GEK - TERNA GROUP. Group presentation

GEK - TERNA GROUP Group presentation

GEK - TERNA Group: Overview GEK and TERNA group holds one of the leading positions in Construction, Energy, Real Estate and Concessions, in Greece GEK is the parent company of the group, consolidating Real Estate and Concessions activity Construction and Energy activity are represented on TERNA 2

GEK - TERNA Group: Business Divisions Business Divisions Real Estate Concessions Construction Energy Supplementary activities (Industrial Products, Quarries) 3

Group Structure Group Structure GEK 54.6% TERNA 63,2 % TERNA ENERGY (RENEWABLES) THERMAL ENERGY REAL ESTATE CONCESSIONS CONSTRUCTION ENERGY REAL ESTATE CONCESSIONS 4

Historical Financial Indicators-GEK Sales ( m) EBITDA ( m) 419,0 426,0 200,0 280,4 ` 274,0 337,0 42,0 62,0 74,0 ` 86,0 63,0 75,0 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Net Profit ( m)* 31,0 21,0 22,0 19,0 20,3 12,0 ` 2001 2002 2003 2004 2005 2006 *Before minorities 5

Historical Financial Indicators-TERNA Sales ( mi) EBITDA ( mi) 412,3 427,0 80,4 224,0 280,4 ` 245,0 312,0 32,0 38,0 60,0 ` 42,1 55,0 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Net Profit ( mi) 40,7 13,0 8,2 21,9 ` 13,8 17,5 2001 2002 2003 2004 2005 2006 6

Real Estate Activity 7

Activity: Real Estate (GEK) GEK, being a Real Estate developer, has a differentiated portfolio in Greece Logistic centers-industrial parks Offices Entertainment parks Tourist residential Residential Commercial The company currently exploits significant investment opportunities in the Balkans + Monitoring Russian market Offices, residential, commercial, etc 8

REAL ESTATE Current development pipeline Project Type Total sq.m. Net Asset Value % of Value Parking Spaces 423 * 6.800.843 4,28% Warehouses - Industrial Buildings 19.366 4.548.609 2,86% Offices for sale 5.088 11.238.827 7,07% Offices under development 5.061 746.520 0,47% Commercial for sale 4.115 6.935.010 4,37% Commercial under development 2.155 317.872 0,20% Residential for sale 8.894 13.424.230 8,45% Residential under development 17.503 6.479.185 4,08% Land 1.082.984 82.852.800 52,15% Entertainment Parks 17.895 25.528.994 16,07% Total 158.872.890 100% *Parking spaces 9

Real Estate: Strategy Currently low leverage used (c20%) Leverage will increase (up to c50% till end 2009) as land portfolio is being developed Targeted return on equity employed in Real estate 30 % annually till 2009 10

REAL ESTATE NAV evolution 2004 2006 2007(e) 2009(e) NAV 130* 159** 195 320 The estimation for future NAV appreciation is based on the development of the existing (acquired) land In this estimation, no expectations for appreciation of existing developed portfolio is included *Based on external valuation at 12/2004 **Based on internal valuation at year end expected external valuation within 2007 11

REAL ESTATE in Greece (indicative) Vipa Thessalonica (1 st Private Industrial Zone in Greece) Land Plot: 988.000 sq.m. Sites to be disposed: 470.000 sq.m. Total Investment: 26 mil EURO State contribution: 6 mil Euro Expected completion: 2009 Expected Sales: 28 million Euro 12

REAL ESTATE in Greece (indicative) Thessalonica : Pipeline comercial development in the municipality of Monastiriou Total Building Area at completion : 33.000 sq.m. Investment : 55 mil Annual Rents : 5 mil Start construction Jan 2008 expected completion end 2009 13

REAL ESTATE in Greece (indicative) Residential development under construction at Metaxourgio in Athens Total Building Area at completion: 4.500 sq.m. Investment: 10 mil Expected Completion: 2008 Prospective Sales: 13,2 14

REAL ESTATE in Greece (indicative) Entertainment and sports park development in Ellinikon Total Area: 287.000,00 sq.m. Investment: 110 mil Euro Expected completion: end of 2008 Participation of GEK: 25% Annual Turnover: 38 mil (GEK part. 9,5 mil) Annual EBITDA: 14 mil (GEK part. 3,5 mil) Annual EBT: 7 mil (GEK part. 1,75 mil) Term: 30 years 15

REAL ESTATE in Bulgaria Plot A : 4 land properties of total 27.430 sq.m. Plot B : Land property of 87.700 (plus warehouses of 14.990 sq.m.) Land property of 4.285 sq.m. Land property of 50.873 sq.m. Land property of 11.894 sq.m.

