Aker Horizons ASA · SWB:7QF
Aker Horizons ASA — Q4 2022 Earnings Presentation
44 slides from Aker Horizons ASA's earnings presentation, Feb 16, 2023
Slide 1: Fourth-quarter results 2022
Fourth-quarter results 2022 16 February 2023
Slide 2: Main developments
– PR Main developments Aker Carbon Capture matures projects and secures multiple studies Key equipment installed in both Brevik and Twence Signed LOI for delivery of two Just Catch units; investment decision expected in Q2 Pre-FEED study for Viridor, pre-engineering study for ST1 and feasibility stu
Slide 3: Aker Horizons accelerating Net Zero
Aker Horizons accelerating Net Zero IEA Net Zero 2050 pathway Gt CO2 H2 2020 Electrification Wind and solar Hydrogen CCUS Energy efficiency Bioenergy Behavior, Other fuel shifts 2050 avoided demand 3
Slide 4: Aker Horizons focusing on three Net Zero levers
Aker Horizons focusing on three Net Zero levers Renewable energy Carbon capture Hydrogen hubs Decarbonize cement, gas-, biomass- and Decarbonize steel, transportation, fertilizer Backbone of decarbonization waste-to-energy and other industrial processes Mainstream Renewable Power Aker Carbon Capture
Slide 5: Portfolio overview
Portfolio overview
Slide 6: Aker Carbon Capture
Aker Carbon Capture Transforming the carbon capture industry through standardization • Carbon capture company delivering ready-to-use capture plants; two projects in construction • Validated certified market-leading proprietary technology with >50,000 operative hours Key projects Brevik CCS: the wor
Slide 7: Mainstream Renewable Power
Mainstream Renewable Power Building a Renewable Energy Major – driving the energy transition • Industry-leading wind capabilities across onshore, bottom-fixed and floating offshore • Market leader in Chile and South Africa renewables, and Vietnam offshore wind Key projects1 SN II 0.5 GW ScotWind Off
Slide 8: Aker Horizons Asset Development
Aker Horizons Asset Development Develop, build, own and operate hydrogen and derivates assets across hard-to-abate sectors • Holistic and integrated value chain approach to accelerate Net Zero • Large-scale projects enabled by strategic and financial partnerships Key projects Norway Key projects res
Slide 9: SuperNode
SuperNode Developing cable technology to enable the renewable electricity age • Superconductor technology to conduct electricity with no resistance • Proprietary cryostat designs, materials and heat management techniques Aker Horizons’ view ▪ The combination of significantly increasing our renewable
Slide 10: Aker Carbon Capture
Aker Carbon Capture
Slide 11: Aker Carbon Capture highlights
Aker Carbon Capture Highlights • Brevik CCS progressing with installation of key equipment onsite • Construction progressing at Twence CCU waste-to-energy project with key equipment currently being installed • Commenced Mobile Test Unit (MTU) campaign in Rana, Norway for Elkem Rana and SMA Mineral •
Slide 12: Accelerating market activity
Accelerating market activity Letter of Intent for large Pre-FEED study for Viridor’s Renewable synthetic Study for German carbon capture project Runcorn CCS methanol project with St1 chemicals company Röhm Two Just CatchTM units and Capture capacity of 1 million Pre-engineering study for Feasibility
Slide 13: Mainstream Renewable Power
Mainstream Renewable Power
Slide 14: Mainstream Renewable Power
Mainstream Renewable Power Leading pure-play renewable energy company Highlights • 1.1 GW now operational across Andes platform in Chile • Market challenges remain in Chile albeit at a reduced level in Q4 compared to previous quarters • Impairment of goodwill and intangible assets allocated to the A
Slide 15: Key sector themes
Key sector themes Challenges Opportunities Cost inflation moderating Political support increasing • Cost increases started in 2021 have now begun to stabilize as • Boost to long-term support for renewable energy with the broader commodity prices ease European Commission’s proposed 'Green Deal Indust
