Scatec Asa · OSL:SCATC
Scatec Asa — Scatec Solar — Q4 2015 Earnings Presentation
32 slides from Scatec Asa's earnings presentation, Jan 29, 2016
Slide 1: Fourth quarter and full year 2015
Fourth quarter and full year 2015 Raymond Carlsen, CEO Mikkel Tørud, CFO Oslo, January 29, 2016 Our values Predictable Driving results Changemakers Working together Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: Operational review
Operational review Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com
Slide 4: Executing the growth strategy
Operational highlights Executing the growth strategy • Revenues of NOK 267 million* (194), EBITDA of NOK 215 million (133) and net profit of NOK 59 million (5) • Scatec Solar’s share of cash flow to equity of NOK 58 million – continued growth in cash flow • Executing the growth strategy – Q4 power p
Slide 5: Steady growth in cash flow from PP and O&M
Financial highlights Steady growth in cash flow from PP and O&M SSO proportionate share of cash flow to equity* 70.7 Cash flow to SSO equity 58.5 44.2 Power Production and O&M: 41.7 36.6 • Q4’15: NOK 42 million (27) • FY2015: NOK 155 million (97) D&C: • Q4’15: NOK 20 million (31) • FY2015: NOK 76 mi
Slide 6: A solid project funnel – basis for growth strategy
Project development A solid project funnel – basis for growth strategy Regions Americas, Africa, MENA ~2,500 + 200 MW • Feasibility and business case verified MW >50% Pipeline • Land secured Regions Assessed as having more 1,174 - 113 MW • Grid connection available • Preliminary design Americas, Eas
Slide 7: A comprehensive project structuring phase
Project development A comprehensive project structuring phase Financial Grid Enter pipeline 6-18 months Enter backlog 3-9 months close 9-12 months connection Power Purchase agreements and support agreements • Key terms: tariff level, currency, tenor, deemed energy • Grid code and other technical req
Slide 8: Preparing to execute backlog
Project development Preparing to execute backlog Target SSO Project Capacity construction start ownership Status Project finance from Cabei and Export Credit Los Prados, 53 MW Q1 2016 70% Norway/GIEK – financial close at the end of Q1’16 Honduras certain EPC activities started Segou, Project finance
Slide 9: Pipeline continues to mature
Project development Pipeline continues to mature Target Project Capacity construction start Status Infrastructure agreements for Ben Ban area signed, EBRD in lead & Egypt 341 MW 2016 mandated by SSO for project finance, power purchase agreements expected to be finalized shortly. Well positioned to s
Slide 10: Positive market outlook
Positive market outlook MW in production and under construction • The global market for PV is expected to grow In operation from 57 GW to 68 GW in 2016* In operation & under construction • Emerging economies take advantage of lower 1,400-1,600 electricity prices coming from installation of renewable
Slide 11: Financial review
Financial review Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com
Slide 12: Continued strong growth
Consolidated financials Continued strong growth Consolidated financials, NOK million Revenues 881 EBITDA Net profit 698 471 293 129 136 49 -17 -8 2013 2014 2015 Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com 12
Slide 13: Strong growth in net profit
Consolidated financials Strong growth in net profit Revenues (NOKm) EBITDA (NOKm) Net profit (NOKm) 266.6 215.3 224.8 204.8 204.1 177.7 196.5 159.2 141.0 * 146.2 59.0 47.0 21.3 12.9 * 8.4 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 72% 79% 71% 78% 81% 7%
Slide 14: Summer in South Africa and Agua Fria in full production
Power Production Summer in South Africa and Agua Fria in full production Consolidated revenues & EBITDA (NOKm) • Revenues growth with the summer Total revenues and other income season in South Africa and a full EBITDA quarter of production of the 60 MW 253.6 228.9 Agua Fria plant 224.4 201.9 200.7 1
Slide 15: Lower revenues due to reduced performance bonus
Operation & Maintenance Lower revenues due to reduced performance bonus Consolidated revenues & EBITDA (NOKm) • The fourth quarter revenues were Total revenues and other income recognised based on O&M contracts EBITDA totalling 236 MW 17.4 • Lower revenues and EBITDA 15.8 reflecting seasonally lower
Slide 16: Construction in Jordan moving forward
Development & Construction Construction in Jordan moving forward Consolidated revenues & EBITDA (NOKm) • D&C revenues and margins reflect project Total revenues and other income development and plant construction EBITDA 579.0 • Construction progresses in Jordan – grid connection during 1H 2016 • A p
Slide 17: Stable long term cash flow generation
Segment financials and cash flow Stable long term cash flow generation Q4’15 - NOK million Power Production O&M D&C Corporate Total Elim. Consolidated Revenues 253.6 11.3 200.1 2.7 467.7 -201.1 266.6 EBITDA 228.9 4.0 25.7 -10.9 247.7 -32.5 215.3 Net interest expenses -85.8 6.8 -79.0 Loan repayment -
