Metlen Energy & Metals Plc · LSE:MTLN
Metlen Energy & Metals — Mytilineos Holdings — Investor Presentation (October 2009)
34 slides from Metlen Energy & Metals's investor presentation, October 2009
Slide 1: Group Presentation
Group Presentation October 2009
Slide 2: Disclaimer
DISCLAIMER These preliminary materials and any accompanying oral presentation (together, the “Materials”) have been prepared by Mytilineos Holdings SA (the “Company”) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contai
Slide 3: Agenda
AGENDA Group Overview Financial Review Areas of Activity 9Metallurgy & Mining 9Energy 9Engineering Procurement Construction (EPC) Stock Data Summary 3
Slide 4: Group Overview
HOLDINGS MYTILINEOS Group Overview
Slide 5: Group History
GROUP HISTORY 1908: Company 1998: Hostile acquisition of 2005: Acquisition of 2007: Merger by absorption founded by Metka S.A. the leading Aluminium of Greece S.A. of Aluminium of Greece and Mytilineos family electromechanical and metallic one of the largest vertical Delta Project by Mytilineos memb
Slide 6: Group Overview
GROUP OVERVIEW • Largest Aluminium (Al) and Alumina (Ox) producer in South Eastern Europe with Metallurgy international presence through Aluminium of Greece S.A. & Mining • Second largest Bauxite producer in Greece through Delphes-Distomon S.A. • Mytilineos Group either on its own or through JV agre
Slide 7: Group's Corporate Structure
GROUP’S CORPORATE STRUCTURE MYTILINEOS HOLDINGS Mkt Cap*: € 714 mn METALLURGY VEHICLE ENERGY EPC 54.0% & MINING MANUFACTURING ALUMINA & ALUMINIUM ENDESA (HELLAS) METKA ELVO (100%) (49.99%) (57.0*) (43%) Mkt Cap*: € 496 mn DELPHI DISTOMON KORINTHOS POWER (100%) (65%) Non Core Sector Source: Company I
Slide 8: Financial Review
HOLDINGS MYTILINEOS Financial Review
Slide 9: Balance Sheet
FINANCIAL REVIEW Balance Sheet ¾ Solid Balance Sheet. ¾ Financial Stability. Fixed Assets ¾ Healthy Debt to Equity Ratio. 902 ¾ Substantial Growth of Equity. 773 Total Equity 2008 857 2007 634 2006 283 901 779 708 800 2005 877 Current Assets 281 868 238 2004 103 194 542 509 132 302 166 66 402 196 18
Slide 10: Financial Performance
FINANCIAL REVIEW Financial Performance Evolution of Group Turnover, EBITDA & Earnings after Taxes (in € mn) Turnover EBITDA EBITDA% Turnover EAT EAT % 1,200 25.0% 1,200 40.0% 21.2% 34.3% 22.3% 35.0% 1,000 1,000 20.0% 30.0% 16.9% 800 13.5% 800 23.1% 25.0% 15.0% 600 12.1% 600 20.0% 18.8% 976 10.0% 913
Slide 11: Areas of Activity: Metallurgy & Mining
Areas of Activity Metallurgy & Mining 11
Slide 12: M&M Business Outlook: Alumina & Aluminum
M & M – BUSINESS OUTLOOK Alumina & Aluminum Business Overview Operational & Financial Overview tn OX AL 9 Facilities established in 1960’s. Leading industrial producer of alumina and aluminium in South Eastern Europe. 900,000 9 Production facilities occupy an area of 7,035,700m2 800,000 and constitu
Slide 13: Aluminum Cost Analysis
M & M – BUSINESS OUTLOOK Aluminum Cost Analysis Total Market AoG Total Other Average Total Other Average Costs 15% Delivered Costs 9% Delivered Alumina Cost Alumina Cost Labour Cost 6% 25% 40% Labour Cost 10% Other Raw Total Energy Materials Cost Cost 29% 10% Other Raw Total Energy Materials Cost Co
Slide 14: M&M Industry Outlook: Alumina & Aluminum
M & M – INDUSTRY OUTLOOK Alumina & Aluminum Alumina Supply (2008) Aluminium Supply (2008) Total Market 79 MT Total Market 40 MT North America C&S America CIS 8% C&S America 7% Australia 6% 7% North America 20% Europe 7% 14% Africa 4% Asia 33% Europe 25% Australia 25% Africa 1% Asia 44% Alumina Deman
Slide 15: M&M Industry & Macro Environment: Aluminium
M&M - INDUSTRY & MACRO ENVIRONMENT ALUMINIUM ¾ The average Aluminum price for 1st Half of 2009 has settled at $1,423 down 49.8% y-o-y and well below the Group’s hedged price level. ¾ During the 2nd & 3rd Quarter AL prices recorded a significant recovery and the premiums benefited on the back of low
Slide 16: Areas of Activity: Energy
HOLDINGS MYTILINEOS Areas of Activity Energy 16
Slide 17: Energy Industry & Macro Environment: Overview
ENERGY - INDUSTRY & MACRO ENVIRONMENT Overview Geographical Distribution of Generation Capacity Dominated by the Public Power • The Greek electricity market has been progressively Corporation (“PPC”) liberalized since 1999, nonetheless it is still dominated by the Greek electricity PPC market is – T
Slide 18: Key Characteristics and Trends
ENERGY - INDUSTRY & MACRO ENVIRONMENT Key Characteristics and Trends Future Outlook ¾ Consumption has grown with a yearly average of 3,7% in the ¾ The base scenario of the National Energy Strategy Demand decade 1998-2008, peaking during the summer (strong air Council (NESC) assumes a demand CAGR of
Slide 19: The Greek Electricity Market
ENERGY - INDUSTRY & MACRO ENVIRONMENT The Greek Electricity Market Demand Peak Capacity per Technology GW 2,7% 60,000 13,000 p.a. 55,000 16 4,0% 14.6 15.3 11,000 p.a. 13.8 13.9 14.1 50,000 14 12.7 12.1 12.4 11.6 45,000 9,000 12 10.9 10.9 Demand GWh 40,000 10 Peak MW 7,000 35,000 8 5,000 30,000 6 25,
Slide 20: Monthly SMP Data 2007 – YTD 2009
ENERGY - INDUSTRY & MACRO ENVIRONMENT Monthly SMP data 2007 – YTD 2009 (EUR) Average wholesale price for January to August 2007 2008 2009 2009 period was 120 47.9€/MWh, due to: • Lower gas and oil rises. 100 • Decrease of demand because of the economic 80 crisis. • Surplus of water in reservoirs 60
Slide 21: Energy Business Outlook: Thermal Asset Summary
ENERGY - BUSINESS OUTLOOK Thermal Asset Summary Total installed capacity Remaining attributable to thermal Installed Commercial Location Total capex capex (Eur Comments capacity operation (Eur mn) generation assets is mn) expected to reach c. Commercial operation 1.6GW by 2013 CHP 334MW October 2009
Slide 22: Energy Business Outlook: Group Assets and JVs
ENERGY - BUSINESS OUTLOOK Mytilineos Group: 100% CHP 334 MW ¾ The only Combined Heat & Power Plant constructed in Greece located inside AoG facilities in Viotia region, provides steam to the smelter and power to the grid. In operation since April, it is expected to enter full commercial operation in
Slide 23: Areas of Activity: EPC
HOLDINGS MYTILINEOS Areas of Activity EPC 23
Slide 24: EPC Industry & Macro Environment: Fundamentals and Prospects
EPC - INDUSTRY & MACRO ENVIRONMENT Fundamentals Prospects Greece • Tight supply – demand balance expected to • PPC Megalopolis 811MW CCGT – (contract continue despite new CCGT projects. awarded). • Majority of existing capacity is old and • EPC for continuation of the Group’s investment inefficient.
Slide 25: EPC Industry Outlook: Investment Plans
EPC – INDUSTRY OUTLOOK Credit Suisse Global Infrastructure Survey on investment plans evolution covering over 300 Utilities globally. Investments Plans over the next 12 months • Economic downturn impacts investment plans. Main reasons given for delaying projects are Financing 35%, Price 24% & Regula
Slide 26: METKA
EPC – BUSINESS OUTLOOK METKA Business Overview Financial Overview 9 METKA S.A., 56.6% owned by Mytilineos Holdings, is a leading EPC Contractor with international profile. € mil Turnover Analysis 9 Listed in the Athens Stock Exchange (ASE) since 1973. Energy Infrustructure Defence 350 9 METKA is inv
Slide 27: Strong Backlog – Visibility – International Profile
EPC - BACKLOG Strong Backlog – Visibility – International Profile ¾ PPC: 417 MW in Aliveri, Natural Gas Fired combined PPC 32% cycle. Alstom sub supplier for the main equipment. Contract value of €219 m. PROJECTS ABROAD €1.9 bn ¾PPC: 811 MW in Megalopolis, Natural Gas Fired combined 45% cycle. GE su
Slide 28: Stock Data
HOLDINGS MYTILINEOS Stock Data 28
Slide 29: Stock Data – Mytilineos Holdings S.A.
STOCK DATA – MYTILINEOS HOLDINGS S.A. Share Price Information Dividend Distribution Table (€ mn) 2003 2004 2005 2006 2007 2008 Market Cap: € 714 mn Avg. Trading Value: € 1.9 mn Profit After Taxes 10.308 14.399 44.834 52.632 161.073 21.592 Total No of shares: 116,984,338 Free Float: 61% Total
Slide 30: Stock Data – METKA S.A.
STOCK DATA – METKA S.A. Share Price Information Dividend Distribution Table (€ mn) 2003 2004 2005 2006 2007 2008 Market Cap: € 496 mn Avg. Trading Value: € 0.5 mn Profit After Taxes 11.202 16.371 34.339 40.764 37.288 44.785 Total No of shares: 51,950,600 Free Float: 43.0% Total Dividend 8.31
Slide 31: Summary
HOLDINGS MYTILINEOS Summary 31
Slide 32: Strategic Focus
STRATEGY Strategic Focus • Bauxite Residue Explore investment Treatment Facility. opportunities in SE • Aluminum Wagstaf - Europe, North Africa, Enhancement of the Middle East through Final Product. Growth • CAPEX in the Energy organic growth and/or acquisitions Options Sector over € 1bn in all sect
Slide 33: Investment Highlights
SUMMARY Investment Highlights With a well balanced business portfolio the Group is well placed: To benefit from the imminent liberalization of the domestic energy market. To benefit from the massive need for energy infrastructure investments in the wider SE Europe region. Recovery of Commodi
Slide 34: Contact Information
CONTACT INFORMATION Nikos Kontos Dimitris Katralis Group Investor Relations Officer Financial Analyst Email: nikos.kontos@mytilineos.gr Email:dimitrios.katralis@mytilineos.gr Tel: +30-210-6877395 Tel: +30-210-6877476 Fax: +30-210-6877400 Fax: +30-210-6877400 Mytilineos Holdings S.A. Mytilineos Holdi
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