for they are automatically considered as spokespersons of the Greek spirit and consequently any lack of professionalism from their side will inevitably affect our country’s image in the global markets.

Financing difficulties and overall lack of liquidity due to economic recession is a significant challenge for the exports. Furthermore, the export enterprises face additional

disincentives that prevent their smooth financial operation, the severe bureaucracy being one of them. Currently, the main problem that directly affects the liquidity of the exporting firms is the complex procedures for VAT exemption and the delays of the repayment of the VAT return. Moreover, the delay and inflexibility of customs procedures is an equally important factor for the decrease of competitiveness of the Greek products in the international markets, and, due to this, Greek products become more expensive and business more unreliable because of the length and the low reliability of the procedures.

The current Greek export model is irrelevant to modern requirements. Today, Greece is being asked to develop a new strategy for its export policy; a strategy which will be aligned

with the new developmental model that is applied in the economy for the confrontation of the recession. The ultimate goal is to support the Greek companies, and within this frame Greece must develop new policy which should be primarily focused on removing administrative barriers to exports by simplifying legal requirements for export-related activities as well as by financing their extroversion. However, taking into consideration the unforeseeable financial environment in Greece, Greek entrepreneurs should be ready to lead their own way abroad based mainly on their own forces.

Overview of Greek exports and of Greek companies’ extroversion

Company presentation and corporate actions abroad

Future challenges / opportunities for development

Challenges for the exports’ executives

Current situation - impact of the crisis on the specific sector

Ways to overcome the crisis

Discussion with Andriana Theodorakopoulou, Consultant

Konstantina Kallimani, Executive Director

7ExecutiveNewswire 06/12

into the Greek Development Agenda the Topic of Extroversion, as the only and the fundamental choice for the rebound and sustainable development.

There was a broad consensus, in a political, social and entrepreneurial basis, for the importance of the support of export enterprises, in terms of transferring know-how, of boosting cash flows and dealing with red tape barriers.

As a result of this consensus and the entrepreneurial reflexes for survival, more that 2.000 Greek companies tried for the first time to export their products abroad in 2010 and 2011. These companies either were focused in the domestic markets or are new, start-ups with international market orientation.

Now we are estimating about 12.000 companies trying to compete in the global market each year.

What are the opportunities that Greece might demonstrate (medium term and long term)?

ChS: Greece has some great advantages: its position between West and East, its role in the Med Basin, the climate and the people. These are all factors of successful inter-national trade. Greece can trade with the world its renowned foodstuff and traditional products, such as olive oil, feta cheese, fish, fruits & vegetables. Its soil is rich in raw materials, such as aluminium. And it has also proven that it is competitive in fields of high tech, innovation and know-how. Renewable energy resources, pharmaceuticals, software applications and constructions expertise are some good examples of big Greek achieve-ments worldwide.

We should never forget that 62% of Greek products are exported in developed coun-tries in the EU, almost 70% in the OECD member states. These are markets that select their imports in a firm cost-value analogy.

What about the challenges?

ChS: A survey of the Panhellenic Exporters Association between Greek Exporters pointed out 3 main challenges for export enterprises: 1. Red tape barriers 2. Cash flows 3. Transfer of Know-How.

The red tape cost is estimated to 15% of the Greek products value, making them more expensive and less competitive in the global

market. The elimination of these trade barriers should be a top priority of every Greek government. Hopefully soon we will see some results.

Cash flow, on the other hand is the main issue. Heavy taxation, delayed VAT refunds, coupled by the problems of Greek private banking system consists a kind of a time bomb threatening the exports growth. The NSRF (National Strategic Reference Framework) 2007–2013, or ESPA can provide useful tools in that direction. Programs like “Extroversion & Competitiveness” and “Extroversion ECIO” are some good examples of funding export activities. The European Investment Bank Programs will also be a great relief for export enterprises for the months to come.

Last but not least, effective ways to transfer know-how especially to SMEs will also be an indirect boost of extroversion with long-term benefits for the Greek Economy. In this context, the PEA will put in to effect a big nationwide program of vocational training by the second semester of 2012.

Are you optimistic about our future in Greece given this unprecedented crisis?

ChS: The French philosopher Emil Chartier used to say that “optimism is a matter of will”. We, the people of trade, are optimists by nature and by trade. Furthermore the data of the Greek exports show a dynamic that cannot be overlooked. Products of technol-ogy, know-how and expertise are steadily gaining shares in the world trade since 1988. Greek foodstuff is strongly identified as part of the Med diet. Greek exporters have come a long way in terms of branding, packaging and promoting their products.

Of course there is a lot more to be done. Some should have been done years ago. But as the Chinese say “the best time to plant a tree was 20 years ago. The second best is now”.

The only thing I would like to emphasize is that today exports are not a risk, they are a wise entrepreneurial option and choice. They are the answer to the crisis and the means to recovery. In the time of information and IT, we possess the necessary tools to find the right partners, to secure our payments and to fund our export businesses.

We at the Panhellenic Exporters Association will stand side by side to each and everyone that wants to expand abroad, regardless of company size, sector and experience.

What are the needed requirements to become an exporting company (certifications, member-ships etc)?

Christina Sakellaridis: Today, it has been estimated that the export formalities involve 5 different ministries, 28 departments and organizations, and require almost 30 different certificates, permits and approvals. This results according to a research by the Pan-Hellenic Exporters Association, to an extra charge on the cost of production of exportable Greek products of the levels of 15% of their value.

