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Terna Energy S.A.

Quarterly Report • Sep 23, 2015

2713_10-q_2015-09-23_9e46ee41-02a7-48ca-9b8d-6e2f0a0a1ca4.pdf

Quarterly Report

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Societe Anonyme Commercial Technical Company 85 Mesogeion Ave., 115 26 Athens Reg.No. 318/06/Β/86/28

CONDENSED INTERM FINANCIAL STATEMENTS COMPANY AND CONSOLIDATED FOR SEPTEMBER 30TH 2009

(January 1st to September 30th 2009)

According to the International Financial Reporting Standards (IFRS)

STATEMENT OF FINANCIAL POSITION 3
TOTAL COMPREHENSIVE INCOME STATEMENT 5
CASH FLOW STATEMENT 7
STATEMENT OF CHANGES IN EQUITY 9
1 ESTABLISHMENT AND ACTIVITY OF THE COMPANY 12
2 BASIS FOR THE PRESENTATION OF THE FINANCIAL STATEMENTS 12
3 SUMMARY OF KEY ACCOUNTING PRINCIPLES 19
4 GROUP STRUCTURE 29
5 OPERATING SEGMENT REPORTING 32
6 FIXED ASSETS (intangible and tangible) 36
7 CAPITAL 36
8 LOANS 36
9 DIVIDENDS 37
10 PROVISIONS 37
11 GRANTS 37
12 OTHER INCOME/EXPENSES 38
13 PERSONELL 38
14 INCOME TAX 38
15 TRANSACTIONS WITH AFFILIATED PARTIES 38
16 SIGNIFICANT EVENTS DURING THE PERIOD 39
17 SIGNIFICANT EVENTS AFTER THE PREPARATION DATE OF THE STATEMENT OF
FINANCIAL POSITION 40
18 CONTINGENT LIABILITIES 40
DATA AND INFORMATION FOR THE PERIOD 1.1-30.9.2009 42

TERNA ENERGY GROUP

STATEMENT OF FINANCIAL POSITION

30η September 2009

(All amounts are expressed in thousand Euro, unless stated otherwise)

GROUP COMPANY
Note 30
September
2009		 31
December
2008		 30
September
2009		 31
December
2008
ASSETS
Non-current assets
Intangible assets 6 1,707 1,463 916 696
Tangible assets 6 316,330 238,929 107,352 87,598
Investment property 923 923 923 923
Participation in subsidiaries - - 61,482 48,682
Participations in associates 51 51 - -
Participation in joint-ventures - - 409 489
Other long-term receivables 216 18,537 182 8,007
Other investments 1 1 1 1
Deferred income tax 931 2,444 455 1,968
Total non-current assets 320,159 262,348 171,720 148,364
Current assets
Inventories 868 886 123 142
Trade receivables 13,745 15,142 12,561 11,767
Receivables according to IAS 11 7,472 1,177 13,097 2,156
Prepayments and other receivables 24,057 18,990 7,747 11,308
Income tax receivables 16 337 - -
Cash and equivalents 271,106 290,886 258,323 283,139
Total current assets 317,264 327,418 291,851 308,512
TOTAL ASSETS 637,423 589,766 463,571 456,876
EQUITY AND LIABILITIES
Equity attributed to the shareholders of the
parent
Share capital 7 32,800 32,800 32,800 32,800
Share premium 281,950 281,961 282,006 282,006
Reserves 17,505 15,316 15,110 13,551
Profit carried forward 37,629 34,798 36,147 33,789
Total 369,884 364,875 366,063 362,146
Minority interest 1,287 934 - -
Total equity 371,171 365,809 366,063 362,146
Long-term liabilities
Long-term loans 8 42,894 48,913 21,056 23,286
Other provisions 10 1,151 1,052 517 517
Provision for staff indemnities 10 113 141 113 141
Grants 11 51,390 48,614 20,035 18,824
Deferred income tax 14 766 536 - -
Other long-term liabilities - 102 - -
Total long-term liabilities 96,314 99,358 41,721 42,768
Short-term liabilities
Suppliers 13,944 8,079 14,319 7,734
Short-term loans 8 138,077 97,381 30,145 31,263
Long-term liabilities falling due in the
next period 8 8,829 8,951 4,717 4,449
Liabilities according to IAS 11 4,010 4,006 4,010 3,247
Accrued and other short-term liabilities 3,209 1,159 1,045 1,226
Income tax payable 1,869 5,023 1,551 4,043
Total short-term liabilities 169,938 124,599 55,787 51,962
Total liabilities 266,252 223,957 97,508 94,730
TOTAL LIABILITIES AND
EQUITY 637,423 589,766 463,571 456,876

TERNA ENERGY GROUP TOTAL COMPREHENSIVE INCOME STATEMENT 30 SEPTEMBER 2009

(All amounts are expressed in thousand Euro, unless stated otherwise)

G
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Other income recognized directly in Equity from:

Fo
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f
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ex
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en
ce
n
c
ng
s
m
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for
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its
e
n u
n		 (
10)		 2 - - - - - -
f s
bs
i
d
iar
ita
l
inc
Ex
's c
p
en
ses
o
ap
rea
se
u
y		 (
11)		 (
)
6		 (
)
3
5		 (
)
3
5		 - - - -
In
ize
d
d
ire
ly
in
Eq
ity
ta
t
co
me
x r
ec
og
n
c
u		 (
130
)		 1
0		 - - (
141
)		 - - -
O
he
in
/ex
for
he
io
d
f
t
t
t
r
co
me
p
en
ses
p
er
ne
o
in
tax
co
me		 (
1
1
)
5		 6 (
3
)
5		 (
3
)
5		 (
141
)		 - - -
O
A
C
O
S
C
O
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T
T
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2		 6,
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ing
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(
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Eu
)
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er
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ro
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Fr
nt
t
t
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te
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e
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a
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re
rs
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he
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nt
p
are		 0,
1
2
4
3		 0,
0
4
0
5		 0.
1
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9
3		 0.
0
6
1
8
Av
ig
h
d n
be
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um
r o
re
s
ic
Ba
s		 1
0
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6
4,
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2
8
7		 1
0
8,
6
6
2,
9
8
1		 1
0
9,
3
3
3,
4
0
0		 1
0
9,
3
3
3,
4
0
0

TERNA ENERGY GROUP

CASH FLOW STATEMENT 30 SEPTEMBER 2009

(All amounts are expressed in thousand Euro, unless stated otherwise)

GROUP COMPANY
1/1 - 30/9
2009		 1/1 - 30/9
2008		 1/1 - 30/9
2009		 1/1 - 30/9
2008
Cash flow from operating activities
Earnings for the period before tax 18,515 23,285 16,285 22,368
Adjustments for the agreement of net flows from operating activities
Depreciation 6,686 4,762 3,442 2,138
Provisions (361) 43 29 40
Interest and related income (7,872) (11,681) (7,769) (11,540)
Interest and other financial expenses 4,086 3,957 2,402 2,452
Results from participations and securities - - (1,280) (622)
Amortization of grants (1,804) (1,328) (797) (498)
Other adjustments 2 - - -
Operating profit before working capital changes 19,252 19,038 12,312 14,338
(Increase)/Decrease in:
Inventories 18 (158) 19 (154)
Trade receivables (4,899) 5,491 (11,735) 6,778
Prepayments and other short term receivables (16,484) (967) (1,633) 342
Increase/(Decrease) in:
Suppliers 5,866 (2,263) 6,585 (952)
Accruals and other short term liabilities 2,054 (1,327) (208) (139)
(Increase)/Decrease of other long term receivables and liabilities 18,219 3 7,825 (8)
Income tax payment (5,755) (2,623) (4,979) (2,254)
Net cash inflow from operating activities 18,271 17,194 8,186 17,951
Cash flow from investment activities:
Purchases/Sales of tangible and intangible assets (83,467) (43,109) (23,416) (10,256)
Receipt of grants 14,728 3,562 5,730 -
Interest and related income received 9,471 11,374 9,369 11,240
(Purchases)/sales of participations and securities - - (11,568) (6,532)
Cash outflows for investment activities (59,268) (28,173) (19,885) (5,548)
Cash flows from financial activities
Purchase of Treasury Shares (1,035) - (1,035) -
Net change of long term loans (6,019) (2,864) (2,195) (1,825)
Net change of short term loans 40,574 29,057 (801) 3,454
Dividends paid (6,600) (6,210) (6,600) (6,014)
Interest paid (5,703) (3,579) (2,486) (2,148)
Cash outflows for financial activities 21,217 16,404 (13,117) (6,533)
Net increase/(decrease) in cash (19,780) 5,425 (24,816) 5,870
Cash & cash equivalents at the beginning of the period 290,886 295,176 283,139 287,418
Cash & cash equivalents at the end of the period 271,106 300,601 258,323 293,288

TERNA ENERGY SA

STATEMENT OF CHANGES IN EQUITY 30 SEPTEMBER 2009

(All amounts are expressed in thousand Euro, unless stated otherwise)

Pr
f
it
o
S
ha
re		 Ca
ie
d
rr
Ca
ita
l
p		 S
ha
Pr
ium
re
em		 Re
ser
ve
s		 for
rd
wa		 To
ta
l
3
2,
0
0
8		 2
2,
0
0
6
8		 1
4,
2
4
8		 1
2
8,
8
8		 3
47
2
8
8
,
- - - 1
6,
8
3
6		 1
6,
3
6
8
- - - 1
6,
3
6
8		 1
6,
3
6
8
(
6,
0
1
4
)		 (
6,
0
1
4
)
- - (
1
47
)		 - (
1
47
)
- - 9
15		 (
9
15
)		 -
3
2,
8
0
0		 2
8
2,
0
0
6		 15
0
1
6
,		 2
8,
7
3
5		 3
5
8,
5
5
7
3
2,
8
0
0		 2
8
2,
0
0
6		 1
3,
5
5
1		 3
3,
7
8
9		 3
6
2,
1
4
6
- - - (
1
4
1
)		 (
1
4
1
)
- - - 1
2,
4
2
3		 1
2,
4
2
3
- - - 1
2,
2
8
2		 1
2,
2
8
2
- - - (
)
7,
3
3
3		 (
7,
3
3
3
)
- - (
)
1,
0
3
2		 - (
1,
0
3
2
)
- - 2,
5
9
1		 (
)
2,
5
9
1		 -
3
2,
8
0
0		 2
8
2,
0
0
6		 15
1
1
0
,		 3
6,
1
47		 3
6
6,
0
6
3

