Group Presentation June 2012
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
Group Overview Areas of Activity Metallurgy & Mining Energy Engineering Procurement Construction (EPC) Stock Data Financial Review Corporate Social Responsibility Summary 3
Group Overview 4
Group History 1999: Acquisition of Metka S.A., the leading electromechanical and metallic construction company in Greece. 1990: Establishment of Mytilineos Holdings S.A. 2005: Acquisition of Aluminium of Greece S.A.,one of the largest vertical integrated alumina and aluminium producers in Europe. 2007: Strategic Partnership with Endesa. Endesa (Hellas) is established a reference player in the Greek Energy Market. 2010: Mytilineos Group acquires full control of Endesa Hellas buying out ENEL s participation on the JV. Protergia is born. Establishment of M&M Natural Gas SA with Motor Oil which sets off its activity in the supply and trading of Natural Gas. 1908: Company founded by Mytilineos family in Athens. 5
GROUP S CORPORATE STRUCTURE Mkt Cap*: 265 mn METALLURGY & MINING ENERGY EPC BAUXITE POWER GENERATION ASSETS METKA 57,4% Mkt Cap*: 360 mn ALUMINA & ALUMINIUM NATURAL GAS SUPPLY Source: Company Information. Note: Market data 22 June 2012. 6 METKA is the only remaining listed subsidiary.
Areas of Activity Metallurgy & Mining The leading industrial producer of alumina and aluminium in S.E. Europe & the only vertically integrated bauxite, alumina and aluminium production plant in Europe. DELPHI- DISTOMON The second largest bauxite producer in Greece annual output more than 650.000 tons. 7
Metallurgy & Mining Alumina & Aluminium Largest vertically integrated AL producer in the EU Business Overview Operational & Financial Overview Leading industrial producer of refined alumina and primary aluminium in South Eastern Europe. Vertically integrated production unit including bauxite mines, alumina refinery, smelter, cogeneration power plant and self owned port facilities for large tonnage ships. Key Strengths Among the three lowest cost production units in Europe both for Alumina and Aluminium well below average global cost. Secured Electricity Supply. Enough alumina to cover own aluminium production needs and to export half a million tonnes per annum. 10-year export contract with Glencore AG regarding the majority of excess alumina production. Steam is produced using Natural Gas by the 334 MW CHP Plant, 100% owned by MYTILINEOS Group. Secured bauxite supply through the 100% owned subsidiary Delphi Distomon S.A.. Merger with S&B will lead to the creation of the largest bauxite producer in Europe. Efficient risk management strategy. Primary Aluminium Capacity Refined Alumina Capacity 165Ktn 800ktn Source: Company Information. 8
Metallurgy & Mining Business Outlook AL World Consumption Business Overview: Fundamentals call for long term demand growth. Increased demand from Emerging Markets supported by well established trends such as industrialisation and urbanisation. Substitution from other Metals. Copper to Aluminium ratio close to historically high level. Energy Scarcity Power Restrictions & Environmental Emissions Goals in China. Inflationary environment Increased weighting of commodities in financial portfolios. Source: Company Information, CRU ANALYSIS. 9
Metallurgy & Mining Cost Analysis SMELTING COST CURVE Constantly fighting operating costs: 3,500 Vertically Integrated Producer Located in Europe. Survival I: Cost cutting program completed in 2011. 3,000 2,500 AoG target <50 th percentile Global average cost: 2,150 $/MT Mellon: New ambitious cost cutting program, launched in 2012, sets to restore the competiveness of the Aluminion business. Realization of the investment to substitute 220ktn of Heavy Fuel oil with Steam produced at the CHP plant. The commercial operation of the CHP plant changes Aluminion SA cost profile. ($/MT) 2,000 1,500 Lower electricity tariff reflecting base load production cost. Extracting synergies from the S&B bauxite operations acquisition. 1,000 AL Cost Analysis 500 0 0 10,000 20,000 30,000 40,000 50,000 Cumulative Production (000 MT) Other Costs 9% Raw Materials 13% Labour Cost 7% Total Energy 38% Source: Company Information, CRU ANALYSIS, MBR * PPC Agreement pending approval by the Regulatory Authority. Delivered Alumina Cost 33% 10
