Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — 2nd Athex Mid Cap Conference, May 2019
41 slides from Admie Holdings Sa's conference presentation, May 2019
Slide 1: Corporate Presentation
Corporate Presentation May 2019 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: Content
Content 1 ADMIE Holding & IPTO Overview 2 Islands Interconnection 3 Ariadne Interconnection 4 Grid Telecom 5 Appendices (A,B) 3
Slide 4: '18 focused on transmission system growth
’18 focused on transmission system growth
Slide 5: '19 progressing on transmission system growth
’19 progressing on transmission system growth 5
Slide 6: Owned and maintained High-Voltage lines across Greece
11,801km Owned and maintained High-Voltage lines across Greece 11,868 km is the distance between Paris, France and Christmas Island, Australia
Slide 7: Investment proposition
Investment proposition Natural monopoly in Greece 11,801 km of HV transmission lines Boosting dividend returns Reduced borrowing costs and established minimum 50% earnings Investments payout c. €4b of cumulative investments from 2019 to 2027 Rational regulatory Leading TSO as stakeholder environment
Slide 8: Overview
1. Overview ADMIE Holding trading vehicle for natural monopoly Independent Power Transmission Operator (IPTO)
Slide 9: Full Ownership Unbundling – Corporate Structure
Full Ownership Unbundling – Corporate Structure Hellenic Silchester & Other Inst. Private Republic Funds Investors Investors 51.1% 13.0% 23.3% 12.6% 29.03.2019 Athens Stock Exchange ATHEX: ADMIE 51.0% Bloomberg: ADMIE GA Reuters: ADMr.AT 232,000,000 common shares 25.0% 24.0% 9
Slide 10: Key milestones
Key milestones • RAE: new regulatory review • Inauguration of 2018-21 Attica - Crete Full Ownership • Inauguration of interconnection TSO legislation Unbundling law Phase A’ Cyclades Refinance of Syndicated • ARIADNE (4001/2011) (4389/2016) ADMIE Holding est. Interconnection Bond Loan Interconnectio
Slide 11: Action Plan
Action Plan Grow • Expand current transmission network • Developpng into a modern TSO as a Group of Companies Strategy • Maintain Transmission Leadership • Create value for all stakeholders Unbundle 1 2 3 • IPTO owns, manages and operates network independently from generation / production / supply •
Slide 12: IPTO 2018 Financial Highlights
IPTO 2018 Financial Highlights Solid performance leveraging on €85.6m Net Profit investments +38.6% -73.1% €183.0m Net Financial €178.2m EBITDA Expenses CapEx +6.4% +154% 12
Slide 13: IPTO 2018 Investment Highlights
IPTO 2018 Investment Highlights Establishment of Ariadne Interconnection for the financing and construction of the Attica - Crete Interconnection (€1b - Crete II) Commissioning of Phase Α of Cycladic islands interconnection (€247m) Investment acceleration with contracting of major projects: o Pel
Slide 14: IPTO selected items
€m IPTO selected items IPTO S.A. Group IPTO S.A. Group P&L Balance sheet 2017 2018 Chg yoy 2018 31.12.2017 31.12.2018 31.12.2018 System rent 236,9 222,7 -6,0% 222,7 Non-current assets 1.607,4 1.876,3 1.676,3 Total revenues 256,5 249,2 -2,8% 249,2 Current assets 2.131,3 1.235,9 1.436,3 Reversals/(Pro
Slide 15: ADMIE Holding 2018 Highlights
ADMIE Holding 2018 Highlights • Net profit €42.3m, +83.4% YoY €42.3m Net Profit • OpEx stood at €244k, -75% YoY (2017: ad hoc establishment costs) • Active cash management led Financial Income to €0.0316 per share €156k, partially offsetting OpEx Interim Dividend 2018 • Interim dividend distributed
Slide 16: ADMIE Holding selected items
€m ADMIE Holding selected items Balance sheet 31.12.2017 31.12.2018 P&L 2017 2018 Non-current assets 520,1 550,5 Income from Affiliate 24,0 42,4 Current assets 2,3 14,7 EBITDA 23,1 42,1 of which: Cash & equiv. 2,2 4,8 Operating Income 23,0 42,1 Total Assets 522,4 565,2 Net profit 23,0 42,3 Cash flow
Slide 17: Demand & Supply
Demand & 6,0 Market demand (TWh) Net Production mix 5,2 5,0 5,0 0,0% 4,9 4,8 Supply 5,0 4,7 4,7 4,6 4,24,2 4,2 4,2 4,24,3 4,14,2 4,14,1 3,9 3,83,9 4,0 3,73,7 3,9 24,6% 33,0% Lignite 3,0 NatGas 2,0 Hydro • Consumption at c 51.5 11,2% RES* 1,0 TWh 0,0 Other 31,3% • Lignite at 33.0% in 2018 Jan Feb Mar
Slide 18: Islands Interconnection
2. Islands Interconnection
Slide 19: 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 20: IPTO Major Projects
