ADMIE (IPTO) Holding S.A. Investor presentation September 2017
Disclaimer This Presentation has been prepared by ADMIE Holding and is a presentation of general background information about ADMIE Holding S.A. and ADMIE (IPTO) S.A. provided solely for use at this Presentation. This information is summarized and is not complete, while not intended to be relied upon as advice and does not form the basis for an informed investment decision. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented herein. The information presented or contained in this Presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. This Presentation also contains certain financial information primarily focused at providing an operational or financial reference to Affiliate ADMIE (IPTO) S.A. and as a consequence may not be presented in accordance with International Financial Reporting Standards (IFRS). More detailed information on potential risks that could affect our financial results is included in ADMIE Holding’s 6-Month 2017 Financial Report, ADMIE Holding’s Greek Information Prospectus originally drafted and approved by the Hellenic Capital Market Commission in the Greek language, and Affiliate ADMIE’s (IPTO) Annual Financial Report 31 December 2016. ADMIE Holding S.A. is owner of a 51% stake in “Independent Power Transmission Operator S.A.” (ADMIE/IPTO). State Grid, State Grid Corporation of China (SGCC), State Grid International Development, State Grid Europe Limited used in this Presentation to highlight the same entity. 2 EBITDA = Operating Income before Income tax and Financial Income (Expense) + Depreciation & Amortization.
Hellenic Electricity Transmission System Transmission lines (km) 8,157 2,863 244 161 39 31 15 0 0 400kV 150kV 66kV Overhead Submarine* Underground 298 21 Substations 400/150kV Substations 150/20kV 3 *Excludes 160km of Greece-Italy interconnection; source: ADMIE (IPTO) as at 31 Dec 2016
Contents 1 Company overview 5 Business Plan 2 Company description 6 Greek electricity market 3 Regulation 7 Appendix State Grid Corporation of China 4 Financial summary IPTO key financial items
1 . Company overview Natural monopoly fully unbundled in 1H’17
11,500km Owned and maintained High-Voltage lines across Greece 11,000km the distance between Lisbon, Portugal and Hong Kong, China € 1.52B € 1.05B Regulated Asset Base* Cumulative 5yr Cash from Operations* *As at 31 Dec 2016; source: ADMIE (IPTO)
Investment proposition § Natural monopoly in Greece § Growth in the regulated asset base 11,500km of HV transmission lines Getting back to RAB growth, 2017 to 2021 § Recovery in domestic demand § Rational regulatory environment Consumption of 52TWh at +2.6% yoy (LTM) Authority prioritizing asset growth § Leading TSO as stakeholder § Boosting dividend returns State Grid Corp. of China, holder of 24% IPTO Reduce borrowing costs and establish minimum stake with execution input 50% earnings payout § New management team § Rationalizing capital structure Net debt/EBITDA closer to peers from current 2x 7 Source: ADMIE (IPTO)
ADMIE Holding S.A. Trading vehicle for ADMIE (IPTO) Public since June 2017 § Owner of 51% stake in “Independent Power Transmission Operator S.A.” (ADMIE/IPTO) by means of transfer by PPC and Full Ownership Unbundling as per Laws 4389/2016, 4393/2016 and EU Directive 2009/72/EC § Affiliate ADMIE (IPTO) S.A. recognized with equity method as a Joint Venture 8
Trading debut 19 Jun 2017 ▪ ATHEX: ADMIE ADMIE Holding investor mix** Bloomberg: ADMIE GA Reuters: ADMr.AT 9.8% ISIN: GRS518003009 69.4% 51.1% ▪ 232,000,000 common shares 39.1% 30.6% ▪ Debut price € 2.12 Implied Mcap € 491.8M Hellenic Republic Institutional* Greek Foreign Private 9 *Incl. Silchester & Funds at 12.94% as per regulatory disclosure; **as at 30 Jun 2017; Hellenic Republic stake via DES ADMIE S.A.