Areas of Activity Energy Established in 2010 following the 100% acquisition of Endesa Hellas. Established in 2010 between MYTILINEOS and MOTOR OIL for the supply and trade of natural gas, with the potential to become the second largest gas supplier in Greece. 11
ENERGY Domestic Electricity Market Overview: The energy map The Greek electricity market (Demand peak c. 10 GW) is under liberalization. Most of the existing capacity is old and inefficient, underlying the need for new capacity and replacements. Inefficient fuel supply-mix, c. 57% derived from Lignite. Dominant position of PPC to be challenged by IPPs (MYTILINEOS - MOTOR OIL, TERNA - GDF, HELPE EDISON). PPC controls Hydro and Lignite production. Power production facilities of c. 5GW 50% of the population in the Attica region Key Trends: Increase in gas installed capacity and output since 2004. Development of new RES projects as Greece hopes on important wind and solar potential. Post 2013, Greece will face increased cost due to high carbon emissions of lignite. New energy bill which effectively aligns the local legislation with the European 3rd Energy Package. Favorable framework introducing cost recovery mechanism and fees for Capacity Certificates. The effective full liberalization of the market is expected to lead to higher wholesale prices and increased spark spreads for IPPs. Location of new thermal capacity developments IPP licenses (CCGT only) Hydroelectric Plants >10MW Thermal Power Plants mainland grid only Source: Company Information, HTSO. 12
Electricity Market Developments in 2011: Total Power demand: 51.9 TWh (down 0.94% y-o-y) despite the economic contraction. Increased demand from Industrial Consumers. Wholesale prices up 37% driven by increased natural gas prices. Natural Gas production was up 43% y-o-y on the back of increased installed capacity and favorable new operational framework. The CHP and Ag. Nikolaos CCGT in 2011 produced 2.7 TWh which corresponds to 5.5% of the total domestic power production. CROATIA BULGARIA Sarajevo YUGOSLAVIA Sofia Turkey: 600 MW ITALY Skopje Total Northern: 1,000 MW F.Y.R.O.M Tirana ALB. Thessaloniki Italy: 500 MW, 500 MW Sicily Interconnections Ionian Sea GREECE Athens Aegean Sea Crete ENERGY Fuel Mix Evolution Ex-Ante SMP data 2009 2011 (EUR) AVG 2011: 59.4 AVG 2010: 45.7 AVG 2009: 43.7 Source: Company Information, HTSO. 13
ENERGY Mytilineos Energy Portfolio (1) Snapshot - CCGT Viotia Project information CCGT Viotia Combined cycle natural gas fired unit. Total Capex 242 m. In Commercial Operation since June 2011. Single shaft configuration GE Technology. Interfaces with CHP/AoG. Utilising existing NG pipeline. New 400kV line constructed. The most efficient CCGT in Greece. Guaranteed Values by EPC Contractor. Gross capacity 444.48MW. Net capacity 430.1MW. Net efficiency 57.2% (LHV new & clean). Snapshot - CCGT KORINTHOS POWER Project information CCGT KORINTHOS POWER Combined cycle natural gas fired unit. Total Capex 290 m. In commercial operation since April 2012. Site located in Prefecture of Korinthos, within the MOH refinery complex. Single shaft natural gas fired CCGT power plant with direct air cooling technology to be applied. Proximity to natural gas M/R station and 150 kv transmission system. Guaranteed Values by EPC Contractor Gross capacity 436.6MW Net capacity 423.03MW Net efficiency 56.9% (LHV) Source: Company Information. 14
ENERGY Mytilineos Energy Portfolio (2) Snapshot - CHP Viotia Among the largest CHP plants in South East Europe Total Capex 191 m. Configuration 2 GTs x 2 HRSGs x 1 ST Gross Capacity 334 MW. Started its operation in 2008. Significant primary energy savings at maximum efficiency mode (130MW). Priority dispatch & Feed in Tariff - Operating as Base Load RES. WIND HYDRO SOLAR Operational 36MW Total Portfolio 1,417MW Operational 6MW Total Portfolio 72MW Operational 12MW Total Portfolio 18MW Source: Company Information. 15
