ATTIKI ODOS SA ATTIKI ODOS SA KM OF ATTIKI ODOS PEANIA Tax ID No.: Ο.Υ.: ATHENS FABE. SA Reg.No /04/B/96/43(02)

Transcription

1 Annual Financial Statements prepared according to the 41.9 KM OF ATTIKI ODOS PEANIA Tax ID No.: Ο.Υ.: ATHENS FABE SA Reg.No /04/B/96/43(02)

2 Table of Contents INDEPENDENT CERTIFIED AUDITOR-ACCOUNTANT'S REPORT... 4 Balance Sheet... 6 Statement of comprehensive income... 7 Statement of changes in equity... 8 Cash flow statement... 9 Notes to the financial statements General information Summary of significant accounting policies Basis of preparation New standards, interpretations and amendment of existing standards Leases Tangible Assets Intangible assets Impairment of Assets Investments and other Financial Assets Trade Receivables Cash and cash equivalents Share Capital Borrowing Deferred income tax Employee benefits Provisions Recognition of revenues Service Concession Arrangements Distribution of Dividends Grants Roundings Financial risk management Financial risk factors Cash management Critical accounting estimates and judgments of the management Significant accounting estimates and assumptions Tangible Assets Intangible Assets Prepayments for Leases Receivables Cash and cash equivalents Share Capital Other reserves Borrowing Suppliers and other payables Deferred taxation (2) / (36)

3 15 Provisions for staff compensation Provisions Expenses per category Other operating income Net financial expenses Employee benefits Income tax Commitments Contingent liabilities Transactions with Connected Parties Other notes Post balance sheet events (3) / (36)

4 INDEPENDENT CERTIFIED AUDITOR-ACCOUNTANT'S REPORT To the Shareholders of the Company Report on the Financial Statements We have audited the accompanying financial statements of the Company, which comprise the balance sheet as of 31 December 2009, the comprehensive income statement, the statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management s Responsibility for the Financial Statements The management is responsible for the preparation and fair presentation of these financial statements, in accordance with the, as adopted by the European Union, and for those safeguards the management thinks necessary to enable the preparation of financial statements free of material misstatements due to fraud or error. Auditor s Responsibility Our responsibility lies in the expression of opinion on these financial statements, on the basis of our audit. We conducted our audit in accordance with the International Auditing Standards. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from any material misstatement. An audit involves performing procedures to obtain audit evidence with regard to the amounts and disclosures in the financial statements. The procedures selected are based on the auditor s judgment including the assessment of risks of material misstatements in the financial statements either due to fraud or to error. In making such risk assessments, the auditor considers the safeguards related to the preparation and fair presentation of the financial statements of the company, with the purpose of planning audit procedures appropriate to the circumstances, but not with the purpose of expressing an opinion on the effectiveness of the company s safeguards. Such audit also includes an evaluation of the appropriateness of accounting policies used and the fairness of accounting estimates made by the Management, as well as evaluation of the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion (4) / (36)

5 In our opinion, the attached financial statements fairly present, in all material aspects, the financial standing of the Company as of 31 December 2009, as well as of its financial performance and cash flow for the year then ended, according to the International Financial Reporting Standards, as adopted by the European Union. Report on Other Legal and Regulatory Issues We have verified the agreement and reconciliation of the Board of Directors Report with the attached financial statements, in the context of the provisions of articles 43α, 107 and 37 of Codified Law 2190/1920. Athens, 14 May 2010 The Certified Auditor Accountant Dimitrios Sourbis Reg.No. SOEL PriceWaterhouseCoopers Chartered Auditors Accountants S.A. Certified Auditors - Accountants , Kifisias Ave Halandri S.O.E.L. R.N. 113 (5) / (36)

6 Balance Sheet Note 31-Dec Dec-08 ASSETS Non-current assets Tangible Assets 5 1,070 1,417 Intangible assets 6 578, ,476 Prepayments for long-term leases 7 28,327 30,295 Other long-term receivables , ,583 Current assets Trade and other receivables 8 223, ,959 Prepayments for long-term leases (short-term portion) 7 1,967 1,967 Cash and cash equivalents 9 369, , , ,645 Total Assets 1,204,109 1,121,228 EQUITY Equity attributable to shareholders Share capital , ,694 Other reserves , ,537 Profit carried forward 111,601 54,648 Total Equity 399, ,879 LIABILITIES Long term liabilities Long-term Loans , ,625 Deferred tax liabilities 14 27,947 2,102 Provisions for staff compensation Other long-term liabilities 13 2,918 3,567 Other long-term provisions 16 91,628 74, , ,979 Short-term liabilities Trade and other payables 13 30,970 34,199 Short-term Loans 12 30,002 40,548 Other short-term provisions ,972 75,370 Total liabilities 804, ,349 Total equity and liabilities 1,204,109 1,121,228 The notes on pages 10 to 38 form an integral part of these financial statements. (6) / (36)

7 Statement of comprehensive income For the year ended 31 December Note Sales 248, ,569 Cost of goods sold 17 (135,505) (136,390) Gross profit 113, ,179 Selling expenses 17 (4,668) (3,760) Administrative expenses 17 (3,474) (3,201) Other operating income net 18 6,192 4,285 Operating results 111, ,503 Financial income 19 17,314 20,003 Financial expenses 19 (42,616) (45,441) Earnings before taxes 85,795 83,065 Income tax 21 (25,845) (7,331) Earnings after taxes Parent company equity holders 59,950 75,734 Additional comprehensive income - - Total comprehensive income after taxes attributable to Parent Company Equity Holders 59,950 75,734 The notes on pages 10 to 38 form an integral part of these financial statements. (7) / (36)

8 Statement of changes in equity Note Share capital Other reserves Results carried forward Total 1 January , ,550 (16,002) 266,242 Total comprehensive income after taxes ,734 75,734 Ordinary reserves 11-2,987 (2,987) - Goodwill write-off from absorption of subsidiary - - (2,097) (2,097) 31 December , ,537 54, ,879 1 January , ,537 54, ,879 Total comprehensive income after taxes ,950 59,950 Ordinary reserves 11-2,997 (2,997) - 31 December , , , ,829 The notes on pages 10 to 38 form an integral part of these financial statements. (8) / (36)

9 Cash flow statement Note Operating activities Earnings before taxes 85,795 83,065 Plus/ less adjustments for: Depreciation of fixed tangible assets 5 1,880 2,743 Depreciation of intangible assets 6 39,362 39,253 Provisions for heavy maintenance and other provisions 16 7,384 6,302 Financial income 19 (17,314) (20,003) Financial expenses 19 42,616 45,441 Plus/ less adjustments for changes in working capital accounts or related to operating activities: Increase of receivables (46,857) (129,767) (Decrease)/ Increase of liabilities (3,784) 5,674 Less: Debit interest and related expenses paid (33,660) (36,206) Taxes paid - (18) Total inflows/ (outflows) from operating activities (a) 75,422 (3,516) Investment activities Cash of subsidiary upon absorption - 2,301 Acquisition of tangible and intangible assets and investments (1,999) (4,171) Income from sales of tangible and intangible assets 1 47 Interest received 17,314 20,003 Total inflows from investments (b) 15,316 18,180 Financing activities Loan repayment (15,547) (6,585) Total outflows from financing (c) (15,547) (6,585) Net increase of cash and cash equivalents for the period (a) + (b) + (c) 75,191 8,079 Cash and cash equivalents at year start 294, ,640 Cash and cash equivalents at year end 369, ,719 The notes on pages 10 to 38 form an integral part of these financial statements. (9) / (36)