According to the World Bank, in 2009 the export of a cargo of Greek products required 20 days and its cost was $ 1,153. The OECD member states’ averages are accordingly 10 days and $ 1,032.

The consequence of these distortions is impaired competitiveness of Greek products over competing countries, but also overall deterioration of terms of trade, since the corresponding distortions involve the import of raw materials, the refinement and the re-exportation of products.

The Panhellenic Exporters Association has already submitted proposals both to the Ministry of Development and the Task Force for Greece, in order to facilitate external trade and exports.

Gladly, some of these proposals will be implemented both to e-custom procedures of ISISnet, starting from April 2nd 2012 and the Single Window for Exports by 2013.

By then, for an enterprise to export, the first step will be to enlist in the Chamber Commerce, to the Exporters Annex. In the Panhellenic Exporters Association everyone that is interested to be an exporter should address to our 24/7 Helpdesk, through our website www.pse.gr .

What are the top 10 exporting sectors? Have there been any significant changes / shifts within the last couple of years?

ChS: Last year was also a period of changes in the ranking of export goods. Number

one in exports are always the petroleum goods, but the big protagonist of 2011, was the aluminium, rising to the second place, surpassing pharmaceuticals. Fish and rods of steel-iron complete the TOP 5 and the rest 5 places belong mostly to the agricultural sector and food. With the exemption of pipes, we find in the TOP 10 ranking products like vegetables, apricots & cherries, cheese, cotton, olive oil and furs.

Generally speaking we could point out as main exporting sectors, with the exemption of fuels, foods & drinks, pharmaceuticals and construc-tion materials.

What are the top 10 countries where Greece is highly accepted for its exporting products?

ChS: In 2011 there have been significant changes in the TOP 10 export markets for Greek products. Italy has become the No 1 destination, overtaking Germany for the second time after 1945 (the first was in 2008) and Turkey, gaining 3 positions, has risen to the third place, above Cyprus. In the 5th place we find the SUPPLY of SHIPS, that in international trade terms consists of a totally differentiated market itself, pointing out the significance of the geographical position of Greece and its advantages in maritime.

Bulgaria comes 6th, followed by the US, while UK has dropped 3 places to 8th. The TOP 10 finds also France (9th place) and Romania (10th), both losing one place since 2010.

What are the current trends within these turbu-lent times?

ChS: Since 2009 when Greece experienced a steep decline of its exports, losing in 12 months time, all the gains from a 5year rise between 2004 and 2008, there has been a shift towards a new kind of openness of the economy, a new kind of what we call extroversion.

The crisis of the Greek economy has resulted to a significant drop of domestic demand and consumption. Greek enterprises of all sizes faced the same dilemma: where and how do we channel our products. It was the time when the Panhellenic Exporters Association put

Christina G. Sakellaridisout to lunch with Nancy Mathioudaki, Partner

Profile of PSEThe Panhellenic Exporters Association (PEA) was established in 1945 and represents the entire body of Greek Exporters. It is the main export organisation in Greece, and its members are enterprises, cooperatives and organisations engaged in exports of various export sectors from all geographical regions of Greece

Members of PΕΑ produce, manufacture and export a large variety of industrial and agricultural products to practically every country in the world.

Contact with interested parties abroadPΕΑ’s scope is to promote the interests of exporting enterprises, to bolster export activity and to assist all interested parties abroad in familiarising themselves with Greek export production and in finding the products they are looking for and the people or companies who sell them.

PEA is in a position to inform foreign importers about export opportunities for all products exported by Greece and to provide its services in arranging meetings between interested enterprises and Greek exporters. For that reason it has launched: Τhe Greek product Importer File Service.

PEA issues:• Newsletters for the progress and prospects of the Greek

exports• Alerts, Key Notes and Circulars on export issues• Researches, Studies, Case Studies for goods and services,

key markets

Furthermore, PEA undertakes activities such as:• Networking and clustering businesses and promoting

cooperation• Special events for the promotion of the Greek exporters• Seminars, conferences and galas• Meetings, consultations and round tables of exporting

companies region, by exporting market and by product/service

• Vocational training activities• Promotion of goods and services• Joint participation in Exhibitions, Conferences and

Seminars• Access and support to UN and EU procurements

Christina G. Sakellaridis Born in Athens (Plaka)

Studied Law at the Athens University and at the FACULTE DE DROIΤ of Paris

She speaks French and English fluently

She is married with George Sakellaridis-businessman

FINANCIAL SECTOR ACHIEVEMENTS

Chairperson of Board of MARGIN GLOBAL ASSET MANAGEMENT MFMC [2011-present]

President and CEO of INTERINVEST (One of first Investment Companies in the Athens Stock Exchange) [1991- 2010]

Former Member of General Board of the Bank of Greece [1994-2004]

Co-Founder and Vice President of FACT HELLAS SA (1st Factoring Enterprise in Greece) [1995-1997]

Co-Founder and CEO of ELLINIKES EUROPAIKES EPENDYSEIS (Investments and Tourism) [1989-1992]

INTERNATIONAL TRADE ACHIEVEMENTS

President of Ch.G.S, Strategic Export Management & Business Development Consultants [1966- to date]

Co-Founder and Vice President of INTRADE (Trading Company) [1997-1999]

Exclusive representative of MARKS & SPENCER and JAEGER OF LONDON for Greece [1977-1986]

INSTITUTIONAL ACHIEVEMENTS

President of the Panhellenic Exporters Association (1992-to date)

President of the Export Credit Insurance Organization-ECIO (1994- to date)

