Having successfully implemented an important development and transformation program in 2007-2012, over the last five years the Group focuses on taking full advantage of its investments and maximizing economic return.

The Group's Core Axes are:

1. Safety, Environment and Social Responsibility
2. Competitiveness and Export Orientation
3. Developing & Strengthening new activities, with sustainability as key consideration
4. Energy & Digital Transformation
5. Continuous training of People and development of know-how

Several actions and initiatives have been implemented in recent years, with a significant impact on the Group's financial results.

Based on the above, the Group's Strategic Priorities are as follows:

Leveraging Investments to Improve Results & Safety

• Operational optimization and full realisation of synergies in the South Refining Hub (Aspropyrgos and Elefsina); these two plants constitute two of the most modern and complex refineries in the Mediterranean, with the appropriate size to achieve significant economies of scale.
• Optimization of the new refining model, maximizing the full potential of all three refineries, as well as the synergies between them.
• Supply Chain Optimization through broadening the supply of assessed crudes as well as increasing sourcing directly from producers, thereby optimizing crude supply.
• Further development of international trading activities in the Mediterranean and the Balkans.
• Implementation of a Holistic Safety Program, with the aim of matching health and safety standards of the best companies worldwide.

Significant progress has been achieved regarding the optimization of operations at the Elefsina refinery and the implementation of a series of synergies between the three refineries, which has had a substantial effect on the Group’s financials, with exports accounting for approximately 52% of total refining sales.

2017 HELPE Refining System Performance Improvements

Despite reduced production at the Elefsina refinery for maintenance in the third quarter of 2017, Group refining production recorded a further slight increase to 15 million tons, leading to higher total sales, up 4% to 16.1 million tons.

Furthermore, the Group concluded a number of agreements with crude oil producers and taking advantage of the improved financial liquidity, benefited from crude oil pricing spreads in the Mediterranean.

Implementation of Performance, Energy & Digital Transformation Programs

• Optimise costs and operations benchmarking versus the safest and most competitive European refineries.
• Enhance transformation programs and accelerate their implementation.
• Focus on cost efficiencies in Central Services, Fuels Marketing and Procurement.
• Implementation of a Digital Transformation Strategy in the Group's main business units.

The implementation of the transformation and restructuring programs continued in 2017, mainly focusing on energy efficiency and improving refinery units’ performance as well as reducing procurement costs with a total additional benefit of €40m..

In addition, in 2017, a special study was developed to identify areas in the Group's core business, that are subject to digital transformation.

Strategic Transformation of Fuels Marketing

• Further developing the company managed and operated service stations network.
• Energy transformation through initiatives aimed at increasing energy efficiency, energy saving at service stations.
• Implementing Digital Transformation Actions focusing on customer loyalty programs and mobile application development, along with advanced data analysis tools.
• Emphasis on network management, product and services portfolio, logistics as well as the development of our people and expertise.

In 2017, network management initiatives continued, further improving our fuels marketing subsidiaries’ efficiency and operating profitability.

Maximising Activities Portfolio Value

• Further enhance vertical integration of International Marketing and Petrochemicals with Refining.
• Invest in International Marketing in order to strengthen the Group’s position in the main regional markets.
• Focus on the Exploration of Hydrocarbons in Greece in cooperation with international partners.
• Development of a significant Renewable Energy Sources portfolio.
• Improvement of Elpedison's position in power generation and trading.
• Completion of the sale of the stake in DESFA.
• Ensuring the value of the Group's participation in DEPA.

The increased integration with Refining yielded significant benefits in Petrochemicals. Regarding the Group’s international activities, both the restructuring of the international marketing business supply model, achieved by strengthening relationships with local suppliers and a higher level of integration with the Group’s refineries, as well as the emphasis on trading activities, contributed to improving the Group’s competitiveness.

In Renewable Energy Sources, the Group has 200 MW of power projects in various stages of development as well as 17 MW already in operation. At the end of 2017, the Group’s three photovoltaic projects in Aspropyrgos, Thessaloniki and Kavala with a total capacity of 8.6 MW, became operational.

The Group also recorded significant development in the field of Exploration and Exploitation of Hydrocarbons, where exploration continues in the Patraikos Gulf accordingly to schedule, as well as the increase of its portfolio, also in cooperation with international partners.

Developing Human Resources

• Focus on developing our people and their expertise through investing in continuous training.
• Establish a culture of excellence and reward in all of our activities.

The Group has continued to invest in training throughout the crisis. Over the last few years, the Group proceeded with the development of the EDGE and EDGE Commercial training programs and increased training hours.

Emphasis on Corporate Social Responsibility

• Supporting local and wider society; providing ongoing support for vulnerable social groups.
• Supporting the new generation and the education community with annual awards rewarding outstanding school pupils and students, providing a scholarship program for overseas studies and professional experience opportunities.

In 2017, the Group increased its social responsibility actions, thereby further enhancing its social presence. The above actions will contribute to the achievement of the following financial objectives:

Improve Profitability

• Increase EBITDA through contribution from new investments and transformation programs.
• Maximize net cash flows from increased profitability and capex control.

In 2017, operational profitability (Adjusted EBITDA) reached its highest level historically, reaching €834m.

Deleveraging Group

• Gradual reduction of indebtedness over the next few years, through higher cash flow.
• Diversify funding sources and reduce finance costs.

In July 2017, HELLENIC PETROLEUM SA proceeded to a retap on its existing Oct.’21 Eurobond of €79 million with a yield of 3.33%, which allowed it to further reduce its annual interest cost and contributed to improving the maturity profile of debt obligations, while in the past two years’ total debt has decreased by approximately €600 million.