REG - Public Power Corp - Annual Financial Report <Origin Href="QuoteRef">DEHr.AT</Origin> - Part 9
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amount 75,777 62,478
Accumulated amortization (55,733) (46,662)
Net carrying amount 20,044 15,816
At December 31, 2016
Discontinuing Operations (128) -
Gross carrying amount 78,036 64,060
Accumulated amortization (62,089) (51,311)
Net carrying amount 15,819 12,749
16. Investments In Subsidiaries
The direct subsidiaries of the Parent Company and the value of the investment are as follows:
Company
31.12.2016 31.12.2015
IPTO S.A. (Notes 2 and 12) - 916,376
HEDNO S.A. 56,982 56,982
PPC Renewables S.A. 155,438 155,438
PPC FINANCE PLC 59 59
PPC BULGARIA JSCo 522 522
PPC ELEKTRİK TEDARİK VE TİCARET A.S 1,350 1,350
214,351 1,130,727
In September 2016, the Board of Directors of the Parent Company decided the set-up of a wholly owned subsidiary in Albania,
under the name "PPC Albania", based at Tirana. The company will be active, among other activities, in electricity trading
and its initial share capital amounts to Euro 150. The set - up of the subsidiary company was held in January 2017 while
the payment of Euro 150 took place in February 2017.
The Extraordinary General Shareholders' Meeting by its decision on 17.01.2017, according to the provisions of the Law
4389/2016 , approved the set-up of a wholly owned subsidiary under the name "Holding Company ENERGIAKI S.A. (ENERGIAKI
HOLDING S.A.)" with initial share capital Euro 491,840 (Euro 491,770 from distribution in Kind of 51% of IPTO's shares
held by PPC and Euro 70 in cash). (Notes 2 and 12)
16. INVESTMENTS IN SUBSIDIARIES (CONTINUED)
The consolidated financial statements include the financial statements of PPC and its subsidiaries. The subsidiaries
included in the consolidation are the following (full consolidation):
Ownership Interest Country and Year
Subsidiaries 31.12.2016 31.12.2015 of Incorporation Principal Activities
PPC Renewables S.A. 100% 100% Greece, 1998 RES
HEDNO S.A. 100% 100% Greece, 1999 HEDN
IPTO S.A. 100% 100% Greece, 2000 HETS
Arkadikos Ilios Ena S.A. 100% 100% Greece, 2007 RES
Arkadikos Ilios Dio S.A. 100% 100% Greece, 2007 RES
Iliako Velos Ena S.A. 100% 100% Greece, 2007 RES
Iliako Velos Dio S.A. 100% 100% Greece, 2007 RES
Solarlab S.A. 100% 100% Greece, 2007 RES
Iliaka Parka Ditikis Makedonias Ena S.A. 100% 100% Greece, 2007 RES
Iliaka Parka Ditikis Makedonias Dio S.A. 100% 100% Greece, 2007 RES
PPC Finance PLC 100% 100% UK, 2009 Financing Services
PPC BULGARIA JSCo 85% 85% Bulgaria, 2014 Supply of power
PPC Elektrik Tedarik ve Ticaret A.S. 100% 100% Turkey, 2014 Supply of power
PHOIBE ENERGIAKI S.A 100% 100% Greece,2007 RES
17. Investments In Associates
The Group's and the Parent Company's associates as of December 31, 2016 and December 31, 2015 are as follows (equity
method):
Group Company
31.12.2016 31.12.2015 31.12.2016 31.12.2015
Larco S.A. - - - -
PPC Renewables ROKAS S.A. 2,160 2,110 - -
PPC Renewables TERNA Energiaki S.A. 3,161 2,877 - -
PPC Renewables NANKO Energy - MYHE Gitani S.A. 2,204 2,389 - -
PPC Renewables MEK Energiaki S.A. 1,314 1,421 - -
PPC Renewables ELTEV AIFOROS S.A. 2,532 2,373 - -
PPC Renewables EDF EN GREECE S.A. 8,479 11,242 - -
Aioliko Parko LOYKO S.A. 20 24 - -
Aioliko Parko MBAMBO VIGLIES S.A. 23 28 - -
Aioliko Parko KILIZA S.A. 27 31 - -
Aioliko Parko LEFKIVARI S.A. 25 31 - -
Aioliko Parko AGIOS ONOUFRIOS S.A. 28 32 - -
Renewable Energy Applications LTD 27 27 - -
WASTE SYCLO S.A. 46 55 221 221
PPC Solar Solutions S.A. 971 976 980 980
21,017 23,616 1,201 1,201
17. INVESTMENTS IN ASSOCIATES (CONTINUED)
The full list of the Group's and the Parent Company's associates are as follows:
Ownership Interest Country and year
Associates Note 31.12.2016 31.12.2015 of Incorporation Principal Activities
Larco S.A. 11.45% 11.45% Greece, 1989 Metallurgical
PPC Renewables ROKAS S.A. 49.00% 49.00% Greece, 2000 RES
PPC Renewables TERNA Energiaki S.A. 49.00% 49.00% Greece, 2000 RES
PPC Renewables NANKO Energy - MYHE Gitani S.A. 49.00% 49.00% Greece, 2000 RES
PPC Renewables MEK Energiaki S.A. 49.00% 49.00% Greece, 2001 RES
PPC Renewables ELTEV AIFOROS S.A. 49.00% 49.00% Greece, 2004 RES
PPC Renewables EDF EN GREECE S.A. 49.00% 49.00% Greece, 2007 RES
EEN VOIOTIA S.A. 1 46.60% 46.60% Greece, 2007 RES
Aioliko Parko LOYKO S.A. 49.00% 49.00% Greece, 2008 RES
Aioliko Parko BAMBO VIGLIES S.A. 49.00% 49.00% Greece, 2008 RES
Aioliko Parko KILIZA S.A. 49.00% 49.00% Greece, 2008 RES
Aioliko Parko LEFKIVARI A.E. 49.00% 49.00% Greece, 2008 RES
Aioliko Parko AGIOS ONOUFRIOS S.A. 49.00% 49.00% Greece, 2008 RES
Renewable Energy Applications LTD 49.00% 49.00% Cyprus, 2010 RES
Waste Syclo S.A. 49.00% 49.00% Greece, 2011 Waste Management
PPC Solar Solutions S.A. 49.00% 49.00% Greece, 2014 RES
1. It is consolidated from the associate company PPC Renewables EDF EN GREECE S.A. as it participates by 95% in its share
capital.