Slide 16: Key portfolio updates
Key portfolio updates Onshore wind and solar Chile • 1.1 GW energized in Chile and two remaining Andes projects targeted to complete construction in 2024 • Humboldt PPA renegotiations ended without agreement Colombia • Colombian solar project received environmental approval Africa • South African R5
Slide 17: Developments in Norway, South Korea and ScotWind
Offshore Wind Developments in Norway, South Korea and ScotWind Norway • Strategic floating wind partnership with Aker Solutions for Utsira Nord • MoU signed with Windport for Sørlige Nordsjø 2 South Korea – KF Wind • Completed geophysical survey in Q4 2022 ScotWind – Arven Offshore Wind • 1.8 GW awa
Slide 18: Chile update
Chile update Current market challenges • Mainstream was exposed to increased cost and pricing volatility in 2022 • Margin losses reduced in Q4 as Mainstream now has more assets in operation and spot prices were more favorable • Grid transmission remains dislocated, with operators exposed to differen
Slide 19: 21.7 GW net global pipeline
21.7 GW net1 global pipeline Global portfolio of 32 GW net Development Construction Operational Pre-Development 10+ GW 20.2 GW 0.6 GW 0.9 GW Change since +5.2 GW -0.7 GW +0.6 GW Q4 2021 Addition of ScotWind, Aker Offshore Wind projects in South +0.7 GW Andes Renovables projects reached COD Korea and
Slide 20: Asset Development
Asset Development
Slide 21: Aker Horizons Asset Development
Aker Horizons Asset Development Developing hydrogen-based projects Highlights • Leading industrial gas company joining the Rjukan green hydrogen project to realize early mover production, de-risking later scale-ups • Signed LOI for substantial offtake from the Rjukan project • Also engaging with ind
Slide 22: Attracting industrial partners to accelerate key projects
Attracting industrial partners to accelerate key projects Early mover blue-print hydrogen project and large-scale green ammonia RJUKAN NARVIK GREEN HYDROGEN TO DECARBONIZE EASTERN NORWAY LARGE-SCALE GREEN INDUSTRIAL HUB IN NORTHERN NORWAY • Signed MoU with leading industrial gas company to • Engagin
Slide 23: Introducing two new project opportunities to decarbonize Europe
Introducing two new project opportunities to decarbonize Europe Existing New BERLEVÅG NETHERLANDS – H2 Gateway TUNISIA 100 MW green ammonia • Opportunities for a phased development being matured • Following up on grid expansions plans and supporting studies to determine how much power / capacity is
Slide 24: Financials
Financials
Slide 25: Portfolio asset values
Portfolio asset values NOK million Net asset value1 Gross asset value distribution NOK million, 31 December 2022 NOK billion, 31 December 2022 AH % AH ownership value Aker Carbon Capture Cash Aker Carbon Capture 43.3% 3,022 14% Listed assets 3,022 19% Mainstream2 58.4% 12,169 Asset Development 100.0
Slide 26: Aker Horizons and holding companies per Q4 2022
Aker Horizons and holding companies per Q4 2022 NOK million Income statement Q4 2022 Balance sheet Q4 2022 Cash flow statement Q4 2022 Operating revenue 26 Interest-bearing assets 27 Cash flow from operating activities 3 Operating expenses (67) Investments1 14,910 EBITDA (41) Current operating asset
Slide 27: External financing
External financing NOK million Overview of financing facilities Debt maturities NOK million 1 5,257 Debt Total facility Key terms RCF Green bond Subordinated 6.0% coupon per annum, with deferral NOK 2,000m Convertible bond shareholder loan option against a 1.0% deferral fee Shareholder loan 3,500 Su
Slide 28: Liquidity and net interest-bearing debt
Liquidity and net interest-bearing debt NOK million Cash and undrawn RCF as of 31 December 2022 Net interest-bearing debt as of 31 December 2022 NOK million NOK million 9,373 Undrawn RCF 5,257 4,116 5,257 4,116 Interest-bearing debt 6,050 1,934 Undrawn RCF Cash Cash and undrawn RCF Debt Cash and IB