ADMIE (IPTO) S.A. Greek Transmission System Operator (TSO) Financial highlights 2016: § Regulated monopoly Regulated revenues at c90% in 2016 mix € 249M § Regulated by Regulatory Authority Regulated & other revenues for Energy (RAE) € 152M 4yr regulatory period; 2017 WACC at 7.3% (real) Reported EBITDA § Earnings payout minimum 50% € 204M Starting FY 2017* § Privately-held Net debt 10 *As per Shareholder Agreement; source: ADMIE (IPTO)
EUR M 5yr history Solid cash flow generation ADMIE (IPTO) Cash ladder 2011-16 ▪ Cumulative Cash Flow from Operations € 1.05B 1,046.1 ▪ Cumulative Capex € 600M Gross of subsidies -494.4 135.0 294.2 -141.0 ▪ c50% Free Cash Flow payout* -153.8 -119.3 21.6 Post-interest in 2012-16 Cash 2011-end Operations Investments Interest, net Debt repaid New debt Total dividends Cash 2016-end Cash from Cash from ▪ Underlevered balance sheet 2x Net debt/EBITDA at 2016-end*; 20% of Calendar RAB 11 *Pro Forma for dividend payment € 93M to PPC in 1H’17
2 . Company description 6yrs of legal unbundling, 1 st year of ownership unbundling
Key milestones August February May by October TSO legislation ADMIE Holding Full Ownership RAE: new regulatory (4001/2011) est. Unbundling law period 2018-21 (4389/2016) 2011 2012 2014 2016 2017 March October December June ADMIE (IPTO) RAE: regulatory SGCC bid for ADMIE Holding trading est. period 2015-17 24% in IPTO debut; IPTO RAE certification; 13 IPTO deal closing
Full ownership unbundling* PPC – prior PPC – current ADMIE (IPTO) ADMIE Holding mines mines 24% generation generation 51% Market operator 51% 49% transmission LAGIE 25% distribution distribution ADMIE Holding Hellenic Republic supply supply Hellenic Republic Free float State Grid 14 *ITO model for Transmission System Operator as per EU Directive 2009/72/EC
EUR M ADMIE (IPTO) ownership mix ADMIE (IPTO) implied valuation range* Equivalent to 24% in cash 1,365.0 EV/RAB 1.1x 24% Equivalent to 25% in cash 1,182.2 EV/RAB 1.0x 51% Floating 51% 964.4 25% Equivalent to EV/RAB 0.8x Implied EV* 1,260.4 RAB 2016 1,516.0 ADMIE Holding DES ADMIE 0 500 1,000 1,500 2,000 State Grid Deal-making explained Hellenic Republic stake via DES ADMIE S.A. *Mcap excluding Net Debt, extrapolating respective € 327.6M, € 295.6M, € 491.8M deals; 15 Enterprise Value based on IPTO 2016 Net Debt Pro Forma for dividend payment to PPC in 1H’17.
Corporate governance Shareholder agreement in place ADMIE Holding ADMIE (IPTO) ▪ AGM appoints Chairman & CEO ▪ Hellenic Republic (HR) Proposes Chairman & CEO ▪ BoD: 5 members; ▪ State Grid Corp. of China (SGCC) 2 independent, 3 non-executive Approves Chairman & CEO; appoints Deputy CEO, CFO ▪ ADMIE Holding appoints 3 BoD ▪ BoD: 9 members members at ADMIE (IPTO) Committees: Audit & Finance, Strategic Planning, Nomination & Remuneration ▪ SGCC 1yr option for reorganization & merger by absorption/listing 16 Source: Companies, Shareholder Agreement
ADMIE (IPTO) Nine BoD members* First line of management Manos Manousakis ADMIE Manos Manousakis ADMIE Holding Chairman & CEO (IPTO) Chairman & CEO Ex-CEO OTE Rural North & South Ioannis Margaris at Hellenic Telecom OTE Vice Chairman Ioannis Kampouris Ioannis Margaris Member Vice Chairman, Chief Technology, Market & Strategy Officer Zoe Vrontisi Hellenic Republic Ex-Vice Chairman HEDNO Member Spyridon Pasvalidis Xinghua Shi Member Deputy CEO Ex-Deputy CEO State Grid International, Australia Hong Li SGCC ! Member Dayong Sun Yunpeng He CFO Member Ex-Director Assistant, Philippines, Xinghua Shi SGCC Deputy CEO Iason Rousopoulos ADMIE Fotios Nikolopoulos Employees Chairman & CEO Holding Member Supervisor of Ownership Unbundling, Ministry Adviser 17 *In accordance with 29.06.2017 decision of ADMIE BoD, the term for BoD Members lasts five years and expires on 29.06.2022
TSO explained 1. IPTO as Transmission 2. IPTO as System Grid Operator Operator § Independent Transmission Operator § Dispatching role, market operation in compliance with EU Directive to maintain System supply/demand 2009/72; Est. under Law 4001/2011 balance with off-DAS transactions (Daily Ahead Scheduling) § Main Operator of Hellenic Electricity Transmission System § Pass-through revenues re Public Service Obligations (PSOs) and Gas § Compliant with requirements Emissions Fees the main transaction applicable to model of ITO, certified flows via IPTO by RAE 18 Source: RAE, ADMIE (IPTO)
1 IPTO as Transmission Operator System structure System Maintenance ▪ Backbone of 3, double-circuit, 400kV ▪ Maintenance work ensures safe, reliable, lines efficient system operation ▪ System extension underway System Design & Development International Interconnections ▪ Drafting 10yr Network Development Plan, ▪ System connected with Albania, Bulgaria, rolling annual basis FYROM, Turkey, Italy ▪ Execute System development and User interconnection projects (Engineering services to third parties) ▪ Provide System access to license holders for production, supply, or trading 19 Source: RAE, ADMIE (IPTO)
Recommend
More recommend
