Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Morgan Stanley & Athens Stock Exchange Greek Investment Conference, London, November 2022
51 slides from Admie Holdings Sa's conference presentation, November 2022
Slide 1: Corporate Presentation
Corporate Presentation Corporate Presentation 16th Annual Greek Roadshow in London June 2020 1 November 2022
Slide 2: Presenters
Mr. Ioannis Mr. Manos Karampelas Manousakis CEO, ADMIE HOLDING SA Chairman & CEO, IPTO GROUP Mr. Iason Ms. Eleni Rousopoulos Zarikou Chief Officer of Business Development & Digital Deputy CFO, IPTO GROUP Transformation, IPTO GROUP
Slide 3: Agenda
Agenda 1. Companies’ Overview & Regulation 2. Investment Program Summary 3. International Interconnection Plans 4. Financial Highlights 5. GRID Telecom 6. Appendix
Slide 4: 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 5: ADMIE at a glance
ADMIE at a glance ▪ Sole Transmission System Operator (TSO) in Greece Transmission Distribution Generation Supply Employees1 Transported Energy 1.607 52.4 TWh Network* RAB 12.393km *11,968 km is the distance between Paris, France and Christmas Island, Australia Net Profit1 €2.0bn €69,4m 1FY 2021 5
Slide 6: Electricity Demand & Supply for H1'22
Electricity Demand & Supply for H1’22 Market demand (TWh) Production & Key figures 6,0 Interconnection Mix 4,9 4,7 5,0 4,5 4,04,2 4,2 4,3 4,3 Lignite 3,8 3,7 3,8 3,9 • H1’22 Total Market 4,0 10,8% 9,6% NatGas Demand reached 25.7 3,0 Hydro 2,0 16,2% TWh (+4.5% y-o-y) Other 1,0 34,1% RES • RES contrib
Slide 7: 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 8: ADMIE HOLDING at a glance & IPTO S.A. Overview
1. ADMIE HOLDING at a glance& IPTO S.A. Overview 8
Slide 9: Shareholder Structure
Shareholder Structure Hellenic Silchester & Other Inst. Private Republic Funds Investors Investors 51.1% 9% 23.2% 15.8% 31.12.2021 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: Regulatory Framework
Regulatory Framework Stable regulatory No consumer Allowed framework credit risk Revenue ▪ 4 year regulatory period during ▪ Revenues are not depended ▪ Allowed revenues assure which the respective on state payments remuneration of cost of capital parameters remain stable and cost of debt ▪ Transmis
Slide 11: New Regulatory Framework
New Regulatory Framework Regulatory Period Four years period (2022-2025) Regulatory Asset Base Undepreciated invested capital + maintenance/ (RAB) development CapEx/ WiP + working capital - disposals - subsidies Allowed Revenue (AR) Operator's Allowed Revenue In nominal terms for each year AR = O +
Slide 12: New Regulatory Framework
New Regulatory Framework Required Revenue (RR) Amount recovered through System usage charges RR = AR ± Κ ± P1 ± P2 - P3 ± P4 ± P5 ± P6 ± P7 ± INF ± EFF - LD - UP ± INC ±Κ : cost of investments financed by 3rd parties ± P1 : settlement due to under-/over-recovery of RR ± P2 : settlement due to deviat
Slide 13: Update Regulatory Framework
Update Regulatory Framework RAE’s Decision 587/2022 on Regulatory Period 2022-25 Consultation for WACC & AR Allowed Revenue RAB (by 2025) (by 2025) End May ‘21 RAE Consultation for New Methodology € 413.0 million € 2,473.2 million Beginning July RAE Decision for New Methodology Beginning IPTO’s Prop
Slide 14: Investment Program Summary
2. Investment at a glance Program Summary 14
Slide 15: Key milestones in 2022
Key milestones in 2022 Ariadne Interconnection Crete- Peloponnese International Interconnection Interconnections Interconnection of Interconnection of Cyclades Skiathos • The second interconnection • Phase IV has been included in • In July 2022, Skiathos-Evia • IPTO announced the of Crete with the m
Slide 16: Major Projects 2022-2031
Major Projects 2022-2031 Cyclades Cyclades Cyclades Skiathos Cyclades Dodecanese Phase A Phase B Phase C Phase D 20 2018 2019 2020 2021-22 2023 2024 2025-27 Peloponnese Crete Phase I Crete Peloponnese North Corridor A’ Phase II Corridor B’ Aegean 16
Slide 17: Network Development Plan 2023-2032
€m Network Development Plan 2023-2032 Expected Total project ID Project description commissioning cost M€ Major Project Locations First 400 kV branch to Peloponnese 1 2023 119 (Megalopoli - Patras - Acheloos - Distomo) 4 2 Cycladic Islands Ιnterconnection (Phase D) 2024 383 3 Crete Interconnection (
