Aquila European Renewables Plc Registered · LSE:AERI
Aquila European Renewables Plc Registered — Aquila European Renewables Income Fund — H1 2021 Earnings Presentation
38 slides from Aquila European Renewables Plc Registered's earnings presentation, Aug 10, 2021
Slide 1: Aquila European Renewables Income Fund Plc 1H21 Company Presentation
Aquila European Renewables Income Fund Plc 1H21 Company Presentation FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL Generating Essential Investments
Slide 2: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 1H21 Update 4 Balance Sheet and Pipeline 5 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 2
Slide 3: Aquila European Renewables Income Fund Plc Strategy
Aquila European Renewables Income Fund Plc Strategy • UK domiciled investment company investing in renewable energy technologies across continental Europe and the Republic of Ireland • Focus on diversification to secure income Technology Geography Contracted Revenue € Target at IPO: 30 – 50% 30 – 50
Slide 4: Aquila Capital – One of the largest Clean Energy Portfolios in Europe
Aquila Capital – One of the largest Clean Energy Portfolios in Europe Track record of Clean Energy assets by country1 (in MW/MWp) SE, FI, DK & NO UK 3,114 19 DE US FR 574 JP 300 285 80 TR 45 PT ES 886 2,313 IT & GR 4,527 Total transaction volume Assets transacted in Dedicated teams for Industry lead
Slide 5: Investment Adviser – Aquila Capital
Investment Adviser – Aquila Capital AERIF Managed by Aquila Capital’s Partnerships & Portfolio Advisory Team Christine Brockwell Michael Anderson Nicole Zimmermann Daniel Metzger Diego Escobar Pascal Hermann Head Partnerships Senior Manager Manager Associate Associate Analyst & Portfolio Advisory Pa
Slide 6: Environmental and Social Contribution to the Green Economy
Environmental and Social Contribution to the Green Economy AERIF1 Aquila Capital2 More than More than More than More than 322,000 376,000 3.6 million 4.4 million Households supplied Tonnes of CO2 Households supplied Tonnes of CO2 with green energy emissions offset with green energy emissions offset
Slide 7: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 1H21 Update 4 Balance Sheet and Pipeline 5 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 7
Slide 8: Portfolio Snapshot
Portfolio Snapshot Key Statistics – 30 June 20211 10 32 Investments Operating assets2 2 6 projects under Countries construction 332.3 MW ~24 Operating capacity Remaining asset life (years)3 71.3% 25.4% Contracted revenue4 Leverage5 1Data based on AERIF share, where applicable. 2Sagres includes 21 se
Slide 9: Portfolio Allocation
Portfolio Allocation1 Technology Geography 5.2% 13.5% 21.0% 25.1% 9.4% 8.9% 69.7% 25.6% 21.7% Hydro Solar PV Wind Portugal Norway Denmark Finland Spain Greece Asset Status Asset Age 18.2% 25.7% 5.2% 76.6% 74.3% Operating Under construction 5-10 years > 5 years < 10 years 1Allocation is based on fair
Slide 10: Portfolio Summary
Portfolio Summary Project Technology Country Capacity1 Status COD2 Asset Life Equipment Energy Ownership Leverage4 Acquisition from COD Manufacturer Offtaker3 in Asset Date Tesla Wind energy Norway 150 MW Operational 2013, 25y Nordex PPA / Spot 25.9% 27.1% July 2018 2019 Sagres Hydropower Portugal 1
Slide 11: Acquisitions closed since the last fund raising in October 2020
Acquisitions – EUR 150 million1 closed since the last fund raising in October 2020 Albeniz Desfina The Rock Ourique Technology Solar Wind Wind Solar Country Spain Greece Norway Portugal Capacity 50 MWp 40 MW 400 MW 62 MW Status Construction Operational Construction Operational COD Q4 2021 (expected)
Slide 12: Attractive Contracted Revenue Base
Attractive Contracted Revenue Base Present Value of Contracted vs. Non- Revenue Mix – Existing Contracts Only Contracted Revenue (5 Years)1 100% 100% 100% Aquila will proactively seek to replace expired PPA / tariff contracts over time 90% 22.9% 90% 90% a high degree of contracted revenues in order
Slide 13: Construction progress
