Aker Horizons ASA · SWB:7QF
Aker Horizons ASA — Q1 2021 Earnings Presentation
57 slides from Aker Horizons ASA's earnings presentation, May 4, 2021
Slide 1: First quarter 2021
AKER HORIZONS First quarter 2021 4 May 2021
Slide 2: 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 3: Agenda
Agenda 1 Main developments 2 Aker Horizons in brief 3 Portfolio update 4 Mainstream Renewable Power update 5 Aker Clean Hydrogen update 6 Financials 7 Summary 8 Q&A
Slide 4: Main developments
Main developments Mainstream Renewable Power acquisition signed 19 January NAV development NOK billion Represents step-change in developer-capabilities of Aker Horizons Signed agreement to acquire 75% of Mainstream for EUR 900 million on 100% basis 25% Aker Horizons private placement and Euronext Gr
Slide 5: Portfolio development
Portfolio development Net asset value development Gross asset value distribution NOK billion, 1 February – 31 March 2021 NOK billion, 31 March 2021 Aker Offshore Wind 1.8 2.6 0.0 0.1 15.9 10% 12.8 5.4 Cash1 Aker Carbon 36% 0.9 20% Capture 0.7 NOK 21.7 bn 1% 8% Unlisted 25% REC Silicon Aker Clean Hyd
Slide 6: A transformational year
employees and A transformational year 816 hired-ins across Aker Horizons1 High levels of activity across Aker Horizons and portfolio since launch in July 2020 4 portfolio companies ~NOK16 billion 1 February external financing raised 2 December 19 January Listed on Euronext across portfolio Began Coo
Slide 7: Mainstream transaction update
Mainstream transaction update Agreement signed on January 19th to acquire 75% of Mainstream Renewable Power, valuing company at EUR 900 million on a 100% basis1 Mainstream is a leading independent renewable energy player with a global footprint, an attractive 12.5 GW pipeline and a proven track reco
Slide 8: Aker Horizons in brief
2. Aker Horizons in brief
Slide 9: Aker Horizons offers unique approach to combining environmental impact and superior financial returns
Aker Horizons offers unique approach to combining environmental impact and superior financial returns Positive, measurable net impact on the environment Planet-positive purpose Holistic green value chain Industrial Shareholder Smart capital management perspective and 180 years of combined with ambit
Slide 10: Accelerated climate action needed to reach net zero by 2050
Accelerated climate action needed to reach net zero by 2050 Global net CO2e emissions and pathways 53 GtCO2e GtCO2e per year in 2019 Current pledges Newly announced 2.0°C (Net-zero by 2070) 1925 1950 1975 2000 2025 1.5°C (Net- zero by 2050) Note: Current pledges assume countries decarbonize further
Slide 11: Emissions by sector
Emissions by sector Humans created ~53Gt CO2e in 2019 spread across a range of sectors Transport Land Use Buildings Industry Power Other Source: EDGAR 5.0, IEA, UNEP Emissions Gap Report; 2019 figures 11
Slide 12: Aker Horizons addresses several key levers to reach net-zero
Aker Horizons addresses several key levers to reach net-zero H2 Emissions Demand mgmt., Efficiency Renewable Fuel/feed- Clean CCUS Carbon today circularity power stock switch hydrogen removal Aker Horizons companies: Note: CCUS = Carbon Capture, Utilization and Storage Graph shows key emissions redu
Slide 13: Aker Horizons ecosystem
Aker Horizons ecosystem Portfolio approach to decarbonization benefitting each pure-play company and creating new business opportunities for Aker Horizons 13
Slide 14: Our 2025 ambition
Our 2025 ambition Aker Horizons has large impact ambitions and the wherewithal to achieve them +100bn +10GW +25Mt NOK in green in renewable CO2e p.a. investments1 power capacity emissions reduction2 1. Total capital investments originated by Aker Horizons and platform companies, before sell-downs. F
Slide 15: Portfolio update
3. Portfolio update
Slide 16: Portfolio overview
Portfolio overview Platforms Sunrise portfolio 4 5 6 New ventures Private Market cap: Market cap: Market cap: Acquired for NOK 4.4 bn1 NOK 8.7 bn1 NOK 7.0 bn1 EUR 900 mn2 Incubating high impact planet-positive 51% 51% 77% 75% businesses as strategic options for ownership ownership ownership ownershi
Slide 17: Mainstream Renewable Power
4. Mainstream Renewable Power Mary Quaney, Group CEO
Slide 18: Mainstream Renewable Power
Mainstream Renewable Power Pure-play renewable energy player with a global portfolio of development assets, a diversified technology platform and a highly capable organization with a proven track-record underpinning a strong growth trajectory 2008 established 341 1.4 GW (net) ~12.5 GW employees in o
Slide 19: Mainstream Renewable Power
Mainstream Renewable Power Global portfolio of development assets across solar PV, Growing development portfolio onshore and offshore wind with strong growth trajectory ~12.5 GW Global organisation with in-house capabilities throughout the renewable energy value chain Early stage ~6.0 development St
Slide 20: Sustainability at the heart of the business
Sustainability at the heart of the business Marketplace Environment ▪ Conducting annual Reputation Audits ▪ CDP A- Leadership status for climate change ▪ Actively involved in renewable industry trade ▪ CDP Leadership Status - Supplier Engagement associations (incl. GWEC, SAWEA, ACERA, Offshore ▪ ~1.
