Refuels N.v. · OSL:REFL
Refuels — Investor Presentation (April 2024)
37 slides from Refuels's investor presentation, April 2024
Slide 1: Company presentation April 2024
Company presentation 2024 April 2024
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND NOT FOR RELEASE, The contents of this Company Presentation are not to be construed as financial, legal, business, investment, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR tax or other profes
Slide 3: Agenda
1. Introduction 2. Market 3. Operational overview 4. Financials 5. Appendix
Slide 4: Key investment highlights
Key investment highlights KEY CASH SIGNIFICANT CO2 INFRASTRUCTURE CONTRIBUTION VOLUME GROWTH IMPACT Network of Run rate at Volume growth of Cut over 15 12 47% 150k truck filling stations GBPm y-o-y in tonnes of emissions across UK end of 2024 CY Q1 2024 in CY 2023 + RTFCs 4
Slide 5: Transaction and process overview
Transaction and process overview Company structure before and after contemplated transaction Background Current structure Targeted structure • ReFuels has progressed discussions with its joint venture partner, investment funds managed by Foresight Group, about acquiring the remaining part of the sta
Slide 6: ReFuels is the leading truck fleet biomethane filling station operator
ReFuels is the leading truck fleet biomethane filling station operator Current station network Truck fleet Per truck considerations Operational station Planned station In-build 1,731 960 32k GBP ~6k 13 Vehicles using Vehicles in current Average volume per Average gross profit operational refuelling
Slide 7: Strong underlying growth
Strong underlying growth Monthly Annual run-rate EBITDA from No. of CNG fuelled HGV trucks dispensed volumes Foresight JV stations # trucks kTons GBPm Target of GBP 12m in annualized EBITDA in December 2024 +95% +36% +44% +55% +39% +60% +1.5x +3.1x +1.6x ~2,500 ~7.1 12.0 1,731 4.4 7.2 1,275 3.2 655
Slide 8: Agenda: Market
1. Introduction 2. Market 3. Operational overview 4. Financials 5. Appendix
Slide 9: Underlying market with blue-chip customers
Underlying market with blue-chip customers Penetration of 4x22 articulated HGV Licensed HGVs >18t in the UK (‘000) market Blue-chip customer base 230 21,000 217 220 221 220 204 212 196 2,481 85 82 83 84 82 78 81 75 960 1,521 103 108 112 115 117 118 124 97 24 23 23 22 22 21 20 21 2014 2015 2016 2017
Slide 10: Introduction of 6x2 CNG trucks is expected to substantially increase the customer order book
Introduction of 6x2 CNG trucks is expected to substantially increase the customer order book The 6x21 CNG truck market is ~6x the 4x2 market… …indicating significant potential upside to current order book Total 4x2 truck market Total 6x2 truck market Additional CNG vehicles through the adoption of 6
Slide 11: Clear cost advantage for customers driving CNG truck demand
Clear cost advantage for customers driving CNG truck demand Highlights for customers Historical fuel cost savings2 compared to diesel 40% Historical annual fuel cost savings of £15k+ £15k 01 compared to diesel annual savings 35% 30% 25% Historical vehicle upfront capex premium of £20k to £20k-£25k 2
Slide 12: Agenda: Operational overview
1. Introduction 2. Market 3. Operational overview 4. Financials 5. Appendix
Slide 13: A typical Bio-CNG station
A typical Bio-CNG station Gas inlet 6-7 CAPEX to build, excl. land costs1 GBPm Fuel dispensers 8 Time to fill a tank with 400+ miles (650 km) range. Stations minutes typically have 14+ dispensers Bio-CNG compressor 20-29 Steady-state volume per annum mkg High pressure storage 660-1,400 Steady-state
Slide 14: Strong historical volume growth has been achieved
Strong historical volume growth has been achieved Comments Monthly dispensed volume (mkg) 8 Implied dispensed volume of 13 stations currently in operation, with 2 more stations New stations ~7.1mkg in December 2024 01 under construction 7 ~4.4mkg dispensed in March 6 2024, equivalent to ~53.1mkg Cur