The following table presents PPC's share (directly or indirectly) of its associates' financial figures as of 31.12.2016 and
31.12.2015 respectively:
December 31, 2016
Assets Liabilities Equity
PPC Renewables ROKAS S.A. 3,046 886 2,160
PPC Renewables TERNA Energiaki S.A. 7,281 4,120 3,161
PPC Renewables NANKO Energy - MYHE Gitani S.A. 3,420 1,216 2,204
PPC Renewables MEK EnergiakiS.A. 3,047 1,733 1,314
PPC Renewables ELTEV S.A.- SMIXIOTIKO 4,288 1,756 2,532
PPC Renewables EDF EN GREECE S.A. 24,830 19,495 5,335
Renewable Energy Applications LTD 29 2 27
Aioliko Parko LOYKO S.A. 23 3 20
Aioliko Parko MΒAMBO VIGLIES S.A. 31 7 24
Aioliko Parko KILIZA S.A. 30 3 27
Aioliko Parko LEFKIVARI A.E. 26 1 25
Aioliko Parko AGIOS ONOUFRIOS S.A. 30 2 28
Waste Syclo S.A. - - -
46,081 29,224 16,857
December 31, 2015
Assets Liabilities Equity
PPC Renewables ROKAS S.A. 3,054 551 2,503
PPC Renewables TERNA Energiaki S.A. 7,433 4,556 2,877
PPC Renewables NANKO Energy - MYHE Gitani S.A. 3,376 110 3,266
PPC Renewables MEK EnergiakiS.A. 2,972 1,551 1,421
PPC Renewables ELTEV AIFOROS S.A. 4,312 1,939 2,373
PPC Renewables EDF EN GREECES.A. 21,979 15,648 6,331
Renewable Energy Applications LTD 29 2 27
Aioliko Parko LOYKO S.A. 68 - 68
Aioliko Parko MBAMBO VIGLIES S.A. 81 3 78
Aioliko Parko KILIZA S.A. 72 1 71
Aioliko Parko LEFKIVARI A.E. 85 1 84
Aioliko Parko AGIOS ONOUFRIOS S.A. 73 1 72
Waste Syclo S.A. - - -
43,534 24,363 19,171
17. INVESTMENTS IN ASSOCIATES (CONTINUED)
The following table presents PPC's share of its associates' revenue and results:
December 31, 2016 December 31, 2015
Sales Profit/(Loss) Sales Profit/(Loss)
PPC Renewables ROKAS S.A. 739 520 690 464
PPC Renewables TERNA Energiaki S.A. 1,553 664 1,198 596
PPC Renewables NANKO Energy - MYHE Gitani S.A. 838 306 637 329
PPC Renewables MEK EnergiakiS.A. 1,264 581 1,268 793
PPC Renewables ELTEV S.A.SMIXIOTIKO 516 158 530 211
PPC Renewables EDF EN GREECES.A. 2,897 569 3,008 764
Renewable Energy Applications LTD - - - -
Aioliko Parko LOYKO S.A. - (2) - (3)
Aioliko Parko MΒAMBO VIGLIES S.A. - (3) - (5)
Aioliko Parko LEFKIVARI A.E. - (2) - (3)
Aioliko Parko AGIOS ONOUFRIOS S.A. - (3) - (3)
Aioliko Parko KILIZA S.A. - (2) - (3)
Waste Syclo S.A. - - - -
7,807 2,786 7,331 3,140
18. balances and Transactions With Related Parties
PPC balances with its subsidiaries and its associates as of December 31, 2016 and 2015 are as follows:
December 31, 2016 December 31, 2015
Receivables (Payables) Receivables (Payables)
Subsidiaries
IPTO S.A. 152,844 (807,989) 65,468 (824,137)
PPC Renewables S.A. 1,260 - 1,741 -
HEDNO S.A. 599,981 (1,028,540) 89,441 (347,258)
PPC Finance PLc - (6,173) - (6,169)
PPC Elektrik 542 (86) 239 (96)
PPC Bulgaria JSCo 38 (1,524) - (709)
754,665 (1,844,312) 156,889 (1,178,369)
Associates
Larco S.A. (energy, lignite and ash) 242,709 - 272,163 -
242,709 - 272,163 -
18. BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
PPC's transactions with its subsidiaries and its associates as of December 31, 2016 and 2015 are as follows:
2016 2015
Invoiced to Invoiced from Invoiced to Invoiced from
Subsidiaries
IPTO S.A. 204,939 (1,217,093) 129,011 (1,367,353)
PPC Renewables S.A. 3,280 - 3,419 -
HEDNO S.A. 1,144,839 (1,820,297) 1,247,817 (1,982,423)
PPC Finance PLc - (37,061) - (37,125)
PPC Elektrik 2,550 (833) 1,184 (3,300)
PPC Bulgaria JSCo 45 (32,532) - (6,379)
1,355,653 (3,107,816) 1,381,431 (3,396,580)
Associates
Larco S.A. 61,767 (6,396) 66,550 (4,907)
61,767 (6,396) 66,550 (4,907)
Guarantee in favor of the subsidiary PPC Renewables S.A.
