001 ANNUAL REPORT 2021

VISION 2025

ANNUAL
REPORT
2021
 ANNUAL REPORT
2021

HELLENIC
PETROLEUM
23/2022
Holdings SA
004 005 ANNUAL REPORT 2021

Introductory Note Table of Contents

006
Message
to Shareholders

In the context of the corporate transformation of

the HELLENIC PETROLEUM Group and following
the decisions of the Extraordinary General Meeting
The new corporate name of HELLENIC PETROLEUM
SA is "HELLENIC PETROLEUM HOLDINGS SOCIETE
ANONYME” and its trade name: "HELLENIC
012 014 022 024 034
of Shareholders held on 10.12.2021, on 3 January PETROLEUM Holdings SA", while its shares remain
Highlights Our Business Macro Landscape and Greek
2022, the demerger by way of hive-down of the listed on the Main Market of the Athens Stock
2021 Strategy Environment Petroleum Industry Market
refining, supply and trading of oil products and Exchange.
petrochemicals sector and the establishment of a
new company was approved, by virtue of the decision
of the Ministry of Development and Investments No
142903/03.01.2022.

As a result of the above, a new entity was

incorporated under the name “HELLENIC PETROLEUM
SINGLE-MEMBER SOCIETE ANONYME REFINING,
036 038 040 044 068
SUPPLY AND SALES OF OIL PRODUCTS AND COVID-19 Pandemic Business 2021 Financial Business ESG
PETROCHEMICALS”, with trade name “HELLENIC Impact, Response Review Review Activities
Measures
PETROLEUM R.S.S.O.P.P. SA” and its Articles of
Association were approved. HELLENIC PETROLEUM
SA became the sole Shareholder of the Beneficiary
Entity “HELLENIC PETROLEUM R.S.S.O.P.P. SA”, by
acquiring all 130,100,000 common, registered shares
issued by the Beneficiary Entity, with a nominal value
of €10 each. 073 077 080 082 086
Finally, Articles 1 (Name), 4 (Scope) and 19/paragraph
Environment Health EU Society Corporate
4 (Board of Directors) of the Articles of Association of and Climate Change and Safety Taxonomy Governance
the Demerged Entity were amended in accordance
with the resolution of the EGM held on 10.12.2021.

114 120 128 136 148

Management HELLENIC PETROLEUM Risk Financial Contact
In this Annual Report, the references to the parent company HELLENIC PETROLEUM Holdings SA (former Holdings Management Information Information
HELLENIC PETROLEUM SA), are also found as "HELLENIC PETROLEUM" or "Company". in the capital markets
006 CHAPTER'S NAME
007 ANNUAL REPORT 2021

Message to
Shareholders

2021 was a milestone for HELPE, as we

progressed significantly in areas that
redefine our strategy and accelerate
the transformation towards a
diversified energy group, with improved
environmental footprint, through the
holistic plan “Vision 2025”
008 MESSAGE TO SHAREHOLDERS
009 ANNUAL REPORT 2021

Dear shareholders, value of its Power and Gas portfolio, while, already This will increase value transparency of our various Meanwhile, our Group intends to redefine its group
during 2021, it proceeded to an agreement for activities, improve growth flexibility, optimize risk identity, image and corporate name, which will
2021 was a milestone for HELLENIC PETROLEUM the sale of its stake in DEPA Infrastructure, with a management and enable that implementation of indicate our transition to the new energy era of
Group, as we took important steps that redefine commitment to distribute 50% of the proceeds from fit-for-purpose financing strategies, improving capital diversified energy sources and low greenhouse
our strategy in the context of energy transition. this transaction to shareholders. structure and reducing financial cost. gas emissions, by a flexible, vertically integrated,
Furthermore, at a time still affected by the pandemic comprehensive model of added value for all
crisis, the protection of the staff’s and facilities’ In the last 12 months, we have accelerated the stakeholders.
health and safety, were once again our main priority. investment program in New Energy, with the installed
capacity from RES reaching 285 MW, setting an
Accelerating the Implementation of Strategy – interim target of 1 GW by the end of 2026 and over
“Vision 2025” 2 GW in operation by 2030. Regarding 2021, major
The operating environment of our core activities is investments were made in the RES sector, including
defined by rapid developments and challenges with the landmark 204 MW PV project in Kozani, NW
regard to climate change, as well as energy transition Greece (an €130 million investment for the largest
and security. In this context, our Group implements RES project in Greece and the largest bi-facial P/V
a holistic transformation plan, aiming primarily at park in Europe), the acquisition of operating wind
substantially improving our environmental footprint, parks in South Evia, of a total installed capacity of 38 On 3 January 2022, the corporate
while increasing value for all stakeholders. “Vision
2025” is based on 5 key pillars and is fully aligned with
MW, with particularly high load factors, as well as the
acquisition of another 16 MW PV parks in operation. In restructuring was successfully concluded
the European targets for reducing greenhouse gas
emissions and developing new activities with low
the medium-term, our Group focuses on energy and
hydrogen storage projects, as well as offshore wind.
by the demerger by way of hive-down
environmental footprint.
With technology rapidly progressing and the
of the Refining, Supply and Sales of Oil
The first pillar revolves around redefining our
strategy in terms of the environment, society and
importance of improving efficiency and systems
security increasing, part of our investment program
Products and Petrochemicals sector and
corporate governance (ESG), aiming mainly at
reducing greenhouse gas emissions. Specifically,
concerns digital transformation, which is expected to
yield substantial benefits in the following years.
its contribution to a new company, an 100%
we seek to improve our activities’ scope 1 and
scope 2 environmental footprint, (direct and The next three pillars are based on upgrading
subsidiary of HELLENIC PETROLEUM S.A.,
indirect emissions respectively), by 50% by 2030, corporate governance, establishing an appropriate which was renamed “HELLENIC PETROLEUM
while developing options for reducing indirect corporate structure and adopting a new corporate
environmental impacts (scope 3). This will mainly identity, with the first two already completed and the Holdings S.A.”
result from a series of projects at our industrial third expected to be implemented soon.
facilities, for the improvement of energy efficiency,
the electricity supply from low -and gradually More specifically, in the framework of applying the
zero- emission sources, the reduction of industrial provisions of L. 4548/2018 and L. 4706/2020, the
processes’ emissions, as well as the capturing and corporate governance framework was substantially
storage of generated emissions, while a substantial upgraded, with the majority of the BoD members
part of the target will come from offsetting emissions being elected by the General Meeting, increasing the
via increasing the installed RES capacity. number of independent members and introducing
a suitability and gender quota policy, while Energy Security Business Environment
The second pillar focuses on increasing the Group’s incorporating European best practices. Recent geopolitical developments highlight During 2021, the global refining environment was
economic value through substantial capital the importance of security of supply and the driven by the gradual recovery of economic activity,
reallocation to new activities, as well as by increasing Furthermore, on 3 January 2022, the corporate diversification of the energy resources mix, especially the partial lifting of restrictive measures and the
our core business competitiveness. Specifically, our restructuring was successfully concluded by the amid the ongoing energy transition. In this context, normalization of travelling, leading to an increase
investment program, which over the coming years demerger by way of hive-down of the Refining, Supply through leveraging its know-how and experience in oil products demand (the world oil demand
will reach €4 billion, will be directed to strategic and Sales of Oil Products and Petrochemicals sector in hydrocarbons exploration in Greece, our Group rebounded in 2021 by 5.7 mbpd to 96.7 mbpd,
initiatives, aiming at strengthening our core activities and its contribution to a new company, an 100% will contribute to the emerging national policy although still 3 mbpd lower than the 2019 levels).
(refining, petrochemicals, international trading) subsidiary of HELLENIC PETROLEUM S.A., which was for exploration of primary energy sources and
and developing RES and other New Energy forms. renamed “HELLENIC PETROLEUM Holdings S.A.”. improvement of long-term energy security, while Refining margins recovered from the 1H21 historical
Meanwhile, our Group is looking at maximizing the benefiting our shareholders. low, recording a considerable increase in 2H21.
010 MESSAGE TO SHAREHOLDERS
011 ANNUAL REPORT 2021

The recovery of demand led to an increase in global Commercial, DEPA Infrastructure and Elpedison) to We proceed to executing critical, 100% eco-friendly, Transitioning to the future requires all stakeholders’
crude oil prices, with Brent reaching $71 per barrel, the Group’s net profitability and e) the lower financial anti-corrosion and anti-flooding projects, covering contribution and collaboration. In 2022 we will
68% higher y-o-y. The improvement of international costs. an area of more than 20 km2 at Geraneia Mountains continue to exploit the possibilities offered from
environment during 2H21 was accompanied by the and Varibobi, both highly important locations for the cooperating with shareholders, creditors, employees,
energy crisis, mainly in Europe, with the natural The above is indicative of the Group’s resilience and country’s ecosystem, included in the NATURA 2000 customers, suppliers and the society in order to shape
gas price sharply higher (+391% on average); competitiveness through its vertically integrated Network. and jointly move towards a better, more promising
a development which had a direct impact on model in the oil products value chain, with significant and “greener” future.
electricity prices, while the European prices of CO2 synergies, as well as a diversified activities portfolio.
emission allowances were also higher. The significant
increase in energy pricing had a material negative Taking into consideration the Group’s financial
impact on the operating cost of the European results, as well as its prospects, the Board of Directors
refining industry, partially mitigating the positive decided to distribute a total dividend of €0.40/share,
impact from the improvement of the refining and while it is planned to distribute an extraordinary
petrochemicals’ margins. dividend of 50% of the Company's proceeds (€256
million) from DEPA Infrastructure sale.
In Greece, total demand for ground fuels in 2021
amounted to 6.4 million tons, 2% higher, with demand Environment, Health, Safety and Corporate
for automotive fuels strengthening by 7%, while Responsibility
demand for aviation and bunkering fuels rose by 24%. Our Group has incorporated sustainable
development in its strategic planning and has been
Results – Dividend Policy committed through its policy for health, safety,
The Group’s financial results and performance during environment and sustainability, which aims at safe
2021 were improved in almost all respects, compared and accident-free, financially sustainable operations,
to the previous year. respectful to the environment and society.
Meanwhile, health and safety are top priorities in all
The Group’s Adjusted EBITDA for 2021 amounted to Group activities. The overall approach of managing
€401 million (+21%), with the respective Net Income issues concerning health and safety includes planned
coming in at €144 million, compared to €5 million in initiatives and proactive measures to mitigate risks
2020. Reported Net Income reached €341 million, the and improve performance. Indicatively, in 2021,
second highest in the Group’s history, reversing the approximately €13 million were invested in improving
€397 million losses in 2020, due to the considerable safety in all Group facilities in Greece and abroad,
rebound of the global crude oil and oil products in addition to projects related to equipment or/and
prices from the historical lows they had recorded in units’ upgrading and modernization.
2020.
During 2021, our Group fulfilled its social part through
The key drivers that led to an increase in the Group’s a comprehensive and multilayered corporate
profitability were: a) increased production, which responsibility program, with actions worth €5.8
led to higher refined products’ sales (+4% and +6%, million, aiming at promoting society, supporting
respectively), with exports delivering the second- educational initiatives, protecting the environment,
best record in the Group’s history. In this context, creating value for the economy and swiftly
the improvement in refining margins, combined with responding to emergencies. On the latter, with a view
the increased availability of refining units, offset of protecting the environment, the Group was right Ioannis Papathanasiou Andreas Shiamishis
the negative impact from increased energy costs away on the front line in the summer 2021 wildfires. Chairman of the BoD Chief Executive Officer
and the higher prices of CO2 emission allowances, We took action with our staff, actively supported
as well from the strengthening of the Euro/US Dollar firemen, volunteers and local authorities’ teams,
exchange rate, which averaged 1.18, compared facilitating their work by providing special vehicles,
to 1.14 in the previous year, b) the petrochemicals’ as well as free fuels. To date, we have been carrying
highest ever profitability, due to the favorable on with important restoration projects in the areas
global environment, c) the improved performance of that have been affected by the wildfires, through
domestic and international Marketing subsidiaries, one of the largest private environmental protection
d) the increased contribution from Associates (DEPA and restoration programs with a €3 million budget.
 285 MW
Renewable
Energy Sources

52%
Completion of the 204 MW PV project in Kozani

204 MW
Increased operating profitability
despite the energy crisis and
COVID-19, with

+21%
in operation
Financial in 2Q22 one of the largest in Europe
cost
reduction
Adj. EBITDA over the last five years,
at €401 million at multi-year lows

~200,000
from RES operation,
aiming for 50%
improvement 50%
of the Group’s

+ -
tons, total avoided environmental
CO2 emissions footprint by 2030

2nd highest performance ever

in exports at

9 million ΜΤ Upgrade of
>€400 million
medium-term
target for RES
projects to 1 GW in investments with
emphasis on New
Energy, environmental
improvement and ~60%
Acquisition of safety projects /

38 MW
wind farms in ~60% of investments
operation in in green transition
South Evia projects
Increased return to
Record high Petrochemicals’ shareholders with dividend
profitability at distribution at

€131 million €0.40 per share

New corporate structure
and governance framework
>€5.8 million
upgrade implemented support to the Community
according to plan / and to environmental
Successful implementation of protection projects
implemented in the
«Vision 2025» neighboring municipalities
continues
 Our
Strategy

“Vision 2025” resets our strategy

towards capitalizing upon opportunities
created by the changing energy
landscape
016 OUR STRATEGY
017 ANNUAL REPORT 2021

Radical changes Our Transformation

in the energy landscape
The energy transition is changing the global energy The energy transition is also supported by the social, On the back of the accelerating energy transition, the Our strategy is focused on creating a balanced
sector at an accelerating pace with the following political and regulatory trends seeking to address Group has embarked upon a holistic transformation portfolio across our core business and New Energy,
main characteristics: climate change in the European Union, as manifested program, called “Vision 2025”. “Vision 2025” sets a allowing us to capitalize on opportunities offered by
in the recently announced Green Deal (e.g., tighter strategic agenda to capitalize on opportunities the accelerated energy transition.
1. Demand for fossil fuels is expected to be negatively regulatory requirements for decarbonization) and created by the changing energy landscape.
affected in the coming decades. Global energy globally, through the return of the US to the Paris Our strategy focuses on four key elements:
demand is estimated to be ~8% higher than today agreement – COP 21 and China’s adoption of new "Vision 2025" sets priorities in five key pillars:
in 2050, a decoupling between economic growth climate goals. Continuous tightening of the regulatory • Redefining ESG strategy and greenhouse gas 1. Future proof our core business: : Improve
and energy demand. Demand for transport fuels framework to reduce carbon emissions as well as the emissions reduction targets competitiveness and extend “license to operate”
is expected to peak by 2030. Nevertheless, and, increase in carbon emission costs are expected to of our refining asset base, through the following key
• Adjusting the strategy and capital allocation
despite the rapid development of renewable energy constitute the main pillars towards energy transition. initiatives:
Similarly, in capital markets, ESG focus is becoming • Upgrading corporate governance
sources, fossil fuels are expected to have a material
contribution in the global energy mix. an imperative for investors, with global ESG assets on • Establishing an appropriate corporate structure • Decarbonization of operations through energy
track to exceed $53tn by 2025 (>1/3 of total AuM). • Adoption of a new corporate identity efficiency and optimization, use of renewables for
2. Electricity will play an increasingly important role
in the coming decades, with global production electrifying our facilities, use and production of
seen doubling by 2050. Renewable energy in cleaner fuels, installation of blue/green hydrogen
combination with electricity storage systems will be facilities and, under consideration, a plastic
the main drivers of production capacity growth. recycling pyrolysis plant
3. New energy sources are emerging, such as -- As part of this effort, the Elefsina refinery will
renewable liquid fuels from hydrogenation of plant become a testbed for energy transition and
raw materials and waste, hydrogen, synthetic fuels, decarbonization through investments in energy
plastics’ pyrolysis, electricity storage. The adoption efficiency, a co-generation unit to improve
of new technologies will have an impact on the security of supply, blue hydrogen production
hydrocarbon value chain. through carbon capture and pilot production of
green hydrogen through use of RES electricity
-- Furthermore, the Thessaloniki refinery will be
upgraded through a biodiesel cogeneration
plant from recycling used cooking oils

The energy transition is changing

the global energy sector at an
accelerating pace
018 OUR STRATEGY
019 ANNUAL REPORT 2021

Our strategy is focused on Overview of Initiatives -

creating a balanced portfolio
across our core business and 2021
New Energy

REFINING, SUPPLY & TRADING

• Improve our refineries’ competitiveness through: 2. Growth in RES and New Energy: Establish a material During 2021 and despite the challenges posed by introduction of biofuels and other initiatives aimed
-- Ongoing Digital Transformation Program business in renewable energy, follow the technology COVID-19, the Group retained its strong operational at reducing the carbon footprint by 30% by 2030 (vs
applied to the Group's business units and developments in New Energy and integrate energy performance across all refineries. The Group 2019). In addition, as an annual practice, the mixture of
centralized services products and services, through the development of also implements an extensive digital and energy crude processing has been adjusted in order to better
a significant Renewable Energy Sources portfolio, transformation program that is expected to bring adapt to market conditions.
-- New procurement optimization program
targeting more than 1 GW of operational capacity by significant improvements in the coming years,
-- Optimization of the new refining operation 2026 and more than 2 GW by 2030 targeting mainly the refining business. In addition,
model, maximizing the capabilities of all three studies have been carried out during 2021 for the
refineries, as well as, the synergies between 3. Manage our E&P portfolio: Consider strategic
them options for our E&P portfolio, aiming to focus
-- Growing exports to the Mediterranean and the efforts on natural gas prospects in collaboration
Balkans and developing international oil trading with credible partners that have the necessary
capabilities capabilities PETROCHEMICALS
• Development of fuels marketing and 4. Consolidate position in power and gas and focus
In 2021, the works for the new Cast PP Film production final investment decision regarding the expansion of
petrochemicals: on commercial activities in natural gas. Participate
line (7 ktpa) at the Diaxon facilities in Komotini, an €8 the PP factory in Thessaloniki, was taken.
-- Growing petrochemical activities through in national and regional power and gas markets
million investment, were completed and the facilities
investments to increase propylene capacity through:
are currently in the test phase. Moreover, in 2021, the
and expansion of the production of high value- • Leveraging on ELPEDISON's position in power
added polypropylene finished products generation, energy management and retail
-- Transformation of fuels marketing towards market
new energy services and products, such as the • Complete divestment from DEPA Infrastructure
development of a charging network at service FUELS MARKETING
stations
Domestic marketing has begun the strategic advent of new fuels. The design and implementation of
transformation with the planning and implementation the 2nd phase are expected in 2022.
of the first phase taking place within 2021, aiming to
strengthen its position in the fuel and energy market, In terms of international marketing, Group's
to significantly improve profitability and to expand into participation in the new LPG installation (VLPG) was
new fuels and services. In this context, a new premium agreed and the acquired company BCL in Cyprus was
98-octane gasoline was introduced in the market, incorporated. In addition, the upgrade of the image
which completes our product range. and the selective expansion of the service station
network in the other countries in which the Group
Transformation focuses on enhancing added value operates were completed.
for customers and the partner network (eg. through
improved quality of service, customer focus, etc.),
improving efficiency and targeting our customers'
needs, and expanding all products and services (NFR,
EVs charging) and the opportunities created by the
020 021 ANNUAL REPORT 2021

RENEWABLE ENERGY SOURCES

In the field of Renewable Energy Sources, during 2021 PV, wind and energy storage are currently at various
the Group completed the acquisition of a 38 MW stages of development.
portfolio of wind farms in southern Evia and continued
the completion of the photovoltaic project works in In the next few years, the Group plans to develop
the wider area of Kozani. The photovoltaic project put projects with an installed capacity of > 1 GW by 2026
into operation in the second quarter of 2022 and is the and >2 GW by 2030.
largest RES project in Greece and the largest bifacial
photovoltaic park in Europe, with a total installed
capacity of 204 MW. Over 2 GW of projects, mainly

HYDROCARBON EXPLORATION & PRODUCTION

• The onshore blocks of Arta-Preveza & NW • Focus on the offshore areas of Ionian and Gulf
Peloponnese and the offshore block of Patraikos of Kyparissia (Block 10) with seismic acquisition
Gulf are no longer within the Group’s E&P assets. in the first quarter of 2022 and processing and
interpretation till the end of 2022.

POWER GENERATION & NATURAL GAS

The introduction of the Target Model in the Greek approvals.
market took effect in 2020. ELPEDISON is managing The privatization process of DEPA Commercial
this changing energy landscape as one of the largest has been postponed, with the Group evaluating
independent power producers in Greece, with its options. Finally, the Group is considering the
significant presence in electricity generation, both in divestment from DEPA International.
the retail market and in natural gas.
In this context, the Group will seek to further clarify
During 2020, the corporate transformation of the DEPA its position in the Natural Gas sector, maximizing the
Group and the creation of three distinct companies value of its participations and focusing on activities
was completed. In addition, the process of Group’s that complement its portfolio.
divestment from DEPA Infrastructure was largely
completed during 2021, with the sale and purchase
agreement being signed, pending customary
 Business
Environment

In 2021, the global economy's

growth rate marked the strongest
post-recession pace in 80 years
024 BUSINESS ENVIRONMENT
025 ANNUAL REPORT 2021

Business
Environment
$71 68% 5.7 mbd
MACRO LANDSCAPE1 Brent crude Crude oil price World oil
AND PETROLEUM INDUSTRY 2 oil price increase demand growth
($/bbl)* 2020-2021 for 2021
In 2021 the impact of the COVID-19 health crisis, which In the U.S., economic activity grew at a softer than-
has disrupted the global economic activity since expected pace in the second half of 2021, with
the end of the 1Q20, continued with less intensity material slowdown in the private consumption and
due to the vaccination programs and the ease of manufacturing production. The economy faced
the restrictive measures. The growth rate of the
global economy is estimated at 5.5% compared to
several unanticipated headwinds, including COVID-19
outbreaks, mounting supply shortages and rising
$9.4 $6.9
the previous year (-3.4% in 2020), which marks the energy prices, as well as a fading boost to incomes Gasoline crack Diesel crack
strongest post-recession pace in 80 years, mainly from pandemic-related fiscal support. Meanwhile, ($/bbl)* ($/bbl)*
due to increased demand, the pick-up of transports the inflation surprised markedly and a tightening
activity and the resurgence of investments. The labor market placed upward pressure on wages. In
developed economies’ GDP is estimated to have conclusion, GDP is estimated to have expanded by
increased by 5% in 2021 from -4.6% in 2020 and the 5.6% in 2021 vs -3.4% in 2020.
emerging economies’ GDP is estimated to have
grown by 6.3% in 2021 from -1.7% in 2020. For 2022, the With regard to emerging economies, the GDP
prospects for further growth in the world economy growth in China is estimated at 8% in 2021 (vs 2.2%
are challenged by uncertainties related to the in 2020). Recurring mobility restrictions related to
geopolitical developments, the energy crisis, the the pandemic and regulatory curbs on the property
spread of COVID-19 variants, the rising inflation and and financial sectors have restrained consumer
supply chain bottlenecks due to problems in the spending and residential investment. In contrast, and
global production and transportation of products. despite supply disruptions and electricity shortages,
the manufacturing activity has been generally solid
In the Euro Area, economic activity exhibited a and exports growth accelerated. Macroeconomic
significant increase, with GDP estimated to have
grown by 5.2% in 2021, compared with -6.4% in 2020
and +1.6% in 2019. After a rebound in the 2Q21 and
policy action has helped prevent a sharper economic
slowdown and improved the financial conditions. In €120 €47 €55
Turkey, the GDP grew by an estimated 9.5% in 2021 vs
3Q21, growth in the euro area is estimated to have 1.8% in 2020, amid a sharp rise in political uncertainty Electricity TTF Natgas EUA
slowed in the fourth quarter, owing, in part, to the and high inflation which led to further lira devaluation. Price** Price Price
resurgence of the pandemic COVID-19, as well as (€/MWh)* (€/MWh)* (€/T)*
the production slowdown due to supply bottlenecks In 2021, EUR / USD exchange rate shaped, on average,
in economies heavily exposed to global supply at 1.18 vs 1.14 in 2020. Uncertainty due to the COVID-19
chains and sharply higher energy prices. The output pandemic crisis contributed to preserving the
is projected to be back to its pre-pandemic trend volatility in the currency markets. The monetary and

+5.5% 1.18 €/$

during the current year. Conversely, if sustained, the fiscal policy variations in the US and the Eurozone
rapid surge in natural gas and electricity prices, have likely been the main drivers behind the Euro’s
alongside the geopolitical turbulence since February, further strengthening during 2021.
would likely present a notable downside risk to the Global GDP Exchange
near-term euro area outlook, particularly for industrial growth rate rate
production.
for 2021 €/$*
1
Source: World Bank, Global Economic Prospects, January 2022
2
Sources: ΟPEC, “Monthly Oil Market Report”, January 2022 & April 2022 / IEA, Oil Market Report: December 2021 / EIA, Short-Term Energy Outlook,
January 2022 / IEA, Oil Market Report: March 2022 **Price refers to the Greek System Marginal Price *FY 2021 Avg
026 BUSINESS ENVIRONMENT
027 ANNUAL REPORT 2021

€/$ EXCHANGE RATE subject to regular adjustments. The prospect of term growth in oil production, resulting in falling
Average 2021: 1.18 €/$ large-scale disruptions to Russian oil production global oil inventories. During 2021, Brent prices
and exports threatens to create a global oil supply reached their highest monthly average of $84/bbl
1.25
shock. According to IEA’s estimations, from April 2022 during October.
onwards, 3 mbd of Russian oil output could be at risk,
as official sanctions take hold and various buyers In terms of crude oil differentials, the Brent-WTI
1.2
are self-sanctioned. OPEC+ is, for now, sticking to its spread averaged $2.8/bbl in 2021, an increase of
agreement to increase supply by modest monthly 27% versus 2020 as global oil production growth
amounts. Saudi Arabia and UAE are effectively the lagged demand growth, driving prices higher, with
1.15
only producers holding substantial spare capacity the price of WTI following a similar pattern to Brent
that could immediately help offset a Russian shortfall. and averaging approximately $3/bbl less. Brent-Urals
spread in 2021 increased by $1.7/bbl, as Russia (along
1.1
Oil prices rose during 2021, with Brent crude oil with U.S.) led the production growth among non-
averaging $71/bbl in 2021 -the highest in the past OPEC countries, increasing the supply of high sulfur
three years-, up 68% vs 2020. Rising prices reflected crudes.
1.05 growth in global oil demand that outpaced near-

1
1/20 3/20 5/20 7/20 9/20 11/20 1/21 3/21 5/21 7/21 9/21 12/21

BRENT CRUDE OIL PRICES ($/BBL)

Average 2021: 71 ($/bbl)
Global demand growth for oil reached 5.7 mbd y-o-y in travel activity. Demand in Asian countries- 90
in 2021, bringing total global demand to 96.7 mbd. members of OECD was up by 0.25 mbd, strengthened
Within the year, demand adjusted higher than initially by a solid increase in demand for naphtha, especially 80
estimated amid better than initially anticipated for consumption in the petrochemical industry.
OECD transportation fuel consumption in 4Q21. In 70
2022, global oil demand is forecast to increase by 4.2 Global oil supply in 2021 increased by 1.34 mbd y-o-y.
mbd, to 100.8 mbd, although increased uncertainty OPEC’s crude oil production in 2021 increased by 0.7 60
remains regards to geopolitical developments and mbd y-o-y, at the same levels of increase with that of
their repercussions, the impact of the pandemic non-OPEC supply (+0.7 mbd), with most of the latter’s 50
COVID-19 new variants and the possibility of further increase stemming from the three largest non-OPEC
lockdown measures, the current inflation levels, producers: the US, Russia, and Canada. 40
supply chain bottlenecks, as well as ongoing
trade issues and their impact on industrial and After the initial production cuts by OPEC+ in April 30
transportation fuel requirements. 2020, in January, 2021, OPEC+ announced modest
production increases from Russia and Kazakhstan 20
Demand in Europe increased by 0.64 mbd and for the following months. OPEC+ has organized
in North America by 1.7 mbd, on resurgence of monthly meetings to assess global oil market 10
1/20 3/20 5/20 7/20 9/20 11/20 1/21 3/21 5/21 7/21 9/21 12/21
economic activity, ease in restrictions and recovery conditions and the group’s production targets are
028 BUSINESS ENVIRONMENT
029 ANNUAL REPORT 2021

BENCHMARK REFINING MARGINS 3 BRENT – URALS SPREAD ($/BBL)

Average 2021: 1.7 ($/bbl)

In 2021, global refining capacity fell for the first oil products’ demand in general and the gradual 4

time in 30 years, by 730 kbd, as new capacity was recovery of crude oil production and supply. Med
outweighed by refining closures. Benchmark margins benchmark cracking margin averaged $1.6/bbl 3
for Mediterranean refineries recovered significantly in in 2021, $1.8/bbl higher y-o-y and Med Benchmark
the 2H21, after historical lows (especially for cracking) Hydroskimming averaged $0.3/bbl, increased by $0.9/
2
in 2020, with the key drivers being the higher end bbl compared to 2020.