Former President, Now Vice President of the Hellenic Foreign Trade Board-HEPO (2010- to date)

Member of the EURO 50 Group

Member of the Greek National Exports Council

Former Vice President (1987-1994) and Now Member of the Athens Chamber of Commerce and Industry (1994- to date)

Former Vice President of the International Chamber of Commerce- ICC (1983-1994)

Former Member of Board of the Greek-Arab Chamber of Commerce and Development (1994-2004)

DISTINCTIONS:

“Les insignes de Chevalier de l΄Ordre national du Merite”, by Decree of the President of the Republic of France, Nicolas Sarkozy (2009)

“The International Chamber of Commerce Award”, for her services as Vice President of the ICC, 1983-2004

“The Europe 2003 Award”, established by the President of the Republic of France, Jacques Chirac and the European Counsil (2003)

“Self Made Entrepreneur Award for 2002”, of the Athens Chamber of Commerce and Industry

“Woman of Europe Award”, by the Greek Committee (1994)

“Le Diplome d’ Honneur de l’ Ordre Europeen”, (Brussels 1998)

West Attica Rotary Club (1995)

Athens – North Rotary Club (1993)

Panhellenic Exporters Association

9ExecutiveNewswire 06/12

challenge with an “external” and an “internal” side to it. In terms of how a Greek corporation needs to deal with the crisis, the challenge is to identify the opportunities, adapt and aim for further growth. In terms of how others view a Greek corporation within this crisis, the challenge is to reverse the negative climate. And this is something that we aim to accomplish and prove with our hard work and positive results and we aspire to accomplish with the “Crazy for Greece” campaign. The global appeal of the campaign enhances Folli Follie’s efforts to promote positive connotations about Greece, especially during a period when it is more necessary than ever.

The international “Crazy for Greece” campaign, both print and digital, will be featured in newspapers and in the biggest fashion titles worldwide, will run online, will be hosted on TV shows, and will be featured on billboards in Europe, Asia and North America. Creative media in the most esteemed publications globally such as the South China Morning Post that bears impressive readership, sensational outdoor presence and groundbreaking digital campaign set the ground for the launch of a project that brings forward the very spirit of the Folli Follie brand, linking strongly with its brand heritage.

Moreover, through the Folli Follie stores the campaign will be featured in 480 points of sale in some of the most hi-fashion streets in 24 countries.

The “Crazy for Greece” campaign was also presented in Baselworld, the world watch and jewellery show, in Basel, Switzerland, from 8th to 15th of March, in the context of Folli Follie Group’s participation to the show. The visitors of the show welcomed the new campaign with enthusiasm, making very positive remarks.

The campaign has received very positive comments in China, Spain, Hong Kong, Taiwan and Korea where the respective press presentations have already taken place.

We are positive that the whole world and the Folli Follie fans will embrace the new campaign, when it is officially launched, allowing it to transfer them at that iconic Greek summer.

In Folli Follie we have always promoted the extroversion of Greek corporations, acknowledging their dynamics and appealing to the “Ulysses spirit” that is imprinted in the DNA of every Greek. Greeks, if any, know how to set a goal and stay loyal to it, overcome any difficulties that may come across the way, learn from their mistakes, turn obstacles into opportunities, ultimately succeed and do so “enjoying” every bit of the “journey”. Greece is already a global power in industries, such as shipping, and we should not underestimate the possibility of seeing Greece as an emerging power in sectors, such as fashion, where Greek corporations and individual designers demonstrate impressive initiatives with global appeal.

Group has grown over the last 30 years from an innovative, ground-breaking jewellery brand into a

global power in the fashion scene. The Folli Follie Group, apart from the brand Folli Follie, comprises of Links of London, the successful and awarded British Jeweler and Official Jeweler of the London 2012 Olympic Games, a strong wholesale/ retail sector, the travel retail sector and a fairly new Cosmetics and Perfume sector. Operating in 28 countries worldwide, with ap-proximately 700 points of sale and more than 6,000 employ-ees, Folli Follie Group products reach millions of consumers.

It is worth mentioning that the Folli Follie brand has a very strong presence in 24 countries globally and an established presence in the travel retail sector and in-flight retail. With more than 50 points of sale in the travel retail sector, its impressive progress has been acknowledged by the DFNI magazine in the 2010 product awards, when the brand was awarded with “Best Watches Campaign at Asian Airlines” and “Best New Jewellery Store at Hong Kong International Airport”. It is important to mention the in-flight presence of Folli Follie that started with Eva Airlines and British Airways has evolved in a collaboration with more than 40 airlines reaching more than 1,000,000 passengers on a daily basis.

The Folli Follie Group long term strategic objectives are of course for the two brands of the Group, namely Folli Follie and Links of London, to become world brands, to strengthen the product portfolio of the Group’s retail/wholesale business and to gain market share especially on the back of the recession in Greece and the opportunities that come from this environment. For the travel retail sector we view the expansion of selling space for all channels, but also expanding opportunities like e.g. marinas. And of course, our immediate goal is to further

invest and establish our presence in the strategically important markets of Greater China, North America and the UK.

The economic crisis that has affected the global scenery and Greece in particular, should be viewed as an opportunity rather than a setback, despite the fact that it has a very powerful impact especially in the fashion industry. Folli Follie as a brand has always had an excellent brand positioning that has helped it come through the crisis even stronger. The fact that Folli Follie is marketed as an affordable brand that at the same time comes in a luxurious “package” that the Folli Follie shopping experience and feel-good factor offers, is one of the many reasons why Folli Follie has so far come intact from this strenuous global financial condition.

