Aker Horizons ASA · SWB:7QF
Aker Horizons ASA — Q2 2023 Earnings Presentation
41 slides from Aker Horizons ASA's earnings presentation, Jul 13, 2023
Slide 1: Second-quarter results 2023
Second-quarter results 2023 13 July 2023
Slide 2: Main developments
Main developments Major milestones for Aker Carbon Capture in the quarter • Award of contract for five Just Catch™ 100 units to Ørsted for a total value exceeding EUR 200 million • Award of first major study in North America, two studies for Just Catch OffshoreTM and study for Söderenergi in Sweden
Slide 3: Aker Horizons accelerating Net Zero
Aker Horizons accelerating Net Zero IEA Net Zero 2050 pathway Gt CO2 H2 2020 Electrification Wind and solar Hydrogen CCUS Energy efficiency Bioenergy Behavior, Other fuel shifts 2050 avoided demand 3
Slide 4: Aker Horizons focusing on three Net-Zero levers
Aker Horizons focusing on three Net-Zero levers Renewable energy Carbon capture Hydrogen hubs Decarbonize cement, gas-, biomass- and Decarbonize steel, transportation, fertilizer Backbone of decarbonization waste-to-energy and blue hydrogen and other industrial processes Mainstream Renewable Power A
Slide 5: Portfolio overview
Portfolio overview
Slide 6: Aker Carbon Capture
Aker Carbon Capture Transforming the carbon capture industry through standardization • Pure play carbon capture company with seven carbon capture units under delivery • Validated certified market-leading proprietary technology with over 60,000 operative hours Key projects Brevik CCS: the world’s fir
Slide 7: Mainstream Renewable Power
Mainstream Renewable Power Building a Renewable Energy Major – driving the energy transition • Industry-leading wind capabilities across onshore, bottom-fixed and floating offshore • Market leader in Chile and South Africa renewables, and Vietnam offshore wind Key projects1 SN II 0.5 GW ScotWind Off
Slide 8: Aker Horizons Asset Development
Aker Horizons Asset Development Develop, build, own and operate hydrogen and derivates assets across hard-to-abate sectors • Holistic and integrated value chain approach to accelerate Net Zero • Large-scale projects enabled by strategic and financial partnerships Key projects Norway Key projects res
Slide 9: SuperNode
NOT UPDATED SuperNode Developing cable technology to enable the renewable electricity age • Superconductor technology to conduct electricity with no resistance • Proprietary cryostat designs, materials and heat management techniques Aker Horizons’ view ▪ The combination of significantly increasing o
Slide 10: Aker Carbon Capture
Aker Carbon Capture
Slide 11: Aker Carbon Capture
Aker Carbon Capture Key awards: • Five Just Catch™ units for Ørsted in Denmark • Study for Söderenergi biomass power plant • First major study in North America • Two studies for Just Catch OffshoreTM Major projects progressing: • Ørsted CCS: Key purchase orders placed • Brevik CCS: Installation of e
Slide 12: Ørsted Kalundborg CCS
Ørsted Kalundborg CCS • Aker Carbon Capture awarded delivery of five modular and configurable Just Catch™ 100 units to Ørsted • Three Just Catch™ units to the wood chip-fired Asnæs Power Station • Two Just Catch™ units to the straw-fired Avedøre Power Station • Materialization of the Ørsted, Aker Ca
Slide 13: Making headway in new markets and industries
Making headway in new markets and industries Image: Söderenergi Strategic US study covering Söderenergi Igelstaverket Study for European waste-to- Two Just Catch Offshore biogenic emissions Sweden’s second largest energy player studies Study for two Just Catch™ 100 biomass combined heat and Explorin
Slide 14: Recent FIDs for CCUS set to push 2023 spending to a new record
Recent FIDs for CCUS set to push 2023 spending to a new record CCUS investments led by US and Europe Announced CCUS project spend, USD billion (2022) 40 35 30 25 USD billion 20 15 10 5 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 North America Europe China Asia Pacific Middle East Other
