Enlight Renewable Energy Ltd · TASE:ENLT
Enlight Renewable Energy — Q3 2023 Earnings Presentation
17 slides from Enlight Renewable Energy's earnings presentation, November 2023
Slide 1: Earnings Presentation Third Quarter 2023
EARNINGS PRESENTATION Third Quarter 2023
Slide 2: Legal disclaimer
Legal disclaimer This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce intend suc
Slide 3: Enlight at a glance
Enlight at a glance Next generation global renewable energy platform Greenfield developer and IPP Global platform Wind, solar and energy storage Control over entire project life cycle Growing activity across Expertise across main renewable U.S., Europe and Israel technologies Extensive track record
Slide 4: Q3 overview: robust project returns, deep access to capital and continued growth
Q3 overview: robust project returns, deep access to capital and continued growth 1 Robust project returns Q3 Results PPA price increases coupled with rapidly declining equipment costs o Amended 1.8 GW of legacy PPAs in last 18 months with price increases averaging 25%; signed new PPAs $58m of 683 MW
Slide 5: Solid quarterly results with continued improvement in profitability
Solid quarterly results with continued improvement in profitability Reaffirming 2023 FY guidance: Revenues of $265-275m, Adjusted EBITDA* of $188-198m Q3 2023 versus Q3 2022 9 Months 2023 versus 9 Months 2022 ($m) ($m) 3% 182 58 39% 56 142 47 131 32% 64% 126 36 135% 31 87 82 35% 26 57% 201% 19 20 53
Slide 6: Project returns: expected unlevered ratio of 10% for 2024-26 CODs
Project returns: expected unlevered ratio of 10% for 2024-26 CODs Improving return picture driven by declining supply chain costs and PPA pricing power Blended unlevered ratio: 2024-2026 CODs Portfolio of 2024-26 CODs 3.6 GW 5.5 GWh +80 bps $375-390m Estimated First Full Year EBITDA1 Higher PPA pric
Slide 7: Project returns: major declines in equipment pricing
Project returns: major declines in equipment pricing Falling commodity costs driving significant decline in equipment costs Commodity Costs1 Key Impacts $90,000 ✓ Decline in EV demand from China, driving lithium price decline (72%) ✓ Price decline into battery storage container pricing which is $50,
Slide 8: Project returns: mid-teens levered returns expected for 2024-26 CODs
Project returns: mid-teens levered returns expected for 2024-26 CODs Overlaying a 10% unlevered ratio with a 5.75-6.25% cost of debt Global Portfolio of 2024-26 CODs Levered Returns 3.6 GW 5.5 GWh 90% With Mid-teens % Signed PPAs Unlevered Ratio $375-390m Estimated First 10% Full Year EBITDA1 $3.85b
Slide 9: Continued conversion of projects into Mature Portfolio
Continued conversion of projects into Mature Portfolio Country Acres and Quail Ranch (Atrisco Phase II) are expected to provide highly attractive returns Location California, USA Location New Mexico, USA Technology Solar + Storage Technology Solar + Storage Country Capacity 392 MW + 688 MWh Quail Ca
Slide 10: We are in a unique leadership position across interconnection
We are in a unique leadership position across interconnection Transmission infrastructure is the principle constraint for renewable energy today Mature Projects Advanced Development Development 3.1 GW + 3.6 GW + 2.7GW 100% of 100% of U.S 31% of U.S U.S Mature Advanced Development Development = 9.4 G
Slide 11: 2026 plan: 5.4 GW and 5.7 GWh operational
2026 plan: 5.4 GW and 5.7 GWh operational Operational capacity expected to triple to 5.4 GW and 5.7 GWh by the end of 2026 2024 | Atrisco (364 MW, 1.2 GWh) Major Expected 2025 | Gecama & Roadrunner (519 MW, 1.1 GWh) CODs 2026 | CO Bar & Country Acres (1.6 GW MW, 1.5 GWh ) 5,395+5,691 MWh CAGR +40% 2
Slide 12: Existing resources sufficient to complete 4.6 GW and 3.6 GWh, extending to 2026 CODs
Existing resources sufficient to complete 4.6 GW and 3.6 GWh, extending to 2026 CODs4 Resources sufficient to reach 4.6 GW and 3.6 GWH Potential to generate substantial distributions ($m) 4.6 GW + 3.6 GWh Out of Mature Projects Potential annual distributions from 4.6 GW and 3.6 GWh3 (Enlight share)
Slide 13: Capital recycling expected to fund growth thereafter
Capital recycling expected to fund growth thereafter2 1.5 GW per year anticipated uses: $270m per year Parallel cash flow and minority sell-downs from 1.5 GW: $270m per year 1 Annual potential cash flow from generation: $100m Deployment Blended Capex 1 1.5 GW a year $0.9m per MW 2 Minority stake (30
Slide 14: Appendix
en Appendix
Slide 15: Reconciliations between Net Income to Adjusted EBITDA
Reconciliations between Net Income to Adjusted EBITDA ($ thousands) For the nine months ended at For the three months ended at 09/30/23 09/30/22 09/30/23 09/30/22 Net Income (loss) 81,839 27,158 26,132 19,295 Depreciation and amortization 44,185 28,813 17,408 11,781 Share based compensation 4,000 7,
Slide 16: Portfolio snapshot
Portfolio snapshot Generation, Storage, Graph, MW MWh scale Portfolio definitions Operational, under construction and pre- + + Mature construction (expected to start construction within 12 months) + 10,601 13,533 20,310 29,498 4,314 10,275 Projects which are expected to begin Advanced construction w
Slide 17: Thank you
en Thank you
Enlight Renewable Energy — Q3 2023 Earnings Presentation on 6ix