Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Investor Presentation (May 2023)
50 slides from Admie Holdings Sa's investor presentation, May 2023
Slide 1: Corporate Presentation May 2023
Corporate Presentation Corporate Presentation June 2020 1 May 2023
Slide 2: Agenda
Agenda 1. Companies’ Overview & Regulation 2. Investment Program Summary 3. International Interconnection Plans 4. Financial Highlights 5. GRID Telecom 6. Appendix
Slide 3: 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 4: ADMIE at a glance
ADMIE at a glance ▪ Sole Transmission System Operator (TSO) in Greece Transmission Distribution Generation Supply Employees Transported Energy 1 1.600 50.7 TWh Network* RAB 13.404km *11,850 km is the distance between Paris, France and Christmas Island, Australia Net Profit1 €2.0bn €58.2m 1FY 2022 4
Slide 5: Electricity Demand & Supply for FY 2022
Electricity Demand & Supply for FY 2022 Market demand (TWh) Production & Key figures 6,0 5,6 5,3 Interconnection Mix 6,8% 4,9 5,0 4,7 5,0 4,5 4,7 4,7 4,2 4,2 4,3 4,3 4,1 4,1 4,0 4,1 3,9 4,0 11,0% 4,0 3,8 3,7 3,8 3,9 3,6 3,7 Lignite • FY’22 Total Market 3,0 NatGas Demand reached 50.7 2,0 46,7% 35,4%
Slide 6: Investment Proposition
Investment Proposition Natural monopoly in Greece 13,404 km of HV transmission lines Boosting dividend returns Reduced borrowing costs and established minimum 50% earnings Investments payout c. €5b of cumulative investments from 2022 to 2030 Rational regulatory Leading TSO as Strategic environment I
Slide 7: ADMIE HOLDING and IPTO S.A. Overview
1. ADMIE HOLDING at a glance& IPTO S.A. Overview 7
Slide 8: Shareholder Structure
Shareholder Structure Hellenic Republic Free Float 51.1% 48.9% 24.02.2023 Athens Stock Exchange ATHEX: ADMIE 51.0% Bloomberg: ADMIE GA Reuters: ADMr.AT 232,000,000 common shares 25.0% 24.0%
Slide 9: 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 10: New Regulatory Framework
New Regulatory Framework Regulatory Period Four years period (2022-2025) Work-in-Progress Depreciation Regulated Grants Undepreciated CapEX Asset Base Amortization value of Fixed (RAB) Assets Write-offs & Re- Working Capital used assets Allowed Revenue (AR) Operator's Allowed Revenue Incentives Allo
Slide 11: 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 12: Investment Program Summary
2. Investment Program at a glance Summary 12
Slide 13: Key milestones in 2022
Key milestones in 2022 Ariadne Interconnection Crete- Peloponnese International Interconnection Interconnections Interconnection of Interconnection of Cyclades Skiathos • The production of all cable • Phase IV is co-funded by the • In July 2022, Skiathos-Evia • IPTO announced the intention sections
Slide 14: Major Projects 2023-2032
Major Projects 2023-2032 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 14
Slide 15: 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 16: 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 17: International Interconnection Plans
3. International Interconnection at a glance Plans 17
Slide 18: 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 19: 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 20: Financial Overview
4. Financial at a glance Overview 20
Slide 21: IPTO GROUP FY22 Highlights
IPTO GROUP FY22 Highlights TOTAL REVENUES EBITDA Net PROFIT €292.3 m €195.2 m €58.2m FY’21 €285.0m (+2.5%) FY’21 €189.8 m (+2.9%) FY’21 €69.4m (-16.1%) ✓ Revenue from Transmission System Rent ✓ Higher depreciation expense (+4.7m) increased to 272.0€m from €270.4m ✓ The EBITDA margin stood at 64.9%,
Slide 22: Profitability
Profitability EBITDA EBIT Net Income 67% 30.5% 31% 20% 24% 67% Reported Reported Reported 195,2 89,2 88,5 69,4 189,8 58,2 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 65% 67% 29% 31% 18% 21% Adjusted Adjusted Adjusted 59,0 83,6 89,3 54,0 190,6 189,6 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021
Slide 23: FY22 Adjusted EBT evolution
FY22 Adjusted EBT evolution Key figures Adjusted EBT (€m) • Revenue Combined effect due to decrease of Revenues from transmission system rent (net) and Revenue from other operations by €4.7m and an increase (8.6%) of revenue from Balancing Market (new revenue stream in 2022) by €11.9m. • Personnel E
Slide 24: Cash Flow & Net Debt
Cash Flow & Net Debt Key figures Cash Flow evolution (€m) Net Debt Leverage IPTO – Capex Major projects: € 354.5m € 775.4 million 4.1x Net Debt/adj. EBITDA* Coverage ratio Leverage ~6x Interest coverage 0.54x Net Debt/Equity ratio** *adj. EBITDA FY 2022 **EBIT/Interest Expense 24 | Solid balance she
Slide 25: ADMIE HOLDING FY22 Highlights
ADMIE HOLDING FY22 Highlights €29.1m €695k +15.5% y/y Share of -16.8% y/y Reported Investments (Income) OPEX €133k €0.068 -20% y/y Payment of -15% y/y Net Financial Interim Dividend Income Per Share 25 | Active cash management benefits offset higher OPEX
Slide 26: Dividend Policy
Dividend Policy ✓ Average dividend yield since listing ~4% 0,0289 0,0285 0,0179 ✓ Bound to distribute 0,089 0,0854 based on a minimum 0,0316 0,06 0,068 0,058 payout ratio of 50% 2018 2019 2020 2021 2022 2023 (IPTO SA) Interim Dividend Remaining Dividend 2019 2020 2021 2022 2023 ✓ ADMIE Holding SA is
Slide 27: 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 27
Slide 28: 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 29: GRID Telecom
5. GRID at a glance Telecom 29
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: Appendix
6. Appendix IPTO key financial items/ Regulatory Framework
Slide 38: Interconnection of the Islands: Main Objectives
INTERCONNECTION OF THE ISLANDS Main Objectives 38
Slide 39: IPTO selected items
IPTO selected items Group Group Balance sheet Profit & Loss Statement 31.12.2022 31.12.2021 31.12.2022 31.12.2021 Chg % yoy Non-current assets 3,019.4 2,799.8 System rent 272.0 270.4 0.6% Current assets 526.2 513.9 Total revenues 286.0 285.0 2.5% Reversals/(Provisions & Impairments) -8.2 -2.6 216.9%
Slide 40: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 31.12.2022 31.12.2021 P&L 31.12.2022 31.12.2021 Non-current assets 755.4 742.7 Income from Affiliate 29.7 35.4 Current assets 5.0 4.2 EBITDA 29.0 34.8 of which: Cash & equiv. 4.7 4.0 Operating Income 29.0 34.8 Total Assets 760.4 747.0 Net profit 29.1 35.0 C
Slide 41: 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 42: 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 43: 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 44: 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 45: 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 Source: RAE 45
Slide 46: 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 47: 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 48: 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 49: 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 50: 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