Gek Terna S.a. · ATHEX:GEKTERNA
Gek Terna — Investor Presentation (July 2023)
54 slides from Gek Terna's investor presentation, July 2023
Slide 1: Corporate Presentation July 2023
Corporate Presentation July 2023
Slide 2: Group Structure
GEK TERNA GROUP OF COMPANIES wt
Slide 3: Disclaimer
Disclaimer 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, employ
Slide 4: Table of contents
Table of contents I. Group Intro & Investment case highlights II. Business segments review ❑ Concessions ❑ Construction ❑ RES ❑ Thermal Energy Generation, Supply and Trading III. ESG Highlights IV. Appendix ❑ Shareholding structure and share performance ❑ 1Q 2023 Group results review 4
Slide 5: GEK TERNA Group at a glance
GEK TERNA Group at a glance A Strategic in the Greek and regional infrastructure market with unparallel execution capabilities, unique market positioning and expertise FY 2022 #1 Contractor € 661.8m € 5.5bn backlog, the largest among Greek listed € 6.0bn peers adj.EBITDA Assets #1 Concessions Operat
Slide 6: Corporate Milestones
Corporate Milestones 1999 1994 1969 1997 ▪ TERNA and GEK join 1972 ▪ Listing of TERNA and ▪ GEK is ▪ Incorporation of TERNA forces, forming one of ▪ TERNA is established GEK on the Athens established Energy the largest Group in Stock Exchange Greece 2007 2000 ▪ TERNA Energy IPO ▪ The first wind park
Slide 7: Group Structure - Activities
Group Structure - Activities MCap € 1.48bn as of 30.06.2023 GEK TERNA Thermal Other Construction RES Concessions Energy Segments 100% 100% 37% 100% 100% Motorways I Operation & Maintenance 100% 75%6 MCap € 2.36bn 100% Egnatia Odos II as of 30.06.2023 Real Estate Assets2 50%5 17%1 100% Komotini CCGT
Slide 8: Investment case highlights
Investment case highlights A vertically integrated infrastructure group, holding the leading position in a niche, growing market, operating critical assets with long term and visible cash flow streams Presence in landmark projects across the country continuously extracting value through synergies an
Slide 9: Strategic presence across the country
Strategic presence across the country ❖ >€ 6.0bn of dividend distributions over the lifetime of the currently signed/awarded concession projects ❖ Multiple opportunities to extract additional value through synergies and vertical integration Komotini CCGT Indicative new projects at Egnatia Odos tende
Slide 10: Group Revenues and adj. EBITDA
Group Revenues and adj. EBITDA Step up in operating profitability continues driven by investments and market positioning Growth momentum to persist as new projects enter commercial operation and pipeline matures Group Revenues Group adj. EBITDA 3,938.3 661.8 Thermal Energy 2,661.1 335.5 RES 323.5 33
Slide 11: Cash distribution to Parent Co
Cash distribution to Parent Co Highly visible and sustainable cash flow streams to shareholders with significant growth expected over the coming periods as contracted pipeline assets reach commercial operation Average annualized cash distributions from OpCos to Parent Pipeline assets ~300m ~ 200m Am
Slide 12: Capital allocation strategy
Capital allocation strategy Balanced approach on capital allocation, ensuring balance sheet health, growth and shareholder remuneration Corporate Shareholder Growth Leverage remuneration -€ 0.9bn of corporate debt -Expansionary capex for high -Dividend distribution & Capital return projects -No mate
Slide 13: Well positioned for the "new rate environment"
Well positioned for the “new rate environment” ✓ No material refinancing needs for the medium term at corporate level ✓ ~70% fixed interest exposure – tenor at PF facilities matching projects’ lifetime ✓ Competitive funding costs ✓ Fully secured liquidity for committed investment needs plus and addi