In the context of the recent global financial developments we have also been asked to answer a big twofold challenge; a

Interview to Nancy Mathioudaki, Partner

George Koutsolioutsos,

CEO Folli Follie Group

A global success story

Flagship store in the New York’s SoHo neighbourhood

Folli Follie Shanghai Flagship Store

11ExecutiveNewswire 06/12

What’s your opinion about Greek exports and Greek companies’ extroversion?

Pavlos Katsivelis: Greek export performance cannot be characterized as impressive when only a small number of the Greek companies report sales from export activity. This picture reflects the limited competitiveness of Greek products, and their inadequate differentiation and penetration into foreign markets. Furthermore, we should not undermine the psychological factors – absence of confidence - that holds back most Greek companies.

Being a small economy located at the periphery of the EU, we have benefited greatly from the opening up of South-Eastern European economies in the early ‘90s and the related increase in trade links with this region. The redirection of Greek exports towards these markets was reinforced by the high growth of these economies, the “first mover” advantage, and the “privileged” position due to its geographical proximity.

Could you share with us some information about Chipita’s international activity?

PK: Chipita has laid the foundations for creating an innovative company with a strong interna-tional footprint. We consider ourselves as a «born global» firm since during the last 20 years we have managed to grow rapidly mainly through global expansion. Today we have manufactur-ing operations in ten countries with facilities in the United States, Europe, and Middle East and sales throughout the world with Greece currently representing less than 15% of Group’s sales.

For Chipita it was critical to grow big enough and strong enough in its home market—in Greece be-fore expanding abroad. Building a strong domes-tic base before venturing into overseas markets provided us with the level of strategic thinking needed to manage an international organization as well as managers with the necessary breadth and depth of experience.

Our international expansion over the recent years has been fueled by joint ventures with local companies. Choosing partners that can make tan-gible business contributions, aligning strategic priorities, safeguarding intellectual property and ensuring operational control are critical for joint ventures success.

What’s the key lesson you’ve learned about how a company builds a global competitive advantage?

PK: Everybody is talking about going global, but hardly anyone understands what that means. I strongly believe that the only way to gain lasting competitive advantage is to leverage your capabilities around the world so that the company as a whole is greater than the sum of its parts. Being an international company—selling globally, having global brands or operations in different countries—isn’t enough.

In fact, most international manufacturers aren’t truly global. They may have acquired or established businesses all over the world, but their regional or national divisions still operate as autonomous entities.

To us, competitive advantage means having the best technologies and processes for designing, manufacturing, selling, and servicing your products at the lowest possible costs. Our objective at Chipita is to integrate our geographical businesses wherever possible, so that our most advanced expertise in any given area—whether it’s bakery technology, financial reporting systems, or distribution strategy—isn’t confined to one location or one division. We want to be able to take the best capabilities we have and leverage them in all of our operations worldwide.

What is Chipita’s future plan regarding interna-tional expansion?

PK: In Chipita our strategic choices are based on the following principles: Growth in existing markets and expansion into new markets on a global scale; rapid and widespread geographic distribution; emphasis on close, long-term business collaboration; and constant reappraisal and improvement of distribution methods in tune to changes in the market.

Talking about international expansion, company’s growth strategy is based on brand development, innovation and emerging markets penetration. Our success is very much based on inventing, consumers’ ‘lovemarks’, such as 7DAYS, that become the source of competitive advantage.

This year we started commercial activity in Nigeria, one of the fastest growing economies in the world, a market with an extraordinary demographic profile that is ideal for our products. In parallel, we are working hard to be able to enter Turkish market – the 5th BRIC - within 2013.

What are the challenges companies are facing in the area of Human Resources when talking about going global?

PK: The development of new businesses requires companies to transfer their skills, and expatriates continue to be the most effective means to that end. Especially in emerging markets, where establishing relationships, adapting to local cultures, and transferring skills and technologies all take a lot longer than they do in developed ones, the need for expatriates is particularly pressing, even when a joint venture is the chosen entry vehicle.

So, one of the main difficulties for us has been and remains human resources. It’s been quite difficult orienting our people to work internation-ally. We need our best people abroad, people who are good with people and who can translate into the local market Chipita values.

Based on our expansion model, we rely on relatively few expatriate employees. What we try to do is have an operating platform that provides the systems and key processes to run the business. Through this way we get direction in terms of how we go about doing things and how we manage people.

How did current economic crisis affect export-ing activity and what could companies do to overcome it?

PK: As I have already mentioned, until the begin-ning of the crisis, Greece was a relatively closed economy. However, the economic crisis has led to an internal market shrinkage and consumption reduction. This spells bankruptcy for the majority of Greek firms if they do not go international.

Consequently, over the last two years, the export activity was remarkable despite dire economic conditions reflecting the growing tendency of domestic enterprises to look beyond the country’s borders in an effort to offset the drop in demand in Greece.

A major barrier to international expansion as a result of economic crisis, is the lack of liquidity. Even the healthiest companies have seen the bank credit lines either closed or at predatory rates. An-other major challenge is the Greek image. Greek exporters are making huge efforts, to convince potential foreign buyers not only of the quality of their products, but also for their credibility.

More importantly, Greek companies’ immediate challenge is to break out of the mind-set that we couldn’t compete successfully on the global stage. Once freed of that burden, we have to find and implement strategies in which being a late mover is a source of competitive advantage rather than a disadvantage.

