Waga Energy Sa · EURONEXT:WAGA
Waga Energy Sa — H1 2022 Earnings Presentation
29 slides from Waga Energy Sa's earnings presentation, Oct 3, 2022
Slide 1: Half Year 2022
2022 HALF YEAR October 3, 2022
Slide 2: Mission
01 MISSION All over the world, landfill is a major source of methane Methane concentration emissions as well as an in the atmosphere is at immediately available gas its highest level for Leveraging 15+ years of R&D, 800,000 years. Waga Energy transforms landfill methane emissions into pure If methan
Slide 3: Waste is an untapped large source of biomethane
01 M I S S I O N WASTE IS AN UNTAPPED LARGE SOURCE OF BIOMETHANE Landfills’ energy potential by: 2025 2050 20% 20,000 landfills of total biomethane energy potential c.€100bn 1,100 TWh 1,750 TWh natural gas equivalent of wasted landfill gas annually (at 100€/MWh) 3
Slide 4: Landfill gas is unexploited: only <1% is recovered and upgraded
01 M I S S I O N LANDFILL GAS IS UNEXPLOITED : ONLY <1% IS RECOVERED & UPGRADED FOR GRID INJECTION of landfill gas is wasted is burned is recovered <10% <1% +90% (released to the atmosphere with low and upgraded or flared) energy yield for grid injection Production of biomethane from landfill gas So
Slide 5: WAGABOX, a disruptive technology to upgrade landfill gas into biomethane
01 M I S S I O N WAGABOX®, A DISRUPTIVE TECHNOLOGY TO UPGRADE LANDFILL GAS INTO BIOMETHANE YESTERDAY TODAY No technology to WAGABOX® efficiently upgrade landfill gas into the only standardized solution to recover landfill gas biomethane: and upgrade it into biomethane PATENTED 2 CHALLENGES: TECHNOLO
Slide 6: The missing link between waste managers and gas utilities
01 M I S S I O N THE MISSING LINK BETWEEN WASTE MANAGERS AND GAS UTILITIES WASTE GAS UTILITIES MANAGERS GAS CONSUMERS Objectives Objectives Reduce carbon footprint Reduce carbon footprint Value landfill gas Find some alternatives to fossil fuels Improve public acceptability Lack of grid-compliant an
Slide 7: Key facts H1 2022
02 Key facts H1 2022 7
Slide 8: Energy prices are skyrocketing since Russia invaded Ukraine
02 K E Y F A C T S H 1 2 0 2 2 ENERGY PRICES ARE SKYROCKETING SINCE RUSSIA INVADED UKRAINE €/MWh 1200 1100 Electricity price 1000 (France Baseload 2023*) 900 Natural gas price 800 (TTF calendar 2023*) 700 600 500 Russia's invasion 400 of Ukraine Source EEX 300 200 100 01/11/2021 01/01/2022 01/03/202
Slide 9: Commissioning of three new WAGABOX units
02 K E Y F A C T S H 1 2 0 2 2 COMMISSIONING OF THREE NEW WAGABOX® UNITS January 26, 2022 March 9, 2022 April 6, 2022 Gournay (France) Claye-Souilly (France) Le Ham (France) Partner: SEG Gournay Partner: Veolia Partner: Veolia Installed capacity: 25 GWh/y Installed capacity: 120 GWh/y Installed capa
Slide 10: Biomethane production increased by 37%
02 K E Y F A C T S H 1 2 0 2 2 BIOMETHANE PRODUCTION INCREASED BY 37% 96 GWh of biomethane injected 16,000 tons of eqCO2 emission saved 90 80 70 60 50 96 40 70 30 20 10 0 H1 2021 H1 2022 * Estimate based on non-renewable natural gas and renewable natural gas emission factors in France according to F
Slide 11: Four new contracts in France and Canada
02 K E Y F A C T S H 1 2 0 2 2 FOUR NEW CONTRACTS IN FRANCE AND CANADA France Cusset Ste-Marie-Kerque Canada (to be disclosed) (France) (France) (to be disclosed) Installed capacity: Partners: Suez / Partner: Installed capacity: 25 GWh/y Vichy Communauté Séché 25 GWh/y Environnement ~3,000 tons of I
Slide 12: Strong focus on recruitment
02 K E Y F A C T S H 1 2 0 2 2 STRONG FOCUS ON RECRUITMENT 150 USA Spain 3% 8% Canada 100 9% 145 116 50 79 France 80% H1 2021 H1 2022 To date Global headcount International allocation 12
Slide 13: Financial results
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Slide 14: Revenue from activities up +35%
03 F I N A N C I A L R E S U L T S REVENUE FROM ACTIVITIES UP +35% Perimeter effect with 3 WAGABOX® units startup in France in 2022 End of construction of the Mallard Ridge NORU in the USA, and startup of Winnebago project contributing to 4% of total revenues in 2022 (equipment sales) 14
Slide 15: +35% revenue increase
