Avax S.a. · ATHEX:AVAX
Avax — J&p-Avax — 2nd Annual Greek Roadshow 2007
26 slides from Avax's conference presentation, Oct 3, 2007
Slide 1: Group Presentation at the 2nd Annual Greek Roadshow
Group Presentation at the 2nd Annual Greek Roadshow October 3-4, 2007
Slide 2: J&P-AVAX in a Glance
J&P-AVAX in a Glance • Greece’s 2nd largest contractor and concession operator • Active in 10 countries in Europe, Africa & the Persian Gulf • Formed through the merger of two of Greece’s largest construction companies in 1999, subsequently acquiring two more construction firms in 2000 and 2007 (the
Slide 3: Strategic Investor: The J&P Group
Strategic Investor: The J&P Group J&P Group boasts advanced know-how and a leading position in heavy civil, M&E and energy- related projects in the Middle East, Asia and Africa • Active since the 1940s and incorporated in the Channel Islands in 1961 • The Group has branched out of its core construct
Slide 4: Financial Projection Highlights
Financial Projection Highlights • 2007 revenues are projected at €680 m, including the consolidation of ATHENA SA for a 7-month period • Net profit is projected at €31 m for the year, marginally higher compared to pre-acquisition management guidance due to increased taxation • Despite dilution from
Slide 5: Financial Projections
Financial Projections amounts in € m 2005 2006 chg 2007 E * chg Turnover 357.5 360.3 1% 680 89% EBITDA 35.9 44.7 25% 64 43% ΕΒΙΤDA margin 10.0% 12.4% 9.4% ΕΒΙΤ 26.5 35.0 32% 50 43% ΕΒΙΤ margin 7.4% 9.7% 7.4% Pre Tax Earnings 20.3 28.2 39% 40 42% Pretax margin 5.7% 7.8% 5.9% Net Earnings 12.8 19.5 53
Slide 6: Construction Margin Outlook
Construction Margin Outlook • Greek construction profit margins peaked in 2003 due to the urgency of works towards the 2004 Olympic Games • The sector slowed considerably over the 2004-2006 period due to a stall in the supply of new public projects, as a result of public investment cuts linked to ti
Slide 7: Financial Highlights – H1 2007
Financial Highlights – H1 2007 • The Group incurred abnormally high expenses since 2005 due to probing of various European markets and simultaneous bidding for several large concession-based projects in Greece • The following table illustrates the participation of the construction segment to overall
Slide 8: Work-In-Hand (Sept 2007)
Work-In-Hand * (Sept 2007) €3,2 bn 2,9 0,4 €2,4 bn 2,1 1,1 0,3 0,7 €1,6 bn 1,8 €0,8 bn 1,5 €0,0 bn Signed Projects Projects to be Added in Near- Total Work-In-Hand Term Greece Int'l Markets Total * including Athena SA 8
Slide 9: Acquisition of ATHENA SA
Acquisition of ATHENA SA • J&P–AVAX acquired ~47% of ATHENA in June 2007, subsequently raising its stake to ~76% through open market transactions and a mandatory tender offer • ATHENA has a strong international drive, holds a top- class works certificate for public projects, and boasts significant k
Slide 10: Geographic Diversification
Geographic Diversification • Greece will remain the Group’s main market, but its contribution to overall revenues is targeted at 60% in 2010 from 82% in 2005 and 65% in 2006 • Collaboration with parent J&P Group will continue for projects in the Middle East, Africa and the Persian Gulf, targeting 15
Slide 11: Concession Portfolio (1/2)
Concession Portfolio (1/2) Total J&P-AVAX Concession Construction stake * Term Budget In Operation Athens Ring Road 30.83% €1,244 m 23 y Rio-Antirrio Bridge 19.3% €839 m 42 y Athens Ring Road 35% €50 m 23 y Service Stations Athens Car Parks 20% €36 m 30 y Piraeus Port Car Park 45% €12 m 30 y Lefkada
Slide 12: Concession Portfolio (2/2)
Concession Portfolio (2/2) Total Concession J&P-AVAX stake * Construction Term Budget To be developed (contract signed) : 10% Concession Amman Airport €430 m 25 y 50% Construction 21.25% Concession Maliakos-Kleidi €869 m 30 y 20.7% Construction Elefsina-Corinth-Patras- 21% Concession €2,098 m 30 y P
Slide 13: Concession Pipeline
Concession Pipeline Estimated J&P-AVAX Start of stake * Construction Declared Preferred Bidder (pending contract signature) : • Limassol Marina 31% H1 2008 • Bucharest Car Park 100% H1 2008 Bid submitted (pending tender announcement) : • Larnaca Port & Marina 40% H1 2008 • Paphos-Polis Highway 22.5%
