Abu Dhabi National Energy Company · ADX:TAQA
Abu Dhabi National Energy — Investor Presentation (June 2023)
27 slides from Abu Dhabi National Energy's investor presentation, June 2023
Slide 1: Abu Dhabi National Energy Company (TAQA) Investor Presentation
Abu Dhabi National Energy Company (TAQA) Investor Presentation POWERING A THRIVING FUTURE
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Abu Dhabi National Energy Company PJSC (“TAQA” or the “Company”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The Company relies on information obtained from sources believed to b
Slide 3: Table of contents
Table of contents 1 A leading integrated utility, underpinned by strong, recurring cash flows 4 2 Integrating ESG into how we do business 10 3 Maintaining strong financial performance 15 4 Investment thesis 18 5 Appendix 20 3
Slide 4: A leading integrated utility, underpinned by strong, recurring cash flows
A leading integrated utility, underpinned by strong, recurring cash flows POWERING A THRIVING FUTURE
Slide 5: A leading integrated utility at the heart of UAE’s energy ambitions
A leading integrated utility at the heart of UAE’s energy ambitions Building a global business upon Operations spread across three Strong financial performance & 1 solid foundations in UAE 2 business lines 3 predictable cash flow generation FY 22 REVENUE SHARE 124 ~100,000 km $13.6bn $5.7bn mboe/d w
Slide 6: TAQA a key driver of the energy transition in Abu Dhabi
TAQA a key driver of the energy transition in Abu Dhabi A deliberate shift towards cleaner energy sources Planned power generation Installed generation capacity by structure in Abu Dhabi type across EWEC network 90% Nuclear Solar Gas 80.1% 80% 68.9% 70% 60% 50% • Base load for Abu • Intermittent pow
Slide 7: Well-articulated strategy to become a low carbon power and water champion
Well-articulated strategy to become a low carbon power and water champion focused on optimization and growth MISSION To be a low carbon power and water champion Key 2030 targets To provide the clean power and water that governments, businesses VISION and consumers need for a sustainable and successf
Slide 8: Breakdown of TAQA’s power generation capacity
Breakdown of TAQA’s power generation capacity Share of clean energy increasing in portfolio Technology mix Gross capacity (GW) Net capacity (GW) (gross capacity) Geothermal Other 34.0 Coal 5.5% 0.5% 6.8% 7.2 24.2 Wind 16.4 12.7% 5.0 Clean 14.3 2.9 energy at 1.9 ~37% of 11.4 26.8 portfolio Thermal 19
Slide 9: Cash flow stability entrenched in TAQA’s business model
Cash flow stability entrenched in TAQA’s business model T&D GENERATION Building blocks of Maximum Allowed Revenue (MAR): • Entire domestic and international • Capacity Payment is dependent on generation fleet operates under availability (rather than off-take) RoI on Regulated long-term take or pay c
Slide 10: Integrating ESG into how we do business
Integrating ESG into how we do business
Slide 11: ESG strategy: Setting milestones enroute to 2050 net-zero target
ESG strategy: Setting milestones enroute to 2050 net-zero target Strategic pillars and ambitions GREENHOUSE GAS WATER AND OCCUPATIONAL DIVERSITY AND LOCAL COMMUNITY CORPORATE GREENHOUSE EMISSIONSGAS WATER AND EFFLUENTS OCCUPATIONAL HEALTH AND SAFETY DIVERSITY EQUAL AND OPPORTUNITY LOCAL COMMUNITY EN
Slide 12: GHG emissions: on-track for 2030 emission reduction targets
GHG emissions: on-track for 2030 emission reduction targets 2022: 8% Scope 1 & 2 emission reduction; 16% reduction in intensity based on revenue Scope 1 and 2 GHG Emissions based on Financial Control Approach (mtCO2e) Emission Factor - Revenue (tCO2e/mUS$) 64.76 62.93 62.62 0.05 0.09 0.08 57.81* 2.2
Slide 13: Improvements made across several ESG metrics in 2022
