Grenergy Renovables S.a · BME:GRE
Grenergy Renovables — Investor Presentation (May 2023)
33 slides from Grenergy Renovables's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
The sky is the limit INVESTOR PRESENTATION May 2023 Escuderos Solar PV - Spain
Slide 2: Disclaimer
DISCLAIMER By attending this presentation and/or by accepting this presentation you will be cial condition or results of operations by the Company and should not be relied upon taken to have represented, warranted and undertaken that you have read and when making an investment decision. Certain finan
Slide 3: Equity Story & Key Figures, Platform & Pipeline, Operational Information
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 03
Slide 4: A growth story with a proven track record
1-A GROWTH STORY WITH A PROVEN TRACK RECORD Evolving into a Multitech & Multicountry IPP 2007 2012 2015 2019 2023 20251 INCEPTION END FIT2 IPO LISTING TODAY TOMORROW OPENING CHILE MAB GROWTH MAIN STOCK First green bond Technology Geographical Europe + new markets Presence LATAM USA 300 MW Pipeline 1
Slide 5: Grenergy in a nutshell
1-GRENERGY IN A NUTSHELL INTEGRATED BUSINESS MODEL CAPEX OPEX From a purely Solar PV player to a MULTI-TECHNOLOGY IPP (Solar PV, Wind, Storage) MULTI-REGIONAL player, with strong presence in EUROPE (Spain, Italy, UK, Poland, Germany), USA and LATAM (Chile, Colombia, Mexico, Peru) 14.0GW Total Platfo
Slide 6: Integrated business model
1-INTEGRATED BUSINESS MODEL Building a corporate structure to develop and build >1 GW PV annually from 2023 Integrated IPP Player Grenergy has the expertise to build and operate large-scale renewable energy plants CAPEX OPEX Operation & Maintenance Development Construction Services Asset Management
Slide 7: Key figures 1Q23
1-KEY FIGURES 1Q23 Pipeline Financials €96.0m €444.5m 14.0 GW 1,835MW Revenues €14.3m Net Debt ex IFRS16 Solar and Wind In Operation and EBITDA Pipeline Under Construction €78.1m €11.6m 7.9x B2S Revenue Energy Sales Total Leverage1 235 MW €4.9m Financials & Backlog Net Income 4.5x Pipeline 9.8 GWh C
Slide 8: Equity Story & Key Figures, Platform & Pipeline, Operational Information
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 08
Slide 9: Company platforms overview
2-COMPANY PLATFORMS OVERVIEW Three platforms with outstanding growth potential 1Q23 FY22 14.0 GW +1.5GW USA Solar 4.0 GW Identified Opportunities 2027 3,782MW -619MW Storage 3.0 GWh Early Stage 5,873MW +2,062MW 2026 Advanced Development 2,247MW +91MW 2025 LATAM Europe In Operation & U.C. In Operation
Slide 10: Strategy and operational targets - B2O
2-STRATEGY AND OPERATIONAL TARGETS- B20 Grenergy targets up to 5GW in Solar and 1GWh in Storage for 2025 Company Drivers next 3 years 2025 Strong focus in USA and key European markets Growth like Italy and Germany 5 5.0 GW Reducing volume risk, covering at least PPAs 4.5 65-75% of energy sales with
Slide 11: Solar & wind pipeline update
2-SOLAR & WIND PIPELINE UPDATE ✓ Good progress in Spain (0.8GW in Op & U/C) ✓ US platform added 1.4GW of solar capacity ✓ Chile is our 2nd-largest platform (3.3GW) ✓ Italian platform reach 1.2GW of solar capacity ✓ Opportunities in ERCOT (Texas) & MISO ✓ New pipeline added in Mexico (0.2GW) ✓ Poland
Slide 12: Storage pipeline update
