Avax S.a. · ATHEX:AVAX
Avax — J&p-Avax — Greek Construction Day 2007
20 slides from Avax's conference presentation, Jan 12, 2007
Slide 1: Group Presentation at the Greek Construction Day
Group Presentation at the “Greek Construction Day” January 12, 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 three of Greece’s largest construction companies (in two stages, in 1999 and 2000) • Concession portfolio accounts for around th
Slide 3: Strategic Investor: The J&P Group
Strategic Investor: The J&P Group J&P Group boasts advanced know-how and 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, it controls an aggregate 47.7% of J&P- AVAX’s share
Slide 4: Profit Margin Outlook
Profit Margin Outlook • Construction profit margins peaked in 2003 in Greece due to the urgency of 2004 Olympic Games-related projects • The sector slowed down in 2005-2006 as the fiscal crunch, coupled with a revision of the bidding process, caused a shift of government focus away from public works
Slide 5: Financial Performance Outlook
Financial Performance Outlook amounts in € m 2005 2006 E chg 2007 E chg Turnover 357.5 353 -1% 552 56% EBITDA 35.9 42 16% 56 33% ΕΒΙΤDA margin 10.0% 11.8% 10.1% ΕΒΙΤ 26.5 32 23% 46 42% ΕΒΙΤ margin 7.4% 9.2% 8.3% Pre Tax Earnings 20.3 26 29% 37 43% Pretax margin 5.7% 7.4% 6.7% Net Earnings 12.8 21 64
Slide 6: Construction Financial Highlights – 9M 2006
Construction Financial Highlights – 9M 2006 • The Group incurred abnormally high expenses since 2004 as a result of an effort to penetrate new international markets and bidding for several large concession-based projects in Greece • The following table illustrates the participation of the constructi
Slide 7: Work-In-Hand (end-2006)
Work-In-Hand (end-2006) 1.533 €1.600 m 256 €1.200 m 580 993 284 €800 m 324 953 €400 m 669 €0 m Signed Projects Projects to be Total Work-In-Hand Added in Near-Term Greece Int'l Markets Total SIGNED PROJECTS – Greece PENDING PROJECTS - Greece • Various Civil Works €470 m • Road Concessions €245 m • B
Slide 8: Construction Diversification
Construction Diversification • Shifting focus on high-margin & growth activities, such as industrial projects, away from building and civil works which exhibit lower profit margins • Targeting turnover of €600 m by 2010 from construction activities only Construction Turnover by Sector -2005 Construc
Slide 9: 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 over 80% in 2005 • Collaboration with parent J&P Group will continue for projects in the Middle East, Africa and the Persian Gulf, targeting 15% participa
Slide 10: Concession Portfolio
Concession Portfolio J&P-AVAX Estimated Construction Concession Group PV for Budget Term stake J&P-AVAX Athens Ring Road 30.83% €1,244 m 23 y €232 m * Rio-Antirrio Bridge 11.2% €839 m 42 y €31 m * Athens Ring Road 35% €50 m 23 y Service Stations Athens Car Parks 20% €36 m 30 y Salonica Car Parks 50%
Slide 11: Qualification for Concessions (1/2)
Qualification for Concessions (1/2) Estimated J&P-AVAX share Budget Start of Construction Declared Preferred Bidder (pending contract signature) : • Greece’s Main North-South 16.25% Conces. ~ €0.7 bn H2 2007 Highway 15.7% Constr. • Limassol Marina 12% ~ €100 m H2 2007 • Athens Airport Conference 35%
Slide 12: Qualification for Concessions (2/2)
Qualification for Concessions (2/2) Estimated J&P-AVAX Budget Start of share Construction Prequalified (no bid submitted yet) : • Larnaca Marina & Harbour 20% ~ €1.5 bn H1 2008 • Athens Ring Road Extensions 41.7% ~ €1.0 bn H1 2008 10% Concess. • Amman Airport ~ €0.5 bn H1 2008 50% Construc. • Paphos
Slide 13: Main Concessions at a Glance
Main Concessions at a Glance Rio- Maliakos- Athens Antirrio Kleidi Ring Road Suspended (Main North- Bridge South Route) 23 y 42 y 30 y Concession Term (2024) (2039) (2036) * Construction Period 5y 7y 4.5 y Construction Budget €1,244 m €839 m €718 m * IRR Cap ROE cap Expected Return IRR ~12% * 13.1%
Slide 14: Other Group Participations
Other Group Participations Business Overview Participation • very profitable right from the start of operations Athens Ring • its contribution to consolidated P/L to 24.67% Road Operator grow with concession revenues • overlooked by analysts so far • profitable, scale & equity stake is small Rio-Ant
Slide 15: Real Estate
Real Estate • Group strategy is to: • focus on the 2nd-home market (pilot project in the works, will develop at full pace once the upcoming bill is voted into legislation) • develop high-end projects with strong demand and short-term sale prospects, to limit market exposure • focus on the Romanian m
Slide 16: Energy
Energy • Currently working on the development of a 300 MW wind park (Europe’s largest) on an uninhabited Greek isle with top-rated projected load factor. The Group holds a 45% stake in the project and will contribute around €40 m of equity over a 3-year span with a projected IRR of 12% • Also pursui
Slide 17: Stock Performance
Stock Performance Relative J&P-AVAX Share Price / Index Change 190% Dividend Per Share (in € cents) 160% 40 80% 32 71% 69% 30 28 30 60% 130% 20 20 17 40% 100% 11 12 10 20% 70% 0 0% 2001 2002 2003 2004 * 2005 * 40% * under IAS/IFRS Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 DPS Net Profit Div Payout R
Slide 18: Shareholder Base, end-2006
Shareholder Base, end-2006 Retail Investors 10.2% J&P Group 47.7% Institutionals - Intl 9.6% 23.3% 9.2% Other Main Institutionals - Shareholders Greek 23.3% 9.2% J&P Group + Other Main Shareholders = 71.0% 18
Slide 19: Investment Points
Investment Points Strong Points : 9Strong strategic partnerships and alliances 9Large portfolio of lucrative concession projects Opportunities : 9Booming construction activity and rebounding profit margins in the Persian Gulf area 9Short-listed for several concessions in Greece and abroad 9Foray int
Slide 20: Building the Future
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