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

Transcription

1 JULY

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 Leading Industrial Group in Greece Group Portfolio Primarily active in Infrastructure Projects, Energy - EPC and Defence sectors. Quoted on Athens Stock Exchange since 1973 with current market cap of 755 mn (1) A total of 4 subsidiaries with substantial know-how and specialisation in their areas of activity. Energy Projects (EPC) Infrastructure Projects METKA operates in the energy sector either as an EPC Contractor or as equivalent partner in consortia with foreign firms such as Alstom, Siemens and General Electric. Has long experience and specialized technical know-how in construction of Thermoelectric Power Plants (TPP), Hydroelectric Power Plants (HPP) and the power transmission sector. Has been the main supplier of technology and know-how to the Greek Public Power Corporation (PPC), delivering Power Generation Plants of high specifications for more than 25 years. METKA plays a significant role in the execution of large scale infrastructure projects in Greece and abroad. Has the ability to meet demanding criteria of infrastructure projects proven by the successful completion of landmark projects (fabrication of the pylon head steel structure for the Rion - Antirrion bridge, construction of the steel roof for the Olympic Velodrome, and other demanding Olympic structures, etc). Defence Projects Proven Management Major supplier of the Hellenic Armed Forces of trucks, armoured vehicles and other demanding military application structures such as submarine pressure hulls etc. Successful track record in implementing its growth strategy and delivering shareholder value. (1) As of 29 June

7 Mytilineos Group Pre-Restructuring Mytilineos Holdings Mkt Cap: mn Net Debt: 175 mn (31/03/07) BV: 779 mn METALLURGY & MINING ENERGY EPC VEHICLE 54.0% MANUFACTURING ALUMINIUM OF GREECE (52.43%) DELTA PROJECT (63.14%) METKA (53.00%) ELVO (43.00%) Mkt Cap: 550 mn 100% Alumina & Aluminum 100% Delphi Distomon Mkt Cap: 80 mn MYTILINEOS RES (100%) Mkt Cap: 755 mn Not Listed 100% Co Gen SOMETRA (93.00%) MPGS (100%) Not Listed Source: Company Information. Note: Market data as of 29 June

8 Mytilineos Group - Post-Restructuring Mytilineos Holdings Mkt Cap: mn Net Debt: 175 mn (31/03/07) BV: 779 mn METALLURGY & MINING ENERGY EPC VEHICLE 54.0% MANUFACTURING ALUMINA & ALUMINIUM (100%) ENDESA (HELLAS) (49.99%) METKA (53%) ELVO (43%) Not Listed DELPHI DISTOMON (100%) Not Listed Not Listed SOMETRA (93%) Not Listed MPGS DELTA PROJECT MYTILINEOS RES Co Gen Mkt Cap: 775 mn Not Listed CONTRIBUTION OF ENERGY ASSETS TO ENDESA HELLAS - ACTIONPLAN Phase I: Following the establishment, and in advance of the completion of the triple merger, MYTILINEOS RES and MPGS will be merged by absorption with Endesa (Hellas). Phase II: Post completion of the triple merger and the spin-offs process CoGen and DELTA PROGECT will be merged by absorption with Endesa Hellas. Source: Company Information. Note: Market data as of 29 June

9 Share Price Performance - Ownership Share Price Performance Shareholders Retail 18.08% MYTILINEOS HOLDINGS 53.00% Greek Institutional Investors 9.80% 80 Foreign Institutional Investors 19.12% 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Metka Athens General index FTSE40 Capitalization : 755 m (1) Daily trading volume : 2,89 m Number of shares: 51,950,600 (1) As of 29/06/2007 9

10 Financial Snapshot Group Turnover ( m; % on column indicates annual growth rate. Turnover by Activity E (1) Infrastructure 14% Infrastructure 12% 31.1% 30.1% 1,7% - 8,5% Defense 14% Defense 7% (1) E (1) Management Estimates (1) Management Estimates Energy 72% Energy 81% EBITDA ( m; % on column indicates annual growth rate. 15,1% 55,9% 6,6% - 18% 72 Defense 26% EBITDA by Activity Ε (1 ) E (1) Infrastructure Infrastructure 2% 6% Defense 14% (1) 2007E (1) Management Εκτιµήσεις ιοίκησης Estimates (1) Management Estimates Energy 72% Energy 80% 10