Slide 14: Leverage KPIs
Leverage KPIs Operating profitability further strengthens financial position with significant headroom and liquidity to facilitate investment pipeline Group Net Debt (1) (€ m) Parent Co. Cash position & Net Debt (€ m) 1,475 557.7 559.1 1,366 466.1 1,214 1,107 359.3 360.9 156.9 FY 2020 FY 2021 FY 202
Slide 15: Financial debt by segment/subsidiary
Financial debt by segment/subsidiary €m FY 2022 FY 2021 Gross Debt Cash(1) Net Debt/(Cash) Gross Debt Cash(1) Net Debt/(Cash) Construction 80.0 200.7 (120.7) 87.7 334.9 (247.2) RES 1,030.8 362.5 668.3 912.6 312.2 600.5 Thermal Energy 232.5 238.7 (6.2) 101.1 53.3 47.8 o/w external debt 70.4 Concessio
Slide 16: Business Segments Review
Business Segments Review
Slide 17: Concessions Segment
Concessions Segment 17
Slide 18: Concessions – Assets Overview
Segments Review Concessions – Assets Overview Diversified portfolio of mature and under development assets, strategically located across the country Kentriki Odos Parking ▪ Total length: 231km ▪ Parking stations all over Greece ✓ Equity(4) invested €67m (100%) ✓ 2,235 total spaces ✓ Senior Bank debt
Slide 19: Concessions - Portfolio Overview
Segments Review Concessions - Portfolio Overview The Group is investing equity on the awarded projects with an average remaining life of c.35 years Expected Project % Stake Equity to be deployed (€m) Commercial Concession Expiration Operation 50 Komotini CCGT (877MW) 50% 2024 - (~90% already deploye
Slide 20: Concessions – Pipeline update
Segments Review Concessions – Pipeline update ▪ Komotini 877MW new CCGT under construction (>65% Greek toll roads (km) completed). Trial period expected within 1H-2024 887 ▪ New airport in Kasteli, Crete construction accelerating following upgraded masterplan. COD 2026/27 377 ▪ Egnatia Motorway curr
Slide 21: Concessions - Financials
Segments Review Concessions - Financials (€m) FY 2021 FY 2022 ▪ Traffic in motorways increases 16.2% y-o-y following lift of pandemic restrictions (+4.2% vs. 2019) Revenues 173.0 202.0 ▪ Operating profitability grows in line with traffic adj. EBITDA 101.8 111.7 ❑ Margin erosion related to COVID-rela
Slide 22: Concessions – Ionia and Kentriki Odos at a Glance
Segments Review Concessions – Ionia and Kentriki Odos at a Glance Overview Main Concession Highlights ✓ “Ionia Odos” Concession Project ▪ Concession Grant: 2007 ▪ Concession End: 2037 ▪ Total Length: 380kmm E-65 ✓ Project Budget: over €1.1bn Motorway ✓ Inflation protected pricing ✓ Partial exposure
Slide 23: Concessions – Ionia and Kentriki Odos operations review
Segments Review Concessions – Ionia and Kentriki Odos operations review Total Transactions in Nea & Kentriki Odos (m) Toll revenues Nea & Kentriki Odos (€ m) 162.1 51.1 152.1 49.1 141.6 44.0 127.1 38.8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 Nea & Kentriki Odos cash distribut
Slide 24: Concessions – Egnatia Odos at a Glance
Segments Review Concessions – Egnatia Odos at a Glance Overview Main Concession Highlights ✓ Concession Period: 35 years Key metrics (2027E) ✓ Toll Stations: 18 frontal stations and 43 lateral toll stations Transactions: 217.6m ✓ ` Project Budget: over €2.7bn (acquisition cost € 1.5bn, € 0.7bn const
Slide 25: Concessions – Kasteli Airport at a Glance
Segments Review Concessions – Kasteli Airport at a Glance Overview Main Concession Highlights ✓ More than 90% correlation between Heraklion airport Key metrics traffic and major (G7) advanced economies. ✓ It is one the most significant investments that have taken Pax (2019A) 2: 8m place in the islan
