Enlight Renewable Energy Ltd · TASE:ENLT
Enlight Renewable Energy — Q2 2024 Earnings Presentation
25 slides from Enlight Renewable Energy's earnings presentation, September 2024
Slide 1: Earnings Presentation Second Quarter 2024
EARNINGS PRESENTATION Second Quarter 2024
Slide 2: Legal disclaimer
Legal disclaimer This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue intend s
Slide 3: Enlight at a glance
Enlight at a glance Next generation global renewable energy platform Greenfield developer & IPP Extensive track record Control over entire project life cycle 71% CAGR revenues1 50% CAGR Mature Project capacity1,2 Global platform Large and diverse portfolio 20.7 GW + 33.2 GWh portfolio Growing activi
Slide 4: Strong financial performance, construction progresses
Strong financial performance, construction progresses Revenue Adjusted EBITDA1 Robust 2Q results up 61% to $85m up 39% to $58m & FY24 guidance raised Increasing Revenues Adjusted EBITDA1 guidance ranges $345-$360m $245-$260m Atrisco Solar & Storage (364 MW, 1.2 GWh) achieved financial close in July;
Slide 5: Outstanding quarterly results and growth
Outstanding quarterly results and growth Growth driven by new operational projects and healthy production levels Q2 2024 versus Q2 2023 ($m) 85 +61% 58 2Q23 boosted by decreased earnout and LD 56 53 recognition; 2Q24 impacted by inflation indexation of financial expense 42 39 +38% +42% -58% 22 9 Rev
Slide 6: Strong results and growth in the first half of 2024
Strong results and growth in the first half of 2024 Growth driven by new operational projects and healthy production levels H1 2024 versus H1 2023 ($m) 175 +42% 124 126 -4% 1H23 boosted by decreased earnout, LD recognition and FX impacts 95 on financial income 95 91 +33% -39% 56 34 Revenue Adjusted
Slide 7: Adjusted EBITDA: quarterly actual results vs consensus expectations
Adjusted EBITDA: quarterly actual results vs consensus expectations Enlight reported Adjusted EBITDA1 versus consensus2 estimates ($m) $75 $70 $65 $60 2Q24 Actual $55 +9.5% above Consensus $50 $45 $40 $35 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Enlight Reported Adjusted EBITDA1 Consensus Estimates2 1Adjusted
Slide 8: Raising 2024 full year guidance ranges
Raising 2024 full year guidance ranges Strong operational performance, O&M and G&A cost savings Revenues: midpoint increased by $5m EBITDA1: midpoint increased by $7.5m ($m) ($m) 360 360 260 255 352.5 252.5 Midpoint 347.5 Midpoint +1.4% 245 +3% 345 245 335 235 Original Guidance Updated Guidance Orig
Slide 9: Promising business environment for Enlight
Promising business environment for Enlight Data centers and EVs are the main drivers of accelerating US electricity demand growth Renewables are the dominant source of supply for this demand, comprising 95% of the US project queue Average US PPA prices of $52 remain high, reflecting scarcity value o
Slide 10: Data centers and EVs boost electricity consumption; solar the source of supply
Data centers and EVs boost electricity consumption; solar the source of supply Data centers, AI, & EVs drive US power consumption… … Solar PV is the main winner from data center, AI, & EV demand TWh Forecasted electricity demand by sector GW U.S. installed generation capacity forecast 350 Transporta
Slide 11: Load growth rising after decades of decline; renewables dominate project queue
Load growth rising after decades of decline; renewables dominate project queue Increasing demand for electricity … … Renewables the only game in town U.S. 10-Year Annual Load Growth Forecast U.S. Interconnection Queue in 2023 2.0% 3% 2% Gas Other 14% 1.5% Wind 42% 1.0% Solar 2.6 0.5% TW = renewable
Slide 12: 2024-2027 projects yield high returns
2024-2027 projects yield high returns Overlaying a 10.5% unlevered return with a 5.5-6.0% cost of debt Global Portfolio of 2024-27 CODs Mid-teens % 3.4 GW 5.5 GWh 10.5% Unlevered Mature Portfolio status: Ratio Equity Average levered IRR 0.5 GW + 1.5 GWh under Average unlevered construction return: r
Slide 13: Gecama is performing well above expectations, yielding high returns
