Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — FY2019 Earnings Presentation
31 slides from Greencoat Renewables's earnings presentation, Mar 2, 2020
Slide 1: Greencoat Renewables PLC 2019 Full Year Results
Greencoat Renewables PLC 2019 Full Year Results STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been prepared and issued by Greencoat Renewables PLC (the “Company” or “Greencoat Renewables”). While this Presentation has been prepared in good faith, the information contained in it has not been independently verified and does not purport to b
Slide 3: 2019 Highlights
2019 Highlights 1,154GWh Power generation 4% below budget, due primarily to higher than budgeted curtailment Power generation €48.8m1 Strong cash generation with dividend cover of 1.7x1 Net cash generation €29.2m / 6.03c per share 2020 target dividend 6.06c per share Dividends paid in the period €1,
Slide 4: Operational Performance
SECTION 1 Operational Performance STRICTLY CONFIDENTIAL
Slide 5: Diversified Portfolio
Diversified Portfolio Diversified portfolio underpinned by 10+ years’ REFIT and strong operating performance GRP Key Wind Farm Turbines REFIT % Net • Wind speed broadly on end Interest 15 MW budget 1 Knockacummer Nordex Dec 2027 100% 100.0 • Constraint/ Curtailment 2 Killhills Enercon Mar 2030 100%
Slide 6: Asset Management and Ongoing Performance Improvement
7 Asset Management and Ongoing Performance Improvement • Turbine analysis and optimization: Portoflio review Asset Optimisation followed by deep-dive for 5 sites. Turbine upgrade installations in Q1 2020. Forestry management opportunities in discussion • DS3 (System services): New services contracte
Slide 7: Active ESG Programme to Deliver Sustainable Returns
Active ESG Programme to Deliver Sustainable Returns Environmental Social Governance • Over 430,000 CO2 tonnes offset, • €674,200 committed to c. 90 Experienced, • Over 430,000 CO2 tonnes • €674,200 committed to c. 90 •• Experienced,independent and independent equivalent to over 274,762 homes communi
Slide 8: Financial Performance
SECTION 2 Financial Performance STRICTLY CONFIDENTIAL
Slide 9: Greencoat Renewables – Simple and Robust Business Model
Greencoat Renewables – Simple and Robust Business Model Greencoat Renewables Model 2019 Convert wind/solar to energy 15 wind farms 462MW 2019 investment Equity Electricity sold to grid €152m 1,154 GWh Debt Group net FCF €48.8m (1) Cash €11.4m Reinvestment €29.2m Dividends €8.2m PF repayment 1Net cas
Slide 10: Financial Performance (1/2)
Financial Performance (1/2) For the year ended 31 December 2019 Group and wind farm SPV cash flows Net (1) Gross (1) €’000 €’000 Net cash generation 40,471 48,683 Dividends paid (29,217) (29,217) SPV level Capex & PSO Cashflow (2) (18,942) (18,942) SPV level debt repayment - (8,212) Acquisitions (3)
Slide 11: Financial Performance (2/2)
Financial Performance (2/2) For the year ended 31 December 2019 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 92,878 92,878 Operating expenses (26,305) (26,305) Tax / VAT (46) (46) Wind farm operating cashflow 66,527 66,527 SPV level debt interest (4,982) (4,982) SPV level debt repay
Slide 12: Net Asset Value
Net Asset Value €392.8m €148.7m €(14.0m) €(6.7) €5.5m €123.8m €650.0m Key Considerations 700.0 • NAV decreased by 0.3c over 600.0 the period, with key drivers 500.0 -5c significant reduction in power price forecast 400.0 -1c CPI 300.0 +2c PPA contractual savings +3c reduction in blended 200.0 discou
Slide 13: REFIT and Power Price
REFIT and Power Price REFIT helps protects GRP from wholesale power price volatility III I1 1 1 REFIT Protection I1 Power Price Decline in 2019 III Contracting Upside • 97% of revenue contracted under Material decline in power price curve during 2019 (c. 8%), • Emergence in Ireland and Europe of REF
Slide 14: 2019 Acquisitions
SECTION 3 2019 Acquisitions STRICTLY CONFIDENTIAL
Slide 15: 2019 Investments
7 2019 Investments C A Gortahile, 20MW • County Laois – 8 Nordex N90 2.5MW turbines • Project operational since August 2010 B • Contracted under REFIT I B Killala 17MW D • County Mayo – 5 Siemens 3.4MW turbines • Project operational since July 2019 A • Contracted under REFIT II C Beam Hill 14MW • Co