Construction progress The Rock Albeniz − Expect project completion in Q4 2021 − Construction process has been as forecasted and completion is expected in Q4 2021 − BoP1 work is ahead of schedule. Wind turbine installation progressing − At the end of June 2021, 26% of overall construction has been co
Slide 14: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 1H21 Update 4 Balance Sheet and Pipeline 5 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 14
Slide 15: 1H21 Highlights
1H21 Highlights − Acquisition of Ourique and Bridge financing commitment in relation to The Rock (EUR 50.3m2 in total) − Majority of surplus capital available for investment opportunities now fully deployed or committed − Overall generation levels down relative to budget for 1H21 ▪ Largely driven by
Slide 16: Investment Adviser Fee Arrangement – Extension
Investment Adviser Fee Arrangement – Extension − At the time of IPO (June 2019), Aquila had undertaken to accept its Investment Adviser fee in AERIF ordinary shares, rather than cash for two years − On 6 August 2021, AERIF announced an extension of the existing Investment Adviser fee arrangement wit
Slide 17: European Power Price Developments
European Power Price Developments Daily Average Power Price1 EUR / MWh 120 1H20 1H21 100 80 60 40 20 0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Nordpool Iberia Greece − During the first half of 2021, power prices ha
Slide 18: Portfolio Electricity Prices
Portfolio Electricity Prices Real Electricity Price Forecasts (Weighted Average) 51.0 49.0 47.0 EUR / MWh 45.0 43.0 41.0 39.0 37.0 35.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 FY20 1HY21 (inc. New Investments) 1HY21 (exc. New Investments) −
Slide 19: Merchant Market Desk – Proactive and Holistic Approach to Hedging
Merchant Market Desk – Proactive and Holistic Approach to Hedging Tesla Sagres The Rock − In July 2021, Aquila was recently − Local prices had experienced − Prior to AERIF’s acquisition of the approached by a utility in relation to heightened volatility in 2020 project, Aquila’s MMD team extending a
Slide 20: Merchant Market Desk – The Hub for Hedging Activities Across Aquila Group
Merchant Market Desk – The Hub for Hedging Activities Across Aquila Group − Run competitive off-taker selection processes through PPA sourcing Energy and − Measure, monitor and manage merchant exposure our extensive network in the energy industry. through selling at spot, entering into short-term PP
Slide 21: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 1H21 Update 4 Balance Sheet and Pipeline 5 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 21
Slide 22: Balance Sheet Management – June 2021
Balance Sheet Management – 30 June 2021 Key Debt Metrics (EUR m)1 Liquidity and Project Commitments (EUR m) Company level debt 0.0 Total cash on hand 24.9 Asset level debt 107.6 RCF limit 40.0 Total debt 107.6 Total liquidity 64.9 NAV 316.2 Remaining commitments (The Rock, Albeniz) 50.3 GAV 423.8 Ex
Slide 23: Pipeline Overview
Pipeline Overview 1 # Asset Country Capacity COD Initial remuneration Project status Technology (MW(p))2 1 Wind Sweden 134 2023 PPA Under negotiation 2 Wind Sweden 121 2023 Merchant Under negotiation 3 Wind Ireland 425 2021 FiT Under negotiation 4 Solar Portugal 173 2023 PPA Under negotiation 5 Wind
Slide 24: Exercising Investment Discipline
Exercising Investment Discipline Recent Bid Examples Bid Economics – Competitor Bid vs. Aquila Case1 Outcome Project #1 • Operating wind farm Aquila was offered a +10m (220) bps right to match to • Central Europe Enterprise Value participate in the next Equity IRR round, but declined due • FiT to in
Slide 25: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 1H21 Update 4 Balance Sheet and Pipeline 5 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 25
Slide 26: Track Record since IPO
Track Record since IPO Summary1 Capital Deployment (EUR m)2 − Aggregate investments of over EUR 321 million concluded since IPO 350.00 300.00 − Aggregate dividends paid or declared since IPO: c. EUR 16m 250.00 − Dividend targets achieved in 2019 and 2020 200.00 150.00 − FY21 dividend target of EUR 5
