Agenda Group Overview Areas of Activity Energy Projects (EPC) Infrastructure Projects Defence Projects Group Strategy Consolidated Financial Review 3

Transcription

1 Sept

2 Disclaimer These preliminary materials and any accompanying oral presentation (together, the Materials ) have been prepared by Mytilineos Holdings SA (the Company ) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contained in the Materials are preliminary in nature and subject to further investigation and analysis. The Materials are not intended to provide any definitive advice or opinion of any kind and the Materials should not be relied on for any purpose. The Materials may not be reproduced, in whole or in part, nor summarised, excerpted from, quoted or otherwise publicly referred to, nor discussed with or disclosed to anyone else without the prior written consent of the Company. The Company has not verified any of the information provided to it for the purpose of preparing the Materials and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by the Company as to or in relation to the accuracy, reliability or completeness of any such information. The conclusions contained in the Materials constitute the Company s preliminary views as of the date of the Materials and are based solely on the information received by it up to the date hereof. The information included in this document may be subject to change and the Company has no obligation to update any information given in this report. The Recipient will be solely responsible for conducting its own assessment of the information set out in the Materials and for the underlying business decision to effect any transaction recommended by, or arising out of, the Materials. The Company has not had made an independent evaluation or appraisal of the shares, assets or liabilities (contingent or otherwise) of the Company. All projections and forecasts in the Materials are preliminary illustrative exercises using the assumptions described herein, which assumptions may or may not prove to be correct. The actual outcome may be materially affected by changes in economic and other circumstances which cannot be foreseen. No representation or warranty is made that any estimate contained herein will be achieved. 2

3 Agenda Group Overview Areas of Activity Energy Projects (EPC) Infrastructure Projects Defence Projects Group Strategy Consolidated Financial Review 3

4 Group Overview 4

5 Group History 1962: Founded as a joint stock company. 1980: Absorption of the technical contracting firm TECHNOM S.A. 1999: Company acquired by Mytilineos Holdings S.A. 1999: Increase in Company s Share Capital. 2005: Acquisition of 83.5% of ELEMKA S.A : Company listed on the Athens Stock Exchange. 1989: Acquisition of 99.98% of SERVISTEEL S.A. 2002: Acquisition of TCB SA and RODAX S.A. 2002: Partial Acquisition of stake in EKME S.A. (40%), 3KP S.A. (40%). 5

6 Group Overview EPC Contractor with Industrial Background Primarily active in Infrastructure Projects, Energy - EPC and Defence sectors. Quoted on Athens Stock Exchange since 1973 with current market cap of 915 mn (1) Energy Projects (EPC) Long experience and specialized know-how, particularly Thermoelectric Power Plants (TPP) and Hydroelectric Power Plants (HPP). Main EPC Contractor or as equivalent partner in consortia with other international firms such as Alstom, Siemens and General Electric. Infrastructure Projects Plays a significant role in the execution of large scale infrastructure projects in Greece and abroad. Ability to carry out very demanding projects, demonstrated by successful completion of landmark projects such as the steel structures for the Rion - Antirrion bridge, Olympic Velodrome, etc. Defence Projects Major supplier of the Hellenic Armed Forces of armoured vehicles and other demanding military applications such as submarine pressure hulls etc. Proven Management Successful track record in implementing its growth strategy and delivering shareholder value. (1) As of 24 September

7 Mytilineos Group Corporate Structure Mytilineos Holdings Mkt Cap: mn METALLURGY & MINING ENERGY EPC VEHICLE 54.0% MANUFACTURING ALUMINA & ALUMINIUM (100%) ENDESA (HELLAS) (49.99%) METKA (51.63%) ELVO (43%) Not Listed Not Listed Mkt Cap: 915 mn Not Listed DELPHI DISTOMON (100%) Not Listed SOMETRA (93%) Not Listed Source: Company Information. Note: Market data as of 24 September

