Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — 10th Greek Investment Forum, New York, June 2021
40 slides from Admie Holdings Sa's conference presentation, June 2021
Slide 1: Corporate Presentation
Corporate Presentation June 2021 1
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
Slide 3: Agenda
Agenda 1. ADMIE HOLDING S.A. & IPTO S.A. Overview 2. Investment Program Summary 3. Financial Highlights 4. GRID Telecom 5. Appendix
Slide 4: ADMIE at a glance
ADMIE at a glance ▪ Sole Transmission System Operator (TSO) in Greece Transmission Distribution Generation Supply Employees Transported Energy 1.590 50.1 TWh Network 12.393 km* RAB Net Profit €1.9bn *11,968 km is the distance between Paris, France and Christmas Island, Australia €84.9m 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. 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 ▪ Revenues are not depended ▪ Allowed revenues assure during which the respective on state payments remuneration of cost of capital parameters remain stable and cost of debt ▪ Transmis
Slide 9: Regulatory Period: Four years
Remuneration scheme Regulatory Asset Base Undepreciated invested capital + maintenance/ (RAB) development CapEx/ WiP + working capital - disposals - subsidies Regulatory Period: Four years Allowed Revenue (AR) Operator's Allowed Revenue AR = O + Dep + R O : annual operating costs Dep : annual deprec
Slide 10: New Methodology Deliberations
New Methodology Deliberations RAE Consultation for RAE Decision for RAE Consultation for Allowed Revenue and Allowed Revenue and RAE Decision for New RAB calculation for RAB calculation for New Methodology Methodology period 2022-25 period 2022-25 21/5 4/6 End of June Q3’21 Q3-Q4’21 New Methodology
Slide 11: Investment Program Summary
2. Investment at a glance Program Summary 11
Slide 12: Network Development Plan 2020-2030
Network Development Plan 2020-2030 Expected Project Cost ID Project description commissioning (2020-30) €m Corridor A’ 400 kV to Peloponnese (OHL 1 2021 117 Megalopoli – Patras – Acheloos) 2 Cycladic Islands Ιnterconnection (Phases completed B and C) 3 Cycladic Islands Interconnection Phase D 2024 3
Slide 13: Crete – Attica Interconnection
Crete – Attica Interconnection Attica ✓ The project is considered Project of Major Peloponnese Importance (PMI), so a Premium rate of return can be approved by the regulator (RAE), on top of the normal rate of return. I AC 2x200MVA II DC 2x500MW The percentage of the premium return 340km 132km subma
Slide 14: Key milestones in 2020
Key milestones in 2020 Maturing of the tender process for both parts of the project (submarine cable interconnection and converters), whereas the signing of the relevant contracts took place in Crete-Attica June 2020. Interconnection The first cable was successfully tested in December 2020. The seco
Slide 15: Strategic Plan
Strategic Plan Leadership • Acceleration of all island interconnections • Participation in Energy Exchange and implementation of the target model. Growth • Renovation and optimal management of assets • Strong financial profile Digitalization 1 2 3 • Optimization of operations, systems and procedures
Slide 16: Financial Overview
3. Financial at a glance Overview 16
Slide 17: IPTO Group FY 2020 Highlights
IPTO Group FY 2020 Highlights TOTAL REVENUES EBITDA Net PROFIT €286.7m €210.6 m €84.9m PY €249.8m(+14.8%) PY €224.1 m (-6.1%) PY €105.6m(-19.6%) ✓ Increase by €44.4m in System Rent due to ✓ 2019 Positive affected by one-off non ▪ Refinancing of existing syndicated the increase of the Allowed Revenue
Slide 18: Profitability
Profitability EBITDA EBIT Net Income 73% 90% 43% 54% 30% 42% 224,1 Reported Reported Reported 210,6 134,8 122,1 105,6 84,9 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 71% 71% 40% 42% 28% 31% Adjusted Adjusted Adjusted 202,5 176,5 114,0 103,9 81,1 78,7 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2
Slide 19: EBITDA Bridge
