Alternus Energy Group PLC. · OTC:ALTNF
Alternus Energy — Q3 2022 Earnings Presentation
23 slides from Alternus Energy's earnings presentation, Dec 5, 2022
Slide 1: Q3 '22 Presentation
Q3 ‘22 PRESENTATION 5 December 2022
Slide 2: Caution Forward Looking Statements
Q3 ‘22 Presentation 21 Caution Forward Looking Statements Some of the statements contained in this document, including information incorporated by reference, discuss future expectations, plans or prospects, or state other forward looking information Words such as “intends”, “believes”, "expects," "a
Slide 3: Agenda and Today's Presenters
Q3 ‘22 Presentation AGENDA AND TODAYS PRESENTERS 3 Vincent Browne Joseph Duey Agenda 1 Quarterly highlights 2 Financial results 3 Summary CHAIRMAN & CEO CFO 3
Slide 4: Alternus develops, installs & operates utility scale solar parks
Q3 ‘22 Presentation 4 Alternus develops, installs & operates utility scale solar parks across Europe and the US... …as long-term owners Mission is to provide 24/7 Clean Energy to power grids to fully replace fossil fuels Alternus owned 65 MWp Park, Witnica, Poland
Slide 5: Q3 2022 – Continued Strong Growth in Key Metrics
Q3 ‘22 Presentation 3 Q3 2022 – CONTINUED STRONG GROWTH IN KEY METRICS REVENUES EBITDA ENERGY PRODUCED EUR 11.2m EUR 5.0m 64 GWH 7.1m in Q3 2021 4.9m in Q3 2021 30 GWH in Q3 2021 ARR’s OWNED ASSETS OPERATING ASSETS EUR ~30m 817 MW 168 MW ~16m in Q3 2021 423 MW in Q3 2021 130 MW in Q3 2021 • Complete
Slide 6: Record Quarterly Revenues Booked in Q3 '22
RECORD QUARTERLY REVENUES BOOKED IN Q3 ‘22 Q3 ‘22 Presentation 63 Strong Revenue1 Growth YoY … ...driven largely by successful growth in (€ millions) operating assets YoY … (Operating MW owned) 7.0x 5.8x 11.2 168 168 10.6 154 144 1.6x 130 89 89 7.6 Germany 7.1 Italy 89 79 6.4 Netherlands 65 Romania
Slide 7: Recently Announced Combination with Clean Earth Acquisitions (CLIN)
ALTERNUS RECENTLY ANNOUNCED COMBINATION Q3 ‘22 Presentation 73 WITH NASDAQ LISTED CLEAN EARTH ACQUISITIONS (CLIN) Targeting to complete in Q1’23 • Current shareholders in OSE:ALT remain listed in Oslo • OSE: ALT becomes the majority shareholder of CLIN post merger • Shares of each will trade separat
Slide 8: Robust Project Financial Evaluation Process
ROBUST PROJECT FINANCIAL EVALUATION PROCESS ENSURES ALL Q3 ‘22 Presentation 88 PROJECTS ARE PROFITABLE OVER THEIR FULL LIFE CYCLE Projects are ranked ‘early and continually’ in order to select only those with the ‘lowest risk & highest return’. Investment Metric: Levelized Cost of Electricity (LCOE)
Slide 9: Current Development Projects Represent Unlocked Equity Value
Q3 ‘22 Presentation 97 CURRENT DEVELOPMENT PROJECTS REPRESENT UNLOCKED EQUITY VALUE …expected to generate significant equity value when maturing through the Development portfolio (MW)… various project stages ($ millions) Estimate of MW that may not be determined viable (industry average) Approx. 40%
Slide 10: Q3 Continues Alternus Positive Environmental Impact
Q3 ‘22 Presentation 1 Q3 CONTINUES ALTERNUS POSTIVE ENVIRONMENTAL IMPACT 10 10 63,987 MWh of clean energy produced 35,196,480 kilograms equivalent of carbon dioxide avoidance Equivalent to the carbon sequestered by more than 1.3 million trees annually 15,235 homes powered annually Calculation data ▪
Slide 11: Agenda – Financial results
AGENDA Q3 ‘22 Presentation 1 Quarterly highlights 2 Financial results 3 Summary
Slide 12: Continued Execution – All Key Metrics Increase YoY