Slide 18: Crete – Attica Interconnection
Crete – Attica Interconnection ✓ The project is considered Project of Major Importance (PMI), so a Premium rate of Attica return can be approved by the regulator (RAE), on top of the normal rate of return. The Peloponnese percentage of the premium return can be from 1%-2.5% and is provided from the
Slide 19: International Interconnection Plans
3. International Interconnection at a glance Plans 19
Slide 20: International Interconnection Plans (1/2)
International Interconnection Plans (1/2) 2nd interconnection with Crete- 2 Peloponnese with nd interconnection 2nd interconnection with Interconnection with Bulgaria Interconnection Turkey Albania North Macedonia Scope: possibility to Scope: possibility to upgrade Scope: 2nd 400kV Scope: 2nd 400kV
Slide 21: International Interconnection Plans (2/2)
International Interconnection Plans (2/2) 2nd interconnection with Crete- Peloponnese Interconnection with International Italy Interconnection Egypt Interconnections EuroAsia Interconnector Scope: 2nd submarine Scope: submarine • Contribution to the Security of •Supply IPTO announced the interconnec
Slide 22: SEleNe CC
SEleNe CC State of play SEleNe CC is one of the six Europe’s Regional Security Coordinators (RSCs). ❑ Currently 2 RSCs in Southeastern Europe 1. SCC in Belgrade - Shareholders TSOs from Serbia, Bosnia - Herzegovina and Montenegro. 2. SEleNe CC in Thessaloniki - Shareholders TSOs from Greece, Italy,
Slide 23: Financial Overview
4. Financial at a glance Overview 23
Slide 24: IPTO Group H1'22 Highlights
IPTO GROUP H1’22 Highlights TOTAL REVENUES EBITDA Net PROFIT €137.5m €91.2m €24.1m H1’21 €137.7m (-0.2%) H1’21 €96.7m (-5.7%) H1’21 €40.9m (-41.1%) ✓ Revenue from Transmission System Rent ▪ Higher depreciation expense (+3.4m) decreased to 128.7€m from €130.8m (- ✓ The EBITDA margin stood at 66.1%, r
Slide 25: Profitability
Profitability EBITDA EBIT Net Income 66% 70% 28% 35% 18% 30% Reported Reported Reported 96,7 47,9 40,9 91,2 39,0 24,1 Η1 2022 Η1 2021 Η1 2022 Η1 2021 Η1 2022 Η1 2021 66% 69% 28% 33% 17% 22% 45,9 Adjusted Adjusted Adjusted 30,6 90,4 94,7 38,2 23,7 Η1 2022 Η1 2021 Η1 2022 Η1 2021 Η1 2022 Η1 2021 Adjus
Slide 26: H1'22 Adjusted EBT evolution
H1’22 Adjusted EBT evolution Key figures Adjusted EBT (€m) Revenue • Combined effect due to decrease of Revenues (18.2%) from transmission system rent (net) and Revenue from other operations by €6.2m and an increase of revenue from Balancing Market (new revenue stream in 2022) by €5.9m. Personnel Ex
Slide 27: Cash Flow & Net Debt
Cash Flow & Net Debt Key figures Cash Flow evolution (€m) Net Debt Leverage € 679.6 million 3.6x Net Debt/adj. EBITDA* Coverage ratio Leverage ~6x Interest coverage 0.49x Net Debt/Equity ratio** *adj. EBITDA FY 2021 **EBIT/Interest Expense 27 | Solid balance sheet in strong position to support inves
Slide 28: ADMIE Holding H1'22 Highlights
ADMIE HOLDING H1’22 Highlights €12.3m €378k +21.7% y/y Share of -41.1% y/y Reported Investments (Income) OPEX €45k €0.068 -20% y/y Payment of -26.1% y/y Net Financial Interim Dividend Income Per Share 28 | Active cash management benefits offset higher OPEX
Slide 29: Dividend Policy
Dividend Policy ✓ Average dividend yield since listing ~4% 0,0289 0,0179 0,0285 ✓ Bound to distribute 0,089 0,0854 based on a minimum 0,068 0,0316 0,06 payout ratio of 50% 2018 2019 2020 2021 2022 (IPTO SA) Interim Dividend Remaining Dividend 2019 2020 2021 2022 ✓ ADMIE Holding SA is Dividend per sh
Slide 30: IPTO's Strategic Plan 2021-2024
IPTO’s Strategic Plan 2021-2024 Security, reliability and resilience to a difficult and changing environment 1 People, environment and 2 governance Development of grid and new 4 activities for energy Exploitation of transition 3 infrastructure and expertise for value- added services 30
Slide 31: IPTO 2021-2025 outlook
IPTO 2021-2025 outlook EUR 2021 Guidance Comments Regulated €2B ~€3.2B (2024-25) Increase 60% Asset Base (RAB)* Investments Ariadne Interconnection €413M ~ €1.8B (2025) (System & Users) included Consolidated with Ariadne EBITDA* €191.1M ~ €300M (2025) Interconnection * Figures from ‘’Grid Telecom’’
Slide 32: GRID Telecom
5. GRID at a glance Telecom 32