Slide 16: 2020 Subsequent Acquisition: Letteragh Wind Farm
7 2020 Subsequent Acquisition: Letteragh Wind Farm Letteragh wind farm – 14.1MW Seller Local Developer Size 14.1MW Turbines Enercon E92 COD December 2019 PPA SSE Turbine O&M Enercon O&M Management Statkraft • Continuing the strategy to consolidate the small and medium size REFIT assets • High load f
Slide 17: Outlook & Pipeline
SECTION 3 Outlook & Pipeline STRICTLY CONFIDENTIAL
Slide 18: Irish Market Developments
Irish Market Developments Republic of Ireland Cumulative Installed Wind Power 2014-2020 (GW) 1.9GW installed between 2014 and 2020 4,500 4,000 4.2 • Market growth has developed as planned 3,500 3.7 • REFIT has remained a very stable policy 3,000 3.4 • Market now repositioning for RESS 2.8 auctions 2
Slide 19: Datacentre Growth in Ireland – Corporate PPA Opportunity
Datacentre Growth in Ireland – Corporate PPA Opportunity Strong power demand growth driven by a robust pipeline of new datacentre loads Datacentre in Ireland - to increase Irish electricity demand by c. 30% by end of decade Total Electricity Requirement forecast for Ireland 2019 - 2028 45 29% of all
Slide 20: Climate Action Plan / RESS Auction
Climate Action Plan / RESS Auction Climate Action Plan (2020 – 2030) RESS Auction (2020) 2020 2030 • First RESS auction scheduled to take place in H2 2020 Estimated Estimated • Projects are expected to go through pre-qualifying process renewable capacity renewable capacity in H1 2020 • 4.5 GW onshor
Slide 21: Continental European Renewable Opportunities
Continental European Renewable Opportunities • Greencoat Renewables now positioned to access very large pool Wind and Solar Capacity (GW) of assets to seek best value 350 – 30x the size of Ireland 300 43 – Compelling growth profile with in excess of 150GW new built by 250 5 2030 71 200 GW • Diversif
Slide 22: Wider Nordic Opportunity
7 Wider Nordic Opportunity Nordics market fully integrated and Euro denominated revenue • Euro equivalent market with 19GW of existing capacity (including Finland) Norway ‒ Strong interconnection between Nordics and Europe Onshore Wind 1.7 GW Solar 0.1 GW ‒ c75% of the region’s wholesale electricity
Slide 23: Capital Structure
SECTION 4 Capital Structure STRICTLY CONFIDENTIAL
Slide 24: Capital Structure to Drive Growth
Capital Structure to Drive Growth Equity Group level debt 1200 Long term, fixed rate Project Finance debt €1,017m 1000 800 600 GAV (€m) 400 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2019 2020 €148m Cloosh Valley Gortahile Killala Beam Hill €125m Letteragh capita
Slide 25: Conclusion
SECTION 5 Conclusion STRICTLY CONFIDENTIAL
Slide 26: Delivering on Strategy – Milestones since IPO
Delivering on Strategy – Milestones since IPO Listing ATTRACTIVE DIVIDEND: • • Total annual dividend of 6.03c paid for 2019 financial year Robust dividend cover of 1.7x(1) ACQUISITION OF VALUE-ACCRETIVE ASSETS: Assets: 2 wind farms Capacity 137MW • • Invested in thirteen wind farms, diversifying t
Slide 27: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 28: Irish Secondary Wind Market Overview
Irish Secondary Wind Market Overview Secondary Market since listing >1.1GW priced • Secondary wind market remains active and growing • Incidence of off-market and bilateral transactions Coillte increasing Local Developers • A lot of developers 339MW BlackRock focused on getting projects acquired Imp
Slide 29: Greencoat Renewables – Uncorrelated Returns
Greencoat Renewables – Uncorrelated Returns 140 130 120 • TSR of 33.7% (118.5 share price) since IPO 110 (13.8% annualised) • Dividends paid 100 of 13. 1c 90 80 Jul 17 Oct 17 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 Oct 19 ISEQ Index TSR Greencoat Renewables TSR Greencoat Renewables Share Pr
Slide 30: Targeted Approach to European Markets
Targeted Approach to European Markets Belgium Finland France Germany Netherlands 7.2 15.4 2.2 4.7 24.6 71.3 104.3 135.8 8.6 26.9 GW GW GW GW GW GW GW GW GW GW Overview: Primarily mix of Overview: Primarily Overview: Mix of onshore Overview: Mix of onshore, Overview: Mix of onshore, onshore and solar
Slide 31: GREENCOATS -&
Md, GREENCOATS -& RENEWABLES &% = % NS aS