Tilt Renewables — H1 2021 Earnings Presentation
25 slides from Tilt Renewables's earnings presentation, November 2020
Slide 1: Tilt Renewables Interim Results
Waipipi Wind Farm TILT RENEWABLES INTERIM RESULTS 6 MONTHS TO 30 SEPTEMBER 2020 Tilt Renewables HY21 Interim Results
Slide 2: Highlights over past 6 months
HY21 INTERIM RESULTS HIGHLIGHTS OVER PAST 6 MONTHS SAFETY EMISSIONS- FREE ENERGY MW UNDER CONSTRUCTION 469 FOCUSED DEVELOPMENT 3000+ TOTAL RECORDABLE INJURY PRODUCED LARGEST PIPELINE MW TURBINES 813GWh FREQUENCY RATE 6.7 IN NZ COMMUNITY ENGAGEMENT A$31.8 M AWARD WINNER DUNDONNELL WIND FARM A$296M EB
Slide 3: Balanced Scorecard
HY21 INTERIM RESULTS BALANCED SCORECARD HY21 results HY21 HY20 Change % Key context items Safety – Total Recordable Injury per 1M hrs 6.7 11.7 (43%) • Generation, revenue and EBITDAF Frequency Rate (TRIFR) lower than HY20, largely due to the divestment of Snowtown 2 (“SWF2”) Safety – Lost Time Injur
Slide 4: COVID-19 Safe Approach
HY21 INTERIM RESULTS COVID-19 SAFE APPROACH TLT has taken a people first approach in its pandemic response, leveraging technology to maintain our team culture. Despite the challenges, operations have been largely unaffected and TLT continues to deliver on growth projects and advance the development
Slide 5: TLT continues to deliver value to shareholders
HY21 INTERIM RESULTS TLT CONTINUES TO DELIVER VALUE TO SHAREHOLDERS TLT has continued to strengthen its presence as an Australasian Renewables leader and has sufficient cash reserves to allow investment in near term pipeline projects, without further capital raising. 1.60 1.48 1.47 MAY 2020 CURRENT
Slide 6: TLT = a unique player in the renewable energy value chain
HY21 INTERIM RESULTS TLT = A UNIQUE PLAYER IN THE RENEWABLE ENERGY VALUE CHAIN Development phase Delivery phase Operational / Asset management phase Technical capability and delivery framework to manage Quality assets and contracts Operational projects with the diverse range of risks faced by greenf
Slide 7: Operational scale & development pipeline depth and diversity
OPERATIONAL SCALE & DEVELOPMENT PIPELINE DEPTH AND DIVERSITY • 366 MW OPERATIONAL, 469 MW UNDER CONSTRUCTION • 836 MW OPERATIONAL, POST COMPLETION OF DDWF & WWF • PIPELINE >3,000 MW QLD Development Omamari WF Potential capacity: Chewko SF 70MW (wind) Potential capacity: 60MW (solar) QLD Wind (multip
Slide 8: Delivering on TLT's strategy
HY21 INTERIM RESULTS DELIVERING ON TLT’S STRATEGY AUSTRALIA NEW ZEALAND Dundonnell Wind Farm Waipipi Wind Farm WTG installation & energisation ✓ Installation of WTGs >50% Commencement of the 3 Offtake Well Progressed Civil and Transmission Construction ✓ Agreements Site energisation and first genera
Slide 9: Project Delivery Update
PROJECT DELIVERY UPDATE Tilt Renewables HY21 Interim Results 9
Slide 10: Dundonnell Wind Farm Project Update
HY21 INTERIM RESULTS DUNDONNELL WIND FARM PROJECT UPDATE Construction • All 80 WTGs installed and in commissioning process • No LTIs recorded during project 233GWh • Dropped blade incident still being investigated, however outcome sufficiently understood to allow active HY21 DUNDONNELL assurance ins
Slide 11: Dundonnell Wind Farm Project Update
HY21 INTERIM RESULTS DUNDONNELL WIND FARM PROJECT UPDATE Dundonnell Wind Farm – AEMO Hold Points Commissioning • Delays have been driven by additional wind Hold Point farm/grid modelling and additional testing before export limits can be increased MW Limit 150 226 300 336 • Export limit only binds a
Slide 12: Waipipi Wind Farm Project Update
HY21 INTERIM RESULTS WAIPIPI WIND FARM PROJECT UPDATE Construction • Civil works are largely complete, with all 31 WTG foundations poured • Currently 17 of 31 WTGs fully erected and there are two main erection cranes on site • Transmission line complete • Balance of connection infrastructure in plac
