Ellaktor Sa · ATHEX:ELLAKTOR
Ellaktor Sa — 9M 2023 Earnings Presentation
48 slides from Ellaktor Sa's earnings presentation, November 2023
Slide 1: Investor Presentation Including 9M'23 Financial Results
Investor Presentation Including 9M’23 Financial Results November 2023 1
Slide 2: Disclaimer
Disclaimer. This presentation has been prepared by ELLAKTOR S.A. The information included in this presentation may be We caution readers of this presentation not to place (the “Company”). subject to updating, completion, revision and undue reliance on these forward-looking statements amendment and s
Slide 3: Table of Contents
Table of Contents. 1. Group 2. Key Financial 3. Business 4. Business Units 5. Economic 6. Appendix Introduction Figures Update Outlook 3
Slide 4: 1. Group Introduction
1. Group Introduction mn. \ MW " i = ae Wi MN
Slide 5: Ellaktor History
Ellaktor History. 1950’s 1996 2001 2003 2008 2018 2019 2020 2022 2023 Establishment First concession Entry into Entry into Signed 3 of 5 Acquired 1. Merger by 1. Signed the Sale of 75% of 1. Sale of of AKTOR project signed Renewable Environment major additional 6.5% absorption wi
Slide 6: Ellaktor The Leading Infrastructure Company in Greece
Ellaktor Visible, predictable, long term cash flows from The Leading Infrastructure critical infrastructure assets complementing a Company in Greece. leading construction business Concessions Environment Real Estate Renewables (1) 100% ownership 94.4% ownership 55.5% ownership 25% ownership Largest
Slide 7: Ellaktor Growing Portfolio
Ellaktor Legend Growing Attiki Odos ring road Rion-Antirrion bridge Portfolio. Thessaloniki Moreas motorway Alexandroupolis Aegean motorway Olympia Odos Alimos Marina Car park (min 20% stake) Significant infrastructure and Wind (Operating) Wind (Under Construction) energy investments all over Lamia
Slide 8: Mission. Vision.
Mission. Leveraging our people’s unique expertise, we deliver high – quality infrastructure, energy and waste management projects, we foster circular economy innovative solutions while enhancing our alternative energy footprint, creating value for our shareholders, our employees and the Greek Econom
Slide 9: ESG Footprint-Environment
ESG Footprint-Environment. 2022 Key 2022 0.3 8% 0.28 0.27 251 49% 36% Achievements 248 3% 250 4% 260 0.25 0.24 Scope 1&2 GHG Electricity Waste incinerated 210 0.2 emissions per Diesel Petrol Energy 2020 2021 2022 source Natural gas Heating oil/LPG/CNG New Group Environmental consumption Energy consu
Slide 10: ESG Footprint-Social & Governance
ESG Footprint-Social & Governance. 7500 40% Key 2022 7,245 7,296 7,329 2022 92 Achievements 26% 27% 30% 24% 2021 94 7000 20% 2020 95 Employees 2020 2021 2022 % of supplies acquired Number of employees from local suppliers 85 90 95 100 Signed the Women Women Empowerment Principles 50 (WEPs) 27 43 S 2
Slide 11: ESG Ratings
ESG Ratings. Score(1) Rating Scale Rating Agency Comments Nov 2023 Dec 2022 Dec 2021 (low to high) 10 5 5 Environment 4 3 2 1 2 2 2 10 - 1 100 Social 0 Governance 68.0 69.9 67.0 110 ✓ 5th highest score among the 0 - 100 Included for the first primarily ASE listed companies (2) 50 time in 2022 80 80
Slide 12: EU Taxonomy-FY2022
Construction 3% EU Taxonomy-FY2022. OpEx Environment 4% Revenues 22% Concessions 13% 15% 63% Construction 17% RES (disc.) 56% Construction 2% Environment 3% 29% 30% RES (disc.) 10% CapEx 41% Other 1% Environment 1% Construction 61% Construction 15% Concessions 14% Concessions 26% 10% 16% 74% RES (di
Slide 13: 2. Key Financial Figures
2. Key Financial Figures y ELLAKTOR GROUP
Slide 14: Group Financials
Group Financials. Discontinued Operations (D.O.) Revenues & EBITDA Earnings Before Tax 8% 6% 4% 18% 23% 20% 150 91 2,000 1,857 100 50% (1) 68 (16) 50 (3) 75 1,500 1,274 0 1,044 916 969 892 (26) 1,000 -50 (29) 239 -100 197 (84) 500 143 165 (0.4) 81 -150 34 164 197 (150) 81 0 -200 (2) (3) (4) 2018 201
Slide 15: Financial Overview
Financial Overview D.O. Concessions Environment Consolidated (1) Real Estate D.O. RES Construction 279 555 1,044 123 11 552 269 10 106 100 Revenues 969 115 8 24 916 233 109 463 2021 2022 Q3'23 LTM 2021 2022 Q3'23 LTM 2021 2022 Q3'23 LTM (2) 2021 2022 Q3'23 LTM 2021 2022 Q3'23 LTM 2021 2022 Q3'23 LTM
Slide 16: Financial Highlights 9M'23
Financial Highlights 9M’23. 1. C.O. Revenue at €284m, -2.8% YoY. 5. Group Net Cash(1): €168m vs. Net Cash(2) of €152m at the end of 2022. 2. C.O. EBITDA at €147m, increased by 27% vs. the same period of last year. Consolidated (C.O. + 6. Equity attributable to shareholders at D.O.) EBITDA at €133m.