Pavlos KatsivelisRegional Managing Director South & East Europe – Nigeria, Turkey and Joint Ventures

Interview to Nancy Mathioudaki, Partner

Greece historically has been a country were trade and exports played a vital role to the development of the society and the Greek civilization in general.

Unfortunately, over the last decades, we forgot our heritage and instead, we became more introvert due to several factors that had to do with the political and social evolution of the Greek society and state. So very often, business and industrial profitable activities were “demonized” and in many occasions had been even sabotaged for the benefit of state-run companies. We never had in place a coherent national exporting strategy, a plan of methods or incentives, or any support of any kind to that direction. As a result many Greek businesses developed a “Home-sweet-home mentality” preferring the comfort and safety of the local market, instead of taking the risk of international expansion. With this lack of exporting culture, even the businesses that wanted to have an international expansion lacked both the recourses and the track record to attract professionals with international business knowledge and mentality. Furthermore, Greek businesses, operating solely in the local market, were more often unable or unwilling to commit valuable financial resources to research and innovation, which could give them the necessary advantage in the international markets.

For us in Pharmathen those were the elements in mentality but also operationally, that we needed to overcome in order to pursue a course of international expansion. In the mid 1990s it became apparent to us that due to the size of the local market and due to the framework of the Greek pharmaceutical market, the international expansion was the only vi-able way for sustainable growth. The three most important factors that have contributed to the overall success of Pharmathen, are in the core of our philosophy for global expansion, the philosophy of the three I’s: Innovation – Integration – International expansion.

Coming from Greece, an EU country, we knew that we would not be able to compete in the international market in terms of price. The solution was to try to provide the international market with added-value products, which possessed some kind of differentiation and could be competitive. We invested heavily therefore in our R&D activities and simultaneously we worked into penetrating important and targeted markets like the EU and North America. R&D therefore was the first and most important step towards international penetration and sustainable growth. The increased international presence of the company, especially over the last decade, has resulted today in that more than 75% of Pharmathen’s sales turnover is generated from its exporting activities in more than 85 countries worldwide. This had a great impact on the organization and its operations, as Pharmathen had to deal with ever increasing manufacturing and logistics needs. Indicatively, Pharmathen exported more than 16 million finished packs (tablets, capsules and injectables) in 2009, while in 2011 the exports surpassed 30 million finished packs. This rapid international expansion also led to the construction of our new state of the art manufacturing plant which was inaugurated in 2010 in Sapes, Northern Greece, and the establishment of three R&D centres in Athens, Thessaloniki and

India, which give us the advantage to be the only vertically integrated company, from the API (Active Pharmaceutical Ingredient) to the finished product, in Greece and one of the few in Europe.

Over the last years the company also had to face and respond to the effects of the global and in particular the Greek economic crisis. Pharmathen nevertheless achieved an increase in both its domestic and international presence, and despite the crisis the company has grown by 22% since 2009 and in 2012 we also anticipate 27% organic growth. The fact that our exposure to the Greek market was well balanced even before the financial crisis, allowed us to take all the necessary strategic actions in order not only to secure, but also to reinforce significantly our position in the local and international markets. New products were added to our pipeline, new strategic alliances with large pharmaceutical firms were pursed, new geographies were added to our international presence and by streamlining further our existing operations we managed to provide immediate results for the company. During 2011 alone, more than 1000 marketing authorizations were acquired, more than 10 new generic products were developed, over 20 new patent applications were submitted and 2 projects regarding innovative products were completed. All the above have resulted in continuous growth in all levels and for 2012 we target revenues at around €175 million, while at the same time we have secured a very strong cash flow position.

Furthermore, through this growth Pharmathen has been able to employ a more diversified and skilled workforce to keep us moving forward innovatively. Over the last 2 years we successfully integrated more than 150 new employees into the structure and philosophy of the company. Specific to our growth strategy, key persons with vital market knowledge and experience have been employed and they are able to feed back this market knowledge in order to maximise our potential in each and every market – on a global scale. This increased global expansion therefore, which was already monitored through our Business Development headquarters in the UK, was also further facilitated with the recent establishment of new offices in key regions. In particular, over the last 3 years, Pharmathen has established regional offices in Jordan in order to penetrate more effectively into MENA region, established permanent representation in South America and recently established regional offices in China (Shanghai) aiming to further expand and reinforce its presence in the very promising APAC and Far East markets.

Overall, the aggressive strategy we adopted in order to deal with the Greek financial crisis has also significantly strengthened our position in relation to our competitors, particularly in Greece, but also in the international markets. The success of our strategy, especially over the last years was repeatedly recognized publicly through several awards and distinctions (True Leaders Greece 2011, Best Workplaces 2012, Diamonds of the Greek Economy 2011, EBA Ruban d’Honneur Import/Export Award 2011 etc), for our performance in the international markets and the creation of an exceptional working environment.

By Nelly Katsou, Vice President & Managing Director

to Virginia Argyratou, Principal Consultant

Exports and Extraversion of the Greek Businesses

13ExecutiveNewswire 06/12

Please describe us a little about your company’s activities, basic fiscal data, and participation of export activity in the overall company operation.

Νikolaos Mariou: SIDENOR Group represents VIOHALCO’s steel production, processing and trading arm and is currently the largest producer of long steel products in Greece and Southeast Europe.

SIDENOR’s dynamic corporate history dates back to 1962 with the establishment of VIOHALCO-SANITAS, which has been the foundation for creating a vertically integrated Group of companies with 20 subsidiaries and associated companies in Greece, 16 abroad and production plants in Greece, Bulgaria, Russia and F.Y.R.O.M.

