Admie Holdings Sa · ATHEX:ADMIE

Admie Holdings Sa — ADMIE (IPTO) Holding — H1 2017 Earnings Presentation

23 slides from Admie Holdings Sa's earnings presentation, September 2017

  1. Slide 1: ADMIE (IPTO) Holding S.A. 1H'17 earnings presentation

    ADMIE (IPTO) Holding S.A. 1H’17 earnings presentation September 2017

  2. 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

  3. Slide 3: Contents

    Contents 1 1H’17 results 2 Appendix ADMIE Holding structure IPTO key financial items

  4. Slide 4: Navigating a transitional year toward transformational targets in IPTO's new era

    ▪ Navigating a transitional year toward transformational targets in IPTO’s new era 4

  5. Slide 5: IPTO 1H'17 highlights

    IPTO 1H’17 highlights ▪ Electricity transmission +3.3% yoy ▪ Net production +14.1% yoy ▪ IPTO system rent -7.3% yoy on 25.4TWh Demand well off-trough levels lower international interconnection ▪ 2Q’17 Net profit at €17.6M, -1.5% yoy ▪ Net debt €240M on cash dividend & €92.8M Reported EBITDA incremen

  6. Slide 6: IPTO 1H'17 selected items

    EUR M IPTO 1H’17 selected items Balance sheet 2016 6M’17 P&L 1H’16 2H’16 1H’17 Chg yoy System rent 130.8 94.7 121.2 -7.3% Non-current assets 1,617.4 1,607.4 Total revenues 144.4 104.2 131.9 -8.7% Current assets 1,237.1 1,388.7 Reversals/(Provisions & 2.1 -9.4 0.5 -78.7% Of which: Cash & equiv. 294.1

  7. Slide 7: ADMIE Holding selected items

    EUR M ADMIE Holding selected items P&L 1H’17 Income from Affiliate Income from Affiliate 9.0 EBITDA 8.2 51% 9.0 Net profit Operating Income 8.2 Apr 1- Jun 30 49% Net profit 8.2 32.2 Cash flows 1H’17 CF from Operations -0.6 CF from Investments 0.0 IPTO Net profit ADMIE Income 1H'17 from Affiliate CF

  8. Slide 8: ADMIE Holding selected items

    EUR M ADMIE Holding selected items Balance sheet 6M’17 Non-current assets 500.8 Non-current assets 6M’17 Carrying value of Current assets 0.3 491.8 Affiliate IPTO, BoP Of which: Cash & equiv. 0.3 ADMIE Income from Affiliate 9.0 Total Assets 501.1 Carrying value of 500.8 Affiliate IPTO, EoP Equity 50

  9. Slide 9: Demand & transmission

    EUR M Demand & Underlying demand*, TWh Total demand, TWh 26.0 30.0 transmission 25.5 25.3 +3.3% 25.4 25.0 0.5 0.0 0.5 0.0 Losses yoy 25.0 24.6 20.0 24.5 24.5 Pumping 24.1 15.0 24.1 24.9 24.0 10.0 Underlying 23.5 5.0 demand 23.0 0.0 6M'13 6M'14 6M'15 6M'16 6M'17 6M'16 6M'17 ▪ Strongest 1H demand in U

  10. Slide 10: Supply & transmission

    EUR M Supply & Supply mix, TWh Net imports Net imports/(exports), GWh 30.0 1,200 transmission 25.0 24.6 25.4 Off-grid 1,000 Turkey Bulgaria 3.4 Other 800 5.3 2.4 20.0 600 FYROM 2.5 2.7 RES* 15.0 2.6 1.7 400 2.5 Albania 7.2 200 10.0 Hydro 5.2 0 Italy 5.0 NatGas -200 6.5 8.0 Jan-16 Mar-16 May-16 Jul-1

  11. Slide 11: Revenue decline driven by System imports, gradually bottoming out

    EUR M Revenue IPTO Revenues decline driven 2.5 3.0 3rd party sales 13.6 by System 10.7 Other sales imports, 130.8 121.2 Transmission gradually system rent bottoming out 1H'16 1H'17 ▪ Total 1H’17 revenues IPTO Quarterly revenues €131.9M, -8.7% yoy 1.7 0.8 3rd party sales ▪ Drop mainly on lower 1.0 2.