As of 31.12.2016, the Parent Company has guaranteed for a total credit line of up to Euro 8 mil., through overdraft
facilities. As of 31.12.2016 PPC Renewables S.A. has used from the above mentioned credit line an amount of Euro 947,91,
which relates to letters of guarantees.
Guarantee in favor of the subsidiary IPTO SA
As of 31.12.2016, the Parent Company has guaranteed IPTO's bilateral loans for a total amount of Euro 325 mil. The above
mentioned guarantee was approved by the Parent Company's Annual Shareholders' Meeting.
Transactions and balances with other companies into which the Greek State participates
The following table presents transactions and balances with Hellenic Petroleum ("ELPE S.A.") and National Gas Company
("DEPA S.A."), which are PPC's liquid fuel and natural gas suppliers, respectively and into which the Greek State
participates. Furthermore, transactions and balances with the Electricity Market Operator ("EMO"),are presented.
Purchases Balance
31.12.2016 31.12.2015 31.12.2016 31.12.2015
ELPE, purchases of liquid fuel - 107,837 85 8,176
DEPA, purchases of natural gas 265,499 324,493 105,314 67,632
265,499 432,330 105,399 75,808
31.12.2016 31.12.2015
Receivables (Payables) Receivables (Payables)
EMO S.A. 173,764 (128,312) 165,547 (57,891)
31.12.2016 31.12.2015
Invoiced to Invoiced from Invoiced to Invoiced from
EMO S.A. 1,384,468 (2,013,545) 1,945,418 (2,565,727)
18. BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
In addition to the above mentioned transactions, PPC enters into commercial transactions with many state-owned
entities, both profit and nonprofit, within its normal course of business (sale of electricity, services received, etc.).
All transactions with government owned entities are performed at arm's length terms.
Management remunerations
Management's remunerations (Board of Directors and General Managers) for the year ended December 31, 2016 and 2015 are as
follows:
GROUP COMPANY
31.12.2016 31.12.2015 31.12.2016 31.12.2015
Remuneration of Board of Directors' members
- Remuneration of executive members 346 318 57 88
- Remuneration of non-executive members 37 51 - -
- Compensation / Extraordinary fees 80 30 - -
- Employer's Social Contributions 95 62 19 -
- Other Benefits 108 97 106 82
666 558 182 170
Remuneration of Deputy Managing Directors and General Managers
- Regular remuneration 638 653 492 539
- Employer's Social Contributions 184 201 137 163
-Compensation / Extraordinary fees 14 - 14 -
836 854 643 702
1,502 1,412 825 872
Remuneration to members of the Board of Directors does not include standard salaries and employer's social contribution,
relating to the representatives of employees that participate in the Parent Company's Board of Directors. Also, it does not
include the benefit of the electricity supply based on the PPC personnel tariff to the executive members of the Board of
Director, the Deputy Managing Directors and the General Managers. It is noted that in the above table, remuneration to
members of the Board of Directors of the subsidiary IPTO is included.
19. Materials, Spare Parts and Supplies, NET
Group Company
2016 2015 2016 2015
Lignite 49,412 78,074 49,412 78,074
Liquid fuel 177,964 188,174 177,964 188,174
Materials and consumables 618,351 685,096 491,940 475,844
Purchased materials in transit 12,231 14,653 12,086 14,139
857,958 965,997 731,402 756,231
Provision for materials' write down to recoverable amount (198,345) (218,627) (187,252) (186,420)
Total 659,613 747,370 544,150 569,811
During 2016, the Group and the Parent Company established an additional provision for materials' and spare parts' write
down amounting to Euro 753 and Euro 832 respectively, (2015: Euro 9,390 and Euro 8,358 respectively). Materials, spare
parts and supplies of the Parent Company and the Group are held free of encumbrances.