€m IPTO Major Projects Major Project Locations Expected Project Cost ID Project description commissioning (2019-27) 7 1 Corridor A’ 400 kV to Peloponnese (OHL 2019 67 Megalopoli – Patras – Acheloos) 400 kV Cycladic Islands Ιnterconnection (Phases B 2020 150 kV 2 Phase B 2019 125 and C) Phase C 2020
Slide 21: Major Projects 2018-2027
Major Projects 2018-2027 (Expected commissioning year) Cyclades Cyclades Cyclades Cyclades Dodecanese Phase A Phase B Phase C Phase D 20 2018 2019 2020 2021-22 2023 2024 2025-27 Peloponnese Crete Crete Peloponnese Corridor A’ Phase I Phase II Corridor B’ 21
Slide 22: Crete Interconnection
Crete Interconnection Interconnection of Crete with the mainland through two distinct links The project is implemented in two phases (I, II) Phase I : Connection Peloponnese - Crete Attica Commissioning: 2020 Estimated budget: c. €330m Peloponnese Contractualisation: 11.2018 - Fulgor: western submar
Slide 23: Crete Interconnection
Crete Interconnection Phase II: Connection Attica - Crete Commissioning: 2022 Attica Estimated budget: c. €1b Implementation: Ariadne Interconnection Peloponnese The Company has submitted to the Energy Regulatory Authority (RAE) the Invitation for Expression of Interest for the entry of one or more
Slide 24: 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 25: 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 26: A new IPTO below IPTO arises
3. Est. September 2018 A new IPTO below IPTO arises
Slide 27: Manos Manousakis, CEO of IPTO; Iason Rousopoulos, Ariadne Interconnection BoD member
“… by undertaking the most important infrastructure project currently under construction in Greece and one of the most important interconnections across Europe, IPTO becomes an even stronger company and consolidates its leading position in the power transmission energy industry” Manos Manousakis, CE
Slide 28: Attica - Crete Interconnection
Attica - Crete Interconnection Establishment of a 100% subsidiary SPV (Special Purpose Vehicle – SPV) named Ariadne Interconnection SPSA Scope: to finance and construct the project Crete – Attica Interconnection A 2x500MW capacity DC link consisting of two 340km submarine cables and additional under
Slide 29: Attica - Crete Interconnection
Attica - Crete Interconnection Project of Major Importance (PMI): a premium rate of return can be approved by the Greek Energy Regulator (RAE), on top to the rate of return for specific projects that are characterized PMI’s The percentage of the premium return can be from 1% to 2.5%. Decision pertai
Slide 30: Grid Telecom
TELECOM ‘Ne Est. January 2019
Slide 31: Services
Services In the near future Grid Telecom will be Having direct access to the extended proving collocation services to mobile (2.500 km) fiber optic network throughout telecom operators on IPTO’s Powers Pylons Greece owned by IPTO, Grid Telecom which are set up all over Greece. provides super high sp
Slide 32: Map of Fiber Optic Network
Map of Fiber Optic Network — Terrestrial seeeeee Terrestrial Under Development — Submarine saeeeee Submarine Under Development
Slide 33: Appendix A
Appendix A IPTO key financial items 33
Slide 34: Revenue & EBITDA
Revenue IPTO Revenues IPTO EBITDA €m 184,0 & EBITDA 256.5 -2.8% 249.2 182,0 180,0 +6.4% 73,4% 76,0% 74,0% 72,0% 15,1 178,0 70,0% • Revenues -2.8% YoY 4,6 13,8 176,0 67,0% 183,0 68,0% 174,0 12,8 66,0% 172,0 • System Rent -6.0% YoY 236,9 170,0 64,0% 222,7 172,0 168,0 62,0% due to the temporary 166,0 6
Slide 35: Net profit higher on various drivers
€m Net profit higher IPTO Net profit on various drivers 11,0 18,1 -2,2 85,6 61,7 • EBITDA increase mainly -3,0 due to a provision release regarding a dismissal of a contractor lawsuit • Successful implementation of Group’s financial strategy led to a drop in net IPTO Cash flow ladder financial expen
Slide 36: Appendix B
Appendix B Regulatory Framework
Slide 37: 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 38: Regulatory period 2018 – 2021
Regulatory period 2018 – 2021 €m 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 39: 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 40: 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 41: Contact
Contact For additional information please contact ADMIE Holding Investor Relations Tel: +30 210 3636 936 E-mail: office@admieholding.gr or visit: www.admieholding.gr
ADMIE Holding — 2nd Athex Mid Cap Conference, May 2019 on 6ix