TERNA ENERGY GROUP STATEMENT OF CHANGES IN EQUITY 30 SEPTEMBER 2009

(All amounts are expressed in thousand Euro, unless stated otherwise)

S
ha
re
Ca
ita
l
p		 S
ha
re
Pr
ium
em		 Re
ser
ve
s		 Pr
f
it
Ca
ie
d
o
rr
for
rd
wa		 Su
b-
To
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ta		 M
ino
ity
r
In
ter
est		 To
l
ta
1 J
2
0
0
9
an
ua
ry		 3
2,
8
0
0		 2
8
1,
9
6
1		 15
3
1
6
,		 3
4,
7
9
8		 3
6
4,
8
7
5		 9
3
4		 3
6
5,
8
0
9
Ex
f s
bs
i
d
iar
ies
' c
ita
l
inc
p
en
ses
o
u
ap
rea
ses		 - (
)
1
1		 - - (
1
1
)		 - (
1
1
)
ig
ha
d
i
f
fer
f s
bs
i
d
iar
ies
Fo
re
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e
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ce
s o
u		 (
9
)		 - (
9
)		 (
1
)		 (
1
0
)
d
ire
ly
in
ity
Ta
ct
x
equ		 - (
1
3
0
)		 (
1
3
0
)		 - (
1
3
0
)
f
it
for
he
io
d
Pro
t
p
er		 1
3,
5
2
4		 1
3,
5
2
4		 3
5
4		 1
3,
8
7
8
To
l
inc
for
he
io
d
ta
t
om
e
p
er		 - (
1
1
)		 (
9
)		 1
3,
3
9
4		 1
3,
3
7
4		 3
5
3		 1
3,
7
27
D
iv
i
den
ds		 - - (
7,
3
3
3
)		 (
3
3
3
)
7,		 - (
3
3
3
)
7,
Pu
ha
f T
S
ha
rc
se
o
rea
sur
y
res		 - - (
1,
0
3
2
)		 (
1,
0
3
2
)		 - (
1,
0
3
2
)
Tr
fer
he
t
ent
an
s
s o
r m
ov
em
s		 - - 3,
2
3
0		 (
3,
2
3
0
)		 - - -
3
0
Se
be
2
0
0
9
tem
p
r		 3
2,
8
0
0		 2
8
1,
9
5
0		 17
5
0
5
,		 3
7,
6
2
9		 3
6
9,
8
8
4		 1,
2
8
7		 3
7
1,
17
1

TERNA ENERGY GROUP STATEMENT OF CHANGES IN EQUITY 30 SEPTEMBER 2009 (All amounts are expressed in thousand Euro, unless stated otherwise)

S
ha
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1

1 ESTABLISHMENT AND ACTIVITY OF THE COMPANY

The TERNA ENERGY SA Group of companies (hereinafter the «Group» or «TERNA ENERGY») is a Greek group of companies mainly engaged in the energy and construction sector. The Group's activity in the energy sector is related to the construction and exploitation of renewable sources of Wind and hydroelectric energy. The Company is also engaged in the research for the operation and construction of projects related to other renewable energy sources (RES).

TERNA ENERGY has a class 6 contractor certificate and its activity in the construction sector relates to the construction of private and public projects as a main contractor or subcontractor or through joint ventures. Based on the Greek legislation in effect, companies who hold a class 6 certificate, undertake public works with an initial contracting price from € 5.25 to €44.00 million or up to €60.00 million through joint ventures and private or selffinanced independently budgeted, either as main contractors or as sub-contractors or through joint ventures.

TERNA ENERGY is the continuation of the Technical Constructions Company (ETKA SA), which was established in 1949 (Gov. Gaz. 166/21.06.1949), and which during 1999 absorbed TERNA ENERGY SA. The latter had been established in 1997 (Gov.Gaz.6524/11.09.1997), and is based in Athens, 85 Mesogeion Ave.

The company is listed on the Athens Exchange. The parent company of TERNA ENERGY is GEK TERNA SA and is also listed on the Athens Exchange and on 30/9/2009 owned 47.908% of the company's share capital

2 BASIS FOR THE PRESENTATION OF THE FINANCIAL STATEMENTS

a) Basis for the Preparation of the financial statements

The condensed interim financial statements, which consist of the individual and consolidated financial statements of the Parent and its Group, have been prepared in accordance with IFRS, as such have been adopted by the European Union and, specifically according to the provisions of IAS 34 "Interim Financial Reporting". The condensed interim financial statements should be read in conjunction with the annual financial statements of 31 December 2008.

b) Statutory Financial Statements

Until the 31st of December 2004 TERNA ENERGY SA and its Greek subsidiaries kept their accounting books and compiled financial statements according to the provisions of L. 2190/1920 and the tax legislation in effect. From January 1st, 2005 they are obliged, according to the legislation in effect, to compile their Statutory Financial Statements according to the IFRS that have been adopted by the European Union. The Company and the Greek companies of the Group continue to keep their accounting books in accordance with the provisions of the tax laws, as they have the right to do so. Out-of-books adjustments are then made in order to compile the attached financial statements in accordance with the IFRS.

c)New standards, interpretations and amendments

The accounting principles applied for the preparation of the financial statements are the same as those adopted for preparation of the Group's and company's financial statements the period ending on December, 31 2008, except for the adoption of new standards whose application became mandatory for periods beginning on January, 1 2009. Therefore, from January, 1 2009 the Group and the company adopted new standards and amendments as follows:

- IFRS 8, Operating Sectors. IFRS 8 replaces IAS 14 Financial Information by Segment and adopts an administrative approach as regards to financial information provided by segment. The information provided will be that used by management internally for the evaluation of the return by operating sectors and the allocation of resources to such sectors.

  • IAS 1, Presentation of Financial Statements. The revisions include changes in the titles of some of the financial statements to reflect their function more clearly (for example, the balance sheet is renamed a statement of financial position). The most important changes are:

  • in the cases where an accounting policy is applied retrospective or a revision or a reclassifications of accounts in the financial statements, for comparability reasons it is necessary to report also the Statements of Financial Position for the previous periods.

  • all income and expenses data (including those recorded directly in Equity) must be reported in one statement (Total Results Statement), or in two statements (a Statement for the current year Results and a Statement of Total Results).

  • it is not allowed the specific presentation of results that are directly recorded in equity (e.g. profit/loss of fair value). Such changes that do not arise from the shareholders must be presented in the Total Results Statement, the total of which must be transferred to the Statement of changes in Equity.

  • the presentation of shareholders transactions when they are acting as owners is not allowed to be presented in the notes. The Statement of changes in Equity must be presented as a separate financial statement.

  • new requirements are introduced regarding an analytical presentation of results that are directly recorded in equity.

- IFRS 2, Share-based payment – 2008 Revision: vesting conditions and cancellations. The revision of the standard clarifies the that vesting conditions are service conditions and performance conditions only, while other features of a share-based payment that are not vesting conditions should be included in the grant date fair value of the share-based payment at the concession date.

  • IAS 32, Financial Instruments: Presentations and IAS 1 Presentation of Financial Statements – 2008 Revision: Puttable instruments and obligations arising on liquidation. This amendment sets the classification of puttable financial instruments as well as the terms of some instruments that oblige the issuer to proportionally pay the net assets of the instrument during settlement.

- IFRIC 15, Agreements for the Construction of Real Estate. IFRIC 15 offers guidelines regarding whether an agreement for the construction of a real estate is included in the framework of IAS 11 "Construction Contracts" or IAS 18 "Revenue" and when the revenue from construction should be recognized.

- IFRIC 16, Hedges of a Net Investment in a Foreign Operation. IFRIC 16 clarifies three major issued, in particular: a) The presentation currency of the Financial Statements does not create risk exposure in a situation that the company is in a position to hedge the risk. Therefore, the parent company may define as risk for hedging only the foreign exchange differences that arise between operating and presentation currency for the foreign operations. b) Any company belonging in the Group may hold hedging instruments, c) Despite that IAS 39 «Financial Instruments: Recognition. and Measurement» is applied to define the amount that must be transferred in Income Statement from the foreign exchange differences reserve, the IAS 21 «The effect of changes in Foreign Exchange» is applied in reference to the hedging instrument.

  • Amendments to IAS 1, Presentation of Financial Statements. This amendment clarifies that assets and liabilities classified as held for trading purposes, according to IAS 39, Financial instruments: Recognition and calculation, are not classified automatically as short-term items in the Statement of Financial Position.

  • Amendments to IAS 8, Accounting policies, changes in accounting estimations and errors. The amendment clarifies that only the application guidance, which is considered an integral part of a IFRS, is mandatory during the selection of accounting policies.

  • Amendments to IAS 10, Events after the Balance Sheet Date. The amendment clarifies that dividends approved after the balance sheet date are not considered as liabilities.

  • Amendments to IAS 16 Tangible assets. It replaces the term Net sale price with the term Fair value minus sale price as regards to the recoverable amount, in order to be consistent with IFRS 5 and IAS 36. Tangible assets held for lease and during the ordinary course of activities intended for sale after the end of the lease period, are transferred to the Inventories account during the end of this period and are classified in assets held for sale. Proceeds from the subsequent sale are presented as income. At the same time, IAS 7 Cash flow statements, is also amended, where it is required that cash payments, for the construction or acquisition of relevant fixed assets, be classified in the category of Operating Activities. Moreover, cash proceeds from rents and subsequent sales of relevant fixed assets are presented in Operating Activities.