Slide 26: Concessions – Hellinikon ICR at a Glance
Segments Review Concessions – Hellinikon ICR at a Glance Main Concession Highlights ✓ Site: The site is unique, located in the south coastline of the greater Athens area within the overall Ellinikon Project (largest waterfront development in Europe’s history) and in proximity to the Athens center an
Slide 27: Concessions – Growth Opportunities
Segments Review Concessions – Growth Opportunities Strategically positioned, with strong indication of success, in the tender phase of mature Concessions and PPP projects with total estimated project Capex and/or budgeted availability payments of c.€8bn Kavala underground natural Komotini Power Plan
Slide 28: Construction Segment
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Slide 29: Construction – Overview
Segments Review Construction – Overview Consistently positive operational profitability, at a sector with strong correlation with GDP. Comfortable cash buffers to navigate WC cycles, ensuring smooth execution. Current backlog at historical high levels, with scope to increase further as >€ 30bn of pr
Slide 30: Construction – Financial performance
Segments Review Construction – Financial performance Segment Revenues € m ▪ Backlog increases further to € 5.3bn, with € 1.2bn of new 1,024.2 contracts (inc. extensions) signed in 2022 739.1 600.6 525.9 ▪ Ramp up in activity levels following the launch of execution of new public and private projects
Slide 31: Construction – Backlog analysis
Segments Review Construction – Backlog analysis Backlog evolution (€ bn) Backlog FY 2022 (€ bn) 5.3 Kasteli Airport 0.6 4.9 2.4 Motorways (Central Greece-Nea Odos-Olympia) 0.7 2.4 2.2 Komotini CCGT 0.3 0.6 2.5 2.9 Railway Line Sofia-Dragoman (BG) 0.1 1.6 Heron Retail Store II FY 2020 FY 2021 FY 2022
Slide 32: Construction – Backlog Overview
Segments Review Construction – Backlog Overview Diversified portfolio with strong track record of backlog rollover Heraklion E65 Motorway Belgrade Airport Vasilikos Power Attica-Crete Power Dragoman – Petarch Project Komotini CCGT New Int. Airport at (Lamia –Xyniada – Olympia Odos Ionia Odos (Nikola
Slide 33: Renewable Energy
Renewable Energy 33
Slide 34: RES – Assets Overview and Pipeline
Segments Review RES – Assets Overview and Pipeline Largest renewable energy platform in Greece with substantial operations abroad, targeting total capacity to reach 6.4 GW within the next seven-year period… Didimos Lofos Greece Eleousa Mitoula Installed Capacity Split by Country 773MW Hilos Derveni-
Slide 35: RES – Flagship Projects for the Greek Energy Sector
Segments Review RES – Flagship Projects for the Greek Energy Sector Kafireas Wind Park Amfilochia Hydro Pumped Storage • Kafireas, Evia, Greece • Amfilochia, Greece • Capacity: 330 MW • Capacity: 680 MW • Capex: €555 m • Capex: €650 m Partial operation by end of • Expected completion 2022 by 2025-20
Slide 36: RES – Near-term Pipeline Overview
Segments Review RES – Near-term Pipeline Overview ✓ >2.0GW of projects in operation, under construction or ready to build ✓ Target of 3.3GW by end 2025 Installed Capacity (MW) 1,222 895 905 YE-2021 YE-2022 YE-2022 inc. 100% of new WP in Evoia Installed Capacity Outlook (GW) ~1.1 ~3.3 >2.0GW ~0.7 Hyd
Slide 37: RES – Asset base performance
Segments Review RES – Asset base performance ✓ Sustainably strong load factors ✓ Offtake mix supports revenues generation despite power price volatility Quarterly portfolio load factor Portfolio historical load factor (2020-22) 38.9% 31.2%32.6% 31.8% 35.7%36.5% 29.2% 29.5% 29.2%30.5% 33.9% 27.0% 27.
