Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Investor Presentation (May 2022)
43 slides from Admie Holdings Sa's investor presentation, May 2022
Slide 1: Corporate Presentation
Corporate Presentation Corporate Presentation June 2020 1 May 2022
Slide 2: Agenda
Agenda 1. Companies’ Overview & Regulation 2. Investment Program Summary 3. Financial Highlights 4. GRID Telecom 5. Appendix
Slide 3: 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 4: ADMIE at a glance
ADMIE at a glance ▪ Sole Transmission System Operator (TSO) in Greece Transmission Distribution Generation Supply Employees1 Transported Energy 1.607 52.4 TWh Network* RAB 12.393km *11,968 km is the distance between Paris, France and Christmas Island, Australia Net Profit1 €2.0bn €69,4m 1FY 2021 4
Slide 5: Investment Proposition
Investment Proposition Natural monopoly in Greece 12,393 km of HV transmission lines Boosting dividend returns Reduced borrowing costs and established minimum 50% earnings Investments payout c. €5b of cumulative investments from 2020 to 2030 Rational regulatory Leading TSO as Strategic environment I
Slide 6: ADMIE Holding & IPTO S.A. at a glance: Overview
1. ADMIE HOLDING at a glance& IPTO S.A. Overview 6
Slide 7: Shareholder Structure
Shareholder Structure Hellenic Silchester & Other Inst. Private Republic Funds Investors Investors 51.1% 9.96% 23.2% 15.7% 31.12.2020 Athens Stock Exchange ATHEX: ADMIE 51.0% Bloomberg: ADMIE GA Reuters: ADMr.AT 232,000,000 common shares 25.0% 24.0% 7
Slide 8: Regulatory Framework
Regulatory Framework Stable regulatory No consumer Allowed framework credit risk Revenue ▪ 4 year regulatory period during ▪ Revenues are not depended ▪ Allowed revenues assure which the respective on state payments remuneration of cost of capital parameters remain stable and cost of debt ▪ Transmis
Slide 9: Remuneration scheme
Remuneration scheme Current Regulatory Framework New Regulatory Framework Regulatory Period Four years for period 2018-2021 Regulatory Period 4-Year period for 2022-2025 Regulatory Asset Base Undepreciated invested capital + Regulatory Asset Base Undepreciated invested capital + WiP + maintenance/ (
Slide 10: Update Regulatory Framework
Update Regulatory Framework IPTO’s Proposal on Consultation for WACC & AR started Regulatory Period 2022-25 Allowed Revenue RAB (by 2025) (by 2025) End May ‘21 RAE Consultation for New Methodology € 540.7 million € 2,384.3 million Beginning July RAE Decision for New Methodology Beginning IPTO’s Prop
Slide 11: Investment Program Summary
2. Investment Program at a glance Summary 11
Slide 12: Key milestones in 2021
Key milestones in 2021 Ariadne Interconnection Crete- Peloponnese International Interconnection Interconnections Interconnection of Cyclades • The second interconnection • The technically demanding • Phase IV has been included • Announced tender for the of Crete with the mainland is interconnection
Slide 13: Major Projects 2021-2030
Major Projects 2021-2030 Cyclades Cyclades Cyclades Skiathos Cyclades Dodecanese Phase A Phase B Phase C Phase D 20 2018 2019 2020 2021-22 2023 2024 2025-27 Peloponnese Crete Phase I Crete Peloponnese North Corridor A’ Phase II Corridor B’ Aegean 13
Slide 14: Network Development Plan 2022-2031
€m Network Development Plan 2022-2031 Expected Total project ID Project description commissioning cost M€ Major Project Locations 1 Corridor A’ 400 kV to Peloponnese (OHL 2022 117 Megalopoli – Patras – Acheloos) 2 Cycladic Islands Ιnterconnection (Phases B completed and C) 10 3 Cycladic Islands Inte
Slide 15: Crete – Attica Interconnection
Crete – Attica Interconnection Attica Peloponnese ✓ The project is considered Project of Major Importance (PMI), so a Premium rate of return can be approved by the regulator II DC 2x500MW (RAE), on top of the normal rate of return. I AC 2x200MVA 132km 340km submarine The percentage of the premium re
Slide 16: Financial Overview
3. Financial at a glance Overview 16
Slide 17: IPTO Group FY21 Highlights
IPTO GROUP FY21 Highlights TOTAL REVENUES EBITDA Net PROFIT €286.0 m €190.3 m €69.4m FY’20 €287.4m (-0.5%) FY’20 €210.6 m (-9.6%) FY’20 €84.9m (-18.3%) ✓ Slight increase by 1.2% on rent; the ▪ The positive effect of EUR 8.8 million amount due will be recovered in 2023 ✓ Maintain Strong profitability
