Ellaktor S.A. ($ELLAKTOR)

Ladies and gentlemen, thank you for standing by. I am Geli, your Chorus Call operator. Welcome, and thank you for joining the Ellaktor Group conference call and live webcast to present and discuss the Ellaktor's Group full year 2025 results. [Operator Instructions] The conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Efthymios Bouloutas, CEO of Ellaktor Group; and Mr. Dimosthenis Revelas, CFO, Ellaktor Group. Mr. Revelas, you may now proceed.

Thank you. Good afternoon, and welcome to Ellaktor's conference call for 2025 results. Our annual report for 2025, the press release announcing Ellaktor's financial and operating results for the year as well as a presentation were issued last Friday, all are available on the IR section of our website. In our call today, we will share with you a business update and a review of our financial results and the ESG performance. A Q&A session will then follow. Allow me now to turn over the floor to Mr. Bouloutas.

Thank you very much Dimo. It's my turn to thank you for participating in Ellaktor's 2025 annual results analysis and presentation. I will follow the presentation that has been uploaded on Friday in our site. And I will cover the group business update and the basic financial results for 2025. Now 2025 was a pivotal year for Ellaktor that marked our transformation from predominantly construction, DAS Energy, DAS concessions and waste management group to a real estate infrastructure group with significantly less dependence and reliance on public sector. . we managed to complete all the transactions that we have earmarked, i.e., we completed the sale of Ellaktor to Motor Oil in January 2025 following the SPA that has been signed in July '24 for a consideration of EUR 14 million. On the real estate, we completed the Gournes sale to DIMAND in September 25 and the sale to DIMAND again in February 2026. In total, the 2 transactions totaled for approximately EUR 86 million. Now as you know, we have signed an SPA with Aktor Group in April 2025 for the sale of Aktor concessions for an enterprise value of approximately EUR 367 million. Following the approval by the Hellenic Capital Market Commission, the financial closing was completed in September '25 with a final equity consideration of $252 million. Now all this has brought a tremendous balance sheet transformation and the possibility with the cash that we had available for significant shareholder returns. So all in all, we managed to return in December '25 and March '25. In total, total dividend. Actually, it was a capital return of EUR 470 million, approximately the size of our current market capitalization. Since July 2024, i.e., less than 24 months, we have returned back a total of EUR 646 million, which amounts to EUR 136 million of our current market cap. That has left it, we're still -- we still have an active group liquidity of approximately EUR 307 million as of December 2025 and a very solid capital structure, repaid almost all of our loans. Now in terms of new businesses, we have expanded in the hospitality sector through a 25-year lease of the Fiction Athens, which is a new hotel, 40-key upside -- upscale city Hotel on Kifissias Ave starting which opened in March '26. We acquired late 2024 in December 2024 10 yielding assets, the Hestia Apartments comprising of service apartments targeting short to midterm stays, strengthening the recurring income visibility. So 2025 has been our first full year of integration risk in our platform. And finally, in March '26, we acquired from Prodea Investors, a fully leased office building of 8,500 square meters in Vasilisis Sofias Ave for EUR 44 million, an housing exposure to prime real estate. Finally, our landmark project, which is Alimos marina. The development is underway. We have filed all the required paperwork and relevant feasibility studies and expect the final licensing of both the sea side and the land part in the coming months. We expect to commence construction during 2026 with an approximate 24 to 30-month completion time line. Moving on to Page #6, which presents the financial highlights for the year. Here, I'd like to point out that group revenues for the full year amount to EUR 89 million, out of which approximately EUR 19 million derived from the continuous operations compared with EUR 354 million in 2024. So we have seen a decrease of approximately 75%. However, all of that is due to the transformation that I just mentioned. Net profit after tax amounted to EUR 152 million compared with EUR 57.4 million in 2024 and that includes, obviously, capital gains of EUR 187.3 million from the completed transaction. Group EBITDA amounted to losses of EUR 11.6 million compared with profits of EUR 170 million in 2024. We discussed the cash and cash equivalents, which stood at EUR 307 million approximately compared with EUR 293 million as of 31st of December 2024. Now total equity amounted to approximately EUR 487 million, compared to approximately EUR 777 million at the end of 2024. While equity attributable to major -- to majority shareholders amounted to EUR 438 million, which amounts to approximately EUR 1.26 per share. The decrease is mainly due to the capital returns of EUR 0.85 per share in March '25 as well as the distribution of the interim dividend for '25, amounting to approximately EUR 0.50 per share in December 2026. Finally, our total borrowings as a group, excluding the lease liabilities amount to less than EUR 26 million. Effectively, fully deleveraged as a group. And with this overview, I'd like to turn on the call to Mr. Dimosthenis Revelas, CFO of our group, to give you more details about our consolidated P&L, the balance sheet and the cash flows.

