Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — H1 2020 Earnings Presentation
30 slides from Greencoat Renewables's earnings presentation, September 2020
Slide 1: Greencoat Renewables PLC 2020 Interim Results
Greencoat Renewables PLC 2020 Interim Results September 2020 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: Highlights
Highlights 688GWh 2020 H1 power generation on budget Power generation €40.0m1 Strong cash generation with gross dividend cover of 2.1x1 Net cash generation €19.1m / 3.03c per share 2020 target dividend 6.06c per share Dividends paid in the period €1.14bn Invested €129m across 4 new assets, including
Slide 4: Operational Performance
SECTION 2 Operational Performance STRICTLY CONFIDENTIAL
Slide 5: Portfolio Considerations
7 Portfolio Considerations • No major incidents in the period ended 30 June 2020 Health and Safety • Independent health and safety audits are planned for the second half of the year covering sites not previously audited • No exposure to reduced power prices due to having 98% of cashflows contracted
Slide 6: Active ESG Programme to Deliver Sustainable Returns
Active ESG Programme to Deliver Sustainable Returns Environmental COVID-19 Impact and Response • Annualised 510,000 CO2 tonnes offset, equivalent to over 330,000 homes • 100% habitat management plans implemented on sites • Specific response funds were made available to local where this was required
Slide 7: Financial Performance
SECTION 2 Financial Performance STRICTLY CONFIDENTIAL
Slide 8: Greencoat Renewables – Simple and Robust Business Model
Greencoat Renewables – Simple and Robust Business Model Greencoat Renewables Model (1) 2> 19 wind farms Convert wind to energy 137 > 528MW Total investment Equity Electricity sold to grid €941m 2,465 GWh Debt Group net cash generation €122.8m (2) Cash €40.2m Reinvestment €69.1m Dividends €13.5m PF r
Slide 9: Financial Performance (1/2)
Financial Performance (1/2) For the period ended 30 June 2020 Group and wind farm SPV cash flows Net (1) Gross (1) €’000 €’000 Net cash generation (1) 34,760 40,026 Dividends paid (19,060) (19,060) SPV level Capex & PSO Cashflow (2) (11,137) (11,137) SPV level debt repayment - (5,266) Acquisitions (
Slide 10: Financial Performance (2/2)
Financial Performance (2/2) For the six months ended 30 June 2020 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 66,279 66,279 Operating expenses (17,892) (17,892) Tax / VAT 481 481 Wind farm operating cashflow 48,868 48,868 SPV level debt interest (2,891) (2,891) SPV level debt repay
Slide 11: Net Asset Value
Net Asset Value €650.0m €59.7m €66.9m €(10.9)m €6.9m €(0.8)m €(127.5)m €644.3m Key Considerations 900.0 800.0 700.0 • Lack of exposure to 600.0 power price to 2027 partially protects NAV 500.0 400.0 300.0 • 0.9c decrease in NAV per share in H1 2020 200.0 • Portfolio growth offset 100.0 by lower shor
Slide 12: Acquisitions
SECTION 3 Acquisitions STRICTLY CONFIDENTIAL
Slide 13: H1 2020 Portfolio
H1 2020 Portfolio Diversified portfolio underpinned by >10 years’ contracted cashflow Subsidy % Net # Wind Farm Country Turbines end date Interest MW 1 Ballybane Republic of Ireland Enercon 2023 - 2032 100% 48.3 2 Beam Hill Republic of Ireland Vestas Merchant 100% 14.0 3 Cloosh Valley Republic of Ir
Slide 14: Letteragh Wind Farm (Ireland)
7 Letteragh Wind Farm (Ireland) Letteragh wind farm – 14.1MW Seller Local Developer Size 14.1MW Turbines Enercon E92 COD December 2019 PPA SSE Turbine O&M Enercon O&M Management Statkraft • Continuing the strategy to consolidate the small and medium size Irish REFIT assets • High load factor site (>
Slide 15: July 2020: Carrickallen Wind Farm (Ireland)
7 July 2020: Carrickallen Wind Farm (Ireland) Carrickallen wind farm – 10.25MW (net) Seller Galetech (50% acquisition) Size 20.5MW Turbines Senvion COD December 2018 PPA SSE Turbine O&M Siemens O&M Management EnergyPro • >30% load factor site • Partnership with Galetech Group • REFIT 2 until 2032, l
Slide 16: 2020 European Market Entry: French Growth Platform
2020 European Market Entry: French Growth Platform Portfolio of 3 assets with revenue underpinned by 15 year French FIT FIT % GRP Wind Farm Turbines end date Interest Net MW 1 Saint Martin Senvion Jun 2033 100% 10.3 • Portfolio acquire from John Laing in June 2020 2 Pasilly Gamesa Sept 2031 100% 20.
