ANNUAL
FINANCIAL
REPORT 2023
FROM 1
st
JANUARY TO 31
st
DECEMBER 2023
PIRAEUS PORT AUTHORITY S.A.
ir
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Page 3 από 238
PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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1
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1. ESTABLISHMENT AND ACTIVITY OF THE COMPANY .............................................................................................. 178
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS: ....................................................................................... 179
3. MATERIAL ACCOUNTING POLICIES ....................................................................................................................... 183
4. PROPERTY, PLANT & EQUIPMENT ........................................................................................................................ 199
5. RIGHT OF USE ASSETS – LEASE LIABILITIES ............................................................................................................ 200
6. INVESTMENT PROPERTY ....................................................................................................................................... 202
7. INTANGIBLE ASSETS .............................................................................................................................................. 203
8. OTHER NON-CURRENT ASSETS ............................................................................................................................. 204
9. INCOME TAX (CURRENT AND DEFERRED) ............................................................................................................. 205
10. INVENTORIES.................................................................................................................................................... 208
11. TRADE AND OTHER RECEIVABLES ..................................................................................................................... 208
12. PREPAID EXPENSES ........................................................................................................................................... 210
13. CASH AND CASH EQUIVALENTS ........................................................................................................................ 210
14. SHARE CAPITAL ................................................................................................................................................. 211
15. RESERVES ......................................................................................................................................................... 211
16. GOVERNMENT GRANTS ................................................................................................................................... 212
17. RESERVE FOR STAFF LEAVING INDEMNITIES .................................................................................................... 213
18. PROVISIONS ..................................................................................................................................................... 214
19. LONG-TERM & SHORT TERM BORROWINGS .................................................................................................... 215
20. DIVIDENDS ....................................................................................................................................................... 217
21. ACCRUED AND OTHER CURRENT LIABILITIES.................................................................................................... 217
22. DEFERRED INCOME .......................................................................................................................................... 218
23. SEGMENT INFORMATION................................................................................................................................. 219
24. REVENUES ........................................................................................................................................................ 221
25. ANALYSIS OF EXPENSES .................................................................................................................................... 222
26. OTHER OPERATING INCOME / EXPENSES ......................................................................................................... 223
27. FINANCIAL INCOME/EXPENSES ....................................................................................................................... 224
28. DEPRECIATION AND AMORTISATION ............................................................................................................... 224
29. PAYROLL AND EMPLOYEE RELATED COST ........................................................................................................ 225
30. EARNINGS PER SHARE ...................................................................................................................................... 227
31. COMMITMENTS AND CONTINGENT LIABILITIES............................................................................................... 227
32. RELATED PARTIES ............................................................................................................................................. 230
33. FINANCIAL INSTRUMENTS ................................................................................................................................ 232
34. RECLASSIFICATIONS ......................................................................................................................................... 236
35. SUBSEQUENT EVENTS ...................................................................................................................................... 236
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Page 4 από 238
PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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S
Statements of the Members of the Boards of Directors
(In accordance with article 4 par. 2 of L. 3556/2007)
The Board of Directors Members of the Company “Piraeus Port Authority Societé Anonyme” and trade title
“PPA S.A.” (hereinafter referred to as “Company” or as “PPA S.A.”) and the undersigned:
1. YU Zeng Gang, Chairman of the Board of Directors
2. ZHANG Anming, Chief Executive Officer
3. LI JIN, Member of the Board of Directors
In our above-mentioned capacity and as specifically appointed by the Board of Directors of the Company, we
state and we assert that to the best of our knowledge:
(a) the financial statements of the societe anonyme Company under the name “Piraeus Port Authority
Societe Anonyme” and trade title “PPA S.A.” for the period from January 1, 2023 to December 31, 2023,
which were compiled according to the applicable International Financial Reporting Standards as adopted
by the E.U., provide a true and fair view of the assets and the liabilities, the equity and the results of the
period of the Company, according to that stated in paragraphs 3 to 5 of article 4 of the L.3556/2007 and
the relevant executive Decisions of the Board of Directors of the Capital Market Commission.
(b) the annual Report of the Company’s Board of Directors provide a true and fair view of the evolution, the
achievements and the financial position of the Company, including the description of the main risks and
uncertainties it faces and relevant information that is required according to paragraphs 6 to 8 of article 4
of the L. 3556/2007, and the relevant executive Decisions of the Board of Directors of the Capital Market
Commission.
Athens, March 29, 2024
YU ZENG GANG
ZHANG ANMING
LI JIN
Chairman of the
Board of Directors
Chief Executive Officer
Member of the
Board of Directors
Passport No ΡΕ1895434
Passport No PE2110665
Passport No PE2316564
Page 5 από 238
PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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from 1st January 2023 until 31st December 2023
(In accordance with article 5 par. 6 of L. 3556/2007)
1. Development & performance of the Company
PPA S.A. pursues business excellence,
providing services of high quality and
promoting sustainability.
Company’s contribution to the UN
Sustainable Development Goals:
Α. Brief Description of Business - Corporate Profile
General Overview
The Port of Piraeus (Piraeus Port) is the largest port in Greece, with a coast line spanning over twenty-four
kilometers in length and expanding over an aggregate area exceeding five million square meters. The
geographic location of the Piraeus Port makes it a vital transportation, trade and supply, tourism and
communication hub connecting the Greek islands with the mainland, as well as being an international centre
of marine tourism and the commercial passage of cargos. The position of the Piraeus Port is conducive to its
operation both as a commercial and touristic gate of Greece and as transshipment hub for the Balkans and
Black Sea countries.
Providing services to more than 22.000 ships annually, Piraeus Port maintains modern technological
equipment to ensure high quality of its services, on-time delivery, client satisfaction and promote its
continuous business growth. At the same time, Piraeus Port complies with international standards and
national and international laws, ensuring smooth and transparent operation across all of its activities.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Piraeus Port is situated at the intersection of sea routes linking the Mediterranean with Northern Europe and
its geographic position (south of the 38
th
parallel) enables major liner ships to access it without significant
deviation from the Far East trade routes. It hosts a complex and unique variety of port activities, including
Cruise activity, Coastal (ferry/passenger) activity, Container and Car and other General Cargo activities, Ship
Repair activities, as well as Free Zone operations under applicable tax and customs legislation in the area
currently designated pursuant to Decisions D18/7.8.2013 (Government Gazette B’ 2038/22.8.2013) and
D18/9.9.2013 (Government Gazette B’ 2330/17.9.2013) of the Minister of Finance (Piraeus Free Zone).
Evolution of Piraeus Port Authority S.A. (PPA S.A.)
PPA S.A. is the legal entity entrusted with the administration and operation of the Piraeus Port. It was
established as a legal entity of public law by virtue of Law 4748/1930, which was restated by Compulsory Law
1559/1950 and ratified by Law 1630/1951, each as subsequently amended and supplemented. In 1999 PPA
was transformed into a stock corporation (société anonyme). Pursuant to the enabling provisions contained in
the thirty-fifth article of Law 2932/2001 (Government Gazette A’ 145/27.7.2001), the Hellenic Republic and
PPA entered into a concession agreement on 13 February 2002 (2002 HRCA). In the 2002 HRCA, the Hellenic
Republic granted PPA the exclusive right of use and exploitation of the land, buildings and infrastructure
comprising the Port of Piraeus, for an initial term of forty years, and subject to further terms and conditions.
Certain amendments to the 2002 Agreement, including the extension of the concession’s term by ten years,
were authorised on behalf of the Hellenic Republic by virtue of a joint ministerial decision on 19 November
2008 (Government Gazette B’ 2372/21.11.2008). These amendments were agreed upon in an addendum to
the 2002 Agreement executed between the Hellenic Republic and PPA on 18 November 2008 (the 2008
HRCA). The 2002 Agreement, as amended by the 2008 Addendum (together the Old Concession Agreement),
was subsequently ratified by virtue of the first and third article of Law 3654/2008 (Government Gazette A’
57/03.04.2008).
In April 2016, following an open international public tender process, the Hellenic Republic Asset Development
Fund (HRADF), under its capacity as the major shareholder of PPA, and COSCO HK Ltd entered into a Shares
Purchase Agreement (hereinafter: SPA) for the acquisition of the majority participation of the share capital of
PPA. In August 2016, after the satisfaction of certain conditions precedent, the SPA was affected by the
execution of the transaction and the transfer of PPA’s majority shares from HRADF to COSCO HK Ltd.
In the framework of the Privatization Process and as envisaged and permitted by the Old Concession
Agreement (including, without limitation, article 15.1(iii) thereof), the Hellenic Republic and PPA engaged in
negotiations, resulting in the finalization and conclusion of a new amendment of the Old Concession
Agreement, which was finally signed by the parties on 29/06/2016 and ratified by law 4404/2016
(Government Gazette A’ 126/08.07.2016).
The objective of the Company is to perform its obligations, conduct its activities and exercise its faculties
under or in respect of the concession agreement between the Company and the Hellenic Republic dated 13
February 2002 regarding the use and exploitation of certain areas and assets within the Port of Piraeus, as
amended and in force (the “Concession Agreement”), in accordance with the law.
Page 7 από 238
PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
For the purpose of attaining its object, the Company may, by way of an illustrative but no means exhaustive
list, conduct and engage in the following activities:
(a) use all rights assigned to the Company pursuant to the CA and maintain, utilize and exploit all concession
assets in accordance with the Concession Agreement;
(b) provide services and facilities to vessels, cargo and passengers, including ship berthing and cargo and
passenger handling to and from the port;
(c) install, organize and exploit all kinds of port infrastructure;
(d) undertake any activities related to the port and all other commercial activities associated with or
reasonably incidental to the operation of the port of Piraeus;
(e) engage third parties to provide any kind of port services;
(f) award contracts for works;
(g) engage in such further activities as are prudent or customary for the proper conduct of its business and
operations in accordance with the Concession Agreement; and
(h) engage in any and all activities, transactions or operations of a type that are conducted by commercial
corporations generally.
Further to the amendment and codification on 24/06/2016 in a single text of the Concession Agreement
dated 13/02/2002 between the Hellenic Republic and Piraeus Port Authority S.A., which was ratified by Law
4404/2016 (Government Gazette A 126/8.7.2016) (hereinafter CA), the Company retains the exclusive right to
use and exploit the land, buildings and infrastructure that are included in the Piraeus Port until 13/02/2052.
Moreover, PPA S.A. is member of the main environmental initiative of the European port sector ECOPORTS,
with the aim to raise awareness on environmental protection through cooperation and sharing of knowledge
between ports, improving environmental management. It was initiated by a number of proactive ports in
1997 and has been fully integrated into the European Sea Ports Organisation (ESPO) since 2011.
B. Objectives, Core Corporate Values and Key Strategies
▪ b.1. Objectives
o The implementation of the Investment Plan that multiplies benefits for the local and national
economy
Under Article 7 of the Concession Aggreement between PPA S.A. and the Hellenic Republic, the Company is
required to implement, within the First Investment Period, mandatory investments, summed with a total
reference cost of 293.8 million Euros, which concern the following:
- Passenger Port Expansion (Southern Zone Phase A)
- Repair of Pier I RMG yard area and cranes
- Conversion of Pentagonal Warehouse into Cruise Passenger Terminal
- Underground Linkage of Car Terminal with Former ODDY Area
- Port Infrastructure Improvement and Maintenance
- Supply of Equipment
- Dredging of Central Port
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
- Construction of New Oil Pier
- Car Terminal Expansion (Herakleous)
- Improvement Infrastructure of Ship Repair Zone
o The further highlighting and reinforcement of Piraeus position as a hub for passenger and freight
transportation
The Company's declared goal is the further highlighting of Piraeus Port strategic advantages and
strengthening its position in the port industry.
The role of the Piraeus Port is not only consolidated but further upgraded through the Investment Plan of PPA
S.A., the customer-oriented approaches and the marketing policy, while the outward development and the
international collaborations were enhanced.
In the above context, the Company has strengthened its presence in national and international organizations
relating to the port.
▪ b.2. Core Corporate Values
Our values are the cornerstone of our successful operation, contributing to the establishment of a unified
corporate culture, that will contribute to achieve our strategic goals, while operating in an ethical and
transparent way. The following values are fundamental for the Company:
a. Safeguard and promotion of the general corporate interest and the interests of the Shareholders.
The primary concern and duty of the Company is the continuous pursuit of enhancing the Company's long-
term financial value and the protection of the general corporate interest and the interests of the
Shareholders.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
b. Continuous improvement
The ultimate aim is the continuous improvement of the port services provided to the port users, at levels
comparable to the best practices adopted by ports of international scope. The Company has as its primary
concern to build strong and long-lasting relationships with its customers, and to provide excellent service,
especially in terms of quality, reliability and delivery time.
c. Health and Safety
The value of human life is the primary Company value, by creating conditions for a safe working environment.
Particular emphasis is placed on the continuous improvement of the systems and procedures related to
environment, health and safety in the workplace, through full compliance with relevant legislations.
d. Evolution of employees
The Company recognizes that the cornerstone for the achievement of its goals is the best utilization of its
human resources. By understanding and respecting the needs of the personnel and by using meritocratic
criteria, the Company ensures the continuous training and development of the employees, taking into
account the needs of the Company and the protection of the corporate interests.
e. Social Responsibility
Corporate Social Responsibility is a daily practice of how the Company operates. Creating relationships of
trust and cooperation with local communities is a priority of the Company's Management, which aims at
setting up a sustainable development model with the emphasis on environmental protection, poverty aid,
supporting education, sport and other charity causes within the capability of the Company.
▪ b.3 Key Strategies
o Strategic Business Objectives
PPA S.A. sets strategic goals in order to respond effectively to the challenges of the maritime sector and
strives strongly to achieve them in order to encourage its business growth.
The formulation of the Company's strategic axes considers the very positive prospects formed by the
establishment and activity of the COSCO SHIPPING group in the Piraeus port. The Company continues to
strive for achieving its strategic objectives, as described below, the materialization of which may be
affected due to the dynamic environment which is formed by economic conditions and geopolitical factors.
The accomplishment of the below constitutes major strategic objectives of the Company.
1. Leadership in cruise homeport in the Mediterranean: Attracting additional homeport cruise passengers
(as a port of departure) in order to create a significant benefit for the local economy. This objective is
implemented by strengthening non-port infrastructure.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
2. Eastern Mediterranean ship repair hub: Installation of a new Floating Dry-Dock and completion of
approximately 350-450 ship repairs per year as a result of increased reliability and efficient service.
3. Southern gateway to Sino-European trade: Expansion of container terminal activities by enhancing sea
lines and using the land interface with transit centres (trains), where available, attracting new car
terminal (Ro-Ro) customers and expanding logistics activities.
4. Passenger port for all parts of Greece: Maintenance of the existing level of activity and upgrade the
services provided through targeted investments.
▪ b.4 2025 ESG Goals
Sustainability is one of our main concerns, as we acknowledge the significance of economic development in a
prosperous community with equal opportunities and access to job market, while protecting the environment
and taking action to combat climate change.
In alignment with our strategic goals and business growth, we set the following targets:
Ε
• Application of EU Taxonomy
Principles
• Elaboration of Action Plan for reduce
of greenhouse gas emissions and
implementation of proposed
measures
• Increase recycling of total waste
(municipal and recyclable) by 4%
S
• Zero fatal accidents
• No recorded incidents of corruption
• Increase of our social impact
G
• Publication of CSRD Report
Page 11 από 238
PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Launch of a new car transportations service from China to Europe, North Africa and Near East
Piraeus Port Authority S.A. has jointly launched with COSCO SHIPPING SPECIALIZED CARRIERS CO.,
LTD, a new service of car shipment, based on the advantage of the port of Piraeus and offering an
innovation in vehicles carrying mode by multipurpose vessels, targeted to provide high quality
services in car logistics.
The new service concerns the transportation of vehicles in special containers, with a capacity of 3
vehicles, called Flat Rack, equipped with built-in ramps for easier transportation and placement
of the vehicles. These platforms have been certified and can be stacked to a height of 3
containers.
C. Port Infrastructure, Evolution and Prospects of Business Activities
▪ c.1 Port Infrastructure and Αnnual Throughput by Business Activiry
Introduction
Piraeus’ Port holds a distinguished position as the largest port in Europe and one of the largest in the world
concerning the passenger traffic, with a total throughput volume of 18 million passengers per year. The Port is
critical linkage between the mainland and the Aegean islands and Crete, while also being the main sea gate of
the European Union at its southeastern edge. Recognizing its strategic position, the Port is organized into
designated areas to accommodate both coasting and cruising activities. At the same time PPA S.A. maintains
cutting-edge technology and facilities, that increase its capability to cover a wide range of services.
Container Terminal
The Container Terminal has annual capacity of 1,100,000 TEUs and operates 24 hours and 365 days per year.
We maintain infrastructure that accommodate the largest container carriers, with a total pier length of 1,150
meters, a maximum depth of 18 meters and a total storage area of 72,400 m
2
.
Moreover, the Port maintains advanced port electromechanical equipment, promoting operational efficiency
and load capacity. Specifically, the Port features 8 Ship to Shore Cranes, 5 Over Super Post Panamax Twin-lift
and 3 Panamax Twin-lift, 1 Harbor Mobile Crane, 8 Rail Mounted Gantries (RMGs), 22 Straddle Carriers (1 over
2 high), 36 Terminal Tractors, 2 Reach Stackers and 4 Empty Container Handler.
The Container Terminal troughtput showed a decrease in 2023. More specifically, total throughput at Pier I
recorded a 20.7% decrease (from throughput volume 648,889 TEUs in 2022 to 514,382 TEUs in 2023) due to a
corresponding decrease in transshipment volumes despite a significant increase in local cargo. Transshipment
volumes decreased by 31.4% (from 498,815 TEUs in 2022 to 342,234 TEUs in 2023) while local cargo increased
by 14.7% (from 150,074 TEUs in 2022 to 172,148 TEUs in 2023) in line with the increase in imports/exports of
the country.
Car Terminal
The PPA S.A. Car Terminal, has showed rapid growth after the aquisition of majority of shares by COSCO
SHIPPING Co. in the middle of 2016. More specifically, the Car Terminal is one of the biggest hubs for transit
cars for the Eastern Mediterranean, Black Sea and North Africa, with throughput capacity of 650.000 vehicles
per year, including all the major automakers.
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PIRAEUS PORT AUTHORITY S.A
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(amounts in Euro unless stated otherwise)
The terminal plays a pivotal role in loading, unloading, and storage of new vehicles and all kind of wheel cargo
such as heavy machinery, trucks, low roll trailers (mafi), trailers etc. as well as general cargo. The technically
qualified staff, the continuous operation and security supervision (24 hours, 7 days a week) and the close to
zero damage rate, in combination with the below are of the main competitive advantages of the terminal:
➢ Competitive volume scaled tariffs and 7-day free storage for transshipment vehicles
➢ Above average productivity
➢ Moderate weather conditions all year around
➢ ISPS compliant operator
➢ 5 berths with a maximum draft of 11m
➢ Ability to forward transit cars through rail connection
➢ Integrated Port Services (water supply, waste management, etc.)
➢ Specific area for heavy vehicles
➢ Vehicles monitoring with specialized yard management system
To respond effectively and meet the needs of the clients, PPA S.A. maintains specialized equipment to secure
smooth operation and safety of the vehicles. Specifically, 8 RO- RO tractors with maximal payload capacity
from 100.00 tons to 180.00 tons, 3 roll trailers, 3 gooseneck and 2 safeneck, 2 mobile telescopic cranes, 5 fork
lift trucks and 2 EV portable chargers, contribute the available equipment for car terminal.
The G2 Terminal is located in the area of Keratsini – Drapetsona Municipality and has a storage capacity of
6,700 vehicles. Moreover, car terminal expansion of 40,000 m2 which is recently completed (inauguration
ceremony took place on February 6th, 2024) towards the northern side of the port and is going to be
operational soon increasing the total area of the Car Terminal to 110,000 m2, and overall creates an extra car
storage space with a capacity of 5,100 vehicles. The total handling capacity will be over 700,000 movements.
Car terminal activity decreased 9.6% in 2023 compared to 2022. The main reason for the decrease in total
throughput (from 350,970 vehicles in 2022 to 317,301 in 2023) is the significant reduction in transshipment
volumes from the port of Piraeus, due to general geopolitical conditions. Transshipment volumes have
decreased by 30% (from 234,238 in 2022 to 163,920 in 2023). Local volumes showed a contrasting picture,
increasing by 31.4% (from 116,732 vehicles in 2022 to 153,381 in 2023), following the increased demand in
the local market for new cars.
Cruise Terminal
PPA S.A. has strong presence in the cruise industry with 3 passenger terminal, up to 11 berthing places
(depending on the vessels length), 240 bus slots and 1 helipad. More specifically, Terminal A – Miaoulis is the
main terminal and is located in walking distance from Piraeus city center, operating 24 hours, with a capacity
of 12,000 passengers and a total area of 8,000 m
2
.
The second Terminal, Themistocles, was built in 2013 in a 6,000 m
2
secured ground area and features two
quays with 11 meters depth able to accept mega cruise ships with over 4,500 passengers away from domestic
ship traffic. Terminal’s B facilities include 1,700 m
2
arrivals halls, with luggage claiming area and additional
check in area with 60 counters able to serve 1,500 passengers per hour.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Terminal C, Alkimos, was established in 2003 and was renovated and expanded in 2016, in a 2,100 m
2
area,
with capacity to serve up to 3,000 passengers. Moreover, environmental, luggage handling and supply
services are offered by our specialized and experienced employees, ensuring that all operational procedures
are followed.
In 2023, the cruise industry has displayed a significant increase in both calls and passenger traffic. Total
passenger traffic in 2023 was recorded to 1,484,788 compared to 880,416 in 2022, showing an increase of
68.6%. Cruise ship calls also increased by 12.3% with 760 calls compared to 677 in the previous year.
Homeporting passenger arrivals recorded an increase of 110.4% compared to 2022 (from 378,899 to
797,234).
Coastal Terminal
There are four passenger terminals, Akti Vasileiadi passenger terminal, Heation Passenger Terminal, Agios
Dionysios Passenger Terminal and Akti Tzelepi Passenger Terminal. The terminals are equipped properly with
refreshment rooms, WC for the disabled, ticket-offices, air-conditioned halls, baby changing rooms and
internet halls.
PPA S.A. aims to provide high quality services that meet passengers’ diverse needs and expectations. To this
end, PPA S.A. continuously upgrades its facilities to further improve and expand the services provided. More
specifically, that includes:
➢ Digital information displays for passengers, indoors and outdoors
➢ Pedestrian bridge
➢ Free transportation service within the port
➢ 3 km path for disabled persons
➢ 130 parking spaces, 13 taxi stations, 2 vehicle control points
➢ Free Wi-Fi service
➢ 24-hour telephone service provision of the information on the itineraries operated from the port of
Piraeus
Ferry shipping recorded an increase in vessel routes and passenger/vehicle flows compared to the previous
year. Total passenger traffic, in 2023, on inland routes recorded an increase of 7.9% with 16,158,776
passengers compared to 14,976,394 passengers in 2022. Also, an increase of 3.8% was recorded in the vehicle
traffic, 2,878,422 in 2023 compared to 2,772,525 in 2022. There was also a 6.1% increase in ferry calls with
14,534 calls in 2023 compared to 13,694 in 2022.
Ship Repair Activity
PPA S.A. manages five dry- docks, including three dry-docks and two graving dry-docks all fully equipped with
cranes. The floating docks located in Perama Ship Repair Yard, include the Floating Dock Piraeus III, with a
lifting capacity of 22,000 tons, overall length of 240 meters and internal breadth of 35 meters, Floating Dock
Piraeus II, with a lifting capacity of 4,000 tons, overall length of 113 meters and internal breadth of 18 meters,
as well as Floating Dock Piraeus I, with a lifting capacity of 15,000 tons, overall length of 202 meters and
internal breadth of 31 meters.
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(amounts in Euro unless stated otherwise)
PPA S.A.’s capabilities are also supported by the graving docks located in Vasiliadi Coast in Drapetsona,
include the Large Graving Dry-Dock with overall length of 140m and internal breadth of 18,5 meters and Small
Graving Dry-Dock with overall length of 85 meters and internal breadth of 12,5 meters.
In the dry dock sector, 154 vessels were served in 2023 compared to 133 in 2022, an increase of 15.8%. In
addition, total days of occupancy increased by 10% (from 1304 to 1439 days). The Ship Repair Zone recorded
a 3.6% decrease in the number of vessels served, with 270 vessels in 2023 compared to 280 the previous year,
as infrastructure upgrade projects during the year reduced the availability of berths across the Zone.
Logistics Center
The Piraeus logistic center is located in Keratsini, in a fenced land area of 86.402 m2 with a perimeter of 1.157
meters with a covered storage space of approx. 10,000 sq.m.. There are four warehouses, Warehouses C-3
and C-5 for imported goods, Warehouse C-8 for unclaimed goods and the Exports Warehouse, with
experienced and well- trained employees, security systems, special warehouse management software,
registration, pricing, of the goods traded, interconnected directly with the competent Customs Office.
The Logistics Center offers competitive advantages as it is located near to national road network and the
urban fabric of the whole of Attica, ensures safety in the area of the warehouses, while offering capabilities
combined transport and intermodal transport chain. Moreover, the direct vicinity of the Customs Services,
General Chemical State Laboratory, Sanitary Veterinary Control Station etc., facilitates the work of customs
officers and customs agents and saves costs and time.
PPA Logistics Center operates in close vicinity to the Piraeus Container Terminal, providing direct access to
Athens inland network and handling over 130,000 tons of cargo per year.
Based on the investment plan of COSCO Shipping group, PPA Logistics Center will be directly connected with
the Container Terminal through an underground tunnel – due to be completed within 2024.
This project, once completed, will create a unified Free Zone between Pier I of Piraeus Container Terminal,
PPA Logistics Center and PPA Car Terminal, offering a unique supply chain solution.
In addition, the development of a new Logistics center of up to 80,000 sq.m. in the same area is under
evaluation based on the Additional investments of COSCO Shipping group.
The services provided in the Logistics Center are the following:
➢ Unloading of International Transit System (TIR) trucks
➢ Emptying of containers
➢ Put away and storage of goods
➢ Classification of goods
➢ Sorting out of goods
➢ Displacement of goods
➢ Order Picking
➢ Goods delivery
➢ Immediate delivery of goods
➢ Transshipment of goods
➢ Goods in transit
➢ Filling of containers
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(amounts in Euro unless stated otherwise)
The Logistics Center of PPA S.A. handled 123,646 tons of cargo in 2023 (-11,3% compared to 2022). The
decrease comes in accordance with the respective decrease of Greece’s external trade with non-EU countries
1
(-13,7% compared to 2022).
Real Estate
With the aim to foster economic development and contribute to the overall growth of the region, PPA S.A.
holds available for concession areas and buildings, both in the portal and non- portal area.
The Port’s strategic position is a competitive advantage for investment opportunities and commercial
exploitation in diverse business sectors such as:
➢ Warehouses for food-supplies and general usage
➢ Outdoor areas for canteens
➢ Cafes and Canteens
➢ Outdoor areas for ticket kiosks / Ticket kiosks
➢ Outdoor areas for kiosks, isoboxes and ATMs
➢ Outdoor areas for various usage / Indoor areas / Offices / Stores
➢ Plots of land and buildings for lease
Moreover, PPA S.A. maintains an underground car parking at Karaiskaki Square, with a capacity of 700 slots,
located in the center of the passenger port of Piraeus and serves all domestic routes, while located closely
both the railway station and the shopping center.
c.2 International Conditions – Prospects
The nature of Company's business activities depends on local and external macroeconomic and geopolitical
data with emphasis on the countries of the Southeastern Mediterranean and the countries served through
the Piraeus port. It is further influenced by developments in the global port industry in general, as well as by
the developments of individual port activities, highly interconnected to both PPA's investment plan and to the
level of service provided to port users.
In 2023, the European economy faced challenges at multiple levels. Although the impact of the energy shock
from the conflict in Ukraine was milder than initially expected, inflation negatively affected consumption and
slowed down economic growth. In particular, the European Union (EU) in its November 2023 bulletin expects
marginal growth of 0.6% compared to estimations of 0.8% in the spring report. Growth is now estimated at
1.3% for 2024, slightly lower than the previous estimation
2
.
The Greek economy performed better in 2023 than the EU average. For 2023, growth was 2%
3
and it is
estimated at in 2024
4
. For 2024, the IMF estimates that the Greek economy will increase by 2.1% and the EU
by 2.2%.
1
Source: https://www.seve.gr/
2
https://economy-finance.ec.europa.eu/document/download/4139ef72-9eb3-4fad-a116-
ee87979f4d35_en?filename=ip258_en.pdf
3
https://www.statistics.gr/el/statistics/-/publication/SEL15/2023
4
https://www.bankofgreece.gr/ekdoseis-ereyna/ekdoseis/ekthesh-nomismatikhs-politikhs
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(amounts in Euro unless stated otherwise)
The different estimations for next year are indicative of the uncertainty about the outlook for the EU and
Greece in particular. In EU level, significant challenges have been identified on both the geopolitical and
economic fields. The decreased growth rate (1.3%) is affected by reduced consumption in the EU which in
turn affects Greece's exports as EU is by far the country's largest trading partner
5
.
On the other hand, a significant decrease is also recorded in the country's imports, which constitute a
significant part of the cargos handled by PPA. In particular, based on current rates, in the period Jan-Oct.
2023, exports of goods excluding fuel showed a minor decrease of 0.4%, while the imports decreased by 2.4%
(-4.7% and -4.0% in fixed prices accordingly). In October, particularly, the decrease is higher as exports of
goods excluding fuel decreased by 5.8% in current prices (-7.6% in fixed prices), while imports of goods
excluding fuel decreased by 3.4% in current prices (-3.1% in fixed prices)
6
.
The container terminal recorded a 20.7% decrease in total cargo in 2023 due to a decrease in transhipment
cargo from 498,815 to 342,234 TEUs. On the contrary, local cargo recorded an increase of 14.7% (from
150,074 to 172,148 TEUs) compared to the previous year assisting the terminal's financial improvement
despite the decrease in transhipment cargo. Part of the transhipment cargo loss was due to the termination
of the cooperation between PCT's Piraeus terminal and Pier I and the consequent reduction in transhipment
vessels. The predictions for 2024 are mixed. On the one hand, the expected improvement of the economic
climate in the country, in the context of 2.0% growth in 2024 is expected to promote imports and exports
contributing to further local cargo growth. On the other hand, the termination of the transit of the ships
through the Red Sea and rerouting them to circumvent Africa from Asia to Europe (and vice versa) instead of
passing through the Mediterranean Sea is damaging the geographical advantage of Piraeus as the first
continental port of the EU after the Suez crossing. In particular, the Circumvention of Africa has led all
container carriers not only to reschedule routes, but also to consider alternative ports as transhipment points,
as the navigating around of Africa makes it more efficient to call at ports on the western end of the
Mediterranean and to supply the eastern Mediterranean via feeder ships.
It should be noted that the duration of Houthi armed attacks on ships sailing the Red Sea will largely dictate
the impact on transhipment volumes at Piraeus. Modifying the container transshipment and distribution
network cannot be done in a very short time and has an economic cost as most companies are under
agreements with terminals in order to enjoy better pricing due to volumes at the transshipment ports they
already use. Any transfer of activities will not immediately ensure corresponding economic discounts while at
the same time the increase of demand in much fewer ports in the Western Mediterranean (European and
African) is likely to lead to delays due to the sudden increase in ships and cargos. Consequently, the impact
both on the economic figures and on the volumes at the terminal of Pier I in Piraeus will depend on the
duration of the instability in the Red Sea as well as on the degree of network restructuring that cannot be
implemented immediately. On the other hand, the predictable increase in local cargo that will arrive in 2024 is
estimated to largely absorb any economic loss from the possible reduction in transhipment cargo.
5
http://www.pse.gr/sites/default/files/ImpExpReg_11_23_Euro.xls
6
https://www.bankofgreece.gr/enimerosi/grafeio-typoy/anazhthsh-
enhmerwsewn/enhmerwseis?announcement=4b0cc32f-641e-4aae-9157-faf0c538ce67
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(amounts in Euro unless stated otherwise)
At the same time, discussions take place with the main customer in order to have immediate and accurate
information about any negative decisions. PPA is monitoring the evolution of the situation on a daily basis and
has developed scenarios based on the latest data in order to take measures for cost containment in order to
counterbalance the risk as the impact is of geopolitical nature and cannot be handled by the port
management.
The car terminal recorded a significantly higher than expected increase in local demand for cars. More
particularly, import vehicles recorded an increase of 31.4% (from 116,732 to 153,381). On the contrary,
transhipment cargo recorded a 30% decrease from 234,238 to 163,920 units. This increase in import vehicles
creates congestion situations in local networks outside the port as storage spaces were not sufficient for an
amendment of this size. At the same time, the movement of motorhome drivers to other operations during
the COVID19 period reduced local distribution and transport capacity. As a result, import vehicles occupy
much longer time and space, resulting in congestion in the temporary parking areas of the car terminal and an
increase in vessel handling time due to a lack of storage space. The increase in the storage time of local
vehicles significantly contributes to higher storage revenues but afflicts vessel’s service times as well as affects
negatively the attractiveness of the port by diverting transhipment cargo to alternative ports. Consequently,
as long as the above situation is maintained, it improves short-term financial results but creates challenges in
the long run in terms of attracting transhipment cargo.
Port management is in frequent discussions with local logistics service providers and car importers to improve
this current situation. Most importantly, on February 6, a new terminal was inaugurated with a total capacity
of 3200 berths which will be gradually expanded to provide 5200 berths contributing to the improvement of
handling ships and cargo. However, as the demand for local vehicles is estimated to continue to increase into
2024, if the post-port reception and distribution chains are not improved, vehicle handling and storage times
will continue to face challenges in attracting transhipment cargo.
In the cruise sector, after the almost total suspension in 2020 due to COVID19 and the dynamic resumption in
2021 and 2022, 2023 recorded impressive growth rates. Piraeus has now established itself as a reliable
partner and the preference of cruise companies to use the port as a homeport was strongly recorded in 2023.
In addition to the increase in passengers (68.6%) and accommodation (+29.5%), a significant increase was
recorded in homeport calls and passengers. In particular, the increase in homeport passengers was 110.4%
(from 378,899 to 797,234) and the number of homeport calls was 571 out of a total of 760. This structural
change is fully aligned with the Company's strategic objectives which will allow Piraeus to contribute to the
country's
7
strategic choice to improve high-level tourist flows (Homeport).
In the ferry sector in 2023, an increase in passenger and vehicle flows was recorded, supported by the highly
improved tourist flows, exceeding the 2019 figures for the first year since COVID19. Total passenger traffic, in
2023, on domestic routes recorded an increase of 7.9% with 16,158,776 passengers compared to 14,976,394
passengers in 2022. Also, an increase of 3.8% was recorded in the vehicle traffic, 2,878,422 in 2023 compared
to 2,772,525 in 2022. The company has started works upon the maintenance of the port's berths and
maintenance of other infrastructure that will allow for uninterrupted service for ships and passengers in the
new season.
7
https://mintour.gov.gr/syskepsi-gia-tin-kroyaziera-sto-yp-toyrismoy/ [accessed, 7, February 2024]
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
In the ship repair zone, there was a 15.8% increase in the number of vessels in the Dry Docks (from 133 in
2022 to 154 in 2023), but a 3.6% decrease in the number of vessels in the Ship Repair Zone (from 280 in 2022
to 270 in 2023). Despite the decrease in the number of ships repaired, an increase in revenues was recorded
due to the longer stay of vessels in the Zone. Similarly, the increase in the number of ships in the dry docks
led to higher revenues by 9.1%.
D. Activity of the Company in the field of research and development
The Company actively participated in 2023 in the field of research and development, implementing synergies
with entities from Greece and abroad and developing initiatives in the direction of the development of new
technological applications and innovative processes that create new horizons of development and optimized
operation, ensuring the competitiveness and participation of port of Piraeus in the relevant decision making.
The Company with its participation in co-financed development projects supports and promotes practices and
investments in green technologies, in the use of alternative fuels and in environmentally sustainable
operations aiming to fulfill the objectives of the European Fit for 55 initiative, at environmental sustainability
and social well-being.
In 2023, the Company participated as a partner or coordinator in six (6) European research and development
co-funded projects, details of which are shown in the table below:
No
Program
Name of project
Budget for
PPA
Co-
funding
rate
1
EALING
RUNNING
Finalised
31/12/2023
In the frame of EALING, PPA S.A. has implemented all studies to
prepare and accelerate the effective launch of cold ironing and
electric bunkering equipment within the port area. Additionally,
PPA S.A., as a core port of Europe, will contribute into the
development of a common EU harmonised and interoperable
framework for the deployment of OPS infrastructure and
equipment in the ports with close cooperation between all the
stakeholders of the maritime sector.
→Completed set of studies for OPS in five (5) positions in Ferry
area of Piraeus Port
191.219,50€
50%
2
Green C Ports
RUNNING
Finalised
31/12/2023
The GREEN C Ports Action will pilot the use of sensors, big data
platforms, business intelligence tools and artificial intelligence
modelling at the ports of Valencia, Venice, Piraeus,
Wilhelmshaven and Bremerhaven, contributing this way to the
future roll out of these technologies in the market.
In Piraeus port sensor networks gather environmental data of
different types (e.g. air quality parameters, meteorological
information, noise, congestion at gates, among other), transmit
it to a Port Environmental Performance (PEP) IT platform that is
programmed to receive real time data from the sensor
networks and from existing operating systems in the port.
455.500,00€
50%
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Develop methods and analytics following big data techniques
and advanced modelling, which allow predictive analyses of
ports’ environmental performance.
3
CIPORT
RUNNING
The Action addresses the Core Maritime Port of Piraeus, located
on the Orient East-Med Core Network Corridor. It is part of the
Global project which aims to transform the Port of Piraeus into
a Green Cruise Hub. The Action aims to provide the final studies
and engineering designs for the development of on-shore
power supply (OPS) technology for four cruise vessels positions
at the Themistoklis coast in the core maritime Port of Piraeus.
→ Completed set of studies for OPS in four (4) positions in
Cruise terminal of Piraeus Port
170.000,00€
50%
4
ARSINOE
RUNNING
PPA S.A. is in the process of studying the potential effects of
Climate Change at Med Ports (focusing on this of Piraeus)
through its participation in the European project HORIZON 2020
entitled "Climate Resilient Regions Through Systemic Solutions
and Innovations - ARSINOE".
In the context of the project, the pathway to the Resilience of
the port against the challenges/impacts of Climate Change is
formed, applying Systems Innovation Approach (SIA) with which
challenges are analyzed, opportunities are identified, and
innovative solutions are designed.
At the same time, a Marketplace will be used that includes
relevant tools and technologies (Climate Innovation Window -
CIW) that will contribute to the resilience of the port. The
ultimate goal is to create an Ecosystem that adopts Climate
Change Adaptation solutions for the port of Piraeus.
Additionally, a hybrid system will be designed using key
performance indicators to systematically measure resilience
and the rate of implementation of sustainable development
goals.
497.500,00€
70%
5
TRIERES
(HORIZON
EUROPE)
APPROVED
RUNNING
TRIĒRĒS is Greece’s first Hydrogen Valley that brings together
business, knowledge, and regional interests. PPA’s involvement
concerns in two pilots:
1. One (1) short sea ferry vessel retrofitted with 200kW FC
system, which will be operated on the 1.6 nautical mile route
of Perama-Paloukia, situated near in proximity to the port of
Piraeus.
2. One (1) Fuel Cell Auxiliary Power Unit (FC-APU) with a
capacity of 100kWe to produce electricity via green hydrogen
at the Port of Piraeus. It is going to be used for the heating
system in PPA premises.
703.149,00€
70%
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(amounts in Euro unless stated otherwise)
6
GREENLIFE4SEAS
(LIFE)
APPROVED
RUNNING
GREENLIFE4SEAS project aims at demonstrating the technical
feasibility, full safety, and commercial viability of breakthrough
solutions for in-situ recovery and reuse of dredged port
sediments and shells, that are used as secondary raw materials
for the realisation of sustainable by-products by means of an
optimised mixing technology
350.812,12€
60%
Within 2023, three (3) European research and development co-funder projects were submitted for funding,
with the Company participating as a partner or coordinator, with positive assessment and are expected to
start in the first semester of 2024. Details of the submitted proposal are shown in the table below:
No
Program
Name of project
Budget for
PPA
Co-
funding
rate
1
MISSION
(HORIZON
EUROPE)
APPROVED
MISSION will develop an interoperable digital real-time-based
optimization and decision support tool enabling coordinated
port call operations planning and execution in terms of time,
fuel consumption, environmental impact, and safety spanning
the overall maritime supply chain.
PPA participates in the project as a partner and will participate,
among others, in the implementation of a pilot application on
the JustInTime concept together with the port of Valencia, the
port of Genoa, and the close cooperation of COSCO SHIPPING
Lines Spain.
162.500,00€
60%
2
RENEWPORT
(MED)
APPROVED
RENEWPORT aims to tackle this issue by supporting the clean
energy transition of MED ports, turning them from emitters of
pollutants and greenhouse gases to clean energy hubs by
exploiting the untapped potential of renewable energy sources
(RES).It concerns the installation of a photovoltaic unit on a
roof and a connected vehicle charger in the central parking
area of the PPA.
319.800,00€
80%
3
TREASURE
(MED)
APPROVED
TREASURE has the overall objective to reduce soil and water
pollution in and around Mediterranean port areas. It does so
by transnational testing of the creation and consolidation of
support environments (mini-labs, supported by the necessary
territorial frameworks) for the development and application of
novel techniques to restore degraded and polluted port
ecosystems. It concerns the installation of a port environment
quality monitoring system with sensor systems and sample
collection tools, while the development of a relevant platform
by the consortium is also foreseen.
325.160,00€
80%
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Within 2023, two (2) European research and development co-funder projects were submitted for funding,
with the Company participating as a partner or coordinator and have already passed successfully the first
stage evaluation. Final results are expected to start in the first semester of 2024. Details of the submitted
proposal are shown in the table below:
No
Program
Name of project
Budget for
PPA
Co-
funding
rate
1
ADRIREC
(ADRION)
FIRST STAGE
Renewable Energy Communities (RECs) for ports.
The project's main objective is to facilitate the energy
transition of ADRION ports by exploiting untapped potential
of RES through the establishment of Renewable Energy
Communities (RECs), as to enhance their decarbonisation
potential.
210.000,00€
85%
2
SUPER-ALFUEL
(ADRION)
FIRST STAGE
Prepare the port for the use of effective low-
carbon/zero-emission and safe operative model of
hydrogen, ammonia and methanol in marine
transportation
Propose actions the port must take to support and enable
zero emission vessels to operate effectively and look at ways
in which alternative fuel supply, bunkering and storage should
be developed. (infrastructure construction or renovation, risk
management measures, establishment of regulations and
standards)
172.200,00€
85%
Within 2023, three (3) European research and development co-funder projects were submitted for funding,
with the Company participating as a partner or coordinator and evaluation results are expected within 2024.
Details of the submitted proposal are shown in the table below:
No
Program
Name of project
Budget for
PPA
Co-
funding
rate
1
ORION
(HORIZON)
Under
Validation
Supporting operators against cyber and non-cyber threats to
reinforce the resilience of critical infrastructures.
PPA will be a pilot for testing and demonstrating CIRA and
CIDA. CIRA for Resilience Assessment of their infrastructure
assets (OTs such as PLCs, SCADAs, IT, and network equipment).
CIDA for dependency analysis across CIs such as vessels, cruise
port and city infrastructure elements. For the last part, the
Municipality of Piraeus will be project partner, too.
222.687,50€
70%
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
2
SYSTEMIC
(HORIZON)
Under
Validation
The goal of SYSTEMIC will be to strengthen the preparedness,
resilience, and response capabilities of essential services
against all-hazard risk and to promote collaboration among the
competent authorities. In particular, PPA along with other
operators from various sectors (energy, transport, supply
chain, logistics) will participate in workshops and test scenarios
that will be run during the validation and testing phase of the
project.
98.000,00€
70%
3
ELYSIUM
(HORIZON)
Under
Validation
The ELYSIUM solution will consist of a multi-sensor multi
robotic system that can be deployed for inspecting suspicious
areas as well as luggage and goods from different ships.
100.362,50€
70%
E. Investments
The implementation of investment plan is to strengthen the financial position and sustainable development of
the Company. It will benefit also to the local economy by creation job opportunity and bring tax contribution
to the national economy. According to the Concession Agreement, the mandatory investment of the Company
is around € 293.8 million for the First Investment Period and € 56 million for the Second Investment Period,
while the additional voluntary investments amount to a reference cost of € 167.0 million. Until end of 2023,
the accumulated contracted amount for the above investment is € 250.5 million with the reference cost of €
278.6 million in total, 89,9% of total reference cost.
The accumulated investment amount by end of December 2023 for the above contracts for mandatory
investments have been made around € 155.5 million which can be split into completed project € 75.3 million,
projects under construction € 70.5 million and prepayments of € 9.7 million.
Apart from the above, the Company completed some additional investments as maintenance infrastructure of
the port with the amount of € 13.1 million.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
1 ME01
Passenger Terminal Expansion
(South Zone - Phase A)
136.283.800 136.283.800 102.954.367 40.811.557
2 ME02
Repair of pavements, rails and
RMG cranes of Pier I Container
Terminal
8.000.000 8.000.000 6.800.475 7.075.930
3 ME03
Convertion of Pentagonal
Warehouse to Passengers
Terminal
1.500.000 0 0 19.797
4 ME04
Underground Tunnel for the
connection of G2 Car Terminal
to the ex-ODDY area.
5.000.000 5.000.000 6.416.285 3.308.733
5 ME05
Upgrade and maintenance of
Port Infrastructure
15.000.000 1.270.483 854.467 1.094.347
9 ME06
Supply of Equipment
25.000.000 25.000.000 28.052.761 19.835.880
19 ME07
Dredging of Central Port
8.000.000 8.000.000 6.128.325 171.615
20 ME08 Studies 5.000.000 5.000.000 9.600.000 2.959.288
25 ME09
Construction of New Oil
Terminal
15.000.000
15.000.000 19.541.587 20.846.402
26 ME10
Expansion of Ro-Ro (Car)
Terminal - Hrakleous Pier
20.000.000
20.000.000 19.810.488 20.781.079
27 ME11
Improvement of Infrastructure of
Ship Repair Zone (Including
floating docks)
55.000.000
55.000.000 50.353.403 38.573.910
293.783.800 278.554.283 250.512.158 155.478.538
a/a
Additional
Investments
Item name Budgeted Cost
1
Development of a logistics center
in the former ODDY area, surface
of 80.000m2
60.000.000
2
Construction of two car park
buildings, surface of 75.000m2
each in the G2 region
27.000.000
3
Construction of a Cruise
Passenger Terminal
80.000.000
4
Maintenance and repair of port
and building infrastructure not
included in Obligatory
Investments
13.101.866 13.101.866
167.000.000 13.101.866 13.101.866
460.783.800 278.554.283 263.614.024 168.580.404
Total amount € without VAT (A)
Total amount (A+B)
Amounts in Euros (€)
Total amount € without VAT (A)
Accumulated
Investment Amount
until Dec 31 2023
(including prepayments)
Summary of Mandatory Investment in PPA
a/a
Mandatory
Enhancement
Item Name
Concession
Agreement
Reference Amount
Reference amount of
contracted projects
Construction Contract
Amount
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
F. Company’s presence and contribution
PPA S.A. remains strongly extrovert and actively participates in a series of national and international maritime
and maritime oriented/related organizations, trying not only to follow but also to contribute to the
developments taking place in the port industry. In the above framework, PPA S.A. actively participates in:
➢ European Sea Port Organization, by staffing the structures of the below technical committees:
- Marine Affairs,
- Cruise & Ferry Port Network,
- Trade Facilitation, Customs and Security,
- Port Governance,
- Sustainable Development,
- Economic Analysis and Statistics,
- Multimodal, Logistics and Industry,
- Labor and Operation.
➢ Hellenic Ports Association,
➢ Piraeus Chamber of Commerce and Industry,
➢ Chamber of Greek-Chinese Economic Cooperation,
➢ Association of Mediterranean Cruise Ports,
➢ Cruise Lines International Association (CLIA).
Delphi Economic Forum 2023
PPA S.A. participated at the Delphi Economic Forum that gathered as every year top leaders and executives of
the political and business world, the economy and the country’s civil society. At this event PPA Chairman, Mr.
Yu Zenggang, participated at a fireside chat discussing about the role that Piraeus as the largest port in our
country, plays for the country’s economy, transport, tourism and shipping industry as well as the significant
investments already implemented alongside the impressive financial results recorded and the important
multiple benefits for the employees, the local society and the national economy in general.
Strong presence at the 6th China International Import Expo 2023
During the successful sixth consecutive participation of the PPA S.A. in the China International Import Expo
(CIIE) in Shanghai, the Company made a remarkable impact with its strong on-site representation, showcasing
an exceptional display of the port’s services to the global audience of the exhibition.
This year, PPA’s booth focused on showcasing PPA’s commitment to high quality provided services and
sustainable development. The PPA booth showcased an array of captivating features for visitors around the
world. Through interactive maps and virtual reality (VR) glasses, visitors had the chance to explore the port
and gain a unique glimpse into the various port activities in Greece and the Company’s top position within the
global maritime industry. An interactive program provided a comprehensive introduction to each port sector,
allowing for a thorough understanding of PPA's differentiated operations. Furthermore, as part of the parallel
events of CIIE, one of the attended PPA officers delivered a compelling presentation focused on the
Company's remarkable achievements in Environmental, Social, and Corporate Governance (ESG), highlighting
the Piraeus Port's significant contributions to sustainable development.
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Active participation at the 7
th
Posidonia Sea Tourism Forum
PPA S.A. actively participated at the 7th Posidonia Sea Tourism Forum taken place at the city of Thessaloniki,
with this year’s main theme being “The Return to Growth: Challenges ahead for Cruise Lines & Destinations”.
In the Forum which is a meeting place for cruise decision makers and serves as a platform for exchange and
discussion about ways how to deal with the industry challenges, took part PPA executives and the Chairman
of the Company Mr. Yu Zenggang, who actively participated at a panel discussion around “The Crucial Role of
the Mediterranean in Post-Pandemic Cruising”. Amongst others, it was highlighted that the Integrated
services, targeted investments and consistent strategy implementation drive to desired results at the port of
Piraeus.
Participation in the European exhibition "Seatrade Europe, Cruise & River Cruise Convention 2023",
promoting the Greek port cruise industry
Seatrade Europe, which in 2023 was held in Hamburg, is one of the most influential exhibitions in the cruise
industry. This prestigious event attracts industry leaders from around the globe, fostering the exchange of
ideas and facilitating discussions on the latest trends and developments in the cruise sector. The focus
revolves around innovation, excellence and sustainability particularly in relation to port operations.
The PPA S.A. Management maintains its unwavering commitment to the Port of Piraeus strategy and plan,
while staying true to the Company’s vision and driving forward innovation and sustainability in the cruise
business and national tourism industry.
Participation in the 9th International Exhibition Supply Chain & Logistics 2023
This leading meeting point for showcasing logistics, supply chain management and commercial vehicle
industry advances, was attended by the general secretaries of the Ministries of Transportation and
Development. The vibrant presence of PPA S.A. highlighted the company's extensive experience, specialized
knowledge, and dedication to environmental responsibility issues.
Events held by PPA S.A.
Moreover, PPA S.A. with the aim to promote collaboration, partnerships as well as exchange of
expertise and knowledge hosted two major events in 2023 concerning the maritime sector.
10th Mediterranean Ports and Shipping 2023 Exhibition and Conference
PPA S.A. hosted the 10th Mediterranean Ports and Shipping 2023 Exhibition and Conference, one of the
most significant international maritime transport events for the Mediterranean region that was
attended by 253 delegates from 26 countries.
The Conference which took place in Athens, opened with a technical site visit to the Port of Piraeus, so
that the event attendants could see first-hand the diverse and integrated services of the largest port of
the country, covering the container business, the ferry, crew and car terminal sectors as well as the ship
repair zone.
Event on Ship Electrification at the Port of Piraeus
"Ship Electrification at the Port of Piraeus - Prospects and Challenges" conference, took place at the
Event Hall of the Piraeus Port Authority and was part of the efforts towards the energy transition of the
Piraeus port infrastructure and the adaptation of its port operations to the requirements set forth by
the Green Deal and the EU's "Fit for 55" package.
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G. Awards and Recognition
The acknowledgement of Company’s efforts to provide various services of high- quality, while at the same
time we take care of our environmental impact and take the appropriate measures to only to eliminate it but
also to prevent it, is the driven force to continue our efforts for a better and sustainable future.
Piraeus among the Top 10 global ports in the Shipping Centre Index 2023
Τhe Port of Piraeus ranked 8
th
internationally on the Xinhua-Baltic International Shipping Centre Development
(ISCD) Index. The ISCD Index provides an annual independent ranking of the performance of the world’s
largest cities that offer port and shipping business services, based on specialized multicriteria indexes which
concern port infrastructure, shipping provided services and general environment performance - as well as 16
secondary evalution indexes of the comprehensive performance of 43 cities worldwide.
Piraeus Port honored for significant contribution to Greek tourism due to high cruise performance
Piraeus Port Authority was recognized with an award, conferred during a special event with theme: “Greece:
365 - Day Destination”, held by the Ministry of Tourism, in recognition of the Piraeus Port’s major
contribution to the country’s tourism through its high performance in the cruise industry.
For another year among the Most Sustainable Companies in Greece
PPA S.A. was named again, for a second consecutive year, one of the Most Sustainable Companies in the
country. This is a top distinction based on the annual performance evaluation of businesses in sustainable
development measured by ESG factors. The Company has a comprehensive plan of actions to share the
benefit of port development with local society, while at the same time respects and cares for its own
employees. Piraeus Port Authority prioritizes and incorporates in the Company’s strategy every aspect related
to the Environment, Society and Corporate Governance (ESG), while satisfying investors’ and all stakeholders’
expectations. The inclusion of companies in the list of "The most Sustainable Companies in Greece" by the
QualityNet Foundation, provides the highest possible distinction in Sustainable Development in Greece.
Diamond of the Greek Economy and True Leader 2023
PPA S.A. accepted two prestigious awards, in recognition of the Company’s business excellence, marking
another twelve months of modernization and progress and the best performance in the Company’s history.
