Aker Horizons ASA · SWB:7QF
Aker Horizons ASA — Q3 2023 Earnings Presentation
34 slides from Aker Horizons ASA's earnings presentation, Nov 2, 2023
Slide 1: Third-quarter results 2023
Third-quarter results 2023 2 November 2023
Slide 2: Main developments
Main developments Aker Carbon Capture reports high level of commercial activity • Significant growth in pre-FEEDs and studies with order intake year to date of around 9m tonnes of CO2 p.a. • Signed Memorandum of Understanding (MoU) with Aramco • Order backlog grows to NOK 3.0 billion, up from NOK 1.
Slide 3: Aker Horizons focusing on three Net-Zero levers
Aker Horizons focusing on three Net-Zero levers Active owner of Developer of industrial- industry-leading scale decarbonization companies driving projects decarbonization Carbon capture Renewable power & transmission Hydrogen and derivatives Aker Horizons Asset Development 3
Slide 4: Aker Carbon Capture
Aker Carbon Capture
Slide 5: Aker Carbon Capture
Aker Carbon Capture Key commercial developments: • Significant growth in pre-FEEDs and studies with order intake year to date of around 9 million tonnes of CO2 per year • Signed Memorandum of Understanding (MoU) with Aramco • Strengthened the modular product portfolio with launch of Just Catch™ 400
Slide 6: Aker Carbon Capture and Aramco to explore CCUS partnership opportunities
Aker Carbon Capture and Aramco to explore CCUS partnership opportunities • The MoU will focus on carbon emissions reduction and removal through CCUS by offering modular carbon capture plants and aftermarket services • The parties also aim to assess the potential for developing local supply chains an
Slide 7: Significant growth in pre-FEEDs and studies
Significant growth in pre-FEEDs and studies Pre-FEED for Swedish energy company Study for mineral production facilities in the US • Based on Just Catch™ • Big Catch™ study • Targeted emissions of 200,000 tonnes CO2 • Targeted combined emissions of 1.5 million per year tonnes CO2 per year Study for b
Slide 8: Asset Development
Asset Development
Slide 9: Aker Horizons Asset Development announced in August
WIP Aker Horizons Asset Development Developing hydrogen-based projects Highlights • Statkraft joins as industrial partner in Narvik Green Ammonia, demonstrating attractiveness of project and adding complementary capabilities • 250 MW additional grid capacity allocated to Narvik Green Ammonia by Stat
Slide 10: Statkraft joins Aker Horizons in developing Narvik Green Ammonia
Statkraft joins Aker Horizons in developing Narvik Green Ammonia Large-scale ammonia production (part of Narvik green industrial hub) 420 kv Transformers Grid connection Substation H2 and NH3 production NH3 storage & jetty NARVIK GREEN AMMONIA CAPACITY: Up to 600 MW PLANNED FID: 2025 PARTNERS: Statk
Slide 11: Developments in key projects from the wider portfolio
Developments in key projects from the wider portfolio RJUKAN BERLEVÅG AUKRA NETHERLANDS (H2 GW) TUNISIA FIRST MOVER GREEN GREEN AMMONIA TO LARGE-SCALE BLUE LARGE-SCALE BLUE LARGE-SCALE GREEN HYDROGEN DECARBONIZE THE ARCTIC HYDROGEN HYDROGEN HYDROGEN PROJECT DATA PRODUCT: Green hydrogen PRODUCT: Gree
Slide 12: Norway uniquely positioned to supply European markets with low-carbon hydrogen
Norway uniquely positioned to supply European markets with low- carbon hydrogen and derivatives EU expected to become demand center for Norway with low-cost green baseload power and clean hydrogen by 2030 (Mt) proximity to demand centers – AAD well positioned Berlevåg (NO4) 20 Narvik (NO4) Target cl
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 fully operational across Andes platform in Chile • Market challenges in Chile continue with mitigation strategy progressing • Restructuring in Chile nearing conclusion with positive creditor vote on 2 October •
Slide 15: Organizational review
Organizational review Prioritizing 10 GW of projects Streamlining operations Leveraging global developer Reducing cost-base by over 30% competencies (>€45m) Capital recycling Partnering in core markets 15
Slide 16: Chile update
Chile update Regulation, market and Andes Regulation Andes operational • Energy Minister proposed an Energy Transition Bill (including • Reduced spot market exposure from mitigation strategy storage) to the senate in July 2023 including the need to accelerate the roll out of infrastructure, especial
Slide 17: Key portfolio updates: onshore wind and solar
Key portfolio updates Onshore wind and solar • 1.1 GW fully operational across Andes platform • Two Andes projects (0.3 GW) in construction phase • Beaufort West cluster (280MW wind) successfully sold in September • R5 projects: Progressing solutions outside of the REIPPP process • ~100 MW corporate
Slide 18: Key portfolio updates: offshore wind
Key portfolio updates Offshore wind • Arven Offshore Wind, a 50-50 JV with Ocean Winds, expanded by 500 MW to 2.3 GW, following acquisition of Ocean Winds’ adjacent site • Freja Offshore, a 50-50 JV with Hexicon, submitted planning application for Dyning in October, a floating wind farm with capacit
Slide 19: Global portfolio of GW net
20.8 GW net1 global pipeline Global portfolio of 31 GW net Prioritizing 10 GW with greatest near-term value creation potential Pre-Development Development Construction Operational 10+ GW 19.4 GW 0.3 GW 1.1 GW Change since +1.9 GW -0.3 GW +0.3 GW Q3 2022 +0.3 GW in Andes Renovables projects reached C
Slide 20: Financials
Financials
Slide 21: Portfolio asset values
Portfolio asset values NOK million Net asset value1 Gross asset value distribution NOK million, 30 September 2023 NOK billion, 30 September 2023 AH % AH ownership value Aker Carbon Capture Cash Aker Carbon Capture 43.3% 2,962 18% Listed assets 2,962 21% Mainstream2 58.4% 7,728 Asset Development 100.
