Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — H1 2021 Earnings Presentation
29 slides from Greencoat Renewables's earnings presentation, September 2021
Slide 1: Greencoat Renewables PLC 2021 Half Year Results
Greencoat Renewables PLC 2021 Half Year Results (to June 30th) September STRICTLY CONFIDENTIAL 2021
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been prepared and issued by Greencoat Renewables PLC (the “Company” or “Greencoat Renewables”). While this Presentation has been prepared in good faith, the information contained in it has not been independently verified and does not purport to b
Slide 3: Greencoat Renewables H1 2021 Highlights
Greencoat Renewables H1 2021 Highlights 2021 H1 power generation 11% below budget 745 GWh H1dividend cover of 1.8x1 alongside strong cash generation €40.2m1 686MW Committed over €460m from a €500m pipeline (post Dec 2020 equity raise) 792MW including forward sales NAV per share of 101.1c €749.1m NAV
Slide 4: Year overview
SECTION 1 Year 3 overview STRICTLY CONFIDENTIAL
Slide 5: Continued Focus on Growth
Continued Focus on Growth FY 2018 FY 2019 FY 2020 H1 2021 79% increase in capacity 384 MW 462 MW 557 MW 686 MW in 2.5 years Scaling the business Continued increase in €23.1m €48.7m €66.4m €40.2m gross cash generation TSR since IPO of 42.4%, of which 25.4% via 10.1% 31.6% 38.0% 42.4% Strong performan
Slide 6: Long-term Value Drivers in Renewable Infrastructure
Long-term Value Drivers in Renewable Infrastructure GRP advantages • Deep experience and expertise Over 250 MW in bilateral transactions Acquire the best assets • Best in class transactional and co-ownership relationships at the best price Asset pool • Wide pool of investible opportunities 243 GW an
Slide 7: ESG – Carbon Negative, Community Positive
ESG – Carbon Negative, Community Positive Comprehensive ESG approach, spanning operational best-practice and upcoming regulation Operational ESG performance Disclosure and progress H1 2021: 745 GWh of green electricity “A” as UN PRI signatory, / 300k tonnes of CO2 savings CDP first full submission i
Slide 8: Operational Performance
SECTION 2 Operational Performance STRICTLY CONFIDENTIAL
Slide 9: Portfolio as at June 30th, 2021
Portfolio as at June 30th, 2021 Market leading Irish position, with European market entry now executed Net # Wind Farm Country Vendor Acquired % 15 MW 22 1 Knockacummer Ireland Brookfield Mar 2017 100% 100.0 2 Killhills Ireland Brookfield Mar 2017 100% 36.8 ▪ Focus on Ireland for Total y/e 2017 136.
Slide 10: Active Asset Management Approach
Active Asset Management Approach Driving value through optimising Revenue, Generation and Opex Revenue Enhancement PPA Strategy Generation Increase Recontracting Beam Hill • 1.4% yield increases achieved so far in 2021 at two assets • Beam Hill the first post REFIT asset in GRP portfolio • 1.6% yiel
Slide 11: Active Asset Management: Co-located Battery Project
Active Asset Management: Co-located Battery Project Maturing technology emerging as investible opportunity Enhancing Returns Killala pilot project • Wind/battery co-location synergies across portfolio through 4 • Killala site has significant grid potential increased dispatch, grid stabilisation paym
Slide 12: Future value enhancements
Future value enhancements Maturing technical and market developments opening potential future value uplift Near term Medium term Long-term Greencoat PIP (Performance Improvement Plan) Best in class operational excellence programme built on Investment Managers scale and experience DS3 and other grid
Slide 13: Financial Performance
SECTION 3 Financial Performance STRICTLY CONFIDENTIAL
Slide 14: Greencoat Renewables – Simple and Robust Business Model
Greencoat Renewables – Simple and Robust Business Model Equity Convert wind to energy 2 > 24 wind farms €1,442m 1 137 > 686 MW Total investment Debt Electricity sold to grid 3,925 GWh Group net cash generation €189.5m (2) €48.3m Cash Reinvestment €40.2m Reinvestment €30.5m €110.7m PF Repayment Divid
Slide 15: Financial Performance