  • Amendments to IAS 18, Income. This amendment replaces the term Direct costs with the term Transaction cost, as defined in IAS 39.

  • Amendments to IAS 19, Employee benefits. The amendment revises the term of Service cost in order to include benefit reductions related to the service of the employee in previous periods (negative service cost) and to exclude benefit reduction in relation to the service of the employee in future periods that arise from amendments to the benefit plan. Amendments to benefit plans that lead to the reduction of benefits in relation to the service rendered in future periods, are considered as cut-backs. It revises the definition of Return on assets of the plan, excluding management costs of the plan if such have been included in the actuarial assumptions based on which the committed defined benefits were calculated. It revises the definition of short-term and other long-term benefits to employees in order to focus on the point where the liability will be settled. It repeals the reference to contingent liabilities in order to conform to IAS 37, "Provisions, contingent liabilities and contingent assets". IAS 37 does not allow the recognition of contingent liabilities.

  • Amendments to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. Loans that are granted with zero or very low interest rates compared to the market, will not be excluded by the requirement to present the implied rate. The implied rate of granted loans will be lower than the market rate, and thus it will conform to IAS 39. The difference between the amount received and the discounted amount is accounted for as a government grant.

  • Amendments to IAS 23, Borrowing Cost. The amendment revises the definition of borrowing cost in order to unite all the borrowing cost items in one item. The interest expenses is calculated based on the real interest rate method, as described in IAS 39.

  • Amendments to IAS 27, Consolidated and separate financial statements. In case where a parent company values a subsidiary at fair value according to IAS 39 in its separate financial statements, this accounting treatment holds also in the case where subsequently the subsidiary is classified as held for sale.

  • Amendments to IAS 28, Investments in associate companies. In case where an associated company is valued at fair value, according to IAS 39 (given that it has been exempt from the requirements of IAS 28), only the requirements of IAS 28 regarding the disclosure of the nature and extent of significant limitations to the ability of the associate company to transfer capital to the Company in the form of cash equivalents or repayment of debt, are applied. For the purposes of an impairment audit, the investment in an associate is considered a unique asset – including any reversal of impairment loss. Therefore, in case of impairment, a separate allocation of the impairment to the goodwill included in the investment's balance, is not needed. The impairment loss is reversed in the case where the recoverable value of the investment in the associate increases.

  • Amendments to IAS 29, Presentation of financial assets in hyperinflationary economies. This amendment revises the limiting list of exemptions as regards to asset and liability items calculated at history cost, i.e. tangible fixed assets. No special transition requirements are mentioned due to the fact that the amendment is mostly a clarification and not a change.

  • Amendments to IAS 31, Participations in joint ventures. This amendment clarifies the fact that if a joint venture is valued at fair value, according to IAS 39 (given that is has been exempted from the requirements of IAS 31), then only the requirements of IAS 31 regarding the disclosure of obligations of the member of the joint venture and the joint venture, as well as regarding the summary of financial information for the balance sheet and results items, apply.

  • Amendments to IAS 34, Interim financial reporting. This amendment clarifies that earnings per share are disclosed in the interim financial reports in the case where the company is subject to the application scope of IAS 33.

Amendments to IFRS 5, Non Current Assets held for Sale and Discontinued Operations, applied for financial years beginning at or after 1 July 2009. The amendment clarifies the fact that all asset and liability items of a subsidiary are still classified as "held for sale" according to IFRS 5, even in the case the company, after a sale, does not control the particular subsidiary. The amendment is applicable from the date of the first application of IFRS 5. Therefore participations in subsidiaries classified as "held for sale" from the use of IFRS 5, should be examined and revaluated. Application of the amendment in advance is also acceptable. In this case, the company should also apply the amendments of IAS 27 (as it was amended in January 2008) at the application date of IFRS 5 amendments.

Until the date of financial statements' approval, there are new IFRS, interpretations and amendments of existing standards, which will be applied on mandatory manner for the years beginning after July 1st, 2009. The Management's view regarding the effect of the above application is presented below:

- Interpretation 17 Allocation of non cash asset items to Owners, applied for financial years beginning at or after 1 July 2009. When a company announces an allocation and is obliged to allocate asset items to owners, then it should also records a liability regarding the payable dividends. The objective of Interpretation 17 is to provide guidance about the time a company recognizes dividends payable, the calculation method, and the accounting treatment between the book value of allocated asset items and the book value of the dividends payable, when the company pays in full the dividends. The Amendment 17 "Allocation of non cash asset items to Owners" is applied by the companies for financial years beginning at or from July 1st, 2009. In advance application of the above Interpretation is acceptable provided that the company discloses it in the Explanatory Notes of the Financial Statements and at the same time applies the IFRS 3 (as it was amended in 2008), the IFRS 27 (as it was amended in May 2008) and IFRS 5 (as it was amended from the current Interpretation). The retroactive application of the Interpretation is not acceptable. It is noted that the European Union has not adopted this Interpretation.

  • Interpretation 18 Transfer of asset items from customers (it qualifies for years starting from or at 1 July 2009). This interpretation is applied mainly in companies or utilities.

The objective of the Interpretation 18 is to clarify the requirements of IFRS with regard to agreements based on which a company receives from one of its customers parts of tangible assets (land, building facilities or equipment) that the company should utilize in order for the customer to become part of a network or to access the provision of goods and services (such as the provision of electricity or water). In some cases, the company receives cash from its customers in order to acquire or construct a facility in order for the customer to connect with a network or to continuously access a network of goods and services (or even both cases). The interpretation clarifies cases in which the definition of tangible asset and the recognition and calculation of initial cost are already fulfilled. Furthermore it determines the manner with which the verification of a liability regarding the provision of the above services can be made in exchange with the tangible asset, as well as the recognition of income and the accounting treatment of cash received from customers.

- IFRS 3, Business Combinations – Amended in 2007 and consequent amendments in IAS 27, 28 and 31 (effective from July 1st 2009): The amended standard inserts new important amendments in the purchase method in order to reflect business combinations. Among the amendments in the standard is the option to present rights of third parties that have no control (minority interest), in their fair value. Also, the amended standards state that the acquisition of additional percentages in a subsidiary or the sale of part of the shares of a subsidiary must be accounted as transactions with the shareholders of the company and any difference should be recognized in equity. The amended IFRS 3 is effective for the acquisition of companies that will be realized after July 1st 2009, while there is no requirement for business combinations that have taken place before the adoption of the amended standard. Therefore, this amendment will not affect the present financial position of the Company.

d) Approval of Financial Statements

The accompanying interim consolidated financial statements were approved by the Board of Directors of the Parent Company on 26 November 2009.

e) Use of estimates

The Group makes estimations, assumptions and judgments in order to choose the best accounting principles related to the future evolution of events and transactions. These estimations, assumptions and judgments are continuously assessed in order to reflect current information and risk and are based on the management's experience related to level/volume of transactions or events.

The main assumptions and judgments that may affect the financial statements in the coming 12 months are as follows:

a) Recognition of income from construction contracts: The Group uses the percentage of completion method to recognize revenue from construction contracts, in accordance with IAS 11. According to this method the construction cost as of each balance sheet date is compared to the budgeted total cost of the project in order to determine the percentage of completion of the project.

The cumulated effect of the restatements/reassessments of the total budgeted cost of the projects and the total contractual payment (recognition of work over and above the contract) is recorded in the financial years during which such restatements arise. The total budgeted cost and the total contractual payment of the projects arise from estimation procedures and are reassessed and reviewed at each balance sheet date.

b) Provision for income tax: The provision for income tax according to IAS 12 is calculated with the estimation of taxes to be paid to tax authorities and includes the current income tax for each period and a provision for additional taxes that may occur from tax audits. The final settlement of income tax may differ from the relevant amounts recognized in the financial statements.

c) Provision for environmental rehabilitation: The Group creates a provision against its relevant liabilities for dismantlement of technical equipment of wind parks and environmental rehabilitation, that arise based on the written environmental legislation or by the Group's restrictive practices. The environmental rehabilitation provision reflects the present value (based on an appropriate discount rate), at the balance sheet date of the rehabilitation liability less the estimated recoverable value of material estimated to be dismantled and sold.

d) Valuation of inventories: For the valuation of inventories, the Group estimates according to statistical data and market conditions, the expected sale prices and the finalization and distribution cost of such per category of inventories.

e) Impairment of assets and recovery: The Group performs evaluation of the technological, institutional and financial developments by examining indications of impairment of all assets (fixed, trade and other receivables, financial assets etc.) as well as their recovery.

f) Provision for staff indemnities: The Group, according to IAS 19, performs estimations of assumptions based on which the actuarial provision for staff indemnities is calculated.

g) Depreciation of fixed assets: For the calculation of depreciations, the Group reviews the useful economic life and residual value of tangible and intangible fixed assets based on the technological, institutional and financial developments, as well as the experience from their use.

h) Readjustment of value of investment property: For the valuation of its investment property, the Group defines their fair value according to valuation reports prepared on its behalf by independent appraisers. For the interim financial statements, the fair value emerges from the reports of independent appraisers only in cases where there are indications for significant changes in fair value and according to their financial significance.

3 SUMMARY OF KEY ACCOUNTING PRINCIPLES

The main accounting principles adopted during the preparation of the accompanying interim consolidated and individual financial statements are the following:

a) Consolidation Basis

The attached condensed interim consolidated financial statements comprise the condensed interim financial statements of TERNA ENERGY and its subsidiaries. The subsidiary companies in which the Group holds directly or indirectly more than half of the voting rights or has the right to exercise control over their operation have been consolidated. Subsidiaries are consolidated from the date that the Group acquires control over them and cease to be consolidated from the date it no longer has control.

The Group's interests in Joint Ventures, in the cases where they are subject to common control, are consolidated in the consolidated financial statements using the equity consolidation method whereby the Group's share of each of the assets, liabilities, income and expenses of a jointly controlled entity is included in the Group's financial statements.