Specifically, the "Diamonds of the Greek Economy 2023" prize, was awarded by the Minister of Transport and
Infrastructure, during a special event organized by Naftemporiki.
Additionally, PPA S.A. was honored with the title of "True Leader" by ICAP CRIF, as it was among the top
companies that have excelled in the Greek market and met all the objective and measurable criteria set by
this renowned institution. The prize was awarded by the Chairman of Association of Chief Executive Officers.
Company of the Year" at the ITC 2023-6th Infrastructure and Transport Conference
The Company was honored with the prestigious award for its significant contribution to the country’s
transportation sector. The recognition was also in appreciation of the Company's outstanding financial
accomplishments, which set a historic record during the past year.
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2. Administration Principles and Internal Management Systems of the Company
Α. Administration Principles
The management of the Company provides direction, leadership and an appropriate environment for its
operation to ensure that all its available resources are fully engaged in the achievement of its objectives. The
Company's policies at the stages of its productive and operational activity emphasize on implementing
procedures based on transparency and fairness, and establishing common principles and rules, through the
below principles:
Collectivity in decision-making
The function of the Top Management Boards (under the Chairman of the BoD and the CEO), which support
and advises the other Company bodies in the exercise of their responsibilities, are constituted by the
Chairman of the BoD, the CEO, the Deputies and Assistants to the CEO, ensuring better exchange of
information, fuller exploration and better evaluation of alternatives, consistency of the Management Team,
increasing acceptance of the decision issued.
Segregation of Responsibilities
Clear distinction in the allocation of responsibilities through the assignment of specific duties at all levels of
the PPA hierarchy ensures the speed of decision making, the smooth operation of the business and the
subsequent effective control of all its actions.
On the basis of this principle, all members of the Company, according to their positions in the hierarchy and
qualifications, undertake specific responsibilities and are given the necessary authorities to carry out the
obligations arising therefrom.
Responsibility - Accountability - Liability
Responsibility - Accountability - Liability is vital to ensure high performance of the Company.
The Company's Management clearly communicates its expectations and sets out specific objectives to the
persons responsible for the execution of specific tasks and duties. Clear communication of expectations and
clearly defined goals are aimed at enhancing performance at all organizational levels and structures of the
Company.
Through the submission of continuous progress reports to the Management of the Company, the
organizational units of PPA S.A. are provided with the possibility to operate within the components of the
particular administration principle (Responsibility - Accountability - Liability), as well as to the Company's
Management to check its effectiveness.
Good Governance
The primary objective of the Company's Management is to increase its value and protect the legitimate
interests of all its shareholders. The PPA S.A.’s management bodies, in the exercise of their discretionary
powers, act in accordance with the rule of law in order to avoid unnecessary and unfair solutions. Good
administration, both as a principle and as a right, is a particularly useful "instrument" of the Administration in
order to ensure the trust of the persons who are managed and to firmly establish the legal certainty and the
legitimacy of its actions.
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Audit - Transparency
For PPA S.A., adherence to market rules, participation in international standards of corruption prevention and
transparency enhancement, are commitments that are fully in line with its Values and Principles, while at the
same time demonstrate the degree of commitment to integrity practices and Corporate Governance.
Β. Internal Management Systems
Periodic Evaluation Policy of the Internal Control System of PPA S.A. and Implementation of the provisions
on Corporate Governance of Law 4706/2020
Key Elements
PPA S.A. having recognized the importance of the operation of an adequate and integrated Internal Control
System (hereinafter "ICS") for achieving its business objectives and in accordance with Law 4706/2020
regarding corporate governance and decision of the Board of Directors of the Hellenic Capital Market
Commission 1/891/30.09.2020 as in force from time to time, adopted a policy of periodic evaluation of the
Company's ICS as well as of the Implementation of the provisions on Corporate Governance of Law
4706/2020.
The Company's ICS includes five (5) basic elements that exist and operate in the Company and are described
in general terms below:
i. Control Environment
The Company is committed to operate with integrity and ethical values. Its organizational structure
determines a specific position and specific and distinct responsibilities for each body and organizational unit
of the Company. There are specific benchmarks and areas of responsibility in achieving the Company's goals,
while a regulation is followed on the selection and recruitment of staff and senior management as well as a
remuneration policy aiming at attracting and retaining highly qualified human resources.
ii. Risk Management
The Purpose of the Risk Management Function is to assist the Board of Directors regarding the performance
of its responsibilities on the management of operational risks. The above will be achieved through the
supervision, evaluation and the controlling by the Risk Management Function, the supervision and the
implementation through a risk management framework, which consists the suitable response plans, taking
into account the scope of activities, critical infrastructure and the complexity of the organization.The
Company clearly communicates its objectives in the individual Departments in a simple and understandable
way, so that they are taken into account during the process of risk identification and risk assessment as well
as its acceptable risk tolerance level.
In general, the Top Management of the Company determines the way of responding to the risks by
categorizing them according to the probability and their impact on the operation of the Company in the
following categories:
• High risk: immediate actions required
• Increased risk: immediate actions required
• Acceptable risk: immediate actions required
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• Low risk: no immediate action required
The recording of the potential risks faced by the Company as well as the management and risk response
procedures, is carried out in all operations of the Company on an annual basis. In case of emergency reasons,
an extraordinary assessment on selected departments, will take place. In addition, the Company has
established control mechanisms and safety valves to detect and/or prevent the inability to deal with risks, in
order to achieve its objectives.
iii. Hazard Definition
Hazard is the weight of uncertainty on business decisions. Risk management's purpose, focuses on the way
of countermeasures finding, aiming on Hazard probability mitigation for each specific hazard.
Main Hazards are:
✓ Strategic,
✓ Operational,
✓ Commercial,
✓ Financial,
✓ Safety/Healthy, Enviromental
✓ Net Working – Cyber Risk,
✓ Regulatory/Compliance
✓ Geopolitical
iv. Controls Activities
The Company develops policies and procedures in accordance with the objectives of the Management. In
addition, it implements a system of safety valves, based on the risks it has identified, but considering the
specific characteristics of the Company. Special emphasis is placed on the adequacy, proper implementation
and monitoring of procedures, the handling of error cases and the frequency of reassessment of policies and
procedures.
In addition, the Company implements adequate safeguards for issues of conflict of interest, segregation of
duties as well as the governance and security of its Information Systems.
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v. Communication System
The Company ensures the quality of financial and non-financial information and follows appropriate ways of
internal and external communication, such as communication with the members of the Board of Directors,
shareholders and investors, communication with the existing Company committees, complaint on
whistleblowing, Regulatory Authorities etc.
vi. Monitoring of the Internal Control System
The Company has mechanisms and functions that have as its objective the continuous evaluation of the
Internal Audit System and the reporting of findings to be corrected or improved.
Internal Orgazination and Operation Regulation (IOOR)
The updated Internal Operation Regulation (IOOR) of the Company is the Company's compliance with the
requirements of the applicable regulatory framework, as formulated, in particular, by Law 4706/2020
«Corporate governance of public limited companies, modern capital market, incorporation into Greek
legislation of Directive (EU) 2017/828 of the European Parliament and of the Council, measures for
implementation of Regulation (EU) 2017/1131 and other provisions» (Government Gazette 136/17.7.2020),
Law 4548/2018 "Reform of the Company Law (New legislation for Societe Anonymes)" (Government Gazette
A '104/13-06-2018), Law 3016/2002 "On Corporate Governance etc." (Government Gazette A 110/17-05-2002)
as in force today, the general provisions of the legislation governing companies that have listed shares in the
regulated stock market.
The Regulation came into force with the no. 46/2023 decision of the Board of Directors of the Company, -
which at the same time abolished the previous Internal Organization and Operation Regulation, which was
approved by the Board of Directors’ decision No. 34/2019 - and as amended and codified with No 15/2022
Company’s Board of Directors decision, and 19/2023, and its objective is to reflect:
a) The organizational structure, the units’ objectives, the committees of article 10 L.4706/2020 or other
standing committees’ objectives, as well as the duties of their heads and their reporting lines.
b) The main characteristics of the Internal Control System, i.e. the Internal Audit Department and the
functions of risk management and regulatory compliance.
c) The process of hiring and evaluating Senior Executives.
d) The compliance procedure for persons holding managerial duties, as defined in number 25 of par. 1 of
article 3 of Regulation (EU) 596/2014, and the persons closely related to them, according to the definition of
par. 14 of article 2 hereof, which include the obligations deriving from the provisions of article 19 of
Regulation (EU) 596/2014.
e) The procedure for notifying the existence of dependent relations, in accordance with Article 9, of the
independent non-executive members of the Board of Directors and of the persons who have close ties with
these persons.
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f) The procedure to comply with the obligations arising from articles 99 to 101 of Law 4548/2018, regarding
transactions with related parties.
g) The policies and procedures for the prevention and management of conflict of interest situations.
h) The policies and procedures of compliance of the Company with the legislative and regulatory provisions
that regulate its organization and operation, as well as its activities.
i) The procedure available to the Company for the management of privileged information and the correct
information of the public, in accordance with the provisions of Regulation (EU) 596/2014.
j) The policy and procedure for conducting periodic evaluations of the Internal Control System, in particular as
regards the adequacy and effectiveness of financial information, on an individual and consolidated basis, as
regards risk management and regulatory compliance, in accordance with recognized standards of evaluation
and internal control, as well as the implementation of the provisions on corporate governance of this law.
This evaluation is carried out by persons who have proven relevant professional experience and do not have
dependent relationships according to par. 1 of article 9.
k) The training policy of the members of the Board of Directors, the Executives, as well as the other executives
of the Company, especially those involved in internal control, risk management, regulatory compliance and
information systems.
l) The sustainable development policy followed by the Company.
General Staff Regulation
The General Staff Regulation drafted as per the provisions of Law 1876/1990 and Article 10A (a) of Law
4404/2016 "Ratifying the amendment dated 24.6.2016 and codification into an integrated text of Concession
Agreement dated 13.2.2002 between the Hellenic Republic and Piraeus Port Authority S.A. and other
provisions".
The GSR is intended to regulate all employment relations, on the basis of the principles of equality and
transparency, with a view to ensuring the smooth and efficient operation of all Company Departments and
serving effectively the common interests of the Company and its staff.
Regulation of operation of Internal Audit Department
As a listed Company, the Company has an independent Internal Audit Department, the operation of which is
supervised by the Audit Committee.
Based on the Regulation of Operation of the Internal Audit Department, as approved by the Board of
Directors of the Company, the mission of the Internal Audit Department is to add value and improve the
operations of the Company, providing objective and risk-based assurance, advice, and insight. The Internal
Audit Department helps the Company to achieve its objectives, adopting a systematic, professional approach
to evaluating and improving the effectiveness of Risk Management, Internal Control Systems, and Corporate
Governance processes.
The main task of the Department is the in-depth audit of all the functions and policies of the applied Internal
Audit System, as well as the implementation of the decisions and instructions of Management and the
suggestion of any corrections or improvements of the system.
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During the year 2023, the Internal Audit Department, submitted five (5) internal audit reports according to
the Annual Audit Plan.
Also the Internal Audit Department provided periodic informational reports for the work performed to the
Audit Committee on a monthly, quarterly and annual basis and to the BoD on a quarterly and annual basis.
Internal Complaint Process (ICP)
As part of good governance policy and respecting Company’s shareholders, PPA S.A. sees every complaint as
an opportunity to assess business processes and improve them whenever possible.
The ICP offers the chance to get feedback on the business activities/operations, serves as a quick and efficient
mean of resolving any difficulties, if they arise and promotes good relationhips and communication between
the Company and its employees.
Complaints categories, include the following indicative cases:
01. Fraud
02. Internal Policy / Regulation / Procedure Violation
03. Data Privacy Violation
04. Corruption / Bribery
05. Human Rights Issues
06. Issues related to inadequate services
07. Issues related to health and safety
08. Issues related to management of the Company’s resources
09. Issues related to environmental protection and energy saving
10. Other
In cases of a complaint which involves a member(s) of the Board of Directors or the Chairman Board or the
CEO Board, IAD must immediately report the complaint to the Audit Committee, which will forthwith direct
the investigations and necessary actions as appropriate.
In cases of a complaint which involves a member(s) of the Audit Committee, IAD must immediately report the
complaint to the Board of Directors, which will forthwith direct the investigations and necessary actions as
appropriate.
On a monthly basis, the Internal Audit Department provides to Top Management (Chairman of the BOD, CEO,
Deputy CEOs, Assistant CEOs) information regarding the complaints it receives, the actions taken in order to
facilitate them and any proposed improvements that need to be implemented.
On a montly basis the Internal Audit Department provides to the Audit Committee relevant information.
During 2023, five (5) complaints were submitted through the ICP, for which the approved procedures were
followed.
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C. Certifications & Implementation of Standards and other requirements
Integrated Quality, Energy and Environmental System
PPA S.A. focuses its endeavors on the provision of high-quality services, that meet the clients’ needs and
expectations, while at the same time pursues to reduce its energy and environmental footprint. To this end,
PPA S.A. has implemented an Integrated Management System, that aligns with the requirements of ISO
9001:2015, ISO 14001:2015 & ISO 50001:2018 standards. With the aim to secure continuous improvement,
the effectiveness of the Integrated Quality, Energy and Environmental System, is assessed every year by the
Top Management, while internal and external auditors perform regular audits are performed to secure the
compliance with the standards’ requirements and the effectiveness of actions.
In 2020, PPA S.A. received the ISO 50001:2018 certification for its energy management in all its activities.
Furthermore, staying dedicated to its commitment to promote sustainability, has expand over the years the
certifications of ISO 9001:2015 and ISO 14001:2015, through all its activities:
➢ Provision of Port Cruise, Ferry, Ro-Ro and Container Terminal Services.
➢ Management of Logistics center.
➢ Provision of Dry-Docking Services for the Repair of Vessels (Two (2) Graving Docks at Akti Vasiliadi and
three (3) Floating Docks at Perama Ship Repair Zone) and sub-concessions of berthing posts and land space
for the repair of vessels (Perama Ship Repair Zone, Drapetsona Pier, DEI Pier).
➢ Port construction and maintenance projects management.
➢ Management for the Implementation of co-funded projects characterized as Public ones:
➢ Technical Infrastructure Works
➢ Procurement contracts and Services.
In addition to the Integrated Quality, Energy and Environmental System, PPA S.A. has implemented a Quality,
Environmental and Energy Policy, that clarifies its commitments and objectives related to minimization of its
environmental footprint and energy consumption, the criteria for sustainable procurement, the awareness
among staff to enhance the effectiveness of the Integrated Management System.
Quality, Environment & Energy Management Certification (ISO 9001:2015 - ISO 14001:2015 - ISO
50001:2018) & Emissions Management Verification (ISO 14064-1:2018)
In 2023, PPA S.A. continued to maintain for all activities the triple certification as per ISO 9001:2015, ISO
14001:2015 & ISO 50001:2018 standards for quality, environmental and energy management, following an
external audit by the certification body LRQA.
In parallel, PPA S.A. developed an Emissions Management System as per ISO 14064-1:2018 which was
integrated to the company’s certified Intergrated Management System and also changed the calculation
method of Emissions for 2022 in order to comply with ISO 14064-1:2018 requirements and meet the new
Climate Law’s requirements as well. Emissions Calculation for 2022 (Scope 1 and Scope 2) was verified by the
certification body LRQA as per ISO 14064-1:2018 and submitted to the e-platform of Natural Environment and
Climate Change Agency (N.E.C.C.A.). This calculation concerns emissions from PPA activities on which the
company has control, excluding the emissions of third parties who operate within PPA’s port area.
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Therefore, PPA extended its certified Intergrated Management System to also include the Emissions
Management System as per ISO 14064-1:2018, which involves the Quality, Environmental, Energy & Emissions
Management System that is applied in line with the above mentioned four (4) standards’ requirements.
Through this certified Intergrated Management System, PPA S.A. works in a consistent way to understand
customers’ needs and expectations, continually improve the level of services provided, address the
environmental challenges emerged in daily operation and improve the energy performance.
According to Quality - Environmental - Energy Policy, that is available on official website, the Company is
committed to improving the quality of the provided services, the environmental and energy performance and
setting quality, environmental & energy objectives to address risks and opportunities, significant
environmental aspects and significant energy uses. These objectives are continuously monitored and
reviewed.
Risks and opportunities are defined through systematic analysis of internal and external issues. Significant
environmental aspects are defined through assessment of the impact port activities pose or may pose to the
environment. Significant energy uses are defined through Annual Energy Reviews.
The certifications achieved demonstrate the company’s commitment to best practice for quality,
environmental, energy and emissions management.
PPA S.A. through these certifications as per these four (4) standards also contributes to the achievement of
UN Sustainable Development Goals.
Global Reporting Initiative (GRI) Standards for Corporate Social Responsibility and Sustainable Development
Reporting
The Corporate Social Responsibility and Sustainable Development Report has been prepared in accordance
with GRI standards.
AEOF license
PPA S.A. is an Authorized Economic Operator (AEOF/ Security and Safety). The relevant license facilitates the
implementation of customs procedures, providing a competitive advantage to PPA S.A..
D. Respect of Human Rights
Protection of personal data
The Company being in compliance with the European General Data Protection Regulation 2016/679 which
came into force on 25 May 2018 establishing a single legal framework across the EU for the protection of
personal data, as it is demonstrating through the year’s great dedication and sensitivity regarding the
management and protection of personal data, takes all necessary steps to ensure that its entire staff is
sensitized and constantly working to be compliant with the New GDPR Regulation.
The company recognizes that transparency and accountability are the basis for a trustworthy collaboration
with its customers, whereas legitimate and sensitive handling of personal data is equally a critical issue to the
company and its employees.
For any information or questions regarding the protection of Personal Data or the exercise of legal rights in
relation to Personal Data you can contact us at gdpr@olp.gr .
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Policy against violence and harassment
A specific policy is implemented to prevent and combat violence and harassment at work, promoting safety,
respect and trust in the workplace. PPA S.A. encourages all employees to communicate any incident of
violence and harassment, and to this end, we have defined a violence and harassment incidents reference
person, that handles the complains. The Company is dedicated to maintaining a healthy and inclusive working
environment and to secure transparent operation.
E. Supply Chains
1. Contracts and Subconcessions Regulations
The aim of the Contracts and Subconcessions Regulations is to create a stable reference framework for the
Company and its related traders, in the regulated sectors. This Regulation is more simplified in fulfilling the
procurement process. Furthermore, backbone of the Regulation is primarily to serve the interests of the
Company and the strict compliance towards obligations that arise from Concession Agreement, through the
proper selection of the most appropriate counterparty, in financial terms and in terms of adequacy.
Furthermore, the Regulation sets the general award procedures, with reference to the respective Declaration
and context for signing a contract for the case when specific setting of the award conditions. This option
provides greater flexibility and simplification of procedures, which may contribute decisively to the fulfillment
of the Mandatory Investment Program completion timelines.
With the application of Contracts and Subconcessions Regulations, Company fulfills its obligation to respect
the principles of transparency, publicity and equal treatment in the awarding of project execution, studies and
services, as reflected in the provision of art. 8 par. 2 N. 4404/2016.
2. Regulation for the award of works, Services, and Procurement
According to the approved Regulation for the award of works, Services, and Procurement, the Company
implements control procedures, under penalty of exclusion, through the obligation to submit certificates
issued by the local competent judicial authority:
a) participation in criminal organizations within the meaning of Article 2 of Council Framework Decision
2008/841/JHA of the Council of October 24th 2008 for the combat against organized crime;
b) bribery within the meaning of Article 2(1) of Council Framework Decision 2003/568/JHA of the Council of
July 22nd 2003 for the combat against bribery in private sector;
c) fraud within the meaning of Article 1 of the Convention to protect the financial interests of the European
Communities;
d) terrorism or terrorism – related crimes as defined in Articles 1 & 3 of Council Framework Decision
2002/475/JHA of the Council of June 13th 2002;
e) money laundering within the meaning of Article 1 of the Directive 2005/60/EC of the Council of October
26th 2005;
f) child labour and other offences concerning trafficking in human beings, as defined in Article 2 of the
Directive 2011/36/ΕC of the Council of April 5th 2011;
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g) embezzlement, fraud, extortion, forgery, perjury, bribery, fraudulent deliberate bankruptcy, according to
the Greek Penal Code or crimes similar in their specific aspects to the above, provided for in foreign legal
orders.
3. Procurements
For its procurement needs, PPA S.A., pursuant to the Contracts and Subconcessions Regulations (CEO’s
Decision No. 833/04-10-2019) fulfills the statutory obligation to observe the principles of transparency,
publicity and equal treatment in the award of works, studies and services, as reflected in the relevant
provision of Law 4404/2016 as in force.
In the year 2023, PPA S.A. conducted (completed and ongoing) more than 80 open tenders including selective
bid invitations with a total contractual value of more than € 17 million, with average number of bidders (an
average of 3 - 4 participants per tender).
The Company's main suppliers come from both the National and International markets. The rules of
cooperation between them are in line with the prevailing market conditions.
4. Establishment of Approved Contractors Register
Further to the already existing Contractors Register in Project categories and Implementation of European
programs and Tourist services, , PPA S.A. published and completed tender procedure for the creation of an
approved Suppliers Register in the categories of provision of handling – driving and labor services,
electomechanical type of supplies and spare parts, and supplies and servicers for IT department. In addition, 7
more Contractors Register for PPA’s needs have already been published/under evaluation of offers or are
ready to be published and will be concluded within the next few months. The contractors’registers created
following open invitation procedures for each category with specific criteria and will be evaluated regularly by
PPA. Suppliers will have specific rights and obligations. Regarding the process of creating the Contractors’
Register, Procurement Department has contacted operational Departments to investigate the needs, the
criteria, the prerequisites and the way they are evaluated through the implementation of transparency and
equal treatment criteria.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
F. Related Parties
The Company provides services to certain related parties in the normal course of business.
The Company’s transactions and account balances with related companies, as these are defined in IAS 24 ,are
as follows:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The revenues of € 87,384,929.25 (2022: € 82,720,264.87) (Note 24) from Piraeus Container Terminal S.A. are
related to the fixed and variable revenue from the concession agreement (PIER II & III) and revenues of €
1,872,721.29 (2022: € 6,333,807.55) related mainly loading/unloading and mooring.
The transactions with COSCO SHIPPING LINES GREECE S.A. relate mainly to services of cars transportation
from China for the year 2023 (Note 24) , as well as to ship services.
The transactions with COSCO SHIPPING GLOBAL EXH relate to exhibition expenses.
The transaction with COSCO SHIPPING TECHNOLOGY (Beijing) relates to software update .
The transaction with COSCO (HONG KONG) INSURANCE BROKERS L.T.D. of the current and the previous
period relates to the insurance coverage of PPA S.A. regarding third party liability, employer' s liability,
property and business interruption and directors and officers liability, according to article 17 of the
Concession Agreement (Law 4404/2016).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The transaction of the current and the previous year with COSCO SHIPPING PORTS LIMITED is related to the
purchase of software and tax interconnection services with the SAP software.
The transaction with COSCO SHIPPING TECHNOLOGY Co. LTD relates to software support costs.
Board of Directors Members Remuneration: During the year 2023, remuneration and attendance costs,
amounting to € 1,234,389.16 (31.12.2022: € 1,105,404.21) were paid to the Board of Directors members.
Furthermore during the year ended December 31, 2023 emoluments of € 637,839.12 (31.12.2022: €
338,557.41) were paid to Managers / Directors for services rendered.
The Extraordinary General Assembly of the Company's shareholders on September 23, 2019 approved the
long-term incentive bonus plan, which is cash settled of a certain number of Units. Beneficiaries of the
program are members of the Board of Directors, senior executives and other key management and business
executives who have a significant influence on the performance and uninterrupted operation of the Company
(Note 29).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
3. Responsible Business Conduct
PPA S.A. promotes Transparency and Accountability
starting from its own corporate Governance and
throughout the whole of its value chain.
Company’s contribution to the UN Sustainable
Development Goals:
PPA S.A. approach
The applied policies, processes and governance structure empower Company’s employees to practice and
promote the PPA S.A. values of responsible business conduct across Company’s value chain both upstream
and downstream. The detailed presentation of the Company’s management structure including the General
Assembly of Shareholders, the Board of Directors and all associated committees can be found in chapter
“Statement of Corporate Governance” as per the requirements of the applicable legislation.
Corporate culture and business conduct policies
PPA S.A. is committed to allowing zero tolerance for behaviors and practices that may promote corruption or
unethical competition. To communicate this commitment is established a series of policies that contain
guidance on how to avoid, prevent, mitigate and address such instances through the following codes /
regulations are made available first and foremost to Company’s employees as well as to all stakeholders:
The Code against Corruption and Bribery applies to all personnel and management executives as well as all
external associates, suppliers and contractors of the Company in the absence of other relevant applicable
legislation. In it, PPA S.A. instructs all individuals to among other things refrain from promising, offering or
suppling, requesting or accepting, illicit advantages of any kind and to follow the rule of law and ethical
business practices. Furthermore, it sets rules on the monitoring of compliance with the Code and outlines
responsibilities of involved internal functions/departments.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
ΡΡΑ S.A. is committed to its activities in accordance with the applicable National and European Legislation
and commercial customs and this commitment is incorporated into the above Code. PPA S.A. considers that
on Company level, participation in corruption phenomena inflicts the reputation, credibility of the Company
itself, causes penal consequences and other legal risks as well as financial damage (in the case of fines
imposition), increases operational cost, affects the loyalty and faith of Company personnel, creates negative
corporate culture and causes exclusion from potential business opportunities. It is also considered, as
"bribery" any offer of any object with value, with the view to influence a decision for conducting operational
activities with PPA S.A. or providing an illicit advantage, including assurance of cooperation, maintenance of
existing cooperations or provision of any inappropriate advantage, therefore it implements its professional
activity with strict ethical compliance procedures.
The purpose of the Code against corruption and bribery which approved by BoD decision 40/2022 is the
absolute compliance of the personnel of the Company, including managers, financial directors, Top
Management members and members of the Board of Directors external associates, suppliers and contractors
of the Company with the relevant European and Greek Legislation.
The Code of Conduct includes further principles on offering/accepting gifts and/or other advantages as well as
avoiding conflicts of interest in all respects of the Company’s activities. It goes further than the previous code
by establishing the overall framework of interaction with customers, suppliers and contractors, relations with
public officials and regulatory authorities and reaffirms its commitment to tackle corruption and bribery by
banning political contributions. Moreover, the Code incorporates the Company’s approach to identifying,
reporting and investigating concerns about unlawful behavior or behavior in contradiction of the Code or
similar internal rules. This can be accomplished through one of the following two mechanisms:
I. Through the Internal Complaint Process which is a specific mechanism that has been instituted by PPA
S.A. to protect anyone that submits a report, investigate thoroughly each case and take appropriate
actions to address violations of internal and external policies. The process is handled by the Internal
Audit Department (‘IAD’) or the Audit Committee of the BoD or the BoD itself, in cases that the issues
requires escalation and is characterized by confidentiality and high responsiveness.
II. Through theolp-audit@olp.gr email address which works similarly to the physical Internal Complaint
Boxes.
Both mechanisms are explained in detail in the Company’s Code of Conduct which is publicly available on its
website and are available to all stakeholders both internally as well as externally.
The Internal Operation Regulation presents the internal organizational structure of the Company and
promotes transparency through the clear lines of responsibility and the demarcation lines of responsibilities
and operational functions within the Company. It sets the rules of operation that all employees and executives
abide by and informs stakeholders of the due process followed for all activities inside PPA S.A. The rules allow
for no deviation and reinforce the culture of responsibility across all levels of the Company.
The Hellenic Corporate Governance Code (‘HCGC’) was drafted by the Hellenic Corporate Governance Council
in 2021, in replacement of the existing Code from 2013 and adherence to it is dictated by the applicable
legislation for listed companies. The corporate governance framework for Greek companies with securities
listed on a regulated market consists, of a couple of elements:
I. the adoption of compulsory legal rules and,
II. the application of the principles of corporate governance and the adoption of best practices and
recommendations through self-regulation.
Any deviations from the HCGC can be found in chapter “Statement of Corporate Governance”.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Prevention and detection of corruption and bribery
PPA S.A. follows relevant procedures with respect to training, due diligence, and the recording of transactions,
in order to properly implement the established Code against Corruption and Bribery. All internal investigations
are managed primarily by the Internal Audit Department or the Compliance Management Function and the
Risk Management Function and in cases that is deemed necessary they may be assigned to external auditors,
to guarantee the independence and integrity of the investigations.
Additionally, according to the article 17.4 of the General Staff Regulation (GSR) are clearly considered (among
others) as disciplinary offences the following:
- Solicitation or acceptance of any fee, consideration or favorable treatment from any person whose affairs
are managed by the employee concerned as part of his/her duties;
- Any action that is detrimental to Company's reputation, staff or any individual member of the staff, in
relation to their duties;
- Participation, whether directly or through third parties, in any auctioning procedure carried out by the
Company;
- Engagement in private activities for profit or in any form of remunerated employment, save where this is
requested and specifically authorized by the CEO. Such authorization is granted, provided that the employee's
performance within the Company is not howsoever impaired.
- Any act that constitutes a criminal offence, if committed on or off the PPA premises by an employee during
the performance of his/her duties or if committed on the PPA premises during or after the employee's work
time; In this latter situation, the act constitutes a disciplinary offence only if it is directly and seriously harmful
to the employment relationship.
- Failure to prosecute or sanction a disciplinary offence;
- Any acts or omissions committed by fault, potentially capable of causing material or moral damage to the
Company or to any member of its staff;
- Any act of mismanagement;
Also according to the article 17.6 of the GSR temporary or permanent suspension (dismissal) may be imposed
(among others) in respect of the following offence:
- Acceptance of any fee or consideration from any person whose affairs are managed by the employee
concerned as part of his/her duties;
- Characteristically improper or indecent conduct demonstrated by an employee either on or off Company's
premises;
Incidents of corruption or bribery
No instances of corruption or bribery and no breaches in related procedures and standards were recorded in
2023. Furthermore, no convictions or fines for violation of anti-corruption and anti- bribery laws were
enforced on the Company in 2023.
Management of relationships with suppliers
The management of relationships with suppliers and contractors of PPA S.A. is largely defined by paragraph 9
“Relations with Suppliers and Contractors” of the Code of Conduct as well as the Company’s Procurement
Regulation. Both documents are publicly available through the Company’s website informing stakeholders
(including those in the supply chain) of the general approach applied by PPA S.A. towards procurement of
goods and services.
Specifically, the Company in keeping with the principles of fair treatment and transparency applies a contract
award process for most supplies above the threshold of €2,700 which has been agreed internally. To further
ensure the integrity of the procurement process, PPA S.A. has established different teams involved in the
various stages of the process, namely: the Tender Management Team, the Tender Evaluation Team, and the
Supplier Management Leading Team.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
As the above-mentioned threshold that triggers the contract award process is fairly low considering the supply
needs of the organization, the majority of the suppliers are evaluated along personalized criteria based on the
specifications of the supplied goods or services and the quality certifications of individual equipment
manufacturers. These circumstances, narrow down the pool of available suppliers for any one item
significantly. Nevertheless, the teams responsible for the drafting and selecting of offers from suppliers, work
closely with the Quality department of PPA S.A. to ensure that the requested supplies and the (eventually)
awarded contracts are aligned with Company’s sustainable development priorities, including plans under the
Quality, Environmental and Energy management systems, certified according to the ISO 9001, ISO 14001 and
ISO 50001 standards respectively.
Finally, in cases of supplier/contractor employees involved in the provision of goods/services and actively
engaged in Company premises, the department(s) responsible for the specific function involved ensure the
supplier’s compliance with applicable labor legislation including but not limited to overtime and
compensation, occupational health and safety measures etc.
All of the above elements have been put in place by the organization to help prevent/mitigate risks related to
its supply chain and adverse impacts on sustainability matters, in accordance with the approach to
sustainability by PPA S.A.
Risk management
The Company’s approach to risk management is based on well-established governance processes and relies on
both individual responsibility and collective oversight, supported by comprehensive reporting. It balances
strong corporate oversight, with independent risk management structures within individual business units,
beginning with proactive engagement of the Chief Executive and the PPA S.A. Audit Committee in all
significant risk matters.
Sustainable development as well as operational excellence are the two main drivers of the Company’s risk
management outlook. In order to achieve the former, PPA S.A. employs bold strategies, characterized by
innovation and higher risk – higher reward plans, while maintaining the latter requires a low risk appetite and
minimal margins for error. Thus, the Risk Management function is a key element in PPA S.A. and is involved in
a broad range of activities where it is responsible for identifying and planning for the mitigation of potential
risks.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
4. Economic performance, comments on Financial Statements
A.Economic performance
International trade volumes depend on global economic conditions. The IMF’s
8
January estimations for this
year estimate GDP growth of 0.9% in the euro area and 3.1% globally for 2023 against global growth of 3.5%
in 2022 and 3.4% in the euro area. International trade is estimated to grow by 3.3% which is lower than the
historical average recorded by the IMF (4.9%).
The European Commission, in autumn 2023, forecasts that the eurozone economy will grow marginally by
0.6% in 2023 and 1.2% in 2024
9
. It should be noted, however, that in the current environment of economic
uncertainty created by inflation and geopolitical conditions in Eastern Europe and the Red Sea, inter-quarter
estimations have been revised leading to the worse conclusions.
The Greek economy is showing significant resistance to the international and uncertain economic
environment as GDP for 2023
10
was 2% and is estimated at 2.9% for 2024 as recorded in the Budget
submission
11
. It is noted that in November 2023 the European Commission recorded for Greece a GDP growth
estimation of 2.3% for 2024 and 2,2% for 2025
12
.
B. Comment on Financial Statements for the 2023
Revenues
The total revenues for the year 2023 amounted to € 219.8 million increased by 12.9% or € 25.2 million (2022:
€ 194.6 million). The increase is mainly due to the increase of all revenues sectors, however mainly from the
significant increase to the revenues of the cruise sector, the car terminal sector as well as the container
terminal and by 49.4%, 20.7% and 13.4% or by € 8.7 million, € 3.6 million and € 5.4 million respectively.
Moreover, there was an increase by 5.6% or by € 4.7 million in the revenue from the Pier II + III concession
agreement with PCT . Finally in the shiprepair sector there was an increase in revenues by 16.3 % or by € 1.7
million.
Cost and Expenses
The key operating costs mainly relate to the payroll costs which in 2023 show a significant increase and
amounted to € 65,5 million compared to € 58.0 million in 2022 (Note 29). The significant increase in payroll
and employee related costs during the current year is due to the increase in the Company's workforce
compared to the previous corresponding period year as well as to the implementation of the new Dockers'
Collective Agreement (from 1/7/2022) and employees which came into effect within the current year
(1/8/2023) and provides for increases and additional benefits in their wages. There was also an increase in
the provision for staff compensation (Note 17).
8
https://www.imf.org/en/Publications/WEO/Issues/2024/01/30/world-economic-outlook-update-january-2024]
9
https://www.hellenicparliament.gr/UserFiles/c8827c35-4399-4fbb-8ea6-aebdc768f4f7/12419112.pdf
10
https://www.statistics.gr/el/statistics/-/publication/SEL15/2023
11
https://www.hellenicparliament.gr/UserFiles/c8827c35-4399-4fbb-8ea6-aebdc768f4f7/12419112.pdf
12
Op.cit EU forecast
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
In regard to the remaining operating costs, except for payroll costs, they remained consistent to the prior year
figures except for the following:
The significant increase in various expenses is mainly due to the increase in promotion and advertising
expenses by € 0.6 million, in guard fee by amount of € 0.8 million and in travel expenses by € 0 .2 million. The
"Greek State Concession" fee presented an increase during the current year, by € 0.9 million or by 25.3%
which is mainly due to the increase in revenues of the current year compared to the fiscal year 2022 (Note
24).
Depreciation did not show a significant change during the current year, amounting to € 18.7 million
(31.12.2022: € 18.3 million) (Note 28).
Provisions for legal cases decreased significantly which during the current year amounting to € 1.3 million,
were reversed or used provisions amounting to € 4.7 million mainly due to legal cases which were finilized in
Company’s favor as well as an amount of € 0.8 million was transferred to the provisions for dowbtful debts.
During the previous year, provisions of € 0.2 million were recorded and were reversed or used provisions
amounting to € 2.1 million (Note 18 and Note 25).
A decrease was noted in “Third Party Fees” by € 0.7 million or 15.0% mainly due to the decrease of the use of
external partners for loading and uploading services (Note 25).
Other Income/Expenses
Other operating income for the current year showed a slight increase compared to the previous year
amounting to € 0.1 million or by 1.0% amounting to € 5.6 million (31.12.2022: € 5.5 million).
Other operating expenses for the year amounted to € 12.6 million compared to the corresponding year of
2022 (€ 16.8 million) presented a decrease amounting to € 4.2 million or by 25.0%. This decrease is mainly
due to the decrease of current years’ income tax fines and penalties from the audit of the tax authorities
concerning the year 2017-2019 amounting to € 5.8 million compared to the prior years’ income tax fines and
penalties from the audit of the tax authorities concerning the year 2016 amounting to € 7.8 million. In
addition, a decrease was noted to third party compensation amounted to € 2.4 million or 29.5%, which relate
mainly to a compensations paid to Company’s suppliers . The above decrease was slightly offset by the loss
from the destruction of machinery and the inventory of own-use tangible fixed assets of € 0.4 million in the
current year (Note 26).
Net impairment losses on financial assets
The net impairment loss on financial assets showed an increase during the current year and amounted to €
1.3 million while a prior years’ provision of € 0.1 million was used (31.12.2022: € 0.4 million). In addition an
amount of € 0.8 million was transferred by the provisions for legal cases.
Financial Expenses
In financial expenses during the current year an increase was noted by € 0.4 million or by 16.7% (31.12.2023:
€ 3.1 million instead of € 2.6 million in 31.12.2022), which is mainly due to a corrective commission amount
for the years 2016 to 2022 amounting to € 0.3 million (Note 27).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Financial Income
In financial income during the current year a significant increase was noted amounted to € 2.0 million or by
2,428.1% (31.12.2023: € 2.1 million instead of € 0.1 thousand in 31.12.2022), which is due to a significant
increase to the interest income of time deposits (Note 27).
Total Assets
Total assets at December 31, 2023 amounted to € 611.3 million, increased by 6.7 % or € 38.0 million
(31.12.2022: € 573.4 million).
The increase in total assets was mainly due to the following sub-items, namely:
• increase in cash and cash equivalents by € 31.0 million or by 30.9%
• increase of the unamortized balance of tangible property, plant and equipment by € 10.9 million or by
3.6% due to the additions € 27.9 million of the year reduced by € 16.8 million current year depreciation
and net value of write-offs-sales/transfers to intangible property, plant and equipment by € 0.2 million
• increase in intangible assets by € 0.5 million or by 31.3% due to the additions € 1.1 million of the year
reduced by € 0.6 million current year depreciation and net value of write-offs-sales/transfers to
intangible property, plant and equipment by € 0.1 million
This increase was mainly offset by:
▪ decrease of the deferred tax asset by € 0.7 million or by 19.4% (Note 9)
▪ decrease in right of use assets by € 1.9 million or by 3.4% due to the current year depreciation (Note 5).
Total Liabilities
Total liabilities as at 31.12.2023 amounted to € 256.3 million decreased by € 2.6 million or by 1.0%
(31.12.2022: € 258.9 million).
The fluctuation in total liabilities was mainly due to the following:
• increase in income tax payable by the amount of € 9.2 million or by 71.9% due to the significant
increase in taxable profits of the current year compared to those of the previous year
• increase in provision for staff leaving indemnities by € 2.5 million or by 24.8% due to the
implementation of the new Dockers' and employees Collective Agreement (Note 17)
• decrease in bank debt by € 6.0 million or by 18.5% due to the repayment of four installments of the
long-term loan (Note 19).
• decrease in the provisions for legal cases by the amount of € 4.3 million or by 22.5% ( as above “Cost
and Expenses” and Note 18)
• decrease in short-term and long-term lease liabilities by € 1.1 million or by 1.8%, due to the current
year payments of € 3.7 million, finance cost € 2.4 million and additions of € 0.2 million (Note 5)
• decrease in deferred income by € 1.1 million or by 3.4% (Note 22)
• decrease in grants by the amount of € 0.9 million or by 2.3% due to the current year’s depreciation
(Note 16).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
5. Principal Risks Analysis and Risk Management
A. Monitoring the supply chain with reference to the main suppliers and their cooperation rules
There are no suppliers, the interruption of which would jeopardize the operation of the Company in the
event of a temporary failure of supplies provision.
B. Other risks that are related to the activity or sector that the company is operating.
Risk of property loss
The Company takes all necessary measures to minimize the risk and possible losses of assets due to natural
disasters or similar related causes.
Property insurance
PPA S.A. has insured all its assets in accordance with the provisions of Article 17.1 of the CA with the Greek
State for the following indicative but not limited to perils:
• Fire, lightning, explosion, storm damage, aircraft crashes and named perils or Property All Risks,
based on new replacement cost of asset.
• The income loss due to disaster-related closing / business interruption of the business facility or
due to the rebuilding process after a disaster, i.e. storm, earthquake, flood, strikes, riots and
terrorist actions, has been insured.
Third Party Liability and Employer’s Liability
PPA S.A. maintains insurance in respect of third party liability in accordance with the provisions of Article
17.1 of the CA with the Greek State for all its activities.
Maximum Probable Loss (MPL) analysis
According to the requirements of the provisions of Art. 17 and Annex 17.1 of the CA, the company is in the
process of finalizing the Maximum Probable Loss (MPL) analysis.
The respective contract has been signed with a specialized consulting firm in the field of risk insurance.
Currently data collection has been completed and MPL analysis performed by the awarded consulting firm
is in progress. The updated first draft has been submitted and the MPL is under insurance coverage.
The MPL analysis includes as a minimum the following elements:
1. Estimation of Maximum Probable Property Loss and loss of income for normal risks, excluding natural
disasters (such as earthquakes, tsunamis, etc.).
2. Estimation of Maximum Probable Property Damage and Loss of Revenues in Disastrous Risks, and in
particular in the event of an earthquake.
3. Risk Accountability Quotient that will analyze and quantify the probable scenarios of liability losses,
including environmental liability, under the worst-case scenario.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Business Risks Associated with the Company's business activities
A detailed report on the main risks associated with the sector in which the Company operates is set out in
Chapter of the Non-Financial Report, which follows (Risk Policy and Risk Management / Major Business Risks
and Uncertainties).
Financial Instruments
Fair Value: The carrying amounts reflected in the accompanying sheets of financial position for cash and cash
equivalents, trade and other accounts receivable, prepayments, trade and other accounts payable and
accrued and other current liabilities approximate their respective fair values due to the relatively short-term
maturity of these financial instruments.
The fair value of variable rate loans and borrowings approximate the amounts appearing in the statements of
financial position.
The Company categorized its financial instruments carried at fair value in three categories, defined as follows:
Level 1: Quoted (unadjusted) values from active financial markets for identical negotiable assets or liabilities.
Level 2: Other techniques for which all inflows that have a significant impact on the recorded fair value are
identified or determined directly or indirectly from active financial markets.
Level 3: Techniques that use inflows that have a significant impact on the recorded fair value and are not
based on quoted prices from active financial markets.
During the year ended December 31, 2023 , there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfers into and out of Level 3 fair value measurements.
As at December 31, 2023 and 2022, the Company held the following financial and non financial instruments:
It is pointed out that the above financial instruments are presented in their history minus the accumulated
depreciation and any impairments and the above reference is made only for the purposes of better disclosure
completion.
Financial risk management:
The financial risks related to the Company and their respective management are as follows:
Credit Risk: The Company's Management estimates that its exposure to credit risk is limited towards the
contracting parties, - as a matter of policy - it receives advances payments or letters of guarantee for most of
its provided services . From the above applied policy are excluded customers who belong to the same group
of companies, as mentioned in note 32 "Related Party Transactions". In addition, the transactional activity
between the Company and its related party company, Piraeus Container Terminal SA, which is the Company's
largest customer in terms of volume, is mainly covered by the terms of the concession agreement between
them, which is under the supervision of the Greek State. It should be noted that despite the very significant
amount and range of related parties transactions, no credit event has occurred until now that could raise a
credit risk.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
In addition, the Company's cash at banks and time deposits are placed in bank financial institutions in Greece
and generally in European Union, with the following ratings (Moody's credit rating):
Foreign Exchange Risk: The Company is neither involved in international trade nor has any long-term loans in
foreign currency and therefore is not exposed to foreign exchange risk resulting from foreign currency rate
variations.
Interest rate risk: The Company’s borrowings consist of two loans in Euro and one is subject to fixed interest
rate and the other one to floating interest rate (Note 19). The Company does not use derivatives in financial
instruments in order to reduce its exposure to interest rate risk fluctuation as at the balance-sheet date. The
Company management believes that there is no significant risk resulting from a possible interest rate
fluctuation.
Following the ECB's decisions to proceed with successive interest rate increases after 11 years, order to
achieve the target of 2% inflation in the medium term in European Union, the Management is closely
monitoring the evolutions in the current year and considers that the risk from the change in interest rates has
increased compared to previous years. However, the Company's Management, believes that given the gradual
deceleration of inflation in the euro area since the summer, and the European Central Bank's decision to
pause interest rate increases for the first time in its October’s meeting in Athens, considers that any future
interest rate increase will not be significant. In any case, the Management of the Company does not consider
that this increase will have a significant impact on its borrowing costs and its creditworthiness or its financial
results, as the Company is not significantly exposed to bank borrowing, and especially to the risk interest rate
fluctuations. Additionally, in the context of the more effective managing of its assets as effectively but also to
the limitation of any potential impact of increased borrowing rates on its results, the Company's
Management, taking advantage of its strong liquidity, applies short-term reinvestment of these, taking
advantage of the increased deposit rates.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The table below presents and analyses the sensitivity of the result in relation to financial assets (cash on hand
and in banks) and financial liabilities (loans) of the Company to the interest rate risk changes assuming a
simultaneous change in interest rates by ± 100 basis points on the Company’s profit.
Liquidity risk: The effective management of liquidity risk is ensured by maintaining sufficient cash and the
availability of financing in case of need. Corporate liquidity risk management is based on the proper
management of working capital and cash flows.
The following table summarizes the maturity dates of the financial liabilities of 31 December 2023 and 2022
respectively, arising from the relevant contracts at unpaid prices.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Τhe above table includes the interest on long-term loans, which were calculated until maturity according to
the European Investment Bank quarterly information note for the 1st quarter of 2024.
* Trade payables do not have interest and are settled in up to 60 days. Other payables also do not bear any
interest and are settled in up to 12 months.
Capital Management
The primary objective of the Company's capital management is to ensure the maintenance of high credit
rating, and healthy capital ratios in order to support and expand the Company's operations and maximize
shareholder value. The Company's policy is to maintain leverage targets, according to an investment grade
profile. The Company monitors capital adequacy using the ratio of total debt to operating profits, which
should be lower than 9.80 based on the loan agreements (Note 19). The debt includes interest-bearing loans
and lease liabilities, while the operating profit includes profit/(loss) before taxes, financing costs and
depreciation.
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(amounts in Euro unless stated otherwise)
6. Environmental issues
PPA S.A. is committed to operate and grow responsibly towards the
planet through the implementation of Environmental, Energy and
Emissions Management Systems.
Company’s contribution to the UN Sustainable Development Goals:
Introduction
Recognizing its role as port leader in the Mediterranean
area, PPA S.A. promotes sustainability and takes action
to prevent and mitigate its environmental impacts, by
implementing policies and mechanisms in line with the
European, National, and International environmental
regulations.
The environmental impacts of PPA S.A.’s operation are
determined in the approved Environmental Impact Assessment Study. Within 2023, PPA S.A. received a new
Approval Decision of Environmental Terms from the Ministry of Environment & Energy, ensuring the
implementation of the updated Environmental Terms in order to prevent and reduce the identified impacts.
In this context, the Company has developed and implements relevant Environmental Monitoring Programs, as
these will be presented at the end of the chapter. The Approval Decision of Environmental Terms is valid for
15 years and includes the operation of the port of Piraeus as well as the construction of the improvement and
expansion projects.
PPA S.A. implements an Integrated Quality, Environmental & Energy Management System according to the
requirements of the International Standards ISO 9001:2015, ISO 14001:2015 and ISO 50001:2018. In parallel,
PPA S.A. developed in 2023 an Emissions Management System as per ISO 14064-1:2018 which was
incorporated in the Company’s certified Integrated Management System.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
According to PPA S.A.’s Quality, Environmental and Energy Policy, that is available on the Company’s official
website, PPA S.A. is committed to improving the quality of the provided services, the environmental and
energy performance and setting relevant objectives to address significant risks and opportunities. Risks and
opportunities are identified through systematic analysis of internal and external issues. Significant
environmental aspects are defined through assessment of the impact that port activities pose or may pose to
the environment, while significant energy uses are examined through Annual Energy Reviews.
Also, internal inspections are conducted regularly and top management, through the Management Reviews,
assesses the effectiveness of the Integrated Quality, Environmental & Energy Management System and
supports actions to ensure continuous improvement. Finally, the contribution of all employees to goals
achievement is highly considered by the Company which provides presentations and newsletters to increase
their environmental awareness.
Emergency Response
PPA S.A. implements Sea and Land Pollution
Emergency Plans, in accordance with the
OPRC90, the Law 743/1997, the PD 11/2002 and
the 2000 HNS Protocol. The Plan is approved by
the competent Authority and aims to describe
the actions to be followed by all involved staff in
case of a spill incident of oil or other harmful
substances in the sea area and on land area
under Company’s responsibility.
An emergency exercise is conducted in a yearly
basis at a different area of operation. In 2023, a Sea Spill Response Drill organized by PPA S.A. at Dry docks
area at Central Port. All employees are aware of the process to be followed when a spill or leakage observed
in order to activate the contingency plan which is mainly executed by a specialized contractor. As shown in
the below graph, in 2023 the Contingency Plan was activated 15 times for sea pollution incidents and 6 times
for land pollution incidents, significantly less times than 2022. It is worth saying that all incidents were minor
and addressed effectively as per PPA S.A. Emergency Plans.
The Port of Piraeus is committed to the principles of the ESPO Green Guide and sets goals
and targets for improving its environmental performance.
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(amounts in Euro unless stated otherwise)
Waste Management
Proper waste management is of high importance for PPA S.A. which has been implementing a waste
management system since 2009. The system includes ship generated waste as well waste from port facilities
and operations, promoting the principle of circular economy and aiming to natural resources preservation. All
waste generated is managed outside PPA S.A. facilities by licensed contractors. A record is kept of the
quantities received by the contractors and the treatment method followed, while a relevant report is
submitted annually to the Electronic Waste Registry of the Ministry of Environment and Energy.
Ship generated Waste:
Ship generated waste and cargo residues are subject to the specialized ship generated Waste Management
Plan which is approved by the competent Ministry, and follows the relevant European Directive, the
provisions of the International Convention on Marine Pollution and MARPOL 73/78. This Plan applies to all
ships calling at PPA S.A. port area. Based on the Plan, PPA S.A. operates a port reception system for the
collection and management of solid and liquid ship waste by licensed specialized contractors. Since the
beginning of the performance of the ship generated waste management plan no complaints from ships for
inadequate services have been reported.
An innovative sewage reception system has been implemented in the Cruise area of PPA S.A. There is a
permanent network allowing cruise ships to discharge sewage, connecting to an urban sewage network that
leads to the Wastewater Treatment Plant in Psytallia. This system, enhances efficiency, saves time, energy,
and fuel, while reducing air emissions and traffic congestion compared to using tanker trucks.
Waste from port facilities and operations:
Regarding the waste generated by port operations and facilities, there are specific waste streams that are
closely monitored under a special waste management system in order to enhance recycling, circular economy,
reuse and recovery of materials and to reduce the quantities sent for disposal.
The main waste streams that are recycled/recovered are paper, glass, packaging, plastic, empty ink bottles,
used batteries and accumulators, waste electrical and electronic equipment, lubricating oils, tires, wood
waste, metal waste, waste from plants, operational waste from workshops, operational waste from docks
(floating and permanent), etc.
The following table presents the overall port operations waste by type and treatment method:
2023*
2022
Hazardous waste (tn)
- Hazardous Solid waste
2,889
23
- Hazardous Liquid waste to recovery (effluent discharge)
617
889
Total hazardous waste
3,506
912
Non-hazardous waste (tn)
- Paper, plastic, metal, glass, wood, etc - Recycling
276
310
- Mixed household-type waste - Disposal
766
708
- Operational Waste to recovery - Recovery
40,204
498
Total non-hazardous waste
41,246
1,516
Total waste (hazardous and non-hazardous)
44,752
2,428
*The waste data for the year 2022 are finalized by registering the annual Waste Report of 2022 to the
Electronic Waste Register (HMA) of the Ministry of Environment and Energy. However, the waste data for
2023 have not been finalized yet in the HMA, they are file data of our company and may be configured slightly
differently upon the Report submission.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
It is crucial to note that both in 2022 and 2023, some extraordinary cleaning and infrastructure repair and
maintenance works took place generating in significant quantities of hazardous, recyclable and operational
waste not related to the normal operation of the port facilities. Therefore, the waste quantities between the
two years are not directly comparable.
One of these extraordinary maintenance works (not related to the normal port operations or facilities) in
2023, were extended dredging works that took place in the sea at ship repair area of Perama, which produced
significant quantities of waste (2,885 tons characterized as hazardous waste and 39,572 tons characterized as
operational waste from excavation driven to collective alternative management system). For better
understanding, the figures presented in the table above are divided into normal and extraordinary operation
quantities in the following table:
2023
2022
From
normal port
operations
From
etraordinary
works
Total
waste
From
normal port
operations
From
extraordinary
works
Total
waste
Hazardous waste (tn)
Hazardous Solid waste
4
2.885
2.889
3
20
23
Hazardous Liquid waste
(effluent discharge)
617
0
617
889
0
889
Total hazardous waste
621
2.885
3.506
892
20
912
Non-hazardous waste (tn)
Paper, plastic, metal, glass,
wood, etc
257
19
276
260
50
310
Mixed household-type
waste
766
0
766
708
0
708
Operational Waste to
recovery
620
39.584
40.204
486
12
498
Total non-hazardous waste
1,643
39,603
41,246
1,454
62
1,516
Total waste (hazardous
and non-hazardous)
2,264
42,488
44,752
2,346
82
2,428
Comparing waste quantities produced only from normal port operations, no significant change is observed
between 2022 and 2023 to all waste categories.
