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Terna Energy S.A. Interim / Quarterly Report 2006

Sep 30, 2015

2713_10-q_2015-09-30_fcda1ee5-f6df-47bc-a52b-1eb526906970.pdf

Interim / Quarterly Report

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TERNA GROUP

INTERIM FINANCIAL STATEMENTS OF THE PARENT COMPANY AND ITS GROUP AS AT THE 31ST OF MARCH 2006 IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

TABLE OF CONTENTS

THE COMPANY

BALANCE SHEET……………………………………………………………………………………3
INCOME STATEMENT……………………………………………………………………………….5
CASH FLOW STATEMENT ………………………………………………………………………….6
STATEMENT OF CHANGES IN EQUITY …………………………………………………………8

THE GROUP

BALANCE SHEET……………………………………………………………………………………9
INCOME STATEMENT…………………………………………………………………………….11
CASH FLOW STATEMENT …………………………………………………………………………12
STATEMENT OF CHANGES IN EQUITY ………………………………………………………….14

NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006

1. ACTIVITY OF THE GROUP 15
2. BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS 15
3. SUMMARY OF KEY ACCOUNTING PRINCIPLES 15
4. INFORMATION ON CONSOLIDATED COMPANIES 16
5. INFORMATION BY SECTOR OF ACTIVITY 19
6. EXISTING CHARGES ON ASSETS 20
7. DIFFERENCES UNDER LITIGATION OR ARBITRATIONS 20
8. INTRA-COMPANY TRANSACTIONS 20
9. POST BALANCE SHEET DATE EVENTS 21
10. CONTINGENT LIABILITIES 21

TERNA SA

BALANCE SHEET 31 MARCH 2006

(all amounts are in thousand euros unless otherwise stated)

THE COMPANY
31 March 31 December
2006 2005
ASSETS
Long-term assets
Tangible fixed assets 40.284 41.111
Intangible assets 5.736 5.821
Real estate 7.935 7.935
Participation in affiliated companies and joint
ventures 37.111 37.111
Other long-term receivables 146 146
Deferred income tax 2.990 6.446
Total long-term assets 94.202 98.570
Current assets
Inventories 2.923 4.324
Trade receivables 90.163 92.726
Prepayments and other receivables 17.291 15.006
Other financial assets 4.578 4.578
Cash and cash equivalents 10.572 12.818
Total current assets 125.527 129.452
TOTAL ASSETS 219.729 228.022
EQUITY AND LIABILITIES
Equity of the shareholders of the parent
Share capital 53.319 53.319
Share premium 35.922 35.922
Reserves 15.969 15.969
Profit carried forward 32.430 28.362
Total equity 137.640 133.572
Long-term liabilities
Long-term loans - -
Loans from finance leases 2.769 3.372
Other long-term liabilities 31 31
Provisions 757 946
Provision for staff indemnities 735 996
Subsidies - -
Deferred income tax - -
Total long-term liabilities 4.292 5.345
Short-term liabilities
Suppliers 32.339 37.517
Short-term loans 23.386 26.029
Long-term liabilities falling due 22.072 25.367
Accrued and other short-term liabilities -
Income tax payable - 192
Total short-term liabilities 77.797 89.105
TOTAL EQUITY AND LIABILITIES 219.729 228.022

TERNA SA

INCOME STATEMENT

FOR THE PERIOD ENDING ON 31 MARCH 2006

(All amounts are expressed in thousand euro, except the shares)

THE COMPANY
31 March 31 December
2006 2005
INCOME
Net turnover 30.553 39.290
Cost of sales (24.582) (29.573)
Gross profit 5.971 9.717
Administartive and distribution expenses (3.066) (2.716)
Other income(expenses) 2.794 441
Net financial income(expenses) (281) (1.500)
EARNINGS BEFORE TAX 5.418 5.942
Income tax (1.350) (418)
EARNIGNS AFTER TAX 4.068 5.524
Distributed to
Shareholders of the parent
Minority interest
- -
Earnings per share (in euro)
Basic 0,09 0,12
Dilluted
Weighted average number of shares and dilluted
Basic 45.964.500 45.964.500
Dilluted

TERNA SA

CASH FLOW STATEMENT

FOR THE PERIOD ENDING ON 31 MARCH 2006

(all amounts are in thousand euros unless otherwise stated)