2-STORAGE PIPELINE UPDATE Energy Storage Annual Capacity, GWh ✓ Storage pipeline of 9.8GWh (+2.1GWh qoq) 800 700 ✓ Chile is the most advanced market (4.0GWh) % 600 R 31 Capacity GWh ✓ On track to meet our 1.0GWh target in 2025 500 CAG 400 300 % 200 R 66 CAG 100 STORAGE 0 13 14 15 16 17 18 19 20 21 2
Slide 13: Pipeline update: projects in operation, under construction & backlog
2-PIPELINE UPDATE Projects In Operation, Under Construction & Backlog 1.8 GW in operation and under construction. 235 MW in final development phase Country Project Type MW B20 Resource COD Offtaker (Hours) Peru Duna Huambos Wind 36 Yes 4,900 4Q20 Auction 18 Yrs 100% Chile Quillagua Solar 103 Yes 2,9
Slide 14: Pipeline update: projects in advanced development
2-PIPELINE UPDATE Projects in Advanced Development >2.0 GW to feed our 2024-25 IPP targets Resource Country Project Type MW COD Offtaker Negotiation (Hours) Spain Clara Campoamor Solar 575 2,000 2Q25 PPA PaP 75% 15 Yrs (259MW) Contracted UK Solstice Projects Solar 95 1,100 1Q26 PPA 60-70% In Progres
Slide 15: Equity Story & Key Figures, Platform & Pipeline, Operational Information
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 15
Slide 16: Build to sell: story of success
3-BUILD TO SELL: STORY OF SUCCESS BUSINESS MODEL: Focus on M&A KEY FIGURES 1Q23 VALKYRIA HIGHLIGHTS Projects sold at COD ✓ 2017-2021 important track record in B2S, generating cash to reduce capital needs for the investment plan. PPAs 12-15 years Sale 49% shares ✓ 1Q23 the company sold two SOLAR PMGD
Slide 17: Integrated business model - B2O (Build-to-own)
3-INTEGRATED BUSINESS MODEL - B20 (Build-to-own) FOCUS ON IPP Strategy: a success story Energy Division In Operation & U.C. Target • Revenues €57.8m EBITDA €36.0m Total Platform of 14.0GW ✓ 712MWs in operation in 2022. 5.0 3.0x ✓ 1.6GW in operation and under contruction in 2022. 1.6 ✓ 5.0GW In opera
Slide 18: Strategy, estimates & operational targets - B2O
3-STRATEGY, ESTIMATES & OPERATIONAL TARGETS -B20 (Bulid-to-own) Built to Own: D&C margin covering a large part of the equity Example of a project finance structure Power plants financed with non-recourse debt & additional tranche of mezzanine debt D&C gross margin covers a large part of Grenergy’s equ
Slide 19: PPAs - 728MW signed in 1Q23, up to 1.4GW
3-PPAs - 728MW SIGNED IN 1Q23 UP TO 1.4GW MW ✓ 1.4GW of PPAs signed in Spain and Chile 1,500 ✓ 728MW in Spain in 1Q23 (#2 in Europe1) ✓ Another 1.5GW of PPAs under negotiation 259 ✓ 75% of Spanish output with PPAs from 2026 US CORPORATE 1,250 ✓ €2.0bn of revenues contracted at group level PaP 75% 15
Slide 20: Key operating & financial data
3-KEY OPERATING & FINANCIAL DATA ✓ +44% in total output on new capacity and better load factors ✓ Results driven by Energy and asset rotation in Chile ✓ 72% of total output from contracted volumes (+75%) ✓ Capex mainly devoted to Belinchón and Gran Teno ✓ +6% in realized prices driven by contracted
Slide 21: Solar PV capex
3-SOLAR PV CAPEX Polysilicon price (RMB/kg) 300 ✓ Capex per MW back down to pre-covid levels ✓ Deflation in modules (c€0.18m per MW) and logistic costs 200 ✓ IRRs stable at double digits 100 0 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May CAPEX BREAKDOWN PER MW 2021 2022 2023 €m 0.60 0
Slide 22: Equity Story & Key Figures, Platform & Pipeline, Operational Information
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 22