The increase at the “Operational Waste to recovery” in 2023 (from 486 to 620 tns) is mainly due to a
significant increase in solid waste generated from the operation of floating and dry docks in ship-repair area in
2023, which is justified by the increase in both the vessels docked and the working days of the docks in 2023
compared to 2022.
The following table shows the individual quantities of waste that were delivered to Alternative Management
Systems for the years 2022 and 2023 and are included in the "Operational waste of PPA S.A. facilities for
recovery" listed in the overall Table above.
Comparing the waste to alternative management systems for the two years, it is obvious that no significant
change was observed, except for ECDW due to the extraordinary dredging works at Perama.
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(amounts in Euro unless stated otherwise)
Waste to alternative management systems (tn)
*these waste are included in "Operational Waste to
recovery"
2023
2022
Used Tyres
20.27
33.79
Waste electrical & electronic equipment (WEEE)
12.83
13.78
Waste vehicle Accumulators
3.06
2.06
Waste electrical batteries
0.18
0.15
Waste lubricating Οils
30.2
10.79
Waste from excavation, construction and demolition (ECDW)
39,572.27
26.77
Energy & Emissions
Energy
Given that energy consumption constitutes a high concern from business and environmental perspective, PPA
S.A. implements an Energy Management System as per ISO 50001:2018. The Company determines, evaluates,
and addresses any possible energy risk, continuously improving energy performance. Significant Energy Uses
are defined through Annual Energy Reviews. In addition, during Management Reviews, all necessary
information and energy data, as well as the progress and effectiveness of implemented actions are presented
to Top Management for further decision making.
For 2023, the total energy consumption was 28,223 MWh, decreased per -7.4% in comparison with 2022,
while consisted of 58.6% electricity 39.5% by diesel fuel and 1.9% by unleaded gas.
2023
2022
% Change
Electricity (MWh)
16,535
17,911
-7.68%
Diesel (MWh)
11,153
11,983
-6.92%
Unleaded Gas (MWh)
534
575
-7.10%
Total Energy (MWh)
28,223
30,469
-7.37%
Total Energy (MWh) / Revenue (mil. €)
128.39
156.60
-18.01%
Renewable energy production
Recognizing the need for clean energy, in 2016, PPA S.A. invested in a 430 kWp Photovoltaic (PV) Plant within
the Container Terminal area. The PV power plant is connected to the Hellenic Electricity Distribution Network
Operator (HEDNO) and all the energy produced is supplied to the local medium voltage grid.
The below graph shows the energy produced from the PV Plant at the PPA S.A. facilities on an annual basis. It
is noted that energy production follows a similar pattern throughout the year. The slight decrease of the
energy production in 2023 is because of maintenance works carried out in 2023.
600
682
648
2023
2022
2021
Production of energy (MWh) from renewable
sources at the facilities of PPA S.A
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Emissions
Considering the worldwide effort to mitigate climate change through emissions reduction, PPA S.A. extended
its certified Integrated Management System to also include the Emissions Management System as per ISO
14064-1:2018.
Triggered by the first National Climate Law that came into force in 2022, the Company developed procedures
to measure, monitor and reduce carbon emissions.
In compliance with the requirements of the National Climate Law and the new Decision on the Approval of
Environmental Conditions of PPA SA, an action Plan to reduce greenhouse gas emissions is currently under
elaboration for the entire port area. The Plan will be finalized within 2024 and will be followed by the
implementation of its targeted measures-proposals for the reduction of the GHG emissions.
Scope 1 and Scope 2 that follow refer to emissions linked to PPA S.A. activities on which the company has
control, excluding the emissions of third parties who operate within PPA S.A.’s port area (Scope 3).
It is worth mentioned that as a result of the systematic approach that PPA S.A. manages Emissions related
issues, Scope 1 and Scope 2 Emissions were significantly decreased in 2023, as depicted in the following Table:
2023
2022
% Change
Scope 1 Emissions (tn CO2e)
3,485.54
4,081.15
-14.59%
Scope 2 Emissions (tn CO2e)
8,831.34
9,566.33
-7.68%
Total Emissions (tn CO2e)
12,316.89
13,647.48
-9.75%
Scope 1 Emissions (tn CO2e) / Revenue (mil. €)
15.86
20.98
-24.41%
Scope 2 Emissions (tn CO2e) / Revenue (mil. €)
40.17
49.17
-18.29%
Total Emissions (tn CO2e) / Revenue (mil. €)
56.03
70.14
-20.12%
Beyond the legislative requirements of Scope 1 and Scope 2 emissions, PPA S.A. is committed to support its
clients and their efforts towards decarbonization.
Onshore power supply to ships at Cruise and Passenger port areas
PPA S.A. through its participation in two (2) EU funded Projects: EALING for PPA S.A. Ferry berths and CIPORT
for PPA S.A. Cruise berths, has initiated studies on cold ironing, also called as onshore power supply., PPA S.A.
has initially started to study the provision of cold ironing at five (5) Ferry berths and four (4) Cruise berths. For
the five (5) passenger ships berths, technical (FEED), environmental and financial studies have been
completed, while for the four (4) Cruise berths they are in progress, will be completed within 2024.
Liquefied Natural Gas (LNG) Bunkering at PPA S.A. Cruise area
PPA S.A. has initiated studies on LNG Bunkering at Cruise vessels at PPA S.A.
Cruise area. LNG is considered a transition fuel towards decarbonization, and
LNG Bunkering requires special studies to be compiled and specific procedures to
be implemented to ensure safe operations.
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(amounts in Euro unless stated otherwise)
Climate Change Resilience & Adaptation
PPA S.A. in the frame of the prevention, mitigation of risk and the enhancement of the sustainable
development has already initiated the project “Climate Change vulnerability and adaptation study for Piraeus
port”.
The field of the study covers port’s projects, infrastructure and activities and is mainly based on the National
Climate Law and the Regional Plan of Attica for Adaptation to Climate Change Region (PESPKA).
The study aims to develop specific methodology, models and scenarios for the assessment of climate change
impacts, the assessment of vulnerability, risks and the proposal of corrective actions, review and evaluation of
the level of climate change adaptation and furthermore the development of prediction models.
Furthermore, PPA S.A. is studying Climate change’s potential impact at Piraeus port through participating to
the EU funded Project called ARSINOE (Climate-resilient regions through systemic solutions and innovations).
The aim is to identify Risks and Opportunities related to Climate and consider measures to enhance climate
change resilience and adaptation.
Onshore power supply to ships at Cruise & Passenger Port areas
PPA S.A., through its participation in two (2) EU funded Projects: EALING for PPA S.A. Ferry berths and CIPORT
for PPA S.A. Cruise berths, has initiated studies on cold ironing, also called as onshore power supply. PPA S.A.
has initially started to study the provision of cold ironing at five (5) passenger ships and four (4) Cruise berths.
For the five (5) passenger ships, technical (FEED), environmental and financial studies have been completed,
while for the four (4) Cruise berths they are in progress, estimated to be completed within the 1st semester of
2024.
Water
Drinking water for ports operation as well as for ships visiting the port is provided by the public water supply
network (EYDAP). No other private water supply or other licensed sources are used. PPA S.A.'s activities do
not involve any pumping of water from surface, ground or sea water and do not cause direct discharges of
water into any water body. There is any water quantities recycled or reused.
The following graph depicts the water consumption in reference to PPA S.A.’s facilities and the ships servicing
the port. The facilities water consumption shows a decrease -20.0% comparing to previous year, while the
ships’ consumption increased 19.6%.
2023
2022
% Change
Water consumed from Facilities of PPA S.A. (m
3
)
217,570
271,953
-20%
Water consumed from Ships Servicing the Port (m
3
)
499,606
417,953
20%
Total Water Consumption (m
3
)
717,176
689,906
4%
Total Water Consumption (m
3
) / Revenue (mil. €)
3,263
3,546
-8%
Biodiversity
PPA S.A. does not operate in a sensitive biodiversity zone. Relevant potential risks have been identified and
the Company implements a comprehensive biomonitoring program in the port’s vicinity aimed at protecting
the region’s biodiversity, based on regulations as well as the approved environmental terms of operation.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Environmental Monitoring Programmes
In accordance with the Approval Decision of Environmental Terms of PPA S.A. operation and staying focused
on its commitment for environmental stewardship, PPA S.A. has developed quality monitoring programs in
collaboration with universities and industry experts. The scope of the programmes is to prevent and control
any potential environmental impact reflecting the company's ongoing efforts towards continuous
improvement of its environmental footprint. The results of these programs are published on the website of
PPA S.A. in a yearly basis.
Noise Monitoring Program
Noise levels from sources related to the operation of the port (commercial, passenger, repair, etc.) are the
subject matter of this monitoring program. The noise monitoring program is conducted in cooperation with a
specialized partner and applies to the entire port area.
The indicators Lden, and Lnight, among others, are monitored at eight (8) locations by conducting 24-hour
ambient noise measurements. The program also includes four (4) traffic load measurement sites and a co-
evaluation of the measurement data obtained from three (3) 24-hour permanent Noise Monitoring Stations
(NMS) of PPA S.A..
The main results evaluation of the Noise Monitoring Program are:
• The noise levels in general are within the limits set in legislation.
• The road traffic noise consists a significant source of noise in the total area of the port (commercial and
central port).
• The port operations have a significant contribution to the noise level at commercial port and especially at
Container Terminals area.
PPA S.A. taking into consideration the data of the performed Noise Monitoring Program and having as priority
the mitigation of the noise impacts linked with port operations elaborates a specific Noise Mitigation Action
Plan that will be completed within the 2024.
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(amounts in Euro unless stated otherwise)
Air Quality Monitoring Program
Since 2009, PPA S.A. has been working closely with the National Technical University of Athens monitoring air
quality parameters through a special permanent monitoring station. The scope of this monitoring program is
to identify, quantify and evaluate the port's gas emissions, as well as to examine potential operational
techniques for a cleaner and healthier air in the port area. In addition, the Program has recently been
reinforced with three (3) additional permanent monitoring stations for specific atmospheric parameters.The
parameters monitored at the permanent station are nitrogen oxide NOx, sulphur dioxide SO
2
, carbon
monoxide CO, Ozone Ο
3
, particles PM
10
and PM
2.5
, and hydrocarbons BTEX.
According to the annual report of the Monitoring Program for the year 2023, the following main conclusions
emerge:
• Volatile organic compounds (VOCs) are at low concentration levels. The annual average benzene
concentration is below the limit value of 5.0 μg m-3. The average value of benzene, toluene,
ethylbenzene, m+p-xylene and o-xylene were determined to be 3.3, 9.1, 2.0, 6.1 and 2.1 µg m-3
respectively. The results do not differ from those of the previous measurement interval.
• Suspended particles show a variation in their concentrations. The annual mean value of particulate
matter (PM10) is 43,6 μg m-3 and exceed the limit of 40 μg m-3. During the measurements the daily
limit of 50 μg/m3 was exceeded on 85 occasions. The exceedances are mainly observed in the winter
period and are related to the well-known problem of smog due to combustion and less so in the
spring period due to the transport of dust from other areas.
• The annual mean value of NO2 is 30.1 μg m-3 and does not exceed the annual limit of 40 μg m-3.
• NO2, SO2, and CO did not show exceedances of the hourly mean value in the first and second, daily
mean value in the second and eight-hourly mean value in the third.
• O3 did not show any exceedance of the hourly average limit (update limit) nor of the 8-hourly average
limit.
Sea Water and Sediments Monitoring Program
Seawater and Sediment Quality Monitoring Program is conducted in cooperation with the Laboratory of
Health Technology of the School of Civil Engineering of the National Technical University of Athens. The scope
of this program is to perform qualitative assessment in the entire marine area and propose improvement
actions when deemed necessary.
In more detail, the Sea Water Monitoring Program constitutes of an analysis of 20 sea samples twice a year.
The samples are analyzed for the following parameters: a) general physicochemical parameters (temperature,
pH, salinity, conductivity, total dissolved solids, dissolved oxygen, turbidity, transparency, coloration,
suspended solids), b) nutrients (orthophosphates, ammonium nitrogen, nitrite nitrogen, nitrate nitrogen), c)
heavy metals (nickel, lead, copper, iron, chromium, zinc, cadmium, mercury, arsenic), d) microbiological
parameters (total coliforms, E. Coli, enterococci), e) organic pollutants (hydrocarbons and TBT (tributyltin)).
Sea Sediments Monitoring Program includes an analysis of 10 sediments samples twice a year. The samples
are analyzed for the following parameters: a) heavy metals (nickel, lead, copper, iron, chromium, zinc,
cadmium, mercury, arsenic, manganese), b) PCBs (polychlorinated biphenyl) related compounds, c) PAHs
(polycyclic aromatic hydrocarbons), d) TBT compounds, e) TOC (total organic carbon).
The results of each program are submitted on a annual basis to relevant authorities and also included in the
environmental report which is published in the Company’s website.
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(amounts in Euro unless stated otherwise)
7. Labor issues
PPA S.A. focuses on its people, supporting them in their personal and
professional development.
Company’s contribution to the UN Sustainable Development Goals:
Introduction
Promoting equal opportunities and protecting diversity are key principles of the Company. Management does
not discriminate in recruitment / selection, pay, education, job assignment or any other work activities. The
factors that are exclusively taken into account are person's experience, personality, theoretical training,
qualifications, efficiency and abilities.
The Company is in favor of respecting the diversity of each employee and does not accept behaviors that may
discriminate in any form whatsoever. Liable to article 11 b of GSR, the Company, as employer, applies “the
principle of equality in all respects in its employment relations, including the equal treatment of male and
female employees”.
PPA S.A. strives to ensure a productive, safe, and inclusive working environment, that will enforce our people
to stay resilient in the continuous changing world. The Company primarily invests in employee training, to
expand their capabilities, while implementing a meritocratic approach for the recruitment process.
Our approach is based on the following pillars:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
A. Recruitment and Retention
At 31/12/2023 PPA S.A. employed 1.018 employees. From this staff:
- 152 (15%) were women and 866 (85%) men
- 768 employees (75,5%) covered by collective labor agreements,
- 247 employees worked on individual contracts (Company Executives, Managers, Deputy Managers, and
Assistant Managers, Employees, etc.).
- 2 were trainee lawyers and 1 was employed on a project contract basis.
In addition, there were 50 employees under labor contract of private law for a fixed period.
Of the 159 employees assigned in responsibility positions on various tiers of the company's hierarchy
(manager, deputy manager, assistant manager, head of sector, superintendent, supervisor), 118 (74%) were
men and 41 (26%) were women.
The women participation among manager, deputy manager, and assistant manager positions reached 36,2%.
The gender difference in the Company's staffing is mainly attributable to the labor-intensive characteristics of
the main work items of PPA S.A. (dockworkers, operators, lifting equipment operators, heavy-duty drivers). In
the 2023’s recruitment announcements there were no gender exclusion criteria.
2023
2022
866
Men
822
152
Women
140
1,018
Total
962
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(amounts in Euro unless stated otherwise)
B. Training and professional development
Education and training programs
The Company, as employer, is liable to ensure, within its powers, that the employees gain all professional
knowledge and are offered good opportunities to develop their skills and maximize their efficiency, to the
benefit of the Company but also for the development of their own career and personality.
Staff training is one of the Company's development objectives, which improves the quality of the services
rendered by the Company and the Company's overall productivity. In this context, the Company plans and
subsidizes staff training programs, either on its own or in cooperation with third-party educational/training
organizations. The staff shall participate in these programs at Company's cost.
Employee's career development
According to article 7.1 of GSR each employee's career development depends primarily on their:
1. Professional experience and scientific expertise;
2. General performance while on duty, primarily in terms of efficiency, initiative and responsibility;
3. Planning and coordination skills;
4. Role in improving the efficiency of inferiors and encouraging them to improve their working
performance;
5. Ongoing training, primarily attendance of educational/training seminars and involvement in projects
or studies relating to their work post.
PPA S.A. strives to offer added-value training to its employees, in order to respond adequately to specific job
requirements, as well as to build new capabilities, allowing them to effectively adopt to the continuing
changes. Training programs cover a wide range of aspects, among others, related to health and safety,
environmental protection, and management systems.
The below graghs present useful information regarding the employees training in terms of main categories of
training subject and staff category for 2023.
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(amounts in Euro unless stated otherwise)
Induction Training
PPA S.A. places great emphasis to the smooth and efficient induction of all new employees in their new role.
To this end, we have implemented an induction training program including specific key milestones.
On the job training is also a crucial part of induction training. New employees are trained under the guidance
of their direct supervisor as regards their new role, duties and responsibilities and other important job-related
issues. When all stages are completed, a checklist that certifies the successful accomplishment of induction
training is signed.
8,721
training
hours
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C. Performance evaluation
PPA S.A. recognizes the importance of performance evaluation for the continuous improvement of its
employees, the recognition of their progress and the alignment with the Company’s goals and overarching
strategy. In 2023, a Competency model and Managers’ Assessment is implemented, considering two
managerial levels, Deputy Manager/Assistant Manager and Department Manager/Chief Deputy. The
competencies of each level were clearly defined, and an online assessment was conducted based on their
defined competency set. With the aim to improve their capabilities, all participants received training
individual reports were delivered.
D. Communication Channels
The Company, as employer, is liable to (articles 11 e, f, g of GSR):
- Ensure that the trade unions of its employees are regularly informed of all staff-related matters and
of the Company's business activities in general, where those have an impact on employment
relations;
- Not intervene in any manner in the legitimate trade union activities of employees;
- Promote interactive discussion with the representatives of employees, especially with any first-degree
and second-degree trade unions representing its employees in the context of collective autonomy and
informed dialogue.
In PPA S.A. are active total four (4) primary Unions (Union of Permanent Employees, Union of Technicians and
Operators, Union of Dockworkers, Union of Supervisors & Foremen) and one (1) secondary Union (Federation
of Permanent Port Employees of Greece). The Management of the Company is in close collaboration with
employee representatives in order to achieve the proper functioning of its services and to promote the
common interest of the Company and its employees.
The Management of the Company collaborates with Unions representatives and attempts to conservate
communication channels, ensuring the on-time, holistic and two-way communication about important
employee issues, as well as business decisions. The Company promotes dialogue, and, in this context, regular
meetings are held, ensuring the complete information, and promoting union engagement.
As a result of successful completion of discussions and good cooperation, the PPA Management with the
Union of employees’ representatives and the Union of Dockworkers came to an agreement on the signing of
the new Collective Labor Agreement with a three-year period.
The CLA provides for gradual increases as well as additional benefits, highlighting the commitment of both
parties in a common path for the achievement of the Company's operational goals, mainly focusing on a
modern working environment and with primary objective to maintain the strong development rates of the
Port of Piraeus.
Mutual and open communication is a main aspect for Company’s smooth and efficient operation. To this end
the Company implements various communication channels, for its people to stay informed about several
corporate issues and forthcoming changes. More specifically the following communication channels exist:
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• Office Automation System (OA) System that accelerates the completion of internal processes
• Email
• Corporate announcement board
• Newsletter
• Portal, through which employees can process their requests
E. Additional Social Benefits
Under current operational collective labor agreements, the Company offers to its staff additional social
benefits. In particular, the Company grants interest –free loans to its employees up to amount of 3.000 € to
cover exceptional and unforeseen needs, wedding assistance, creches and camps costs for the children of
staff, prizes for the children of staff with excellent school performance, donation of Christmas and holiday
gifts that apply for all employees without any discrimination.
In particular for 2023, there were provided:
o 24 awards of excellence, versus 39 in 2022,
o 8 marriage grants, versus 12 in 2022,
o camping allowance for 123 employees’ children, versus 96 in 2022,
o loans for 147 staff members versus 140 in 2022
o Sponsorships to 4 children for exceptional distinctions on sports versus 3 in 2022,
o nursery allowance for 59 employees’ children versus 46 children in 2022.
o Christmas and holiday gifts and food vouchers for all personnel
F. Parental leaves
During 2023 17 employees of PPA S.A. took parental leaves, 13 men and 4
women. After the end of parental leave 15 employees returned to work, all of
which were employed 12 months after their return.
100% of employees
that were entitled,
took parental leave
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(amounts in Euro unless stated otherwise)
8. Health & Safety
PPA S.A. cares about the Health and Safety of its people and applies all
appropriate measures to this direction.
Company’s contribution to the UN Sustainable Development Goals:
Introduction
PPA S.A. is committed to provide a healthy and safe working environment for all employees and contractors.
In compliance with all applicable legislation, the Company identifies possible hazards related to the activities
performed and proceed with risk mitigation measures when deemed necessary.
In particular the Company, as employer, is liable (article 11.c of GSR) to take all necessary steps to ensure
health and safety at the workplace.
The Company is liable to ensure proper health and safety conditions for all employees and installations under
its responsibility. For that purpose, it is liable to apply proper health and safety rules by means of special
safety regulations, circulars, announcements and instructions. In particular, the Company is liable to (article
12.3 of GSR):
1. Ensure, carry out and supervise, through its duly authorised bodies, the implementation of all preventive,
operational or corrective measures and procedures necessary to ensure safe execution of all Company
operations;
2. Train its staff to promptly identify all risks and handle same efficiently, in line with the applicable safety
procedures;
3. Keep the staff thoroughly informed of all applicable regulations establishing minimum health and safety
standards at the workplace, as in force from time to time.
Safety at work for employees is a top priority and a prerequisite for the operation of the Company.
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(amounts in Euro unless stated otherwise)
Hazard Identification and Risk Management
An Occupational Risk Assessment Study has been performed for each specific job position and is updated
when required while external expert professionals have been engaged in the safety manuals drafting for
specific operational areas (projects construction and engineering). The aim of the study is to identify potential
Health and Safety hazards in the workplace, follow a Risk Assessment process and if deemed necessary, add
safety barriers in the system though procedures or other mitigation measures.
This study constitutes a key component of the Health and Safety SOPs which consecutively create a Health
and Safety booklet dedicated to each task. This booklet in conjunction with the on-the-job training, create an
awareness shield towards the Health and Safety of each employee.
Safety Engineers
PPA S.A. has 2 safety engineers, who provide their technical knowledge and
experience regarding the Health and Safety of employees, as well as the
prevention of occupational accidents.
It is worth mentioned that the one safety engineer has considerable expertise in
shipyard operation due to the technicalities of this operation.
Occupational physician
The Company provides an occupational doctor service as per current legislation,
as well as additional nursing staff, with an advisory role for the employer and
employees, on issues related to physical and mental health.
Emergency support
In high-risk areas, such as the Container terminal and Ship Repair Zone, two
ambulances staffed with trained rescue personnel are standby and available 24
hours a day to cover emergencies that may occur in these areas.
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Health and Safety Committee Establishment
Company employees have established a Workers’ Health and Safety Committee (W.H.S.C.), consisting of their
elected representatives in the company.
W.H.S.C. or the representative is a consultative body and has the following responsibilities:
(a) studying the company working conditions, proposes measures to improve the working conditions as well
as the working environment, monitors compliance with health and safety measures and contributes to their
implementation by employees,
(b) in cases of serious labor accidents or related incidents, proposes appropriate measures to prevent
recurrence,
(c) highlights the occupational hazard in workplaces or work positions and proposes measures to address it,
by participating in this way in the formulation of company's policy for occupational risk prevention,
(d) is informed by the management of the occurring occupational accidents’ and occupational diseases’ data,
(e) is informed for the introduction of new production processes, machinery, tools and materials to the
company, or the operation of new installations, insofar as they affect health and safety,
(f) in the event of immediate and serious risk, invites the employer to take the appropriate measures, without
excluding the disruption of the machinery or the installation or the production process,
(g) may seek the assistance of experts on Workers’ Health and Safety Matters, with the agreement of the
employer.
Health and Safety Training and Communication
PPA S.A. considers training and regular communications as a
catalyst in the effort to build a direct and honest relationship
with employees, as well as to cultivate the safety culture of the
organization.
In conjunction with the H&S training program in place, the
Company maintains personnel informed and aware through
notices, and instructions, issued by Human Resources or Safety
department. H&S Awareness campaigns are also organized by
the occupational physician and may be triggered by various
topics, such as the breast cancer campaign that took place in
2023.
For 2024, the Company aims to enhance the communication
channels establishing a monthly H&S newsletter.
Health and Safety Performance monitoring
PPA S.A. monitors the performance on Health and Safety issues conducting regular audits, as well as using
specific indicators based on international standards. The audit findings are described in audit reports which
delivered to Management Team and further discussed in Management meetings in conjunction with the H&S
indicators under monitor.
13 seminars
in H&S
issues
1,342
participants
4,470
training
hours
2023
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(amounts in Euro unless stated otherwise)
2023
2022
Men
Women
Total
Men
Women
Total
High-consequence work-related
injuries (recovery> 6 months)
0
0
0
0
0
0
Other employee incidents that
resulted in absence from work (>3
days sick leave)
9
0
9
11
0
11
Other employee incidents that
resulted in absence from work (<3
days sick leave)
5
0
5
6
0
6
Frequency Rate (FR)
1
8.55
0.00
7.46
10.99
0.00
9.56
Severity Rate (SR)
2
90,34
0,00
78,88
440.09
0.00
382.91
Absenteeism Rate
2.89%
2.78%
2.88%
4.05%
2.62%
3.85%
Occupational diseases recorded
0
0
0
0
0
0
Fatalities
0
0
0
0
0
0
1
Frequency Rate (FR): (number of incidents resulting in absence from fulltime work / employee hours worked)
x10
6
2
Severity Rate (SR): (number of days absent from work due to accident / employee hours worked) x10
6
2023
2022
Number of medical transfers to hospitals from Container Terminal
142
114
Number of medical transfers to hospitals from Ship Repair Zone
18
19
Health and Safety procedures
Standard Operating Procedures (SOPs): Health and Safety (H&S) processes shape Standard Operating
Procedures (SOPs) which are incorporated in the Quality Department Procedures Manual. The
implementation of the procedures is supervised by the Heads of operational activities in daily basis but also
checked by the Security Department which conducts regular audits and inspections at all port areas.
Emergency: PPA S.A. has developed a Contingency plan as per Authorities requirements. The scope of this
plan is to set the framework of actions to be followed and responsibilities to be assigned in a case of
emergency, such as fire or earthquake. In addition, each department has established its own response plan
for safe operation in extreme weather conditions.
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The Contingency plan is regularly reviewed and validated through emergency drills with the participation of
the employees. PPA S.A. also joins emergency exercises organized by other operators in the port examined
scenarios such as fire in a ship or oil leakage in the sea.
In 2023, the Company executed an Evacuation exercise at Car Terminal and aims to perform relevant
exercises in all port facilities within 2024.
Management Health and Safety Review: The Management Team of the Company is kept informed and aware
of Health and Safety related issues through the weekly operational meeting. During this meeting, Security
Department informs Management Team for recorded incidents and any other related issues that may have
been arisen. Further mitigation or corrective actions may result from this meeting as a management decision
ensuring a healthy and safe working environment for all employees.
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9. Social Issues
Community is an integral part of PPA S.A. operation, and Company’s
continous attempt is to create beneficial relationships of mutual respect
and trust.
Company’s contribution to the UN Sustainable Development Goals:
Introduction
The Company pays particular attention to social contribution, as demonstrated and expressed through the
timeless efforts and initiatives of both Management and Employees. The Company aims to contribute to the
development of society and especially the creation of added value for the communities that surround it.
The Company collaborates with charitable organizations and government entities, while actively supports
diverse beneficial initiatives for vulnerable social groups and the broader society. Simultaneously, PPA S.A.
empowers the engagement with national and international academic community, aiming to support the
exchange of knowledge. Specifically, Company’s social contribution is based on the following main pillars:
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Educational visits
Recognizing that the connection between academic institutions and the job market is crucial to the economic
growth and the successful integration of youth to the business world and having as priority the need to
support the new generation and broaden knowledge through the educational process, PPA S.A. through
educational visits and guided tours in its premises, provides the opportunity to get acquainted with the
objects of operation.
A large number of pupils and students of educational institutions of all levels, from Greece and abroad, visit
the PPA S.A. installations every year.
In 2023, PPA S.A. hosted students from allover the world strengthening our relationships with international
academic community and creating essential communication channels, while empowering exchange of
knowledge and expertise. Specifically, 34 visits were conducted, and 628 students visited our facilities,
increased by 17.6% in comparison to 2022.
Specifically, postgraduate students from the MBA of Ohio University and the University of Florida Warrington
College of Business made an educational visit to the Port of Piraeus.
As part of the "Youth Plus" initiative, 14 students from ten different departments of Tsinghua University
visited PPA S.A., strengthening cultural understanding between China and Greece.
Moreover, students and their assistant professor from the World Maritime University of IMO in Malmo,
Sweden, visited PPA S.A., providing us the chance to introduce them to the Hellenic Maritime Community.
In 2023, International Marketing students from the University of Colorado have visited the Port and got
informed about the Port’s services, activities and its significant role in the Greek and global markets.
Social engagement
Company’s commitment to community contribution, includes a variety of actions, promoting social
engagement, well- being and equal participation to community events. Through its social responsibility
program, PPA S.A. has implemented actions that beneficiate local people, vulnerable social groups, as well as
Company’s employees and their families.
2023
2022
Number of
visits
Number of
people
Number of
visits
Number of
people
SECONDARY EDUCATION
3
56
4
94
HIGHER EDUCATION
21
496
18
360
OTHER INSTITUTIONS
10
76
1
80
TOTAL
34
628
23
534
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(amounts in Euro unless stated otherwise)
Annual extensive corporate responsibility program
In 2023, PPA S.A. supported actions with multiple beneficiaries, including local community, surrounding areas
and employees, covering diverse needs. More specifically, 4,000 gift vouchers were donated for the children
of members of the Trade Union of Metal Workers of Attica and Ship Repair Industry of Greece and those of
the neighboring municipalities. More specifically, the Mayors of Piraeus, Salamina and Perama received 3,000
gift vouchers for children, while extra vouchers were given to other social structures.
Moreover, during 2023 PPA S.A. continued to support in a monthly basis the local Social Grocery Stores by
purchasing essential products and food, as well as the love- sharing meals of Holy Metropolis of Piraeus.
Finally, PPA S.A. rewarded exceptional children of employees with substantial cash prizes to recognize their
academic achievements.
35
th
Vartzakeio Road Race
PPA S.A. supported the Vartzakeio Road Race - Revival of the Piraeus Tour, an event with more than 1,000
runners. This event aims to foster a culture of sports and well- being, while highlighting the cultural aspects
and the allure of the city of Piraeus.
OLP-COSCO Europe Trophy Grand Final
PPA S.A. supported the OLP-COSCO Europe Trophy Grand Final at Piece and Friendship Stadium as Title
Sponsor, during which Olympiacos Table Tennis Team won for the first time.
FISU Summer World University Games 2023
PPA S.A. supported the Greek athletics delegation at the FISU Summer World University Games 2023 in
Chengdu, China, helping them achieve an exceptional performance.
Supporting the Greek Ministry of Shipping and Insular Policy
With the aim to temporarily cover the housing needs of the Underwater Operations Unit, we provided the
Ministry of Shipping and Insular Policy with the appropriate equipment and infrastructure in the "pentagonal
hall", part of the former "Pagoda" exhibition center. Specifically, a total area of 2,800 m
2
was provided with 15
prefabricated isobox houses and storage spaces, while PPA S.A. undertook the renovation expenses.
Solidarity
PPA S.A. recognizes the importance of helping those in need and support people who have experienced
several crises, by providing them basic necessities. In collaboration with charitable organizations and
government entities, in 2023, the Company supported people in need in Greece and abroad.
Supporting the work of "MISSION": PPA S.A. supported the humanitarian and social work of the Charitable
Organization "MISSION" of the Holy Archdiocese of Athens, by providing storage space for humanitarian aid
aiming at covering needs from natural disasters in Greece and abroad. Additionally, PPA S.A. and the Charity
Organization "MISSION" of the Holy Archdiocese of Athens, jointly provided humanitarian aid, offering actual
support to flood victims in local communities of Thessaly. The humanitarian aid included bottled water
multipackages and long duration food, household cleaning products and personal hygiene and care items,
were delivered to the Region of Thessaly in Larissa. The purpose of the joint synergy was the immediate relief
of those affected by the severe weather conditions of ‘Storm Daniel’.
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Humanitarian aid missions: In collaboration with the Ministry of Foreign Affairs, the Company contributed to
the support of people in need in Syria and Turkey. Specifically, a ship offered voluntarily by Melina Travlos's
company, Neptune Lines Shipping & Management Enterprises carried 250 cubic meters of humanitarian
supplies and essentials gathered by Municipalities, Administrative Regions, and institutions of the nation
departed for Turkey.
The Company’s annual extensive corporate responsibility program once again reached its peak in this festive
season with a series of charitable and support initiatives: PPA S.A. once again this year implemented a series
of diverse actions and initiatives of generosity, charity and support, directed towards the local community,
children, as well as the Company's own employees and their families.
Specifically, the PPA's management donated 3,000 gift vouchers to the Mayors of Piraeus, Salamina, and
Perama for the children of the neighbouring municipalities, as well as 1,000 gift vouchers were provided to
the children of members of the Trade Union of Metal Workers of Attica & Ship Repair Industry of Greece. Gift
vouchers were also given to other social structures in the wider region.
PPA continues its active support of local Social Grocery Stores by purchasing essential products and food on a
monthly basis to sustain their operation. Also, in collaboration with the Holy Metropolis of Piraeus, PPA
amplified the charity work of the Metropolis by supporting their love-sharing meals initiative.
Finally, the Company's facilities at the Cruise Terminal B -Themistoklis, were transformed into a festive setting
to host PPA's Christmas celebration. The event was dedicated to the Company's employees and their families
who, it is worth noting, represent a significant portion, exceeding 40% of the local community. Furthermore,
PPA's management extended their gratitude to the employees and their families by offering gifts, including
gift vouchers for supermarkets and toy stores. In line with tradition, PPA rewarded 24 exceptional children of
employees with substantial cash prizes to recognize their academic achievements.
Social contribution
Caring for the society
PPA S.A. focuses on implementing impactful initiatives that cover a wide range of social needs. In 2023, the
total amount of our contributions was 524,624 as described in the table below:
2023
2022
% 2023/2022
Economic support of vulnerable social groups of
neighboring municipalities, orphanages, special
schools etc
176,953
174,586
+1,36%
Facilitating the charitable effort of the
Holy Metropolis of Piraeus,
Nikaia and St. Nicholas Church
41,240
40,000
+3,10%
Facilitating sports clubs and athletes
135,010
102,221
+32,07%
Aiding cultural associations of Piraeus Region
87,500
15,000
+483,33%
Other donations
83,921
276,090
-69,60%
TOTAL
524,624
607,897
-13,69%
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(amounts in Euro unless stated otherwise)
Concession Fee
PPA S.A. pays to the Hellenic Republic an annual concession fee which, equals to three point five percent
(3.5%) of the annual Consolidated Revenue of the Company. With effect from the Effective Date of the new
concession agreement, the annual Concession Fee shall not be less than € 3,500,000. Further to the
Concession Fee, PPA S.A. pays all taxes, duties, levies, VAT, contributions and charges as imposed by generally
applicable tax law. No special privilege arising from Concession Agreement in connection with tax matters is
given to the Company.
Caring for people with mobility problems
PPA S.A. takes care to eliminate the difficulties faced by people with disabilities in the use of the Cruise and
Ferry port facilities and their movement within the passenger port. Within this concern, the following actions
are followed:
• Ferry passengers are provided with full discount/exemption for their embarkation and disembarkation, in
accordance with the applicable law.
• Employees, drivers, dockworker’s supervisors and foremen working in Cruise and Ferry Department have
participated in seminars on the management and servicing of people with mobility problems and people with
disabilities in general.
• Accessibility facilities are provided at Cruise and Ferry terminals.
• Meeting points are available at Cruise Terminals for passengers with mobility problems.
• Toilets for passengers with mobility problems are available at every cruise and ferry passenger terminal.
• Check-in and passport control points at cruise passenger terminals are designed to facilitate people with
mobility problems.
• Specially designed water coolers placed at a proper height are operated at cruise passenger terminals.
• All buses used for transportation within the passenger port have ramps for wheelchairs.
• Specially designed electrically driven vehicles are available for the transport of disabled passengers and
their escorts in Cruise Terminals.
• Special wheelchairs for people with disabilities are available at cruise and ferry terminals.
The Company's planning for the future includes:
• The creation, upgrading and modernization of meeting points for people with disabilities across the
passenger port.
• The improvement of the procedures for servicing passengers with special needs.
• The creation of information material on the rights of passengers with special needs.
• The informing and cooperation with all parties involved in order to provide optimal service to passengers
with special needs to the cruise terminal.
• The further training and informing of staff about servicing people with disabilities.
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10. Risk Policy & Management of These Risks
A. Risk Policy
The Company’s risk management policy is based on the continuous effort to improve all involving parts of the
risk management process, ensuring the adequate and efficient operation of the Internal Control System,
which focus, among other things, to identify and management of the material risks associated with its
business activity, as well as the competent Risk Management Function is linked with the relevant
responsibilities as:
• The design of Risk Management Policies, Regulation and Procedures to eliminate or mitigate potential risks.
• The proposal for approval to the Board of Directors of the risk strategy and risk-assumption intend.
• Presentation of Risks selection criteria to the Audit Committee, aiming to the appropriate mitigation
decisions.
• The assessment of the severity of each risk, taking into account its implications.
• The Formulation and monitoring of qualitative and quantitative indicators, in collaboration with Company’s
business units.
• The development of risk management systems and controls.
B. Risk Management Process
PPA S.A. is promoting awareness of risk-based thinking to all its departments in order to protect its values and
address uncertainty and address the uncertainty and insecurity that is largely due to the international
environment. Therefore, each business unit is responsible to implement a risk assessment procedure.
The Company has approved a Risk Management function, which is functionally independent. The main
mission of Risk Management is the effective risk management of risks undertaken by the Company as a
prerequisite for high standards of Corporate Governance and leads to high efficiency and optimal business
performance.
Its purpose is the preparation and implementation of an appropriate methodology for identifying, assessing
and managing the Company's risks according to defined criteria and the general coordination of the process
through the Company's Departments. Risk Management must have the ability of understanding on important
future changes, having at the same time the appropriate strategically treatment.
Risk Management must have the ability of understanding on important future changes, having at the same
time the appropriate strategically treatment. Risk Management has direct access to all the elements which
are necessary for the proper performance of its duties and submits written reports to Top Management
regarding the implementation of appropriate and effective policies, procedures and tools (such as keeping a
risk register) on the determination, analysis, control, management and monitoring of any kind of risk inherent
to the operation of the Company. Risk management carries out the responsibilities assigned by Law
4706/2020, decision 1/891/30-9-2020 of the Hellenic Capital Market Commission’s Board of Directors and the
best practices framework. The business risk management process has been structured in such a way as to
harmonize with the organization's structure and objectives. The process incorporates elements and principles
from COSO ERM (with which the risk management unit is certified), in order to implement a strong overall risk
management framework, which includes the following elements:
➢ Identification of potential incidents that may affect the Company and the determination of levels of risk
deemed acceptable for the Group (Risk Appetite Statement).
➢ Implementation of the relevant methodology regarding the identification, evaluation and management of
risks for their proper and effective / appropriate management and prioritization.
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➢ Structured approach to risk management which is the basis for the provision of assurances regarding the
achievement of the Company 's business objectives.
The purpose of this Policy is not to eliminate the risk, but to effectively manage the risks involved in the
activities of the Company and its subsidiaries in order to maximize opportunities and minimize adverse
effects. Specifically, the organization:
➢ Ensures that risk management is an integral part of all decision-making processes of the Company and its
subsidiaries.
➢ Evaluates and improves risk management policies, procedures and systems.
➢ Understands and monitors the risks associated with the strategy and business objectives.
➢ Informs the Management about any new significant risk and related safety controls.
➢ Provides appropriate risk management training to management and staff.
➢ In cooperation with the Audit Committee ensuring are included in the risk register process while informing
management the risks that have been identified.
➢ Evaluation of actions’ effectiveness through monitoring Key Performance Indicators (KPIs). This process is
monitored by the Quality Control and Inspection Dept through Internal Audits conducted at all company’s
departments. The above process is coordinated by the Quality Control and Inspection Department, which
provides support to each department for training as well as for the necessary review and updating of risk
assessment.
The review and update are carried out at least once a year and necessarily before the implementation of any
change, so that the Company is informed in a timely manner about the upcoming changes to which it must
react and prepare accordingly.
The Company plans and implements communication activities related to the ERM Framework aiming to
maintain open and dynamic communication with Risk Partners and Risk Owners as well as frequent reporting
to Senior Management and the Audit Committee.
The process incorporates elements and principles of ISO 31000 and COSO ERM (Risk Management Function
has been certificated on COSO ERM) to establish a strong and dynamic risk management framework that
consists of the following elements.
C. Main Business Risks and Uncertainties
General financial environment
The maintenance of a stable economic environment in the country is directly linked to the volumes of imports
and exports and, consequently, to the volumes of cargos handled, which provide the Company with the
largest average revenue. The recent geo-economic instability with the lack of transit from the Red Sea by the
majority of container carriers and the circumvention of Africa are increasing transport costs and consequently
may have a negative impact on inflation further burdening the economy of EU.
Financial instability
Geopolitical and economic instability in the countries of North Africa, the Asian Mediterranean and the Black
Sea may have a negative impact on transit cargos handled by Piraeus. To mitigate this risk, the Company aims
to strengthen and develop rail links with central Europe and is seeking cargo and customers to expand the
port hinterland northwards, thereby reducing dependence on maritime border markets to the south and
southeast.
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Energy Policy
The Green Deal policy and in particular certain policies, such as EUETS on ships and zero emissions policies for
ships, are likely to affect the Company's operations. In this context, developments are being monitored and
the Company is actively participating in international bodies in order to convey any improvement proposals to
the regulatory requirements of the European Regulations.
Non-expanded clientele (Container terminal)
The Company has renewed the cooperation with the main customer of the container terminal and is in the
process of negotiating a cooperation with the adjacent container terminal under SEP SA, which in 2022
contributed approximately 42% of the total cargo. However, the structure of the container market provides
limited options for attracting new cargo in short-term.
Geopolitical conditions
Piraeus, which relies mainly on transit cargos from Asia due to its distance from EU production centres, could
lose its competitive advantage and a typical example of this is the avoidance of transit through the Red Sea.
At the same time, however, the change in the supply chain provides opportunities. The Company has
intensified discussions with European and Asian automotive companies to highlight the benefits of Piraeus.
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(amounts in Euro unless stated otherwise)
11. Financial and Non-Fianancial Performance Indicators
A. Financial indicators and Alternative Performance Measures (APM’s)
Financial indicators showing the Company's financial position are presented in the table below:
Total Debt / Equity
It is calculated as the ratio of the sum of Debt Liabilities (Short-Term and Long-Term Loans) plus the total of
Lease Liabilities at the end of the year to the Total Equity at the end of the year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) ratio as a % of Revenue
It is calculated as the ratio of Earnings before taxes, interest and depreciation (EBITDA) to its Revenues
The Company uses as Alternative Performance Measures (“APMs”) the ratios No 4, 5 and 9, in the context of
making decisions concerning its financial, operational and strategic planning, as well as assessing and
publishing its performance. These APMs help better understand the Company’s financial and operating
results, financial position and cash flow statement. Alternative performance measures (APMs) must always be
taken into account in combination with the financial results prepared in accordance with International
Financial Reporting Standards (“IFRS”) and will not replace the latter under any circumstances.
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(amounts in Euro unless stated otherwise)
B.Financial and Non-Financial Performance Indicators
A detailed presentation of a mixture of general and sectoral indicators took place in the previous modules
with a distinct reference to traffic data of each Company's business sector (Cruise, Coastal Shipping, Car
Terminal, Container Terminal, and Ship Repair).
It is pointed out that, PPA S.A. has included all the elements of non-financial information in the Corporate ESG
Report 2023 which will be published within May 2024, based on the international standard Global Reporting
Initiative (GRI), version. The Report will be uploaded on the corporate website (www.olp.gr) in the section
"Social Responsibility".
In addition, PPA S.A. recognizing that the international ESG indicators (in the already published Corporate
Responsibility and Sustainable Development Report 2020, there is a special reference to ESG issues entitled
"ESG Data Scorecard") are a strategic tool for investor support in the context of identifying risks and
opportunities associated with the viability of their investment portfolio and responding at the same time to
the challenges of the new environment, builds a sustainable development strategy, aiming to minimize the
negative impact that its activities may have.
The Company's long-term commitment to Sustainable Development has already led to its participation
(August 2020) in the new ATHEX ESG index of the Athens Stock Exchange.
As demonstrated in the Corporate Governance Statement, PPA S.A. attaches great importance to Sustainable
Development and taking into account both the new legislation on Corporate Governance and the principles of
Taxonomy (EU Taxonomy).
EU Taxonomy
The EU Taxonomy of “environmentally sustainable” economic activities, is the European Union’s classification
system of activities that can under certain conditions be considered as environmentally sustainable or as
activities that enable the transition to an environmentally sustainable economy. Under the Taxonomy
regulation, companies and organizations can attract funds to further develop or expand their economic
activities, provided they meet certain criteria.
Under the Taxonomy Regulation (2020/852/EU), the EU has outlined the criteria that determine the level of
sustainability of eligible economic activities. Specifically, the European Union has established the following 6
environmental goals, the achievement of which will advance sustainable development within the Union:
1. Climate change mitigation (CCM);
2. Climate change adaptation (CCA);
3. The sustainable use and protection of water and marine resources (WTR);
4. The transition to a circular economy (CE);
5. Pollution prevention and control (PPC);
6. The protection and restoration of biodiversity and ecosystems (BIO).
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(amounts in Euro unless stated otherwise)
The delegated acts adopted under the Taxonomy Regulation provide technical screening criteria which must
also be met to constitute taxonomy alignment. At the moment of publication of the present, report the
Taxonomy-eligible activities have been set out by 2 Delegated Acts currently in force. In 2021, the EU adopted
the first Delegated Act (“the Climate Delegated Act”) 2021/2139 (EU) which set out activities and technical
screening criteria for substantial contribution towards objectives 1-2 above, including DNSH criteria for other
objectives. Moreover, in 2023, the second Delegated Act (“the Taxo 4”) 2023/2486 (EU) was published with
regard to activities significantly contributing to environmental objectives 3-6 above.
The alignment to one or several of the above-mentioned goals means that an economic activity can regarded
as “sustainable”, “transitional” or “enabling” according to the EU Taxonomy framework. Therefore, in order to
be considered Taxonomy-aligned, an economic activity must fulfil all of the following criteria:
I. Contributes substantially to one or more of the environmental objectives set out in the Regulation
II. Does not significantly harm any of the environmental objectives set out in the Regulation
III. Is carried out in compliance with the minimum safeguards laid down in the Regulation
IV. Complies with technical screening criteria stipulated by the Commission for each economic activity
towards the achievement of the environmental goals of the Taxonomy.
PPA S.A. continuously monitors compliance with the said criteria and reports the related information on an
annual basis, in the non-financial section of the respective annual report. It is noted that the Taxonomy
Regulation is relatively new and still under development (e.g. changes to the first Delegated Act, changes in
presentation format, etc.), leaving still uncertainties around its phased implementation. It is expected, that
the EU Taxonomy will develop into a comprehensive and detailed framework over the coming years.
Accordingly, PPA S.A. strives to provide clear and accurate information in line with the applicable provisions
while taking under consideration the clarifications provided by the European Commission, the European
Supervisory Authorities (“ESAs”) and the Platform on Sustainable Finance, and published in the Official Journal
of the EU.
The Taxonomy framework provisions that are effective on the date of the present report, require from in-
scope companies to disclose the amount and proportion of activities which are eligible, non-eligible and
aligned with the first 2 climate objectives as part of their total turnover, capital and operational expenditure
and to perform related alignment assessments for all such activities. Furthermore, they require the disclosure
of the proportion of their taxonomy-eligible activities (described in the “Taxo 4” delegated act adopted in
2023) and non-eligible economic activities as part of their total turnover, capital and operational expenditure.
Finally, all the quantitative information is accompanied by certain qualitative information for all objectives (1-
6). PPA S.A. applied Regulation (EU) 2020/852 as supplemented with Commission Delegated Regulation (EU)
2021/2139, Commission Delegated Regulation (EU) 2021/2178, Commission Delegated Regulation (EU)
2023/2485 and Commission Delegated Regulation (EU) 2023/2486 to identify activities that are eligible.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Piraeus Port Authority activities
Having considered the developments to the Taxonomy framework that were implemented in 2023 in terms of
amendments to the existing Delegated Acts, introduction of new Delegated Acts and the publication of
further clarifications in the Official Journal of the EU, the Company revaluated its economic activities in order
to report its eligibility. Thus, it was determined, that a shift in the environmental objective towards which the
activities contribute substantially, would present a still more representative view of the Company’s economic
activities and long-term approach regarding climate change. As a result, PPA S.A. has identified its eligibility
according to the following activities in the scope of environmental objective “Climate Change Mitigation”
(“CCM”) for FY2023:
6.10. Sea and coastal freight water transport, vessels for port operations and auxiliary activities
6.16. Infrastructure enabling low carbon water transport
Following the eligibility examination, the Company reviewed the applicable alignment criteria provided by the
Climate Delegated Act. The result of this evaluation is presented in the following section of the report.
Assessment of physical climate risks (DNSH Climate Change Adaptation)
The Company is acutely aware of the risks to its activities as a result climate change and monitors them based
on the latest scientific reports and relevant publications on an ongoing basis. Due to the fact that all PPA S.A.
activities are conducted within the same, fairly limited, geographic area, it was determined that the physical
climate risk and vulnerability assessments conducted at the organization level, encompass adequately both its
economic activities for EU Taxonomy purposes.
The Company’s climate risk analysis takes into account scenarios RCP 4.5 and RCP 8.5 of the IPCC report in its
best effort to cover a broad spectrum of possibilities. At national level, the only completed national climate
change impact and vulnerability assessment report has been produced by the Bank of Greece and PPA S.A.
has considered its results and recommendations carefully. The Company plans and implements targeted
measures according to the proposals outlined in the National Strategy for Adaptation to Climate Change of
Greece and the Regional Plan for Adaptation to Climate Change of the region of Attica, the National Strategy
for the protection and management of the marine environment, etc. It is worth noting that both the National
Strategy and the Regional Plan mentioned earlier propose actions and measures based on the findings
presented in the report issued by the Bank of Greece. Furthermore, the Company incorporates scientific
models and projections in its risk analysis such as in the reports issued by the Hellenic National
Meteorological Service, in order to continuously improve the accuracy and credibility of its business plans as
well as safeguard its long-term successful and sustainable activity. In the first years of EU Taxonomy reporting,
PPA S.A. is confident that its existing environmental risk inventory is sufficient for the purposes of the climate
change adaptation technical screening criteria. The Company’s process to identify and address physical
climate risks follows a series of distinct stages as presented below:
I. PPA S.A. examines and notes climatic and environmental risks and suggests technical solutions and
actions through technical studies managed by the Property & Environmental Dept of the Company, as
described below,
II. This information is then communicated to the risk manager of PPA S.A. who subsequently screens all
economic activities that can potentially be affected within a reasonable period of time
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(amounts in Euro unless stated otherwise)
III. The identified risks are categorized and prioritized using amongst others, the technical data input from
the Property & Environmental Dept according to the likelihood and the severity of impact on
economic activities
IV. The risk manager of PPA S.A. compiles an annual report detailing the actions to be taken and providing
recommendations to Management
V. Based on the results of the risk report, the Company plans and implements counter-measures in line
with national and international recommendations.
Through its existing processes, the Company has identified a series of risks including physical climate risks to
its activities. After close examination of the table of risks provided in Appendix A to the Climate Delegated
Act, PPA S.A. presents the physical climate risks in its existing portfolio that corelate more closely to the risks
of the Taxonomy Annexes:
1. Extreme wind patterns
2. Changing precipitation patterns
3. Storm surges
As stated earlier, the EU Taxonomy is a dynamic framework and PPA S.A. is committed to review vigorously its
alignment with the applicable criteria. On that note, all of the Company's activities have been examined in the
Environmental Impact Assessment (EIA) study of PPA S.A., which led to the new Approval Decision of
Environmental Terms (AEPO) of PPA S.A. issued in September 2023, and which aims the mitigation and
remediation of all the impacts caused by the activities of PPA S.A. on the climate and the environment in
general through appropriate measures.
In application of the provisions of the AEPO, in the current period the PPA S.A. is preparing a Special Climate
Shielding Study, which includes:
• specialization of the findings of the Environmental Impact Assessment regarding climate vulnerability and
the port's adaptation needs towards climate change,
• examining the consequences of climate change in the port,
• ensuring compatibility with the Regional Climate Change Adaptation Plan of Attica (PESPKA).
• identification of points where additional actions are needed for climate shielding of the project or the
neighboring areas affected by it and a corresponding proposal of measures.
In addition, a Plan to reduce greenhouse gas emissions is being drawn up for the entire port area according to
the requirements of the National Climate Law.
Finally, the Company is involved in the ARSINOE Project, an EU-funded project aimed at creating climate-
resilient ports through systemic solutions and innovations.
Upon the completion of the above, PPA S.A. expects to improve the level of detail of its existing climate risk
inventory and associated measures to adapt its activities.
In view of the above, the Company considers the criterion for Do no significant harm (‘DNSH’) to Climate
change adaptation as adequately covered.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Infrastructure enabling low carbon water transport
Taxonomy activity description:
This activity consists of the construction, modernisation, operation and maintenance of infrastructure that is
required for zero tailpipe CO2 operation of vessels or the port’s own operations, as well as infrastructure
dedicated to transhipment and modal shift and service facilities, safety and traffic management systems. The
economic activities in this category exclude dredging of waterways. An economic activity in this category is an
enabling activity as referred to in Article 10(1), point (i), of Regulation (EU) 2020/852 where it complies with
the relevant technical screening criteria.
Eligible PPA activity description:
The Company owns and operates the port of Piraeus, the largest port in Greece and its surrounding area,
including facilities and infrastructure for commercial purposes. In the framework of its operations, the
Company also undertakes maintenance and modernization tasks of said facilities. The services provided to
incoming marine traffic include inter alia the provision of shore-side services vessels at berth, loading,
unloading and transshipment of goods.
