Gek Terna S.a. · ATHEX:GEKTERNA
Gek Terna — Investor Presentation (October 2024)
54 slides from Gek Terna's investor presentation, October 2024
Slide 1: Corporate Presentation
Corporate Presentation October 2024
Slide 2: Legal Disclaimer
Legal Disclaimer 2 We have prepared this document solely for informational purposes. You should not rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. You and your directors, officers
Slide 3: Contents
3 CONTENTS 1. A NEW GROWTH ERA FOR GEK TERNA GROUP p. 4 2. KEY ASSETS OVERVIEW p. 17 3. 1H 2024 FINANCIAL RESULTS p. 29 4. TERNA ENERGY TRASACTION DEEP DIVE p. 47 5. SHAREHOLDING & SHARE PRICE PERFORMANCE p. 52 Corporate Presentation| October 2024
Slide 4: A New Growth Era for GEK TERNA
4 SECTION 1 A NEW GROWTH ERA FOR GEK TERNA Corporate Presentation| October 2024
Slide 5: GEK TERNA is the Leading Core Infrastructure Player in Greece
5 GEK TERNA is The Leading Core Infrastructure Player in Greece A diversified group strategically positioned in low risk and stable growth economic sectors with unparalleled execution capabilities, unique market positioning and expertise Komotini CCGT ~1,800 Km of motorways under Road management Air
Slide 6: From a Leading Technical Company into a Vertically Integrated Infrastructure Investment Platform
6 From a Leading Technical Company into a Vertically Integrated Infrastructure Investment Platform TERNA TERNA Energy HERON TERNA and GEK join TERNA absorbs GEK’s Listing of TERNA and Independent RES arm is TERNA is forces, forming one of construction division forming • Heron I OCGT (147 MW) GEK on
Slide 7: GEK TERNA Group Structure
7 GEK TERNA Group Structure Divested Activities Conventional Concessions Construction RES Energy Segment Segment Segment Segment 100% 100% 100% 37% 100% GEK TERNA Concessions 100% 50% Waste Komotini CCGT TERNA ENERGY Management Non-Core Assets 100% GEK TERNA Kasteli(1) E-Ticket 17% Transfer to GEK T
Slide 8: GEK TERNA Unlocks its Full Potential as the Leading Diversified Infrastructure Group
8 GEK TERNA Unlocks its Full Potential as the Leading Diversified Infrastructure Group Unparalleled Execution Capabilities & Expertise Vertically integrated platform providing critical infrastructure to Greece and South-East Europe Leading concessions operator in Greece and SEE Largest construction
Slide 9: GEK TERNA will Remain Focused on the Highly Attractive Infrastructure Sector
9 GEK TERNA will Remain Focused on the Highly Attractive Infrastructure Sector THE INFRASTRUCTURE SECTOR IN GREECE IS BOOMING Greece’s infrastructure requires €40-50 Bn in investments Sizeable near-term projects pipeline in Greece 9% Railways 6% 31% Motorways ~€8-10 Bn ~40-50 Waste management Infras
Slide 10: Near-Term Projects Pipeline in Greece of €8-10Bn
10 Near-Term Projects Pipeline in Greece of € 8-10Bn • Un-solicitated proposals (concessions) • Attiki Odos expansion ~€1.5Bn (GEK TERNA is the leading party in the JV) Motorways • Western Attika Motorway ~€ 0.5Bn (submitted by GEK TERNA) • Motorways PPPs in Norther Greece • 2 projects with total co
Slide 11: Balanced Business Approach to Minimize Risks and Maximise Returns
11 Balanced Business Approach to Minimize Risks and Maximise Returns What makes us different An established and Highly competitive …generating value Secured long term Uniquely vertically and versatile, during all stages of value creation with positioned for the integrated platform actively managing
