DEDA The Gas Distribution Company Rest

of Greece SA ….an emerging entity….

Theodoros Terzopoulos,

CEO

Gas Distribution Company Rest of Greece S.A.

1

…a bite of history

• Act 4336/2015 consists a radical change for distribution and retail gas market in our country. That legislation was the way by which, Greece adopted the 3rd EU energy package; thus separating distribution from retail.

2

Today’s snapshot

• 16 months on, 3 new distribution companies were established, with geographical restrictions applying, along with 2 new retail entities, while DEPA carried on providing gas for industrial and commercial consumers.

• Today, I am standing here as DEDA’s representative, a company stemming out of DEPA, formed by separating the distribution activities from the latter.

3

DEDA’s backbone • DEDA is the distinctive title of the distribution company

established by DEPA and it owns and operates distribution networks in 12 cities and industrial areas, about 500 km long. It currently employs 25 people in its headquarters and about another 35 in operation and maintenance centres, located in the regions of Central Greece, Central Macedonia and Eastern Macedonia and Thrace. A specialist contractor is further on call, with two units in place, one in Northern Greece and the other in the South. This structure, operates distribution networks for over 10 years now.

4

Operational figures

• 11 gas retail companies provide today for about 170 industrial and commercial consumers, in DEDA’s networks. It is further worth mentioning, that hourly metering is provided to every single customer connected to our grid, thus guaranteeing objective distribution charges.

• Over 2,3 million MWh were distributed through our system in 2016. However, DEDA will not only operate the aforementioned 500 km long networks; an ambitious yet sociocentric development program will be deployed in the next twenty years, as displayed in the following table:

5

Region Cities Length to be

constructedCAPEX

New

Connections

Chalkida

Karpenisi

Amfissa

Lamia

Livadeia

Thiva

Alexandria

Veroia

Kilkis

Giannitsa

Katerini

Serres

Alexandroupolis

Komotini

Xanthi

Drama

Orestiada

Kavala

East

Macedonia

& Thrace

485 km. Μ.P.

141 mil. €

45.000

residential

9 km. L.P.

2.000

commercial9 MR/S

Central

Macedonia

327 χλμ. Μ.P.

78 mil. €

25.000

residential

9 km. L.P.

4.000

commercial7 MR/S

Central

Greece

320 km. Μ.P.

7,25 km. L.P.

4 MR/S

99 mil. €

38.000

residential

5.000

commercial

…up to 2036 at a glance

6

Supplementary benefits

• the use of innovative technology of compressed natural gas can be provided for supplying urban areas distant from the National Transmission System, such as Livadia, Karpenissi, Orestiada and Amfissa.

• during the 1st phase (2018-2023) of construction of the networks an estimated over 1,600 new jobs is expected to be considered, while its operation will require at least 700 new permanent jobs.

• the annual anticipated growth of the domestic market will be about 0.7 bcm, resulting in 50,000 tons reduction of CO2 emissions

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Supplementary benefits (cont’d)

• Concurrently, domestic gas market increase in our operating areas is expected to boost the national economy, enhance its sociocentric operational characteristics and help reduce air pollution since:

• it reduces energy costs for industries

• it improves living standards by tackling energy poverty

• it provides for unemployment reduction, by lending a helping hand to the professionals associated with the conversion of installations in buildings

• It assists the Greek industries production increase, by restarting abandoned manufacturing lines,

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