Examination of alignment with the associated technical screening criteria
1. Substantial Contribution to Climate Change Mitigation (CCM)
PPA S.A. aims to become a major enabler of sustainable water transportation and as such it is currently
involved in 2 major international projects, namely: Project EALING and Project CIPORT for electrification of
ships from land. Detailed information on both can be found in the environmental chapter of the ESG report.
However, since these projects will contribute to this criterion only upon finalization, PPA S.A. has only
included as aligned, the Turnover, CapEx and OpEx relating to the infrastructure and installations dedicated to
transhipping freight between the modes: terminal infrastructure and superstructures for loading, unloading
and transhipment of goods (as per criterion 1.(d)). Additionally, the Company confirms that its facilities are
not explicitly dedicated to the transportation or storage of fossil fuels.
2. DNSH Climate Change Adaptation (CCA)
Detailed information on the assessment of physical climate risks in relation to the Company’s activities can be
found above, in the sub-section “Assessment of physical climate risks (DNSH Climate Change Adaptation)”.
3. DNSH Sustainable use and protection of water and marine resources (WTR)
The Company monitors the achievement of good water status and ecological potential in accordance with
Directive 2000/60/EU, implementing a special Sea Water Quality Monitoring Program throughout the port's
area of jurisdiction, the results of which are reviewed under the stipulations of the same Directive. Moreover,
PPA S.A. has implemented a Sea Pollution Emergency Plan (Contingency Plan), approved by competent
authorities and outlines the actions followed in case of incidents of oil spills or other harmful substances in
the sea area of the Company's responsibility. Finally, the PPA takes care for the daily cleaning of the entire
marine area of its jurisdiction from floating materials.
All related Company activities have been examined in the Environmental Impact Assessment study (EIA) and
are included in the Approval Decision of Environmental Terms (AEPO) of PPA S.A.
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(amounts in Euro unless stated otherwise)
4. DNSH Transition to a circular economy (CE)
All non-hazardous construction and demolition waste generated by the Company over the course of new
projects as well as maintenance of existing port infrastructure is prepared for reuse, recycling or other kinds
of material recovery pursuant to applicable legislation. The Approval Decision of Environmental Terms (AEPO)
of PPA S.A. includes all construction works undertaken by the Company and contains specific terms and best
practices for the environmentally sound management of solid and liquid waste and the transition to a circular
economy.
5. DNSH Pollution prevention and control (PPC)
As in the case of waste, the Approval Decision of Environmental Terms (AEPO) that dictates the construction
works undertaken by PPA S.A., contains specific provisions for the prevention and management of pollution
and in particular for the reduction of noise, vibration, dust and other pollutant emissions. With regard to the
compliance with Appendix C, the Company, after careful consideration of the updates introduced by
Delegated Regulation 2023/2485 (EU), understands that the screening of its activities against the criteria set
out in Appendix C is a process expected to be carried out in the course of the following 18 months and plans
to have it completed in time for the Annual Report of FY2024.
6. DNSH Protection and restoration of biodiversity and ecosystems (BIO)
PPA S.A. does not operate within or in proximity to any area of sensitive biodiversity or environmental
protected areas. The relevant potential risks to the ecosystems have been examined in the Environmental
Impact Assessment study of PPA S.A. and the Company implements an integrated program of environmental
monitoring of the port with the aim of protecting the biodiversity of the wider area, based on its Approval
Decisionof Environmental Terms (AEPO).
Vessels for port operations and auxiliary activities
Taxonomy activity description:
This activity consists of the purchase, financing, chartering (with or without crew) and operation of vessels
designed and equipped for transport of freight or for the combined transport of freight and passengers on sea
or coastal waters, whether scheduled or not. Moreover, the activity includes the purchase, financing, renting
and operation of vessels required for port operations and auxiliary activities, such as tugboats, mooring
vessels, pilot vessels, salvage vessels and ice-breakers.
Eligible PPA activity description:
The Company owns and operates 3 floating docks (elevators) that are used in shipbuilding and ship repairing
operations as auxiliary equipment/infrastructure. These vessels, play an integral part in the processes of
shipbuilding and ship repairs as they enable the total removal of ships from the sea in order to be tended to
properly. The vessels function with the use of electricity and batteries, thus reducing their direct GHG
emissions significantly and contributing to the reduction of the ship repair operations’ emissions output.
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(amounts in Euro unless stated otherwise)
Examination of alignment with the DNSH technical screening criteria regarding the environmental goal of
Climate Change Adaptation
1. Substantial Contribution to Climate Change Mitigation (CCM)
These auxiliary vessels have no direct CO2 emissions and are used solely for the purpose of supporting ship
repair activities, therefore no fossil fuel related activities are carried out on them.
2. DNSH Climate Change Adaptation (CCA)
Detailed information on the assessment of physical climate risks in relation to the Company’s activities can be
found above, in the sub-section “Assessment of physical climate risks (DNSH Climate Change Adaptation)”.
3. DNSH Sustainable use and protection of water and marine resources (WTR)
The auxiliary vessels, as part of the broader apparatus for the regular operation of the port facilities have
been considered in the framework of the Environmental Impact Assessment study (EIA) undertaken for all the
port infrastructure. The EIA includes measures addressing the climate risks that were identified, which have
been applied by the Company in (among others) the activities of the auxiliary vessels. The vessels do not
receive or discharge any water from/to any water body.
4. DNSH Transition to a circular economy (CE)
Since the auxiliary vessels are utilized in ship repairs, the amount of operational waste generated by them is
very small. The main waste produced waste is sludge from docks cleaning, which is collected and transported
to a specialized facility for recovery and alternative management (biogas production and soil conditioner).
5. DNSH Pollution prevention and control (PPC)
Given their nature and mode of operation, the floating docks give out no direct gaseous emissions such as
sulfur oxides, suspended particles, nitrogen oxides, etc. The implementation obligation refers to vessels,
therefore this criterion does not apply to auxiliary shipping. At the same time, the floating docks have no
sewage and domestic sewage discharges or other liquid waste (petroleum, oils, etc.). The generated waste
(wastewater) of Marpol convention category IV, from the vessels served in the docks, are handled according
to the Ship generated Waste Management Plan Vessel Waste Plan and are received and managed by the
specialist ship waste contractor of the port.
6. DNSH Protection and restoration of biodiversity and ecosystems (BIO)
No ballast water is discharged while the floating docks are in operation, since the floating docks remain
motionless. Therefore, introduction of non-native species through biological deposits on the hull of the
floating docks is not possible. Ballast water may only be drained when repair/maintenance works are
performed on the docks. In this case, however, the water is taken from the same area as the floating docks
remain in the place.
Noise and vibrations generated by all the PPA operations comply with the limit benchmarks and specifications
established by the Approval Decision of Environmental Terms (AEPO). According to it a specified noise
monitoring program is implemented at the external boundaries of its facilities (boundaries with the urban
area and other uses outside the port).
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(amounts in Euro unless stated otherwise)
Minimum Safeguards (MS)
The Taxonomy criterion relating to the minimum safeguards is understood as applicable on the Company level
rather than for each specific economic activity within an organization. In the absence of specific reporting
methodology on the issues covered in the minimum safeguards, PPA S.A. presents its structured approach to
safeguarding social issues within the scope of its activities and value chain.
Having considered the Commission Notice (2023/C 211/01) on the interpretation and implementation of the
provisions set out by art. 18 of the Taxonomy Regulation as well as the report by the EU platform on
sustainable finance which is referenced in the said Notice, PPA S.A. reports the following information in
compliance with the Minimum Safeguards.
Corporate Responsibility is an integral part of our operations. Creating relationships of trust and cooperation
with local communities is a Management priority which seeks to establish a sustainable development model
focused on environmental protection, charity work and the support of education,sports and cultural activities,
to the best of the Company’s ability.
The Company acknowledges that development of its human resources is the cornerstone in achieving its
goals. Through understanding and respecting employee needs and applying merit-based criteria, the
Company ensures the ongoing training and development of its employees, considering the needs of PPA S.A.
and the protection of corporate interests.
At PPA S.A. we uphold the United Nations 2030 Agenda, as such is represented by the 17 Sustainable
Development Goals for 2030.
Our intention is to actively contribute to their achievement by promoting the population’s well-being and
security, protecting the environment and combating poverty. Our priority is to achieve those goals directly
linked to the activities and challenges specific to our sector and to all material aspects arising from this report.
OECD Guidelines for Multinational Enterprises
During 2020, the Company has established the “PPA S.A. Code of Conduct”, which was distributed to all staff
and members of the Management. The PPA S.A. Code of Conduct has been developed taking into account the
OECD Guidelines for Multinational Enterprises. At PPA S.A. we consider our people as our most valuable
asset. We thus invest in our human resources in order to maximise their efficiency, organisation and the
services they provide. We take steps to ensure responsibly excellent working conditions, benefits, advantages
and training and advancement opportunities for our people, even in the difficult circumstances that we had to
face in 2020 due to the COVID-19 pandemic.
Responsible Risk Management Policy
PPA S.A. aims to provide high-quality and efficient port services safely, contribute to the local and national
economy and strengthen the port’s position through sustainable development. Various factors, such as
internal and external issues or stakeholders’ needs and expectations, could be seen as potential risks that
negatively affect or may negatively affect the Company in achieving its objectives and strategy; therefore, it is
necessary to identify them in order to be able to address them. The Company’s Management undertakes to
ensure that continuous efforts are made to address all risks associated with its operation and take all
necessary preventive actions.
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(amounts in Euro unless stated otherwise)
PPA S.A. promotes risk-based thinking in all its Departments to protect the Company’s values and address
uncertainty. Each Business Unit is therefore responsible for the implementation of a risk assessment
procedure.
Respect of Human and Labor Rights
The Company respects human rights as well as the rights of employees and observes the Labour legislation.
To this end, the following issues are material to the Company:
Employee Associations
There are four first-degree Associations (Association of Permanent Employees, Association of Technicians &
Operators, Association of Dockworkers, Association of Supervisors - Foremen) and one second-degree
Association (Federation of Permanent Port Employees of Greece) at PPA S.A. The Company’s Management is
in close cooperation with the employees’ representatives to ensure the proper functioning of its services and
to promote the common interests of the Company and its employees.
Diversity, Equal Opportunities and Non-Discrimination
The Company’s basic principles include the promotion of equal opportunities and the protection of diversity.
The Company’s Management makes no discrimination in terms of personnel recruiting or selection, earnings,
training, assignment of work-related tasks or other work activities.
The Company favours respecting the diversity of each employee and does not tolerate any behavior that
could lead to discrimination of any form.
At PPA S.A., the experience, personality, theoretical training, qualifications, efficiency and competences of
each individual are the main factors that determine their choice for more complex and demanding positions
of responsibility. Characteristics related to candidates’ gender, age, religion, origin and colour, physical
particularities or beliefs are not reasons for their preference or exclusion. In this way, we promote a climate
of equality, which in turn is anchored in respect for diversity and human dignity. At the same time, we have
put in place three key tools for supporting equal opportunities and diversity.
Furthermore, in accordance with the applicable Enterprise-Level Collective Labour Agreement, we provide our
employees with a series of additional benefits, in order to meet their medical and financial needs, thus
contributing to the health and well-being of their families. These benefits testify to our intent to invest in our
employees and our commitment to providing a quality work environment.
Occupational health and safety
PPA S.A. acknowledges the importance of ensuring safe conditions and workplaces for its personnel, as well as
safe transportation conditions for all involved parties, customers, passengers, etc. Safety at work for
employees is a top priority and a prerequisite for the Company’s operation.
The Company as an employer is obliged to take all appropriate measures to protect the safety and health of
employees in the workplace.
PPA S.A. ensures health and safety conditions for employees and their areas of responsibility. We thus
establish health and safety rules through circulars, announcements and instructions.
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(amounts in Euro unless stated otherwise)
Stakeholders communication and engagement
As a business organization that prioritizes transparency and continuous communication of its actions, we
systematically interact with our Stakeholders, who form either part of the Company’s internal environment
(Shareholders, Employees) or external environment (Suppliers, Customers, Local Communities, NGO
Representatives) and are directly or indirectly affected by our actions. Our main concern is to be in constant
and active communication with our stakeholders, with the aim of building mutual trust and excellent
cooperation. Maintaining the dialogue and interaction with each of our key stakeholders and improving our
relationship with them, is particularly important to identify their needs and expectations which are essential
for our operations.
Corruption
PPA S.A. has zero tolerance for corruption and works continuously to raise awareness among its employees to
minimize the risk for corruption. Measures against corruption are included primarily in our “Code against
Corruption and Bribery”, which all employees are required to follow. Additionally, the Company had zero
incidents of violation of corruption legislation.
Taxation
Tax is treated as an important topic of oversight, and is overseen by the highest governing bodies of the
Company. To this end, we have put in place adequate tax risk management measures as outlined in OECD
MNE Guidelines covering tax. Furthermore, the Company had zero incidents of violation of tax legislation.
Finally, as per the applicable national legislation, the Company is issued an annual tax certificate after relevant
tax audit conducted in the course of the annual statutory audit, by its designated auditor.
Fair Competition
The Company and its top Management is committed to abiding by and promoting fair competition practices
across all its activities and through the daily conduct of all its people. Our Internal Audit function ensures
compliance with applicable national and international competition regulation throughout the organization,
while our Compliance department ensures compliance with applicable competition rules during the
performance of our services.
More information can be found in the annual Corporate Responsibility and Sustainability Report at
https://www.olp.gr/en/corporate-responsibility/social-responsibility
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(amounts in Euro unless stated otherwise)
Qualitative information
Accounting Policy
I. Proportion of the total turnover. The proportion of eligible and aligned economic activities against the
total turnover has been calculated based on the net turnover from services corresponding to
Taxonomy-eligible and Taxonomy-aligned activities (numerator), divided by the total net turnover
(denominator), both of which referring to FY2023. Specifically, the total turnover of PPA SA is
presented in the “Revenue” line of the “Statement of Comprehensive Income for the year ended
December 31, 2023” of the “Annual Financial Report” of the Company.
II. Proportion of the total CapEx. It was calculated based on the capitalized expenses incurred for
additions to assets or processes corresponding to eligible economic activities and it includes the
Taxonomy-eligible and Taxonomy-aligned capital expenditures (numerator) divided by the total
capital expenditure (denominator). The total capital expenditure contains the additions to property,
plant and equipment as well as intangible assets and right-of-use assets during the fiscal year, before
accounting for depreciation and any impairment. The total capital expenditure is determined based
on the Statement of Financial Position and is the sum of the following funds in the “Annual Financial
Report” of the Company: line “Additions” in “Property, Plant & Equipment” (Note 4), line “Additions”
in “Leases” (Note 5), as well as line “Additions” in “Intangible Assets” (Note 7).
III. Proportion of the total OpEx. It was calculated based on the operating expenses related to the repair
and maintenance of assets or processes corresponding to eligible economic activities and includes the
Taxonomy-eligible and Taxonomy-aligned operational expenses (numerator) divided by the total
operational expenses for repair and maintenance as well as leases of less than 12 months duration
(denominator). The definition of EU Taxonomy for the operational expenses includes expenses for
research and development, renovation of buildings, maintenance and repair, as well as any other
direct expenses related to the day-to-day maintenance of property, plant and equipment.
The accounting principles used in the preparation of the table presented above are outlined in Note 3
“Principal Accounting Policies” of the “Annual Financial Report” (for the Group and the Company) as of
December 31, 2023. The financial report of PPA SA has been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union (E.U.).
The information presented herein abide by the Regulation’s requirements and the Delegated Acts issued as of
the time of this publication. The related guidelines have a relative margin of interpretation and are constantly
involving to adjust to the needs of the process. Following this, PPA S.A. will pay close attention to the related
developments and will adjust its approach accordingly regarding the assumptions and applicable
methodology.
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(amounts in Euro unless stated otherwise)
Nuclear energy and fossil gas related activities
Template 1
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and
safe operation of new nuclear installations to produce electricity or
process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of
existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such
as hydrogen production from nuclear energy, as well as their safety
upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or
operation of electricity generation facilities that produce electricity using
fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
NO
PPA S.A. is not involved in any of the activities referenced in the table above and thus does not report on any
of the KPI table templates 2-5 of Annex XII of Regulation 2021/2178 (EU).
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(amounts in Euro unless stated otherwise)
Turnover KPI table
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(amounts in Euro unless stated otherwise)
Capital Expenses KPI table
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(amounts in Euro unless stated otherwise)
Operational Expenses KPI table
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(amounts in Euro unless stated otherwise)
12. GOING CONCERN DISCLOSURE:
The Company, for the preparation of the Financial Information of December 31, 2023, has adopted the
going concern basis. For the application of this principle, the Company took into account the current
financial developments as well as the risks arising from the financial environment and made estimates
for the shaping, in the near future, of the trends and the economic environment in which it operates.
The main factors that can affect the implementation of this principle are mainly related to the economic
environment in Greece and internationally as well as the ongoing Russia/Ukraine conflict and the
conflict in the Gaza Strip with the resulting issues in the energy sector and rising inflation.
As part of the consideration of whether to adopt the going concern basis in preparing the financial
statements, management has considered the Company’s financial performance in the year, as well as a
quantitative viability exercise, including the performance of various stress tests that consider the
Company’s principal risks, including that relating to climate change, and confirms the Company’s ability
to generate cash in 12 months from the date of approval of the financial statements and beyond. The
Company’s strong balance sheet and liquidity position, its operation in several segments, the strong and
dynamic management and the experienced human resources will allow the Company to successfully
overcome any period of uncertainty.Therefore, it is deemed appropriate that the Company continues to
adopt the going concern basis for the preparation of the financial statements.
Accordingly, and having reassessed the principal risks, the Directors continue to adopt the going concern
basis of accounting in preparing the Annual Financial Statements and have not identified any material
uncertainties to the Company's ability to continue trading as a going concern over a period of at least 12
months from the date of approval of annual financial statements.
Piraeus, March 29, 2024
THE CHAIRMAN OF BoD
YU Zeng Gang
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S
S
T
T
A
A
T
T
E
E
M
M
E
E
N
N
T
T
O
O
F
F
C
C
O
O
R
R
P
P
O
O
R
R
A
A
T
T
E
E
G
G
O
O
V
V
E
E
R
R
N
N
A
A
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N
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E
E
(Article 152 of L. 4548/2018)
Introduction
Corporate Governance is the framework of structures, principles, rules, procedures and practices,
through which the continuous improvement of the efficient operation of the Company, the
enhancement of the long-term economic value and the protection of the general corporate interest of
the Company.
The implementation and adherence of the optimum corporate governance practices is a priority for
"PPA S.A." due to the important role it plays both as a gateway for import and export trade, and as a
gateway to serve the country's tourism industry, for the benefit of the local and national economy in
general.
The Company, in compliance with Law 4706/2020, harmonized all the provisions of its Articles of
Association and adopted a series of Policies and Regulations, which ensure transparent and effective
governance, and instituted the necessary organizational structures for their adoption and
implementation.
The Company continues to update existing and draft new Policies and Regulations, due to the
constantly changing environment in which it operates and the need to continuously adapt both the
organizational structure and the organizational and management practices it adopts and applies, taking
into account in particular the provisions to the Greek Corporate Governance Code of the Hellenic
Corporate Governance Council, which the Company has adopted and applies and the relevant decisions
of the Capital Market Commission.
The Company, taking into account international trends, in terms of Corporate Governance is moving in
the direction of adopting Environmental and Social Governance (ESG: Environmental, Social,
Governance) practices, recognizing that the creation of value for its stakeholders (shareholders,
employees, investors, suppliers, users of the port, local community) is not achieved solely through the
achievement of strong financial performance but mainly through proper Governance, and the impact of
the Company's activity on Society and the Environment.
Structure of the Corporate Governance Statement
The current Statement of Corporate Governance is prepared pursuant to the provisions of article 152 of
Law 4548/2018, article 18 of Law 4706/2020, as in force, as well as the provisions of the Hellenic
Corporate Governance Code of the Hellenic Corporate Governance Council (HCGC), which was issued in
June 2021 and has been adopted and is implemented by the Company, following the relevant approval
of its BoD, and in conformance with article 17 of Law 4706/2020.
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This Statement of Corporate Governance is a special part of the Annual Management Report of the
Board of Directors and contains all the information required by law. In addition, it includes the
Company’s response to specific practices under the Chapters of the Hellenic Corporate Governance
Code of the HCGC, which has been adopted and is implemented.
In particular, the structure of this Statement of Corporate Governance is as follows:
I. Statement of Compliance with the Corporate Governance Code
II. Deviations from the Corporate Governance Code and Justification of Deviations
III. Description of the main features of the Company’s internal control and risk management
systems in relation to the financial reporting process
IV. Information regarding the Company’s control status (points (c), (d), (f), (h) and (i) of paragraph
1 of Article 10 of Directive 2004/25/EC of the European Parliament
V. Composition and function of the administrative and supervisory bodies of the Company
- Α. General Assembly of Shareholders
- Β. Board of Directors
- C. Audit Committee
- D. Nomination Committee
- Ε. Remuneration Committee
VI. Periodic Evaluation Policy of the Internal Control System of PPA SA and Implementation of the
provisions on Corporate Governance of Law 4706/2020
VII. Diversity Policy applied in relation to the Company’s administrative, managerial and supervisory
bodies
Ι. Code of Corporate Governance
Law 4706/2020 (Government Gazette 136 / Α / 17-7-2020), on Corporate Governance of public limited
companies, modern capital market, which incorporated in Greek legislation the Directive (EU) 2017/828
of the European Parliament and Council, measures to implement Regulation (EU) 2017/1131 and other
provisions, as well as Decision 2/905 / 3.3.2021 of the Board of Directors of the Hellenic Capital Market
Commission establish the obligation to adopt and implement the Corporate Governance Code, which
has been prepared by a body of known prestige.
The Company, in compliance with the requirements and regulations of the said law, implements with a
relevant decision of its BoD the Code of Corporate Governance, of the Hellenic Corporate Governance
Council issued in June 2021, the text of which is available at website of the Company at the following
link: https://www.esed.org.gr/en/code-listed .
The implementation of this Code aims at the continuous improvement of the corporate institutional
framework and the wider business environment, as well as the improvement of the Company's
competitiveness as a whole.
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II. Deviation from the Corporate Governance Code and Justification of Deviations
The Company fully complies with the provisions of the relevant Greek legislation, rules and regulations
and internal corporate values for the development of corporate governance principles it applies and
has adapted to those defined by the existing institutional framework of corporate governance. As
mentioned above, following a Board of Directors (BoD) decision and in accordance with article 17 of
law 4706/2020, it implements and adopts the Hellenic Corporate Governance Code (HCGC, June 2021)
of the Hellenic Corporate Governance Council (HCGC). HCGC 2021 of HCGC is available at the following
link: https://www.esed.org.gr/web/guest/code-listed .
The Company has not adopted some specific practices of the Code that are specifically mentioned
below but remains faithful to its commitment to take all the necessary actions for the implementation
of the provisions of Law 4706/2020:
Deviation from the Special practice of Code 1.13: “ The non-executive members of the BoD of
Directors meet at least annually, or exceptionally when judged appropriate without the presence of
executive members in order to discuss the performance of the latter. At these meetings the non-
executive members shall not act as a de facto body or a committee of the BoD”.
Explanation: The individual evaluation process from the non Executive BoD members regarding the
effective fulfillment of the duties of the executive BoD members was not considered necessary at the
present time. It was decided by the non-executive members of the Company's BoD that the
performance of the effectiveness of the BoD and its executive members will be evaluated by the
Ordinary General Assembly, at the same time as the evaluation of the annual financial statements of
the Company and the relevant reports in combination with the results of use and the general course of
the Company's operations. In addition, the assessment of the BoD as well as of its individual members
effectiveness by an external consultant was taken into account by non Executive BoD members . The
assessment is concluded that each BoD member effectively performs his/her duties and demonstrates
commitment to his/her role.
Deviation from the Special practice of Code 2.2.15: “ The company ensures that the diversity criteria
concern, in addition to the members of the BoD, senior and/or senior management with specific
representation objectives by gender, as well as timetables for achieving them”.
Explanation: Due to the particular nature of the port industry area in which the Company operates and
given that the overwhelming percentage of its staff is employed in labor-intensive activities
(dockworkers, operators of lifting machines, drivers of heavy-duty vehicles, workshop staff, etc.), it is
not possible to define and ensure specific goals of representation by gender, (beyond the BoD
members in accordance with the provisions of Law 4706) among the Managerial staff. Apart from the
BoD members selection where the Company applies the diversity criteria provided for in the BoD
Suitability Policy, no specific gender representation goals and specific timetables for their achievement
have been set for the selection of the Company's Managerial staff. However, the Company's Code of
Conduct, which is uploaded on the Company's website, states (Chapter of Equal Opportunities) that the
Company promotes a work environment that respects equality, individual rights and diversity no
matter on characteristics such as age, gender, race, nationality and physical ability. On 31.12.2023, the
participation of women in all of the Company's managerial positions amounted to 36.2%.
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(amounts in Euro unless stated otherwise)
Deviation from the Special practices of Code: 2.2.21: “ The Chair shall be elected by the independent
non-executive members. In the event that the Chair is elected by the non-executive members, one of
the independent non-executive members shall be appointed, either as vice-chair or as a senior
independent member (Senior Independent Director)”. 2.2.22: “ The independent non-executive Vice-
Chair or Senior Independent Director shall, as appropriate, have the following responsibilities: to
support the Chair, to act as a liaison between the Chair and the members of the BoD, to coordinate the
independent non-executive members and lead the evaluation of the Chair”. 2.2.23: “Where the Chair is
an executive, then the independent non-executive vice-chair or the senior independent member
(Senior Independent Director) shall not replace the Chair in his executive duties.”.
Explanation: The Company's BoD, when constituted as a Body, applies the provisions of article 8 of Law
4706/2020 "In the event that the BoD appoints one of the executive members as Chairman, it must
appoint a Vice-Chairman from among the non-executive members". In addition, 67% of the members of
the Company's existing BoD are Non-Executive members, while the Chairmen and the majority of the
members of the Article 10 Committees (Audit, Remuneration, Nomination) are Independent Non-
Executive members. Taking into account the above, the Company's BoD considers that the non-
appointment of one of its members as Senior Independent Director does not create any problem in its
orderly operation and the fulfillment of its duties, as well as that the burden of the independent non-
executive members with the additional burden of the object of the Vice Chairman of the BoD was not
desirable, while it might cause obstacles in the work of the above Committees. With the above specific
balance, its efficient and productive operation has been ensured during all the last years.
Deviation from the Special practices of Code: 2.3.1: “ The company has a framework for filling
positions and succession of the members of the Board of Directors, in order to identify the needs for
filling positions or replacements and to ensure each time the smooth continuation of the management
and the achievement of the company's purpose”. 2.3.2: “ The company ensures the smooth succession
of the members of the Board of Directors with their gradual replacement in order to avoid the lack of
management.”. 2.3.3: “ The succession framework shall in particular take into account the findings of
the evaluation of the Board of Directors in order to achieve the necessary changes in composition or
skills and to maximise the effectiveness and collective suitability of the Board of Directors.”.
Explanation: Regarding to the succession of the BoD members, given that the term of office of the BoD
members it was (according to the established practice of recent years) one year (until August 2023), it
was not considered appropriate at this particular time to have a procedure for the prior and ongoing
activity of the Nominations Committee. In the event of the need to replace one or more members of
the Board of Directors, the Nominations Committee is activated to find suitable candidates for new
members in accordance with the Company's Nominations Policy in order to carry out the replacement
of members, the procedure defined in the Committee's Operation Regulation and the BoD Operation
Regulation.
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Deviation from the Special practice of Code 2.3.4: “ The company also has a succession plan for the
Chief Executive. The preparation of an integrated succession plan for the Chief Executive shall be
entrusted to the nomination committee, which in this case shall be responsible for: (a) identifying the
required quality characteristics that the Chief Executive should have, (b) ongoing monitoring and
identification of potential internal nominees, (c) where appropriate, search for potential external
nominees, (d) and a dialogue with the Chief Executive on the evaluation of nominees for his / her
position and other senior management positions. ”.
Explanation: The company has not formulated a special succession plan for the CEO, as the CEO is
replaced (by BoD decision), in case of absence or impediment, by the Chief Financial Officer who is
also an executive BoD member. In addition, the CEO has five (5) Deputies CEO, thus ensuring the
smooth continuity of the management of the Company's affairs and its daily corporate operation.
ΙIΙ. Description of the main features of the Company’s internal control and risk management
systems in relation to the financial reporting process
a) Company level controls
• The internal control system of the Company covers adequately the control procedures involving risk
management and preparation of financial reports.
• In respect of the preparation of financial statements, the Company considers its accounting system
adequate for reporting to the Management and external users. The financial statements are prepared
in compliance with the International Financial Reporting Standards, as adopted by the European Union
for reporting purposes to the administration, and also for the purpose of publication in line with the
applicable regulations (hereinafter, “IFRS”). All reports include the data of the current period,
compared to the respective data of the Budget as approved by the BoD, and to the data of the
respective period of the year before the report. All published interim and annual financial statements
include all necessary information and disclosures in compliance with the IFRS, are reviewed by the
Audit Committee and are approved in their entirety by the BoD.
• Safeguards are implemented with respect to: a) supervision and approval of all important
transactions through the structural hierarchy of the Company; b) monitoring of financial figures and risk
evaluation as for the reliability of the financial statements; c) fraud prevention and tracking; and d)
protection of data provided by information systems.
• The Company’s progress is monitored through a detailed budget per operating sector. The budget is
adjusted when is necessary to take into account the changes in the development of the Company’s
financials that depend greatly on external factors. Management monitors the development of the
Company’s financial results through regular notes and reports.
• The Company's Operating Regulations, in which, among other things, the responsibilities and
responsibilities of the basic jobs are defined, aim at the adequate separation of responsibilities within
the Company. The approved Operating Regulations have been posted on the Company's website in
accordance with par. 2 of article 14 of Law 4706/2020.
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• The internal reports to the Management and the reports required from the provisions of the
legislation and by the supervisory authorities are prepared by the Financial Management Department,
which is staffed with adequate and experienced executives to this effect.
• The statutory auditors of the Company KPMG Certified Auditors S.A. (Greek AM SOEL 114), i.e. the
statutory audit firm of financial statements of the Company for the year ended on 31 December 2023,
are not related to the Company or to any persons having supervisory responsibilities over the
Company’s financial reporting in ways which could be considered as affecting their independence as of
the date of this report. Therefore, they remain independent within the meaning of Article 21 of Law
4449/2017.
• Provision of non-audited services by statutory Auditors: The statutory auditors do not offer to the
Company non-audit services which are prohibited, as per the provisions article 5 of Regulation (EU)
537/2014 of the European Parliament and of the Council and of Law 4449/2017, that are relevant to
the audit of the financial statements in Greece.
• The non-audit services that have been provided to the Company, during the year ended as at 31
December 2023, are disclosed in the note 25 to the financial statements.
b) Information systems’ controls
Given that the financial reporting processes are highly dependent on information systems, the Company
has undertaken a series of actions aimed at the operating effectiveness of controls in order to ensure
the completeness and accuracy of the financial records.
Specifically, the IT & BPS Department is responsible for defining and implementing the strategy in
matters of technology and IT and is responsible for the development and support of the Company's
applications and systems, as well as, for the implementation of information security safeguards.
Information Systems Security
The Company implements a comprehensive monitoring and control framework for its information
systems which includes a set of control mechanisms, policies, and procedures in order ensure
compliance with required regulatory frameworks and guidelines (e.g. NIS Directive (L. 4577/2018).
To enhance cybersecurity in 2023, the Company has implemented the below measures:
• Optimization of the existing security policies and creation of new policies based on the cyber security
assessment.
• Set up the mechanism in cyber security training including user awareness training course and
campaigns.
• Design and execute IT Emergency plan and drill, including tests and recovery procedures for critical
infrastructure.
• Regular penetration and vulnerability Assessments for public and internal systems.
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Information Systems Governance
In 2023, the Company concluded a comprehensive consulting endeavor focused on an audit of the IT
management system, penetration test, baseline inspection, risk assessment, etc. This involved
meticulously outlining processes that oversee Information Systems governance and taking several
measures to strengthen the controls for its information systems. By implementing these measures and
continuously monitoring and improving information systems controls, the Company can enhance the
security and integrity of its data and protect against potential threats and risks.
Finally, the Company has implemented technical arrangements through which the provision of IT
services is ensured in case of unexpected events that could cause loss of system availability.
IV. Reference to the information required by points (c), (d), (f), (h) and (i) of paragraph 1 of article 10
of the Directive 2004/25/EC
The above information is included in another part of the Management Report, i.e. in the Explanatory
Report of the Board of Directors according to article 4, par. 7 and 8 of Law 3556/2007.
V.Composition and function of the administrative and supervisory bodies of the Company
A. General Assembly of Shareholders
1. The General Assembly (GA) of the shareholders of the company is the supreme body of the Company
and is entitled to decide on any affair regarding the Company. Its legal resolutions also bind the absent
or disagreeing shareholders.
2. The GGA of shareholders is convened by the BoD and meets obligatorily at the seat of the Company
or in the region of another municipality within the region where the seat of the company is located, at
least once in any corporate fiscal year until the tenth (10th) calendar day of the ninth month at the
latest after the end of the corporate financial year. It may also be convened at the region of the
Municipality, in which the seat of the Athens Stock Exchange is located.
3. The GA has a quorum and validly meets on the issues of the daily agenda, provided they are present
or represented therein shareholders representing at least one fifth (1/5) of the paid share capital. If no
such quorum occurs at the first meeting, a repetitive GA is convened within twenty (20) days from the
date of the cancelled meeting, which is convened at least ten (10) days prior to this meeting, unless the
procedure of article 9 par. 5 last sentence of these articles of association has been applied. This
repetitive GA has quorum and validly meets on the issues of the initial daily agenda, whichever is the
part of the paid share capital of the company, which represented in the meeting. The resolutions of the
GA are taken upon full majority of the votes represented in the meeting.
4. Until the election of its Chairman, performed by the same meeting with a simple majority, in the GA
chairs the Chairman of the BoD or his/her alternate. The Chairman of the meeting may be assisted by a
secretary and a teller, elected in the same way. The Chairman checks if the convocation of the GA
follows the normal procedure, the identity and legalization of those present in the meeting, the
accuracy of the minutes, administers the discussion, sets the issues on vote and announces the results
of the vote.
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5. The discussions and resolutions of the GA are limited to the issues of the daily agenda. The result of
the voting is announced by the Chairman of the GA as soon as it is confirmed. The company, under the
responsibility of its BoD, publishes in its website the results of the voting within maximum five (5) days
from the date of the GA, specifying for each resolution at least the number of shares for which valid
votes were given, the percentage of the share capital that is represented by these votes, the total
number of valid votes, as well as the number of votes for and against each resolution and the number
of the absences.
The Ordinary GA of the Company's Shareholders in the year 2023, took the following decisions:
1. Approval of the Financial Statements of the fiscal year 01.01.2022 – 31.12.2022, along with the
Board of Director’s Annual Report and the Independent Auditors’ Report.
For the above item agreed shareholders who participated in the GA representing 19,994,902 registered
shares, representing 79,980% of the paid-up share capital of the Company or 99,987% of the voting
shareholders and abstained shareholders who participated in the General Assembly representing 2,525
registered shares, representing 0,010% of the paid-up share capital of the Company or 0.013% of the
voting shareholders.
2. Distribution of dividend of the fiscal year 01.01.2022 – 31.12.2022.
For the above item - agreed shareholders who participated in the GA, with 19,996,978 registered
shares, representing 78.988% of the paid-up share capital of the Company or 99.998% of the voting
shareholders.
3. Approval of the remuneration report under article 112 of law 4548/2018 for the year 01.01.2022 –
31.12.2022.
For the above item agreed shareholders who participated in the GA, representing 19,681,088
registered shares, representing 78.724% of the paid-up share capital of the Company or 99.418% of the
voting shareholders.
4. a) Approval of the remuneration and fees paid to the BoD members for the fiscal year 01.01.2022 –
31.12.2022, according to article 109, paragraph 1 of Law 4548/2018, and b) Approval of advance
payment of remuneration and fees for the fiscal year 01.01.2023 – 31.12.2023 according to article 109,
paragraph 1 of Law 4548/2018.
For the above item agreed regarding the item (a) shareholders who participated in the GA,
representing 19.996.978 registered shares, representing 79.988% of the paid-up share capital of the
Company or 98.82% of the voting shareholders, and regarding the item (b) shareholders who
participated in the GA, representing 19,704,935 registered shares, representing 78.820% of the paid-up
share capital of the Company or 98.537% of the voting shareholders.
5. Approval of the overall management of the Company according to article 108 of Law 4548/2018, as
in force, and discharge, pursuant to the article 117 of L. 4548/2018, of the Statutory Auditors of the
Company from any liability for compensation for the fiscal year 01.01.2022 – 31.12.2022.
For the above item agreed shareholders who participated in the GA, representing 19,801,018
registered shares, representing a percentage of 79.204% of the paid-up share capital of the Company or
a percentage of 99.018% of the voting shareholders.
6. Election of Auditing Firm, for the statutory audit of the financial statements of the Company for the
fiscal year 01.01.2023 – 31.12.2023.
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For the above item agreed shareholders who participated in the GA, representing 19,955,039
registered shares, representing 78.820% of the paid-up share capital of the Company or 99.788% of the
voting shareholders.
7. (a) Election of a new BoD of the Company, (b) definition of its term of office and (c) appointment of
its independent members, in accordance with the current regulatory framework.
For the above item regarding the issue (a) shareholders who participated in the GA, representing
17,920,137 registered shares, representing 71.681% of the paid-up share capital of the Company or
89.612% of the voting shareholders,
regarding the issue (b) shareholders who participated in the GA, representing 18,212,538 registered
shares, representing 72.850% of the paid-up share capital of the Company or 91.074% of the voting
shareholders, regarding the issue (c) shareholders who participated in the GA representing 18,179,313
registered shares, representing 72.717% of the paid-up share capital of the Company or 90.808% of the
voting shareholders.
8. Election of a new Audit Committee (redefinition of its type, its term, the number and capacity of its
members).
For the above item agreed shareholders who participated in the GA, representing 18,212,538
registered shares, representing 72.850% of the paid-up share capital of the Company or 91.074% of the
voting shareholders.
9. Approval of the revision of the Remuneration Policy according to L. 4548/2018.
For the above item agreed shareholders who participated in the GA, representing 19,626,508
registered shares, representing 78.506% of the paid-up share capital of the Company or 98.145% of the
voting shareholders.
10. Approval of the revision of the suitability policy of the members of the BoD of the Company
according to article 3 of L.4706/2020.
For the above item agreed shareholders who participated in the GA, with 19,996,978 registered shares,
representing 78.988% of the paid-up share capital of the Company or 99.998% of the voting
shareholders.
They were also presented for the information of the shareholders, without being put to a voting
process:
1. Presentation of Company’s Audit Committee Activity Report for the fiscal year 01.01.2022 –
31.12.2022, in accordance with the article 44 of L. 4449/2017, as in force.
2. Presentation of the Report of the Independent non-Executive members of the BoD Activity Report, in
accordance with the article 9 of L. 4706/2020, as in force.
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B. Board of Directors
1. Compositition - Operation - Power - Duties of the BoD
Compositition - Operation of the BoD
1. The Company is managed by the BoD composed by nine (9) to thirteen (13) members (directors),
elected by the GA, subject to paragraph 2 below, with absolute majority of the represented votes, for a
duty up to five (5) years, which is extended until the expiry of the deadline, within which the next
ordinary GA following directly the previous one must be convened and until the adoption of the
relevant resolution.
2. As long as the Hellenic Republic Asset Development Fund S.A. or any global successor or successor by
operation of law of the Hellenic Republic Asset Development Fund S.A. (each and collectively, the
“FUND”) holds at least one million two hundred and fifty thousand (1,250,000) voting shares and less
than 10% of the voting shares issued by the Company and subject to the FUND is entitled to appoint
one (1) Member pursuant to article 79 of Law 4548/2018 as in force. If the FUND holds at least 10% of
the voting shares, the FUND is entitled to appoint 1/3 of the total number of Members of the BoD of
the Company.
3. Should any Director appointed pursuant to paragraph 2 of this article resign or become incapacitated
for whatever reason, they shall be replaced by such persons the HRADF shall specify in a pertinent
written notice to the Company, with immediate effect.
4. The directors, shareholders and non-shareholders may always be reelected and are freely revocable.
5. Member of the BoDmay also be a legal person. In this case the legal person is obliged to appoint a
natural person for the exercise of the powers of the legal person as member of the BoD. This
appointment is subject to publicity according to article 13 of the L.4548/2018. The natural person is
jointly and severally liable together with the legal person for the company's management.
6. The BoDconsists of executive, non-executive and independent nonexecutive members.
7. Executive members are those who deal with the day-to-day management of the Company. The
executive members of the BoD, in particular: (a) are responsible for the implementation of the strategy
determined by the BoDand (b) consult at regular intervals with the non-executive members of the BoD
on the most appropriate strategy to be implemented. In situations of crisis or risk, as well as when
circumstances require it to take measures that are reasonably expected to significantly affect the
Company, such as when decisions are to be made regarding the development of the business and the
risks that are expected to affect the financial situation of the Company, the executive members inform
the Board of Directors in writing without delay, either jointly or separately, submitting a relevant report
with their estimates and proposals.
8. The non-executive members of the BoD, including the independent nonexecutive members, have, in
particular, the following obligations: (a) They monitor and examine the Company's strategy and its
implementation, as well as the achievement of its objectives. (b) Ensure effective oversight of executive
members, including monitoring and control of their performance. (c) Examine and express views on the
proposals submitted by the executive members, based on existing information.
9. The number of non-executive members of the BoD must not be less than 1/3 of the total number of
members, including independent non-executive members.
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(amounts in Euro unless stated otherwise)
10. Independent non-executive members are those members who are elected by the GA, or appointed
by the BoD (according to par. 4 of article 9 of Law 4706/20120), who are free from financial, business,
family or other relationships of dependency with the Company or with persons related to it, which may
influence their decisions and their independent and objective judgment, and meet the additional
conditions provided by the relevant legislation (article 9 of Law 4706/2020), including non-executive
obstruction assistance and not exceeding the maximum permitted percentage of their participation in
the share capital of the Company.
Power - Duties of the BoD
1. The BoD, acting collectively, exercises the management of the Company and exercises control over
its all activities. Manages the corporate property, represents the Company and makes decisions on all
matters concerning the Company with a view to promoting the corporate purpose, except for matters
relating to the exclusive responsibilities of the GA of Shareholders.
It is further responsible for the complete and effective control of the Company's activities and acts in
accordance with the provisions of the law and the articles of incorporation.
The main responsibilities of the BoDinclude:
• The drawing up of strategic directions, including the sale or otherwise disposal of the Company's
shares, the acquisition of any company or the proposal to merge the Company with another company,
which are subject to the final approval of the GA of the shareholders.
• The management and disposal of the corporate property and the representation of the Company in
court and out of court.
• The conclusion and receipt of loans on behalf of the Company.
• The conclusion of any kind of contract, subject to articles 99 -101 of Law 4548/2018 and agreements
with any third physical or legal persons.
• Ensuring the completeness and reliability of the data and information required for the accurate and
timely determination of the financial situation of the Company and the preparation of reliable financial
statements, as well as its non-financial situation, according to article 151 of law 4548/2018.
• The preparation of the annual budget and the business plan of the Company.
• Defining and achieving the Company's efficiency goals.
• Monitoring the progress of the Company and the control of large capital expenditures.
• Ensuring the adequacy and efficiency of the Company's Internal Control System, which aims in
particular:
a) the consistent implementation of the business strategy,
b) the identification and management of material risks associated with its business and operation,
c) the efficient operation of the internal control unit.
• Ensuring that the functions of the Internal Audit System are independent of the business sectors they
control, and that they have the appropriate financial and human resources, as well as the powers to
operate them effectively.
• The definition of the strategy and business risk management of the Company.
• The formulation, dissemination and application of the basic values and principles of the Company that
govern its relations with all parties, whose interests are related to those of the Company.
• The convergence of the General Assemblies (regular or extraordinary) and the determination of the
issues of its agenda.
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(amounts in Euro unless stated otherwise)
• The preparation of the Company's remuneration policy, which is submitted for approval by the GA of
Shareholders (following a relevant proposal of the Remuneration Committee).
• The submission of a proposal for approval by the GA of Shareholders for the distribution of
dividends.
• The submission of a proposal for approval by the GA of Shareholders for the election of Statutory
Auditors, for the regular audit of the financial statements of the Company (following a relevant
proposal of the Audit Committee).
• The submission of a proposal for approval by the GA of Shareholders for the eligibility policy of the
members of the BoD (as well as any substantial modification) and its posting on the Company's
website.
• The preparation of training policy for the members of the BoDand executives of the Company.
• The approval and any revision of the Internal Regulation of the Remuneration Committee as well as
the Nominations Committee (following a relevant suggestion of the above Committees).
• The responsibility for the compliance of all types of activities of the Company with the regulatory and
legislative framework, as well as the internal regulations governing the operation of the Company.
• The succession planning for the members of the BoD and the Chief Executive Officers.
The annual collective evaluation of the effective BoD functioning, the fulfillment of its duties as well as
its committees.
The adoption of a calendar of meetings and an annual action plan, at the beginning of each calendar
year, which is revised according to the developments and needs of the Company, in order to ensure the
correct, complete and timely fulfillment of its duties.
• Supervising the implementation as well as ensuring the adequacy and effectiveness of the corporate
governance systems on which the Company operates and taking appropriate action to address
deficiencies.
• The appointment of the head of the Internal Audit Service of the Company.
• The possibility of assigning the duties of Coordinator or Mandated Advisor to one or more of its
members.
2. The BoDmay, only and exclusively in writing, assign the exercise of all its powers and duties, save
these requiring a collective action, as well as the representation of the company to one or more
persons, members of the BoD, managers and employees of the company or third parties, by specifying
at the same time the scope of such assignment as well. All these persons may, as long as it is provided
by the relevant resolution of the BoD, assign further the exercise of the powers entrusted to them or
part of these powers to other members or third parties.
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(amounts in Euro unless stated otherwise)
Constitution and Convocation of the BoD
Constitution of the BoD
1. The BoD elects one of the Directors as Chairman and may designate up to two (2) other Directors as
Vice Chairmen.
2. The Chairman of the BoD chairs its meetings and exercises the responsibilities provided by law and
the articles of association. When the Chairman is absent or hindered, he shall be replaced by the
appointed for this purpose Vice Chairman.
3. In case the BoD, by way of derogation from par. 1, of article 8 of law 4706/2020 appoints as
Chairman one of the executive members of the BoD, it obligatorily appoints a vice-chairman from the
non-executive members.
4. The BoD elects a Member as the Chief Executive Officer of the Company. The Chief Executive Officer
and the Chairman may be the same person.
Chairman of the BoD
The Chairman of the BoD (in addition to his duties, which stem from his capacity as executive member
of the BoD and as legal representative of the Company) coordinates and directs the meetings and the
general operation of the BoD. Chairman of the BoD, has the responsibility of convening the BoD in a
meeting, setting the agenda, ensuring the good organization of the work of the BoD, but also the
effective conduct of its meetings. It is also the responsibility of the Chairman to ensure the timely and
correct information of the members of the BoD, as well as his effective communication with all
shareholders, with a view to fair and equal treatment of the interests of all shareholders.
Vice Chairman of the BoD
In case of temporary absence or impediment of the Executive member and Chairman of the BoD, the
Vice Chairman of the BoD convenes and chairs the meetings, ratifies the minutes, as well as issues the
official copies and extracts of his minutes.
Chief Executive Officer
The Chief Executive Officer in collaboration with the Executive Chairman of the BoD) monitors and
controls the implementation of the strategic objectives of the Company and the management of the
affairs (day-to-day management) of the Company and draws up the guidelines of the Company.
Supervises and ensures its smooth, orderly and efficient operation, in accordance with the strategic
objectives, business plans and action plan, as determined by decisions of the BoD and the GA. The BoD
of the Company may elect Deputies and Assistants of the Chief Executive Officer, whose responsibilities
may relate to the responsibilities and jurisdictions of the Chief Executive Officer as well as the
coordination and supervision of the individual organizational units of the Company.
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(amounts in Euro unless stated otherwise)
Convocation of the BoD
1. The BoDshould meet any time provided by law, the articles of association or required under the
needs of the company.
2. Meetings of the BoD shall convene within the Municipality of the registered office of the Company or
alternatively within the prefecture of the Municipality of the registered office of the Athens Exchange.
Alternatively, meetings of the BoD may convene in Mainland China or Hong Kong.
3. The BoD may duly meet at another place out of the seat of the company, located either in Greece or
abroad, provided that in this meeting all the members of the BoD are present or represented, and no
member objects to the execution of the meeting and to the adoption of resolutions.
4. The invitation to the members of the BoD may provide that the meeting of the BoD will take place
through conference call for some or for all members. In this case, the invitation addressed to the
members of the BoD includes the necessary information and technical instructions about their
participation in the meeting.
5. The BoD is convened by the Chairman or Vice Chairman who chair its meetings, upon invitation
notified to its members at least two (2) working days prior to the meeting, and at least five (5) working
days if the meeting is going to be held in a location outside the seat of the company. In the invitation
the issues of the daily agenda must be stated clearly, otherwise the adoption of resolutions is
permitted only if present or represented are all the members of the BoDand none objects to the
adoption of resolutions.
2. Number of meetings of the BoD, frequency of participation of each member and major issues dealt
with by the BoD
In 2023, 9 meetings of the BoD took place. In particular, the table below shows the number of meetings
attended by the members of the BoD.
* Mr. Zhu Jianhui was Vice Chairman ad non-executive member of the BoD until 03.05.2023, the date
on which his resignation was approved by the BoD.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The main issues discussed at the BoD’ meetings during the 2023 financial year:
• Approval of the Financial Statements.
• Approval of Annual Audit Plan.
• Submission of proposal to the GA for the amendment of Regulation Policy.
• Submission of proposal to the GA for the amendment of Suitability/eligibility Policy of BoD
members.
• Submission of proposal to the GA for the approval of the financial year 2022 Regulation Report.
• Submission of proposal to the GA for the election of BoD members due to the expiry of their
term of office.
• Appointment of members of the Audit, Nomination and Remuneration Committee.
• Approval of the 2023 Budget.
• Approval of PPA S.A. Risk Appetite Statement for the year 2023.
• Approval of updated PPA SA Code of Conduct.
• Approval of updated PPA SA Policy for Prevention and Treatment of Conflict of Interest Situations
• Approval of updated Company’s Internal Organization and Operation Regulation (IOOR)
• Conclusion of a service contract between PPA SA and COSCO Shipping Technology Co, Ltd., for the
design and implementation of a unified financial accounting and financial management system
• Conclusion of a service contract between PPA SA and COSCO Shipping Ports Limited, for the SAP
CLOUD support services.
• Conclusion of a contract between the PPA SA and the related company COSCO Shipping
Specialized Carriers for the transport of significant volumes of Chinese gasoline and electric cars from
Asia to final destinations (mainly Europe and Africa) with the port of Piraeus to function as a
transportation hub
* In the last three cases, the approval procedures of the above contracts were followed, in accordance
with article 100 par. 1 of Law 4548/2018.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
CV’s of members of the BoD and Deputies CEO
CV’s of the BoD members
Below are presented the CV’s of the members of the BoD members pursuant to the provision of Article
18 of Law 4706, 2020 which can are available on the web page of the Company, at the link
https://www.olp.gr/en/about-us/corporate-governance/board-of-directors.
Mr. Yu Zenggang
Mr. Yu Zenggang is Executive Vice President and Member of China COSCO SHIPPING Corporation
Limited. He started his career in August 1984, and served as the Chief Representative of the Japan
Representative Office of Shanghai Shipping Bureau, BoD Member and President of Shanghai Haixing
Shipping (Japan) Co. Ltd., Deputy General Manager, General Manager of the Development Division of
China Shipping (Group) Company, Executive Vice President of China Shipping (North America) Holding
Co., Ltd., President of China Shipping (Europe) Holding GmbH, General Manager of the President Office
of China Shipping (Group) Company, Director of BOD Office and General Office, Executive Vice
President and BOD Secretary of China Shipping (Group) Company. He has over 35 years’ working
experience in shipping industry, and has abundant expertise in corporate management, corporate
governance, overseas port industry development, international operation, and listed company
management. Mr. Yu Zenggang graduated from Wuhan University of Technology with a Bachelor’s
Degree of engineering science in 1984 and obtained the Master’s Degree in from CEIBS (China Europe
International Business School).
Mr. Zhang Anming
Mr. Zhang Anming has over 25 years of work experience in the shipping industry. Mr. Zhang has
extensive experience in container shipping and management. He has served (period 1996-2002 and
2009-2012) from different financial managerial positions COSCO Container Lines Ltd, while he had
international working experience from serving as Deputy General Manager of COSCO Container Lines in
Italy (period 2002-2008). In 2012 he appointed as Deputy General Manager and in 2016 Managing
Director of Piraeus Container Terminal SA. He graduated from Peking University, Guanghua School of
Finance and Management.
Mr. Zhu Changyu
Mr. Zhu Changyu is a Director and the General Manager of COSCO SHIPPING (Hong Kong) Co., Limited.
Mr. Zhu had been the Head and Division Chief (handling division duty) of Planning division, Deputy
Manager of Marketing Division of China Shipping Group International Trade Co., Ltd., Manager of
Procurement Division and Assistant to General Manager of Shenzhen China Shipping Haisheng Asphalt
Co., Ltd., Manager of Comprehensive Trade Division of China Shipping Group International Trade Co.,
Ltd, manager of Development and Research Division, the Manager of Investment Management Division
and assistant to General Manager of China Shipping Group Investment Co., Ltd, the Deputy Supervisor
of Research Office, the senior manager of Secretarial Office of Executive Division, the Deputy General
Manager of Strategic Development Division of China Shipping (Group) Company, the Deputy Supervisor
of Integration Management Office, the General Manager of Strategy & Corporate Management Division
and the Supervisor of Deepening Reform Office of China COSCO SHIPPING Corporation Limited.