03 F I N A N C I A L R E S U L T S +35% REVENUE INCREASE H1 2022 vs H1 2021 (€m) +30% of continuous strong operational performance and unit startup +5% of equipment sales effect (US) 15
Slide 16: Focus on developing international activities and strengthening the structure
03 F I N A N C I A L R E S U L T S FOCUS ON DEVELOPING INTERNATIONAL ACTIVITIES AND STRENGTHENING THE STRUCTURE TO PREPARE GROWTH EBITDA Variance Analysis €m) WAGABOX® strong Non-cash item operational +44% average (2019 and 2021 stock performance headcount options plans to retain people) Structuring
Slide 17: Strong cash position to execute the plan
03 F I N A N C I A L R E S U L T S STRONG CASH POSITION TO EXECUTE THE PLAN €1,9m cash burn - - €16,1 m investment in WAGABOX® assets (13 under construction at the end of H1 2022) compared to €13,1m for full year 2021 €2m of cash burn (running costs) 17 - €5m of net debt cash out mostly due to conve
Slide 18: Sound financial situation
03 F I N A N C I A L R E S U L T S SOUND FINANCIAL SITUATION Maturity 6,6 6,5 11,8 16,5 19,9 9,4 2021 2022 Long term portion (>5years) Mid term portion (1 to 5 years) Current portion (<1year) €100.1m in cash and cash equivalents for a financial debt of €32.4m Successful debt refinancing in 2021 and
Slide 19: Long term business model and visibility
03 F I N A N C I A L R E S U L T S LONG TERM BUSINESS MODEL AND VISIBILITY 2,6 years Average Wagabox® asset age * 12,1 years Average remaining Biomethane Purchase Agreement duration1 € ~€42m in annual recurring revenue2 secured 1 Weighted by production volume of WAGABOX® installations 2 The annual c
Slide 20: Perspectives
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Slide 21: WAGABOX units up-and-running, 14 more under construction
04 P E R S P E C T I V E S 13 WAGABOX® UNITS UP-AND-RUNNING, 14 MORE UNDER CONSTRUCTION 21
Slide 22: Opening of subsidiaries in the UK and Italy
04 P E R S P E C T I V E S OPENING OF SUBSIDIARIES IN THE UK AND ITALY Will Llellewyn Julie Flynn Nicolas Paget Lorenzo Serra Guénaël Prince Baptiste Usquin 22
Slide 23: Significant pipeline backing the international ramp-up
04 P E R S P E C T I V E S SIGNIFICANT PIPELINE BACKING THE INTERNATIONAL RAMP-UP In operation Under construction Pipeline Contracts signed Negotiations ongoing 7% ADDRESSABLE MARKET = 24% 3 Landfill selection criteria 36% 23% 1 Compliant distance to #13 #14 #111 natural gas grid (+17%*) 57% (+22%*)
Slide 24: The EU spurs massive investment in biomethane
04 P E R S P E C T I V E S THE EU SPURS MASSIVE INVESTMENT IN BIOMETHANE REPowerEU is about rapidly reducing our dependence on Russian fossil fuels by fast forwarding the clean transition and joining forces to achieve a more resilient energy system and a true Energy Union Biomethane Action Plan’s ke
Slide 25: President Biden's actions on climate and clean energy
04 P E R S P E C T I V E S PRESIDENT BIDEN’S ACTIONS ON CLIMATE AND CLEAN ENERGY Inflation Reduction Act (IRA), August 2022 (inspired by the Build Back Better plan) • $437 billion in expenditures over 10 years • $369 billion dedicated to energy security and climate-related initiatives • Incentives t
Slide 26: Competitive biomethane production as natural gas spot prices reach record highs
04 P E R S P E C T I V E S COMPETITIVE BIOMETHANE PRODUCTION AS NATURAL GAS SPOT PRICES REACH RECORD HIGHS €/MWh TTF Natural Gas Price Index 337 €/MWh 340 320 300 280 260 240 231 €/Mwh 220 200 180 160 First Biomethane Purchase 140 Agreement in Spain 120 100 90 €/MWh 80 Biomethane feed-in tariffs in
Slide 27: Ambitious growth objectives
04 P E R S P E C T I V E S AMBITIOUS GROWTH OBJECTIVES 2026 2021 100 WAGABOX ® Objectives c. 4 TWh 10 WAGABOX production capacity 100 ® 2017 1 WAGABOX ® WAGABOX® units c. 700kt in operation at CO2eq avoided year-end 2026 €200m €400m Revenue in Run-rate annual 2026 revenue(1) secured 27 Note: (1) Cor
Slide 28: Waga Energy stock outperforming the market
04 P E R S P E C T I V E S WAGA ENERGY STOCK OUTPERFORMING THE MARKET As of Sept-30, 2022 • Market cap.: EUR 655 million • Perf. YTD: +13% 28
Slide 29: Disclaimer
DISCLAIMER DISCLAIMER IMPORTANT NOTICE Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding Waga