Slide 15: Current network in place to serve huge volume growth
Current network in place to serve huge volume growth ReFuels has a strategy of station rollout that places public access stations in areas of high HGV demand ReFuels’ network currently cover all major routes in the UK within vehicle distance, except from the M40 Percentage of steady Run-rate New sta
Slide 16: Strong outlook backed by confirmed order book of trucks and additional unconfirmed orders
Strong outlook backed by confirmed order book of trucks and additional unconfirmed orders Comments Strong truck pipeline in an attractive market Gas truck penetration could reach 17- CNG HGVs 30% of the HGV >18t GVW 1 segment 01 by 2030, resulting in up to 89,000 Total market Total market natural ga
Slide 17: Mobile refueling stations impact growth and further penetration
Mobile refueling stations impact growth and further penetration Mobile refueling station (MRS1) MRSs typically deployed in sites with planned stations • A cost-effective mobile solution until a CNG Fuels station opens in the area • The 7 MRSs in operation can be commissioned within hours and relocat
Slide 18: Agenda: Financials
1. Introduction 2. Market 3. Operational overview 4. Financials 5. Appendix
Slide 19: Single model station economics
Single model station economics Illustrative single station EBITDA contribution Illustrative ROIC calculation (GBP) CAPEX / station, incl. land cost 6.5-8.5m 450-750 Steady state number of trucks1 EBITDA contribution 2-4m X X 0.25 X 50-60% = ~2-4m Depreciation2 0.65-0.85m Compression EBITDA EBITDA co
Slide 20: Stations and truck volumes
Stations and truck volumes Comments Expected station and truck capacity development Current CNGF site Foresight sites New CNGF sites 15 sites currently funded, 01 contemplating funding of 5 additional 20 sites 5 Stations 13 10 12 14 New stations costs GBP 6-7m to 9 02 build, plus land cost of GBP 0.
Slide 21: Per truck considerations
Per truck considerations Key metrics 4x2 Fleet 6x2 Fleet Stable consumption – 6x2 anticipated to drive the average truck volume Average dispensed volume per truck (annualized, kg) Avg 32,000 Avg 45,000 Volume per truck / Volume per truck / annum annum ~31,600 ~31,600 ~31,300 ~30,700 GBP 0.25 GBP 0.2
Slide 22: More trucks will drive EBITDA contribution
More trucks will drive EBITDA contribution EBITDA contribution for current station network excl. RTFCs and group overhead 30-40 stations (mid-term network estimate) GBP ~44m ~282mkg GBP ~12m ~82mkg GBP ~7m ~53mkg1 Mid-term Current ReFuels fleet of ~2,500 CNG fuelled Truck fleet of ~8,800 CNG target
Slide 23: Additional and highly relevant upside from RTFCs
Additional and highly relevant upside from RTFCs Monetizing on biomethane trading through RTFCs yielding additional upside 3 ways for obligated suppliers to meet government 1 2 3 requirements: Supplying Purchasing Paying a buy-out RTFC RTFC Volume 3.8 renewable fuels RTFCs price Price margin Biometh
Slide 24: Illustrative group cash flow
Illustrative group cash flow RTFC price GBP ~44m ~282mkg Station network including current fleet order book 19p 22p 25p EBITDA contribution ~12m ~12m ~12m GBP ~12m Group overhead – Existing network 6-7m 6-7m 6-7m ~82mkg Group overhead – Future stations 3-5m 3-5m 3-5m GBP ~7m RTFC contribution1 ~2m ~
Slide 25: Confirmed station pipeline with clear visibility to reach 30-40 stations
Confirmed station pipeline with Ongoing site selection clear visibility to reach 30-40 and screening for stations future growth Late-stage In-build or Early-stage In operation development or Opportunities planned construction development under contract The complete Once sites have been When applicat
Slide 26: CNG Foresight Ltd - Financials