SIDENOR Group’s activities are fully vertical, aiming for optimal operational efficiency and they are distinguished in the following sectors: Mini-mills, Pipes, Tubes and Hollow Sections, Downstream operations, Sales and Distribution.

The products cover even the most demanding needs of SIDENOR customers in Greece and abroad and stand out for their excellent quality, high reliability and particularly innovative features.

Given the technological advantage on a production level and the extensive sales network within and outside of Greece, SIDENOR group maintains its leading position by investing in state-of-the-art technological equipment and by offering a completely customer-orientated approach to its activities.

The Group’s established production base includes plants in Thessaloniki, Almyros in Magnesia, Kilklis, Thisvi, Pernik in Bulgaria, Nikolic in F.Y.R.O.M. and Polevskoy in Russia. These production plants encompass all stages of production, processing, sales and distribution of an extensive range of steel products giving SIDENOR and its subsidiaries the opportunity to pro-duce high quality products, that cover any relevant need of its customers.

When did you begin expanding abroad and what is your company’s current export status? What are your countries of main focus?

NM: In order to maintain the competitive advantage on the production level and market presence, SIDENOR group remains focused on continuously upgrading and expanding its plants and its distribution network. A proof of this commitment is the implementation of an extensive long-term investment program, which exceeded EUR 730 million between 1998 and 2011.

Today SIDENOR Group is oriented as an export company with 20% of the local Greek market and 80% abroad. We consider Balkans, Europe

and North Africa as our main markets and our sales expand to more than 40 countries worldwide. It is noteworthy that we export not only in the region but also in demanding markets like Germany, UK, Singapore etc.

Also, we are proud to say that Sidenor and its affiliated company AWM of Italy sell innovative patent-protected technology and machinery internationally.

This is clearly exemplified by the development of the new Synthesis™ technology for the industrial prefabrication of reinforcement.

Synthesis™ machines have already been a major success since their introduction in the Greek market 2 and-a-half years ago by SIDENOR, leading the reinforcing industry to a point where currently more than 80% of all constructed stirrups are being made in Synthesis™ machines.

By perfecting the manufacturing process with a fully integrated single production line, mass production of highly fragmented prefabricated reinforcement of any complexity is now achieved at very low cost.

Since the official launching of the Synthesis™ machines, some months ago, sales have already been accomplished to very important and respected customers worldwide – NATSTEEL and BRC of Singapore.

Do you believe that exports have helped you survive and develop in the middle of the global economic and local crisis and in what way?

NM: Sidenor has been expanding abroad since its establishment. Our export oriented policy was further enforced after the crisis (2009) and the significant decrease of the Greek steel market. Our established sales network combined with our top quality product range were our key competitive advantages that supported our significant increase in export sales and helped us recover the decreasing volumes of the local market.

Which are the main obstacles and barriers for your further international expansion? How could the Greek State facilitate your company in achieving your exports activities targets?

NM: Today the main obstacle is the deep economic crisis in Europe which affects the demand for the steel products, not only in the European countries, but also in other areas of the world. As the demand is low, there is overcapacity and overproduction in the area and this leads to intense competition and therefore limits our export sales potential.

We should also have in mind that transportation expenses is a key factor to steel exports, as steel is mainly commodity product at relatively low price vs other more expensive metals.

Within this context, the Greek state although declares with pride that our exports are increasing, not only is not helping this dynamic industrial sector, but on the contrary increases the energy costs, (tax on natural gas, high electricity cost), ports are expensive and inefficient, there is lack of sufficient state credit insurance for exports, currently the banking system lacks liquidity etc.

Moreover business diplomacy and expansion plans to new developing markets should take the lead.

For example, Libya will be in the near future an interesting market in our neighborhood. A lot of industry segments (construction materials, construction companies, food etc.) could benefit from this development. The Greek business diplomacy should be active to promote collaborations. Turkey is a good model for such activities.

However, SIDENOR having invested for years in modern production facilities, sales networks and international business relations is able to compete among the strong Turkish, Italian, Spanish and other competitors in the region.

Νikolaos Mariou,Strategic Business Planning Director and Commercial Director

Nikolaos Mariou interview to Nicholas Vasilikiotis, Partner

Mr. Mariou, is a Chemist, graduate of Athens University and holds a postgraduate degree (M.eng.) in Biochemical Engineering from University

College London, as well as an MBA from Imperial College London. His previous experience was as Area Sales Manager

at VIORYL SA, as Category Marketing Manager at COLGATE PALMOLIVE HELLAS, as Marketing & Exports Manager at P.D. PAPOUTSANIS SA and as Deputy General Manager at APIVITA SA. Mr. Mariou joined Sidenor in 2004 as Commercial Manager and since 2007 is Strategic Business Planning and Commercial Director of the Group.

The Largest Privately-Owned Aluminium Extrusion Group in South-East EuropeAlumil S.A. is the largest privately-owned aluminium extrusion group in South-East Europe (2000 employees), in terms of production, distribution network and range of aluminium profile systems. It is among the top suppliers of branded aluminium systems for architectural use in Europe. With more than 30 years of experience, Alumil is one of the most advanced companies globally in the design and production of aluminium extrusion products (100.000 tons) with state – of – the art production lines in its 20 factories (14 in Greece, 1 in Albania, 1 in Serbia and 1 in Bosnia and Herzegovina, 1 Romania, 1 Egypt, 1 Bulgaria). Alumil produces aluminium systems which are designed and developed in the Group’s Research & Development Department and then tested and certified by internationally accredited certification institutes and laboratories, such as Ift Rosenheim (Germany), A.A.M.A (USA), Instituto Jordano (Italy), etc.

It has an extensive international sales network in 42 countries worldwide and 27 subsidiaries companies in Europe, Africa, Middle East, Russia and the United States of America.

Alumil InternationalAlumil International is Alumil’s business unit which promotes its worldwide advanced architectural aluminium systems. Almost 50 experienced engineers support large construc-tion projects all over the world and we are a member in European Aluminium Association.

Market Overview today – The impact of the economic crisis in Aluminium extrusion companiesThe construction activity in Greece has been experiencing a constant decline as a direct effect of the harsh economic crisis. Inevitably, Aluminium extrusion companies as many other related industries, suffered from negative growth.

The following indicators vividly depict the industry’s negative growth: in 2011 the construction activity in Greece reached the extremely low level of 23.14 million m2 when in 2005 it was 102.24 million m2 and 59.41 million m2 in 1999, without any emerging recovery evidence.

However, Alumil is a global company and its focus is international. In 2011 we had an increase 4% in sales due to focusing in markets such as West Europe, Russia, North Africa, Turkey and Middle East.

Development BarriersThe upturn in the industry is not possible in an economic environment such as that prevailed in the country during the period September 2011 - February 2012, where the actions and policies of the principles that determine the economic development in the country, resulted in an extremely low level of consumer and business confidence. Real estate investment decreased -23% in 2011 and is expected to further decline in 2012 at a rate of -15%.

The significant decline in real estate investment has contributed to a GDP by about 0.95 percentage points in 2011, compared to negative effects by -1 percentage point in 2010, by -1.4 percentage points in 2009 and -2.3 percentage in 2008.

Additionally, banks –compared to the past - treat all new loan applications submitted for real estate investment with an increasing rigor, resulting in an increased rejection rate that further impede the already stagnant market.

Finally, and due to the unstable political situation, Greece’s image is described as “uncertain” affecting thereby any outward-looking attempt of Greek exporting companies, left alone in managing all the consequences of the almost non-reversed situation.

Future challenges / opportunities for growthAlumil Group can be easily characterized as an outward-looking company since nearly 80% of its business activity derives from foreign countries.

Taking into consideration Greece’s market conditions Alumil intensifies its exporting efforts as these remain a strong growth development factor since the early days of the economic crisis. The company’s strategic planning emphasises in strengthening its market shares in Russia and Southeastern Europe, along with continuous development of its commercial network in Western Europe.

A short notice for the Greek Market: ALUMIL is always looking after the Greek market despite its orientation to the international markets.

Mastering leadership since many years, Alumil plays a significant role in the domestic industry attempting to reverse the negative climate and the aggregate demand. The company keeps investing in innovation and in new promising areas such as renewable energy, bioclimatic architectural design and safety. In all these growing parts of the market, Alumil is the leader not only in Greece but in S. E. Europe.

Lately, Alumil has developed a series of specialized aluminium support systems for photovoltaic structures (fields, roof etc). The company already holds a leading position amongst other competitors since all the largest photovoltaic parks were made with Alumil’s Helios support system.

Challenges for executives engaged in international activitiesIn the era of market globalization and internationalization of economic activities, all companies - regardless of size, sector, origin, composition of capital or institutional and administrative structure face problems associated particularly with the organization and optimizing of their international activity. Nevertheless, Alumil as a leading, innovative and intercultural character group with corporate culture characterized by teamwork and collective effort encourages initiative, freedom and participation in decision making, constantly offering new challenges for managers who want to advance professionally and deal with international activities.

Lambros Yannouchos,Commercial Corporate Director

Discussion withVana Mehleri, Consultant

15ExecutiveNewswire 06/12

clusters initiative:Innovation made in GreeceWhat is Corallia? How it was created? By whom? What types of companies are your “partners”? What is the vision for such an initiative?

Vassilios Makios: The Corallia Clusters Initiative -or in short Corallia- is the first organisation established in Greece for the structured and systematic management and development of clusters, with the strategic aim to develop cohesive and productive innovative ecosystems within which actors operate in a coordinated manner, in specific sectors and regions of the country and where a competitive advantage and export orientation exists.

In those clusters, Corallia acts as Cluster Facilitator (cluster initiative/organisation) implementing specific support actions, which involve all innovation ecosystem actors, including industry, academia, research labs, venture capitals, business angels, regional and central governmental stakeholders and creates favourable conditions for growth, exploitation and promotion of innovations developed within clusters at both national and international level.

With a vision to amalgamate the brand name Innovation Made in Greece, Corallia primarily focuses on the development of innovation clusters, which have the potential to compete in international markets and assist the country towards gaining global market share in value added services and products.

From its establishment up to date, Corallia has supported the development of highly-specialised clusters in knowledge-intensive thematic sectors with a strong exports-orientation, possessing examples of success stories, such as the the mi-Cluster (microelectronics), si-Cluster (space technologies & applications) and the gi-Cluster (gaming and creative content).

Founders of Corallia are Prof. Vassilios Makios, Dr. Jorge Sanchez and Dr. Nikolaos Vogiatzis .

How do companies benefit from their participation in this initiative?

VM: Corallia acts as a catalyst creating favourable conditions for clusters to expand and make effec-

tive use of and promote Hellenic innovation at both national and international level. It portrays the mutual vision of all innovation ecosystem actors, undertaking systematic actions to support the: acquisition of third party funding (R&D and non R&D projects, VCs, BAs, Banks), operation of a one- stop-shop (consulting, mentoring, coaching -mainly- for founders), organisation of networking events (networking days, user days, open days, webinars), internationalisation events (trade fairs, exhibitions, roadshows), manage the web pres-ence (social networks, knowledge base, virtual exhibition area), operate incubation areas (office space and amenities, data centres), business areas (meeting rooms and amenities, printing services), exhibition areas (physical and virtual booths) and conferencing facilities, match job needs (career days, career matchmaker platform), implement a PR office (newsletter, news-stream, news-watch, branding) and organise training events (business acceleration programme, patenting, etc).

Do you collaborate with other countries for similar programs and if yes are there any Greek companies participating in those efforts?

VM: Corallia has been working continuously towards raising the level of cluster excellence and management and in transferring its operating model within Europe via its participation in the European Cluster Alliance and its involvement both in the European Cluster Observatory (in its Advisory Board), and the INNO-Net TACTICS project (in its Reflection Group). To achieve transnational and interregional cooperation, Corallia participates in EU Programs: LEAD-ERA, POOLING4CLUSTERS, SEENECO, ClusterPoliSEE targeting the formation of a common policy framework for the collaboration of cluster members in Europe.

Corallia has also initiated collaborations and international business relationships on a bilateral basis with other clusters and cluster initiatives, incubators, business parks, regional and national offices related to cluster policies, for example, through the signing of an MoU with the Sophia-

Antipolis Foundation and the Hungarian Pole Programme Office.

Given the turbulent times in which young Greeks live, should they stay here or should they move abroad to pursue a career?

VM: It is undisputable that innovation can offer solutions to critical problems facing society today. Our country’s future is clearly in the hands of the young generation, and it is for that reason that Greece can’t afford to lose more of its brain power and talent. We are strong supporters of young people and believe that Greeks are flexible and creative, with an innate talent in sciences.

With our work at Corallia, we aim at providing young generations with a vision and inspire them to join us in our efforts to establish “Innovation Made in Greece”. Our continuous efforts for the creation of favourable business conditions, where different actors interact, share experiences and work towards meeting common goals, may be proven to be useful for the rising generation of Greek young entrepreneurs.

AcknowledgmentsCorallia Clusters Initiative is hosted at the Research Center «Athena», under the auspices of the General Secretariat for Research and Technology of the Hellenic Ministry of Education, Lifelong Learning and Religious Affairs and the Ministry of Economy, Competitiveness and Navigation.

Corallia’s activities are supported and co-financed by the European Regional Development Fund (ERDF) and National funds under the National Strategic Reference Framework (NSRF), the private sector, the Operational Programme Competitiveness and Entrepreneurship, the Regional Operational Programmes for 2007-2013, the Public In-vestments Programme, the 7th Framework Programme for Research and Technological Development of the European Union, the Interre-gional Cooperation Programme INTERREG IVC, the Competitiveness and Innovation Framework Programme of the European Union, and donations from private organisations and benefactors.

Vassilios Makios is a Professor Emeritus at the Dept. of Electrical and Computer Engineering of the University of Patras, Greece and at the Dept of Electronics of the Carleton University in Ottawa, Canada, has been involved in numerous scientific projects, has a lengthy publication record and was influential in the establishment of prototype development companies in the telecommunication industry in Greece and abroad.

Jorge-A. Sanchez-P holds Dipl.-Ing. & Dr.-Ing. degrees in Electrical and Computer Engineering. He is co-founder and the Director of Strategy and Cluster Development at Corallia Clusters Initiative. Prior to Corallia, he had participated in numerous research and development projects and directed teams in the Academia, Research labs, Industry and Governmental organizations in the EU and the US.

Nikos Vogiatzis holds a Ph.D. in Communication Electronics & Information Systems, a Masters certificate in Professional Project Management, and a Diploma in Electrical and Computer Engineering. He has accumulated international experience in managing high-risk R&D projects and has been instrumental in forming alliances among industrial and research partners across Europe.

Regional Newsletter for Southeast Europe and Middle East

AMSTERDAM • ATHENS • ATLANTA • AUCKLAND • AUSTIN • BALTIMORE/WASHINGTON • BANGALORE • BEIJING • BELGRADE • BOGOTÁ • BRUSSELS • BUCHAREST • BUDAPEST • BUENOS AIRES • CALGARY • CARACAS • CHENNAICHICAGO • COPENHAGEN • CURITIBA • DALLAS • DELHI • DOHA • DUBAI • DÜSSELDORF • FRANKFURT • GUANGZHOU • HAMBURG • HELSINKI • HONG KONG • HYDERABAD • ISTANBUL • JOHANNESBURG • LAGOS • NEW YORKLIMA • LISBON • LJUBLJANA • LONDON • LOS ANGELES • LYON • MADRID • MEDELLIN • MEXICO CITY • MIAMI • MILAN • MONTEVIDEO • MONTRÉAL • MOSCOW • MUMBAI • MUMBAI FS • NASHVILLESTOCKHOLM • OSLO • PANAMA CITY • PARIS • PRAGUE • PUNE • RIO DE JANEIRO • SAN FRANCISCO • SANTIAGO • SÃO PAULO • SHANGHAISOFIA • STUTTGART • SYDNEY • TOKYO • TORONTO • VIENNA • WARSAW • ZURICH

Presentation to Nicholas Vasilikiotis, Partner & Stavros Daniel, Consultant