Slide 18: Profitability
Profitability EBITDA EBIT Net Income 66.5% 73% 31% 42% 24% 29.5% Reported Reported Reported 210,6 122,1 84,9 190,3 89,0 69,4 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 67% 71% 31% 40% 24% 28% Adjusted Adjusted Adjusted 202,9 191,1 114,5 81,5 89,8 67,7 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY
Slide 19: EBITDA Bridge
EBITDA Bridge Higher by 13.3%, due to the Revenue from other Negatively affected by expenses for operations the operation of SeleNe-CC while also expenses related to COVID-19 *RAE decision 492/2021 19 Amounts in €’m
Slide 20: FY21 Adjusted EBT evolution
FY21Adjusted EBT evolution Key figures Adjusted EBT (€m) • Revenue Combined effect due to decrease of Revenues from transmission system rent (net) by €2.9m and an (29,2%) increase of Revenue from other operations by €1.8m . Personnel Expenses • Have remained relatively stable, with a small increase
Slide 21: Cash Flow & Net Debt
Cash Flow & Net Debt Key figures Cash Flow evolution (€m) Net Debt Leverage € 663.9 million 3.5x Net Debt/adj. EBITDA* Coverage ratio Leverage 10x Interest coverage 0.47x Net Debt/Equity ratio** *adj. EBITDA FY 2021 **EBIT/Interest Expense 21 | Solid balance sheet in strong position to support inves
Slide 22: ADMIE Holding FY21 Highlights
ADMIE HOLDING FY21 Highlights €35.4m €601k +43.4% y/y Share of -18.3% y/y Reported Investments (Income) OPEX €157k €0.068 -20% y/y -40.5% y/y Net Financial Dividend Income Per Share 22 | Active cash management benefits offset higher OPEX
Slide 23: Dividend Policy
Dividend Policy ✓ Average dividend yield since listing ~4% 0,0289 0,0179 0,0285 ✓ Bound to distribute 0,089 0,0854 based on a minimum 0,068 0,0316 0,06 payout ratio of 50% 2018 2019 2020 2021 2022 (IPTO SA) Interim Dividend Remaining Dividend 2019 2020 2021 2022 ✓ ADMIE Holding SA is Dividend per sh
Slide 24: IPTO 2021-2025 outlook
IPTO 2021-2025 outlook EUR 2020 2025 Comments Regulated €1.9B ~€3.3B (2023-25) Increase 61% Asset Base (RAB)* Investments Ariadne Interconnection & 4th €453M ~ €2.4B (2021-25) (System & Users) Phase of Cyclades included Consolidated with Ariadne EBITDA* €200M ~ €370M (2025) th Interconnection & 4 Ph
Slide 25: GRID Telecom at a glance
4. GRID at a glance Telecom 25
Slide 26: Network footprint
Network footprint o Fiber optic network (terrestrial and submarine) exceeds 4.000km throughout Greece o Reaching already all neighborhood countries o The expansion of the fiber optic network will exceed 6.000Km throughout Greece in the next years o Grid Telecom’s own network is planned to expand in
Slide 27: Services
Services Provision of Dark Fiber through IPTO’s terrestrial and submarine network infrastructure combining Grid-Telecom’s terrestrial network part ✓ Fiber optic network (terrestrial and In the near future Grid Telecom will be submarine) exceeds 4000km proving collocation services to mobile throughou
Slide 28: Our Vision
Our Vision ✓ Submarine cables transfer 99% of internet traffic. ✓ Many local operators (East Europe) seek routes to major gateways (Athens and Chania) ✓ Balkans are currently under- served and by-passed by the main fiber corridors connecting Asia, Africa and Western Europe ✓ IPTO could provide acces
Slide 29: Winners of UFBB tender
Winners of UFBB tender • Greece's UltraFast BroadBand (UFBB) Infrastructure Scheme GRID-TERNA 1. Hellenic Telecommunications Organization – LOTs 1, 3, 7 2. Joint Venture “GRID Telecom & TERNA Energy – LOTs 2, HTO 4, 5, 6 • 4.220 OCCA (Outdoor Cabinet Coverage Area) (435.222 connections) • 1.022 RSCA
Slide 30: Thank you
Thank you For additional information please contact ADMIE Holding Investor Relations Tel: +30 210 3636 936 E-mail: ir@admieholding.gr or visit: www.admieholding.gr
Slide 31: Appendix
Appendix IPTO key financial items/ Regulatory Framework
Slide 32: IPTO selected items
IPTO selected items Group Group Balance sheet Profit & Loss Statement 31.12.2021 31.12.2020 31.12.2021 31.12.2020 Chg % yoy Non-current assets 2,799.8 2,489.6 System rent 270.4 273.6 -1.2% Current assets 513.9 597.5 Total revenues 286.0 287.4 -0.5% Reversals/(Provisions & Impairments) -2.0 -0.2 792.
