Ameresco, Inc. · NYSE:AMRC
Ameresco — Investor Day (March 2022)
60 slides from Ameresco's investor day presentation, Mar 24, 2022
Slide 1: Welcome to Ameresco's First Investor Day
Welcome to Ameresco’s First Investor Day George Sakellaris CEO & President
Slide 2: Safe Harbor Forward Looking Statements
Safe Harbor Forward Looking Statements Any statements in this presentation about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline and backlog, as well as expectation on estimated future financial results, statements about our long te
Slide 3: CFO Welcome & Agenda Review
CFO Welcome & Agenda Review Doran Hole Chief Financial Officer & EVP
Slide 4: Agenda
2:30pm Welcome Overview and Market Opportunity 3:45pm Coffee Break 3:55pm Client Sessions Bank of America, GSA 4:25pm New Markets & Models, ESG, Southern California Edison (SCE) Update 5:10pm Future Financial Goals 5:15pm Q&A Agenda
Slide 5: Presenters
George Sakellaris CEO & President Doran Hole CFO & EVP Nicole Bulgarino EVP & GM, Federal Michael Bakas EVP, Distributed Energy Systems Leila Dillon SVP, Marketing & Communications Bob Georgeoff EVP Britta MacIntosh SVP, Western & London Operations Lou Maltezos EVP Josh Baribeau VP, Finance & Corpor
Slide 6: Ameresco Overview and Market Opportunity
Ameresco Overview and Market Opportunity George Sakellaris President & CEO SVP, Marketing & Communications Leila Dillon
Slide 7: About Ameresco
About Ameresco 7 Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner & operator. Founded in 2000 | Public in 2010 1,200+ Employees | 60+ Off ices $11+ Bil l ion Energy Solut ions 340+ MWe Owned Assets in Operation 400+ MWe Assets in Development $5
Slide 8: Ameresco's Three Complimentary Lines of Business
Ameresco’s Three Complimentary Lines of Business 8 Diverse business model enables Ameresco to be nimble and resilient in changing market conditions Customer Projects Operations & Maintenance Ameresco Assets
Slide 9: Key Drivers Leading the Clean Energy Transformation
9 Key Drivers Leading the Clean Energy Transformation Core Market Drivers • Cost Savings & Economics • Infrastructure Upgrades • Occupant Comfort Level New and Emerging Market Drivers Increasing our Addressable Market Resiliency & Energy Security Grid Stability Decarbonization to Net Zero Innovative
Slide 10: Expanding our Addressable Market, Accelerating Growth
Expanding our Addressable Market, Accelerating Growth 10 ADVANCING TECHNOLOGIES • Energy efficiency • Renewable electricity • Renewable energy (RNG, hydrogen, firm) • Microgrids and energy storage • Carbon sequestration NEW INFRASTRUCTURE • Electric vehicle • Smart cities, campuses, buildings • Util
Slide 11: Ameresco Growth in ESCO Market Share
Ameresco Growth in ESCO Market Share 11 Ameresco continues to grow its market share leading position in the $9B US ESCO market Estimated Market Share by ESCO, US: 2021 (Source: Guidehouse Insights, 2022) Ameresco, 11.4% ESCO # 2, 9.5% ESCO # 3, 8.3% ESCO # 4, 8.2% ESCO # 5, 8.0% ESCO # 6, 7.7%ESCO #
Slide 12: Expanding Ameresco's Addressable Market
Expanding Ameresco’s Addressable Market 12 • Total addressable market growing from ~$80B in 2022 to ~$108B in 2026 • Projections for US Hydrogen addressable market (not included at left) growing from $18B in 2020 to $140B in 2030 • Technology market growth driven by solutions focused on decarbonizat
Slide 13: Transformational Growth in Project Business
Transformational Growth in Project Business Nicole Bulgarino EVP & GM, Federal Solutions
Slide 14: Ameresco is a Leading Cleantech Integrator
Ameresco is a Leading Cleantech Integrator Comprehensive Solutions Addressing our Customers’ Core Challenges 14 Efficiency & Infrastructure Upgrades • Energy efficiency & core upgrades • Address aging infrastructure & deferred maintenance • Critical first step in reducing carbon footprint Long-Term
Slide 15: Comprehensive Smart Energy Approach: Standalone Solutions
2 1 Energy Efficiency + Energy Assets + Analytics with AI Comprehensive Smart Energy Approach | Standalone Solutions 15 Lighting Sensors 1 Building Envelope 2 Plug Load Management 3 HVAC & Smart Zone Controls 4 3 4 Water Conservation 5 5 Onsite Generation 6 Energy Storage 7 EV Infrastructure 8 Utili
Slide 16: Comprehensive Smart Energy Approach: Facility Interactive