Slide 22: Aker Horizons and holding companies per Q3 2023
Aker Horizons and holding companies per Q3 2023 NOK million Income statement Q3 2023 Balance sheet Q3 2023 Cash flow statement Q3 2023 Operating revenue (net) 18 Interest-bearing assets 28 Cash flow from operating activities (42) Operating expenses (44) Investments1 12,987 EBITDA (26) Current operat
Slide 23: External financing
External financing NOK million Overview of financing facilities Debt maturities NOK million incl. PIK as of 30 September 2023 8,127 Total facility RCF Debt Key terms incl. PIK Green bond Convertible bond Subordinated 6.0% coupon per annum, with deferral NOK 2,372 Shareholder loan shareholder loan op
Slide 24: Liquidity and net interest-bearing debt
Liquidity and net interest-bearing debt NOK million Cash and undrawn RCF as of 30 September 2023 Net interest-bearing debt as of 30 September 2023 NOK million NOK million 9,101 Undrawn RCF 3,474 5,627 5,627 3,474 Interest-bearing debt 6,245 2,771 Undrawn RCF Cash Cash and undrawn RCF Debt Cash and I
Slide 25: Capital structure at Q3 2023
Capital structure at Q3 2023 Key figures Capital structure NOK billion1 NOK billion1 16.5 Unlisted assets Most recent transaction value or 13.6 book value. Includes Mainstream, Asset Development, SuperNode, Covenant LTV2 = -7% 9.1 (vs. covenant of 50%) cash and other assets Per 30 September 2023 Und
Slide 26: Q&A
Q&A
Slide 27: Global pipeline of wind and solar assets
Global pipeline of wind and solar assets Pipeline reflects assets in development, construction and operational Capacity distribution by geography Offshore – Europe LatAm APAC (3.3 GW) (3.6 GW) Development 1.2 GW Europe 16% 17% Total net 1.2 GW (1.2 GW) 6% 20.8 GW Asia Pacific 61% Development 3.6 GW
Slide 28: Mainstream Project Overview
Mainstream Project Overview Asset Portfolio Country Technology Gross Capacity Economic Net Capacity P50 Production FC COD PPA Tariff PPA Volume PPA Tenor (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 29: Mainstream Project Overview
Mainstream Project Overview Asset Portfolio Country Technology Gross Capacity Economic interest Net Capacity Target FC Target COD PPA Tariff 2 PPA Volume PPA Term (MW) (GWh) (years) (MW) Late stage development3 Caman 2 Andes - Copihue Chile Wind 49 100% 49 2025 2027 N/A N/A N/A Entre Rios Nazca - Hu
Slide 30: Mainstream Financial Information
Mainstream Financial Information Highlights • Mainstream’s income statement is reflective of the principal activities Mainstream proforma accounts1 of development, construction and operation of projects EURm Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 • Market challenges remain in Chile with operators e
Slide 31: Aker Horizons Asset Development financial information
Aker Horizons Asset Development financial information AAD proforma accounts1 Highlights NOKm Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 • Income statement reflective of the key activities in the period Revenue - - 14 - - o Continuing to mature the projects in the pipeline EBITDA (81) (103) (57) (63) (4
Slide 32: 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 33: 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
Slide 34: To learn more about Aker Horizons visit akerhorizons.com
To learn more about Aker Horizons visit akerhorizons.com