Enlight Renewable Energy Ltd · TASE:ENLT
Enlight Renewable Energy — Enlight Investor Conference 2024
62 slides from Enlight Renewable Energy's conference presentation, Nov 19, 2024
Slide 1: You've got the power
You’ve got the power Investor Conference | 19.11.2024 1
Slide 2: Legal disclaimer
This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 filed with the Securities and intend such forwa
Slide 3: Continuous multi-year growth, at an ever-increasing pace
Continuous multi-year growth, at an ever- increasing pace Today’s topics: Overview of recent financial results Building upon constant growth over the years How this happens and why it will continue: Differentiation, competitive advantages, “the machine” Deep dive into the portfolio Leading managemen
Slide 4: 3Q 2024 Results
3Q 2024 Results 4
Slide 5: Another quarter of excellent results
Another quarter of excellent results 3Q24 Results 3Q24 compared to 3Q23 (m$) +88% 109 +86% 88 +115% -7% +114% 66 26 24 26 58 47 11 31 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Revenues Adjusted EBITDA1 Cashflow from Net income Net income, adjusting for operations non-core elements 2 1 Adjust
Slide 6: … adds up to 9 months of success
… adds up to 9 months of success 9M24 results 9M24 compared to 9M23 ($m) +56% 285 +50% 214 182 +25% 82 -29% +17% 158 58 56 142 48 126 9M23 9M24 9M23 9M24 9M23 9M24 9M23 9M24 9M23 9M24 Revenues Adjusted EBITDA1 Cashflow from Net income Net income, adjusting for operations non-core elements 2 1 Adjust
Slide 7: Raising 2024 guidance for the second quarter in a row
Raising 2024 guidance for the second quarter in a row Revenues $m Adjusted EBITDA 1 362.5 262.5 Midpoint Midpoint 352.5 252.5 +2.8% +4% 347.5 Midpoint 245 Midpoint +1.4% +3% Original guidance First increase Second increase Original guidance First increase Second increase announced in 2Q24 announced
Slide 8: Intensive financial activity supports the core business
Intensive financial activity supports the core business The project finance achievements of Enlight in the past 12 months Financial closes of over $1 billion to finance project construction Financial closes across three continents: US, Europe and MENA Average margin: 2.1% Financing arrangements with
Slide 9: Continued growth, year after year
Continued growth, year after year 9
Slide 10: A history of rapid growth
A history of rapid growth Revenues $m Adjusted EBITDA 1, $m 400 300 363 263 350 250 300 37% CAGR 38% CAGR 256 189 200 250 192 200 150 130 150 135 92 100 78 102 100 84 66 52 50 39 50 0 0 2018 2019 2020 2021 2022 2023 2024E 2018 2019 2020 2021 2022 2023 2024E Revenue Adjusted EBITDA 1 The data until a
Slide 11: Long term growth accompanied by decreasing leverage
Long term growth accompanied by decreasing leverage Sharp rise in shareholder’s equity Consolidated shareholders equity $m Decrease in leverage Debt/CAP - Solo financial statements Debt/CAP - Consolidated financial statements 1,600 50% 80% 1,435 78% 1,400 76% 76% 1,200 54% CAGR 45% -5% CAGR -4% CAGR
Slide 12: How does this happen and why will it continue?
