Grenergy Renovables S.A · BME:GRE
Grenergy Renovables — Natixis Renewable Forum 2020
45 slides from Grenergy Renovables's conference presentation, June 2020
Slide 1: Investor Presentation June 2020
INVESTOR PRESENTATION June 2020
Slide 2: Disclaimer
DISCLAIMER By attending this presentation and/or by accepting this presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer. The information contained in this presentation (“Presentation”) has been prepar
Slide 3: Grenergy in a Nutshell
GRENERGY IN A NUTSHELL INTEGRATED BUSINESS MODEL, present in the entire value chain of our projects From a purely Solar PV player to a MULTI-ENERGY company (Solar PV, Wind, Storage) MULTI-COUNTRY player, with strong focus in Spain and LatAm Tangible PIPELINE >4GW and high project CONVERSION ratios a
Slide 4: Key Figures
KEY FIGURES 4.5 GW +700 MW >250 MW 215 MW 466 MW Pipeline A.D. Pipeline Increase Built Under Construction Backlog last 3 months 6 + 150 >50% Countries Employees Of employees abroad €33M €5.6M €3.4M 3.6x 1Q20 Revenues 1Q20 EBITDA 1Q20 Net Income Net Deht/EBITDA1 March 31th 2020 04 1: Annualizel EBITD
Slide 5: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 6: 1-Renewables Revolution
1-RENEWABLES REVOLUTION Wind & Solar to represent 30% of installed global capacity by 2040 Electrification to increase global demand of electricity Global installed power capacity is projected to rise from c. 6.7TW in 2016 to 12.0TW in 2040, with c. 30% of installed capacity being renewable (c. 17% S
Slide 7: Spain: Key Renewable Energy Market
1-RENEWABLES REVOLUTION Spain: Key Renewable Energy Market Spain is currently one of the top countries in the world for the development of renewable energy, specially Solar PV Spain: The Best Conditions European Irradiation Level ✓ Top irradiation geography in Europe >1750 kwh/m2 ✓ Closing of coal a
Slide 8: Renewables' Revolution: A Sector in Motion
1-RENEWABLES REVOLUTION Renewables’ Revolution: A Sector in Motion… Traditional pure Solar-PV players currently entering the wind sector, and vice versa Surged as a pure Solar PV player, but started the transition towards a multi-technology player back in 2015 Wind projects 600MW Hybrid Battery Pilo
Slide 9: 1-COVID-19 Impacts in Our Sector
1-COVID-19 IMPACTS IN OUR SECTOR 1 Reduction in electricity prices due to a significant fall in the demand for power ● Renewable generators that rely on fixed power price agreements with credit-worthy offtake counterparts are not materially affected by the reduction in power prices. ● PPA strategy is
Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 11: 2-Proven Track Record
2-PROVEN TRACK RECORD Evolving into a Multitech & Multicountry IPP 2007 2015 2020 20221 INCEPTION MAB IPO TODAY TOMORROW Technology Geographical Presence + new markets 300 MW Pipeline 4,500 MW Pipeline >7,000 MW Pipeline Target Capacity 50 MW built >250 MW built 2 GW built Target 1.5 GW IPP Target 1
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 13: 3-Platform with Relevant Growth Potential
3-PLATFORM WITH RELEVANT GROWTH POTENTIAL Increasing Pipeline with strong conversion ratio from Early Stage to Backlog 4.5 GW Pipeline SOLAR PV WIND Under Advanced Early Under Advanced Early MW Const Backlog Dev Stage Total MW Const Backlog Dev Stage Total Probability Probability 100% 80% >50% <50%
Slide 14: Project Portfolio: 4.5 GW Pipeline
3-PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio 4.5 GW Pipeline Project Classification1 < 50% Early Stage Success Rate 2,110MW > 50% Advanced Development Success Rate 1,666MW 2022 1,510MW 2021 > 80% Backlog 644MW Success Rate 466MW 2020 195MW Ready to Build Construction > 100% 215MW Succe
Slide 15: Projects Under Construction & Backlog
3-PLATFORM WITH RELEVANT GROWTH POTENTIAL Projects Under Construction & Backlog Grenergy is expected to bring almost 700MW to COD during the next months Resource Country Project Type MW B20 COD (Hours) Argentina Kosten Wind 24 Yes 5.033 3Q20 Peru Duna Wind 18 Yes 4.900 4Q20 Peru Huambos Wind 18 Yes
Slide 16: Projects in Advanced Development
3-PLATFORM WITH RELEVANT GROWTH POTENTIAL Projects in Advanced Development Importants advances in Chilean and Colombian projects, increasing A.D pipeline to 1,7GW (+700 MW) Advanced Development projects Resource Country Project Type MW COD Offtaker Negotiation (Hours) Spain Belinchon Solar 150 2.150