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(amounts in Euro unless stated otherwise)
Mr. Zhu has extensive experience in strategic planning, capital operation, corporate governance,
integration and reorganization. Mr. Zhu graduated from Shanghai Maritime College, major in
Transportation Management Engineering and obtained a Master’s degree. He is a Senior Economist.
Ms. LI Jin
Ms. LI serves since May 2020 till today as a Deputy Chief Executive Officer and Chief Financial Officer of
PPA SA. Ms. LI has over 25 years’ professional experience and throughout her career professional
served COSCO Ocean Shipping, China COSCO Holding and COSCO SHIPPING in various Financial
Managerial positions up to the General Manager of Finance Division level and she has international
working experience by serving COSCO SHIPPING Group, In Oceania and Europe. Ms. LI got the senior
accountant qualification certificate and senior economist qualification certificate in 2008, and became a
Certified management accountant in 2015. Ms. LI participated in “the National Accounting Leading
Talents training project” which was organized by Ministry of Finance of the People’s Republic of China
from 2012 to 2019 and in “the special training course for international talents” which was organized by
China COSCO Shipping Group in 2019. Ms. LI graduated from Beijing Vocational College of Finance and
Commerce and holds a bachelor’s degree in International Credit and Investment and a Master’s Degree
in Finance from Beijing Central University of Finance and Economics.
Mr. Kwong Che Keung Gordon
Mr.Kwong has been the Independent Non-executive Director of the COSCO SHIPPING INTERNATIONAL
(HONG KONG) CO., LTD since July 2020. Mr. Kwong is also independent nonexecutive director of a
number of listed companies in Hong Kong, namely, Agile Group Holdings Limited, Chow Tai Fook
Jewellery Group Limited, FSE Lifestyle Services Group Limited, Henderson Investment Limited,
Henderson Land Development Company Limited. Mr. Kwong graduated from The University of Hong
Kong with a bachelor’s degree in social sciences in 1972 and is a fellow member of the Institute of
Chartered Accountants in England and Wales and the Hong Kong Institute of Certified Public
Accountants respectively. Mr. Kwong was a partner of international accounting firms from 1984 to
1998 and an independent member of the Hong Kong Stock Exchange Council from 1992 to 1997, during
which he had also served as Chairman of both the Listing Committee and the Compliance Committee of
the Hong Kong Stock Exchange. He has over 40 years of experience in accounting and auditing, as well
as long experience in shipping industry.
Mr. Nikolaos Arvanitis
He studied and participated in seminars in the Maritime Economics, in the Management and
Organization of Shipping Companies and in Combined Transport. He has been graduated from BCA
College of Athens, London School of Foreign Trade and City of London Polytechnic. He started his career
in 1980 in London at FENTON STEAMSHIP CO, a subsidiary of Hellenic Lines LTD, and continued in Top
Management positions in Piraeus at ZIM HELLAS SA 1984-2010 and at VISTA MARITIME & LOGISTICS
LTD since 2010. He has participated since April 2000, as an elected member of the BoD of the
International Maritime Union, (an institution representing the agencies of international shipping
companies in Greece) and was elected President of the BoD for two consecutive terms Apr. 2006 - Mar-
2012.
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(amounts in Euro unless stated otherwise)
In June 2013 the International Maritime Union BoD unanimously named him as Honorary President.
Due to his institutional role as President of the International Maritime Union, he participated in
working committees and meetings on issues related to the Port Industry, Shipping Policy, Customs and
Regulation Issues, in collaboration with the Ministry of Merchant Shipping & Island Policy, the General
Secretariat of Ports Policy and Maritime Investments, the PPA SA and other Port Organizations, the PCT
SA, the Customs Administration. He has participated in many national and international conferences on
port industry development, liner shipping services, combined transport and supply chain & Logistics
infrastructure. His articles and interviews have been published in many magazines, newspapers and
media both in Greece and abroad.
Ms. Yu Tao
Ms. Yu Tao is economist (graduated from University of International Business and Economics) and she
also holds a Master degree in Business Administration (Guanghua School of Management Peking
University), while she has significant experience in the following areas:
• "International Transportation"
• "Business Administration"
• "Import/Export trade"
• "Logistics"
• "Shipping Lines Management"
• "Container Lines Management".
Ms. YU Tao has also served in various management positions (Deputy Chief Executive Officer) at COSCO
Logistics Co., COSCO Container Lines Co., and COSCO SHIPPING Lines Co.
Mr. Moralis Ioannis
Mr. Moralis Ioannis studied at the finance department of the University of Piraeus. Son of the late
Minister Petros Moralis was always interest in citizenship and politics but without having actively joined
a political party. He works since the age of 22 years old. For more than 20 years he was engaged in
Piraeus both as a freelancer in the field of Sports Marketing and communication, as well as the strain
Olympiacos FC having taken major positions of responsibility. In 2011 he was appointed Vice President
and General Manager of Olympiacos FC. In 2012 he was elected Chairman of the Super League. In 2014
and in 2019 he was elected Mayor of Piraeus.
Mr. Dimitris Politis, Chief Executive Officer of Hellenic FUND
Dimitris Politis is a graduate of the American College of Greece and holds an MBA in International
Business & Export Management from City University Business School in London, as well as various
professional certifications. Since 1993, he has held positions of responsibility at international financial
organizations. He began his career at HSBC Bank PLC, initially in Athens and then in London, in the
Sector of Investment Banking, covering Greece and the wider region of Southeast Europe and the
Middle East. He returned to Athens in 2001 as head of Credit Commercial de France, and in 2003 he
returned the HSBC Bank plc Greece as Head of Corporate & Institutional Banking.
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(amounts in Euro unless stated otherwise)
From 2012 to September 2020, he worked at Credit Suisse AG, based in Zurich, as head of Wealth
Management UHNWI for Greece and Cyprus while in October 2020 he took on the same role at EFG
Bank AG, based in Zurich. Mr. Politis is highly experienced in attracting and managing investments in
strategic sectors of the economy and has close professional relationships with international
institutional and private investors.
CV’s of Deputies CEO
Captain Jin Beiyuan has ten years’ officer experience on Ocean Going Ship from 1991-2002. Since then
he has served for China Shipping Container Line as planner and operator, General Manager of China
Shipping Europe Holding operator and planner department, General Manager of China Shipping
(France) Agency, Vice General Manager of China Shipping Car Carrier Company Limited, and General
Manager of Guangzhou Cosco Shipping Car Carrier company limited. He now serves as Deputy CEO in
Piraeus Port Authority (since 2022).
Mr. QU Shengbin is a Senior Economist and holds a University Degree and an MSc in Transportation
Planning and Management. He has two decades of work experience in the shipping and logistics
industry. He joined the COSCO family initially working and gaining extensive business experience,
covering a wide range of fields such as shipping agent, cargo forwarder, air cargo transport, project
logistics, project management, etc.. He then enriched his company management experience, serving as
top management member in COSCO Logistics ShenZhen, KunMing, GuangXi and PENAVICO FangCheng.
Furthermore, Mr. Qu was appointed to upper managerial positions in COSCO SHIPPING headquarters,
in both the Operation Management Division and the Strategic and Corporate Management Division. He
now serves as Deputy CEO in Piraeus Port Authority (since 2022).
Mr. Panagiotis Tsonis is a graduate of the Department of Civil Engineering of the Polytechnic School of
the University of Patras and holds a master's degree in the Organization and Administration of Public
Services, Public Organizations & Enterprises of the University of Peloponnese.
He has many years of experience as a Civil Engineer and has served in leadership positions in
organizations in both the private (construction companies) and public sectors. In the period 2019-2023,
he held the position of CEO of the Patras Port Authority.
He has been vice-president of the Delegation of the Technical Chamber of Greece, President of the
Association of Civil Engineers of Achaia and member of the governing committee of the Technical
Chamber of Greece/TDE, while he is a member of the ELOT/TE 20 Technical Committee and of the
National Accreditation Council.
Mr. Angelos Karakostas joined COSCO SHIPPING Lines (Greece) S.A. in 1997 as General Manager. In
2009, he was appointed Deputy General Manager of the Piraeus Container Station (PCT SA). In August
2016, he took over the duties of Deputy CEO of the Port of Piraeus SA. He holds a degree in
Mathematics and a postgraduate degree in Business Research from the University of Patras. He holds
an MBA and an MSc in Management from Teeside University of the United Kingdom.
From the above Members of the BoD and Company Executives Mr. Nikolaos Arvanitis, Independent
Board Member on 31/12/2023 held 500 shares of PPA SA and Mr. Angelos Karakostas on 31/12/2023
held 1559 shares of PPA SA.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
For the fiscal year 01.01.2022-31.12.2022, the compensations paid to the BoD members are those
provided in the current Remuneration Policy and as has been approved by GA of Shareholders decision
(gross annual compensation for each BoD member of the amount of € 40,000.00 as well as gross annual
maximum total amount for the independent members of the BoD and the FUND representative, for
their participation in the meetings of the BoD Committees (Audit - Remuneration - Nominations
Committees), regardless of the total number of Committees in which they participate, amounting to €
20,000.00.
It is to be noted that in 2023, the Company prepared the members of the BoD remuneration report for
fiscal year 01.01.2022-31.12.2022 in accordance with article 112 of Law 4548/2018. The remuneration
report was discussed at the Regular GA of the Company on 02.08.2023, which was attended by
shareholders representing 79.99% of the share capital, while the percentage of "FOR" votes amounted
to 99.42% of the shareholders present. The remuneration report for the fiscal year 01.01.2022-
31.12.2022 is available on the Company's website: https: //www.olp.gr/en/about-us/corporate-
governance/board-of-directors .
3. Assertion of compliance with independence criteria for Independent BoD members (par. 3 article
9 of Law 4706/2020)
The BoD, following a relevant recommendation of the Nominations Committee, ascertained (BoD
26/2023) that each of the three (3) independent members (a) KWONG Che Keung Gordon, (b)
ARVANITIS Nikolaos, (c) MORALIS Ioannis, at the time of their appointment met all suitability and
reliability criteria included in the Suitability Policy, for their election as members of the Company's BoD,
and the conditions of independence defined in article 9 par. 1 and 2 of law 4706/2020, as in force, as
well as that there are no obstacles or incompatibility in the face of any Candidate in relation to any
relevant provisions, including the Corporate Governance Code (HCGC) applied by the Company and the
Rules of Operation of the Company.
In particular, none of the above, directly or indirectly held a percentage of voting rights greater than
zero-point five percent (0.5%) of the share capital of the Company and each of them was free from
financial, business, family or other dependent relationships, which may influence their decisions and
their independent and objective judgment.
Furthermore, from the performed audit and from the relevant personal declarations submitted by each
of the above independent members, it had been confirmed that, apart from the criteria of par. 1 of
article 9 of Law 4706/2020, as in force, the indicative dependence criteria of par. 2 of article 9 of Law
4706/2020, as in force, are not met either, as each of the above proposed independent members:
Did not receive any significant remuneration or benefit from the Company, or from a company
affiliated with it, nor participated in a stock options scheme or in any other remuneration or benefit
system related to the performance, other than the fee for their participation in the BoD or its
committees, nor participates in the collection of fixed benefits under the pension system, including
deferred benefits, for previous services to the Company.
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(amounts in Euro unless stated otherwise)
Had neither the same nor a person, who had close ties with it, a business relationship during the last
three (3) financial years before their appointment with: ba) the Company or bb) a person affiliated with
the Company or bc) a shareholder who directly or indirectly held a participation percentage equal to or
greater than ten percent (10%) of the share capital of the Company during the last three (3) financial
years before their appointment, or a company affiliated with them, if this relationship affected the
business activity of either the Company or the candidate independent non-executive member of the
BoD of the Company or the person who had close ties with them.
Had neither the same nor a person who had close ties with it had: ca) served as member of the BoD of
the Company or any company affiliated thereto for more than nine (9) financial years in total at the
time of their election, cb) been an executive or maintained an employment or contractor or services
provision relationship or a paid mandate with the Company or with a company affiliated with it during
the last three (3) financial years prior to its appointment, cc) a second degree kinship by blood or by
marriage, or is a spouse or partner equated with a spouse, member of the BoD or senior executive or
shareholder, with a participation percentage equal to or greater than ten percent (10%) of the share
capital of the Company or a company affiliated with it, cd) been appointed by a certain shareholder of
the Company, in accordance with the articles of association, as provided in article 79 of law 4548/2018,
ce) been nominated as represented of shareholders who directly or indirectly hold a percentage equal
to or greater than five percent (5%) of the voting rights at the GA of the Company's shareholders during
his/her term of office, without written instructions, cf) conducted a mandatory audit of the Company or
a company affiliated with it, either through a company or himself or a second-degree relative by blood
or by marriage of him/her or his/her spouse, during the last three (3) financial years prior to his/her
appointment, cg) been assigned as an executive member in another company, in the BoD of which an
executive member of the Company participates as a non-executive member.
4. Suitability Policy of the BoD Members
The Company has adopted and implements a Policy for the Suitability Assessment of the Members of
the BoD (Suitability Policy), which has been approved by decision of the GA of 15.06.2021, following the
approval of the BoD by its resolution dated 12.05.2021, and constitutes the set of principles and criteria
that apply when selecting, replacing, and re-appointing Board members, in terms of assessing their
suitability on an individual and collective level. This Policy aims to ensure the quality of recruitment to
the Board, its effective functioning and fulfilment of its role, based on the Company’s general strategy
and medium and long -term business goals for promoting its corporate interest.
The Policy for the Suitability Assessment of the Members of the BoD is posted on the Company’s
website at the following address: https://www.olp.gr/en/about-us/corporate-governance/policies
The Eligibility/Suitability Policy aims to ensure that.
a) the BoD is staffed with sufficient number of members and a suitable composition;
b) the BoD is staffed with persons of morality and reputation;
c) the members of the BoD have the skills and experience required based on the duties they undertake
and their role on the BoD, while at the same time they have sufficient time to perform their duties;
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(amounts in Euro unless stated otherwise)
d) in the selection, renewal of the term of office and replacement of a member, the evaluation of
individual and collective suitability is taken into consideration;
e).The Eligibility/Suitability Policy stipulates that the candidate members of the BoD know, among other
things, as much as possible, before taking the position, the culture, the values and the general strategy
of the Company.
The suitability of the BoD members is assessed both on an individual and a collective level.
Individual suitability means that a person is considered to have - as a Board member - sufficient
knowledge, skills, experience, independence of mind, good repute and moral standing for the
performance of their duties as a member of the Company’ s BoD, for which performance of duties
he/she shall also commit sufficient time, pursuant to the said Policy, which establishes specific criteria
for the assessment of all above factors.
Collective suitability means that the Board collectively should be suitable for carrying out its
responsibilities and should be composed in such manner as to contribute to the effective management
of the Company and to balanced decision-making.
BoD members should collectively be able to take appropriate decisions taking into account the business
model, risk-taking, strategy and markets in which the Company operates. Also, the members of the BoD
collectively are able to effectively monitor and critique the decisions of senior management.
All areas of knowledge required for the business activities of the Company are recommended to be
covered by the Board collectively with sufficient expertise among its members. It is recommended that
there be a sufficient number of knowledgeable members in each area to be able to discuss the decisions
to be taken. The Bod members collectively have the necessary skills to present their views.
The composition of the BoD reflects the knowledge, skills and experience required to carry out his / her
responsibilities. The BoD in its executive function should benefit from a high level of managerial skills as
a whole; whereas in its supervisory function the BoD should avail itself of sufficient management skills
as a whole in order to organize its work efficiently and be able to understand and process the proposals
for respective decisions. In this context, the BoD as a whole adequately understands the areas for which
members are collectively responsible and to have the necessary skills to exercise the actual
management and supervision of the Company, including in terms of:
- its business and the main risks associated with it,
- strategic planning,
- financial reports,
- compliance with the legislative and regulatory framework,
- understanding corporate governance issues,
- the ability to identify and manage risks,
- the impact of technology on its activity,
- adequate gender representation.
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(amounts in Euro unless stated otherwise)
5. Training Policy for BoD Members and company Executives
The primary obligation and duty of the BoD is to oversee the functions of the Company and ensure the
continuous pursuit of strengthening the long-term financial value of the company and the defense of
the general Corporate interest.
The Training Policy aims at providing Orientation & Training programs to be offered to the BoD
members and other Company Executives (particularly those involved in internal control, risk
management, regulatory compliance and information systems). It aims at building leadership qualities
and providing a platform to share the knowledge, skills and experience gained by the BoD members and
other Company Executives.
The Company invests on the education of BoD members and other Company Executives, with their
individual areas of expertise on an ongoing basis, since the attendance of regular training programmes
and organization of regular in-house or external trainings will enable them:
- to discharge their roles and responsibilities in a most effective manner.
- to empower and equip the BoD and its Committees with skills and attitudes required to perform
their challenging tasks and play their role manner as per the best corporate governance
practices.
- to promote better understanding of professional requirements within the socio-economic and
political environment in which Company is operating.
- to promote an environment conducive to learning and development by serving as a role model for
all the other employees in the corporation.
Within 2023, the BoD Members attended for the second year in a row a training seminar of the Hellenic
Corporate Governance Council, with the aim of improving skills and a better understanding of corporate
governance issues.
The Company also shall ensure:
- on the one hand, that upon taking up their duties all BoD members are provided with a full induction
programme, and
on the other hand, that all BoD members update their skills and knowledge on an ongoing basis, in order
to effectively fulfil their duties as members of the BoD and its committees, subject to continuous
training by the Company for this purpose, in accordance with the provisions of the Training Policy.
6. BoD and Committee Evaluation Process – Results of Evaluation Process
In compliance with the provisions of Law 4706/2020, Circular 60 of the Capital Market Commission, the
Hellenic Code of Corporate Governance and the Internal Operating Regulations of the BoD, the
Company commissioned for a second consecutive year, the assessment of the adequacy and
effectiveness of the BoD and its Committees to an external consultant.
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(amounts in Euro unless stated otherwise)
The BoD Assessment Policy and the BoD Operation Regulation provides for the annual evaluation of the
effectiveness of the BoD (as a collective body), its committees and their individual members, while this
evaluation is provided by an external consultant every three years. To this end, as mentioned above,
the Company awarded to the company ERNST AND YOUNG Single Member Societe Anonyme for the
Provision of Advisory Services to carry out the evaluation process.
The evaluation concerned the collective abilities of the BoD as a body, its committees and the individual
abilities of its members. The evaluation was carried out using evaluation tools provided by the external
advisor (filling out an electronic questionnaire, etc.) and through personal interviews. The evaluator
had access to the BoD’s and BoD’s Committees operating details.
The purpose of the evaluation was to determine whether the Board and its Committees function
effectively and efficiently, based on the Board Directors’ responses to the online questionnaires
covering a wide range of topics, documentation review and selected interviews with Board Directors.
The conclusion of the above evaluation states, among other things, the following:
“Based on the evaluation of the BoDand its Committees, with a reference date 23 February 2024, no
notable weaknesses have been identified in our evaluation of the Board of Directors, its Committees
and the individual Board Members. There are also no immediate corrective actions that need to be
implemented in accordance with the current Legislate/Regulatory Framework.
The BoD operates effectively and in a manner that encourages open and frank discussion where all
Board Directors feel free to express their views.
The Board’s Committees are functioning at an efficient level, with no specific areas emanating
immediate risk. The Audit Committee has emerged as the most noteworthy and efficient Committee,
showcasing its well-functioning operation.
In respect to the evaluation of individual Board Members, it is concluded all Board Members possess
the necessary skills to handle their responsibilities and operate well in the Board, as does the
Chairperson”.
The above result is a confirmation of both the proper functioning of the BoD and its compliance with
the current legislative and regulatory framework.
7. External professional commitments of the BoD members
With a solemn declaration, the BoD members informed twice, about their other professional
commitments, that they do not participate in more than fivew (5) BoD of listed companies. For the
position of the President, the number is limited to three participations of other BoD based on the
Hellenic Corporate Governance Code provision.
The GA of August 2nd 2023 approved the re election of existing BoD members for two years. The term
of the above BoDexpires on August 2nd 2025.
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(amounts in Euro unless stated otherwise)
8. BoD members' Remuneration
The remuneration of the members of the BoD is determined by the Remuneration Policy, which was
prepared in the context of article 110 of Law 4548/2018 and includes all the information provided for in
article 111 of Law 4548/2018. The existing Policy was approved by the Extraordinary GAof August 2nd,
2023 (quorum: 79.99%, votes in favor: 98.1% of the represented shareholders) The Policy is available
on the corporate website www.olp.gr in the most specific option: Organization > Corporate Governance
> Policies.
Regarding Executive BoD Members
During the fiscal year 2023 and in compliance with the approved Company Remuneration Policy, the
remuneration of the Executive BoD Members shall be analyzed as follows:
Fixed Remuneration of Executive BoD Members
During the fiscal year 2023, the Company held contracts of employment with the Executive Members of
BoD, Mr Yu Zeng Gang (Chairman), Mr Zhang Anming (CEO), Ms LI Jin (CFO). These contracts of
employment were for an indefinite period and included a monthly salary and ancillary benefits, and
applied to those requirements of the labor law relating to periods of notice, retirement and the
payment of legal compensation in the event of termination of the contract. Furthermore, the above
Executive BoD Members received fees for their participation in the meetings of the BoD (in proportion
to the period of expiry or the beginning of their term of office within the year) which had been
approved by the Decision of 02.08.2023 of Annual GA (40,000.00€ annually per Member).
Variable remuneration of Executive BoD Members
During the fiscal year 2023, no variable remuneration was paid to any Executive Member of BoD. All
the above remuneration of the Executive BoD Members shall be subject to the deductions provided for
in the applicable tax and labor legislation.
Regarding Non-Executive BoD members
During the fiscal year 2023 and in compliance with the approved Company Remuneration Policy, the
remuneration of the Non-Executive BoD Members shall be analyzed as follows:
Fixed remuneration of Non-Executive BoD Members
During the fiscal year 2023, the Non-Executive BoD members received fees for their participation in the
meetings of BoD, which were approved by the Annual GA Decision of 02.08.2023 (€40,000.00 annually
per Member).
In addition, is granted a gross annual amount for the independent members of the BoD and the FUND
representative, for their participation in the meetings of the BoD Committees (Audit - Remuneration -
Nominations Committees), regardless of the total number of Committees in which they participate.
Variable remuneration of Non-Executive BoD Members
During the fiscal year 2023 no variable remuneration was paid to any non-executive BoD member. All
the above remuneration of the Non-Executive BoD members shall be subject to the deductions
provided for in the applicable tax and labor legislation.
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Shares and/or stock options for shares
The Company has not granted any shares or stock options for shares to either the BoDs or the DCEOs.
Use of retrievability of variable remuneration
The Company did not make use of the possibility to recover variable remuneration during the fiscal
year 2023.
It is to be noted that in 2023, the Company prepared the members of the BoD remuneration report for
fiscal year 01.01.2022-31.12.2022 in accordance with article 112 of Law 4548/2018. The remuneration
report was discussed at the Regular GA of the Company on 02.08.2023, which was attended by
shareholders representing 79.99% of the share capital, while the percentage of "FOR" votes amounted
to 99.42% of the shareholders present. The remuneration report for the fiscal year 01.01.2022-
31.12.2022 is available on the Company's website: https://www.olp.gr/en/about-us/corporate-
governance/board-of-directors.
9. Disclosure of direct and indirect conflicts of interest
The Company, exercising the exclusive right to own, use, manage, maintain, improve and exploit the
Port Concession Items, provides a wide range of port services and facilities. In the context of the
provision and in the exercise of these activities it is possible to create conflict of interest situations
detrimental to the interests of the Company, its shareholders, its customers and its suppliers.
The Company, in accordance with the current regulatory framework for the defense of its own interests
and the interests of its shareholders, its customers and its suppliers, establishes the following Policy
and the following internal procedures, which include organizational measures aimed at Identifying,
Preventing and Dealing with Conflict of Interest Situations.
In accordance with the Policy, all members of the BoD of the Company and any third person to whom
duties have been assigned by them must, notify, in a timely, adequate and written manner, the other
members of the BoD and the Top management of the direct or indirect conflict of interest of which
they are aware of and which has arisen from the Company’s transactions and/or during the
performance of their duties.
Procedures of preventive measures to avoid situations of conflict of interest
The Company takes measures and implements policies and procedures for the determination of the
means of dealing with conflict of interest situations, as described:
Code of Conduct
The Company has established and implements a Code of Conduct, which provides specific principles for
avoiding conflict of interest situations for all Company's staff.
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(amounts in Euro unless stated otherwise)
Code against Corruption and Bribery
The Company is committed to its activities in accordance with the applicable National and European
Legislation and commercial customs and this commitment is incorporated into the present Code.
Company considers that on Company level, participation in corruption phenomena inflicts the
reputation, credibility of the Company itself, causes penal consequences and other legal risks as well as
financial damage (in the case of fines imposition), increases operational cost, affects the loyalty and
faith of Company personnel, creates negative corporate culture and causes exclusion from potential
business opportunities.
Remuneration
The Company takes the necessary measures so that the remuneration, the evaluation and the assigned
responsibilities do not encourage behaviors by the "covered" persons that may lead to conflict of
interest situations.
Gifts and personal benefits
The acceptance and offer of gifts and other personal benefits is governed by the relevant policies and
procedures of the Company, which are designed to prevent the use of the position within the
Company, in order to provide personal benefits for himself or for “related persons”.
Donations and Sponsorships
The Company has established and implements a Donations and Sponsorships Policy, which specifies on
the one hand the conditions and characteristics that should govern the sponsored actions and the
sponsored bodies, and on the other hand the procedure that should be followed up to the final stage of
their implementation.
BoD members' fees
The Company has established and applies principles and rules regarding the remuneration of the
members (executive and non-executive) of the BoD (BoD), in a transparent, clear and understandable
manner in accordance with the Company's Remuneration Policy in order not to encourage behaviors
which may lead to situations of conflict of interest or the taking of excessive risks. In this direction, the
Remuneration Committee of the Company's BoDoperates as an independent and objective body,
consisting of non-executive members, the majority of whom are independent, in order to provide
guidance in a transparent manner on issues related to the remuneration of the BoD members and Top
Management.
10. Communication with shareholders and other stakeholders
As a responsible corporate organization that prioritizes transparency and continuous communication of
its actions and activities, Company interacts systematically with its Stakeholders. The listing of
stakeholder groups, their ranking and prioritization have been drawn up as a result of rounds of
internal consultation, discussions and working meetings. The Company's objective is to create the
conditions for a continuous two-way dialogue with the interested parties in order to understand the
effects of its activity and to improve its performance taking into account the opinion, needs,
expectations and proposals of all the parties it affects and they influence the decision-making and the
formulation of the Company's strategy.
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In particular:
Communication with the shareholders and the investor community
The BoD Secretariat, Public Relations and Investrors Relations Department is in constant
communication with institutional investors, shareholders, financial analysts and the investment
community in general, providing information (based on publicly available information) on the progress
of Company’s quantitative and financial figures, current business developments through:
• Τeleconferencing that takes place to comment on the financial results.
• participation in roadshows, both in Greece and abroad ((a) WOOD’s Greek Retreat, Athens, May
2023, (b) Corporate Access Midcap Event, Geneva, June 2023, (c) Autumn Midcap Event, Frankfurt,
October 2023, (d) Morgan Stanley and Athens Stock Exchange Greek Investment Conference, Athens,
November 2023, (e) WOOD’s Winter Wonderland EMEA Conference, Prague, December 2023.
• one-on-one meetings with institutional investors.
• presentations of the strategy of PPC and the Group in general (Investor Days)
Dialogue with other stakeholders
The Company conducts a materiality analysis every two years in order to prioritize the material issues
for the Company and the stakeholders. The results of the materiality analysis are discussed and are
taken into account in the risk assessment process and in decision making by the Company's
management.
The stakeholder groups, which have been defined via internal consultations, discussions and working
meetings of the Top Management of each Company with executives, are the following: shareholders,
employees, suppliers, customers, Local Society Representatives, NGO Representatives.
• The Company publishes the material issues that emerge from the stakeholders’ questionnaires and
the actions taken during the fiscal year to address them. The most recent materiality analysis was
carried out in Q1 of 2023.
• The Company faithful to its commitment to providing transparent, reliable, and comparable
information for stakeholders on the impact its activity has on the ecosystem, published its
Sustainability Report for 2022 in September 2023. This report sets out in detail the performance of the
Company on Sustainable Development issues, based on the ESG criteria.
• Company employees are systematically informed about the developments in the Company.
Double materiality assessment
PPA S.A. is already in the process of undertaking a double materiality assessment, as it is mandatory
under the Corporate Sustainability Reporting Directive (CSRD). PPA S.A. seeks to focus on what matter
the most, thus ensuring that its sustainability reporting focuses on the topics that are most relevant for
the organization and its stakeholders.
Double materiality assessment results will be finalized and presented in PPA S.A.’s 2023 ESG Report.
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(amounts in Euro unless stated otherwise)
Share and Dividend course
In 2023, the General Index of Athens Stock Exchange showed an increase of 39.1%, outperforming
compared to the main international stock indices, as the Greek economy recorded higher growth rates
than most developed economies, supported by significant foreign investment, private consumption and
exports, despite pressure from energy crisis arising from the war conflict in Ukraine and high inflation.
The share of the Company recorded an increase of 46.8% in 2023, closing at €23.20 on 29.12.2023, with
an annual average transaction volume of 14,052 thousand pieces/day and an average price of €20.39.
The Ordinary GA of Shareholders of 02.08.2023 approved the distribution of a final dividend of
€1.04/share for the financial year 2022.
The following table presents the average closing price and the average daily trading volume of the
Company's share per month, for the financial year 2023 in relation to the corresponding time period of
2022.
Average Closing Price
Trading Volume
(€)
(# untis)
2023
2022
2023
2022
January
16.7
17.5
24,587
15,440
February
18.1
17.1
17,019
10,729
March
18.6
16.2
18,033
16,470
April
19.4
17.4
7,244
14,194
May
19.4
16.5
7,698
42,991
June
20.4
15.8
8,952
11,318
July
22.6
15.4
13,164
7,212
August
21.7
15.5
15,954
9,841
September
21.7
14.8
21,033
14,531
October
20.6
15.2
13,419
23,480
November
22.0
16.4
9,464
10,355
December
23.2
16.0
13,270
13,879
The diagram below presents the development of the Company's stock for the financial year 2023, in
relation to the corresponding progress of the general index of the Athens Stock Exchange.
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(amounts in Euro unless stated otherwise)
Regarding the dividend distribution for the year 2022, taking into account, among other things, the
Company's progress, prospects and investment plans, the Ordinary GA of the Company's shareholders
on 02.08.2023 approved the distribution of a dividend of a gross amount of € 1,04/share for the
financial year 2022 per share before withholding tax (according to current tax legislation) against € 0.62
per share in 2021, with the dividend yield being 6.6%. For the financial year 2023 the proposed
dividend yield stands at 5.8%
Over the past decade, the dividend per share has increased from € 0.12 for FY2013 to €1.04 for FY2022,
an increase of 767%, while the proposed for distribution dividend per share for the FY2023 is € 1.34,
namely by 29% increased compared to the FY2022.
The diagrams below show the course of the dividend distributed by the Company, per share and
overall, combined with dividend yield and dividend payout ratio respectively, during the period 2013-
2023.
*Proposed to be distributed dividend per share, that subjects to approval by General Assembly of Shareholders
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(amounts in Euro unless stated otherwise)
*Proposed to be distributed total dividend, that subjects to approval by General Assembly of Shareholders
C. Audit Committee (AC)
The AC operates within the framework of the provisions of Article 10 of Law 4706/2020 “on corporate
governance” and in accordance with the provisions of relevant circulars and decisions of the Hellenic
Capital Market Commission), as in force from time to time (indicatively the circulars/letters
1302/28.04.2017, 1508/17.07.2020, 1149/17.05.2021, 427/21.02.2022) of the Directorate of Listed
Companies of the Hellenic Capital Market Commission.
Composition of the Committee, skills and experience
The existing ACoperates in accordance with the provisions of article 44 of Law 4449/2017. It is a
Committee of the BoD and is composed of three (3) non-executive members of the BoD, of which two
(2) are independent under article 9 of Law 4706/2020, which were appointed (re-elected) by the BoD
meeting that took place on 02.08.2023.
During the fiscal year 2023, the AC’s composition was as follows:
- Kwong Che Keung Gordon, BoD independent Non-Executive Member and Chairman of the AC.
- Arvanitis Nikolaos, BoD independent Non-Executive Member and Member of the AC.
- Politis Dimitrios, BoD Non-Executive Member and Member of the AC.
Detailed CVs of the AC members are posted on the Company's website.
The term of office of the AC is equal to the term of office of the elected BoDof the Company, whose
term of office is two years, ie until 02.08.2025 and which is extended, in accordance with the provisions
of article 85, par. c of Law 4548/2018 until the expiration of the deadline, within which the next
Ordinary GAmust be convened in 2025 and until the relevant decision is taken.
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(amounts in Euro unless stated otherwise)
The members of the AC, all non-executive members, did not hold positions incompatible with their
status during 2023. Their objectivity and independence were ensured, in the absence of any transaction
with the Company which could affect them.
The members of the Committee have competencies related to the sectors in which the Company
operates, as they have as a whole sufficient knowledge in the field of industrial products and services,
in auditing or accounting and experience in the areas of Corporate Governance and Internal Control
Systems.
Evaluation of the Audit Committee
The Chairman of the Committee ensures the organization of the evaluation of the work of the
Committee on an annual basis. In the above context, it was carried out both a self-evaluation process of
the AC and an evaluation process by an external consultant based on the provisions of the Corporate
Governance Code (article 3.3.14), of the Law 4706/2020 and the Circular 60 of the Capital Market
Committee.
The above process was carried out using evaluation tools provided by the external advisor (filling out an
electronic questionnaire, etc.) and through personal interviews, which referred to the collective ability
of the AC as a body, as well as to the individual abilities of its members.
The conclusion of the above evaluation of the external consultant stated, among other things, that:
- the AC operates effectively providing valuable knowledge to the BoDand is evaluated overall with a
high score;
- the AC members possess the necessary know-how and integrity for the effective execution of its
mission;
- the AC engages all its members in a substantive manner and receives viewpoints/contributions from
them;
- the AC effectively monitors the procedure and the administration of the statutory audit of the
Company's financial statements;
- the AC effectively monitors, reviews and evaluates the process of preparing financial information in
cooperation with the Company's Financial Management Department;
- the AC effectively monitors, reviews and evaluates the adequacy and effectiveness of all Company
policies, processes;
and security measures regarding the internal control system, the risk assessment and the regulatory
compliance;
- there is an adequate interaction with internal and external auditors as required;
- the AC communicates effectively with and receives all relevant information from Senior Management
in order to deliver on its responsibilities;
- the AC communicates and cooperates effectively with other Board Committees;
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- the AC 's Chairperson effectively chairs Committee meetings, facilitating healthy debate and sound
decision making.
The above result is a confirmation of both the proper functioning of the AC and its compliance with the
current legislative and regulatory framework.
Purpose - Responsibilities
The main objective of the AC is to provide support to the BoD of the Company in the context of issues
falling within its responsibilities, in accordance with the applicable legal and regulatory framework and
its Operational Regulation.
The members of the Committee as a whole have proven sufficient knowledge in the field in which the
Company operates, while the Chairman of the Committee has proven sufficient knowledge in issues of
accounting and auditing.
The main responsibilities of the AC are the following:
• Monitoring the financial reporting process.
• Monitoring the effective operation of the Internal Control System and the Risk Management System.
• Monitoring of proper functioning of the Company’s Internal AC.
• Monitoring of the statutory audit of Financial Statements.
• Supervision of the official announcements concerning the Company's financial issues.
• Review and monitor issues related to the existence and maintenance of objectivity and independence
of the External Auditor or audit firm, particularly regarding the provision from them to the Company
and other non-audit services.
• Review the Financial Statements prior to approval by the BoD.
• The Company's compliance with legal and regulatory framework of operation. The responsibilities
and the way of operation of the AC are described in the Operational Regulation of the Committee,
which has been approved by the BoD.
Proceedings of the Audit Committee for the fiscal year 2023
During 2023, the AC met four (4) times while additionally in five (5) other cases decisions were issued
through circulation of minutes.
In order to ensure the Company’s independence, the meetings took place without the presence of
other top management executives, except in cases where their presence was deemed necessary (such
as the cases of discussion of the review of the interim and annual Financial Reports). All Committee
members participated in all the meetings and all Committee decisions were taken unanimously.
The main issues handled by the AC in 2023 were the following:
• Monitoring and evaluation in collaboration with the competent bodies of the Management and the
External Auditor of the Company the process of preparation of the semi-annual and annual Financial
Statements, prepared in accordance with the International Financial Reporting Standards, and
confirmation of their accuracy and completeness, according to the information provided to its
members.
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• Evaluation of the Financial Statements of the Company (annual and semi-annual) and confirmation of
their completeness and consistency, before their approval by the BoD.
• Discussion with the External Auditor and receiving information about their cooperation with the
Management in issues of financial control.
• Discussion and provision of its agreement to all official announcements concerning the Company's
financial issues.
• Evaluation and approval of the internal audit program and then reviewed the results of the audits
carried out by the Internal Audit Department.
• Monitoring the effective operation of the internal control and risk management system, in
accordance with international standards and the applicable legal and regulatory framework.
• Provision of its consent to the proposal of the BoD to the Ordinary GA of Shareholders for the
appointment of the auditing company “KPMG Certified Auditors S.A.”, for the mandatory audit of the
Company for the year 2023.
• Evaluation and confirmation the objectivity and independence of the cooperating External Auditor,
receiving a relevant letter.
• Assessing the nature and cost of the non-audit services provided by the auditing firm “KPMG Certified
Auditors S.A.” regarding the regular audit of the fiscal year 2023, in accordance with the provisions of
Law 4449/2018 and Regulation 537/2014 of the EU.
The Committee is responsible for approving non-audit services that are not prohibited by law. The
Committee considers that the external auditors have significant knowledge of the Group’s business and
of how accounting policies are applied. That means it is sometimes cost-efficient for them to provide
non-audit services. There may also be confidentiality reasons that make the external auditors the
preferred choice for a particular non audit assignment.
However, safeguarding the external auditors’ objectivity and independence is an overriding priority. For
this reason, the Committee ensures that the provision of such services does not impair the externa l
auditors’ independence or objectivity.
In the context of non-audit services, whose provision by the Statutory Auditor is not prohibited by law,
the Committee should apply judgement on and assess the following:
i. threats to independence and objectivity resulting from the provision of such services and any
safeguards in place to eliminate or reduce these threats to a level where they would not compromise
the auditors’ independence and objectivity,
ii. the nature of the non-audit services,
iii. whether the skills and experience of the audit firm make it the most suitable supplier of the non-
audit services,
iv. the fees incurred, or to be incurred, for non-audit services both for individual services and in
aggregate, relative to the audit fee, including special terms and conditions (for example contingent fee
arrangements), and
v. the criteria which govern the compensation of the individuals performing the audit.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
During 2023, the Committee examined the non-audit services that were proposed to be performed by
the external auditor for the Company, which concerned pre-agreed procedures, and after evaluating
the nature of proposed services and receiving relevant clarifications, declarations and assurance from
the external auditor, considered that they did not pose a threat to the external auditor's independence
in accordance with the provisions of article 44 of Law 4449/2017 and article 5 of Regulation (EU)
537/2014.
• Information towards the BoD of the Company about the issues within its competence.
In carrying out its work in general, the AC had full access to all the information necessary for the
effective performance of its duties. The discussions and the decisions of the AC are recorded in minutes
signed by the members.
Audit Committee Performance in relation to:
Mandatory External Audit (article 44, par. 3, case a of the Law).
Particularly:
a) Regarding the performance of the statutory audit (external audit) of the Company financial
statements for the year ended December 31, 2023, were not found significant deviations in the
recognition, valuation and classification of assets and liabilities and was considered that the
Management's assumptions and estimates are reasonable. Was found that the relevant disclosures in
the notes to the financial statements are adequate.b) During the mandatory inspection, were performed
the following procedures:
1. Control of the process of registration and accounting of expenses, fixed assets, sales and other
accounting subjects.
2. Control of the tax issues.
3. Control of the processes and procedures of Financial Management Department.
4. Review of Internal Audit Department Report.
5. Review of External Auditor Report.
6. Evaluating risks of pending litigation
In the exercise of AC responsibilities, was not identified any material weaknesses which may have an
impact on the truth and fairness of the financial information presented to shareholders.
It is noted that the AC always takes into account the content of any additional reports submitted to it
by the External Auditor hired by the Company, which contains the results of the statutory audit
performed and meets at least the specific requirements in accordance with Article 11 of Regulation
(EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014.
In particular, based on the Supplementary Report delivered to the AC, there is no material change,
compared to the previous year, in the accounting principles and assumptions. Furthermore, no material
errors were found which should have been corrected by the Company's Management.
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(amounts in Euro unless stated otherwise)
c)Within the framework of AC responsibilities, information provided about the procedure and the
schedule of preparation of the financial information by the management of the Company, as well as by
the External Auditor on the statutory audit program for the year 2023 before its implementation. Was
evaluated and made sure that this program covered the most important areas of control, considering
the key areas of business and financial risk of the Company. Were also held meetings with the
Company's management / responsible executives and the External Auditor, during the preparation of
the financial statements, during the planning stage of the audit, its execution and during the stage of
preparation of the audit reports, respectively.
d)Was taken into account and examined the most important issues and risks that may have an impact
on the Company's financial statements, as well as the significant judgments and estimates of
management during their preparation. Specifically, was examined and evaluated in detail the following
issues with reference to specific actions on these issues:
(d1) Regarding the important judgments, assumptions and estimates in the preparation of the financial
statements, was found that they are reasonable.
(d2) Regarding the assessment of the recoverability of assets and in particular receivables from
deferred taxation, was found that deferred tax writing off was based on a realistic assumption process
for arriving at a reasonable level of Company’s recoverability.
(d3) Regarding the disclosures for the above issues required by IAS / IFRS, was found that the
disclosures included in the financial statements are sufficient.
(d4) Regarding the transactions with related parties, as shown in the Annual Financial Report for the
year 2023, was not found any significant unusual transactions.
e) Finally, there was timely and substantial communication with the External Auditor of the preparation
of the audit report and its supplementary report to the AC and reviewed the financial reports before
their approval by the Company's BoD and considered that is complete and consistent in relation to the
information that was brought to our attention, as well as to the accounting principles applied by the
Company.
Based on the aforementioned, it was found that the Company's financial statements are in accordance
with the mandatory by law content and preparation framework and the Committee assessed that the
annual financial report, together with the financial statements and the Company's management report,
depict in a true, correct, balanced and comprehensible manner the evolution, performance and
position of the Company and provide the required information to the shareholders.
Financial information process (article 44, par. 3, per. B' of the Law)
In relation to the process of preparing the financial information, the AC monitored, examined and
evaluated:
(1) the mechanisms and systems of flow and dissemination of financial information produced by the
involved organizational units of the Company and
(2) other disclosed information in any way (e.g. stock market announcements, press releases) in
relation to financial information.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
In the exercise of our responsibilities, we did not find any material weaknesses in the process of
compiling the financial information.
In particular, the AC held meetings to receive briefings on the financial information process on the
2023 financial statements and was informed by the Chief Financial Officer on the Company's financial
statements, which were drawn up in accordance with IFRS for the year ended 31 December 2023. AC
was also informed about the accounting principles followed by the Company for the preparation of the
said financial statements, which did not differ from those adopted by the Company in the previous
fiscal year, apart from the immaterial changes reflected in the financial statements, and for the main
issues that occupied the Department of Financial Management during the preparation of these
financial statements.
During the exercise of AC responsibilities, was not found any significant weaknesses in the process of
preparing the financial information.
Financial Results for the first half of 2023
The AC was informed by the Financial Management Department of the financial results of the 1st
semester of 2023 and no gaps or discrepancies were found in the assurances provided for the
correctness and accuracy of the information. The Committee prepared a relevant report on the
overview of the company's six-monthly individual and consolidated financial statements to the BoD.
Financial Results of the 1st and 3rd quarter of 2023
The AC was informed by the Financial Management Department about the financial results of the 1st
and 3rd quarter of 2023 and brought to its attention a draft of the relevant announcement to the
investing public. The Committee, after receiving assurances about the correctness and accuracy of the
information to be made public, expressed its satisfaction with the Company's progress.
Procedures of internal control and risk management systems (ICS) and the internal control unit
(article 44, par. 3, point B' of the Law)
Particularly In connection with the monitoring, examination and evaluation of the adequacy and
effectiveness of all the policies, procedures and safety controls of the Company regarding the internal
control system and the assessment and management of risks, in relation to the financial information,
the AC proceeded to actions below:
1. Decision taking and subsequent submission of a proposal for approval by the Company's BoD on
the from 17.03.2023 "Assessment of adequacy and effectiveness of Internal Control System Evaluation"
by an external auditing company (KPMG Certified Auditors S.A.) in accordance with the provisions of
Law 4706/2020, the Decisions of the Capital Market Commission and any other relevant legislation on
Corporate Governance, where it arises as a conclusion of the external auditor that nothing has come to
his attention that causes him to believe that a material weakness in terms of the Company's ICS in
compliance with the Regulatory Framework is in place. The above related report was forwarded to the
Capital Market Committee on 24.03.2023.
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(amounts in Euro unless stated otherwise)
2. . After reviewing and taking into account the recommendations of the external evaluator (KPMG) in
the context of the evaluation of the internal control system of the Company, the approval of the
following items related to the Risk Management function:
− Risk Assessment Policy
− Internal Procedures Risk Management Function
− Risk Management Methodology
− Risk Appetite Statement
3. Evaluation of the functioning of the Internal Audit Department according to the professional
standards as well as the current legal and regulatory framework and evaluation of the work it performs,
its adequacy and effectiveness, without however affecting its independence.
4. Overview of the disclosed information regarding the internal audit and the main risks and
uncertainties of the Company in relation to the financial information.
5. Evaluation of the organizational structure of the Internal Audit Department and the Regulatory
Compliance and Risk Management Functions and any staffing weaknesses of the above units, i.e. if they
have the necessary means, if they are insufficiently staffed with potential with insufficient knowledge,
experience and training. In the context of the above evaluation, the organizational restructuring of the
Regulatory Compliance Function was approved in the current phase through the submission of a
proposal to the Company's Management regarding the assignment of the Management duties of the
above function to an in house Legal Department Lawyer, who has professional expertise in Corporate
Law of Société Anonyms, Capital Market Law, Corporate Governance, Financial Markets Law as well as
experience in monitoring compliance procedures.
6. Assessing the existence or non-existence of restrictions on the work of the Internal Audit
Department and the functions of Regulatory Compliance and Risk Management as well as their
independence that they must have, in order to perform their work unobstructed.
7. Evaluation of the annual audit program of the Internal Audit Department before its
implementation, taking into account the main areas of business financial risk as well as the results of
previous audits.
8. Considering that the annual audit program, in conjunction with any corresponding medium-term
programs, covers the most important areas of control and financial information systems.
9. Organizing regular meetings with the head of the Internal Audit Department, as well as with the
Managers of Regulatory Compliance and Risk Management functions on matters within their
competence and gaining knowledge of their work and their regular and ad-hoc reports.
10. Monitoring the effectiveness of internal control systems through the work of the internal control
unit and the work of the External Auditors.
11. Overview of the management of the main risks and uncertainties of the Company and their
periodic review, evaluating the methods used by the Company to identify and monitor the risks, the
treatment of the main ones through the ICS of the Internal Audit Department as well as their
disclosure in the published financial information in a proper manner.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The AC was informed and has evaluated the reports of the audit program for the year 2023 and
evaluated and approved the audit program of the year 2024 (before its submission for discussion to the
Company’s BoD) having thoroughly considered the proposed areas for scrutiny, in line with the Internal
Audit Department proposals, and judging that the control environment in relation to risk assessment is
adequately reflected, in line with the risk-based approach followed by the regulatory framework and
International Standards on Internal Auditing.
The AC, was informed of the following main risks for the year 2023:
• Risk of loss of assets
• Property insurance
• Third Party Liability and Employer’s Liability
• Maximum Probable Loss (MPL) analysis
• Business Risks Associated with the Company's business activities
• Fair Valu.
• Credit Risk
• Foreign Exchange Risk
• Interest rate risk
• Liquidity risk
• Commercial - Operation Risk, associated with:
- Wider Economic Environment
- Economic instability
- New forms of energy
- Non-expanded clientele (Container terminal)
- Geopolitical conditions
• Information Systems Risk.
• Legal risk, related to:
- Pending legal claims against third parties
- Legal claims of third parties
In the exercise of AC responsibilities on the above-mentioned issues, was not identified any material
weaknesses that may have an impact on the truth and fairness of the financial information presented
to shareholders.
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(amounts in Euro unless stated otherwise)
D. Nomination Committee
The Nomination Committee operates in accordance with the provisions of articles 10 and 12 of
L.4706/2020.
Composition
The existing Nomination Committee operates in accordance with the provisions of articles 10 and 12 of
L.4706/2020. It is a Committee of the BoD and is composed of three (3) non-executive members of the
BoD, of which two (2) are independent under the article 9 of Law 4706/2020, which were appointed by
the BoD decision no 30/13.07.2022 and which was updated with the BoD decision no. 35/02.08.2023.
During the fiscal year 2023, the Nomination Committee’s composition was as follows:
- IP Sing Chi, BoD independent Non-Executive Member and Chairman of the Nomination Committee
(until 02.08.2023).
- ZHU Jianhui, BoD Non-Executive Member and Member of the Nomination Committee (until
03.05.2023).
- ZHU Changyu, BoD Non-Executive Member and Member of the Nomination Committee (since
03.05.2023 onwards).
- Kwong Che Keung Gordon, BoD independent Non-Executive Member and Member of the Nomination
Committee (and Chairman of the Committee since 02.08.2023 onwards).
- ARVANITIS Nikolaos, BoD independent Non-Executive Member and Member of the Nomination
Committee (since 02.08.2023 onwards).
The term of office of the Nomination Committee will be equal to the term of office of the elected
BoDof the Company, whose term of office is two years, i.e. until 02.08.2025, which is extended, in
accordance with the provisions of article 85, par. c of Law 4548/2018 until the expiration of the
deadline, within which the next Ordinary GA must be convened in 2025 and until the relevant decision
is taken.
The members of the Nomination Committee, all non-executive members, did not hold positions
incompatible with their status during 2023, while both their objectivity and independence were
ensured, in the absence of any transaction with the Company could affect they.
Evaluation of the Nomination Committee
The Chairman of the Committee ensures the organization of the evaluation of the work of the
Committee on an annual basis. In the above context, it was carried out both a self-evaluation process of
the Nomination Committee and an evaluation process by an external consultant based on the
provisions of the Corporate Governance Code (article 3.3.14).
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(amounts in Euro unless stated otherwise)
The above process was carried out using evaluation tools provided by the external advisor (filling out an
electronic questionnaire, etc.) and through personal interviews, which referred to the collective ability
of the Nomination Committee as a body, as well as to the individual abilities of its members.
The conclusion of the above evaluation of the external consultant stated, among other things, that the
Nomination Committee is functioning well within the parameters set by the Company and the Board
and that also possesses the necessary experience and expertise in order to deliver on the Committee’s
mission.
The above result is a confirmation of both the proper functioning of the Nomination Committee and its
compliance with the current legislative and regulatory framework.
Purpose - Responsibilities
The main objective of the Nomination Committee is to provide support to the BoD of the Company in
the context of issues falling within its responsibilities, in accordance with the applicable regulatory
framework and its Operational Regulation, for achieving the following objectives:
➢ Ensuring that the composition, structure and operation of the BoDmeet relevant legal, regulatory
and supervisory requirements.
➢ Ensuring that there is an effective and transparent procedure for the nomination of candidates to the
BoD.
➢ Ensuring an appropriate mix of knowledge, skills and experience at Board level.
➢ Steering the process for the regular evaluation of the BoD and of the Individual Members'
performance and effectiveness.
➢ Ensuring fit-for-purpose guidelines regarding the Member nomination process for the BoD.
➢ Establishing the conditions required for effective succession and continuity in the BoD.
The responsibilities and the mode of operation of the Nomination Committee are described in the
Internal Rules of Operation of the Committee, which has been approved by the BoD.
Exercise of duties of the Nomination Committee
During 2023, the Nominations Committee met four (4) times.
To ensure the independence of the Nomination Committee, the meetings were held without the
presence of other members of the Management. All the members of the Committee attended all the
meetings and all the decisions of the Committee were taken unanimously. The main issues handled by
the Nomination Committee in 2023 were the following:
➢ The continuation of the collective suitability and diversity of the BoD, in such a way that the
composition of the Company’s BoD, fully covers the appropriate and suitable exercise of the
responsibilities of the BoD of the Company, and reflects the size and activity of the Company and can
further contribute to the implementation of its business objectives.
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➢ The taking into account expiration of the Company’s BoD term of office, submission of proposal to
the BoD for the election of persons suitable for the acquisition of the status of a BoD member, based
on factors and criteria of individual and collective suitability determined by the Company, in accordance
with the suitability policy that it has adopted, through the initiation of the suitability assessment
process by the existing BoD members, as initial candidates for the acquisition of the status of a
Company's BoDmember.
➢ Regarding the (individual and collective) suitability criteria of the candidates for election as
members of the BoD , the Committee took into account:
- the verification of the fulfillment of the eligibility criteria of the candidates for election as BoD of
Directors members,
- the thorough examination of the detailed CVs of each of the candidate BoD member,
- the overview of the participation and in general presence of the candidates in the meetings of the
existing BoD of the Company throughout its term of office, of which the candidates are members,
- the establishment of independence of their judgement, the possibility of allocating the necessary time
for the fulfillment of their duties,
- the adequacy of knowledge (including sufficient knowledge in the Company's field of activity, in
particular in the subject in which the Company operates, the skills and
- the experience required to perform their duties,
- the processing on a case-by-case basis, in accordance with the approved Eligibility Policy of the
Company, responsible declarations about the non-assistance of incompatible / obstacles, educational
qualifications, certificates, excerpts from the criminal record, etc..