EBITDA Bridge Positive effect from the voluntary Positive Trend of exit scheme employed in 2018 electricity Demand Amounts in €’m 19
Slide 20: Cash Flow & Net Debt
Cash Flow & Net Debt Cash Flow Bridge Net Debt Net Debt remained at satisfactory levels due to high cash reserves standing at € 504.5m (31/12/2020) ➢ 2.49x Net Debt/adj. EBITDA ➢ 17x Interest coverage ratio ➢ 0.67x Net Debt/Equity 20
Slide 21: IPTO selected items
IPTO selected items IPTO S.A. Group IPTO S.A. Group P&L Balance sheet 31.12.2020 31.12.2019 Chg yoy 31.12.2020 31.12.2019 31.12.2020 31.12.2019 31.12.2020 31.12.2019 System rent 273.6 229.1 19.4% 273.6 229.1 Non-current assets 2.689,5 2.327,7 2.489,5 2.128,6 Total revenues 285.1 248.8 14.6% 286.7 24
Slide 22: ADMIE Holding FY 2020 Highlights
ADMIE Holding FY 2020 Highlights €43.3m €419k -1.6% y/y Share of -19.6% y/y Reported Investments (Income) OPEX €264k €0.103 -12.7% y/y -16.7% y/y Net Financial Dividend Income Per Share Active cash management benefits offset higher OPEX 22
Slide 23: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 31.12.2020 31.12.2019 P&L 31.12.2020 31.12.2019 Non-current assets 722.6 704.6 Income from Affiliate 43.3 53.9 Current assets 27.8 22.5 EBITDA 38.8 53.4 of which: Cash & equiv. 7.0 8.5 Operating Income 43.2 53.4 Total Assets 750.4 727.2 Net profit 43.2 53.9
Slide 24: Dividend Policy
Dividend Policy ✓ Average dividend yield since listing ~% 0,0289 0,0179 0,0285 ✓ Bound to distribute 0,089 0,0854 based on a minimum 0,06 0,0316 payout ratio of 50% 2018 2019 2020 2021 (IPTO SA) Interim Dividend Remaining Dividend 2019 2020 2021 ✓ ADMIE Holding SA is Dividend per share 0,09 0,12 0,1
Slide 25: IPTO 2019-2023 outlook
IPTO 2019-2023 outlook EUR 2019 Guidance Comments Regulated €1.68B ~€2.60B (2023-24) Increase 53% Asset Base (RAB)* Investments Ariadne Interconnection €248M ~ €1.80B (2023-24) (System & Users) included Consolidated with Ariadne EBITDA* €176.5M ~ €280M (2023-24) Interconnection * Figures from ‘’Grid
Slide 26: GRID Telecom
4. GRID at a glance Telecom 26
Slide 27: Services
Services Provision of Dark Fiber through IPTO’s terrestrial and submarine network infrastructure combining Grid-Telecom’s terrestrial network part In the near future Grid Telecom will be ✓ Fiber optic network (terrestrial and proving collocation services to mobile submarine) exceeds 3000km 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: Thank you
Thank you For additional information please contact ADMIE Holding Investor Relations Tel: +30 210 3636 936 E-mail: office@admieholding.gr or visit: www.admieholding.gr
Slide 30: Appendix
Appendix IPTO key financial items/ Regulatory Framework 30
Slide 31: 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 32: Regulatory period 2018 – 2021
€m Regulatory period 2018 – 2021 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 33: 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 34: Required Revenue calculation
Required Revenue calculation Regulatory Period Four years Regulatory Asset Base Undepreciated invested capital + maintenance/ (RAB) development CapEx/ WiP + working capital - disposals - subsidies Allowed Revenue (AR) Operator's Allowed Revenue In real terms for each year AR = O + Dep + R O annual o
Slide 35: IPTO – Regulated Revenue analysis
IPTO – Regulated Revenue analysis In thous’ euros 2020 2019 Difference Comments: Items comprising AR in RAE 235/2018 OPEX 78.461 77.862 599 Depreciation 76.370 58.335 18.035 • For 2020, Allowed Revenue (AR) was Total expenses 154.831 136.197 18.634 budgeted with an increase of €28.6m, RAB 1.941.335
Slide 36: 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 37: 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 38: 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 39: 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: 2021 Estimated budget: c. €292m Peloponnese Contractualisation: 11.2018 -
Slide 40: 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
ADMIE Holding — 10th Greek Investment Forum, New York, June 2021 on 6ix