Slide 17: Outlook & Pipeline
SECTION 4 Outlook & Pipeline STRICTLY CONFIDENTIAL
Slide 18: Irish Market Developments
Irish Market Developments Republic of Ireland Cumulative Installed Wind Power 2014-2020 (GW) 1.9GW installed between 2014 and 2020 4,500 4,000 4.2 • Market growth has 3,500 3.7 developed as planned • REFIT has remained a 3,000 3.4 very stable policy 2.8 2,500 2.4 2.3 2,000 2014 2015 2016 2017 2019 H
Slide 19: Ireland: RESS Auction
Ireland: RESS Auction RESS Auction (2020) GRP Strategy • 15-year fixed nominal price (no CPI indexation) contract • Auction results announced in August • Greencoat Renewables seeking to support developers by • Over 790MW solar (average price of €72.9/MWh) being long-term owner of assets • Over 475MW
Slide 20: Continental European Renewable Opportunities
Continental European Renewable Opportunities • Greencoat Renewables now positioned to access very large pool of assets to seek best value – 30x the size of Ireland – Compelling growth profile with >150GW built by 2030 • Diversification without currency risk unique to Greencoat Renewables – Weather s
Slide 21: Portfolio Outlook
Portfolio Outlook Contracted cashflows helps protects GRP from wholesale power price volatility 85 100% 90% 75 80% 70% 65 III 60% 55 50% 40% % contracted revenue (Jun 2020) 45 I1 % contracted revenue (Dec 2019) 30% Blended Average Contracted Tariff 1 Q2 2020 Merchant Power Curve - France/Ireland Ave
Slide 22: Capital Structure
SECTION 5 Capital Structure STRICTLY CONFIDENTIAL
Slide 23: Capital Structure to Drive Growth
Capital Structure to Drive Growth Equity Group level debt €1,139m 1200 Long term, fixed rate Project Finance debt 1000 800 600 GAV (€m) 400 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2019 2020 €148m Cloosh Valley Gortahile Killala Beam Hill €125m Letterag
Slide 24: Conclusion
SECTION 6 Conclusion STRICTLY CONFIDENTIAL
Slide 25: Delivering on Strategy – Milestones since IPO
Delivering on Strategy – Milestones since IPO Listing ATTRACTIVE DIVIDEND: • • Total dividend of 3.03c paid for H1 2020 (2020 target 6.06c) 2020 H1 dividend cover of 2.1x(1) ACQUISITION OF VALUE-ACCRETIVE ASSETS: Assets: 2 wind farms Capacity 137MW • • Invested in 18 further wind farms, diversifyi
Slide 26: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 27: Data Centre Growth in Ireland – Corporate PPA Opportunity
Data Centre Growth in Ireland – Corporate PPA Opportunity Strong power demand growth driven by a robust pipeline of new datacentre loads Data Centre in Ireland - to increase Irish electricity demand by c. 30% by end of decade Total Electricity Requirement forecast for Ireland 2019 - 2028 45 40 35 •
Slide 28: Targeted Approach to European Markets
Targeted Approach to European Markets Belgium Nordics France Germany Netherlands 8.3 15.4 21.8 42.3 26.8 65.7 109.9 154.7 11.2 30.0 GW GW GW GW GW GW GW GW GW GW Overview: Primarily mix of Overview: Primarily Overview: Mix of onshore Overview: Mix of onshore, Overview: Mix of onshore, onshore and so
Slide 29: Wider Nordic Opportunity
7 Wider Nordic Opportunity Nordics market fully integrated and Euro denominated revenue • Euro equivalent market with 19GW of existing • capacity (includingmarket Euro equivalent Finland) with 19GW of existing capacity (including Finland) Norway Onshore Wind 2.4 GW ‒ Strong interconnection between N
Slide 30: GREENCOATS -&
Md, GREENCOATS -& RENEWABLES &% = % NS aS