Hellenic Telecommunications Organization S.A.

Annual Report • Sep 24, 2015

The purpose of the following data is to provide users with general financial information about the financial condition and the results of operations of HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A and the GROUP. Therefore, we recommend the users of that financial data and information, before making any investment decision or proceeding to any transaction with the company, to obtain the necessary information from the website, where the financial statements in accordance with International Financial Reporting Standards are available, together with the auditors' review report, when required.

Company's Web Site : www.ote.gr

Board of Directors approval date : 25 November 2008

GROUP COMPANY GROUP COMPANY ASSETS 30.09.08 31.12.2007 30.09.08 31.12.2007 01.01-30.09.2008 01.01-30.09.2007 01.01-30.09.2008 01.01-30.09.2007 Property, plant and equipment 5,935.9 6,371.4 2,213.9 2,372.2 Intangible assets 908.2 937.7 3.1 3.4 Cash flows from operating activities Other non current assets 1,125.2 1,161.4 5,374.2 4,529.3 Profit before tax 715.9 758.7 430.6 Inventories 177.1 201.7 17.2 37.1 Adjustments for: Trade receivables 1,224.1 1,172.0 746.4 742.4 Depreciation and amortization 878.0 864.8 355.4 Other current assets 417.5 372.5 249.8 217.1 Provision for early retirement program 48.3 22.1 12.2 Non-current assets classified as held for sale 154.7 - - - Provisions 151.6 155.8 119.3 Cash and cash equivalents 1,257.8 1,316.3 308.8 459.2 Foreign currency translation differences (9.8) (0.7) 2.1 TOTAL ASSETS 11,200.5 11,533.0 8,913.4 8,360.7 Investment (income) / losses (105.8) (89.5) (331.4) Amortization of advances to EDEKT pension fund 26.4 26.4 26.4 Interest expense and related expenses 254.6 163.8 148.8 EQUITY AND LIABILITIES Adjustments for charges in working capital: Share Capital 1,171.5 1,171.5 1,171.5 1,171.5 Decrease in inventories 22.5 8.5 19.9 Other Equity items 132.7 860.0 2,368.4 2,377.5 Increase in trade receivables (199.5) (160.0) (7.3) (101.5) Equity attributable to shareholders of the parent (a) 1,304.2 2,031.5 3,539.9 3,549.0 Decrease in liabilities (except bank liabilities) (226.0) (346.9) (166.1) Minority interest (b ) 923.9 1,023.1 - - Minus: Total equity (c) = (a) + (b) 2,228.1 3,054.6 3,539.9 3,549.0 Interest paid and related expenses paid (172.0) (158.7) (91.6) Long-term debt 6,007.6 3,947.1 3,357.0 1,285.2 Income taxes paid (161.1) (227.7) (51.6) Provisions / Other non current liabilities 976.6 954.9 760.6 744.8 Net cash from operating activities (a) 1,223.1 1,016.6 466.7 Short-term borrowings 40.3 1,580.7 18.9 1,511.7 Other current liabilities 1,935.6 1,995.7 1,237.0 1,270.0 Cash flows from investing activities Liabilities directly assossiated with non-current assets classified as held for sale 12.3 - - - Acquisition of subsidiary or associate, joint ventures and other investments (848.9) (42.4) (852.4) Total liabilities (d) 8,972.4 8,478.4 5,373.5 4,811.7 Purchase of investment (101.6) - (101.5) TOTAL EQUITY AND LIABILITIES (c) + (d) 11,200.5 11,533.0 8,913.4 8,360.7 Proceeds from sale of investment 21.1 - - Purchase of property, plant and equipment assets (602.4) (698.1) (197.7) Proceeds from sale of property, plant and equipment assets 24.2 68.7 20.9 Other long-term liabilities - 144.5 - INCOME STATEMENT DATA (Amounts in millions of Euro) GROUP Loans granted (1.3) (111.7) (1.3) 01.01-30.09.2008 01.01-30.09.2007 01.07-30.09.2008 01.07-30.09.2007 Interest received 45.8 36.1 19.2 Dividends receivable 4.9 6.6 280.9 Total revenues 4,766.5 4,687.6 1,638.5 1,627.7 Net cash used in investing activities (b) (1,458.2) (596.3) (831.9) Profit