THE COMPANY
31 March
2006
31 December
2005
Cash flow from operating activities
Earnings before tax 5.418 5.942
Adjustments for the agreement of net flows from operating
activities
Depreciations 1.416 1.308
Provisions (450) (1.219)
Interest and related income (219) (1)
Interest and other financial expenses
(Profit)/Loss from the sale of tangible assets and investment
501 609
property (61) 0
(Profit)/loss from the sale and valuation of participations 0 1.439
Depreciation of grants 0 0
Operating profit before the changes in working capital 6.605 8.078
(Increase)/decrease in
Inventory 1.401 3.015
Trade receiveble 2.563 (11.506)
Prepayments and other short-term receivables (82) (6.944)
Increase(decrease) in:
Suppliers (5.178) (5.380)
Accrued and other short-term liabilities (3.488) 6.245
Subsidies receivals 0 0
(Increase)/Decrease of other long-term receivables (2) (2)
Cash inflows from operating activities 1.819 (6.494)
Cash flows from investing activities
Purchases if tangible assets (555) (30)
Sales of tangible assets 61 0
Purchases of intangible assets (45) (18)
Interest and related income received 219 1
Sale of participation percentage and other changes in participations 0 (3.020)
Share capital increase of a participation
Real estate 0 0
Cash flows from investing activities (320) (3.067)

Cash flows from financing activities

Net change in short-term loans (2.643) 9.728
Withdrawals from long-term loans 0 0
Payments of loans from financial leases (603) (414)
Interest paid (501) (609)
Change of other financial receivables 2 1.767
Cash flows from financing activities (3.745) 10.472
Foreign exchange effect on cash and cash equivalents 0 0
Net increase in cash and cash equivalents (2.246) 911
Cash and equivalents at the beginning of the period 12.818 3.918
Cash and equivalents at the end of the period 10.572 4.829

TERNA SA STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDING ON 31 MARCH 2005

(All amounts are expressed in thousand euro unless otherwise stated)

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TERNA GROUP S.A.

BALANCE SHEET

31 MARCH 2006

(all amounts are in thousand euros unless otherwise stated)

GROUP
31 March 31 December
2006 2005
ASSETS
Long-term assets
Tangible fixed assets 169.999 154.637
Intangible assets 5.769 5.859
Real estate 26.305 26.305
Other long-term receivables 324 256
Deferred income tax 3.708 7.092
Total long-term assets 206.105 194.149
Current assets
Inventories 13.659 14.260
Trade receivables 173.776 163.511
Prepayments and other receivables 46.715 38.030
Other financial assets 5.003 9.069
Cash and cash equivalents 41.781 49.067
Total current assets 280.934 273.937
TOTAL ASSETS 487.039 468.086
EQUITY AND LIABILITIES
Equity of the shareholders of the parent
Share capital 53.319 53.319
Share premium 35.922 35.922
Reserves 21.783 21.783
Profit carried forward 55.303 50.500
166.327 161.524
Minority interest 19.285 18.601
Total equity 185.612 180.125
Long-term liabilities
Long-term loans 55.731 53.994
Loans from finance leases 15.782 17.353
Other long-term liabilities 31 31
Provisions 2.027 2.092
Provision for staff indemnities 868 1.277
Subsidies 14.004 14.296
Deferred income tax 3.419 3.778
Total long-term liabilities 91.862 92.821
Short-term liabilities
Suppliers 81.017 87.054
Short-term loans 83.516 75.267
Long-term liabilities falling due 395 527
Accrued and other short-term liabilities 44.094 32.116
Income tax payable 543 176
Total short-term liabilities 209.565 195.140
TOTAL EQUITY AND LIABILITIES 487.039 468.086

TERNA GROUP SA

INCOME STATEMENT FOR THE PERIOD ENDING ON 31 MARCH 2006

(All amounts are expressed in thousand euro, except the shares)

GROUP
31 March 31 March
2006 2005
INCOME
Net turnover 51.473 60.963
Cost of sales (39.872) (45.759)
Gross profit 11.601 15.204
Administartive and distribution expenses (4.326) (3.582)
Other income(expenses) 1.582 755
Net financial income(expenses) (1.268) (2.130)
EARNINGS BEFORE TAX 7.589 10.247
Income tax (2.422) (663)
EARNIGNS AFTER TAX 5.167 9.584
Distributed to
Shareholders of the parent 4.483 8.738
Minority interest 684 846
5.167 9.584
Earnings per share (in euro)
Basic 0,10 0,19
Dilluted
Average weighted number of shares, basic and diluted
Basic 45.964.500 45.964.500
Dilluted

TERNA GROUP S.A.