REAL ESTATE in Bulgaria (Sofia) Bulgaria Avenue :Commercial 2.155 sq.m., Offices 5.061 sq.m., residential 12.580 sq.m. 2 1 Macedonia Square : Land 3.673 sq.m. Krivina : Land property 13.603 sq.m. 4 Boyana : Residential Development (land property 843 sq.m.) 3 5 GLS (Boyana) : (Participation of GEK 50%) Land property 13.448 sq.m. 17

REAL ESTATE in Bulgaria (indicative) Residential building with underground garages, office and shop premises 110 Bulgaria Blvd Land surface: 4.200 sq.m. Developed area: 24.830 sq.m. Residential premises: 12.580 sq.m. Office premises: 5.061 sq.m. Shop premises: 2.155 sq.m. Basements parking lot storage premises : 5.034 sq.m. Total Investment: 11,5 mil Expected completion: 2008 Prospective Total Sales: 17 mil 18

Concession Activity 19

Concessions BOT (GEK) The group contests for share in the large scale motorway concessions currently tendered in Greece Partnership (33.33%) with the Spanish FERROVIAL- CINTRA and ACS - DRAGADOS Status Development value Ionian Road Contract signed 1.4 billion Central Greece Motorway Preferred bidders 1.7 billion (e) North Peloponnesian Road Bid presented 2.2 billion (e) Attica roads Bid estimated at mid 07 1-1.5 billion (e) Expected equity investment in each project: 25mio Targeted IRR: 13-15% Significant Value Creation 20

Concessions IONIAN ROAD Total separate motorways in Eastern and Western coast of Greece (length: 378.7 km /159 km newly built) Estimated construction cost: 1.15 billion euro Financing during the construction phase (6 year construction period): Subsidy: 330 million euro Cash flow during construction from the section already in operation: 530 million euro Committed Investment: 75 million equity provided by the consortium + 111 million euro Subordinated Debt Senior bank debt without recourse to partners : 117 million euro Term: 30 years 21

Concessions CENTRAL GREECE (E65) New motorway in in Central Greece (total length: 231 km ) Estimated construction cost: 1.5 billion euro 5.5 year construction period Financing: Subsidy: c500 million euro Committed Investment: 65 million equity provided by the consortium + 65 million euro Subordinated Debt Senior bank debt without recourse to partners : 970 million euro Term: 30 years 22

Concessions key data for Ionian Road years Ionian road EBITDA MARGIN 2008-2012 80% 2013* - 2017 16% 2018-2022 15% Total annual toll revenues after the end of construction period (2008-2012) of Western Greece Axe: c300 mio Average growth rate in toll revenues (real terms): c3% Low project leverage enables extensive refinancing which will increase committed investment (equity+ sub debt) returns 2023-2027 14% 2028-2032 12% 2033-2037 12% * After construction period, the project company returns back to the state c80% of total toll revenues 23

Concessions key data for Central Greece Central Greece (E65) years EBITDA MARGIN 2008-2012 - 2013-2017 65% 2018* -2022 82% 2023-2027 82% Annual toll revenues for the first five years of operation (2012-2017): c65 mio After this period, the project receives operating subsidy which equals or exceeds toll revenues Average growth rate in toll revenues (real terms): c3.5% for the first five years and 3% thereafter 2028-2032 84% 2033-2037 84% * After the first five years of operation, the project starts receiving operating subsidy 24

Concessions Parking stations Current participations in parking stations Stations Capacity Participation (%) Net Participation (parking spaces) Duration of concession Parking Station Rizari (In operation) 661 20% 132 Parking Station Hospital Agia Sofia Square (In operation) 640 20% 128 Parking Station Aigiptou Square (In operation) 399 20% 80 Parking Station Kanigos Square (In operation) 503 20% 101 Parking Station OLP (In operation) 730 30% 219 Until 2033 Parking Station Ippokratio Hospital in Thessaloniki (In operation) 520 50% 260 Parking Station Antheon in the city of Thessaloniki (Under construction) 472 50% 236 Parking Station in Nea Smyrni (Karilou Square Under Construction) 700 20% 140 Until 2034 Parking Station in the city of Larissa (In operation) 280 50% 140 Until 2027 Parking Spaces Total 4.905 1.436 Until 2031 Until 2034 25