11 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. Employees with Higher Education Degrees % of Total Employees with Technical / Scientific Degree Qualifications % 14% 14% 15% 16% 18% 30% 35% 39%

12 Areas of Activity 12

13 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 Cogeneration Project of Aluminium of Greece Plant : 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. 2006: Ilarion Hydroelectric Project. 13

14 Energy Projects (EPC) Thermoelectric Power Plants (TPP) Key Strengths Operations Overview 40 years of experience, 40 major projects. Capability to undertake major projects as EPC contractor, either directly or in consortium with other firms. Manufacture and supply of all main components (boilers, coal handling & feeding, ash handling systems, high & low pressure parts, mills, precipitators, desox, denox). Complete erection of TPP s. Strong track record in on-time delivery of projects with demanding schedules. Major supplier / subcontractor to PPC. Exposure in Lignite power plants, uniquely positions it as key counterparty of PPC, and well positioned for regional growth. Recent experience in gas fired projects (Combined Cycle Co Generation). Strong Co-operation (incl. royalties, licences) with the majority of the leading power equipment suppliers eg. Alstom, Siemens, GE, Babcock, AE&E, Ansaldo, LMZ, ABB. Three state-of-the-art facilities with 500+ highly skilled and experienced personnel with excellent know-how. 14

15 Energy Projects (EPC) (Cont d) Thermoelectric Power Plants (TTP) Recent Projects Experience PPC Lavrio Unit V, Combined Cycle. Lump-sum EPC - Contract value mn. Natural Gas fired, 378 MW combined cycle unit. Single shaft GE STAG 109FA. HRSG Alstom. Awarded in 2004, entered commercial operation early Aluminium de Grèce Co-generation. Lump-sum EPC - Contract value mn. Natural gas fired cogeneration plant (316MW plus 252MW th ) in configuration. 2 x GE Frame 9E gas turbines., Siemens steam turbine. Alstom HRSG s. Awarded in 2005, currently in progress. 15

16 Energy Projects (EPC) (Cont d) Thermoelectric Power Plants (TTP) Recent Projects Experience PPC, SES Linoperamata, Crete. Turn-key EPC - Contract value 27.8 mn. Design, supply, erection and start-up of 1 x GE LM6000 sprint (43,3MW) for permanent installation and 1 x GE TM2500+ (28 MW) on rental basis. Lump-sum scope includes: Design and supply of all electrical equipment. Liquid fuels (distillate) infrastructure. Desalination, chillers and ancillaries. All civil works and erection. Contract period PPC Lavrio Unit IV, 550 MW Combined Cycle. Lump-sum EPC - Contract awarded by the Public Power Corporation (PPC) of Greece to consortium of Alstom-METKA. Contract value 202 mn. Natural gas fired, combined cycle unit. Awarded in Commercial operation

17 Energy Projects (EPC) (Cont d) Thermoelectric Power Plants (TTP) Recent Projects Experience 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

18 Energy Projects (EPC) (Cont d) Thermoelectric Power Plants (TTP) Recent Projects Experience PPC Ag. Dimitrios Units I IV. Construction of 4 x lignite fired units of total capacity 1220 MW. Two separate EPC contracts: Units I II of 300MW each, Units III IV of 310MW each. Major participant in both EPC contracts as consortium member. Execution period PPC Florina, Unit I. New lignite fired unit, 330MW awarded by the Public Power Corporation of Greece. Collaboration with Alstom. Contract period

19 Energy Projects (EPC) (Cont d) Hydroelectric Power Plants (HPP) Recent Projects Experience PPC HES Thissavros, 3x100MW, Nestos River. Project execution Contract value 59.0 mn. Supply, installation and start-up of: Pump turbines and other auxiliary electromechanical equipment. Trash racks, stop logs, power tunnel steel liners,gates for power tunnels,draft tubes and spillway. Consortium of METKA Cegelec - Alstom Jeumont Vevey. PPC Ilarion Hydroelectric Project. Turn key EPC - Contract signed July 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. 19