20. Trade Receivables, net
Group Company
2016 2015 2016 2015
High voltage 390,069 459,758 390,649 459,996
Medium and low voltage 2,969,257 2,692,388 2,969,294 2,692,380
Customers' contributions 3,521 4,502 3,521 4,502
Other energy suppliers 131,492 163,864 - -
Subsidiaries' receivables - 99,651 - -
3,494,339 3,420,163 3,363,464 3,156,878
Unbilled revenue 969,605 963,531 969,605 963,531
4,463,944 4,383,694 4,333,069 4,120,409
Allowance for doubtful balances (2,865,947) (2,539,486) (2,766,211) (2,420,604)
Total 1,597,997 1,844,208 1,566,858 1,699,805
High voltage customer balances relate to (a) receivables from sales of energy to 81 companies, including large industrial
companies, which are invoiced at the end of each calendar month, based on individual agreements and actual metering and (b)
exports to customers abroad.
Medium voltage customers are mainly industrial and commercial companies. Billing is made on a monthly basis based on actual
meter readings. Low voltage customers are mainly residential and small commercial companies.
The majority of low voltage customers are billed every four months based on actual meter readings, while interim bills are
issued every two months based mainly on the energy consumed during the corresponding period in the prior year.
There are different types of tariffs for both medium and low voltage customers with different tariff structures based on
different types of energy use (commercial, residential, etc). Revenues from the supply of electricity to medium and low
voltage customers provided during the period from the last meter reading or billing through each reporting date are
accounted for as unbilled revenue.
The provision for doubtful receivables is established, on specific customer balances. For medium and low voltage customers,
the Parent Company was establishing a provision for the total of their outstanding balances of more than 3 and 6 months
respectively, per customer.
The movement of the provision for doubtful receivables is as follows:
Group Company
2016 2015 2016 2015
As at January 1 2,539,486 1,675,553 2,420,604 1,553,937
- Discontinuing Operations (19,146) - - -
- Provision charge 407,457 870,755 407,457 870,995
- Reversal of unused provision (61,850) (2,494) (61,850) -
- Utilisation - (4,328) - (4,328)
As at December 31 2,865,947 2,539,486 2,766,211 2,420,604
At December 31, 2016 and 2015, the ageing analysis of the invoiced trade accounts receivable, impaired by the established
provisions of the Parent Company, are as follows:
Non Past due and not impaired Past due and not impaired (days) trade receivables
Total trade receivables < 45 45 - 180 180- 365 > 365
2016 597,251 117,599 112,727 255,665 71,792 39,468
2015 736,275 124,418 130,019 352,911 75,414 53,513
21. Other Receivables, net
Group Company
2016 2015 2016 2015
Value Added Tax 29,315 17,216 26,546 14,208
Assessed taxes and penalties 55,569 54,810 57,961 54,696
Social security funds
- in dispute 18,059 18,059 18,059 18,059
- current 3,195 3,195 3,195 3,195
State participation in employees' social security contributions 1,546 1,546 1,546 1,546
Pensioners' advances, in dispute 5,262 5,262 5,262 5,262
Loans to employees 11,307 12,118 8,147 8,323
Receivables from contractors 4,065 4,066 4,066 4,066
Receivables from subsidiaries - - 1,269 1,760
Receivables from IPTO-Capital Unpaid - - 92,944 -
Receivable by DEPA - 42,330 - 42,330
Receivable by EMO 47,769 108,030 47,769 107,656
Fiber optic rentals 2,278 17,187 2,278 14,894
Other 107,453 70,043 76,407 51,760
285,818 353,862 345,449 327,755
Allowance for doubtful balances (72,499) (107,987) (71,302) (105,912)
Total 213,319 245,875 274,147 221,843
Assessed taxes and penalties:
The amount represents additional income taxes and penalties assessed to and paid by the Parent Company as a result of a
preliminary tax audit performed in previous years by the tax authorities for the fiscal years from 1992 through to 1997.
The amounts were paid in order for the company to be able to file an appeal to the tax courts. These amounts have as
follows:
· For the fiscal year 1992, an amount of Euro 8,048 was paid (during 2006) (income tax of Euro 1,064, additional taxes
of Euro 2,724 and penalties of Euro 4,260).
· For the fiscal years from 1995 through to 1997, an amount of Euro 30,728 was paid (Euro 18,173 paid in 2005 and Euro
12,555 paid in periods prior to December 31, 2004).
· For the fiscal years from 1994 through to 1995, an amount of Euro 1,480 was paid. Within 2007, this amount was
settled against other tax liabilities.
Against the above receivables, the Parent Company has established a provision of Euro 42,676 (Note 31).
Social Security Funds in Dispute
The amount relates to social security contributions and deductions (during years 1983-1993) for employees who have worked
with other employers before joining PPC. As PPC undertook the obligation to cover the whole amount of their pensions and
other related benefits, part of their contributions to other social security funds mainly IKA (SSI i.e. Social Security
Institute), the major Greek social security fund] has been claimed by PPC. The claim was not accepted by IKA and the case
was brought by PPC before the courts. Following an adverse court decision, PPC together with PPC - PIO (currently TAYTEKO
based on L. 3655/2008) appealed against said decision before the second degree courts. The second degree court rejected
PPC's appeal, whereas PPC - PIO's appeal against IKA is still pending. For the abovementioned amount, an equal provision
has been established at the attached financial statements.
