Grenergy Renovables S.A · BME:GRE
Grenergy Renovables — Q1 2024 Earnings Presentation
38 slides from Grenergy Renovables's earnings presentation, May 2024
Slide 1: Investor Presentation May 2024
The sky is the limit INVESTOR PRESENTATION May 2024 Gran Teno Solar PV - Spain Escuderos Chile
Slide 2: Disclaimer
DISCLAIMER By attending this presentation and/or by accepting this presentation you will be cial condition or results of operations by the Company and should not be relied upon taken to have represented, warranted and undertaken that you have read and when making an investment decision. Certain finan
Slide 3: Agenda
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 03
Slide 4: A growth story with a proven track record
1 A GROWTH STORY WITH A PROVEN TRACK RECORD 2007 2012 2015 2019 2024 20261 INCEPTION END FIT2 IPO LISTING TODAY TOMORROW OPENING CHILE MAB GROWTH MAIN STOCK First green bond TECHNOLOGY GEOGRAPHICAL PRESENCE 300MW 4.0GW 15.6GW & 11.0GWh Piepeline Portfolio Platform PIPELINE 50MW 1.0GW 3.5GW & 3.0GWh
Slide 5: Vertically integrated IPP
1 VERTICALLY INTEGRATED IPP Highly efficient to maximize value creation INTEGRATED IPP PLAYER Grenergy has the expertise to build and operate large-scale renewable energy plants CAPEX OPEX Operation & Maintenance Development Construction Services Asset Management 15.6GW PV + 11.0GWh BESS >100 plants
Slide 6: Key figures 1Q24
1 KEY FIGURES 1Q24 Pipeline Financials €110m Net Debt ex IFRS16 Revenues €635m 15.6GW 1.7GW & 1.0GWh €23m Solar Pipeline In Operation and EBITDA Under Construction €91.3m €11.6m 5.7x D&C Energy Total Leverage1 0.6GW & 2.1GWh Financials & Backlog €6m Pipeline 11.0MWh Net Income €1.1m €6.1m 2.3x Stora
Slide 7: Highly visible business model - PPAs
1 HIGHLY VISIBLE BUSINESS MODEL - PPAs Best-in-Class – 3.3TWh of PPAs signed, implying €3.3bn of contracted revenues 2.2GW/3.3TWh per year PPAs SIGNED €3.3bn REVENUES CONTRACTED Significant step-up in 2023 (1.7TWh/y signed, c60% of total) c80% contracted revenues 75% of Oasis Atacama (phases 1-4) al
Slide 8: Strong growth track-record - M&A
1 STRONG GROWTH TRACK-RECORD - M&A Impressive track-record – 1.2GW sold for €1.1bn in 2017-24YTD at an implicit 1.5x EV/IC ASSET ROTATION EMBEDDED INTO OUR DNA VERY SUCCESSFUL TRACK RECORD IN 2017-23 High value creation of development activities 62 projects 1.2GW €1.1bn proceeds Strong track-record
Slide 9: Self-funded investment plan
1 SELF-FUNDED INVESTMENT PLAN RECENT & UPCOMING DEALS • $157m corporate financing facility signed to Support growth in Latam (inc. BESS) • €175m non-recourse financing deal signed for the Valkyria assets under construction • c$1.0bn club deal with 5 international banks mandated for the Oasis Atacama
Slide 10: Key strategic targets 2026
1 KEY STRATEGIC TARGETS 2026 Growing to the next level CAPACITY 1 ASSET ROTATION 3.5GW 3.0GWh 350-450MW p.a. Net Net in 2023-26 5.0GW 4.1GWh c50% closed & advanced Gross Gross GROSS CAPEX EBITDA run-rate €2.6bn €250-300m in 2023-26 in 2026 €1.5bn PV €0.8bn BESS only Energy business 1 Assets in Opera
Slide 11: Agenda
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 11
Slide 12: Platform overview - Solar PV & BESS
2 PLATFORM OVERVIEW – SOLAR PV & BESS 1Q24 15.6GW1 & 11.0GWh USA Pipeline 4.9GW 2028 Identified Opportunities +0.2GW qoq 4.9GW & 1.5GWh Pipeline 2.8GWh -0.2GWh qoq Early Stage 2027 6.6GW & 4.7GWh Advanced Development 2026 1.8GW & 1.7GWh EUROPE Backlog In Operation & U.C. 0.6GW & 2.1GWh 0.7GW 2025 LAT
Slide 13: Solar PV & BESS pipeline update
2 SOLAR PV & BESS PIPELINE UPDATE ✓ US solar platform added 0.3GW to 4.9GW ✓ Europe solar platform unchanged at 5.2GW ✓ Latam solar platform added 0.1GW to 5.5GW ✓ BESS pipeline in the US stands at 2.8GWh ✓ BESS pipeline in Europe stable at 3.1GWh ✓ Chile has the largest BESS pipeline (5.1GWh) SOLAR