Slide 18: A solid financial position
Financial position A solid financial position Financial position (NOKm) • Cash position of NOK 1,639 million of which NOK 651 million free cash available As of 31.12.2014 As of 31.12.2015 outside project companies 7,983 7,983 8 000 • Total interest bearing liabilities* of NOK 1425 5.7 billion of whi
Slide 19: Outlook
Outlook Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com
Slide 20: Outlook: Executing the growth strategy
Outlook: Executing the growth strategy MW in production and under construction • Targeting 1,400 – 1,600 MW in operation and In operation under construction by year end 2018 In operation and under construction 1,400-1,600 • 15% gross margin from Development and Construction • Target average equity I
Slide 21: Thank you
Thank you Our values Predictable Driving results Change makers Working together Copyright: Scatec Solar ASA www.scatecsolar.com • post@scatecsolar.com
Slide 22: Consolidated profit & loss
Consolidated profit & loss (NOK million) Q4 15 Q3 15 Q4 14 FY 2015 FY 2014 Total revenues 266.6 204.1 196.5 881.0 471.3 Gross profit 266.6 202.3 194.4 881.0 471.3 EBITDA 215.3 159.2 133.0 698.4 292.9 Depreciation, amortization and impairment -52.5 -46.1 -38.7 -175.6 -101.9 Operating profit 162.8 113
Slide 23: Consolidated cash flow statement
Consolidated cash flow statement (NOK million) Q4 15 Q3 15 Q4 14 FY 2015 FY 2014 Net cash flow from operations -79.5 -30.5 48.1 504.8 -96.5 Net cash flow from investments -387.0 -193.8 -132.2 -2,408.8 -909.8 Net cash flow from financing 1,183.4 203.4 390.8 2,535.2 972.0 Net increase/(decrease) in ca
Slide 24: Segment results – Q4'15
Segment results – Q4’15 Power Operation & Development & (NOK million) Production Maintenance Construction Corporate Eliminations Total External revenues 253.6 1.5 - - - 255.1 Internal revenues - 9.7 188.6 2.7 -201.1 - Net gain/(loss) from sale of project assets - - 11.5 - - 11.5 Net income / (loss)
Slide 25: Segment results – Full year 2015
Segment results – Full year 2015 Power Operation & Development & (NOK million) Production Maintenance Construction Corporate Eliminations Total External revenues 863.0 4.1 0.7 - - 867.7 Internal revenues - 51.4 1,146.6 7.5 -1,205.5 - Net gain/(loss) from sale of project assets - - 14.1 - - 14.1 Net
Slide 26: SSO's profit normally impacted by growth investments
SSOs proportionate share of net profit SSO’s profit normally impacted by growth investments • Scatec Solar is investing early phase project development Fourth quarter (NOKm) Consolidated SSO prop. share % and construction as well as Total revenues 266.6 125.1 47% corporate functions that impacts SSO
Slide 27: Project companies' financials – Q4'15
Project companies’ financials – Q4’15 Czech Segment Total SSO prop. (NOK million) Republic Kalkbult Linde Dreunberg ASYV Agua Fria overhead segment share SSO shareholding 100% 39% 39% 39% 43% 40% - - - Revenues 10.9 75.2 45.7 84.5 7.0 30.1 0.2 253.6 106.2 OPEX -2.7 -6.7 -3.7 -5.3 -1.2 -2.4 -2.7 -24.
Slide 28: Project companies' financials – Full year 2015
Project companies’ financials – Full year 2015 Czech Segment Total SSO prop. (NOK million) Republic Kalkbult Linde Dreunberg ASYV Agua Fria overhead segment share SSO shareholding 100% 39% 39% 39% 43% 40% - - - Revenues 87.1 283.9 145.4 268.8 28.6 47.7 1.4 863.0 391.9 OPEX -9.5 -32.1 -16.8 -25.6 -4.
Slide 29: Project companies' financials – Full year 2015
Project companies’ financials – Full year 2015 Power Production D&C, O&M, Czech Agua Red EJRE/ Corporate & Consolidated (NOK million) Republic Kalkbult Linde Dreunberg ASYV Fria Hills Oryx GLAE Eliminations* Project equity 179.6 300.2 176.8 391.2 28.8 345.2 268.1 61.6 170.6 -496.7 1,425.4 Total asse
Slide 30: D&C margins reduces consolidated PP&E
D&C margins reduces consolidated PP&E Build up of PP&E as per 31.12.2015 NOKm • Margins created through D&C of power plants are eliminated in 66 131 405 5 725 consolidated financial statement 1935 164 5216 5 240 • Elimination booked against PP&E in consolidated financial statements Leads to: • A neg
Slide 31: Increased production in South Africa and Honduras
Increased production in South Africa and Honduras Power Production (MWh) Dreunberg Linde Czech portfolio • The quarter on quarter increase in ASYV Kalkbult Agua Fria production volumes is explained by seasonal effects in South Africa and a full quarter of production on 151,575 the 60 MW Agua Fria pl
Slide 32: Key figures last three years
Key figures last three years Unit 2013 2014 2015 2016 target Gross capacity* MW 135 219 383 ~550-600 Gross production MWh 63,996 273,827 466,277 ~815,000 Consolidated revenues MNOK 129 476 881 CF to equity PP & O&M MNOK 11 97 155 180-200 CF to equity D&C MNOK 431 179 76 Project backlog* MW 122 8 344