CASH FLOW STATEMENT

FOR THE PERIOD ENDING ON 31 MARCH 2006

(all amounts are in thousand euros unless otherwise stated)

GROUP
31 March
2006
31 March
2005
Cash flow from operating activities
Earnings before tax 7.589 10.247
Adjustments for the agreement of net flows from operating
activities
Depreciations 3.421 2.628
Provisions (474) (1.156)
Interest and related income (324) (82)
Interest and other financial expenses 1.605 1.751
(Profit)/loss from the sale and valuation of participations (104) 1.377
Depreciation of grants (292) (289)
Operating profit before the changes in working capital 11.421 14.476
(Increase)/decrease in
Inventory 601 550
Trade receiveble (10.265) (11.137)
Prepayments and other short-term receivables (8.685) (5.213)
Increase(decrease) in:
Suppliers (6.037) (5.524)
Accrued and other short-term liabilities 12.535 4.088
Subsidies receivals 2.719
(Increase)/Decrease of other long-term receivables (68) 9
Cash inflows from operating activities (498) (32)
Cash flows from investing activities
Purchases if tangible assets (18.002) 0
Sales of tangible assets 104 3.186
Purchases of intangible assets (90) (18)
Interest and related income received 324 82
Sale of participation percentage and other changes in participations 0 (657)
Share capital increase of a participation
Real estate 0 (2.569)
Cash flows from investing activities (17.664)
24

Cash flows from financing activities

Net change in short-term loans (1.872)
Withdrawals from long-term loans 1.737 5.420
Payments of loans from financial leases (1.571) (1.401)
Interest paid (1.605) (1.751)
Change of other financial receivables 4.066 (3.506)
Cash flows from financing activities 10.876 (3.110)
Foreign exchange effect on cash and cash equivalents 0 0
Net increase in cash and cash equivalents (7.286) (3.118)
Cash and equivalents at the beginning of the period 49.067 37.013
Cash and equivalents at the end of the period 41.781 33.895

TERNA GROUP SA STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDING ON 31 MARCH 2006

(All amounts are expressed in thousand euro unless otherwise stated)

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TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006 (Amounts in thousand euros, unless otherwise stated

1. ACTIVITIES OF THE GROUP

Terna SA (hereinafter the Company or TERNA) was founded in 1972 (Govt. Gazette 1338/04.07.72), is domiciled in Athens, 85 Mesogeion Str. and has a duration of 50 years, until 04.07.2022.

TERNA S.A. holds a 7th grade construction certificate and its main activity is to undertake and carry out public and private construction projects of any kind. According to the legislation in effect, companies that hold a 7th grade construction certificate may only undertake public projects of over 35 mil. euros. There is no upper limit to the budget of the projects that the Group may independently undertake. Furthermore, TERNA owns and operates a quarry and trades in inert materials.

At the Group level, TERNA is active in the industrial sector with its subsidiary companies «ΒΙΟΜΕΚ», which undertakes metal constructions and «STROTIRES AEBE», which produces and distributes skids from armed concrete. Also, through «HERON THERMOELEKTRIKI SA» and «TERNA ENERGY ΑΒΕΤΕ» the Group is active in the energy sector through thermoelectric installations and wind parks with a total installed capacity of 148MW and 55.7MW. The consolidated financial statements of TERNA are included in the consolidated financial statements of its parent company GEK SA, which on the balance sheet date held (directly and indirectly) 54.22% of its share capital.

2. BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

The attached financial statements that form the parent and consolidated financial statements of the Parent and the Group are compiled in accordance with IFRAS as these are adopted by the European Union and specifically in accordance with the provisions of IAS 34 «Interim Financial Statements». There are not any standards that have been applied prior to their adoption date. Also, the financial statements have been prepared according to the historic cost principle, except from investment property which is valued at fair value. Some own-used tangible fixed assets on the date of transition to the International Financial Reporting Standards (IFRS) (01/01/2004) were measured at fairl value and these values were used as deemed cost.

