In AKTOR Group of Companies is renamed Intrakat

The change of name, becomes a Group of Companies and evolves into a leading player in the infrastructure market in Southeast Europe, applying a strategic design, including a corporate transformation – model for Greek data, significant acquisitions and investments of EUR 2 billion for the development of new business sectors, a growth increase in equity capital of EUR 200 million and a new corporate identity that marks a new era. This new strategic reposition was presented today (29.10.2024) in Athens by the President and CEO of the AKTOR Group, Alexander Exarchos, in a special event in the presence of hundreds of market officials. Mr. Exarch said: “In July 2022 we entered Intrakat’s equity capital, having as a vision the creation of an important pillar of construction in Southeast Europe and within two years fivefold its growth rate. This objective gained status with the acquisition of AKTOR, which multiplied our footprint on the market and laid the foundations for a comprehensive and internationalised Group, with multi-shaft activities.” “The name AKTOR has deep roots in the country and is an integral part of its modern history, having been associated with the progress and development of the place. Today the name AKTOR acquires a new breath and marks the beginning of a new era and a new chapter in our history that symbolizes our daring to change to build something bigger and stronger: One of the largest infrastructure groups in Greece and Southeast Europe” continued the Group’s head. And he added: “With this ambitious objective, we are implementing a radical corporate transformation that will contribute to our strategic pursuit of the creation of equity. And we are decisively moving towards a Share Capital Growth to support acquisitions in all our new sectors of activity. Our new strategic reposition is based on four main axes: The creation of value for shareholders, the diversification of the revenue mix, the production of strong and stable profits and the distribution of dividends to our shareholders. And this strategy will serve consistently.” Investments, acquisitions and IT The AKTOR Company Group will expand its business sector, maintaining construction as a central pillar of its activities and investing in the most dynamic – and related to the construction – sectors of the economy, with the aim of diversifying the mix of pre-tax, interest and depreciation profits (EBITDA), strengthening its net profits, creating a more stable and strong economic profile and creating equity. As Mr Exarche pointed out, according to international analyses, construction-based groups, but also active in other related sectors, have a significantly better share performance, as they achieve diversification of EBITDA and a reduction in business risk and dependence on the volatile construction industry, while they have comparative advantage and synergies with similar sectors due to construction know-how. Thus, it is typical that while groups of pure construction activities have an average multiplier Enterprise value / EBITDA of 6x, groups with diversification of activities have a higher multiplier Enterprise value / EBITDA ranging to 8x. The Group’s objective, which will invest EUR 2 billion for acquisitions, is to achieve a 2025 turnover of EUR 1.4 billion and EBITDA of EUR 184 million and a turnover of EUR 3,2 billion and EBITDA of EUR 430 million in 2030. The aim is to create a balanced portfolio of activities at the end of the decade. Specifically, the aim of 2030 is that the Group’s differentiated EBITDA blend comes by 42% from construction, 30% from RES, 13% from real estate, 9% from participations and 6% from plant management. After completion of the acquisitions, the number of Group staff in 2025 will exceed 8,800 employees in Greece and abroad. In order to support this ambitious project, the AKTOR Group of Companies goes on to develop a share capital increase of EUR 200 million, aimed at financing investments and creating value for shareholders. As Mr. Exarche stressed, AMP will allow the Group to complete acquisitions, capitalise on the investment opportunities it evaluates, strengthen its financial performance, “unlocking” new growth opportunities, and create a competitive advantage for shareholders. The price of the new shares will be 4,60 euros. At the same time, a holistic corporate transformation is implemented, which transforms the AKTOR Company Group, from a construction company, into a multi-shaft group with a multitude of new activities. “What we do today is not that we simply change name. We change everything and gain European orientation with emphasis on a mix of different activities,” noted Mr Exarche. This transformation redefines the position of the Group, which will control a multidimensional company ecosystem. New corporate structure The Group’s new operating model