Slide 17: 9M'23 Group Revenue & EBITDA
9M’23 Group Revenue & EBITDA. (C.O. -€7m, -7%) Revenue QoQ (€m) €m 9M'22 9M'23 Δ% Q3’22 LTM Q3’23 LTM Δ% C.O. D.O. RES D.O. Constr. Concessions 197.5 207.1 5% 264.7 278.6 5% Environment 88.1 74.9 (15%) 119.7 109.2 (9%) Revenue 305 Real Estate 6.5 7.6 17% 9.4 10.9 16% 259 Other 0.3 1.1 220% 0.5 1.3 1
Slide 18: Group Net Debt Breakdown
Group Net Debt Breakdown. (1) Total Debt (€m) Cash & Liquid Assets (€m) Net Debt (Cash) (€m) 406 411 213 619 188 600 20 34 212 202 365 356 344 336 407 397 (152) (168) 41 41 31.12.22 30.9.23 31.12.22 30.9.23 31.12.22 30.9.23 Restricted Cash x-Moreas Group x-Moreas Moreas Group x-Moreas Moreas Group x
Slide 19: 3. Business Update
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Slide 20: Group Business Update
Group Business Update. Balance Sheet Transformation Business Outlook Sustainable, visible, long-term earnings streams. Ample opportunities from substantial PPP and Unlevered capital structure. Concessions pipeline for future tenders. Transactions Platform value backed by adequate liquidity and exten
Slide 21: 4. Business Units
4. Business Units 21
Slide 22: Concessions
Concessions. Attiki Odos Olympia Alimos Aegean Gefyra Moreas Portfolio comprising 5 65.8%(1) ownership Odos Marina Motorway 27.7% ownership Motorway of Greece’s 7 key toll 17% ownership 100% ownership 22.2% ownership 71.7%(1) ownership roads and the largest marina in South-East Europe with a stagger
Slide 23: Concessions: 25 Years of Significant Capital Investment
Concessions. 25 YEARS OF SIGNIFICANT CAPITAL INVESTMENT Kalamata – Rizomylos – Pylos - Methoni €114m €88m €46m €36m €30m €32m €22m (1) (2) (3) (4) AC Committed Investment participation ✓ Northern Axis of Crete PPP : €7m (1) €54.5m of initial AO Committed Investment has been paid back in 2021 (2) €12
Slide 24: Concessions: Dividends and Other Payments
Concessions. 115 Earlier investments 84 72 44 55 47 already yielding significant cash flows (1) 2017A 2018A 2019A 2020A 2021A 2022A 2023 2024 2025 2026-2028 Attiki Odos Dividends and other Payments(2) (€m) Early Stage Mature Stage Total Attiki Odos 2027 Aegean Motorway 2027 2038 Recent investments t
Slide 25: Concessions Sector Outlook
Concessions Sector Outlook. Growth dynamics in infrastructure Projects currently under tender or preparation through next generation EU’s Recovery Funding ✓ Buildings (Uni Halls, Schools, Judicial buildings etc.) – c. €1.5bn • Privatization processes in Greece PPPs ✓ Dam –Irrigation and Water supply
Slide 26: Concessions Highlights 2023
Concessions. Highlights 2023 • Increased road traffic, Attiki Odos sees 10.2% YoY growth in 9M'23, up 10% from pre-Covid levels in 9M’19. • On 21.4.2023, AKTOR Concessions (60%) and INTRAKAT (40%) jointly signed a 30-year PPP for the Southwest Peloponnese road axis. • GEK TERNA (55%), INTRAKAT (25%)
Slide 27: Environment
Environment. Investor Technology Provider EPC Contractor Operator Finances selected Expertise in construction Uses knowledge Operates and waste management of waste management and expertise to maintains treatment / waste-to-energy facilities know-how design and and waste-to-energy projects relating t
Slide 28: Environment