Slide 15: Asset Development
Asset Development
Slide 16: Aker Horizons Asset Development
WIP Aker Horizons Asset Development Developing hydrogen-based projects Highlights • Rjukan Green Hydrogen awarded up to NOK 85 million in grants from Innovation Norway plus up to NOK 50 million in green loan, demonstrating solid maturity and competitiveness of project • Signed 10-year PPA with Statk
Slide 17: Awarded up to NOK 135 million in financing from Innovation Norway
Awarded up to NOK 135 million in financing from Innovation Norway Green Hydrogen to decarbonize Eastern Norway RJUKAN GREEN HYDROGEN PROJECT DATA CAPACITY: 20-40 MW1 PLANNED FID: 2023 EQUITY PARTNERS: 100% Aker Horizons • Rjukan project awarded up to NOK 85 million in grants from Innovation Norway a
Slide 18: Entered Joint Development Agreement with Industrial partner
Entered Joint Development Agreement with Industrial partner Large-scale ammonia production (part of Narvik green industrial hub) Statnett 420 kV Transformer Hydrogen and ammonia production Grid connection Ammonia storage & jetty NARVIK GREEN AMMONIA PROJECT DATA CAPACITY: Up to 600 MW PLANNED FID: 2
Slide 19: Developments in key projects from the wider portfolio
Developments in key projects from the wider portfolio BERLEVÅG AUKRA CHILE NETHERLANDS (H2 GW) TUNISIA GREEN AMMONIA TO LARGE-SCALE BLUE LARGE-SCALE GREEN LARGE-SCALE BLUE LARGE-SCALE GREEN DECARBONIZE THE ARCTIC HYDROGEN AMMONIA HYDROGEN HYDROGEN PROJECT DATA PRODUCT: Green ammonia PRODUCT: Blue hy
Slide 20: Continued tailwinds for hydrogen as a key decarbonization tool
Continued tailwinds for hydrogen as a key decarbonization tool Policies underway will help kick-start replacement of grey Hydrogen demand in EU (Mt)1 hydrogen in Europe 20 • Revised EU ETS entered into law in June: Confirms EU target of 55% Target EU production 10 reduction in CO2 emissions by 2030
Slide 21: Mainstream Renewable Power
Mainstream Renewable Power
Slide 22: Mainstream Renewable Power
Mainstream Renewable Power Leading pure-play renewable energy company Highlights • 1.1 GW fully operational across Andes platform in Chile • Market challenges in Chile continue with mitigation strategy progressing • In constructive dialogue with lenders on restructuring of the Andes portfolio • Impa
Slide 23: Chile update
Chile update Regulator and government engagement Lender dialogue • Actively pursuing mitigation strategy by addressing market • Following the appointment of a financial advisor, a constructive inefficiencies with the regulator and government through dialogue continues with lenders on the long-term c
Slide 24: Key portfolio updates
Key portfolio updates Onshore wind and solar • 1.1 GW fully operational across Andes platform • Two Andes projects (0.3 GW) in construction • South African R5 projects: Focused on bringing to market in staged manner • ~100 MW Corporate PPA signed with industrial off-taker, progressing well towards f
Slide 25: Key portfolio updates
Key portfolio updates Offshore wind • Norway’s first area allocation round includes bottom-fixed at Sørlige Nordsjø II (1,500MW) and floating at Utsira Nord (3x500MW), working towards application deadlines of September 1 • Developer led market supported by government’s target to double energy produc
Slide 26: 20.8 GW net global pipeline
20.8 GW net1 global pipeline Global portfolio of 31 GW net Development Construction Operational Pre-Development 10+ GW 19.4 GW 0.3 GW 1.1 GW Change since +4.0 GW -0.5 GW +0.4 GW Q2 2022 Additions of ScotWind and +0.5 GW in Andes Renovables projects reached COD early-stage development -0.1 GW sale of
Slide 27: Financials
Financials
Slide 28: Portfolio asset values