➢ Regarding the conditions and criteria of independence, regarding the verification of the fulfillment
of the criteria and conditions, independence, within the meaning of article 9 par. 1 and 2 of Law
4706/2020, as applicable, of the candidates for election as members of the Company's BoD, the
Committee:
- received responsible statements from the proposed independent members, regarding their
independence towards the Company, within the meaning of article 9 par. 1 and 2 of Law 4706/2020, as
applicable,
- carried out an investigation and audit of the Company's share register and found that the case of
article 9 par. a of Law 4706/2020, as applicable, does not apply,
- carried out an investigation and audit of the Company's accounting books and contracts and found
that none of the proposed members is an important customer or supplier of the Company and that
none of the cases of article 9 par. 2 para. b) of the law. 4706/2020, as applicable.
The based on the above, submission of a proposal by the Committee to the Company’s BoD, in order to
recommend to the Ordinary GA of Shareholders of the Company, that the new Company’s BoD have
the following composition, which fully meets the requirements of law 4706/2020 on corporate
governance and fully covers the appropriate and appropriate exercise of its responsibilities for the
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(amounts in Euro unless stated otherwise)
benefit of its Shareholders, given that all the criteria of individual and collective suitability of the
candidate members of the BoD of the Company are met, in accordance with article 3 of law 4706/2020,
as in force, and the approved Suitability Policy of the Company, there are no obstacles or
incompatibilities in the person of the candidate members of the BoD of the Company, regarding any
provisions of the relevant legal framework of corporate governance, including the Corporate
Governance Code implemented by the Company (Hellenic Code of Corporate Governance of HCGC of
June 2021), the Rules of Operation of the Company and the approved Suitability Policy of the Company,
there is no incompatibility / impediment of the provision of article 3 par. 4 of law 4706/2020 for any of
the candidate members of the BoD, as in force, and there is an adequate representation per gender in a
percentage that is not less than twenty five percent (25%) of the total members of the Company’s BoD
with the resulting fraction being rounded to the previous integral number, according to article 3 par. 1
b) of Law 4706/2020:
1) Mr. YU ZengGang,
2) Mr. ZHU Changyu,
3) Mr. ZHANG AnMing,
4) Ms LI Jin,
5) Mr. KWONG Che Keung Gordon,
6) Mr. ARVANITIS Nikolaos,
7) Ms YU Tao,
8) Mr. MORALIS Ioannis
➢ The supervision of the preparation of the introductory information program of the BoD members in
the context of fulfilling their duties and according to the BoD operational needs.
➢ The BoD members appointed/reelected during 2023 have received an Induction/Updated Training
Program whose main objectives were to (a) communicate the Company's vision and culture, (b)
communicate practical procedural duties, (c) reduce the time taken for them to become productive in
their duties, (d) become familiar with the Company's organizational structure, (e) give them an
understanding of Company's business and strategy and the markets in which it operates, (f) to provide
a link with the Company’s people and an understanding of its main relationships. Also, the BoD
members, upon their appointment received information material of Company’s Obligations towards
Supervisory Authorities, aiming to inform them on their main obligations under the legislative and
regulatory framework that the Company operates.
➢ The organizing (in Dec. 2023), of a training session conducted by Hellenic Corporate Governance
Council, for issues related with the relationships of the Company with the Investors Community.
➢ The evaluation of the fulfillment of the independence criteria of the Independent Non-Executive BoD
Members, according to the definition of the law, as well as the evaluation of the existence of conflicts
of interest to the extent that hinders the ability of Members to perform their duties independently and
objectively will).
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➢ The submission of proposal to BoD and the later approval by GA for the update of Company
Suitability Policy of BoD members.
➢ The information towards the Company’s BoD about the issues within its competence.
Eligibility/Suitability Policy of BoD members Update process
In particular, as for the approval by the Shareholders Ordinary GA of Suitability Policy of BoD members
the below were taken into consideration in its drafting process:
Principles of Eligibility/Suitability Policy
In the formulation of the Eligibility/Suitability Policy, is taken into consideration the size, the internal
organization, the risk-taking disposition, the nature, the scale and the complexity of Company’s
activities.
Eligibility/Suitability Assessment Criteria
A. Individual Eligibility/Suitability
The individual eligibility/suitability of the members of the Board evaluated in particular on the basis of
the criteria set out below, which are general and apply to all members of the Board, regardless of their
capacity, as executive, non-executive or independent non-executive members. Special obstacles,
obligations and conditions (such as no. 3 par. 4, 5 and 6 and no. 9 par. 1 and 2 of law 4706/2020 and no.
44 par. 1 of law 4449/2017) apply regardless of the eligibility criteria.
1. Adequacy of knowledge and skills
2. Guarantees of Ethics and Reputation
3. Conflict of interest
4. Independence
5. Allocation of sufficient time
B. Collective Eligibility /Suitability
The BoD composition contributes to the effective management of the Company and the balanced
decision making.
The BoD members must collectively be at the position to take appropriate decisions taking into account
the business model, risk-taking, strategy and markets in which the Company operates. The composition
of the BoD reflects the knowledge, skills and experience required to carry out his / her responsibilities.
The BoD in its executive function should benefit from a high level of managerial skills as a whole;
whereas in its supervisory function the BoD should avail itself of sufficient management skills as a
whole in order to organize its work efficiently and be able to understand and process the proposals for
respective decisions. In this context, the BoD as a whole adequately understands the areas for which
members are collectively responsible and to have the necessary skills to exercise the actual
management and supervision of the Company, including in terms of:
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- its business and the main risks associated with it,
- strategic planning,
- financial reports,
- compliance with the legislative and regulatory framework,
- understanding corporate governance issues,
- the ability to identify and manage risks,
- the impact of technology on its activity.
In carrying out its work in general, the Nomination Committee had full access to all the information
necessary for the effective performance of its duties.
E. Remuneration Committee
The Remuneration Committee operates in accordance with the provisions of articles 10 and 11 of
L.4706/2020.
Composition
The existing Remuneration Committee operates in accordance with the provisions of articles 10 and 11
of L.4706/2020. It is a Committee of the BoD and is composed of three (3) non-executive members of
the BoD, and are independent in majority under the article 9 of Law 4706/2020, who were appointed
by the BoD decision no 31/13.07.2022 and which was updated with the BoD decision no.
36/02.08.2023.
During the fiscal year 2023, the Remuneration Committee’s composition was as follows:
- ARVANITIS Nikolaos, BoD independent Non-Executive Member and Chairman of the Remuneration
Committee.
- KWONG Che Keung Gordon, BoD independent Non-Executive Member and Member of the
Remuneration Committee.
- IP Sing Chi, BoD independent Non-Executive Member and Member of the Remuneration Committee
(until 02.08.2023).
- POLITIS Dimitrios, BoD Non-Executive Member and Member of the Remuneration Committee (since
02.08.2023 onwards).
The term of office of the Remuneration Committee will be equal to the term of office of the elected
BoD of the Company, whose term of office is two years, ie until 02.08.2025, which is extended, in
accordance with the provisions of article 85, par. c of Law 4548/2018 until the expiration of the
deadline, within which the next Ordinary GA must be convened in 2025 and until the relevant decision
is taken.
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(amounts in Euro unless stated otherwise)
The members of the Remuneration Committee, all non-executive members, did not hold positions
incompatible with their status during 2023, while both their objectivity and independence were
ensured, in the absence of any transaction with the Company could affect they.
Evaluation of the Remuneration Committee
The Chairman of the Committee ensures the organization of the evaluation of the work of the
Committee on an annual basis. In the above context, it was carried out both a self-evaluation process of
the Remuneration Committee and an evaluation process by an external consultant based on the
provisions of the Corporate Governance Code (article 3.3.14).
The above process was carried out using evaluation tools provided by the external advisor (filling out an
electronic questionnaire, etc.) and through personal interviews, which referred to the collective ability
of the Remuneration Committee as a body, as well as to the individual abilities of its members.
The conclusion of the above evaluation of the external consultant stated, among other things, that the
Remuneration Committee is functioning well within the parameters set by the Company and the Board
and that also possesses the necessary experience and expertise in order to deliver on the Committee’s
mission.
The above result is a confirmation of both the proper functioning of the Remuneration Committee and
its compliance with the current legislative and regulatory framework.
Purpose - Responsibilities
The Remuneration Committee acts as an independent and objective body that assists the BoD in the
performance of its duties with regard to the remuneration of the BoD and the executives of the
Company. drawing up procedures and monitoring of the Remuneration Policy and the Remuneration
Report of Articles 110-113 of Law 4548/2018. and is generally responsible for proposing, making
decisions and expressing an opinion on any matter falling under Articles 109-114 of Law 4548/2018,
either voluntarily or at the request of the BoD or the GA.
The role of Remuneration Committee is fulfilled on the basis of the following responsibilities and duties
through the procedures applied by it.
In particular, the Remuneration Committee in compliance with articles 109 to 114 of law 4548/2018:
a) formulates proposals to the BoD regarding the remuneration policy submitted for approval to the GA,
in accordance with paragraph 2 of article 110 of law 4548/2018,
b) formulates proposals to the BoD regarding the remuneration of persons falling within the scope of
the remuneration policy, in accordance with article 110 of Law 4548/2018, and the remuneration of the
Company's executives; and in particular the head of the internal audit service,
c) examines the information included in the final draft of the annual remuneration report, providing its
opinion to the BoD, before submitting the report to the GA, in accordance with article 112 of law
4548/2018.
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d) examines and submits proposals to the BoD for the performance targets for any variable
remuneration of the Executive Members of the BoDand senior executives, and the objectives
associated with rights or stock options.
e) examines and submits proposals to the BoD (and, as such, to the GA of Shareholders, when
required) regarding any stock option or stock option plans.
f) submits proposals for the review and improvement of any process related to the drafting of the
remuneration policy, the remuneration report and the determination of the information contained
therein.
g) submits a report to the BoD describing the way in which the Remuneration Report takes into account
the result of the GA vote on the previous Remuneration Report.
The responsibilities and the mode of operation of the Nomination Committee are described in the
Internal Rules of Operation of the Committee, which has been approved by the BoD.
Exercise of duties of the Remuneration Committee
During 2023, the Remuneration Committee met four (4) times. To ensure the independence of the
Remuneration Committee, the meetings were held without the presence of other members of the
Management, All the members of the Committee attended all the meetings and all the decisions of the
Committee were taken unanimously. The main issues handled by the Remuneration Committee were
the following:
➢ The submission of a proposal to the Company's BoD for the gross annual compensation
determination for each member of the BoD for the fiscal year 2023 (fixed in relation to the fiscal year
2022), amounting to € 40,000.00 as well as the gross annual maximum total compensation for the
independent members of the BoD and the FUND representative, for their participation in the meetings
of the Board Committees (Audit - Remuneration - Nominations Committees) for the fiscal year 2023,
regardless of the total number of Committees in which they participate, amounting to € 20,000.00..
➢ The submission of a proposal to the Company's BoD for the Remuneration Report of the members of
the BoD for the year 2022, taking into account the last vote of the Company's GA of shareholders
regarding the approval of the relevant report.
➢ The submission of a proposal to the Company's BoD for the pre-approval by the Ordinary GA of the
BoD members remuneration for the year 2023.
➢ The submission of a proposal to the Company's BoD regarding the remuneration of persons falling
within the scope of the remuneration policy, in accordance with article 110 of N. 4548/2018.
➢ The submission of a proposal to the Company's BoD for updating the Remuneration Policy due to the
completion of the statutory maximum four-year term of the previous respective Policy, approved by
the Extraordinary GA of the Company's shareholders on 23.09.2019. The approved Remuneration
Policy is interpreted and applied in accordance with the provisions of the institutional framework
governing companies that have listed their shares on a regulated market, in particular:
a) L.4548/2018,
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b) L.4706/2020,
c) the Corporate Governance Code adopted and implemented by the Company,
d) the relevant circulars of the Hellenic Capital Market Commission and
e) the best corporate governance practices.
➢ Operating Regulations of theCompany Remuneration Committee based on the recommendations of
the Auditing Company KPMG, in the context of the Company’s Internal Control System evaluation.
➢ The further Implementation of the Company's Long-term Incentive Bonus Plan of the Company.
➢ Conducting contacts of the Committee’s Chairman with the Senior Management of the Company on
issues related to the responsibilities of the Committee.
In particular, as for the Remuneration Policy the below were taken into consideration in its drafting
process:
Subject matter – scope of Remuneration Policy
The approved Remuneration Policy is part of the Company's corporate governance system and governs
and regulates the remuneration:
• of the members of Company's BoD, and
• of the Deputies and the Assistants to CEO of the Company.
Purpose and basic principles of Remuneration Policy
The purpose of Remuneration Policy is to ensure that the Company remunerates its Board members in
line with its short-term and long-term business plan, so that it continues to create value for customers,
shareholders, employees and the Greek economy.
The Remuneration Policy is intended and designed to ensure that the remuneration system provided
for therein (in respect of all individual beneficiaries and remuneration components):
1. is simple and transparent in its structure, so that it can be easily implemented,
2. is easily monitored,
3. is taking into account the current economic conditions and performance of the Company, which in
turn is compared with the performance of companies in the same wider sector of the port industry,
4. is governed by the principle of paying reasonable and fair, remuneration for each position, based on
the responsibility degree and the scope of competencies and duties of the position in question,
5. is not encouraging, the taking of excessive and unjustified risks by the beneficiaries of the
remuneration on behalf of the Company and, therefore, also prevents the creation of conflicts of
interests between the persons concerned and the Company,
6. is preventing the creation of conflict situations between the interests of the persons in question and
those of the Company,
7. is contributing so that the lower level executives of the Company benefit proportionately from the
variable component,
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8. is ensuring that the cost of its implementation is reasonable in relation to the company's total
turnover.
In carrying out its work in general, the Remuneration Committee had full access to all the information
necessary for the effective performance of its duties.
I. a) Periodic Evaluation Policy of the Internal Control System of PPA SA and Implementation of the
provisions on Corporate Governance of Law 4706/2020
1. Key Elements
The Company recognizing the importance of the operation of an adequate and integrated Internal
Control System (hereinafter "ICS") to achieve its business objectives and in accordance with Law
4706/2020 regarding corporate governance and decision of the BoD of the Hellenic Capital Market
Commission 1/891/30.09.2020 as in force from time to time, adopts the present policy of periodic
evaluation of the Company's ICS as well as of the Implementation of the provisions on Corporate
Governance of Law 4706/2020.The Company's ICS includes five (5) basic elements that exist and
operate in the Company and are described in general terms below:
a. Control Environment
The Company is committed to operate with integrity and ethical values. Its organizational structure
determines a specific position and specific and distinct responsibilities for each body and organizational
unit of the Company. There are specific benchmarks and areas of responsibility in achieving the
Company's goals, while a regulation is followed on the selection and recruitment of staff and senior
management as well as a remuneration policy aiming at attracting and retaining highly qualified human
resources. In particular:
Integrity, Moral Values & Top Management Behavior: The Management of the Company provides
direction, leadership as well as an appropriate environment for its operation, in order to ensure that all
its available resources are fully utilized to achieve its objectives. The Company has a Code of Conduct.
Any deviation is reported to the Top Management which is solely responsible for taking relevant actions.
Organizational structure: The Company maintains an organizational structure sufficient for the planning,
execution, control and supervision of corporate operations for all its Departments and operational
activities, according to which the main areas of responsibility are determined while at the same time the
appropriate reference lines are established.
BoD: The BoD follows the Law, the Bylaws or the needs of the Company dictate and decides on any
matter concerning the management of the Company, the management of its assets and the general
pursuit of its purpose. The BoDmaintains adequate oversight of the operation and effectiveness of the
ICS. For this purpose, it consists of a sufficient number of executive, non-executive and independent
non-executive members, with a variety of knowledge, skills and experience in order to achieve the
business model and strategy of the Company.
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Corporate Responsibility: The Company maintains appropriate structures and pursues policies that
promote the principle of responsibility, the speed of decision making, the smooth operation of the
Company and the effective control of all its actions. Based on this principle, responsibilities are assigned
to the executives of the Company, according to their position in the hierarchy and their qualifications.
Furthermore, the Company forms the framework to enable the individual organizational units to
operate within the components of the specific management authority (Responsibility – Accountability
Obligation - Assumption of Responsibility), as well as the Management to control its effectiveness.
Human Recourses: Recognizing the utilization of human resources as a cornerstone for the
achievement of the Company's goals, the Company pursues specific policies of recruitment, training,
remuneration, and evaluation of staff.
b. Risk Management
The Company clearly communicates its objectives in the individual Departments in a simple and
understandable way so that they are taken into account during the process of risk identification and
risk assessment as well as its acceptable risk tolerance level. In general, the Top Management of the
Company determines the way of responding to the risks by categorizing them according to the
probability and their impact on the operation of the Company in the following categories:
• High risk: immediate actions required
• Increased risk: immediate actions required
• Acceptable risk: immediate actions required
• Low risk: no immediate action required
The recording of the risks faced by the Company as well as the management and risk response
procedures is carried out in all operations of the Company on an annual basis. In addition, the Company
has established control mechanisms and safety valves to detect and/or prevent the inability to deal
with risks in order to achieve its objectives.
Risk Management function
The Company has a Risk Management function, which operates in accordance with appropriate and
effective policies, procedures and tools (such as keeping a risk register) on the determination, analysis,
control (risk control matrix), management and monitoring of any kind of risk inherent to the operation
of the Company.
Based on the above, the implementation of KRI’s matrix for each Company’s department provides an
early warning signal of risk.
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c. Controls Activities
The Company develops policies and procedures in accordance with the objectives of the Management.
In addition, it implements a system of safety valves, based on the risks it has identified, but considering
the specific characteristics of the Company. Special emphasis is placed on the adequacy, proper
implementation and monitoring of procedures, the handling of error cases and the frequency of
reassessment of policies and procedures.
In addition, the Company implements adequate safeguards for issues of conflict of interest, segregation
of duties as well as the governance and security of its Information Systems.
d. Communication System
The Company ensures the quality of financial and non-financial information and follows appropriate
ways of internal and external communication, such as communication with the members of the BoD,
shareholders and investors, communication with the existing Company committees, complaint on
whistleblowing, Regulatory Authorities etc.
e. Monitoring of the Internal Control System
The Company has mechanisms and functions that have as object the continuous evaluation of the ICS
and the reporting of findings to be corrected or improved:
Audit Committee
The Company has an AC, which is a committee of the BoD, consists in its majority of independent non-
executive members of the BoD and its goal is to support the BoDfulfilling its responsibilities for
overseeing compliance control procedures with the legislative and regulatory framework on: (a)
financial information, (b) the ICS, the risk management system, the regulatory compliance system and
(c) its supervision of the (external) statutory audit of the financial statements of the Company.
Internal Audit Department
The Company has an Internal Audit Department, which operates in accordance with the applicable
Regulation approved by the BoD. The Internal Audit Department is organizationally independent and
adequately staffed. Implements the appropriate tools and control methodology in order to achieve the
best result, while the audit reports that are prepared are submitted at least quarterly to the Audit
Committee and then to the BoD.
The responsibilities of the Internal Audit Department, are the following:
a) To monitor, audit and evaluate:
• the implementation of the Internal Organization & Operation Regulation and the ICS, in particular as
to the adequacy and accuracy of the provided financial and non-financial information, risk
management, regulatory compliance and the Code of Corporate Governance adopted by the Company,
• the internal controls of quality assurance
• corporate governance mechanisms, and
• the compliance with the commitments contained in newsletters and the Company's business plans
regarding the use of funds raised from the regulated market.
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b) To prepare reports to the audited Departments with findings regarding tasks Nr. a), the risks arising
from them and suggestions for improvement, if any. The reports, after incorporating the relevant
comments of the audited Departments, the agreed actions, if any, or the acceptance of the risk of non-
action by them, the limitations on its scope of audit, if any, the final internal audit proposals and the
results of the response of the audited Departments of the Company to its proposals, are submitted at
least quarterly to the AC.
c) To inform the AC on a monthly basis about its activities, the audits carried out and the progress of its
work.
d) To submit at least every three (3) months to the AC reports, including its most important issues and
proposals, regarding the tasks a) and b), which the AC presents and submits along with
recommendations to the BoD.
e) To ensure the receipt of written complaints and their examination, in accordance with the provisions
of the Code of Ethics chapter 19, regarding the Internal Complaints Process (ICP).
f) To be present during tenders that concern Mandatory Enhancements (ME), providing at all stages of
the tender procedure consulting assistance to the Tender Management Committees and Tender
Evaluation Committees, regarding the issues of compliance of the procedures with the decisions of the
Management and the Internal Regulations and to those who are specially assigned by the Chairman of
the BOD and/or the CEO and submits relevant reports to the President of the TMT and the CEO and
Administration Board at the stage of submitting the relevant proposals.
Regulatory Compliance function
The Company has a Regulatory Compliance Function (RCF), which is functionally independent and its
staff has sufficient knowledge, experience to carry out its responsibilities, appropriate training and
information to monitor the effective adoption and smooth implementation of the changes that take
place in a regulatory and legislative context and concern the Company.
The main mission of RCF is the effective regulatory and legislative implementation management
undertaken by the Company as a prerequisite for high standards of Corporate Governance and leads to
high efficiency and optimal business performance.
Purpose of RCF is the preparation and implementation of appropriate procedures methodology for
regulating, assessing and managing Company's policies and procedures according to existing legislation,
and general coordination of the process through the Company's Departments. RCF must have the
ability of understanding on important future regulatory changes, having at the same time the
appropriate procedural treatment. It monitors the effective adoption and unwavering implementation
of changes taking place in the regulatory framework.
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The responsibilities of RCF are independent of those of Internal Auditor (Audit- IAS) and of Risk
Manager. RCF:
• operates as an advisory and preventive service on Company's compliance within its legal and
regulatory obligations, timely adoption of appropriate policies and procedures, ensure the proper
implementation and the proposal of solutions to issues requiring correction or development,
• communicates with supervising Authorities and try to resolve any problems that arise
• designs processes, integrating security safeguards to mitigate risks and control their proper
implementation,
• sets up a control plan of regulatory risks,
• replies to questions raised by Departments, related to responsibilities that RCF already has, such as
new legislation and harmonization of Departments with them.
The RCF, in cooperation with Risk Management function, carries out an assessment of possible
regulatory risks, in order to predict, process and reduce regulatory risks, arising from the non-
application or deviant behavior of legal and regulatory framework and in cooperation with Risk
Management and Internal Audit, to predict potential negative impact.
The responsibilities of RCF, as defined and specified by the Law and the instructions of the Capital
Market Commission as in force, are indicative by the following:
• monitors the systemic difficulties and weaknesses of compliance within Company and make
proposals to resolve them,
• cooperates with relevant Departments and provide information, suggestions and strategic
references in relation to regulatory compliance issues,
• regular cooperation, communication and interaction with Top Management, full access to
Company’s Data, and monitors the work of relevant Committees,
• establishes and implements appropriate and updated practices, policies and procedures aiming to
timely and full compliance of the Company with the applicable legislative framework on National
and European level,
• assesses the new procedures and practices, as per their nature and complexity,
• contributes to strengthening corporate governance through legal control and other tools of
Regulatory Compliance.
2. General Description
The Company in the context of ensuring the continuous operation of an adequate and integrated ICS
and the continuous improvement where and when deemed appropriate, follows this policy, which sets
out the framework for periodic evaluation of the ICS and implementation of the provisions on
Corporate Governance of Law 4706/2020 that is in effect and governs its operation.
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3. Legal and regulatory framework
The content of this policy fully complies with Law 4706/2020 and the relevant decision
1/891/30.09.2020 of the BoD of the Hellenic Capital Market Commission. The terms of this policy are
applied in combination with the respective provisions of the Company's Internal Organization and
Operation Regulations, the Regulations of the AC, the Internal Audit Department, the Regulatory
Compliance function and the Risk Management function.
4. Policy Purpose
The purpose of this policy is to establish the framework to ensure the timely and correct
implementation of the periodic evaluation of the ICS based on the respective standards by appropriate
evaluators and the compliance of the Company with the applicable legislation on relevant corporate
governance matters.
5. Policy Scope - Compliance
This policy applies to Top Management, the collective bodies and all the organizational units of the
Company, its processes and functions, as well as its Information Systems.
The Top Management, the collective bodies and all the organizational units are obliged to comply with
the content of this policy.
6. Policy Subject
The subject of this policy includes the general principles regarding the object, the periodicity of the
audit, the scope of evaluation and the general process which governs the periodic evaluation of the
Company's ICS as well as the Implementation of the provisions on Corporate Governance of Law 4706 /
2020 as well as the assignment and monitoring of the results of the evaluation and the determination
of the object of the evaluation.
7. Evaluation Process
7 a. General
The periodic assessment of the adequacy of the ICS is carried out on the basis of international best
practices.
The purpose of the evaluation is to evaluate the system of identification and risk management and
regulatory compliance developed by the Company, the system of safeguards that applies to the
adequacy and effectiveness of financial information, as well as the application of corporate governance
provisions of the Law. 4706/2020.
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7 b. Subjects of evaluation
Subject of the evaluation are the following:
Control Environment
The review of the control environment consists mainly of the following:
▪ Integrity, Morals & Conduct of the Management
▪ Organization structure
▪ BoDCorporate responsibility
▪ Human Resources
Risk Management
It consists of the review of the risk acknowledgement and assessment procedure (risk assessment),
management and response procedures of the Company to the said risks (risk response) and the
procedures on the monitoring of the development of the risk (risk monitoring).
Control Activities
Review of the mechanisms on the control of the critical safety net emphasizing on the safety net
related to conflict of interest issues, separation of duties and governance and security of Information
Systems.
Information and Communication
Review of the procedure of the development of the financial, including the reports of the auditing
mechanisms and non-financial information as well as the review of the procedures on the critical
internal and external communication of the Company.
Monitoring of ICS
Review of the infrastructure and the mechanisms of the Company that are competent for the constant
evaluation of the components of the ICS and the report of the findings to be corrected or improved.
In particular, the operation of the following infrastructure and mechanisms are reviewed:
▪ Audit Committee
▪ Internal Audit Department
▪ Regulatory Compliance
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7 c. Timing – periodicity
The evaluation of the ICS is carried out either periodically or on an ad hoc basis.
Periodicity is defined as the time period between two consecutive evaluations and which is determined
in three (3) years starting from the reference date of the last evaluation.
The time is defined as the time at which it is required to carry out either the periodic evaluation or the
ad hoc evaluation at the request of the Hellenic Capital Market Commission.
In any case, the evaluation of the ICS is part of the overall evaluation of the corporate governance
system of the Company, according to article 4 par. 1 of Law 4706/2020.
The first evaluation of the ICS must be completed, according to the provisions of this decision, as in
force to the law 4706/2020.
7 d. Characteristics of the persons that carry out the evaluation
The evaluator is a legal or natural entity or association of persons. The evaluator shall have the
following characteristics:
Matters of independence and objectivity
When selecting the evaluator of the ICS, matters of independence and integrity of the Company are
taken into consideration. The evaluator and the members of his taskforce must be independent and do
not have any dependency according to par. 1 of article 9 as particularized in par. 2 of Law 4706/2020 as
well as be objective in the course of exercising his duties.
When the evaluation is carried out by a physical person in the context of an employment or
cooperation relationship with a legal entity, the dependency relationship concerns the physical pearson
himself and not necessarily the legal entity with which he has an employment or cooperation
relationship.
Objectivity is the impartial attitude and ways of thinking that shall allow for the evaluator to perform
his duties as he thinks proper and do not settle as to its quality. The objectivity requires for the
evaluator not to be affected by third parties or other facts.
In the course of ensuring the independence and the objectivity, the evaluation of the ICS shall not be
carried out by the same evaluator for three subsequent evaluations.
Proven relevant professional experience and training
When selecting the evaluator of the ICS matters related to the knowledge and his professional
experience are taken into consideration. In particular, the head of the taskforce of the evaluation of the
ICS and in any case the signatory of the evaluation must have the appropriate professional
qualifications (depending on the professional standards that he refers to) as well as proven relevant
experience (such as in evaluations of other ICS and structures of corporate governance). The evaluator
implements all the necessary measures in order in the course of his work the persons that participate
therein have the appropriate knowledge and experience as to the duties assigned to them and he uses
the suitable systems on quality assurance, sufficient human and material resources and procedures in
order to ensure the continuity, periodicity and quality of the performance of the works.
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7 e. Candidates selection and award of evaluation – Responsibilities
The Company assigns timely, through its competent bodies, the evaluation of the ICS to a suitable
external evaluator. Specifically:
Within a reasonable time and at least six months before the date of mandatory submission of the final
evaluation report to the Hellenic Capital Market Commission, the AC arranges for the selection of
suitable candidate or candidates to submit a tender within a specific deadline, after the relevant
invitation (7 d).
Interested parties are invited to submit a bid within a specific deadline specified in the relevant
invitation, where relevant reference is especially made to the independence and proven experience
and training in relevant ICS and corporate governance structure evaluation projects as defined in point
(7 d).
The submitted offers are reviewed and evaluated by the AC, which proposes as the competent body to
the BoD, the assignment of the evaluation of the ICS to an appropriate at their discretion candidate,
considering the independence and professional experience of the candidate. The BoD decides upon the
assignment of the project of the periodic evaluation of the ICS to the appropriate evaluator.
The Regulatory Compliance function and / or the Internal Audit Department, under the guidance of the
AC, facilitate the evaluator during the implementation of his project regarding the communication and
cooperation with the various bodies or Departments of the Company.
7 f. Evaluation report and recipients
The evaluator carries out the evaluation of the ICS, within the agreed schedule and upon completion
submits an evaluation report, which should at least include:
▪ Summary of test results and a detailed description of them;
▪ The time of submission of the evaluation report;
▪ The reference date of the evaluation and the period it covers (which starts from the next day of the
reference date of the previous evaluation).
The summary includes the evaluator’s conclusion regarding the adequacy and effectiveness of the ICS.
It also includes the most important findings of the evaluation, the risks and the consequences arising
from them as well as the response from Top Management to these findings, including the relevant
action plans with clear and realistic timetables.
The detailed report includes all the findings of the evaluation with the relevant analyses.
Recipients of the report are defined the AC and the BoD.
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The Company submits without delay to the Hellenic Capital Market Commission, and in any case within
three (3) months from the reference date of the evaluation report, the report and, if required, the
detailed report.
The annual declaration on corporate governance includes a relevant reference on the results of the
Evaluation Report, the response of the Company’s management through a competent body decision, as
well as the action plans of the Company with the relevant time plans.
8. Relevant documents – references
Reference of this policy is made to the Internal Organization and Operation Regulation of the Company
as it applies, the Regulation of operation of the AC and the Internal Audit Department and the Hellenic
Corporate Governance Code adopted by the Company.
9. Force – Exceptions
This policy shall enter into force on the date of its adoption and shall not be subject to any exceptions.
10. Policy Update
This Policy will be evaluated for update when significant changes are identified in the covered area or
upon the implementation of legislative changes.
VI. b) Results of the process of the evaluation of the Internal Control System of PPA S.A. for the
period 17-07-2021 until 31-12-2022, in accordance with article 14, par. 3 (j) and par. 4 of L. 4706/2020
and the relevant decisions (1/891/30.09.2020 and 2/917/17.06.2021) of the BoDof the Hellenic
Capital Market Commission
The Company, by decision of its BoD, assigned to KPMG Certified Auditors S.A. the assessment of the
adequacy and effectiveness of the ICS of the Company, with reference date of 31 December 2022, in
accordance with the provisions of section j of par. 3 and par. 4 of article 14 of L. 4706/2020 and
decision 1/891/30.09.2020 of the Capital Market Commission’s BoD as applicable (the "Legislative
Framework"). The assurance was carried out in accordance with the audit program included in the
decision of the Hellenic Accounting and Auditing Standards Oversight Board (HAASOB), number
040/2022 and the International Standard on Assurance Engagement 3000 "Assurance Engagements
other than Audits or Reviews of Historical Financial Information".
Based on the work carried out by the evaluator regarding the assessment of the adequacy and
effectiveness of the Company’s ICS, we report that no material weaknesses were identified.
This result constitutes one more confirmation that the Company is in constant compliance with the
current legislative and regulatory framework governing the ICS to ensure the lawful and orderly
operation towards achieving its sustainable development strategy.
The above related ICS Evaluation Report summary was submitted to the Capital Market Commission on
24.03.2023.
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VΙΙ.Diversity Policy applied in relation to the Company’s administrative, managerial and supervisory
bodies
Description of the policy of diversity with regard to the administrative bodies of the Company
Given the fact the BoD is the highest administrative body of the Company, which is responsible for the
safeguarding of the broader corporate interests, the policy making and the growth strategy of the
Company as well as for the strengthening of the long-term economic value of the Company, it is very
essential for the particular body to possess, with regard to its composition, a diversity of skills, views
and abilities which at the same time respond to the need to effectively attain corporate goals.
From the time of the Company’s establishment and until today, the entire members of the BoD fulfill
all necessary conditions and have set the foundations in order to be granted with the capacity of the
member of the BoD. At the same time, they are distinguished for their high professional skills,
educational level, knowledge, capabilities, experiences and their organizational and administrative
abilities, and at the same time they possess high standards of ethics and integrity of character. The
members of the BoD cover a broad range in terms of age combining effectively their dynamics and
experience. The members, in their majority, are holders of graduate and postgraduate degrees of
domestic as well as international universities, have worked in high ranked positions of major companies
domestically and abroad. They have also been members of the higher managerial staff of large
organizations and as a result they possess significant international experience in the corporate as well
as the broader social fields and are in position to actively contribute to the growth prospects of the
Company. They finally fulfill the requirements of suitability as well as the criteria with regard to the
Company’s effective staffing and operation.
The current composition of the BoD aims undoubtedly at the best possible facilitation of corporate
goals, as it increases the pool of skills, experience and vision that the Company has for its highest-
ranking personnel, and consequently its competitiveness, productivity and innovation.
The current nine-member BoD of the Company, consists of 7 men and 2 women and was elected in the
framework of the decision of the Company’s Management for immediate, substantial and effective
compliance and harmonization with the provisions of the law 4706/2020 on suitability, diversity and,
above all, adequate representation by gender on the BoDand completely covers the appropriate
exercise of the responsibilities of the BoD of the Company, reflects the size and activity of the Company
and its characteristic feature is diversity of knowledge, skills and experience that can contribute to the
achievement of business objectives.
Procedure to comply with the obligations arising from Articles 99 to 101 of law 4548/2018, regarding
transactions with related parties
The Company recognizes the importance of its compliance with the obligations arising from articles 99
to 101 of Law 4548/2018, regarding transactions with related parties, to ensure the smooth and
efficient operation of the market.
Therefore, the Company establishes the following procedure of compliance with the obligations arising
from articles 99 to 101 of Law 4548/2018, regarding transactions with related parties:
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The Group to which the company belongs, maintains a list of related parties, from which the Company
has the opportunity to obtain relevant information.
Contracts of the Company with related parties, as well as the provision of security and guarantees to
third parties in favor of such parties, within the meaning of articles 99-101 of Law 4548/2018, are only
permitted upon prior authorization by the BoD or, in the case of paragraph 4 of this article, by the GA.
Related parties with respect to the Company are those parties defined as related parties of the
Company pursuant to International Accounting Standard 24, as well as the legal entities controlled by
them, pursuant to International Accounting Standard 27.
In the case where, a contract with a related party of the Company is awarded after and according to
tender procedures, as they are described in the approved and posted on the Company's website
Regulations for the Award of Contracts and Sub-concessions of the Company, the above paragraph is
not followed.
The BoDmay grant authorization, pursuant to the preceding paragraph, which is valid for six (6)
months. In the case of recurring contracts with the same person, a single authorization may be
provided that sets forth the characteristics of the contracts concerned and is valid for one (1) year.
Within ten (10) days as of the publication of the notice on the granting of the said permission by the
BoD , shareholders representing one twentieth (1/20) of the paid-in share capital may request the
convocation of the GA in order for the GA to adopt a resolution on the matter of the said permission.
The contract for which permission has been granted by the BoD shall be considered as effective only
after the lapse of the said ten-day time period or upon securing the permission of the GA or upon a
written statement by all shareholders to the Company to the effect that they do not intend to request
the convocation of the GA.
If by the time permission is granted by the GA, the contract under par. 1 of this article has already been
concluded or the guarantee or security has been provided, then the granting of permission by the GA is
canceled if objected to by shareholders representing one twentieth (1/20) of the capital represented at
the Meeting.
If the transaction involves a shareholder of the Company, the shareholder concerned does not take
part at the vote in the GA and is not counted for the purposes of quorum and majority. Other
shareholders with whom the counterparty is related under a relationship falling under paragraph 2 of
article 99 of Law 4548/2018 will not take part in the vote either. This paragraph is not applicable when
permission by the BoD was given with the concurrence of the majority of its independent members.
In all cases, the granting of permission by the GA is canceled if opposed by shareholders representing
one third (1/3) of the capital represented thereat.
If the permission for the conclusion of the contract was given by the GA, any amendments thereto may
be made under permission by the BoD, unless the GA has reserved for itself the right to authorize such
amendments as well.
Decision thereon by the BoD or the GA is made on the basis of a report by a certified public accountant
or auditing firm or other third party unrelated to the Company, that assesses whether the transaction is
fair and reasonable for the Company and shareholders who are not a related party, including the
minority shareholders of the Company, and explains the assumptions on which it has relied together
with the methods employed.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The BoD issues a notice about the granting of permission to the conclusion of the contract by the BoD
itself or by the GA, and the lapse of the time period set forth in paragraph 4 of the present article. Such
notice is published prior to the conclusion of the transaction. An inaccuracy in the notice cannot be
invoked towards third parties, unless the Company demonstrates that such third parties were aware of
the inaccuracy in question. The notice shall as a minimum include information: (a) on the nature of the
relationship of the Company to the related party; (b) the date and value of the transaction;
(c) any other information as necessary in order to assess whether the transaction is fair and reasonable
for the Company and those persons who are not a related party, including the minority shareholders.
The said notice is accompanied by the report referred to in the preceding paragraph.
A transaction entered into between the related party of the Company shall also be submitted to the
publication formalities.
Sustainable development policy followed by the Company
The Company's long-term commitment to Sustainable Development has already led to its participation
in the ATHEX ESG Index of the Athens Stock Exchange, while it takes into consideration both the new
legislation on Corporate Governance and the principles of the EU Taxonomy.
The Company, the Sustainable Development seeks, over time, to create value for its stakeholders, i.e.
shareholders, customers, employees and society in general.
To achieve this goal, the Company places particular emphasis on, among others, the training and
development of its personnel, health and safety at work, as well as respect for the environment,
following the principles of sustainable development.
Responsible operation is a continuous commitment to action of substance, in order to generate value
for all stakeholders that meet the modern needs of society and contribute in general to its prosperity.
The Company has a specific strategy, which focuses on the important issues related to its activity and
seeks its continuous responsible development, focusing on the critical pillars of business responsibility:
Economy, Society, Environment.
Sustainable development is an integral part of the Company's business practice model and culture. In
the context of the implementation of Sustainable Development, the Company develops activities,
among others, in the following areas:
a) Personnel health and safety
The Company places the protection of the health and safety of its personnel as a priority and primary
concern. As part of the implementation of this policy, the Company adopts every best international
practice that contributes to the strengthening and improvement of the safety culture and organizes
training programs, both for the knowledge of the risks of the production process and for the cultivation
of a common awareness and behavior of safety among the personnel.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
b) Training and development of Personnel
The Company recognizes the contribution of the staff to its successful business course. The extensive
experience, the high specialization, the know-how of the staff in matters of the port industry support
the development perspective of the Company. The Company attaches great importance to the
continuous training of the staff, designing and implementing educational programs of high added value,
which highlight the knowledge and skills of the staff.
In 2023 the number of trainings and participants increased significantly compared to 2022, as the
Management aimed to train all its staff in Health and Safety matters. Programs were also organized to
enhance the technical skills of employees and a wide range of courses were provided on topics related
to ISO, ESG, ISPS Code, Risk Management, Private Data Protection.
c) Corporate Social Responsibility
The Company seeks the sustainability of the local community by maintaining a two-way relationship
and continuous cooperation with it. The Company derives a significant part of its needs in human
resources from the local community in which it operates. Of the total workforce, 44% are workers from
local communities (Piraeus Region), thus contributing to the local economy. In relation to the
Company's social contribution initiatives, the support of vulnerable groups, the strengthening of sports
clubs and cultural activities, the provision of donations and equipment to charitable organizations or
institutions, the support of schools, and other initiatives that promote common values for progress,
development and social special offer.
d) Environmental protection
Protecting the environment and reducing environmental footprint is a strategic goal and commitment
of the Company. The Company adopts policies and implements actions to minimize the environmental
impacts resulting from its activities, reduce energy consumption and improve its energy efficiency. In
this context, an Environmental Performance Monitoring Group has already been established, which is
made up of the following individual units:
• Environmental Unit, with the object of the implementation of the environmental conditions 4.1.10 &
4.1.11 of the Company’s Environmental Terms Approval Decision (AEPO).
• Energy Management Team, with the object of the monitoring energy consumption and performance
of Energy Management System and undertaking corrective actions for achievement the Company’s
energy goals.
• Climate law Performance Team, with the object of the implementation of Climate Law provisions
including the preparation, verification and submission of annual report on the Carbon Footprint.
• Climate Change Adaptation Team, with the object of the preparation of the port on Climate Change
adaptation in accordance with provisions of environmental terms including the Study of Climate
Change Adaptation of the Piraeus port and the elaboration of Specific Greenhouse Gas Emissions
Mitigation Plan.
• LNG and alternative fuels Team, with the object of coordination and organization of the required
actions for compliance with the requirements of the environmental legislation and the Environmental
terms approval decision of the Company on acceleration of LNG and other alternative fuels supply at
Piraeus Port.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
e) Market
As part of its Sustainable Development strategy, the market pillar largely determines the Company's
business activities. The Company's goal is to respond consistently, transparently and responsibly to
market demands and to be able to respond promptly and effectively to challenges, creating value for
society as a whole.
f) Corporate governance
In order to record the practices that it implements both voluntarily and due to its obligations based on
the legislation, as well as for reasons of greater transparency, Company has adopted the Corporate
Governance Code of the Hellenic Corporate Governance Council.
The above framework of the Corporate Governance System, the Sustainable Development Policy and
Corporate Social Responsibility constitute the axis of the Company's operation and aim to ensure
sustainable development and the maximization of its value.
The policy, the results of the Company's performance in the issues of Sustainable Development, as well
as the implementation of the programs and the achievement of the objectives, are published on an
annual basis, in order to fully and comprehensively inform under a general framework of transparency.
The Company supports the United Nations 2030 Agenda, as set out in the 17 Sustainable Development
Goals, with a view to actively contributing to their achievement by promoting the prosperity and
security of the people; environmental protection and the fight against poverty.
The Company’s priority is the fulfillment of the objectives that are directly related to the activities and
challenges of the sector in which it operates, as well as to the essential issues arising from the
Corporate Responsibility and Sustainable Development Report, which details the connection of the
programs and of the Company's actions.
The Company recognizes that international ESG indicators are a strategic tool to support investors in
identifying risks and opportunities linked to the sustainability of their investment portfolio.
Subsequently, simultaneously responding to the challenges of the new environment, it builds a
sustainable development strategy aiming at minimizing the negative impact that its activities may have.
The Company has defined and is implementing an ambitious workplan, aiming to strengthen its
sustainability performance, comply with the EU regulations, and integrate ESG criteria, in its daily
operation, in line with the evolving requirements of investors, regulators, markets and society. In this
framework, the Company has already started preparing to comply with the provisions of the Corporate
Sustainability Reporting Directive (CSRD) which will come into force with a reference year in the
financial year 2024, having already awarded after a tendering process (Dec. 2023) to an internationally
experienced Consulting Company providing consulting services to support, design and develop relevant
CSRD requirements. The strategy, programs, results and related commitments are analyzed in the
annual Corporate Responsibility and Sustainable Development Report, which is based on the Global
Reporting Initiative (GRI) guidelines and more specifically the Standards (In Accordance - Core), which
are the most internationally recognized and demanding guidelines of their kind, and is available in the
Company’s website.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Materiality Assessment
Material Recognition Process
One of the most important and fundamental guiding principles of the GRI is the concept of materiality.
The Company addresses the issues that cause the most significant economic, environmental, and social
impact, or those that are considered most important, by its internal and external stakeholders. In the
process of identifying the essential issues the Company actively involves its stakeholders and considers
all the issues and topics in the given time period that fall within the limits of the organization's
exposure.
During the process of identifying the essential issues, the Company conducted quality, electronic
research on representatives of its Stakeholders in order to examine all important issues related to
Sustainability, as well as to systematize the dialogue with them on these issues.
Methodology
The methodology followed is described below:
Step 1: Identify and prioritize the main Stakeholders, who will be included in the process of finding the
essential issues. Involves stakeholder groups such as employees, NGO representatives, suppliers,
customers and local community representatives.
Step 2: Identify and prioritize key indicators (economic, environmental, social, work practices, human
rights, responsible services, etc.), using the GRI guidelines.
Step 3: Conduct a survey, through a quality questionnaire to identify the key issues in the opinion of
stakeholders and management. The following quality scale was used for each question: Very Important,
Important, Not at all Important. The stakeholders who responded to the questionnaire consist of the
following internal and external ensembles: employees, NGO representatives, suppliers, customers and
local community representatives. The same questionnaire was completed by the members of the
administration.
Step 4: Create a table (matrix) that identifies the essential issues. A numerical value was given to each
response to the significance questionnaire (High Significance = 3, Medium Significance = 2, Low
Significance = 1).
For each essential question included in the questionnaire, an average value was calculated through the
answers of all interested parties.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Material aspects and Materiality Matrix
The GRI guidelines recommend the design of issues according to their materiality in a materiality
matrix, with the X-axis representing issues that cause significant impact on the operation of the
Company. (Management view), and the Y-axis to represent issues that are considered important
between stakeholders (stakeholder view). The issues that are considered very important for the
Management and the Stakeholders are included in detail in the report.
By calculating both above parameters, as essential issues for 2022 are mentioned:
• Occupational health and safety
• Anti-corruption
• Tax
• Customer health and safety
• Employment
• Anti-competitive behavior
• Waste
• Security Practices
• Local communities
• Indirect economic impacts
• Training and education
• Economic performance
• Freedom of collective associating
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Board of Directors Explanatory Report (according to article 4,
par. 7 and 8 of Law 3556/2007)
The present explanatory report of the Company’s BoD to the annual GA of Shareholders is an integral
part of the Annual Report of the BoD.
Share capital structure
The Company’s share capital amounts to Euro fifty million (50,000,000€) and is divided into 25 million
ordinary shares, of a nominal value of Euro two (€2,00) each. Each share is entitled to one vote. The
Company’s shares are dematerialised and listed to trading on the Athens Stock Exchange.
According to the Company’s Articles of Association, the Company’s shares and rights deriving
therefrom are indivisible and, in case of joint ownership, the joint owners exercise their rights through
a common representative, whereas each joint owner is jointly and severally liable to the Company for
the fulfillment of the obligations deriving from the share.
Restrictions on the transfer of the Company’s shares
The Company’s shares may be transferred in the manner laid down by law and there are no restrictions
on their transfer contained in the Articles of Association of the Company.
Major direct or indirect holdings within the meaning of Articles 9 to 11 of Law 3556/2007
The major holdings (over 5%) as at 31.12.2023 were as follows:
Following the execution of a share purchase agreement and corresponding over the counter
transaction made on August 10th, 2016, COSCO SHIPPING (Hong Kong) Co., Limited obtained 51% of
shares and voting rights in the Company.
As a result of an over-the-counter transaction that took place on 06 October 2021, the percentage of
voting rights of COSCO SHIPPING (Hong Kong) Co., Limited in PPA S.A. has increased from 51% to 67%.
With the above over-the counter transaction, COSCO SHIPPING (Hong Kong) Co., Limited has acquired
from Hellenic Republic Asset Development Fund S.A. an additional 16% of shares in PPA S.A.
The above transaction has taken place under an Amended Share Purchase Agreement between COSCO
SHIPPING (Hong Kong) Co., Limited as Purchaser and Hellenic Republic Asset Development Fund S.A. as
Seller, following ratification of an Amendment to the Concession Agreement between the Hellenic
Republic and PPA S.A. (Law 4838/2021, Government Gazette 180A/ 01.10.2021).
COSCO SHIPPING (Hong Kong) Co., Limited is 100% held by China Shipping Group Co. Ltd, which is 100%
held by China COSCO Shipping Corporation Limited. As a result of the transaction, China COSCO
Shipping Corporation Limited indirectly holds 67% of voting rights in PPA S.A.
As a result of the above referred transaction, the “Hellenic Republic Asset Development Fund S.A.”
percentage of voting rights in PPA S.A. directly has fallen from 23.1378% to 7.1378%. The total (100%)
of the shares in HRADF S.A. is owned by EESYP S.A., which is 100% controlled by the Greek State. The
transfer is attributed to an amended Share Purchase Agreement following ratification of the
amendment of the Concession Agreement (Law 4838/2021, Government Gazette 180A/ 01.10.2021).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Pursuant to a transaction made on November 10, 2021, the percentage of voting rights in PPA held by
the shareholder Helikon Long Short Equity Fund Master ICAV amounts to 5.376%.
Holders of any type of shares granting special rights of control
There are no shares of the Company that grant to their holders special rights of control.
Restrictions to voting rights
The Company’s Articles of Association do not contain any restrictions to the voting rights deriving from
the Company’s shares.
Agreements between shareholders which result in restrictions on the transfer of shares or limitations
on voting rights
The Company is aware of a Shareholders Agreement dated 8 April 2016 between COSCO Hong Kong
Group Limited (currently incorporated under the corporate name COSCO SHIPPING (Hong Kong) Co.,
Limited) and Hellenic Republic Asset Development Fund S.A., which contains certain restrictions on the
transfer of shares and certain limitations on voting rights of the contracting parties.
The rules contained in the Company’s Articles of Association on appointment and replacement of
members of the BoD and on amendment of the provisions of the Articles of Association are not
different from the provisions of the legislation. However, the Company wishes to inform that according
to article 18 of the Articles of Association, as long as the Hellenic Republic Asset Development Fund S.A.
or any global successor or successor by operation of law of the Hellenic Republic Asset Development
Fund S.A. (each and collectively, the “FUND”) holds at least one million two hundred and fifty thousand
(1,250,000) voting shares and less than 10% of the voting shares issued by the Company and subject to
the FUND is entitled to appoint one (1) Member pursuant to article 79 of Law 4548/2018 as in force. If
the FUND holds at least 10% of the voting shares, the FUND is entitled to appoint 1/3 of the total
number of Members of the BoD of the Company. Should any Director appointed pursuant to paragraph
2 of this article resign or become incapacitated for whatever reason, they shall be replaced by such
personas the HRADF shall specify in a pertinent written notice to the Company, with immediate effect.
Competence of the BoD or of some of its members to issue new shares or purchase own shares
No special competence different from the provisions of the legislation is awarded by the Articles of
Association to the BoD or to some of its members to issue new shares or purchase own shares of the
Company.
Important agreements contracted by the Company, which will enter into effect, be amended or expire
in case of change in the Company’s control following a public offer and the results of such agreements.
There are no such agreements.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Agreements that the Company has contracted with the members of the BoD or with its personnel,
which provide for the payment of compensation in case of resignation or release without substantiated
reason or in case of termination of their term or employment due to a public offer.
There are no such agreements.
Piraeus, March 29, 2024
THE CHAIRMAN OF THE BoD
YU ZENG GA
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Independent Auditors’ Report
(Translated from the original in Greek)
To the Shareholders of Piraeus Port Authority S.A.
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Financial Statements of Piraeus Port Authority S.A. (the
“Company”) which comprise the Statement of Financial Position as at 31 December 2023, the
Statement of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash
Flows for the year then ended, and notes, comprising material accounting policies and other
explanatory information.
In our opinion, the accompanying Financial Statements present fairly, in all material respects,
the financial position of Piraeus Port Authority S.A. as at 31 December 2023 and its financial
performance and its cash flows for the year then ended, in accordance with International
Financial Reporting Standards as adopted by the European Union.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA), as
incorporated in Greek legislation. Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of
our report. We are independent of the Company in accordance with the International Ethics
Standards Board for Accountants International Code of Ethics for Professional Accountants, as
incorporated in Greek legislation, and with the ethical requirements that are relevant to the
audit of the financial statements in Greece and we have fulfilled our other ethical
responsibilities in accordance with the requirements of the applicable legislation. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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Key Audit Matters
Key audit matters are those matters, that, in our professional judgment, were of most
significance in our audit of the Financial Statements of the current period. These matters and
the relevant significant assessed risks of material misstatement were addressed in the context
of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Contingent liabilities and provisions arising from litigation
Refer to Notes 18 and 31a) to the Financial Statements.
The key audit matter
How the matter was addressed in our audit
The Company faces a number of pending
legal proceedings with a claimed amount of
EUR 114,9 million from which a provision of
EUR 14,7 million has been accounted. The
Company establishes provisions based on
management’s estimates of the probable
amount that will be required for the
settlement of the liabilities.
This area was considered a key audit matter
due to the significant number of pending legal
cases and the significance of the relative
amounts claimed, as well as the extent of
estimates and assumptions made by
management regarding the amounts of the
provision and the extent of disclosures
regarding the legal cases of the Company in
the financial statements.
Our audit procedures with regards to this
matter included, among others, the following:
• We obtained analysis of provisions
established and approved by management
and we compared them to the detailed lists
provided by the legal department.
• For the pending legal proceedings, we
examined documentation (lawsuits, court
decisions), supporting the movement of the
accounting balance of the provision during
the year ended 31 December 2023.
• We obtained external legal confirmations
directly requested by us and we discussed
with the internal legal department the
pending legal cases with respects to the
estimated outcome of the legal
proceedings in order to confirm the
relevant management estimates.
• We assessed the reasonableness of
management’s assertions and estimates
regarding litigation proceedings against the
Company which could result to a negative
outcome and relevant outflows.
• We also assessed the appropriateness and
adequacy of the disclosures in the financial
statements regarding this matter.
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Assessment of the Recoverable amount of Container Terminal Pier I
Refer to Notes 18 and 31a) to the Financial Statements.
The key audit matter
How the matter was addressed in our audit
The Company's Management reviews
Property, plant and equipment for impairment
when events or changes in circumstances
indicate that their carrying amount may not
be recoverable. The general macroeconomic
environment, the conflicts in Ukraine and the
Gaza Strip, as well as the unstable situation
with the passage of commercial ships
through the Suez Canal and the Red Sea, led
the Company's Management to proceed with
an impairment test of the accounting value of
sector of activity of the Container Terminal
that is significantly affected by the above
conditions by assessing its recoverable
value.