Environment. Larnaca, Cyprus Attika, Greece Leachate Attika, Greece Treatment Fully and vertically Plant, integrated solutions Ano-Liossia, spanning across the waste Greece management sector Recycling • HELECTOR has Treatment significant experience in the design of • Treatment of the material recycl
Slide 29: Waste Management Sector Outlook
Waste Management Sector Outlook. Key new opportunities in Greece (capacity to be tendered for MBTs) • Compliance with EU & Greek waste management legislation will eventually (expected within the next 5-year period) result to the development of corresponding Eastern Macedonia/Thrace infrastructure. A
Slide 30: Environment Highlights 2023
Environment. Highlights 2023 • HELECTOR has been declared preferred bidder in projects totaling €42m for construction and €10m plus €10m pre-emption right for operation. • In Q3'23, the company signed projects that are expected to increase its (own stake) construction backlog by €19m and operation b
Slide 31: Real Estate Highlights 2023
Real Estate. Highlights 2023 • On October 10, 2023, REDS S.A. and Trade Estates REIC signed a Share Sale & Purchase Agreement for the sale of the entity owning Smart Park. • The retail park is exhibiting robust performance, with occupancy near 100% and footfall increasing by 14% and 18% in Q3'23 and
Slide 32: Real Estate Outlook
Real Estate Outlook. Cambas Park Gournes Project Property status: REDS (87%) & Ellaktor (13%) own a total land surface of Property status: REDS owns a total land surface of appr. 346,000sq.m. for appr. 315,000sq.m. for the development of commercial uses assets with the development of commercial uses
Slide 33: Renewable Energy Sources
Renewable Energy Sources. Highlights • During 2022, Ellaktor proceeded with a hive down of the RES sector and the subsequent sale and transfer of 75% of the shares to Motor Oil Renewable Energy (MORE) • As a result, Ellaktor’s stake in the new company reached 25% • Closing of the transaction was com
Slide 34: Construction (Discontinued Operations)
Construction (Discontinued Operations). Highlights 2023 • New projects worth €325m were signed during the first nine months of 2023, with additional €17m worth of projects secured after September 30, 2023. AKTOR and its subsidiaries have also been selected as preferred bidders for projects budgeted
Slide 35: 5. Economic Outlook
5. Economic Outlook 35
Slide 36: Macro Trends
Macro Trends. Greece: Economic Outlook Projections 2022 2023E 2024E 2025E 2026E Real GDP (% change) 5.9 3.6 3.4 3.4 3.3 Nominal GDP (% change) 14.5 5.7 4.9 5.0 5.0 Inflation rate (%) 9.2 3.2 1.6 1.8 1.8 Unemployment rate (% of labour force) 12.4 11.4 11.2 10.9 10.6 Non-residential RE prices (% chang
Slide 37: Macro Trends
Macro Trends. Investment & Net capital stock Real GDP Growth (Euro Area) (+20%) 4.0% 3.6% (293) 3.0% 2.3% (275) 292 (386) 427 820 1.8% 444 2.0% (163) 1.1% 1.3% 1.3% 1.0% 0.7% 505 269 1.0% 0% 1990-1999 2000-2009 2010-2022 2023F-2032F (1.0%) (0.6%) Greece Portugal EA Stock Stock 1989 Capital Gross Cap
Slide 38: Macro Trends