Financial Performance Consolidated Cash P&L (€’000) H1 2019 H1 2020 H1 2021 Key Considerations Revenue 47,622 66,279 72,984 • Solid revenue growth year on year. Operating Expenses (12,770) (17,892) (23,317) Tax/VAT 168 481 (514) • Stable and solid operating margin (wind farm operating cash flow) of
Slide 16: Net Asset Value
Net Asset Value Key Considerations €748.8m €274.3m €0.0m (€14.6m) €10.2m (€4.3m) (€265.4m) €749.1m • The increase in NAV of 0.1c per share is 1,200.0 comprised of: • +1c from an increase in mid-term 1,000.0 power price • -1c from a lower cash generation than budget in H1 800.0 €m 600.0 400.0 200.0 0
Slide 17: Capital Structure to Drive Growth
Capital Structure to Drive Growth Key Considerations GAV (Capital Structure) 1,600 €1,017m €1,177m €1,442m • ~€300m invested YTD GAV GAV GAV 1,400 15% • €693m Aggregate Group Debt at 30 June 2021 1,200 1% or 48% gearing (vs gearing cap of 60%) 17% 19% 1,000 • €75m of 5 year Term Debt added in 20% 18
Slide 18: Acquisitions
SECTION 4 Acquisitions STRICTLY CONFIDENTIAL
Slide 19: European Market: Executing the growth strategy
European Market: Executing the growth strategy Deep asset base seeking long-term Investors Norway Sweden Leading Position 2.6 GW 14.5 GW Large Established Market Existing Assets Over 243 GW of renewables Within Investment Strategy Finland 2.5 GW Pan European Team in Place Investment Manager in-count
Slide 20: Nordic Expansion: Finland
7 Nordic Expansion: Finland High-growth market with very low LCOE, and well-developed corporate PPA sector Overview Kokkoneva wind farm Primarily onshore wind market with substantial growth continuing Correlation to Irish wind speeds Low 1 Tariff regime Mix of 10/15-year Corporate PPA, shorter term
Slide 21: H1 2021 Acquisitions
7 Ireland Aggregation and Market Opportunity A Cordal 89.6MW • Deal closed in March 2021 • One of largest onshore wind farms in Ireland, GE turbines • Contracted under REFIT 2 until 2032 • 28 GE 3.2MW turbines H1 2021 Acquisitions B C A B Glencarbry 35.6MW • Deal closed in March 2021 • Second transa
Slide 22: Forward Sale Model – Construction Update
Forward Sale Model – Construction Update Investment Manager expertise enlarging value chain opportunity Construction Construction Expected Partner Progress Completion Capacity • All foundations and backfilling complete Q2 43.2 Kokkoneva, 9 Nordex N149 4.8MW turbines Abo Wind • Handover Finland docum
Slide 23: Iberian Market Opportunity
7 Iberian Market Opportunity High-growth market with strong renewable resource and range of support structures Overview Spain Stable, mature, and growing market for onshore wind and solar • Sizable market with 41.21 GW of existing solar and wind capacity (2020). Correlation to Irish wind speeds • Re
Slide 24: Conclusion
SECTION 6 Conclusion STRICTLY CONFIDENTIAL
Slide 25: Portfolio Strategic Considerations
Portfolio Strategic Considerations Keeping portfolio “low risk” and adding long-term contracted cashflows I 3 2 F 1.Existing Portfolio Highly Contracted 2. M&A Strategy – Continue to extend contracted profile 3. Using PPA to recontract existing assets • 97% of revenue contracted under REFIT or Frenc
Slide 26: Greencoat Renewables H1 2021 Highlights
Greencoat Renewables H1 2021 Highlights 2021 H1 power generation 11% below budget 745 GWh H1dividend cover of 1.8x1 alongside strong cash generation €40.2m1 686MW Committed over €340m from a €500m pipeline, European diversification continuing 792MW including forward sales NAV per share of 101.1c €74
Slide 27: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 28: 2021 Financial Performance (1/2)
2021 Financial Performance (1/2) For the six months ending 30 June 2021 Group and wind farm SPV cash flows Net(1) Gross(1) €’000 €’000 Net cash generation(1) 31,923 40,239 Dividends paid (22,460) (22,460) SPV level Capex & PSO Cashflow(2) 3,531 3,531 SPV level debt repayment - (8,316) Acquisitions(3
Slide 29: 2021 Financial Performance (2/2)
2021 Financial Performance (2/2) For the six months ending 30 June 2021 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 72,984 72,984 Operating expenses (23,317) (23,317) Tax/VAT (514) (514) Wind farm operating cashflow 49,153 49,153 SPV level debt interest (3,430) (3,430) SPV level de