CNG Foresight Ltd - Financials Compression revenue (Mgmt accounts, GBPm) Adj. EBITDA bridge (Mgmt accounts, GBPm) 3.50 Financing costs 3.2 recharged to CNG 2.9 Foresight from 3.00 Group CNG Fuels 2.5 eliminations 0.4 2.50 2.1 0.1 2.00 0.5 1.50 Normalisation of 1.7 electricity cost to 1.3 current pow
Slide 27: Agenda: Appendix
1. Introduction 2. Market 3. Operational overview 4. Financials 5. Appendix
Slide 28: Experienced team with incentives highly aligned with shareholders
Experienced team with incentives highly aligned with shareholders Philip Fjeld – CEO, Board of Directors Mike Scott – Operations and Construction Director • 20 years of experience in the gas industry • 22 years' experience within the civil engineering and construction industry • Founded FLEX LNG in
Slide 29: Solidifying market leadership and increasing barriers to entry as station coverage expands
Solidifying market leadership and increasing barriers to entry as station coverage expands Attractive locations Right competencies Network effect 13 stations, 2 in-build and >100 ~80 employees across site design, An expanded network increases range and makes potential sites in pipeline permitting, E
Slide 30: Overview of the Heavy Good Vehicle fleet
Overview of the Heavy Good Vehicle fleet Introduction of 6x2 CNG trucks from Iveco and Scania set Overview of truck types to impact fleet uptake Truck type Description Total Licensed HGVs >18t in the UK (‘000) weight Tractor and trailer 21 6x2 combination (two rear 44t axles) 85 6x2 trucks 4x2 truck
Slide 31: Mobile refueling stations
Mobile refueling stations Mobile refueling stations overview Operational station In-build stations MRS 7 operational refuelling stations1 ~29% of total volume dispensed from MRSs number of trucks served daily through MRSs 31 Note: 1) Two more stations expected to be completed before year end 2024
Slide 32: Station capacity and steady state
Station capacity and steady state Capacity constraints Steady state assumptions Implied usage Max refueling Assumed steady Steady state truck Dispenser capacity Implied usage events state capacity • Dispenser: 12-14 • Time to dispense: 8 minutes Steady state Maximum refueling Assumed steady Implied
Slide 33: New stations aligned with local demand to ensure quick ramp-up and EBITDA contribution
New stations aligned with local demand to ensure quick ramp-up and EBITDA contribution New stations Illustrative new station economics • 5 attractive higher-capacity station locations expected to be ready for construction over the next 4 to 6 10-14 Accumulated cash flow excluding RTFCs (GBPm) 15.0 F
Slide 34: Large potential upside to gross margin given incremental RTFC prices in 2024
Large potential upside to gross margin given incremental RTFC prices in 2024 GBP million 34p • Overall, a modest increase in RTFC prices RTFC prices (‘p per RTFC’) during 2024 will create significant incremental Cumulative Gross Profit 2024 value 30p • RTFC prices are currently improving and ReFuels
Slide 35: CNG Foresight Ltd - Financials
CNG Foresight Ltd - Financials Income statement (Audited) Balance sheet (Audited) Figures in GBPm FY22 FY23 Figures in GBPm FY22 FY23 Turnover 22.6 37.1 Non-current assets Cost of sales -20.3 -35.2 Property, plant and equipment 45.7 63.1 Right-of-use assets 1.2 1.2 Gross profit 2.4 1.9 Total non-cur
Slide 36: Pro forma consolidated group financials
Pro forma consolidated group financials P&L for the 6-month ended December 2023 (Unaudited) Consolidation assumptions Figures in GBPm Jul ’23 – Dec ’23 (Unaudited) Revenue 47.5 CNG Foresight Group was acquired on 30 June 23. Unaudited Cost of sales -44.3 01 figures Gross profit 3.3 Distribution cost
Slide 37: ReFuels is the UK's leading supplier of alternative fuels to commercial vehicles
ReFuels is the UK’s leading supplier of ReFuels N.V. alternative fuels to commercial vehicles, Evert van de Beekstraat 1-104, supplying 100% renewable biomethane The Base B to heavy goods vehicles from our rapidly 1118 CL Amsterdam growing network of Bio-CNG stations. refuels.com