Terna Energy Societe Anonyme Commercial Technical Company
Terna Energy Societe Anonyme Commercial Technical — TERNA Energy — Greek Investment Conference 2023
32 slides from Terna Energy Societe Anonyme Commercial Technical's conference presentation, Nov 28, 2023
Slide 1: Corporate Presentation November 2023
Corporate Presentation November 2023
Slide 2: Disclaimer
Disclaimer We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. You and your directors, off
Slide 3: Contents
Contents 1 Unique Investment Proposition 2 Unprecedented Growth Opportunity 3 Financials & 9M 2023 Results 4 Closing remarks & ESG agenda
Slide 4: Unique Investment Proposition
SECTION 1 Unique Investment Proposition
Slide 5: TERNA Energy at a glance
TERNA Energy at a glance A leading pure-play renewable energy platform with unique portfolio characteristics Leading renewable energy Unique portfolio Growth track record and platform characteristics financial strength • Undisputed leader in Greece, • One of the youngest • ~15% EBITDA CAGR 2007-23 w
Slide 6: Leading Renewable Energy Company in Greece, with Established Presence in Poland and Bulgaria
Leading Renewable Energy Company in Greece, with Established Presence in Poland and Bulgaria ▪ Large operating asset base located at the most favourable locations in the respective countries ▪ Young fleet with substantial remaining contracted PPA lifetime Key Figures Geographical Footprint 3 1.2 GW
Slide 7: High quality, diversified and complementary portfolio
High quality, diversified and complementary portfolio ▪ Substantial long-term, secured and predictable cash-flow Largest Portfolio In The Greek Market Technologically Diversified + 11 GW(2) Projects ✓ ✓ ✓ ✓ ✓ ✓ 1.2 GW Wind Solar Hydroelectric Biomass Waste Hydro- at various stages Onshore pumping In
Slide 8: RES asset base performance
RES asset base performance ▪ Sustainably strong load factors - Offtake mix supports revenue generation despite power price volatility Portfolio quarterly load factor Portfolio historical load factor (2020-22) 32,6% 31,8% 31,2% 30,5% 29,2% 29,5% 29,2% 38,9% 27,0% 27,5% 27,6% 27,1% 35,7% 36,5% 33,9% 2
Slide 9: Fully Integrated Organization with Unique Capabilities
Fully Integrated Organization with Unique Capabilities ▪ Extensive in-house knowhow and expertise with over 20 years of experience ensuring speed, efficiency and reliability across all the core activities Differentiating Skills Development Process World-Class In-House Certified • Wind and energy ass
Slide 10: TERNA Energy growth targets
TERNA Energy growth targets • Installed capacity to exceed 6.0GW by 2029 • Mid-term milestone >80% covered with under construction and RTB capacity > 6.0 GW > 3.3 GW ~2.5 GW >1.2 GW under construction and RTB 1.2 GW 2023 Mid-term 2029 Wind Solar Hydro/Hybrid Targets well underpinned by 11 GW portfol
Slide 11: Flagship Near-Term Projects for the Greek Energy Sector
Flagship Near-Term Projects for the Greek Energy Sector ▪ Leading the way through innovation and operational excellence Kafireas Wind Park Amfilochia Hydro Pumped Storage Project • Amfilochia, Greece • Kafireas, Evia, Greece • Capacity: 680 MW • Capacity: 327 MW • Capex: €650 m • Capex: € 550m • Exp
Slide 12: The “Kafireas” Effect
The “Kafireas” Effect Commissioning of Kafireas project is an important milestone for the Group’s growth Installed capacity Group run-rate EBITDA GW €m 0.3 1.2 0.9 164,7 Existing Kafireas Total EBITDA 2022 Group run-rate EBITDA Net debt breakdown Net debt / adj. EBITDA € bn (x) 0,8 0,5 5.2x ~3.5x 0,
Slide 13: Additional Income from Attractive Long-term Regulated Activities
Additional Income from Attractive Long-term Regulated Activities ▪ Other activities generate strong profitability and predictable cash-flows Waste Management 1 Epirus Waste Management Project (2017) 2 Peloponnese Waste Management Project (2021) Largest PPP on waste management in Greece 27 Year €37 m
Slide 14: Unprecedented Growth Opportunity
SECTION 2 Unprecedented Growth Opportunity
Slide 15: Greece: A Premium European Market for Renewables
Greece: A Premium European Market for Renewables • Unprecedent growth of renewable installed capacity over the next 30 years to meet the decarbonization targets Greece until 2030 2030 Onwards Acceleration of decarbonization; Installed RES & Hydro to reach 27.3 GW by 2030 Additional 22.7 GW of RES &
Slide 16: Greece: ~18 GW of RES to be Added by 2030 and ~28 GW by 2040
Greece: ~18 GW of RES to be Added by 2030 and ~28 GW by 2040 • The recently updated NECP indicating the significant growth potential of the GR RES market… • …driven by the EU wide push to reach Net Zero by 2050 Today NECP(1) 2030 Target Estimated(1) 2040 Target 3% 9% 7% 22% 9% 29% 14% 31% 34% ~15.0