Slide 14: Highly contracted output & revenues
2 HIGHLY CONTRACTED OUTPUT & REVENUES ✓ Contracted output was 74% of total in 1Q24 and is expected to be around 75% in 2024 ✓ Contracted revenues were 92% of total in 1Q24 and are expected to represent 85-90% in 2024 ✓ Grenergy’s exposure to merchant prices in Spain is less than 5% of total revenues
Slide 15: Largest BESS project in Latam with 4.1GWh
2 LARGEST BESS PROJECT IN LATAM WITH 4.1GWh ✓ 1.1TWh/y already contracted for Phases 1-4 (75% of project de-risked) TOTAL CAPEX PROJECT IRR ✓ PPA for Phase 5 in advanced negotiations c$1.4bn 11-14% ✓ Imminent closing of Project Finance for Phases 1-2 ✓ Ongoing negotiations for BESS supply for Phases
Slide 16: Atacama's execution well on track
2 ATACAMA’s EXECUTION WELL ON TRACK Phases 1-3 Phases 2-4 Phase 5 Already signed COD COD 2023 2024 2025 2026 Phases 1-2 Strategic agreement with BYD for BESS supply Phase 1 BESS Phase 4 tentative COD Phase 1 Hibrid PPA signed BESS logistic deliveries Phase 1 Jan Feb BESS Nov Dec FAT 1 check Mar Oct
Slide 17: Platform update - in operation and under construction
2 PLATFORM UPDATE Projects In Operation, Under Construction & Backlog 1.7GW Solar PV & 1.0GWh BESS in operation & under construction Country Project Type Solar PV BESS1 B20 Resource COD2 Offtaker MW MWh (Hours) Spain Los Escuderos Solar PV 200 0 Yes 2,035 4Q21 PPA PV Profile 85% Chile PMGDs (15 proje
Slide 18: Platform update - advanced development
2 PLATFORM UPDATE Projects in Advanced Development 1.8GW to feed our 2026 IPP targets Country Project Type Solar PV BESS1 Resource COD2 Offtaker Negotiation3 MW MWh (Hours) Italy Le Isole Projects Solar PV 282 321 1,864 4Q25-4Q26 PPA 60-70% Initial Poland Nowy Tomysl Solar PV 71 84 1,100 4Q26 PPA 60
Slide 19: Agenda
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 19
Slide 20: PPAs - high revenue visibility
3 PPAs - HIGH REVENUE VISIBILITY ✓ 2.2GW/3.3TWh per year PPAs signed ✓ 75% of total output with PPAs from 2026 ✓ Merchant output 25% of total (<5% in Spain)... MW GWh ✓ ...c20% in solar and c5% in non-solar hours 1,250 1,500 ✓ €3.3bn2 of revenues contracted at group level 259 US CORPORATE 1,250 PaP
Slide 21: 174MW assets rotated in Peru for $150m
3 3 174MW ASSETS ROTATED IN PERU FOR $150m, IMPLYING 1.3x EV/IC ✓ Rotation of 174MW in Peru completed ✓ Sale of the Matarani (97MW) solar PV project for $90m, implying 1.4x EV/IC ✓ Sale of the Duna Huambos (37MW) and Nairas (40MW) wind projects for $60m, implying 1.0x EV/IC Duna Huambos ✓ Asset rota
Slide 22: Key operating & financial data
3 KEY OPERATING & FINANCIAL DATA ✓ -4% in total output affected by the DH disposal (+5% organic1) ✓ Results driven by the asset rotation in Peru ✓ 77% of total output from contracted volumes (+14%) ✓ Energy EBITDA -8% organic1 (vs. -13% reported) ✓ +4% in captured prices in a challenging market envi
Slide 23: Capex plan - gross investment 2023-26
3 CAPEX PLAN – GROSS INVESTMENT 2023-26 Gross capex €2.6bn in 2023-26 (c70% B2O) Downward trend in PV and BESS capex per MW €bn BESS CAPEX BREAKDOWN PER MWh 3.0 $m 0.40 0.39 2.6 0.30 0.30 2.5 10% 0.20 0.20 0.18 0.10 2.0 30% 0.00 2021 2022 2023 2024e2 Battery Inverters Logistics Others 1.5 70% B2O PV
Slide 24: Leverage & liquidity
3 LEVERAGE & LIQUIDITY Net debt & Leverage (ex IFRS16) Total Non-recourse Corporate 635 ✓ Reduction in corporate leverage driven by the asset roration deal in Peru 579 ✓ €175m non-recourse financing signed for Valkryria assets under construction €m ✓ Mandated financing for Oasis de Atacama, closing
Slide 25: Agenda
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 25
Slide 26: ESG roadmap 2024-2026