Intra-group transactions and balances have been cancelled-out in the attached consolidated financial statements. Whenever required the accounting principles of the subsidiaries have been amended in order to ensure consistency with the accounting principles adopted by the Group.

b) Investments in Associates:

Includes companies in which the Group exercises significant influence however they are not subsidiaries or joint ventures. The Group's participating interests are recorded using the equity method. According to this method the participating interest in the associate company is carried at acquisition cost plus any change in the percentage of its equity held by the Group, less any provisions for impairment. The consolidated income statement shows the Group's share in the associate's results, while the amounts recorded by the associates directly in their equity, are recognized directly in Group's equity.

c) Investments and other (non-derivative) financial assets

Financial assets that fall under the provisions of IAS 39 and are governed by them are classified according to their nature and characteristics into one of the following four categories:

  • (i) Investments available for sale
  • (ii) Receivables and loans
  • (iii) Financial assets at fair value through the profit or loss
  • (iv) Investments held to maturity

Initially they are recognized at acquisition cost, which represents the fair value plus, in some cases, the direct transaction and acquisition expenses.

The classification of the above financial assets is made upon their initial recognition and wherever permitted it is reviewed and reassessed on a periodic basis.

(i) Investments available for sale

Financial assets (non-derivative) that cannot be classified in any of the above categories are designated and classified as investment available for sale. After the initial recognition, available for sale investments are valued at fair value with the resulting gains or losses being recognized as a separate item in equity. Upon sale or write-off or impairment of the investment the accumulated gains or losses are included in the profit or loss.

(ii) Receivables and loans

Receivables and loans created by the activities of the Group (and which fall outside the usual credit limits), are valued at net amortized cost using the effective interest rate method. Gains or losses are recorded in the profit or loss when the relevant amounts are written-off or suffer impairment as well as through the amortization process.

(iii) Financial assets at fair value through the profit and loss

This relates to the trading portfolio and comprises investments acquired with a view to liquidate them in the near future. Gains or losses from the valuation of such assets are recorded in the profit or loss.

(iv) Investments held to maturity

Financial assets (non-derivative) with defined flows and defined maturity are classified as held to maturity when the company is willing and able to retain them until their maturity. Investments held indefinitely or for a predetermined period cannot be classified in this category. Held to maturity investments are valued, after the initial recording, at net amortized cost using the effective interest rate method. Gains or losses are recorded in the profit or loss when the relevant amounts are written-off or suffer impairment as well as through the amortization process.

The current value of such investments that are traded in an organized exchange is derived by the exchange value of the investment at the closing date. As regards investments that are not traded in an active market, their fair value is calculated on the basis of relevant valuation techniques. These techniques are based on recent arm's-length investment transactions, with reference to the exchange value of another investment with characteristics similar to the investment valued, discounted cash-flow analysis and investment valuation models.

d) Financial Instruments and Risk Management

Non-derivative financial assets and liabilities in the balance sheet include cash balances, receivables, participations bank loans and other short and long-term liabilities. The Company does not use derivative financial products. The accounting principles for the recognition and measurement of these items are mentioned in the respective accounting principles, which are presented in this Note.

Financial instruments are disclosed as receivables, liabilities or equity based on the substance and the contents of the relevant contracts from which they stem. Interest, dividends, gains and losses resulting from the financial instruments that are classified as receivables or liabilities are accounted for as expenses or income respectively. The distribution of dividends to shareholders is accounted for directly through equity. Financial instruments are nettedoff when the Company, according to the law, has this legal right and intends to set them off (against each other) on a net basis or to recover the asset and net the liability off at the same time. Financial risk management aims to minimize possible negative effects and specifically:

• Interest rate risk and exchange rate risk

The Company's bank loans are denominated in euros and are subject to variable and fixed interest rates. The Company does not use derivative instruments in order to reduce its exposure to interest rate risk. The Management of the Company follows the development of interest rates and exchange rates and takes the necessary measures to reduce the risk.

• Fair Value

The amounts appearing in the attached Balance Sheets for cash balances, short-term receivables and other short-term liabilities approximate their respective real values due to their short-term nature. The fair value of short-term bank loans does not differ from their accounting value due to the use of variable interest rates.

• Credit Risk Concentration

A substantial part of trade receivables in general relate to agencies and entities of the Public sector with which there is no credit risk, per se. Regarding receivables from the private sector, the Company policy is to seek business with customers of satisfactory credit standing while the constant aim is to resolve any resulting differences within a amicable settlement context. Moreover the credit risk concentration with respect to receivables from the private sector is limited compared to the total amount of trade receivables due to the great dispersion of the balances.

• Market Risk

The Group has not entered into contracts in order to hedge the market risk arising from its exposure to fluctuations in the prices of raw materials used in the production process.

(e) Operation and Presentation Currency and Foreign Exchange Conversion:

The euro is the currency of operation and presentation of the Group and its Greek subsidiaries. Transactions in other currencies are converted into euros using the exchange rates in effect at the date of the transaction. At the date of compilation of the financial statements the monetary asset and liability items that are denominated in other currencies are adjusted so as to reflect the current exchange rates.

The profits and losses resulting from the end-of-year valuation of monetary items in foreign currencies are reflected in the attached consolidated income statement. The profits or losses resulting from transactions are also reflected in the consolidated income statement.

The currency of operation of the foreign subsidiaries of the Group is the official currency of the country each subsidiary operates in. Accordingly, at each balance sheet date all the balance sheet accounts of the subsidiaries are converted into euros using the exchange rate in effect at the balance sheet date. Income and expenses are converted using the weighted average rate in effect during the year. The resulting exchange differences from the valuation of foreign subsidiaries as described above are booked directly to equity. Upon sale or disposal of a foreign subsidiary the cumulated exchange differences described above are recorded in the profit and loss account.

f) Intangible Assets

Intangible assets consist of rights for use of forestry land, where Wind Parks are installed, and software acquisition costs. The right of use of forestry land, where Wind Parks are installed, includes the related acquisition costs less accumulated amortization and possible impairment. The value of software includes the acquisition cost and all expenses incurred to develop the software in order to bring it to operating condition less accumulated amortization and possible impairment. Significant subsequent expenses are capitalized when such increase the software's capacity after initial specifications.

Amortization on the rights of use for land where Wind Parks are installed is accounted for, using the straight-line method over the duration of the contractual right for the production of energy (approximately 20 years), beginning from the period when each Wind Park starts operating. Amortization of software is accounted for based on the straight line method over 3 years. The amortization of all the aforementioned items is included in the income statement.

g) Income recognition

Income is recognized to the extent that it is probable that economic benefits will result for the Group and that the relevant amounts can be accurately measured. The following specific recognition criteria must also be met for the recognition of income.

(i) Income from construction activities

Construction subsidiaries and joint-ventures recognize income from construction contracts in their accounting books based on amounts invoiced to customers, which result from the relevant partial certifications of work completed that are issued by the responsible engineers and correspond to the work completed up to the closing date. For reasons of compliance with the IFRS income from construction activity is accounted for in the attached consolidated financial statements using the percentage-of-completion method in accordance with the provisions of IAS 11 "Construction Contracts".

According to the percentage-of-completion method the construction costs incurred up to the Balance Sheet date are compared to the total estimated cost of the project in order to determine the percentage of the project that has been completed. This percentage is applied to the total revised contract price in order to determine the cumulated income from the project, based on which the invoiced income to date is revised.

The cumulated effect of the revisions of the total estimated construction cost and the total contract price are accounted for during the accounting periods in which they arise. In the cases of contracts where it is forecast that the total estimated cost will exceed the total contract price, the entire loss is recognized in the year during which the loss-making events become probable.

Non-invoiced accrued income relates to income recognized on the basis of the method described above that has not yet been invoiced. Non-accrued income comprises amounts invoiced up to the balance sheet date over and above the income calculated using the percentage-of-completion method.

Project execution down-payments represent amounts received by the Group upon signing the relevant contracts and are proportionally netted-off with the partial invoicing. The remaining amount appears as a liability in the attached financial statements.

(ii) Sale of goods

Revenue from the sale of goods, net of trade discounts, sales incentive discounts and the corresponding VAT, is recognized when the significant risks and benefits from ownership of the goods have been transferred to the buyer.

(iii) Revenue from the sale of Electric Energy

Revenue from the sale of Electric Energy is accounted for in the year in which it accrues. Revenue from sales of electric energy to DESMHE or any other buyer that have not yet been invoiced is recognized as accrued noninvoiced income in the financial statements.

(iv) Rent Revenue

Rent revenue is recognized using the straight-line method, according to the terms of the lease.

(v) Dividends

Dividends are accounted for when the right to receive them has been finalized by the shareholders by virtue of a General Meeting resolution.

(vi) Interest

Interest income is recognized on an accruals basis.

h)Tangible Fixed Assets

As previously mentioned, the Group has valued certain land, buildings, machinery and vehicles at fair value on January 1st , 2004 and these fair values have been used as implied cost at the date of transition to IFRS. The resulting surplus was credited to the profits carried forward account. The remaining land, buildings, machinery and vehicles are measured at purchase cost less accumulated depreciation and any provisions for impairment.

Repairs and maintenance are booked as expenses during the year in which they are incurred. Significant improvements are capitalized in the cost of the respective fixed assets provided that they augment the useful economic life, increase the production level or improve the efficiency of the respective fixed assets.

Tangible fixed asset items are eliminated from the balance sheet on disposal or withdrawal or when no further economic benefits are expected from their continued use. Gains or losses resulting from the elimination of an asset from the balance sheet are included in the income statement of the financial year in which the fixed asset in question is eliminated.