-1
MED BENCHMARK CRACKING MARGINS ($/ΒBL)
3.5
-2
3

2.5
-3
2 1/20 3/20 5/20 7/20 9/20 11/20 1/21 3/21 5/21 7/21 9/21 12/21

1.5

0.5

-0.5

-1
OIL PRODUCT CRACKS 4 5
-1.5
1H 2H FY

2020 2021 Gasoline, diesel and naphtha cracks were higher vs The key factor behind gasoline crack’s rebound
2020, while HSFO crack decreased y-o-y. Gasoline was the ease in mobility restrictions combined
crack averaged $9.5/bbl in 2021 ($3.9/bbl in 2020) and with low inventories. The diesel crack’s improved
diesel crack averaged $6.9/bbl in 2021 ($6.8/bbl in performance in 4Q21 was supported by the transport
MED BENCHMARK HYDROSKIMMING MARGINS ($/BBL) 2020). HSFO crack averaged $-10.6/bbl in 2021 vs $-7.8/ and agricultural sectors, in conjunction with the rising
3.5
bbl in 2020 and naphtha crack averaged $-1.8/bbl vs heating oil demand. Naphtha crack’s increase was
$-4.6/bbl in 2020. driven by stronger demand from the petrochemical
3
industry, due to the substitution of more expensive
2.5 raw materials (LPG). HSFO crack’s decreased
2
performance is partly attributed to increased medium
and heavy crude grades supply.
1.5

0.5

-0.5

-1

-1.5
1H 2H FY

2020 2021

4
Based on Brent prices
3
Source: Refinitiv, January 2022 5
ING, Refinery margins strengthen, October 2021
030 BUSINESS ENVIRONMENT
031 ANNUAL REPORT 2021

NAPHTHA
5

-1

-4

-7
2020

2021
-10
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

GASOLINE
20

16

12

4
2020

2021
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

DIESEL
20

16

12

4
2020

2021
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

HS FUEL OIL
0

-6

-12

-18

-24
2020

2021
-30
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
032 BUSINESS ENVIRONMENT
033 ANNUAL REPORT 2021

NATURAL GAS, ELECTRICITY TTF NATGAS PRICES (€/MWh)*

AND EUA PRICES 6 7 8 9 150

EU gas and electricity prices increased rapidly At the same time, EU carbon prices surged to an 120
to particularly high levels, with natural gas prices all-time high in December 2021 approximately €80/
quadrupling in early 2022 compared to last year. tn, with high carbon prices having an impact on the
There are various factors that have contributed to cost base for a wide range of operations, from power
90
the high energy prices in Europe, with the key driver generation to refining and aviation.
being the global natural gas price surge, due to the
significant increase in demand (which in turn is driven
60
by rapid economic recovery and weather conditions)
combined with tight supply and, in addition, since the
end of February 2022, due to the energy crisis that
further deteriorated after the military intervention 30

in Ukraine. North-East Asian and South American

liquefied natural gas (LNG) demand has grown
significantly, putting upward pressure on global prices 0
and leaving less gas available for imports into Europe. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2020 2021

ELECTRICITY PRICES (€/MWh)* EUA PRICES (€/T)*

250 100

200 80

150 60

100 40

50 20

0 0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2020 2021 2020 2021

6
Eikon, Refinitiv, 2022
7
Acer, High Energy Prices, October 2021
8
S&P Global: Commodities 2022: EU on collision course with shipping over carbon market reforms, December 2021
9
HTSO, Hellenic Transmission System Operator SA, January 2022 *monthly averages
034 035 ANNUAL REPORT 2021

GREEK MARKET 10 11 12 13

In 2021, the recovery of global economic activity disturbance will depend, inter alia, on the global and
continued at a high pace compared to 2020, which European monetary and fiscal response. The current
was mainly affected by the COVID-19 pandemic as geopolitical developments create serious supply
it disrupted the economies at a global level and disruption issues, which negatively affect production
weighed heavily on various activities, which also and entail upward pressure on energy prices, with
impacted the Greek economy. In Greece, the GDP the latter at risk of rising further in the immediate
growth rate in 2021 was stronger and higher than future, intensifying the existing energy crisis. At the
initial expectations. The ease of protection measures same time, the economic growth may still be affected
positively affected economic recovery and outlook, by the ongoing course of the pandemic and the
as well as international trade and prolonged the measures taken for its suppression.
tourist period until November, resulting in a sizeable
output expansion as shown by 8.3% increase in GDP Domestic fuel demand in 2021 amounted to 6.4m ΜΤ,
for 2021 (vs -9% in 2020). This increase is one of the according to preliminary official data, a 1.5% increase
highest in Europe and to a large extent reverses the compared to 2020, but still lagging 2019 respective
deep recession that preceded it. The strong recovery volumes by 7%, as the increase in auto-fuels demand
is largely based on an increase in consumption which by 6.6%, (+7.2% for diesel and +6.7% for gasoline) due to
is accompanied by a strong rise in goods and services mobility restrictions lift, was partially offset by a 17%
exports, as well as a decrease in unemployment. decline in the consumption of heating oil, as a result
of milder weather conditions.
For 2022, the initial estimate expected strong growth
at 4.5-5%, taking into account the economy’s
dynamics, before the developments of 24 February,
when the Russian Federation launched a military
invasion in Ukraine. Since it is unknown when and
how the Ukrainian crisis will be resolved, Bank of
Greece in a new estimate in April 2022, expects GDP
growth of 3.8% in the baseline scenario and 2.8% in
the adverse one. The intensity of the new serious

In Greece, the GDP growth rate

in 2021 was higher than initially
expected

10
Sources: IOBE, 3 Months Report on Greek Economy, Issue 4th / 2021, January 2022
11
OECD Economic Outlook, Volume 2021, January 2022
12
EC, European Economic forecast, Winter 2022, February 2022
13
Bank of Greece, Governor's Annual Report 2021, April 2022
036 BUSINESS ENVIRONMENT
037 ANNUAL REPORT 2021

COVID-19 PANDEMIC IMPACT, RESPONSE MEASURES Since December 2020, the Group has been granted to vaccination programs and the development
the certification "CoVid-Shield" by TÜV AUSTRIA of new drugs-, which are visible as early as 2021.
Hellas, at Excellent level, for its industrial facilities and According to initial estimations, in 2022, the demand
The COVID-19 pandemic, which emerged in 1Q20, Accounting Standards Board (“IASB”), as endorsed by offices, in all the countries in which it operates. for petroleum products vs 2021, was expected to
impacted and continued to affect the international the European Union. increase even more, globally and also in our country,
economic activity, oil industry and capital markets In addition, throughout the network of EKO and BP with a positive impact on the Group's results. In each
through 2021, but to a lesser extent (see further In this environment, the Group’s main priorities gas stations, information has been sent about the case, it is not possible to estimate the evolution
analysis of the macroeconomic environment in continue to be the safety of its staff and associates at Group’s Unified Policy, regarding the implementation and impact of the geopolitical upheavals in the
section “Macro Environment and Petroleum Industry”). its facilities, the smooth operations and the seamless of recommendations and precautions for the future, as well as the course of the recovery, as it is
supply of the market. protection of customers and staff of gas stations, defined by drivers that the Group cannot influence,
The roll out of vaccinations in the beginning of the while all Group companies have set up Crisis such as: outcome of military and political decisions
year, as well as, the measures taken to confront the The Group responded immediately to the outbreak Management Committees and issued protection in Europe and worldwide, international oil prices,
global health crisis, contributed to the recovery of the pandemic COVID-19 and has taken various or emergency plans, following the provisions of the benchmark refining margins, euro/dollar exchange
of production, consumption and services activity initiatives, primarily focusing on ensuring the health Group's unified Policy. At the same time, in order to rate, domestic and regional demand, development
and led to a significant and steady increase in oil and safety of its employees and all of its stakeholders, prevent the transmission of COVID-19, preparedness and effectiveness of the vaccination program
product demand, crude prices and refining margins, as well as the smooth operations of its activities exercises are carried out at the refineries, head offices globally, any new mutations and resurgence of the
mainly in 2H21, benefiting the financial results of the and the uninterrupted supply of its markets. These and marketing and distribution facilities; furthermore, pandemic, the impact of the fiscal and monetary
Group, which exhibited an increase in comparable priorities continue to this day and are adapted on a individual protection measures are applied, as well policy measures, etc. The competitive asset base,
profitability, as presented in the financial statements, data-dependent basis and following the instructions as, stricter procedures, such as, during the interaction logistics infrastructure, strong operating performance
prepared in accordance with International Financial of the competent authorities. between the port’s staff and the ship’s crew members. and adequate financial liquidity are competitive
Reporting Standards (IFRS), issued by the International advantages that will allow the Group to continue
As the evolution of the pandemic continues its successful course and the implementation of its
through mutations that result in cases increase, in program "Vision 2025".
Greece and globally, the effects are expected to
continue into 2022 but with improved outlook -due

Group’s main priorities are the health

and safety of its employees and the
smooth operation of its activities for the
uninterrupted supply of its markets INFORMATION SYSTEMS AND
COVID-19 MANAGEMENT

The outburst of the COVID-19 pandemic in the The main measures adopted are shown below:
beginning of 2020 and the need for remote work • Implementation of Multifactor Authentication (MFA)
These initiatives include: and implementing procedures for handling any triggered increased demand for remote access in every aspect of remote access
suspected COVID-19 cases. to information systems at unprecedented levels,
• Installation of Encryption for all Laptops
• Adopting a timely and successful new remote • Continuously keeping employees up to date, along with teleworking being successfully adopted and
adjusted accordingly, based on the instructions of • Implementation of Antimalware/Antispyware End
working model (teleworking) where possible, with ongoing health support (increase of its medical Point Protection for all PCs and Laptops
remotely-supporting information systems and network, participation of an infectious disease the Authorities, for the year 2021. The investments in
technological equipment that had been implemented • Distribution of security awareness material and
modifying shift programs. specialist, psychological support line, regular
to allow for seamless remote work, continued where remote working best practices quarterly booklets
• Utilizing digital technology and upgrading publication of special newsletter).
deemed necessary. In parallel, a number of initiatives • Establishment of security awareness platform for
teleworking infrastructure. • Conducting in total over 206,000 PCR and rapid
were launched to strengthen the IT infrastructure users to be informed about threats, risks and best
• Drafting a Policy with frequent revisions based tests as a pre-emptive health protection tool for the
and communications, increasing user awareness practices of using IT infrastructure
on developments and instructions from the State, Group’s employees and associates in 2021.
in the areas of cyber security and optimal use of IT
addressing how to prevent and manage issues • Regular disinfection in all workplaces and infrastructure.
arising from the COVID-19 pandemic, including distribution of appropriate personal protection
detailed prevention guidelines and testing equipment (PPE).
response under various scenarios, planning
 Business
Review

The improvement of our operational

performance and profitability, with
increased production and exports in a
challenging international environment,
is the result of the continuous effort to
enhance our competitiveness
040 BUSINESS REVIEW
041 ANNUAL REPORT 2021

2021 Financial
Review
Following a weak refining environment in 1H21, the The domestic Fuels Marketing business (EKO and KEY FIGURES FOR 2021
Group managed to benefit from improving conditions BP brands), was positively affected by the gradual
in 2H21 and recorded increased production and sales market recovery and the successful introduction of € million 2021 2020
volume for the year, with the exports reaching the differentiated fuels in the petrol stations network,
Turnover 9,222 5,782
second highest reported in the Group’s history. Along while sustaining the Company’s leading position in
Adjusted EBITDA 401 333
with a particularly strong performance at the Group’s retail, industrial fuels, aviation, as well as bunkering. In
Inventory effect* -308 525
petrochemicals division, the Group’s Adjusted EBITDA addition, there was a further increase of differentiated
amounted to €401 million in 2021 (2020: €333 million) fuels (98 & 100 octane gasoline, diesel) in the share of Special items* 52 62
and the Adjusted Net Income reached €144 million total fuel sales at petrol stations. EBITDA 657 -253
(2020: €5 million), also benefiting from lower financial Adjusted Net Income 144 5
expenses compared to 2020. The Reported Net Income in 2021 amounted to €341 Net Income 341 -397
million, the second highest in the Group’s history, Capital Employed 4,067 3,521
Despite the adverse conditions, the operational reversing last year’s losses of €397 million, as crude Net Debt 1,938 1,672
performance of the Group’s refining division was oil prices recovered significantly from the historical Gearing Ratio 48% 47%
satisfactory. The production volume increased to lows recorded in 2020, with EBITDA amounting to €657
14.4 million tons (+4%), with sales volume reaching million. *gains are recorded with a negative sign and losses with a positive sign
15.2 million tons (+6%). During the year, once again,
the Group was able to capture crude oil pricing
opportunities in the Med market and benefited from
supply optimization, refinery availability and demand
recovery, offsetting higher energy and EUA costs.

Petrochemicals recorded a record-high profitability,

reporting €131 million in Adjusted EBITDA, on account
of increased vertical integration between the
52%
propylene unit at the Aspropyrgos refinery and the financial cost reduction
petrochemical plant in Thessaloniki and by taking in the last 5 years
advantage of the strong polypropylene margins.

LIQUIDITY & CASH FLOWS

Improved results

€401 million During 2021, the Group improved its liquidity despite
the adverse environment.
at €96 million, 8% lower y-o-y, having recorded an
almost 52% decline in the last five years, as a result of
Adj. EBITDA the successful implementation of the Group’s financial
On 14 October 2021, the Group repaid the remaining planning. At the same time, the Group will review
€201 million bonds with 4.875% yield, through its capital structure along with any opportunities in
available cash, which had a substantial positive the international markets, following the corporate
effect on the finance costs and led to a further restructuring completion.
significant reduction of finance cost, which came in
042 BUSINESS REVIEW
043 ANNUAL REPORT 2021

FINANCIAL COST 2021

€
250

-52%
200
€401 €657 €144 €341
million million million million
150
Adjusted EBITDA Adjusted Net Net
EBITDA Income Income

100

50
€9,222 8%
million Financial Cost
0
Total Reduction
2016 2017 2018 2019 2020 2021
Sales 2020-2021

Net Debt for 2021 amounted to €1.9 billion, in line with the Group’s strategic objectives,
with the Gearing Ratio (Net Debt / Capital Employed) at 48%.

14.4 15.2 9 59%

million MT million MT million MT
Exports
Refineries’ Refineries’ Petroleum
over Total
Production Sales Products’
Refineries
Exports
Sales
+4% +6% +2%
repayment of

€201 million
Eurobond
1,996 30
Total Petrol Petrol Stations with
Stations (Greece Electromobility
and abroad) Services in Greece
044 BUSINESS REVIEW
045 ANNUAL REPORT 2021

Business MEDITERRANEAN BENCHMARK REFINING (FCC AND HYDROCRACKING)

MARGINS ($/Bbl)

Activities
8

PETROLEUM PRODUCTS 4

REFINING, SUPPLY AND TRADING 2

1
In Greece, the Group owns and operates three total refining capacity and operate storage facilities
refineries in Aspropyrgos, Elefsina and Thessaloniki, for crude oil and petroleum products of a total 0

which account for approximately 65% of the country’s capacity of 6.65 million m³. -1

-2
2017 2018 2019 2020 2021

FCC Hydrocracking

THE THREE REFINERIES AND THEIR INDIVIDUAL TECHNICAL CHARACTERISTICS Furthermore, the energy crisis that mostly affected Despite these unfavorable conditions, the Group's
Europe, resulted in significantly higher natural gas and refineries maintained high levels of operation, with
Refinery Daily Annual Refining Nelson electricity prices, negatively impacting the operating production increasing to 14.4 million MT from 13.8
Refining Refining configuration Complexity
cost of the refineries. million MT in 2020.
Capacity Capacity Index
(Kbpd) (million MT)

Aspropyrgos 148 7.5 Cracking (FCC) 9.7

Elefsina 106 5.3 Hydrocracking 12
Thessaloniki 90 4.5 Hydroskimming 5.8
€14.4 million MT
Production

The Group’s three coastal refineries operate as a profitability vs benchmark margins throughout the PRODUCTION (ΜΤ’000)
single, unified system. Crude oil purchases, production economic cycle.
scheduling and sales forecasting are conducted for 16,000
the Group’s refining system on a centralized basis, The benchmark margins for Mediterranean refineries,
with the objective of optimizing profitability, while recovered from the historical lows of the 1H21, 14,000
considering prevailing (Eastern Mediterranean/ recording a significant increase in the 2H21, due to
South Eastern Europe) crude oil and product prices increased demand following the growth of economic 12,000
as well as domestic demand trends. The enhanced activity. More specifically, FCC benchmark margins
refining complexity, which allows for flexibility in the in 2021 averaged $3.7/bbl (2020: $1.3/bbl), while 10,000
crude slate process and advanced conversion of hydrocracking margins averaged $2/bbl (2020: $1.1/
intermediate products (SRAR, VGO), represents a key bbl). 8,000
competitive advantage for the Group, improving
6,000

4,000

2,000
2017 2018 2019 2020 2021
046 BUSINESS REVIEW
047 ANNUAL REPORT 2021

The refineries' operations resulted in 48.1% yield for The percentage of intra-refinery transfers of The Aspropyrgos refinery began implementing the Furthermore, the Aspropyrgos refinery following
middle distillates (jet, gasoil and diesel) vs 50.2% in intermediate products and raw materials among IMO production standards in November 2019, in order the units conversions of the gasoline blending
2020 and 21.3% gasoline yield (20.3% in 2020). Overall, the three refineries exceeded 12%, contributing to to respond to the changes in the market and to components, meets the obligation to supply E5
the production yield of high value-added products operational optimization in production, logistics and ensure its supply with clean fuels retaining its flexibility gasoline in the domestic market, without any
amounted to 80%, among the highest in the European trading. to respond to market conditions. bioethanol addition, improving the quality and
refining industry, while fuel oil production came in at environmental footprint of the final product and
8.9%, reflecting the Aspropyrgos refinery’s operational substituting the hitherto imports.
optimisation.

HELPE REFINING SYSTEM OVERVIEW*

Crude High 5%
supply
27% value 12%
flexibility product FINANCIAL DATA AND KEY OPERATIONAL INDICATORS
yields 21%
9%
Financial Results (€ million) 2021 2020
Sales 8,079 4,893
LPG Adjusted EBITDA 161 187
Naphtha/Other Performance Indicators
Gasoline 55%
HELPE refineries’ reference system margin $2.1/bbl $0.8/bbl
Low sulphur ΙΜΟ
64% Middle Distillates
Sales Volumes (ΜΤ’000) 15,199 14,397
Low sulphur 17 million MT ΙΜΟ FO
Gross production 5%
High sulphur HSFO 2%
NCI: 9.4
*pro-forma in normal IMO mode

CRUDE OIL SUPPLY

Energy efficiency is a main pillar our strategy the turnaround at the Elefsina refinery for catalysts
regarding the refining business, with sustained replacement was completed safely and successfully. Crude oil supplies are centrally coordinated through The ability to access and the flexibility of the Group’s
efforts to improve the relevant indicators. In 2021, term contracts and spot transactions. refineries to process a wide range of crude oil types
constitute one of its main competitive advantages,
Due to the COVID-19 pandemic and its negative proved to be particularly important, both in terms of
impact on global demand for petroleum products, profitability contribution and offering the ability to
especially in 1H21, OPEC+ continued its policy of respond to sharp supply shortages of specific types
IMO OPERATIONAL MODEL ASPROPYRGOS REFINERY reduced crude oil production and exports, which, of crude oil, thus ensuring the uninterrupted supply of
combined with ongoing US sanctions on Iran and the markets where the Group operates.
Venezuela, resulted in lower global supply compared
with 2019. HELLENIC PETROLEUM adjusted its crude
ΙΜΟ Gasoline +Middle distillates
mix, reflecting regional crude oil economics. As a
Crude oil +IMO FO
result, the main sources of crude supply in 2021 were
Kazakhstan (23%), Iraq (22%) and Russia (20%), followed
by Egypt (8%), Saudi Arabia (8%), Algeria (8%), Libya
(6%), Norway (3%) and Azerbaijan (2%).
Existing
feed HSFO
048 BUSINESS REVIEW
049 ANNUAL REPORT 2021

CRUDE OIL SUPPLY

15.2 million MT
Total sales
22% 2%
Iraq Azerbaijan

20% 8%
Russia Egypt
2021
23% 6%
Kazakhstan Libya

8% 3% WHOLESALE TRADING (REFINED PRODUCT SALES)

Algeria Norway
Oil products sales are carried out towards the increased by 2% to 9 million MT, the second highest
8%
S. Arabia fuels marketing companies in Greece, including level in the Group’s history, accounting for 59% of total
the subsidiary EKO ABEE, as well as to certain sales in 2021, maintaining the Group's position as one
special customers, while approximately 50%-60% of the most export-oriented in the region.
of production is exported. All of the Group’s refined
products comply with applicable European standards As a result, in 2021, the total sales of products and
(Euro VI). goods produced by the Group's refineries increased
by 6% to 15.2 million MT.
13% 8% During 2021, due to the gradual recovery of the fuels
Iraq Azerbaijan demand in the 2H21 and the significantly higher
tourist traffic, the domestic market sales increased
25% 7% by 2% y-o-y to reach 4.1 million MT, with ground fuels
Russia Egypt
2020 reaching 2019 (pre-COVID-19) levels.
22% 4%
Kazakhstan USA Aviation sales amounted to 517 thousand MT,
recording a 96% increase. Marine fuels volumes were
11% 1% also higher by 18%, reaching 1.6 million MT. Exports
Algeria Other

9%
S. Arabia

Exports at

9 million MT
second highest level in the
The percentage of intra-refinery transfers of intermediate Group’s history
products and raw materials between the three refineries
exceeded 12%, contributing to operational optimization
in production, logistics and trading
050 BUSINESS REVIEW
051 ANNUAL REPORT 2021

SALES PER TRADE CHANNEL (ΜΤ’000) Petrochemical activities mainly focus on the Based on its financial contribution, the propylene-
propylene-polypropylene-BOPP value chain. The polypropylene-BOPP value chain represents the
18,000 Aspropyrgos refinery, through its splitter unit, produces main activity for petrochemicals. Export activity is
propylene, which covers about 80-85% of the raw particularly important, as in 2021, 68% of sales volumes
16,000 material needs of the Thessaloniki polypropylene were directed towards Turkey, Italy, the Balkans and
plant. The Group’s petrochemical complex, located the Iberian Peninsula, where they are used as raw
14,000 at the Thessaloniki refinery, also produces solvents materials in a range of manufacturing applications.
and inorganics, with its output being directed to the
12,000 domestic and other Mediterranean markets.