Slide 12: The Proceeds from the Transaction will be Redeployed to Accelerate the Group's Path
12 The Proceeds from the Transaction will be Redeployed to Accelerate the Group’s Path to a New Growth Era Landmark upcoming concessions and projects offering highly attractive returns Group Pro-Forma adj. EBITDA and adj. Net Debt ~€(0.1) Bn ~€4 Bn ~€(0.6) Bn >€0.4 Bn Increased capacity to capture n
Slide 13: Operating Profitability Mix
13 Operating Profitability Mix Earnings mix driven by growth in concessions, i.e. projects with long term, recurring and visible cash flow streams Group Adjusted EBITDA Mix 2023A Pro-Forma 2023 2028 Secured 27.3% 22.6% ~20% ~40% ~30% € 0.6Bn € 0.4Bn € 0.7-0.8Bn ~10% ~70% 21.8% 28.4% ~30% Concessions
Slide 14: Additional Firepower to Pursue New Projects and Accelerate Dividend Growth
14 Additional Firepower to Pursue Highly Attractive New Projects and Accelerate the Growth in Dividend Distributions for Shareholders while maintaining a prudent capital structure Investment Funding Capacity (2024-2028) € Bn New opportunities Asset Rotation 0.9 Distribution to 2.0 Firepower sharehol
Slide 15: Sale of TERNA ENERGY participation wipes off Group Net Debt
15 Sale of TERNA ENERGY participation wipes off Group Net Debt allowing for ample headroom to onboard new lucrative investments Group Net Debt € Bn 776 1,606 1,616 840 880 ~0 Group Net Debt FY 2023 Group Net Debt 1H 2024 Activties held for sale Continued activities Proceeds from TE Sale 1H 2024 Pro-
Slide 16: Group Debt Structure 1H 2024
16 Group Debt Structure 1H 2024 GEK TERNA Group Total Gross Debt : 3,135m Cash: 1,518m GEK TERNA Parent Co. adj. Net Debt/(Cash): 1,616m Gross Debt : 948m Recourse Net Debt(1) € Cash: 656m GEK TERNA Group - Continued adj. Net Debt/(Cash): 297m 435m Gross Debt : 2,024m Cash: 1,183m adj. Net Debt/(Cas
Slide 17: Key Assets Overview
17 SECTION 2 KEY ASSETS OVERVIEW Corporate Presentation| October 2024
Slide 18: GEK TERNA Concessions Portfolio Key Projects
18 GEK TERNA Concessions Portfolio Key Projects GEK TERNA is strategically positioned in critical assets, with defensive characteristics, inelastic demand and pricing flexibility Nea & Kentriki Odos Road Egnatia Odos Airport • Total length of c.600Km • Greece’s largest motorway • In full commercial
Slide 19: GEK TERNA Concessions Portfolio Key Projects (Cont'd)
19 GEK TERNA Concessions Portfolio Key Projects (Cont’d) GEK TERNA motorways portfolio exceeds 1,800km with an average remaining lifetime of >25 years and total Invested Equity to exceed €1.2bn … EQUITY INVESTED/TO COMMERCIAL CONCESSION MOTORWAYS LENGTH (100% KM) % STAKE BE INVESTED (€M) OPERATION E
Slide 20: GEK TERNA Motorways Portfolio Traffic (2015-2023)
20 GEK TERNA Motorways Portfolio Traffic (2015-2023) Vehicle Kilometers Traveled (millions) Nea & Kentriki Odos Egnatia Odos 3,000 4,000 2,500 3,500 3,000 2,000 2,500 1,500 2,000 1,000 1,500 1,000 500 500 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 O
Slide 21: Attiki Odos – Greece's prime concession asset
21 Attiki Odos – Greece’s prime concession asset Overview Main Concession Highlights ✓ GEK TERNA’s biggest investment to-date with acquisition ticket of € 3.3bn through an international competitive tender ✓ Landmark and essential asset, serving as the backbone of Attica connecting all modes of trans