Advances to Pensioners in Dispute
The amount of Euro 5,262 represents an advance payment made in 1993 to pensioners. A respective provision has been
established of this amount.
State Participation in Employees' Social Security Contributions:
The amount represents the claim of PPC from the State for the latter's contribution to the social security contributions of
employees who started working after January 1, 1993. For the above mentioned amount, an equal provision has been
established.
21. OTHER RECEIVABLES, NET (CONTINUED)
The movement in the allowance for other receivables is as follows:
Group Company
2016 2015 2016 2015
As at January 1 107,987 84,409 105,912 82,227
- Discontinuing Operations (2,000) - - -
- Provision charge 14,835 23,578 13,713 23,685
- Reversal of unused provision (48,323) - (48,323) -
- Utilisation - - - -
As at December 31 72,499 107,987 71,302 105,912
22. INVESTMENTS AVAILABLE FOR SALE
Group Company
2016 2015 2016 2015
-National Bank of Greece 17 24 17 24
- Evetam 241 241 241 241
- Euroasia Interconnector 51 51 51 51
- Attica Bank 967 - 580 -
Total 1,276 316 889 316
The Group participated in December 2015 to the increase in the share capital of Attica Bank with the amount of Euro 10 mil.
to purchase approximately 33 mil. shares (the Parent Company with Euro 6 mil. for purchasing 20 mil. shares).The new shares
were credited to PPC's Securities Account on 18.01.2016 and as a consequence on 31.12.2015, the above mentioned investment
was not classified as available for sale.
On 31.12.2016 the Group and the Parent Company considered that the above mentioned investment has been impaired and
therefore a loss of Euro 9,033 and Euro 5,420 for the Group and the Parent Company respectively were transferred to profit
or loss for the year ended 31.12.2016 (Note 26).
23. Cash and Cash Equivalents
Group Company
2016 2015 2016 2015
Cash in hand 520 1,383 492 1,273
Cash at banks 119,914 101,927 65,922 52,319
Time deposits 86,600 348,360 83,000 144,000
Total 207,034 451,670 149,414 197,592
Interest earned on cash at banks and time deposits is accounted for on an accrual basis and amounted to Euro 4,562 (2015:
Euro 5,768 ), for the continuing operations of the Group and to Euro 2,162 (2015: Euro 4,832) for the Parent Company and is
included in financial income in the accompanying statements of income (Note 10).
All cash and cash equivalents are denominated in Euro.
Additionally on December 31, 2016 the Group and the Parent Company kept in a pledged deposit account an amount of Euro
110,963 (2015: 127,842).
24. Share Capital
Under Law 2773/1999 and P.D. 333/2000 PPC was transformed, into a société anonyme.
By the Legislative Act of 07.09.2012, which was ratified by art. 2 of L. 4092/2012, the obligatory participation of the
Greek State with at least 51% of the company's share capital was abolished. The Extraordinary General Shareholders'
Meeting, which was convened on November 30, 2012 decided to abolish the article of incorporation which provided for the
participation of the Greek State by at least 51% to the company's share capital. This amendment of the Articles of
Incorporation on one hand harmonizes the articles with the legislation in effect, and on the other hand renders possible
the reduction of the current participation percentage of the Greek State to the company's share capital.
At December 31, 2016 and 2015, PPC's share capital (fully authorised and issued) amounted to Euro 1,067,200 divided into
232,000,000 common shares of Euro four and sixty cents (Euro 4.60) per value each.
24. SHARE CAPITAL (CONTINUED)
The Extraordinary General Shareholders' Meeting with its decision on 17.01.2017 and in the context of the carveout of the
"Holding Company ENERGIAKI S.A."(ENERGIAKI HOLDING S.A.) according to Law 4389/2016 , approved (a) the decrease of PPC's
share capital by Euro 491,840 "with the purpose of the distribution in Kind to its shareholders" and (b) as a consequence
of the above mentioned distribution in Kind, the transfer to its existing shareholders of the shares held PPC in the
"ENERGIAKI HOLDING S.A." in proportion to their participation in PPC's share capital. This decrease will be achieved by
means of decreasing the nominal value of the PPC's shares from Euro four and sixty cents (Euro 4.60) per value each to Euro
two and forty-eight cents (Euro 2.48).
After this decrease, PPC's share capital amounts to Euro 575,430 divided into 232,000,000 common shares of Euro two and
forty-eight cents (Euro 2.48) per value each.
25. Legal Reserve
Under Greek corporate law, corporations are required to transfer a minimum of 5% of their annual net profit as reflected in
their financial statements to a legal reserve, until such reserve equals one-third of the paid-in share capital. This
reserve cannot be distributed through the life of the corporation.