3. SUMMARY OF KEY ACCOUNTING POLICIES

The main accounting policies adopted during the compilation of the attached financial statements are consistent to those followed for the compilation of the annual financial statements for the period ending on 31/12/2005. Also, the International Accounting Standards Board and the Interpretations Committee have issued a series of new Accounting Standards and interpretations as reported below:

Effect of newly issued Accounting Standards (IFRS or IAS) and Interpretations (SIC): Τα The new IFRS and IFRIC are mandatory for the accounting periods beginning from January 1st 2006. The assessment of the Management regarding the impact of the new standards and interpretations is as follows:

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006

(Amounts in thousand euros, unless otherwise stated)

  • IAS 19 (amendment): Employee Benefits (in effect from January 1st 2006). This amendment provides companies with the option of an alternative method for the recognition of actuarial gains or losses. It will probably introduce new recognition conditions for multiemployer plans where adequate information for the application of defined benefit accounting is not available. It also adds new disclosure requirements. This amendment is not applicable for the Group.
  • IAS 39 (amendment): Cash Flow Hedge Accounting for Forecast Intragroup Transactions (in effect from January 1st 2006). This amendment allows for the foreign currency risk from a highly probable forecast intragroup transaction may qualify as a hedged item in consolidated financial statements if: (a) the transaction is denominated in a currency other than the functional currency of the entity entering into that transaction and (b) the currency risk will affect the consolidated income statement. This amendment is not relevant to the operations of the Group, as the Group does not carry out any such intragroup transactions.
  • IAS 39 (amendment): Fair Value Option (in effect from January 1st 2006). This amendment changes the definition of the financial instruments that have been classified at fair value through profit and loss and limits the possibility of classifying financial instruments in this category. The Group considers that this particular amendment will not have a significant impact on the classification of its financial instruments since the Group has not classified any financial instruments at fair value through profit and loss other than the instruments that are held for trading purposes. The Group will apply this amendment from January 1st, 2006 onwards.
  • IAS 39 and IFRS 4 (Amendment): Financial Guarantee Contracts (in effect from January 1st 2006). This amendment requires that financial guarantees issued, other than those that the Group has proved that they are insurance contracts, to be initially recognized at fair value and to be subsequently valued at the greatest of (a) the unamortized balance of the relevant fees that have been collected and deferred and (b) the outflow required to settle the commitment at the balance sheet date. The Management has come to the conclusion that this amendment does not apply to the Group.
  • IFRS 6: Exploration for and evaluation of mineral resources. It is applied to financial statements that starting from January 1st 2006 onwards and it has not affected the financial statements of the Company and the Group.
  • IFRIC 4. Determining Whether an Arrangement Contains a Lease: IFRIC 4 is applied to annual periods starting from January 1st 2006 onwards The implementation of IFRIC 4 did not change the accounting treatment of any of the Group's current contracts.
  • IFRIC 5. Rights to interests arising from decommissioning, restoration and environmental rehabilitation funds. It is applied to financial statements starting from January 1 st 2006 onwards and did not affect the financial statements of the Group.

4. INFORMATION ON CONSOLIDATED ENTITIES

The data of the consolidated entitiew of the Group as of the 31st of March 2006 are as follows:

Regarding the non-audited tax years, the Company for the years 2002-2004 as well as its subsidiary TERNA ENERGY ABETE which for the year 2004 are currently under a tax audit procedure. The non-audited tax years for the companies of the TERNA Group SA that are consolidated are as follows:

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS

31 MARCH 2006

(Amounts in thousand euros, unless otherwise stated)

Α) COMPANIES FULLY CONSOLIDATED Α.1) Direct subsidiaries

Α/Α COUNTRY OF PARTICIPATION NON-AUDITED
COMPANY NAME DOMICILE PERCENTAGE TAX YEARS
1. ΤΕRΝΑ ENERGY ΑΒΕΤΕ GREECE 61,75% 2
2. ΒΙΟΜΕΚ ΑΒΕΤΕ GREECE 66,50% 4
3. STROTIRES ΑΕΒΕ GREECE 51% 3
4. DIKEVE SA GREECE 100% 3
5. ILIOCHORA SA GREECE 100% 1

Α.2) Subsidiaries of TERNA ENERGY ΑBETΕ:

Α/Α COMPANY NAME COUNTRY OF PARTICIPATION NON-AUDITED
DOMICILE PERCENTAGE TAX YEARS
1. IWECO CHONOS LASITHI CRETE SA GREECE 100% 3
2. ENERGIAKI SERVOUNIO SA GREECE 100% 4
3. TERNA ENERGY EVROS SA GREECE 100% 4
4. PPC RENEWABLE- ΤΕRΝΑ ENERGY SA GREECE 51% 3

Β. COMPANIES CONSOLIDATED PROPORTIONALLY B.1) Direct consolidated companies

Α/Α COMPANY NAME COUNTRY OF PARTICIPATION NON-AUDITED
DOMICILE PERCENTAGE TAX YEARS
1. HERON THERMOELEKTRIKI SA GREECE 50% A tax audit has not
been made since the

company is at the preliminary stage

Β.2) JOINT VENTURES OF TERNA SA

Α/Α COMPANY NAME PARTICIPATION
PERCENTAGE
NON-AUDITED
TAX YEARS
1. J/V MAIN IRRIGATION CANAL D 1 75,00% 6
2. J/V TERNA SA – IMPEGILO SPA (TRAM ) 55,00% 5
3. J/V HERACLION UNIVERSITY CITY 50,00% 2
4. J/V DEVIATION ANCIENT OLYMPIA 50,00% 4
5. J/V AKTOR, AEGEK, EKTER, TERNA, SPATA AIRPORT 20,00% 6
6. J/V TERNA SA/AKTOR SA GOULANDRI MUSEUM 50,00% 3
7. J/V DEPA PROJECT 10,00% 3
8. J/V UNDERGROUND CAR PARK THESSALONIKI 50,00% 3
9. J/V ARTA DEVIATION - PHILIPIADAS 98,00% 4
10. J/V ATHENS OPERA HOUSE 45,00% 4
11. J/V ATHENIAN CAR PARKS 20,00% 3
12. J/V PERISTERI METRO 50,00% 4
13. J/V TERNA SA – ATHINA ATE PROJECT ARACHTHOU PERIST. 62,50% 4
14. J/V TERNA SA – KARAGIANNIS PROJECT TEFAA KOMOTINIS 24,00% 3
15. J/V THALES ATM SA-TERNA UPGRADE CAR PARK TACAN 22,25% 5
16. J/V ETETH-TERNA-AVAX PANTHECHNIKI HORSE RIDING CENTER 35,00% 3
17. J/V AVAX-BIOTER (CONSTRUTION OF OLYMPIC VILLAGE) 37,50% 3
18. J/V TERNA S.A. PANTECHNIKI S.A. 83,50% 3
19. J/V TERNA S.A. AKTOR A.T.E J&P AVAX 33,00% 4
20. J/V TERNA SA J&P AVAX – PANTHECHNIKI MAINTENANCE OF
HORSE RIDING CENTER 25,00% 3
21. J/V TERNA SA-ATHINA ATE 62,50% 2
22. J/V ARCHIRODON HELLAS ATE-TERNA SA 30,00% 4

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006

(Amounts in thousand euros, unless otherwise stated)

23. J/V EVINOU – AEFEK-METON SA-TERNA SA-EYKLEIDIS ATE 33,33% 3
24. J/V TERNA SA – TH. KARAGIANNIS SA PROJECT YPEXODE
CONSTRUCTION 50,00% 5
25. J/V SALONICA PARK 50,00% 1
26. J/V SIEMENS-ΑΚΤOR-ΤΕRΝΑ SA 37,50% 1
27. J/V TERNA SA- MICHANIKI SA DEVIATION OF AGRINIO 65,00% 1
28. J/V TERNA SA/BIOTER SA - CONTRUCTION OF NAT BUILDING 50,00% 6
29. J/V TERNA SA-THALES SA 50,00% 3

