Slide 1: Delivering on strategic milestones
Q4 & FY 2023 Delivering on strategic milestones CEO, Terje Pilskog & CFO, Hans Jakob Hegge
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: 2023: Delivering on strategy
2023: Delivering on strategy Power Production: EBITDA increase Development & Construction: Strong margins NOK 3.2 billion NOK 8.2 billion Power Production EBITDA D&C Revenues with 12% gross margin Optimise portfolio: Increased funding Growth: Secured projects for 2024 NOK 2.7 billion NOK 350 million
Slide 4: COP28
COP28 A global pledge to triple renewable energy capacity by 2030 4
Slide 5: Price drops pave the way for attractive growth
Price drops pave the way for attractive growth Solar PV module prices (USD/W) 2024 & 2025 Est. solar PV market balance (GW) 0.50 Polysilicon Wafer Module 0.45 2,500 Ingot Cell PV installations 0.40 2,000 • Fundamentals for renewables 0.35 1,500 continue to strengthen 0.30 -45% 0.25 1,000 0.20 o PV m
Slide 6: Q4 highlights
Q4 highlights • Proportionate EBITDA increased to NOK 808 million • D&C margin of 15% • Finalised construction of Kenhardt – NOK 40 million EBITDA recognised in Q4 • Initial works started for 273 MW in South Africa and 60 MW in Botswana – EPC revenues of NOK 2.5 billion secured • Awarded first batte
Slide 7: Solid EBITDA contribution from solar
Power Production Solid EBITDA contribution from solar Prop. power production, GWh Prop. power production EBITDA, NOK million GWh -17% MNOK -3% • Close to 100% plant availability 1,000 979 850 821 793 750 800 281 811 179 • 22 % EBITDA increase for solar due 307 161 650 to Ukraine, Kenhardt and 188 55
Slide 8: Philippines - Increased contract volumes, lower prices
Philippines - Q4 results impacted by El Nino Increased contract volumes, lower prices Net Revenue, NOK million Power Production, GWh Spot & Contract margin Production volumes 361 Ancillary Services Contract volumes • Net revenue of 231 million (361) and 281 75 EBITDA of NOK 179 million (307) 231 204
Slide 9: Finalising our largest construction programme in history
Development & Construction Finalising our largest construction programme in history NOK 0.5bn 15% NOK 2.5bn1 D&C revenues gross EPC margin Secured Q4’23 Q4’23 EPC contract value Kenhardt, South Africa Mendubim, Brazil Sukkur, Pakistan 540 MW solar + 225MW battery storage 531 MW solar 150 MW solar Fi
Slide 10: Backlog & pipeline: Increased to 12 GW
Backlog & pipeline Increased to 12 GW - adding attractive solar Technology distribution Share in focus markets 12.0 GW 12.0 GW • Continued high-grading of 11.2 GW 2% 1% 11.2 GW pipeline 8% 3% 13% 11% • Technology 13% • Location 6% 11.2 GW 10% • Maturity 19% • Value creation 20% 89% 92% • Increasing
Slide 11: Financial review
Financial review Hans Jakob Hegge, CFO
Slide 12: Q4'23 Proportionate financials: NOK 1.7 billion of revenues
Q4’23 Proportionate financials NOK 1.7 billion of revenues Proportionate revenues, NOK million Proportionate EBITDA, NOK million 1,800 1,765 1,000 1,678 • NOK 1 billion revenues 1,600 786 808 from power production 627 800 7 1,400 532 1,200 • NOK 808 million total EBITDA 1,000 600 (+3%) 800 400 821 7
Slide 13: FY'23 Proportionate financials: All-time high revenues
FY’23 Proportionate financials All-time high revenues of 12.7 billion in 2023 Proportionate revenues, NOK million Proportionate EBITDA, NOK million 13,000 12,714 4,000 3,845 12,000 3,600 11,000 672 • NOK 8.2 billion D&C revenues 3,200 10,000 2,550 9,000 8,177 2,800 • D&C gross margin of 12% 8,000 2,
Slide 14: Q4'23 Consolidated financials: 96% EBITDA increase
Q4’23 Consolidated financials 96% EBITDA increase to NOK 1.3 billion Consolidated revenues, NOK million Consolidated EBITDA, NOK million • NOK 1.6 billion total revenues 1,800 1,400 1,348 (+64%) 1,624 1,600 1,200 1,400 • NOK 906 million in Power sales 1,000 (+ 17%) driven by Ukraine 1,200 906 993 80
Slide 15: FY'23 Consolidated financials: 39% EBITDA increase
FY’23 Consolidated financials 39% EBITDA increase to NOK 3.6 billion Consolidated revenues, NOK million Consolidated EBITDA, NOK million 5,000 3,600 3,567 4,721 • NOK 4.7 billion total revenues 4,500 3,200 (+26%) 4,000 3,751 2,800 2,555 3,500 2,400 • NOK 3.4 billion Power sales 3,000 3,399 (+13%) 2,
Slide 16: Net interest-bearing debt
Proportionate Net interest-bearing debt NOK billion • Non-recourse project debt 20.8 20.4 0.8 reduced by 1.1 billion 4.2 • Net corporate debt increased by 12.1 1.6 billion due to investments and working capital movements 9.8 • Agreed refinancing terms for USD 150 million Green Term Loan 8.0 6.4 Q3’2
Slide 17: Liquidity buffer of NOK 2.1bn going into 2024
Liquidity buffer of NOK 2.1bn going into 2024 Q4’23 movements of the Group’s free cash, NOK million 11 26 -187 418 -1,107 1,171 2,148 1,961 -659 713 977 -285 86 End Q3’23 Distributions CF to CF to Equity CF to Equity WC/other Cash flow from PowerChina Proceeds from CF from End Q4’23 Undrawn RCF Tota
Slide 18: Outlook
Outlook Power Production • FY’24 Power production estimate: 4,200-4,600 GWh • FY’24 EBITDA estimate: NOK 3,400-3,700 • 1Q’24 Power production estimate: 800-900 GWh • 1Q’24 Philippines EBITDA estimate: NOK 10-70 million Total D&C remaining contract value • Remaining contract value: NOK 2.51 billion •
Slide 19: Our strategy: Grow Renewables, Optimise Portfolio
Our strategy Develop, build, own and operate renewable energy in emerging markets Grow Optimise Renewables Portfolio 500-750 million NOK annually in gross equity investments towards 2027 More capital recycling to self fund growth and consolidate the portfolio Focus on PV, wind and BESS due to Capita
Slide 20: Scatec - improving our future
Scate improving our future
Slide 21: Overview of change in proportionate net debt during the quarter
Overview of change in proportionate net debt during the quarter Project and Group level net interest bearing debt NOK billion Q3’23 Repayments New Disposal Change in Currency Q4’23 debt cash effects Project level -14.0 0.6 -0.5 0.4 0.3 0.4 -12.8 Group level* -6.4 -0.7 -0.9 0.1 -8.0 Total -20.4 0.6 -
Slide 22: Our asset portfolio
Our asset portfolio Plants in operation Capacity Economic Under construction Capacity Economic Project pipeline Capacity Share in % MW interest MW interest MW South Africa 730 49% Mendubim, Brazil 531 33% Solar 6,571 59% Philippines 673 50% Sukkur, Pakistan 150 75% Wind 2,280 21% Laos 525 20% Releas