26. Other Reserves
Group Company
2016 2015 2016 2015
Tax free 7,362 7,362 7,362 7,362
Specially taxed reserves 95,597 95,597 95,597 95,597
Actuarial losses (Note 30) (256,053) (221,963) (137,055) (118,582)
Fair value of investments available for sale (Note 22) - (619) - (420)
Foreign exchange differences (278) (95) - -
Total (153,372) (119,718) (34,096) (16,043)
27. Dividends
Under Greek corporate law, companies are required each year to pay dividends of at least 35% of after-tax profit, after the
formation of the legal reserve. However, with the consent of at least the 70% of the Company's shareholders, a company may
not distribute any dividend.Furthermore, Greek corporate law requires certain conditions to be met before dividends can be
distributed. Specifically, no dividends can be distributed (a) as long as a company's net equity, as reflected in the
statutory financial statements, is, or after such distribution, will be less than the outstanding capital plus
non-distributable reserves, and (b) as long as the unamortized balance of "Pre-operating Expenses", as reflected in the
statutory financial statements, exceeds the aggregate of extraordinary reserves plus retained earnings.
At December 31st, 2016, the unpaid balance of dividends was Euro 63 (2015: Ευρώ 149).
Based on L. 4172/2013, the distributable earnings approved by the General Shareholders' Meetings since 01.01.2014 are
subject to a withholding tax of 10%.
PPC's Board of Directors at its meeting on 07.04.2017 decided to propose to the forthcoming Annual General Meeting of PPC's
the non-distribution of dividends, in accordance with Article 45 par.2 case b) of Law 2190/1920, in conjuction with Article
3 par.3 of Law 148/1967, due to the current economic conjecture and cash needs which the Parent Company faces for the year
2017.
28. long-term borrowing
Group Company
2016 2015 2016 2015
Bank Loans 2,082,955 2,320,446 2,082,955 2,167,423
Bonds Payable 2,529,088 2,921,078 2,529,098 2,630,976
Unamortized portion of loan issuance fees (30,039) (36,563) (30,039) (36,563)
Total 4,582,004 5,204,961 4,582,014 4,761,836
Less current portion:
- Bank Loans 173,091 191,491 173,091 164,468
- Bonds Payable 466,879 530,976 466,879 240,864
Unamortized portion of loan issuance fees (8,868) (8,680) (8,868) (8,680)
Total 631,102 713,787 631,102 396,652
Total long term portion of loans and borrowings 3,950,902 4,491,174 3,950,912 4,365,184
The table below shows the analysis of the long-term borrowing from discontinuing operations (subsidiary IPTO) on
31.12.2016.
Bank Loans 161,000
Bonds Payable 290,112
Unamortized portion of loan issuance fees -
Total 451,112
Less current portion:
- Bank Loans 16,000
- Bonds Payable 290,112
Unamortized portion of loan issuance fees -
Total 306,112
Total long term portion of loans and borrowings 145,000
During 2016, the Group proceeded to debt repayments amounting to Euro 409 mil. (Parent Company Euro 382 mil.) out of which
an amount of Euro 50 mil. (at 31.12.2015) refers to an overdraft facility which was refinanced in February 2016 through a
Revolving Credit Facility of Euro 65 mil. maturing in 2019.
In November 2016, the Parent Company drew from the European Investment Bank, the amount of Euro 80 mil., for the project
«PPC POWER PROJECTS ON GREEK ISLANDS», of a total financing line of Euro 190 million, bearing the Greek Republic's
guarantee.
In November 2016 the Parent Company's Board of Directors approved a two-year extension of a Bond Loan of an approximate
amount of Euro 74 mil., the product of which is used as cover to EIB on behalf of the Parent Company and is included in the
Blocked Deposits.
In December 2016, PPC's Board of Directors approved the funding of Euro 85 mil. from EIB, for the modernization and
strengthening of Electricity Distribution Networks in the mainland and the islands (both Interconnected and Non -
Interconnected). Afterwards the first contract was signed for an amount of Euro 40 mil.
28. LONG-TERM BORROWING (CONTINUED)
The subsidiary company IPTO S.A. after an initial disbursement of an amount of Euro 30 mil. in 2015, proceeded in drawing
an additional amount of Euro 35 mil. on March 18th 2016 from the European Investment Bank for the project "Cyclades
Interconnection Phase A" from a total financing line of Euro 130 mil. guaranteed by the Greek State.
In October 2016, IPTO's Board of Directors approved the terms and conditions of the financing proposal for the issuance of
a medium-term syndicated bond loan of Euro 337.1 mil., which will refinance all its loans to Greek banks.
The total interest expense on total debt for the period ended December 31, 2016, besides capitalized interest expense of
the construction period amounting approximately to Euro 7.2 mil. (2015: 8.9 mil approximately), is included in financial
expenses in the accompanying statements of income (Note 9).
In the category "Bonds Payable" in the above table , the amount of Euro 114,353 is included which concerns the partial
financing of the construction of the new lignite -powered unit "PTOLEMAIDA V" and which is registered in the category
"Project Financing" Floating Rate of the following table.