Slide 21: Positioned for unprecedented growth
Positioned for unprecedented growth Global context Global end-to-end technical capabilities Since May 2020 the UK, the EU, the USA, China, Japan and South Korea have all adopted #netzero emissions targets Double impact – raises global ambition for decarbonisation of power sector and ends export fina
Slide 22: A global, diversified renewables developer
A global, diversified renewables developer Capacity distribution by geography Capacity distribution by technology Asia Pacific Offshore Wind (1.6 GW) (1.2 GW) LatAm 11% 11% (4.5 GW) Solar PV 39% 39% (5.4 GW) 12.5 12.5 GW GW 50% 51% Africa Onshore Wind (6.5 GW) (5.9 GW) Source: Mainstream Renewable P
Slide 23: A global, diversified renewables developer
A global, diversified renewables developer Onshore wind Currently present Offshore wind Previous projects, re-entering Solar PV Offices Main teams Offshore – US & EU1 Total net - Asia Pacific2 Development3 tba Total net 1,618 MW Construction - Development3 1,618 Operation - Construction MW Operation
Slide 24: Operational highlights & near-term milestones: LatAm
Operational highlights & near-term milestones: LatAm Execution of 9 projects in construction LatAm regional overview Chile ▪ 1.7 GW gross across 13 projects in operation / construction / near Colombia term FC Development: 4 ▪ Aela Platform 330MW in operation (40% MRP) 0.15 GW solar ▪ 1.2 GW in const
Slide 25: Operational highlights & near-term milestones: Africa
Operational highlights & near-term milestones: Africa Africa regional overview REIPP Round 5 confirmed for bidding in August 21 Egypt** ▪ High quality solar and wind development assets Senegal** Construction: ▪ More than 6 GW of 100% owned projects Construction: 0.3 GW wind ▪ Upcoming tender Round 5
Slide 26: Operational highlights & near-term milestones: APAC & offshore
Operational highlights & near-term milestones: APAC & offshore Focus on reaching FC on Soc Trang, pipeline development and new market entries APAC regional overview Vietnam ▪ Partner with the Phu Cuong Group (PCG) in the up to 1.4 GW Soc Trang offshore wind project Japan ▪ Phase 1a (200 MW) included
Slide 27: Select company targets
Select company targets Development Construction/operating Financial 5.5 GW 6.9 GW USD 100-120 million brought to financial close1 forecast to be operational or under EBITDA from 2022 Energy generation of in 2021-23 construction by end 20232 3.6 TWh from Condor & Huemul portfolios’ once fully operati
Slide 28: Mainstream Renewable Power
Mainstream Renewable Power Key figures Business model • Leading renewable energy developer with a global footprint Investment value1 • Independent developer of renewables assets across solar PV, NOK 7.9 billion onshore and offshore wind • Transitioning business model to Renewable Energy Major Acquis
Slide 29: Aker Clean Hydrogen
5. Aker Clean Hydrogen Knut Nyborg, CEO
Slide 30: Purpose and how
Slide 30 PURPOSE HOW ACCELERATING PRODUCING CLEAN ENERGY AFFORDABLE CLEAN HYDROGEN USING HYDROGEN TO SOLVE LEVERAGING AKER CLEAN HYDROGEN’S SOME OF THE HARDEST INNOVATIVE AND EFFICIENT SOLUTIONS INDUSTRIAL DECARBONIZATION TO BRING DOWN COSTS ACROSS THE CHALLENGES VALUE CHAIN Slide 30
Slide 31: We produce affordable clean hydrogen
We produce affordable clean hydrogen Enabling efficiencies across value chain INTEGRATED HYDROGEN PRODUCER Develop, build, own and operate hydrogen facilities Manage project integration ENERGY SUPPLY TECHNOLOGY EXECUTION CONSUMER Secure low-cost energy Selecting best-of-breed Selecting EPC partner t
Slide 32: Actively maturing the funnel since IPO