Macro Trends. Gross Debt (% of GDP) GGB 10yr yield 250% 9% 203% 191% 8% 200% 172% 177% 175% 173% 177% 176% 183% 177% 169% 164% 159% 152% 144% 7% 146% 150% 135% 6% 5% 100% 4% 3% 50% 2% 1% 0% 0% Loans Bonds General Government Gross Debt (% of GDP) AAA/Aaa Greek LT rating history Primary Budget Balance
Slide 39: EU Funds
EU Funds. • Greece is expected to significantly benefit from the RRF, which is envisaged to catalyze growth and economic transformation in the EU area Significant Economic Stimulus Funds from the EU • The highest allocation of grants in Europe on a percentage of GDP basis (c. 15%) • c. +7.7% estimat
Slide 40: 6. Appendix
6. Appendix 40
Slide 41: Consolidated P&L (IFRS 5)
Consolidated P&L (IFRS 5). Continuing Operations Discontinued Operations Total €m 9M'22 9M'23 Δ% 9M'22 9M'23 Δ% 9M'22 9M'23 Δ% Net sales 292.0 283.9 (3%) 446.6 380.5 (15%) 738.6 664.5 (10%) Cost of Sales* (143.3) (116.9) 18% (374.5) (381.2) (2%) (517.8) (498.1) 4% Gross profit 148.7 167.1 12% 72.1 (
Slide 42: Consolidated Balance Sheet (IFRS 5)
Consolidated Balance Sheet (IFRS 5). €m Dec.'22 Sep.'23 Δ% €m Dec.'22 Sep.'23 Δ% PPE, Intangible assets & Investment Property 632.6 449.4 (29%) Equity excl. non-controlling interests 827.9 860.2 4% Investment in subsidiaries, associates and joint ventures 203.7 207.7 2% Non-controlling interests 85.
Slide 43: Consolidated Cash Flow (IFRS 5)
Consolidated Cash Flow (IFRS 5). €m 9M '22 9M '23 Δ% Cash and equivalents at start of period ▪ C.O. Operating Cash Flow at €99m (+28% YoY). 357.9 413.5 16% CFs from Operating Activities (C.O.) 77.3 99.3 28% ▪ Cash Flow from Investment Activities CFs from Operating Activities (D.O.) (37.4) (95.3) <(1
Slide 44: Concessions
Concessions. Revenue QoQ (€m) 74 ▪ Robust operational performance, as EBITDA profitability 72 witnessed a remarkable 26% and 25% YoY growth for the 70 Q3 and 9-month period respectively. 68 ▪ Adjusting for the non-recurring snowstorm-related expense 66 71.5 72.1 70.9 70.8 incurred in 2022, EBITDA ye
Slide 45: Environment
Environment. Revenue QoQ (€m) 40 ▪ Turnover for 9M’23 decreased by 15% to €75m, which was 35 the blended result of: 30 ▪ Increased input volumes and gate fees in Larnaka and Kozani 25 (+ve). 20 34.3 ▪ The full consolidation of the clinical incinerator operation (+ve). 15 32.4 24.1 25.4 25.4 ▪ Cessat
Slide 46: Real Estate
Real Estate. Revenue QoQ (€m) 4 ▪ Revenue growth at +15.4% and +16.8% for the Q3 and 9M’23 periods, respectively. 3 ▪ 9M’23 EBITDA at €9.6m, or 2.6x YoY, which was flattered 2 by the disposal of two non-core plots of land in Romania at 3.3 a profit of €5.8m in Q2’23. 2.3 2.5 2.5 2.7 1 ▪ Underlying E
Slide 47: Construction (Discontinued Operations)
Construction (Discontinued Operations). Revenue QoQ (€m) 200 ▪ 9M’23 Revenue growth was +2.5% YoY, supported 180 160 by new domestic projects and the acceleration of the 140 Centura project in Romania. 120 100 ▪ EBITDA losses of €14m for 9M’23 due to the 80 132.0 171.6 140.8 completion of old loss-m
Slide 48: Stock performance & Shareholders
Stock performance & Shareholders. Shareholder Composition (Current) Headline Metrics (as of 23/11/2023) Foreign Retail (<5%) Institutional 10.1% • Number of Shares Outstanding 348.2m • Share Price € 2.27 Investors 2.8% • Market Cap € 778m • YTD Price Performance 29.71% Greek Reggeborgh Institutional