A further analysis of the long term borrowings of the Group and the Parent Company is presented in the table below:
Group Company
2016 2015 2016 2015
Bank loans and bonds
- Fixed rate 700,000 700,000 700,010 700,010
- Floating rate 1,714,735 2,106,725 1,714,735 1,816,614
European Investment Bank
- Fixed rate 1,794,788 1,660,256 1,794,788 1,551,922
- Floating rate 288,167 660,190 288,167 615,500
Project Financing
- Fixed rate - - - -
- Floating rate 114,353 114,353 114,353 114,353
Total 4,612,043 5,241,524 4,612,053 4,798,399
Long-term borrowings represent unsecured obligations of the Group and the Parent Company, excluding services of collateral
in the form of pledged deposits provided by the Group and the Parent Company, totalling Euro 110,935 (31.12.2015: Euro
127,814).
Certain loans and bonds include certain non-financial terms, the most important of which is that the Company should not
cease to be a corporation controlled at least 51% by the Greek State.
It is noted that in the loan agreements which have been concluded after the implementation of the Medium Term Financial
Strategy Frameworkwhich was signed in July 2011, this percentage has been adjusted in 34%, following the transfer of 17% by
the Greek State to HRADF, which is owned by the Greek State by 100%.
Certain loan agreements, with an outstanding balance of Euro 1,749 mil.on December 31, 2016, (Euro 1,590 mil. for the
Parent Company) include financial covenants, the non-compliance of which may lead to an event of default.
For the provision of a guarantee by the Greek State in favor of PPC to all loans with the European Investment Bank, the
Parent Company pays a guarantee commission to the Greek State.
28. LONG-TERM BORROWING (CONTINUED)
The annual principal payments of the long-term borrowings required to be made subsequent to December 31, 2016 (based on the
exchange rates as of December 31, 2016) are as follows:
Group Company
2016 2015 2016 2015
Within one year 639,970 722,467 639,970 405,332
In the second year 397,788 639,091 397,788 623,090
Between three and five years 2,435,595 2,495,309 2,435,605 2,482,985
After five years 1,138,690 1,384,657 1,138,690 1,286,992
Total 4,612,043 5,241,524 4,612,053 4,798,399
In the above debt redemption program, an amount of Euro 73,985 is included which concerns specific purpose financing for
using it as collateral for existing financing lines, and for which the Parent Company keeps an equal amount in a pledged
deposit account.
Credit rating of PPC from rating agencies
On December 31st 2016, PPC's credit rating from S&P and ICAP credit houses is set "CCC-" with negative outlook and "D"
respectively.
On February 9th, 2017 the S&P credit house placed PPC on creditwatch negative,stressing the necessity of securing immediate
liquidity during April. Otherwise the S&P will proceed in downgrading PPC in C considering that within the next six months
the company will face weakness of its debt repayment.
29. Financial Instruments
Group Company
2016 2015 2016 2015
Derivatives financial instruments
Liabilities - 689 - 689
Assets - - - -
Derivative financial instruments represent interest swap agreements as well as currency forward contracts.
Changes in the fair values of these derivatives are included in financial (expense) or/and income, in the accompanying
income statement.
The Parent Company had an outstanding forward currency contract, concerning the purchase of an initial amount of JPY 4.1
bil. which related to an existing loan paid in January 2016.
The net movement in the fair values of derivative financial instruments amounted to Euro 689.
30. POST RETIREMENT BENEFITS
The Group's employees and pensioners are entitled to the supply of electricity (which the Parent Company provides) at
reduced tariffs. Such reduced tariffs to pensioners are considered to be retirement obligations and are calculated at the
discounted value of the future retirement benefits deemed to have accrued at year-end based on the employees earning
retirement benefit rights steadily throughout the working period. The relevant retirement obligations are calculated on the
basis of financial and actuarial assumptions.
Net costs for the period are included in the payroll cost in the accompanying income statement consisting of the present
value of the benefits earned in the year, interest cost on the benefit obligation, as well as prior service cost. The
actuarial gains or losses are now recognized in other comprehensive income (OCI) based on the revised IAS 19 (effective
from 2013). Retirement benefit obligations are not funded. Results of the actuarial study for the years December 31, 2016
and 2015, are as follows:
30. POST RETIREMENT BENEFITS (CONTINUED)
Group Company
2016 2015 2016 2015
Change in benefit obligation
Liability at beginning of year 446,807 420,135 264,644 245,365
Discontinuing Operations (27,654) - - -
Current Service cost 4,838 4,916 3,163 2,816
Interest cost 8,383 8,403 5,293 4,907
Actuarial (gains)/losses 31,592 35,731 18,473 24,589
Benefits utilised (17,654) (22,378) (10,950) (13,033)
Liability, end of the year 446,312 446,807 280,623 264,644
Components of net service cost
Current Service cost 4,838 4,550 3,163 2,816
Interest cost 8,383 7,858 5,293 4,907
Continuing Operations 13,221 12,408 8,456 7,723
Discontinuing Operations 881 911 - -
Total 14,102 13,319 8,456 7,723
Statement of Comprehensive income
Cumulative amount, beginning of year 221,963 186,231 118,582 93,994
Actuarial (gains)/losses 34,089 35,732 18,473 24,588
Cumulative amount , end of year 256,052 221,963 137,055 118,582
Assumption values, Actuarial Study (Continuing and Discontinuing Operations)
Valuation date Discount rate Tariff increases Profit margin Expectancy of future services
2017: 0%
2018: 0% 2017: (2.2)%
31/12/2016 1.80% 2019: 0% 2018: 4.5% 11.02
2020: 0% 2019: 4.5%
2021+:0% 2020+: 4.5%
2015: (0.6%)
2016: (0.5%) 2016: 2.33%
31/12/2015 2.00% 2017: (0.5%) 2017: 11.70% 11.36
2018: (0.5%) 2018: 13.04%
2019+: 0% 2019+:14.04%
Sensitivity disclosures (Continuing and Discontinuing Operations)
Actuarial liability Percentage change
Increase in discount rate by 0.5% 443,668 (6.8%)
Decrease in discount rate by 0.5% 512,730 7.7%
Anticipated tariff increase rate by 1% for all years 548,689 15.2%
Anticipated tariff increase rate by 1% for 2016 - 2019 494,699 3.9%
Further to the abovementioned benefits, the subsidiary company PPC Renewables S.A., has established a provision for
personnel compensation in case of service termination amounting to Euro 14 concerning the personnel which is directly
employed from PPC Renewables (2015: Euro 14).