Fixed assets under construction include fixed assets that are work in progress and reflect their cost. Fixed assets under construction are not depreciated until the asset is completed and put into operation.

i) Depreciation

Depreciation is calculated according to the straight-line method using rates that approximate the relevant useful economic lives of the respective assets. The useful economic lives per fixed asset category are as follows:

Asset Category Years
Buildings and technical installations 8-30
Machinery and Technical Installations 3-20
Vehicles 5-12
Fixtures and Other Equipment 3-12

j)Impairment of the Value of Fixed Assets

The book values of long-term asset items are reviewed for impairment purposes when facts or changes in circumstances imply that the book value may not be recoverable. When the book value of an asset exceeds its recoverable amount, the respective impairment loss is registered in the income statement. The recoverable amount is defined as the largest value between the net estimated sales price and the acquisition value. The net sales value is the plausible income from the sale of an asset in the context of an arm's-length transaction, in which all parties have full knowledge and willingness, after the deduction of each additional direct sales cost for the asset. The acquisition cost consists of the net present value of future estimated cash flows expected to occur from the continuous use of the asset and from the income expected to arise from its sale at the end of its estimated useful economic life. In order to determine the impairment, the asset items are grouped at the lowest level for which cash flows can be recognized separately.

A reversal of an impairment loss for the value of assets accounted for in previous years, takes place only when there are sufficient indications that such an impairment no longer exists or it has been reduced. In these cases the above reversal is treated as income.

The Management assesses that there is no case of impairment of the Group's fixed assets and thus a calculation of the assets' recoverable amounts has not been made.

k) Investment property

Investments in property are those held for rent income or capital gain and are valued at their fair value that is based on market value, that is to say the amount the property is likely to be sold at the date of a transaction. The assessment, when necessary, is made by external professional evaluators. Profits or losses that arise from changes in the real value of investments in property are included in the income statement of the period during which they arise.

Repairs and maintenance are recorded as expenses in the year in which they are incurred. Material subsequent expenses are capitalized when they augment the useful economic life of the buildings, their productive capacity or reduce their operation cost. Investment properties are eliminated from the accounts upon sale. All gains or losses resulting from the sale of a property are included in the income statement of the year during which it was sold. Investment property under construction are recorded at cost value as tangible assets till their completion and then are transferred to investment property account.

l) Inventories

Inventories comprise machinery parts and raw and auxiliary materials of Wind Parks. Inventories are valued at the lower of cost and net realizable value. The cost of raw materials, semi-finished and finished products is defined based on the weighted average method.

The cost of finished and semi-finished products includes all the realized expenses in order for them to reach the current point of storing and processing and consists of raw materials, labor costs, general industrial expenses and other costs that directly relate to the purchase of materials. The net realizable value of finished products is their estimated selling price during the Group's normal course of business less the estimated costs for their completion and the estimated necessary costs for their sale. The net realizable value of raw materials is their estimated replacement cost during the normal course of business. A provision for impairment is made if it is deemed necessary.

m) Receivables Accounts

Short-term receivables are accounted for at their nominal value less the provisions for doubtful receivables, while long-term receivables are valued at net amortized cost based on the effective interest rate method. At each balance sheet date all overdue or doubtful receivables are reviewed in order to determine the necessity for a provision for doubtful receivables. The balance of the specific provision for doubtful receivables is appropriately adjusted at each balance sheet date in order to reflect the estimated relevant risks. Each write-off of customer balances is debited to the existing provision for doubtful receivables.

n) Cash and Cash Equivalents

The Group considers time deposits and other highly liquid investments with a maturity less than three months, as cash and cash equivalents.

For the compilation of the cash flow statements, cash and cash equivalents consist of cash, deposits in banks and cash and cash equivalents as defined above, while time deposits that mature in more than three months are excluded.

o)Long-term loan liabilities

All long-term loan liabilities are initially booked at cost, which is the actual value of the received payment less the issuance expenses related to the loan. After the initial recording, interest-bearing loans are valued at the net book value using the effective interest rate method. The net book value is calculated after taking into account the issuance expenses and the differences between the initial amount and the amount at maturity.

Profits and losses are registered in the net profit or loss when the liabilities are written off or impaired and through the amortization procedure. The interest on loans in recognized as an expenses in the period such arise according to the accrual principle.

p)Provisions for Staff Retirement Indemnities

According to the provisions of L2112/20, the Group reimburses its retiring or dismissed employees, and the amount of the relevant indemnities depends on the years of service, the level of wages and the reason for exit from employment (dismissal or retirement). The liabilities for staff retirement indemnities are calculated using the discounted value of future benefits that have accrued at the end of the year, based on the recognition of the employees' benefit rights during the duration of their expected working years. The above liabilities are calculated based on the financial and actuarial assumptions and are defined using the projected unit method of actuarial valuation. Net retirement costs for the period are included in the attached income statement and consist of the present value of benefits that have accrued during the year, the interest on the benefits' liability, the cost of prior service, the actuarial profit or loss and any other additional retirement costs. The prior service costs are recognized on a straight line basis over the average period during which access to the program's benefits is earned. The liabilities for retirement benefits are not financed. As at the 1st of January 2004 (transition date to IFRS and compilation of initial Balance Sheet) the Group, applying the exemptions provided for by IFRS 1 for the first-time application of the IFRS, recognized the total actuarial losses that had accumulated as of the 1st of January 2004. During the compilation of subsequent financial statements TERNA, applying the general provisions of IAS 19, followed the "margin" method for the recognition of accumulated actuarial losses/profits. Actuarial profits and losses are registered as income or expenses when the accumulated actuarial profit or losses for each program separately exceed 10% of the largest value between the liability of the defined benefit and the actual value of the program's assets. These profits or losses are systematically recorded during the expected average remaining working life of employees participating in the plans.

q) Government Pension Plans

The staff of the Group is mainly covered by the main Government Social Security Fund for the private sector (IKA) and which provides pension and medical-pharmaceutical benefits. Each employee is required to contribute part of his/her monthly salary to the fund, while part of the total contribution is covered by the Group. At the time of retirement, the pension fund is responsible for the payment of retirement benefits to the employees. Consequently, the Group has no legal or constructive obligation for the payment of future benefits according to this plan.

r) Income Tax (Current and Deferred)

Current and deferred taxes are calculated based on the financial statements of each of the companies included in the consolidated financial statements, according to the tax regulation effective in Greece or other tax frameworks under which the foreign subsidiaries operate. Income tax is calculated based on the earnings of each company as such are reformed on the companies' tax reports, on additional income taxes emerging from the Tax Authorities' tax audits and on deferred income taxes based on the enacted tax rates.

Deferred income tax is calculated using the liability method on all temporary differences between the tax base and the book value of assets and liabilities on the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences.

Deferred tax receivables are recognized for all the exempt temporary differences and transferable tax losses, to the extent that it is likely that there will be available taxable earnings, which will be set against the exempt temporary differences and the transferable unused tax losses.

The deferred tax assets are estimated on each balance sheet date and are reduced to the degree that it is not considered likely that there will be adequate taxable earnings against which part or the total of receivables from deferred income taxes may be used.

Deferred tax assets and liabilities are calculated according to the tax rates that are expected to be in effect during the financial year when the asset will be realized or the liability will be settled, and are based on the tax rates (and tax regulations) that are effective or enacted on the balance sheet date.

Income tax that relates to items, which have been directly recognized in equity, is directly recorded in equity and not in the consolidated income statement.

s) Finance and Operating Leases

Finance leases, which essentially transfer to the Group all the risks and returns related to the leased fixed asset, are capitalized during the inception of the lease based on the leased asset's fair value or, if it is lower, on the present value of the minimal leases. Payments for finance leases are allocated between the financial expenses and the reduction of the financing liability, in order to achieve a fixed interest rate on the remaining portion of the liability. The financial expenses are debited directly to the results. Capitalized leased fixed assets are depreciated with the straight line method based on the estimated useful life of the asset.

Leases where the lessor maintains all the risks and returns related to ownership of the fixed asset, are recorded as operating leases. The payments of operating leases are recognized as an expense in the income statement on a constant basis for the duration of the lease.

t) Government Grants

Government grants relating to subsidies of tangible fixed assets, are recognized when there is reasonable certainty that the grant will be received and all relevant terms will be met. These government grants are recorded in a deferred income account and are transferred to the income statement in equal annual installments based on the expected useful life of the asset that was subsidized, as a reduction to the relevant depreciation expense. When the grant relates to an expense it is recognized as income during the period deemed necessary to match the grant on a systematic basis with the expenses it is meant to reimburse.

u) Provisions, Contingent Liabilities and Contingent Receivables

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is possible that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The provisions are reviewed on each balance sheet date and are adjusted in order to reflect the present value of expenses that are deemed necessary for the settlement of the liability. If the effect of the time value of money is significant, then provisions are calculated by discounting the expected future cash flows with a pre-tax rate, which reflects the market's current estimations for the time value of money, and wherever considered necessary, the risks related specifically to the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed, unless the probability of an outflow of economic benefits is small. Contingent assets are not recognized in the consolidated financial statements but are disclosed when an inflow of financial benefits is likely.

v) Provision for wind park dismantlement and rehabilitation of environment

The Group forms provisions for the dismantlement of power generators from wind parks and the rehabilitations of environment. These provisions reflect the present value, at balance sheet date, of the estimated cost, reduced by the estimated residual value of recoverable materials. The provisions are re-examined at the date of compilation of each balance sheet in order to reflect the present value of the expense that is expected to be cashed for the settlement of liability for dismantlement and rehabilitation.

The relevant provision is recorded increasingly of the cost value of wind power generators and is depreciated based on the straight line during a 20 year period in which the contract for the production of energy lasts. The depreciationexpense of the capitalized expenses for dismantlement and rehabilitation is included in the income statements together with the depreciations of wind parks. Any changes of estimations regarding the estimated cost or the discount rate are added or deducted respectively from the cost of the asset. The discounting effect of estimated cost is recorded in income statements as interest expense.

w)Earnings per Share

Basic earnings per share (EPS) are calculated by dividing net earnings with the average weighted number of common shares that are outstanding during each year, with the exception of the average common shares acquired by the Group as own-shares.

Diluted earnings per share are calculated by dividing the net earnings attributable to the shareholders of the parent (after deducting the interest on convertible shares, after taxes) with the weighted average number of shares that are outstanding during the year (adjusted for the effect of the diluted convertible shares).