4 4 ESG ROADMAP 2024-2026 ESG Action Plan – I Phase ACHIEVEMENT OF 100% OF THE Q1 OBJECTIVES OF THE 2024 PLAN TCFD REPORT 2023 Q1 Q2 Q3 Q4 Approval of the TCFD Report 2023: climate change risks and opportunities according to TCFD recomendations. CLIMATE CHANGE CLIMATE CHANGE RISKS AND OPPORTUNITIES
Slide 27: TCFD report - climate change risks and opportunities
4 TCFD REPORT | CLIMATE CHANGE RISKS AND OPPORTUNITIES Climate-related risks and opportunities Grenergy has opted for the most conservative IPCC climate Grenergy follows the recommendations of the TCFD scenario SSP5-RCP8.5 for the analysis of physical climate risks Grenergy's global physical climate
Slide 28: Recognition in ESG ratings
4 RECOGNITION IN ESG RATINGS Confirmation of leadership in ESG ratings RATED BY NEW COVERAGE 2023 2021 2023 2021 Negligible Strong Management of 1. Acciona Energías 13.6 Low Risk 9.7 Risk all ESG material issues: 75/100 80/100 Renovables SA 2. Encavis AG A- Governance 3. Grenergy Renovables Negl. Lo
Slide 29: Strong governance with focus on ESG
4 STRONG GOVERNANCE WITH FOCUS ON ESG Translating into solid value creation for its shareholders General Information Shareholders (as of March 2024)1 Free Float Share Information 48.3% ● Currency: EUR ● Market: Spanish Stock Exchange ● ISIN: ES0105079000 Members ● Ticker code: GRE of the Board Darua
Slide 30: Appendices
APPENDICES
Slide 31: Platform with relevant growth potential
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Total Platfom1,2 Includes projects in operation and total pipeline 15.6GW & 11.0GWh Project with technical and financial feasibility, given that 1) there is the possibility 20-40% Identified Opportunities of land, 2) access to the electricity g
Slide 32: 1Q24 results - revenue & EBITDA breakdown
1Q24 RESULTS Revenue & EBITDA Breakdown Revenues (€m) 1Q24 1Q23 Var. Development & Construction 91.3 78.1 17% Income from customer sales 68.8 12.9 n.m. Income from capitalize works 22.5 65.1 (65%) Energy 11.6 11.6 0% Retail 6.1 5.5 10% Services 1.1 0.9 30% Total 110.1 96.0 15% EBITDA (€m) 1Q24 1Q23
Slide 33: 1Q24 results - profit and losses
1Q24 RESULTS Profit and Losses Profit and losses (€m) 1Q24 1Q23 Var. Revenue 110.1 96.0 15% Income from customer sales 87.5 30.9 184% Income from capitalize works 22.5 65.1 (65%) Procurement (71.4) (70.1) 2% Procurement from third parties (53.5) (8.1) 564% Activated cost (18.0) (62.0) (71%) Gross Mar
Slide 34: 1Q24 results - balance sheet
1Q24 RESULTS Balance Sheet Balance Sheet (€m) 1Q24 FY23 Var. (€m) 1Q24 FY23 Var. Equity 331.0 343.7 (12.8) Non-current assets 860.7 877.9 (17.2) Non-current liabilities 665.1 584.6 80.5 Intangible assets 5.8 5.8 (0.0) Deferred tax liabilities 35.6 33.7 1.8 Tangible asset 719.9 730.0 (10.1) Provision
Slide 35: 1Q24 results - cash flow
1Q24 RESULTS Cash Flow Cash Flow (€m) 1Q24 1Q23 Var. EBITDA 23.3 14.3 63% + Change in operating WK (17.5) (51.1) (66%) + Financial costs & Taxes paid (11.6) (10.2) 14% Funds from operations (5.8) (46.9) (88%) + ST Investments 0.1 - - + Capex (73.8) (77.6) (5%) + USA participation - - - + Divestment
Slide 36: 1Q24 results - net debt
1Q24 RESULTS Net Debt Total leverage1 5.7x Total corporate leverage2 2.3x Net Debt (€m) 1Q24 FY23 Var. Long-term financial debt 134.3 154.5 (20.2) Short-term financial debt 208.8 160.6 43.2 Long-term Lease debt (IFRS16) 46.9 50.1 (3.2) Short-term Lease debt (IFRS16) 1.9 2.7 (0.8) Other short term de
Slide 37: Net debt/EBITDA reconciliation
1Q24 RESULTS Net Debt/EBITDA Reconciliation Net Debt/EBITDA Reconciliation 1Q24 FY23 (€m) Total Corporate Non-Recourse Total Corporate Non-Recourse Net Debt 684.2 262.1 422.1 631.7 288.7 343.0 Impact IFRS16 48.8 48.8 - 52.7 52.7 - Net Debt ex IFRS16 635.4 213.2 422.1 578.9 236.0 343.0 EBITDA LTM 113
Slide 38: Solar PV + Storage
SOLAR PV + STORAGE EUROPE - USA - LATAM