10,000

8,000

6,000
68%
4,000
of petrochemicals sales
volumes are exported
2,000

0
2017 2018 2019 2020 2021

In 2021, the reduced global supply of petrochemicals, with 2020 levels, and the slightly increased production
Exports Domestic (Ground fuels) Aviation & Bunkering
especially in the 1H21, the particularly high demand of propylene at the Aspropyrgos Refinery, contributed
on periodic basis, in combination with the additional to the increased profitability, ending the year 2021
supply chain costs due to the effects of the COVID-19 with a record contribution from the Petrochemical
pandemic and the energy crisis in the 2H21, intensified division, recording Adjusted EBITDA of €131 million.
the delivery delays and affected the business
environment of polypropylene. Nevertheless, the It is worth noting that in 2022, the new cast film
strong benchmark polypropylene margins, combined production line at the BOPP plant in Komotini is
with the polypropylene production, which was at par expected to start operating.
OKTA FACILITIES
The Group owns and operates the OKTA facilities companies, as well as exports to neighboring Balkan
in Skopje, which are connected to the Thessaloniki markets.
refinery through a pipeline transporting high value-
added products (e.g. diesel). The refinery’s location is In 2021, OKTA’s sales amounted to 763 thousand MT,
one of its significant competitive advantages for the +15% y-o-y.
domestic distribution of products through marketing

15-20%
Imports 90%

PRODUCTION AND TRADING OF PETROCHEMICALS 80-85%

FINANCIAL DATA AND KEY OPERATIONAL INDICATORS: Propane Propylene PP BOPP

Financial Results (€ million) 2021 2020 10%

Sales 379 248
Adjusted EBITDA 131 61
Performance Indicators
Aspropyrgos Thessaloniki PP plant Domestic and
Sales Volumes (ΜΤ ΄000) – Total 275 272 Splitter (240 kt) International market
International Polypropylene Margin (€/ΜΤ) 717 387
052 BUSINESS REVIEW
053 ANNUAL REPORT 2021

PETROCHEMICALS SALES (ΜΤ’000) FUELS MARKETING

300
HELLENIC PETROLEUM Group is active in the The Group takes advantage of the significant
marketing and distribution of petroleum products, synergies among its networks in Greece and SE
both in Greece, through its subsidiary ΕΚΟ ABEE, Europe in the areas of marketing and commercial
250 as well as internationally, through its subsidiaries policy, through sharing best practices and successful
in Cyprus, Bulgaria, Serbia, Montenegro and the products.
Republic of North Macedonia.
200

150

FINANCIAL DATA AND KEY OPERATIONAL INDICATORS

100

Financial Results (€ million) 2021 2020

Sales 2,918 1,986
50
Adjusted EBITDA 120 97
Performance Indicators
0 Sales Volumes (ΜΤ ΄000) – Total 4,282 3,944
2017 2018 2019 2020 2021
Sales Volumes (ΜΤ΄000) – Greek network 3,366 2,966
No. of petrol stations – Greece 1,682 1,703
ΒΟΡΡ Film Polypropylene Other No. of petrol stations – International (includes OKTA brand PSs) 314 315

DOMESTIC MARKETING
POLYPROPYLENE, PROPYLENE & PROPANE PRICE
EVOLUTION 2020-2021 (€/ΜΤ) In Greece, the Group’s business comprises a network industry resulted in a +11.3% y-o-y increase in the
2350 of over 1,600 petrol stations operating under the EKO consumption of marine fuels.
and BP brands, 15 bulk storage and supply terminals,
2150
24 aircraft refueling stations located at the country’s In 2021, EKO Unleaded 98-octane gasoline was
1950 main airports, 2 LPG bottling plants and 1 lubricant launched in the EKO petrol stations, which further
production and packaging unit. increased the share of differentiated fuels in the total
1750 sales mix (98 & 100 octane gasolines, premium auto
The COVID-19 pandemic continued to affect the diesel) and contributed to the automotive fuels sales.
1550
domestic fuels’ consumption especially during the first Concurrently, the market share in the gasoline and
1350 five months of the year when strict mobility restrictions auto diesel market increased and the leading position
were imposed. From June onwards, the market in aviation and marine fuels was sustained.
1150
gradually recovered with significant contribution from
950 the increased tourist traffic. In the Greek market, in The emphasis on the development of a company-
2021, gasoline consumption increased by 6.7% y-o-y operated network – which currently comprises
750
and auto diesel consumption by 7.2%. The significant over 220 service stations – and the improvement
550 increase in tourism traffic resulted in the recovery of of services continued, along with the enhanced
aviation fuels’ consumption (+90% y-o-y) while the cooperation with selected suppliers, supermarket
350 increase in coastal shipping and the cargo shipping chains, cafes and restaurants.
activity, as well as the gradual recovery of the cruise
150
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21

Polypropylene Propylene Propane

054 BUSINESS REVIEW
055 ANNUAL REPORT 2021

The Group has an agreement with BP plc for the

exclusive use of BP's trademarks for ground fuels in
Greece until the end of 2025.

Throughout the pandemic and despite the

unprecedented circumstances, EKO maintained the
safe and continuous operation of its facilities and the
supply of all market segments.

DOMESTIC MARKETING SALES (ΜΤ’000)

4500

3750

3000

2250

1500

750

0
2017 2018 2019 2020 2021

Retail C&I Aviation & Bunkering Other

056 BUSINESS REVIEW
057

INTERNATIONAL INTERNATIONAL MARKETING SALES (ΜΤ’000)

MARKETING 1200

300+
The Group’s international business operates
The Group’s international business operates
through its subsidiaries in Cyprus, Bulgaria, Serbia, through its subsidiaries in Cyprus, Bulgaria,
1000
Montenegro and the Republic of North Macedonia. Serbia, Montenegro and the Republic of
North Macedonia, with a total network of
With a total network of over 300 petrol stations.
In Cyprus and Montenegro, the local subsidiaries hold 800
stations over 300 petrol stations.

leading positions in their markets.

In Bulgaria and Serbia, the Group’s subsidiaries 600

recorded rapid growth after 2005 and are currently

amongst the top five companies in their sector.
400
In the Republic of North Macedonia, the network of
27 petrol stations bears the brand name of the OKTA
(Group subsidiary).
200

In response to the COVID-19 pandemic, the mobility

restriction measures, were extended throughout 2021.
However, the gradual recovery of demand and the 0

subsidiaries’ improved performance, resulted in higher 2017 2018 2019 2020 2021

profitability for 2021, reaching pre-pandemic levels.

Moreover, the Group ensured the smooth supply of the
market, while the investment program continued as
planned. INTERNATIONAL MARKETING EBITDA CONTRIBUTION
(€ MILLION)
• In Cyprus, the increase in sales compared to
70
the previous year, led to a significant increase
in profitability. In 2021, the Group entered into a
joint agreement with other oil companies for the 60
construction of a new LPG terminal.
• In Bulgaria, the increase in profitability compared to
2020 was attributed mainly to the increase in other 50

income as well as the significant increase in retail

volumes.
40
• In Montenegro, the increase in sales was much
higher due to the significant economic recovery
compared to 2020. The investment program for the 30
reconstruction of existing petrol stations continued
in line with the schedule.
• EKO Serbia increased its profitability due to the 20

55 44 27 91 97
increase in retail volumes and mini market sales
(NFR), which fully offset the decrease in retail
margins. 10

0
Stations Stations Stations Stations Stations
2017 2018 2019 2020 2021
ΕΚΟ Serbia Jugopetrol OKTA ΕΚΟ Bulgaria HELPE Cyprus

Cyprus Bulgaria Serbia Montenegro Serbia Montenegro R.N.M Bulgaria Cyprus

058 BUSINESS REVIEW
059 ANNUAL REPORT 2021

ELECTROMOBILITY SERVICES
ELPE Future, a 100% subsidiary of the HELLENIC Infrastructure Operator and as a Transaction
PETROLEUM Group, operates in the new market as a Processing Agent.
Provider of Electromobility Services, as a Charging

30 50 kW fast chargers at petrol

stations across the country
/ aim for further development of
charging network with a total of 65
fast chargers and 30 AC units

ElpeFuture has completed the first-stage deployment • Thirty 50 kW fast chargers operate at CALYPSO (EKO
of its fast-charging network, with 30 operational & BP) fuel stations, at motorway service stations and
fast chargers at petrol stations across the country. urban-type fuel stations. Seven charging points of
Additionally, ElpeFuture ChargenGo mobile app 22 kW power operate in the car parking stations of
was launched, including services for both ad-hoc two large shopping malls in Athens and Thessaloniki
and registered users with 24/7 support services for and another eight 22 kW chargers operate at the
charging point operators, as well as, for end users. parking areas of the headquarters’ offices and the
The company aims to consolidate its positioning refineries’ administration buildings.
in the fast-charging market and further develop • The licensing process for the installation of fast
the charging network at petrol stations with a total chargers at EKO & BP fuel stations throughout the
number of 65 fast chargers and 30 simple-charger country is ongoing.
units. At the same time, it targets the expansion of
its network through B2B collaborations and new
agreements with car manufacturers for the provision
of electromobility services.
060 BUSINESS REVIEW
061 ANNUAL REPORT 2021

RENEWABLE ENERGY SOURCES (R.E.S.) In parallel, the acquisition of 38 MW operating wind HELPE Renewables follows the Group’s Safety and
farms in the area of Evia and of 2 PV parks, with total Environment (S&E) procedures with regards to
HELLENIC PETROLEUM RENEWABLE ENERGY SOURCES energy portfolio and contributing to offsetting its capacity of 16 MW in Viotia, was completed. Finally, compliance, reporting, risk and accidents prevention
S.A. (HELPE Renewables) was founded in 2006 and is greenhouse gas emissions through reaching >1 GW of HELPE Renewables continues to assess investments and management, both, during the construction
a fully owned subsidiary. HELPE Renewables plans to operating capacity by 2026 and 2 GW by 2030. in net-metering at the Group’s facilities, which are phase and the operation. An S&E engineer is
develop significant renewable capacity in the next connected to the LV and MV networks. appointed for each new project with the responsibility
few years, leading to diversification of the Group’s to monitor relevant issues, supervise works and the
S&E licensing stage, validity term and potential
renewals.

Plan to reach 1 GW of installed 204 MW new PV project in Kozani

capacity by 2026 completed, one of the largest in Europe

The following stations are in operation: During 2021, the construction works were successfully
• 1 PV park of 204 MW capacity in Kozani. implemented and at the end of the year, the
mechanical completion of the individual PVs was
• 8 PV parks located at various Group sites, including
achieved, according to the schedule, while its
all 3 of its refineries, with a total nominal capacity of
connection to the network was realized during the
21 MW.
first months of 2022.
• PV park clusters with a total capacity of 16 MW in
Viotia. The project’s total installed capacity reaches 204 MW,
• Wind farms with a total capacity of 44 MW in Evia making it one of the largest RES plants both in Greece
and Messinia. and in Europe. Its annual electricity generation is
• 17 PV net-metering systems totaling approximately estimated at around 350 GWh, which is sufficient
270 kW, installed at EKO and BP fuel stations. to power 75,000 homes with zero-emission energy,
leading to a CO2 emission avoidance of over 90,000
More than 2 GW of projects, mainly PV, wind and tons p.a..
energy storage are currently in various stages of
development, including the Kozani PV project (204 The total investment exceeds €130 million and
MW), which was inaugurated on April 6, 2022. Based significantly benefits the regional economy, in
on the above, HELPE Renewables’ total installed Western Macedonia, Greece. More than 35% of the
capacity amounts to 285 MW. equipment, materials and labour are sourced from
Greece, while over 300 jobs have been created during
On February 17, 2020, HELPE signed an agreement the construction phase. Finally, dozens of direct and
for the acquisition and construction of a PV park indirect jobs will be created during operation, that will
at the broader area of Kozani with the German RES be mostly covered by the local community. Moreover,
developer and contractor JUWI. The transaction the implementation of the Stakeholder Engagement
was completed on October 1, 2020, and the project’s Plan ensures that the negative impact on the local
construction started in November 2020. community will be minimized.
062 BUSINESS REVIEW
063 ANNUAL REPORT 2021

POWER GENERATION AND TRADING GREEK ENERGY MIX

The Group is active in the production, trading and In addition, RAE has granted ELPEDISON S.A. with a 100%
supply of power in Greece through its participation power generation license for a new 826 MW combined
(50%) in Elpedison B.V. (the remaining 50% is held by cycle gas fired plant at Thessaloniki.
EDISON International).
80%

ELPEDISON S.A. is currently the second largest

independent power producer in Greece with a total
installed capacity of 840 MW (comprising a 420 MW 60%
plant in Thessaloniki, in operation since 2005 and
a 420 MW plant in Thisvi, in operation since 2010).

40%

20%

840 MW 6.1% 0%
2020 2021

ELPEDISON total ELPEDISON’s

Lignite Natural Gas Hydroelectirc RES Imports
installed capacity Market Share

ELPEDISON S.A.'s results in 2021 improved compared In the retail power market, the intense competition
to the same period in 2020, with the contribution to among alternative electricity providers continued into NATURAL GAS
the Group amounting to €26 million vs €7 million in 2021. In this environment, the Company's market share
2020, as demand in 2021 returned to pre-COVID-19 increased, reaching 6.1% (compared to 2020: 4.7%, The Group is currently active in the natural gas sector DEPA Infrastructure
levels, at 52.3 TWh, up by 4.7% y-o-y. source: Greek Energy Exchange) with an expansion through its participation in DEPA Commercial S.A. • medium and low-pressure natural gas distribution
of the customer base in Low and Medium Voltage and DEPA International Projects S.A. (35% HELLENIC
The Greek wholesale market during 2021 was driven (residential and industrial customers). ELPEDISON was PETROLEUM, 65% HRADF), whereas during 2021, the In 2021, DEPA Infrastructure and DEPA Commercial
by intense volatility with significant price increases. supplying approximately 300,000 customers at the Group also participated in DEPA Infrastructure S.A.. were under a privatization process.
The main reasons were the gradual withdrawal of end of the year, with sales of around 3 TWh for 2021. The aforementioned companies emerged in 2020,
lignite plants, the sharp increases in the prices of CO2 after the completion of the former DEPA Group’s During the year, domestic natural gas consumption
emission allowances (2021: €53/tn vs 2020: €25/tn) due Finally, in 2021, ELPEDISON further improved its corporate transformation. They are mainly active in: increased by 11% compared to the same period of
to the revised EU targets, as well as the cost of natural position in the natural gas supply market, expanding last year (domestic consumption in 2021 at 6.0 bcm),
gas, which followed a particularly upward course its customer base, mainly in the regions of Attica, DEPA Commercial mainly due to increased demand from electricity
throughout the year. Thessaloniki and Thessaly and thus, enhancing • import of natural gas through long-term contracts producers. Despite high natural gas prices, the
its commercial development as an integrated and spot cargoes electricity generation, covered the largest part of
In this volatile environment, the Company successfully energy provider. The Company continued to import • supply of natural gas to large scale consumers domestic demand in 2021, i.e. 68.7%, an increase of
utilized the opportunities presented due to the market significant quantities of LNG through DESFA's terminal (power generation plants, industries and natural gas 3.7% compared to 2020. Enhanced consumption was
developments, optimizing its energy portfolio. The in Revythousa, part of which were directed into the supply companies) also recorded by domestic consumers and businesses
performance improvement of ELPEDISON's existing wholesale and retail markets. • natural gas supply through ΕPA Attiki to small and through distribution networks, compared to 2020.
plant in Thessaloniki, also had a positive impact, medium scale consumers
following its upgrade from 400 MW to 420 MW, an The rapid increase in natural gas prices in 2021 and,
investment of €20 million. DEPA International Activities in particular, of Liquefied Natural Gas (LNG), mainly
• international gas transportation projects due to limited availability in global markets combined
with the sharp increase in demand, led to a 24%
064 BUSINESS REVIEW
065 ANNUAL REPORT 2021

decrease in LNG imports at the Revithoussa terminal. despite the higher gas supply prices, they increased DEPA INFRASTRUCTURE PRIVATIZATION PROCESS
These quantities were offset by gas imports through their contribution to the profits of the HELLENIC
pipelines. PETROLEUM Group compared to 2020, amounting to In December 2019, HRADF S.A. invited interested In September 2021, the Boards of Directors of the
€53 million. parties to submit expressions of interest for their sellers, HRADF and HELPE, proceeded with unsealing
All of the above events, positively affected the results participation in the international bidding process the binding financial offers, and declared Italgas
of DEPA COMMERCIAL and DEPA INFRASTRUCTURE. for the acquisition of 100% of the share capital of the S.p.A. as the Preferred Investor, accepting a financial
The Companies recorded higher sales volumes and company "DEPA INFRASTRUCTURE S.A.", together with offer of €733 million for 100% of the share capital
HELLENIC PETROLEUM. of the company "DEPA INFRASTRUCTURE S.A.".
The corresponding consideration for HELLENIC
In June 2020, the first phase of the selection of PETROLEUM Group amounts to €256.5 million.
prospective investors was completed, with six (6)
investment schemes qualifying to participate in the On December 10, 2021, the Share Purchase Agreement
next phase of the tender. was signed, with the completion of the transaction,
which is expected within 1H22, subject to the
DEPA SALES VOLUMES (BCM) Following the customary due diligence process, on approvals of competition and regulatory authorities.
July 15, 2021, the sellers received 2 binding offers from
4.0
the investment schemes (1) EP Investment Advisors
and (2) Italgas S.p.A..
3.5

3.0

2.5

2.0 DEPA COMMERCIAL PRIVATIZATION PROCESS

In January 2020, HELLENIC PETROLEUM signed a In March 2021, for reasons related to the
1.5
Memorandum of Understanding (MoU) with the unconstrained implementation of the Tender
HRADF S.A., regarding HELPE’s participation in the Procedure, HRADF decided to suspend the Binding
1.0 international tender process to be conducted by the Offers Phase of the Tender, as of today. After the
HRADF for the sale of the Fund’s stake (65%) in DEPA end of the suspension period, HRADF will inform the
0.5 Commercial S.A.. candidate investment schemes about the next stages
of the tender procedure.
0 In January 2020, following the invitation of HRADF S.A.,
2020 2021 interested parties submitted expressions of interest The sellers HRADF and HELLENIC PETROLEUM are
for their participation in the international tender for in the process of reviewing their options on DEPA
the acquisition of 100% of the share capital of the COMMERCIAL.
company "DEPA COMMERCIAL S.A.". In June 2020,
seven (7) investment schemes qualified to participate
in the next phase of the tender, including HELLENIC
PETROLEUM in a joint venture with EDISON S.A., and
proceeded to the due diligence process.

Domestic Natural Gas

consumption increased by 11%
066 BUSINESS REVIEW
067 ANNUAL REPORT 2021

EXPLORATION AND PRODUCTION ENGINEERING

The Group is active in the field of hydrocarbon • The Group has a 50% working interest, as Operator, ASPROFOS, a Group subsidiary, is the largest Greek ASPROFOS supports investments in the fields of
exploration and production. In 2021, the main activities through HELPE Patraikos in a Joint Venture with engineering firm and energy consulting services refining and natural gas through the provision of
of the Group focused on Greece and are presented ENERGEAN International E&P S.p.A. (50%) in the provider in South-Eastern Europe. It operates in a broad range of technical, project management
below: offshore block of ‘Patraikos Gulf (West)’, covering an accordance with internationally accepted standards and other related advisory services, while seeking
area of 1,419 sq. km. In November 2021, the Lessee and practices, certified by ISO 9001, ΕLΟΤ 1429, ISO to continuously expand the range of its services
• HELLENIC PETROLEUM has a 25% working interest has submitted to the Lessor a Notice of Withdrawal, 14001 and OHSAS 18001. Also, ASPROFOS, having as and broaden its client portfolio to include, mainly,
in the Sea of Thrace concession, North Aegean, due to external factors causing the inability of the priority the health of its employees and its associates, international clients.
covering a total area of 1,600 sq. km. The remaining Lessee to execute the project. adhered to the strictest protocol along with
working interest belongs to Callfrac Well Services procedures for prevention and hygiene and received In 2021, ASPROFOS employed 215 qualified
LTD. • The Group had exclusive rights of hydrocarbons the Excellent Level of TÜV AUSTRIA COVID-Shield professionals and its turnover amounted to €11.3
exploration and production (100%, Operator) certification. million.
• The Group has exploration and production through its subsidiaries HELPE Arta-Preveza and
rights of hydrocarbons (100%, Operator), through HELPE N.W. Peloponnisos, in the onshore blocks of
HELPE Kyparissiakos Gulf, in the offshore block of ‘Arta-Preveza’ and ‘N.W. Peloponnese’, covering an
Kyparissiakos Gulf ‘Block 10’, covering an area of area of 4,762.90 and 3,778.30 sq. km, respectively.
3,420.60 sq. km. In 2021, the environmental action The Lease Agreement for the NW Peloponnese
plan for seismic acquisition, as well as the process of Block was terminated in September 2021 following
the tender for the award of the Contractor that will the Withdrawal Notice of the Lessee. The Lease
undertake the seismic acquisition, were approved. Agreement for Arta - Preveza was terminated in
On February, 4, 2022, the 2D Seismic acquisition
survey of 1,200 km was completed.
September 2021, following the Withdrawal Notice of
the Lessee HELPE Arta-Preveza, after a prolonged
More than 100 projects in
• The Group has a 100% working interest, through
period of suspension of operations.
2021 for ASPROFOS
HELPE Ionian, in the offshore block ‘Ionian’, covering • The Group has a 25% working interest, through HELPE
an area of 6,671.13 sq. km. In December 2021, a West Kerkyra, in a Joint Venture with ENERGEAN
Withdrawal Agreement was executed with Repsol HELLAS Ltd (75%, Operator), in the offshore block of
Greece Ionian S.L., according to which, the Spanish Ionian Sea ‘Block 2’, covering an area of 2,422.10 sq.
company transfers 50% of the rights and obligations km. A seismic acquisition is planned to take effect by
of the Lease Agreement for the Ionian Block as well the end of 2022 or the start of 2023, according to the In 2021, ASPROFOS provided services to more than 100 • Construction supervision activities for the
as the Operatorship to HELPE Ionian. Following the provisions of the Lease Agreement. projects to clients both within and outside the HELPE photovoltaic park of 204.3 MW for HELPE
Consent of the Minister of Environment and Energy Group of Companies. The most important projects are Renewables in Kozani
on 31.12.2021 for the transfer of 50% working interest • The Group has a 20% working interest, through HELPE outlined below:
and the Consent of HHRM (Hellenic Hydrocarbon West Crete and HELPE South West Crete, in a Joint • Equipment and assembly design for the new Sulphur
Resources Management) for the change in the Venture with TOTAL (40%, Operator) and ExxonMobil • Environmental impact and permit studies for the Recovery Unit (SRU) and interconnections at the
Operatorship (on 31.12.2021), HELPE Ionian, with (40%), in the offshore blocks ‘West Crete’ and ‘South onshore and offshore section of the EastMed Thessaloniki Industrial Complex (TIC)
effective date January, 10, 2022, is the Lessee with West Crete’, covering an area of 20,058.40 and pipeline in Greece
100% interest in the block. According to the provisions 19,868.37 sq. km, respectively. Currently, the JV is at • Design and construction of three (3) playgrounds for
of the Lease Agreement, the Lessee is obliged to the 1st Exploration Phase. • New white-product pipelines, interconnecting the children with disabilities in Elefsina/Aspropyrgos/
conduct a 1,600 km 2D seismic survey, which started Aspropyrgos and the Elefsina refineries and the Thessaloniki
on February, 10, 2022 and was completed on March • HELLENIC PETROLEUM has submitted an offer for upgrade of part of the suburban railway section of
3, 2022. the offshore ‘Block 1’, north of Corfu Island, with the Western Attica. • Detailed design for the upgrade of the fuel supply
outcome of the process still expected. system at the Shuwaikh Power Station in Kuwait
• Detailed design for the upgrade of waste water
treatment unit (U-5500) at the Aspropyrgos refinery • Construction supervision for the interconnection
between the Trans Adriatic Pipeline (TAP) and the
• Detailed design for the implementation of HAZOP National Natural Gas Transmission System in the
study findings of the Atmospheric Distillation Units area of Nea Messimvria-Thessaloniki for DESFA
CDU III & CDU IV at the Elefsina refinery
• Support of the EIC for operation restoration & pier

Exploration & Production portfolio rationalisation reconstruction

Total capital investments of €400m in 2021,
out of which ~60% relate to renewable
ESG
energy, with an additional 10% directed
to environmental upgrading and safety
projects in our facilities
070 ESG
071 ANNUAL REPORT 2021

ESG MATERIAL TOPICS & At the same time, the Group has incorporated the
global Sustainable Development Goals into its
Based on the results of the recent materiality
assessment, the Group has aligned its strategy with

SUSTAINABLE DEVELOPMENT
strategy and has prioritised the implementation of the Goals as follows:
actions to achieve the goals of the 2030 Agenda.

