Abu Dhabi National Energy Company · ADX:TAQA
Abu Dhabi National Energy — Investor Presentation (February 2024)
30 slides from Abu Dhabi National Energy's investor presentation, February 2024
Slide 1: Abu Dhabi National Energy Company (TAQA) Investor Presentation
Abu Dhabi National Energy Company (TAQA) Investor Presentation POWERING A THRIVING FUTURE
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Abu Dhabi National Energy Company PJSC (“TAQA” or the “Company”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The Company relies on information obtained from sources believed to b
Slide 3: Table of contents
Table of contents 1 A leading integrated utility, underpinned by strong, recurring cash flows 4 2 Recent strategic developments 11 3 Integrating ESG into how we do business 14 4 Maintaining strong financial performance 18 5 Investment thesis 21 6 Appendix 23 3
Slide 4: A leading integrated utility, underpinned by strong, recurring cash flows
A leading integrated utility, underpinned by strong, recurring cash flows POWERING A THRIVING FUTURE
Slide 5: A leading integrated utility at the heart of UAE's energy ambitions
A leading integrated utility at the heart of UAE’s energy ambitions Building a global business upon Operations spread across three Strong financial performance & 1 solid foundations in the UAE 2 business lines 3 predictable cash flow generation FY 2023 REVENUE SHARE 108 ~110,000 km $14.1bn $5.3bn mb
Slide 6: TAQA a key driver of the energy transition in Abu Dhabi System
TAQA a key driver of the energy transition in Abu Dhabi System A deliberate shift towards cleaner energy sources Planned power generation structure in Abu Dhabi system Installed generation capacity by Energy mix across EWEC type across EWEC network network Nuclear Solar Gas 90% 80% 75% 80.1% 80% 70%
Slide 7: Well-articulated strategy to become a low carbon power and water champion
Well-articulated strategy to become a low carbon power and water champion focused on optimization and growth MISSION To be a low carbon power and water champion Key 2030 targets To provide the clean power and water that governments, businesses VISION and consumers need for a sustainable and successf
Slide 8: Breakdown of TAQA's power generation capacity
Breakdown of TAQA’s power generation capacity Share of clean energy increasing in portfolio Technology mix Gross capacity (GW) Net capacity (GW) (gross capacity) Geothermal Other 39.1 0.3% Coal 4.8% 5.9% 8.7 Wind 17.4 12.2% 24.2 Clean 3.4 14.3 3.1 energy at 16.5 1.3 ~45% of Thermal 30.4 portfolio 48
Slide 9: Refreshed 2030 Power & Water Capacity Growth Targets
Refreshed 2030 Power & Water Capacity Growth Targets Significant upward revision reflecting stronger ambitions Gross generation Increasing share of capacity (GW)* Renewable Energy Conventional Revised targets follow the successful integration of Masdar’s Renewable renewable business 3X • Original ta
Slide 10: Cash flow stability entrenched in TAQA's business model
Cash flow stability entrenched in TAQA’s business model T&D GENERATION Building blocks of Maximum Allowed Revenue (MAR): • Entire domestic and international • Capacity Payment is dependent on generation fleet operates under availability (rather than off-take) RoI on Regulated long-term take or pay c
Slide 11: Recent strategic developments
Recent strategic developments
Slide 12: Regulatory Control (RC2) comes into force for 2023-2026
Regulatory Control 2 (RC2) comes into force for 2023-2026 Favorable changes for TAQA relative to RC1 Permitted revenues* Real WACC • Approved and applicable • AED 47.5 billion over 2023- from 1 Jan 2023 to 31 Dec • Revised higher to 4.9%, 2026 in aggregate for all three RC2 2026 compared to 4.6% for
Slide 13: Acquisition of Sustainable Water Solutions Holding Co. (SWS)
Acquisition of Sustainable Water Solutions Holding Co. (SWS) TAQA’s RAB to increase by ~20% upon completion • Highly accretive transaction demonstrates management’s focus on value creation in any M&A transaction • Entry into wastewater networks and treatment business through planned AED 1.7 billion
Slide 14: Integrating ESG into how we do business
Integrating ESG into how we do business
Slide 15: ESG strategy: Setting milestones enroute to 2050 net-zero target