Construction Activity 26

Construction: Domestic Sector Outlook Remaining construction spending from EU funds till end 2008 (3rd CSF) 1 : 14 billion Greek Infrastructure Plan 2005-2007 ( bn) Roads, ports 4.4 Railways, City transports, Airports 2.1 Peripheral Infrastructure 1.6 Road Concessions 6.0 Total 14.1 Source: Ministry of Finance, Ministry of Public Works 4th CSF (2007-2014): c 10 billion infrastructure spending An increase in private construction activity for the post-olympic games era is anticipated (e.g hotels, tourism infrastructure) Forecasted 5,9% average growth of Greek Construction market till 2012 3 Note (1): CSF Community Support Framework Note (2): European Parliament Note (3): Global Insight Report 2004 27

Domestic Construction Division Outlook Group s position in the post-olympic era Sustainable cash flow generation Greek Infrastructure Plan up to 2007 Backlog at year end 06: 1.1 billion Preferred bidders in E65 motorway (1.5 bio - 33%) million euros Backlog starts to increase again after a very weak post Olympic period 1200 1000 800 600 400 200 0 533 469 backlog at year-end 180 400 1100 2002 2003 2004 2005 2006(e) (year end) Growth Potential Increase market share: The critical size of the Group enables TERNA to enjoy strong competitive position TERNA is currently bidding for more than 50 Greek public and private projects (value: 1.100m) TERNA contests for share in the construction of the remaining large scale motorway concession project C1-1.5 bio (33.33% participation partnership with FERROVIAL and ACS DRAGADOS) 28

Construction activities abroad Balkans Outlook for international TERNA is already well positioned in the Balkans 3 projects under construction ( 175m) no local player involvement Project funding provided by EU (CSF) EU enlargement: significant potential in the Balkans (accession of Bulgaria, Romania, etc) Middle East Target: 25% of construction sales from abroad within three years 4 projects awarded (Qatar, Abu Dabi, Bahrain c375m ) Bidding process: Oman, Saudi Arabia, UAE, Qatar (total 660 m) 29

TERNA: Energy Activity 30

Energy Business Division Wind parks + Hydro Plants (RES) The Group in Energy Gas fired plants Activity with secured cash flow and significant potential guaranteed by EU directives Site locations and licensing secured (early entrant in the market - 1997) Aim: be established as the largest Greek private energy producer within 3 years Status (MW) Wind Hydro Thermal In operation 119-147 Under construction 114* 12 400 Production License 438 106 - Applications 1.121 79 460 TOTAL 1.793 197 1.007 *(e) end H1 07 (3 wind parks to enter construction phase in the next few weeks) 31

Energy: locations occupied ENERGY PROJECTS (locations occupied) WIND PARKS UNDER DEVELOPMENT WIND PARKS IN OPERATION SMALL HYDROPOWER PLANT GAS FIRED PLANT COAL FIRED PLANT 32

Renewable Energy (TERNA ENERGY S.A) 33

Renewable Energy: Size of the market Sector outlook is positive with strong growth and guaranteed cash flow opportunities Today: 850 MW (750 WIND) National target for 2010 - EU Directive 2001/77: 3700 MW (3300 wind, 250 small hydro, 150 other) 34

Energy: Wind parks - Greece (TERNA ENERGY S.A) Wind Park Installed Capacity 8 wind parks installed and operational till end H1 07 (119 MW) 114 MW under construction till end H1 07 Licensed for over 458 more MW Applications for c1.100 MW 2012 targeted installed capacity in Greece: c1.000 MW Financial Description Investment cost per MW: 1-1.2 million 20 year PPA contract Funding structure: 30% own funds, 30% subsidies, 40% long-term debt Average IRR (post tax) of wind parks exceeds 20% Annual sales per MW: c 200.000 EBITDA margin: c80% PBT margin: c30% Price per MW indexed to average electricity price increases (inflation protected) 35

Energy: Hydro Plants - Greece Small Hydro plants 2 small hydro plants currently under construction (12 MW) 20 year PPA contract Targeted 110 MW installed by 2012 (own portion) Licensed for over 106 more MW Applications for 79 MW Investment cost per MW: c 2 million Funding structure: 25% own funds, 35% subsidies, 40% long-term debt Similar to wind parks financial performance ( i.e profitability margins, IRR etc) Large Hydro plants 62 MW large hydro plant in Avlaki (production license) Investment cost: c 165 million Funding structure: 25% own funds, c30% subsidies, 45% long-term debt Annual sales: c23 mio EBITDA margin: c88% 36