4 GROUP STRUCTURE

The participations in subsidiaries, associates and joint ventures on 30.9.2009 are as follows:

Α) Subsidiaries of TERNA ENERGY SA

i) Subsidiaries, with the legal form of a Societe Anonyme or Limited Liability Company:

The parent company TERNA ENERGY SA has been audited by the tax authorities until the fiscal year 2008 included (see Note 17). During the preparation date of the attached interim financial statements, the tax un-audited fiscal years (including 2009) of the Group's companies, are as follows:

Participation
Percentage
Company Name Establishment 30/9/2009 31/12/2008 Activity Tax un
audited fiscal
years
1. IWECO CHONOS LASITHIOU
CRETE ΑΕΒΕΑΕ		 11.04.2000 100% 100% Production of El.
Energy from
Renewable energy
sources (RES)		 3
2. ENERGIAKI SERVOUNIOU SA 01.02.2001 100% 100% Production of El.
Energy from RES		 3
3. ΤΈΡΝΑ ENERGY EVROU SA 01.02.2001 100% 100% Production of El.
Energy from RES		 3
4. PPC RENEWABLES – TERNA
ENERGY S.A.		 20.06.2000 51% 51% Production of El.
Energy from RES		 4
5. GP ENERGY LTD 26.09.2005 100% 100% Trading of Electric
Energy		 5
6. AIOLIKI PANORAMATOS S.A. 01.02.2001 100% 100% Production of El.
Energy from RES		 3
7. AIOLIKI RACHOULAS
DERVENOCHORION S.A.		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
8. EOL TECHNICS
CONSULT SRL		 03.04.2008 60% 60% Production of El.
Energy from RES		 2
9.TERNA ENERGY
OVERSEAS LTD		 4.1.2008 100% 100% Production of El.
Energy from RES		 2
10. EOLOS POLSKA SPZO 30.6.2008 100% 100% Production of El.
Energy from RES		 2
11. EOLOS NOWOGRODZEC
SPZOO		 12.12.2008 61% 61% Production of El.
Energy from RES		 2
12. TERNA ENERGY
NETHERLANDS BV		 29.5.2009 100% - Production of El.
Energy from RES		 1

On 29/7/2009 according to the Decision No. 22819/09 by the Athens Prefecture, the General Partnership company TERNA ENERGY ABETE & SIA AIOLIKI RACHOULAS DERVENOCHORIOU G.P. was transformed from a G.P. to a societe anonyme company according to the provisions of L. 2166/1993.

ii) Subsidiaries with the form of a General Partnership (G.P.)

Company Name Establishm
ent		 30/9/2009 31/12/2008 Activity Tax un-audited
fiscal years
1. Terna Energy Sa & Sia Aioliki
Polykastrou GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
2. Terna Energy Sa & Sia Energeiaki
Dervenochorion Gp		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
3. TERNA ENERGY SA & SIA
ENERGEIAKI VELANIDION
LAKONIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
4. TERNA ENERGY SA & SIA
ENERGEIAKI DYSTION EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
5. TERNA ENERGY SA & SIA AIOLIKI
PASTRA ATTICA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
6. TERNA ENERGY SA & SIA AIOLIKI
MALEA LAKONIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
7. TERNA ENERGY SA & SIA
ENERGEIAKI FERRON EVROU
GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
8. TERNA ENERGY SA & SIA AIOLIKI
DERVENI TRAIANOUPOLI GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
9. TERNA ENERGY SA & SIA AIOLIKI
KARYSTIAS EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
10. TERNA ENERGY SA & SIA
ENERGEIAKI ARI SAPPON GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
11. TERNA ENERGY SA & SIA
ENERGEIAKI PELOPONNESUS
GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
12. TERNA ENERGY SA & SIA
AIOLIKI EASTERN GREECE GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
13. TERNA ENERGY SA & SIA
AIOLIKI MARMARIOU EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
14. TERNA ENERGY SA & SIA
ENERGEIAKI PETRION EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
Participation Percentage
Company Name Establishm
ent		 30/9/2009 31/12/2008 Activity Tax un-audited
fiscal years
15. TERNA ENERGY SA & SIA
AIOLIKI ROKANI
DERVENOCHORION GP		 01.02.2001 99% 99% Production of El.
Energy from RES		 3
16. TERNA ENERGY SA & SIA
ENERGEIAKI STYRON EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
17. TERNA ENERGY SA & SIA
ENERGEIAKI NEAPOLEOS
LAKONIAS GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
18. TERNA ENERGY SA & SIA
ENERGEIAKI KAFIREOS EVIA GP		 01.02.2001 100% 100% Production of El.
Energy from RES		 3
19. TERNA ENERGY SA & SIA
AIOLIKI PROVATA
TRAIANOUPOLEOS		 01.02.2001 100% 100% Production of El.
Energy from RES		 3

Β) Joint ventures of TERNA ENERGY ΤΕΡΝΑ ΕΝΕΡΓΕΙΑΚΗ ΑΒΕΤΕ consolidated with the proportionate method

ι) Joint ventures

Company Name Participation
Percentage 2009 and
2008
%		 Tax un-audited
fiscal years
1 J/V TRAM POLITICAL ENGINEERING WORKS 36.00 3
2 J/V ENVAGELISMOU, PROJECT C' 50.00 7
3 J/V TERNA ENERGY – TSAMPR. DRAMAS
HOSPITAL		 40.00 7
4 J/V EPL DRAMAS 24.00 7
5 J/V K. MANIOTIS - TERNA - TERNA ENERGY 37.50 7
6 J/V/ EMBEDOS – PANTECHNIKI - TERNA
ENERGY		 50.10 3
7 J/V THEMELI - TERNA ENERGY - TERNA SA
IMPREGILO SPA		 40.00 3
8 J/V EKTER - TERNA - ATHONIKI SA 31.00 3
9 J/V/ KL. ROUTSIS - TERNA ENERGY ABETE 50.00 3

During the 3rd quarter of 2009, the dissolution and liquidation of the joint venture Terna Energy SA – Olympios ATE took place due to the completion of the undertaken project and its final delivery. From the liquidation of the aforementioned Joint Venture, no loss emerged.

Participation Percentage
Company Name Establishment 30/9/2009 31/12/2008 Activity Tax un-audited
fiscal years
TERNA ENERGY SA - M.E.L.
MACEDONIAN PAPER COMPANY
SA & SIA CO-PRODUCTION GP		 12.02.2001 50% 50% Construction/
Operation of co
production unit of
electricity for
serving of needs of
MEL		 3
TERNA ENERGY SA & SIA LP 24.05.2000 70% 70% Completion of
construction works
of section Kakavia –
Kalpaki		 3
TERNA ENERGY SA & SIA
ENERGIAKI XIROVOUNIOU GP		 14.02.2001 70% 70% Production of El.
Energy from RES		 3

ιι) General Partnerships (GP) and Limited Partnerships (LP)

The above companies No. 1 and No. 3 are currently inactive. The company No. 2 had essentially completed the aforementioned project from 2003.

All aforementioned companies and joint ventures have been established in Greece, except for GP ENERGY LTD, which has been established in Bulgaria, EOL TECHICHS CONSULT SRL established on Romania, TERNA ENERGY OVERSEAS LTD established in Cyprus, EOLOS POLSKA SPZO and EOLOS NOWOGRODZEC SPZOO, which were established in Poland and TERNA ENRGY NETHERLANDS, which was established in Holland.

C) Associates of TERNA ENERGY ΑΒΕΤΕ

Company Name Domicile Participation
Percentage%		 Consolidation
Method		 Tax un-audited
fiscal years
2009 2008
Renewable Energy Center RES Cyclades Greece 45 45 Equity 4
SA *

* Participation through IWECO CHONOS LASITHIOU CRETE S.A.

5 OPERATING SEGMENT REPORTING

An operating sector is a component of an economic entity: a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses that concern transactions with other components of the same economic entity) and, b) whose operating results are regularly reviewed by the chief operating decision maker of the entity to make decisions about resources to be allocated to the segment and assess of its performance. The term "chief operating decision maker" defines the function of the Group that is responsible for the allocation of resources and the assessment of the economic entity's operating segments. For the application of IFRS 8, this function is assigned to the Managing Director (Chief Executive Officer).

The economic entity presents separately the information on each operating segment that fulfils certain criteria of characteristics and exceeds certain quantitative limits.

The amount of each element of the segment is that which is presented to the chief operating decision maker with regard to the allocation of resources to the segment and the evaluation of its performance.

The above information is presented in the attached consolidated statements of financial position and total comprehensive income according to the IFRS, whereas previously recorded operating segments –as presented in the financial statements of the previous year- require no modifications. The Group recognizes the following operating segments that must be reported, whereas no other segments exist that could be incorporated in the "other segments" category.

Construction: Refers, almost exclusively, to contracts for the construction of technical projects.

Electricity from renewable sources of energy: Refers, mainly, to the electricity production from wind generators (wind parks) and secondly from hydroelectric plants.

In line with the application of the revised standard, the Group allocates –whenever such allocation is not possible to be made directly- all assets and liabilities per segment as well as the corresponding income and expenses for the period, such as financial results and income tax.

Apart from the income tax receivables that can be allocated directly to the corresponding segment, the allocation of the income tax expense, liabilities and other receivables is based on the financial results of each segment for the period.

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,

6 FIXED ASSETS (intangible and tangible)

The movement of intangible and tangible assets in summary is as follows:

GROUP COMPANY
2009 2008 2009 2008
Net book value, January 1st 240,392 180,196 88,294 88,956
Corrections and reclassifications - (16,784) - (16,784)
Revised net book value, January 1st 240,392 163,412 88,294 72,172
Additions for the period 84,287 42,732 23,416 9,853
Sales for the period - - - -
Depreciations and other movements for the period (6,642) (4,762) (3,442) (2,137)
Net book value, September 30th 318,037 201,382 108,268 79,888

7 CAPITAL

During the period 1/1-30/09/2009, as during the period 1/1-30/09/2008, the number of shares and their nominal value remained unchanged. The share premium decreased by € 11, an amount that concerns expenses for the share capital increase of a subsidiary, which was concluded during the period 1.1-30.9.2009. The total number of shares on 30/9/09 amounts to 109,333,400 from which 677,365 are owned by the Company (treasury shares).

