Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Non-Deal Roadshow (September 2019)
40 slides from Admie Holdings Sa's roadshow presentation, September 2019
Slide 1: Corporate Presentation
Corporate Presentation Sept. 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 Appendix 3
Slide 4: '19 focused on transmission system growth
’19 focused on transmission system growth
Slide 5: '20 progressing on transmission system growth
’20 progressing on transmission system growth
Slide 6: Owned and maintained High-Voltage lines across Greece
11,732km 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 11,732 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% 22.8% 13.1% 05.09.2019 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 • Accelerating phase D of • RAE: new Cycladic Islands regulatory review • Inauguration of Interconnection 2018-21 Attica - Crete • Entry of the Dodecanese Full Ownership • Inauguration of interconnection and North Aegean TSO legislation Unbundling law Phase A’ Cyclades Refinance of Sy
Slide 11: 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 12: IPTO H1 2019 Highlights
IPTO H1 2019 Highlights • Total Revenues €126m, +1% ΥοΥ €39.4m Net Profit • Net profit adj. €51.1m, +1.5% YoY • Active cash management led to: Financial Income to rise by 41.3% €89.8m Reported EBITDA & Financial Expenses to drop by 37.5% 12
Slide 13: IPTO selected items
€m IPTO selected items 31.12.2018 30.06.2019 P&L H1 '19 H1 '18 Chg yoy Balance sheet System rent 116.4 117.1 -0.6% Non-current assets 1,876.3 1,913.7 Total revenues 126.0 124.8 1.0% Reversals/(Provisions & -3.5 -22.0 Current assets 1,235.9 665.9 Impairments) EBITDA 89.8 102.1* -12.0% Of which: Cash
Slide 14: ADMIE Holding H1 2019 Highlights
ADMIE Holding H1 2019 Highlights €20.1m Net Profit • Net profit €20.1m, -5.6% YoY • OpEx stood at €175k, +45.8% YoY • Active cash management led Financial Income to €0.06 per share €172k, +405.9% YoY partially offsetting OpEx Interim Dividend 2019 • Total dividend 2019: ~€0.088 per share ~€0.088 per
Slide 15: ADMIE Holding selected items
€ Th. ADMIE Holding selected items Balance sheet 31.12.2018 30.06.2019 P&L H1 '18 H1 '19 Non-current assets 550.5 548.6 Income from Affiliate 21.4 20.1 Current assets 14.7 36.6 EBITDA 21.2 19.9 of which: Cash & equiv. 4.8 26.6 Operating Income 21.3 20.1 Total Assets 565.2 585.1 Net profit 21.3 19.9
Slide 16: IPTO 2018-2023 outlook
IPTO 2018-2023 outlook EUR 2018 Guidance Comments Regulated €1.45B ~€2.60B (2023) Increase 80% Asset Base (RAB)* Investments Ariadne Interconnection €171M ~ €2.20B (2023) (System & Users) included Consolidated with Ariadne EBITDA* €183.6M ~ €280M (2023) Interconnection Dividend ~ €0.0316 ~€0.09 (202
Slide 17: Tax adjustments in 2019 enhancing business
Tax adjustments in 2019 enhancing business Two major taxation changes during 2019*: Corporate tax from 28%24% Dividend tax from 10%5% *Formal announcement has been made from the Government. It is expected to be voted soon 17
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: Main investment projects 2019-2028
Main investment projects 2019-2028 Capex for the period according to the submitted Ten Year Network Development Plan (TYNPD) Expected Project Cost ID Project description commissioning (2019-28) €m Corridor A’ 400 kV to Peloponnese (OHL 1 2019 67 Megalopoli – Patras – Acheloos) 2020 2 Cycladic Island
Slide 21: Major Projects 2018-2028
Major Projects 2018-2028 (Expected commissioning year) Cyclades Cyclades Cyclades Cyclades Koumoundourou Dodecanese Phase A Phase B Phase C Phase D Patra Rouf 20 2018 2019 2020 2021-22 2023 2024 2025-28 Peloponnese Crete Crete Peloponnese N. Aegean 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 (A, B) Phase A’ : Connection Peloponnese - Crete Attica Commissioning: 2020 Estimated budget: c. €330m Peloponnese Contractualisation: 11.2018 - Fulgor: western submar
Slide 23: 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 24: 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 25: New projects coming
New projects coming Dodecanese • Expected commissioning:2027 Interconnection • Project Cost:1550m€ • Expected commissioning:2030 • Project Cost:apr.1000m€ 25
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: Crete – Attica Interconnection
Crete – Attica Interconnection 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 The Attica-Crete interconnection is a 2X500MW ca
Slide 29: Crete – Attica Interconnection
Crete – Attica Interconnection The project is considered Project of Major Importance (PMI), so a Premium rate of return can be approved by the regulator (RAE), on top of the normal rate of return. The percentage of the premium return can be from 1% to 2.5% and is provided from the electrification of
Slide 30: Crete – Attica Interconnection
Crete – Attica Interconnection Commissioning: 2022 Attica Estimated budget: c. €1b Implementation: Ariadne Interconnection Peloponnese II DC 2x500MW Technical Characteristics I AC 2x200MVA 340km 132km submarine • VSC MMC Converters submarine • Voltage: ̴500kV • Bipolar Configuration • Link Capacity:
Slide 31: Grid Telecom
‘\ TELECOM Est. January 2019
Slide 32: 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 33: 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 34: Appendix
Appendix IPTO key financial items/ Regulatory Framework 34
Slide 35: Net profit drivers
€ Th. Net profit drivers • The expected reduction in tax rates was not included in tax calculations. • Total OPEX decreased by 4.8m, as result of a decrease in Payroll and an increase in other OPEX categories. Payroll was positively affected by VES in 2018 and a reduction in the expense regarding th
Slide 36: 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 37: 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 38: 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 39: 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 40: 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