Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Investor Presentation (January 2021)
38 slides from Admie Holdings Sa's investor presentation, January 2021
Slide 1: Corporate Presentation
Corporate Presentation Jan 2021 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: Agenda
Agenda 1. ADMIE HOLDING S.A. & IPTO S.A. Overview 2. Investment Program Summary 3. Financial Highlights 4. GRID Telecom 5. Appendix
Slide 4: ADMIE at a glance
ADMIE at a glance ▪ Sole Transmission System Operator (TSO) in Greece Transmission Distribution Generation Supply Employees Transported Energy 1.252 52.2 TWh Network RAB 11.971km* Net Profit €1,7bn *11,868 km is the distance between Paris, France and Christmas Island, Australia €105.6m 4
Slide 5: Investment Proposition
Investment Proposition Leading Position in Greece 11,971 km of HV transmission lines Boosting dividend returns Reduced borrowing costs and established minimum 50%earnings Investments payout c. €5b of cumulativeinvestments from 2020 to 2030 Rational regulatory Leading TSO as Strategic environment Inv
Slide 6: ADMIE Holding & IPTO S.A. Overview
1. ADMIE HOLDING & IPTO S.A. Overview
Slide 7: Shareholder Structure
Shareholder Structure Hellenic Silchester& OtherInst. Private Republic Funds Investors Investors 51.1% 12% 24.2% 12.7% 31.12.2019 Athens Stock Exchange ATHEX: ADMIE 51.0% Bloomberg: ADMIEGA Reuters: ADMr.AT 232,000,000 commonshares 25.0% 24.0% 7
Slide 8: 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 9: Regulatory Period: Four years
Remuneration scheme Regulatory Asset Base Undepreciated invested capital + maintenance/ (RAB) development CapEx/ WiP + working capital - disposals - subsidies Regulatory Period: Four years Allowed Revenue (AR) Operator's Allowed Revenue AR = O + Dep + R O : annual operatingcosts Dep : annual depreci
Slide 10: Investment Program Summary
2. Investment Program Summary
Slide 11: Network Development Plan 2020-2030
Network Development Plan 2020-2030 Expected ProjectCost ID Projectdescription commissioning (2020-30)€m Corridor A’ 400 kV to Peloponnese(OHL 1 2020 13 Megalopoli – Patras –Acheloos) 2020 2 Cycladic Islands Ιnterconnection (Phases Band PhaseB2020A 70 C) PhaseC2020B 3 Cycladic Islands Interconnection
Slide 12: Crete – Attica Interconnection
Crete – Attica Interconnection Attica ✓ The project is considered Project of Major Peloponnese Importance (PMI), so a Premium rate of return can be approved by the regulator (RAE), on top of the normal rate of return. The I AC2x200MVA II DC2x500MW percentage of the premium return can be 340km 132km
Slide 13: Key milestones in 2019-20
Key milestones in 2019 -20 Maturing of the tender process for both parts of the project (submarine cable interconnection and converters), whereas the signing of therelevant contracts took place in June 2020. Crete-Attica Interconnection Contracting of construction projects of Static Synchronous Comp
Slide 14: Strategic Plan
Strategic Plan Leadership • Acceleration of all island interconnections • Participation in Energy Exchange and implementation of the target model. Growth • Renovation and optimal management of assets • Strong financial profile Digitalization 1 2 3 • Optimization of operations, systems and procedures
Slide 15: Financial Overview
3. Financial Overview
Slide 16: IPTO Group 9M 2020 Highlights
IPTO Group 9M 2020 Highlights TOTAL REVENUES EBITDA Net PROFIT €209.9m €149.2 m €59.4m PY €192.3m (+9.1%) PY €139.8 m (+6.7%) PY €64.3m (-7.6%) ✓ Increase by €25.9m in System Rent due ▪ Active cash management and to the positive trend of electricity demand ✓ Strong profitability margins successful r
Slide 17: Profitability: Reported and Adjusted
Profitability EBITDA EBIT Net Income 67% 71% 41% 40% 31% 28% Reported Reported Reported 149,2 139,8 86,6 84,2 64,3 59,4 9M’19 9M’20 9M’19 9M’20 9M’19 9M’20 65% 71% 39% 40% 28% 28,5% Adjusted Adjusted Adjusted 149,3 84,3 135,9 82,6 59,2 59,9 9M’19 9M’20 9M’19 9M’20 9M’19 9M’20 Numbers adjusted follow
Slide 18: EBITDA Bridge
EBITDA Bridge Positive impact from Positive effect from thevoluntary interconnection rights exit scheme employed in2019 Decrease in Revenue from contracts reflected to a respective decrease in contract costsaccordingly Amounts in€’m 18
Slide 19: Cash Flow & Net Debt
Cash Flow & Net Debt Cash Flow Bridge Net Debt Net Debt remained at satisfactory levels due to high cash reserves standing at € 334,8m (30/09/2020) ➢ 1.9x Net Debt/adj. EBITDA ➢ 21% Net Debt/Equity 20
Slide 20: IPTO selected items
IPTO selected items IPTO S.A. Group Balance sheet 30.09.2020 31.12.2019 30.09.2020 31.12.2019 Non-current assets 2,488.9 2,327.7 2,290.6 2,168.6 Current assets 602.9 602.4 750.2 803.5 Of which: Cash & equiv. 195.7 224.3 343.0 425,2 Total Assets 3,091.8 2,932.2 2,932.2 2,932.2 Equity 1,334.4 1,326.9
Slide 21: ADMIE Holding 9M 2020 Highlights
ADMIE Holding 9M 2020 Highlights €30.3m €238k +5.1% y/y Share of -7.6% y/y Reported Investments (Income) OPEX €272k €0.118 +64.1% y/y -1,9% y/y Net Financial Dividend Income Per Share Active cash management benefits offset higher OPEX 22
Slide 22: ADMIE Holding selected items
ADMIE Holding selected items P&L 30.09.2020 30.09.2019 Balance sheet 30.09.2020 31.12.2019 Income from Affiliate 30.3 32.8 Non-currentassets 708.6 704.6 EBITDA 30.1 32.5 Currentassets 28.4 22.5 OperatingIncome 30,1 32,5 of which: Cash & equiv. 7.7 8,5 Netprofit 30.3 32.8 Total Assets 736,9 727.2 Cas
Slide 23: Dividend Policy
Dividend Policy ✓ Average dividend yield since listing ~4-5% 0,0289 0,0285 ✓ Bound to distribute 0,089 based on a minimum 0,06 0,0316 payout ratio of 50% 2018 2019 2020 (IPTO SA) Interim Dividend Remaining Dividend 2018 2019 2020 ✓ ADMIE Holding SA is Dividend per share 0,03 0,09 0,12 committed to d
Slide 24: IPTO 2019-2023 outlook
IPTO 2019-2023 outlook EUR 2019 Guidance Comments Regulated €1.68B ~€2.60B (2023) Increase 53% Asset Base (RAB)* Investments Ariadne Interconnection €248M ~ €1.80B (2023) (System & Users) included Consolidated with Ariadne EBITDA* €176.5M ~ €280M (2023) Interconnection * Figuresfrom ‘’Grid Telecom’’
Slide 25: GRID Telecom
4. GRID Telecom
Slide 26: Services
Services In the near future Grid Telecom willbe Having direct accessto the extended (2.500 proving collocation services to mobile km) fiber optic networkthroughout Greece telecom operators on IPTO’s PowersPylons owned by IPTO,Grid Telecom provides super which are set up all overGreece. high speed ca
Slide 27: Our Vision
Our Vision ✓ Submarine cablestransfer 99% of internet traffic. ✓ Many local operators (East Europe) seek routes to major gateways (Athensand Chania) ✓ Balkans are currently under- served and by-passed bythe main fiber corridors connecting Asia, Africa and Western Europe ✓ IPTOcould provide access to
Slide 28: Thank you
Thank you For additional information pleasecontact ADMIE Holding Investor Relations Tel: +30 210 3636 936 E-mail:office@admieholding.gr or visit: www.admieholding.gr
Slide 29: Appendix
Appendix IPTO key financial items/ Regulatory Framework 30
Slide 30: 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 31: Regulatory period 2018–2021
€m Regulatory period 2018 –2021 Regulated Asset & Rate of Return Allowed Revenue build out 7,0% 6,9% 6,5% 6,3% 1,5 126 130 116 101 2.060 281 286 1.941 254 1.684 234 58 76 77 1.450 55 77 78 78 79 2018 2019 2020 2021 2018 2019 2020 2021 RAB(EURM) Allowed rate ofreturn Allowed Revenue Inflation Allowed
Slide 32: WACC calculation
WACCcalculation 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% Equitybeta 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% Taxrate 29.0% 29.0% 29.0% 29.0% Cost of equity pre-tax 9.0% 9.0% 8.3% 8.2% Cos
Slide 33: Required Revenue calculation
Required Revenuecalculation 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 foreach year O AR= O+ Dep + R Dep annual o
Slide 34: Islands Interconnection
Islands Interconnection Main Objectives System stability Ensuring a safe supply of energy for the islands electricity system Cost Reduction • Drastic reduction ofelectricity generationcostin the islands • Substitutionof oil units with RES plants and imports from the mainland PSOs elimination More th
Slide 35: Cycladic Interconnection
Cycladic Interconnection PhaseA PhaseB 150kV 150kV 66kV 66kV 150kV200MVA 150kV200MVA 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 loop Radial Interconnection of Syros island wit
Slide 36: Cycladic Interconnection
Cycladic Interconnection PhaseC PhaseD 150kV 66kV Lavrio Tinos 150kV200MVA 150kV140MVA Mykonos Syros Paros Naxos Expansion to the West and Southern CycladicIslands Construction of second submarine cable between Lavrio andSyros Interconnection ofLavrio - Serifos – Milos – Folegandros - Thira – Nexans
Slide 37: Crete-Peloponnese Interconnection (Phase A)
Crete- Peloponnese Interconnection (PhaseA) 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: 2020 Estimated budget: c. €292m Peloponnese Contractualisation: 11.2018 - F
Slide 38: Crete-Attica Interconnection (Phase B)
Crete- Attica Interconnection (PhaseB) The company Ariadne Interconnection SPSA,a currently 100% subsidiary of IPTO,has been established asa SPV (Special Purpose Vehicle – SPV)in order to finance and construct the project of Crete – AtticaInterconnection Phase ’B : Connection Crete -Attica Attica Co