Slide 17: Greece: Additional Growth Optionality from Regulated Activities
Greece: Additional Growth Optionality from Regulated Activities Over €2 Bn of Waste Projects are expected to be auctioned by 2030 Waste Management Waste Management Facilities in Greece by 2023 7 Existing Facilities 31 4 New Waste Major Projects Waste 1 Management Facilities to Energy to be under con
Slide 18: Key financials & 9M 2023 Results
SECTION 4 Key financials & 9M 2023 Results
Slide 19: 9M 2023 Highlights
9M 2023 Highlights Strong performance in 3Q following normalisation of wind conditions and increased capacity allows to recover slow start of the year – 3Q adj.EBITDA+50.9% y-o-y // 9M adj.EBITDA € 124.5m (-1.6% y-o-y) Key Highlights • Installed capacity at 1.2 GW post Kafireas completion (vs. 0.9GW
Slide 20: Financial Performance by Business Segment
Financial Performance by Business Segment Increased RES production in 3Q drives revenues and profitability higher – Increased contribution from Waste Management and Construction €m 3Q 2022 3Q 2023 y-o-y 9Μ 2022 9Μ 2023 y-o-y Group revenues 63.0 90.2 43.1% 218.9 235.9 7.8% RES 52.8 67.8 28.3% 175.2 1
Slide 21: Operating Performance Overview
Operating Performance Overview Wind conditions in 3Q 2023 recover to normalised levels and along with increased effective capacity drive generation volumes sharply higher, recovering the slow 1H 2023 performance Portfolio load factor per country 30,3% 31,2% 29,9% 29,6% 28,5% 28,3% 27,7% 27,9% 26,2%
Slide 22: Cash Flow
Cash Flow Strong operating cash flow generation continues, supporting the investment program and shareholder returns Cash flow bridge €m 124,5 1,6 12,2 178,0 105,8 35,8 391,9 46,5 6,2 354,2 3,3 Net Operating CF (1) Net Investing CF (1) Net Financing CF (1) 9M 2023: 113.9m 9M 2023: (181.3) m 9M 2023:
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights Healthy leverage and liquidity to sustain investment plans Cash and Cash Equivalent(1) Gross debt €m €m 1.246,6 1.164,1 1.123,1 397,4 391,9 983,5 354.2 326,4 FY 2021 FY 2022 1H 2023 9M 2023 FY 2021 FY 2022 1H 2023 9M 2023 ~3.5x adjusted for Group run rate Net Debt Net debt /
Slide 24: Group Income Statement
Group Income Statement €m 9Μ 2022 9Μ 2023 Revenue 218.9 235.9 Cost of sales (109.8) (127.9) Gross profit 109.1 108.0 Administrative & distribution expenses (41.3) (24.4) Research and development (4.7) (5.4) Other income, net 12.0 8.0 Operating profit 75.1 86.2 Financial expenses, net (24.3) (31.6) E
Slide 25: Group Balance Sheet and Cash Flow
Group Balance Sheet and Cash Flow €m FY 2022 1H 2023 €m 1H 2022 1H 2023 Tangible and Intangible fixed assets 1,256.9 1,366.1 adj. EBITDA 93.5 74.7 Investments 75.0 81.4 WC change and other non-cash (29.2) (15.3) Other long-term assets 54.9 53.2 Taxes (7.4) (4.4) Inventories and Receivables 256.7 250
Slide 26: Closing Remarks and ESG Agenda
Closing Remarks and ESG Agenda
Slide 27: Market Backdrop - Outlook
Market Backdrop - Outlook Market backdrop • Capex costs o PV remain on a downward trend since the beginning of the year o Wind stabilized • Corporate PPAs Attractive value creation o Strong demand by energy intensive consumers in Greece and abroad opportunities for good quality projects o Prices sho
Slide 28: TERNA ENERGY, the Largest Renewable Energy Platform in Greece, is Leading The Way
TERNA ENERGY, the Largest Renewable Energy Platform in Greece, is Leading The Way in Delivering the Upcoming, Unprecedented, Market Growth Fully integrated platform with unparalleled in-house expertise and operational 1 excellence track record of more than 20 years… …Underpinned by a large operating
Slide 29: Stock highlights
Stock highlights ▪ Strong shareholding base and high liquidity ▪ MCap of € 1.75bn as of 22/11/2023 TERNA Energy shareholding Terna Energy 3Y Share Price Performance 100,0 77,6 80,0 GEK TERNA; 60,0 Free float; 37,7% 45,6% 40,0 26,0 20,0 0,0 (20,0) (36,6) (40,0) (60,0) TENERGY ATHENS General S&P Globa
Slide 30: ESG
ESG Sustainability Development Report 2022 Available now here ESG – Key Performance Index 2022 Available now here TERNA ENERGY ESG AGENDA 29
Slide 31: ESG KPI’s
ESG KPI’s 2021 2022 People Total number of employees (excl. freelancers) 388 427 Percentage of female employees N/A 21,8% Percentage of female employees at the top 10% of employees by total compensation N/A 16,1% Number of fatalities as a result of work-related injury 0 0 Environment Renewable produ
Slide 32: Investors Contacts
Investors Contacts Argyris Gkonis, IR Officer agkonis@terna-energy.com +30 210 6968499 Investor Relations Desk ir.ternaenergy@terna-energy.com +30 210 6968457