Slide 14: Athens Ring Road (Attiki Odos)
Athens Ring Road (Attiki Odos) J&P-AVAX Participation –Concession 30.83% Hell.Technodomiki 39.2%, Other Shareholders–Concession Pantechniki 20.1%, AttiKat 9.9% Remaining Concession Term 17 y (to 2024) Total Construction Budget €1,244 m Expected Return ROE cap 13.1% Expected Start of Dividend Payment
Slide 15: Rio-Antirrio Bridge
Rio-Antirrio Bridge J&P-AVAX + Athena Participation –Concession 19.3% Vinci 54%, Hell.Technodomiki 15.8%, Other Shareholders–Concession Proodeftiki 6%, Pantechniki 4.9% Remaining Concession Term 32 y (to 2039) Total Construction Budget €839 m Expected Return ROE cap 11.5% Expected Start of Dividend
Slide 16: Maliakos-Kleidi Motorway
Maliakos-Kleidi Motorway J&P-AVAX + Athena Stake –Concession 21.25% J&P-AVAX + Athena Stake -Construction 20.7% Hochtief 35%, Other Shareholders–Concession Hell.Technodomiki 20%, Vinci 13.75%, AEGEK 10% Concession / Construction Term 30 y (to 2037) / 4.5 y Concession / Construction (new + upgrade) 2
Slide 17: Elefsina-Corinth-Patras-Pyrgos-Tsakona Motorway
Elefsina-Corinth-Patras-Pyrgos-Tsakona Motorway J&P-AVAX + Athena Stake –Concession 21% J&P-AVAX + Athena Stake -Construction 23% Vinci 36%, Hochtief 25%, Other Shareholders–Concession Hell.Technodomiki 18% Concession / Construction Term 30 y (to 2038) / 6 y Concession / Construction (new + upgrade)
Slide 18: Real Estate - J&P DEVELOPMENT
Real Estate -J&P DEVELOPMENT • J&P Development is a wholly owned subsidiary of J&P-AVAX • It is a real estate investment and development company, focused on holiday homes and office projects in Greece and residential and commercial developments in the CEE countries, currently Romania and Poland • On
Slide 19: Real Estate - J&P DEVELOPMENT
Real Estate -J&P DEVELOPMENT • J&P development is currently financed as follows: Equity € 8.6 m Liabilities € 19.6 m • As projects mature its capital structure is expected to evolve as follows: Equity € 19 m Liabilities € 36 m • Investments in CEE countries are expected to contribute further gains a
Slide 20: J&P DEVELOPMENT - Development Pipeline
J&P DEVELOPMENT -Development Pipeline Land Built Area Land Project Location (m2) (m2) Value Revenue VERZISORI Street, 7,035 11,250 €1.5 m €16.0 m Bucharest, RO, residential PANDURI Sos, residential 438 3,629 €0.4 m €5.3 m Bucharest, RO (@50%) PIRAEUS Aveneu, 3,220 8,380 €4.8 m €24.7 m Piraeus, GR, o
Slide 21: J&P DEVELOPMENT - Land Investments
J&P DEVELOPMENT -Land Investments Land Built Area Land Development Location (m2) (m2) Value Value WARSAW PERIPHERY, PL, 325,000 100,000 €4.0 m €100 m (@25%) mixed use 21ST KM A1 BUCHAREST – PITESTI HIGHWAY, RO, 101,000 50,000 €2.8 m €100 m commercial use UNIRII Spl. 778 2,350 €1.0 m €5 m Bucharest,
Slide 22: J&P DEVELOPMENT - Projects
J&P DEVELOPMENT -Projects Verzisori Street, Bucharest Panduri Street, Bucharest Piraeus Avenue, Athens Dionysou Street, Athens 22
Slide 23: Stock Performance
Stock Performance Dividend Per Share (in € cents) 40 80% 32 71% 69% 30 28 27 30 60% 20 45% 20 17 40% 11 12 12 10 20% 0 0% 2001 2002 2003 2004 * 2005 * 2006 * * under IAS/IFRS DPS EPS Div Payout Ratio Relative J&P-AVAX Share Price / Index Change 300% 200% 100% 0% Dec-03 Dec-04 Dec-05 Dec-06 J&P-AVAX
Slide 24: Shareholder Base, end-Sept 2007
Shareholder Base, end-Sept 2007 Retail Investors 10.8% J&P Group Institutionals 42.1% -Intl 15.8% 23.3% 9.2% Other Main Shareholders Institutionals 23.9% -Greek 7.4% J&P Group + Other Main Shareholders = 66.0% 24
Slide 25: Investment Points
Investment Points Strong Points : 9Solid construction work-in-hand 9Growing portfolio of lucrative concession projects 9Sizeable work-in-hand, including concession-related works Opportunities : 9Short-listed for further concessions in Greece and abroad 9Booming construction activity and rebounding p
Slide 26: Building the Future – Investor Relations
BUILDING THE FUTURE Investor Relations Angelos Kiosklis 16 Amarousiou-Halandriou Street 151 25, Marousi, Greece tel +30 210 6375592 mob +30 6947 909049 fax +30 210 6375779 email akiosklis@jp-avax.gr