Improvements made across several ESG metrics in 2022 Social Governance Health & Safety Board -24% No. of spills Independent board members 82% (67% in 2022) -87% Vol. of spills Female board members 27% (0% in 2022) -4% Recordable Injury Rate Sustainability Committee established Zero fatalities People
Slide 14: ESG Rating agencies
ESG Rating agencies TAQA efforts globally recognized by key sustainability rating agencies Agency Range CCC to AAA 0 to 100 0 to 100% (0 = top mark) (100% = top mark) +2 Notches Upgrade +2 Notches Upgrade 40% percentage point improvement TAQA’s B BBB 49 27.1 40% 80% progress Laggard Average Severe r
Slide 15: Maintaining strong financial performance
Maintaining strong financial performance
Slide 16: Q1 2023 performance
Q1 2023 performance Healthy FCF generation, despite volatility in earnings • T&D segment the biggest source of top-line in Q1 2023 • One-off gain on recognition of ADNOC Gas investment biggest driver of bottom-line growth Revenue (AEDm) Adj. EBITDA (AEDm) +5.8% -5.4% 5,613 5,311 12,413 13,139 1 -4.8
Slide 17: Liquidity and debt profile March 2023
Liquidity and debt profile March 2023 Prudent balance sheet and cash flow management • Decline in proportion of fixed rate debt and increase in average interest rate driven by repayment of USD 1 billion bond in January and utilization of revolving credit facility (USD 750 million) in March • Liquidi
Slide 18: Investment thesis
Investment thesis TrNQaN
Slide 19: Key strengths of TAQA
Key strengths of TAQA 1 One of the Largest Listed Integrated Utility Companies in EMEA (Assets of USD 49.4 billion for FY 2022) 2 Vertically Integrated Across the Utilities Value Chain Leader in the (Exclusive rights to T&D in Abu Dhabi and a minimum of 40% in all EWEC generation projects until 2030
Slide 20: Appendix
Appendix POWERING A THRIVING FUTURE
Slide 21: Appendix A: A closer look at the business lines
Appendix A: A closer look at the business lines
Slide 22: TAQA Generation (excluding Masdar)
A closer look at the Business Lines TAQA Generation (excluding Masdar) National champion with a growing global footprint Spearheading TAQA’s green initiatives • Dafrah PV2 (2GW capacity) will be the world’s single largest solar PV farm upon 21 power & water assets across the globe completion • 14 po
Slide 23: Masdar: Aiming to be a global clean energy leader
Masdar: Aiming to be a global clean energy leader Masdar shareholding Green Hydrogen shareholding Joint Venture between TAQA, ADNOC & Mubadala A strategic partnership to launch a global clean energy ADNOC TAQA ADNOC powerhouse 24% 43% 24% TAQA • Abu Dhabi’s flagship clean energy company 43% • Plans
Slide 24: Transmission & Distribution (T&D)
A closer look at the Business Lines Transmission & Distribution (T&D) Key utility infrastructure provider in the UAE Preparing the ground for energy transition Major player in the UAE power and water segment • Investments in energy transition readiness and associated infrastructure, incl. battery st
Slide 25: Abu Dhabi power and water sector flows
A closer look at the Business Lines Abu Dhabi power and water sector flows Material flow Abu Dhabi Department of Energy Payment flow Fuel: (formerly the Regulation and Supervision Bureau, RSB) MAR Balance (MAR less tariffs) Abu Dhabi Emirates Water & Electricity Company (EWEC) Department ADNOC Firm
Slide 26: Oil & Gas
A closer look at the Business Lines Oil & Gas Assets spread across 3 continents Reducing carbon footprint • Proactive approach to emissions management and reduction across all OpCos, Canada • Operating asset acreage with large resource potential working closely with stakeholders to execute and deliv
Slide 27: TAQAN
TAQAN
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