Business Outlook Leading IPP and 2nd largest player in the domestic electricity market next to PPC ENERGY Ranking Order CCGT s Key Strengths: MYTILINEOS HOLDINGS operates the most efficient Assets in the domestic market having also flexibility to select over alternative Natural Gas supply (LNG Pipeline NG) sources. The Capacity Certificates (45,000 / MW) regime + Cost plus scheme + the high efficiency of MG Assets add up to secured profitability and high load factors. Well positioned to benefit the most from the full effective liberalization of the domestic energy market. Source: Company Information, HTSO, data refer to 1 ST Quarter 2012. 16
ENERGY Strategy in the Energy Sector Energy market dynamics Own requirements EPC know-how High growth potential Consolidation Opportunities Aluminion SA is the largest consumer of electricity in Greece The Group is the Largest Natural Gas consumer in Greece for Industrial & Generation use (1.6bcm) Metka is a leading EPC contractor for power generation projects in SE Europe and the Middle East. Group total installed capacity attributable to thermal generation c. 1.2GW in 2012 Leading IPP capable of servicing both own electricity and natural gas requirements and compete effectively in the free market Source: Company Information 17
ENERGY Natural Gas Market Domestic NG Market Overview : Full liberalization of Natural Gas Market (including LNG). DESFA, the Gas Transportation System Operator, grants all market participants access to the Revithousa LNG Terminal. DEPA is the incumbent player importing Gas mainly from Russia and Turkey via pipeline. 2011 total Natural Gas Consumption in Greece reached 4.3 bcm. Demand is expected to continue to grow and even exceed 4.5 bcm in 2012. Existing portfolio of customers exceeds 1.6bcm of annual consumption in a market that is expected to reach c. 4.5bcm in 2012 MYTILINEOS GROUP : MYTILINEOS Group is active in the domestic gas market through a 50% - 50% JV with MOTOR OIL HELLAS, named M&M NATURAL GAS S.A. M&M was the first private company to import LNG in Greece and get TPA rights in the Revithousa LNG Terminal. M&M helps the Group secure Natural Gas at competitive rates becoming also the second largest gas supplier in Greece. M&M Key Clients: Source: Company Information. MG Natural Gas Fired Plants 1.2 GW + AoG Refinery + MOTOR OIL Refinery 18
Areas of Activity EPC The leading EPC contractor for specialised large-scale turn key energy projects in South East Europe, undertaking the complete range of Engineering, Procurement and Construction activities. Strong know-how on steel constructions / civil engineering applications (bridges, complex structures); oil & gas / refinery market 19
EPC Historic Evolution of METKA Leading EPC Contractor in SE Europe expanding in regional growth markets Phase 1 Phase 2 PEEGT Following the initial phase of the company, where Metka built up its technical and project management expertise working on projects for PPC, Metka has undertaken projects for other utility players. Currently Metka has moved to a stage where it has considerable experience and capabilities to run simultaneous demanding projects, both domestically and abroad Algeria 20
EPC METKA Business Outlook Business Overview Financial Overview METKA S.A., 57.4% owned by Mytilineos Holdings, is a leading EPC Contractor with international profile. Listed in the Athens Stock Exchange (ASE) since 1973. METKA is involved in: Energy» Complete power plants: engineering, procurement, construction (EPC) scope.» EPC Contractor or consortium with technology suppliers. Infrastructure & Special Steels Structures» Focus on technically demanding infrastructure applications.» Complex steel structures, mining & minerals, port equipment, refinery & petrochemical.» Manufacturing co-production with defence majors.» Land defence systems. Major supplier of the Hellenic Armed Forces. Key Strengths Significant international presence. World class manufacturing capability with high value-added profile. Strong demand from developing countries. Strong backlog currently at 1.6 bn Earnings Visibility & Stability. High cash flow generation. Close ties with all world-class technology providers, including GE, Alstom, Siemens etc. 850 highly skilled and experienced personnel with excellent know-how. Source: Company Information. 21