Slide 22: Egnatia Odos Motorway – Largest motorway in the country
22 Egnatia Odos Motorway – Largest motorway in the country Overview Main Concession Highlights ✓ Concession Period: 35 years ✓ Toll Stations: 18 frontal stations and 43 lateral toll stations ✓ Project Budget: over €2.7bn (acquisition cost €1.5bn, ` €0.7bn construction/revamp cost, financials etc.) ✓
Slide 23: Nea Odos & Central Greece Motorway – Mature and highly yielding assets
23 Nea Odos & Central Greece Motorway – Mature and highly yielding assets Overview Main Concession Highlights ✓ “Nea Odos” ✓ “Kentriki Odos” Concession Project Concession Project • Concession Grant: 2007 • Concession Grant: 2007 • Concession End: 2037 • Concession End: 2037 • Total Length: 377km • T
Slide 24: New International Airport in Kasteli, Crete
24 New International Airport in Kasteli, Crete – The 2nd largest airport in Greece Overview Main Concession Highlights ✓ It is one the most significant investments that have taken place in Key Metrics the island of Crete and one of the country’s top infrastructure projects Pax (2019A) (1): 8m Pax (2
Slide 25: Integrated Resort & Casino (IRC) in Hellinikon, Athens
25 Integrated Resort & Casino (IRC) in Hellinikon, Athens – A unique asset in the EU Main Concession Highlights • Site: The site is unique, located in the south coastline of the greater Athens area within the overall Hellinikon Project (largest waterfront development in Europe’s history) and in prox
Slide 26: Construction Division (TERNA)
26 Construction Division (TERNA) The largest and most profitable construction business in the country offering significant competitive advantages and risk management supporting complex infra projects Construction Backlog (€ Bn) Revenues (€ Bn) & EBIT margin 1.6 30.0% 1.4 1.4 5.3 5.3 5.0 25.0% 4.9 1.
Slide 27: Backlog Analysis 1H 2024
27 Backlog Analysis 1H 2024 Group construction backlog – Main Projects Value Project (€ bn) Egnatia motorway 0.7 Motorways (Central Greece-Nea Odos-Olympia-North Crete PPP) 0.6 Amfilochia Pumped Storage 0.6 Kasteli Airport 0.5 PV Stations 0.3 Hotels and Offices 0.3 Railways 0.2 Energy networks 0.1 O
Slide 28: Conventional Energy Generation, Supply & Trading (HERON)
28 Conventional Energy Generation, Supply & Trading (HERON) A leading and innovative IPP in the Greek market with an integrated and balanced business model offsetting extreme energy scenarios Supply • 2nd largest IPP in Greece ~5 TWh • ~11% market share Adj.EBITDA Mix (FY 2023) Installed Capacity(1)
Slide 29: 1H 2024 Financial Results
29 SECTION 4 1H 2024 FINANCIAL RESULTS Corporate Presentation| October 2024
Slide 30: 1H 2024 Group Key Financial Figures
30 1H 2024 Group Key Financial Figures Group Total Net Earnings Revenues adj. EBITDA attributed to parent shareholders exc. non- operating items(1) 1,515.2 269.1 65.7 -5.7% y-o-y +7.6% y-o-y +20.3% y-o-y Continuing Operations Net Earnings Revenues adj. EBITDA attributed to parent shareholders exc. n
Slide 31: 1H 2024 Highlights – Strategy & Operations (1/2)
31 1H 2024 Highlights – Strategy & Operations (1/2) Landmark agreement for sale of TERNA ENERGY to further boost investment capacity for new concession projects taking advantage of competitive positioning Landmark agreement with Masdar for the sale of 36.59% of TERNA ENERGY at € 20.0/sh • Total proc
Slide 32: 1H 2024 Highlights - Financials (2/2)