The share capital is fully paid up.

8 LOANS

The summary movement of the group's and company's short-term and long-term debt on 30/09/2009 and 30/09/2008, was as follows:

GROUP COMPANY
2009 2008 2009 2008
Balance, January 1st 155,245 108,158 58,998 58,165
New debt 61,023 44,644 - 7,500
Repayment of loans (26,468) (17,814) (3,080) (5,567)
Balance, September 30th 189,800 134,988 55,918 60,098

The total loans refer to the group's energy sector and are related to financing the wind park installations. Such loans will be settled with the receipt of the approved grants.

9 DIVIDENDS

The Annual Ordinary Shareholders' Meeting of the Company on 2 April 2009 approved the payment of dividend amounting to € 7,333 from the earnings of 2008, which was paid in full during the 1st half of 2009.

10 PROVISIONS

The movement of the group's and company's provisions on 30/09/2009 and 30/09/2008 is summarized as follows:

GROUP COMPANY
2009 2008 2009 2008
Balance, January 1st 1,193 650 658 121
Additional provisions charged in the results of the period 31 45 29 40
Used provisions (57) (108) (57) (108)
Transfers 97 - - -
Balance, September 30th 1,264 587 630 53

The companies of the group's energy sector are obliged to proceed to environmental rehabilitation where they install production units for electricity, after the completion of the license period that lasts for 20 years according to the licenses granting by state. On 30/9/2009 from the amount of € 1,264 thousand, the amount of € 720 thousand concerns a provision for the de-installation of Wind Parks, the amount of € 113 thousand concerns a provision for staff indemnities and the amount of € 431 thousand concerns other provisions.

11 GRANTS

The movement of the group's and company's grants on 30/09/2009 and 30/09/2008, is summarized as follows:

GROUP COMPANY
2009 2008 2009 2008
Balance, January 1st 48,614 42,630 18,824 11,654
Approval of grants 4,580 7,890 2,008 7,929
Transfer of the period's proportion to the results (1,804) (1,328) (797) (498)
Balance, September 30th 51,390 49,192 20,035 19,085

12 OTHER INCOME/EXPENSES

The analysis of other income/expenses on 30 September 2009, which are of extraordinary nature, is presented in the following table:

GROUP COMPANY
2009 2008 2009 2008
Amortization of grants 1,804 1,328 797 498
Income from leasing of machinery 30 38 30 38
Income from lease of property 53 41 53 41
Income from Dividends - - 1,520 622
Other income 763 426 324 278
Other expenses (106) (4) (5) (4)
Total 2,544 1,829 2,719 1,473

13 PERSONELL

The average number of the Group's full time employees during the first 9-months 2009 settled at 114 (versus 173 employees in the first 9-months 2008).

14 INCOME TAX

The expense for income tax is recorded based on the best estimation of the management regarding the weighted average tax rate for the year. This rate on 30/09/2009 was 25.04% for the group and 23.71% for the company.

15 TRANSACTIONS WITH AFFILIATED PARTIES

The transactions of the Company and the Group with affiliated parties for the period 01/01-30/09/2009 and 01/01- 30/09/2008 as well as the balances of receivables and liabilities that have emerged from those transactions at 30/09/2009 and 30/09/2008 are as follows:

Period
1/1-30/9/2009		 GROUP COMPANY
Affiliated party Sales
Purchases		 Debit
Balances		 Credit
Balances		 Sales Purchases Debit
Balances		 Credit
Balances
Subsidiaries - - - - 667 1,054 515 754
Joint Ventures - - - - - - 944 202
Parent - - - - - - - -
Other affiliates 3,101 4,268 3,097 2,856 3,101 4,223 853 337
Management - 938 - 14 - 616 - 14
Period
1/1-30/9/2008		 GROUP COMPANY
Affiliated party Sales Purchases Debit
Balances		 Credit
Balances		 Sales Purchases Debit
Balances		 Credit
Balances
Subsidiaries - - - - 1,579 - 1,707 -
Joint Ventures - - - - 162 - 1,526 315
Parent - - - - - - - -
Other affiliates 5,174 11,367 4,691 1,074 5,174 4,058 4,376 5,37
Management - 801 - 552 - 581 - 322

16 SIGNIFICANT EVENTS DURING THE PERIOD

  • During the period, construction activities began for two Wind Parks in the county of S.Voiotia, with a total capacity of 42.8MW and a photovoltaic capacity of 1.05 MW.
  • Within March 2009, the Company received the wind generators for the wind park at "Skopia" location of the county of Aitoloakarnanias, with a total capacity of 20 MW.
  • On June 15th 2009, the license for the installation of a photovoltaic park with a capacity of 1.05MW at the county of Aitoloakarnanias was approved by the relevant authorities.
  • During June 2009 the production licenses were approved by the relevant authorities for six Wind Parks in the area of South Evia, with a capacity of 135MW and the increase of capacity for two more, and as a result the total approved capacity of the 8 W/P complex amounts to 177 MW.
  • On April 1st, 2009, TERNA ENERGY ABETE and Public Organization for the Erection of Hospital Units S.A. (DEPANOM S.A.) signed an agreement for the construction of the project "Expansion-Restructuring of GH – KY Filiaton", with a contractual value of EUR 9,153,529. The project is scheduled to be completed by April 1st, 2012.
  • On April 14th, 2009, TERNA ENERGY ABETE and HELLENIC RAILWAYS WORKS S.A. signed an agreement for the construction of the project «Construction of an alternate line Thessalonica-Eidomeni from K..P. 53 to K.P. 73, Railway Station of Polykastro, electrical and fencing works in the new line», with a contractual value of EUR 13,916,980. The project is scheduled to be completed by April 15th, 2011.
  • During the period, an initial agreement was made for the acquisition of a company that owns a wind park under development (licensing stage) with a capacity of 18 MW. The agreement is subject to the fulfillment of a series of conditions and is expected to be completed within 12 months. The total cost of the investment for the completion of the wind park, including the acquisition price of the license, is expected to reach 23.5 million euro.
  • On August 13th 2009, the relevant authorities approved the final licensing of a Wind Park in the Evros county, with a capacity of 11.7MW and the construction activities started.

  • The operation license was issued and the audit was concluded successfully by the Ministry of Development of the wind park in Nafpaktos, which was granted by the Operational Program Competitiveness and the remaining amount of the grant, which amounted to 7,777,646 € in total, was paid.

  • On September 9th 2009, a construction contract was signed between the company TERNA ENERGY SA and the Ministry of Environment Physical Planning & Public Works, for the project "Completion of projects for replanning of Kifisos river, cleaning of river bed and coastal collectors", with a contractual value of 5,456,277 euro.

  • On July 1st 2009 a construction contract was signed between the company TERNA ENERGY SA and the company "GEA S.A." for the project "Procurement, development and implementation and toll collection system on the motorway PATHE" with a contractual value of 3,626,859 euro.
  • In view of the above signed contracts, the Company's backlog of construction projects towards third parties on 30/09/2009 amounts to €74.3 million.

17 SIGNIFICANT EVENTS AFTER THE PREPARATION DATE OF THE STATEMENT OF FINANCIAL POSITION

  • 5 applications of Photovoltaic parks with a total capacity of 13 MW were evaluated positively by the Regulatory Authority for Energy.
  • On 8/10/2009 the installation license was issued for a Wind Park at the Skopia position of the Aitoloakarnania region, with a total capacity of 20MW.
  • On 4/11/2009 the tax audit of the parent company TERNA ENERGY SA was concluded for the financial year 2008. The above tax audit resulted in a tax charge of 110 thousand euro.

18 CONTINGENT LIABILITIES

During the execution of projects, the Group may face contingent legal claims by third parties. According to the Management, as well as the legal counselor of the Group there are no cases under litigation or arbitration except from the following:

Several claims made at the Council of State for cancellation of the planned installation of the Wind Park by the subsidiary " AIOLIKI PANORAMATOS DERVENOCHORION GP", are pending. The court session took place in November 2009 and until the final judgment the Council of State has ordered a pause on the building works for 17 out of 40 wind generators.

CERTIFICATION

It is ascertained that the accompanying interim financial statements are those approved by the Board of Directors of the Company on November 26th 2009 and have been published by being posted on the internet at the website www.terna-energy.gr. It is noted that the published in the press condensed financial information aim at providing the reader with specific general financial data, but do not provide a full picture of the financial position and the results of the Group, in accordance with the International Financial Reporting Standards (IFRS). The published in the press condensed data included compressed accounts.