8 Financial Snapshot Group Turnover ( m; % on column indicates annual growth rate. Infrastructure 14% Turnover by Activity Infrastructure 12% 1,7% - 8,5% 30.1% 31.1% (1) 2007E (1) Management Estimates Defence 14% Defence 7% E (1) Energy 72% (1) Management Estimates. Energy 81% EBITDA EBITDA by Activity Ε (1) ( m; % on column indicates annual growth rate. 55,9% 15,1% 6,6% - 18% 72 Defence 26% Infrastructure 2% Defence 14% Infrastructure 6% (1) 2007E (1) Management Εκτιµήσεις ιοίκησης Estimates E (1) Energy 72% (1) Management Estimates. Energy 80% 8

9 Share Information Share Price Information Stock Symbols Market Cap: 915 mn Avg. Trading Value: 3.2 mn Total No of shares: 51,950,600 Free Float: 48% Listing FTSE/ASE Mid-40, FTSE Med 100, MSCI Small Cap and HSBC Small Cap ASE: Reuters: Bloomberg: METK MTKr.AT METTK GA Dividend Per Share ( )* Shareholder Structure 0,4 0,3 Greek Institutional Investors 9.17% 0,16 0,16 0,2 Retail 15.63% Mytilineos Holdings 51.63% Foreign Institutional Investors 23.57% Dividend Note: Market data as of 24 September

10 Human Resources Personnel Profile Change of emphasis existing engineering staff supplemented by additional highly qualified engineering recruits. Cost competitive with EPC competition. 500 employees, of which 200 are degree qualified, and 50 with post-graduate degrees. Approx. 40% of the company s employees hold engineering / scientific degrees. Strong emphasis on building appropriate resources Employees with Higher Education Degrees % of Total Employees with Technical / Scientific Degree Qualifications % 14% 14% 15% 16% 18% 30% 35% 39%

11 Areas of Activity 11

12 Energy Projects (EPC) Broad Range of Experience Thermal power projects - broad experience in coal / lignite, combined cycle, co-generation. Hydro projects - substantial expertise, including manufacturing of main equipment. Environmental - significant experience in environmental projects (Electrostatic Precipitators, etc.). Coal mining and materials handling - long-standing activity and expertise, including manufacturing of main equipment. Historical Evolution 1980: PPC Ag. Dimitrios Units I/II, 2x300MW Lignite fired. First major energy project as equal member of consortium. 1991: First of 3 major contracts for PPC Thissavros 3x100MW hydro. 2001: PPC Linoperamata 43MW gas turbine. First energy project as EPC contractor. 2005: EPC contract for Aluminium of Greece Cogen Plant. 2007: EPC contracts for KESC Pakistan & Endesa Hellas CCGT : PPC Lavrio Unit IV in consortium with GEC Alsthom. First combined cycle project in Greece. 2004: EPC contract for PPC Lavrio Unit V CCGT 378MW. 2004: EPC contract in consortium for PPC Megalopolis ESP s. 2006: PPC Lavrio Unit V Enters commercial operation. 12

13 Energy Projects Combined Cycle Thermoelectric Power Plants (TPP) Combined Cycle PPC Lavrio Unit V, Combined Cycle. Endesa Hellas, Aluminium of Greece Co-generation. Lump-sum EPC - Contract value mn. Lump-sum EPC - Contract value mn. Natural Gas fired, 378 MW combined cycle unit. Natural gas fired cogeneration plant (316MW plus 252MWth) in configuration. Single shaft GE STAG 109FA. HRSG Alstom. Awarded in 2004, entered commercial operation early GE gas turbines, Siemens steam turbine, Alstom HRSG s. Awarded 2005, completed mid