10 Notes to the financial statements 1 General information The company operates in concessions. Over the period (period T1) the company operated in the design, construction, self-financing of the Elefsina-Stavros-Spata Motorway, and Western Imitos Ringroad ( Motorway ), under the relevant Concession Agreement made and legally signed with the Greek State on 23 May 1996, and validated by Law 2445/96, as in force and effect and as interpreted, and since 2004 (period T2) it has operated in the organisation, management, administration, operation, development and exploitation of the Motorway, and includes all activities or actions and the development of all manner of business activities stipulated or arising from the Concession Agreement. The Company is incorporated and established in Greece with registered and central offices at 41.9km on Attiki Odos, , Peania, Attica. is consolidated with the full consolidation method by the ELLAKTOR Group of companies. These financial statements were approved by the Board of Directors on 12 May 2010 and are subject to the approval of the General Meeting of shareholders. 2 Summary of significant accounting policies 2.1 Basis of preparation The main accounting principles applied in the preparation of these financial statements are set out below. These principles have been consistently applied to all years presented, unless otherwise stated. These financial statements have been prepared according to the (IFRS), including the International Accounting Standards (IAS), and any amendments and interpretations issued by the International Financial Reporting Interpretations Committee, as adopted by the European Union, and the IFRS issued by the International Accounting Standards Board (IASB). These financial statements have been prepared under the historical cost convention. The preparation of the financial statements under IFRS requires the use of accounting estimations and assumptions by the Management in implementing the accounting policies adopted. The areas requiring large extent of assumptions or where assumptions and estimations have a significant effect on the financial statements are mentioned in Note New standards, interpretations and amendment of existing standards Certain new standards, amendments to standards and interpretations have been issued that are mandatory for accounting periods beginning during the current reporting period or later. The Company s evaluation of the effect of these new standards and interpretations is as follows: Standards mandatorily effective for the fiscal year ended 31 December 2009 IAS 1 (Revised) Presentation of Financial Statements IAS 1 has been revised to enhance the usefulness of information presented in the financial statements. The key changes are: the requirement that the statement of changes in equity include only transactions with shareholders, the introduction (10) / (36)

11 of a new statement of comprehensive income that combines all items of income and expense recognised in profit or loss together with other comprehensive income, and the requirement to present restatements of financial statements or retrospective application of a new accounting policy as at the beginning of the earliest comparative period. The Company has adopted the revised standard and used the statement of comprehensive income. IFRS 8 "Operating Segments This standard supersedes IAS 14, under which segments were identified and reported based on a risk and return analysis. Under IFRS 8 segments are components of an entity regularly reviewed by the entity s chief operating decision maker and are reported in the financial statements based on this internal component classification. This standard has not affected the financial statements of the Company. IFRS 7 (Amendment) Financial instruments: Disclosures ). This amendment requires additional disclosures about the measurement of fair value and liquidity risk. Specifically, the amendment requires disclosures regarding the fair value measurement through a hierarchy of three levels. This amendment pertains to additional disclosures and does not apply to the financial statements of the Company. IFRS 2 (Amendment) Share-based Payment Vesting Conditions and Cancellations The amendment clarifies the definition of vesting conditions by introducing the term non-vesting conditions for conditions other than service conditions and performance conditions. The amendment also clarifies that the same accounting treatment applies to awards that are effectively cancelled by either the entity or the counterparty. The amendment has no effect on the Company s financial statements. IAS 23 (Amendment) Borrowing Costs This standard replaces the previous version of IAS 23. The main difference with the previous edition is the removal of the option of immediately recognizing as an expense borrowing costs that relate to assets, which need a substantial period of time to get ready for use or sale. This standard did not affect the Company s financial statements. IAS 32 (Amendment) Financial instruments: Presentation and IAS 1 (Amendment) Presentation of financial statements Puttable Financial Instruments The amendment to IAS 32 requires certain puttable financial instruments and obligations arising on liquidation to be classified as equity if certain criteria are met. The amendment to IAS 1 requires disclosure of certain information relating to puttable instruments classified as equity. These amendments did not apply to the financial statements of the Company. IAS 39 (Amendment) Financial instruments: Recognition and measurement This amendment clarifies the way in which the principles that determine whether a hedged risk or portion of cash flows falls within the scope of hedge accounting should be applied in specific cases. This amendment is not applicable to the Company as it does not apply hedge accounting in terms of IAS 39. Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) mandatorily effective for the year ended 31 December 2009 IFRIC 13 Customer Loyalty Programs This interpretation clarifies the treatment of entities that grant loyalty award credits such as points and travel miles to customers who buy other goods or services. This interpretation is not relevant to the Company s operations. (11) / (36)

12 IFRIC 15 Agreements for the construction of real estate This interpretation addresses the diversity in accounting for real estate sales. Some financial entities recognise the revenue subject to IAS 18 (i.e. when risks and benefits of real estate ownership are transferred), and others recognize the revenue depending on the real estate completion stage, in line with IAS 11. The interpretation clarifies which standard applies to each case. The interpretation has no effect on the Company s financial statements. IFRIC 16 Hedges of a net investment in a foreign operation This interpretation applies to an entity that hedges the foreign currency risk arising from its net investments in foreign operations and qualifies for hedge accounting in accordance with IAS 39. The interpretation provides guidance on how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item. This interpretation is not relevant to the Company s operations. IFRIC 18 Transfers of assets from customers The interpretation clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of property, that the entity must then use either to provide the customer with ongoing access to a supply of goods or services. In some cases, the entity receives cash from a customer that must be used only to acquire or construct the item of property. This interpretation is not relevant to the Company s operations. (IFRS) mandatorily effective after the year ending 31 December 2009 IFRS 3 (Revised) Business Combinations and IAS 27 (Amended) Consolidated and Separate Financial Statements (applicable to the annual accounting periods starting on or after 1 July 2009) The revised IFRS 3 introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of costs related to acquisition and to recognition of subsequent changes in the fair value of a contingent consideration in the profit or loss. The amended IAS 27 requires that a change in ownership interest of a subsidiary to be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Company will apply these changes from their effective date. The Company will apply these changes as of the effective date, but no effect is anticipated on the financial statements, since the Company has no subsidiaries and does not publish consolidated financial statements. IFRS 9 Financial Instruments (effective for annual accounting periods beginning on or after 1 January 2013) IFRS 9 is the first step in the project undertaken by IASB (International Accounting Standard Board) to replace IAS 39. IASB intends to expand IFRS 9 during 2010 to add new requirements for classifying and measuring financial liabilities, revoking recognition of financial instruments, impairment, and hedge accounting. Under IFRS 9, all financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, specific transaction costs. Subsequent measurement of financial assets is done either at amortized cost or at fair value depending on the model used by the financial entity for the management of the financial assets and the contractual cash flows of the financial asset. IFRS 9 forbids reclassifications, except for rare cases where the financial entity s business model changes; in that particular event, the entity must reclassify the affected financial assets prospectively. Under the principles set forth in IFRS 9, all equity investments must be measured at fair value. However, the management may elect to present the realized and unrealized fair value gains and losses from equity investments that are not held for trading in other comprehensive income. Such presentation is done at initial recognition for each separate financial instrument and is irrevocable. Fair value gains and losses are not subsequently transferred to profit and loss, whereas dividend income is still recognized in profit and loss. IFRS 9 dispenses with the exception of measurement at cost for unquoted equity investments and derivatives linked to unquoted equity investments, and guidance is provided to determine when the cost can be representative of fair value. The Company is currently assessing the effect of IFRS 9 on its financial statements. IFRS 9 may not be adopted early by the (12) / (36)