GOALS
HELLENIC PETROLEUM Group, aiming at energy tran- the Group's activities, with the participation of both in-
sition and digital transformation, invests in renewable ternal and external stakeholders. The Group's coopera-
energy projects, while adapting to new technological tion with social partners, linked to the wider society and
conditions and continuously training its human resourc- the local communities where it operates, is ongoing
es. By implementing "Vision 2025", its new strategic and is implemented through constant and meaningful
business plan for its evolution and sustainable devel- dialogue.
opment, the Group is transforming rapidly and remains
PARTNERSHIPS NO
consistent in its alignment with international sustain- The material topics highlighted by a recent study are FOR THE POVERTY
PEACE, GOALS
ability standards, such as the 10 Principles of the UN six (6) and they are presented below based on the ESG JUSTICE ZERO
Global Compact and the GRI Standards. pillars in order to reflect the Group's position and long- & STRONG HUNGER
term strategy, as well as their importance to the Group's INSTITUTIONS
At the same time, it conducts materiality analysis of ESG operations. GOOD
(Environment - Social - Governance) topics related to LIFE HEALTH
ON LAND AND WELL-BEING
17 01
16 02
High

LIFE 15 03
BELOW QUALITY
Occupational EDUCATION
Critical Incident Risk Health and Safety WATER
Management of Employees and
Partners 14 04
Significance on stakeholders and level of impact on the economy, society, environment

Air Quality
Energy Consumption
Local Community and GHG Emissions
CLIMATE 13 05 GENDER
Relations EQUALITY
Generation and ACTION
Distribution of
Economic Value
12 06
Quality and Safety of
Products and Services RESPONSIBLE CLEAN
CONSUMPTION 11 07 WATER
& PRODUCTION & SANITATION
10 08
Waste Management Employee 09
and Circular Attraction,
Economy Practices Development SUSTAINABLE
and Retention CITIES & AFFORDABLE
COMMUNITIES AND CLEAN
Increase Capacity of our ENERGY
Renewable Energy Sources DECENT
REDUCED WORK &
Accessibility of Climate Related Risks INEQUALITIES ECONOMIC
Products and and Opportunities INDUSTRY,
Services E - Environmental Topics INNOVATION & GROWTH
S - Social Topics INFRASTRUCTURE
Human Rights and Innovation and Digital
Equal Opportunities Business Ethics, Diversification Transformation G - Governance Topics
for Employees and Compliance and of Product
Partners Sustainable Transparency Portfolio
Management of Corporate
Supply Chain Governance

Crucial Topics
Sustainable Water Management
Significant Topics
Biodiversity and Ecosystems Material Topics
Information and Systems Security
Low

Goals with priority Commitments

Low High
Level of impact on HELPE Group's overall business performance and sustainable development
072 ESG
073 ANNUAL REPORT 2021

Health & Safety, Environment and

Environment Climate Change

The HELLENIC PETROLEUM Group incorporates with the European oil and chemical industry as well as The HELLENIC PETROLEUM Group, as an energy as, markets in which the Group operates. At the same
Sustainable Development into its strategic planning to transfer and incorporate best practices with the aim products producer and, at the same time, a time, international forecasts on the energy market
and is committed, through its Policy on Health, of improving the Group’s performance in health, safety significant energy consumer, faces significant and climate change are evaluated systematically in
Safety and Sustainable Development, to ensure safe, and environment. challenges in the energy sector with regard to climate order to develop the Group's long-term strategy.
accident-free and economically viable operation, change. Specifically, the Climate Change affects our
while respecting the environment and the community In addition, compliance to relevant procedures business activity, creating significant challenges and In particular, through the implementation of its
in line with the 17 UN Sustainable Development Goals and health, safety and environment management opportunities. Potential risks and opportunities for sustainable development strategy, the Group seeks
(SDGs) and ESG criteria (Environmental - Social - performance in each facility is evaluated regularly, the Group's business activities indicatively include to achieve short- and long-term goals of improving
Governance). not only through internal audits carried out by trained cost management to participate in the European energy performance and reducing greenhouse
and experienced staff, but also through independent Emissions Trading System – EU ETS and the pertinent gas emissions, in line with relevant international UN
The HELLENIC PETROLEUM Group, due to the nature audits carried out by accredited external certification legislative changes, but also opportunities in Sustainable Development Goals for Clean Energy
of its activities, faces a series of risks in its operations, bodies. At the same time, progress of health, safety, accelerating the implementation of energy efficiency (SDG 7) and Climate (SDG 13). Indicatively, the group
with regard to the use of dangerous and flammable environment and energy indicators (KPIs) is monitored, projects, feasibility studies for investment-activities has committed to reducing greenhouse gas emissions
substances and other technical challenges in oil which are included in the Group’s periodic reports, in focusing on RES and increasing the project and by 50% by 2030. This reduction will be achieved by
and other products manufacturing and distribution managements’ performance indicator evaluations investment portfolio in the context of the energy improving energy efficiency in refinery processes,
facilities of considerable complexity and significant as well as the independent auditors’ evaluations transition towards climate neutrality. adopting new technologies (carbon capture CCS,
size. Failure to manage these risks could have according to ESG and Sustainable Development green hydrogen) as well as by developing a significant
considerable impact on the Group’s operation and criteria. The first step to effectively plan the Group's actions/ renewable energy portfolio with a targeted installed
financial position, including administrative penalties strategy is to record and manage the risks and capacity > 1 GW by 2026 and 2 GW by 2030.
and/or inability to carry out its activities. opportunities that exist, both in terms of mitigating
climate change and in terms of strategically Specifically, in 2021, with regard to energy
With regard to risk management related to health, adapting to its impacts. Increased costs for fuels management, the Group's refineries successfully
safety and environmental issues, the Group uses a and raw materials, reduced demand for energy- developed and certified an Energy Management
series of control and mitigation procedures during intensive products, as well as, additional measures System according to ISO 50001:2018. Note that in
equipment design and operation to manage and to control and limit greenhouse gas (GHG) emissions 2021 the construction of the photovoltaic project in
mitigate them through selected KPIs. At the same time, comprise critical issues that are examined and Kozani with a total capacity of 204 MW - one of the
it actively participates in international organizations in analyzed through various pillars, such as, existing and largest in Europe- continued, while the acquisition
order to measure important indicators and compare forthcoming legislation, new technologies, as well of 38 MW wind farms in South Evia and of 2 PV parks,

€13 million 200,000 tons

in total CO2 emissions
investments in safety avoided from RES operation
074 ESG
075 ANNUAL REPORT 2021

with capacity of 16 MW in Viotia (all operational), was projects in the refineries, in addition to equipment/ AIR EMISSIONS (IN TONS/THROUGHPUT)
completed. unit upgrade -modernization projects.
0.400
With regard to the Group’s quantitative performance In addition to CO2 emission reduction initiatives,
-39%
in 2021, the total avoided CO2 emissions from RES the Group's facilities adaptation to climate change
reached approximately 200,000 tons of CO2, while impacts are monitored and a research study is
more than €260 million were invested in projects to currently in progress regarding the initial evaluations
0.300
reduce the Group's environmental footprint, such of risks as well as actions-projects required for
as RES, energy efficiency and air emission reduction adaptation.

-21%
0.200

-8%

0.100

More than 0

€260 million
SOX NOX PM10(x10)

2015 2016 2017 2018 2019 2020 2021

were invested in projects to reduce

*the PM indicator is multiplied by 10 so that it can be better presented
the Group’s environmental footprint

REFINERIES' VERIFIED CO2 EMISSIONS

In 2021, European refineries’ exposure to with regard to the basic SOX , NOX , and PM air emission
4000
significantly higher natural gas prices resulted indicators, with PM emissions affected by a decrease
in the corresponding adjustments in the fuel mix in natural gas use (compared to the previous year).
consumption with limited impact on air emissions.
Specifically, in 2021, the declining trend continued 36% Deficit
17% Deficit 1329 Kt CO2
3000 553 Kt CO2

KT CO2
2000

Up to

39% reduction 1000

in basic air emissions in

the last five years
0
Emissions 2020 Allowances 2020 Emissions 2021 Allowances 2021

Emissions Allowances
076 ESG
077 ANNUAL REPORT 2021

For 2021, HELLENIC PETROLEUM’s direct financial with the new emission levels linked to Best Available HEALTH AND SAFETY
impacts were mainly related to the cost of covering Techniques (BAT) were incorporated into the new
the emissions allowance deficit, since all three of environmental permits approving the operating
the Group's refineries in Greece participate in the EU conditions of the Aspropyrgos and Elefsina refineries, For the HELLENIC PETROLEUM Group, Health and In addition to key actions taken toward Health and
Emissions Trading System (EU-ETS). Under the 4th phase as well as the Thessaloniki refinery (expected to be Safety is a major priority across all its activities. Safety, the Group continued to effectively manage
(2021-2030) of CO2 emissions trading, compliance issued in 2022). Note that in the Aspropyrgos refinery An overall approach to managing issues related the COVID-19 pandemic crisis through coordinated
costs have increased significantly, despite all the in 2021, a new electrostatic particulate filter (ESP) to Health and Safety, includes planned initiatives actions set out in the pandemic response Policy
energy-saving projects, due to decreasing free was installed, which is expected to be operational in and preventive measures to eliminate hazards and (revised in accordance with National Public Health
allowance allocation from year to year, but also due to 2022 and lead to a 50% reduction in the refinery's total improve performance. At the same time, it includes Organization (NPHO) and World Health Organization
the significant increase in the price of allowances over particulate emissions (PMs). management systems, inspections and actions to (WHO) guidelines, for all activities and subsidiaries
the last four years (approximately 10 times the price). strengthen leadership, across all Group’s activities. and all levels of the Organization, for all employees
The verified CO2 emissions for the three refineries Concerning wastewater and solid waste management, Additionally, the Group takes all required safety working at its premises and facilities (third-party
(Scope 1) in 2021 amount to 3.7 million tons. The in line with circular economy principles and the UN measures for employees, external partners and companies, as well as work, services or supplier
diagram, as shown in the previous page, presents the Goal for Sustainable Production and Consumption visitors in all working areas, in alignment with the UN’s contractors and commercial partners).
final verified emissions for the Group’s three refineries (SDG 12), the primary objective is to reduce their international Sustainable Development Goal for Good
for 2020 and 2021 as well as the corresponding free production at source, maximize reuse in the Health (SDG 3). Finally, the “Covid Shield” (Excellent Level)
allowances, which demonstrate a significant deficit production process and recycling for as many waste certification, which is verified by an independent third
increase in the emission allowance between phase 3 streams as possible and then manage them in the The Group continuously invests in prevention, party, was revised, confirming that the Management
(year 2020) and phase 4 (year 2021) of the EU-ETS and best possible way with regard to the environment infrastructure, improving – revising procedures and System for COVID-19 Pandemic Prevention Measures
the consequent cost of covering it. and human health. The goal is to minimize waste for aligning with current standards and best practices, at all Group facilities and Headquarters, has sufficient
final landfill disposal to 15% by 2030 in accordance to while constantly investing in personnel and contractor resources and proper infrastructure in line with current
Following European level developments, regarding the European targets and policies. ` training in Health and Safety to ensure compliance epidemiological guidelines.
announcement of a 55% greenhouse gas emissions with the strictest criteria on a national and European
reduction target by 2030 (in context to the Green Since 2016, the Group has adopted the Greek level. Indicatively, in 2021, approximately 13 million
Deal), as well as the already implemented EU-ETS Sustainability Code and is actively involved in the euros were invested in safety improvements in all
restructuring measures for 2021-2030 and the planned dialogue on sustainable development, contributing Group facilities across Greece and abroad, over and
new EU-ETS revision, a significant increase in the price through actions and investments toward the 17 goals above actions included in project upgrades and
of allowances (€/tn) was recorded in 2021 averaging set by the UN to be achieved by 2030. In 2021, the equipment/unit modernization.
€53/tn, while at the beginning of 2022 it approached Group retained its position yet another year in the
€100/tn, which affects compliance costs, both directly leadership team of The Most Sustainable Companies All Group facilities set targets to monitor and
and indirectly through power consumption, which is in Greece 2021, which are model companies in forming improve performance on Health and Safety issues,
also subject to corresponding costs. a Business Charter for Sustainable Development with regular periodic reports reviewed against
in Greece. Furthermore, for a fourth year, it was these targets. Targets on specific Health and Safety
Within the framework of reducing its wider evaluated for its overall management of climate indicators are set and monitored based on industry
environmental footprint, the Group aims to reduce change issues by CDP, an international organization recommendations of internationally acclaimed
both air emissions and waste generated through (previously Carbon Disclosure Project, which includes technical and scientific associations, such as
specific actions, such as maximizing the use of a large part of the ‘Task Force for Climate related CONCAWE.
fuel gases, using fuels with higher environmental Financial Disclosures’ -TCFD proposals) and was rated
standards and applying advanced technologies in at level B ("Management level - Taking coordinated
the production process. For 2021, measures to improve action on climate issues"), a level higher than in
the environmental footprint in context to compliance previous years where its rating was B-.
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079 ANNUAL REPORT 2021

The graphs below show the trends in the basic safety key performance indicators (KPIs). Lagging Health and Safety Indicators Leading Health and Safety Indicators
In 2021, the process safety event rate KPI - which is a In 2021, the target set for reporting and investigating
LWIF 14 key process safety indicator – remained practically near misses was achieved, which is a key leading
5 unchanged, at the same low levels as last year. indicator for H&S performance across all Group
facilities.
Specifically, in 2021, out of a total of 9,464,621 man-
4
hours, there were 28 lost work days injuries registered In the context of establishing a common Safety
for staff and external partners. Note that in absolute Culture across all Group facilities, basic H&S training
3
terms, safety incidents decreased compared to the continued (which includes fire safety, first aid,
previous year, both in terms of process incidents (11% rescue techniques, basic safety procedures, best
2 decrease) and injuries (14% decrease) or absence practices, etc.). Training extends to external partners’
accidents (12.5% decrease). contractors, visitors, tank truck drivers and service
1
station operators in accredited training centers.
The graphs below show the trends in the basic safety
key performance indicators (KPIs). Finally, in 2021, safety audits / safety visits (an equally
0
2015 2016 2017 2018 2019 2020 2021 important leading Health and Safety Indicator) were
carried out throughout all activities, exceeding the
targets (by over 100%) set at the beginning of the year.
ΑIF 15
7

4
>50,000
3 training hours in
Health & Safety issues
2

0
2015 2016 2017 2018 2019 2020 2021

PSER 16
3

0
2015 2016 2017 2018 2019 2020 2021

HELPE / ΕΚΟ CONCAWE

14
Lost workday injury frequency: (LWIs)/ 1 million labor-hours
15
All injury frequency: Total Fatality + LWI + Restricted Workday Injury + Medical Treatment Case/1 million labor-hours
16
Process Safety Incident Rate: Number of process safety incidents/1 million labor-hours
CONCAWE 2021 data report is not available until July 2022
080 ESG
081 ANNUAL REPORT 2021

EU Taxonomy EU TAXONOMY-ELIGIBLE ACTIVITIES

As of January 2022, in accordance with Article 10 (activity number 4.1) and b) electricity generation
(2) and (3), all large non-financial entities will be from wind power (activity number 4.3). In detail,
required to report, for the previous calendar year, the through its subsidiaries the Group participates in the
In December 2019, the European Union (EU) presented also expected to gradually increase.
proportion of their activities (or the proportion of their generation of electricity using solar energy with total
the European Green Deal which adopts a set of
exposures to activities) that are considered as eligible planned installed capacity of 229 MW, expected to be
initiatives covering the climate, environment, energy, The European Commission identifies three Key
in accordance with Article 1 (5) and non-eligible operating in the second quarter of 2022. Furthermore,
transport, industry, agriculture and sustainable Performance Indicators to be disclosed regarding
in accordance with Article 1 (6) of the Disclosures in 2021 the Group acquired two wind farms in Evoia,
finance, with the aim of achieving climate neutrality the proportion of the taxonomy-eligible activities of
Delegated Act in their turnover, capital (‘CapEx’) and Central Greece, which, along with the existing wind
by 2050. The ‘Fit for 55’ package aims to translate the the Group in its total activities. Namely, these KPIs
operational expenditure (‘OpEx’). As of January 2023, farms, reached total installed capacity of 44 MW.
ambitions of the Green Deal into a legal obligation, are Turnover, Capital Expenditure and Operating
non-financial entities will start to report eligibility and
according to which the EU member states commit Expenses.
alignment of their activities. Financial information regarding the Group’s
to reduce the net greenhouse gas emissions by at
taxonomy-eligible and non-eligible activities for the
least 55% by 2030, compared to 1990 levels. In order The policies used in deriving the respective amounts
The Group’s eligible activities are a) electricity year ended December 31, 2021 is presented below:
to meet the emission targets, the EU, through the used in these KPIs are the following:
generation using solar photovoltaic technology
“Taxonomy Regulation” (EU 220/852) established the
framework for the creation of the EU Taxonomy of Accounting Policy & Methodology
environmentally sustainable economic activities. This Turnover KPI (%): Ta/Tt
common classification system is a tool to define the The structure of the Group is such that each of the
environmental performance of economic activities eligible activities is managed through a separate Enviromentally Sustainable Activities % Group % Group % Group
across a wide range of industries, helping investors, legal entity. As a result, the taxonomy-eligible turnover (Taxonomy - Eligible) Revenue OpEx CapEx
companies and financing providers to turn to a low- is obtained from the accounting records of these Taxonomy Eligible Activities of the Group 0.06% 0.16% 57.60%
carbon, resilient and resource-efficient economy. The entities which form part of the audited consolidated Taxonomy Non-Eligible Activities of the Group 99.94% 99.84% 42.40%
“Taxonomy Regulation” EU 2020/852 is supplemented turnover. The net turnover of the Group is obtained Total 100.00% 100.00% 100.00%
by the “Regulation EU 2021/2178” and the “Regulation from the audited Consolidated Group Financial
EU 2021/2139”. Statements.

The EU Taxonomy requires Financial Market CAPEX KPI (%): Ca/Ct

Participants, subject to the Regulation, to disclose For 2021, the taxonomy-eligible Capital Expenditure
how and to what extent their activities are associated includes the Capital Expenditure for the acquisition
with environmentally sustainable economic activities. of eligible activities. The total Capital Expenditure of
the Group is obtained from the audited Consolidated
An economic activity is defined as environmentally Group Financial Statements.
sustainable if:
Group’s capex plan: more specifically, it is expected
• it makes a substantial contribution to at least one of that investments in electricity generation from
the six environmental objectives renewable activities will account for the most
significant part of the Group’s growth capex over the
• it does not significantly harm (DNSH) any of the
next 10 years. The Group expects to reach 285 MW of
other five environmental objectives
operating renewable capacity in the first months of
• it meets minimum social safeguards 2022, aiming for >1 GW by 2026 and 2 GW by 2030.
• it complies with the Taxonomy Regulation’s
technical screening criteria Operating Expenses KPI (%): Oa/Ot
The accounting records of the entities which have
The HELLENIC PETROLEUM Group has updated its taxonomy-eligible activities were used, while
strategy to increase the participation of taxonomy- for 0t the audited Consolidated Group financial
aligned and eligible activities in its share of statements formed the basis of calculation. The costs
investments and profitability. included in the Operating Expenses KPI primarily This section was included for the first time in the Market Commission. In this regard, the Company
involve cleaning, repair and maintenance expenses. non-financial reporting of the Annual Financial interpreted the relevant directives and as the
As its investment plans materialize and its investment Expenses such as overheads, electricity and wage Report 2021, following the provisions of EU regulations legislation governing the EU Taxonomy is constantly
targets are achieved, the share of taxonomy-eligible cost of employees operating the assets are excluded 2020/852, 2021/2178 and the announcements 2615 / evolving, it monitors any changes in order to properly
and aligned activities in revenues and profitability are from the calculation. 10.11.2021 and 209 / 31.01.2022 of the Hellenic Capital adapt its approach and the respective disclosures.
082 ESG
083 ANNUAL REPORT 2021

Society DISTRIBUTION PER NATIONAL AND LOCAL LEVEL IN GREECE

62%
Nation Wide

38%
The Group has designed a comprehensive and Neighboring Municipalities

integrated Corporate Responsibility programme

aimed at promoting society, protecting the
environment, creating value for the economy and
immediately responding to emergencies

HELLENIC PETROLEUM Group, as a responsible actions of meaningful service and relief. Its initiatives
corporate citizen, has designed a comprehensive are linked to the basic social needs of each area and
and integrated Corporate Responsibility programme are shaped through open dialogue with stakeholders,
aimed at promoting society, protecting the
environment, creating value for the economy
public opinion surveys, surveys to identify material
topics, public debates and consultations. >€5.8 million in Corporate Responsibility
and immediately responding to emergencies. It
continuously and consistently supports both the initiatives in Greece and abroad
wider society and the local communities adjacent
to its facilities, through significant programmes and
EDUCATION
Driven by its active interest in the young generation, Municipalities of Thriasio and Western Thessaloniki
since 2013, the Group, through the "Proud of Youth" for their excellent performance at the university entry
2021 CORPORATE RESPONSIBILITY ACTIONS program, has been implementing one of the exams, demonstrating, in practice, that it stands by
biggest programmes of scholarships awarded the youngsters who wish to progress and stand out.
DISTRIBUTION PER TYPE OF ACTION IN GREECE to young people who stand out for their talent
and performance. Specifically, up to date it has Moreover, the Group, in collaboration with the "Agoni
awarded 80 scholarships to outstanding graduates Grammi Gonimi" non-profit organization, disseminates
43% for postgraduate studies in English-language learning about the UN Sustainable Development Goals
Education programs at internationally renowned universities to primary and secondary school children through the
in Europe and the USA. In addition, in coordination "Earth 2030" Educational Suitcase. The main objective
19% with Greek universities, it sponsors programmes both of the action is to educate and raise awareness of the
Culture
for postgraduate and for doctoral studies, while, 17 Goals among children and to generate ambassa-
16% concurrently supporting their academic work. dors to disseminate the Goals to the general public.
Environment - Infrastructure Projects In 2021, 1,136 students from 14 schools across Greece
In addition, for the 13th consecutive year the Group participated in the programme.
7% rewarded 293 students from the neighbouring
Vulnerable Groups

6%
Sports

9%
80 Scholarships
Other for postgraduate studies in renowned
universities abroad in the last nine years
084 ESG
085 ANNUAL REPORT 2021

SOCIETY In addition, the Group undertook the implementation eas from soil erosion. It is worth noting that the works
of erosion control projects at the Gerania Mountains, carried out are 100% ecological, as the construction
In the context of promoting social welfare, in addition Specifically, for the 13th consecutive year, it donated at the area of Schino and in Attica, at the area of Va- materials came exclusively from burnt trees in the
to the immediate action undertaken in response to more than 250,000 litres of heating oil to 136 public rybobi, with a total budget of €3 million. The projects area.
the pandemic in the country, the Group continued schools of all levels in neighbouring municipalities. It were implemented in order to shield the affected ar-
devotedly its vision of contributing to society with is worth noting that from the start of the programme
actions aimed at improving the quality of life, by to date, the Group has created the appropriate
fulfilling basic social needs. educational conditions, by providing heating, to over
307,300 students.
Implementation of corrosion
control projects in areas affected
by the wildfires
Supply of

250,000 liters CULTURE/SPORTS

of heating oil to 136 With actions for Culture, the Group participates in the preserved ADAM building in Elefsina, highlighting
public schools and supports important cultural events of the local the cultural dynamics of the city, in the framework of
and wider society, aiming at the preservation and the Corporate Responsibility actions implemented by
dissemination of cultural heritage. the Group for the promotion and support of culture.

Additionally, it continued to support the operation of Schools of the Municipalities of Aspropyrgos, Elefsina, In 2021, the Group supported the actions marking In Sports, it continued to support non-professional
social grocery stores and parishes of neighbouring Mandra, Megara and Delta in Thessaloniki, so that the anniversary of the 1821 Greek Revolution, with sports clubs to ensure that the future of sports will
municipalities, providing essentials, on a monthly the Organization could fulfill the wishes of six children the construction of 3 fully accessible playgrounds be based on solid foundations and to sponsor major
basis, to more than 1,750 families living below the with serious illnesses. for people with disabilities in the neighbouring sporting events and teams that uphold the ideals of
poverty line level. Municipalities of Aspropyrgos, Elefsina and sport.
At the same time, it contributed to the work of various Ampelokipon-Menemeni. These new spaces are
With the aim of offering a better future to the new organizations that support vulnerable population designed to promote creative and experiential play, More specifically, in 2021, the Group renewed and
generation, it supported the Make-A-Wish Greece groups, thus expressing a message of solidarity and with an emphasis on full accessibility for children with upgraded its sponsorship of the Hellenic Paralympic
Organization and distributed 14,000 "Wish Stars" to social offering. special needs and are part of the Group's strategy Committee to "Major Sponsor", actively supporting
all the children of the Kindergardens and Primary to improve infrastructure in its local communities. In the efforts of Greek athletes to achieve their goals.
addition, the Group sponsored the production of the With continuity and consistency, it highlights diversity
documentary "Greek Citizens of the World" which aims and inclusion, supporting the efforts of people with
to promote Greek excellence, i.e. people who excel disabilities.
and stand abroad, thereby honouring Greece.

In parallel, it carried out studies (architectural,

ENVIRONMENT structural, electromechanical) for the restoration of

Protecting the environment and implementing In 2021, it contributed to the creation of an exhibition
infrastructure projects for sustainable cities are dedicated to climate change at the "GAIA" Exhibition
one of the main pillars of Corporate Responsibility
of the Group. Specifically, the Group provides for
Centre of the Goulandris Museum of Natural History.
This project aims to promote solutions to and raise
Major Sponsor of the Hellenic
the installation, monitoring and maintenance of
environmental stations in the areas where it operates,
public awareness of, the issue of climate change.
Paralympic Committee
invests in the installation of photovoltaic systems With the aim of protecting the environment amid the
on the roofs of schools and institutions, applies wildfires of the summer of 2021, the HELLENIC PE-
the best available techniques for the operation of TROLEUM Group was on the front line, reinforcing the Finally, EKO, as the largest Greek fuel marketing Rally Championship. Notably, the EKO Acropolis Rally
all facilities and implements studies and projects firefighting units. It ensured the continuous fuel supply company that has been supporting motor sports received a 2-Star environmental certification, while
for environmental protection and energy saving in of all firefighting vehicles and converted company for many years, was proud to be a major sponsor driving education was promoted through targeted
collaboration with the academic community. tankers into water trucks, while Group employees vol- of the "EKO Acropolis Rally" and contributed with events.
unteered to help fight the fires. commitment to its reinstatement in the FIA World
086 ESG
087 ANNUAL REPORT 2021

Corporate 1. CORPORATE GOVERNANCE CODE

Governance The Company has adopted the Hellenic Corporate

Governance Code (June 2021 edition) of the Hellenic
Corporate Governance Council (HCGC) (hereinafter
During 2021, the Company complied with the
provisions of the above Code, with the deviations
referred to as the “Code”). This Code can be found stated below in paragraph 2., while it intends to adopt
on the HCGC’s website, at the following e-address: appropriate policies and proposals to minimize
https://www.esed.org.gr/code-listed. existing deviations from the provisions of the Code.