before taxes, investment results and financial results 854.9 832.3 327.1 319.2 Profit before tax 715.9 758.7 277.9 260.1 Cash flows from financing activities Net profit 503.0 541.8 205.6 191.6 Proceeds from minority shareholders for increase of Attributable to: subsidiary's share capital 16.9 12.6 - Shareholders of the parent 501.7 433.0 201.3 155.5 Proceeds of long-term and short-term borrowings 2,702.4 - 2,700.0 Minority interest 1.3 108.8 4.3 36.1 Repayment of long-term and short-term borrowings (2,168.6) (552.0) (2,117.5) 503.0 541.8 205.6 191.6 Dividends paid (368.0) (351.0) (367.7) Net cash from / (used in) financing activities (c) 182.7 (890.4) 214.8 Basic earnings per share (in €) 1.0236 0.8834 0.4107 0.3172 Profit before taxes, financial results, investment results, depreciation and amortization 1,732.9 1,697.1 620.3 613.2 Net increase /(decrease) in cash and cash equivalents (a) + (b) + (c) (52.4) (470.1) (150.4) Cash and cash equivalents at beginning of the period 1,316.3 2,042.5 459.2 COMPANY Cash and cash equivalents included in non-current assets held for sale(Note 5) (6.1) - - 01.01-30.09.2008 01.01-30.09.2007 01.07-30.09.2008 01.07-30.09.2007 Cash and cash equivalents at end of the period 1,257.8 1,572.4 308.8 Total revenues 1,920.3 2,004.9 635.5 673.5 ADDITIONAL DATA AND INFORMATION Profit before taxes, investment results and financial results 250.1 247.0 73.1 100.2 1) The companies which are included in the consolidated financial statements, their country of incorporation, the Group's participating interest (direct and indirect) Profit before tax 430.6 459.0 49.9 92.6 and the method of consolidation, are presented in Note 1 of the interim financial statements. Net profit 373.9 376.4 32.0 67.8 2) In the nine months period ended 30 September 2008, INFOTE S.A. is not included in the consolidated financial statements, as it was sold in December 2007. Attributable to: 3) The fiscal years that are unaudited by the tax authorities for the Company and the Group's subsidiaries are presented in Note 10 of the interim financial statements. Shareholders of the parent 373.9 376.4 32.0 67.8 4) In May 2008, OTE announced the sale of the Group's investment in OTENET CYPRUS LTD and OTENET TELECOMMUNICATIONS LTD to Cyprus - Trading Corporation Plc (CTC) for an amount of approximately € 3.9 million. Minority interest - - - 67.8 5) In May 2008 OTE acquired the remaining interest in its subsidiary VOICENET from SANYO HELLAS INVESTMENT S.A., for a consideration of € 1.3 million. 373.9 376.4 32.0 Following that acquisition, OTE owns 100% of VOICENET's share capital and the corresponding voting rights. Basic earnings per share (in €) 0.7629 0.7679 0.0653 0.1383 6) On 27 June 2008 the relevant ministerial decision which approved and concluded the procedure of OTENET's absorption by its parent company (OTE), was registerted in Societe Anonymes Records of the Prefecture of Athens. The impact of the merger in the financial statements is not significant. Profit before taxes, financial results, investment results, 605.5 626.1 189.3 225.4 Because of the absorption, the comparative company financial statements have been adjusted. These adjustments are presented in Note 19 of the financial statements. depreciation and amortization 7) The outcome of the pending litigation and claims is not expected to have material impact in the financial statements. The amount of provisions that have been established as of 30 September 2008 for litigations and other risks, as well as for unaudited tax years are as follows: a) for the Company € 119.5 million and € 6.5 million respectively and b) for the Group € 121.7 million and € 16.5 million respectively . STATEMENT OF CHANGES IN EQUITY DATA (Amounts in millions of Euro) GROUP COMPANY 8) Number of employees at the end of the period : Group 33,505 (30.09.2007: 33,737) , Company 12,160 (30.09.2007: 11,957). 