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Energy Division.
For 2013, the Energy Division is expected to have a considerable contribution as all thermal units constructed in
the previous years are currently in commercial service. Nevertheless, the combination of reduced demand and
increased capacity, especially from RES, does not raise expectations for price increases in the wholesale market;
these are expected to remain low.
Another key issue is to see the restoration of liquidity in the energy market and the removal of distortions that
result in increased debt.
Having a 1,2 GW capacity in service, the Group has secured the required critical size so as to maximize the ben-
efits from the deregulation of the natural gas market and the possibility for alternate provision of electric power
generation fuel through the procurement of Liquefied Natural Gas (LNG), and the anticipated full deregulation of
the domestic electric power market.
Under this framework, a satisfactory contribution by the Energy Sector is expected for 2013; this is expected to favor-
ably influence the integrated performance figures of the Group, to the same extent as other main activity sectors.
IV. Business Risk Management
Financial risk management aims and policies
The Group’s activities give rise to multiple financial risks, including the current and interest rate related risks;
the volatility in market prices; credit risks; and liquidity risks. The Group’s risk management program aims
at containing potential negative influence to its financial results, as this may arise from the inability to predict
financial markets and the volatility with respect to cost and sales variables.
The essential risk management policies are determined by the Group’s Management. The risk management
policy is applied by the Corporate Treasury Department. The latter acts as a service center, operating under
specific Management - approved lines.
Credit Risk
The Group does not exhibit any considerable concentration of credit risk in any of the contracted parties.
Credit risk originates from available cash and cash equivalents, derivative financial instruments and deposits
at banks and financial institutions; also from exposure to client derived credit risk.
Regarding commercial and other claims, the Group is not theoretically exposed to significant credit risks; as of
the multifaceted nature of the Group’s activities, there is no significant concentration of credit risk with respect to
its commercial requirements, as this is allocated over a high number of clients. However, the atypical conditions
that dominate the Greek market and several other markets in Europe are forcing the Group to constantly monitor
its business claims and also to adopt policies and practices to ensure that such claims are collected. By way of
example, such policies and practices include insuring credits where possible; pre-collection of the value of product
sold to a considerable degree; safeguarding claims by collateral loans on customer reserves; and receiving letters
of guarantee.
To minimize credit risk on cash reserves and cash equivalents; in financial derivate contracts; as well as other
short term financial products, the Group specifies certain limits to its exposure on each individual financial
institution and only engages in transactions with creditworthy financial institutions of high credit rating.