Slide 17: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 18: 4-Integrated Business Model
4-INTEGRATED BUSINESS MODEL Multi-Technology Player Across the Entire Value Chain Integrated Player Grenergy has the expertise to build and operate large-scale renewable energy plants Development Financing Construction Power Operation & Asset Generation Maintenance Management Multi-Technology Player
Slide 19: Integrated Business Model - B2O
4-INTEGRATED BUSINESS MODEL - B20 Grenergy increases its IPP target to 1,5GW in 2022. Build to Own (B2O) MW 163 660 1,460 2022 Estimation 800 Chile Chile Spain +100 634 MW (43%) Spain 600 MW (41%) Colombia Peru 500 Argentina +400 +66 +200 163 Rest2 +24 +300 226 MW (16%) +36 +231 +103 20201 20211 202
Slide 20: 2020 IPP Projects on Track
4-INTEGRATED BUSINESS MODEL - B20 2020 IPP Projects on track KOSTEN Wind Project DUNA HUAMBOS Wind Pr oject 24MW COD 3Q20 36MW COD 4Q20 Commissioning phase Building phase oject oject QUILLAGUA Solar PV Pr ESCUDEROS Solar PV Pr 103MW COD 3Q20 200MW COD 2Q21 Building phase Closing financing in 3Q20 COD
Slide 21: Built to Own: D&C Margin Covering Equity
4-INTEGRATED BUSINESS MODEL - B20 Built to Own: D&C margin covering a large part of the equity $100M $70M Example of a project finance structure Power plants financed with non-recourse debt & additional tranche of mezzanine debt D&C gross margin covers a large part of Grenergy’s 70% equity contributio
Slide 22: Integrated Business Model - B2S
4-INTEGRATED BUSINESS MODEL - B2S Grenergy has secured income and cash for the next two years €M Build to Sell (B2S) Interenergy Eurus 74 AD Capital 1 Carbon free +72% 18 Sonnedix JP Morgan 44 44 Daelim 20 13 +3x +0% 21 13 23 1 17 23 13 10 22 22 4 +4x 2 4 6 8 8 2015 2016 2017 2018 2019 1Q201 Strateg
Slide 23: Focus PMGD: A Success Story
4-INTEGRATED BUSINESS MODEL - B2S FOCUS PMGD: a success story What is a PMGD and its pros? ● Distribution Projects in Chile with a cap of 9MW nominal. ● Self-dispatched, without curtailment risk. ● Connected directly to the grid without substation cost. ● Shorter development phase. ● Stabilized Pric
Slide 24: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 25: 5-Solid Financial Performance
5-SOLID FINANCIAL PERFORMANCE Track Record of Profitable Growth, fuelled by a strong pipeline of projects Revenues (€M) EBITDA (€M) Net Income (€M) 85 x8 x4 18 18 48 46 x4 11 10 7 17 4 4 10 3 -2 -3 2015 2016 2017 2018 FY19 2015 2016 2017 2018 FY19 2015 2016 2017 2018 FY19 Market Cap (€M) Pipeline (MW
Slide 26: Reported in Separate Business Lines
5-SOLID FINANCIAL PERFORMANCE Reported in 3 separate Business Lines Key Financials by Business Lines D&C ENERGY SERVICES ✓ Developing Greenfield projects ✓ Asset Management - AM ✓ Sale of energy financially & technically feasible ✓ Private & Public PPAs ✓ Operation & Mantenance - O&M Overview ✓ Develo
Slide 27: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION & COVID IMPACTS 2 PROVEN TRACK RECORD OUTPACING TARGETS 3 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 4 INTEGRATED BUSINESS MODEL AND ASSET ROTATION STRATEGY 5 SOLID FINANCIAL PERFORMANCE 6 STRONG GOVERNANCE STRUCTURE WITH FOCU
Slide 28: 6-Strong Governance with Focus on ESG
6-STRONG GOVERNANCE WITH FOCUS ON ESG Committed management team with sound track record in the sector Executive – 1/2 Independent members – 1/3 Female members NON-INDEPENDENT MEMBERS INDEPENDENT MEMBERS BoD in line David Ruiz de Andrés Nicolás Bergareche Mendoza Chairman (Propietary, Exec.) Director
Slide 29: Strengthening Corporate Structure to Become Global
6-STRONG GOVERNANCE WITH FOCUS ON ESG Strengthening Corporate Structure to become a GLOBAL ORGANIZATION New Corporate Offices in Madrid (Spain) New LATAM Regional Office in Santiago (Chile) New Corporate Website 24/7 Control Center 30
Slide 30: Commitment with a Deep ESG Strategy
6-STRONG GOVERNANCE WITH FOCUS ON ESG Commitment with a deep esg strategy ENVIRONMENTAL SOCIAL GOVERNANCE ● Establish efficient waste ● Establish and coordinate the ● Define the ESG authorities management systems in all impact on communities (social within the governing bodies. production processes. a
Slide 31: Translating into Solid Value Creation for Shareholders
