Alerion Clean Power S.p.a. · MIL:ARN
Alerion Clean Power — Investor Presentation (April 2021)
47 slides from Alerion Clean Power's investor presentation, Apr 16, 2021
Slide 1: Investor Presentation
0 Investor Presentation 16 April 2021
Slide 2: Disclaimer
1 DISCLAIMER THIS PRESENTATION AND ANY OTHER INFORMATION PROVIDED (THE “PRESENTATION”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION, WHICH HAS BEEN PREPARED BY ALERION CLEAN POWER S.P.A. (THE “COMPANY”), IS PRELIMINARY IN NATURE AND IS SUBJECT
Slide 3: Agenda for Today
2 AGENDA FOR TODAY 1 Introduction to Alerion Clean Power 2 Alerion Today: 750MW Italian Wind Player 3 FY2020 Highlights and Review of Alerion Historical Performance 4 Strategy 2021-2023: Growing to a 1.5GW European RES Player 5 Closing Remarks
Slide 4: Introduction to Alerion Clean Power
1 Introduction to Alerion Clean Power
Slide 5: Alerion At-a-Glance
4 ALERION AT-A-GLANCE LEADING RENEWABLE ENERGY PLAYER, OWNER AND OPERATOR IN ITALY COMPANY OVERVIEW KEY FIGURES Established in 2003, Alerion Clean Power S.p.A. (“Alerion”) is one of the main independent players, owners and operators active on onshore wind in Italy and other European markets € 109.
Slide 6: More than 25 years of success in the renewable industry
5 MORE THAN 25 YEARS OF SUCCESS IN THE RENEWABLE INDUSTRY Alerion Clean Power Stock Price1 (€) 1994 2002-2008 2010-2011 Gostner brothers Fri-El Green Construction of the founded Ener.CO Power signs a joint first solid biomass S.r.l., specializing venture site in Sicily, in in production, partnership
Slide 7: Fri-El Group Overview
6 FRI-EL GROUP OVERVIEW LEADING ITALIAN OPERATOR SPECIALIZED IN THE PRODUCTION OF RENEWABLE ENERGIES Gross Installed Capacity2: 1,074 MW Administrative services RENEWABLE TECHNOLOGIES Number of SPVs and gross installed capacity OTHER WIND ONSHORE BIOGAS AND BIOMASS HYDRO 23 SPVs 23 SPVs Liquid 1 SPV
Slide 8: Wind Farm Portfolio Overview
7 WIND FARM PORTFOLIO OVERVIEW HIGH-QUALITY ASSET PORTFOLIO LOCATED IN 7 ITALIAN REGIONS AND 2 OTHER EUROPEAN COUNTRIES ITALIAN AND OTHER EU WIND FARMS GEOGRAPHICAL OVERVIEW Number of Gross Net Capacity Avg prod. SPAIN Plant Location Operating Capacity ITALY (MW) L3Y (GWh) Comiolica SPVs (MW) Apulia
Slide 9: Solid reference shareholders, experienced industrial partner and management team
8 SOLID REFERENCE SHAREHOLDERS, EXPERIENCED INDUSTRIAL PARTNER AND MANAGEMENT TEAM FRI-EL SHAREHOLDING STRUCTURE FRI-EL KPIs ALERION’S MANAGEMENT TEAM Wind 951MW STEFANO JOSEF GOSTNER GEORG VAJA FRANCAVILLA Biogas 23MW Hydro 7MW President & CEO Executive Director CFO & Vice President Liquid Biomass
Slide 10: Alerion ESG Sustainability Framework
9 ALERION ESG SUSTAINABILITY FRAMEWORK COMMITMENT TO SOCIAL AND GOVERNANCE SUSTAINABLE TARGETS1 SOCIAL Strong support of local communities thanks to: ENVIRONMENT — Investment into projects related to social issues — Employment of local people and promotion of local Total emissions avoided every
Slide 11: Alerion Today: 750MW Italian Wind Player
2 Alerion Today: 750MW Italian Wind Player
Slide 12: Alerion Today: 750MW Italian Wind Player
11 ALERION TODAY: 750MW ITALIAN WIND PLAYER Leading Renewable Player with a Focused Strategy in a Growing Market Growth and Operational Excellence Underpin Strong Profitability 835MW of Visible Near-Term Growth Solid Reference Shareholders, Experienced Industrial Partner and Management Team Platform
Slide 13: Leading renewable player with a clear and focused strategy