How does this happen and why will it continue? 12
Slide 13: When looking at Enlight's financial results, this is what you see
When looking at Enlight’s financial results, this is what you see 13
Slide 14: 2.6 FGW of operating capacity
2.6 FGW* of operating capacity * See explanation on slide 28 14
Slide 15: $400m in annual recurring income
$400m 2.6 FGW* of operating capacity in annual recuring income Of which $363m is contained in 2024’s revenue forecast * See explanation on slide 28 15
Slide 16: Increase in operating capacity
$400m 2.6 FGW* of operating capacity in annual recuring income Of which $363m is contained in 2024’s revenue forecast Increase in operating capacity, FGW 2.6 66% CAGR 2 1.4 0.7 0.4 2020 2021 2022 2023 Q3/2024 * See explanation on slide 28 16
Slide 17: But operating capacity is just the tip of the iceberg
But operating capacity is just the tip of the iceberg Operating assets 2.6 FGW 17
Slide 18: Operating assets: 2.6 FGW
Operating assets ~$400m Annual recurring revenues 2.6 FGW 18
Slide 19: Under construction: 1.9 FGW
Operating assets ~$400m Annual recurring revenues 2.6 FGW ~$200m Under construction Will reach operation in 2025-2026 Annual recuring revenues 1.9 FGW 19
Slide 20: The components of the mature portfolio
The components of the mature portfolio Operating assets ~$400m Annual recurring revenues 2.6 FGW ~$200m Under construction Will reach operation in 2025-2026 Annual recuring revenues 1.9 FGW ~$380m Near construction Annual recuring revenues Starts construction in 2025 3.7 FGW 20
Slide 21: The components of the mature portfolio
The components of the mature portfolio Operating assets ~$400m Annual recurring revenues 2.6 FGW ~$200m Under construction Will reach operation in 2025-202 6 Annual recuring revenues 1.9 FGW ~$380m Near construction Annual recuring revenues Starts construction in 2025 3.7 FGW Advanced development St
Slide 22: The components of the mature portfolio
The components of the mature portfolio Operating assets ~$400m Annual recurring revenues 2.6 FGW ~$200m Under construction Will reach operation in 2025-2026 Annual recuring revenues 1.9 FGW ~$380m Near construction Annual recuring revenues Starts construction in 2025 3.7 FGW Advanced development Sta
Slide 23: "The machine" which converts the portfolio into revenues
“The machine” which Operating assets converts the portfolio 2.6 FGW into revenues The mature portfolio is expected to Under construction Will reach operation in 2025-2026 generate annual recuring revenues 1.9 FGW of $1 billion Near construction Starts construction in 2025 Total portfolio of 28.3 FGW
Slide 24: A clear and focused business model which creates strategic differentiation
A clear and focused business model which creates strategic differentiation Faster growth and higher returns over the long term Proven entrepreneurship and ability to execute Unique business model Developer & IPP Differentiation in Differentiation in geographic diversity technological diversity Locat
Slide 25: Enlight Leadership Team
Enlight Leadership Team Yair Seroussi Chairman Gilad Yavetz CEO and founding partner Meron Carr Amit Paz Ziv Shor Marko Liposcak, CEO Gilad Peled, CEO Ilan Goren, CEO Nir Yehuda Ayelet Cohen Israeli Lisa Haimovitz SVP Strategic CIO and founding CEO Execution Unit Europe CFO VP operations VP and Lega
Slide 26: Enlight Leadership Team
Enlight Leadership Team Yair Seroussi Chairman Gilad Yavetz CEO and founding partner Meron Carr Amit Paz Ziv Shor Marko Liposcak, CEO Gilad Peled, CEO Ilan Goren, CEO Nir Yehuda Ayelet Cohen Israeli Lisa Haimovitz SVP Strategic CIO and founding CEO Execution Unit Europe CFO VP operations VP and Lega
Slide 27: MENA
MENA 27
Slide 28: Enlight MENA Snapshot
MENA Enlight MENA Snapshot Operational capacity 2024 E revenues 884 FMW $153 m FGW (Factored GW) combines generation capacity and energy storage capacity into one equivalent metric on the basis of FMW 884 51 125 805 1,881 the construction cost in each segment. The weighted average construction cost
Slide 29: Israel – a market set for a historic leap
MENA Israel – a market set for a historic leap Expected growth of 170% in the coming six years Development of renewable energy 2020-2050 (Ministry of Energy) 120 105.07 Renewable 100 installed capacity 80.75 80 74.50 60 Equivalent ton of Oil (millions) 46.37 40 Yellow scenario 16.84 20 Red scenario
Slide 30: A market at a point of historic expansion
MENA A market at a point of historic expansion Installed Capacity 5.9 16.8 105 * GW 2023 2030 2050 Storage Capacity 0.3 *** 30.8 350 ** GWh* 2023 2030 2050 * Based on the “Yellow Scenario” Blueprint for zero greenhouse gas emissions from the energy sector in Israel by the year 2050. The installed ba
Slide 31: Israel's supersized electricity market
