Tilt Renewables — Investor Day (April 2018)
37 slides from Tilt Renewables's investor day presentation, Apr 11, 2018
Slide 1: Tilt Renewables presentation for Infratil Investor Day
Tilt Renewables presentation for Infratil Investor Day 11 April 2018 01
Slide 2: Agenda
AGENDA • Overview – portfolio and team • Tilt Renewables differentiators • Highlights for FY2018 • Australian NEM in transition • Policy trends • Market trends • NZ - Renewable energy landscape • Focus areas for Tilt Renewables
Slide 3: Overview of Tilt Renewables
Overview of Tilt Renewables 19+ years experience developing, owning and operating renewable generation assets across Australasia Wholly owned generation Development options capacity (Potential MW) Operational Assets under Wind Solar Storage Assets construction 3,500MW+ AU 582MW operational NZ 54MW i
Slide 4: Tilt Renewables Portfolio
Tilt Renewables Portfolio 582 MW operational, 54 MW under construction Source: TLT Analysis 4
Slide 5: Tilt Renewables Value Proposition: Key differentiators
Tilt Renewables Value Proposition Key differentiators 1 2 3 4 High performing Solid balance sheet Developing storage / Demonstrated ability assets, revenues with strong cashflow firming capability with to develop, execute contracted to strong generated from technology neutral and fund projects count
Slide 6: Tilt Renewables Value Proposition
Tilt Renewables Value Proposition • Early stage site feasibility, Large operational base and immediate growth opportunities approvals and development 1 Competitor Comparison MW 1000 • Procurement, financing and delivery 900 2 800 700 600 • Operations and commercial management 500 3 400 300 200 • Ass
Slide 7: Key Differentiator - PPA & Counterparty Overview
Key Differentiator - PPA & Counterparty Overview Tilt Renewables has a high level of contracted revenue, counterparties include Origin Energy, Trustpower, and Meridian Energy 100% 98% 90% 84% 83% 83% 82% 82% 82% 82% 82% 82% 82% 82% Contracted capacity1 (%) 80% 71% 70% 60% 50% 40% 30% 20% 20% 20% 20%
Slide 8: Australia's National Electricity Market is in transition
Australia’s National Electricity Market is in transition Market characteristics today Opportunities for Tilt Renewables • Dominated by black/brown coal, which is • Progressive retirement of 20GW coal, which must ageing be replaced • Low, but growing renewables penetration • Renewables /MWh costs red
Slide 9: Well positioned for Australian energy market transition: Policy
Tilt Renewables is well positioned to take advantage of Australian energy market transition 1 Policy Trends are supportive How Tilt Renewables is positioned • National Energy Guarantee – components: • Tilt Renewables has a zero emissions portfolio • Emissions linked to Australia’s international comm
Slide 10: Well positioned for Australian energy market transition: Market
Tilt Renewables is well positioned to take advantage of Australian energy market transition 2 Market Trends are supportive How Tilt Renewables is positioned • Genuine alternatives to traditional PPA market available • Allows TLT to access multiple offtake options to maximise • Corporate PPA market (
Slide 11: New Zealand - Renewable Energy Landscape
New Zealand - Renewable Energy Landscape 3 Market Trends are supportive • Relatively stable NZ energy market • Aluminium prices support short-term Tiwai smelter operation • Government review of electricity pricing underway • Labour govt. supportive of transition to zero emissions energy mix • Demand
Slide 12: Focus areas for Tilt Renewables: Next months
Focus areas for Tilt Renewables: Next 12 months Dundonnell / Delivering value Storage and VRET process from the pipeline firming options • Opportunity to grow operational • Diversity across NEM states and • Technology neutral approach: portfolio by 50+% technology batteries, pumped-hydro, gas • Bank
Slide 13: Dundonnell / VRET process
Key project stats Dundonnell Wind Farm Dundonnell / VRET process Turbines 80 wind turbines of up to 4.2MW Installed Capacity 336 MW Key commercial arrangements negotiated Annual production ~1,200 GWh lifetime average • Firm EPC and long-term O&M pricing Construction period ~24 months • Transmission
Slide 14: Delivering value from the pipeline
Delivering value from the pipeline Overview of key development projects Potential Projects with Environmental Consents Technology Location MW Tilt Renewables has made good progress developing its Dundonnell Wind AU-VIC 336 pipeline of near-term investment opportunities beyond 3 x Queensland solar pr
Slide 15: Storage and Firming Options - Highbury Pumped Hydro
Storage and Firming Options - Highbury Pumped Hydro Why Storage? - Store wind energy at times of high production (low price) - Release wind energy at times of high demand (high price) - Participation in system support ancillary services market - Enables options beyond variable volume PPA offtakes -
Slide 16: Storage and Firming Options – Solar and Batteries
Storage and Firming Options – Solar and Batteries Co-located wind and solar options at Snowtown and Waddi Source: TLT Analysis • Co-located solar + wind + storage = • smoother energy profile, • lower ancillary services costs, • higher transmission asset utilisation • Batteries provide additional sho
Slide 17: Summary
Summary - Diverse operational base, strong cashflows - Revenues highly contracted - Immediate opportunity for significant growth - Key market fundamentals remain positive - Significant development pipeline - Storage and firming options being developed - Real alternatives to traditional PPAs for offt