12 LEADING RENEWABLE PLAYER WITH A CLEAR AND FOCUSED STRATEGY ITALIAN WIND GROSS INSTALLED CAPACITY (MW) 1.093 1.093 971 Capacity CAGR 2017–2020: +34% 854 772 771 703 475 393 362 345 294 307 292 292 282 282 272 272 238 1 2 2017 Latest Public Information Leading industrial player in Italy with disc
Slide 14: Operational excellence in Italy drives continuously improving performance
13 OPERATIONAL EXCELLENCE IN ITALY DRIVES CONTINUOUSLY IMPROVING PERFORMANCE AVERAGE ANNUAL WIND SPEED MAP ALERION’S O&M COSTS/MW LOWER AT 25 METERS ABOVE SEA LEVEL ALERION’S TURBINE SUPPLIERS (2020) THAN NATIONAL AVERAGE €k/MW 1 1 4% 4% 2 9% 2 9% Alerion leverages on FRI-EL deep 17 industrial exp
Slide 15: Strong growth outlook for renewables in Europe and Italy
14 STRONG GROWTH OUTLOOK FOR RENEWABLES IN EUROPE AND ITALY SUSTAINED BY REDUCING LEVELIZED COST OF ENERGY (LCOE) GROSS INSTALLED CAPACITY IN ITALY – GW EUROPEAN AND ITALIAN REGULATORY FRAMEWORK Wind power representing a In December 2018, the new revised Renewables energy 300 great opportunity for
Slide 16: Technological improvements lead to superior future performance
15 TECHNOLOGICAL IMPROVEMENTS LEAD TO SUPERIOR FUTURE PERFORMANCE 2010 Today Turbine Size (MW) 2.0 3.0 4.0 5.5 +2.5x Diameter (m) ~80 ~100 ~125 ~160 +2.0x Swept Air (sqm) ~5,000 ~8,000 ~12.000 ~20,000 +4.0x Capex / MW (€k) ~1,000 ~900 ~800 ~650 -35% Capex / MW (€k) ~5,000 ~600 -88% Pipeline set to d
Slide 17: Platform to deliver next stage of value creating growth
16 PLATFORM TO DELIVER NEXT STAGE OF VALUE CREATING GROWTH INSTALLED CAPACITY GROWTH (MW) PIPELINE: Leveraging on Alerion’s platform exceeding >2GW 1.5GW in 2023 to pursue further growth opportunities ~ ~ PARTNERSHIPS: Support of third-party capital to optimise balance sheet and returns ENVIRONMENTA
Slide 18: Leading renewable player with a clear and focused strategy
17 LEADING RENEWABLE PLAYER WITH A CLEAR AND FOCUSED STRATEGY 2021-2023 BP PILLARS Growth: Target 1.5GW by 2023, with average additions p.a. >250MW Diversification: Access to selected attractive markets and technologies (solar) Returns Discipline: Selective approach to potential projects targeting 8
Slide 19: FY2020 Highlights and Review of Alerion Historical Performance
3 FY2020 Highlights and Review of Alerion Historical Performance
Slide 20: 2020 Business Highlights
19 2020 BUSINESS HIGHLIGHTS STEADY GROWTH IN 2020 UNDERPINNED BY A SOUND OPERATIONAL PERFORMANCE OPERATIONAL HIGHLIGHTS Installed capacity: ~751 MW (564 MW as of 31st December 2019), +33% Annual production: >1 TWh (0.7 TWh in 2019), +60% FINANCIAL HIGHLIGHTS Revenues: € 109.3M (€ 71.8M in 2019), +52
Slide 21: Proven track-record of growth
20 PROVEN TRACK-RECORD OF GROWTH Anzi (16) Wind Parks Grottole (54) Villacidro (31) Fri-El Campidano (70) Additions Nulvi-Tergu (30) Morcone-Pontelandolfo (52) Regalbuto (50) (Gross Installed S. Basilio (25) Albareto (20) Comiolica (36) Capacity - MW) Ururi (26) Ricigliano (3
Slide 22: Historical key financials highlights in context
21 HISTORICAL KEY FINANCIALS HIGHLIGHTS IN CONTEXT (€M) TOTAL REVENUES EBITDA1 EBITDA 76.5% 76.9% 75.1% 74.2% Margin 109 72 81 55 59 54 42 45 2017A 2018A 2019A 2020A 2017A 2018A 2019A 2020A NET RESULT FOR THE YEAR NET FINANCIAL POSITION Leverage 4.1x 5.0x 7.6x 6.1x 32 491 21 407 174 227 5 3 2017A 20
Slide 23: Gross Financial Debt Composition
22 GROSS FINANCIAL DEBT COMPOSITION Gross Financial Debt Breakdown Gross Financial Debt Maturity (€M) Bank Debt Other Financial 3% Debt 2% 482 Leases 8% Gross Debt: €625M 87 Project 32 25 Financing Bonds 56% 31% 2021 2022 2023 Beyond 2023 Source: Company Information