MENA Israel’s supersized electricity market Israel is 4x larger than its relative size Large quantities of solar production that need to be distributed throughout the day Overall renewable Storage Goal Daily market production and consumption - an illustration target 2030-2035 2030 Capacity (GW) 70 1
Slide 32: The Israeli market has opened to solar energy
MENA The Israeli market has opened to solar energy 35 30 30 25 20 20 15 10 5 0 The old tariff - auction New average market price (ILS agorot) (ILS agorot) 32
Slide 33: Forecasted electricity prices
MENA Forecasted electricity prices Excellent price environment for solar energy, in an era without subsidies Electricity price 2015-2040 (2025-2040 based on BDO’s forecast) Electricity price, Agorot per KWh 58 48 38 28 18 16/9/15 1/1/17 15/1/18 1/1/19 1/1/20 1/1/21 1/2/22 1/5/22 1/8/22 1/1/23 1/4/23
Slide 34: Renewable energy in Israel: from a constraint into a solution
MENA Renewable energy in Israel: from a constraint into a solution 50% from 10 power plants 4.8 21% Natural gas Coal 11.7 52% 24 1.1 GW 5% Energy security: 50% of national generation comes from Renewable energy 10 power plants. There is now a broad understanding that Other 5.9 22% renewable is the s
Slide 35: Enlight is leading in all business areas
MENA Enlight is leading in all business areas Leading in renewable generation 27% share of utility scale market Leading the energy storage revolution 625 MW operational capacity The first to enter into the deregulated market More than 50% market share Leading in the supply to household customers, wi
Slide 36: Looking further down the line
MENA Looking further down the line Leading the agrivoltaics revolution Targeting 30% share of the storage market Leading the household supply market Rapid growth in non-utility Developing new markets in North Africa and the Middle East 36
Slide 37: Makeup of the mature portfolio
MENA Makeup of the mature portfolio Factored % Status MW MWh MW Progress Operational 705 625 884 100% Operating assets Under construction 22 99 51 100% Total operational and under construction 728 724 935 100% Under construction Factored % Status Project Name MW MWh MW Progress Storage Expansion 0 2
Slide 38: Advanced development portfolio and Development portfolio
MENA Advanced development portfolio and Development portfolio Advanced development portfolio Number of Projects MW MWh Factored MW % Progress* 25 120 2,399 805 61% Development portfolio Number of Projects MW MWh Factored MW % Progress* 22 947 3,270 1,881 37% Advanced development * Internal index of
Slide 39: US
US 39
Slide 40: Enlight US Snapshot
US Enlight US Snapshot % of the Portfolio Area Current Operational Capacity 2024E Revenues 70% WECC 470 FMW $12 m 11% PJM 7% SPP FMW 470 1,732 3,157 5,293 9,250 6% MISO Operational Under construction Pre-construction Advanced development Development 6% OTHER Technology segmentation of the Growth in
Slide 41: The U.S. market
US The U.S. market Growth in demand for electricity U.S. Interconnection Queue in 2023 Data centers - consume approximately 4-5% of electricity in the US today and expected to reach 12% in 20301 3% 2% Gas Other 14% 10% of the new cars sold in the US are electric 2 Wind Transition to generation from
Slide 42: WECC – One of the largest electricity markets in the Western world
US WECC – One of the largest electricity markets in the Western world One of the largest electricity markets in the Western world Installed capacity of 300 GW, representing 20% of the electricity generation in the US 1 Annual demand of 900 TWh, equivalent to the consumption of Germany and Britian co
Slide 43: America's most attractive offtake structure
US America’s most attractive offtake structure All of Enlight’s PPAs are based on busbar terms and availability payments for storage Hub-Settled PPA Busbar PPAs in the portfolio: Sale at the Regional hub Fixed price per kWh produced and an availability payment for the storage component Long-term agr
Slide 44: Our portfolio
US Our portfolio Utility scale projects High Profitability + Busbar PPAs Stable revenue profile High solar radiation + On going growth Significant capacity Follow-up projects of BESS PPAs 44
Slide 45: Operating assets
US Operating assets Operating assets Atrisco PV Atrisco BESS 364 MW 1,200 MWh New Mexico New Mexico $63-66m Revenues APEX $49-52m EBITDA 106 MWdc Montana 0.5 GW 1.2 GWh 45
Slide 46: Projects that will be built in the coming years expected to generate approximately $400m in EBITDA
US Projects that will be built in the coming 3 years expected to generate approximately $400m in EBITDA $298-311m $132-141m Revenues ~$ 500m $63-66m Revenues $239-251m revenues $106-114m Revenues EBITDA $49-52m EBITDA EBITDA ~$ 400m EBITDA 0.8 GW 2 GWh 2.4 GW 2.7 GWh 0.5 GW 1.2 GWh Dater of operatio
Slide 47: Mature Portfolio
US Mature Portfolio Factored % Status MW MWh Weighted MW Progress* Operational 470 0 470 100% Under construction 810 3,228 1,732 100% Total operational and under construction 1,280 3,228 2,202 100% Factored % Status Project Name MW MWh Weighted MW Progress* Snowflake A 600 1,900 1,143 85% Pre- Co Ba
