Alternus Energy Group PLC. · OTC:ALTNF

Alternus Energy — Q2 2021 Earnings Presentation

23 slides from Alternus Energy's earnings presentation, Aug 17, 2021

  1. Slide 1: Second Quarter 2021

    SECOND QUARTER 2021 17 th AUGUST 2021

  2. Slide 2: Caution Forward Looking Statements

    Q2’2021 Financial Presentation 1 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”, "ex

  3. Slide 3: Agenda and Today's Presenters

    2 AGENDA AND TODAYS PRESENTERS Q2’2021 Financial Presentation Vincent Browne Joseph Duey CEO & Chairman CFO § Vincent will present: § Joe will present: - Key Metrics - Financial Performance - Business Update - Market Outlook 3

  4. Slide 4: Q2'2021 – Strong Growth in All Key Metrics

    3 Q2’2021 – STRONG GROWTH IN ALL KEY METRICS Q2’2021 Financial Presentation REVENUES EBITDA NET INCOME EUR 5.2m EUR 2.0m EUR 10.6m 1 2.5 times 4.0 times EUR 0.9m in Q2 2020 vs. Q2 2020 vs. Q2 2020 ARR’s OWNED ASSETS CONTRACTED ASSETS EUR 16.5m 423 MW 1.4 GW 3.0 times 14 times Pipeline 563 MW vs. 202

  5. Slide 5: Current Portfolio of Diversified Solar PV Assets – August 2021

    4 CURRENT PORTFOLIO OF DIVERSIFIED SOLAR PV ASSETS – AUGUST 2021 Q2’2021 Financial Presentation 1 130 MW operational1 – 342 MW in development / construction2 Operational Development / Construction 342 65 472 65 1 130 12 10 42 Romania Italy Netherlands Germany Owned Poland 1 Asset in Owned Total port

  6. Slide 6: Typical Solar Project Life Cycle - Alternus Positioning

    Q2’2021 Financial Presentation 5 TYPICAL SOLAR PROJECT LIFE CYCLE - ALTERNUS POSITIONING PROJECT DEVELOPMENT (“Project Rights”) CONSTRUCTION PHASE (“EPC”) OPERATION PHASE (“O&M”) Early Mid Late Construction & Commissioning Early operations Long-term Development Development Development Phase Year 1-2

  7. Slide 7: Growing Contracted Assets and Pipeline Underpin Future Growth

    6 GROWING CONTRACTED ASSETS AND PIPELINE UNDERPIN FUTURE GROWTH Q2’2021 Financial Presentation Extensive third-party expert analysis of technical, regulatory and profitability before acquiring new projects 24 Owned - Producing Contracted Assets YE 2020 279 500 833 Owned - Backlog Pipeline 30 1 Mar-2

  8. Slide 8: Owned and Contracted Assets at Various Stages of Cycle

    OWNED AND CONTRACTED ASSETS AT VARIOUS STAGES OF CYCLE Q2’2021 Financial Presentation 7 TO BALANCE RISK, PROJECT RETURNS AND CAPITAL NEEDS Contracted Assets and Owned Backlog projects all expected to be operational by end of 2023 MWp Jun-21 130 293 1,424 562 2,409 Producing 130 277 147 552 In Constr

  9. Slide 9: Owned Assets Increased Over Times YoY

    8 OWNED ASSETS INCREASED OVER 8 TIMES YoY Q2’2021 Financial Presentation Total Owned Assets (MWp) Diversified Portfolio (MWp) 8.5x 423 Poland 130 15% 18 Germany 1% Italy 7% 149 275 423 130 Romania 10% MW 44 44 67% 25 26 Netherlands 5 4 4 14 14 15 Jun-20 Dec-20 Mar-21 Jun-21 Producing Construction De

  10. Slide 10: Contracted Assets Grew by 1.3 GW YoY

    9 CONTRACTED ASSETS GREW BY 1.3 GW YoY Q2’2021 Financial Presentation Total Contracted Assets (MWp) Diversified Portfolio (MWp) +1.324 1.411 1.424 Italy 27 18% 277 Greece 288 29% 383 1,424 15% Poland 1.096 MW 279 109 764 100 8% 170 Ireland 29% Jun-20 Dec-20 Mar-21 Jun-21 Spain Producing Construction

  11. Slide 11: Sustainability Highlights – First Half of 2021

    SUSTAINABILITY HIGHLIGHTS – FIRST HALF OF 2021 Q2’2021 Financial Presentation 10 Equivalent to the carbon sequestered by 457,695 trees grown for 10 years Equivalent to CO2 emissions from 2.7 million gallons of diesel consumed Equivalent to removing 6,020 fossil fuel-based passenger vehicles from the

