Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — ADMIE (IPTO) Holding — Non-Deal Roadshow (November 2017)
41 slides from Admie Holdings Sa's roadshow presentation, November 2017
Slide 1: ADMIE (IPTO) Holding S.A. London Roadshow
ADMIE (IPTO) Holding S.A. London Roadshow November 2017
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements that involve risks and uncertainties. These statements may generally, but not always, be identified by the use of words such as “outlook”, “guidance”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “target” and similar expressions to
Slide 3: Contents
Contents 1 ADMIE Holding 2,3 IPTO company overview & description 4,5 IPTO Business Plan & Regulation 6 IPTO financial summary 7 Appendix
Slide 4: Owned and maintained High-Voltage lines across Greece
11,500km Owned and maintained High-Voltage lines across Greece 11,000km the distance between Lisbon, Portugal and Hong Kong, China €1.52B Regulated Asset Base* €1.05B Cumulative 5yr Cash from Operations* *As at 31 Dec 2016; source: ADMIE (IPTO)
Slide 5: Investment proposition
Investment proposition § Natural monopoly in Greece § Growth in the regulated asset base 11,500km of HV transmission lines Getting back to RAB growth, 2017 to 2021 § Recovery in domestic demand § Rational regulatory environment Consumption of 52TWh LTM at +2% yoy Authority prioritizing asset gro
Slide 6: ADMIE Holding
1. ADMIE Holding Trading vehicle for ADMIE (IPTO)
Slide 7: ADMIE Holding S.A.
ADMIE Holding S.A. § Investor mix ▪ ATHEX: ADMIE ADMIE Holding** ADMIE (IPTO) Bloomberg: ADMIE GA Reuters: ADMr.AT 10.8% ▪ 232,000,000 common shares 24% § Owner of 51% stake in 51.1% 51% “Independent Power 38.1% 25% Transmission Operator S.A.” (ADMIE/IPTO) ADMIE Holding § Affiliate ADMIE (IPTO) S
Slide 8: Key milestones
Key milestones August May February by November 2H’18 TSO legislation Full Ownership ADMIE Holding RAE: new regulatory Crete (4001/2011) Unbundling law est. review 2018-21 interconnection (4389/2016) project kick off 2011 2012 2016 2017 2018 March December June 1H’18 ADMIE (IPTO) SGCC bid for ADMIE H
Slide 9: Corporate governance
Corporate governance Shareholder agreement in place ADMIE Holding ADMIE (IPTO) ▪ AGM appoints Chairman & CEO ▪ Hellenic Republic (HR) Proposes Chairman & CEO ▪ BoD: 5 members; ▪ State Grid Corp. of China (SGCC) 2 independent, 3 non-executive Approves Chairman & CEO; appoints Deputy CEO, CFO ▪ ADMIE
Slide 10: IPTO overview
2. IPTO overview Natural monopoly fully unbundled in 1H’17
Slide 11: Hellenic Electricity Transmission System
Hellenic Electricity Transmission System Transmission lines (km) 8,157 2,863 244 0 31 161 39 15 0 400kV 150kV 66kV Overhead Submarine* Underground 21 298 Substations 400/150kV Substations 150/20kV *Excludes 160km of Greece-Italy interconnection; source: ADMIE (IPTO) as at 31 Dec 2016 11
Slide 12: ADMIE (IPTO) S.A.