Slide 13: Operational and Financial Results
HY21 OPERATIONAL AND FINANCIAL RESULTS Tilt Renewables HY21 Interim Results 13
Slide 14: Health and Safety
HY21 INTERIM RESULTS HEALTH AND SAFETY Health and Safety - Powered by our People • TLT provides a working environment that encourages Incidents / Incident Frequency Rate (12 months rolling) Thousand Hours Worked (12 months rolling) our people to always “Think Safety”. With the care and 30 900 respec
Slide 15: Operational performance remains satisfactory
HY21 INTERIM RESULTS OPERATIONAL PERFORMANCE REMAINS SATISFACTORY Operating performance robust, positioned for growth Production and revenue – 6 months to 30 September 2020 HY21 HY20 HY21 vs HY21 HY20 HY21 vs H20 • Year on year comparisons skewed by SW2 exit & DDWF Revenue Revenue HY20 Production Pr
Slide 16: 3-Year Performance
HY21 INTERIM RESULTS 3-YEAR PERFORMANCE Revenue A$M for 6 month period Basic EPS A$M for 6 month period EBITDAF A$M for 6 month period Net Assets A$M Tilt Renewables HY21 Interim Results 16
Slide 17: EBITDAF comparison to prior half year
HY21 INTERIM RESULTS EBITDAF COMPARISON TO PRIOR HALF YEAR Excluding SWF2, HY21 EBITDAF was A$3M Group EBITDAF bridge – HY20 to HY21 lower than HY20 due to: A$M • Uplift from DDWF ramp-up ~A$12M 71.4 (36.7) was below expectation due to extended commissioning process. • Lower Australian revenue was l
Slide 18: Treasury – gearing at the low point, positioned for growth
HY21 INTERIM RESULTS TREASURY– GEARING AT THE LOW POINT, POSITIONED FOR GROWTH Debt maturity profile A$M – bullet refinancings only Debt facilities Outstanding at Amortisation Interest Expiry 30 Sep 2020 (excludes ongoing principal amortisation) Tararua EKF NZ$8M Flat 6 monthly P&L Jul 21 (corporate
Slide 19: Capital management – liquidity remains strong to support growth
HY21 INTERIM RESULTS CAPITAL MANAGEMENT– LIQUIDITY REMAINS STRONG TO SUPPORT GROWTH • Period end cash and investments position of Cashflow Operational Capital Mgmt Growth movement A$296M (A$M) 679 (2) (13) (258) • HY21 operating cash flow was negligible (slightly negative) with cash conversion 229 l
Slide 20: Outlook for remainder of FY2021
HY21 INTERIM RESULTS OUTLOOK FOR REMAINDER OF FY2021 Earnings driver Second half FY2021 Outlook Production • Dundonnell production ramp-up to accelerate when 226MW hold point is achieved. Once fully commissioned, Dundonnell is forecast to contribute ~A$50M EBITDAF and ~A$25M free cashflow after debt
Slide 21: Questions & Answers
QUESTIONS & ANSWERS Tilt Renewables HY21 Interim Results 21
Slide 22: Financial Statements
HY21 INTERIM RESULTS FINANCIAL STATEMENTS All figures in A$ millions Summarised Income Statement HY21 HY20 Summary Balance Sheet 30-Sep-20 31-Mar-20 Electricity revenue 55.3 103.1 (46%) Cash 57.7 228.8 (171.1) Other operating revenue 0.6 0.3 104% Financial assets 238.5 450.0 (211.5) Operating re
Slide 23: Notes on Financial Information
HY21 INTERIM RESULTS NOTES ON FINANCIAL INFORMATION Notes on currency conventions 1. All financial information in this publication is presented in Australian dollars unless otherwise specified. Notes on non-GAAP Measures 2. EBITDAF is a non GAAP financial measure but is commonly used within the ener
Slide 24: Tilt Renewables Asset Portfolio
HY21 INTERIM RESULTS TILT RENEWABLES ASSET PORTFOLIO Asset Phase Installed Location Commissioned HY21 HY21 Capacity HY21 Offtake Offtake MW GWh Factor Availability (Energy) (LGCs) Snowtown 1 Operational 101 SA 2008 151.0 34% 97.3% Merchant + near-term hedges Merchant + forward sales Salt Creek Opera
Slide 25: Disclaimer
HY21 INTERIM RESULTS DISCLAIMER Disclaimer This presentation is issued by Tilt Renewables Limited. While all reasonable care has been taken in the preparation of this presentation, Tilt Renewables Limited and its related entities, directors, officers and employees (collectively “Tilt Renewables”) do