RES expansion abroad Targeted countries Bulgaria and Romania EU accession enforces governments to provide incentives for RES investments In Far East, the company monitors very closely certain areas in which positive developments could arise (large scale wind projects) Targeted installed capacity in these 3 regions (end 2012): c400 MW 37

Thermal Energy 38

Key market characteristics New entrant incentives and prospects Evident lack of capacity in Greece PPC s inefficient and unreliable units Shortage of power capacity in FYROM/ALBANIA Temporary incapability of Bulgaria and Romania to provide cheap electricity exports Electricity and Gas market in liberalization process NEW ENTRANT CONCERNS AND DRAWBACKS Regulated tariffs No margin between wholesale price and tariffs

Growth in consumption YEAR GWH % INCREASE PEAK (MW) % INCREASE 2002 47300 8950 2003 49860 5,41% 8897-0,59% 2004 51000 2,29% 9034 1,54% 2005 52580 3,10% 9492 5,07% 2006 53632 2,00% 9890 4,19% 40

Capacity Projection 41

Pool market development Pool market is still at a developing state; Only used as vehicle for transactions between the producers/importers No eligible customers No CFD s No futures or derivatives. This picture is expected to change when there are more players in the market ( producers and suppliers) and there are margins between the pool price or the total energy price of new IIP s and the tariffs. The market will develop when the tariffs will be de-regulated ( incumbent supplying less than 70% of the market ) 42

Energy: OCGT (HERON S.A) 147 MW GAS FIRED PLANT The first private gas- fired plant in Greece OCGT - 147 MW capacity and 40% efficiency. Total investment: 80m Operational since September 2004 It covers reserve needs till the end of Η1 2007 The plant currently receives a capacity payment of 4875 euro/mw month under a contract with HTSO. This contract is expected to be extended until enough capacity is secured in the Greek system through the HTSO new capacity tenders or other private investments 43

Energy: CCGT 400 MW GAS FIRED PLANT The group has started the development of CCGT plant (400 MW capacity) Total investment: 240m c70% non-recourse project finance Construction period: 26 months Estimated IRR: >18% Operational: within 2009 From all the other future IPPs in Greece Heron s plant has the most competitive position since : Gas and HV interconnections are already at site Has trained personnel for the implementation of the project and its subsequent operation of the plant The infrastructure of the site is already there i.e gas metering, compressors, fences administration buildings workshops, storage areas etc 44

Energy: Coal plant Unique location in Evia Old mine tunnels will receive the ashes Port facilities Total investment: c 700m 70-75% non-recourse project finance Operational within 2011 There is no coal currently used in Greece 460 MW COAL FIRED PLANT Coal is more abundant than oil and gas and even though is more Carbon intensive than CCGT it remains more profitable in all European markets Coal is expected to have a political support in Greece due to concerns regarding energy diversity and security 45

Energy: Lignite plant 460 MW LIGNITE FIRED PLANT TERNA is the best bidder on a State tender for the exploitation of a lignite mine Taken that the mine will be eventually awarded to TERNA the first independent lignite plant can be erected on the site 46

Commercial strategy The strategy of the company is to become a vertically integrated company. The Group is already present in the market since 2005 and has acquired experience in the wholesale market through its imports and exports through all Greek interconnections as well as in the supply of eligible customers The Group is establishing presence through trading subsidiaries in all neighboring countries. In 2006 the traded volume was about 300000 MWH with a pre tax profit of 5 million euro Currently due to no margins between pool market and eligible customer tariffs HERON is only supplying eligible customers associated with the group 47

GEK Group: Investment Highlights 48

Summary Investment points Achievements Leading position in Construction, Real Estate and Energy Critical size, an important fact within a maturing market Strong capital structure, which reassures: easier access in financing investment opportunities Potential Investments in Energy and Concessions recurrent activities Change risk profile Strong cash flow generation Growth in earnings 49

GEK TERNA GROUP OF COMPANIES Address: 85 Messogeion St, Athens, Greece tel: : 0030-210 6968431, fax 0030-210 -6968076 Email: ir@gekgroup.gr Website: www.gek.gr Investor relations: Mr A.Spiliotis 50