Thank you, Efthymios. Let us go through briefly over the next slides as the main the main financial items have already been mentioned. Moving on to Page 8, we present a snapshot of our P&L., broken down into continuing and discontinued operations in a more extended forum. Operating level, losses of EUR 46 million in continuing operations were partly offset by an EBITDA of EUR 34.4 million in discontinued operations, thus yielding a consolidated operating loss of EUR 11.6 million. The bottom line, though, was positively impacted by significant EUR 187 million capital gain emanating as already mentioned, from the sale transactions of Aktor concessions and Helector. On the next slide, to -- I mean, the 2 main comments are that following the shareholder reports totaling EUR 470 million in 2025, i.e. the capital return of EUR 296 million plus the interim dividend of EUR 174 million. The total equity attributable to shareholders as at year-end amounted to EUR 438 million, which is EUR 1.26 per share. The group remains practically unlevered, which coupled with a solid liquidity position provides increased flexibility in assessing various investment initiatives. The group's net cash is presented in the next slide, while in the appendix, you can also discover in more detail, the breakdown of the group's net debt or net cash position on a segmental basis on segment by segment. On Page 11, on Slide 11, we highlight the key flows of the year, which again are mostly linked on one hand to the inflows realized from the executed transactions and on the other to the payouts to shareholders. Allow me now to present an overview of our ESG performance and credentials, which demonstrates the group's steady progress in integrating ESG principles across its operations, supported by the strong performance and continuous improvement. On Slide 13, ESG KPIs and starting with the environment pillar, total greenhouse gas emissions amounted to 1,000 tons of CO2 equivalents with 62% corresponding to Scope 1 and 38% to scope 2. Total energy consumption reached out 4,000 megawatt hours of which 23% originated from renewable sources. From a social perspective, women's are represented at a rate of [ 39% ]. No incidence of human rights relations were recorded, underscoring our commitment to ethical conduct and respect for human rights. With regard to governance, no cases of data breaches, GDPR, no compliance or incidents of corruption or bribery were recorded. On the next slide that is Slide 14. We highlight some key achievements that were important to -- that are important to note in the course of 2025. The group achieved a 95% ESG transparency score from the ATHEX Exchange and maintained an A ESG score from Synergy for the second consecutive year. The group was also recognized among the 50 most sustainable companies in Greece. Our climate near-term targets were validated by the science-based targets initiative, while we received the B rating from CDP for climate disclosure. On the social side, we implemented a group-wide human rights training program and strengthened employee engagement through various internal initiatives. We also continue to support environmental education in public schools through the Green Future program. On the rating side, on the next slide, Slide 16. The group continues to perform strongly across major international agencies. Bloomberg ESG Disclosure Score rates 98.8 in 2025, showing significant improvement in recent years. LSG ranks the group's 16 of out of 338 companies in its sector, while Sustainalytics places places us in 57 spot out of 353. Our S&B global ESG score has improved to 55, significantly above the industry average FTSE Russell assigns a score of 4.3 out of 5, placing us in the 97th percentile globally. On Page 16, EU taxonomy. Our consolidated revenues are aligned while with a larger share eligible but not yet aligned. While OpEx alignment remains limited, CapEx shows strong performance with 44% already aligned. This highlights our strategic focus on directing investments towards sustainable activities. This concludes our presentation for 2025. And I would now like to open the floor for any questions you may have. Thank you.

[Operator Instructions] The first question is from the line of [indiscernible] with Optima Bank.

Just a couple of questions from my side. The first one has to do with the outlook for 2026. I can understand that the contribution from the hotel will commence from this year. So is it fair to assume that you will be breakeven profitability, perhaps EBITDA bottom line this year with the contribution from the hotel. And the second question on the dividend. We didn't hear anything. Any comments for the remaining dividend. Could you please give some color on your intention for the final dividend?

Thank you very much. Answering your second question, the dividend proposal, obviously, it's a Board of Directors decision, which will be directed to the general assembly of the company that we happen sometime in the next couple of months. So we cannot preempt the Board and their decisions. Regarding the hotel and the financial results of the company, I think it's too early in the year in order to make -- to make forecast for the full year. I think it would be fair to let at least the first semester pass by, and then we can update you on that.

[Operator Instructions] Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Okay. Well, once again, thank you very much for your participation in the conference call in Ellaktor's conference call discussing the full year 2025 results. As answered in the question post. I think it's really early in the year to make definitive statements and remarks on the full year progress. For us, as there are no further questions, I would like to pause now and thank you all for your participation. Thank you very much. .

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a pleasant evening.