6-STRONG GOVERNANCE WITH FOCUS ON ESG Translating into solid value creation for its shareholders General Information Shareholders (As of June 12th 2020)1 Free Share Information Float 32% ● Currency: EUR ● Market: Spanish Stock Exchange ● ISIN: ES0105079000 ● Ticker code: GRE ● Market Cap. (as of Jun
Slide 32: Appendixes
Appendixes
Slide 33: Platform with Relevant Growth Potential: Project Portfolio
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Project Classification1 Early Stage Projects with technical and financial feasibility: < 50% ● Possibilities to secure land and grid; and/or Success Rate 2,110MW ● Possibilities to sell it to third parties Projects with an advanced technical an
Slide 34: Project Overview: Under Construction
PROJECT OVERVIEW 215 MW Under Construction 163 MW Build to Own – 52MW Build to Sell Country Project Site Type MW Control Interconnect. Environmental Build COD Type rights approvals & Own Argentina Kosten Wind 24 Obtained Obtained Obtained Yes 3Q20 U.C Peru Duna Wind 18 Obtained Obtained Obtained Yes
Slide 35: Project Overview: Backlog
PROJECT OVERVIEW 466 MW Backlog 431 MW Build to Own –35MW Build to Sale Country Project Site Type MW Control Interconnect. Environmental Build COD Type rights approvals & Own Chile Mitchi Solar 11 Secured Secured Obtained Yes 1Q21 Backlog Chile Bellavista Solar 10,8 Secured Secured Obtained Yes 2Q21
Slide 36: Project Overview: Advanced Development
PROJECT OVERVIEW 1.666 MW Advanced Development Proven track record and important conversion rate from Advance Development to Backlog Country Project Site Type MW Control Interconnect. Environmental Build COD Type rights approvals & Own Chile PMGDs norte Solar 130 Submitted Submitted Submitted TBD 2Q
Slide 37: Revenue 1Q20
REVENUE 1Q20 Total Revenue +33.3M€ (+227% YoY). 1Q20 vs 1Q19; €M + 232% Revenue increase in D&C* division 1Q20 Revenue + 41% Revenue increase in Services** division ● Energy division will add sales in 3Q 2020 0.0 0.4 +227% 32.8 1Q19 Revenue 33.3 0.3 10.2 0.0 9.9 D&C Energy Services Total D&C Energy
Slide 38: EBITDA 1Q20
EBITDA 1Q20 Total EBITDA +5.6M€ (vs -0.5M€ in 1Q19). 1Q20 vs 1Q19; €M 1Q20 EBITDA + 12x EBITDA increase in D&C division ● Energy division will add EBITDA in H2 2020 0.0 0.0 -0,9 1Q19 EBITDA 0.0 0.0 6.5 0.4 5.6 -0.8 -0.5 D&C Energy Services Corporate Total D&C Energy Services Corporate Total IFRS 4%
Slide 39: Capex 1Q20
CAPEX 1Q20 Grenergy invested 24M€ in Solar PV and Wind projects under construction. €M 0.1 15.9 23.7 2.6 3.7 1.4 Development Wind Project: Wind Project: Quillagua Other Total Capex Capex Kosten Duna Huambos Capex expected to grow with Quillagua and Duna Huambos final disbursement 40 SOURCE: Company
Slide 40: Free Cash Flow at Group Level 1Q20
FREE CASH FLOW AT GROUP LEVEL 1Q20 €M 5.6 -17.6 -0,3 11.9 -1.4 28.8 -2.0 -23.7 22.6 EBITDA Change in Taxes and Growth Project ST Financial Other End 2019 operating WK Financial Capex Debt Investments ST debts End 1Q20 Exp. Cash out 41 SOURCE: Company
Slide 41: Change in Net Debt and Leverage
CHANGE IN NET DEBT AND LEVERAGE Overall leverage kept growing as expected to 3,6x Net Debt/EBITDA due to capex investments €M Change in net debt Leverage1 2018 Full year 3,6x 1H19 2019 Full year -41.2 1Q20 2,0x -75.3 -12.3 -23.7 0,5x 2.0 0,2x 2019 Funds from Growth Other FY19 Net Debt ND/EBITDA Net
Slide 42: 1Q20 Results: Profit and Losses
1Q20 Results Profit and Losses Solid increase in Net Income Profit and losses (€k) 1Q20 1Q19 Delta Revenue 33.278 10.184 227% Income from customer sales 22.838 10.184 Income from related from third party sales 10.440 - Procurement (24.108) (8.799) 174% Procurement from third parties (13.668) (8.799) A
Slide 43: 1Q20 Results: Balance Sheet
1Q20 Results Balance Sheet Balance Sheet (€k) 31/3/20 31/12/19 Var. Non-current assets 112.268 88.044 24.224 Solid balance Intangible assets Fixed asset 9.538 93.961 9.446 70.347 92 23.614 position to Assets with right of use 4.361 4.564 (203) Deferred tax assets 4.199 3.498 701 finance growth Other
Slide 44: 1Q20 Results: Net Debt
1Q20 Results Profit and Losses In spite of important investment activity the company has still ample capacity for finance growth Net Debt (€k) 1Q20 FY19 1Q20-FY19 Long-term financial debt 23.428.199 26.097.393 (2.669.194) Short-term financial debt 7.663.900 4.841.280 2.822.620 Other long term debt 208.2
Slide 45: June 2020
JUNE 2020