Actively maturing the funnel since IPO Total portfolio size growth of 0.9 GW Construction Opportunities Pipeline Prospects Projects and operation Identified projects and Active dialogue with Initial phase Agreement signed Financed, FID taken, early phase dialogues end-users and co- agreement signed1
Slide 33: Announced projects maturing since IPO – select examples
Announced projects maturing since IPO – select examples Strong traction across global portfolio Electrification of Yara’s grey New green ammonia facility Green H2 in Rjukan for Delivering green ammonia Develop a green ammonia ammonia plant at Herøya in Berlevåg shipping and ferries to export markets
Slide 34: Hydrogen hubs key to Norwegian strategy
Hydrogen hubs key to Norwegian strategy Promising candidates facilitate shipping routes and exports North Green: Berlevåg "…hubs will enable hydrogen usage across public transport, shipping routes, ferries and industry Erna Solberg, September 2020 Mid Public funding initiatives emerging • Grønn Plat
Slide 35: Strong local offtake opportunities – ACH takes active role in developing hydrogen hubs
ACH takes active role in developing hydrogen hubs Several projects in motion to mature hubs in Norway and globally WHAT WE LOOK FOR WHEN AUKRA A NEW HUB DEVELOPING HYDROGEN HUBS OPPORTUNITY, COMPLEMENTING PORTFOLIO Access to green power or natural gas with CCS for production Aukra Developing a large
Slide 36: Aukra Blue H2
Slide 36 Illustrative set-up AUKRA BLUE H2 AMMONIA EXPORTS TO EU LARGE-SCALE H2 HUB PROMISING HYDROGEN HUB • Access to natural gas FUEL FOR SHIPS AND • Shipping, industry, and exports FERRIES BLUE AMMONIA • Strong local support to move fast PLANT • Blue and long-term green H2 potential ACH THE IDEAL
Slide 37: Clear progress on 2021 priorities to drive growth
Clear progress on 2021 priorities to drive growth 2021 PRIORITIES WELL-POSITIONED TO BECOME LEADING INTEGRATED HYDROGEN PRODUCER Remarkable growth potential in clean MATURE FUNNEL TO CAPTURE 1 hydrogen for hard-to-abate industries GROWTH Unique capabilities and proven execution 2 model to integrate
Slide 38: Aker Clean Hydrogen
Aker Clean Hydrogen Key figures Business model • Leading the industrialization of clean hydrogen production as Investment value an integrated clean hydrogen producer with proprietary plant 25% NOK 5.4 billion technology as competitive edge of AH GAV • Develops, builds, owns and operates hydrogen fac
Slide 39: Aker Offshore Wind
Aker Offshore Wind Key figures Business model • Pure-play offshore wind developer with focus on deep-water Investment value assets. Sources, develops and operates offshore wind projects 10% NOK 2.3 billion • Uses technology and Aker groups long-standing leading of AH GAV position in offshore develop
Slide 40: Aker Carbon Capture
Aker Carbon Capture Key figures Business model • Pure-play carbon capture company with unique technology to Investment value secure a better future 20% NOK 4.4 billion • Delivers ready-to-use carbon capture plants utilizing best-in- of AH GAV class HSE friendly solvent and patented plant technologie
Slide 41: Financials
6. Financials
Slide 42: Our approach to portfolio and balance sheet management
Our approach to portfolio and balance sheet management ✓ Conservative balance sheet and strong liquidity ✓ ✓ Utilising strong access to capital markets to optimise financing for Target a net LTV within investment grade levels through the cycle portfolio companies and pursue new planet-positive inves
Slide 43: Aker Horizons and holding companies as of 31 March 2021
Aker Horizons and holding companies as of 31 March 2021 NOK million Cash flow statement 1 Feb - 31 Mar 2021 Balance sheet 31 Mar 2021 Income statement 1 Feb - 31 Mar 2021 Interest-bearing assets 26 Operating revenue 13 Cash flow from operating activities (53) Investments1 13,745 Operating expenses (
