Aker Horizons ASA · SWB:7QF
Aker Horizons ASA — Q4 2023 Earnings Presentation
37 slides from Aker Horizons ASA's earnings presentation, Feb 15, 2024
Slide 1: Fourth-quarter results 2023
Fourth-quarter results 2023 15 February 2024
Slide 2: Main developments
Main developments Aker Carbon Capture recording strong order intake, progressing projects under construction • Strong momentum with several awards including Hafslund Oslo Celsio CCS: Just Catch 400 FEED • Order backlog increased to NOK 2.6 billion (100% YoY), high commercial activity across Europe a
Slide 3: Aker Horizons focusing on three Net-Zero levers
Aker Horizons focusing on three Net-Zero levers Active owner of Developer of industrial- industry-leading scale decarbonization companies driving projects decarbonization Carbon capture Renewable power & transmission Hydrogen and derivatives Aker Horizons Asset Development 3
Slide 4: Record clean energy investments amid strong regulatory momentum
Record clean energy investments amid strong regulatory momentum for CCUS, renewables and hydrogen Carbon capture Renewable power & transmission Hydrogen and derivatives EU annual carbon capture capacity growth1 Global renewable capacity growth by technology2 EU H2 demand3 Solar PV (utility) Solar PV
Slide 5: Aker Carbon Capture
Aker Carbon Capture
Slide 6: Aker Carbon Capture
Aker Carbon Capture Key commercial developments: • Hafslund Oslo Celsio CCS: Just Catch 400 FEED (incl. framework for EPC phase) • Process Design Package awarded for Uniper’s Grain power station in the UK with the potential to capture over 2 million tonnes of CO2 per year • Pre-FEED for European ene
Slide 7: Hafslund Oslo Celsio FEED contract
Hafslund Oslo Celsio FEED contract • Design capture capacity of 400,000 tonnes CO2 per year, based on Just Catch 400 modular unit • Follows Celsio’s cost reduction initiative for the Klemetsrud CCS project in Oslo • FEED contract awarded to Aker Carbon Capture and Aker Solutions • Framework for engi
Slide 8: MOU signed with MAN Energy to accelerate CCUS in United States
MOU signed with MAN Energy to accelerate CCUS in United States • MOU to jointly pursue opportunities related to CCUS and CO2 compression in the North American market, leveraging MAN’s expertise in compressor technology and system integration, and Aker Carbon Capture’s proven amine technology and car
Slide 9: Strong results from world's first CCS pilot at Elkem smelter
Strong results from world’s first CCS pilot at Elkem smelter • Completed first pilot for CCS at Elkem plant Image: Benjamin Strøm Bøen / Mo Industripark AS in Rana, Norway • Flue gases examined at demanding low CO2 concentrations. High capture rates of up to 95%, combined with low amine degradation,
Slide 10: Continued high commercial activity in Europe and North America
Continued high commercial activity in Europe and North America Hafslund Oslo Celsio Uniper Grain Power Station • Just Catch 400 FEED for waste-to-energy • Process Design Package at gas-to-power facility facility • Targeted emissions of up to 2 million tonnes of • Targeted emissions of 400,000 tonnes
Slide 11: Mainstream Renewable Power
Mainstream Renewable Power
Slide 12: Mainstream Renewable Power
Mainstream Renewable Power Leading pure-play renewable energy company Highlights • Reorganization of Condor and Huemul portfolios provides a stable financial foundation for Andes Renovables platform (1.0 GW fully operational) • New financing facility of up to USD 220 million, supported by shareholde
Slide 13: Chile reorganization concluded
Chile reorganization concluded Reorganization plan of Huemul Energía SpA Mezzanine lender support and restructuring and Condor Energía SpA concluded also achieved • Provides a stable financial foundation to mitigate the • Mezzanine debt for Condor and Huemul, with a prevailing market volatility in C
Slide 14: Andes operational update
Andes operational update Commercial margin improves Andes commercial margin1 Andes commercial margin (EURm) • Positive commercial margin continued in Q4 despite a significant increase in 18 curtailments, given the improvements in both market backdrop and operations 15 • System costs have corrected f
Slide 15: Organizational review update
Organizational review update Prioritizing 10 GW of projects Streamlining operations Leveraging global developer Reducing cost-base by over 30% competencies (>€45m) Capital recycling Partnering in core markets 15
Slide 16: 10 GW of priority projects from global development portfolio of 19+ GW
10 GW of priority projects from global development portfolio of 19+ GW Europe Capacity distribution by Net development 1.2 GW geography LatAm APAC (1.6 GW) (3.0 GW) 16% 31% 12% 9.7 GW Europe Asia Pacific (1.2 GW) 41% Net development 3.0 GW Africa (4.0 GW) Capacity distribution by technology LatAm So
Slide 17: Solar and wind projects in South Africa
Solar and wind projects in South Africa Mainstream’s presence and track-record in South Africa enables value-added growth Mainstream pioneering renewable development in Africa since 2009 • Brought 950 MW to financial close and 850MW into operation • Mainstream divested Lekela, one of the largest pan
Slide 18: Key portfolio updates