Slide 23: ESG roadmap 2021-2023
4-ESG ROADMAP 2021-2023 ESG Action Plan – III Phase ACHIEVEMENT OF 100% OF THE Q1 OBJECTIVES OF THE PLAN 2023 Q1 Q2 Q3 Q4 DEFINE THE CORPORATE PURPOSE SUSTAINABILITY REPORT 2022 GOVERNANCE APPROVAL OF THE INFORMATION SECURITY POLICY • Preparation and publication of the first PREPARATION OF THE SUSTA
Slide 24: Expansion and improve positioning in ESG ratings
4-EXPANSION AND IMPROVE POSITIONING IN ESG RATINGS Confirmation of leadership in ESG ratings ESG score Recognition by CDP of the level of 1. Scatec A 81/100 ambition of Grenergy's climate 2. Grenergy Renovables A- Expansion of index coverage, Grenergy Renovables A- strategy, placing it in the 3. Vol
Slide 25: Strong governance with focus on ESG
4-STRONG GOVERNANCE WITH FOCUS ON ESG Translating into solid value creation for its shareholders General Information Shareholders (as of May, 2023)1 Free Float Share Information 45.4% ● Currency: EUR ● Market: Spanish Stock Exchange ● ISIN: ES0105079000 Members ● Ticker code: GRE of the Board Daruan
Slide 26: Appendices
APPENDICES
Slide 27: Platform with relevant growth potential
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Total Platfom1 Includes projects in operation and total pipeline 20-40% Identified Opportunity Identified opportunities (20-40%): Project with technical and financial feasibility, given that 1) there is the possibility of land, 2) access to the
Slide 28: 1Q23 Results: Profit and Losses
1Q23 RESULTS Profit and Losses Profit and losses (€m) 1Q23 1Q22 Var. Revenue 96.0 46.9 105% Income from customer sales 30.9 18.1 71% Income from capitalize works 65.1 28.8 126% Procurement (70.1) (32.8) 114% Procurement from third parties (8.1) (5.4) 50% Activated cost (62.0) (27.4) 126% Gross Margin
Slide 29: 1Q23 Results: Balance Sheet
1Q23 RESULTS Balance Sheet Balance Sheet (€m) 1Q23 FY22 Var. (€m) 1Q23 FY22 Var. Equity 272.7 244.8 27.9 Non-current assets 741.6 681.8 59.8 Non-current liabilities 467.0 420.9 46.1 Intangible assets 0.1 0.2 (0.2) Deferred tax liabilities 25.1 20.4 4.7 Tangible asset 653.6 582.1 71.5 Provisions 13.7
Slide 30: 1Q23 Results: Cash Flow
1Q23 RESULTS Cash Flow Cash Flow (€m) 1Q23 1Q22 Var. EBITDA 14.3 7.4 94% + Change in operating WK (51.1) 17.9 186% + Financial costs & Taxes paid (10.2) (31.9) 162% Funds from operations (46.9) (14.4) n.m. + ST Investments - (1.6) - + Capex (77.6) (31.8) 184% Free cash flow (124.5) (47.7) 16% + Bonds
Slide 31: 1Q23 Results: Net Debt
1Q23 RESULTS Net Debt Total leverage1 7.9x Total corporate leverage2 4.5x Net Debt (€m) 1Q23 FY22 Var. Long-term financial debt 81.2 92.4 (11.1) Short-term financial debt 107.8 41.7 66.1 Long-term Lease debt (IFRS16) 25.1 25.2 (0.1) Short-term Lease debt (IFRS16) 1.1 1.2 (0.0) Other short term debt
Slide 32: Net Debt/EBITDA Reconciliation
1Q23 RESULTS Net Debt/EBITDA Reconciliation Net Debt/EBITDA Reconciliation 1Q23 FY22 (€m) Total Corporate Non-Recourse Total Corporate Non-Recourse Net Debt 470.8 180.1 290.7 339.7 111.5 228.2 Impact IFRS16 26.3 26.3 - 26.4 26.4 - Net Debt ex IFRS16 444.5 153.9 290.7 313.3 85.1 228.2 EBITDA LTM 57.1
Slide 33: Developers & IPP of Solar PV - Wind - Storage Projects
Developers & IPP of SOLAR PV - WIND - STORAGE PROJECTS Europe - USA - LATAM
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