Admie Holdings Sa · ATHEX:ADMIE
Admie Holdings Sa — Non-Deal Roadshow (September 2020)
38 slides from Admie Holdings Sa's roadshow presentation, September 2020
Slide 1: Corporate Presentation
Corporate Presentation Sep 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 Prof. Christos Agiakloglou 2. Investment Program Summary Chairman and CEO ADMIE Holding SA c.agiakloglou@admieholding.gr 3. Financial Highlights 4. GRID Telecom George Eleftheriou, CFA Head of IR g.eleftheriou@admieholding .gr 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 & 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: 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 Crete-Attica June 2020. 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 at a glance Overview 15
Slide 16: IPTO Group H1 2020 Highlights
IPTO Group H1 2020 Highlights TOTAL REVENUES EBITDA Net PROFIT €137.6m €96.9 m €39.3m PY €126m (+9.2%) PY €89.4 m (+8.4%) PY €40m (-1.7%) ✓ Increase by €14.7m in System Rent due to ▪ Active cash management and the positive trend of electricity demand ✓ Strong profitability margins successful renegot
Slide 17: Profitability
Profitability EBITDA EBIT Net Income 71% 70% 43% 39% 32% 29% Reported Reported Reported 96,9 89,4 53,7 53,5 40 39,3 Η1'19 Η1'20 Η1'19 Η1'20 Η1'19 Η1'20 69% 71% 40% 39% 27% 29% Adjusted Adjusted Adjusted 97,3 86,7 51 54 36,6 37,3 Η1'19 Η1'20 Η1'19 Η1'20 Η1'19 Η1'20 Numbers adjusted following these on
Slide 18: EBITDA Bridge
EBITDA Bridge Positive impact from Positive effect from the voluntary interconnection rights exit scheme employed in 2019 Decrease in Revenue from contracts reflected to a respective decrease in contract costs accordingly 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 € 271.5m (30/06/2020) ➢ 1.51x Net Debt/adj. EBITDA ➢ 21% Net Debt/Equity 19
Slide 20: IPTO selected items
IPTO selected items IPTO S.A. Group Balance sheet 30.06.2020 31.12.2019 30.06.2020 31.12.2019 Non-current assets 2,403.7 2,327.7 2,203.9 2,128.6 Current assets 803.6 584.5 789.2 803.6 Of which: Cash & equiv. 210.1 224.4 410.0 425.2 Total Assets 2,932.2 2,988.2 2,993.2 2,932.2 Equity 1,314.3 1,326.1
Slide 21: ADMIE Holding 2019 Highlights
ADMIE Holding 2019 Highlights €20.1m €173k -1% y/y Share of -1.7% y/y Reported Investments (Income) OPEX €141k €0.118 +64.1% y/y -18% y/y Net Financial Dividend Income Per Share Active cash management benefits offset higher OPEX 21
Slide 22: ADMIE Holding selected items
ADMIE Holding selected items Balance sheet 30.06.2020 31.12.2019 P&L 30.06.2020 30.06.2019 Non-current assets 683.3 704.6 Income from Affiliate 20.1 20.4 Current assets 48.5 22.5 EBITDA 19.9 20.2 of which: Cash & equiv. 34.4 8.5 Operating Income 19.9 20.2 Total Assets 746.9 727.2 Net profit 20.0 20.
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 ✓ ADMIE Holding SA is 2018 2019 2020 Dividend per 0,03 0,09 0,12 committed to distrib
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 * Figures from ‘’Grid Telecom’
Slide 25: GRID Telecom
4. GRID at a glance Telecom 25
Slide 26: 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 27: 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 28: Thank you
Prof. Christos Agiakloglou Chairman and CEO ADMIE Holding SA Thank you c.agiakloglou@admieholding.gr For additional information please contact ADMIE Holding Investor Relations Tel: +30 210 3636 936 George Eleftheriou, CFA E-mail: office@admieholding.gr Head of IR or visit: www.admieholding.gr g.elef
Slide 29: Appendix
Appendix IPTO key financial items/ Regulatory Framework 29
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 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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