14 Energy Projects - Environmental Thermoelectric Power Plants (TPP) - Environmental PPC Agios Dimitrios ESP s. Lump-sum EPC - Contract awarded to METKA- Alstom consortium by the Public Power Corporation (PPC) of Greece. Contract value 130 mn (METKA participation 68,5%). Awarded in 2004, currently in progress. Upgrading of existing electrostatic ash precipitators, and addition of new ESPs for Units I,II,III,and IV. PPC Kardia ESP s. Lump-sum EPC - Contract awarded to METKA- Alstom consortium by the Public Power Corporation (PPC) of Greece. Contract value 42 mn (METKA participation 63%). Awarded in 2002, completed

15 Energy Projects Coal (Lignite) Fired Thermoelectric Power Plants (TTP) Coal Fired PPC Ag. Dimitrios Units I IV. 4 x lignite fired units, total 1220 MW Major consortium participant in two separate EPC contracts: Units I II of 300MW each, Units III IV of 310MW each. Execution period PPC Florina, Unit I. Lignite fired unit, 330MW awarded by the Public Power Corporation of Greece. Collaboration with Alstom. Contract period

16 Energy Projects - Hydro Hydroelectric Power Plants (HPP) PPC HES Thissavros, 3x100MW, Nestos River. PPC Ilarion Hydroelectric Project. Project execution Turn key EPC - Contract signed July Contract value 59.0 mn. 2 hydro-turbines of 70,7MW and 1 hydro-turbine of 4MW (Francis Type). Scope of supply includes design, engineering, supply, erection and commissioning of hydroturbines, governors, generators and all electromechanical equipment for the project. Supply, installation and start-up of pump turbines, auxiliary electromechanical equipment, trash racks, stop logs, penstock, gates for power tunnels, draft tubes and spillway. Consortium of METKA Cegelec - Alstom Jeumont Vevey. 16

17 Infrastructure Projects Key Strengths Strong track record: land-mark projects with demanding schedules. Blend of high value added manufacturing and turn-key project capabilities Focus: Sophisticated bridges, Port equipment, Complex Structures, Mining and mineral processing; Refining Petrochemicals. Major Projects Rion Antirion Bridge. Fabrication and erection of Pylon Head Structure Assembly and installation of steel deck. Execution Olympic Velodrome Fabrication and erection. Execution Contract value 24.2 mn. 17

18 Infrastructure Sector Heavy Industry Mining, Minerals Processing Refining & Petrochemicals Strong experience in major industrial facilities (cement, metallurgy, mining). Full turn-key / EPC capability. State-of-the-art manufacturing facilities for major mechanical equipment. Increasing international perspective - recent projects in South-East Europe. Clients include Titan Cement, PPC, Aluminium de Grèce, Union Minière (Bulgaria), etc. Significant presence in Refining & Petrochemical through METKA and subsidiary, EKME. State-of-the-art manufacturing at 3 facilities: 2 in Volos plus EKME in Thessaloniki. Manufacturing expertise includes reactors, pressure vessels, boilers, refinery towers,, etc. Turn-key supply and erection. Main clients: Hellenic Petroleum, MOH, etc. 18

19 Defence Projects - Highlights Defence Key Strengths Dynamic development through co-production contracts for major defence programs. Based on the company s state-of-the-art industrial facilities and manufacturing expertise. Significant amount of high technology workload for up to year Successful execution of projects provides solid foundation for future defence activity of any scope. Main Battle Tank Project Co-production of LEOPARD 2-Hel Main Battle Tank Co-production with KMW (Kraus Maffet Wegman) for 170 x LEOPARD armoured vehicles for the Greek Armed Forces. Contract value of 125,36 mn. Contract duration until 2009 assures high value added work-load for the Volos plant. 19

20 Defence Key Projects Defence Projects Armoured Hulls for U-214 type Submarines. Project with HDW (Howaldtswerke Deutsche Werft AG) Fabrication of pressure hulls Three latest generation submarines. Sophisticated manufacturing requirements. Contract value 21 mn. Successfully delivered during Patriot Missile Air Defence System. Co-production project with Raytheon Lockheed Martin for the Greek Armed Forces. Complete fabrication of 42 semi-trailers and 36 launcher mechanics for Patriot Missile System. Contract value 20,8 mn. Contract duration