32 1H 2024 Highlights - Financials (2/2) Solid operating profitability driven by growth in concessions and construction – lower contribution from conventional energy as anticipated GEK TERNA Group ▪ Revenues at € 1.5bn (-5.7% y-o-y) growth in Concessions and RES partially mitigates lower contributio
Slide 33: Group Revenues and adj.EBITDA causal track
33 Group Revenues and adj.EBITDA causal track Lower contribution from conventional energy – Robust profitability from construction Group Revenues (€ m) 1,604.3 58.5 26.0 1,515.2 109.0 7.4 45.0 -9.2% y-o-y +23.2% y-o-y -13.7% y-o-y +42.7% y-o-y Revenues 1H 2023 Construction Concessions Conventional E
Slide 34: Contribution per segment
34 Contribution per segment Revenues 1H 2023 1H 2024 y-o-y % of total (1H 2024) €m Construction 636.3 577.8 -9.2% 38.1% Concessions 103.4 129.4 25.1% 8.5% Conventional Energy 797.2 688.2 -13.7% 45.4% HQ and Other 12.7 14.1 10.9% 0.9% Eliminations (50.7) (44.6) n.m. -2.9% Total Continued Activities 1
Slide 35: Consolidated Income Statement (IFRS 5)
35 Consolidated Income Statement (IFRS 5) Continued activities Activities held for sale Group Total €m 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 Revenue 1,497.6 1,362.8 106.7 152.4 1,604.3 1,515.2 adj. EBITDA 177.7 172.2 72.6 96.8 250.3 269.1 EBIT 106.9 97.8 48.6 71.0 155.5 168.7 Financial inc
Slide 36: Consolidated Income Statement (Continued activities)
36 Consolidated Income Statement (Continued activities) €m 1H 2023 1H 2024 y-o-y ▪ Revenues decline on the back of lower contribution from Conventional Energy Revenues 1,497.60 1,362.8 -9.0% (vis-a-vie lower energy prices) and adj. EBITDA 177.7 172.2 -3.1% construction Non-cash items(1) (25.1) (25.6
Slide 37: Cash Flow
37 Cash Flow Net Operating CF from continued activities increased by 53% y-o-y driven by operating profitability and contained WC Group Cash Flow – Continued activities (€ m) 78.3 1,310.6 172.2 36.7 31.2 47.7 246.9 1,117.0 123.9 23.5 54.6 Net Operating CF Investing CF Financing CF 1H 2024: 93.3m 1H
Slide 38: Debt highlights (1/2)
38 Debt highlights (1/2) Group Gross Debt (€ m) Group Cash (€ m) ~€2.0bn 1,111 880 266 3,062 2,024 1,311 1,117 1,117 FY 2023 1H 2024 FY 2023 1H 2024 1H 2024 (Pro-Forma for TE sale) Continued activities Activities held for sale Continued activities Activities held for sale TE Sale Proceeds Group adj.
Slide 39: Debt highlights (2/2)
39 Debt highlights (2/2) Gross Debt Recourse / Non-Recourse Coupon type – Continuing activities 86% of debt with fixed or hedged interest rates Activities held for sale (non-recourse), 35% Recourse, 37% Hedged with the use of IRS, 39.5% Fixed, 46.7% Non-recourse, Variable, 28% 13.8% Group W.A. cost
Slide 40: Concessions financial highlights
Business Segments Review 40 Concessions financial highlights (€m) 1H 2023 1H 2024 ▪ Traffic in Nea & Kentriki Odos increases 7.4% y-o-y in 1H 2024 following pick-up in economic activity and the commercial operation of new segment in Kentriki Odos (since April) Revenues 103.3 129.4 ▪ Revenues increas
Slide 41: Construction financial highlights
Business Segments Review 41 Construction financial highlights (€m) 1H 2023 1H 2024 ▪ Signed backlog increases to € 3.9bn, with total backlog remaining high at € 5.0bn Revenues 636.3 577.8 ▪ Scope for backlog to remain high following new project wins (North Crete) not included in current backlog adj.
