Financial Report (January 1, 2010 - December 31, 2010)

• South Field, € 6.3 m. for earthmoving works for the installation of the 3 rd spreader line in Main Field, € 3.1 m. for firstbench earthmoving works in South Field, € 10 m. for new Klitos mine and € 12 m. new distribution point in South Field.• A new lignite conveyor belt line which connects Kardia Field Mine with Ag. Dimitrios Power Plant is constructed. Theoperation of this conveyor belt is expected to reduce the transportation cost and to enhance the quality of the consumedlignite.• An Environmental Impact Study for “The Extension of Mavropigi and Southwest Fields to the West” was submitted to theMinistry of Environment, Energy and Climate Change in order to accelerate the expropriation procedure of Mavropigiand Pontokomi villages. These expropriations are necessary for the above mentioned extensions which already havebeen approved by the Greek Government in June 2010. Revised Environmental Impact Study for the Ptolemais Mineswas submitted to the Ministry of Environment, Energy and Climate Change also in June 2010, which was originallysubmitted in August 2009, after consultation with the local authorities and the relative Approval is expected.• The excavation works for the foundation of the new power station in Ptolemais started in December 2010.Generation Business Unit (GBU)Total Capital expenditure for the Production Sector amounted to Euro 246.8 million.Exploitation• During 2010 total net generation of GBU’s Power Stations was 45.26 TWh, reduced by 9.3% compared with 2009.• GBU’s Energy Balance cost, regarding Natural Gas and liquid fuels consumption, was increased during year 2010, comparedwith 2009, by, approximately, 9.6% or € 99.1 m. (from € 1,030.6 m. in 2009 to € 1,129.7 m. in 2010). This increase is due toincreased prices for fuels which was partially offset by reducing fuel quantities consumption.• Lignite generation decrease is directly related to market operation and hydros’ increased generation and not with availabilitydecrease. It is noted that, the availability of the thermal Stations of the Interconnected System, was the highest for the last 4years due to:o Preservation of failures at a low level.o Achieving maintenance non – availability to be at the programmed levels (set targets) for the time period concerned.o Reduced oil Units Utilization (mainly).• During the summer period the South System reserve was reinforced by hiring Generating Sets (G/S), of 60 MW total netgenerating capacity, for Megalopolis B’ Station.• In order to cover the increased summer demand of 2010 hired capacity of 20 MW for Rhodes, 16 MW for Crete(Atherinolakkos) and 6 MW for other non – interconnected islands, was added.• It is noted that according to obsolete and polluting Units’ Decomissioning Schedule Unit I (70 MW) of Ptolemaida Station waswithdrawn in June 2010, which was commissioned in 1959.InvestmentsApplying PPC S.A.’s Strategic Priorities Plan GBU has undertaken the implementation of Investment Projects in order toreplace obsolete Units with new ones, environmentally friendly, with state of the art technology and higher performance. As itconcerns Projects’ progression during 2010 it is noticed that:Thermal Units• Combined Cycle Unit No V of Aliveri Station, 416.95 MW net power, of € 219 m. budgeted price:After issuing of the civil works license, in July 2009, construction Works begun in September 2009 according to arevised timetable foreseeing completion of the Project in September 2011. Civil works as well as delivering of theelectromechanical equipment and Studies elaboration have almost been completed. Main electromechanicalequipment’s installation continues.• Megalopoli Natural Gas Combined Cycle Unit No V, 811 ΜW net power at reference conditions, of € 499.5 m. budgetedprice:Relevant Contract, with “METKA S.A. – ETADE S.A.” consortium, was signed in November 13, 2009 and the CommonMinisterial Decision of Environmental Terms Approval of this Unit was issued in May 2010.In September 2010 the Space Configuration License for building this Unit in the field of Megalopolis B’ Station wasissued.• Steam Electric Unit V, of Ptolemaida Station, joint force capacity 550- 660 MW (+ 140 MWth for District Heating), ofpulverized lignite fuel and € 1,320 m. budget:The Volumes of the Inquiry for this Project were approved by PPC S.A.’s Board of Directors in April 14, 2010 andrelevant Tender was announced in April 20, 2010 with September 1, 2010 as tenders’ submission date. The Project isexpected to be completed within 70 months from the date the Contract will be signed.Up to now there have been issued five Supplements and, according to last one of them, tenders’ submission date isdefined to be March 30, 2011.In September 2010 the Ministry of Environment, Energy and Climate Change (MEECC) issued the relevant GenerationLicense as well as the Heat Distribution License while in October of the same year the Environmental ImpactAssessment of the Unit was submitted to the above said Ministry.• Steam Electric Unit II of Meliti Station, installed capacity 420 – 450 MW (+ 70 MWth for District Heating), of pulverizedlignite fuel.The Tender for this Project, announced in July, 2008, proved fruitless since there were no one interested to participate.10