Slide 33: Map of Fiber Optic Infrastructure
Map of Fiber Optic Infrastructure ✓ IPTO’s vehicle for providing telecom services to national and international operators ✓ Lean team of experts with significant experience in the Telecom market ✓ Fiber optic network (terrestrial and submarine) exceeds 4.000km throughout Greece ✓ Reaching already al
Slide 34: Services
Services Provision of Dark Fiber High-speed capacity services Collocation services in through IPTO’s terrestrial (nx10G and nx100G) via a IPTO’s High Voltage Centers, and submarine network state-of-the-art DWDM Substations and on the infrastructure combining network accompanied by Transmission Tower
Slide 35: UFBB / JV Grid Telecom - Terna
UFBB / JV Grid Telecom - Terna GRID-TERNA (LOTs : 2, 4, 5, 6) 5 4 OTE (LOTs : 1, 3, 7) 4 2 6 2 5 6
Slide 36: Grid Telecom establishes Crete as a strategic hub in the Med
Grid Telecom establishes Crete as a strategic hub in the Med Minoas East and West Apollo East and West Minoas East and West are Apollo East and West are fiber optic cables attached fiber optic cables in parallel to power cables. (but not attached) to power cables. Minoas East was RFS in December, 20
Slide 37: Cable Landing Stations and Data Centers
Cable Landing Stations and Data Centers ✓ The Island of Crete is fast developing into an important telecommunications hub and a data access point for the BalkanMed region. ✓ Telecom Italia Sparkle and OTEGlobe already operate cable landing stations ✓ New additional Tier-III data centers have been an
Slide 38: Expansion of Connectivity
Expansion of Connectivity The Ionian Greece – Egypt TEAS EuroAsia System Connectivity Trans Europe Asia System Interconnector Grid Telecom and Grid Telecom and Cinturion has signed a Quantum subsea Islalink have signed Telecom Egypt have “Heads-of-Agreement” optical fiber cable signed “Heads –of- wi
Slide 39: Thank you
Thank you For additional information please contact ADMIE Holding Investor Relations Division Head: George Eleftheriou, CFA Tel: +30 210 3636 936 E-mail: ir@admieholding.gr or visit: www.admieholding.gr
Slide 40: Appendix
6. Appendix IPTO key financial items/ Regulatory Framework
Slide 41: Interconnection of the Islands
INTERCONNECTION OF THE ISLANDS Main Objectives 41
Slide 42: IPTO selected items
IPTO selected items Group Group Balance sheet Profit & Loss Statement 30.06.2022 31.12.2021 30.06.2022 30.06.2021 Chg % yoy Non-current assets 2,832.9 2,799.8 System rent 128.0 130.8 -2.1% Current assets 491.1 513.9 Total revenues 137.5 137.7 -0.2% Reversals/(Provisions & Impairments) -1.0 -2.5 -58.
Slide 43: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 30.06.2022 31.12.2021 P&L 30.06.2022 30.06.2021 Non-current assets 737.7 742.7 Income from Affiliate 12.3 20.8 Current assets 21.0 4.2 EBITDA 11.9 20.5 of which: Cash & equiv. 20.8 4.0 Operating Income 11.9 20.5 Total Assets 758.7 747.0 Net profit 11.9 20.6
Slide 44: Regulatory overview
€m Regulatory overview Year 2022 2023 2024 2025 Average RAB 2,041.9 2,248.6 2,408.1 2,473.1 x WACC (real, pre-tax) 6.1% 6.1% 6.1% 6.1% = Allowed remuneration 124.5 137,2 146.9 150.8 + Authorized OPEX 87.9 86.2 112.6 144.1 + Regulatory Depreciation 87.5 94.8 107.1 118.1 = Allowed revenue 299.9 318.2
Slide 45: Regulatory period 2022 – 2025
Regulatory period 2022 – 2025 €m Regulated Asset & Rate of Return Allowed Revenue build out 6,10% 6,10% 6,10% 6,10% 413,0 3.500 100% 366,6 90% 3.000 318,2 711,1 80% 299,9 50,5 364,8 25,9 2.500 70% 60% 149,7 2.000 142,8 131,3 50% 123,9 1.500 40% 2.408 2.473 118,1 2.249 30% 87,5 94,8 107,1 1.000 2.042
Slide 46: WACC calculation
WACC calculation WACC components 2022 - 2025 Risk-free 0.5% Market risk 5.5% Equity beta 0.80 Country risk 1.5% Cost of equity post-tax 6.4% Tax rate 22.0% Cost of equity pre-tax 8.21% Cost of debt pre-tax 2.8% Gearing 39.0% WACC nominal 6.10% pre-tax 46 Source: RAE
Slide 47: 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 48: 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 49: 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 50: 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: H1 2021 Estimated budget: c. €292m Peloponnese Contractualisation: 11.201
Slide 51: 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