The Hellenic Corporate Governance Code (June 2021) In addition to the provisions of the Code, in the course
The institutional framework governing the Company’s Capital Market Commission, as in force. L. 4706/2020 replaces the Hellenic Corporate Governance Code of 2021, the Company complied with all relevant
operation and obligations is L. 4548/2018 on “Corporate governance of sociétés anonymes, for Listed Companies that had been issued in 2013 by provisions of the Greek legislation.
the reform of the law of sociétés anonymes and provisions for capital market modernisation, the HCGC.
L. 4706/2020 on corporate governance. The transposition of EU Parliament and Council
Company’s Articles of Association, are available via Directive 2017/828 into Greek law, measures for Aside from the HCGC’s website, the Code is available
the Company’s website at: https://www.helpe.gr/ the implementation of EU Regulation 2017/1131, to the entire staff via the company’s intranet, as
investor-relations/corporate-governance/articles-of- and other provisions” replaced L. 3016/2002 on well as in hard copy at the Group Financial Services
association-data/. corporate governance as of 17.7.2021. By the new law, General Division and the Group Human Resources
corporate governance issues, which were basically General Division.
As a listed company on the Athens Exchange, the self-regulated through soft law, are determined
Company has additional obligations in respect of by mandatory law rules, without leaving room for
the individual sections of governance, investors’ deviations.
and supervisory authorities’ information, financial
statements’ publication, etc. The principal laws The Company took care for the timely adjustment of
describing and imposing the additional obligations its corporate governance framework to the provisions 2. DEVIATIONS FROM THE CORPORATE GOVERNANCE CODE
are L. 4706/2020 and the Hellenic Capital Market of L. 4706/2020, as well as to the decisions of the
Commission decisions and circulars issued by Hellenic Capital Market Commission, that were issued Hellenic Corporate Explanation/Reasoning for deviating from the special practices
Governance Code of the Hellenic Corporate Governance Code
delegated authority of the law (decisions no. by delegated authority of said law.
1Α/980/18.9.2020, 1/891/30.9.2020 as amended BoD Size and Composition Despite the fact that the BoD's Chairman is a non-executive, though
not an independent member of the BoD, and no vice-chairman or
and in force, 2/905/3.3.2021, circular 60/18.9.2020), top independent member thereof has been appointed, the BoD's
L. 3556/2007, L. 4374/2016, the ATHEX Exchange Operation Regulation provides for the Chairman’s replacement in
Rulebook, the provisions of article 44 of L. 4449/2017 the event of his absence or impediment, by the most senior non-ex-
ecutive member of the BoD.
(Audit Committee), as amended by article 74 of
L. 4706/2020 and in force, in conjunction with the Appointment of a vice-chairman or top independent Given that the existing BoD was elected in June 2021 and constitutes
member in case the BoD's Chairman is not an the first BoD following a major amendment of the Company’s Arti-
caveats, clarifications and recommendations independent non-executive member cles of Association regarding the BoD’s composition and election,
of document no. 1149/17.5.2021 of the Hellenic (Special Practice 2.2.21) once the new BoD completes its first year of operation, it will assess
Capital Market Commission, as well as decision its modus operandi and, if appropriate, will review the subject.
no. 5/204/14.11.2000 of the BoD of the Hellenic Succession of the BoD The Chairman of the Nomination Committee is also Chairman of the
Chairman of the Remuneration Remuneration and Succession Planning Committee.
and Nomination Committee
(Special Practice 2.3.9) On account of the provision in the Articles of Association regarding
the appointment of four, out of the eleven, BoD members by the
Greek State, the BoD’s independent non-executive members are
four. Given that the BoD was elected in June 2021, when upon three
out of the four independent non-executive members thereof were
admitted to it, the member that was elected as (joint) Chairman of
the two Committees is the only independent member that was a
member of the Remuneration and Succession Planning Committee
also during the previous BoD’s term of office; namely for a period of
more than a year, as provided in the Code (Special Practice 2.4.7).

Once the first year of the new BoD’s term will have been concluded,
the Company will evaluate the BoD Committees’ service and will
review their composition.
088 ESG
089 ANNUAL REPORT 2021

BoD members’ remuneration The existing remuneration system for executive BoD members does information or recommending to another person shareholders. According to the provisions of L.
not include provisions providing for the possibility of refunding part to proceed to an abuse of inside information, as 4548/2018 (article 99- 101), Company transactions
or the whole of the variable executive BoD members’ remuneration,
as this would amount to a discrimination at their expense compared
well as the prohibition of unlawful disclosure. of any kind with parties related to it, are
to Company executives with the same grade. permissible only following approval by the BoD or
• The Procedure for the compliance of persons
Recovery of variable parts of executive BoD members’ The Company also finds that something of the sort is not necessary, the General Meeting, as per case, unless they fall
discharging managerial responsibilities, in
remuneration (Special Practice 2.4.14) as the relevant remuneration is paid following an individual as- under the exceptions stated in the law.
accordance with the provisions of article 19
sessment of each executive member’s performance and under no
circumstances can they exceed the predetermined maximum limits of Regulation (EU) 596/2014, which includes a • The Policy and Procedure for preventing and
on their annual ordinary remuneration. clear and detailed recording of the requisite managing conflict of interest situations, which
BoD / Chief Executive Officer Assessment (Special Given that the BoD was elected in June 2021, no BoD evaluation notification actions, aiming at strengthening provides for designating the way in which conflict
Practices 3.3.3. & 3.3.4) (collective or individual) has taken place to date. The Nomination transparency regarding the transactions of of interest may arise, for receiving reports or
Committee Operation Regulation provides for a BoD assessment management officers and of the persons closely clarifying doubts in cases of such (actual or
to be performed by an external consultant within the first year of its
operation. associated therewith and identifying potential potential) conflict and for taking appropriate
risks (abuse, market manipulation, etc.) measures for managing them.
• The Policy and Procedure on related party
transactions, which sets out the mechanisms
for identifying, supervising and approving the
transactions in question. In the context of the
procedure, relevant documents and information
3. OTHER CORPORATE GOVERNANCE PRACTICES concerning related parties are kept and updated.
The information on the above transactions
among associate companies are included in the
In the context of implementing a structured and role have been established and operate in the report accompanying the Company’s financial
adequate corporate governance system, the Company. They comprise senior executives of the statements, in order to be disclosed to the
Company has implemented specific corporate Company and their objective is to support the work
governance best practices, some of which are of the Management. The principal such committees
over and above those provided by the applicable are the following:
legislation and relate to the BoD’s duties and its 1. Executive Committee
operation, in general (a detailed reference to the BoD 2. Manufacturing Activities Committee
Committees follows in section 7.): 3. Domestic and International Marketing Committee
4. Oil Products Supply and Sales Committee 4. MAIN FEATURES OF THE SYSTEMS OF INTERNAL
• Due to the Company’s nature and purpose, the 5. Group Credit Committee CONTROLS AND RISK MANAGEMENT IN RELATION
complexity of issues and the necessary legal 6. Investment Evaluation Committee TO THE FINANCIAL REPORTING PROCESS
support of the Group, which includes a number of 7. Electricity, Natural Gas and Renewable Energy
operations and subsidiaries in Greece and abroad, Sources Committee
and in order to be assisted in its duties, the BoD 8. Exploration & Production of Hydrocarbons
has established committees, comprising members Committee19 The Group System of Internal Controls and Risk mainly during the strategic planning and the annual
thereof, with advisory, supervisory or/and approving Management in relation to the financial statements’ preparation of the business plan stage. The benefits
authorities. These committees are outlined below, • The Company has adopted corporate governance and financial reports’ preparation process includes and opportunities are examined both in the context
(a detailed reference to such shall be made under policies and procedures, which include: controls and audit mechanisms at various levels of the Company’s operations, but also in relation to
paragraph “Other BoD Committees”): within the Organization, which are described below: the several and different stakeholders who may be
• The Procedure for handling inside information affected.
1. Strategy and Risk Management Committee
and properly informing the public, in accordance a) Group level controls
2. Oil Products Procurement Committee17
with the provisions of Regulation (EU) 596/2014, Risk identification, assessment, measurement and The issues examined vary subject to market and
3. Sustainability Committee
which includes the appropriate mechanisms and management industry conditions and include, indicatively, political
4. Labour Issues Committee18
methodologies for the assessment of information The scope, size and complexity of the Group’s developments in the markets where the Group
so that it may qualify as “inside”, the prohibition activities requires a composite system of methodical operates, or which constitute important sources of
• In addition to the above BoD committees,
of abusing or attempting to abuse inside approach and treatment of risks, which is applied by raw materials, changes in technology, changes in
committees with an advisory and coordinating
all Group companies. legislation, macro-economic indicators and the
competitive environment.
The prevention and management of risks forms a core
17
Following the hive-down of the HELLENIC PETROLEUM S.A.’s refining, supply and oil products and trading of oil products and petrochemicals sector and the
part of the Group’s strategy. Planning and monitoring / Budget
establishment of “HELLENIC PETROLEUM SINGLE-MEMBER SOCIETE ANONYME REFINING, SUPPLY AND SALES OF OIL PRODUCTS AND PETROCHEMICALS” on
3/1/2022, it constitutes a Board of Directors committee of the latter. The Company’s progress is monitored through a
18
Likewise The identification and assessment of risks takes place detailed budget per operating sector and specific
19
Likewise
090 ESG
091 ANNUAL REPORT 2021

market. The budget is adjusted at regular intervals to Through the reports, any possibly identified Roles and responsibilities of the Board of Directors Group Code of Conduct
take into account the changes in the development weaknesses, their actual or potential impact, as The role, powers and relevant responsibilities of the In the context of the good corporate governance
of the Group’s financials that depend greatly on well as the Management’s actions to correct them BoD are set out in the Company’s Bylaws (Internal fundamental obligation, the Company has drawn up
external factors, such as the international refining are communicated. The results of the controls and Regulation) that has been approved by the BoD. and adopted since 2011 a Code of Conduct, which
environment, crude oil prices and the euro / the monitoring of the implementation of the agreed has been approved by the Company’s BoD. The Code
dollar exchange rate. Management monitors the improvement actions are taken into account in the Financial fraud prevention and apprehension of Conduct summarizes the principles according
development of the Group’s financial results through Company’s Risk Management System. In the context of risk management, the areas that are to which every individual, employee or third party
regular reports, comparisons with the budget, as well considered to be of high risk for financial fraud are involved in the operation of the Group, as well as
as through Management team meetings. To ensure the independence of the Ordinary monitored through appropriate Control Systems and every collective body thereof, should act within the
Audit of the Group’s financial statements, the BoD accordingly increased controls are in place. Examples framework of their duties. For this reason, the Code
Adequacy of the Internal Control System follows a specific policy in order to formulate a include the existence of detailed organizational constitutes a practical guide of the day-to-day tasks
The Internal Control System (ICS) consists of recommendation to the General Meeting regarding charts, operation regulations (procurement, of all employees of the Group, but also of third parties
the policies, procedures and tasks which have the election of an External Auditor. Indicatively, investment, oil products’ market, credit, treasury who cooperate with it. The Group Code of Conduct
been designed and implemented by the Group’s this policy provides, inter alia, for the selection of management), as well as detailed procedures and is posted on the Company’s website and is expected
Management for the effective management of risks, the same auditing company for the entire Group, approval authority levels. In addition to the internal to be revised in 2022; on one hand, capitalizing on
the achievement of business objectives, for ensuring as well as for the auditing of the consolidated controls applied by each Division, all Company its nearly a decade’s operation results and, on the
the reliability of the financial and managerial financial statements and tax compliance reports. operations are subject to audits by the Internal Audit other hand, in order to be aligned with more recent
information and compliance with Laws and Lastly, a certified auditor of acclaimed international Division, the results of which are presented to the BoD. legislative developments, such as L. 4808/2021, which,
regulations. status is elected, while, at the same time, his/her inter alia, ratifies Convention 190 of the International
independence is safeguarded. Bylaws (Internal Regulation) Labor Organization on eliminating violence and
The independent Group Internal Audit General The Company drafted Bylaws that has been approved harassment in the world of work and proceeds to
Division (GIAGD), through conducting periodic Regulatory Compliance Service by the BoD, according to decision no. 1388/1/15.7.2021. adopting relevant measures and provisions, and
assessments, ensures that the risk identification The Regulatory Compliance Service forms part In the framework of the Bylaws the powers and Directive 2019/1937 on the protection of persons who
and management procedures applied by the of the ICS; administratively, it is reporting to the responsibilities of the principal job positions are also report breaches of Union law (Whistleblowing).
Management are adequate, that the Internal Control Chief Executive Officer and functionally to the set out, thus promoting the adequate separation of
System operates effectively and that information Audit Committee. Through its reports to the Audit powers within the Company. The approved Bylaws Data Protection Office
provided to the BoD regarding the Internal Control Committee, it contributes to the ICS’s improvement has been posted on the Company’s website, in In the context of complying with the Personal
System, is reliable and of good quality. and adequacy, as its objective is to ensure that accordance with par. 2 of article 14 of L. 4706/2020. Data Protection Regulation, the Company has
appropriate and updated policies and procedures established a Personal Data Protection Office (PDPO),
The Internal Audit General Division draws up a short- are set up and implemented, in such a way that the Furthermore, the companies “HELLENIC FUELS AND by appointing a Data Protection Officer and the
term (annual), as well as a rolling long-term (three- Company’s full and constant compliance to the LUBRICANTS SINGLE-MEMBER INDUSTRIAL AND appropriate policies and procedures for managing
year) Audit Plan based on ad-hoc risk assessment, applicable regulatory framework is achieved. COMMERCIAL SOCIETE ANONYME” and “HELLENIC the subject. The PDPO is administratively reporting to
as well as on other issues identified by the Audit PETROLEUM SINGLE-MEMBER SOCIETE ANONYME the Chief Executive Officer and, functionally, to the
Committee and the Management also in past audit Risk Monitoring and Management Division REFINING, SUPPLY AND SALES OF OIL PRODUCTS AND BoD.
reports. The Audit Committee is the supervisory body Following the conclusion of the corporate PETROCHEMICALS”, as key Company subsidiaries,
of the Internal Audit General Division. transformation, a Risk Monitoring and Management adopted bylaws on 15.7.2021 and 20.1.2022,
Division is expected to be formed and operate. respectively.
The Internal Audit General Division submits quarterly Administratively, the Division will be reporting to the
reports to the Audit Committee, in order for the Group Finance General Manager and, functionally,
systematic monitoring of the Internal Control System’s to the BoD Strategy and Risk Management
adequacy to be feasible. Committee. It will be supporting the ICS’s operation
through determining principles and setting up and
The reports of the Management and the Internal implementing appropriate and updated policies and
Audit General Division provide an assessment of procedures governing their identification, assessment,
the significant risks and the effectiveness of the quantification/measurement, monitoring and
Internal Control System regarding their management. management.
092 ESG

b) Information systems’ controls Setup – Allocation of Duties

The Group Informatics and Digital Transformation • The assignment of duties and authorities both to
Division is responsible for defining and implementing the Company’s senior Management, as well as to its
the strategy on matters of technology and informatics middle and lower management officers, ensures the
and is responsible for developing and supporting the effectiveness of the Internal Control System, while
Group applications and systems, in collaboration with safeguarding the requisite segregation of duties.
external consultant where this is necessary. • Appropriate staffing of the financial services with
individuals having the requisite technical expertise
The Company has developed an adequate framework and experience to carry out the duties assigned to
for monitoring and auditing its information systems, them.
which is defined by a set of auditing mechanisms,
policies and procedures, while through a series of Accounting monitoring and financial statements’
interventions and implementations, it has ensured preparation procedures
compliance with all required regulatory frameworks • Existence of uniform policies and mode
and guidelines (e.g. Personal Data Protection of monitoring accounting departments,
Regulation, Critical Infrastructure Directive). The communicated to the Group’s subsidiaries, which
Information Systems’ monitoring and auditing include, definitions, accounting principles used by
includes, inter alia, the existence of documented the Company and its subsidiaries, guidelines for
descriptions of the Division’s roles and responsibilities, preparing the financial statements and financial
as well as of an IT Strategic Plan, which is renewed reports and the consolidation.
annually. Furthermore, specific Access Rights to the • Automatic checks and verifications conducted
various information systems have been set for all among the various information systems,
employees, according to their position and role, and while special approval is required regarding
different access-code security levels have been set, the accounting treatment of non-recurring
according to the applications’ importance, while an transactions.
entry log for the Company’s systems is also kept.
Assets’ safeguarding procedures
Finally, a specific procedure is provided for • Controls are in place regarding fixed assets,
safeguarding the Group’s systems from any problems, inventories, cash and cash equivalents -
through the existence of alternative systems in case cheques and other assets of the company,
of disaster (Disaster Recovery Sites), as well as through such as, for example, the physical security of
concluding a Business Continuity Plan, which is under cash or warehouses and inventory counts and
way. reconciliations of physically counted quantities with
those recorded in the accounting books.
c) Financial statements and financial reports’ • Schedule of monthly physical inventory counts to
preparation process (financial reporting) controls confirm inventory levels of physical and accounting
As part of the process for preparing the Company’s warehouses; use of a detailed manual to conduct
financial statements, specific controls are in place inventory counts.
and operate, which are related to the use of tools and
methodologies that are generally accepted, based Transactions’ authorization limits
on international practices. Some of the main areas • A Chart of Authorities is in place, whereat the
whereby controls related to the Company’s financial authorities assigned to the Company’s various
reports and financial statements operate are the officers to execute certain transactions or acts (e.g.
following: payments, receipts, legal acts, etc.) are set out.
094 ESG
095 ANNUAL REPORT 2021

Dialogue with the stakeholders and societies, the Company’s collaboration is continuous
5. INFORMATION REQUIRED PER ARTICLE 10 management of their interests and implemented through constant and substantive
PARAGRAPH 1 OF DIRECTIVE 2004/25/EU ON Over time, the Company has invested on the timely dialogue.
PUBLIC TAKEOVER BIDS and open dialogue with its stakeholders, using various
communication channels for each stakeholders’ More information regarding the stakeholders,
group, based on the idea of flexibility and facilitation dialogue and reciprocal communication / interaction
Publication of the requisite information, in included in part J of the Annual Financial Report 2021, of understanding their respective interests. with the Company are set out in the beginning of
accordance with article 10 par. 1 of Directive 2004/25/ per article 4 par. 7 of L. 3556/2007. this chapter, as well as in the Report on Sustainable
EU of the European Parliament and of the Council is More specifically, for those stakeholders (social Development & Corporate Responsibility.
partners) related to the broader, as well as local

7. COMPOSITION & OPERATION OF THE BOARD OF DIRECTORS,

6. GENERAL MEETING AND SHAREHOLDERS’ RIGHTS SUPERVISORY BODIES AND COMPANY COMMITTEES
Upgrade of Corporate Governance • The Set-up of a Nomination Committee.
The General Meeting of the Company’s shareholders Having shares listed on the stock exchange, the During 2021, important changes took place regarding • Updating of existing regulations (Company Bylaws,
is its supreme body and has the right to decide on Company is obliged to publish announcements in the Company’s governance in the context of the Audit Committee Operation Regulation)
any issue concerning the Company. The operation of compliance with Regulation (EU) 596/2014 of the “Vision 2025” strategic plan implementation, which
• Adoption of a BoD operation regulation, its
the Company’s General Meeting of shareholders, its European Parliament and Council on Market Abuse aims at rendering the Group a key player in the new
members’ training policy, of a policy and procedure
role and responsibilities, convocation, participation (MAR), Greek Laws 4443/2016 and 3556/2007 and the market conditions, through a holistic improvement
for the assessment of BoD members, as well as of a
requirements, the ordinary and extraordinary quorum decisions of the Hellenic Capital Market Commission. and development program, which determines its
procedure for notifying dependence relationships
and majority of the participants, the Presiding Board Publication of the above information is conducted strategy across all activities, on issues of Environment,
of its independent non-executive members.
and the Agenda, are set out in the Company’s Articles in a way that ensures fast and equal access to it by Society and Governance (ESG), investment strategy,
of Association. investors. All relevant publications/announcements corporate structure, and market image. Being a • Adoption of operation regulations of the
are available, on both the Athens Exchange and the principal pillar of “Vision 2025”, corporate governance Nomination Committee and of the Remuneration
All shareholders have the right to participate in the Company’s websites and are notified to the Hellenic was substantially upgraded, with the objective of and Succession Planning Committee.
General Meeting, provided that they hold Company Capital Market Commission. strengthening its structure and operation, so as to • Substantive upgrading and implementation of a
shares on the record date; that is, at the start of the support the new business model requirements in the conflict of interest policy, of a procedure on related
fifth (5th) day prior to the date of the General Meeting. The Shareholder Services & Corporate best possible manner. party transactions, for managing inside information
Announcements Department caters for making and disclosing transactions of discharging
Due to the special conditions and in the context of available the published company editions The most important changes that were effected in the managerial duties in the Company.
the measures taken by the Greek State for containing (Annual Report, Annual and Half-Year BoD Report, Company’s governance are: • Updating of the system on internal control system,
the spread of the COVID-19 virus, in 2021, the Prospectuses) to all stakeholders, ensuring the • The amendment of its Articles of Association risk management and regulatory compliance,
Company’s General Meetings were held exclusively investment community’s fair and equal information in order to align such with the provisions of L. as well adopting a policy and procedure for its
through electronic means, without the shareholders’ on issues concerning the Company and the Group, 4548/2018 and L. 4706/2020, the most significant periodic review.
physical presence at the venue where they were held. as well as the Company’s communication with the change being that in relation to the BoD’s
competent authorities (Hellenic Capital Market composition and election procedure (mode of Vision 2025, the Company’s strategy as well as the
Commission and Athens Exchange, London Exchange electing the new 11-member BoD, increase of the values are supported by individual aspects of the
Shareholders’ Information – secondary listing though Global Depositary number of independent members, introduction of Company’s governance model (BoD Governance, Risk
Shareholder Services & Corporate Announcements Receipts - and Luxembourg Stock Exchange diversity / minimum per gender quota criteria, etc.). Management Governance, Sustainable Development
Department is responsible for updating and keeping regarding bonds). Governance and Financial Governance).
• The adoption of an individual and collective
the Company’s shareholders’ registry, for servicing, as
suitability policy for BoD members through the
well for providing valid, prompt, accurate and equal
relevant Suitability Policy, in order to ensure
information to shareholders and supporting them in
its qualitative staffing through a transparent
exercising their rights.
framework, which will contribute to its effective
operation and will provide it with the necessary
prerequisites for fulfilling the Company’s vision,
mission and strategy.
096 ESG
097 ANNUAL REPORT 2021

GOVERNANCE the Greek State, acting on behalf of the shareholder sufficient time availability for discharging the duties
BoD HRADF S.A., and in accordance with the Suitability of a BoD member), in order to ensure objectivity in
Policy provisions, the BoD’s Nomination Committee, staffing the main governance body of the Company.
after appraising the detailed curricula vitae of the This new procedure fits time-wise with the Vision 2025
members nominated for appointment by the Greek transformation plan, proving in practice the Group’s
State and the assessment made by the external commitment to upgrading corporate governance
partners regarding these members’ suitability, it gave through a multi-collective BoD, which, by its role, will
an opinion in favor of the suitability of all the members support the new vision’s / strategy’s implementation,
nominated for appointment. driven by creating long-term value for the Company
SUSTAINABLE VISION 2025 FINANCIAL and safeguarding the general corporate interest.
DEVELOPMENT STRATEGY GOVERNANCE The change in the BoD’s structure of composition
GOVERNANCE VALUES
is particularly important for the Company, as it The table with the BoD composition, its members’
strengthens the corporate governance model, attendance of meetings and the number of Company
fortifying the role of stakeholders – through the shares held by each member, is presented below. The
General Meeting – in electing a larger part of the BoD size and composition are set out in detail under
members of the Board of Directors. part 2. of the chapter. The BoD has met twenty-three
(23) times in the year 2021.
Furthermore, the drawing up and adoption –in June
RISK 2021- of the Suitability Policy for the BoD members
MANAGEMENT constitutes a safeguard regarding the choice of
GOVERNANCE
members that meet –on an individual and collective
level- specific criteria (of business, knowledge, skills
and experience, honesty, integrity, as well as of

BOARD OF DIRECTORS
BoD Composition Capacity Participation Start of Number of
in BoD meetings participating Company
in 2021 in the BoD shares
(total 23) (31.12.2021)
Ioannis Papathanassiou Chairman – Non- 23/23 2019 0
executive member
Andreas Shiamishis Chief Executive Officer 23/23 2013 0
– Executive Member
11 2 36% 97% Georgios Alexopoulos Executive Member 21/23 2016 5,000

members women independent BoD meetings Iordanis Aivazis Independent non- 20/23 2019 0
executive member
members participation
Theodoros-Achilleas Vardas Non-executive member 20/23 2003 5,396
Nikolaos Vrettos Independent non- 13/13 2021 0
Generally • increasing the number of independent members executive member
In the context of the timely adjustment of its and adopting a suitability policy for BoD members, Anastasia (Νatasa) Martseki Non-executive member 16/16 2021 0
corporate governance framework to the provisions by decision of the Extraordinary General Meeting of Alexandros Metaxas Non-executive member 20/23 2019 0
of L. 4706/2020 and the Hellenic Capital Market 28th May 2021. Lorraine Scaramanga Independent non- 13/13 2021 0
Commission decisions issued by delegated authority executive member
of the law, the Company proceeded to amending Thereafter, with the assistance of specialized external Panagiotis (Takis) Tridimas Independent non- 13/13 2021 0
executive member
its Articles of Association, with the following as most partners, consulting services provided to the BoD’s
important changes: Nomination Committee regarding the nominees’ Alkiviades Psarras Non-executive member 21/23 2019 0
assessment and the selection of the nominated seven
• providing for an eleven-member composition of (7) members of the new BoD, which was elected by
the BoD and the right for an appointment of four (4) the Ordinary General Meeting of 30th June 2021 for a
members by the Greek State, acting on behalf of three-year term; namely until 30th June 2024.
the shareholder HRADF S.A., and with the rest of the
members being elected by the General Meeting, With regard to the four (4) members, appointed by
098 ESG
BoD MEMBERS’ EXPERIENCE AND BASIC SKILLS

IOANNIS ANDREAS GEORGE IORDANIS THEODOROS- NIKOLAOS ANASTASIA ALEXANDROS LORRAINE PANAGIOTIS ALKIVIADIS-
PAPATHANASIOU SHIAMISHIS ALEXOPOULOS AIVAZIS ACHILLEAS VRETTOS (NATASHA) METAXAS SKARAMANGA (TAKIS) CONSTANTINOS
VARDAS MARTSEKIS TRIDIMAS PSARRAS

CHAIRMAN CEO EXECUTIVE INDEPENDENT NON- INDEPENDENT NON- NON- INDEPENDENT INDEPENDENT NON-
NON-EXECUTIVE EXECUTIVE MEMBER NON- EXECUTIVE NON- EXECUTIVE EXECUTIVE NON- NON- EXECUTIVE
In addition to the above, the following were BoD • Georgios Papakonstantinou, Non-executive BoD MEMBER MEMBER EXECUTIVE MEMBER EXECUTIVE MEMBER MEMBER EXECUTIVE EXECUTIVE MEMBER
MEMBER MEMBER MEMBER MEMBER
members during 2021: member, Employees’ representative (1/1/-30/6/2021).
• Michael Kefalogiannis, Non-executive BoD member, • Theodoros Pantalakis, Independent, Non-executive
International Experience
appointed by the Greek State (1/1 - 30/6/2021). BoD member, elected by the special meeting of the
GREECE EUROPE INTERNATIONAL EUROPE EUROPE INTERNATIONAL INTERNATIONAL GREECE EUROPE EUROPE EUROPE
• Anastasia Makarigaki, Non-executive BoD member, minority shareholders (1/1/-30/6/2021).
appointed by the Greek State (21/5-30/6/2021). • Spyridon Pantelias, Independent, Non-executive
BoD member, elected by the special meeting of the Industry Experience
• Loukas Papazoglou, Non-executive BoD member,
appointed by the Greek State (1/1/-30/6/2021). minority shareholders (1/1/-30/6/2021). ENERGY AND
PETROLEUM
INDUSTRY
• Constantinos Papagiannopoulos, Non-executive
BoD member, Employees’ representative (1/1/-
30/6/2021).
Operational Experience
STRATEGIC
PLANNING
In accordance with article 18, par. 3 of L. 4706/2020, a Management Officers of the Company. DEVELOPMENT
table with the number of shares held also by the chief -NEW ACTIVITIES
AND PRODUCTS

FINANCIAL
MANAGEMENT AND
INTERNATIONAL
First & Last Name Function Number of Shares CAPITAL MARKETS
(31.12.2021)
Ioannis Apsouris Group Legal Services General Manager 50 ENVIRONMENTAL
PROTECTION, SOCIAL
Georgios Dimogiorgas Refineries General Manager 8,000 RESPONSIBILITY
AND GOVERNANCE
Aggelos Kokotos Group Internal Audit General Manager 1,086 (ESG)

Leonidas Kovaios Group IT & Digital Transformation General Manager 0 DIGITAL

TECHNOLOGY AND
Konstantinos Panas Oil Products Supply & Trading General Manager 100 INFORMATION
SYSTEMS
Alexandros Tzadimas Group Human Resources & Administrative Services General Manager 0
HUMAN
Vasilis Tsaitas Group CFO 3,000 RESOURCE
DEVELOPMENT
AND MANAGEMENT
LEGAL AND
INSTITUTIONAL
FRAMEWORK-CORPORATE
AND COMMERCIAL
TRANSACTIONS

MANAGEMENT
RISK

BoD YEARS OF PARTICIPATION

ACCOUNTING &
AUDITING

MARKETING &
COMMUNICATIONS
70%
0 to 3

Professional Experience
10% BOD EXPERIENCE
4 to 6 IN OTHER LISTED
COMPANIES

10% EXPERIENCE IN

SENIOR MANAGEMENT
7 to 9 POSITIONS
(EXECUTIVE ROLE)

SUCCESSFUL
10% MULTI-YEAR
10+ BUSINESS ACTIVITY
(ENTREPRENEUR)

MEMBER OF
THE ACADEMIC
COMMUNITY

Education
DEGREE, MASTERS, MSC ACCA MBA MSC PHD PHD MBA LLM FCA/MA/ PHD LLM
PHD LLB
100 ESG
101 ANNUAL REPORT 2021

BoD AGE COMPOSITION Indicatively, the BoD has the following responsibilities: statements, the annual management report
1. Decides on any act concerning the Company’s and the corporate governance statement, their
representation, governance, the management of consolidated form, as well as the BoD members’
its assets and the pursuit of its purpose, in general; remuneration report, are drafted and made public
in accordance with the provisions of the law;
2. Manages the corporate affairs with the objective
82% of promoting the company interest; oversees the 7. Recommends to the G.M. the appointment of a
Men > 50 years
implementation of its decisions, as well as of those certified auditor accountant or audit firm;
of the G.M.; 8. Ensures that the Company’s strategic planning is
18% 3. Determines and supervises the corporate aligned to corporate culture;
Women > 50 years
governance system of articles 1 to 24 of 9. Approves the strategic and the annual business
L.4706/2020, and monitors and periodically and financial plan;
assesses, at least every three (3) financial years, 10. Determines the extent of the Company’s exposure
its implementation and effectiveness, proceeding to risks it intends to assume;
to the necessary actions for dealing with
11. Ensures that an effective regulatory compliance
deficiencies;
procedure is in place;
4. Ensures the adequate and effective operation of
12. Sets or/and delimits the responsibilities of the Chief
the Company’s Internal Control System (“ICS”);
Executive Officer and of the other persons to whom
5. Ensures that all operations comprising the ICS are it is entitled to delegate powers of the Company’s
independent of the business segments they control management and representation, in accordance
and that they have the appropriate financial and with the Company’s Articles of Association;
human resources, as well as, the powers for their
13. Posts and keeps updated the information
effective operation, as prescribed by their role. The
regarding the election of its candidate members;
reporting lines and allocation of responsibilities
are clear, executable and duly documented; 14. Is informed and decides on any other development
affecting the Company’s status and operation.
6. Makes sure that the Company’s annual financial
ROLES AND RESPONSIBILITIES OF THE BoD

The BoD is the Company’s supreme governing body to promptly disclose to the rest of the BoD members Conflict of interest
and, chiefly, it formulates its strategy and supervises any personal interests which might arise as a result The BoD members have, by law, a duty of care and
and controls the management of the Company's of Company transactions falling within their duties, loyalty towards the Company. They act with integrity
assets. The composition and functions of the members as well as any other conflict of personal interest and to the Company’s interest and safeguard
of the BoD are determined by Law and the Company’s with those of the Company or associate companies, the confidentiality of the non-publicly available
Articles of Association. The primary obligation and arising by exercising their duties, in accordance with information.
duty of the BoD members is to constantly pursue the the Company’s relevant policies.
strengthening of the Company’s long-term economic The BoD members have to avoid any situation
value and to protect the general company interest. creating a conflict between their personal interests
and those of the Company, as well as not to acquire
In order to achieve the company objectives and advantages and personal benefits at the expense
the Company’s smooth operation, the BoD may of the Company, unless they are authorized by the
assign part of its authorities, except those requiring General Meeting of the Company’s shareholders, or
collective action, as well as the management the BoD.
administration or governance of the affairs, or
the Company’s representation to the Executive The BoD members must contribute their experience
Committee, to the CEO, or to one or more BoD and dedicate to their duties the requisite time and
members (executive and non-executive), to Company attention. They must report to the BoD’s Nomination
employees or third parties. The BoD members and Committee other professional commitments
any third party to whom BoD authorities have been they have, including substantial non-executive
delegated by the BoD are prohibited from pursuing commitments to companies, both prior to assuming
personal interests that conflict with those of the their duties, as well as every time that major changes
Company. The BoD members and any third party to occur during their term of office.
whom BoD authorities have been delegated, have
102 ESG
103 ANNUAL REPORT 2021

BoD members’ participations in other companies Company’s BoD members, are not members of
Except circumstances with participation in another legal entity’ governing, management or BoD
companies that are parties related to the Company, supervisory body, with the following exceptions:
per the meaning of Annex A of L. 4308/2014, the

First & Last Name Function Participation in another company

Andreas Shiamishis Chief Executive Officer BoD member/ Hellenic Federation of Enterprises (SEV)
BoD Chairman / SEV SUDEV (VIAN)
Iordanis Aivazis Independent Non-Executive Chairman of the Special Liquidations Committee /
Member Bank of Greece
Member of the Executive Committee / Audit Remuneration andSuccession Nominations Other
Hellenic Financial Stability Fund Committee Planning Committee Committee Committees
Nikolaos Vrettos Independent Non-Executive BoD member
Member “nanoSaar A.G.”

Anastasia Martseki Non-executive member BoD member (Independent Non-executive)

“Fourlis Trade Estates REIC”
Lorraine Scaramanga Independent Non-executive BoD member “Eurobank Private Bank Luxembourg”
member General Partner & Manager of the limited partnership “L.
Scaramanga & Co LTD” • Oil Products Procurement
3 members 3 members 3 members
Panagiotis Tridimas Independent Non-executive Executive member of the General Council / Hellenic Financial 100% independent 67% independent 67% independent • Labour Issues
member Stability Fund Committee
• Sustainable Developement
Lorraine Scaramanga Iordanis Aivazis Iordanis Aivazis Committee
Iordanis Aivazis Theodoros - Achilleas Vardas Theodoros - Achilleas Vardas • Executive
Panagiotis Tridimas Nikolaos Vrettos Panagiotis Tridimas Committee

Executive and non- executive BoD members legislation, the assignment of responsibilities based
The executive members of the BoD, headed by the on relevant BoD decisions, and the Code adopted
Chief Executive Officer, are occupied with the day-to- by the Company, as set out in the Company’s Bylaws.
day management of affairs falling under their areas The Group Internal Audit General Division reports
of responsibility, as well as, with ensuring the smooth administratively to the Chairman. The most senior
running of the Company. They are responsible for non-executive BoD member deputizes for the Audit Committee comprising three non-executive and, in their majority,
implementing the strategy defined by the BoD and for Chairman, when he is absent or impeded. According to its Operation Regulation in force, which independent, in the meaning of the provisions of L.
supervising the execution of its decisions. was approved and put into effect on July 15, 2021 by 4706/2020, members thereof with a three-year term
Chief Executive Officer virtue of the BoD decision no. 1388/1/15.7.2021, the of office and authorized the BoD to appoint them
The non-executive members of the BoD, including The Chief Executive Officer is the senior governing Audit Committee may either be a committee of the after ascertaining the fulfilment of the criteria and
the independent non-executive members, are body and legal representative of the Company and BoD, exclusively comprising non-executive members conditions of article 44 of L. 4449/2017.
charged with: (i) monitoring and reviewing the is responsible for all its business segments and all its thereof, or an independent committee, comprising The Committee’s members have sufficient knowledge
Company’s strategy, its implementation, as well as the operations. non-executive BoD members and third parties or third of the sector in which the Company operates. At least
achievement of its goals; (ii) the executive members’ parties only. (1) Committee member, which is independent in the
effective supervision, including the supervision of their Concise curricula vitae of the BoD members are set meaning of the provisions of article 9 of L. 4706/2020,
performance. Special BoD decisions determine how out in the end of the chapter. The type of the Committee, the term of office, the has documented adequate knowledge and
the Company is represented and bound. number and functions of its members are determined experience in auditing or accounting. This member
BoD Committees by the Company’s General Meeting of shareholders. mandatorily attends the Committee’s meetings
BoD Chairman The BoD has set up committees for the purpose The Audit Committee comprises no less than three (3) concerning the approval of financial statements.
The BoD Chairman, who is a non-executive member, of achieving the company objectives and the members, who, in their majority, are independent of
is responsible for convening, chairing and steering the Company’s smooth operation. Each BoD Committee the Company, within the meaning of the provisions of Pursuant to the above decision and taking into
meetings, for the keeping of minutes, the signing of discharges the duties assigned to it by the BoD, article 9 of L. 4706/2020. account the specific committee’s vital role in creating
the relevant resolutions and for the BoD’s operation, acts within its remit and promptly informs the BoD a strong corporate governance model, the BoD
in general, as this is provided in the Company’s regarding its actions and any developments that On June 30, 2021, the Ordinary General Meeting of appointed Iordanis Aivazis, Lorraine Scaramanga
Articles of Association and the law. The Chairman’s came to its attention. the Company’s shareholders, decided, following and Panagiotis Tridimas, all independent non-
responsibilities are determined on the basis of the the election of the members of the Company’s new executive members thereof, as members of the Audit
Company’s Articles of Association, the applicable BoD, that the Audit Committee is a BoD committee, Committee, after ascertaining that they meet all the
104 ESG
105 ANNUAL REPORT 2021

criteria of article 44 of L. 4449/2017 and of article 9 and integrity of the financial reporting; that is the approval of the 2020 Annual Financial Report, Upon unanimous acceptance of the Audit
of L. 4706/2020, as, collectively, they have adequate the accuracy, completeness and correctness of the half-year report and the interim announcements Committee’s recommendation by the Board of
knowledge of the sector in which the Company the financial reporting, including the relevant on the Company’s financial performance. Directors, EY’s re-election for conducting the statutory
operates and one of them, Ms. Lorraine Scaramanga, disclosures, approved by the BoD and published; • It monitored the effectiveness of the Company’s audit in the year 2021, was approved by the Ordinary
has adequate knowledge and experience in • Its role in the above, under (a) process; i.e. internal audit function and approved the planning General Meeting of Shareholders of 30th June 2021.
accounting, auditing and finance (non-practicing recording of the actions to which the Audit of internal audits for the year 2021. Following requests by the certified auditors regarding
certified auditor) and that the Audit Committee, Committee proceeded in the course of the provision of services to the Company beyond
• It was informed of the Regulatory Compliance
by this composition thereof, can fulfill the duties conducting the statutory audit. the statutory audit and after the Audit Committee
Service activities.
and obligations set out in par. 3 of article 44 of L. was assured that the services in question concerned
4447/2017. • It received all the internal audit reports, while permissible by the relevant legislation services and
2. It monitors, examines and evaluates the financial holding regular meetings with the Internal Audit that the fees for providing such would not impair the
Finally, the Company’s Audit Committee, at its reporting preparation process; namely the General Manager for discussing operational and certified auditors’ independence, it approved their
meeting of July 1, 2021, was formed into body, electing mechanisms and production systems, the flow and organizational issues of the GIAGD, aside from the provision.
Ms. Lorraine Scaramanga as its Chairwoman. For the dissemination of the financial information issued internal audit reports. During the year, quarterly
period from 1/1 up until 30/6/2021 (inclusive), Messrs by the Company’s organizing units involved. The progress reports with the key findings, were Remuneration and Succession Planning Committee
Spyridon Pantelias and Theodoros Pantalakis, both Audit Committee informs the BoD of its findings submitted to the Committee; the BoD was informed In its present composition, the Company’s
independent non-executive members of the BoD and submits proposals for improving the process, if of the said reports, including the key findings and Remuneration and Succession Committee comprises
under its previous composition and in accordance considered advisable. means of addressing them. three (3) non-executive BoD members, two of which
with L. 3016/2002, were Chairman and member of the 3. It monitors, examines and assesses the adequacy • In the context of adjusting the Company’s are independent. Mr. Iordanis Aivazis, independent
Audit Committee, respectively. and effectiveness of the entirety of the Company’s Corporate Governance system to the provisions of L. non-executive BoD member, is the Committee’s
policies, procedures and controls regarding, on 4706/2020, it recommended for approval by the BoD, Chairman and its members are Messrs. Theodoros-
The Audit Committee supports the Company’s BoD in one hand, the internal control system and, on the its Operation Regulation, the GIAGD’s Operation Achilleas Vardas, non-executive BoD member, and
its duties regarding the supervision of: other hand, the assessment and management of Regulation, the Policy and Procedure for the Internal Nikolaos Vrettos, independent non-executive BoD
• the financial statements’ statutory audit procedure risks related to financial reporting. With regard to Control System’s Periodic Assessment. member.
and the update of the BoD on its results; the internal audit function, the Audit Committee • It approved the salary adjustment of the
monitors and inspects the GIAGD’s proper operation remuneration of the GIAGD’s General Manager Within 2021, it held five (5) meetings, attended by all its
• the completeness and integrity of the standalone
and evaluates its work, adequacy and effectiveness, (in a joint meeting with the Remuneration and members, the subject (of the activities) of which is set
and consolidated Company financial statements;
without, however, infringing its independence. Succession Planning Committee). out concisely below:
• the design adequacy and operational effectiveness Furthermore, it reviews the information disclosed
• It held six separate meetings with the Company’s • Approval of the BoD members’ Remuneration Report
of the internal control system; with regard to the internal audit and the Company’s
external auditors, on 23 February, 4 and 25 August, for fiscal period 2020;
• the effective risk management, quality assurance main risks and uncertainties in relation to financial
4 November and on 3 and 13 December. The Audit • Amendment of the Remuneration Policy;
and compliance of the Company; reporting. In this context, the Committee informs
Committee, in assessing the experience and • Granting of an annual variable remuneration to the
• the Company’s compliance with the legal and the BoD of its findings and makes suggestions for
knowledge of the Ernst & Young (EY) audit team, Managerial level officers, based on the fulfilment of
regulatory requirements applicable from time to improvement, where appropriate.
concluded that the auditing procedure that was the performance criteria, and of a special bonus to
time, as well as with the Code of Conduct; 4. It reviews and monitors the certified auditors/ applied by the external auditors was effective and the Company’s employees for reporting year 2020, in
• the design adequacy and operational effectiveness audit firms’ independence in accordance with ascertained their objectivity and independence. order to deal with the special conditions created as
of the corporate governance system; L.4449/2017 (articles 21, 22, 23, 26 and 27), as well
• It recommended EY’s re-election as audit firm a result of the pandemic (COVID-19);
as with article 6 of Regulation (EU) 537/2014 of the
• the internal audit procedure, and the GIAGD’s for conducting the audit of fiscal year 2021 (5th • Discussion on a retirement benefits plan for health
European Parliament and of the Council of 16th
performance; consecutive year), given that EY has undertaken reasons;
April 2014, and in particular, the appropriateness of
• the certified auditors/audit firm’s selection the statutory audit of the Company’s financial
providing non-audit services to the audited entity, in • Recommendation for the approval by the General
procedure and review of their independence. statements since 2017, following a relevant tender
accordance with article 5 of the Regulation. Meeting of the BoD Chairman’s contract regarding
procedure, and the so far experience from the audit
5. It is responsible for the certified auditors’/audit his new term of office;
Correspondingly and in relation to the above, the had been satisfactory.
firm’s selection process and nominates the certified • Approval of the salary adjustment of the GIAGD’s
Audit Committee has the following responsibilities, in
auditors/audit firms that will be appointed by a
greater detail:
decision of the General Meeting.
1. It monitors the procedure and conduct of the
statutory audit of the Company’s standalone and During 2021, the Audit Committee, in exercising its
consolidated financial statements. In this context, duties, held eighteen (18) meetings, attended by all its
it updates the BoD by submitting a relevant report members, the subject (of the activities) of which is set
on the issues that arose from the statutory audit’s out concisely below:
conduct, explaining in detail:
• Jointly with the BoD’s Finance and Financial
• The statutory audit’s contribution to the quality Planning Committee, it recommended to the BoD
106 ESG
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General Manager’s remuneration (joint meeting Tridimas, independent non-executive BoD member.
with the Audit Committee).
The mission of the Nomination Committee, is,
The mission of the Remuneration and Succession in acting according to the criteria stated in the
Planning Committee is to: Company’s suitability policy, to identify and
1. Support the BoD in the work of drafting or/and nominate to the BoD individuals eligible for BoD
revising the Remuneration Policy, which is submitted and its committees’ membership and to opine on
for approval to the GM, as well as to study the the suitability of the candidate appointed members
information included in the annual remuneration that are nominated by the State. Furthermore, the
report, opining on such to the BoD, prior to its Committee ensures the smooth succession and
submission to the GM. continuity of the Company’s BoD and evaluates the
suitability, completeness and effectiveness of the
2. Formulate or approve proposals by the
existing BoD members.
Management on the guidelines’ framework
regarding the remuneration of Top Management
Its main responsibilities are the following:
Officers and Management Officers and approve
proposals by the Chief Executive Officer to the BoD 1. Suitability assessment of Candidate BoD Members
regarding the remuneration of the Group Internal appointed by the State;
Audit General Manager (in collaboration with the 2. Election of Candidate BoD Members elected by
Audit Committee). the General Assembly of shareholders (Preparation,
3. Formulate or approve proposals by the Candidates’ sourcing, Suitability Assessment,
Management regarding variable remuneration Nomination);
plans and voluntary retirement schemes, insurance 3. BoD Evaluation (BoD Evaluation Policy, Annual
schemes and performance incentive schemes Evaluation, External Evaluation, Committee’s self-
for Top Management Officers and Management assessment);
Officers. 4. BoD Training;
4. Ensure that a Top Management Officers’ succession 5. Succession Plan;
plan is in place and cater for submitting relevant
6. Supporting the BoD in implementing the Company’s
recommendations to the BoD and/or the Chief
Policy for Preventing and Managing Conflict of
Executive Officer.
Interest Situations.

Nomination Committee
The primary task of the Nomination Committee and
The Nomination Committee was established by
subject-matter of the two meetings it held, with all its
the BoD decision no. 1383/5/29.4.2021, by which
members attending, right after the adoption by the
its Operation Regulation was also approved.
Extraordinary General Meeting of 28th May 2021 of the
The Nomination Committee comprises three (3)
BoD members’ Suitability Policy, was putting together
non-executive BoD members, two of which are
and recommending to the Ordinary General Assembly
independent. Mr. Iordanis Aivazis, independent non-
of 30th June 2021, the candidate members that met the
executive BoD member, is the Committee’s Chairman
criteria of L. 4706/2020 for the Company’s new BoD.
and its members are Mssrs. Theodoros-Achilleas
Vardas, non-executive BoD member, and Panagiotis
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Other BoD Committees management of risks and on changes of a strategic The committee is responsible for supervising • Formulating the strategy and development plan for
The work of the BoD is also assisted by other nature, which occur in the financial, economic, the definition of the stakeholders and the mode the Group’s activities, in the form of mid-term and
committees, set up by a decision thereof. Specifically, environmental, technological, political and social of communicating with such, in respect of annual business plans.
the current committees are the following: environment and may affect its activities overall, understanding their interests, for identifying the • Monitoring the progress of the works of all Group
its business action, its financial performance, as Company’s substantial issues, for implementing the activities through financial results and ΚΡΙs.
Oil Products Procurement Committee well as the implementation of its strategy and the sustainability policy and the undertakings included • Monitoring, information and coordination on issues
The Oil Products Procurement Committee, which achievement of its goals. More specifically, with in it, as well as for offering guidelines as to individual affecting the Group’s activities and requiring a well-
comprises four (4) BoD members, of which one (1) is the corporate transformation and Vision 2025, the aspects / pillars for implementing the said policy coordinated approach by the entire Management
an executive BoD member (Georgios Alexopoulos, Company enters into new business activities, which (such as health and safety, the environment and team.
Chairman of the Committee), while the other three require the prompt identification and management climate change, the society) and the risks related
members of the Committee (Theodoros-Achilleas of risks and the drawing of a strategy suitable for to them. The Company’s and the Group companies’ Executive Committee composition:
Vardas, Alexandros Metaxas and Alkiviades Psarras) achieving the ambitious mid long-term business commitments refer to the health, safety, environment 1. Chairman: the Company’s CEO, Mr. Andreas
are non-executive BoD members. goals, by planning appropriate investments and and sustainability policy, which is included in the Shiamishis
securing the necessary resources. Company’s Bylaws.
2. Vice-chairman: the General Manager of Group
The work of the Oil Products Procurement Committee
Strategic Planning and New Business Activities,
is: The mission of the Strategy and Risk Management The setting-up and composition of this
Mr. Georgios Alexopoulos, who will be acting as
1. Awarding tenders and approving the procurement Committee is, inter alia, to approve the corporate committee were also decided by BoD decision no.
Chairman in any case of the Chairman's absence
of oil products, following a unanimous decision framework for risk management and the relevant 1387/2/30.6.2021. The Company’s Chief Executive
or impediment.
of the members regarding the purchase, sale and policies and methodologies, to determine the Officer, Mr. Andreas Shiamishis, is the Committee’s
level of risk appetite and the risk tolerance levels, Chairman and its members are Messrs. Georgios 3. The General Manager of Oil Products Supply &
transportation of crude oil and products thereof (of
to monitor and approve the management of Alexopoulos (executive BoD member), Ioannis Trading, Mr. Konstantinos Panas
over €100 million);
significant corporate risks, as well as to oversee Papathanassiou (Chairman - non-executive BoD 4. The Refineries General Manager, Mr.Georgios
2. Approving the cooperation framework in cases of
the implementation of effective risk management member), Nikolaos Vrettos (independent non- Dimogiorgas
crude oil procurement directly from a state body
measures. executive BoD member) and Anastasia Martseki (non- 5. The International Retail Director, Mr. Konstantinos
of an oil producing country, which determines sale
executive BoD member). The Committee has not met Karahalios
prices unilaterally.
The setting-up and composition of the newly founded in 2021. The said committee’s composition, including 6. The Group CFO, Mr. Vasileios Tsaitas
3. Registering customers/suppliers in the Company’s committee, were decided by BoD decision no. members that are common with those of the Strategy
Customers/Suppliers Registries. 7. The Group Human Resources & Administrative
1387/2/30.6.2021. The Company’s Chief Executive and Risk Management Committee and with the Chief
Services General Manager, Mr. Alexandros
Officer, Mr. Andreas Shiamishis, is the Committee’s Executive Officer as chairman, shows the importance
Within 2021, the Oil Products Procurement Committee Tzadimas
Chairman and its members are Messrs. Georgios the Company attributes to sustainable development,
held fifteen (15) meetings. Alexopoulos (executive BoD member), Theodoros – which constitutes a key pillar for implementing Vision 8. The Group Legal Services General Manager, Mr.
Achilleas Vardas (non-executive BoD member) and 2025, aiming principally at redefining the ESG strategy Ioannis Apsouris
Labour Issues Committee Nikolaos Vrettos (independent non-executive BoD and the targets associated with the greenhouse gas 9. The Group IT & Digital Transformation Manager, Mr.
The Labour Issues Committee, which comprises two member). The Committee has not met in 2021. emissions. Leonidas Kovaios
(2) non-executive BoD members (Alkiviades Psarras, 10.The Group Health, Safety, Environment and
Chairman and Alexandros Metaxas, member) and the Sustainability Committee Executive Committee Sustainable Development Director, Mr. Antonis
Chairperson of the most representative employees’ Having incorporated the sustainable development The Company has an Executive Committee, the Mountouris
association or its deputy, held two (2) meetings in the in its strategic vision (Vision 2025), the major issue of responsibilities and operation of which have been
course of the year. The Committee was established transitioning to a low-carbon emissions’ economy determined by a number of BoD decisions, the most
in accordance with the Company’s Internal Labour is set at the core of the Company’s future actions recent of which being decision no. 1337/2/29.11.2018,
Regulation and has jurisdiction to rule as a second and the Company’s vision for health, safety and the while its composition is determined by a decision of
instance reviewing body on any appeal filed against environment is “Zero Impact – Zero Damage”, as a the Management.
disciplinary sanctions imposed by the Company’s condition for sustainable development.
competent disciplinary body. The Committee held The Executive Committee is both advisory and
two (2) meetings in the course of the year. The Committee’s mission is to assist the BoD in executive in nature, as well as executive, to the extent
strengthening the Company’s long-term commitment that specific executive powers will be assigned to it
Strategy and Risk Management Committee to create value in all three pillars of Sustainable by the BoD. It processes and shapes strategic issues
The Strategy and Risk Management Committee Development (economy, environment and society) on all sectors of the Group's and its subsidiaries’
was established in 2021, taking into account and to supervise the implementation of responsible (domestic and foreign) business activities.
the requirements of the Company’s corporate and ethical business conduct, on matters regarding Indicatively (and without limitation), the Executive
transformation and the importance it places on the the Environment, Society and Governance (ESG). Committee’s main responsibilities are:
110 ESG
111 ANNUAL REPORT 2021

BoD Assessment The BoD, through the Nomination Committee, is More information regarding the Policy and its content • Ensuring equal treatment and providing equal
According to the relevant policy adopted by BoD responsible for initiating, guiding and coordinating is available on the Company’s website (https://www. opportunities to all potential BoD members,
decision no. 1388/1/15.7.2021, its assessment aims the process for the election of the suitable candidate helpe.gr/investor-relations/corporate-governance/pol irrespective of gender, race, color, national, ethnic
at providing the requisite feedback with regard BoD members, subject to the shareholders’ rights. itikikatallilotitasmelonbod/). or social background, religion or convictions,
to its suitability and effectiveness for improving its property, birth, family status, disability, age or sexual
operation, maximizing its potential and identifying Furthermore, the Nomination Committee receives Diversity Policy orientation.
areas requiring further development, in order to a written brief by the State (which, according The Company considers the principle of diversity to
ensure its effective operation and the fulfillment of its to the Company’s Articles of Association, has a be important for the composition of its governance More information regarding the Policy and its content
role as the supreme governing body of the Company. right to directly appoint BoD members on behalf bodies. is available on the Company’s website, under the
of the shareholder, HRADF S.A.), which includes Suitability Policy (https://www.helpe.gr/investor-
The policy applies to all Company BoD members, who the ascertainment of the suitability criteria of the It, therefore, applies a diversity policy with the aim relations/corporate-governance/politikikatallilotitas
participate in it for a period more than six months at members to-be-appointed, in accordance with the of promoting a suitable level of differentiation in the melonbod/).
the beginning of the assessment and takes place: Company’s suitability policy, as well as their detailed BoD and a multi-collective team of members. Through
• on an annual basis, in the form of self-assessment; curricula vitae, and opines on it. The Committee’s putting together a broad range of qualifications and It is noted that, in that direction, the Company
positive opinion constitutes an essential precondition skills in selecting the BoD members, a variety of views strives to take into account the above in the Human
• on a three-year basis, conducted entirely by a
for the appointment of BoD members, as per the and experiences is ensured, for the purpose of taking Resources Management Procedures.
specialist external consultant.
above. the right decisions.
Selected diversity data regarding 2021 are set out
The Nomination Committee, under the BoD
The Nomination Committee is responsible for The Policy includes the basic diversity criteria, below:
Chairman’s supervision, is responsible for
identifying candidate BoD members, who, in its which are applied by the Company in selecting BoD
coordinating the BoD’s external assessment regarding
view, meet the relevant criteria. The Nomination members and constitute essential priorities (diversity
its members’ independent and collective suitability
Committee’s nominations are submitted to the goals) of the Company:
and effectiveness, which will be conducted by an
BoD, which introduces the nominated for election • Adequate representation per gender and,
external consultant within 2022.
as BoD members, according to the Committee’s specifically, at least of the mandatory by Law
nominations, to the General Meeting of shareholders, twenty five percent (25%) of the total BoD members.
Suitability Policy
in accordance with article 78 of L. 4548/2018 and the In case of fraction, this percentage is rounded to
The Suitability Policy for the members of the
Company’s Articles of Association. The Committee’s the previous whole number.
Company’s Board of Directors sets out the core
positive opinion constitutes an essential precondition
principles and the framework for the selection,
for a candidacy to be nominated by the BoD for
renewal of the term of office and replacement
election by the General Meeting of shareholders.
of the BoD members, as well as the criteria that
According to the Company’s Articles of Association,
have been set for this purpose. The Policy is fully
the BoD comprises eleven (11) members, of which four
aligned to the applicable provisions of the Greek BoD COMPOSITION
(4), at minimum, are independent non-executive.
legislation concerning the corporate governance of
sociétés anonymes and, in particular, the provisions
The number of committees that will be operating in
in article 3 of Law 4706/2020, in Circular 60/2020
the framework of the BoD, or any need for assigning
of the Hellenic Capital Market Commission, as
further special powers and authorities to its members,
well as in the Company’s Articles of Association.
may be adjusted in accordance with its operational
Moreover, the Suitability Policy is aligned to the
requirements, putting their knowledge, reputation and
corporate governance code, as this is adopted by
experience to use, pursuant to the present.
the occasional Company corporate governance
statement, in accordance with the provisions of
articles 152 of L. 4548/2018 and 17 of Ν. 4706/2020. 11 9 2 27% 73%
The suitability criteria set by the Suitability Policy are members men women Double or Greek
the following: >50 >50 other
The purpose of the Policy is to set out:
1. Individual Suitability
• general principles and guidelines to the Nomination
Committee for the selection, evaluation and • Adequacy of knowledge and skills
nomination of candidate members to the BoD; • Morality and Reputation
• criteria for the selection and assessment of the • Independence of judgement
suitability of candidate BoD members; • Allocation of sufficient time
• criteria for the assessment of the BoD members’ 2. Collective Suitability
individual and collective suitability.
3. Diversity Criteria
112 ESG
113 ANNUAL REPORT 2021

HELLENIC PETROLEUM STAFF DATA TABLE (31.12.2021) Nations’ Global Compact, with the relevant progress BoD members’ compensation for their participation
report (Global Compact Communication on Progress in BoD and Committees’ meetings in 2021
- CoP). For the fiscal period 1.1.2021 – 31.12.2021, the
Gender Managerial level officers Other staff compensation paid to the BoD members is the one
Men 138 1,728 (242*) The substantial non-financial issues concerning provided in the current Remuneration Policy.
Women 34 200 (138*) the Company’s long-term sustainability, as well as
the ways of addressing them, are summarized in The most recently approved BoD members’
Age this chapter and in the Sustainable Development remuneration report (fiscal year 2020) has been drawn
and Corporate Responsibility Report. These issues up in accordance with article 112 of Law 4548/2018, as
<30 years old 23
are related to the broader pillars of health, safety, well as with the Company’s Remuneration Policy that
30-50 years old 67 1,278
environment and climate change and society, in was approved on 20.12.2019. It was discussed at the
>50 years old 105 627 general. Company’s Annual Ordinary General Meeting, dated
30 June 2021, which was attended by shareholders
Education As regards the health and safety and environmental representing 100% of the share capital, while the
issues affecting local communities, too, the Group, percentage of votes “IN FAVOUR” amounted to 98,45%
Doctorate (Ph.D) 16 13
due to the nature of its activities, faces a number of the shareholders present.
Post-graduate degree 75 112
of risks in its day-to-day operations, regarding the
University degree 81 72
use of hazardous and flammable substances and The remuneration paid to the Company’s BoD
Technological Institute degree 397 technical challenges at production and distribution members for the fiscal period 1.1.2020-31.12.2020
Up to High School graduate level 1,334 facilities (or oil products, or not) of special complexity include both a fixed as well as a variable part, aiming
and major size. Inability to manage the above risks at aligning them to the Company’s business growth
*concerns non-technical specializations’ staff (engineers, highest/higher school graduates, office employees)
could have grave impact on the Group’s operation and effectiveness.
and financial position, including administrative
sanctions, or/and inability to conduct the activities. The 2020 remuneration report is available through the
Remuneration Policy (https://www.helpe.gr/investor-relations/corporate- As regards the investigation of risks concerning Company’s website https://www.helpe.gr, while the
The Company has established, maintains and governance/politiki-apodochon-melon-ds/ health, safety and environment issues, the Group uses respective report for 2021 will be posted following its
applies core principles and rules in determining the remunerationpolicyBoDmembers/). a series of handling procedures, at the equipment’s approval in June 2022.
remuneration of the BoD members (“Remuneration designing and operation, for managing and
Policy”), which contribute to its business strategy, Sustainability Policy containing them and monitors them through Key No stock options were granted during the 2021 fiscal
long-term interests and sustainability. The Company has incorporated sustainable Performance Indicators (ΚΡΙs). At the same time, it period and no stock award plan is in force.
development in its strategic planning and has actively participates in international organizations
The Policy was approved by a decision of the committed itself via the health, safety, environment for measuring and comparing key indexes with
Extraordinary General Meeting of the Company’s and sustainability policy, which aims at a safe the European oil and chemical industry, as well for
shareholders, dated 20 December 2019, and was and accident-free, economically sustainable transposing and incorporating best practices, in order
amended by a decision of the Ordinary General operation that respects the environment and to improve its performance on health, safety and
Meeting of shareholders of 30th June 2021, in order society, in accordance with the United Nations’ environmental issues.
to be aligned to the changes that followed the 17 Sustainable Development Goals (SDGs). At the
amendment of the Articles of Association and the heart of the Company’s planning lies the major More information regarding the Policy and its
approval of the Company’s Suitability Policy for BoD issue of transitioning to a low-carbon emissions content is available at the Company’s website,
members by the Extraordinary General Meeting of 28th economy and the Company’s vision for health, safety under the Bylaws (Internal Regulation) (https://www.
May 2021. and the environment is “Zero Negative Impact – helpe.gr/investor-relations/corporate-governance/
Zero Damage”, as a precondition for sustainable kanonismosleitourgias/).
The Remuneration Policy aims at determining the development. The Company’s and the Group
remuneration framework in a manner that succeeds Companies’ commitments are stated in the health,
in complying with the existing legislative framework safety, environment and sustainability policy, which
and the BoD members’ Remuneration Policy and in forms part of the Company’s Bylaws.
strengthening the transparency with regard to the
determination and payment of the BoD members’ The Company publishes a Sustainable Development
remuneration of any nature, in a way that is easy to and Corporate Responsibility Report on an annual
understand, clear and comprehensible. basis, following recognized sustainability reference
standards, such as the GRI Standards, the ESG
More information regarding the Policy and its Reporting Guide of the Athens Exchange (Athex),
content is available on the Company’s website as well as the adoption of principles of the United
114 ESG
115 ANNUAL REPORT 2021

Management

IOANNIS PAPATHANASSIOU ANDREAS SHIAMISHIS

Chairman, Chief Executive Officer,
Non –Executive Board Member Executive Board Member
He was born in Athens in 1954. He holds a degree in He was Secretary General of the Athens Chamber Holds an Economics degree specializing in Committee. In 2012, he assumed the responsibility for
Electrical Engineering from the National Technical of Commerce and Industry (ACCI) for six years (1987- Econometrics from the University of Essex and is a International subsidiaries and he was Deputy CEO
University of Athens. 1993) and President of the ACCI for seven years (1993- Fellow (FCA) member of the Institute of Chartered during the period 2014-2015 and 2017-2019, when he
2000). Accountants in England and Wales (ICAEW). became CEO.
Until 2002, he was Chairman and Managing Director
of “J.D. Papathanassiou S.A.”, a company engaged in In 1993, he was appointed Vice Chairman of the BoD He began his career in 1989 with KPMG in London, He is a founding member of the American Hellenic
the trading of technological equipment for buildings. of Public Gas Corporation (DEPA) S.A., while in 1991- specializing in banking and large multinational Chamber of Commerce (AMCHAM) board of
His political career started in 2000 when he was first 1992 he was advisor to the Minister of Industry on Groups before joining the international food and Corporate Governance and is also a member in
elected as a Member of the Greek Parliament, with energy issues. drink group DIAGEO in 1993, to assume senior Greek a number of professional bodies including the
the New Democracy party. He was re-elected in 2004, and European positions in Finance and Business Economic Chamber of Greece and ICAEW specialized
2007, 2009 and in May 2012. He served in several posts: He chaired the BoD of HELLENIC PETROLEUM S.A. also development. During 1998-1999, he also worked faculties. In 2020, he was elected in the BoD of the
• From March 2004 to September 2007, he was during the period 27/2/2014 – 4/5/2015. for the development of the food sector business Hellenic Federation of Enterprises (SEV) and from
Deputy Minister of Development for Commerce (Pillsbury) in Middle East and North Africa. Between June 2021 he is the President of the Business Council
and Consumers’ issues, while in 2005 he was also He speaks English, French and German. 2000-2002 he worked as Chief Financial Officer and for Sustainable Development (SEV VIAN).
assigned the Research and Technology issues of the Chief Restructuring Officer, in an ASE listed high-tech
Ministry. company (part of LEVENTIS Group) and in 2003 he
joined PETROLA HELLAS as Chief Financial Officer.
• From September 2007 to January 2009 he was
Deputy Minister of Finance and Economy for
After the legal merger and operational integration
Investments and Development.
of PETROLA HELLAS with HELLENIC PETROLEUM,
• From January to October 2009 he was Minister of he was appointed as CFO of the new Group in 2005
Finance and Economy. and became a member of the Group’s Executive
116 ESG
117 ANNUAL REPORT 2021

GEORGIOS ALEXOPOULOS IOANNIS APSOURIS GEORGIOS DIMOGIORGAS ANGELOS KOKOTOS

General Manager, General Manager, General Manager General Manager,
Group Strategic Planning Group General Counsel of the Group’s Refineries Group Internal Audit
and New Business,
A Chemical Engineer (B.Sc.), a graduate of the A Chemical Engineer with a Master’s in Business
Executive Board Member
POLYTECHNIC UNIVERSITY of NEW YORK, USA Administration, initially worked as an engineer
He is responsible for strategic planning, new Attorney at Law, qualified to plead before the and a M.Sc. holder from the same university before being promoted to Head of Handling &
business development, the Group’s gas & Supreme Court, holds a Law degree from the with a specialization in Process Design, Losses at the Aspropyrgos Refinery and then as
power, renewables, upstream and engineering Athens University and a Master’s Degree (DEA) Technical-Economic Studies, Thermodynamics Manager of Human Resources. He has worked
businesses and the Group’s representation in from the University of Aix-en Provence, France. and Business Administration. In 1985, he was for five years, respectively, as General Manager
international organizations. He has represented He was a partner at “Dryllerakis & Associates recruited to the former ELDA SA where he of Human Resources & Administrative Services
HELLENIC PETROLEUM on the Board of the Law Firm”, handling cases of corporate, assumed various positions of responsibility for both the HELLENIC PETROLEUM Group
European Petroleum Refiners Association as a commercial and civil law. He is Chairman of the until 1998. From 1998 to 2007, he was appointed and DEPA. He was Chairman of DIAXON SA
Principal or Alternate Director since 2012. He Board of Group’s subsidiaries ELPET BALKANIKI Deputy Director and then Director of Supply of and during the last seven years he is General
joined HELLENIC PETROLEUM Group in 2007. S.A., VARDAX S.A. and HELPE DIGITAL S.A. and Transportation, Sales and Risk Management to Manager of the Group’s Internal Audit.
serves on the Boards of three other Group the Oil Supply and Trading General Division of
He was Director of Business Planning & subsidiaries. HELLENIC PETROLEUM SA. From 2007 to 2009,
Development at an international, diversified he served as Senior Manager of the Elefsina
business group (SETE S.A.), based in Geneva, In January 2020, he was elected Chair of Refinery and until 2015, held the post of Senior
Switzerland, from 1998 to 2006, while at the the Legal Issues Group of Fuels Europe Manager of the Group’s Industrial Installations
same time being responsible for the Group’s (Division of the European Petroleum Refiners at the Aspropyrgos and Elefsina Refineries
energy portfolio. Association). He is a member of the Hellenic as well as Coordinator of the Supply Chain
Corporate Governance Council (HCGC) of Optimization Project.
He had previously worked in various technical the Athens Stock Exchange, member of the
and business development positions at Stone working groups on Corporate Governance and From 2015 to January 2019, he took over the
& Webster, Molten Metal Technology, Merck, Industrial Permitting of the Hellenic Federation Group's Reorganization and Development
Dow Corning, and Dow Chemical in the United of Enterprises (SEV) and of the Corporate Division and in 2019, the position of Senior
States between 1993 and 1997. Governance Committee of the American – Manager of the Group's Refinery, Technical
Hellenic Chamber of Commerce. He speaks Support, R&D and Refinement Division. Today
He holds an MBA from Harvard Business English, French, Spanish and Italian. he holds the position of General Manager of the
School (1998) and M. Sc. (1993) and B. Sc. (1992) Group’s Refineries. He has served as Chairman
degrees in Chemical Engineering from the of the Board of Directors of the subsidiary
Massachusetts Institute of Technology (MIT). Global SA and as a member of the BoD of
ASPROFOS SA.
118 ESG
119 ANNUAL REPORT 2021

LEONIDAS KOVAIOS CONSTANTINOS PANAS ALEXANDROS TZADIMAS VASILIS TSAITAS

General Manager, General Manager, General Manager, Group CFO
Group CIO Supply & Trading Group Human Resources &
Administrative Services

Leonidas Kovaios is a graduate of Information Chemical Engineer, graduate of the National He holds a degree in Chemical Engineering He is a graduate of Business Administration
Technology and Computer Engineering from the Technical University of Athens (NTUA). In from the National Technical University of from the University of Piraeus and holds an MBA
University of Patras and holds a MSc in the same 1989 he joined EKO in the Thessaloniki Athens (NTUA) and a Master's Degree in from INSEAD. He is a Fellow at the Association
field from the University of Waterloo, Canada. refinery’s planning department. In 1996, he Business Administration (MBA) from Strathclyde of Chartered Certified Accountants, with 20
He is an IT executive with more than 25-year was appointed Head of Business Planning at Graduate Business School. years of experience in finance and strategy in
experience in IT & Digital Transformation, as the Public Petroleum Corporation (DEP SA), the energy sector.
well as in the IT management and has held followed in 1998 by his appointment as Director He has 20 years of work experience in executive
leadership positions in large organizations. of Business Planning and Development at positions in the Human Resources and has He started his career at Shell Hellas, where
HELLENIC PETROLEUM and then as the Head of gained experience in the areas of labor he held the role of Financial Controller. He
In the course of his career, he held the position Supply and International Sales in 2007. relations, organizational development, talent worked for HSBC investment banking in London,
of CIO at Vodafone Greece and of Partner development and change management. He focusing on M&A advisory for European Oil
at EY as IT Technology Advisory lead. He also Since 2010, he has held the position of General has also 7 years of experience in management & Gas and utility companies. He also has
held leadership positions at industry-leading Manager of Supply and Trading of Petroleum positions in the commercial sector. professional experience in the development
IT Services Providers (SingularLogic, Intrasoft), Products at HELLENIC PETROLEUM. Born in 1959, and financing of RES projects. He joined the
managing large IT teams, as well as, assuming he is married and has a son. During his career among others, he held the role HELLENIC PETROLEUM Group in 2011 and has
full responsibility for business units providing of Deputy General Manager, Head of People been responsible for Investor Relations and
services to customers in the public and private and Organizational Development at Eurobank international capital markets, participating in
sector. until 2013 and held the position of Regional strategic initiatives of the Group. Since February
Human Resources Director at Colgate Palmolive 2022, he holds the position of Group CFO.
Since September of 2019, he is the Group CIO South Europe from 2014 to 2020, where he was
at HELLENIC PETROLEUM Group, leading in charge of the business units in Greece, Italy,
Information Technology Services, Digital Spain and Portugal.
Transformation Programs and Cyber Security
Functions. Since April 2020, he holds the position of
General Manager of Human Resources and
Administrative Services of the Group.
In 2021, HELPE’s share price recorded
an increase of 15.2%, above ATHEX
HELLENIC PETROLEUM
Composite Share Price Index Holdings in the Capital
performance
Markets
122 HELLENIC PETROLEUM HOLDINGS
IN THE CAPITAL MARKETS 123 ANNUAL REPORT 2021

MAIN INFORMATION HELLENIC PETROLEUM HOLDINGS’ SHARE PRICE EVOLUTION

(share price in € - Average daily volume, no. of shares)
300,000 9
HELLENIC PETROLEUM Holdings’ shares are traded HELLENIC PETROLEUM Holdings’ shares participate,
in the General Category (Main Market) of the Athens in a number of stock indices such as the ATHEX 8
Exchange (ATHEX: ΕLPΕ) and on the London Stock Composite Share Price Index, the FTSE/ATHEX Large 250,000
Exchange (LSE: HLPD), through Global Depositary Cap Index, the FTSE/ATHEX Energy Index, ATHEX ESG 7

Receipts (GDRs), while the international bond issue Index, FTSE/ATHEX Market Index, as well as a number
200,000 6
of its subsidiary HELLENIC PETROLEUM FINANCE, of other significant international indices. Indicatively:
due on 04/10/2024, is listed on the Luxembourg Stock MSCI Emerging Markets IMI, MSCI Emerging Markets
5
Exchange. Small Cap, FTSE World Europe Index, FTSE Eurozone. 150,000
4
The Company’s share capital amounts to
€666,284,703.30 divided into 305,635,185 shares 100,00 3

with a nominal value of €2.18 each. The Company’s

2
shareholders’ rights, arising out of their shares,
50,000
are proportionate to the percentage of capital
1
corresponding to the paid-in-share value. All shares
have the same rights and obligations arising from the 0 0
Law and the Company’s Articles of Association. The JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
liability of the Company’s shareholders is limited to
Volume (shares) Share Price (€)
the nominal value of the shares they own.

SHARE TICKER: SHARE PRICE DATA, FISCAL YEAR 2021

Average price €5.89

Lowest price €5.28
OASIS ELPE
Highest price €6.59
Reuters HEPr.AT
Bloomberg ELPE GA Average daily trading volume (no. of shares) 73,944

SHARE PRICE DEVELOPMENT ANALYST COVERAGE

During 2021, the ATHEX Composite Share Price Index Holdings' share price recorded an increase of 15.19%, The number of Greek and international brokerage firms covering HELLENIC PETROLEUM Holdings as of 31st of
increased by 10.43% compared to 2020 despite closing at €6.22 on 31.12.2021, with an average daily December 2021 amounted to ten (10) firms.
the pressure of the COVID-19 pandemic, positively trading volume of 73,944 shares for the year and an
impacted by the economic recovery, mainly due to average share price of €5.89. Greek Firms International Firms
strong tourism and Greece's GDP growth resurgence, • Alpha Finance • Wood Company
as well as the return of most listed companies • Axia Ventures • UBS
to profitability due to the improvement of their • Eurobank Equities • Edison
operational performance. The HELLENIC PETROLEUM • Optima Bank • Goldman Sachs
• NBG Securities
• Pantelakis Securities
124 HELLENIC PETROLEUM HOLDINGS
IN THE CAPITAL MARKETS 125 ANNUAL REPORT 2021

DIVIDEND POLICY SHAREHOLDING STRUCTURE

On June 30, 2021, the Annual Ordinary General €0.10 per share for the financial year 2021. The total The Company's shareholding structure mix in 2021, the participation of foreign institutional investors.
Meeting of Shareholders approved the distribution of dividend amounts to €122.3 million. The final dividend remained at the same levels with those of 2020, with
a final dividend of €0.10/share for the year 2020. for the financial year 2021 is subject to approval by an increase in the position of retail investors and the The shareholder structure as of 31.12.2021 was as
the AGM on 9 June 2022. In addition, an extraordinary participation of one of the main shareholders of the follows:
During its meeting held on 24 February 2022, the dividend that concerns 50% of the revenues Company, originated mainly following a decrease in
Board of Directors decided to propose an amount corresponding to the Company (€256 million), from
of €0.30 per share from prior year retained earnings the proceeds of DEPA Infrastructure's sale, is planned
as well as to propose to the AGM a final dividend of to be distributed. Shareholder Number of shares % Participation
Paneuropean Oil & Industrial Holdings S.A. 144,002,032 47.1%
Hellenic Republic Asset Development Fund 108,430,304 35.5%
Greek Institutional Investors 16,406,523 5.4%
DIVIDEND* Foreign Institutional Investors 8,963,968 2.9%
Retail Investors 27,832,358 9.1%
1.4 TOTAL NUMBER OF SHARES 305,635,185 100.0%

1.22
1.2

1 0.97

0.87
47.1%
0.8 0.75
Paneuropean Oil & Industrial Holdings S.A.