B.3) Joint Ventures of TERNA ENERGY ABETE

J/V NAME PARTICIPATION
PERCENTAGE
NON-AUDITED
TAX YEARS
1. J/V TRAM POLITICAL ENGINEERING WORKS, Greece 36% 3
2. J/V ENVAGELISMOU, PROJECT C', Greece 50% 3*
3. J/V TERNA ENERGY - TSAMPR. DRAMAS HOSPITAL, 40% 3*
Greece
4. J/V EPL DRAMAS, Greece 24% 3*
5. J/V TERNA ENERGY - OLYMPIOS ATE, Greece 50% 3
6. J/V K. MANIOTIS - TERNA - TERNA ENERGY, Greece 37,50% 3
7. J/V/ EMBEDOS - PANTECHNIKI - TERNA ENERGY, Greece 50,10% 3
8. J/V THEMELI - TERNA ENERGY - TERNA SA IMPREGILO 40% 2
SPA, Greece
9. J/V EKTER - TERNA - ATHONIKI, Greece 31% 1
10. J/V/ KL. ROUTSIS - TERNA ENERGY ABETE, Greece 50% 2

* Without any tax interest because the project of the J/V is completed and during these years no income was generated. These J/Vs are soon expected to cease existing.

B.4) Partnership and Limited Partnership companies of the subgroup TERNA ENERGY ABETE*

* They are established in order to receive the license for the construction of facilities for the production of electrical energy using renewable resources, and if this project goes through the companies would be absorbed by TERNA ENERGY ABETE. They have no activity till today and therefore no tax interest.

NAME PARTICIPATION NON
AUDITED
TAX YEARS
1. TERNA ENERGY ΑΒΕΤΕ - Μ.Ε.L. MAKEDONIKI ETAIRIA HARTOU
& SIA, J/V, Greece
50% 4
2. TERNA ENERGY Α.Β.Ε.Τ.Ε. & SIA AIOLIKI RAHOULAS
DERVENOHORION, Greece
100% 4
3. TERNA ENERGY ABETE & SIA AIOLIKI POLYKASTROU, Greece 100% 4
4. TERNA ENERGY ABETE & SIA AIOLIKI PROVATA
TRAIANOUPOLEOS, Greece
100% 4
5. TERNA ENERGY ABETE & SIA ENERGIAKI DERVENOHORION,
Greece
100% 4
6. TERNA ENERGY ABETE & SIA ENERGIAKI VELANIDION
LAKONIAS, Greece
100% 4
7. TERNA ENERGY ABETE & SIA ENERGIAKI DISTION EVIAS, Greece 100% 4

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS

31 MARCH 2006

(Amounts in thousand euros, unless otherwise stated)

8. TERNA ENERGY ABETE & SIA AIOLIKI PASTRA ATTIKIS, Greece 100% 4
9. TERNA ENERGY ABETE & SIA AIOLIKI MALEA LAKONIAS,
Greece
100% 4
10. TERNA ENERGY ABETE & SIA ENERGIAKI FERRON EVROU,
Greece
100% 4
11. TERNA ENERGY ABETE & SIA AIOLIKI DERVENI
TRAIANOUPOLEOS, Greece
100% 4
12. TERNA ENERGY ABETE & SIA AIOLIKI KARYSTIAS EVIAS, Greece 100% 4
13. TERNA ENERGY ABETE & SIA ENERGIAKI ARI SAPPON, Greece 100% 4
14. TERNA ENERGY ABETE & SIA ENERGIAKI PELOPONNISOU,
Greece
100% 4
15. TERNA ENERGY ABETE & SIA AIOLIKI ANATOLIKIS ELLADOS,
Greece
100% 4
16. TERNA ENERGY ABETE & SIA AIOLIKI MARMARIOU EVIAS,
Greece
100% 4
17. TERNA ENERGY ABETE & SIA ENERGIAKI PETRION EVIAS,
Greece
100% 4
18. TERNA ENERGY ABETE & SIA AIOLIKI ROKANI
DERVENOHORION, Greece
100% 4
19. TERNA ENERGY ABETE & SIA ENERGIAKI STIRON EVIAS, Greece 100% 4
20. TERNA ENERGY ABETE & SIA ENERGIAKI NEAPOLEOS
LAKONIAS, Greece
100% 4
21. TERNA ENERGY ABETE & SIA ENERGIAKI XSIROVOUNIOU,
Greece
70% 4
22. TERNA ENERGY ABETE & SIA AIOLIKI PANORAMATOS
DERVENOHORION, Greece
100% 4
23. TERNA ENERGY ABETE & SIA ENERGIAKI KAFIREOS EVIAS,
Greece
100% 4
24. TERNA ENERGY ABETE & Co EE 70% 3

5. INFORMATION BY SECTOR OF ACTIVITY

The table below reports the analysis of the results of the Group for the 3-month period ending on 31/03/2006 and 31/03/2005 by sector.