30.09.2008 30.09.2007 30.09.2008 30.09.2007 9) Net loss recognized directly in equity relates to the fair value difference between 30 September 2008 and 31 December 2007, of available for sale marketable securities (listed on the Athens Stock Exchange). Total equity at beginning of the period (01.01.2008 and 01.01.2007) 3,054.6 4,888.7 3,549.0 3,237.8 10) The Company's transactions with its related parties as defined in IAS 24, are analyzed as follows: Sales and purchases of goods and services for the nine months 376.4 of 2008, amounted to € 169.2 million and € 231.8 million, respectively. Interest income and interest expense for the first half of 2008 amounted to € 3.8 million Profit for the period 503.0 541.8 373.9 3,614.2 and € 132.1 million respectively. Dividends income form related parties amounted to € 276.0 million. The outstanding balance of receivables and payables 3,557.6 5,430.5 3,922.9 (269.6) from/to related parties as of 30 September 2008 derived from current transactions amounted to € 83.4 million and € 103.8 million, respectively. The outstanding balance Dividends declared (367.6) (350.8) (367.6) 7.1 of receivables and payables from/to related from the loans granted and received amount to € 88.1 million and € 3,443.3 million respectively. Net income / (loss) recognized directly in equity (21.4) 7.1 (21.4) Stock option plan 6.0 - 6.0 - Fees paid to the members of the Board of Directors of the Company and key management personnel compensation charged to the Income Statement of the nine months of 2008, amount to € 3.7 million. Based on OTE's share option plan, 808,620 stock options have been granted to key Foreign currency translation differences (104.4) 10.1 - - Net change of interest in subsidiaries (842.1) (5.7) - - management personnel, which had not been vested until 30 September 2008. At the Group level there are no further transactions and outstanding balances with related parties. Total equity at end of the period (30.09.2008 and 30.09.2007) 2,228.1 5,091.2 3,539.9 3,351.7 11) Earnings per share were calculated based on the weighted average number of shares outstanding. 12) The most signicant events that have occurred after 30 September 2008 are presented in the Note 20 of the interim financial statements. Maroussi, 26 November 2008 CHAIRMAN AND MANAGING DIRECTOR VICE CHAIRMAN CHIEF FINANCIAL OFFICER CHIEF ACCOUNTING OFFICER	BALANCE SHEET DATA (Amounts in millions of Euro)					CASH FLOW STATEMENT DATA (Amounts in millions of Euro)
										459.0
										384.1
										22.1
										123.6
										2.4 (275.5)
										26.4
										61.1
										19.9
										(296.7)
										(62.9)
										(77.8)
										284.2
										(2.3)
										-
										-
										(178.8)
										7.0 -
										(171.7)
										24.5
										223.5
										(97.8)
										-
										-
										(16.1)
										(269.2)
										(285.3)
										(98.9)
										824.6
										-
										725.7

PANAGIS VOURLOUMIS KONSTANTINOS VASILOPOULOS I.D. Number Ν 032981 I.D.Number Π 529399 License Number 032033 GEORGE BITROS I.D. Number A 759012 CHRISTINI SPANOUDAKI I.D. Number Ι 966760

HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A.

REGISTERED OFFICE: 99 KIFFISIAS AVE - 15124 MAROUSI, ATHENS

REGISTRATION No S.A. 347/06/B/86/10

(In accordance with the Decision 6/448/11.10.2007 of the Hellenic Capital Market Commission) FINANCIAL DATA AND INFORMATION FOR THE PERIOD FROM 1 JANUARY 2008 TO 30 SEPTEMBER 2008