The segment's recoverable amount was
determined by the value in use which was
calculated based on adjusted probability-
weighted discounted cash flows and revised
segment-specific business plans.
This requires judgment on the part of
management regarding future cash flows and
the discount rate applied to the future cash
flow projections. Regarding future cash flows,
management's judgments are related to
variables such as the duration of the crisis in
the High Seas, the increase in prices and the
total volume of loading and transshipment
cargoes in Piraeus as well as the increase in
operating costs.
Due to the significant value of the Container
Terminal business area and the importance
of Management's assumptions/accounting
estimates, as well as the related disclosures
in the financial statements on this matter, this
area is considered as one of the most
important audit matters.
Our audit procedures with regards to this
matter included, among others, the following:
• We examined the procedures for
identifying any indications of impairment of
the value of the Container Terminal
segment's activities by Management.
• We examined Management's procedures
regarding the preparation of business plans
aimed at determining the value in use of
the Container Terminal segment's
activities.
• With the assistance of experts, we
examined the reasonableness of
management's assumptions applied to the
valuation model and the discount rate
used.
• We examined the mathematical accuracy
of the discounted cash flow model as well
as the reasonableness of Management's
assumptions and estimates.
• We assessed the reasonableness of key
assumptions and estimates of future cash
flows. Key assumptions evaluated included
revenue trends, expense trends, earnings
before financing and investing activities,
depreciation and amortization, industry
growth rate, the probability of a Red Sea
crisis, as well as discount rates on future
cash flows streams.
• We evaluated the reliability of
Management's forecasts in the preparation
of business plans by comparing previous
estimates and forecasts of Management in
relation to the actual performance of future
cash flows
• We examined the suitability and feasibility
of the sensitivity analyses performed by
Management and their impact on the
overall impairment assessment result, and
evaluated whether additional sensitivity
analysis is required.
Page 168 από 238
• We assessed the adequacy of disclosures
in the corporate and financial statements
regarding the above matters.
Other Information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the Board of Directors’ Report, for which reference is
made in the “Report on Other Legal and Regulatory Requirements” and the Declarations of the
Members of the Board of Directors but does not include the Financial Statements and our
Auditors’ Report thereon.
Our opinion on the Financial Statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to
be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Board of Directors and Those Charged with Governance
for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the Financial
Statements in accordance with International Financial Reporting Standards as adopted by the
European Union, and for such internal control as the Board of Directors determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The Audit Committee of the Company is responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs which have been
incorporated in Greek legislation will always detect a material misstatement when it exists.
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Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs, which have been incorporated in Greek
legislation, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the separate and consolidated
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board of Directors .
• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditors’ report to the related disclosures in the
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Financial Statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors’
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
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Report on Other Legal and Regulatory Requirements
1 Board of Directors’ Report
The Board of Directors is responsible for the preparation of the Board of Directors’ Report and
the Corporate Governance Statement that is included in this report. Our opinion on the
financial statements does not cover the Board of Directors’ Report and we do not express an
audit opinion thereon. Our responsibility is to read the Board of Directors’ Report and, in doing
so, consider whether, based on our financial statements audit work, the information therein is
materially misstated or inconsistent with the financial statements or our audit knowledge.
Based solely on that work pursuant to the provisions of paragraph 5 of Article 2 of
Law 4336/2015 (part B), we note that:
(a) The Board of Directors’ Report includes a Corporate Governance Statement which
provides the information set by Article 152 of L. 4548/2018.
(b) In our opinion, the Board of Directors’ Report has been prepared in accordance with the
applicable legal requirements of Articles 150-151 and of paragraph 1 (cases c and d) of
article 152 of L. 4548/2018 and its contents correspond with the accompanying Financial
Statements for the year ended 31 December 2023.
(c) Based on the knowledge acquired during our audit, relating to Piraeus Port Authority S.A.
and its environment, we have not identified any material misstatements in the Board of
Directors’ Report.
2 Additional Report to the audit Committee
Our audit opinion on the Financial Statements is consistent with the Additional Report to the
Audit Committee of the Company dated 28 March 2024, pursuant to the requirements of
article 11 of the Regulation 537/2014 of the European Union (EU).
3 Provision of non Audit Services
We have not provided to the Company and its subsidiaries any prohibited non-audit services
referred to in article 5 of Regulation (EU) 537/2014 or any other permissible non-audit services.
The permissible non-audit services that we have provided to the Company and its subsidiaries
during the year ended 31 December 2023 are disclosed in Note 25 of the accompanying
Financial Statements.
4 Appointment of Auditors
We were appointed for the first time as Certified Auditors of the Company based on the
decision of the Annual General Shareholders’ Meeting dated 13/07/2022. From then onwards
our appointment has been renewed uninterruptedly for a total period of 2 years based on the
annual decisions of the General Shareholders’ Meeting.
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5 Operations Regulation
The Company has an Operations Regulation in accordance with the content provided by the
provisions of the article 14 of Law 4706/2020.
6 Assurance Report on the European Single Electronic Reporting Format
We examined the digital files of the company Piraeus Port Authority S.A. (the Company) ,
which were prepared in accordance with the European Single Electronic Format (ESEF) that is
determined by the Commission Delegated Regulation (EU) 2019/815, as amended by the
Regulation (EU) 2020/1989 (the ESEF Regulation) that include the financial statements of the
Company for the year ended as at 31 December 2023 in XHTML format.
Regulatory framework
The digital files of the European Single Electronic Format are prepared in accordance with the
ESEF Regulation and the 2020/C 379/01 Commission Interpretative Communication issued on
10 November 2020, as required by the L. 3556/2007 and the relevant announcements of the
Hellenic Capital Markets Commission and the Athens Stock Exchange (the “ESEF Regulatory
Framework”).
This Framework includes in summary, among others, the following requirements:
• All the annual financial reports must be prepared in XHTML format.
• With respects to the consolidated financial statements based on International Financial
Reporting Standards (IFRS), the financial information that is included in the Statement of
Comprehensive Income, the Statement of Financial Position, the Statement of Changes in
Equity and the Statement of Cash Flows, as well as in the Notes to the financial
statements,in accordance with the ESEF Taxonomy, as in force. The technical
requirements for the ESEF, including the relevant taxonomy, are included in the ESEF
Regulatory Technical Standards, including of the Notes to the Financial Statements.
The requirements as defined in the ESEF Regulatory Framework as in force are appropriate
criteria in order to express a reasonable assurance conclusion.
Responsibilities of the Board of Directors and those charged with governance
The Board of Directors is responsible for the preparation and filing of the financial statements of
the Company, for the year ended as at 31 December 2023, in accordance with the
requirements determined by the ESEF Regulatory Framework, and for such internal control as
the Board of Directors determines is necessary to enable the preparation of digital files that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibilities
Our responsibility is the planning and the execution of this assurance engagement in
accordance with the 214/4/11-02-2022 Decision of the Hellenic Accounting and Auditing
Standards Oversight Board and the Guidelines for the assurance engagement and report of
Certified Auditors on the European Single Electronic Reporting Format (ESEF) of issuers with
shares listed in a regulated market in Greece”, as these were issued by the Institute of Certified
Public Accountants of Greece on 14/02/2022 (the “ESEF Guidelines”), in order to obtain
reasonable assurance that the financial statements of the Company that are prepared by the
Page 172 από 238
the Board of Directors of the Company in accordance with the ESEF comply in all material
respects with the ESEF Regulatory Framework as in force.
Our work was performed in accordance with the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants, as it has been incorporated into
Greek legislation and we have also fulfilled our independence requirements, in accordance with
the L. 4449/2017 and the Regulation (EU) 537/2014.
The assurance work that we carried out refers exclusively to the ESEF Guidelines and was
conducted in accordance with the International Standard on Assurance Engagements 3000,
“Assurance Engagements other than Audits or Reviews of Historical Financial Information”.
Reasonable assurance is a high level of assurance, but is not a guarantee that such an
assurance engagement will always detect a material misstatement regarding non-compliance
with the requirements of the ESEF Regulation.
Conclusion
Based on the procedures performed and the evidence obtained, we express the conclusion
that the financial statements of the Company for the year ended as of 31 December 2023 in
XHTML format, “549300UNB6JCR0XZT8642023-12-31-el”, have been prepared, in all material
respects, in accordance with the requirements of the ESEF Regulatory Framework.
Athens, 29 March 2024
KPMG Certified Auditors S.A.
AM SOEL 114
Ioannis Bravos, Certified Auditor
AM SOEL 40651
Page 173 από 238
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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PIRAEUS PORT AUTHORITY S.A
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
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1. ESTABLISHMENT AND ACTIVITY OF THE COMPANY
“Piraeus Port Authority S.A” (from now on “PPA S.A.” or “Company”) was established in 1930 as Civil Law
Legal Corporation (C.L.L.C.) by Law 4748/1930, which was revised by L.1559/1950 and was ratified by
L.1630/1951 and converted into a Societé Anonyme (S.A.) by Law 2688/1999. The Company is located at
Municipality of Piraeus, at 10 Akti Miaouli street, TC 185 38.
The Company’s main objective is to perform its obligations, conduct its activities and exercise its faculties
under or in respect of the concession agreement between the Company and the Hellenic Republic dated 13
February 2002 regarding the use and exploitation of certain areas and assets within the Port of Piraeus, as
amended and in force.
The Company may, by way of an illustrative but no means exhaustive list, conduct and be engaged in the
following activities:
- to use all rights assigned to the Company pursuant to the Concession Agreement and maintain,
utilize and exploit all concession assets in accordance with the Concession Agreement;
- provide services and facilities to vessels, cargo and passengers, including ship berthing and cargo and
passenger handling to and from the port;
- install, organize and exploit all kinds of port infrastructure;
- undertake any activities related to the port and all other commercial activities associated with or
reasonably incidental to the operation of the port of Piraeus;
- engage third parties to provide any kind of port services;
- award contracts for works;
- engage in such further activities as are prudent or customary for the proper conduct of its business and
operations in accordance with the Concession Agreement; and
- engage in any and all activities, transactions or operations of a type that are generally conducted by
commercial corporations.
The main activities of the Company are anchoring services of vessels, handling cargo, loading and unloading
services as well as goods storage and car transportation. The Company is also responsible for the
maintenance of port facilities, the supply of port services (water, electricity, telephone connection etc.
supply), for services provided to travelers (coastal and cruise ships) and for renting space to third parties.
The Company is governed by the principles of L. 4548/2018 as replaced the Company Law 2190/1920 and
the founding Law 2688/1999, as amended by Law 2881/2001 and Law 4404/2016.
The duration period of the Company is one hundred (100) years from the effective date of Law 2688/1999.
This period may be extended by special resolution of the shareholders general meeting.
COSCO SHIPPING (Hong Kong) Limited controlled the 51% of the voting rights, with date of transfer of such
rights on 10 August 2016. COSCO SHIPPING (Hong Kong) Limited is 100% held by China Shipping Company
Limited, which is 100% held by China COSCO SHIPPING Corporation Limited, a Chinese state-owned
company. As a result, China COSCO SHIPPING Corporation Limited, by indirectly holding 100% of COSCO
SHIPPING (Hong Kong) Limited, indirectly held 51% of the voting rights in PPA.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
On 6 October 2021, an over-the-counter transaction took place where COSCO SHIPPING (Hong Kong) Co.,
Limited acquired from Hellenic Republic Asset Development Fund S.A. an additional 16% of shares in PPA
S.A.As a result, the percentage of voting rights of COSCO SHIPPING (Hong Kong) Co., Limited in PPA S.A. has
increased from 51% to 67%. The above transaction has taken place under an Amended Share Purchase
Agreement between COSCO SHIPPING (Hong Kong) Co., Limited as Purchaser and Hellenic Republic Asset
Development Fund S.A. as Seller, following ratification of an Amendment to the Concession Agreement
between the Hellenic Republic and PPA S.A. (Law 4838/2021, Government Gazette 180A/ 01.10.2021).
As a result of the above transaction, China COSCO Shipping Corporation Limited indirectly holds 67% of
voting rights in PPA S.A.
The Company’s number of employees as at December 31, 2023 amounted to 1.014. At December 31, 2022,
the respective number of employees was 962.
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS:
(a) Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union. These financial statements have been prepared
under the historical cost, except for liabilities for cash settled share based payments that are fair value, as
well as going concern basis. All amounts presented in the financial statements are in euros. Any
differences between the amounts included in the financial statements and the respective amounts
included in the notes are attributed to roundings.
The preparation of financial statements according to the IFRS requires estimates and assumptions to be
made by the management, influencing the assets and liabilities amounts, the disclosure of potential
receivable and liabilities as at the financial statements date, as well as the revenue and expenditure
amounts, during the financial period. Actual results may differ from these estimations. It also requires
Μanagement to exercise its judgment in the process of applying the accounting policies which have been
adopted. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in note 2(c).
The Company's management observes closely and continuously the extended conflict in Ukraine, the war
in the Gaza Strip, the prevailing situation, which results in the unsafe transit of cargo ships through the
Suez Canal and Red Sea, and their effects on the macroeconomic and financial environment, such as the
energy instability, the increase in energy and bank interest rates, the most intense inflationary pressures,
and the most serious complications in international shipping and global trade, in order to ensure that all
necessary actions and initiatives are undertaken to minimize possible consequences for the Company’s
activities.
Management believes that its strong capital position and liquidity, its activity in different sectors, its
strong and dynamic Μanagement, the experienced human resources as well as the fact that until now the
above conditions have not significantly affected its activities , will allow the Company to successfully
overcome any period of uncertainty and has reached the conclusion that no additional impairment
provisions of the financial and non-financial assets of the Company are required on December 31, 2023.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
(b) Approval of Financial Statements
The Board of Directors of the Company approved the financial statements for the year ended at
December 31, 2023, on 29 March, 2024. The abovementioned financial statements are subject to the final
approval of the Annual General Assembly of the Shareholders.
(c) Significant Accounting Judgements and Estimates
The Company makes estimates and judgments in order to select the most appropriate accounting
principles taking into consideration the future outcome of events and transactions. Estimates and
judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Estimates and
judgments adopted in the preparation of the annual financial statements are consistent with those
followed in the preparation of the annual financial statements for the year ended December 31, 2022.
The significant estimates and judgments that have a risk of causing a significant adjustment to the carrying
amounts of assets and liabilities within the next financial year are as follows:
c.1 Significant accounting estimates and assumptions
(i) Allowance for doubtful accounts receivables and legal cases: Management periodically reassess the
adequacy of allowance for doubtful accounts receivable following the simplified approach of IFRS 9 of
calculating expected credit losses (‘ECLs’). The expected loss rate is assessed on the basis of historical credit
losses adjusted to reflect current and forward-looking information. ECLs are based on the difference
between the contractual cash flows due and all the cash flows that the Company expects to receive and
taking into consideration reports from its legal department.
(ii) Provisions for legal cases and contingent liabilities: The Company, in conjunction with its legal
department and its external advisors who manage the cases, makes an assessment of the outcome of the
litigation at the end of each financial year. Based on Management's judgment based on all available
information, including the opinion of its legal advisors managing the cases, the Company evaluates the
likelihood of an adverse outcome, as well as the amounts potentially payable to settle the cases, and makes
the necessary provision or disclosure of contingent liabilities related to pending litigation. The above
assessment is a complex process involving judgments about the potential consequences as well as
interpretations of laws and regulations.
(iii) Income taxes: Income tax expense consists of current and deferred tax. According to IAS 12, income tax
provisions are based on estimations as to the taxes that shall be paid to the tax authorities and includes the
current income tax for each fiscal year, the provision for additional taxes which may arise from future tax
audits and the recognition of future tax benefits. The final clearance of income taxes may be different from
the relevant amounts which are included in these financial statements.
Estimates on deferred tax arise in the process of recognition of deferred tax assets which is performed to
the extent that is probable that future taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. In
addition, the tax rates used for both deferred tax assets and liabilities are the ones that are estimated to be
enacted in the following years where the differences are expected to reverse.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
(iv) Depreciation rates: The Company’s assets are depreciated over their estimated remaining useful lives.
These useful lives are periodically reassessed to determine whether the original period continues to be
appropriate. The actual lives of these assets can vary depending on a variety of factors such as
technological innovation, maintenance programs and environmental imperatives due to climate changes.
(v) Provision for staff leaving indemnities:The cost for staff leaving indemnities is determined based on
actuarial valuations. The actuarial valuation requires management to make assumptions about future salary
increases, discount rates, mortality rates, etc. Management, at each reporting date when the provision is
re-examined, tries to give its best estimate regarding the above mentioned parameters.
(vi) Leases: The Company made a significant estimate to determine the “incremental borrowing rate” that
it used to recognize its lease contract with the Greek State because of its special nature. This contract is the
Company's main lease agreement (Note 3 (s)).
(vii) Share-based payments, cash-settled : At each reporting date, the Company makes estimates to
measure the fair value of the share-based benefit obligation on the data to be included in the relevant
valuation model as the dividend yield, free interest-risk. In addition, the Management of the Company, in
assessing the fair value of the obligation of the specific benefits, makes estimates regarding the
performance of its specific financial figures, as well as estimates regarding the performance of the
beneficiaries of those benefits.
(viii) Impairment of property, plant and equipment: Property, plant and equipment are tested for
impairment when there are indicators that the carrying amounts may not be recoverable. When value in
use calculations are undertaken, Management estimates the expected future cash flows from the asset or
cash-generating unit, chooses a suitable discount rate and long-term growth indicators in order to calculate
the present value of those cash flows. The subjectivity which is involved in the key assumptions that are
used by Management in the check of impairment and the inherent uncertainty of these assumptions is
high.
The general macroeconomic environment, the conflicts in Ukraine and Strip of Gauze, as well as the no
stable situation with the unsafe transit of cargo ships through Suez Canal and Red Sea led the Company to
proceed with an interim assessment of impairment of the recoverable amount for the sectors of activity
that were significantly affected and recorded losses due the above conditions.
For this reason, the Management has performed an impairment test, in accordance with the requirements
of IAS 36, on the Container Terminal business segment (SEMPO), which continued to show losses in the
current financial year, even though they were significantly reduced compared to the previous financial
year. The assessment was carried out by determining the recoverable value ('value in use') of the segment
through the Discounted Cash Flow valuation method and its revised business plans. The discount rate used
to discount the cash flows is 10.60% (31.12.2022: 10.30%). In addition, the management, in an effort to
estimate as reliably as possible the future impact of the above events on the segment's business and its
growth rate, used an average revenue growth rate of 3.9% (31.12.2022: 3.7). To determine the average
revenue growth rate for the current financial year and due to the above events, it developed three
different scenarios in terms of the duration of the above events and their possible effects, weighting them
according to its best estimate of the resumption of safe passage of commercial vessels through the Suez
Canal and the Red Sea. More specifically:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
- Scenario 1 with a weighted 65%- the most propable scenario than the other scenarios (propable >
50% more likely than not) im lines with the IAS 36 Appendix 1 guidelines- realization probability that
the situation will normalize in the second half of 2024 with an impact on the growth rate for 2024 -
21.6% compared to 2023, which returns from the following years to a positive sign, continuing the
path of the actual performance of the last years,
- scenario 2 with a weighted 25% - and the rest of the possibilities- realization probability that the
situation will improve in early 2025 in an orderly manner, having an impact on the growth rate for
2024 of -32.5% relative to 2023, which returns from the following years to a positive sign, reaching
2023 levels in 2027, and
- Scenario 3 with a weighted 10% - remote likelihood in the line with IAS 36 Appendix 1 guidelines-
probability of realization that the smooth navigation in the region will return to its normal levels at the
beginning of 2027, with an impact on the growth rate for 2024 of -32.5%, for 2025 of -19.7%, and for
2026 of -12.8% compared to 2023, which returns to a positive sign from 2027 having fully recovered
compared to 2023.
A sensitivity analysis was carried out on the positive or negative change in the discount rate and the
weighted income by 0.25% and 0.50%, respectively. A +5% sensitivity analysis was also performed on all
possible scenarios of normalization of the situation between the 3 above scenarios. Based on the results,
the present value exceeds the carrying value of the tangible fixed assets of Peir I, and therefore no related
impairment was recorded (Note 4).
The split of propabilities between the 3 scenarios is subject to a high level of uncertainty and voladility, but
it best reflects management’s estimation.
(ix) Contingent liabilities: The existence of contingent liabilities requires from Management to make
assumptions and estimates continuously related to the possibility that future events may or may not occur
as well as the effects that those events may have on the activities of the Company.
c.2 Significant judgements on the implementation of accounting policies
Leases: The Company made judgments as to whether the sub-lease agreements in which the Company is
a lessor relate to operating or finance leases. The contracts to which the Company is a lessor relate mainly
to the contract with Piraeus Container Terminal S.A. (Note 3 (t)) as well as contracts related to leased areas
to ship repair zone. The management's judgment was based mainly on the duration of the leases.
Concerning the contract with Piraeus Container Terminal S.A., in previous years Management concluded
that it is an operating lease due to its duration and because the lease does not substantially transfer the
risks and rewards of the right of use.
With regard to the concession agreement with the Greek State, the Company concluded that it falls under
the provisions of IFRS 16 and not to the corresponding provisions of IFRIC 12, as the Company has the
control over the pricing of its services other than coastal shipping and therefore the contract is a contract
lease.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
3. MATERIAL ACCOUNTING POLICIES
The Company applies the following material accounting policies for the preparation of the accompanying
financial statements:
(a) Tangible Assets: Buildings, technical projects and other building installations are valued at acquisition cost
less accumulated depreciation and possible impairment provision. The privately owned land, machinery
and other equipment, acquired before PPA’s conversion into an S.A., 1.6.1999, were valued at deemed
cost, arising by the Evaluation Committee of article 9 C.L. 2190/1920, while those acquired afterwards are
valued at acquisition cost less accumulated depreciation and possible value impairment provision.
Acquisition cost of a building installation or equipment consists of purchase price include import duties,
plus non-refundable purchase taxes as well as any cost required for the asset to become operational.
Repairs and maintenance are posted to the financial period in which they were incurred. Significant
additions and improvements made at a later stage are capitalized in the relevant asset cost.
Fixed assets constructed by the Company are posted to the self-construction cost which includes
subcontractors’ fees, materials and technicians’ payroll costs involved in the construction (including
relevant employer contributions) as well as part of general administration expenses.
Assets under construction include fixed assets under construction and are stated at their cost. Assets under
construction are not depreciated until the fixed assets are complete and operational.
(b) Depreciation: Fixed assets are depreciated on a straight line basis according to the following useful lives per
fixed asset category:
Fixed Asset Categories
Useful Life (years)
Buildings, technical & port projects
25-40
Machinery & other equipment
10-30
Motor Vehicles
5-12
Floating transportation means
20-35
Furniture, fixture & fittings
5-10
The residual value, the useful life and the depreciation method of the Company's assets are examined
annually and they are adjusted if necessary.
(c) Impairment of non-current financial assets: Property, plant & equipment and intangible fixed assets shall
be evaluated for possible impairment loss, when there are indications that the asset’s book value is over its
recoverable amount.
In addition, the Company's Management considers that given the recent approval received from the
competent state bodies with the revised decision of approvemnet of environmental conditions (AEPO)
Dec.YPEN/DIPA/94636/6224/15-9-2023for its expantion projects and its operation, the current
environmental legislation has no negative impact on the Company's activities and does not create
circumstances indicating that the carrying amount of its non-financial assets is no longer recoverable.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
When an asset’s book value is over its recoverable amount, the respective impairment loss is posted to the
period financial results. An asset’s recoverable value is the greater amount between the fair value less cost
of disposal and the value in use.
Value in use is based on the Company's projected cash flows, discounted to present value using a discount
rate that reflects current economic considerations and risks associated with the particular asset or cash-
generating unit.
For the purpose of assessing impairment, assets are grouped at the lowest level for which cash flows can be
identified separately (cash generating units). Impairment losses recognized in prior periods in non-financial
assets are reviewed at each reporting date for any reversal.
(d) Investment property: Investment property that includes land and buildings is held by the Company for
long-term rental yields and not for own use. Investment property is measured at cost less depreciation and
impairment.
The depreciation of buildings is calculated using the straight line method over the buildings’ useful life
which is 30 years. When the carrying amounts of the investment property exceed their recoverable
amounts, the difference (impairment) is charged directly to the statement of comprehensive income. Land
is not depreciated.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by
the end of owner occupation.
(e) Fixed Asset Subsidies: Government grants are recognised when there is reasonable assurance that the
grant will be received, and all attached conditions will be complied with. Subsidies are considered as
deferred revenue and are recognized as income at the same depreciation rate as the relevant subsidized
fixed assets are depreciated. This income is deducted from the depreciation in the period financial results.
(f) Intangible Assets: Intangible assets include software purchase cost and any expenditure for software
development. Software is carried at cost less accumulated amortization. Software depreciation is calculated
on a straight line basis and its useful life of 3-4 years.
(g) Borrowing Cost: Borrowing costs are interest and other costs an entity incurs in relation to the borrowing
of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as
part of the cost of the asset.
Borrowing costs are capitalized if the funds raised are specifically used for the acquisition of fixed assets.
If the funds were generally raised and used for the acquisition of fixed assets, the portion of the borrowing
costs capitalized is determined by applying a capitalization factor to the cost of acquiring the asset. All
other borrowing costs are expensed in the period in which they occur.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
(h) Financial Instruments: Initial recognition and subsequent measurement
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
▪ Financial assets
Initial recognition and measurement
Financial assets of the Company are classified, at initial recognition, as subsequently measured at amortised
cost, fair value through other comprehensive income, and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash
flow characteristics and the Company’s business model for managing them.
Cash and cash equivalents are related to short-term, highly liquid investments (demand deposits, fixed-
term deposits), which are easily convertible into cash and are so close to expiry that they show non
significant risk for changes in the invested capital and of a penalty being imposed, as well as of a change in
their valuation at the time of their liquidation.
With the exception of trade receivables that do not contain a significant financing component or for which
the Company has applied the practical expedient, the Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant financing component or for which the Company
has applied the practical expedient, are measured at the transaction price as determined under IFRS 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through other
comprehensive income, it needs to give rise to cash flows that are solely payments of principal and interest
on the principal amount outstanding. This assessment is referred to as the ‘solely payments of principal and
interest’ test and is performed at an instrument level.
The Company’s business model for managing financial assets refers to how the Company manages its
financial assets in order to generate cash flows. The business model determines whether cash flows will
result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
• Financial assets at amortised cost (debt instruments)
• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments)
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Company. The Company measures financial assets at amortised
cost if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows
And
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and
are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised,
modified or impaired.
The Company’s financial assets at amortised cost include trade and other receivables.
Derecognition of financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets)
is derecognised when:
• The rights to receive cash flows from the asset have expired
Or
• The Company tranfers a financial asset and the tranfer meets the requirements for write-off.
The Company transfers a financial asset if, and only if, it either:
• transfers the contractual rights to receive the cash flows of the financial asset
Or
• retains the contractual rights to receive the cash flows of the financial asset but assumes a
contractual obligation to pay the cash flows to one or more recipients in an arrangement.
When the Company transfers a financial asset, it shall evaluate the extent to which retains the risks and
rewards of ownership of the financial asset.
In this case:
• if the Company transfers substantially all the risks and rewards of ownership of the financial asset, the
entity shall derecognise the financial asset and recognise separately as assets or liabilities any rights and
obligations created or retained in the transfer.
• if the Company retains substantially all the risks and rewards of ownership of the financial asset, the
Company shall continue to recognise the financial asset.
• if the Company neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset, shall determine whether it has retained control of the financial asset. In this case:
(i) if the Company has not retained control, it shall derecognise the financial asset and recognise separately
as assets or liabilities any rights and obligations created or retained in the transfer.
(ii) if the Company has retained control, it shall continue to recognise the financial asset to the extent of its
continuing involvement in the financial asset.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Impairment of financial assets
The Company recognise an allowance for expected credit losses for all debt instruments not held at fair
value through profit or loss. Expected credit losses are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Company expects to receive,
discounted at an approximation of the original effective interest rate.
The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
For trade and other receivables, the Company apply a simplified approach in calculating expected credit
losses. Therefore, the Company does not track changes in credit risk, but instead recognises a loss
allowance based on lifetime expected credit losses at each reporting date. For other financial assets, the
ECL is based on the 12-month ECL. The 12-month ECL is the portion of lifetime ECLs that results from
default events on a financial instrument that are possible within 12 months after the reporting date.
However, when there has been a significant increase in credit risk since origination, the allowance will be
based on the lifetime ECL. The Company considered the risk of default, the days past due and the historical
credit losses experienced adjusted to reflect current and forward-looking information per debtor to
measure the expected credit losses for each individual trade and other receivable balance.
At each reporting date, the Company assess whether the credit risk of a financial asset has increased
significantly from the initial recognition. The Company consider a financial asset in default when
contractual payments past due over the Company’s credit policy. However, in certain cases, the Company
may also consider a financial asset to be in default when internal or external information indicates that the
Company is unlikely to receive the outstanding contractual amounts in full before taking into account any
credit enhancements held by the Company. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
▪ Financial liabilities
Initial recognition and measurement
Financial liabilities of the Company are classified, at initial recognition, as financial liabilities at fair value
through profit or loss.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the effective interest rate method. Gains and losses are recognised in the statement of
comprehensive income when the liabilities are derecognised as well as through the effective interest rate
amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the effective interest rate. The effective interest rate amortisation is
included as finance costs in the statement of comprehensive income.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
This category generally applies to interest-bearing loans and borrowings. Loans and borrowings are
classified as current liabilities unless the Group and the Company has the right to defer settlement for at
least twelve months from the date of financial position date.
Trade and other payables
Trade payables are obligations for goods or services that have been acquired in the ordinary course of
business by suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade account payables subsequent to the initial
recognition are measured at amortized cost using the effective interest method.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.The
difference in the respective carrying amounts is recognised in the statement of comprehensive income.
▪ Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated
statement of financial position if there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to demand the assets and settle the liabilities
simultaneously.
(i) Share Capital: The share capital includes the Company's ordinary shares that are included in equity. Upon
acquisition of treasury shares, the consideration paid, including the related expenses, is shown as a
deduction from equity (share premium). Expenses incurred for the issue of shares are recognized after
deduction of the relevant income tax, net of the issue proceeds. Expenses related to the issue of shares for
the acquisition of business are included in the acquisition cost of the business acquire.
The Company considers as cash (apart from cash on hand) time deposits and liquid investments maturing in
three months from the acquisition date.
(j) Provisions: Provisions are recognized when the Company has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are measured by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. Where discounting is used, the increase of the provision due to the passage of
time is recognized as a borrowing cost. Provisions are reviewed at each reporting date, and if it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, they are reversed. Provisions are used only for expenditures for which they were originally
recognized. No provisions are recognized for future operating losses. Contingent assets and contingent
liabilities are not recognized.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
(k) Income Tax (Current and Deferred): Current and deferred income tax assessment are based on the relevant
amounts of the financial statements, according to tax Laws effective in Greece. Current income tax
concerns tax on the Company taxable profits, adjusted according to Greek tax Law and calculated using the
current tax rate on the reference date.
Deferred tax is assessed using the liability method in all temporary tax differences on the balance- sheet
date between the tax base and the accounting value of assets and liabilities. The expected tax
consequences from the temporary tax differences are assessed and stated either as deferred tax liabilities
or as deferred tax assets. Deferred tax assets are posted to the financial statements for all allowable
temporary differences and tax losses carried forward as far as it is likely to set off these allowable
temporary differences against available taxable profits.
The accounting value of deferred tax assets is revised at each balance- sheet date and it is reduced up to
the point that it is not likely to have enough taxable profits, where part or all of the deferred tax assets may
be set off against. Current income tax receivable and liabilities for current and previous financial years are
valued at the amount expected to be paid to Tax Authorities (or be refunded by them), using the tax rates
(and tax Laws) in force up to the balance- sheet date.
Any differences resulting from tax audits are recorded in accordance with International Accounting
Standard 12 "Income Taxes" in the "Income Tax" line of the Statement of Comprehensive Income, while the
corresponding fines and surcharges are recorded in the "Other Operating Expenses" line of the Statement
of Comprehensive Income in accordance with the provisions of IAS 37.
(l) Revenue Recognition: Revenue is the amount of consideration expected to be received in exchange for
transferring promised services to a customer, excluding amounts collected on behalf of third parties (value-
added tax, other sales taxes, etc.).
The Company recognizes revenue upon the transfer of promising goods or services to customers, in
amounts that reflect the reward to which the Company is expected to be entitled of these goods or services
based on the following five-step approach:
Step 1: To identify the Contract or based on the applicable services described in the Company's tariffs and
regulations
Step 2: To identify the separate performance obligations within a Contract or regulations Step 3: To
determine the transaction price. Step 4: To allocate the transaction price to the performance obligations in
the Contract Step 5: To recognize revenue when or as a performance obligation is satisfied.
The Company derives revenue from Cargo loading and unloading services, mooring services, storage of
cargo services, income from passenger fees, income from vehicle passage , dry docking, and shipbuilding
repair zones services, the provision of electricity and water to the vessels, Environmental services which
include a standard fee charged to each vessel approaching the port and fees related to the waste handling
of the vessels and other supporting services to the vessels.
Revenue is recognized when (or as) a performance obligation is satisfied by transferring the control of a
promised service to the customer. A customer obtains control of a service if it has the ability to direct the
use of and obtain substantially all of the remaining benefits from that service. Control is transferred over
time or at a point in time when the service is provided to the customer.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Management has determined that for loading and unloading services, berthing and mooring services,
services relating to the provision of water and electricity, and for environmental services there is a single
performance obligation which is the loading and unloading of the respective cargo (container, vehicles, bulk
cargo), the berthing and the mooring of the vessel, the provision of water and electricity, the mooring of
the vessel and the waste handling, respectively, and revenue is recognized at a point in time when the
respective service is provided to the customer and the customer obtains the benefit of these services.
For the storage services where the customer is charged with a daily charge for each day that the cargo
remains in the warehouse and for dry-docking and shipbuilding repairs zone services where the customer is
charged with a daily charge for each day that the vessel remains in the zone, the Company has determined
that there is one single performance obligation which is to provide the customer with the required space
and the related services. The Company has concluded that revenue from these services meets the criteria
to be recognized over time because the customer simultaneously receives and consumes the benefits of
the Company’s performance as the Company performs. Therefore, since the Company’s performance
obligation is met evenly, revenue is recognized ratably for the period that the cargo actually remained in
the warehouse and the period that the vessel actually remained in the zone, respectively. Prices for all
services are fixed, based on stand-alone selling prices derived from price lists.
A receivable is recognized when there is an unconditional right to consideration for the performance
obligations to the customer that are satisfied.
A contract asset is recognized when the performance obligation to the customer is satisfied before the
customer pays or before payment is due, usually when services are transferred to the customer before the
Company has a right to invoice.
A contract liability is recognized when there is an obligation to transfer services to a customer for which
the Company has received consideration from the customer (prepayments) or there is an unconditional
right to receive consideration before the Company transfers a service (deferred income). The contract
liability is derecognized when the promise is fulfilled and revenue is recorded in the profit or loss
statement.
(m) Inventories: Materials and spare parts related to the Company mechanical equipment maintenance are
valued at the lower of acquisition cost and net realisable value and their cost is determined on the
weighted average cost basis. Materials are posted to inventories on purchase and recognized as
expenditure on consumption.
(n) Defined benefit plan: The provision for staff termination indemnities recorded in the statement of financial
position for the defined benefit plan is the present value of the liability for the defined benefit in addition
to changes occurring from any other actuarial profit or loss and the past service cost. The discount rate is
considered as the yield, at the balance sheet date, of high quality European corporate bonds which have a
maturity which approaches the time period of the Company’s liability.
The liability for this plan is determined using the projected unit credit method from an independent valuer
and includes the present value of accrued services during the year, the interest on future liabilities, the
prior service cost and the actuarial gains or losses.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The cost of current employment of defined benefit plan, the past service cost and finance cost are
recognized in the Statement of Comprehensive Income.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net
interest and the return on plan assets, are recognized immediately in the statement of financial position
with a corresponding debit or credit to the actuarial differences reserve through other comprehensive
income in the period in which they occur. Remeasurements are not classified to profit or loss in subsequent
periods.
(o) Leases:
i) Company as lessee
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased
asset is available for use by the Company. Each lease payment is divided between the lease liability and the
finance cost. The interest on the lease liability for each period of the lease term is equal to the amount
resulting from the application of a fixed periodic interest rate on the outstanding balance of the lease
liability. The right of use asset is depreciated over the shorter period between the useful life of the asset
and the lease contact duration.
The assets and liabilities arising from the lease are initially valued at present value.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable,
• variable lease payment that are based on an index or a rate, which are initially measured using the ratio
or interest rate at the date of commencement of the lease term
• amounts expected to be payable by the lessee under residual value guarantees,
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that
option.
The lease payments are discounted using the lessee’s incremental borrowing rate, being the rate that the
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar
economic environment with similar terms and conditions.
After the commencement date, the lease liability is measured by increasing the carrying amount to reflect
interest on the lease liability and by reducing the carrying amount to reflect the lease payments made.
The lease liability is remeasured to reflect any reassessment or lease modifications or to reflect revised in-
substance fixed lease payments.
The Company elected to use the on-going recognition exemptions for lease contracts that, at the
commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-
term leases), and lease contracts for which the underlying asset is of low value (low-value assets).
Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line
basis as an expense in profit or loss.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Finally, the Company chose not to separate the non-lease components from lease components, and instead
account for each lease component and any associated non-lease components as a single lease component
for all classes of underlying assets to which the right of use relates.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability,
• any lease payments made at or before the commencement date less any lease incentives received,
• any initial direct costs, and
• an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by the
terms and conditions of the lease, unless those costs are incurred to produce inventories. The lessee incurs
the obligation for those costs either at the commencement date or as a consequence of having used the
underlying asset during a particular period.
The Company presents the rights of use of the assets of the assets, which are not investment properties, in
the account "Right of use assets".
ii) Company as lessor
The leases in which the Company is a lessor relate solely to sub-leases and are classified as finance or
operating. The Company's sub-lease agreements at 31 December 2023 and 2022 relate exclusively to
operating leases.
Revenue from rental income arising, from operating leases, is accounted for on a straight-line basis over
the lease terms.
The Company reflects the future tax impacts of leases and recognises deferred tax. When recognising
deferred tax the Company has assessed the lease asset and lease liability together as a single or ‘integrally
linked’ transaction and assessed the net temporary difference.
iii) Concession Agreement to PPA S.A.: In persuasion of the 35th article of 2932/2001 Law, Greek
Government and the Company signed on 13.2.2002 the Concession Agreement, by which the Greek State
transfers its exclusive right of use and exploitation of port zone lands, buildings and facilities of Piraeus Port
to the Company.
This concession was agreed for fixed period initial duration of 40 years, beginning on the day the
agreement and ending on 13.2.2042. The initial duration is possible to be extended once or several times
by Law. And a new written agreement and modification of the 4.1 article of the Concession Agreement.
With the Common Ministry Decision (CMD) no. 8322/3-12-2008, published in Government Paper 2372/21-
11-2008, the Concession Agreement duration has been modified from 40 to 50 years, beginning on the
13/2/2002 (initial signature date) and ending on the respective date of the year 2052.
Management has examined whether the contract for the concession of the exclusive right to use and
exploit land, buildings and facilities at the Port of Piraeus Land Zone fall under the scope of the provisions
of Interpretation 12. Management concluded that the concession does not fall under the scope of
application of Interpretation 12, as it is a lease contract.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Government has received 1% of the Company’s consolidated annual income for each of the first 3 years of
the concession. The above percentage has increased to 2% of the Company’s consolidated annual income
after the 3rd year, on the same calculation basis. Based on the new Concession Agreement signed on
24.6.2016 the percentage to Greek State has increased to 3.5% of the Company’s consolidated annual
income excluding finance income with fixed minimum fee amounted to € 3.5 million.
As of 1/1/2019, due to the adoption of IFRS 16, in the expenses is recorded only the variable amount of the
concession fee while the fixed minimum fee amounted to € 3.5 million is included to the right-of-use assets
and lease liability (Note 5).
The Company’ s most significant obligations arising from this agreement are:
• Constant rendering of port services
• Responsibility for the installation, improvement and maintenance of the security level in Piraeus
Port
• Ensure fair deal to all port users
• Payment of maintenance expenditure for all the property included in the Concession Agreement.
The Concession Agreement was amended by Law 4838/2021, Government Gazette 180A/ 01.10.2021 and
the main points are the following:
• non-imposition of liquidated damages for the non-time completion of the first mandatory
enhancements under article 16 of the concession agreement par 5 (a) (i)
• extension of the first investment period for five (5) years
• possibility of suspension of the first investment period - establishment of an amicable settlement
mechanism - possibility of replacing of the first investment period
• non-imposition of liquidated damages against PPA in case of suspension
• extension of the second investment period
• introduction of a flexible procedure for the approval of final studies and non-mandatory PPA
investments
• extension of the grace for the partial achievement of minimum levels of services
(p) National Insurance Programs:
The obligation for main or supplementary pension provision is covered by the main National Insurance
Department (EFKA- Social Insurance Institute) which concerns private sector and provides retirement,
medical and pharmaceutical services. Each employee is obliged to contribute part of his salary to the
National Insurance Department, while part of the total contribution is paid by the Company. On employee
retirement the National Insurance Department is responsible for their pension payments. Therefore, the
Company has no legal or presumed obligation for future payments according to this program.
The employees of PPA are entitled upon retirement an allowance from the Unified Fund for Supplementary
Benefits and Lump-sum Benefits (ΕΤΕΑΕP) according to the statutory provisions of the Fund and the Law N.
2084/92.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
For the two welfare sectors, dockworkers and employees of PPA, the granted amount is currently
determined on the basis of the provisions of article 35 of Law N.4387 / 12-05-2016 (FEK 85A), considering
the average of the total remuneration – without accounting holiday bonus - on which were calculated
social insurance contributions for welfare for the five-year period 2009-2013 and with the employee's work
year experience until 31/12/2013.
To this amount is added the total of insurance contributions for welfare from 01/01/2014 and afterwards.
Every employee is required to contribute a part of his monthly salary to the fund, while part of the total
contribution is covered by the Company.
This fund is a legal public company and is responsible for paying the above benefits to employees.
Consequently, the Company has no legal or constructive obligation to pay future benefits under this plan.
(q) Earnings per Share:
Earnings per share are calculated by dividing the financial period net profit, corresponding to ordinary
shareholders, by the weighted average number of ordinary shares issued. The accompanying financial
statements did not include any profit decreasing bonds or other stock, convertible to shares. Consequently,
diluted earnings per share were not calculated.
(r) Dividends:
Dividends are accounted for when receipt rights are finalized by the resolution of the shareholders general
meeting.
(s) Concession Agreement of Piers II and III with COSCO Pacific Ltd (currently COSCO Shipping Port Ltd):
The Law 3755/2009 ratified by the Parliament ruled the concession of use and operation of Piers II and III
between the Company and COSCO Pacific Ltd. The contract term provided for 35 years. The Concession
Agreement entered into force on 1/10/2009 and till 31/5/2010 the operation of Pier II was provided by the
staff of the Company as a subcontractor. Within this period the project in Pier I, which was constructed by
the Company, was completed and started its operation by providing services directly to Company’s clients.
The Agreement B’ Modification of the original Concession Agreement (OG 52 / 30.03.2009) between the
Company and Piraeus Container Terminal (PCT S.A.) following the 'Practical Process Amicable Settlement',
has been published in the Government Gazette 269 / 24.12.2014.
Under the Concession Agreement a payment of guaranteed consideration was foreseen, until 31.12.2021,
which was replaced by the payment of Variable consideration that arises as a percentage on consolidated
revenues of PCT SA from the previous contract year.
In addition, it is envisaged by the Concession Agreement the calculation of fixed consideration I & II is
adjusted regarding the length of exploitation and the corresponding sq.m (Note 24). The concession
consideration is calculated and recognized in income for the period in accordance with the terms of the
contract and considered as lease contract based on IFRS 16 (Notes 2c and 3o).
The payment of Variable Consideration is performed on a monthly basis in arrears and the payment of the
standard exchange every six months in advance (Note 24).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
(t) Benefits that depend on the value of share and are settled in cash:
The Company in accordance with IFRS 2 measures the services it obtains and the liability it undertakes at
the fair value of the liability. Until the settlement of the liability, the entity shall remeasure the fair value of
the liability at the reporting date as well as at the settlement date, and any changes in fair value are
recognized in profit or loss for the period. The obligation is measured, initially and at each reporting date
until the final settlement, at the fair value of the units on the increase in the share price from the grant
date and the respective redemption date, with the application of a valuation model taking into account the
terms and conditions under which the units have been granted. The fair value of the long-term reward plan
was determined using the Binomial model taking into account the share price, the expected volatility of the
share, the dividend yield as well as the free interest rate (Note 29) and the liability is recognized in other
long-term liabilities.
(u) Foreign Currency Conversion:
All the operations of the Company are all performed in Euro. Transactions made in foreign currencies are
converted into Euro using exchange rates effective at transaction date. Receivable and liabilities in foreign
currency are adjusted at the financial statements preparation date in order to state the exchange rates
effective at that date. Gains or losses arising from these adjustments are included in the Statement of
comprehensive income as foreign exchange gains or losses.
Changes in accounting policies and disclosures
The accounting policies adopted in the preparation of the annual financial statements, are consistent with
those followed for the year ended December 31, 2022, except for the adoption of new standards and
interpretations applicable for fiscal periods beginning at January 1, 2023.
New International financial reporting standards, interpretations , and amendments to Standards
effective and endorsed by the EU : From 1st January 2023 the Company has adopted all amendments in
IFRS as these were adopted by the European Union (“EU”) which relate to its operations. These
Amendments and Interpretations did not have a significant impact on the financial statements of the
Company.
The following Standards, amendments and interpretations have been issued from International Accounting
Standards Board (IASB) , have been adopted by the EU and they are effective from annual periods
beginning on or after 1st January 2023.
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting
policies (Amendments):
In February 2021, IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The
objective of these amendments is to improve accounting policy disclosures so that they provide more
useful information to investors and other primary users of the financial statements. More specifically,
companies are required to disclose material accounting policy information rather than their significant
accounting policies.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
According to the updated definition of material accounting policy as published by the IASB in October 2018,
accounting policy information is material if when considered together with other information included in an
entity’s financial statements, it can be reasonably expected to influence decisions that the primary users of
general purposes financial statements make on the basis of those financial statements.
Additionally, IFRS Practice Statement 2 amendments include guidance and additional examples on the
application of materiality to accounting policy disclosures.
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
(Amendments):
In February 2021, IASB issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors to clarify how companies should distinguish changes in accounting policies from changes in
accounting estimates. The amendments introduce a new definition for accounting estimates: clarifying that
they are monetary amounts in the financial statements that are subject to measurement uncertainty.
IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments):
In May 2021, IASB issued amendment to IAS 12 in order to specify how companies should account for
deferred tax related to assets and liabilities arising from a single transaction, such as leases and
decommissioning obligations, transactions for which entities recognize both an asset and a liability, In
specific cases, the entities were exempted from the recognition of deferred tax on initial recognition of
both an asset and a liability. The amendments clarify that the initial recognition exemption does not apply
and entities are required to recognize deferred tax on these transactions.
IAS 12 International Tax reform-Pillar Two (Amendments)
In May 2023, IASB published the amendments to IAS 12 in order to provide a temporary exemption from
accounting for deferred taxes arising from the implementation of the OECD’s Pillar Two model rules, as well
as targeted disclosures for affected entities. The temporary exemption is to be applied immediately upon
the issue of those amendments by IASB and retrospectively in accordance with International Accounting
Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (‘IAS 8’). The disclosure
requirements are to be applied to annual reporting periods beginning on or after 1 January 2023. An entity
is not required to apply the disclosure requirements in interim financial reports for interim periods ending
on or before 31 December 2023.
The Company belongs to a multinational Group of companies and falls under the scope of the Pillar II model
rules of the Organization for Economic Co-operation and Development ("OECD").
In December 2021, the Organisation for Economic Co-operation and Development (OECD) released the
Pillar Two model rules (the Global AntiBase Erosion Proposal, or ‘GloBE’) to reform international corporate
taxation.
Large multinational enterprises within the scope of the rules are required to calculate their GloBE effective
tax rate for each jurisdiction where they operate. Greece is about to implement the legislation , according
to the GloBE regulations and the corresponding EU directive 2022/2523, while the relevant law draft is in
public consultation and is expected to be voted upon after the publication of the 2023 financial statements,
and to enter into force within 2024. Since the relevant legislation was not in force at the reporting date,
there was no effect on the Company's current tax liability.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
In May 2023, the International Accounting Standards Board ("IASB") amended IAS 12 to provide affected
entities with temporary exemptions to avoid different interpretations of the standard and to improve the
disclosures required. The amendments introduced a temporary exemption from the requirements of the
standard regarding the recognition and disclosure of information about deferred tax assets and liabilities
related to income tax arising under the application of Pillar II, as well as additional disclosures. The
Company made use of the above exception in the financial statements for the year ended December 31,
2023.
The potential impact cannot be reliably measured until the publication and approval of the financial
statements, due to the complexity of the new provisions. However, taking into account the latest available
data, the management estimates that the impact will not be significant.
IFRS 17 Initial Application of IFRS 17 and IFRS 9- Comparative Information (Amendments)
The amendment is a transitional choice in relation to the comparative information in the classification of
financial assets in the first application of IFRS 17. The amendment therefore, aims to prevent temporary
accounting imbalances between financial assets and insurance contract liabilities and improve the
usefulness of comparative information for the users of the financial statements.
The implementation of the above amendments had no effect on the Company's financial statements in the
amounts recognized in previous periods and is not expected to significantly affect the current year.
New International financial reporting standards, amendments to Standards and interpretations not yet
effective or not endorsed by the EU
The following New Standards, Amendments and Interpretations have been issued by the International
Accounting Standards Board (IASB) but are not yet effective for annual periods starting 1st January 2023.
Those relating to the Company’s operations are presented below. The Company does not intend to adopt
the following New IFRS, Amendments and Interpretations before the effective date.
IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non Current
(Amendments) The amendments are effective for annual periods on or after 01 January 2024.
In January 2020, IASB issued amendments to IAS 1 clarifying the requirements for the classification of the
liabilities as current and non -current. In particular, the amendments clarify that one of the criteria for the
classification of a liability as non current is the entity’s right to defer settlement for at least 12 months after
the reporting date. The amendments clarify the meaning of a right to defer settlement, the requirement of
this right to exist at the reporting date and that management intend in relation to the option to defer the
settlement does not affect current or non -current classification.
Additionally, in July 2020, IASB issued an amendment providing clarifications for the classification of debt
with covenants and deferring the effective date of the January 2020 amendments of IAS 1 by one year.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
IFRS 16 Leases: Lease Liability in a Sale and Leaseback (Amendments). The amendments are effective for
annual periods on or after 01 January 2024.
The amendments are intended to clarify the requirements of accounting by a seller-lessee regarding
measuring the lease liability arising in a sale and leaseback transactions. An entity applies the amendment
retrospectively in cases of sale and leaseback transactions entered into after the date of the initial
application of IFRS 16.
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures (Amendments). The
amendments are effective for annual periods on or after 01 January 2024. In May 2023, IASB issued the
final amendments to IAS 7 and IFRS 7 which address the disclosure requirements to be provided by
entities in relation to their supplier finance arrangements. The amendments have not yet been endorsed by
the EU.
IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (Amendments). The
amendments are effective for annual periods on or after 01 January 2025.
In August 2023, IASB published amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates”
which require companies to provide more useful information in their financial statements when a currency
is not exchangeable to another currency. The amendments introduce a definition of the “exchangeability”
of a currency and provide guidance on how an entity should estimate a spot exchange rate in cases where a
currency is not exchangeable. Also, additional disclosures are required in cases where an entity has
estimated a spot exchange rate due to a lack of exchangeability. The amendments have not yet been
endorsed by the EU.
The Company's management is in the process of assessing the impact of the standards or amendments of
the standards on its financial position or performance, which is not expected to be significant for its
financial statements.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
4. PROPERTY, PLANT & EQUIPMENT
Property, plant and equipment are analysed as follows:
The Company’s property, plant and equipment are insured with various insurance companies. Insurance
covers compulsory insurance of transport vehicles and machinery up to 30.11.2024 as well as general civil
liability up to 31.10.2024 and employer liability up to 30.09.2024, property insurance up to 15.11.2024 and
floating tanks insurance up to 15.11.2024 .
During the year ended December 31, 2023 the total investment in property, plant and equipment amounted
to € 27,890,460.15 (01.01.2022-31.12.2022 € 27,296,063.91) and related mainly to the purchase of machinery
and other equipment as well as port infrastructure. Fixed assets under construction amounting to €
79,511,392.25 mainly include projects in progress as part of the Company's mandatory investments.
During the current year, the Company capitalized the general borrowing cost which was related to loan
interest and loan guarantee costs, amounted to € 1,411,402.01 and € 246,410.56 respectively, which are
mainly included in the fund " Asset under construction " at the end of the year (note 3(g) & 27).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
These amounts were calculated based on an average capitalization rate which corresponds to the weighted-
average interest cost, which was 5.10% in 2023.
During the current year, the Company made payments of € 27,314,376.10 (01.01.2022-31.12.2022 : €
32,695,099.21) to suppliers related to investments in tangible and intangible fixed assets.
Property, plant and equipment are tested for impairment when there are indicators that the carrying amounts
may not be recoverable. During 2023, an impairment test for Container Terminal Segment was conducted, the
recoverable amount of which was determined by the Value in Use which was calculated on the basis of
adjusted discounted cash flows and revised business plans of the segment . The calculation showed that the
Value in Use/Recoverable Value where the present value exceeds the book value of the tangible fixed assets of
the Container Terminal and therefore as at 31 December 2023, no relevant impairment was recorded (note
2.c.1(ix)& 23).
There is no property, plant and equipment that has been pledged as security.