Slide 42: Conventional Energy Generation, Supply & Trading
Business Segments Review 42 Conventional Energy Generation, Supply & Trading (€m) 1H 2023 1H 2024 • Market backdrop ❑ Demand up by 4.5% y-o-y Revenues 797.2 688.2 ❑ Power prices decline 40% y-o-y following nat. gas price trends ❑ Generation from nat. gas units +40.8% y-o-y vs. lower lignite (-30% ad
Slide 43: RES financial highlights (Activities held for sale)
Business Segments Review 43 RES financial highlights (Activities held for sale) • Installed capacity increases to 1,227MW vs. 1,096MW in 1H 2023 (€m) 1H 2023 1H 2024 following Kafireas full commissioning as of 4Q 2023 • Load factor at 30.3% (vs. 27.6% last year) on normalized wind Revenues 105.4 150
Slide 44: Greek Energy Market Update 1H 2024
44 Greek Energy Market Update 1H 2024 Greek power market generation mix Greek DAM (€/MWh) 25.6 23.4 24.5 Demand (TWh) 1HY 2024 average: € 79/MWh 1H 2023 average: € 131/MWh 192 45.4% 49.7% 57.4% % of RES and hydro 156 1.4% 135 130 10.8% 15.1% 123 120 Net Imports 113 111 106 99 104 102 105 102 50.0% 9
Slide 45: Performance by Segment
45 Performance by Segment RES Conventional Energy 1H 2024 Hold Co and Construction (Activities held Concessions Generation, Supply & Eliminations Group (€ m) Other for sale) Trading Revenues 577.8 150.4 129.4 688.2 14.1 (44.6) 1,515.2 Gross profit 62.7 96.1 40.7 45.1 1.0 (4.3) 241.3 adj.EBITDA 60.3
Slide 46: Group Balance Sheet and Cash Flow
46 Group Balance Sheet and Cash Flow Group Balance Sheet Summary Group Cash Flow Summary (Continuing Ops) €m FY 2023 1H 2024 €m 1H 2023 1H 2024 Tangible and Intangible assets 2,276.2 903.4 adj. EBITDA 177.7 172.2 Investments 384.7 468.9 Non-cash adjustments (1.1) 3.3 Other long-term assets 323.7 344
Slide 47: TERNA ENERGY Transaction Deep Dive
47 SECTION 4 TERNA ENERGY TRANSACTION DEEP DIVE Corporate Presentation| October 2024
Slide 48: Sale of 36.6% Stake in TERNA ENERGY: Transaction overview
GEK TERNA has Announced a Landmark Transaction for the 48 European Energy Sector - the Sale of its 36.6% Stake in TERNA ENERGY Transaction overview On June 20th GEK TERNA announced that it has entered an agreement for the sale of its 36.6% stake in TERNA ENERGY to Masdar, for a share price considera
Slide 49: Crystallising the value of 27 years of investment in Renewables
GEK TERNA has Announced a Landmark Transaction for the 49 European Energy Sector - the Sale of its 36.6% Stake in TERNA ENERGY Crystallising the value of its continuous investment in the Renewables sector over the last 27 years A success story of pioneering the Greek renewables market and creating v
Slide 50: Key Takeaways
Key Takeaways 50 A Highly Attractive Transaction for GEK TERNA and its Shareholders Crystalizing value of continued investment Supported by an attractive exit yield Unique opportunity to redeploy capital in the infrastructure space €40-50 Bn investment needed in Greek infrastructure, of which €8-10
Slide 51: Indicative Transaction Timeline and Next Steps for TERNA ENERGY
Indicative Transaction Timeline and Next Steps for TERNA ENERGY 51 Transaction for GEK TERNA Next Steps for TERNA ENERGY (not in Transaction perimeter) Indicative steps based on the provisions of Greek law and Masdar’s expressed intention to proceed with 100% acquisition of TERNA ENERGY Today Signin
Slide 52: Shareholding and Share Price Performance
52 SECTION 5 SHAREHOLDING AND SHARE PRICE PERFORMANCE Corporate Presentation| October 2024
Slide 53: Shareholding & Share Price Performance
53 Shareholding & Share Price Performance GEK TERNA 5Y Share Price Performance 200% 175% 150% 125% 100% 75% Shareholder Structure (Sep’24) 50% 25% 0% 4.2% G. Peristeris -25% 30.0% 15.8% -50% LATSCO 30/09/2019 26/11/2019 28/01/2020 26/03/2020 28/05/2020 24/07/2020 18/09/2020 16/11/2020 15/01/2021 12/
Slide 54: Investors Contacts
54 Investors Contacts Argyris Gkonis - IR Officer agkonis@gekterna.com +30 210 6968499 Investor Relations Desk ir@gekterna.com +30 210 6968457 85, Mesogeion Ave, Athens, 115 26, Greece Corporate Presentation| October 2024 T: +30 210 6968000, E: info@gekterna.com, www.gekterna.com