GEK TERNA Real Estate Construction S A : IR REPORT 3M 2021

IR Report Q1 2021

Q1 2021 Highlights

• GEK TERNA and MOTOR OIL Group announced their cooperation for the joint development, construction and operation of the CCGT Station, with an installed capacity of 877 MW in Komotini
• The Group made significant steps towards rebalancing its investment portfolio, with the full consolidation of a number of its concessions and investments in renewable energy activities that boast longer-term and more stable cash flows
• Construction backlog currently stands at €1.7 bn - aim to increase it further
• Cash in hand from 500m bond issuance secures enough equity to finance future expansion in infrastructure

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Developments during the period by activity

Activity		Revenue €m(1)				Comments
								 Increased exposure to Motorway projects
		Q12020			37
						Decrease in revenue mainly due to the lockdown restrictions that reduced
		Q12021		28				traffic. Easing of restrictions will boost the revenue generation of Motorways
					 Secured projects such as the Kasteli airport and the Hellinikon Casino are
Concessions
								expected to significantly increase run-rate Revenue & EBITDA

• Continued strong operating profitability and cash flow generation

Q12020		76			Increased revenue due to increase in fully operational parks
					 Target to increase installed capacity to 3,000MW within the next 5 years
Q12021			78

Energy Production

Q12020 138

Q12021104

Construction

• Small reduction in revenue vs. previous year due to current backlog mix
• A rapid recovery is expected due to the current backlog of €1.7bn including a number of high quality construction projects, including the new International airport in Heraklion (€470m) and the Hellinikon Casino

Real Estate

• The Group is planning to divest in the future from specific real estate assets

Q12020 1

Q12021 1

Mining

• Still on investment phase - no results generated

Q12020 2

Q12021 1

1. Revenues post intra-segment elimination

* 38% participation in TE, 50% ownership in the first plant (HERON 1) and 25% in HERON 2 after the deals with GDF SUEZ and Qatar Petroleum

3

Revenue & EBITDA Mix by Activity

Well diversified mix of activities with Concessions and Electricity Production business units adding resilience and stability to operations

Revenue Breakdown (€m)1		Adj. EBITDA3 Breakdown (€m)

								1.403																														306
								40																												285
				1.186																					280	281
		1.163	216	1.156													253
		42	24				52															13
972	197		971
151	173	237
38	89					48																						194
16																		109		129	157	177
140								185		273
																155
15
		955					949						151							98				12
779	900	682											153						93					79
															221											103	105
												498									126	61
																		11
																					78				59
																					28											32					17
																					104														16		19
																																							4
											2											(2)	(9)						(1)	(11)	(12)		(2)
																																		2
2015	2016	2017	2018	2019	2020		Q1 2021	2015	2016		2017	2018	2020		Q12021
		2019
								Construction						Concessions				Electricity Production from RES						Other
											
															Most resilient business units have reached a critical size level

1. Graph shows revenue figures after eliminations of intracompany transactions
2. Concessions became fully consolidated from 2018 onwards
3. EBITDA + any non cash items. Segmental EBITDA for 2019/2020 is shown before any intra-segment eliminations. In those cases, total eliminations are included under "Other"
   4

Optimal Balance Sheet Structure

GEK Terna Group funding strategy is based on autonomous funding by business unit along with corporate bond funding at the Holding Company level

Debt Breakdown by Segment 2020

Energy from RES

Concessions

Holdings

Construction

Other

Recourse Debt

Non-Recourse Debt

5% 6%

37%

25% Total Debt: €2.4bn

27%

27%

Total Debt:

€2.4bn

73%

• Most of the debt sits at Energy from Renewables and Concessions, the business units with the highest debt capacity
• Terna Energy debt is primarily project finance
• Holdco debt consists of bonds, serviced by upstream dividends
• The Group has issued two corporate bonds of €500m and 120m, maturing in 2027 and 2025 respectively
• Recent bond covenants allow significant headroom for further growth investments
• The group allocates debt according to debt capacity per business unit and market conditions

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