1. Digital Europe: How? February 2014 Michael Tsamaz OTE Group Chairman and CEO

2. Competitiveness Industry value Market structure Revenues Investments Regulation OTT players Alarming trends for the continent's digital economy Declining in whole ICT sector Eroding market capitalization vs. North America Fragmentation and lack of scale Declining vs. growing data traffic 270 bln needed for high-speed NGNs Harsh framework Additional pressure

3. Declining revenues Western Europe Western Europe North America North America Asia- Pacific Asia- Pacific IP traffic Telecoms revenues 2008 2016e +35% -10% +40% +836% +966% +1006% Source: European Commission (Sept.2013)

4. Behind in investments Source: OECD Communications Outlook 2013. Asia: Japan, South Korea, Australia, New Zealand. Data estimated for 2012 and 2013. Telecommunications investment in EUR per capita EUR US EU Asia Pacific 180 170 130 Asia Pacific: Japan, South Korea, New Zealand, Australia.Source: OECD.

5. OTTs versus Telcos: No level playing field Income taxes in Europe European investments European employees 11,000 Very low Little or none 22,000 1.2bn In the next 4 years Only in Greece 1bn (2012) For taxes & other social contributions Only in Greece Source: OTT data for largest EU countries (DE, FR, UK), plus EU HQs (Amazon Luxembourg, Google Ireland)

6. Regulation stifles growth Favouring non- investing unbundlers Return on Capital: Incumbents vs. Unbundlers EU regulation complex & intrusive vs. US & AP The myths of Ladder of investment Essential facility Spectrum auction Source: Bernstein Research, BCG. 1 BT, DT, Orange, TEF. 2 BSkyB, Iliad, Jazztel, TalkTalk, United Internet Source: OECD, McKinsey

7. The Greek challenges Challenging macros Aggressive pricing Incumbent main investor Regulation Enhanced FMC offerings Market consolidation/partnering Challenging telco market Private consumption: -30% GDP: -25% 2008-2013

8. The Greek challenges Regulation Pricing IP transformation / VoiP Vectoring Universal service

9. ICT can lead Europe back to the top ICT = Growth and employment Vision for EU’s ICT Key priority 21% of GDP growth 10pp up in broadband penetration = 0.9-1.5 pp up in annual pc growth Productivity growth: 31% Europe 59% USA 2.6 new jobs for every one lost Regain leading position within next 10 years Telecom network infrastructure (fiber, LTE, Intelligent networks) Software and hardware Internet Services EU policies alignment for consistency and credibility of decision-making Source: McKinsey, ifo, European Commission.

10. Key measures to restore EU competitiveness, investment & growth Digital infrastructure development Regulated telecoms markets Digital infrastructure development Market consolidation and cooperation Digital infrastructure development Spectrum policy BOOST DEREGULATE EASE HARMONIZE ICT can lead Europe back to the top