ACWA Power · TADAWUL:2082
ACWA Power — Debt Investor Presentation (June 2020)
25 slides from ACWA Power's debt investor presentation, Jun 16, 2020
Slide 1: Bondholders Conference Call ACWA 39—June 2020
Bondholders Conference Call ACWA 39—June 2020 Financial and Operational Results For the year ended and as at 31 Dec 2019 1 0
Slide 2: Disclaimer
DISCLAIMER Certain statements in this material as well as other statements and remarks made during the associated presentation of this material are, or may be deemed to be, "forward‐looking statements". Such statements can generally be identified by their use of forward‐looking words such as "plans"
Slide 3: Contents
CONTENTS • ACWA Power • ACWA 39 Reporting • Description of the bonds • Debt servicing • MD&A highlights • Q&A 2
Slide 4: Contents: ACWA Power
CONTENTS • ACWA Power • ACWA 39 Reporting • Description of the bonds • Debt servicing • MD&A highlights • Q&A 3
Slide 5: ACWA Power
ACWA POWER Developer, investor and operator of power generation and desalinated water production plants UAE, Egypt, Bahrain, Saudi Oman, Morocco, Vietnam, Ethiopia, 48.8 Billion Arabia Jordan South Africa, Turkey Uzbekistan Portfolio size1 2004 2008–10 2012–14 2015–20 34.0 5.9Mn ACWA POWER INVESTOR
Slide 6: Growth—Past and Future
GROWTH—PAST AND FUTURE Remarkable growth in the past; strong bid pipeline ahead POWER (Gross GW) 29.3 34.0 The Bid 8.1 Pipeline CAGR1 +21% 5.4 2020-2022 ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com 20.5 16.1 Total 86 39.3 7.7 56.2 2015 2020-04 # of Power Water M Project WATER
Slide 7: Shareholding Structure
SHAREHOLDING STRUCTURE Supportive and reputable shareholder base Government of Founding shareholders Saudi Arabia 100% ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Vision Int. Al Rajhi Saudi Private PIF (Public Inv. Fund Saudi Public Inv. Co. Hold. Gr. Co. Investors of Saudi
Slide 8: Strategic Framework
STRATEGIC FRAMEWORK Reliably and responsibly deliver power and desalinated water at the lowest cost • Focus on maintaining #1 private sector player across #1 position in the KSA sector value chain To be one • Exploit opportunity to diversify into manufacturing of of the main solar PV panels and gasi
Slide 9: Business Model
BUSINESS MODEL Long-term offtake contracts generating revenue and cash flows at contracted rates over a period of decades 5 1 ACWA Power enters into long-term contracts Throughout the duration of these with creditworthy purchaser to sell capacity at a contracts, ACWA Power’s formula pre-agreed tarif
Slide 10: Contents: ACWA 39 Reporting, Description of the bonds, Debt servicing
CONTENTS • ACWA Power • ACWA 39 Reporting • Description of the bonds • Debt servicing • MD&A highlights • Q&A 9
Slide 11: ACWA39—The Bonds
ACWA39—THE BONDS $814 million 5.95% Senior Secured Bonds due 2039 • The Issuer, APMI One1; Issue Date: May International Company for Water & 15, 2017 Power Projects (ACWA Power) 100% 100% • Payable semiannually in instalments on ACWA Power Saudi ACWA Power 15th Jun, 15th Dec Electricity and Water 10
Slide 12: ACWA Power Projects (APP) – as at 31st Dec 2019
ACWA POWER PROJECTS (APP) – AS AT 31ST DEC 2019 Legend First National Holding Co. % Effective Share of ACWA Power 100% (99% direct and 1% indirect) % Share of Government Related Entity Gross Capacity First National O&M Co. Power Water COD/ (NOMAC) Project Company Location (MW) (000’m3/day) Contract
Slide 13: Funds Flow
FUNDS FLOW Semi-annual debt servicing following a structured flow in accordance with the bonds’ covenants APMI1 Bondholders Proceeds Loan ACWA Power (The Issuer) ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com ACWA Power’s debt Collection servicing and designated Debt servicing
Slide 14: Most-Recent Debt Servicing