ESG strategy: Setting milestones enroute to 2050 net-zero target Strategic pillars and ambitions GREENHOUSE GAS WATER AND OCCUPATIONAL DIVERSITY AND LOCAL COMMUNITY CORPORATE GREENHOUSE EMISSIONSGAS WATER AND EFFLUENTS OCCUPATIONAL HEALTH AND SAFETY DIVERSITY EQUAL AND OPPORTUNITY LOCAL COMMUNITY EN
Slide 16: GHG emissions: on-track for 2030 emission reduction targets
GHG emissions: on-track for 2030 emission reduction targets 2023: 13% Scope 1 & 2 emission reduction; 16% reduction in intensity based on revenue Scope 1 and 2 GHG Emissions based on Financial Control Approach (mtCO2e) Emission Factor - Revenue (tCO2e/mUS$) 64.76 62.93 62.62 0.05 0.09 2.23 0.08 57.8
Slide 17: Improvements made across several ESG dimensions
Improvements made across several ESG dimensions Health & Safety Partnerships ✓ Zero fatalities ✓ Led by TAQA, Utilities for Net Zero Alliance (UNEZA) launched at COP28, ✓ Over 60% increase in reporting of observations and near miss events alongside 30 partners including 24 global utilities and power
Slide 18: Maintaining strong financial performance
Maintaining strong financial performance
Slide 19: FY 2023 performance
FY 2023 performance Pass-through items and RC2 adjustments drive revenue growth, while O&G performance impacts EBITDA • One-off gain on recognition of ADNOC Gas investment biggest driver of bottom-line growth • Free cash flow generation remains strong, supporting growth initiatives and delivering on
Slide 20: Liquidity and debt profile
Liquidity and debt profile Balance sheet remains healthy with ample liquidity • Strong liquidity supported by the • Leverage remains well within limits required • Portfolio-wide interest rate remained successful $1.5 billion dual-tranche bond to maintain standalone investment grade stable despite ne
Slide 21: Investment thesis
Investment thesis TrNQaN
Slide 22: Key strengths of TAQA
Key strengths of TAQA 1 One of the Largest Listed Integrated Utility Companies in EMEA (Assets of USD 52.8 billion as of Dec 2023) 2 Vertically Integrated Across the Utilities Value Chain Leader in the (Exclusive rights to T&D in Abu Dhabi and a minimum of 40% in all EWEC generation projects until 2
Slide 23: Appendix
Appendix POWERING A THRIVING FUTURE
Slide 24: Appendix A: A closer look at the business lines
Appendix A: A closer look at the business lines
Slide 25: A closer look at the Business Lines: TAQA Generation
A closer look at the Business Lines TAQA Generation (excluding Masdar) National champion with a growing global footprint Spearheading TAQA’s green initiatives • Dafrah PV2 (2GW capacity) is the world’s single largest solar PV farm 25 power & water assets across the globe • 14 power & water assets in
Slide 26: Masdar: Aiming to be a global clean energy leader
Masdar: Aiming to be a global clean energy leader Masdar shareholding Green Hydrogen shareholding Joint Venture between TAQA, ADNOC & Mubadala A strategic partnership to launch a global clean energy ADNOC TAQA ADNOC powerhouse 24% 43% 24% TAQA • Abu Dhabi’s flagship clean energy company 43% • Growin
Slide 27: A closer look at the Business Lines: Transmission & Distribution
A closer look at the Business Lines Transmission & Distribution (T&D) Key utility infrastructure provider in the UAE Preparing the ground for energy transition Major player in the UAE power and water segment • Investments in energy transition readiness and associated infrastructure, incl. battery st
Slide 28: Abu Dhabi power and water sector flows
A closer look at the Business Lines Abu Dhabi power and water sector flows Material flow Abu Dhabi Department of Energy Payment flow Fuel: (formerly the Regulation and Supervision Bureau, RSB) MAR Balance (MAR less tariffs) Abu Dhabi Emirates Water & Electricity Company (EWEC) Department ADNOC Firm
Slide 29: A closer look at the Business Lines: Oil & Gas
A closer look at the Business Lines Oil & Gas Assets spread across 2 continents Reducing carbon footprint • Continued investment in projects and technologies to improve operational efficiency and Canada • Operating asset acreage with large resource potential reduce carbon intensity. • A top onshore
Slide 30: TAQA
TAQAN
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