14 October 2016

Reply to Capital Markets Commission query on Competition Committee inquiry

a. In response to a query by the Greek Capital Markets Commission, we inform the investment public that J&P-AVAX SA is included in the investigation carried out by Greece’s Competition Committee on tenders for public works, for likely breach of article 1 of Law 3959/2011 and/or article 101 of the Treaty on the Functioning of the European Union. Based on the Proposal of the General Directorate for Competition, which is not binding for the Plenary session of the Competition Committee, J&P-AVAX SA is accused of colluding with other contractors towards public tenders for infrastructure projects between 1995 and the date of issue of the Proposal, and for projects tendered between 1996 and 2012. The case also involves Group subsidiaries ATHENA SA and ETETH SA.

b. J&P-AVAX SA participates in a Settlement procedure which was recently introduced to relevant competition legislation. The procedure is at a very early stage and its content is subject to confidentiality due to its non-binding nature for both the Company and the Competition Committee, which may revoke the procedure in the event of breach of confidentiality. Participation in this procedure does not imply the Company accepts responsibility or acknowledges any breach of law.

c. According to Law3959/2011, the Competition Committee retains the power to discretely impose fines up to 10% of total turnover for the year on which the violation ended, or the year before in case this violation continues until the decision is published. To assess the fine, the Competition Committee makes use of a number of criteria, especially the seriousness, the time and geographic span of the violation, any additional aggravating or mitigating conditions and the potential for irreparable damage to the financial viability of the business due to the imposition of the fine. Furthermore, in the event of a successful outcome of the Settlement procedure, any fine imposed is reduced by 15%.

d. No effect is expected on the financial results of the Company is the current year because the procedure is still at an early stage following the issue of the Proposal. Any impact on the financial position and results of the Company in the next year and following years cannot be assessed at this point because it depends on the actual fact of pressing charges or not for the alleged violation and the amount of the fine to be imposed by a decision of the Competition Committee, the terms of its payment and the defence against it employed by the Company.

It should also be noted that according to the practice followed so far, the Competition Committee mostly examines on a per case basis due to their complex nature. Given the non-binding character of the Proposal to the Competition Committee, the complexity of the case, the early stage which it still is in, and the ongoing Settlement procedure, it is impossible to assess at this point the final outcome of the case, the amount and the timing of imposition of any fine.

e. The Company will dully inform the investment public should any new facts relating to those matters arise in the process.

Marousi, October 14, 2016