0.61
0.6 35.5%
0.50 Hellenic Republic Asset Development Fund
0.47
0.40 0.40
0.4
5.4%
Greek Institutional Investors
0.20
0.2

0.02
0.10
2.9%
Foreign Institutional Investors
0
2016 2017 2018 2019 2020 2021

Clean EPS DPS

9.1%
Retail Investors
*includes other distributions

€0.40/share €122.3 million

Total dividend total dividend
126 HELLENIC PETROLEUM HOLDINGS
IN THE CAPITAL MARKETS 127 ANNUAL REPORT 2021

EUROBOND ISSUE

Since 2013, the Group has raised more than €2.1 was held and Holders of 91% of the aggregate
billion through the issue of five internationally traded
bonds, making it the largest independent Greek
issuer. On October 4, 2019, the Group, through Hellenic
principal amount of the Notes were represented
at the meeting. The assets, liabilities, rights, and
legal relationships of the hived-down sector were
€599.9 million
bond issuance
Petroleum Finance plc (HPF plc), proceeded with transferred to OpCo by way of universal succession,
the issuance of a new five-year Eurobond of €500 in accordance with L. 4601/2019 and article 52 of
million, with a coupon of 2%, with part of the proceeds L. 4172/2013. The meeting approved the proposed
used for the partial prepayment of the €450 million amendments to the terms of the €599.9 million notes
Eurobond maturing in October 2021 through a tender with 2% coupon, due in October 2024, with 99.6% of the
offer. On October 5, 2020, HPF plc completed a €99.9 participating Holders voting in favour.
million retap on its existing October 2024 notes,
through a private placement, with a 2.42% yield. Also, during 4Q21, the Group repaid the €201 million
Eurobond, with 4.875% interest rate, through available
On 24 November 2021, following the resolution of cash.
the Board of Directors of the Company dated 30
September 2021, which approved the draft demerger The key features of the bond, issued by Hellenic December 2021 on the Luxembourg Stock Exchange,
deed by way of hive-down of the refining, supply and Petroleum Finance plc and guaranteed by HELLENIC are presented in the table below:
trading of oil products and petrochemicals business PETROLEUM Holdings S.A. outstanding, as of 31
sector with the establishment of a new company
(the OpCo), which will be a 100% subsidiary of the
Company, an extraordinary meeting of the Holders
Issue date Maturity Currency Issue Amount (m) Coupon ISIN
04/10/2019 04/10/2024 EUR 599.9 2% XS2060691719

HELPE 2024 BOND YIELD (MID YTM %)

6
INVESTOR RELATIONS SERVICES

5
The Company seeks to fully and fairly inform its • Regular contacts and meetings with analysts and
shareholders and bondholders both in Greece and fund managers
4 internationally, through a variety of events and • Attending roadshows and investor conferences both
2,973*
initiatives, such as: in Greece and abroad
3
• Regularly updating the Company’s website
• Quarterly reports outlining business activities and concerning basic industry performance indicators
2 financial results (press releases, presentations, which affect the Company’s financial performance.
teleconferences, internet)
1
• Annual Report, BoD’s interim and annual Financial
Report

0
• Teleconferences enabling investors/analysts to
1.10.2019 1.03.2020 1.07.2020 1.11.2021 25.02.2021 receive further information regarding the Group’s
activities
*as of 17.05.2022
The Group examines, evaluates and aims
at managing all possible risks, in line Risk
Management
with its framework, in order to ensure its
continuous and smooth operation
130 RISK MANAGEMENT
131 ANNUAL REPORT 2021

MAIN RISK FACTORS AND MITIGATING MEASURES

The Group is exposed to a variety of macroeconomic (foreign exchange, crude oil prices, refining margins), Financial risks
financial (capital structure, liquidity, cash flow, credit), regulatory and market (EU Emissions Trading System), as Capital structure • Diversification of funding mix and adaptation depending on
well as, operational risks. In line with international best practices and within the context of the local markets business activities
and regulatory framework, the Group’s overall risk management policies aim at reducing possible exposure to • Improvement of debt maturity profile based on market conditions
market volatility and/or mitigating any adverse effects on the Group’s financial position to the largest extent
• Reduction of borrowing cost
possible. The COVID-19 pandemic, as well as, the recent geopolitical upheavals in Eastern Europe, render the risk
• Management of indebtedness (deleverage)
management framework particularly important. The main risks faced by the Group, as well as, the corresponding
mitigating measures, are described below: • Funding mix optimization (fixed over variable interest rate)
Liquidity • Maximize cash from operating cash flow and available
credit lines (headroom)
• Issuance of Letters of Guarantee (LG) or Credit (LC) for
trade liabilities
• Maximize availability of open credit from crude suppliers
MAIN RISKS INDICATIVE MITIGATING MEASURES
Credit • Differentiation of customers’ mix
Macroeconomic environment • Faster collection of receivables (DSO reduction)
Crude oil and products market: • Refineries of high complexity and competitiveness, with financial • Review of customers’ rating status and limits
• Volatility of Crude Oil / Oil Product performance exceeding the average of European refineries and
Prices over-performance vs. benchmark margins
• Variation of Refining Margins • Balancing purchases with sales per period in order to reduce price Operational risks
exposure
Safety & Environment • Investments to improve levels of safety and environmental
• Framework for managing commercial risks involving Group executive protection
members
• Application of safety audit processes and regular inspection
• Hedging transactions subject to market conditions of all production facilities and storage and distribution
• Managing cash balances terminals
Global Economy: • Crisis management program • Continuous measurement of emissions from the Group’s
manufacturing facilities
• Intense economic recession • Capital investment management
conditions • Participation in international organizations for best practices
• Maximizing available liquidity
sharing in accordance with the refining industry’s highest
• Significant decrease in demand • Strong balance sheet standards
• Operational and working capital management
Ensure refineries’ supply • Proactive scheduling of refineries’ supply
Energy transition • Target to reduce the environmental footprint by 50% by 2030 and achieve with raw materials • Adjusting supply chain to address issues in case of a
• Decrease of fuel demand net zero by 2050 shortage in specific types of crude oil
• Increased climate compliance cost • Strategic portfolio diversification in RES, Nat Gas and electricity, as well as • Benefitting from the refineries’ location and configuration
other new forms of energy (e.g. hydrogen) with ability to access and process a variety of crude oil
• Investments for significant CO2 emissions reduction in main activities grades
Foreign exchange risk: • All transactions in crude oil and petroleum products, both domestically • Supply diversification
• Gross margin conversion and internationally, are carried out in dollars, converting into local Reduced operation or unplanned • Strict application of preventive maintenance programs
currency on the transaction date shut-down of a refinery
• Financial position translation • Periodic turnarounds in accordance with equipment
• Balance sheet management to match monetary exposure (assets – specifications
liabilities)
Compliance in terms of operation • Implementation of necessary measures for full compliance
• Hedging transactions subject to market conditions
and product quality with the existing specifications both in the production
Greek economy: • Export-oriented business model, with volumetric exports accounting for process, as well as the supply chain
• Reduced demand >50% of total • Investments concerning the adjustment of equipment
• Exposure to Greek banking system • Issue of Eurobonds diversifying funding mix and reducing cost configuration, in accordance with the national and European
• Significant percentage of gross refining margin dependent on institutional framework
• Credit risk
international prices of both crude oil and petroleum products Property and liability risk • Insurance coverage against a number of risks, including
• Economic evolution
• Continuous monitoring of domestic economic environment and damage of physical assets, personal and third-party injuries,
corresponding adjustment of the company’s strategy business interruption, product-related or other liability
132 RISK MANAGEMENT
133 ANNUAL REPORT 2021

OVERVIEW OF INTERNAL AUDIT SYSTEM

AND RISK MANAGEMENT
In the same context, the Group’s Internal Audit System monitoring mechanisms at various levels within the
and Risk Management include safeguards and organization, as described below:

RISK IDENTIFICATION, ASSESSMENT, MEASUREMENT AND MANAGEMENT

The identification and assessment of risks takes place company’s activities, but also in relation to several,
mainly during the strategic planning and the annual various stakeholders who may be affected.
preparation of the business plan. The benefits and
opportunities are examined in the context of the

PLANNING AND MONITORING / BUDGET

The Group’s performance is monitored through a performance through regularly issued reports and
detailed budget per operating sector and market. The budget comparisons with the actual results.
budget is adjusted systematically, and Management
monitors the development of the Group’s financial

ADEQUACY OF THE INTERNAL CONTROL SYSTEM

The Internal Control System consists of the policies, The Independent Internal Audit Department, by means
procedures and tasks which have been designed and of periodic assessments, ensures that the identification
implemented by the Management for the purpose of procedures and risk management applied by
the effective management of risks, the achievement Management are sufficient, that the Internal Control
of business objectives, the reliability of financial and System operates effectively, and that information
administrative information and compliance with laws provided to the BoD relating to the Internal Control
and regulations. System, is reliable and of good quality.

ROLES AND RESPONSIBILITIES OF THE BoD

The role and responsibilities of the BoD are described approved by the BoD.
in the Company’s Internal Regulations Manual, which is

PREVENTION AND REPRESSION OF FINANCIAL FRAUD

The areas that are considered to be of high risk for department, all Company activities are subject to
financial fraud are monitored through appropriate audits by the Internal Audit Department, the results of
internal controls and enhanced security measures. which are presented to the BoD.
In addition to the internal controls applied by each
134 RISK MANAGEMENT
135 ANNUAL REPORT 2021

INTERNAL OPERATING REGULATION CHART OF AUTHORITIES

The Company has compiled relevant Internal which promote the adequate segregation of duties The Group has in place a Chart of Authorities, which actions (e.g. payments, receipts, contracts, etc.).
Regulations, approved by the BoD. The Internal within the Company. depicts assigned authorities to various Company
Regulations determine powers and responsibilities, executives, in order to complete certain transactions or

THE GROUP’S CODE OF CONDUCT CRISIS MANAGEMENT OF COVID-19 PANDEMIC

In the context of the fundamental obligation of reason, the Code constitutes a practical guide of the The Group responded immediately to the outbreak smooth operation of its activities and uninterrupted
proper corporate governance, ever since 2011, the day-to-day tasks of all Group employees, as well as, of the COVID-19 pandemic and has, since the end supply of our markets (see chapter “Operations
Company has drafted and adopted the Code of third parties who cooperate with it. of February 2020, taken various initiatives, primarily Environment”).
Conduct, approved by the BoD. The Code of Conduct focusing on ensuring the health and safety of its
summarizes the principles according to which any employees and all of its stakeholders, as well as the
person, employee or third party involved in the
operations of the Group, as well as any collective body,
should act within the framework of their duties. For this

SAFEGUARDS IN INFORMATION TECHNOLOGY SYSTEMS

The Group’s IT & Digital Transformation Department is The Group has developed an adequate framework to
responsible for developing the IT strategy and for staff monitor and control its IT systems, defined by a set of The Group’s risk management
training to cover any arising needs. It is also responsible internal controls, policies and procedures.
for the support of IT systems and applications through policies aim at reducing
the drafting and updating of operation manuals, in
cooperation with external consultants where necessary. possible exposure to market
volatility and mitigating any
adverse effects on the Group’s
financial position
SAFEGUARDS FOR FINANCIAL STATEMENTS AND FINANCIAL REPORTING

The Group applies common policies and monitoring consolidation. Furthermore, it also runs automatic
procedures within the accounting departments of checks and validations between different transactional
the Group’s subsidiaries, which include, amongst and reporting systems. In cases of non-recurring
others, definitions, accounting principles adopted transactions, special approval is required.
by the Company and its subsidiaries, and guidelines
for the preparation of financial statements and
136 CHAPTER'S NAME
137 ANNUAL REPORT 2021

Financial
Information
138 FINANCIAL INFORMATION
139 ANNUAL REPORT 2021

Selected Consolidated
Financial Financial
Data Statements

GROUP STATEMENT OF FINANCIAL POSITION

(AMMOUNTS IN € MILLIONS) (AMOUNTS IN € THOUSANDS)

STATEMENT OF COMPREHENSIVE INCOME 2021 2020 2019 2018 2017 ASSETS 31/12/21 31/12/20
Sales 9,222 5,782 8,857 9,769 7,995 Property, plant and equipment 3,484,805 3,379,813
Adjusted EBITDA 401 333 572 730 834 Right-of-use assets 228,375 235,541
Operating profit 400 (501) 341 514 662 Intangible assets 175,907 105,841
Profit before income tax 407 (582) 207 369 520 Other non-current assets 463,335 560,379
Minority Interest 4 (1) 3 (3) (3) Inventories 1,379,135 694,410
Profit for the year (attributable to owners of the parent) 337 (396) 161 212 381 Trade and other receivables 694,606 544,795
Adjusted Net Income 144 5 185 296 372 Income tax receivable 16,479 37,699
EPS 1.10 (1.30) 0.53 0.69 1.25 Assets held for sale 191,577 2,466
Derivative financial instruments 92,143 9,945
STATEMENT OF CASH FLOWS Cash, cash equivalents and restricted cash 1,052,618 1,202,900
Net cash generated from operating activities 270 450 486 503 443 Investment in equity instruments 504 959
Net cash used in investing activities (376) (277) (218) 138 (185) TOTAL ASSETS 7,779,484 6,774,748
Net cash generated from financing activities (61) (47) (458) (244) (300)
Net increase/(decrease) in cash & cash equivalents (167) 125 (189) 397 (42) EQUITY AND LIABILITIES
Share capital 666,285 666,285
STATEMENT OF FINANCIAL POSITION Share premium 353,796 353,796
Total Assets 7,779 6,775 7,092 6,997 7,160 Retained earnings and other reserves 1,044,572 766,416
Non-current assets 4,353 4,283 4,146 3,903 4,282 Equity attributable to equity holders of the parent 2,064,653 1,786,497
Cash and cash equivalents 1,053 1,203 1,088 1,276 1,019 Non-controlling interests 64,402 62,340
Non-current liabilities 2,045 2,584 2,227 2,047 1,220 TOTAL EQUITY 2,129,055 1,848,837
Long term borrowings 1,517 2,131 1,610 1,627 920
Short term borrowings 1,474 745 1,022 1,109 1,900 Interest bearing loans and borrowings 1,516,531 2,131,371
Minority Interest 64 62 65 64 63 Lease liabilities 201,795 201,136
Total Equity 2,129 1,849 2,327 2,395 2,372 Provisions and other long term liabilities 355,834 281,784
Short-term Interest bearing loans and borrowings 1,474,493 744,561
Other short-term liabilities 2,101,776 1,567,059
Total liabilities 5,650,429 4,925,911

TOTAL EQUITY AND LIABILITIES 7,779,484 6,774,748

140 FINANCIAL INFORMATION STATEMENT OF CASH FLOW
(AMOUNTS IN € THOUSANDS)

1/1/21-31/12/21 1/1/20-31/12/20
Cash flows from operating activities
(Loss) / Profit before Tax 407,073 (581,716)

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD Adjustments for:

(AMOUNTS IN € THOUSANDS) Depreciation and impairment of property, plant and equipment and right-of-use assets 249,280 247,272
Amortisation and impairment of intangible assets 9,485 8,717
1/1/21-31/12/21 1/1/20-31/12/20
Amortisation of grants (830) (1,110)
Revenue from contracts with customers 9,222,235 5,781,791 Finance expense 106,233 115,088
Gross profit / (loss) 875,918 (35,982) Share of operating profit of associates (96,660) (29,827)
Operating profit / (loss) 400,290 (501,404) Provisions for expenses and valuation charges 216,409 140,003
Profit / (loss) before Income Tax 407,073 (581,716) (Gain)/Loss from disposal of available for sale financial assets (2,320) 6,240
Less : Taxes (65,916) 185,101 Foreign exchange (gains) / losses (16,245) (4,950)
Amortisation of long-term contracts costs (205) 54
Profit / (loss) for the year 341,157 (396,615)
(Gain)/Loss from disposal of Non Current Assets (2,353) (1,590)
869,867 (101,819)
Profit attributable to:
Owners of the parent 337,444 (395,827) Changes in working capital
Non-controlling interests 3,713 (788) (Increase) / decrease in inventories (690,373) 315,524
341,157 (396,615) (Increase) / decrease in trade and other receivables (144,076) 192,071
Increase / (decrease) in payables 226,924 21,354
Other comprehensive income / (loss) for the year, net of tax (26,257) (3,036) Less:
Income tax paid 8,032 23,133
Total comprehensive income for the year 314,900 (399,651)
Net cash generated from / (used in) operating activities 270,374 450,263

Total comprehensive income/(loss) attributable to: Cash flows from investing activities
Owners of the parent 311,165 (398,840) Purchase of property,plant and equipment & intangible assets (400,441) (295,261)
Non-controlling interests 3,735 (811) Cash from sale of property, plant and equipment & tangible assets 6,370 2,803
314,900 (399,651) Settlement of consideration of acquisition of further equity interest in subsidiary (2,400) -
Purchase of subsidiary net of cash acquired 6,296 -
Share capital issue expenses (132) (51)
Basic and diluted earnings per share (in Euro per share) 1.10 (1.30)
Grants received 70 337
Interest received 5,356 5,646
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) 657,221 (253,425) Dividends received 6,525 9,465
Proceeds from disposal of assets held for sale 2,649 -
Investment in associates - net - -
Prepayments for right-of-use assets (280) (1,035)
Proceeds from disposal of investments in equity instruments - -
Loans to affiliated companies - -
Net cash used in investing activities (375,986) (278,096)

Cash flows from financing activities

Interest paid (94.420) (100.003)
Dividends paid to shareholders of the Company (30.320) (152.647)
Dividends paid to non-controlling interests (1.635) (1.401)
Participation of minority shareholders in share capital increase of subsidiary - 34
Proceeds from borrowings 586.620 1.419.247
Payment of lease liabilities (42.166) (44.477)
STATEMENT OF CHANGES IN EQUITY Repayments of borrowings (479.426) (1.167.609)
(AMOUNTS IN € THOUSANDS) Net cash generated from / (used in ) financing activities (61.347) (46.856)

31/12/2021 31/12/2020 Net (decrease) / increase in cash & cash equivalents (166,960) 125,312
TOTAL EQUITY AT BEGINNING OF THE YEAR 1/1/2021 & 1/1/2020 1,848,837 2,326,573
Cash and cash equivalents at the beginning of the year 1,202,900 1,088,198

Total comprehensive (loss) / income for the year 314,900 (399,651)

Exchange gains / (losses) on cash and cash equivalents 16,678 (10,608)
Dividends to shareholders of the parent (30,564) (76,409)
Dividends to non-controlling interests (1,673) (1,432) Net (decrease) / increase in cash and cash equivalents (166,960) 125,312
Other Movements (2,445) (244)
Total equity at the end of the year 2,129,055 1,848,837 Cash and cash equivalents at end of the year 1,052,618 1,202,902
142 FINANCIAL INFORMATION
143 ANNUAL REPORT 2021

Segmental
Information

GROUP
(AMMOUNTS IN € MILLIONS)

REFINING, SUPPLY & TRADING 2021 2020 2019 2018 2017 Total Assets 31/12/21 31/12/20
Sales 8,079 4,893 7,754 8,682 7,001 Refining 5,182,639 4,576,426
Adjusted EBITDA 155 177 347 548 639 Marketing 1,268,662 1,250,810
Operating profit 262 (548) 204 411 528 Exploration & Production 21,108 26,161
Purchase of property, plant and equipment & intangible assets 110 225 160 100 153 Petro-chemicals 561,610 449,874
Depreciation & amortisation of property, plant and equipment & 166 158 150 145 143 Gas & Power 638,905 465,516
intangible assets Other Segments 1,878,488 2,022,658
Refinery production (MT million) 14.4 13.8 14.2 15.5 15.0
Inter-Segment (1,963,504) (2,019,163)
Refinery sales volume (MT million) 15.2 14.4 15.2 16.5 15.9
Assets held for sale 191,577 2,466
Average Brent price ($/bbl) 71 42 64 72 55
Total 7,779,484 6,774,748
Benchmark FOB MED Cracking Margin ($/bbl) 3.7 1.3 3.3 5.0 5.9
Average exchange rate (€/$) 1.18 1.14 1.12 1.18 1.13
Total Liabilities
Refining 3,544,675 3,023,517
MARKETING
Marketing 679,589 663,530
Sales 2,918 1,986 3,258 3,329 2,912
Exploration & Production 20,873 19,943
Adjusted EBITDA 120 97 137 93 107
Petro-chemicals 23,753 40
Operating profit 33 1 65 36 56
Gas & Power 321,859 36,720
Purchase of property, plant and equipment & intangible assets 43 41 70 45 49
Other Segments 1,677,204 1,911,322
Depreciation & amortisation of property, plant and equipment & 43 41 35 45 39
Inter-Segment (617,524) (729,162)
intangible assets
Sales ('000 tonnes) 4,283 3,944 4,928 4,955 5,165 Total 5,650,429 4,925,911

Petrol stations 1,969 1,991 2,006 2,019 2,037

Net Sales

PETROCHEMICALS Domestic 3,214,715 2,101,532

Sales 379 248 299 315 267 Aviation & Bunkering 1,039,991 540,699

Adjusted EBITDA 131 61 93 100 95 Exports 4,055,055 2,481,495

Operating profit 122 50 86 80 91 International activities 912,473 658,065

Purchase of property, plant and equipment & intangible assets 9 4 5 3 1 Total 9,222,235 5,781,791

Depreciation & amortisation of property, plant and equipment & 5 5 6 4 4

intangible assets
Sales ('000 tonnes) 275 272 283 279 243
144 FINANCIAL INFORMATION
145 ANNUAL REPORT 2021

Parent Company
Financial Statements

STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD

(AMOUNTS IN € THOUSANDS) (AMOUNTS IN € THOUSANDS)

Assets 31/12/21 31/12/20 1/1/21-31/12/21 1/1/20-31/12/20

Property, plant and equipment 2,707,520 2,766,635 Revenue from contracts with customers 8,425,535 5,114,813
Right-of-use assets 26,547 32,157 Gross profit / (loss) 562,438 (302,364)
Intangible assets 1,111 8,094 Operating profit / (loss) 340,367 (477,277)
Other non-current assets 1,076,768 1,107,522 Profit / (loss) before Income Tax 293,017 (515,141)
Inventories 1,240,774 599,613 Less: Taxes (63,336) 176,377
Trade and other receivables 569,077 489,979 Profit / (loss) for the year 229,681 (338,764)
Income tax receivable 13,898 33,830
Assets held for sale 122,301 0 Other comprehensive income / (loss) for the year, net of tax (19,607) (3,530)
Derivative financial instruments 92,143 9,945 Total comprehensive income for the year 210,074 (342,294)
Cash, cash equivalents and restricted cash 843,493 992,748
Investment in equity instruments 37 587 Basic and diluted earnings per share (in Euro per share) 0.75 (1.11)
Total Assets 6,693,669 6,041,110
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) 515,303 (310,666)
Equity And Liabilities
Share capital 666,285 666,285
Share premium 353,796 353,796
Retained earnings and other reserves 975,386 800,051
Equity attributable to equity holders of the parent 1,995,467 1,820,132
Non-controlling interests - -
Total Equity 1,995,467 1,820,132
STATEMENT OF CHANGES IN EQUITY
(AMOUNTS IN € THOUSANDS)

Interest bearing loans and borrowings 1,149,696 2,064,808 31/12/21 31/12/20

Lease liabilities 16,532 21,279 Total equity at beginning of the year 1/1/2021 & 1/1/2020 1,820,132 2,238,835
Provisions and other long term liabilities 269,222 197,527
Short-term Interest bearing loans and borrowings 1,349,300 494,675 Total comprehensive (loss) / income for the year 210,074 (342,294)
Other short-term liabilities 1,913,452 1,442,689 Dividends to shareholders of the parent (30,564) (76,409)
Total liabilities 4,698,202 4,220,978 Dividends to non-controlling interests - -
Other Movements (4,175) -
Total Equity & Liabilities 6,693,669 6,041,110 Total equity at the end of the year 1,995,467 1,820,132
STATEMENT OF CASH FLOW
(AMOUNTS IN € THOUSANDS)
FINANCIAL INFORMATION
147 ANNUAL REPORT 2021

1/1/21-31/12/21 1/1/20-31/12/20
Cash flows from operating activities
(Loss) / Profit before Tax 293,017 (515,141)

Adjustments for:
Depreciation and impairment of property, plant and equipment and right-of-use assets 169,359 161,976
Amortisation and impairment of intangible assets 5,577 5,872
Amortisation of grants (662) (797)
Finance expense 86,166 94,385
Share of operating profit of associates - -
Provisions for expenses and valuation charges 238,677 119,937
(Gain)/Loss from disposal of available for sale financial assets - -
Foreign exchange (gains) / losses (16,007) (4,988)
Amortisation of long-term contracts costs (1,912) 6,488
(Gain)/Loss from disposal of Non Current Assets 7 (3,518)
Dividend Income (22,809) (51,533)
751,413 (187,319)

Changes in working capital

(Increase) / decrease in inventories (642,101) 298,461
(Increase) / decrease in trade and other receivables (174,616) 178,198
Increase / (decrease) in payables 163,336 22,769
Less:
Income tax paid 13,145 33,170
Net cash generated from / (used in) operating activities 111,177 345,279

Cash flows from investing activities

Purchase of property, plant and equipment & intangible assets (112,261) (208,118)
Cash from sale of property, plant and equipment & tangible assets 43 4,846
Settlement of consideration of acquisition of further equity interest in subsidiary - -
Purchase of subsidiary net of cash acquired - -
Share capital issue expenses - -
Grants received - -
Interest received 7,719 9,727
Dividends received 54,809 161,533
Proceeds from disposal of assets held for sale - -
Investment in associates - net (9,465) (12,043)
Prepayments for right-of-use assets - -
Proceeds from disposal of investments in equity instruments - -
Loans to affiliated companies (22,252) -
Net cash used in investing activities (81,408) (44,055)

Cash flows from financing activities

Interest paid (87,728) (98,323)
Dividends paid to shareholders of the Company (30,320) (152,647)
Dividends paid to non-controlling interests - -
Participation of minority shareholders in share capital increase of subsidiary - -
Proceeds from borrowings 470,647 1,412,971
Payment of lease liabilities (10,381) (11,781)
Repayments of borrowings (537,249) (1,342,771)
Net cash generated from / (used in ) financing activities (195,031) (192,551)

Net (decrease) / increase in cash & cash equivalents (165,262) 108,673

Cash and cash equivalents at the beginning of the year 992,748 888,564

Exchange gains / (losses) on cash and cash equivalents 16,007 (4,489)

Net (decrease) / increase in cash and cash equivalents (165,262) 108,673

Cash and cash equivalents at end of the year 843,493 992,748

148 CONTACT INFORMATION
149 ANNUAL REPORT 2021

Contact Information

SHAREHOLDERS’ CONTACT
Shareholders, investors and financial analysts can contact the Group’s Head Office, 8A Chimarras str., GR-151 25
Maroussi, for the following Services:

• Investor Relations Services, tel.: (+30) 210 63 02 212

• Shareholder Services & Corporate Announcements Department, tel.: (+30) 210 63 02 978-98,
Fax: (+30) 210 63 02 986-987

Website: www.helpe.gr
E-mail: [email protected]

ANNUAL REPORT FEEDBACK

This report is addressed to all of our stakeholders, who wish to be informed on the Group’s strategy, policy and
business performance in 2021.

Any suggestion, concerning further improving this report, as a tool for a two-way communication between the
Group and its social partners, is welcome.

Digital Annual Report: http://annualreport2021.helpe.gr

CONTACT INFO
Investor Relations
8A Chimarras str., GR-151 25 Maroussi
Τel.: (+30) 210 63 02 904

E-mail: [email protected]

Graphic Design: The Birthdays Design, Athens

Printed by: Fotolio SA
Notes