My fellow shareholders,

We delivered another year of solid performances in 2017, rewarding the expectations of our clients and partners, the hard work of our people, and the support of our shareholders. OTE Group today is a technology powerhouse. Our investments position us as the undisputed fiber optics leader in our market. We are creating the infrastructure fora new era, enabling the digital transformation of our country and of all its constituents.

The quality of Group revenues improved notably during the year. Our four largest customer-facing businesses, fixed and mobile in Greece and Romania, all achieved top-line increases on a full-year basis.

Our Greek operations showed particular strength, with retail revenues in both fixed and mobile up in the full year, and a trend of gradual sequential improvement in most quarters. Mounting demand for ever-faster fixed and mobile data and a strong appetite for our rich TV offering underpinned this growth. These important developments would not have been possible without unrelenting work to achieve excellence in our networks– notably the expanding reach of our fiber infrastructure, far and away the most extensive in Greece – and in the content we provide to our clients. Our unwavering focus on customer experience is clearly paying off.

We are reaping the fruits of the substantial resources we are dedicating to provide our markets with solid telecommunications foundations, in rural as well as in urban areas. In 2017, we stepped up the pace of our capital investments to a record 800 million euros, largely targeted at building the high-speed fixed and mobile data networks of the future. As our capital expenditure budgets gradually return to more normal levels following these years of peak investments, we will dedicate ourselves to restoring a healthy free cash flow generation capacity.

In early 2018, we unveiled a new shareholder remuneration policy. With the economy stabilizing in Greece, and as OTE further strengthens its performance, we decided to resume a clearer, more generous remuneration to reward our shareholders, whose support enabled OTE to strengthen its competitive positions and bolster the recovery in its markets. We have announced the distribution of 100 percent of our estimated annual reported free cash flow, about two-thirds in the form of dividend and one-third in the form of share buybacks. The dividend for 2017 of 35 eurocents per share, more than double the amount we paid in the prior year, reflects this new remuneration policy.

What has gotten us where we are is the steadfast implementation of our strategy.

We have continued investing heavily in our technological superiority.

We have put customer experience at the center of everything we do, and turned our brand into a guarantee of service excellence.

We have never ceased to innovate, to come up with new services and solutions to anticipate the needs of all client segments, and to support the Group's top line.

We have done so while continuing to build on our core competences and traditional service offerings, for which we are known and estimated.

We have become more efficient, and we will not let our guard down on this front.

We set our digital transformation as a prime strategic priority, taking actions to elevate customers' digital experience and simplify the way we do business.

We are resolutely grounding our future on the people we are able to attract and retain, people with the right blend of technical skills and dedication to serving.

Our strategy supports and strengthens our vision – we aim to build a better world for all by leveraging technology to bridge the digital divide. We believe in facilitating access to technology, to make the opportunities of today and the promises of tomorrow available to all.

Our commitment to making the Internet experience accessible to all is backed by our investment in new networks and advanced infrastructures. In Greece, our investment plan through 2022 amounts to 2 billion euros, mainly aiming at bringing fiber connections to an ever increasing number of businesses and households. These investments, delivering to our customers a steadily improving service, will also secure the Group's future in our competitive industry.

Our promise to make our customers' everyday life simpler and more enjoyable takes a variety of forms. We are continuously upgrading communication channels with our customers to make everything smoother, faster and more digital, including the mobile app, our e-billing service, and other present and future initiatives. We provide the digital tools and solutions that private businesses and public-sector organizations need to grow and work more efficiently. At the same time, we support the transformation of public sector ICT projects that improve efficiency, and therefore the quality of life of our fellow citizens.

Our decisions, strategy and daily operations are aligned with our growth mindset. Our sustainable growth vision will continue to guide us in 2018 and beyond, as we contribute to the economy, society and the protection of the environment across our footprint.

I want to thank you for your trust and assure you that we will continue to work to the benefit of all.

Michael Tsamaz
OTE Group Chairman & CEO