TERNA GROUP
(1/1-31/03/2005)
Construction Energy Real Estate Industrial Other Total of
Sector Sector Sector Sector Sectors Sectors
INCOME STATEMENT
Turnover (Sales) 48.010 6,183 191 1,710 5,958 62,052
Less: inter-company sales -1.089 0 0 0 0 -1,089
Sales of the sector 46,921 6,183 191 1,710 5,958 60,963
Earnings before interest,
tax depreciation and
amortization (EBITDA)
11,490 3,797 166 -2 -446 15,005
Earnings before tax 8,688 1,955 87 16 -498 10,247

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006

(Amounts in thousand euros, unless otherwise stated)

TERNA GROUP
(1/1-31/03/2006)
Construction
Sector
Energy
Sector
Real Estate
Sector
Industrial
Sector
Other
Sectors
Total of
Sectors
INCOME STATEMENT
Turnover (Sales) 44,644 7,997 169 0 962 53,772
Less: inter-company sales -2,299 0 0 0 0 -2,299
Sales of the sector 42,345 7,997 169 0 962 51,473
Earnings before interest,
tax depreciation and
amortization (EBITDA)
7,494 4,979 115 115 -424 12,278
Earnings pre tax 5,350 2,580 13 83 -436 7,589

6. EXISTING CHARGES ON ASSETS

There are mortgage prenotations on some subsidiaries of the Group amounting to €17,107. Specifically,

BIOMEK ΑΒΕΤΕ ……………………………………………………1,507
DIKEBE SA ………………………………………………………15,600
Total 17,107

7. DIFFERENCES UNDER LITIGATION OR ARBITRATION

During the course of conducting its business, the Company may face legal claims from third parties. According to both the Management and the Company's Legal Counsel, any such claims are not expected to have a material impact on the Company's operation and financial position as of the 31st of 31 March 2006.

8. TRANSACTIONS WITH RELATED PARTIES

The intra-group transactions (purchases and sales) and the intra-group balances between the companies of the Group that are consolidated are eliminated in the consolidated financial statements.

The transactions with related parties for the period 01/01-31/03/2006 as well as the balances that have arisen from these transactions are as of 31.03.2005 as follows:

TRANSACTIONS
Category of transation
Income from intra-company sales
Cost of intra-company transactions
Dividends
Amounts
5,760
6,208
704
BALANCES
Category of balance Amounts
Trade receivables 31,511
Inventory pre-payments 147
Sundry debtors 5,555
Trade payables 3,964
Sundry creditors 2,389

TERNA GROUP NOTES ON THE INTERIM PARENT & CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2006 (Amounts in thousand euros, unless otherwise stated)

9. POST BALANCE SHEET DATE EVENTS

The companies of TERNA SA group of companies and TERNA ENERGY ABETE together with their joint ventures signed contracts participating in projects totalling €117mil, while there are also declared bidders in other competitions having a total budget of €54mil.

The consortium «HELLENIC AUTOPISTAS» in which the Company participates by 33.33% is declared as a temporary bidder for the construction, exploitation and operation of the Ionian Road, having a construction cost of €1.4mil. Based on the signed contract for the construction of the project, TERNA SA, would participate in the construction part of the project with a participation percentage of 33.33%.

10. CONTINGENT LIABILITIES

The management of the Group estimates that there are no changes in contingent liabilities compared to those existed on 31/03/2006.

The Management of the Group estimates that there are no changes in contingent liabilities of the Group compared to the ones as of 31/12/2005.

CERTIFICATE

It is confirmed that the attached Financial Statements are those approved by the Board of Directors of the Company on May, 26 2006 and have been published with their posting on the internet, at the web page www.terna.gr. It is noted that the published in the press brief financial data, aim at providing general financial information but do not provide a complete depiction of the Company's and Group's economic status and financial results, according to the International Financial Reporting Standards.

CHAIRMAN OF BoD VICE-CHAIRMAN OF BoD& MANAGING DIRECTOR

Nikolaos Kambas George Peristeris

CHIEF FINANCIAL OFFICER HEAD OF ACCOUNTING DEPARTMENT

Panayiotis Pothos Nikolaos Athanasiou