focuses on changing the way it works by introducing innovations, global best practices and cutting-edge technologies, and the AKTOR Group’s structure changes as it acquires modern subsidiaries, which will implement their activities vertically. AKTOR MOBILE: The company goes on to acquire a portfolio of 56 properties, amounting to €582 million from Prodea in Greece, Italy, Cyprus and Bulgaria, which will transform into a modern Real Estate platform, utilizing group synergies for renovation, operation and development of real estate. The aim for EBITDA is to reach 2025 €40 million and 2030 €55 million respectively. Funds for the investment of €582 million will come from 75% non-recourse Bank Debt, 15% from non-recourse Sub Debt and 10% from own funds. The company’s contribution to the Group’s EBITDA will amount to 2030 to 13%. AKTOR RENEWABLE: It will proceed with investments of EUR 1.4 billion for RES projects with a power output of 1,300 MW by the end of 2027, through the implementation of existing agreements for the acquisition and construction of RES projects with an aggregate capacity of 912 MW, as well as the acquisition of a further RES portfolio of a total power of 390 MW, currently under investigation. In addition, with an implementation horizon after 2028, the company will mature an existing energy portfolio of 1,300 MW, as well as an additional 1,500 MW portfolio involving energy storage through pumping. The aim is to achieve EBITDA of €22 million in 2025 and €130 million in 2030, respectively. The total investment will amount to €1.4 billion of which 80% will come from non-recourse Bank Debt, 10% from non-recourse Sub Debt and 10% from equity. The company’s contribution to EBITDA will be up to 30% in 2030. AKTOR CONSTRUCTION: Construction remains the driving force and important pillar of the new corporate structure and will be enriched with a new functional model, with modern processes, control based on best international practices and digital transformation. The Group’s “atmospheric engine” will support the activities of AKTOR, while the acquisition of the technical company ENERGY in Greece has already been completed, in order to strengthen its technical expertise in electromechanical infrastructure projects and, in parallel, investment acquisition opportunities in construction and Romania are being considered. The aim of AKTOR CONSTRUCTION is to achieve turnover €1.6 billion and EBITDA €109 million in 2025, and €2.9 billion and €180 million in 2030 respectively. Investment in direct acquisitions through equity will amount to €10 million. The company’s contribution to the Group’s EBITDA will be 2030 to 42%. AKTOR INSTALLATION MANAGEMENT: The Group’s subsidiary proceeds to the acquisition of companies active in the promising areas of security and feeding services. In particular, the acquisition of Oceanic Security was agreed, while it is close to completing the acquisition of feeding services. The aim of the company is to become a one stop shop, which will cover all intra-group needs and “unlock” access to larger market sectors. The aim is to achieve EBITDA of €12 million in 2025 and €25 million in 2030, respectively. The contribution rate to the EBITDA of the AKTOR Group will be 6% in 2030. Investment in direct acquisitions will amount to 21 million and will come from operating flows. AKTOR PARTICIPATION: The company starts with strong foundations in the construction, operation and maintenance of concession and PPP projects, while the acquisition of existing concession works or companies participating in concession projects is considered. It also aims to develop a portfolio of concessions in Romania – when the state chooses to use this model of construction and financing infrastructure. The company will create a portfolio of concessions with maturity horizons in 2028 and aims to achieve EBITDA of €40 million in 2030, with the contribution rate to the EBITDA of the AKTOR Group reaching 9% in the same period. AKTOR’s scholarship program creates a scholarship program for studies abroad in a number of specialities covering all activities of the Group, with the aim of creating a nursery for executives and qualified staff. This is a training and skills development programme, with emphasis on digital technologies and the use of specialized tools and practices for their more effective work in their employment sectors in the Group. The detailed presentation of the Scholarship Program will take place in January 2025. New Corporate Identity AKTOR Group presented its new corporate identity, which marks the new era and its aim to become a force for evolution in the fields where it operates. With its mission to contribute with its action and investments to progress and prosperity, upgrading people’s lives, the AKTOR Group evolves, committing itself to a sustainable future and producing value for its shareholders and society.