Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — H1 2022 Earnings Presentation
26 slides from Greencoat Renewables's earnings presentation, Sep 12, 2022
Slide 1: Greencoat Renewables PLC HY 2022 Results Presentation
Greencoat Renewables PLC HY 2022 Results Presentation STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been prepared and issued by Greencoat Renewables PLC (the “Company” or “Greencoat Renewables”). While this Presentation has been prepared in good faith, the information contained in it has not been independently verified and does not purport to b
Slide 3: Overview
SECTION 1 Overview Europe STRICTLY CONFIDENTIAL
Slide 4: Greencoat Renewables H1 2022 Highlights
Greencoat Renewables H1 2022 Highlights Building a leading European renewable infrastructure company Key Strengths Simple business model Consistent delivery of business model TSR of 51%1 since IPO with 28% via dividends Proven growth and aggregation capability 7x capacity growth in 5 years since IPO
Slide 5: Greencoat Renewables H1 2022 Overview
Greencoat Renewables H1 2022 Overview 3.0x1 Strong cash generation of €92.1m1 Divided Cover 6.18c per share €31.1m of dividends paid in H1 2022 2022 Dividend Target €1.101 NAV per share NAV growth of 5.0c per share in H1 2022 Q2 2022 NAV 1,028 MW €422m invested in H1 2022, with continued diversifica
Slide 6: ESG – Carbon Negative, Community Positive
ESG – Carbon Negative, Community Positive Comprehensive ESG approach, spanning operational best-practice and disclosure Operational ESG performance Disclosure and progress H1 2022: 1,127 GWh of green electricity, “A” as UN Principles for Responsible generating 677k tonnes of CO2 savings Investment (
Slide 7: Operational Considerations
SECTION 2 Operational Considerations STRICTLY CONFIDENTIAL
Slide 8: Portfolio Structure and Strategy
Portfolio Structure and Strategy Keeping portfolio assets “low risk” and adding long-term contracted cashflows 2 1 I 3 1) Merchant Power Prices 2) Highly Contracted Revenue Stream 3) Inflation Protected Revenues • Day ahead baseload power prices across Europe have • The majority of GRP’s revenues ar
Slide 9: Continued Business Evolution
Continued Business Evolution Maturing technology and market developments opening potential for future value uplift Near term Medium term Long term Revenue optimisation Technology deployment Valuation upside Greencoat PIP (Performance Improvement Plan) Best in class operational excellence programme b
Slide 10: Active Asset Management Approach
Active Asset Management Approach Driving value through optimising Revenue, Generation and Opex Performance PPA Strategy and Battery Asset Generation PPA Strategy • Installed Nordex turbine upgrades to Glencarbry and • Implemented a new trading strategy at Knockacummer and Knockacummer, increasing en
Slide 11: Financial Performance and Structure
SECTION 3 Financial Performance and Structure STRICTLY CONFIDENTIAL
Slide 12: Financial Performance Overview
Financial Performance Overview Consolidated Cash P&L (€’000) HY 2019 HY 2020 HY 2021 HY 2022 Key Considerations Revenue 47,622 66,279 72,984 143,435 Operating Expenses (12,770) (17,892) (23,317) (33,017) • Strong revenue growth year on year driven by expanded portfolio and Tax/VAT 168 481 (514) (1,8
Slide 13: Net Asset Value
Net Asset Value Key Considerations €935.2m €427.0m (€23.1m) €190.6m (€5.9m) (€267.6m) €1,256.1m 1800 • During the period, the 5.0 cent per share NAV increase is attributable to: 1600 • Cash generated over the period 1400 (minus dividend paid) of +6.3 cent; 1200 • Portfolio depreciation of -3.3 1000
Slide 14: Capital Structure to Drive Growth
Capital Structure to Drive Growth Optimised capital structure combining low cost and fixed interest rate Key Considerations GAV (Capital Structure) 2,500 €1,017m €1,177m €1,566m €2,155m • €422m invested in or committed to new GAV Y/E 2019 GAV Y/E 2020 GAV Y/E 2021 GAV H1 2022 assets in H1 2022 - • €
Slide 15: Acquisitions
SECTION 4 Acquisitions STRICTLY CONFIDENTIAL
Slide 16: Pending Completion / H1 2022 Acquisitions
H1 2022 Acquisitions Continued consolidation of a Irish market and expansion into Europe Tullahennel Wind Farm • 37.05 MW asset located in County Kerry (c.€75m) • In operation since September 2018 and receiving REFIT until December 2032 Soleidra Wind Farm Invested • 24 MW asset located in Northeast
Slide 17: Diversifying Further into Europe in 2022
Diversifying Further into Europe in 2022 Acquisition of Stake in Borkum Riffgrund I Investment Considerations Asset Highlights ▪ Acquisition of a 50% stake for c.€350m which closed in Q2 2022 ▪ 316 MW offshore wind farm, located in Germany’s exclusive economic zone in the North Sea ▪ Bilateral proce
Slide 18: Forward Sale Model – Construction Update
Forward Sale Model – Construction Update Investment Manager expertise enlarging value chain opportunity Construction Construction Expected Partner Progress Completion Capacity Kokkoneva • Commissioning and Kokkoneva, 9 Nordex N149 test/run ongoing Q3 43.2 4.8MW turbines Abo Wind COD expected in Sept
Slide 19: Summary
Summary STRICTLY CONFIDENTIAL
Slide 20: Greencoat Renewables Portfolio and Commitments
Greencoat Renewables Portfolio and Commitments Market-leadership achieved in Ireland, accelerating growth in continental Europe High-quality, highly contracted, € denominated portfolio 29 Assets 6 years Average age of assets Increasingly diversified into one of world’s biggest markets 6 countries Ma
Slide 21: Balance Sheet with Capacity for Growth
Balance Sheet with Capacity for Growth Funding structure to support M&A pipeline €m Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Key Considerations Equity Acquisitions 119 97 72 - 31 135 • Oversubscribed equity raise with Expect to fund over €50m through reinvested cash gross proceeds of €281.5m
Slide 22: Positive Outlook for Execution of Business Plan
Positive Outlook for Execution of Business Plan Market entry in 6 European countries, ability to scale demonstrated Continued Diversification Presence in Ireland, France, Germany, Sweden Finland1, Spain1 and Sweden Leading Position Norway Market - 4.1 GW Market - 11.1 GW Portfolio – 236 MW, 2 assets
Slide 23: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 24: HY 2022 Financial Performance (1/2)
HY 2022 Financial Performance (1/2) For the 6 months ended 30 June 2022 Group and wind farm SPV cash flows Net(1) Gross(1) €’000 €’000 Net cash generation(1) 85,504 92,057 Dividends paid (31,114) (31,114) SPV level Capex & PSO Cashflow(2) 8,295 8,295 SPV level debt repayment - (6,553) Acquisitions(3
Slide 25: HY 2022 Financial Performance (2/2)
HY 2022 Financial Performance (2/2) For the 6 months ended 30 June 2022 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 143,435 143,435 Operating expenses (33,017) (33,017) Tax/VAT (1,848) (1,848) Wind farm operating cashflow 108,570 108,570 SPV level debt interest (2,774) (2,774) SPV
Slide 26: Portfolio as at June 30st, 2022
Portfolio as at June 30st, 2022 Market leading Irish position, with European market entry now executed # Asset Country Vendor Acquired % Net MW 1 Knockacummer Ireland Brookfield Mar-17 100% 100 2 Killhills Ireland Brookfield Mar-17 100% 36.8 • Focus on Ireland for 15 Total y/e 2017 136.8 initial 2 y