Slide 48: 2024 on plan: construction begins on three major projects
US 2024 on plan: construction begins on three major projects Combination of large-scale projects and high returns Country Acres Roadrunner Location California Location Arizona Capacity 392 MW + 688 MWh Capacity 290 MW + 940 MWh Status Construction has begun Status Construction has begun First Year R
Slide 49: Snowflake A: a new megaproject to begin construction in 2025
US Snowflake A: a new megaproject to begin construction in 2025 1,140 FMW major solar energy project in Arizona Location Arizona, USA Capacity 600 MW & 1,900 MWh Expected COD Mid-2027 Holbrook, Arizona PPA term & counterparty 20-year Busbar, APS First full year revenues / EBITDA $115-125m / $95-105m
Slide 50: Advanced Development and Development portfolios
US Advanced Development and Development portfolios Advanced Development portfolio Number of projects MW MWh Factored MW % Weighted Progress* 11 3,026 7,936 5,293 67% Development portfolio Number of projects MW MWh Factored MW % Weighted Progress* 36 6,964 8,000 9,250 34% Advanced development * It is
Slide 51: Total portfolio of 19.9 FGW
US Total portfolio of 19.9 FGW FGW MISO WECC 1.1 14.0 Ontario Independent Electricity System Operator ISO New England Midcontinent Non-RTO ISO New York West ISO PJM California ISO PJM Intercontinental 2.2 CAISO Southwest Non-RTO 0.6 Power Pool Southwest SERC 0.7 Electric Reliability Council of Texas
Slide 52: Europe
Europe 52
Slide 53: Enlight Europe snapshot
Europe Enlight Europe snapshot Operational capacity 2024 E revenues 1,233 FMW $198 m Substantial operational portfolio with quality FMW development portfolio 1,233 94 419 284 2,613 Operational Under construction Pre-construction Advanced development Development Mature portfolio by technology Mature
Slide 54: RE Generation Segment - expected to grow by 1,000 GW in the next decade
Europe RE Generation Segment - expected to grow by 1,000 GW in the next decade Europe Expected Capacity Growth (Until 2035) CAGR: 9.8% 1,749 GW Europe is fully committed and at the forefront of Renewable Energy transition 1,426 GW +167 GW Offshore Wind In the first half of 2024, 50% of the EU’s elec
Slide 55: Energy Storage Segment - exponential demand driven by RE growth
Europe Energy Storage Segment- exponential demand driven by RE growth Enlight focus markets 60.00 Growth in renewable capacity amplifies the need for Storage 50.00 8.12 51.10 2.00 Total utility scale BESS capacity 40.00 3.00 forecasted to grow >7x by 2030; 4.08 30.00 5.93 Predicted largest markets a
Slide 56: Addressing market opportunity
Europe Addressing market opportunity Enlight Europe key initiatives Continue and even accelerate portfolio growth on core markets Southwest Europe, Nordics, CEE Storage as a significant growth engine Develop both Stand alone and co-located storage opportunities across our markets Leveraging our uniq
Slide 57: Enlight portfolio in Europe
Europe Enlight portfolio in Europe From early stage pipeline to operating assets Operating assets 2,613 4,643 Under construction Near construction 284 94 419 1,746 1,233 Advanced development Operational Under Construction Mature Construction Development Total Construction in 2025 Portfolio in 2026 P
Slide 58: Mature portfolio
Europe Mature portfolio Status MW MWh Factored MW Weighted progress % Operating assets Operational 1,233 0 1,233 100 % Under construction 94 0 94 100 % Under construction Operational and under construction 1,327 0 1,327 100 % Pre construction Gecama Hybrid 225 220 288 80% 2025 construction 460 131 6
Slide 59: Advance and Development phase
Europe Advance and Development phase Advance phase Weighted Number of projects MW MWh Factored MW progress % 3 97 656 284 55% development phase Weighted Number of projects MW MWh Factored MW progress % 29 2,051 1,968 2,613 22% Advanced development FGW (Factored GW): Is an internal company index used
Slide 60: Stand Alone BESS portfolio in Italy
Europe Stand Alone BESS portfolio in Italy A Show Case for Europe ~2.5GWh planned capacity Key Diversified sites in Central and South Italy success Supportive Nardo From near RTB to early stage. Market demand Aprilia drivers for BESS regulation Short connections to high voltage grid nodes; Bisaccia
Slide 61: Summary & Looking ahead
Summary & Looking ahead 61
Slide 62: A growing and dynamic market - Looking 30 years ahead
A growing and dynamic market - A total portfolio of 28.3 FGW Looking 30 years ahead which will continue to grow 2.6 FGW generating Operating assets $400m in annual recurring revenues Proven entrepreneurship and ability to execute Unique business model 8.2 FGW which is Mature assets Developer & IPP e
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