PPC announced a 4 billion Equity Increase to finance the new Strategic Plan 2030

The State Electricity Company of Greece. (“PPC” or the “Company”, and together with its subsidiaries, the “PPC Group”), announces its intention to raise funds through an increase in its share capital (the “Share Capital Increase”) of approximately €4 billion through a book-building process to determine the offering price of the issued shares (the “New Shares”), for the purpose of financing the new PPC Group Strategic Plan 2030 (the “Strategic Plan”).

OThe New Shares are proposed to be offered by way of a public offer in Greece (the “Public Offer”) and a private placement to institutional investors outside Greece (the “International Offer”, and together with the Public Offer, the “Combined Offer”). The Increase in the Share Capital is proposed to be made with the exclusion of the right of pre-emption (<span style="font-family:" ping lcg regular marketed offering), however, a priority allocation mechanism is provided for the allocation of the New Shares to existing shareholders of the Company who participate in the Combined Offer.

In particular, the priority allocation in the Public Offer is proposed to be no more than The percentage of existing shareholders’ shareholding in the share capitalof the Company (based on the electronic records of EL.K.A.T. S.A.), as at the date of record (record date) to be determined by the Board of Directors so that, subject to certain conditions, such shareholders will retain at least the same percentage of shareholding in the Company after the Share Capital Increase.

The Company, in its absolute discretion, may apply a similar priority allocation mechanism to the New Shares to be allotted in the International Offer, taking into account, among other criteria, the investment behaviour, trading activity and commitment to the Company, the investment horizon and the early expression of interest in the Share Capital Increase.

Sketch for the implementation of the Share Capital Increase

The Capital Increase will contribute to the financing of the Company’s Strategic Plan, with the aim of: (i) the acceleration of investment in its main geographic markets, (ii) the development of its international presence, (iii) investing in additional areas that the Company considers strategic or complementary to its core business, and (iv) to maintain flexibility for further development opportunities in the energy and technology sectors. The Capital Increase will also enhance the Company’s strategic and operational flexibility through a more efficient and sustainable capital structure.

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In the fast-growing region of Central and Southeastern Europe (“KNAE”), PPC has identified significant factors that create investment opportunities in the region. These include:

• energy scarcity, which can lead to higher capital returns,
• The decommissioning a significant number of thermal plants, which creates a huge opportunity for the development of alternative forms of large-scale generation,
• the region’s lack of interconnections with the rest of Europe, which will continue to keep wholesale prices higher,
• Ukraine’s contribution to the region’s energy shortage, having transformed itself from an energy exporting country to an energy importing country,
• electricity demand in the region is projected to grow significantly over the next decade due to higher GDP growth than in Western Europe, onshoring policies, increasing electrification, the creation of new Data Centers, as well as investments financed by the European Union.

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To seize these opportunities, PPC Group is accelerating its development in the region by investing in energy systems of KNAE and in infrastructure for Data Centers. The PPC Group plans to double installed capacity to 24.3GW in 2030, up from 12.4GW in 2025, significantly increasing new additions per year from 1.4 GW at 2.4 GW, investing in renewable energy systems (“RES”), flexible generation and storage. In particular:

• Greece, PPC aims to add 5 GW by 2030, with total installed capacity increasing to 13.3 GW, despite full de-lignification, which will be completed in 2026, and the shutdown of 40% of oil-based energy production on the Greek islands.
• Romania, the PPC Group aims to triple installed capacity between 2025 and 2030 to reach 5.3GW, through investments in renewables, storage, new gas plants and peakers.
• In the other countries where PPC Group has recently established a presence, namely Italy, Bulgaria and Croatia, the PPC Group aims to significantly increase its investment plan, mainly through the construction of renewable energy and storage plants, as well as natural gas plants, with the aim of reaching an installed capacity of 3.5 GW by 2030.
• In the broader region of the CBA, the Strategic Plan aims to enter new countries, namely Hungary, Poland and Slovakia, through both organic growth and acquisitions, with a target of 2.2GW of installed capacity in renewables and storage by 2030.

By 2030, the PPC Group’s target is for 45% of installed capacity to be outside Greece, while the energy mix will include all modern forms of generation electricity (solar, wind, hydro, natural gas, storage), diversifying the Company’s portfolio both geographically and technologically.

The Strategic Plan includes the development of a DataCenter 300 MW in the former Kozani lignite area in Northern Greece, as the Company is in confidential ongoing negotiations with leading hyperscale providers (hyperscalers), with construction expected to start in 2026 and the associated capital expenditure by PPC amounting to €1.2 billion.

The key financial objectives of the Strategic Plan are:

• EBITDA to €4.6 billion in 2030 from €2.0 billion in 2025,
• Net profits more than tripling to €1.5 billion in 2030 from €0.45 billion in 2025, and
• Dividend per share reaching €1.4 by 2030 from €0.4 in 2024, with an average annual growth rate (CAGR) about 24%.

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According to the Strategic Plan, the PPC Group’s capital expenditure between 2026 and 2030 is projected to reach €24.2 billion, of which 95% is allocated to development projects and 48% outside Greece, thus ensuring risk diversification. In terms of financing, 54% of capital expenditure is expected to be financed through operating cash flow, 31% through net debt increase, while the Equity Increase is expected to finance 15% of capital expenditure. The Equity Increase also aims to ensure that the Net Debt/EBITDA will remain significantly below the 3.5x, in compliance with the Group’s financial covenants under its existing borrowings.

Call for an Extraordinary General Meeting and indicative timetable