  12. Slide 12: EBITDA drop due to system rent

    EUR M EBITDA drop IPTO EBITDA 103.3 92.8 due to system EBITDA rent Total provisions/ 101.2 92.3 (reversals) -2.1 -0.5 1H'16 1H'17 ▪ EBITDA -10.2% yoy, IPTO Provisions IPTO OpEx* driven by System Rent; -2.1 -0.5 44.9 41.2 3rd party 3rd party contracts & Provisions/ 2.5 costs 2.8 reversal of provision

  13. Slide 13: Net profit driven by EBITDA drop

    EUR M Net profit IPTO Net profit ladder driven by 39.4 3.3 32.2 0.2 EBITDA drop 10.6 0.0 Net profit EBITDA D&A Financials, Tax Net profit 1H'16 net 1H'17 ▪ Net profit decline of IPTO Quarterly net profit 18.1% yoy ▪ Drop of 1.5% yoy in 21.5 2Q’17, mitigated by cost 17.9 17.6 discipline and positive

  14. Slide 14: Higher Net Debt on scheduled tax & dividend payments

    EUR M Higher Net IPTO Cash flow ladder 92.8 64.6 Debt on 73.1 54.3 0.0 scheduled tax 57.1 27.1 18.8 & dividend 92.9 Dividend paid EBITDA 1H'17 adjustments Tax paid Subsidies Interest, net FCF post- FCF pre- Capex interest interest payments Cash ▪ Net debt €239.5M, up IPTO Interim dividend '17 from €

  15. Slide 15: Solid cash flow generation

    EUR million 1H’16 EUR M 1H’17 Solid cash flow EBITDA 103.3 92.8 generation Chg in WC, non-cash Provisions & Other 52.3 64.6 Tax paid 0.0 -57.1 Interest paid, net -11.4 -18.8 Cash Flow from Operations 144.2 81.4 ▪ Solid cash generation Subsidies 0.1 0.0 before tax & interest Capex -96.8 -27.1 ▪ Tax r

  16. Slide 16: IPTO 5yr Business Plan

    IPTO 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* Appro

  17. Slide 17: Appendix

    Appendix ADMIE Holding structure IPTO key financial items

  18. Slide 18: ADMIE Holding

    ADMIE Holding Trading vehicle for ADMIE (IPTO) ▪ ATHEX: ADMIE ADMIE (IPTO) ADMIE Holding Bloomberg: ADMIE GA Reuters: ADMr.AT ▪ 232,000,000 common shares 24% ▪ Debut price €2.12 Implied Mcap €491.8M 51% 51% 49% § Owner of 51% stake in 25% “Independent Power Transmission Operator S.A.” (ADMIE/IPTO) A

  19. Slide 19: IPTO P&L items

    IPTO P&L items EUR million 2014 2015 2016 1H’17 System rent 242.3 239.7 225.5 121.2 Total revenues 312.6 264.6 248.6 131.9 Reversals/ (Provisions & Impairments) 0.0 -25.1 -7.3 0.5 EBITDA 183.8 154.8 152.0 92.8 As % of revenues 58.8% 58.5% 61.1% 70.3% Operating Income 130.6 93.0 88.8 60.9 Net profit/

  20. Slide 20: IPTO Balance sheet items

    IPTO Balance sheet items EUR million 2014 2015 2016 1H’17 Non-current 1,537.7 1,597.8 1,617.4 1,607.4 assets Current assets 1,089.1 1,151.6 1,237.1 1,388.7 Total Assets 2,626.8 2,749.4 2,854.5 2,996.1 Total Equity 1,028.0 1,014.0 898.1 930.3 Interest-bearing 445.1 490.2 498.1 494.9 liabilities Non-c

  21. Slide 21: IPTO Cash flow items

    IPTO Cash flow items EUR million 2014 2015 2016 1H’17 Cash from 203.5 221.1 207.5 100.2 Operations* Cash from -91.3 -120.8 -61.5 -27.1 Investments** Interest, net -29.6 -31.2 -30.6 -18.8 New debt, net 5.9 35.9 8.0 0.0 Dividend paid -19.0 -35.0 -17.8 -92.9 Change in 69.5 70.1 105.7 -38.7 Cash *Net of

  22. Slide 22: IPTO Free cash flow

    IPTO Free cash flow EUR million 2014 2015 2016 1H’17 EBITDA 183.8 154.8 152.0 92.8 WC, Provisions 23.7 66.4 65.5 64.6 & Other Tax paid -3.9 0.0 -10.0 -57.1 Interest, net -29.6 -31.2 -30.6 -18.8 Cash Flow from 174.0 190.0 177.0 81.4 Operations Subsidies 1.1 17.8 80.6 0.0 Capex -92.4 -138.6 -142.1 -27

  23. Slide 23: 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 23

ADMIE (IPTO) Holding — H1 2017 Earnings Presentation on 6ix