Slide 38: RES – Financial performance
Segments Review RES – Financial performance ▪ Installed capacity increases to 905MW from 895MW in end- (€m) FY 2021 FY 2022 2021 following gradual commissioning of new wind park Revenues 224.4 236.2 cluster in Evoia before the end of year adj. EBITDA 161.5 161.1 ▪ 2.0 GW of projects currently in ope
Slide 39: RES – Market Backdrop / Outlook
Segments Review RES – Market Backdrop / Outlook ❖ Ambitious targets vs. challenging realities • Steadfast commitment for RES growth • RePowerEU: EU RES capacity to grow RES by 1,000 GW (Wind – up 3x vs. 2022, PV – up 4x vs. 2022) • Greek Draft NCEP: ~16 GW of RES capacity additions by 2030 (vs. ~10
Slide 40: Thermal Energy Generation, Supply and Trading
Thermal Energy Generation, Supply and Trading 40
Slide 41: Thermal Energy Generation, Supply and Trading – Overview
Segments Review Thermal Energy Generation, Supply and Trading – Overview An integrated and balanced business model offsetting extreme energy scenarios Installed Capacity ~600MW FY 2022 adj. EBITDA per activity c6.0% of Greece’s conventional generation + Trading, ~25% 877MW Under Construction Generat
Slide 42: Thermal Energy – Positioning and Market Backdrop
Segments Review Thermal Energy Generation, Supply and Trading – Positioning and Market Backdrop Strategically positioned to benefit from the shifting market landscape Heron I electricity supply sales (TWh) Heron I sales per segment (Dec’22) Market share interconnected 6.4% 6.9% system 3.4 3.3 40.8%
Slide 43: ESG Highlights
ESG Highlights 43
Slide 44: ESG KPIs
ESG KPIs 2021 2022 People Total number of employees (Greece& Abroad) including JVs 5,470 6,730 Total number of employees (Greece& Abroad) 3,371 4,369 Percentage of female employees (Greece) 28.76% 25.72% Percentage of female employees (Abroad) 21.55% 16.00% Percentage of female employees at the top
Slide 45: Our ESG highlights
Our ESG highlights ✓ Optimum balance between economic performance and responsible environmental and social practices ✓ Operations with direct and indirect economic, social and environmental impact ✓ ESG committee established ✓ Implementation of a sustainable development policy to address such challe
Slide 46: Recent achievements
Recent achievements GEK TERNA participated in CDP Climate Change for the first time in 2022, scoring above Construction Sector and Global Average 46
Slide 47: Appendix
Appendix I. Shareholding and Share Performance II. Group Financials 1Q 2023 47
Slide 48: Shareholding and Share performance
Appendix I. Shareholding and Share performance GEK TERNA shareholding structure TERNA Energy shareholding structure 29.8% GEK TERNA G. Peristeris 37.3% Latsco Hellenic Holdings SarL G. Peristeris 45.7% Other (<5%) 62.7% 7.6% ATALE Enterprises Limited Other (<5%) 11.1% 6.0% GEK TERNA – 3Y share perfo
Slide 49: 1Q 2023 Group Results Review
1Q 2023 Group Results Review
Slide 50: 1Q 2023 Highlights
1Q 2023 Highlights Profitability momentum sustained benefiting from diversified portfolio - Growth in Construction and Concessions more than counterbalanced lower contribution from Energy segment GEK TERNA ▪ Growth in revenues and earnings during 1Q 2023 Group ❑ Group Revenues at € 819.7m (+29.3% y-
Slide 51: Group Revenues and adj. EBITDA
Group Revenues and adj. EBITDA Growth in Construction and Concessions more than mitigates lower contribution from Energy Revenues adj. EBITDA 819.7 123.6 105.0 25.7 Thermal Energy Thermal Energy 634.0 30.4 431.8 RES RES 42.4 405.9 59.7 57.8 Construction Construction 34.0 70.3 297.6 8.3 Concessions C
Slide 52: Consolidated Income Statement
Consolidated Income Statement €m 1Q 2022 1Q 2023 y-o-y Revenues 634.0 819.7 29.3% ▪ Revenues and operating profitability increase driven by EBITDA 89.0 111.2 25.0% growth in construction and concessions Non-cash items(1) 16.0 12.4 adj. EBITDA 105.0 123.6 17.7% Net depreciation 28.2 33.7 EBIT 60.8 77
Slide 53: Debt highlights
Debt highlights Strong liquidity and stable leverage Group Cash and Cash Equivalent (1) (€ m) Group Gross Debt (€ m) 1,558 1,492 3,154 2,993 1,227 2,645 1Q 2022 FY 2022 1Q 2023 1Q 2022 FY 2022 1Q 2023 Group Net Debt (€ m) Group Net Debt / adj.EBITDA (x) 1,596 3.9 1,502 1,417 2.3 2.3 1Q 2022 FY 2022
Slide 54: Investors Contacts
Investors Contacts Argyris Gkonis, IR Officer agkonis@gekterna.com +30 210 6968499 Investor Relations Desk ir@gekterna.com +30 210 6968457 54