Slide 33: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 31.12.2021 31.12.2020 P&L 31.12.2021 31.12.2020 Non-current assets 742.7 722.6 Income from Affiliate 35.4 43.3 Current assets 4.2 7.2 EBITDA 34.8 42.9 of which: Cash & equiv. 4.0 7.0 Operating Income 34.8 42.9 Total Assets 747.0 729.8 Net profit 35.0 43.2 C
Slide 34: Regulatory overview
€m Regulatory overview Year 2018 2019 2020 2021 Average RAB 1,449.8 1,684.5 1,941.3 2,059.8 x WACC (real, pre-tax) 7.0% 6.9% 6.5% 6.3% = Allowed remuneration 101.5 116.2 126.2 129.8 + Authorized OPEX 77.3 77.9 78.5 79.1 + Regulatory Depreciation 55.2 58.3 76.4 77.1 = Allowed revenue 234.0 252.4 281.
Slide 35: Regulatory period 2018 – 2021
Regulatory period 2018 – 2021 €m Regulated Asset & Rate of Return Allowed Revenue build out 2.500,0 8,0% 7,0% 6,9% 6,5% 6,3% 7,0% 1,5 2.000,0 6,0% 126 130 1.500,0 5,0% 116 101 4,0% 2.060 281 286 1.000,0 1.941 3,0% 254 1.684 234 76 77 55 58 1.450 2,0% 500,0 1,0% 77 78 78 79 0,0 0,0% 2018 2019 2020 20
Slide 36: WACC calculation
WACC calculation WACC components 2018 2019 2020 2021 Risk-free 0.7% 0.7% 0.7% 0.7% Market risk 5.0% 5.0% 5.0% 5.0% Equity beta 0.68 0.73 0.67 0.72 Country risk 2.3% 2.0% 1.8% 1.5% Cost of equity post-tax 6.4% 6.4% 5.9% 5.8% Tax rate 29.0% 29.0% 29.0% 29.0% Cost of equity pre-tax 9.0% 9.0% 8.3% 8.2%
Slide 37: Required Revenue calculation
Required Revenue calculation Current Regulatory Framework New Regulatory Framework Regulatory Period 4-Year period for 2018-2021 Regulatory Period 4-Year period for 2022-2025 Required Revenue (RR) Required Revenue (RR) Amount recovered through System usage charges Amount recovered through System usa
Slide 38: IPTO – Regulated Revenue analysis
IPTO – Regulated Revenue analysis Comments: • For 2021, Allowed Revenue (AR) was budgeted with an increase of €4.9m, mainly as a result of the estimated expansion of the Regulated Asset Base (RAB) of IPTO. • Allowed Revenue (AR updated) of 2021 was increased by €5.7m, to include the operating expens
Slide 39: Islands Interconnection
Islands Interconnection Main Objectives System stability Ensuring a safe supply of energy for the islands electricity system Cost Reduction • Drastic reduction of electricity generation cost in the islands • Substitution of oil units with RES plants and imports from the mainland PSOs elimination Mor
Slide 40: Cycladic Interconnection
Cycladic Interconnection Phase A Phase B 150kV 150kV 66kV 66kV 150kV 200MVA 150kV 200MVA Lavrio Tinos 150kV 140MVA Lavrio Tinos 150kV 140MVA Mykonos Mykonos Syros Syros Paros Naxos Paros Interconnection of Naxos island with Paros and Mykonos islands (close Radial Interconnection of Syros island with
Slide 41: Cycladic Interconnection
Cycladic Interconnection Phase C Phase D 150kV 66kV Lavrio Tinos 150kV 200MVA 150kV 140MVA Mykonos Syros Paros Naxos Expansion to the West and Southern Cycladic Islands Construction of second submarine cable between Lavrio and Syros Interconnection of Lavrio - Serifos – Milos – Folegandros - Thira –
Slide 42: Crete- Peloponnese Interconnection (Phase A)
Crete- Peloponnese Interconnection (Phase A) Interconnection of Crete with the mainland through two distinct links The project is implemented in two phases (A, B) Phase A’ : Connection Peloponnese - Crete Attica Commissioning: Project completed Estimated budget: c. €374.5m Peloponnese Contractualisa
Slide 43: Crete- Attica Interconnection (Phase B)
Crete- Attica Interconnection (Phase B) The company Ariadne Interconnection SPSA, a currently 100% subsidiary of IPTO, has been established as a SPV (Special Purpose Vehicle – SPV) in order to finance and construct the project of Crete – Attica Interconnection Phase ’B : Connection Crete - Attica At