Slide 29: Capital structure at Q4 2022
Capital structure at Q4 2022 Key figures Capital structure NOK billion1 NOK billion1 21.2 Unlisted assets 18.2 Most recent transaction value or book value. Includes Mainstream, Covenant LTV2 = -10% Asset Development, SuperNode, (vs. covenant of 50%) 9.4 cash and other assets Per 31 December 2022 Und
Slide 30: Summary & outlook
Summary & outlook
Slide 31: EU stepping up incentives in response to the US IRA
EU stepping up incentives in response to the US IRA European Green Deal Industrial Plan • European Green Deal Industrial Plan launched by the European Commission as an answer to US Inflation Reduction Act to cut emissions, increase energy security and improve the competitiveness for European industr
Slide 32: Summary & outlook
Summary & outlook 2022 was a challenging year for green energy and green industry • Supply chain constraints, increased inflation and higher interest rates have slowed renewables development on a global scale • Investments in wind energy in Europe fell in 2022; high and volatile energy prices impact
Slide 33: Q&A
Q&A
Slide 34: Additional information
Additional information
Slide 35: Aker Horizons' 2025 ambitions
Aker Horizons’ 2025 ambitions 100bn 10 GW 25 Mt NOK in green in renewable CO2e p.a. investments power capacity emissions reduction1 1. The 25 Mt CO2e target consists of two main elements: 10 Mt CO2e of emissions reductions enabled through CCUS and ~15 Mt CO2e from avoiding emissions in electricity g
Slide 36: 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 37: Mainstream global pipeline of wind and solar assets
Mainstream global pipeline of wind and solar assets Pipeline reflects assets in development, construction and operational Capacity distribution by geography Offshore – US & EU APAC LatAm (2.6 GW) Development 0.9 GW (5.1 GW) Total net 0.9 GW 12% 24% 21.7 4% GW Asia Pacific Europe (0.9 GW) Development
Slide 38: Mainstream project overview
Mainstream project overview Gross Capacity Economic Net Capacity P50 Production PPA Volume PPA Tenor Asset Portfolio Country Technology FC COD PPA Tariff 5 (MW) interest (MW) (GWh/y) (GWh) (years) Operational Alena Andes – Condor Chile Wind 86 100% 86 291 2019 2021 USD 43 5281 20 Rio Escondido Andes
Slide 39: Mainstream project overview
Mainstream project overview Gross Capacity Economic Net Capacity PPA Volume PPA Term Asset Portfolio Country Technology Target FC Target COD PPA Tariff 6 (MW) interest (MW) (GWh) (years) Late stage development7 Caman 2 Andes - Copihue Chile Wind 58 100% 58 2025 2027 N/A N/A N/A Entre Rios Nazca - Hu
Slide 40: Mainstream financial information
Mainstream financial information Highlights Mainstream proforma accounts1 • Mainstream’s Income Statement is reflective of the principal activities of FY Q1 Q2 Q3 Q4 FY development, construction and operation of projects EURm 2021 2022 2022 2022 2022 2022 • Market challenges remain in Chile with ope
Slide 41: Aker Horizons Asset Development financial information
Aker Horizons Asset Development financial information AAD proforma accounts1 Highlights FY Q1 Q2 Q3 Q4 FY • Income statement reflective of the key activities in the period: NOKm – 2021 2022 2022 2022 2022 2022 Maturing the projects in the pipeline Revenue 14 3 4 - - 7 – Business development activiti
Slide 42: Aker Horizons Asset Development pipeline
Aker Horizons Asset Development pipeline Development Under construction and in Opportunities pipeline operation Identified projects and early-stage dialogue Active dialogue with end-users and co- Offtake and feedstock contracts with co-developers, offtakers or value chain developers and/or initial p
Slide 43: 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
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