Slide 27: Merchant Market Desk – PPA Sourcing
Merchant Market Desk – PPA Sourcing PPA initial Contract Off-taker Best offer PPA Lifecycle valuation & RfQ negotiation and screening selection management design signing At the MMD, we have utilized previous experience to streamline the PPA sourcing process by: – Create and maintain a network of off
Slide 28: Board of Directors
Board of Directors Ian Nolan Dr. Patricia Rodrigues David McLellan Kenneth MacRitchie Non- Executive Chairman Member of the Remuneration and Nomination Chair of the Audit and Risk Committee and Chair of the Remuneration and Nomination Committee and member of the Audit and Risk member of the Remunera
Slide 29: Aquila Capital Real Asset allocation
Aquila Capital Real Asset allocation America Europe Asia Clean Energy Sustainable Infrastructure Solar PV1 Wind energy1 Hydropower1 Real Estate Energy Carbon Land Use Efficiency Forestry 7,552 MWp 2,202 MW 794 MW 1,721,969 m2 38,041 ha 7,964 ha EUR 5,176m EUR 2.959m EUR 1,337m EUR 2,567m EUR 3.4m EU
Slide 30: Summary Income Statement
Summary Income Statement EUR k FY20 FY19 (Loss)/gain on investments (3,959) 8,608 Net foreign exchange losses (12) (13) Interest income 6,194 1,609 Investment advisory fees (1,671) (654) Other expenses (1,340) (810) (Loss)/profit on ordinary activities before finance costs and taxation (788) 8,740 F
Slide 31: Summary Balance Sheet
Summary Balance Sheet EUR k FY20 FY19 Assets Cash 121,014 38,862 Trade and other receivables 5,763 1,927 Portfolio value 229,982 118,660 Liabilities Creditors (39,856) (532) Net assets 316,903 158,917 Net assets per Ordinary Share (cents) 99.96c 102.7c FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL
Slide 32: Summary Cash Flow
Summary Cash Flow EUR k FY20 FY19 Operating activities Profit on ordinary activities before taxation (1,187) 8,541 Adjustment for unrealized losses / (gains) on investments 3,959 (8,608) Working capital adjustments (2,398) (1,395) Net cash flow from / (used) in operating activities 374 (1,462) Purch
Slide 33: Reconciliation – Portfolio Value and NAV
Reconciliation – Portfolio Value and NAV EUR k FY20 FY19 Operating assets 181,211 118,660 Construction assets 48,771 - Fair value of investments 229,982 118,660 Cash 121,015 38,862 Total assets 350,996 157,522 Other assets and liabilities (34,093) 1,394 Net Asset Value 316,903 158,917 Ordinary Share
Slide 34: Terms of the Fund
Terms of the Fund Aquila European Renewables Income Fund Plc Fund structure UK-domiciled closed-end investment company Listing Premium Segment of the London Stock Exchange Ticker / ISIN in EUR / SEDOL AERI / GB00BK6RLF66 / BK6RLF6 Ticker / ISIN in GBP / SEDOL AERS / GB00BK6RLF66 / BJMXQK1 Currency F
Slide 35: Contact details
Contact details Germany Czech Republic Japan Luxembourg Netherlands New Zealand Hamburg (Headquarters) Prague Tokyo Senningerberg Amsterdam Invercargill Valentinskamp 70 Palladium BUREX FIVE Airport Center Luxembourg Tower F, World Trade Center 173 Spey Street 20355 Hamburg Náměstí Republiky 1 2-11-
Slide 36: Important notice
Important notice FOR INSTITUTIONAL/PROFESSIONAL INVESTORS ONLY. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA, OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE
Slide 37: Important notice (cont’d)
Important notice (cont’d) The information contained in this document is given at the date of its publication (unless otherwise marked) and may be incomplete and subject to change. In particular certain figures contained in this presentation, including financial information, are unaudited and may be
Slide 38: Important notice (cont’d)
Important notice (cont’d) The Fund is incorporated and registered in England and Wales as a public company limited by shares under the Companies Act 2006 (as amended). A prospectus has been issued for the Fund, which is, together with further documents and information available free of charge via we
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