THE CHAIRMAN OF THE BOARD THE VICE-CHAIRMAN,

& MANAGING DIRECTOR

PERDIKARIS GEORGIOS MARAGOUDAKIS EMMANUEL

THE CHIEF FINANCIAL OFFICER THE HEAD ACCOUNTANT

DIMOPOULOS KONSTANTINOS MANAVERIS NIKOLAOS

DATA AND INFORMATION FOR THE PERIOD 1.1-30.9.2009

COMPANYDATA
Ministry of Development, General Secretarist of Commerce, General Corpany website www.terna-energy.gr
Appropriate Prefecture: Division of domestic Commerce, S.A. and Credit Department, Division Approval Date of the Financial Statements by the Board of Directors: 26 November 2009
Board of Directors Composition: Chairman: Georgios Perdikaris Certified Auditor loannis Leos (SOEL Reg. No.: 24801)
Vice-Chairman & Managing Director: Emmanuel Managoudality,
Members: Panagiotis Pothos, Michael Gourzis, Georgios Spyrou,		 Auding Fem
Type of Review Report		 ORANT THORNTON SA
Un-audited interim financial statement
Theodoros Teges, Grigoris Charalanticopoulos (non-executive member),
STATEMENT OF FINANCIAL POSITION Aristeidis Dasis, Nikolaos Kalananas (Independent non-executive members). TOTAL COMPREHENSIVE INCOME STATEMENT
Amounts in thousand euro GROUP COMPANY Imounts in thousand euro GROUP COMPARY
(Consolidated & non-consolidated data) 309.2009 31/12/2008 389.2669
31/12/2008		 (Consolidated & non-consolidated data) 11-303-2009 17-3032009 11-3032008 17-389.2008 11-3032009 17-389/2009 11-3092008 17-309200
ASSETS
Self used tangible fixed assets		 316.330 238.929 107.352 87.598 Turnover
Gross profit / (losses)		 51.458
17.851		 22.566
6.377		 55.067
18.145		 19.10
6.592		 45.640
13.587		 20.07
5.364		 50.97
15.563		 18.74
5.05
Investment property
Introdbie assets		 923
1,707		 923
1.453		 923
916		 923
696		 Earnings/(Loss) before interest and tax (EBIT)
Enrrings(Loss) before tax		 14.729
18.515		 5,497
5.881		 15.561
23,285		 5.979
8.885		 10,918
16.285		 4.108
4.956		 13,284
22.368		 5.08
8.46
Other non-current assets 1.199 21.033 62.529
59.147		 Earnings/(Loss) after tax (A) 13.878 4.365 17.397 6.802 12.423 3.555 16.836 6.39
Invertories
Trade receivables		 888
21.217		 888
16.319		 123
25,658
13.923		 142 Allocated to:
Other current assets
TOTAL ASSETS		 295.179
637.423		 310.213
589,766		 266.070
294.447
463,571
456,876		 Owners of the parent
Minority interest		 13.524
354		 4,403
(30)		 17,414
(17)		 6.807
(S)
13.878 4.365 17.397 6.802
Other comprehensive income after taxes (B) (151) (35) (35 (141)
Total comprehensive income after taxes (A+B) 13.727 4.371 17.362 6.76 12.28 3568 16.83
Allocated to:
EQUITY & LIABILITIES
Share capital		 32.800 32,800 32,800
32.800		 Owners of the parent
Minority interest		 13.720
(1)		 4.370 17.379
(17)		 6.772
(5)
Other items of Shareholders' Equity 337.084
369,884		 332.075
364,875		 333.263
329.346
366,063
362,146		 13.72 4.371 17.362 6.767
Total Het Position of company shareholders (a)
Mnority interest (b)		 Earnings/(Losses) after tax per share - basic (in @ 0,1243 0,0405 0,1593 0,0618 0,1142 0,0327 0,1490 0,058
Total Het Position (c) = (a) + (b)
Long-term lobitties		 371.171
42.894		 365,809
48.913		 366,063
362.146
21.056
23,286		 Earnings/(Losses) before interest, tax, depreciation and amortization (EBITDA) 19.611 7.135 18.995 7.170 13,563 5.007 14,924 5.65
Provisions/Other-long-term liabilities
Short-term bank liabilities		 53.420
146,906		 50.445
106.332		 20.665
34.062
35,712		 19.402
Other-short-term lisbilities 23.032 18.367 20.925 18.250
Total Babilities (d)
TOTAL LIABRITIES AND EQUITY (c) + (d)		 766,252
637,423		 223.957
589,766		 97.588
54,738
463,571
456,876
CASH FLOW STATEMENT (indirect method)
Amounts in thousand our o GROUP COMPANY
STATEMENT OF CHANGES IN EQUITY (Consolidated & non-consolidated data) 11-303-2009 11-3092098 11-3032009 11-309.2003
Amounts in thousand cure Operating activities
Profit before tax		 18.515 23.205 16.285 22.366
(Consolidated & non-consolidated data) GROUP
3052005		 30.9.2008 COMPANY
30.9.2008
389.2669		 Plus less adjustments for:
Depreciation		 6.686 4.762 3.442 2.138
Total Egulty at the beginning of the period (01.01.09 and 01.01.08) 365,809
13,727		 349.161
17,362		 362,146
347, 882
12.282
16.836		 Provisions (361)
(7.872)		 43 $^{29}$
(7.789)		 40
(11.540)
Total comprehensive income after tax
Purchases/(sales) of treasury shares		 (1.032) (147) (1.032) (147) Interest income and related income
interest expenses and related expenses		 4.086 (11.681)
3.957		 2.402 2.452
Dividends
Transfers - other novements		 (7.333) (6.014)
(11)		 (7.333)
(6.014)		 Results from participations and securities
Amortization of grants		 (1.804) (1.328) (1.280)
(787)		 (622)
(488)
Total Equity at the end of the period (30/9/09 and 30/9/08) 371.171 366.351 366.063
358,557		 Other adjustments
Operating profit before changes in working capital		 19,252 19,038 12.312 14,338
Plus/Less adjustments for working capital account movements or movements related to
contrating activities:
Decrease / (increase) in inventories
Decrease / (increase) in receivables		 18
(21.383)		 (158)
4.524		 19
(13.368)		 (154)
7.120
(Decrease) / increase in lisbilties (other than to banks) 26.139 (3.587) 14.202 (1.099)
(Less):
Taxes paid		 (5.755 (2.623) (4.979) (2.254)
Total inflows / (outflows) from operating activities (a)
Investing activities		 18.271 17.194 8.186 17,951
ΠΡΟΣΘΕΤΑ ΣΤΟΙΧΕΙΑ ΚΑΙ ΠΛΗΡΟΦΟΡΙΕΣ Durchanen of tangible & intangible annets (83.467) (43.109) (23.418) (10.255)
1. There was no change in the accounting policies and estimations. There has been no correction of errors or reclassifications of accounts in the financial statements during Collection of grants
Interest received		 14.728
9.471		 3,562
11.374		 5.730
9.369		 11.240
the present period
2. The Basic Accounting Principles of the financial statements as of 31/12/08 have been followed.		 (Purchases)/sales of participations and securities
Total inflows / (outflows) from investing activities (b)		 (59.260) (28.173) (11.568)
(19.005)		 (6.532)
(5.548)
3. The group during the present period employed 114 individuals. For the respective period of 2008, it employed 173 individuals.
4. On 4/11/2009 the ordinary tax audit of the parent company TERNA ENEROV SA was concluded for the financial year 2008. The tax audit resulted in a tax
charge of 110 thousand euro. Note 4 of the financial report for 30/9/2009 includes the tax un-audited financial years of the consolidated companies.		 Financing activities
5. Claims to cancel the planned installation of the Wind Park of the subsidiary "AIOLINI PANORAMATOS DERVENDOHORION SA" are pending before the Council of State.
The court session took place in November 2009, and until the final judgment the Council of State has ordered the postponement of construction activities for the 17 of the Purchases of treasury shares (1.035) 0 (1.035) $\theta$
40 wind generators under construction.
6. Earnings per share were calculated based on the weighted average number of shares.		 (6.019) (2.064) (2.195)
7. The financial statements of the group are included in the consolidated financial statements of GEK TERNA SA, consolidated with the full consolidation method. The Net change in long-term loans (1.825)
aforementioned parent company is registered in Greece and on 30/9/2009 owned 47.908% of the company's share capital. Net change in short-term loans 40.574 29.057 (801) 3.454
8.The amounts of sales and purchases (goods and services) cumulatively from the beginning of the financial period, as well as the balances of receivables
and liabilties of the company at the end of the present period, that have emerged from its transactions with its affiliated parties, as such		 Dividends paid
Interest paid		 (6.600)
(5.703)		 (6.210)
(3.579)		 (6.600)
(2.486)		 (6.014)
(2.148)
are defined by IAS 24, are as follows: Total inflows /(outflows) from financing activities (c)
llet increase / (decrease) in cash and cash equivalents for the period (a) -		 21.217 16.404 (13.117) (6.533)
GROUP COMPANY $(b) + (c)$
Cash and cash equivalents at the beginning of the period		 (19, 780)
758,886		 5.425
295,176		 (24,866)
283, 135		 5,876
287,418
a) Sales of goods and services 3.101 3,768 Cash and cash equivalents at the end of the period 271.106 300,601 258,323 293,288
I) Purchases of goods and services
c) Receivables		 4.28
3.097		 5.277
2.312
d) Lisbillies
a) Transactions A resumeration of RoD and even dives		 2856
938		 1,293
ŘÍŘ
f) Receivables from BoD members and executives $\sqrt{a}$ $\theta$
(g) Liobilties to BoD members and executives 14 14
9. The provisions of the company and group are presented in detail in note 9 of the third quarter financial report, and are analyzed as follows: GROUP COMPANY
Provision for unaudited tax years 96 60
Other provisions 1.439 901
10. The names, domicles, participation percentages and consolidation method of companies and joint ventures that were consolidated in the financial statements of 30/9/2009 are mentioned in detail in Note 4 of the financial
The consolidated financial statements of 30/9/2009 do not include the joint venture TERNA ENEROY SA-OLYMPIO ATE, due to dissolution and liquidation of such, following the final delivery of the project it had undertaken
11. The number of treasury shares owned by the company on 30 September 2009 amounted to 677,365 shares with a total acquisition cost of 2,643,969.23 € No shares of the parent are owned by the Group's other companies
12. The amounts and nature of total incorrec(expenses) after taxes, are analyzed as 1000ws OROUR COMPANY
income tax recognized directly in equity
Foreign exchange differences trom conversion of incorporated foreign operations		 (130)
(10)		 (141)
Expenses for share capital increase of subsidiary (11) $\overline{a}$
(151) (141)
Athens, 26/11/2009
THE CHARMAN OF THE BOARD THE MANAGING DIRECTOR THE CHEF FINANCIAL OFFICER THE HEAD ACCOUNTANT
GEORGIOS PERDINARIS
ID No: X 516918		 EMMANUEL MARAGOUDANIS
D No: AB 986527		 KONSTANTINOS DIMOPOULOS
D No: 3 101797		 NIKOLAOS MANAVERIS
D No: AE 567798
License Reg. No. A' CLASS 9674

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