Slide 44: Portfolio composition
Portfolio composition NOK million Per 1 Feb 2021 Per 31 Mar 2021 Aker Horizons % NOK million Aker Horizons % NOK million Platform Mainstream Renewable Power - - - - investments Aker Carbon Capture 51.0% 5,139 51.0% 4,434 Aker Offshore Wind 51.0% 3,158 51.0% 2,251 Aker Clean Hydrogen - - 77.2% 5,419
Slide 45: External financing
External financing NOK million Overview of financing facilities Debt maturities NOK million Debt Total facility Key terms 4,000 RCF 3,500 Green bond Subordinated 6.0% coupon per annum, with deferral 2,300 2,500 1,500 NOK 2,000 mn Convertible bond shareholder loan option against a 1.0% deferral fee S
Slide 46: Cash and liquidity reserves
Cash and liquidity reserves NOK million Cash and undrawn RCF as of 31 March 2021 Pro forma adjusted for increased RCF and MRP transaction1 NOK million NOK million 12,000 12,000 11,000 11,000 2,300 10,000 9,343 10,000 9,000 9,000 1,700 8,000 7,643 8,000 7,900 7,000 7,000 6,000 6,000 5,000 5,000 4,000
Slide 47: Net interest-bearing debt
Net interest-bearing debt NOK million Net interest-bearing debt (assets) as of 31 March 2021 Pro forma adjusted for MRP transaction1 NOK million NOK million 10,000 10,000 9,619 9,000 9,000 8,000 7,319 8,000 Undrawn RCF 3,743 7,000 7,000 Undrawn RCF 1,700 6,000 6,000 5,000 5,000 4,000 4,000 Interest-
Slide 48: Capital structure post Mainstream transaction
Capital structure post Mainstream transaction NOK million Unlisted assets (book value) 8,012 Includes Mainstream Renewable Power, Rainpower and SuperNode Covenant LTV1 = 12.5% Listed assets (market value) per 31 March 2021, pro forma adjusted for 13,869 Includes Aker Offshore Wind, Aker Carbon Captu
Slide 49: Summary
7. Summary
Slide 50: Summary
Summary Q1 Reflections Strategic priorities 1• High activity across all Aker Horizons companies •1 Rapid expansion across portfolio companies – business development, partnerships, M&A 2• Several major milestones achieved •2 Building a Renewable Energy Major through 3• Financial strength of Aker Hori
Slide 51: Q&A
8. Q&A
Slide 52: Additional information
Additional information
Slide 53: Aker Horizons share
Aker Horizons share Analyst coverage Anders Rosenlund (SEB) Financial calendar 14 July 2021: Q2 results 26 October 2021: Q3 results NOK 17.6 bn 18,305 34% Frederik Lunde (Carnegie) Haakon Amundsen (ABG) Jon Masdal (DNB) Jørgen Bruaset (Nordea) 15 February 2022: Q4 results market cap shareholders int
Slide 54: Market update
Market update Regulatory and industry trends continues to be supportive for the Aker Horizons portfolio Capital market ESG focus • Continued inflow into ESG related equities • Supply of primary and secondary green capital remains high • Growth vs. value impacted following increased interest rates Su
Slide 55: Aker Horizons Net Asset Value
Aker Horizons Net Asset Value Per 31 March 2021, NOK million No. Share Market AH % AH Per AH shares Price Cap ownership Value share Aker Offshore Wind 678.7 6.50 4,412 51.0% 2,251 3.9 Aker Carbon Capture 566.1 15.36 8,695 51.0% 4,433 7.6 Aker Clean Hydrogen 687.8 10.20 7,015 77.2% 5,419 9.3 REC Sili
Slide 56: Part of the Aker group with 180 years of industrial heritage
Part of the Aker group with 180 years of industrial heritage REPEATEDLY ADVANCING FRONTIERS 180 YEARS HISTORY IN BUILDING IN COMPLEX BUSINESSES… INDUSTRIAL FRONTRUNNERS 1841 2021 FOCUSING ON THE MOST PRESSING CHALLENGES, NOW EMPHASIS ON Continuous adaption and value creation is in our DNA RENEWABLES
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