Slide 18: Introduction to Tilt Renewables [Appendix Materials]
Introduction to Tilt Renewables [Appendix Materials] March 2018 018
Slide 19: Tilt Renewables Executive Team
Tilt Renewables Executive Team The executive team bring extensive experience and skills gained across multiple relevant sectors, including wind, hydro, construction, finance, M&A and project management. Deion Campbell Steve Symons Nigel Baker Clayton Delmarter Chief Executive Officer Chief Financial
Slide 20: Highlights for FY2018: Consolidate the platform + enhance the development pipeline
Highlights for FY2018: Consolidate the platform + enhance the development pipeline Getting the business going Grow our future value First full year since demerger Salt Creek 54MW nearing completion Reached financial close on Salt Creek Dundonnell 336MW bid into VRET Established capable and
Slide 21: Key Financials and Shareholding Structure
Key Financials and Shareholding Structure
Slide 22: Key Financials
Key Financials Income FY17 1H17 1H18 1H18 performance Electricity production 2.049 1,034 869 • Unfavourable wind conditions in the June quarter saw Australian 1H18 production end 6% below long-term expectation despite a strong second quarter, result was 82GWh below 1H17 Revenue 174.5 89.3 75.5 Gener
Slide 23: Key Financials (continued)
Key Financials (continued) Balance sheet 1H18 1H18 position Cash at bank 102.4 • Tilt Renewables’ cash position remains robust with $102m total cash including ~$90m of cash funding for Salt Creek Wind Farm construction with Expansion Facility debt drawn in July 2017 Accounts receivable and prepaymen
Slide 24: Key Shareholders
Key Shareholders Infratil New Zealand based infrastructure investment company. It owns (through various airports, electricity generators and retailers, and a public subsidiaries) transport business, with operations in New Zealand and Other (51.0%) Australia 22% TECT Tauranga Energy Consumer Trust is
Slide 25: Dundonnell Wind Farm
tir renewables Dundonnell Wind Farm
Slide 26: Dundonnell Wind Farm
Dundonnell Wind Farm Dundonnell overview Key project stats Dundonnell Wind Farm • Dundonnell consists of 80 wind turbines with nameplate capacity of 336MW, located 15km from TLT’s Salt Creek Wind Farm Turbines 80 wind turbines of up to 4.2MW • Expected to power the equivalent of 140,000 homes and re
Slide 27: Victorian Government Energy Auction Scheme (VREAS) Overview
Victorian Government Energy Auction Scheme (VREAS) Overview Pro forma Installed Capacity Overview Geographic Breakdown • In June 2016, the Victorian Government committed to the Victorian Renewable Energy Target (VRET) of 25% of energy generation in the state by 2020 and 40% by 2025 919 • To help ens
Slide 28: Approach to Funding the Development of Dundonnell
Approach to Funding the Development of Dundonnell The Dundonnell project will be prudently funded with an appropriate mix of debt and equity. Total Construction Cost Debt Equity The balance of funding is expected to be provided from an equity raising by Tilt Renewables Debt funding will comprise
Slide 29: Salt Creek Wind Farm Construction Update
Salt Creek Wind Farm Construction Update
Slide 30: Salt Creek 54MW Wind Farm (Western VIC)
Salt Creek 54MW Wind Farm (Western VIC) Key project stats Salt Creek Wind Farm (VIC) Installed capacity 15 Vestas V126-3.6 MW wind turbines = 54 MW Annual production 172 GWh lifetime average (36% capacity factor) Funding A$100M debt facility, cash balances EPC contractor Vestas and Zenviron consorti
Slide 31: Salt Creek Wind Farm construction update
Salt Creek Wind Farm construction update • Notice to Proceed issued for Salt Creek Wind Farm 30 June 2017 following Board investment decision • EPC contractor consortium (Vestas and Zenviron) are progressing well • All turbines & blade components delivered to Portland, Victoria • 15 of 15 turbine fo
Slide 32: Further details
tir renewables Further details
Slide 33: PPA & Counterparty Contract Detail
PPA & Counterparty Contract Detail Installed Volume Project Counterparty Term Pricing capacity contracted Snowtown (Stage 1) Origin Energy 101MW 89% 2018 Fixed + Escalator Snowtown (Stage 2) Origin Energy 270MW 100% 2030 Fixed + Escalator Blayney Origin Energy 10MW 100% 2021 Fixed + Escalator Crookw
Slide 34: Other slides
tir renewables Other slides
Slide 35: A diverse development pipeline of high quality assets across Australasia
A diverse development pipeline of high quality assets across Australasia Overview of key development projects Turbine Tip Projects with Environmental Consents Technology Location Potential MW Height Connection kV consented Dundonnell Wind AU-VIC 336 189m 500/220 3 x Queensland solar projects Solar A
Slide 36: Tilt Renewables' Quarterly Production
Tilt Renewables’ Quarterly Production Quarterly Production (GWh) 600 500 400 300 200 100 0 CY14-Q3 CY14-Q4 CY15-Q1 CY15-Q2 CY15-Q3 CY15-Q4 CY16-Q1 CY16-Q2 CY16-Q3 CY16-Q4 CY17-Q1 CY17-Q2 CY17-Q3 CY17-Q4 CY18-Q1 AU NZ Source: TLT Analysis 36
Slide 37: Important Notice
Disclaimer This presentation is issued by Tilt Renewables Limited. While all reasonable care has been taken in the preparation of this presentation, Tilt Renewables Limited and its related entities, directors, officers and employees (collectively “Tilt Renewables”) do not accept, and expressly discl