ADMIE (IPTO) S.A. Greek Transmission System Operator (TSO) Financial highlights 2016: § Regulated monopoly Regulated revenues at c90% in 2016 mix €249M Regulated & other revenues § Regulated by Regulatory Authority for Energy (RAE) €152M Reported EBITDA 4yr regulatory period; 2017 WACC at 7.3% (re
Slide 13: Solid cash flow generation
EUR M 5yr history Solid cash flow generation ▪ Cumulative Cash Flow from IPTO Cash ladder 2011-16 Operations €1.05B 1,046.1 ▪ Cumulative Capex €600M Gross of subsidies -494.4 135.0 -92.9* 294.2 -141.0 ▪ c50% Free Cash Flow payout* 21.6 -153.8 -119.3 Post-interest in 2012-16 Cash 2011-end Operations
Slide 14: 5yr Business Plan
5yr Business Plan EUR million 2016 2017 2021 Regulated RAE: RAE: 1,516.0 1,729.0 Asset Base (RAB) new regulatory period Investments Approximately €1 billion (System & Users) 142.1 cumulative 5yr Improvement from EBITDA 152.0 2016 levels Improvement from Net profit/(loss) -2.7 2016 levels* Approximat
Slide 15: IPTO description
3. IPTO description 6yrs of legal unbundling, 1st year of ownership unbundling
Slide 16: Transmission lines 11,000km overhead; 500km submarine & underground
Hellenic Electricity Transmission § 10GW capacity-equivalent demand § 52TWh market demand (LTM Sep’17) ▪ Interconnected Greek mainland & § Down from 57TWh peak in 2008 islands system in High Voltage § Recovery at +2.7% yoy in 9M’17 (150kV) and extra-HV (400kV) § Back to 2010 levels ▪ Backbone o
Slide 17: Greek electricity transmission on the map
§ Greek electricity transmission on the map § Stands out on cross-border trade Pan-European top-10 on transmission Top-5 on net import balance lines length* -60.0 -50.0 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 France Italy Italy Finland Spain Hungary Germany Greece 8.8TWh Sweden Austria Bul
Slide 18: Market thirsty for electricity
Underlying demand Market thirsty for electricity 70,000 GWh 65,000 2016-27 CAGR +2.3% +1.9% +1.5% 60,000 § IPTO 2027 market estimates**: 55,000 52,247* § System demand toward 59-64TWh 50,000 45,000 § Growth at 1.5% to 2.3% CAGR 40,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ba
Slide 19: What participants are saying
What participants are saying [IPTO] completes the The committee set up by RAE […] interconnection of Cyclades and and the proposals seem to indicate commences the interconnection that other islands in Cyclades […], of Crete, first with the as well as most of the larger islands Peloponnese in 2020 an
Slide 20: IPTO Business Plan 2017-21
4. IPTO Business Plan 2017-21 Detailed roadmap in the new regulatory period
Slide 21: Action plan
Action plan New management since mid-’17 Revamp Refinance Grow 1 Revamp organization Well-prepared 2 Refinance & formulate funding strategy plan with visible 3 Execute on transmission growth earnings impact Source: ADMIE (IPTO) 21
Slide 22: €1B investment plan
€1B investment plan Leaning toward islands; Cyclades & Crete skewed in ’19-’21 Substations Cumulative Capex mix 2017-21 Transformers Transmission Interconnection 5% Cyclades 15% Other 18% Crete Southern Gr Cyclades 19% Various Crete 45% Southern Greece Users Various Users Source: ADMIE (IPTO) 22
Slide 23: Capex, EBITDA and net profit outlook
EUR M Transmission System1 IPTO Cumulative 5yr Capex2 at least 2% nearly 2x ca.1B 514 594 Market (TWh) CAGR Demand 2021 Capex 2012-16* Capex 2017-21* IPTO Regulatory EBITDA IPTO Net profit ladder3 D&A Financials OPEX net RAB -OPEX -D&A -Tax growth & re- muneration EBITDA growth ca. Allowed Revenue 1
Slide 24: Fully funded investment plan & dividend payments
ADMIE (IPTO) Business Plan 2017-21 Existing Cash >15% Dividend4 >15% New debt2 >15% Interest <15% Cash flow1 c70% Capex3 c70% Sources Uses Fully funded investment plan & dividend payments 1Post-tax/working capital; 2net of amortization; 3net of disposals/subsidies; 4in line with stated policy; sourc
Slide 25: Secured dividend growth; unchanged payout as baseline
ADMIE (IPTO) Cash flow ladder 2017-21 Fully funded investment plan Fully funded dividend Disposals & -Tax Subsidies New debt, -Interest net CF from -Capex Operations* ca. €1B Existing -Dividend cash CF Tax Interest New debt, Disposals & Capex Existing Dividend Operations* net Subsidies cash Secured
Slide 26: ADMIE Holding financial highlights
EUR M ADMIE Holding Financial highlights EUR million 1H’17 ADMIE Holding dividend outlook* Income from Affiliate 9.0 over 90% pass- through EBITDA 8.2 51% 25.5 50% 50.0 Operating Income 8.2 payout 49% ca. Net profit 8.2 100.0 Equity 500.0 IPTO Net Dividend ADMIE ADMIE Net debt 0.5 profit 2021 stake