5. RIGHT OF USE ASSETS – LEASE LIABILITIES
The recognised right-of-use assets and lease liabilities as at December 31, 2023 and December 31, 2022 are as
follows:
Regarding the recognized right of use assets from the concession of the Greek State, see accounting principle
(3o(iii)).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The amounts recognized in the statement of comprehensive income and the movement of the right of use of
assets and the lease liability from 1 January 2023 to 31 December 2023 as well as the corresponding period
last year are as follows:
Lease expense less than 12 months for 2023 amounted to € 227,220.42 (31.12.2022: € 166,734.25) and is
included in Expenses and specifically in the lines “Payroll and employee related costs” and “Third-party
services” (Note 25).
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
6. INVESTMENT PROPERTY
The movement of investment property for ended December 31, 2023 and their balance as at 31.12.2023 was
as follows:
The movement of investment property for ended December 31, 2022 and their balance as at 31.12.2022 was
as follows:
Investment property includes seven land plots and four buildings (commercial spaces and schools) located in
Athens and Piraeus.
There is no investment property that has been pledged as security.
The fair value of investment property as at December 31, 2023 amounted to € 5.8 million (December 31, 2022:
€ 5.6 million) according to the valuation of an independent appraiser., as a fair value of Level 3 (Note 33). The
fair value measurement is based on comparative assessment method, residual replacement cost method, the
residual value method and on the income capitalization method depending on the special characteristics of
each property.
The investment properties are leased with operating leases and the income from rent for the above
investment property for the year ended December 31, 2023 and December 31, 2022 amounted to € 20,428.07
and € 19,233.93 respectively and is included in other operating income (Note 26). For the years ended
December 31, 2023 and 2022 there were no repair and maintenance costs for investment property.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
7. INTANGIBLE ASSETS
The movement of intangible assets for ended December 31, 2023 and their balance as at 31.12.2023 was as
follows:
The movement of intangible assets for ended December 31, 2022 and their balance as at 31.12.2022 was as
follows:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
8. OTHER NON-CURRENT ASSETS
This account consists of the following:
The item "Advances to suppliers" refers to the unamortized balance of advance payments that have been
given to suppliers for the construction of investment projects of significant value, which advance payments
are reduced by the amount of the 5% withholding on the issued invoices related to the execution of their
work, in accordance with the signed contracts . The item is analyzed as follows:
• Project " Expansion of the cruise Passenger Port"
During 2020, an advance payment of € 5,147,718.36 was given to a supplier for the commencement of work
for the project. On 31 December 2020, the amount of withholding amounted to € 394,632.51 and the
respective receivable amounted to € 4,753,085.85. As of December 31, 2021, the amount of withheld on the
issued invoices, amounted to € 840,996.55 and the balance of the receivable amounted to € 3,912,089.30. In
the previous year an amount of € 134,593.03 was withheld on the value of the invoices issued and the
balance of the receivable amounted to € 3,777,496.27.
In addition, during the previous fiscal year, an additional advance of € 4,771,785.90 was given for the
implementation of additional future works, which is not subject to withholding. Therefore, the total balance
of the receivable amounted to € 8,549,282.16.
• Project " Improvement of Infrastructure of the Ship Repair Zone"
During 2021, an advance payment of € 941,444.13 was given to a supplier for the commencement of work
for the project. On 31 December 2021 the amount of withholding amounted to € 18,212.91 and the
respective receivable amounted to € 923,231.22. In the previous year an amount of € 30,149.32 was
withheld on the value of the invoices issued and the balance of the receivable amounted to € 893,081.90.
During the current year an amount of € 225,121.52 was withheld on the value of the invoices issued and the
balance of the receivable amounted to € 667,960.38.
• Project “Expansion of the Car Terminal (Hrakleous Port) "
During 2021, an advance payment of € 990,524.42 was given to a supplier for the commencement of work
for the project. On 31 December 2021 the amount of withholding amounted to € 29,148.17 and the
respective receivable amounted to €961,376.25. In the previous year an amount of € 444,443.87 was
withheld on the value of the invoices issued and the balance of the receivable amounted to € 516,932.38.
During the current year an amount of € 516,932.38 was withheld on the value of the invoices issued and the
balance of the receivable amounted to 0.00.
The work on the specific project was completed at the end of fiscal year 2023 and the project was delivered
ready for use to the Company on January 16, 2024 (Note 35).
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
• Project “Underground road connection of Car Terminal with ex-ODDY "
In addition, during the previous year an advance payment of € 320,815.00 was given to a supplier for the
commencement of work for the project. On 31 December 2022 the amount of withholding amounted to €
71,277.66 while the respective receivable amounted to € 249,537.34. During the current year an amount of
€ 82,153.69 was withheld on the value of the invoices issued and the balance of the receivable amounted
to € 167,383.65.
• Project “Dredging of port”
During the previous year, an advance payment of € 306,416.23 was given to a supplier for the commencement
of work for the project.
9. INCOME TAX (CURRENT AND DEFERRED)
With Law 4799/2021 the income tax rate amounded to 22% for the financial income of the fiscal year 2021 and
afterward.
The amount of income taxes which are reflected in the statements of comprehensive income are as follows:
The payments made for the income tax liability for the current year amounted to € 19,139,460.29 and
concerns to the last two installments of the income tax declaration of the year 2021 amounted to €
3,313,144.88, six installments of the income tax declaration of the year 2022 amounted to € 9,481,102.47, as
well as the additional tax in the amount of € 6,345,212.94 resulting from the delivery to the Company of the
final act of corrective determination/imposition of an income tax fine for the tax year 2016 (No.
239/29.12.2022).
The reconciliation of income taxes reflected in statements of income and the amount of income taxes
determined by the application of the Greek statutory tax rate to pretax income is summarized as follows:
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Greek tax laws and regulations are subject to interpretations by the tax authorities. Tax returns are filed
annually but the profits or losses declared for tax purposes remain provisional until such time, as the tax
authorities examine the returns and the records of the taxpayer and a final assessment is issued. Tax losses, to
the extent accepted by the tax authorities, can be used to offset profits of the five fiscal years following the
fiscal year to which they relate.
Tax Compliance certificate:
From the financial year 2011 and onwards, all Greek Societe Anonyme and Limited Liability Companies that are
required to prepare audited statutory financial statements must in addition obtain an “Annual Tax Certificate”
as provided by Article 65Α of L.4174/2013. This “Annual Tax Certificate” must be issued by the same statutory
auditor or audit firm that issues the audit opinion on the statutory financial statements. For tax years
commencing from 1/1/2016 onwards, the tax compliance report becomes optional according to the provisions
of Law 4410/2016. Upon completion of the tax audit, the statutory auditor or audit firm must issue to the
entity a "Tax Compliance Report" which will subsequently be submitted electronically to the Ministry of
Finance, by the statutory auditor or audit firm.
For the Company, the tax audit for the financial years 2011 to 2022 was performed by the statutory auditors,
and the relative “Tax compliance reports” have been issued and submitted with no substantial adjustments
with respect to the tax expense in the respective annual financial statements.
The tax audit for the current financial year is in progress by the Company’s statutory auditors. The tax
certificate will be granted after the publication of the Financial Statements, the Company's Management
estimates that no significant differences will arise from this audit.
Open tax years:
With No.444 and 445 of October 6, 2021 order from the General Directorate of Tax Administration (Audit
Authority Center for Large Enterprises) was notified to the Company a tax audit for the period 1/1/2020-
31/7/2021 and 1/1/2016 -31/12/2019, respectively. On December 29, 2022, the final deed of corrective
determination/imposition of income tax fine for the tax year 2016 was communicated to the Company,
resulting in additional income tax and fines amounting to € 6,345,212.94 and € 3,172,606.47 respectively.
Furthermore, additional increments of € 3,057,123.59 were imposed. The Company, disputing the above final
deed of corrective determination/imposition of an income tax fine, proceeded to appeal against the entire
definitive act of the General Directorate of Tax Administration which was implicitly rejected. The Company
following the presumed implicit rejection, filed an appeal against this decision at the Piraeus Administrative
Court of Appeal on 26.6.2023 and the date of the trial is expected to be set.
On December 19, 2023, the final deed of corrective determination/imposition of income tax fine for the tax
year 2017,2018 and 2019 was given to the Company (No154, 155 &156 29.12.2023), resulting in additional
total income tax and fines amounting to € 5,213,169.54 and € 3,411,851.56 respectively. In addition, relevant
surcharges amounting to € 2,424,132.62 were determined (Note 26).The Company, disputing the above final
deed of corrective determination/imposition of income tax fine, proceeded to appeal against to the General
Directorate of Tax Administration for all of the deeds. In January 2024, the additional income tax and
penalties, as well as the corresponding surcharges, were paid (Note 35).
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The partial tax audit, based on the above audit order for the period 1/1/2020 – 31/7/2021, concerns the types
of taxation: VAT, Other Taxes, Fees Contributions, Audit of Correct Bookkeeping and Issuance of Data, were
submitted to the Company on February 28, 2024 by the General Directorate of Tax Administration (Large
Business Control Center) the Report of a Partial On-Site Audit of Proper Bookkeeping & Records with Report ID
4842349, the Report of a Partial On-Site Audit of Real Estate Tax with Report ID 4842009, the Report of a
Partial On-Site Audit of Fee Determination Stamps with Report ID 4842008, the Value Added Tax (VAT) Partial
On-Site Audit Report with Report ID 3752815, and the Partial On-Site Audit Report on Withholding Tax
Determination, where no difference was found. (Note 35).
Additionally, for the remaining unaudited fiscal years of the Company that ended on December 31, 2020 up to
and including December 31, 2023 for the purpose of income tax, as well as the unaudited period 1/8/2021 –
31/12/2023 for the remaining items of taxation, the Company's Management also estimates that no significant
fines and surcharges will arise.
Deffered tax asset:
The movement of the deferred tax asset is as follows:
The movement of deferred tax assets/liabilities as at December 31, 2023 and 2022 is as follows:
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
10. INVENTORIES
Inventories are analysed as follows:
Inventory consumption cost for the year ended December 31, 2023 and 2022 amounted to € 2,238,058.35
and € 2,378,374.54 respectively (Note 25).
Inventories are valued at the lower value between their cost and net realizable value.
11. TRADE AND OTHER RECEIVABLES
This account is analysed as follows:
Personnel loans: The Company provides interest-free loans to its personnel. The loan amount per employee
does not exceed approximately € 3,000.00 and loan repayments are made by withholding monthly instalments
from the employee salaries.
Other receivable: Other receivable include the compulsory seizure of Piraeus municipality amounted to €
238,838.62 (2022: € 238,838.62), as well as receivable from third parties and municipality of Drapetsona
amounted to € 1,893,217.81 (2022: € 2,045,070.09). For the claim of the Municipality of Drapetsona, a
provision amounted to € € 1,740,149.52 has been recorded.
Grant receivable: The grant receivable for the current and previous year concerns the outstanding balance
from the Attica Regional Fund of the approved grant for the project "Expansion of the Passenger Port for
cruise ship ”(Note 16).
Interest receivable: The claim mainly concerns interest receivable by time deposits of the Company.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The movement of the allowance for doubtful trade receivables is analysed as follows:
31.12.2023 31.12.2022
Beginning balance 41.222.818,71 40.830.048,47
Provision for the year 1.253.619,99 392.770,24
Provision used (142.400,83) -
Ending balance
43.167.246,87 41.222.818,71
Trade receivables are normally settled on 10 days’ terms. A single customer (Piraeus Container Terminal S.A.)
represents 40,6% of the Company’s total revenue (31.12.2022: 45,7%). The outstanding amount of this
customer as at December 31, 2023 amounted to € 4.0 million (2022: € 4.9 million ) (Note 32).
For trade receivables and other receivables, the Company has calculated estimated credit losses (ECLs) based
on lifetime expected credit losses. Taking into consideration that trade receivables are normally settled within
10 days from the issuance of the invoice, the risk of default and the expected loss rate of 0.7%
(31.12.2022:0.5%) have been determined by management for all balances that are outstanding for less than 10
days (no overdue balances). Regarding the outstanding balances above 10 days, the Company has considered
the risk of default, the days past due and the historical credit losses experienced adjusted to reflect current
and forward-looking information per debtor to measure the expected credit losses for each individual trade
receivable balance.
The Company is actively monitoring the recoverability of trade receivables and ensures that the loss allowance
recorded reflects, on a timely basis management’s best estimate of potential losses in compliance with IFRS 9.
The ageing analysis of trade receivables (both groos and net of ECLs) for the year ended 31 December 2023
and 2022 is as follows:
The ageing analysis of receivables past due more than 365 days applies to claims for which and for their most
part, the Company has filed appeals or taken actions for their collectability. Management and Legal
Department estimate that the final court decisions and the other actions will be in favour of the Company .
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The movement of the allowance for doubtful other receivables and advances to suppliers is analysed as
follows:
The net impairment losses on financial assets are analysed as follows:
12. PREPAID EXPENSES
Prepaid expenses of current year mainly includes an advance payment of the commission for the guarantee of
the existing loans amounting to € 692,894.54 (31.12.2022: € 792,567.00) as well as an advance payment to the
insurance company about the property and civil liability amounting to € 149,375.22 (31.12.2022: €
623,565.24).
13. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are analyzed as follows:
The Company taking advantage of its strong liquidity and the favorable interest rate conditions that have been
created, proceeded to sign agreement of time deposits with both domestic and foreign credit institutions, with
a total value of € 100.0 million with particularly favorable terms for it within the reference period. The
maturity of all these term deposits amounts to periods of 10 days to 12 months with fixed annual rates
interest yield fluctuating from 2.60% to 3.85%. The Company reserves the right to proceed with their
immediate liquidation, according to its needs without affecting the initial capital.
Cash at banks earns interest at floating rates based on monthly bank deposit rates. Interest earned on cash at
banks and time deposits is accounted for on an accrual basis and for the year ended December 31, 2023,
amounted to € 1,974,988.21 (31.12.2022: € 4,228.30).These amounts are included in the financial income
(Note 27).
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
14. SHARE CAPITAL
Share capital amounts to € 50,000,000.00 is fully paid up and consists of 25,000,000 ordinary shares, of
nominal value € 2.00 each. There are neither shares which do not represent Company’s capital nor bond
acquisition rights.
15. RESERVES
Reserves are analysed as follows:
Statutory reserve: Under the provisions of Greek corporate Law, companies are obliged to transfer at least 5%
of their annual net profit, as defined, to a statutory reserve, until the reserve equals the 1/3 of the issued
share capital. In the previous year the Company covers the amount required by the law. The reserve is not
available for distribution throughout the Company activity.
Special tax free reserve Law 2881/2001: This reserve which is exempt from taxation, was created during the
conversion of the Company to a Societé Anonyme. The total Company’s net shareholder funds (Equity) was
valued, by the article 9 Committee of the Codified Law 2190/1920, at € 111,282,225.52, € 50,000,000.00 out of
which was decided by Law 2881/2001 to form the Company share capital and the remaining € 61,282,225.52
to form this special reserve. The above Special Tax-Free Reserve is taxed under the conditions and to the
extent provided for in the general provisions, i.e. in the event of its distribution or capitalization.
Untaxed or specially taxed income reserve: This is interest income which was either not taxed or taxed by
withholding 15% tax at source. In case these reserves are distributed, they are subject to tax on the general
income tax provision basis. Based on Article 72 par.11 of Law 4172/2013 those reserves are subject (from 1
January 2014) to an independent taxation at a rate of 19%. On December 30
th
, 2014, the Company proceeded
to the taxation of those reserves which amounted to € 1,428,029.58. After the tax deduction created the taxed
reserves of Article 72 N.4172 / 2013 and the taxed reserve with the general provisions amounting to €
6,087,915.56 and € 188,760.09 respectively.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
16. GOVERNMENT GRANTS
The movement of the account is analyzed as follows:
Grants received up to December 31, 2011 relate to the requirements of the Olympic Games of 2004 (€
11,400,000.00) and on the construction of infrastructure for the OSE S.A. port station (€ 3,700,000.00).
Also, a grant of € 3,653,518.80 has been received in 2012 and is divided in a) € 2,536,168.80, which relates to
the widening of the quay Port Alon and b) € 1,117,350.00 for the construction of new dock at the area of Agios
Nikolaos in the central port of Piraeus, under the operational program “Improvement of accessibility-energy”
of the Attica region. Finally, a grant amounted to € 9,901,740.45 has been received in December 2013 and
relates to the operational program “Support Accessibility” of the Ministry of Infrastructure, Transport and
Network and in particular, in two projects which have been completed. According to a decision of Attica
Region issued during 2017, it was decided to return the amount of € 13,735.39 for the correction of the
subsidy for the project "Widening of the quay Port Alon".
Moreover, according to a decision of Attica Region issued during 2018, it was decided to return the amount of
€ 546,750.77 for the correction of the subsidy for the project “Construction of new dock of Ag. Nikolaos”.
During the previous year, the Attica Regional Fund approved a grant of € 10,147,804.96 for the project
"Expansion of the Passenger Port for the service of the cruise" and the amount of € 6,766,044.97 was
collected. The above amount concerned two payment orders for the project of the expansion of the
Themistocleous pier and the construction of a new Pier on the south side of the central port, with a total
approved amount of € 97,720,853.49 from the ATPIC WPP (NSRF 2013 - 2020) according to the decision
Α.D.403 / 11-2-2020.
During the previous year, a grant of € 13,669,772.17 was approved by the Attica Regional Fund for the project
"Expansion of the Passenger Port for the service of the cruise" and the amount of € 11,717,036.41 was
collected, which is under execution.
As at December 31, 2023 the amount of approved grant of € 4,239,203.86 (Note 11) is pending (31.12.2022: €
€ 4,239,203.86). During the current year no amount of grant was received while im the previous year the
amount of 1,095,291.89 was collected.
Grants are considered as future revenue and are recognized in revenue at the same rate at which the
subsidized assets are depreciated (note 28) . Grants related to assets under execution are not amortized until
the fixed asset is completed and available for its intended productive operation.
There are no other obligations regarding the received grants.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
17. RESERVE FOR STAFF LEAVING INDEMNITIES
The relevant provision movement for the financial year ended on December 31, 2023 and the financial year
ended on December 31, 2022 is as follows:
According to the Collective Agreement Port Workers (dated 1/7/2022) an employee who fulfills retirement
conditions, leaving the Company, is entitled to a retirement allowance of € 34,000.00 (before 1/7/2022: €
30,000.00).
According to the new Collective Agreement, employees of PPA SA (effective from 1/8/2023), employee who
fulfills retirement conditions, leaving the Company, is entitled to a retirement allowance as below:
1/8/2023 – 31/7/2024 : 36.000,00
1/8/2024 – 31/7/2025 : 38.000,00
1/8/2025 – 31/7/2026 : 40.000,00
Before 1/8/2023, based on the previous S.S.E, the compensation of the employees amounted to € 34,000.00.
According to the Collective Agreement of Supervisors / Planners of PPA SA (effective from 1/4/2022) an
employee who fulfills retirement conditions, leaving the Company is entitled to receive a retirement allowance
of € 34,000.
The principal actuarial assumptions used are as follows:
The assumption of a wage increase concerns all employees, but it only affects the benefit provided for
employees who are not included in the Collective Labor Agreements, as the benefit provided by the Collective
Labor Agreements for the rest of the employees is independent of the pensionable salary at the time of the
retirement.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
A quantitative sensitivity analysis for significant assumption as at December 31, 2023 and December 31, 2022
is as shown below:
The expected cash flows in the future years are analyzed as follows:
The average duration of the defined benefit plan obligation at the end of the year is 4,1 years (2022:4,6
years).
18. PROVISIONS
The Company has made provisions for various pending legal cases as at December 31, 2023 in total amounting
to € 14,762,336.47 (2022: € 19,061,195.53).
The movement of the provision for legal claims by third parties is as follows:
The current’s year provision relates to legal cases of employees, Hellenic Republic and other third parties
amounting to € 801,722.74, € 331,124.81 and € 210,824.61 respectively (31.12.2022: € 164,780.97, € 6,000.00
and € 17,309.00).
The current and prior year reversal of the provision relates to legal cases which have been reassessed by the
Company’s legal department based on current developments or finalized in favor of the Company.
The provision used relates to legal cases which have been finalized against the Company and a provision has
been made in prior years. Ιn particular, the reversal of provision within the current period mainly concerns a
case with the Greek State, which was finalized in favor of the Company following a decision of the Council of
State. The provision used of current and previous year relating mainly to claims from personnel and other third
parties, which have been finalised against the Company and a related provision has been made in prior years.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
19. LONG-TERM & SHORT TERM BORROWINGS
a) Long-term borrowings:
The long term portion of borrowings as at December 31, 2023 and December 31, 2022 respectively is as
follows:
The table below shows the changes in liabilities resulting from financing activities:
Balance included in the following loans between the Company and the European Investment Bank:
1. Loan of € 35,000,000.00 for the construction of Container Terminal Pier I, issued on 30/7/2008.
The repayment of the loan will be in thirty (30) semi-annual installments, payable from December 15, 2013 up
to and including June 15, 2028. As amended in October 2, 2017 the loan has an annual interest rate, which is
the sum of the variable interest rate which shall not exceed 13 (thirteen) basis points (0.13%) above EURIBOR
for the respective reference period and a margin of 0.25% and interest shall be paid quarterly.
From this contract there are obligations and restrictions for the Company, the most important of which are
summarized as follows: (i) to submit the annual financial statements within 1 month of publication along with
a Certificate of Compliance audited by a recognized firm of certified auditors, and (ii) to hold throughout the
duration of the loan and until fully repaid, the following financial ratios, calculated on annual financial
statements, audited by certified auditors, for each financial year:
1. EBITDA [Profit / (loss) before interest, taxes, depreciation and amortization] / Interest ≥ 3.00
2. Total gross bank debt / EBITDA [Profit / (loss) before interest, tax, depreciation, amortization]
≤ 9.80
3. Total shareholders' equity ≥ 140 million
As at 31 December 2023 the Company was in compliance with the above financial ratios.
The balance of the loan as at 31 December 2023 amounted to € 10,499,999.93 (31.12.2022: € 12,833,333.27).
2. Loan of € 55,000,000.00 for the construction of Container Terminal Pier I issued on the 10/02/2010.
The repayment of the loan will be in thirty (30) semi-annual installments, payable from 15 June 2015 up to and
including 15 December 2029. As amended in October 2, 2017 the loan bears an annual interest rate, that is the
sum of a floating EURIBOR interest rate and a margin of 0.25% which is payable quarterly.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The balance of the loan as at 31 December 2023 amounted to € 22,000,000.06 (31.12.2022: € 25,666,666.72).
From this contract there are obligations and restrictions for the company, the most important of which are
summarized as follows: (i) to submit the annual financial statements within 1 month of publication along with
a Certificate of Compliance audited by a recognized firm of certified auditors, and (ii) to hold throughout the
duration of the loan and until fully repaid, the following financial ratios, calculated on annual financial
statements, audited by certified auditors, for each financial year:
1. EBITDA [Earnings before interest, taxes, depreciation and amortization] / Interest ≥ 3.00
2. Total gross bank debt / EBITDA [Earnings before interest, taxes, depreciation, amortization]
≤ 9.80
3. Current assets / current liabilities ≥ 1.2
4. Total shareholders' equity ≥ 140 million.
As at 31 December 2023 the Company was in compliance with the above financial ratios.
On September 26, 2017 a Guarantee Issuance Facility Agreement was signed between the Company and the
‘’Export Import Bank of China’’, in respect of the issuance of guarantees of an initial amount of €
75,074,999.99 to support the loans from the European Investment Bank outstanding debt. The amount of
guarantee is variable and is based on an amortization table linked to the total outstanding balance of both
loans agreements. The guarantee bears an issuance fee of zero point six per cent (0.6%) of the relevant
maximum guarantee amount. This fee paid for the year ended December 31, 2023 amounted to € 457,619.66
(31.12.2022 € 457,619.66), which is reduced by € 211,209.07 due to a corrective fee amount for the year
2023 while its difference amounted to € 246,410.59 is included in general cost of borrowing that was
capitalized during the current year (Note 4 & 27).
For the year ended December 31, 2023 and 2022, total interest expense on long-term borrowings, amounted
to € 0.00 (Note 4) and € 281,734.83 respectively and is also included in financial expenses (Note 27).
On November 8, 2019 a loan agreement of € 100,000,000.00 was signed between PPA S.A. and the European
Investment Bank. The purpose of the loan is to finance the projects relating to the expansion and upgrading of
many areas of Piraeus Port, such as the extension of the car terminal, improving the infrastructure of the ship
repair zone, the development of a new Iogistics Port Center, the construction of a new cruise service facility,
the acquisition of new container terminal equipment and the renovation-upgrading of other port and
electromechanical installations.
During the current year, the amount of € 246,666.67 was paid to the European Investment Bank by the
Company as a commitment fee for this loan, which is included in non-current assets and specifically in
deferred finance fees. Guarantor of P.P.A. regarding the loan is the Export-Import Bank of China (based on
contract 14/11/2019) and a letter of guarantee € 105 million will be issued upon the draw down of the loan.
As at December 31, 2023 and 2022 the Company has not drawn down any amount, however Management’s
intention is to withdraw the loan in the near future.
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(amounts in Euro unless stated otherwise)
b) Short-term borrowings:
The Company has a credit line available for € 50,000,000.00 with National Bank of Greece valid until December
31, 2024. The credit line bears annual variable interest rates of Euribor, plus margin 2.00%. The Company has
not utilised any amount under the overdraft agreement.
20. DIVIDENDS
Dividends related to fiscal year 2022, paid in 2023: The Annual General Meeting of the Company, which took
place on August 2, 2023, approved the proposal of the Board of Directors proposed for the distribution of
dividend for the fiscal year 2022 amounted to € 26,000,000.00 or € 1.040 per share. The dividend is subject to
withholding tax at the corresponding rate provided by income tax. The dividend for the fiscal year 2022 was
paid on August 11, 2023.
Dividends proposed for the fiscal year 2023: On March 29, 2024 the Board of Directors proposed for the fiscal
year 2023 a dividend distribution amounting to € 33,400,000.00 or € 1.336 per share. The final authorization is
subject to the approval by the Annual General Assembly.
21. ACCRUED AND OTHER CURRENT LIABILITIES
This account is analyzed as follows:
Taxes Payable: Current period’s amount consists of: a) Value Added Tax € 969,507.88 (31.12.2022: €
3,480,771.20 b) Employee withheld income tax € 1,805,261.85 (31.12.2022 € 1,366,739.03) and c) other third
party taxes € 525,845.15 (31.12.2022: € 266,373.28).
Concession Agreement Liability: The liability relates to the variable amount of annual fee with an equal debit
in the expense account “Concession agreement fee” (Note 25) and excludes the fixed minimum annual fee for
the current period of € 3,500,000.00. Regardless of the application of IFRS 16, the Company's contractual
obligation to pay to the Greek State as at 31 December 2023 amounted to € 7,888,141.62 (31. 12.2022: €
7,002,213.43) and was calculated as a percentage of 3.5% on the total revenue of the current year excluding
financial income.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Payment in advance: The Company receives payments in advance for services rendered on an ordinary basis,
which are then settled on a regular basis. Customer payments in advance amounted to € 6,808,506.59
(31.12.2022: € 6,024,742.77).
Accrued expenses: The accrued expenses of the current and previous year mainly include the fines and
surcharges of the tax audit of the year 2017-2019 and 2016 amounting to € 5,711,589.39 and € 6,229,730.06
respectively.
22. DEFERRED INCOME
a) On April 27, 2009 “PCT S.A.” paid € 50,000,000.00 as a one-off consideration for the use of port facilities of
Piers II and III of SEMPO of PPA (N.3755/2009). From the aforementioned amount, € 2,930,211.41 was offset
with the cost of supplies and parts provided by PCT S.A., while the remaining amount of € 47,069,788.59 is
amortized over the concession period.
The initial concession period was thirty (30) years, which was increased to thirty five (35) years, after the
completion the construction of the port infrastructure on the east side of Pier III.
Following the transfer of the cumulative amount € 19,164,128.32 on revenue of the years 2009 until 2023 the
new balance at December 31, 2023 amounted to € 27,905,660.32 (December 31, 2022: € 29,250,511.43).
b) The Company receives Fixed Annual Consideration from PCT S.A based on the length and surface of the land
under concession. Fixed Annual Considerations is invoiced in advance April and October of each fiscal year. As
a result the company has recognized as deferred revenue of € 3,426,315.90 (which invoiced in advance in 2023
and relates to the period 1.1.2024-31.3.2024) and € 3,290,861.90 (which invoiced in advance in 2022 and
relates to the period 1.1.2023-31.3.2023) as at December 31, 2023 and December 31, 2022 respectively.
c) Additionally as at December 31, 2023, deferred income includes an amount of € 225,769.97 (31.12.2022: €
129,395.68) which relates to the deferred income from rentals.
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(amounts in Euro unless stated otherwise)
The deffered income is anaqlyzed as follows:
23. SEGMENT INFORMATION
The Company operates in Greece, regardless of the fact that its clientele includes international companies.
Additionally, the Company has no other commercial or industrial activities other than the provision of services
solely in the Port area and does not have income or assets from foreign customers (based on the geographical
area in which they operate).
The port of Piraeus is a port complex activity, putting work in many areas of port activity, such as containers
Car-terminal, shipping, cruise, ship repairing, environmental and logistics services.
It is the main port of coastal connecting mainland Greece and the islands, the main cruise port service in the
country, the main port container, the main car – terminal port of the country.
PPA S.A. provides all the requested port services: water, solid and liquid slot tankers, jack residual oil,
electricity, fiber optics and internet, victuals, repairs, environmental services and is fully connected to all
activities with modern computer systems.
The Company's Management considers that there is no market risk for the activities in question, due to the
fact that these services are related to financial assets that do not have a risk of fluctuation due to changes in
their prices, as they are not traded on the market within the meaning of IFRS 7.
The Company does not own any derivative financial instrument related to the mentioned activities, whose
value or future cash flows may fluctuate due to changes in market prices. The prices of the services are specific
and determined by the respective price lists.
The Management of PPA S.A. monitors at the level of results of the above activities and takes business
decisions based on the implemented internal management information system.
Based on the above and in accordance with the provisions of IFRS 8, the Company has determined to disclose
the following segments:
• Container Terminal
• Car Terminal
• Coasting
• Cruise
• Ship repairing
• Other segments (water supply, space management, merchandise management)
The other segments include activities representing less than 10 % of total revenue and profit in all segments
and therefore are not disclosed as separate operating segments.
The Company level includes revenues and expenses that are not allocated by operating segment because
management monitors them at entity level.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
The Company's Management regularly monitors the performance of each operating segment and makes
business decisions based on the results. In line with this practice, it has assessed the loss-making operation of
the Container Terminal as a possible indication of impairment of the carrying value of its related fixed assets
by making an impairment assessment of the recoverable amount of such assets (Note 4 & 2.c.1.(ix)).
Management does not make business decisions and does not monitor periodically the assets and liabilities of
the business sectors and for this reason does not make the relevant disclosures as required by the provisions
of IFRS 8.
The segment information for the years ended December 31, 2023 and 2022 is analysed as follows:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
24. REVENUES
Revenues are analyzed as follows:
The Company showed an increase in revenue of its all activities, however the current year increase in
revenue is mainly due to the significant increase in revenues from the main activity of the cruise services by €
7,278,294.97 or 72.8%, in revenues from various port services by € 4,224,124.11 or 42.7% and in revenues
from storage by € 2,723,569.98 or 25.7% mainly due to the increase in transshipment volumes compared to
the previous year.
In 2023 the cruise industry showed significant growth in both arrivals and passenger traffic. Total passenger
traffic in 2023 amounted to 1,484,788 compared to 880,416 in 2022 recording an increase of 68.6%. Cruise
calls also increased by 12.4% with 761 calls compared to 677 in the previous year.
In the current year, Piraeus Port Authority S.A. has jointly launched a new car shipment route and service for
car transportations from China to Europe, North Africa and Near East in new special containers based on the
advantage of port of Piraeus and innovation in carrying mode by multipurpose vessel with COSCO SHIPPING
SPECIALIZED CARRIERS CO., LTD，and in collaboration with COSCO SHIPPING LINES GREECE SA., which
exploits the advantage of the location of the Piraeus port and offers an innovative way of transporting
vehicles with multi-purpose vessels, having as a target to provide high quality service car logistics. The new
service generated a total revenue of 3,830,781.39, affecting mainly the revenue in the various port services
in the amount of € 2,584,800.14.
The increase in revenue from the Pier II + III concession agreement is mainly due to the increase in the
variable consideration which amounted to € 72,261,213.78 (31.12.2022: € 68,138,651.46).
In addition, it is noted that there is no seasonality in the Company's activities.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
25. ANALYSIS OF EXPENSES
Expenses (cost of sales and administrative expenses) are analyzed as follows:
a) The significant increase in payroll and employee related costs during the current year is due to the increase in
the Company's workforce compared to the previous corresponding period year as well as to the
implementation of the new Dockers' Collective Agreement (from 1/7/2022) and employees which came into
effect within the current year (1/8/2023) and provides for increases and additional benefits in their wages.
There was also an increase in the provision for staff compensation (Note 17).
The significant increase in various expenses is mainly due to the increase in promotion and advertising
expenses by € 0.6 million, in guard fee by amount of € 0.8 million and in travel expenses by € 0 .2 million.
b) Additionally, third party services include the fees of the company "KPMG Certified Auditors S.A." for the
services provided related to statutory audit fees for the financial statements (2023:€ 112,000.00 &
2022:107,000.00), tax audit certificate in accordance with article 65A of L. 4174/2013 and the POL
1124/18.06.2015 (2023: € 25,000.00 & 2022: € 25,000.00) as well as other non – audit services (2023: €
12,000.00 & 2022: € 41,000.00).
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
26. OTHER OPERATING INCOME / EXPENSES
OTHER OPERATING INCOME
The amounts are analyzed as follows:
Rental income concerns land and building rents as well as the investment properties rent (Note 6).
OTHER OPERATING EXPENSES
The amounts are analyzed as follows:
The tax fines and surcharges of the current year mainly concern tax audit disputes of the years 2017, 2018
and 2019 and maily include total income tax differences amounted to € 4,450,329.50, VAT amounted to €
307,743.85 and other tax objects amounted to € 1,077,910.83. The previous year income tax fines and
penalties related to differences from tax audit for the year 2016 (Note 9). In addition an amount of €
1,376,120.29 related to a diferrence to the calculation of employees withheld income tax for the years 2016-
2018 as well as an amount of € 198,816.90 related to VAT differences for the year 2016, are included.
In the current year , in the “Third-party compensation” are mainly included compensations to suppliers for
differences which arised from their relevant project contracts with the Company.
The third parties compensations of the previous year relate mainly to an interest compensation paid to a
supplier in accordance with a relevant decision of an arbitral tribunal.
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
27. FINANCIAL INCOME/EXPENSES
The financial income is analyzed as follows:
Interest income on bank deposits mainly concern provisions for interest of time deposits , accrued and
finalized (Note 11) that have been concluded in the current year.
28. DEPRECIATION AND AMORTISATION
The amounts are analyzed as follows:
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PIRAEUS PORT AUTHORITY S.A
Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
29. PAYROLL AND EMPLOYEE RELATED COST
The amounts are analyzed as follows:
Cash settled share based payments
The Extraordinary General Meeting of the Company's shareholders on September 23, 2019 approved the
long-term incentive bonus plan, which is cash settled of a certain number of Incentive Units. Beneficiaries of
the program are qualified members of the Board of Directors, senior executives and other key management
and business executives who have a significant influence on the performance and uninterrupted operation of
the Company.
The total number of Incentive Units in the Program is six hundred sixty-six thousand (666,000) and 80% of
the Incentive Units, equal to five hundred thirty-two thousand eight hundred (532,800) Incentive Units, were
allocated to the first Award date, and the remaining 20% of the total number of Incentive Units, namely one
hundred thirty three thousand two hundred (133,200) Incentive Units, was reserved for beneficiaries that
will join the Company or be promoted to beneficiary positions after the First Award Date and until 31
October 2020 Award date. Any key management personnel joining the Company after 31 October 2020 will
not benefit from the Program.
The Board of Directors of the Company at the meeting of October 25, 2019 named the beneficiaries of
498,200 units at the first award date (October 8, 2019). The minutes of the Board of Directors of December
22, 2020 named the beneficiaries of the program including the new-coming qualified managers and/or
promoted managers and canceling the Incentive Units of the beneficiaries who left the Company during the
period between the grant date and 31 October 2020 along with the remaining unallocated units. Following
this decision of the Board of Directors, there is no change in the Units of the program regarding the issuance
of new units.
The Board of Directors of the Company, at its meeting on December 6, 2021, decided to cancel 92,000 units.
The Board of Directors of the Company, at its meeting on December 22, 2022, decided to cancel an
additional 21,300 units. The Board of Directors of the Company, at its meeting on December 21, 2023,
decided to cancel 48,000 units.
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(amounts in Euro unless stated otherwise)
In more detail, the movement of the Program Units during the year and the final Units are listed in the table
below:
The amount payable to the beneficiaries is determined by the increase in the share price from the grant date
(8/10/2019: € 22.53) and the redemption date. The amount payable is determined by the same parameters
for the units granted in 2020. In addition, the redemption of the Incentive Units depends on the achievement
of predetermined performance criteria of the Company and the Beneficiaries.
After fulfilling the Program's performance criteria over two years, the Incentive Units will be redeemed on
specific dates on the 2nd, 3rd and 4th anniversary from the date of the first award with the possibility of
being redeemed by the 7th anniversary by the above dates. The date of the first expiration, provided that no
redemption, will take place after the seventh (7th) anniversary. Until the 4th anniversary of the 1
st
award
date (8/10/2023) due to non-fulfillment of the performance criteria of the Program, no unit was redeemed.
The fair value of the long-term incentive bonus plan as of December 2019 was determined using the Binomial
model with the following data:
Share price at measurement date Εuro 21.85
Expected share voladility 25%
Dividend yield 2%
Risk-free interest rate 0%
The fair value of the units of the long-term reward plan granted during the fiscal year 2020 was determined
using the Binomial model with the following data:
Share price at measurement date Εuro 17.86
Expected share voladility 30%
Dividend yield 2%
Risk-free interest rate 0%
The valuation of the liability as at December 31, 2023 amounted to € 1,054,486.94 (31 December 2022 €
1,139,582.86) and is recorded in line item “Other long-term liabilities”.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
30. EARNINGS PER SHARE
The earnings per share for December 31, 2023 and 2022 are as follows:
31. COMMITMENTS AND CONTINGENT LIABILITIES
(a) Litigation and Claims: The Company is currently involved in several legal proceedings and has various
claims against it of a total amount of approximately € 114.9 million (31.12.2022: € 123.7 million),
concerning mainly labour disputes and legal proceedings with municipalities around the port, arising in
the ordinary course of business.
Based on currently available information, Management and its legal department believe that the
outcome of these proceedings will not have a significant effect on the Company’s operating results or
financial position, except for the recorded provisions in Note 18.
These claims concern mainly labour disputes of a total claimed amount of 93.1 € 31.12.2022: € 93.1
million), disputes with the Greek State of a total claimed amount of € 4,1 million (31.12.2022: € 9.1
million) and disputes with suppliers and others of a total claimed amount of € 6.7 million (31.12.2022: €
7.1 million).
The employee labour cases are pending litigations against PPA SA before the civil and administrative
courts of all degrees and relate mainly with: a) claims against PPA for additional compensation for the
years 2010 and 2011 for the enforcement of the Agreement between PPA and the labour unions to
ensure equal working conditions and renumeration of PPA ‘s employees following the concession of Pier
II to PCT SA, b) claims against PPA for salary reduction based to the laws 3833/2010, 3845/2010 and
4024/2011 cases before the privatization of PPA, c) claims against PPA for salary reduction based to the
laws 3833/2010, 3845/2010 and 4024/2011 cases according after the privatization of PPA SA , d) Few
labor accidents and e) various other (pay grade cases, dockworkers’ overtime cases before the
privatization period).
Disputes with general Management concern litigations before the administrative courts of all degrees,
having to do with decisions, taxes, charges, fines from Municipalities, Prefecture, Public Service
Decisions, Ministerial Decisions, Public Authorities’ Decision etc. The supplier / client dispute cases
concern compensation/ financial differences between PPA and its suppliers or customers arising in the
normal course of business. All other kind of cases that cannot be included to the above three categories
are characterized as “other”, for example non labour accident cases, compensation of third parties, real
estate cases, lease differences etc. The claimed amount of the Company’s other cases amounted of Euro
12,6 million (31.12.2022: Euro 14.4 million). Based on currently available information, Management and
its legal department believe that the outcome of these proceedings will not have a significant effect on
the Company’s operating results or financial position, except for the recorded provisions in Note 18.
(b) Liabilities arising from letters of Guarantee: The Company has issued letters of guarantee amounting to
€ 19,493,412.45 (December 31, 2022: € € 19,520,412.45), of which € 4,428,900.45 (December 31, 2022:
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(amounts in Euro unless stated otherwise)
€ 4,428,900.45) in favor of the General Directorate of Customs (E 'and F' Customs Office) of the Ministry
of Economy for the operation of all warehouses for temporary storage of goods PPA S.A. Under the
current concession agreement of 24.06.2016 between the PPA and the Greek Government, PPA has
issued a letter of guarantee in favor of the Ministry of Finance General Secretariat of Public Property
amounted to € 15,000,000.00.
(c) Minimum Future Rents: The minimum future concession and rental income receivable, arising from the
existing rental agreements are as follows:
(d) Commitments for investments based on concession arrangement: Pursuant to the provisions of the
Concession Agreement signed between the Company and the Hellenic Republic dated on 24.06.2016, as
ratified by Law 4404/2016 (Gov. Gazette A '126 / 08.07.2016), the Company has the contractual
obligation for the implementation of investments in projects within the Port of Piraeus for the five years,
August 2016 - August 2021 amounting to € 293.8 million. (First Investment Period) and for the five-year
period August 2021–August 2026 amounting to € 56 million (Second Investment Period). The Concession
Agreement included specific terms regarding the conditions for the imposition of penal clauses by the
Greek State, in case of non-execution of mandatory investments as of August 2021. The possibility of
imposing penalties under the Concession Agreement was assessed by Compamy Management during the
previous period and was deemed remote, as the Company was able to prove that delays in the execution
of mandatory investment projects were outside the Company's reasonable control and therefore fell
within the exemption from the imposition of penalties in Article 16.5 (a) (i) of the Contract Concession.
This assessment was verified with the agreement of 22/09/2021 Amendment the Concession Agreement
between the Company and the Greek State as verified by Law 4838 / 1.10.2021 Government Gazette 180
A ' (Note 3(s)).
The specific amendment, among others, extends the duration of the First Investment Period, as well as
extends the obligation to start and complete the Second Investment Period by five years respectively.
As at December 31, 2023, the mandatory investments comprise of:
• completed mandatory investments of € 75.1 million (31.12.2022: € 68.0 million),
• projects under construction € 69.5 million (31.12.2022: € 60.0 million)
as well as prepayment for a mandatory investment of € 9.7 million (31.12.2022: € 10.5)
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(amounts in Euro unless stated otherwise)
(e) Contractual commitments with creditors: with regard to (d) above and other contracts signed, the
outstanding balance of the contractual commitments with suppliers on significant infrastructure
projects (construction, maintenance, improvements, etc.) at December 31, 2023 amounted to
approximately € 129.3 million (December 31, 2022: € 123.0 million) of which approximately € 68.4
million relate to the project "Passenger Port Expansion - South Zone - Phase A ' (December 31, 2022:
approximately € 75.6 million).
(f) Special Contribution to Social Security Institute (IKA – ETAM): On November 7, 2011 the Company
notified the management of IKA its intention to stop paying the special contribution in favor of the
supplementary fund of Company’s employees, since after the merger of IKA with IKA – TEAM
Management of the Company considers that there is no further obligation. From October 2013, The
Company decided to cease the payments to those institutions. The Management of the Company
believes that this contingent liability could be settled without significant adverse effects on its financial
position.
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(amounts in Euro unless stated otherwise)
32. RELATED PARTIES
The Company provides services to certain related parties in the normal course of business.
The Company’s transactions and account balances with related companies, as these are defined in IAS 24
,are as follows:
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(amounts in Euro unless stated otherwise)
The revenues of € 87,384,929.25 (2022: € 82,720,264.87) (Note 24) from Piraeus Container Terminal S.A. are
related to the fixed and variable revenue from the concession agreement (PIER II & III) and revenues of €
1,872,721.29 (2022: € 6,333,807.55) related mainly loading/unloading and mooring. The Company recharges
energy costs to the related party under the concession agreement in the amount of € 10.713.458,46 (2022: €
12.257.263,87).
The transactions with COSCO SHIPPING LINES GREECE S.A. relate mainly to services of cars transportation
from China for the year 2023 (Note 24) , as well as to ship services.
The transactions with COSCO SHIPPING GLOBAL EXH relate to exhibition expenses.
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(amounts in Euro unless stated otherwise)
The transaction with COSCO SHIPPING TECHNOLOGY (Beijing) relates to software update .
The transaction with COSCO (HONG KONG) INSURANCE BROKERS L.T.D. of the current and the previous
period relates to the insurance coverage of PPA S.A. regarding third party liability, employer' s liability,
property and business interruption and directors and officers liability, according to article 17 of the
Concession Agreement (Law 4404/2016).
The transaction of the current and the previous year with COSCO SHIPPING PORTS LIMITED is related to the
purchase of software and tax interconnection services with the SAP software.
The transaction with COSCO SHIPPING TECHNOLOGY Co. LTD relates to software support costs.
Board of Directors Members Remuneration: During the year 2023, remuneration and attendance costs,
amounting to € 1,234,389.16 (31.12.2022: € 1,105,404.21) were paid to the Board of Directors members.
Furthermore during the year ended December 31, 2023 emoluments of € 637,839.12 (31.12.2022: €
338,557.41) were paid to Managers / Directors for services rendered.
33. FINANCIAL INSTRUMENTS
Fair Value: The carrying amounts reflected in the accompanying sheets of financial position for cash and cash
equivalents, trade and other accounts receivable, prepayments, trade and other accounts payable and
accrued and other current liabilities approximate their respective fair values due to the relatively short-term
maturity of these financial instruments.
The fair value of variable rate loans and borrowings approximate the amounts appearing in the statements of
financial position.
The Company categorized its financial instruments carried at fair value in three categories, defined as
follows:
Level 1: Quoted (unadjusted) values from active financial markets for identical negotiable assets or liabilities.
Level 2: Other techniques for which all inflows that have a significant impact on the recorded fair value are
identified or determined directly or indirectly from active financial markets.
Level 3: Techniques that use inflows that have a significant impact on the recorded fair value and are not
based on quoted prices from active financial markets.
During the year ended December 31, 2023 , there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfers into and out of Level 3 fair value measurements.
As at December 31, 2023 and 2022, the Company held the following financial assets:
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(amounts in Euro unless stated otherwise)
It should be noted that the above financial instruments are presented at historical cost less accumulated
depreciation and any impairment, and the above reference is made only for the purposes of more complete
disclosure.
The loans that the company has are at variable interest rates; therefore, management believes that the
carrying value at the end of the financial year is similar to the fair value.
Financial risk management:
The financial risks related to the Company and their respective management are as follows:
Credit Risk: The Company's Management estimates that its exposure to credit risk is limited towards the
contracting parties, - as a matter of policy - it receives advances payments or letters of guarantee for most of
its provided services . From the above applied policy are excluded customers who belong to the same group
of companies, as mentioned in note 32 "Related Party Transactions". In addition, the transactional activity
between the Company and its related party company, Piraeus Container Terminal SA, which is the Company's
largest customer in terms of volume, is mainly covered by the terms of the concession agreement between
them, which is under the supervision of the Greek State. It should be noted that despite the very significant
amount and range of related parties transactions, no credit event has occurred until now that could raise a
credit risk.
In addition, the Company's cash at banks and time deposits are placed in bank financial institutions in Greece
and generally in European Union, with the following ratings (Moody's credit rating):
Foreign Exchange Risk: The Company is neither involved in international trade nor has any long term loans in
foreign currency and therefore is not exposed to foreign exchange risk resulting from foreign currency rate
variations.
Interest rate risk: The Company’s borrowings consist of two loans in Euro and one is subject to fixed interest
rate and the other one to floating interest rate (Note 19). The Company does not use derivatives in financial
instruments in order to reduce its exposure to interest rate risk fluctuation as at the balance-sheet date. The
Company management believes that there is no significant risk resulting from a possible interest rate
fluctuation.
Following the ECB's decisions to proceed with successive interest rate increases after 11 years, order to
achieve the target of 2% inflation in the medium term in European Union, the Management is closely
monitoring the evolutions in the current period and considers that the risk from the change in interest rates
has increased compared to previous years. However, the Company's Management, believes that given the
gradual deceleration of inflation in the euro area since the summer, and the European Central Bank's
decision to pause interest rate increases for the first time in its October’s meeting in Athens, considers that
any future interest rate increase will not be significant.
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(amounts in Euro unless stated otherwise)
In any case, the Management of the Company does not consider that this increase will have a significant
impact on its borrowing costs and its creditworthiness or its financial results, as the Company is not
significantly exposed to bank borrowing, and especially to the risk interest rate fluctuations. Additionally, in
the context of the more effective managing of its assets as effectively but also to the limitation of any
potential impact of increased borrowing rates on its results, the Company's Management, taking advantage
of its strong liquidity, applies short-term reinvestment of these, taking advantage of the increased deposit
rates.
The table below presents and analyses the sensitivity of the result in relation to financial assets (cash on
hand and in banks) and financial liabilities (loans) of the Company to the interest rate risk changes assuming
a simultaneous change in interest rates by ± 100 basis points on the Company’s profit.
Liquidity risk: The effective management of liquidity risk is ensured by maintaining sufficient cash and the
availability of financing in case of need. Corporate liquidity risk management is based on the proper
management of working capital and cash flows.
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(amounts in Euro unless stated otherwise)
The following table summarizes the maturity dates of the financial liabilities of 31 December 2023 and 2022
respectively, arising from the relevant contracts at unpaid prices.
Τhe above table includes the interest on long-term loans, which were calculated until maturity according to
the European Investment Bank quarterly information note for the 1st quarter of 2024.
* Trade payables do not have interest and are settled in up to 60 days. Other payables also do not bear any
interest and are settled in up to 12 months.
Capital Management
The primary objective of the Company's capital management is to ensure the maintenance of high credit
rating, and healthy capital ratios in order to support and expand the Company's operations and maximize
shareholder value. The Company's policy is to maintain leverage targets, according to an investment grade
profile. The Company monitors capital adequacy using the ratio of total debt to operating profits, which
should be lower than 9.80 based on the loan agreements (Note 19). The debt includes interest-bearing loans
and lease liabilities, while the operating profit includes profit/(loss) before taxes, financing costs and
depreciation.
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(amounts in Euro unless stated otherwise)
34. RECLASSIFICATIONS
In the statement of financial position, an amount of € 833,209.00 was reclassified from the line
"Provisions" (Note 18) to the line "Trade and other receivables" (Note 11 to the provision for doubtful
debts) for the purpose of a more accurate presentation of these receivables and provisions.
In the statement of financial position from the line item "Property, plant and equipment " (note 4) an
amount of € 345,564.52 was reclassified from "Property, plant and equipment under Constructions" (note
4) to "Intangible assets under Construction " (Note 7) for better presentation.
In the prior years’ segment analysis (Note 23) an amount of € 346,472.09 which related to revenues was
reclassified from the segment “Company’s Level” to the segment “Other segments” in order to be
comparative with the current year analysis.
35. SUBSEQUENT EVENTS
The most significant events after December 31, 2023, are the following:
Tax audit of the 2017–2019 financial years
In January 2024, the company made a full repayment of the additional income tax and penalties and the
corresponding surcharges resulting from the income tax audit for the tax years 1/1/2017–31/12/2019.
The company, disputing all the final acts of corrective determination and imposition of income tax penalty
for the above fiscal years, has filed an appeal against these final acts of the General Directorate of Tax
Administration (Note 9).
Partial tax audit for the period 1.1.2020 – 31.7.2021
In February 2024, the General Directorate of Tax Administration (Large Business Control Center) provided
the Company with the Report of a Partial On-Site Audit of Proper Bookkeeping & Records with Report ID
4842349, the Report of a Partial On-Site Audit of Real Estate Tax with Report ID 4842009, the Partial
Report of Stamp Duty On-site Audit with Report ID 4842008, the Value Added Tax (VAT) Partial On-site
Audit Report with Report ID 3752815, and the Withholding Tax On-site Partial Audit Report, where no
difference was found. (Note 9).
Completion and delivery of the Mandatory Investment 'Expansion of the Car Terminal Expansion (Port
of Herakleos)'
Car terminal expansion which is recently completed (inauguration ceremony took place on February 6th,
2024), is a project with a total investment of € 20 million included in the company's mandatory
investments under the concession agreement with the Greek State. This project further improves the
competitiveness and attractiveness of the port as a transshipment hub on the Mediterranean Sea. The
extension of the Car Terminal by approximately 40,000 m
2
towards the northern side of the port increases
the total area of the New Terminal to 110,000 m
2
, and overall creates an extra car storage space with a
capacity of 5,100 vehicles. The total handling capacity will be over 700,000 movements and thus
contributing to the further development of the Piraeus Port Authority.
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Annual Financial Report for the year ended December 31, 2023
(amounts in Euro unless stated otherwise)
Signing of a Memorandum of Understanding (MoU) with the Port of Guangzhou in China
In February 2024, the company signed a Memorandum of Understanding (MoU) with one of the 10
largest commercial ports in the world, the Port of Guangzhou in China. With this MoU, the responsible
operating and managing bodies of the two ports agreed to strengthen their cooperation by establishing a
long-term partnership that looks forward to the challenges and opportunities of the present and
especially the future. In addition, the two parties agreed to intensify joint efforts to implement
investments related to the transformation and evolution of the ports into green ports, exploring new low-
carbon solutions. Finally, the two sides will cooperate intensively in the field of digitalization and
automation of ports, committing themselves to a continuous exchange of know-how and new
technologies between them.
Other than the above, there are no other significant events after December 31, 2023, that may have a
material impact on the company's financial position.
Piraeus, March 29, 2024
CHAIRMAN OF THE BOARD OF
DIRECTORS
CHIEF EXECUTIVE OFFICER
FINANCIAL MANAGER
YU ZENG GANG
ZHANG ANMING
SERAFEIM MARMARIDIS
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The annual financial report of the Company, the independent auditor’s report and the Management
Reports are available to the website www.olp.gr.