Gecama is performing well above expectations, yielding high returns Spanish power prices exceed originally modeled forecasts, driving Gecama profits higher Price (€/MWh) 90 80 70 60 50 40 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2023 2023 2023 2023 2024 2024
Slide 14: 2024 on plan: Atrisco expected to reach COD & three new flagship projects
2024 on plan: Atrisco expected to reach COD & three new flagship projects Combination of large-scale projects at high returns Country Acres Roadrunner RTB Location California Location Arizona Capacity 392 MW + 688 MWh Capacity 290 MW + 940 MWh Status Construction starts 2H24 Status Construction star
Slide 15: 2024 on plan: Diverse mix of new wind, solar and battery projects
2024 on plan: Diverse mix of new wind, solar and battery projects Continuing to expand presence across EU and Israel with high projected project returns Gecama Hybrid Location Solar, Spain Capacity 225 MW + 220 MWh Status Near Construction First Year $36-38m / $29-30m Revenues / EBITDA1 Unlevered Ra
Slide 16: Growing and geographically diverse Mature Portfolio
Growing and geographically diverse Mature Portfolio Development Stage EU MENA U.S. 651 MW Operational 1,233 MW 106 MW 434 MWh Under 77 MW 364 MW Construction 94 MW 246 MWh 1,200 MWh Near 225 MW 54 MW 2,589 MW Construction 680 MWh 521 MWh 2,852 MWh 1,552 MW 782 MW 3,059 MW 555 MW Total Mature 680 MWh
Slide 17: Increasing diversification of revenue base
Increasing diversification of revenue base EU3 MENA U.S. Revenue increase TTM1 $17m up $46m up $6m up Adjusted EBITDA2 increase, TTM1 $8m up $32m up $3m up 1 2Q24 TTM revenues compared to previous period. Ie Growth of 2Q24-2Q23 over 2Q23-2Q22; 2 Segment Adjusted EBITDA is a non-IFRS measure; 3 EBITD
Slide 18: Increasing 2024 Guidance: Revenues of $345-360m and Adjusted EBITDA of $245-260m
Increasing 2024 Guidance: Revenues of $345-360m and Adjusted EBITDA of $245-260m Operational Portfolio Revenue Adjusted EBITDA1 Raising guidance ranges (MW & MWh) ($m) ($m) Revenues: $345-$360m 345-360 up from $335m-$360m EBITDA1: $245m-$260m 2,431 MW + 51% up from $235-$255m 1,881 MWh CAGR 256 245-
Slide 19: Mature portfolio: 5.4 GW and 5.9 GWh operational by 2027
Mature portfolio: 5.4 GW and 5.9 GWh operational by 2027 Massive growth into middle of decade: operational capacity expected to triple to 5.4 GW and 5.9 GWh by the end of 2027 2024 | Atrisco (364 MW, 1.2 GWh) Major Expected 2025 | Roadrunner & Quail Ranch (418 MW, 1.3 GWh) CODs 2026 | Gecama, CO Bar
Slide 20: Appendix
en Appendix
Slide 21: Reconciliation between Net Income to Adjusted EBITDA
Reconciliation between Net Income to Adjusted EBITDA ($ thousands) For the six months ended For the three months ended 06/30/24 06/30/23 06/30/24 06/30/23 Net Income (loss) 33,944 55,707 9,459 22,431 Depreciation and amortization 50,886 26,777 25,282 13,637 Share based compensation 4,084 2,850 967 1
Slide 22: Increased demand coupled with shortage of projects pushing PPA pricing higher
Increased demand coupled with shortage of projects pushing PPA pricing higher Supply and demand imbalance pushing PPA pricing higher … … Equipment prices remain favourable 140% $65 61.52 Key commodity prices $60 120% 56.73 $55 100% 51.93 $50 80% $45 $40 60% $35 Solar 40% $30 +70% $25 Q1/21- Q1/24 20
Slide 23: Portfolio snapshot
Portfolio snapshot Generation, Storage, Graph, MW MWh scale Portfolio definitions Operational, under construction and pre- + + Mature construction (expected to start construction within 12 months) + 10,987 12,823 20,703 33,177 4,323 14,419 Projects which are expected to begin Advanced construction w
Slide 24: Enlight's unique position: near-term pipeline & interconnect advantage
Enlight’s unique position: near-term pipeline & interconnect advantage represent “missing link” Transmission infrastructure is the principal constraint for renewable energy today Mature Projects Advanced Development Development 3.1 GW + 3.7 GW + 3.8 GW 100% of 100% of U.S 43% of U.S U.S Mature Advan
Slide 25: Thank you
en Thank you
Enlight Renewable Energy — Q2 2024 Earnings Presentation on 6ix