Gek Terna S.a. · ATHEX:GEKTERNA
Gek Terna — H1 2019 Earnings Presentation
26 slides from Gek Terna's earnings presentation, 2019
Slide 1: Management presentation of H1 2019 results
Management presentation of H1 2019 results
Slide 2: Group Overview & H1 2019 Results
GROUP OVERVIEW & H1 2019 RESULTS
Slide 3: Group Structure
Group Structure Construction Energy Production Concessions Real Estate Mining 37.9% 100% 100% 50%1 Real Estate Assets 100% 100% held by Terna SA as well as other 25%1 SPVs 17%2 1. ENGIE owns 50% of HERON I and HERON II; Qatar Petroleum owns 25% of HERON II 3 2. Other shareholders: VINCI (29.9%); HOC
Slide 4: H1 2019 results at a glance
H1 2019 results at a glance In the first half of 2019, the Group generated €147m in EBITDA1 , despite the decrease in revenue Revenue Adj. EBITDA1 Adj. EBITDA1 Margin (vs H1 2018) (vs H1 2018) (vs H1 2018) €566m €147m 26.0% (17.1%) +2.9% +506 bps Net Profit Renewable Energy EBT (vs H1 2018) Adj. EBI
Slide 5: H1 2019 Highlights
H1 2019 Highlights Motorway concessions started contributed dividends to parent – more than € 60m anticipated within FY19. Including Kasteli Airport concession project, annual recurrent dividends from concessions’ portfolio will reach more than 90m annually Total installed capacity reached 1,390
Slide 6: Developments during the period by activity
Developments during the period by activity Activity Revenue €m Comments Ratification of the Heraklion International Airport Concession by the H1 19 86 Greek parliament in May 2019 Epirus Waste Management Unit commenced operations in March 2019 H1 18 85 Concessions Revenue continued its upward
Slide 7: Consolidated Revenue & EBITDA evolution
Consolidated Revenue & EBITDA evolution Concessions and renewable energy partially offset the decline in revenue from construction and also led to improved profitability at EBITDA level Revenue bridge (€m) Adj. EBITDA bridge (€m) 400 450 500 550 600 650 700 100 110 120 130 140 150 160 Group revenue
Slide 8: Segmental analysis
Segmental analysis Revenue Adj. EBITDA Net debt €m H1 2018 H1 2019 Variance % H1 2018 H1 2019 Variance % FY 2018 H1 2019 Variance % Construction 480.5 343.6 (28.5%) 26.5 18.0 (48.3%) (143.1) (44.4) (68.9%) Renewables 104.3 111.9 7.3% 77.8 86.9 10.7% 633.4 696.8 10.0% Concessions 84.6 85.9 1.5% 39.8
Slide 9: Concessions
Concessions
Slide 10: Concessions overview
Concessions overview Kentriki Odos Kasteli Airport Total length: 231km — Equity invested €67m (100%) New airport in Crete — 3,200m runway — Senior bank debt (non recourse): €451m — 71,620m2 terminal Expiration: 2036 — 15m passengers per year Equity: €158.4m (100%); €36m subordinated loan Nea
Slide 11: Construction Activity
Construction Activity
Slide 12: Construction: Increase in construction backlog to €1.8bn
Construction Increase in construction backlog to €1.8bn through new contract wins Construction Outlook Projects completed & under construction Terna SA is the construction arm of GEK Terna Group and is one of the leading construction companies in the country Casino resort Limassol Nikola Tesla Air
Slide 13: Backlog overview
Backlog overview Backlog Largest project: EPC of lignite fired power plant in Ptolemais (€538.3m) €1.3b Other projects include the construction of motorways, airports, office buildings and power projects for clients such as the Ministry of Public Greece Works Largest Project: Execution of buil
Slide 14: Energy Production
Energy Production
Slide 15: Energy Production – Renewable Energy (TERNA Energy)
Energy Production – Renewable Energy (TERNA Energy) Largest renewable energy platform in Greece with substantial operations abroad Overview Installed capacity evolution (MW) TERNA Energy is the largest renewables energy group in Greece (607 1,3901 MW) with significant activities in the USA (651 MW
Slide 16: Overview of current portfolio and future pipeline
Overview of current portfolio and future pipeline Organic growth and value creation with a focused strategy and attractive pipeline Sales by Business Unit (H1 2018) Historical Capital Expenditure (€m) 3%3% 229 13% 6% 146 109 113 86 75% 58 Energy from RES Construction Electricity Trading Waste Manage
Slide 17: Heron I & Heron II
Heron I & Heron II The company is engaged in thermal energy production as well as electricity distribution through its participation in Heron I and Heron II Overview of thermal plants Project Status MW Type HERON I In operation 147 OCGT HERON II In operation 435 CCGT HERON I HERON II Independent e
Slide 18: Real Estate
Real Estate
Slide 19: Real Estate portfolio with gross asset value of €93.4m
Real Estate Portfolio of real estate assets with a total gross asset value of €93.4m Gross Asset Value Overview GEK Terna is engaged in Real Estate Value (€m) % development - the company holds a differentiated Parking Spaces 0.9 1.1% portfolio in Greece and abroad Warehouses - Industrial Buildings
Slide 20: Mining
Mining
Slide 21: Terna Mag
Terna Mag Fully integrated magnesite producer Overview Magnesite applications (CCM) TERNAMAG is engaged in the production of magnesite related Industrial Construction Ceramic Tiles Panels products such as CCM (Caustic Calcined Magnesium), DBM (Dead Floors Burned Magnesium) and other Magnesium-rela
Slide 22: Appendix – Financial Data
Appendix – Financial Data
Slide 23: Group Balance Sheet
Group Balance Sheet BALANCE SHEET FY 2018 H1 2019 ASSETS Intangible assets 802.7 810.5 Tangible assets 1,332.7 1,400.8 Investment property 41.0 40.6 Participations and other long-term financial assets 467.7 489.6 Inventories 52.8 54.1 Trade receivables 503.7 395.6 Cash and cash equivalents 523.2 504
Slide 24: Group P&L
Group P&L STATEMENT OF COMPREHENSIVE INCOME H1 2018 H1 2019 Continued operations Revenues 683.2 566.4 Cost of Sales (561.9) (448.5) Gross Profit 121.3 117.8 Administrative and distribution expenses (31.5) (34.9) Research and development expenses (1.2) (1.5) Other income/(expenses) (3.9) 2.0 Net fina
Slide 25: Group Cash Flow
Group Cash Flow STATEMENT OF CASH FLOWS H1 2018 H1 2019 Cash flows from operating activities Profit before tax 32.0 52.2 Plus/less adjustments for: Depreciation 54.9 59.1 Grants amortization (4.0) (4.1) Provisions 2.4 (0.8) Interest and related revenue (4.6) (4.6) Interest and other financial expens
Slide 26: 85, Mesogeion Ave., Athens 26, Greece
85, MESOGEION AVE., ATHENS 115 26, GREECE T. +30 210 6968000 —_-F. +30 210 6968098-99 Email: info@gekterna.com GEK TERNA GROUP OF COMPANIES www.gekterna.com