Lgi Ltd · ASX:LGI
Lgi — Investor Day (April 2024)
23 slides from Lgi's investor day presentation, Apr 11, 2024
Slide 1: Investor Day Presentation
People engineering a clean energy, zero carbon future LGI Limited Investor Day Presentation 11 APRIL 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by LGI Limited ACN 138 085 551 (LGI or the Company) to provide summary information about the Company and its associated entities. This information derived therefrom. The Company has not carried out due diligence investigations in connection with the prepara
Slide 3: Contents
Contents 1 Business Overview 2 Strategy Update 3 Outlook & Summary
Slide 4: Business Overview
INVESTOR DAY Business Overview
Slide 5: Who is LGI?
Who is LGI? BIOGAS FLARE One of Australia’s leading vertically integrated landfill BIOGAS RECOVERY POWER GENERATION AND FCAS³ gas companies BIOGAS Founded in 2009 (as Landfill Gas POWER NATIONAL Industries Pty Ltd), LGI is an established STATION ELECTRICITY BATTERY domestic leader in the recovery of
Slide 6: Geographic Footprint
Geographic Footprint KEY Expanding network of landfill, BIOGAS FLARE generation and carbon sites¹ GENERATORS ON SITE CARBON SITES 31 BATTERY Total contracted CONTRACTED SITE UNDER ASSESSMENT sites² GLADSTONE QUNABA BUNDABERG CENTRAL BUNDABERG WEST HERVEY BAY MARYBOROUGH 08 GYMPIE SE QLD SITES GATTON
Slide 7: 1H FY24 Financial Highlights
1H FY24 Financial Highlights Six months ended 31 December 2023 Financial results¹ STATUTORY STATUTORY GROSS EBITDA OPERATING REVENUE² EBITDA NPAT MARGIN² MARGIN² CASHFLOW $15.9m $7.0m $3.1m $11.5m 44% $7.6m Down 3% Up 16% Up 25% Up 2% Steady Up 100% 1. Compared to previous corresponding period (“pcp
Slide 8: 1H FY24 Operational Highlights
1H FY24 Operational Highlights Six months ended 31 December 2023 OPERATIONAL PEOPLE & RESULTS¹ SAFETY¹ 57.1 Mm³ +3% 1 Reported lost time GAS FLOWS SAFETY injuries, >41k hours worked with 2 reportable incidents GENERATION 46.7 GWh LGI TEAM 10% Increase in total staff² 212,888 -3% ACCUs CREATED 1. Com
Slide 9: Strategy Update
INVESTOR DAY Strategy Update
Slide 10: Strategic Horizons
Strategic Horizons Enhance performance from LGI’s strategy comprises three key horizons: existing assets, while delivering against expanded pipeline Core • Develop/acquire more flaring (ACCU) projects • Develop/acquire more biogas to power projects (ACCU, LGC, $/MWh) Increase biogas • Expand existin
Slide 11: Phased Approach to Growth
Phased Approach to Growth Expanding biogas and contracted sites provides the foundation to concurrently pursue future growth initiatives Core Enhance Expand Increase biogas Strengthen premium Diversify premium resource & sites electricity offering energy asset portfolio • 5 new sites signed since IP
Slide 12: Growing Biogas Flows
Growing Biogas Flows LGI continues to "chase the GAS FLOW AND gas", ensuring maximum ACCU GROWTH practical gas flow is achieved at each site 500k 150 >35% increase in biogas flows and >20% increase in ACCU volume • Integral to LGI's strategy is the underlying growth in biogas flows 400k 120 Million
Slide 13: High Conviction Development Pipeline
High Conviction Development Pipeline Executing against LGI’s FUNDED ORGANIC PIPELINE contracted and funded TO ~47MW CAPACITY development pipeline will significantly increase in >3x installed capacity in the short- to-medium term • Projects approved, or substantially approved, and funded will provide
Slide 14: Funded Development Pipeline – Project Updates
Funded Development Pipeline – Project Updates MUGGA LANE 2.0 MUGGA LANE BATTERIES BINGO EASTERN CREEK • Canberra, ACT • Canberra, ACT • Sydney, NSW • Expanding capacity by 50% to 6 MWs • Additional 14MWs battery capacity (14MVar), • Additional 4MW power station – currently in allowing Mugga Lane to
Slide 15: Capital Expenditure
Capital Expenditure LGI’s capital requirements are reflective of its pipeline growth opportunities CAPEX AS % REVENUE 12.0 1H 2H 80% • During 1H FY24, LGI successfully completed an elevated capex program 70% 70% • Capex slated for the remainder of 10.0 FY24 includes: 60% o Mugga Lane generation unit
Slide 16: Leveraging Energy Volatility with Batteries
Leveraging Energy Volatility with Batteries LGI is well-positioned to continue to benefit from AVERAGE AEMO¹ ELECTRICITY PRICING, underlying electricity price TIME OF DAY (JAN-23 TO FEB-24) volatility, via its network 700 energy generation and battery roll-out 600 500 • Recent volatility of electric
Slide 17: Favourable Electricity Market Dynamics
Favourable Electricity Market Dynamics LGI is well-placed to benefit from strong future electricity and LGC pricing ELECTRICITY FUTURES AND OPTION ELECTRICITY FUTURES AND OPTION LGC FORWARD MID-POINT PRICING (APR-24 TO DEC-27)¹ PRICING (APR-24 TO DEC-27)¹ PRICE (CY24-CY28)² 60 140 140 50 120 120 100
Slide 18: Bunya Renewable Hybrid Project (core + enhance)
Bunya Renewable Hybrid Project (core + enhance) Hybridising LGI’s Bunya project with Bunya battery project during a battery is a valuable blueprint, final stages of construction providing validation and confidence to pursue accelerated battery roll-out across the portfolio • After two years in devel
Slide 19: DACS
DACS LGI's DACS enhances operational performance, and increases flexibility in managing electricity demand POWER NEM POWER & FCAS DEMAND & PRICE • During 1H FY24 DACS commenced DATA controlling all 8 LGI generation sites • Where previously the generator could respond in minutes, batteries allow proj
Slide 20: Outlook & Summary
INVESTOR DAY Outlook & Summary
Slide 21: Outlook
Outlook Growth and continued operational excellence FY24 PRIORITIES Continued focus Deliver key near Explore the Work on contracted Actively pursue new on Health, Safety, term projects, expansion of landfill sites to opportunities for Environment expansion of power stations on expand the gas landfil
Slide 22: LGI Value Proposition
LGI Value Proposition LGI strives to deliver value with its vertically integrated business model in a number of key areas at the intersection of the waste, electricity and carbon sectors END-TO-END DIVERSIFIED VERTICALLY INNOVATION AND SOLUTION REVENUE STREAMS INTEGRATED TECHNICAL INGENUITY Highly c
Slide 23: LGI LIMITED
LGI LIMITED AUSTRALIA ABN. 49 138 085 551 57 Harvey Street North Eagle Farm 4009 QLD 07 3711 2225 enquiries@lgi.com.au www.lgi.com.au Renewable energy, and carbon abatement