EPC - BACKLOG 87% PROJECTS ABROAD Strong Backlog Well Diversified Portfolio Greece 1.6 bn PPC MYTILINEOS GROUP OTHER PPC: 417 MW CCGT in Aliveri. Alstom sub supplier for the main equipment. Contract value of 219 m. Turkey OMV (BORASCO): 870 MW CCGT in Turkey. GE sub supplier for the main equipment. Contract value of 475 m. RWE & Turcas Güney Elektrik Uretim A. Ş. : 775 MW CCGT in Turkey. Siemens sub supplier for the main equipment. Contract value of 450 m. 3% 1% 9% Iraq Republic of Iraq: 1250 MW OCGT in IRAQ. GE sub supplier for the main equipment. Contract value of 260 m. Romania OMV PETROM: 860 MW CCGT in Romania, 50-50 Consortium with GE. Contract value of 210 m. Syria PEEGT: 700 MW CCGT in Syria. METKA leader of Consortium with Ansaldo. Contract value of 650 m. PEEGT: 724 MW CCGT in Syria. METKA leader of Consortium with Ansaldo. Contract value of 678 m. Algeria 6 sets of Balance of Plant equipment trailer mounted in Algeria. METKA s Turkish subsidiary Power Projects Limited in Consortium with GE. Contract value of 34 m. Source: Company Information. Backlog includes the project value of the recently awarded project in Iraq. 22
INVESTMENT CASE SUMMARY METKA: Investment Highlights Well positioned to benefit from the expansion in regional growth markets. Strong Backlog - Highly visible cash flows over the next years. International exposure neutral investment case against the domestic environment. High profitability level. Quality Balance Sheet Net Cash Position High Dividend Yield. Quality Clients with significant investment plans. Source: Company Information. 23
Stock Data 24
STOCK DATA MYTILINEOS HOLDINGS S.A. Share Price Information Market Cap: 265 mn Avg. Trading Value: 1.0 mn {2011} Total No of shares: 116,915,862 Free Float: 64% Listing FTSE/ASE 20 Stock Performance 140 Stock Symbols 120 100 2011 Rel. Perf.: +26% ASE: MYTIL Reuters: MYTr.AT Bloomberg: MYTIL GA 80 60 Mytilineos Family 31.9% Shareholder Structure Greek Institutional Investors 13.2% Retail 37.4% 40 20 Dec-09 Mar-10 A pr-10 Jun-10 A ug-10 O ct-10 Dec-10 Feb-11 A pr-11 Jun-11 A ug-11 O ct-11 Dec-11 Mytilineos Group Athex Composite Treasury Stock 4.3% Foreign Institutional Investors 13.2% Notes: Data as of 22 June 2012. Source: Company Information. 25
STOCK DATA METKA S.A. Share Price Information Market Cap: 360 mn Avg. Trading Value: 0.2 mn {2011} Total No of shares: 51,950,600 Free Float: 42.6% Listing FTSE/ASE 20 Stock Performance 140 120 2011 Rel. Perf.: +15% Stock Symbols 100 ASE: METK Reuters: MTKr.AT Bloomberg: METTK GA 80 60 Shareholder Structure Retail 10.7% 40 20 Dec-09 Mar-10 A pr-10 Jun-10 A ug-10 O ct-10 Dec-10 Feb-11 A pr-11 Jun-11 A ug-11 O ct-11 Dec-11 Mytilineos Holdings 57.4% Greek Institutional Investors 10.5% Metka Athex Composite Notes: Data as of 22 June 2012. Source: Company Information. Foreign Institutional Investors 21.4% 26
Financial Review 27
FINANCIAL REVIEW Financial Performance Consolidated balance sheet figures (EURmn) m 2008 2009 2010 2011 Fixed assets 902 1,135 1,516 1,624 Current assets 868 854 1,102 1,059 Total assets 1,770 1,989 2,619 2,684 Shareholders Equity 901 764 844 901 Net Debt 367 431 533 575 Total Liabilities 869 1,225 1,775 1,783 Ratios Net Debt / EBITDA* 3.3x 3.6x 3.3x 2.8x Days Receivables 108 154 152 113 Outstanding Performance in 2011: 2012 Performance Key Drivers: Strong Growth from the EPC business. Increased contribution from projects abroad. Favorable Aluminum prices. Increased Aluminum production (+25%). Commercial operation of thermal power generation unit for the first time. Source: Company Information. Key performance of the Energy Sector. Commercial Operation of 1.2 GW for the full year. Solid Performance of the EPC business on the back of the signed backlog. Resistant performance of the Metallurgy sector - Ambitious cost cutting program. 28
