The three key drivers for the future growth of HDFS, active in the travel retail sector (owner of the exclusive right to sell duty free products in Greece until 2048), were presented by the Company's Management during a presentation at the Association of Members of the ASE on 07.03.2006. The Management of the Company analyzed these key drivers for future growth.
a) Organic growth, increase of passengers' traffic, operation of new stores, expansion and upgrade of the existing ones, effective product mix and improved customer service.
b) New activities such as the addition of new lines of business and the creation of wholly owned subsidiary companies such as the agreement with Phillip Morris, by which the subsidiary company Hellenic Distributions will distribute and promote in Greece all duty free cigarettes of Phillip Morris to ship chandlers, military forces and diplomatic shops and all types of vessels.
c) Acquisitions and strategic alliances. The Management of the Company is monitoring developments in the travel retail sector and is ready to seize any opportunity that will fulfill its strict investment criteria. On that respect, the Company acquired "THE NUANCE GROUP (HELLAS) S.A.", for the price of euro 1,172,000. It should be reminded that the company acquired was operating five retail outlets selling clothing and accessories in the Athens International Airport.

Commenting on the financial results of 2005 it was noted that sales increased by 11.3% reaching of euro 261.451 million. Duty Free sales increased by 10.6% while Duty Paid sales increased by 8.3%.

Net profits reached euro 37.871 million compared to euro 41.978 million in 2004 mainly influenced by: a
) The double charge of the minimum annual guarantee regarding the Athens International Airport. The specific expense which would be normally charged in the fiscal year of 2006 (as it was the case for 2004) was instead charged in 2005 resulting to the earnings of 2005 being charged for both 2004 and 2005.
b) The lower profit margins of the new product categories added to the current portfolio of products and
c) The increased effective tax rate compared to the year 2004.

Finally the Management disclosed useful comparable figures for the sector and the companies operating in large European airports. Comparing these figures the well established position of the Company in the sector is derived. According to these figures:
- The average spending per passenger in the Athens Airport is approximately euro 40, whereas in Munich is euro 29.5, in Madrid is euro 43, in Barcelona is euro 42, in Frankfurt is euro 28 and in Brussels is euro 34.
- The average conversion of passengers into customers in Athens is approximately 31% whereas in Munich is about 22%, in Madrid is 14.5%, in Barcelona is 13.5%, in Frankfurt is euro 20% and in Brussels is 30%.