CONTINUED EXECUTION – ALL KEY METRICS INCREASE YoY Q3 ‘22 Presentation 11 12 Power Generation Revenue EBITDA YTD Power Generation (GWh) (EURm) (EURm) up 10% on 2022 targets (GWh) 3.1x +58% +10% 63.9 11.2 70% 45% 165.9 150.9 7.1 32.3 5.0 4.9 Q3’21 Q3 ’22 Q3 21 Q3 22 Q3 21 Q3 22 Actual Engineering Est
Slide 13: Consolidated Income Statement
Q3 ‘22 Presentation 137 CONSOLIDATED INCOME STATEMENT Euro (millions) Q1’21 Q2’21 Q3’21 Q4’21 FY’21 Q1’22 Q2’22 Q3'22 Q3’22 YTD Revenue 0.7 5.2 7.1 7.5 20.5 6.4 10.6 11.2 28.2 Cost of goods 0.1 1.4 1.5 2.0 5.0 2.2 2.2 3.9 8.3 sold Gross profit 0.6 3.8 5.6 5.5 15.5 4.2 8.4 7.3 19.9 • The net revenue
Slide 14: Balance Sheet Has Grown YoY
Q3 ‘22 Presentation 13 14 BALANCE SHEET HAS GROWN YoY Consolidated Balance Sheet Q3’21 FY 2021 Q3’22 Consolidated financial position (EUR million) Investment in Energy properties 148.8 171.9 188.2 Cash & Cash equivalents 19.7 23.6 18.6 Other Current Assets 13.5 17.2 36.71 September 30, 2021 Septembe
Slide 15: YTD Cash Flow Movements
Q3 ‘22 Presentation YTD CASH FLOW MOVEMENTS 15 Operating activities Financing activity Investing activity • Cash flow from operations of • Bond tap issue of 10.0M • 11.0M acquisition of 11MW 6M, after 7.6M of cash interest • Project investment of 6.8M of parks in Poland payments • Rotterdam project
Slide 16: Agenda – Summary
AGENDA Q3 ‘22 Presentation 1 Quarterly highlights 2 Financial results 3 Summary
Slide 17: Q3 2022 – Continued Strong Growth in Key Metrics
Q3 ‘22 Presentation 3 Q3 2022 – CONTINUED STRONG GROWTH IN KEY METRICS REVENUES EBITDA ENERGY PRODUCED EUR 11.2m EUR 5.0m 64 GWH 7.1m in Q3 2021 4.9m in Q3 2021 30 GWH in Q3 2021 ARR’s OWNED ASSETS OPERATING ASSETS EUR ~30m 817 MW 168 MW ~16m in Q3 2021 423 MW in Q3 2021 130 MW in Q3 2021
Slide 18: Appendix
Q3 ‘22 Presentation APPENDIX
Slide 19: Unprecedented Market Forces Create a Generational Opportunity
Q3 ‘22 Presentation UNPRECEDENTED MARKET FORCES CREATE A GENERATIONAL OPPORTUNITY 19 August 2022, The United The Russia-Ukraine war States passed the Inflation has shined a spotlight on Reduction Act of 2022 (IRA), Europe's dependency on which provides $369 Russian energy whilst billion for climate
Slide 20: Alternus Operates Across All Segments of the Value Chain
ALTERNUS OPERATES ACROSS ALL SEGMENTS OF THE VALUE CHAIN Q3 ‘22 Presentation 20 - LOCKS IN MORE VALUE PROJECT DEVELOPMENT (“Project Rights”) INSTALLATI0N PHASE (“EPC”) OPERATION PHASE (“O&M”) Early Mid Late Construction & Commissioning Early operations Long-term Development Development Development P
Slide 21: Solis Bondco Portfolio – Offtaker Overview
SOLIS BONDCO PORTFOLIO – OFFTAKER OVERVIEW Q3 ‘22 Presentation 21 Italy Romania Netherlands Poland • Italian government backed Feed-in-Tariff • Romanian government issued Green • SDE + subsidy scheme managed by the • Corporate PPA with Gorażdże Cement (FiT) program processed by the GSE Certificates
Slide 22: Consolidated Balance Sheet
Q3 ‘22 Presentation 227 CONSOLIDATED BALANCE SHEET Euros (millions) Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Investment in energy assets 71.4 106.9 148.8 171.9 179.4 191.1 188.2 Other current assets 3.3 7.9 13.5 17.2 21.4 26.7 36.71 Cash & cash Equivalents 94.4 58.7 19.7 23.6 16.3 18.6 18.6 Total A
Slide 23: Consolidated Cash Flow
Q3 ‘22 Presentation 237 CONSOLIDATED CASH FLOW EURm Q1’21 Q2’21 Q3’21 Q4’21 FY’21 Q1’22 Q2’22 Q3’22 Q3’22 - YTD Profit/(loss) after tax (0.2) 10.6 0.3 (2.0) 8.66 (4.6) 0.0 (1.5) (6.1) Net cash flows generated/(used in) (2.7) 1.4 (0.8) (6.3) (8.5) (4.2) 6.7 3.5 6.0 from operating activities Net cash
Alternus Energy Group — Q3 2022 Earnings Presentation on 6ix