Portfolio asset values NOK million Net asset value1 Gross asset value distribution NOK million, 30 June 2023 NOK billion, 30 June 2023 AH % AH ownership value Aker Carbon Capture 43.3% 3,671 Cash Aker Carbon Capture Listed assets 3,671 21% 21% Mainstream2 58.4% 7,728 Asset Development 100.0% 2,071 O
Slide 29: Aker Horizons and holding companies per Q2 2023
Aker Horizons and holding companies per Q2 2023 NOK million Income statement Q2 2023 Balance sheet Q2 2023 Cash flow statement Q2 2023 Operating revenue 26 Interest-bearing assets 28 Cash flow from operating activities (64) Operating expenses (51) Investments1 13,634 EBITDA (25) Current operating as
Slide 30: External financing
External financing NOK million Overview of financing facilities Debt maturities NOK million incl. PIK as of 30 June 2023 8,352 Total facility RCF Debt Key terms incl. PIK Green bond Convertible bond Subordinated 6.0% coupon per annum, with deferral NOK 2,336m Shareholder loan shareholder loan option
Slide 31: Liquidity and net interest-bearing debt
Liquidity and net interest-bearing debt NOK million Cash and undrawn RCF as of 30 June 2023 Net interest-bearing debt as of 30 June 2023 NOK million NOK million 9,435 Undrawn RCF 3,583 5,852 5,852 3,583 Interest-bearing debt 6,177 2,594 Undrawn RCF Cash Cash and undrawn RCF Debt Cash and IB receivab
Slide 32: Capital structure at Q2 2023
Capital structure at Q2 2023 Key figures Capital structure NOK billion1 NOK billion1 17.3 Unlisted assets Most recent transaction value or 13.6 book value. Includes Mainstream, Asset Development, SuperNode, Covenant LTV2 = -8% 9.4 (vs. covenant of 50%) cash and other assets Per 30 June 2023 Undrawn
Slide 33: Q&A
Q&A
Slide 34: Global pipeline of wind and solar assets
Global pipeline of wind and solar assets Pipeline reflects assets in development, construction and operational Capacity distribution by geography Offshore – Europe APAC LatAm (3.6 GW) Development 0.9 GW (3.7 GW) Total net 0.9 GW 18% 15% 4% 20.8 Europe GW Asia Pacific (0.9 GW) Development 3.6 GW 63%
Slide 35: Mainstream Project Overview
Mainstream Project Overview Asset Portfolio Country Technology Gross Capacity Economic Net Capacity P50 Production FC COD PPA Tariff PPA Volume PPA Tenor (MW) interest (MW) (GWh/y) (GWh) (years) Operational Alena Andes – Condor Chile Wind 86 100% 86 291 2019 2021 USD 43 5281 20 Rio Escondido Andes –
Slide 36: Mainstream Project Overview
Mainstream Project Overview Asset Portfolio Country Technology Gross Capacity Economic interest Net Capacity Target FC Target COD PPA Tariff 2 PPA Volume PPA Term (MW) (GWh) (years) (MW) Late stage development3 Caman 2 Andes - Copihue Chile Wind 49 100% 49 2025 2027 N/A N/A N/A Entre Rios Nazca - Hu
Slide 37: Mainstream Financial Information
Mainstream Financial Information Highlights • Mainstream’s Income Statement is reflective of the principal activities Mainstream proforma accounts1 of development, construction and operation of projects Q1 Q2 Q3 Q4 FY Q1 Q2 EURm • Market challenges remain in Chile with operators exposed to differenc
Slide 38: Aker Horizons Asset Development financial information
Aker Horizons Asset Development financial information AAD proforma accounts1 Highlights Q1 Q2 Q3 Q4 FY Q1 Q2 NOKm 2022 2022 2022 2022 • Income statement reflective of the key activities in the period: 2022 2023 2023 Revenue 3 4 - - 7 14 - o Continuing to mature the projects in the pipeline EBITDA (6
Slide 39: Sustainability integrated in all we do
Sustainability integrated in all we do Sustainability commitment across four core themes Alignment with international frameworks Planet-positive impact • Our investment thesis is grounded in a desire to be planet-positive • We commit to accelerating Net Zero commitments and decarbonization of indust
Slide 40: Disclaimer
Disclaimer This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections abo
Slide 41: To learn more about Aker Horizons visit akerhorizons.com
To learn more about Aker Horizons visit akerhorizons.com