13 Company as it has not been adopted by the European Union. Following adoption, the Company will decide whether it will apply IFRS 9 earlier than 1 January IFRS 1 (Amendment) First-time Adoption of IFRS (effective for annual periods beginning on or after 1 January 2010) The amendment provides additional clarifications for first-time adopters of the IFRS relating to the use of deemed cost to oil and gas assets, the determination of whether an arrangement contains a lease, and the decommissioning liabilities included in the cost of tangible assets (property, plant and equipment). The amendment will not have an effect on the financial statements, as the Company has already adopted the IFRS. IFRS 2 (Amended) Share Based Payment (effective for annual accounting periods beginning on or after 1 January 2010) The purpose of the amendment is to clarify the scope of IFRS 2 and the accounting methods governing for fees dependent on share values settled in cash appearing in the individual financial statements of the financial entity receiving goods or services, where the financial entity has no obligation to settle the share-based payments. The amendment is not expected to have an effect on the Company s financial statements. The amendment has not yet been adopted by the European Union. IAS 24 (Amended) Related Party Disclosures (effective for annual accounting periods beginning on or after 1 January 2011) This amendment reduces the disclosure requirements for transactions between government-related entities and clarifies the definition of related party. In particular, it abolishes the obligation of public sector related parties to disclose details of all transactions with the public sector and other public sector related parties, it clarifies and simplifies the definition of related-party and requires disclosure not only of the relationships, transactions and balances between related parties but also commitments in both individual and consolidated financial statements. The Company will apply these changes from their effective date. The amendment has not yet been adopted by the European Union. IAS 32 (Amendment) Financial instruments: Presentation (effective for annual accounting periods beginning on or after 1 February 2010) The amendment provides clarifications relating to rights issue. More specifically, rights, options and warrants to acquire a fixed number of the financial entity s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all its existing shareholders of the same class of its own non-derivative equity instruments. The amendment is not expected to have an effect on the Company s financial statements. Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) mandatorily effective after the year ending 31 December 2009 IFRIC 12 Service concession arrangements (subject to adoption by the EU, effective for periods starting on 30 March 2009) This interpretation applies to companies that participate in service concession arrangements. The group has proceeded to early implementation of this interpretation from 1 January IFRIC 17 Distributions of non-cash assets to owners (effective for annual accounting periods beginning on or after 1 July 2009) (13) / (36)

14 This interpretation provides guidance on accounting treatment for the following types of non-reciprocal distributions of assets by a financial entity to its shareholders acting in their capacity as shareholders: a) distributions of non-cash assets, and b) distributions when the owners are given a choice of taking cash in lieu of the non-cash assets. The Company will apply this interpretation from its effective date. IFRIC 19 Extinguishing Financial Liabilities (effective for annual accounting periods beginning on or after 1 July 2010) Interpretation 19 refers to the accounting treatment to be used by a financial entity issuing equity instruments to a creditor in order to fully or partially settle a financial obligation. This interpretation does not apply to the Company. The amendment has not yet been adopted by the European Union. IFRIC 14 (Amended) The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective for annual accounting periods beginning on or after 1 January 20011) The amendments apply to specific cases: where a financial entity is subject to minimum funding requirements (MRF) and makes an early payment of contributions to cover those requirements. The amendments enable such an entity to treat the benefit of this early payment as an asset. This interpretation is not relevant to the Company s operations. The amendment has not yet been adopted by the European Union. Amendments to standards that form part of the IASB s annual improvements project The following amendments describe the most important changes brought to the IFRS as a result of the IASB annual improvement project published in July These amendments have not been adopted yet by the European Union. Unless otherwise stipulated, the following amendments will apply to annual accounting periods starting on or after 1 January In addition, unless otherwise stipulated, these amendments are not expected to have a significant impact on the Company s financial statements. IFRS 2 Share Based Payment (effective for annual accounting periods beginning on or after 1 July 2009) The amendment confirms that the contributions made by a business entity for the establishment of a joint venture and the transactions of joint control are not subject to the scope of IFRS 2. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations The amendment clarifies the disclosures required for non-current assets held for sale or discontinued operations. IFRS 8 "Operating Segments The amendment clarifies the disclosure of information relating to a segment's assets. IAS 1 Presentation of Financial Statements The amendment clarifies that a possible settlement of a liability through the issue of equity instruments is irrelevant to its classification as current or non-current asset. IAS 7 Cash Flow Statements The amendment requires that only expenditures resulting in a recognized asset in the statement of financial position can be classified as investment activities. IAS 17 Leases The amendment provides clarifications on the classification of a lease of land and buildings as financial or operating leases. IAS 18 Revenue (14) / (36)

15 The amendment provides additional guidance for determining whether the financial entity is acting as a principal or as an agent. IAS 36 Impairment of Assets The amendment clarifies that the largest cash-generating unit to which goodwill must be allocated for impairment auditing purposes is an operating segment in accordance with paragraph 5 of IFRS 8 (i.e. before aggregation of segments). IAS 38 Intangible Assets The amendments (a) clarify the requirements, in accordance with IFRS 3 (amended), relating to accounting for intangible assets acquired in a business combination, and (b) describe the measurement methods that are widely used by financial entities to measure the fair value of intangible assets that are acquired in a business combination and are not traded in active markets. IAS 39 Financial instruments: Recognition and measurement The amendments pertain to (a) clarifications on how to deal with penalties/fines resulting from the repayment of loans as derivatives linked to the main contract, (b) the scope of exemption for business combination contracts, and (c) clarifications that the gains or losses from hedge accounting made for the cash flow from a forecasted transaction must be reclassified from equity to profit or loss in the period that the hedged forecast cash flow affects profit or loss. IFRIC 9 Reassessment of Embedded Derivatives (effective for annual accounting periods beginning on or after 1 July 2009) The amendment clarifies that IFRIC 9 will not apply to a possible reassessment, at the date of acquisition, of embedded derivatives in contracts acquired in combinations of entities or businesses under common control. IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective for annual accounting periods beginning on or after 1 July 2009) The amendment states that, in hedging of a net investment in a foreign operation, appropriate hedging instrument(s) may be held by any financial entity or entities within the group, including the foreign operation itself, if certain conditions are met. 2.3 Leases (a) The Company as lessee Leases through which the lessor effectively undertakes all the risks and rewards of ownership are classified as operating leases. Operating lease expense is recognized in the income statement proportionally during the lease period and includes any restoration cost of the property if such clause is included in the leasing contract. Leases of fixed assets which involve essentially all ownership risks and returns for the Company are classified as finance leases. Finance leases are capitalized at the leases inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is apportioned between the reduction of the liability and the finance charge so that a fixed interest rate on the remaining financial liability is achieved. The respective lease liabilities, net of finance charges, are included in liabilities. The part of the finance charge relating to finance leases is recognized in the income statement over the lease. Fixed assets acquired through finance leases are depreciated over the shorter of their useful life and the lease term. There are no financial leases in place for the company. Obligations from operating leases are analysed in note 22. (b) The Company as lessor The company leases assets only through operating leases. Operating lease income is recognized in the income statement of each period proportionally during the period of the lease. (15) / (36)