Slide 24: Strategy 2021-2023: Growing to a 1.5GW European RES Player
4 Strategy 2021-2023: Growing to a 1.5GW European RES Player
Slide 25: 835MW of visible near-term growth
24 835MW OF VISIBLE NEAR-TERM GROWTH ALERION HAS IDENTIFIED A HIGH-QUALITY PIPELINE OF RES PROJECTS Operating in Acquisition 9% Early Stage Under Construction 835MW of high-quality near-term Development 7% projects identified across wind and 26% solar in Europe Near-Term Projects to 2023: 835MW Re
Slide 26: From an Italian onshore wind to a European RES player
25 FROM AN ITALIAN ONSHORE WIND TO A EUROPEAN RES PLAYER (WIND + PV) >3GW Excess pipeline 2020 +835 MW 2023 Cumulative 21-23 Capacity Additions 100% 19% 81% ~1.5 Wind Wind Solar 1 GW ~751 +255MW MW +221MW +200MW +59MW 1% +100MW 6% Bulgaria Spain 65% Italy 29% 5% 2% Romania Bulgaria Spain 94% Italy 5
Slide 27: Full visibility of near term projects
26 FULL VISIBILITY OF NEAR TERM PROJECTS +535 MW +300 MW 2021-2023 2021-2023 Additions Additions ITALY ROMANIA 221 MW 255 MW ITALY ROMANIA SPAIN 100 MW 200 MW k 59 MW 33% Operating in Acquisition3 60% 40% 39% 28% Early Stage Ready to Build Advanced Under Development4 49% Within 51% Stage 100% Ready
Slide 28: Capex for growth 2021-2023
27 CAPEX FOR GROWTH 2021 – 2023 (€M) CUMULATIVE CAPEX FOR THE 2021-2023 PERIOD ~115 ~694m 17% ~62 ~65 9% ~240 9% 35% ~213 31% Italy Other Europe Spain Italy Other Europe 2021-2023 Wind Wind Wind PV PV Source: Company Information.
Slide 29: Sources and Uses 2021-2023
28 SOURCES AND USES 2021 – 2023 (€M) CASH OUT CASH IN ~37 ~803 ~72 ~694 New ~400 Funding Available ~95 Cash on Balance Operating ~308 Cash Flow pre-interest Capex Net Dividends Interest Source: Company Information.
Slide 30: Focus on Capital Increase
29 FOCUS ON CAPITAL INCREASE Capital increase with exclusion of pre-emptive rights Listing market Mercato Telematico Azionario (“MTA”) of Borsa Italiana Indicative Offer size Up to €300m Use of Proceeds Capital increase is aimed at supporting the growth plan whilst maintaining a strong capital struc
Slide 31: Sustained top-line growth with active strategy to manage price volatility
30 SUSTAINED TOP-LINE GROWTH COUPLED WITH ACTIVE STRATEGY TO MANAGE MARKET PRICE VOLATILITY REVENUES (€M) POWER PRICES CURVES (NOMINAL) HEDGING STRATEGY Gross Installed Capacity (MW) 306 564 920 1,544 € / MWh Q3'21: Q4'21: 62.9 Of which 298 523 673 558 60.2 Incentivised (MW) 70.2 71.0 53.2 56.3 Li
Slide 32: Alerion's Journey to 2023
31 ALERION’S JOURNEY TO 2023 GROSS INSTALLED CAPACITY (MW) EBITDA (€M) 2020 - 2023T KPIs Net Installed EBITDA 80% 74% Capacity (MW) ~836 ~1,494 Margin ~800 MW+ vs.2020 ~1,544 ~160 ~108 ~920 25% 20-23T EBITDA CAGR 2021 Guidance 2023 Target 2021 Guidance 2023 Target NET FINANCIAL POSITION (€M) NET EAR
Slide 33: Clear EBITDA trajectory to 2023
32 CLEAR EBITDA TRAJECTORY TO 2023 (€M) ~2x EBITDA ~41 in 3 years ~€160m 41% Expiry of incentives on 133.5MW more than Near Term 59% compensated in the overall Projects Existing existing portfolio by increased production, higher electricity ~19 ~5 Assets prices and incentives vs. 2020 2023 Near Term
Slide 34: Closing Remarks
5 Closing Remarks \
Slide 35: Fastest growing asset base in European renewable space
34 FASTEST GROWING ASSET BASE IN EUROPEAN RENEWABLE SPACE (%CAGR) ~1.5 32 10 2 3 30 68 60 4 GW GW GW GW GW GW GW GW GW ~30% 21% 20% 13% 12% 12% 12% 11% 5% >0.3GW/Y 4.0GW/Y 1.2GW/Y 0.2GW/Y 0.3GW/Y 2.0GW/Y 6.3GW/Y 4.7GW/Y 0.2GW/Y Alerion EDPR Neoen Falck Encavis Orsted Enel Iberdola ERG 2021-23 2021-2
Slide 36: Leading renewable player with a clear and focused strategy