21 Manufacturing Capability Capability Overview METKA and SERVISTEEL in Volos, plus EKME in Thessaloniki (40% owned subsidiary). Plant capabilities: Metal processing cleaning, cutting, marking, forming. Manufacture / fabrication: machining, welding, assembly of heavy &/or large, high precision parts with difficult materials. Assembly of electromechanical machinery, equipment, special vehicles etc. Main Facilities Overview METKA - VOLOS Total area of approx m2, of which m2 are covered production facilities. Strong experience in demanding applications with high quality standards. Recent investments of 15mn for new state-of-the-art equipment. Dedicated repairs and maintenance department for power plant equipment. SERVISTEEL - VOLOS Founded in 1982; acquired in Total covered area of approx m2, total area m2. Strong position in the first phase of metal construction cutting formation (bending and rolling) marking of metal sheets and sections. 21

22 Group Strategy 22

23 Prospects for METKA GREECE SOUTH-EAST EUROPE New Power Plants Award of 400MW Aliveri project recently confirmed by PPC BoD. First project in PPC s 2400MW+ capacity replacement program total est. 1.2bn in EPC for the investment portfolio of Endesa Hellas: 430MW IPP plant; additional CCGT and coal-fired projects under development MW of new generation capacity needed up to 2020 total 9,5 bn** This new capacity will be dominated by new lignite (coal) fired plants. Several major projects under development. Rehabilitation of Existing Plants Need for rehabilitation of PPC s existing lignite fired power plants Alliance with Alstom, with large installed base of Alstom equipment turbines, boilers. Rehabilitation of MW of existing thermal power generation - 4,8bn** 60% of this rehabilitation is planned to be carried out by Environmental Projects A series of environmental upgrades under completion by METKA/Alstom for PPC. Relatively limited potential for additional growth. Significant opportunity - EU environmental compliance for existing units - 2,3bn** Primary requirement, approx. 80% by value, is for sulphur removal. **Source: EC/World Bank, GIS for SEE report,

24 Recent Developments International Arena Recent International Award Karachi Electric Supply Co. Korangi Power Station, 220MW combined cycle power plant Contract value 110 mn, 24 months execution Major milestone first major international EPC contract significant future opportunities Future Prospects SOUTH-EAST EUROPE OTHER EUROPEAN DEVELOPING MARKETS Engagement with largest markets: Turkey, Romania - moving into strong investment cycle Environmental upgrades for coal plants, new-build projects emerging District heating (co-generation) prospects Primarily CCGT in the near term. Building relationships with major European utilities, e.g. qualified by E.ON for combined cycle projects in central Europe. Massive investment plans in Russia are of interest medium-long term Continuing to build on newly established presence in Pakistan. Massive need for energy infrastructure investments, often on fast-track basis. Transformation into major Regional EPC is well underway The market is receptive and supportive of this development 24

25 Consolidated Financial Review 25

26 Consolidated Income Statement (IFRS in m) E (1) Turnover Infrastructure Energy Defence Turnover Total EBITDA EBT EAT Margins (%) EBITDA 19,7% 23,6% 20,7% 21,7% - 22,5% EBT 16,8% 23,6% 18,6% 19,7% - 20% EAT 12,1% 17,3% 13,9% 15,3% - 15,6% (1) Management Estimates 26

27 Consolidated Balance Sheet (IFRS in m) Fixed Assets Current Assets Total Assets Bank Debt 1 2 Cash & Marketable Securities Equity Total Equity and Liabilities Net Debt (9) (19) (3) 27

28 Contact Information Nikos Kontos Investor Relations Officer Tel: Fax: Paul Smith Strategy Director Tel: Fax: Mytilineos Holdings S.A. 5-7 Patroklou Str Maroussi Athens Greece Tel: Fax: METKA S.A. 11 Mar. Antypa Str N. Iraklio Athens Greece Tel: Fax: