Avax S.a. · ATHEX:AVAX
Avax — J&p-Avax — Annual Pan European Small/Mid Cap Conference 2006
20 slides from Avax's conference presentation, Oct 16, 2006
Slide 1: Group Presentation at the Annual Pan European Small/Mid Cap Conference
Group Presentation at the Annual Pan European Small/Mid Cap Conference October 16, 2006
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 experienced a slowdown in the next couple of years as the fiscal crunch, coupled with a revision of the bidding process, caused a shift of government fo
Slide 5: Financial Performance Outlook
Financial Performance Outlook amounts in € m 2005 2006 E chg 2007 E chg Turnover 357.5 360 0% 400-420 11-17% EBITDA 35.9 40 11% ΕΒΙΤDA margin 10.0% 11.1% ΕΒΙΤ 26.5 30 13% ΕΒΙΤ margin 7.4% 8.3% Pre Tax Earnings 20.3 26 28% Pretax margin 5.7% 7.2% Net Earnings 12.8 21 64% Net margin 3.6% 5.8% 5
Slide 6: Construction Financial Highlights – H1 2006
Construction Financial Highlights – H1 2006 • The Group incurred abnormally high expenses in 2004- 2006 as part of its effort to penetrate new international markets and the costly bidding process for large concession-based projects in Greece • The following table illustrates the participation of the
Slide 7: Work-In-Hand (end-Sept '06)
Work-In-Hand (end-Sept ‘06) €1.400 m 1.242 1.053 189 €1.050 m 354 354 €700 m 888 €350 m 699 €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 €525 m • Maliakos-Kleidi Toll-Road
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 €30 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) J&P-AVAX Total Estimated share Budget Start of Construction Declared Preferred Bidder : 16.25% Concession, • Main North-South Highway ~ €0.7 bn H1 2007 15.7% Construction Prequalified : (bid submitted) • Athens Airport Conference, 35% €50 m H1 2007 Convention & Ex
Slide 12: Qualification for Concessions (2/2)
Qualification for Concessions (2/2) J&P-AVAX Total Estimated share Budget Start of Construction Prequalified : (no bid submitted yet) • North. Peloponnese Toll Road 17.5% ~ €1.8 bn H2 2007 • Athens Ring Road Extensions 41.7% ~ €1.0 bn H1 2008 • Limassol Marina 12% ~ €0.1 bn H2 2007 • Paphos Marina 1
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, valuation- wise • profitable, scale & equity stake
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% • project p
Slide 17: Stock Performance
Stock Performance Relative J&P-AVAX Share Price / Index Change Dividend Per Share (in € cents) 190% 40 80% 32 71% 69% 30 28 160% 30 60% 20 20 17 40% 130% 11 12 10 20% 100% 0 0% 70% 2001 2002 2003 2004 * 2005 * * under IAS/IFRS DPS Net Profit Div Payout Ratio 40% Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Ju
Slide 18: Shareholder Base, end-Sept 2006
Shareholder Base, end-Sept 2006 71.0% 11.9% 47.7% 7.5% 23.3% 9.6% Institutionals -Greek Institutionals -Intl Retail Investors J&P Group Other Main Shareholders 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
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