35 LEADING RENEWABLE PLAYER WITH A CLEAR AND FOCUSED STRATEGY Focused expansion into European wind and solar aiming to achieve 1.5GW by 2023 >2x Installed Target 400MW additions per year beyond 2023 while maintaining returns RES Capacity in 3 years and balance sheet discipline Leverage industrial ca
Slide 37: Thank You
ALERIONCLEANPOWER a i 3 THANK YOU
Slide 38: Appendix
A Appendix = —
Slide 39: Wind Farm Portfolio Details
38 WIND FARM PORTFOLIO DETAILS ITALIAN AND OTHER EU WIND FARMS N um be r o f G ro s s C a pa c it y N e t C a pa c it y S t a rt o f R e m a ining lif e E nd o f A v g pro d. P la nt Lo c a t io n T e c hno lo gy Stake pla nt s ( M W) ( M W) o pe ra t io ns ( ye a rs )1 inc e nt iv e s L3 Y ( G Wh)
Slide 40: Alerion's Key Reported Metrics
39 ALERION’S KEY REPORTED METRICS 2017 2018 2019 2020 Operational Metrics Installed Capacity (MW) 306 335 564 751 Number of Plants 11 14 17 27 Average Plant size (MW) 28 24 33 33 Annual Production (MWh) 413,609 433,789 695,236 1,111,576 P&L Metrics Revenue €55m €59m €72m €109m Revenue | o/w from inc
Slide 41: Income Statement
40 INCOME STATEMENT (€ mn) 2017 2018 2019 2020 Electricity sales 19.2 22.6 31.5 37.2 Revenues from incentive tariff 32.9 33.3 38.5 63.4 Operating Revenue 52.2 55.9 70.0 100.6 Other revenues and income 2.7 3.2 1.8 8.7 Total revenue 54.9 59.0 71.8 109.3 Staff costs 2.6 2.4 2.2 2.5 Other operating cost
Slide 42: Balance Sheet (Assets)
41 BALANCE SHEET (ASSETS) (€ mn) 2017 2018 2019 2020 Total intangible assets 62.7 83.2 148.5 198.1 Property, plant and equipments 191.4 276.6 415.3 455.6 Equity investments in joint ventures measured using the equity 17.8 17.8 18.4 50.0 method Financial receivables and other non-current financial as
Slide 43: Balance Sheet (Liabilities & Shareholders' Equity)
42 BALANCE SHEET (LIABILITIES & SHAREHOLDER’S EQUITY ) (€ mn) 2017 2018 2019 2020 Non-current financial liabilities 157.9 221.4 578.8 534.9 Non-current payables for derivatives 7.6 6.3 8.1 6.5 Post-employement benefits and other staff-related provisions 1.2 1.0 0.7 0.6 Provisions for future risks an
Slide 44: Cash Flow Statement
43 CASH FLOW STATEMENT (€ mn) 2017 2018 2019 2020 Net profit (loss) for the period attributable to owners of the parent 5.0 3.5 21.1 30.9 Net profit (loss) for the period attributable to non-controlling interests (0.1) (0.1) 0.3 0.6 Depreciation, amortization and write-downs 20.6 20.3 26.2 40.7 Fina
Slide 45: Overview of on-shore wind incentive framework in Italy
44 OVERVIEW OF ON-SHORE WIND INCENTIVE FRAMEWORK IN ITALY Qualification Key Features Alerion Portfolio • Feed in Premium = (180 – PUN) x 0.78 Feed in • 522.65 MW of gross installed capacity Plants in operation before 2013 • Revenues = Electricity Sale Price + FIP Premium (FIP) as of December 2020 •
Slide 46: Spanish and Romanian Renewables Landscape
45 SPANISH AND ROMANIAN RENEWABLES LANDSCAPE SPAIN ROMANIA Spain’s 2030 National Energy Plan (PNIEC) targets Romania’s National Integrated Plan for Energy and Climate Change 2021-30 targets a quota of 30.7% for renewable energy within the — Deployment of c.60GW of renewables over the next 10 yea
Slide 47: Continuous support from Fri-El to Alerion through intercompany services
46 CONTINUOUS SUPPORT FROM FRI-EL TO ALERION THROUGH INTERCOMPANY SERVICES FRI-EL Service FRI-EL Trading Through FRI-EL Service: Directly: Through FRI-EL Trading: • Operations & Maintenance • Administrative Services • Energy Sales and Trading Services • Asset Management Activities • Project financin
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