MOST-RECENT DEBT SERVICING Immediate 12-month preceding and following 16/06/20 as submitted on the certificate Cash USD Payment Cash USD Million Date Million 122.6 2.52x 120.0 2.43x ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com 1.35x 1.35x Debt Service 48.43 Debt Service 49.30
Slide 15: Debt Servicing for FY 2020
DEBT SERVICING FOR FY 2020 For 12-month period from 16-Dec-2019 to 15-Dec-2020 Payment Date 16/12/19 15/06/20 15/12/20 15/06/21 ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Current 12-months Period Revised Forecast December 2019 forecast for 121.7 2.51x 2020 included distribu
Slide 16: Breakdown of 2019 Cash Flows
BREAKDOWN OF 2019 CASH FLOWS Collection account from 1 Jan 2019 to 31 Dec 2019 US$ in 0 10 20 30 40 50 60 70 Millions Dividends from equity accounted 1 investments 65 ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@acwapower.com Discontinued operations – Loss of SAR 101 2 Shareholder loan rep
Slide 17: Availability
AVAILABILITY POWER FY2019 Availability | Power: 90% WATER FY2019 Availability | Water: 93% Power | Availability | % Water | Availability | % 2018 2019 2018 2019 94 90 100 100 97 95 98 100 100 88 90 87 91 98 98 79 81 95 96 96 95 67 93 93 93 88 ACWA POWER INVESTOR RELATIONS | www.acwapower.com | ir@ac
Slide 18: Matters of Significance
MATTERS OF SIGNIFICANCE Matters During 2019 Post 2019 - Existing Status NOMAC • All assets and liabilities of NOMAC (except • Secured consents and completed Restructuring Rabigh Power Company) under APP has been share transfers for all projects; transferred to First National Holding Company, a trans
Slide 19: Matters of Significance
MATTERS OF SIGNIFICANCE Matters During 2019 Post 2019 - Existing Status Acquisition of • Not Applicable • ACWA Power acquires 4.99% of Samsung 5% additional C&T’s share in Hajr Electricity Production stake in Hajr Company – further fortifying the company’s position as the second largest shareholder
Slide 20: Update on NOMAC Restructuring
UPDATE ON NOMAC RESTRUCTURING As at 31 December 2019 Pre-Restructuring Post-Restructuring (ACWA39 framework) International Company for Water & International Company for Water & Power Projects (ACWA Power) Power Projects (ACWA Power) 100% 100% ACWA Power Saudi Electricity and Water NOMAC Holding Dev.
Slide 21: Covid-19 Update
COVID-19 UPDATE Coping well with the pandemic A Covid-19 committee led by • Only essential functions/staff to be on site the CEO of ACWA Power HSE • Strict health checks and regular disinfection across all sites focusing on three core areas : • Conducting regular mock drills and awareness sessions •
Slide 22: Highlights from MD&A—APMI One
HIGHLIGHTS FROM MD&A—APMI ONE Financial results and position – as at and for the year ended 31 Dec 2019 • Finance income at USD 49.4 million comprises interest income on bond proceeds advanced to an affiliate company and facility fees thereon. • Finance costs at USD 49.4 million comprises coupon int
Slide 23: Highlights from MD&A—APP
HIGHLIGHTS FROM MD&A—APP Financial results and position – as at and for the year ended 31 Dec 2019 • Revenue: There is no revenue recorded in 2019, consistent with 2018 and 2017, on account of NOMAC restructuring and Bowarege’s contract expiry. • Operating costs: Comprising depreciation charges and
Slide 24: Highlights from MD&A—NOMAC
HIGHLIGHTS FROM MD&A—NOMAC Financial results and position – as at and for the year ended 31 Dec 2019 • Revenue was SAR 1,012.3 Million, less than 2018 by SAR 17.9 million, or 1.7%, mainly due to higher revenue at RPC, which is on cost-plus contract, associated with a major maintenance activity in 20
Slide 25: Contents
CONTENTS • ACWA Power • ACWA 39 Reporting • Description of the bonds • Debt servicing • MD&A highlights • Q&A 24