CBRE Acquisition — Altus Power — Q3 2024 Earnings Presentation
21 slides from CBRE Acquisition's earnings presentation, Nov 12, 2024
Slide 1: November 2024 Investor Presentation
November 2024 Investor Presentation
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results The following presentation for Altus Power, Inc. (“Altus Power” or the “Company”) has been prepared by Altus Power’s management. You should read the presentation together with our consolidated financial statements and related note
Slide 3: Clean Electrification is Happening Now, and We Are At The Center
Clean Electrification is Happening Now, and We Are At The Center 3 Grid Pressure An antiquated utility grid is struggling to keep up with rising power demand as a result of the “electrification of everything”; we provide a solution by generating clean power directly where that power is consumed Altu
Slide 4: Powerful Unit Economics: The Advantages of Commercial-Scale Solar for all Participants
Powerful Unit Economics: The Advantages of Commercial-Scale Solar for all Participants 4 Utility Scale Solar Commercial Scale Solar Residential Scale Solar Price of Power1 Dollars per kWh Lower Price Closer to Residential Higher Price Cost to Build2 Dollars per watt Lower Cost Closer to Utility High
Slide 5: Altus Power is at the Forefront of a Growing Market
5 Portfolio as of September 30, 2024 NEW BUILD OPPORTUNITY1 Between 3,500-3,700 MWs Per Year CONSOLIDATION OPPORTUNITY 25,000 MW Currently Installed LOW PENETRATION RATE Less than 5% of commercial buildings across United States have solar on the roof2 1 Forecast from Wood Mackenzie, March 2024 US So
Slide 6: What Is Commercial-Scale Solar
What Is Commercial-Scale Solar COMMERCIAL-SCALE SOLAR generates and provides clean power to our customers where that energy is being consumed, via roof mounted, parking canopy, or ground mounted systems between 1-20 MW in size Local generation for enterprise customers, (e.g., commercial and industri
Slide 7: What Is Community Solar
What Is Community Solar COMMUNITY SOLAR allows Altus Power to provide locally generated clean power through its local Commercial-Scale roof mounted, parking canopy, or ground mounted systems to residential off-takers at a discount to their prevailing retail prices Discount to fully loaded prevailing
Slide 8: Expertise through Vertical Integration
Expertise through Vertical Integration Remediation / Repowering Early-Stage Development Engineering Construction Late-Stage Development Operational Asset Long-Term Ownership The vertical integration of the company includes domain expertise at all steps of a project’s journey, from initial developmen
Slide 9: Executing the model at Scale: > GW and Growing
Executing the model at Scale: > 1 GW and Growing….. 9 1As of September 30, 2024 2Enterprise Off-takers includes, but not limited to: Commercial and Industrial (C&I), Municipalities, Universities, Hospitals and other corporations State MWs % New York 205 20% New Jersey 185 18% Massachusetts 150 15% C
Slide 10: Third Quarter Earnings Summary
$29.1 $37.0 Q3'23 Q3'24 Adjusted EBITDA1 ($MM) Third Quarter Earnings Summary 10 $45.1 $58.7 Q3'23 Q3'24 Operating Revenues ($MM) GAAP Net Income* Q3’24 $8.6 million Q3’23 $6.8 million *GAAP Net Income figures include non-cash gain from remeasurement of alignment shares of $3.5M and $10.2M for 3Q23
Slide 11: Financial Capabilities
Financial Capabilities 11 1 Tax equity available for new-build projects 2 Cash, cash equivalents and restricted cash as of September 30, 2024 $111mm Cash Balance2 $98mm of Available Capacity on Blackstone Construction Facility $165mm of Available Capacity on Corporate Revolver (for Working Capital)
Slide 12: Portfolio Statistics as of September 30, 2024
Portfolio Statistics as of September 30, 2024 12 Fixed 28% Fixed with Escalator 18% Variable 54% Breakdown of Contract Type (MWs)1 86 137 139 94 137 262 239 142 210 364 333 1Q 2Q 3Q 4Q Kilowatt-Hours (in millions) 2022 2023 2024 1 Percentages shown are approximations 362 369 377 470 678 698 721 896
Slide 13: Our Three-Year Vision
Our Three-Year Vision 13 $0 $50 $100 $150 $200 $250 $300 $350 2019 2020 2021 2022 2023 2026 Megawatt Growth Fueling Expansion of Revenue and Adjusted EBITDA1 146 MW $37M $22M 240 MW $45M $26M 362 MW $72M $41M 470 MW $101M $59M $93M $155M $160-180M EXPECTED ADJUSTED EBITDA $270-305M EXPECTED REVENUE
Slide 14: Appendix
a ALTUSPOWER RENEWABLE ENERGY Appendix 4
Slide 15: 3Q 2024 Financials
15 3Q 2024 Financials 3Q 2024 Operating Revenues $58.7 Million 3Q 2024 Adjusted EBITDA1 $37.0 Million 3Q 2024 Adjusted EBITDA Margin1 63 Percent 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Please see the Appendix for a reconciliation to the most directly comparable
Slide 16: Non-GAAP Reconciliation
16 Non-GAAP Reconciliation 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures Adjusted EBITDA1 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands) (in thousands) Reconciliation of Net income to Adjusted EBITDA: Net income $ 8,
Slide 17: Balance Sheets
17 Balance Sheets Condensed Consolidated Balance Sheets (In thousands, except share and per share data) As of September 30, 2024 As of December 31, 2023 Assets Current assets: Cash and cash equivalents $ 96,899 $ 160,817 Current portion of restricted cash 1,334 45,358 Accounts receivable, net 34,326
Slide 18: Statements of Operations
18 Statements of Operations Condensed Consolidated Statements of Operations (In thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating revenues, net $ 58,681 $ 45,079 $ 151,800 $ 120,970 Operating expenses Cost of op
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions 19 We define adjusted EBITDA as net income plus net interest expense, depreciation, amortization and accretion expense, income tax expense or benefit, acquisition and entity formation costs, stock-based compensation expense or benefit, and excluding the effect of certain non-rec
Slide 20: Adjusted EBITDA Definitions
Adjusted EBITDA Definitions 20 Interest Expense, Net. Interest expense, net represents interest on our borrowings under our various debt facilities, amortization of debt discounts and deferred financing costs, and unrealized gains and losses on interest rate swaps. Depreciation, Amortization and Acc
Slide 21: Contact Info
contact info W: altuspower.com E: ir@altuspower.com