Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — H1 2018 Earnings Presentation
25 slides from Greencoat Renewables's earnings presentation, 2018
Slide 1: Greencoat Renewables PLC 2018 H1 Results
Greencoat Renewables PLC 2018 H1 Results 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: Results summary – 6 months to 30 June 2018
Results summary – 6 months to 30 June 2018 • Power generation of 195.3GWh; 9% below budget due to May and June lower than average wind speeds • Net cash generation of €13.4m • Dividend cover for period of 1.7x; paid dividends of 2.61c in March(1); declared dividends of 3c for H1 2018 • Net Asset Val
Slide 4: Portfolio Background
SECTION 1 Portfolio Background STRICTLY CONFIDENTIAL
Slide 5: Portfolio overview
Portfolio overview Operationally on budget – electricity production down 9% due to low May/June wind speeds Wind Farm Turbines PPA Commercial Subsidy Total MW Operations Date Knockacummer Nordex Brookfield Dec 2014 / REFIT 1 100.0 5 Tullynamoyle II Jul 2015 Killhills Enercon Brookfield Mar 2015 REFI
Slide 6: Financial Performance
SECTION 2 Financial Performance STRICTLY CONFIDENTIAL
Slide 7: Financial performance – 6 months to 30 June 2018
Financial performance – 6 months to 30 June 2018 For the six months Group and wind farm SPV cash flows ended 30 June 2018 7
Slide 8: Movement in NAV
Movement in NAV Movement in Opening NAV Movement in Movement in Investment in Movement in other relevant Closing NAV 31 December cash Aggregate new assets DCF valuation assets/liabilities 30 June 2018 2017 (Group and SPV) Group Debt (Group and SPV) 8
Slide 9: Acquisitions
SECTION 3 Acquisitions STRICTLY CONFIDENTIAL
Slide 10: H1 2018 acquisitions: executing against the growth opportunity
H1 2018 acquisitions: executing against the growth opportunity 5 3 Dromadda More 36.3MW – acquired May 2018 1 Knockacummer • Seller: Impax Asset Management (large scale international developer) 2 Killhills 5 • Located in Co. Kerry 3 Dromadda More • Project operational since April 2018 • Vestas turbi
Slide 11: Post-period acquisitions: Coillte portfolio
7 Post-period acquisitions: Coillte portfolio A Raheenleagh wind farm – 35.2MW (50%) • 11 Siemens 3.2MW turbines, with long term O&M contracts • Co-owned with ESB • Project operational since November 2016 D Cloosh Valley wind farm – 108MW (50%) B B • 36 Siemens 3.0MW turbines, with long term O&M con
Slide 12: Long term growth opportunities
Long term growth opportunities c. €8bn(1) operational assets by 2020 with 1GW+ of newly built REFIT assets since 2014 Irish wind: A large and growing market Republic of Ireland Cumulative Installed Wind Power 2014-2019 (MW) • Substantial growth in the 4,500 800MW additional capacity anticipated by e
Slide 13: Regulation
SECTION 4 Regulation STRICTLY CONFIDENTIAL
Slide 14: Irish renewable energy policy
Irish renewable energy policy REFIT provides a stable and supportive regulatory regime AER REFIT I REFIT 2 RESS (1995 – 2005) (2006 – 2009) (2012 – 2019) 2019+ REFIT protects Greencoat Renewables from wholesale power price volatility during REFIT period NO EFFECT ON NAV PARTIAL EFFECT 2017 2018 2019
Slide 15: RESS – Renewable Energy Support Scheme (REFIT successor policy)
RESS – Renewable Energy Support Scheme (REFIT successor policy) RESS provides strong growth opportunity for Irish renewable market for next 7+ years Structure – Two way “CfD” type structure Auction Auction Delivery Single Capacity Year Year Technology – Expectation for 15 year contract (GW/hrs) Tech
Slide 16: Gearing and Capital Structure
SECTION 5 Gearing and Capital Structure STRICTLY CONFIDENTIAL
Slide 17: Gearing strategy
Gearing strategy Capital structure has provided platform for growth and allowed control of gearing • 3-year €250m Revolving Credit Facility with an accordion extension to €300m • Syndicate of five domestic and international banks: AIB, BNP Paribas, Commerzbank, RBC and Santander • €198m outstanding
Slide 18: Capital structure - positioned for growth
Capital structure - positioned for growth Capital structure is cost effective, flexible, and allows near term cash acquisitions 800 Equity Group level debt €741m GAV (€m approximate) Long term, fixed rate Project Finance debt 600 €460m 400 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2018
Slide 19: Results summary – 6 months to 30 June 2018
Results summary – 6 months to 30 June 2018 • Power generation of 195.3GWh; 9% below budget due to May and June lower than average wind speeds • Net cash generation of €13.4m • Dividend cover for period of 1.7x; paid dividends of 2.61c in March(1); declared dividends of 3c for H1 2018 • Net Asset Val
Slide 20: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 21: Portfolio overview
Portfolio overview Wind Farm Turbines PPA Commercial Subsidy Windfarm % Interest GRP Net MW Forecast Operations Size Net Load Date Factor Knockacummer Nordex Brookfield Dec 2014 / REFIT 1 100.0 100% 100.0 33.1% Jul 2015 Killhills Enercon Brookfield Mar 2015 REFIT 2 36.8 100% 36.8 27.0% Dromadda More
Slide 22: I-SEM go-live
I-SEM go-live Irish REFIT scheme I-SEM background • I-SEM is the new market structure being introduced in October 2018 REFIT 1: 15% of REFIT 100% REFIT 2: Fixed • Fixed price REFIT Balancing regime 15 years: Payment • Allows Irish market to be integrated within a pan- 90% EUR 9.90 – 10.46 European e
Slide 23: Investment manager – Team
Investment manager – Team Bertrand Gautier Paul O’Donnell • 25 years+ operational, investment and • 15 years + investment and renewables finance experience, of which 8 exclusively experience renewables • 9 years in the Irish energy sector • Member of Greencoat Capital UK Wind (“UKW”) Investment Comm
Slide 24: Investment manager – Greencoat Capital
Investment manager – Greencoat Capital c. €3.0bn AUM and multiple fund strategies (listed wind, unlisted solar, PE) Acquisition Operational Irish Presence Expertise Experience ▪ 39 wind farms and c. 1GW ▪ C. 1GW capacity and 5 ▪ Dublin office since 2009 capacity acquired years experience ▪ Long-term
Slide 25: Strictly Confidential
Md, GREENCOATS -& RENEWABLES &% = % NS aS