31 Provisions
Group Company
2016 2015 2016 2015
Litigation with employees /third parties (Note 37) 150,359 204,148 114,335 123,617
Disputes with the tax authorities (Note 21) 42,676 42,676 42,676 42,676
Mines' land restoration 24,991 22,682 24,991 22,682
PPC-PIO fixed assets 2,400 2,400 2,400 2,400
Other 6,994 8,729 5,166 5,166
Total 227,420 280,635 189,568 196,541
31. PROVISIONS (CONTINUED)
During the year ended December 31, 2016, the Group from continuing operations established an additional provision for
litigation with employees and third parties by Euro 8,067 (2015: additional provision of Euro 15,699). In parallel during
the year ended December 31, 2016 the Parent Company proceeded to an additional provision for litigation with employees and
third parties of Euro 9,013 (2015: additional provision Euro 15,699).
The movement of the provisions for mines' restoration has as follows:
Group Company
2016 2015 2016 2015
Balance at beginning of the year 22,682 20,510 22,682 20,510
- Change in future outflows(fixed assets) 2,963 2,546 2,963 2,546
- Reversal of unused provision (2,110) (1,908) (2,110) (1,908)
- Finance cost (Note 9) 1,456 1,534 1,456 1,534
Balance at the end of the year 24,991 22,682 24,991 22,682
32 Customers' Contributions and Subsidies
GROUP Customer
Subsidies Contributions Total
Net book value
December 31, 2014 396,861 1,267,152 1,664,013
- Subsidies and contributions received 31,353 - 31,353
- Transfer to revenues (Note 7) (25,566) (57,903) (83,469)
December 31, 2015 402,648 1,209,249 1,611,897
- Discontinuing Operations (121,061) (13,863) (134,924)
- Subsidies and contributions received 4,882 - 4,882
- Transfer to revenues (Note 7) (18,237) (57,631) (75,868)
December 31, 2016 268,232 1,137,755 1,405,987
PARENT COMPANY Customer
Subsidies Contributions Total
Net book value
December 31, 2014 281,806 1,252,688 1,534,495
- Subsidies and contributions received 13,546 - 13,546
- Transfer to revenues (Note 7) (18,278) (57,302) (75,580)
December 31, 2015 277,074 1,195,387 1,472,461
- Subsidies and contributions received 4,881 - 4,881
- Transfer to revenues (Note 7) (18,029) (57,631) (75,660)
December 31, 2016 263,926 1,137,756 1,401,682
33 Other Non - Current Liabilities
Group Company
2016 2015 2016 2015
Customers' advances 563,036 534,854 558,281 529,931
Received guarantees - 6,606 - -
Other 20,659 21,131 38 38
Total 583,695 562,591 558,319 529,969
The amount of customers' advances relates to advances made from customers upon initial connection to the transmission
and/or distribution networks and is considered as coverage against unbilled consumption outstanding as of any time. Such
advances are refundable (non-interest bearing) upon termination of connection by the customer. As the refund of such
amounts, which are payable on demand, is not expected to be realised within a short period of time the amounts are
classified as non-current liabilities and they are not discounted.
34. Trade And Other Payables
Group Company
2016 2015 2016 2015
Trade Payables:
Suppliers and contractors 783,790 732,564 439,779 439,566
Municipalities' duties 158,790 169,217 158,790 169,217
Social security funds, other 48,804 37,578 22,500 23,307
Greek TV 33,184 33,378 33,184 33,378
EMO S.A. - 637,402 - -
Taxes withheld 38,738 43,979 20,172 20,989
Excise Tax 11,577 12,710 11,577 12,710
Credit customers' balances 46,458 44,746 46,458 44,746
IPTO S.A. - - 554,723 735,095
HEDNO S.A. - - 428,526 238,075
Bank of Crete 12,053 12,053 12,053 12,053
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