Key portfolio updates • Awarded 440 MW onshore wind certificates to explore and develop wind energy resources for two separate projects • One of the first international companies to secure onshore wind WESCs1 as a 100% foreign-owned company • Targeting to secure further WESCs for our pipeline this y
Slide 19: Asset Development
Asset Development
Slide 20: Aker Horizons Asset Development
WIP Aker Horizons Asset Development Developing hydrogen-based projects Highlights • Joint pre-FEED study with Statkraft for Narvik Green Ammonia nearing completion with FEED phase expected to commence in H2 2024 • Ground and grid connection works completed at Kvandal – site construction ready for Na
Slide 21: Key developments for first-mover projects
Key developments for first-mover projects LARGE-SCALE AMMONIA PRODUCTION NARVIK RJUKAN FIRST MOVER GREEN HYDROGEN Part of Narvik green industrial hub PROJECT DATA PROJECT DATA • Joint pre-FEED study with Statkraft for Narvik • Awarded up to NOK 85 million in grants Green Ammonia nearing completion w
Slide 22: Financials
Financials
Slide 23: Portfolio asset values
Portfolio asset values NOK million Net asset value1 Gross asset value distribution NOK million, 31 December 2023 NOK billion, 31 December 2023 AH % AH ownership value Cash Aker Carbon Capture Aker Carbon Capture 43.3% 3,551 Listed assets 3,551 19% 21% Mainstream 58.4% 7,728 Asset Development 100.0%
Slide 24: Aker Horizons and holding companies per Q4 2023
Aker Horizons and holding companies per Q4 2023 NOK million Income statement Q4 2023 Balance sheet Q4 2023 Cash flow statement Q4 2023 Operating revenue (net) 18 Interest-bearing assets 28 Cash flow from operating activities (50) Operating expenses (40) Investments1 13,684 EBITDA (24) Current operat
Slide 25: External financing and commitments
External financing and commitments NOK million Overview of debt financing facilities and commitments Debt maturities NOK million incl. PIK as of 31 December 2023 Total facility Debt Key terms 8,120 incl. PIK RCF Subordinated 6.0% coupon per annum, with deferral option against a NOK 2,408 Green bond
Slide 26: Liquidity and net interest-bearing debt
Liquidity and net interest-bearing debt NOK million Cash and undrawn RCF as of 31 December 2023 Net interest-bearing debt as of 31 December 2023 NOK million NOK million 8,937 3,317 Undrawn RCF 5,620 5,620 3,317 Interest-bearing debt 2,994 6,311 Undrawn RCF Cash Cash and undrawn RCF Debt Cash and IB
Slide 27: Capital structure at Q4 2023
Capital structure at Q4 2023 Key figures Capital structure NOK billion1 NOK billion1 17.1 Unlisted assets Most recent transaction value or 13.6 book value. Includes Mainstream, Asset Development, SuperNode, Covenant LTV2 = -6% 8.9 cash and other assets (vs. covenant of 50%) Per 31 December 2023 Undr
Slide 28: Q&A
Q&A
Slide 29: 20.6 GW net global pipeline
20.6 GW net1 global pipeline Global portfolio of 31 GW net Prioritizing 10 GW with greatest near-term value creation potential Pre-Development Development Construction Operational 10+ GW 19.3 GW 0.3 GW 1.0 GW Change since -0.9 GW -0.3 GW +0.2 GW Q4 2022 Project prioritization offsetting -0.1 GW to r
Slide 30: Global pipeline of wind and solar assets
Global pipeline of wind and solar assets Pipeline reflects assets in development, construction and operational Capacity distribution by geography Europe APAC LatAm (3.5 GW) Development 1.2 GW (3.4 GW) 17% 17% Total net 1.2 GW 6% 20.6 Europe GW Asia Pacific (1.2 GW) Development 3.5 GW 60% Africa Cons
Slide 31: Mainstream Project Overview
Mainstream Project Overview Asset Portfolio Country Technology Gross Capacity Economic Net Capacity P50 Production FC COD PPA Tariff PPA Volume PPA Tenor (MW) interest (MW) (GWh/y) (GWh) (years) Operational Alena Andes – Condor Chile Wind 86 90% 77.4 291 2019 2021 USD 43 5281 20 Rio Escondido Andes
Slide 32: Mainstream Financial Information
Mainstream Financial Information Highlights • Mainstream’s income statement is reflective of the principal activities Mainstream accounts5 of development, construction and operation of projects. Q1 Q2 Q3 Q4 EURm 2022 2023 • Market challenges remain in Chile with operators exposed to difference in 20
Slide 33: Key developments for other portfolio projects
Key developments for other portfolio projects GREEN AMMONIA TO BERLEVÅG AUKRA LARGE-SCALE BLUE HYDROGEN DECARBONIZE THE ARCTIC PROJECT DATA PROJECT DATA • Allocated 120 MW grid connection when new • Maturing project towards DG1 420kv line to Seidafjellet is completed • Technical feasibility of the N
Slide 34: Aker Horizons Asset Development financial information
Aker Horizons Asset Development financial information AAD proforma Highlights accounts1,2 • Income statement reflective of the key activities in the period Q1 Q2 Q3 Q4 NOKm 2022 2023 o Continuing to mature the projects in the pipeline 2023 2023 2023 2023 Revenue 9 14 - - 2 17 o Establishing partners
Slide 35: Sustainability integrated in all we do
Sustainability integrated in all we do Sustainability commitment across four core themes Alignment with international frameworks Planet-positive impact • Our investment thesis is grounded in a desire to be planet-positive • We commit to accelerating Net Zero commitments and decarbonization of indust
Slide 36: Disclaimer
Disclaimer This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections abo
Slide 37: To learn more about Aker Horizons visit akerhorizons.com
To learn more about Aker Horizons visit akerhorizons.com