FINANCIAL REVIEW Revenues Diversification The Group offers exposure to a diversified portfolio, well balanced between cyclical and non cyclical activities, different sectors, markets and currencies thus minimizing the impact of the Greek sovereign debt crisis. Revenues Diversification: Sales in Greece represent 23% of the Consolidated Turnover in 2011. 83% of EPC Sales refer to projects abroad mainly Turkey. 65% of the Metallurgy Sales refer to exports mainly to EU countries. The kick off of the Energy Sector offers significant growth prospects adding also defensive characteristics in MYTILINEOS Group business profile. Source: Company Information. 29
FINANCIAL REVIEW Realizing Operating Synergies Maximizing positive synergies on a Group level : EPC Business Energy Business Metal Business Natural Hedge between Energy and Aluminium business, mitigating FX exposure. Secured electricity supply for Aluminium from the Group s own power production. Largest electricity consumer & largest independent power producer in Greece. METKA offering a first mover advantage to the Group s effort to penetrate the domestic electricity market, building as many MWs as soon as possible. METKA s leading position in Turkey provides leverage for the Group s strategy to expand its power generation activities in the neighboring country. METKA gaining experience and valuable references from the construction of the Group s power units. M&M sourcing Natural Gas to cover the Group s needs Becoming an alternative provider next to DEPA. Source: Company Information. 30
CORPORATE SOCIAL RESPONSIBILITY Non Financial Reporting LOCAL COMMUNITIES HUMAN RESOURCES Supporting the cultural, intellectual and social life of all local communities Recognising the value of the contribution of the human capital STAKEHOLDER FOCUS Building mutual trust and understanding Organization of CSR forums in Viotia & Volos in 2010 Carrying out of a Corporate Social Responsibility Research 1,7 mil. in 2010 for sports and infrastructure facilities, support of local institutions and associations, reinforcement of local entrepreneurship Offering 2.500 direct working positions and even more indirect ones. Investing in constant education & development with 67.000 hours of training ENVIRONMENT Coordinated green actions or programmes aimed at protecting the environment 8,5 mil. environmental investments in 2010 Achievement of GRI LEVEL B Source: Company Information. 31
SUMMARY Investment Highlights The Group is well placed to benefit from: The liberalization of the domestic energy market Establishment of the Group as the 2 nd larger player next to PPC. The establishment of METKA as one of the most reliable EPC players in Europe and the Middle East. The supercycle in Commodities. Strong exposure abroad, neutralizing the impact of the adverse domestic economic environment. Commercial operation of three power plants 1.2GW in 2012. Strong EPC business which offers highly visible cash flows and is well positioned to benefit from the expansion in regional growth markets. Fully Integrated model in Alumina - Aluminum business. Quality Assets - Strong Balance Sheet. Extracting synergies and delivering value to the shareholders. Successful management s track record in value creation through a series of value enhancing deals. Source: Company Information. 32
CONTACT INFORMATION Dimitris Katralis IR Officer Investor Relations Department Email:dimitrios.katralis@mytilineos.gr Tel: +30-210-6877476 Fax: +30-210-6877400 Mytilineos Holdings S.A. 5-7 Patroklou Str. 15125 Maroussi Athens Greece Tel: +30-210-6877300 Fax: +30-210-6877400 www.mytilineos.gr www.metka.gr 33