16 2.4 Tangible Assets Fixed assets are reported in the financial statements at acquisition cost minus accumulated depreciation and possible impairment. The acquisition cost includes all the directly attributable expenses for the acquisition of the assets. Subsequent costs are posted to increase the tangible assets carrying amount or recognised as a separate asset, only when it is probable that future economic benefits will flow to the Company and their cost can be measured reliably. The repair and maintenance cost is recorded in the results when such is realized. Depreciation of tangible assets is calculated using the straight line method over their useful life as follows: - Buildings - Mechanical equipment - Vehicles - Software Furniture, fittings and equipment 5-7 ye ars ye ars ye ars ye ars ye ars The residual values and useful economic life of tangible fixed assets are subject to reassessment at least at each balance sheet date. When the book values of tangible assets exceed their recoverable value, the difference (impairment) is posted in the income statement as expense. Upon the sale of tangible fixed assets, any difference between the proceeds and the depreciable amount is recorded as profit or loss in the results. 2.5 Intangible assets (a) Goodwill Goodwill represents the difference between acquisition cost and the fair value of the subsidiary/ associate s equity share as at the date of acquisition. Goodwill arising from acquisitions of subsidiaries is recognised in intangible assets. Goodwill arising from acquisitions of associates is recognised in interests in associates. Goodwill is tested for impairment annually and is recognised at cost, less any impairment losses. Earnings and losses from the sale of an undertaking include the book value of the goodwill of the undertaking sold. For purposes of monitoring goodwill for impairment, goodwill is allocated to cash flow generation units, which represent the primary type of information by segment. Negative goodwill is written off in profit and loss. (b) Software Software licenses are valued at acquisition cost less depreciation. Depreciation is accounted for with the straight line method during the useful lives which vary from 1 to 3 years. (16) / (36)

17 (c) Concession right Concession rights are valued at the acquisition cost, less depreciation. Depreciation is effected with the straight-line method over the term of the Concession Agreement with the Greek State, which expires on 31 August Impairment of Assets Assets that are depreciated are subject to an impairment review when there is evidence that their value will not be recoverable. The recoverable value is the greater value of the net sales and the value in use. For the calculation of impairment losses, assets are classified in the minimum cash generating units. Impairment losses are recorded as expenses in the income statement when they arise. 2.7 Investments and other Financial Assets The Company s financial assets have been classified under the following categories according to the objective for which each investment was undertaken. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date. Receivables They include non-derivative financial assets with fixed or predefined payments which are not traded in active markets and there is no intention of selling them. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are included in the trade and other receivables account in the balance sheet. The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. If impairment is demonstrated, the difference between acquisition cost and fair value will be transferred to results. 2.8 Trade Receivables Trade receivables are posted at their face value, less provisions for doubtful accounts. Provisions for doubtful accounts are formed when there is evidence that the Company is not able to collect all due amounts under contractual terms. The amount of provisions is the difference between the book value and the value of anticipated future cash flows. The amount of provisions appears as expense through profit and loss. 2.9 Cash and cash equivalents Cash and cash equivalents include cash in the bank and in hand, sight deposits, short term (up to 3 months) highly liquid and low risk investments Share Capital The share capital includes the common shares of the Company Borrowing Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest rate method. Loans are classified as short-term obligations unless the Company has the right to defer settlement of the obligation for at least 12 months after the balance sheet date. (17) / (36)

18 2.12 Deferred income tax Deferred income tax is determined using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither the accounting or the taxable profit or loss. Deferred tax is valued taking into consideration the tax rates that have been put into effect or are essentially in effect at the balance sheet date. Deferred tax receivables are recognised to the extent that there will be future taxable gains to use the temporary difference that gives rise to the deferred tax receivables. Deferred tax is calculated using the new tax rates arising from article 19(1) of Law 3607/ Employee benefits Post-employment benefits Post-employment benefits include defined benefit schemes. The liability reported in the balance sheet with respect to defined benefit schemes is the present value of the commitment (no plan assets in place) less the changes that arise from any actuarial profit or loss and the service cost. The commitment of the defined benefit is calculated annually by an independent actuary with the use of the projected unit credit method. The interest rate on long-term Greek treasury bonds is used for discounting purposes. Actuarial gains and losses arising from adjustments based on historical data which are less or more than 10% of the accumulated liability are posted to the income statement over the average remaining service lives of the employees participating in the plan. The cost for the service time is directly recognized in the results except for the case where the scheme s changes depend on the employees remaining service with the company. In such a case the service cost is booked in the results using the straight line method within the maturity period Provisions Provisions for outstanding legal cases are recognized when: there is an obligation (legal or constructive) as a result of past events, their settlement through an outflow of resources is probable and the exact amount of the obligation can be reliably estimated. The concession agreement of Attiki Odos with the Greek State includes the concessionaire s contractual obligation to maintain the infrastructure at a certain service level or restore the infrastructure to a certain state before delivering it to the conceder at the end of the concession period. Therefore, the Company, as concessionaire, acknowledges and values this obligation under IAS Recognition of revenues Income for the period is mainly generated from the operation of the motorway, operating leases and credit interest from banks. Income from operating leases is recognized in the income statement using the straight line method during the lease period. Sales of services are recognized in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. In the case where the Company acts as a representative, the commission, and not the gross revenues, is accounted for and posted to other operating income. The company acts as a representative in the following two case: (18) / (36)

19 1) Attiki Odos SA and the Company Attikes Diadromes SA started on 1 April 2008 a new cooperation with the concession company MOREAS SA in relation to the Corinth-Tripoli-Kalamata Motorway and the Lefktro-Sparta section, comprising the following: - Attiki Odos subscribers may use the electronic lanes at the Toll Stations on the Corinth-Tripoli-Kalamata motorway and the Lefktro-Sparta branch (hereinafter the CTK Motorway ), using their e-pass and charging the subscriber account kept with Attiki Odos SA; - For the better service of subscribers using the CTK motorway, two new Subscriber Service Points (SSP) were commissioned and launched on 2 April, on the CTK motorway, and more specifically i) alongside the Nestani- Arkadia Toll Station (to Corinth), at the km of the Athens-Corinth-Tripoli National Road, and ii) alongside the Spathovouni-Korinthia Toll Station (to Tripoli), at the km of the Athens-Corinth-Tripoli National Road. 2) Also, in December 2008 they proceeded to a new cooperation with another concession company, i.e. OLYMPIA ODOS SA, comprising the following: - Attiki Odos subscribers may use the electronic lanes at the Toll Stations on the Elefsina-Corinth-Patras- Pyrgos-Tsakona motorway, using their e-pass and charging the subscriber account kept with Attiki Odos SA. Dividends are accounted for as income when the right to receive payment is established Service Concession Arrangements The Company implements IFRIC 12, provided that the following two conditions are met: a) the grantor controls or determines which services the operator should provide to whom and at which price, and b) the grantor controls any other significant interests in the infrastructure upon completion of the concession arrangement period. In accordance with IFRIC 12, such infrastructures are not recognised as tangible assets of the operator, but as a Financing Contribution of the State under financial assets (financial asset model), and/ or as a Concession Right under intangible assets (intangible asset model), depending on the contractually agreed terms. i) Financing Contribution of the State (Financial Asset model) As concessionaire and being currently in the Operation Period, the Company amortises the Financial Contribution of the State collected during the Construction Period, using the straight line method during the Concession Agreement, and records the unamortised cost deducted from the unamortised cost of the project in the Balance Sheet as an Intangible Asset. ii) Concession Right (Intangible Asset Model) As an operator, the Company recognises an intangible asset to the extent that it receives a right (licence) to charge users of the public service. The right to charge users of a public service does not constitute an unreserved right to collect cash, since the amounts collected depend on whether the public uses such service. Intangible assets resulting from the application of IFRIC 12 are recorded under Intangible Assets in the Balance Sheet, analysed as a Concession Right and valued at acquisition cost less depreciation. Depreciation is carried out using the straight line method during the Concession Contract. The company has applied IFRIC 12 retrospectively starting from 1 January Distribution of Dividends The distribution of dividends to the Company s shareholders is recognized as a liability at the date on which the distribution is approved by the General Meeting of the shareholders. (19) / (36)

20 2.18 Grants Government grants are recognized at fair value when there is a reasonable assurance that the grant will be received and the Company will comply with all stipulated conditions. Government grants relating to costs are deferred and recognized in the income statement to match them with the costs that they are intended to compensate. As concessionaire and being currently in the Operation Period, the Company amortises the Financial Contribution of the State collected during the Construction Period, using the straight line method during the Concession Agreement, and records the unamortised cost deducted from the unamortised cost of the project in the Balance Sheet as an Intangible Asset in the retrospective application of IFRIC Roundings The numbers contained in these financial statements have been rounded to thousand Euros. Possible differences that may occur are due to rounding. 3 Financial risk management 3.1 Financial risk factors The Company is exposed to various financial risks, such as market risks, credit risk, liquidity risk, currency risk and interest rate risk. Risk management is monitored by the finance division and in particular the Central Financial Management Division of the Group to which the company belongs, and is determined by rules approved by the Board of Directors. The Treasury department determines and estimates the financial risks in collaboration with the services managing those risks. The Board of Directors provides directions on the general management of the risk as well as specialised directions on the management of specific risks such as interest rate risk, credit risk, and short-term investment of cash. (a) Market Risk Market risk is related to the business sectors where the Company operates. Indicatively, the company is exposed to risk from the change in the market value of parts and materials destined for motorway repair and maintenance. The Company s departments are closely monitoring the trends in the individual markets in which it operates and plan actions for prompt and efficient adaptation to the individual markets new circumstances. (b) Credit Risk The company has no significant credit risk concentrations from transactions with customers. It has developed policies in order to ensure that transactions are conducted with customers of sufficient credit rating. The company has procedures in place so as to limit exposure to credit risk from individual credit institutions. Cash and cash equivalents, and time deposits potentially involve credit risk as well. In such cases, the risk may arise from counterparty failure to fulfil their obligations towards the Company. With respect to deposit products, the Company only performs transactions with accredited financial institutions with high credit ratings. (c) Liquidity Risk The company demonstrates high liquidity as a result of motorway toll collection. To manage liquidity risk, the Company makes estimates of and monitors its cash flows and takes appropriate actions to ensure availability of liquid assets. The following table presents an analysis of the Company's financial liabilities maturing on 31 December 2009 and 2008 respectively: (20) / (36)

21 31 December 2009 TERMINATION OF DEBT MATURITY Within 1 year 1 to 2 years 2 to 5 years Over 5 years Trade and other payables 30, ,970 Borrowings 57,566 71, , , ,421 Total 31 December 2008 TERMINATION OF DEBT MATURITY Within 1 year 1 to 2 years 2 to 5 years Over 5 years Trade and other payables 34, ,199 Borrowings 70,459 56, , , ,675 Total (d) Foreign exchange risk The Company is not exposed to currency risk since transactions in foreign currencies are only few and are mainly related to the provision of technical consultancy services on the construction project. (e) Interest rate risk With regard to long-term loans, the Company s Management monitors rate fluctuations systematically and on an ongoing basis and evaluates the need to assume hedging positions, if such risks are considered to be significant. In 2009 the Company proceeded to the issue of a twenty seven million euro bond loan. The bondholder creditors are ALPHA BANK SA, with registered office in Greece ( 26,500,000.00) and ALPHA BANK LONDON LTD ( 500,000.00) with registered office in the United Kingdom. ALPHA BANK SA was designated the Representative or Paying Agent. The Bond Loan proceeds will be used by the company exclusively to repay the existing debt undertaken by the company after the absorption in 2008 of the subsidiary MOTORIST SERVICE STATIONS ATTIKOI STATHMOI SA trading as SEA ATTIKOI STATHMOI SA, pursuant to the provisions of articles 68(2) and 78 of Codified Law 2190/1920. This absorption resulted in new short-term loan obligations of 27,000, The loan was granted for a ten-year period and expires on The Bond Loan is divided into 270 Bonds with the face value and an offer price of 100, each. The contractual rate is equal to the floating rate, i.e. the sum of (i) Euribor, and (ii) the Spread. The bond loan interest is due and payable on the last day of each calendar quarter. In 2009 the company proceeded to capital repayment of 2,000, to bondholder creditors. As a result, the company s current loan obligations stand at 25,000,000 euro, of which 1,600,000 euro will be repaid in 2010 and has been posted as a short-term obligation. The company also made a loan repayment to the European Investment Bank of 13,547,509 euro. As a result, the current loan obligations stand at 625,624,753 euro to the European Investment Bank, of which 28,401,938 euro will be repaid in 2010 and has been posted as a short-term obligation. A large part of the company s borrowing has been taken out at fixed rate for the amount of 564,880,193, and the remaining amount of 85,744,560 is subject to floating rate, exclusively denominated in euro. Therefore, the interest rate risk is mainly connected to fluctuations of euro rates. The company constantly monitors interest rate trends, as well as the duration and nature of its financing needs. Decisions on loan terms as well as the relation between variable and fixed interest rate are considered separately on a case by case basis. Analysis of the Company s Loan Sensitivity to Interest Rate Fluctuations A reasonable and possible interest rate change by twenty five base points (+0.25%) would lead to the decrease / increase in earnings before taxes for the year 2009, all other variables being equal, by 182 thousand. It is noted that (21) / (36)

22 the aforementioned change in earnings before taxes is calculated on the loan balances at the end of the year and does not include the positive effect of interest income from cash deposits and cash equivalents. 3.2 Cash management Capital management aims to ensure the Company s going concern, and achieve its development plans, combined with its creditworthiness. To evaluate the Company s creditworthiness, the Company's Net Debt should be evaluated, i.e. total long and shortterm loans with banks less cash and cash equivalents, and respective cash and cash equivalents connected to the financing of self/ co-financed projects. The Company s Net Debt as of and , respectively is detailed in the table below: 31-Dec Dec-08 Short term bank loans 30,002 40,548 Long term bank loans 620, ,625 Total loans 650, ,173 Less: Cash and cash equivalents 369, ,719 Net Borrowing 280, ,454 Total Equity 399, ,879 Total 680, ,333 Financial leverage ratio 41% 52% 4 Critical accounting estimates and judgments of the management Estimates and judgments are continually evaluated and are based on historical experience and expectations of future events that are believed to be reasonable under the circumstances. 4.1 Significant accounting estimates and assumptions The annual financial statements and the accompanying notes and reports might contain certain assumptions and calculations pertaining to future events in relation to the Company s operations, growth and financial performance. Although such assumptions and calculations are based on the best knowledge of the Company s Management with regard to current conditions and actions, the actual results may be different from such calculations and assumptions taken into account in the preparation of the Company s annual financial statements. Assessments and assumptions that involve important risk of causing future material adjustments to the assets and liabilities book values: (a) Provisions (i) (ii) (iii) Potential provision for landscape restoration The construction project of Attiki Odos was designed, constructed and operates in line with the environmental terms of articles 10 & 11 of Law 2338/1995. The Contractor s obligations for noise protection for the surrounding area during project operation refer to and are in line with the special terms described in the Agreement. Unless the application of the above measures/ technologies results in the desirable result to noise limitation, then any additional expenses will be borne by the Master of the Project. Income tax (22) / (36)

23 Estimates are required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (iv) Depreciation Depreciation by item effected on the motorway concession right are calculated on a straight-line basis, subject to the estimated term of the concession agreement with the Greek State. 5 Tangible Assets Cost Land & buildings Vehicles Mechanical Equipment Furniture & accessories Total 1-Jan ,894 9,147 Subsidiary acquisition / absorption Additions ,845 3,015 Sales/Write-offs - (171) (1) (172) 31-Dec ,754 12,050 1-Jan ,754 12,050 Additions ,431 1,533 Sales/Write-offs - (32) (9) (41) 31-Dec ,176 13,542 Accumulated depreciation Land & buildings Vehicles Mechanical Equipment Furniture & accessories Total 1-Jan-08 (384) (364) - (7,209) (7,957) Subsidiary acquisition / absorption - - (43) (14) (57) Depreciation for the year (52) (77) (1) (2,614) (2,744) Sales/Write-offs Dec-08 (436) (317) (44) (9,836) (10,633) 1-Jan-09 (436) (317) (44) (9,836) (10,633) Depreciation for the year (52) (84) (-) (1,744) (1,880) Sales/Write-offs Dec-09 (488) (369) (44) (11,571) (12,472) Net book value on 31 December ,417 Undepreciated value as at 31 December ,070 (23) / (36)

24 6 Intangible Assets Cost Software Concession right Total 1-Jan , ,398 Additions 35 1,122 1, Dec , ,555 1-Jan , ,555 Additions Dec , ,022 Accumulated depreciation 1-Jan-08 (296) (174,528) (174,824) Depreciation for the year (35) (39,220) (39,255) 31-Dec-08 (331) (213,748) (214,079) 1-Jan-09 (331) (213,748) (214,079) Depreciation for the year (76) (39,286) (39,362) 31-Dec-09 (407) (253,034) (253,441) Net book value as of 31 December , ,476 Net book value as of 31 December , ,581 IFRIC 12 was implemented in 2009 in the same manner it had been implemented in 2008, depicting the concession right of Attiki Odos SA, pursuant to Law 2445/96 governing the Company. 7 Prepayments for Leases Prepayments for long-term leases Cost 1-Jan-08 Additions from acquisition of subsidiary (long-term) 38,662 Additions from acquisition of subsidiary (short-term) 1, Dec-08 40,629 1-Jan-09 40,629 Additions - 31-Dec-09 40,629 (24) / (36)

25 Accumulated depreciation of prepayments 1-Jan-08 Depreciation from absorption of subsidiary (6,892) Depreciation for the year (1,475) 31-Dec-08 (8,367) 1-Jan-09 (8,367) Depreciation for the year (1,968) 31-Dec-09 (10,335) Undepreciated value of long-term prepayments ,295 Undepreciated value of short-term prepayments ,967 Undepreciated value of long-term prepayments ,327 Undepreciated value of short-term prepayments ,967 As a result of the absoprtion of SEA ATTIKOI STATHMOI SA effected on , the Company shows the undepreciated investment cost for the construction of motorist service stations under leases (long-term and short-term portion), which is depreciated on a straight-line basis during the term of concession. 8 Receivables There are no credit risk concentrations in relation to trade receivables, since the company collects post-payment money guarantees or guarantee letters from customers. 31-Dec Dec-08 Customers 3,562 3,947 Customers Related parties (165) (149) Less: Impairment provisions (150) (150) Net Trade Receivables 3,247 3,648 Long-term time deposits 207, ,200 Other receivables 13,292 14,357 Other receivables -Related parties Total 224, ,354 Non-current assets Current assets 223, , , ,354 The balance of the company s customers includes the amount of thousand euro, representing receivables from the State, and 3,441.5 thousand euro pertaining to other Attiki Odos customers. The Other receivables account of 13,292 thousand euro includes 3,754 thousand euro representing receivables from the Greek State, 1.5 thousand euro from Cheques receivable, 2,746 thousand euro from Accrued income, 869 thousand euro from Social security institutions, 1,848 thousand euro from Deferred expenses, 2,222 thousand from Toll receivables, and 1,852 thousand from Sundry debtors. Accordingly, for 2008 the balance of the company s customers includes the amount of thousand euro, representing receivables from the State, and 3,765.2 thousand euro pertaining to other Attiki Odos customers. The Other receivables account of 14,357 thousand euro includes 3,166 thousand euro representing receivables from the Greek State, 16 thousand euro from Cheques receivable, 4,429 thousand euro from Accrued income, 578 thousand euro from Social security institutions, 1,996 thousand euro from Deferred expenses, 17 thousand from (25) / (36)

26 Advances to suppliers/ creditors, 2,447 thousand euro from Toll receivables, and 1,708 thousand euro from Sundry debtors. The maturity analysis of remaining customers as of 31 December 2009 and 31 December 2008 is as follows: 31-Dec Dec-08 Not overdue and not impaired 2,650 3,021 Overdue: 3-6 months months to 1 year Over 1 year ,397 3,798 Less: Impairment provisions Net Trade Receivables 3,247 3,648 The book value of long term receivables is approximate to their fair value. 9 Cash and cash equivalents 31-Dec Dec-08 Cash on hand Demand Deposits 5,637 2,467 Time deposits 364, ,239 Total 369, ,719 The following table shows the rates of deposits per credit rating class by Standard & Poor (S&P) as of Credit Institution Rating (S&P) Rate of sight and time deposits on BBB 67.8% BBB+ 23.4% Unrated -Various 8.8% TOTAL % Effective rates are determined in line with Euribor, are traded as appropriate, and have a maturity of one to six months. Time deposits include deposits with a maturity of up to 3 months. 10 Share Capital All amounts in EUR, save the number of shares Number Shares Share capital Total 1 January ,366, ,693, ,693, December ,366, ,693, ,693,760 (26) / (36)

27 1 January ,366, ,693, ,693, December ,366, ,693, ,693,760 The face value of each share is The Company s Share Capital is as follows: SHAREHOLDERS Share Capital (number of shares) Percentage % Share Capital value (In Euro) 1 AKTOR CONCESSIONS 1,402, % 102,912,965,60 2 J & P AVAX SA 497, % 36,483,103,00 3 ATTI-KAT SA 233, % 17,162,167,80 4 ETETH SA 232, % 17,062,123,60 5 TRANSROUTE INTERNATIONAL 1, % 73,400,00 Total 2,366, % 173,693,760,00 11 Other reserves Ordinary reserves Untaxed reserves Total 1 January , ,550 Transfer from retained earnings 2, December , , ,537 1 January , , ,537 Transfer from retained earnings 2,997-2, December , , ,534 According to Greek Law, tax-free reserves are exempt of income tax on condition that they shall not be distributed to shareholders. The Company does not intend to distribute said reserves in the following year, and therefore has not calculated the amount of income tax that would result in such case. Should the Group decide to distribute tax-free reserves, they shall be taxed at the tax rate applicable at the time of distribution. 12 Borrowing 31-Dec Dec-08 Long-term borrowing Loans with banks Bond loan 597,223 23, ,625 - Total long-term borrowing 620, ,625 Short-term borrowing (27) / (36)

28 Loans with banks 28,402 40,548 Bond loan 1,600 - Total short-term borrowing 30,002 40,548 Total borrowing 650, ,173 Short-term loan obligations of the company were reduced compared to 2008, due to the bond loan agreement signed on 25 February 2009 with Alpha Bank SA for the amount of 27,000 thousand euro, converting the aforementioned short-term loan into a long-term loan. In 2009 the company proceeded to capital repayment to its bondholder creditors, of 2,000 thousand euro. As a result, the current loan obligations stand at 25,000 euro, of which 1,600 euro will be repaid in 2010 and has been posted as a short-term obligation. The company also made a loan repayment to the European Investment Bank of 13,548 thousand euro, while in 2008 it had made a similar loan repayment to the European Investment Bank of 6,586 thousand euro. As a result, the current loan obligations stand at 625,625 thousand euro to the European Investment Bank, of which 28,402 thousand euro will be repaid in 2010 and has been posted as a short-term obligation. A large part of the company s borrowing has been taken out at fixed or periodically revised rates, for the amount of 564,880 thousand, and the remaining amount of 85,745 thousand is subject to floating rate, exclusively denominated in euro. Therefore, the interest rate risk is mainly connected to fluctuations of euro rates. The company constantly monitors interest rate trends, as well as the duration and nature of its financing needs. Decisions on loan terms as well as the relation between variable and fixed interest rate are considered separately on a case by case basis. Exposure to rate fluctuations and contract re-pricing dates are as follows: under 6 months >12 months Total 31 December 2008 Total borrowing 87, , ,173 87, , ,173 under 6 months >12 months Total 31 December 2009 Total borrowing 85, , ,625 85, , ,625 The maturity dates of long-term loans are as follows: 31-Dec Dec-08 1 to 2 years 45,693 28,402 2 to 5 years 173, ,387 Over 5 years 401, , , ,625 Out of total long-term borrowing of 620,623 thousand, the amount of 180,192 thousand corresponds to fixed rate loans, 356,751 thousand to periodically revised rate loans, and 83,680 thousand to quarterly revised floating rate loans. Accordingly for 2008 out of total long-term borrowing, the amount of million euro corresponds to fixed rate loans, million to periodically revised rate loans, and million to quarterly revised floating rate loans. (28) / (36)

29 13 Suppliers and other payables The Company s liabilities from trade activities are free of interest. 31-Dec Dec-08 Suppliers 1,721 2,739 Accrued expenses 1,703 1,994 Social security institutions and other taxes/ duties 1, Accrued interest 1,131 1,226 Prepayments for operating leases 3,022 3,674 Other liabilities 10,118 8,487 Total liabilities Related parties 14,546 18,828 Total 33,888 37,766 Long-term 2,918 3,567 Short-term 30,970 34,199 Total 33,888 37,766 The Other liabilities account of 10,118 thousand euro includes 7,419 thousand from Advances to customers, 1,064 thousand from Sundry creditors, 242 thousand from Obligations to subcontractors, 123 thousand from Fees for services payable", and 1,270 thousand from Money guarantees held. Accordingly, for 2008 The Other liabilities account of 8,487 thousand euro includes 6,283 thousand from Advances to customers, 907 thousand from Sundry creditors, 7 thousand from Obligations to subcontractors, 114 thousand from Fees for services payable", and 1,176 thousand from Money guarantees held. The long-term portion of suppliers and other liabilities of 2,918 thousand for 2009 (2008: 3,567) represents prepayments for rental fees resulting from the absorption of the motorist service stations. 14 Deferred taxation Deferred tax receivables and liabilities are compensated when there is an applicable legal right to compensate the current tax receivables against the current tax liabilities and when the deferred income taxes involve income taxes imposed by the same tax authority. Offset amounts are as follows: Total change in deferred income tax is presented below: 31-Dec Dec-08 Opening balance 2,102 (5,211) Income statement debit 25,845 7,313 Deferred liabilities closing balance 27,947 2,102 Deferred tax for the year 2009 has been calculated according to new tax rates imposed from L.3697/ article 19, par. Changes in deferred tax receivables and liabilities during the year, without taking into account offsetting of balances with the same tax authority, are the following: Deferred tax liabilities (29) / (36)

30 Different tax depreciation Other Total 1 January , ,395 Income statement debit (7,532) - (7,532) 31 December , ,863 1 January , ,863 Income statement debit 10,217 5,000 15, December ,080 5, ,080 Deferred tax receivables Tax losses Other Total 1 January ,451 66, ,605 Income statement credit (13,177) (1,667) (14,844) 31 December ,274 64, ,761 1 January ,274 64, ,761 Income statement debit/(credit) (17,546) 6,917 (10,629) 31 December ,728 71, , Dec Dec-08 Deferred tax liabilities: Recoverable after 12 months 27,948 2,102 27,948 2, Provisions for staff compensation The amounts identified in the Balance Sheet, are the following: 31-Dec Dec-08 Balance sheet liabilities for: Retirement benefits Total The amounts identified in profit and loss, are the following: 31-Dec Dec-08 Income statement charge: Retirement benefits Total Change to liabilities as presented in the Balance Sheet is as follows: (30) / (36)

31 31-Dec Dec-08 Present value of non-financed liabilities Unrecognised actuarial losses (9) (6) Liability in the Balance Sheet Dec Dec-08 Current employment cost Finance cost 9 7 Cut-down losses (2) (8) Total included in staff benefits Dec Dec-08 Opening balance Total expense charged in the income statement Closing balance The main actuarial assumptions used for accounting purposes are: 31-Dec Dec-08 Discount rate 6.10% 5.50% Future salary increases 4.00% 4.00% 16 Provisions Note COMPANY DETAILS Other provisions Total 1-Jan-08 59,583 59,583 Additional provisions for fiscal year 15,649 15,649 Reclassification of doubtful receivables 27 provision (74) (74) 31-Dec-08 75,158 75,158 1-Jan-09 75,158 75,158 Additional provisions for fiscal year 17,094 17,094 Unused provisions reversed (624) (624) 31-Dec-09 91,628 91, Dec Dec-08 Total provision analysis: Long-term 91,628 74,535 Short-term Total 91,628 75,158 (31) / (36)

32 The provision of 17,094 thousand in total pertains to the provision for heavy maintenance under the concession agreement of. The amount of 624 thousand euro pertains to unused provisions reversed in relation to court proceedings. Accordingly for 2008 the Provisions account is broken down to 15,025 thousand euro pertaining to provisions for heavy maintenance under the concession agreement of, 623 thousand euro representing provisions for contingent liabilities connected with court proceedings, and 1 thousand to other provisions. 17 Expenses per category 31-Dec-08 Cost of goods sold Selling expenses Administra ive expense Employee benefits 1, ,026 Depreciation of tangible assets 2, ,743 Depreciation of intangible assets 39, ,255 Expenses for heavy maintenance provisions 5, ,733 Construction project maintenance expenses 10, ,508 Operating lease rental fees Third party allowances 5, ,259 Premiums 3, ,691 Other third party compensation 2, ,787 Technician fees and expenses Fees to operator 62, ,440 Other third party fees & expenses 1, ,719 3,339 Provisions for doubtful receivables Other 1,069 2, ,743 Total 136,390 3,760 3, ,351 Total 31-Dec-09 Cost of goods sold Selling expenses Administr ative expenses Employee benefits 1, ,097 2,381 Depreciation of tangible assets 1, ,880 Depreciation of intangible assets 39,362-39,362 Expenses for heavy maintenance provisions 8,044 8,044 Construction project maintenance expenses 8, ,438 Operating lease rental fees Third party allowances 5,797 1, ,165 Premiums 3, ,564 Other third party compensation 2, ,204 Technician fees and expenses Fees to operator 61, ,228 Other third party fees & expenses 1, ,877 3,926 Promotion & advertisement expenses 7 2, ,663 Other 1, ,725 Total 135,505 4,668 3, ,647 Total (32) / (36)

33 18 Other operating income 31-Dec Dec-08 Rental fees 5,104 4,022 Other profit 1, Total 6,192 4,285 The amount of 5,104 thousand euro includes income from rental fees as a result of the absorption of motorist service stations in The Other profit account of 1,088 thousand euro includes 427 thousand euro representing revenues from the concession of rights, 219 thousand euro representing commissions from sales on account of third parties, and 442 thousand euro representing other profit. 19 Net financial expenses 31-Dec Dec-08 Interest expenses - Loans with banks 29,400 31,740 - Financial expenses for bank guarantees 3,970 4,409 - Financial expenses for heavy maintenance expenses 9,050 9,292 - Other financial expenses ,616 45,441 Income from interest (17,314) (20,003) Financial expenses- net 25,302 25, Employee benefits Note 31-Dec Dec-08 Wages and salaries 1,903 1,654 Social security expenses Cost of defined benefit plans Other employee benefits Total 2,381 2, Income tax Note 31-Dec Dec-08 Tax for fiscal year - 18 Deferred tax 14 25,845 7,313 Total 25,845 7,331 Tax on earnings before tax of the company is different from the theoretical amount that would arise if we use the weighted average tax rate of the country from which the company originates, as follows: (33) / (36)

34 31-Dec Dec-08 Earnings before interest based on profit and loss 85,795 83,065 Tax calculated based on current tax rate of 25% 21,449 20,766 Adjustments Difference between current tax rate and deferred tax rate 4,396 (13,435) Income tax based on profit and loss 25,845 7,331 The company has not made provisions for the unaudited year The ordinary tax audit performed on 2008 and completed on indicated accounting discrepancies of 2,189.8 thousand euro. Of these accounting discrepancies the company acknowledged the amount of 93.1 thousand. With regard to the goodwill of 2,096.7 thousand resulting from the absorption of the motorist service stations, the company has sought recourse against the Greek State, as it considers such goodwill to be rebatable, as it is posted under formation expenses, pursuant to the provisions of article 31(1)(l) of the Income Taxation Code (Law 2238/1994). 22 Commitments The following amounts correspond to commitments for operating leases, leased by third parties. 31-Dec-09 Up to 1 year 130 From 1-5 years 313 More than 5 years - Total 443 Operating leases pertain to car, building and land rental fees. 23 Contingent liabilities (a) There are litigations pending against the company for accidents which occurred during operation of the motorway by companies or individuals. Because the company is insured against accidents, no encumbrances are anticipated from a potentially negative outcome, given the insurance coverage in place. Other disputes in litigation or in arbitration, as well as any pending decisions by judicial or arbitration bodies are not expected to have a significant impact on the financial standing or operation of the company. (b) The imposition of municipal cleaning and lighting duties, and electrified area tax by the Municipalities of Aspropyrgos, Acharnes, Ano Liosia and Zefyri on the Company for the period is pending hearing. Said debt of 9,458 thousand euro in total relate to the Company s facilities in the respective Municipalities; however, the Ministry of Enironment, Physical Planning and Public Works has granted a certificate whereby Attiki Odos SA has no obligation to pay municipal duties for cleaning and lighting nor any electrified area municipal taxes in relation to the motorway. (c) The only unaudited year for the Company is Tax liabilities for this year have not been finalized yet and therefore additional charges may arise when the relevant audits are performed by the tax authorities. (d) The Company has contingent liabilities in relation to banks, other guarantees, and other matters that arise from its normal business activity and from which no substantial burden is expected to arise. (34) / (36)

35 31-Dec-09 Liabilities Good performance guarantees in relation to contracts 3,469 Good performance guarantees in relation to contracts with the Greek State 23,075 26,544 Receivables Guarantees from customers 2,336 Other 1,204 3, Transactions with Connected Parties Amounts regarding sales and purchases from the beginning of the period, as well as the balance of both receivables and liabilities at the end of the fiscal year ended, which have resulted from transactions with associated parties under IAS 24, are as follows: 31-Dec Dec-08 a) Sales of goods and services 1,180 1,000 b) Purchases of goods and services 69,327 74, Dec Dec-08 a) Receivables b) Liabilities 14,545 18,829 c) Key management compensation 1,719 1,615 Sales of services to related parties for 2009 comprise: 266 thousand euro from Attikes Diadromes SA, 191 thousand euro from Moreas SA, 123 thousand euro from Aktor SA, and 600 thousand from others. Purchases of goods and services to related parties in 2009 comprise: 3,780 euro for J/V Attiki Odos Maintenance SA, 3,733 thousand euro for J/V Attiki Odos SA, 61,446 thousand euro for Attikes Diadromes SA, and 368 thousand euro for others. Payables to related parties for 2009 comprise: 272 thousand euro to J/V Attiki Odos SA, 13,707 thousand euro to Attikes Diadromes SA, 566 thousand euro to others. Sales of services to related parties for 2008 comprise: 272 thousand euro from Attikes Diadromes SA, 173 thousand euro from Moreas SA, 555 thousand euro from others. Purchases of goods and services to related parties in 2008 comprise: 3,486 euro for J/V Attiki Odos Maintenance SA, 6,947 thousand euro for J/V Attiki Odos SA, 63,334 thousand euro for Attikes Diadromes SA, and 268 thousand euro for others. Payables to related parties for 2008 comprise: 2,975 thousand euro to J/V Attiki Odos SA, 15,075 thousand euro to Attikes Diadromes SA, 779 thousand euro to others. 25 Other notes - As of the Company employed 40 personnel, while as of it employed 36 personnel. 26 Post balance sheet events No significant event has occurred since the end of fiscal year 2009 to date. Peania, 12 May 2010 (35) / (36)

36 THE CHAIRMAN OF THE BOARD OF DIRECTORS THE MANAGING DIRECTOR THE CFO THE ACCOUNTING MANAGER DIMITRIOS KOUTRAS LEONIDAS G. BOBOLAS EMMANOUIL PETOUSIS FEVRONIA PAPADOPOULOU ID Card No. AE ID Card No. Σ ID Card No. AE ID Card No. AE (36) / (36)