Slide 27: Regulation
5. Regulation Regulatory Authority for Energy (RAE) independent body
Slide 28: Regulation
Regulation 4yr period 2018-21 supersedes 2015-17 Regulatory overview Prior Regulated Asset & Return 8.5% 8.5% ▪ Regulated Asset Based (RAB) 2,000.0 7.5% 7.3% 9.0% 8.0% Maintenance & development investments + 7.0% 1,500.0 Working Capital; no impairment/revaluation 6.0% 5.0% ▪ Allowed rate of return/W
Slide 29: Prior regulatory period 2015-17
EUR million 2015 2016 2017 RAB 1,372.4 1,516.0 1,729.0 x WACC (real, pre-tax) 8.5% 7.5% 7.3% = Allowed remuneration 116.7 113.7 126.2 + Authorized OPEX 82.0 81.1 80.1 + Regulatory Depreciation 56.0 55.4 54.7 = Allowed revenue 254.7 250.2 261.0 Prior regulatory period 2015-17; visible & predictable S
Slide 30: IPTO financials
6. IPTO financials Track record on cash generation Section has been amended from initial IR material to present 9M’17 summary financial results
Slide 31: IPTO summary
EUR M IPTO summary A period of under-investment, affected by lower system rent IPTO Turnover* IPTO EBITDA cash conversion 39.1 71.9 236.1 237.8 50.9 63.3 17.6 23.5 6.4 5.1 23.7207.4 221.1 217.5 19.4 18.5 117.4 66.4 65.5 18.1 178.0 3.9 39.9 14.4 268.5 252.0 183.8 242.3 239.7 225.5 174.5 154.8 152.0 1
Slide 32: Network investment & cash dividends in focus
EUR M IPTO Investments IPTO Dividends 92.9 138.6 142.1 137.1 39.1 35.0 92.4 83.7 80.6 19.0 17.8 48.0 8.5 17.8 1.1 1.9 2012 2013 2014 2015 2016 9M'17 2012 2013 2014 2015 2016 9M'17 Capex Subsidies Dividend paid Special dividend to PPC Network investment & cash dividends in focus Source: ADMIE (IPTO)
Slide 33: Solid Net debt reduction; adequate liquidity profile
EUR M IPTO Net Debt evolution IPTO Debt maturity profile* 500 7.8 450 400 350 300 250 Gross 2.3 197.1 debt 79.8 200 150 90.0 100 10.0 40.0 16.0 9.0 9.0 9.0 9.0 9.0 50 Cash 10.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 >2026 0 2011 2012 2013 2014 2015 2016 9M'17 Syndicated bond EIB Solid Net
Slide 34: IPTO Financial 9M highlights
IPTO Financial 9M highlights EUR million 9M’16 9M’17 Chg yoy 9M’17 summary System rent 172.7 180.4 4.5% ▪ Electricity transmission +2.7% yoy Total revenues 190.6 194.8 2.2% ▪ Strongest 9M demand in five years EBITDA 125.9 138.1 9.7% ▪ Losses remain at low 2% in demand mix ▪ EBITDA reversal from prio
Slide 35: Appendix
Appendix State Grid Corporation of China Greek electricity market IPTO key financial items
Slide 36: SGCC footprint & key economic interests
SGCC footprint & key economic interests § State Grid Corp. of China (SGCC) World’s largest electric utility 900k km transmission lines in China CDP Reti ADMIE SGCC Global top2 Corp. on revenues* § ADMIE (IPTO) in Greece REN 24% in 2017 TransCo § CDP Reti (TERNA S.p.A.**) in Italy 35% in 2014 § R
Slide 37: Greek electricity market
Greek electricity market Market overview Demand/Supply balance, TWh ▪ Gross mandatory pool (algorithm) 1.1 ▪ Multiple generation inputs into Pool 2.2 Losses Commercial 11.0 ▪ Central dispatch of generation imports ▪ Day Ahead Schedule (DAS) to Commercial exports ensure adequate reserves 50.1 42.4 Pr
Slide 38: Greek electricity market demand trend & supply mix
§ Greek electricity market demand trend & supply mix Underlying demand trend** Supply mix Net imports 15.0% Cumulative Off-grid 10.0% chg yoy 19% 17% 13% 9% 10% Other 5.0% 9% 11% 2.7% 10% 11% 9% 7% RES* 0.0% -0.3% 10% 14% 24% 29% Hydro -5.0% -10.0% 38% NatGas Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 39: Greece swiftly catching up with European markets on Renewables
§ Greece swiftly catching up with European markets on Renewables Top-15 Renewable Leading Solar energy Top-10 Wind energy generation share* generation share** generation share 0% 20% 40% 60% 80% 100% 0% 2% 4% 6% 8% 10% 0% 10% 20% 30% 40% 50% Norway Lithuania Denmark Austria Greece 9% Lithuania Croa
Slide 40: IPTO selected items
EUR M IPTO selected items Balance sheet 2015 2016 6M’17 P&L 2015 2016 1H’17 System rent 239.7 225.5 121.2 Non-current assets 1,597.8 1,617.4 1,607.4 Total revenues 264.6 248.6 131.9 Current assets 1,151.6 1,237.1 1,388.7 Reversals/(Provisions -25.1 -7.3 0.5 Of which: Cash & equiv. 188.4 294.1 255.4
Slide 41: Contact
Contact For additional information please contact ADMIE Holding Investor Relations: ▪ Tel: +30 210 3636 936 ▪ E-mail: office@admieholding.gr or visit: www.admieholding.gr 41
ADMIE (IPTO) Holding — Non-Deal Roadshow (November 2017) on 6ix