  12. Slide 12: Financial Review

    Q2’2021 Financial Presentation FINANCIAL REVIEW

  13. Slide 13: Power Production Increased 97% in First Half of 2021 from 2020

    Q2’2021 Financial Presentation 11 POWER PRODUCTION INCREASED 97% IN FIRST HALF OF 2021 FROM 2020 Power Production (GWh) Power Production Mix H1 2021 Comments 30.3 18% 2% 30.3 18.0 59% GWh 21% 15.4 Italy Germany 7.2 Netherlands Romania 6.4 5.3 4.2 3.3 • 97% YoY increase in power production 0.7 0.6 •

  14. Slide 14: Strong Growth in Revenues and EBITDA

    STRONG GROWTH IN REVENUES AND EBITDA Q2’2021 Financial Presentation 12 Q2 2021– Revenues and EBITDA (EUR 000’s) First Half 2021 - Revenues and EBITDA (EUR 000’s) 2020 2021 2020 2021 +247% +181% 5.2 +400% 5.9 2.0 2.1 2.1 1.5 0.4 0.0 Revenues EBITDA Revenues EBITDA • Increase in revenues driven by add

  15. Slide 15: Improved Balance Sheet Provides Stronger Financial Position

    IMPROVED BALANCE SHEET PROVIDES STRONGER FINANCIAL POSITION Q2’2021 Financial Presentation 13 As of June 30, 2021 Consolidated financial position (EUR million) Consolidated Project Corporate Balance Sheet Level Level Group Investment in Energy December 31, 2020 June 30, 2021 106.8 - 106.8 properties

  16. Slide 16: Cash Flow Summary for Six Months Ended June 30, 2021

    CASH FLOW SUMMARY FOR SIX MONTHS ENDED JUNE 30, 2021 Q2’2021 Financial Presentation 14 As of June 30, 2021 EUR Consolidated Cash Flow (m) § Net cash flow from operations was EUR (1.4)M, this included EUR 7.6M of cash paid for interest. Net Income / (loss) after tax 10.3 Non-cash items and working ca

  17. Slide 17: Explanation of Bargain Purchase Recorded in Net Income for H1 2021

    EXPLANATION OF BARGAIN PURCHASE RECORDED IN NET INCOME FOR H1 2021 Q2’2021 Financial Presentation 15 Total Total Italy (EUR million) Cost of Acquisition Romania Acquisitions Acquisitions Contracted Purchase Price 45,926 8,214 69.3 Net Working Capital after adjustments 2,668 498 9.6 59.7 Total Acquis

  18. Slide 18: Over 300% Increase in Annual Recurring Revenues

    OVER 300% INCREASE IN ANNUAL RECURRING REVENUES Q2’2021 Financial Presentation 16 Annual Recurring Revenues (‘ARR’) (EUR million) +308% 3.6 ~8.5 years weighted 19.9 average 16.3 contract term remaining 4.0 4.0 As at As at As at Pending Total ARR Jun-20 Dec-21 Jun-21 Polish operating 63 MWp 65 MWp pr

  19. Slide 19: 2021 Booked Revenues Bridge to ARR

    Q2’2021 Financial Presentation 17 2021 BOOKED REVENUES BRIDGE TO ‘ARR’ (EUR million) 5.9 8.5 19.9 14.0 5.5 Actual Revenues Exp. Revenues Exp. Booked Adj. for timing Exp. EOY ARR’s H1 2021 H2 2021 Revenues 2021 of acquisitions for operational projects § 15MW of operational projects in Romania closed

  20. Slide 20: Market & Outlook

    Q2’2021 Financial Presentation MARKET & OUTLOOK

  21. Slide 21: European Solar PV Capacity Is Set to Grow ~40% Over the Next Three Years

    EUROPEAN SOLAR PV CAPACITY IS SET TO GROW ~40% OVER THE NEXT THREE YEARS Q2’2021 Financial Presentation 18 Installed solar capacity in Europe (GW) Commentary § European solar power capacity has Small scale Utility scale increased rapidly in the last decade, +12% 200 growing 10% p.a. since 2012 180 §

  22. Slide 22: Company Ambition of Over 3.5 GW in Operation by 2025

    COMPANY AMBITION OF OVER 3.5 GW IN OPERATION BY 2025 Q2’2021 Financial Presentation 19 Growth driven by current owned backlog and contracted assets ~3 564 ~1 100 Owned backlog + 2025 operational portfolio ~2 464 target increased by 75% to contracted assets 3.5 GWp ~900 ~1 564 Indicates ~EUR 110m ARR

  23. Slide 23: The Sun Delivers More Energy to Earth in an Hour Than Is Used Worldwide

    Q2’2021 Financial Presentation 20 THE SUN DELIVERS MORE ENERGY TO EARTH IN AN HOUR THAN IS USED WORLDWIDE IN A YEAR MOST OF THIS ENERGY IS LOST ALTERNUS HAS MADE ITS MISSION TO MAKE THIS ENERGY WIDELY AVAILABLE

Alternus Energy Group — Q2 2021 Earnings Presentation on 6ix