20 Infrastructure Projects Infrastructure Projects Key Strengths 40 years of experience in turn-key manufacture, supply and erection. Strong track record in on-time delivery of projects with demanding schedules. Operations Overview Bridges: steel and steel/concrete construction. Port equipment: gantry cranes, ship cargo transporters, straddle carriers. Complex metal structures, including athletics facilities. Mining and mineral processing facilities (belt conveyors, crushers, kilns, mills, etc.). Refining, Petrochemicals. Broad customer base / PPC, Cement Companies, Port Authorities, Refineries etc. State-of-the-art manufacturing facilities with significant experience in high value added projects Reinforcement through acquisition of the specialised contracting companies EKME and ELEMKA. International exposure. Railway rolling stock. 20

21 Infrastructure Projects (Cont d) Complex Steel Structures Rion Antirion Bridge. Olympic Velodrome Recent Projects Experience Fabrication and erection of Pylon Head Steel Structure, marsupial platforms and supporting frames. Assembly and installation of steel deck. Execution Fabrication and erection. Execution Contract value 24.2 mn. 21

22 Infrastructure Projects (Cont d) Heavy Industry Mining, Minerals Processing Refining & Petrochemicals Recent Projects Experience 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, heat exchangers, etc. Turn-key supply and erection. Clients include refineries (Hellenic Petroleum, Motor Oil Hellas) and major chemical plants in Greece. 22

23 Defence Projects Defence Projects Key Strengths Operations Overview The industrial activity is largely based on the significant machinery equipment of METKA s two plants,as well as the advanced know-how of the existing workforce. METKA was recently contracted with two important projects for the Greek armed forces, in the sector of: Pressurised hull construction for submarines. Fabrication of hull, turret and mechanical equipment for battle tanks. Successful delivery of first parts has set concrete foundations for future defence project of any scope. Increased strategic focus following acquisition by Mytilineos Group. Dynamic development through co-production contracts for major defence programs. Utilizes the company s state-of-the-art manufacturing capabilities. Above projects ensure significant amount of high technology workload for up to year

24 Defence Projects (Cont d) Defence Projects Co-production of LEOPARD 2-Hel Main Battle Tank Patriot Missile Air Defence System. Recent Projects Experience 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. 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

25 Defence Projects (Cont d) Defence Projects Armoured Hulls for U-214 type Submarines. Technically demanding manufacturing project with HDW (Howaldtswerke Deutsche Werft AG) for the Greek Armed Forces. Recent Projects Experience Scope includes fabrication of pressure hulls and penetrations for three latest generation submarines. Utilizes the company s sophisticated manufacturing capabilities. Contract value 21 mn. Successfully delivered during

26 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. 26

27 Group Strategy 27

28 Prospects for METKA GREECE SOUTH-EAST EUROPE New Power Plants Imminent announcement of bid results for 400MW Aliveri project. This is the first project in PPC s 1600MW capacity replacement program total est. 1 bn in EPC for the investment portfolio of Endesa Hellas: 430MW IPP plant, with coal-fired projects under development. Additional prospects for other IPP projects 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,

29 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 New Opportunities SOUTH-EAST EUROPE OTHER EUROPEAN DEVELOPING MARKETS Forthcoming environmental upgrade projects for coal plants District heating (co-generation) prospects with private investors Romania and elsewhere Building relationships with major European utilities, e.g. qualified by E.ON for combined cycle projects in central Europe. Additional focus on targets where previous experience can be applied (e.g. Malta) Massive need for energy infrastructure investments Building on newly established presence in Pakistan. Transformation into major Regional EPC is well underway The market is receptive and supportive of this development 29

30 Consolidated Financial Review 30

31 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 31

32 Consolidated Balance Sheet (IFRS in m) Fixed Assets Current Assets Total Assets Bank Debt - - Cash & Marketable Securities Equity Total Equity and Liabilities Net Debt (9) (20) (5) 32

33 Contact Information Nikos Kontos Investor Relations Officer Tel: Fax: Mytilineos Holdings S.A. 5-7 Patroklou Str Maroussi Athens Greece Tel: Fax: