Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Non-Deal Roadshow (June 2020)
40 slides from Admie Holdings Sa's roadshow presentation, June 2020
Slide 1: Corporate Presentation
Corporate Presentation June 2020 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 Natural monopoly 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 cumulative investments from 2020 to 2030 Rational regulatory Leading TSO as Strategic environment I
Slide 6: ADMIE Holding S.A. & IPTO S.A. Overview
1. ADMIE HOLDING at a glance& IPTO S.A. Overview 6
Slide 7: Shareholder Structure
Shareholder Structure Hellenic Silchester & Other Inst. Private Republic Funds Investors Investors 51.1% 13.0% 23.2% 12.7% 31.12.2019 Athens Stock Exchange ATHEX: ADMIE 51.0% Bloomberg: ADMIE GA Reuters: ADMr.AT 232,000,000 common shares 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 operating costs Dep : annual deprec
Slide 10: Investment Program Summary
2. Investment at a glance Program Summary 10
Slide 11: Network Development Plan 2020-2030
Network Development Plan 2020-2030 Expected Project Cost ID Project description commissioning (2020-30) €m Corridor A’ 400 kV to Peloponnese (OHL 1 2020 13 Megalopoli – Patras – Acheloos) 2020 2 Cycladic Islands Ιnterconnection (Phases Phase B 2020A 70 B and C) Phase C 2020B 3 Cycladic Islands Inter
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. I AC 2x200MVA II DC 2x500MW The percentage of the premium return 340km 132km subma
Slide 13: June 10th 2020 – Signing of contracts
June 10th 2020 – Signing of contracts “During these challenging times, IPTO will continue to focus all its efforts in “The signing of the contracts for the order to protect the timely submarine link Attica – Crete and the implementation of the project and electrical interconnection are ensure the sa
Slide 14: Management comments on the interconnection
“… 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, Ch
Slide 15: Key milestones in 2019
Key milestones in 2019 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 Crete-Attica June 2020. Interconnection Contracting of construction projects of Static Synchronous Compensa
Slide 16: 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 17: Financial Overview
3. Financial at a glance Overview 17
Slide 18: IPTO Group 2019 Highlights
IPTO Group 2019 Highlights TOTAL REVENUES EBITDA Net PROFIT €249.8m €224.1 m €105.6m PY €247.4m (+1.0%) PY €180.9 m (+23.9%) PY €82.2m (+28.4%) ✓ Increase by €6.5m in System Rent due to ✓ Positive affected by one-off non ▪ Active cash management led to Net the positive trend of electricity demand re
Slide 19: Profitability: Reported and Adjusted
Profitability EBITDA EBIT Net Income 73% 90% 45% 54% 33% 42% Reported Reported Reported 224.1 134.8 180.9 112.2 105.6 82.2 2018 2019 2018 2019 2018 2019 67% 71% 39% 42% 28% 32% Adjusted Adjusted Adjusted 176.5 165.4 96.7 103.9 69.7 78.7 2018 2019 2018 2019 2018 2019 Numbers adjusted following these
Slide 20: EBITDA Bridge
EBITDA Bridge Positive effect from the voluntary Positive Trend of exit scheme employed in 2018 electricity Demand Decrease in Revenue from contracts reflected to a respective decrease in contract costs accordingly Amounts in €’m 20
Slide 21: 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 € 201m (31/12/2019) ➢ 1.14x Net Debt/adj. EBITDA ➢ 10.2x Interest coverage ratio ➢ 0.15x Net Debt/Equity 21
Slide 22: IPTO selected items
IPTO selected items IPTO S.A. Group IPTO S.A. Group P&L Balance sheet 31.12.2019 31.12.2018 Chg yoy 31.12.2019 31.12.2018 31.12.2019 31.12.2018 31.12.2019 31.12.2018 System rent 229.1 222.7 2.9% 229.1 222.7 Non-current assets 2.327,7 1.870,0 2.128,6 1.670,0 Total revenues 249.0 247.4 0.7% 249.8 247.
Slide 23: ADMIE Holding 2019 Highlights
ADMIE Holding 2019 Highlights €53.9m €426k +74.6% y/y Share of +28.4% y/y Investments Reported (Income) OPEX €313k €0.118 +64.1% y/y +100.6% y/y Net Financial Dividend Income Per Share Active cash management benefits offset higher OPEX 23
Slide 24: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 31.12.2019 31.12.2018 P&L 31.12.2019 31.12.2018 Non-current assets 704.6 552.0 Income from Affiliate 53.9 41.9 Current assets 22.5 14.8 EBITDA 53.4 41.7 of which: Cash & equiv. 8.5 4.8 Operating Income 53.4 41.7 Total Assets 727.2 566.7 Net profit 53.7 41.9
Slide 25: 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 ✓ ADMIE Holding SA is 2018 2019 2020 Dividend per 0,03 0,09 0,12 committed to distrib
Slide 26: 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 * Figures from ‘’Grid Telecom’
Slide 27: Grid Telecom
4. GRID at a glance Telecom 27
Slide 28: 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 29: Our Vision
Our Vision ✓ Submarine cables transfer 99% of internet traffic. ✓ Many local operators (East Europe) seek routes to major gateways (Athens and Chania) ✓ Balkans are currently under- served and by-passed by the main fiber corridors connecting Asia, Africa and Western Europe ✓ IPTO could provide acces
Slide 30: Thank you
Thank you For additional information please contact ADMIE Holding Investor Relations Tel: +30 210 3636 936 E-mail: office@admieholding.gr or visit: www.admieholding.gr
Slide 31: Appendix
Appendix IPTO key financial items/ Regulatory Framework 31
Slide 32: 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 33: Regulatory period 2018 – 2021
€m Regulatory period 2018 – 2021 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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: 2020 Estimated budget: c. €292m Peloponnese Contractualisation: 11.2018 -
Slide 40: 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