PUBLIC POWER CORPORATION S.A. Interim Condensed Consolidated and Separate Financial Statements for the three month period from January 1, 2010 to March 31, 2010 in accordance with International Financial Reporting Standards, adopted by the European Union The attached interim condensed consolidated and separate financial statements were approved by Public Power Corporation Board of Directors on May 19, 2010 and they are available in the web site of Public Power Corporation S.A. at www.dei.gr. Public Power Corporation S.A. Registration No 47829/06/Β/00/2 Chalkokondyli 30 - 104 32 Athens This page is left blank intentionally PUBLIC POWER CORPORATION S.A. INTERIM CONDENSED FINANCIAL STATEMENTS (SEPARATE AND CONSOLIDATED) FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2010 CONTENTS Page A1. INTERIM CONDENSED FINANCIAL STATEMENTS ......................................................................... 2 A2. NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS ........................................... 9 1. CORPORATE INFORMATION ............................................................................................................... 10 2. CHANGES IN LEGAL FRAMEWORK ................................................................................................... 10 3. BASIS OF PRESENTATION FOR THE INTERIM CONDENSED FINANCIAL STATEMENTS... 13 4. SEASONALITY OF OPERATIONS ........................................................................................................ 16 5. INVESTMENTS IN SUBSIDIARIES ....................................................................................................... 16 6. INVESTMENTS IN ASSOCIATES.......................................................................................................... 17 7. INVESTMENTS IN JOINT VENTURES ................................................................................................. 18 8. BALANCES AND TRANSACTIONS WITH RELATED PARTIES ..................................................... 19 9. DIVIDENDS ................................................................................................................................................ 20 10. LOAN AGREEMENTS – REPAYMENTS .............................................................................................. 20 11. COMMITMENTS AND CONTINGENCIES ............................................................................................ 21 12. SUBSEQUENT EVENTS ......................................................................................................................... 29 13. SIGNIFICANT EVENTS OF THE PERIOD ........................................................................................... 30 14. SEGMENT INFORMATION ..................................................................................................................... 31 B.ADDITIONAL INFORMATION ................................................................................................................... 32 1 A1. INTERIM CONDENSED FINANCIAL STATEMENTS The attached interim condensed consolidated and separate financial statements were approved by Public Power Corporation Board of Directors on May 19, 2010 and they are available in the web site of Public Power Corporation S.A. at www.dei.gr. CHAIRMAN AND CHIEF CHIEF FINANCIAL EXECUTIVE OFFICER VICE CHAIRMAN OFFICER CHIEF ACCOUNTANT ARTHOUROS EVAGGELOS GEORGE C. EFTHIMIOS Α. ZERVOS PETROPOULOS ANGELOPOULOS KOUTROULIS 2 PUBLIC POWER CORPORATION S.A. INTERIM CONDENSED CONSOLIDATED AND SEPARATE STATEMENTS OF INCOME FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2010 (All amounts in thousands of Euro - except share and per share data) GROUP PARENT COMPANY 01.01.2010 - 01.01.2009 - 01.01.2010 - 01.01.2009 - 31.03.2010 31.03.2009 31.03.2010 31.03.2009 (restated) (restated) REVENUES: Revenue from energy sales 1,353,968 1,405,701 1,349,245 1,405,571 Other 137,251 121,330 137,251 121,330 1,491,219 1,527,031 1,486,496 1,526,901 EXPENSES : Payroll cost 265,960 268,083 264,755 266,751 Fuel 417,684 468,430 417,684 468,430 Depreciation and Amortization 118,366 109,302 117,332 108,069 Energy purchases 132,865 135,095 134,581 139,328 Transmission system usage 69,792 73,494 69,792 73,494 Provisions for CO2 emission rights of 1Q 12,762 21,112 12,762 21,112 Provisions 35,389 17,681 35,362 17,681 Loss/(Gain) from valuation for CO2 liabilities of prior year 1,022 (25,601) 1,022 (25,601) Financial expenses 38,176 53,278 38,171 53,277 Financial income (6,970) (5,013) (6,949) (5,236) Other (income)/ expense, net 60,683 82,376 59,520 81,142 Loss / (Profit) of associates and joint ventures, net (634) (487) - - Foreign currency (gains) / losses, net 2,501 311 2,501 311 PROFIT BEFORE TAX 343,623 328,970 339,963 328,143 Income tax expense (86,161) (82,298) (85,484) (82,131) PROFIT AFTER TAX 257,462 246,672 254,479 246,012 Earnings per share, basic and diluted 1.11 1.06 1.10 1.06 Weighted average number of shares 232,000,000 232,000,000 232,000,000 232,000,000 The accompanying notes are an integral part of these interim consolidated and separate financial statements 3 PUBLIC POWER CORPORATION S.A. INTERIM CONDENSED CONSOLIDATED AND SEPARATE STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2010 (All amounts in thousands of Euro - except share and per share data) GROUP PARENT COMPANY 01.01.2010- 01.01.2009- 01.01.2010- 01.01.2009- 31.03.2010 31.03.2009 31.03.2010 31.03.2009 (restated) (restated) Profit for the period 257,462 246,672 254,479 246,012 Other Comprehensive income / (loss) for the period Loss from fair value available for sale valuation (5,472) (4,230) (5,472) (4,230) Valuation of derivatives 7,053 - 7,242 - Other Comprehensive income / (loss) for the period, after tax 1,581 (4,230) 1,770 (4,230) Total Comprehensive income / (loss) after tax 259,043 242,442 256,249 241,782 The accompanying notes are an integral part of these interim consolidated and separate financial statements. 4 PUBLIC POWER CORPORATION S.A. INTERIM CONDENSED BALANCE SHEETS AS OF MARCH 31, 2010 (All amounts in thousands of Euro- except share and per share data) GROUP PARENT COMPANY 31.03.2010 31.12.2009 31.03.2010 31.12.2009 ASSETS Non – Current Assets: Property, plant and equipment, net 13,211,536 13,142,337 13,122,236 13,054,387 Software, net 78,289 78,813 78,178 78,692 Available for sale financial assets 28,840 34,312 28,840 34,312 Other non- current assets 34,950 33,219 106,099 96,827 Total non-current assets 13,353,615 13,288,681 13,335,353 13,264,218 Current Assets: Materials, spare parts and supplies, net 841,384 807,706 840,628 806,909 Trade and other receivables, net and other current assets 1,251,318 1,207,735 1,263,438 1,226,014 Cash and cash equivalents 718,098 480,042 702,711 471,782 Total Current Assets 2,810,800 2,495,483 2,806,777 2,504,705 Total Assets 16,164,415 15,784,164 16,142,130 15,768,923 EQUITY AND LIABILITIES EQUITY: Share capital 1,067,200 1,067,200 1,067,200 1,067,200 Share premium 106,679 106,679 106,679 106,679 Reversal of fixed assets’ statutory revaluation surplus included in share capital (947,342) (947,342) (947,342) (947,342) Revaluation surplus 5,026,614 5,026,614 4,990,473 4,990,473 Reserves 300,559 298,789 300,559 298,789 Retained earnings 1,166,580 909,374 1,187,905 933,426 Total Equity 6,720,290 6,461,314 6,705,474 6,449,225 Non-Current Liabilities: Interest bearing loans and borrowings 3,169,615 2,857,751 3,169,615 2,857,751 Provisions 511,525 502,394 510,147 501,036 Other non-current liabilities 2,987,885 2,998,182 2,981,854 2,992,121 Total Non-Current Liabilities 6,669,025 6,358,327 6,661,616 6,350,908 Current Liabilities: Trade and other payables and other current liabilities 1,028,866 1,103,009 1,022,800 1,100,641 Dividends payable 91 91 91 91 Tax Income payable 227,570 148,503 233,609 155,141 Short term borrowings 75,000 213,500 75,000 213,500 Current portion of interest bearing loans and borrowings 1,443,573 1,449,420 1,443,540 1,499,417 Total Current Liabilities 2,775,100 2,964,523 2,775,040 2,968,790 Total Liabilities and Equity 16,164,415 15,784,164 16,142,130 15,768,923 The accompanying notes are an integral part of these interim condensed consolidated and separate financial statements. 5 PUBLIC POWER CORPORATION S.A. INTERIM CONDENSED CONSOLIDATED CHANGES IN EQUITY FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2010 (All amounts in thousands of Euro- except share and per share data) Other Reserves Marketable Retained Reversal of Securities Tax- Free Earnings Share Share Legal Revaluation Revaluation Valuation and other Reserves /Accumulated Total Capital Premium Reserve Surplus Gains Surplus Reserves Total Deficit Equity Balance, December 31, 2008 1,067,200 106,679 45,628 4,256,570 (947,342) 3,099 208,433 211,532 241,099 4,981,366 Valuation of marketable securities - - - - - (4,230) - (4,230) - (4,230) Total income for the period recognized directly in equity - - - - - (4,230) - (4,230) - (4,230) Net Income for the period - - - - - - - - 246,672 246,672 Total income and expense recognized for the period - - - - - (4,230) - (4,230) 246,672 242,442 Transfers - - - - - - (445) (445) - (445) Other - - - - - (1) - (1) - (1) Balance, as revised, March 31, 2009 1,067,200 106,679 45,628 4,256,570 (947,342) (1,132) 207,988 206,856 487,771 5,223,362 Balance, December 31, 2009 1,067,200 106,679 80,165 5,026,614 (947,342) 10,637 207,987 218,624 909,374 6,461,314 Valuation of marketable securities - - - - - (5,472) - (5,472) - (5,472) Valuation of derivatives - - - - - - 7,242 7,242 (189) 7,053 Total income for the period