Scatec Asa · OSL:SCATC
Scatec Asa — Q4 2022 Earnings Presentation
24 slides from Scatec Asa's earnings presentation, February 2023
Slide 1: Fourth quarter 2022: Optimising portfolio and preparing for further growth
Fourth quarter 2022 Optimising portfolio and preparing for further growth CEO, Terje Pilskog & CFO, Mikkel Tørud
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: Capturing growth opportunities in the green transition
Capturing growth opportunities in the green transition 3
Slide 4: 2022: Strong operational performance and accelerating growth
2022: Strong operational performance and accelerating growth NOK 2.6 billion total prop. EBITDA (-5% YoY) • Strong operational performance throughout the year • Construction start of 1.2 GW in South Africa, Brazil and Pakistan NOK 2.5 billion • Announced sharpened strategy and new growth targets equ
Slide 5: 2022: Strong ESG performance
2022: Strong ESG performance 4.7 • Top ESG ratings received Million tonnes GHG emissions avoided • Environmental and social assessments finalised for all new projects (100%) • 80+ community initiatives across our markets 0.7 • Solar, wind and hydropower activities fully aligned with EU Taxonomy LTIF
Slide 6: Optimising portfolio and preparing for further growth
Optimising portfolio and preparing for further growth • Q4’22 proportionate power production EBITDA increased 7.6% to NOK 821 million (763) • Continued high construction activity • Signed PPAs for round 5 in South Africa, 273 MW • Proposes dividends of NOK 1.94 per share for 2022 and adjusted divide
Slide 7: Power production impacted by weather variations
Power production impacted by weather variations Power production, GWh Share of power production Q4’22 GWh -6% 1,100 1,047 Other 1,000 979 15% 236 Philippines Honduras 281 2% 29% 800 Ukraine 4% 263 600 188 979 Laos 8% GWh 400 548 510 11% 13% 200 Egypt South Africa 7% 11% 0 Malaysia Q4’21 Q4’22 Uganda
Slide 8: Another strong quarter in the Philippines
Another strong quarter in the Philippines Power production, GWh 2021 2022 • Power production rising 19% on strong hydrology 339 • EBITDA up 21% driven by increased production and continued 281 high power prices 214 236 168 • FY 2022 EBITDA of NOK 888 million slightly above last year (874) 135 100 11
Slide 9: Project pipeline and backlog of 16.7 GW across renewable technologies
Project pipeline and backlog of 16.7 GW across renewable technologies - more than 85% held in our focus markets Project backlog Project pipeline Project backlog & pipeline 2% 10% 15% 27% 17% 39% 1 GW 15.7 GW 16.7 GW 73% 32% 85% Wind Hydro Release Focus markets Other Solar Green Hydrogen Focus on lar
Slide 10: High construction activity in South Africa, Brazil and Pakistan
High construction activity in South Africa, Brazil and Pakistan • Modules substructure foundation and grid • Drainage, foundations, levelling and road • Groundworks, piling and tracker connection activities works installation ramped up • +500 people on site • +500 people on site • +700 people on sit
Slide 11: Sale of Upington for a consideration of NOK 569 million
Sale of Upington for a consideration of NOK 569 million - releasing capital from value accretive transaction to finance further growth Transaction summary • Sale of 42% equity stake in 258 MW power plant • Total consideration of ZAR 979 million (NOK 569 million) • Part of sharpened strategy to optim
Slide 12: Our strategy: Develop, build, own and operate renewable energy in emerging markets
Our strategy: Develop, build, own and operate renewable energy in emerging markets Grow Advance Optimise Renewables Green Hydrogen Portfolio 12
Slide 13: Financial review
Financial review Mikkel Tørud, CFO
Slide 14: Proportionate financials – all segments
Proportionate financials – all segments NOK million Q4’22 vs Q4’21 Revenues Q4’22 Q4’21 FY’22 FY’21 • Revenues increased based on higher Power Production 1,262 1,073 4,521 3,890 power sales in the Philippines and Services 85 66 312 260 D&C revenues from construction Development & Construction 627 18
Slide 15: Consolidated statement of profit and loss
Consolidated statement of profit and loss Q4’22 vs Q4’21 NOK million • Revenues broadly in line with the Q4’22 Q4’21 FY’22 FY’21 same quarter last year Revenues 773 762 3,002 3,038 Net income/(loss) from JVs and associated companies 220 276 749 765 • Net income from JVs reduced due to lower water vo
Slide 16: A solid financial position
A solid financial position Consolidated financial position (NOK million) • Available undrawn credit facilities NOK 1.8 billion As of 31.12.2021 As of 31.12.2022 • Group* book equity of NOK 10.6 billion 36,730 36,730 • Solid long term cash flow supporting group level debt 33,030 33,030 6,512 8,803 •
Slide 17: Q4'22 movement of Group's free cash
Q4’22 movement of Group’s free cash NOK million 13 -105 -18 Equity invested 402 Development of backlog & mature pipeline in projects under construction EPC related working -1,379 capital movements -152 -158 3,143 1,743 End Q3 22 Distributions Cash flow to Cash flow to Cash flow to Working Project Pr
Slide 18: 2022 dividend proposal
2022 dividend proposal Proposed dividend for 2022 • 2022 dividend based on current policy to pay minimum 25% of free cash distributed from producing power plants • Scatec received distributions from operating plant companies of NOK 1,231 million in 2022 • The Board of Directors proposes a dividend o
Slide 19: Outlook
Outlook Power Production1) Q4’22 Q1’23E FY2023E Production - GWh 979 800-900 3,500 – 3,900 EBITDA - NOK million 821 2,700 – 3,000 • FY 2023 EBITDA estimates includes NOK 90 million from Ukraine and is adjusted for maintenance in Laos in Q1’23 and sale of the Upington asset • Q1’23 EBITDA in the Phil
Slide 20: Appendix
Scate improving our future
Slide 21: Overview of change in net debt during the quarter
Overview of change in net debt during the quarter Project and Group level net interest bearing debt NOK billion Q3’22 Repayments New debt Change in Currency Q4’22 cash effects Project level -12.7 0.2 -0.3 0.0 0.6 -12.1 Group level* -5.3 - - -1.3 0.4 -6.2 Total -18.0 0.2 -0.3 -1.3 1.0 -18.4 • Repayme
Slide 22: Proportionate financials – Power Production
Proportionate financials – Power Production Q4’22 vs Q4’21 • Revenues increase based on higher NOK million Q4’22 Q4’21 FY’22 FY’21 sales & prices in the Philippines and foreign currency effects, higher revenue from Ukraine and Power production (GWh) 979 1,047 3,898 3,823 contribution from new Releas
Slide 23: Power Production financials – proportionate
Power Production financials – proportionate Q4’22 Q3’22 Q4’21 2022 2021 Power production (GWh) Solar & Wind 510 542 547 2,101 2,001 Hydro the Philippines 281 339 235 855 729 Hydro Laos and Uganda 188 254 263 942 1,092 Total 979 1,135 1,047 3,898 3,823 Revenues (NOK million) Solar & Wind 535 530 509
Slide 24: Our asset portfolio
Our asset portfolio Plants in operation Capacity Economic Under construction Capacity Economic Project pipeline Capacity Share in % MW interest MW interest MW Theun Hinboun, Laos 525 20% Kenhardt, South Africa 540 51% Solar 5,005 32% Magat, Philippines 388 50% Mendubim, Brazil 531 33% Wind 6,223 39%