2 1 Energy Efficiency + Energy Assets + Analytics with AI Comprehensive Smart Energy Approach | Facility Interactive 16 3 4 5 Lighting Sensors 1 Building Envelope 2 Plug Load Management 3 HVAC & Smart Zone Controls 4 Water Conservation 5 Onsite Generation 6 Energy Storage 7 EV Infrastructure 8 Utili
Slide 17: Comprehensive Smart Energy Approach: Resilient, Grid Interactive
2 1 Energy Efficiency + Energy Assets + Analytics with AI Comprehensive Smart Energy Approach | Resilient, Grid Interactive 17 3 4 5 6 6 6 8 7 9 Lighting Sensors 1 Building Envelope 2 Plug Load Management 3 HVAC & Smart Zone Controls 4 Water Conservation 5 Smart Controls Onsite Generation 6 Energy S
Slide 18: Smart Energy Approach Drives Increased Addressable Market
Comprehensive Smart Energy Approach Drives Increased Addressable Market 18Benefitting Owners, Operators, Occupants, Utilities, Community Continuous Dynamic Adjustment = Energy at its Best Energy Information Systems Microgrids Building Management Systems AMRI Utility Input Energy Analytics | Data Pro
Slide 19: Our Smart Approach is Applicable to All Markets
Our Smart Approach is Applicable to All Markets 19 Military Bases College Campuses Commercial & Industrial K-12 Schools Healthcare Facilities Utilities Municipalities Transportation
Slide 20: Why Are We Winning?
Why Are We Winning? 20 Integrating advanced technology & creative financing solutions, aligned with customer drivers US Coast Guard Training Center Petaluma Technology Types: Advanced Microgrid; Battery Energy Storage System (BESS); Distributed Generation; EV Infrastructure; Efficiency Measures; Mod
Slide 21: Policy Accelerates our Market Opportunity
Policy Accelerates our Market Opportunity Historic infrastructure investment passed by Congress • Infrastructure Investment and Jobs Act included $550B (over 5 years) in new spending • Of this amount, $80B is directed towards climate-related programs • Largest investment in the Department of Energy
Slide 22: Transformational Growth in Project Business Q&A
Transformational Growth in Project Business Nicole Bulgarino EVP & GM, Federal Solutions Questions & Answers
Slide 23: Energy Assets and the Future of Green Fuels
Energy Assets and the Future of Green Fuels Mike Bakas EVP Distributed Energy Systems
Slide 24: Diversified Energy Asset Portfolio
Diversified Energy Asset Portfolio 24 Ameresco’s Energy Asset Portfolio • Offers customers financial flexibility and risk mitigation • Delivers recurring revenue and Adjusted EBITDA • Consistency of earnings while extracting additional “unbudgeted” value over time • Ameresco has been providing “ener
Slide 25: Robust Green Gas Trajectory
Robust Green Gas Trajectory Green Gas Development (not inclusive of other operating biogas assets that are potential RIN generators) • 4 RNG plants currently in operation • 17 additional RNG plants in construction or permitting • Doubled engineering and construction team with seasoned technical tale
Slide 26: Market Potential for Green Fuels
Market Potential for Green Fuels 26 • Non-Transportation Sector is 440 times that of the Transportation Market (15,852 T BTU vs. 36 T BTU *) • International Energy Agency (IEA) – Net Zero by 2050 Roadmap • By 2030, RNG production increases seven-fold over 2020… by 2030, 27 times the 2020 levels • RN
Slide 27: It's Not a Sprint... but a Marathon
“It’s Not a Sprint… but a Marathon” 27 • Sustainability/Decarbonization of the Pipes….Removing Carbon Risk from the Balance Sheet • Security of Supply Through Domestic Resources • Dispatchable, Base-Load Green Energy to Support Resiliency Objectives Growth Drivers • CPUC Approves Biomethane Procurem
Slide 28: Ameresco's Competitive Advantage
Ameresco’s Competitive Advantage 28 Historical, Proven Track Record • Ameresco has been developing biogas projects from the beginning First operating plant (BMW) in 20th year of Commercial Operations • All operating biogas plants were developed from greenfield by Ameresco…not secured through acqui
Slide 29: Energy Assets and the Future of Green Fuels Q&A
Energy Assets and the Future of Green Fuels Mike Bakas EVP Distributed Energy Systems Questions & Answers
Slide 30: Ameresco's Investment Strategy
Ameresco’s Investment Strategy Mike Bakas EVP, Distributed Energy Systems Josh Baribeau VP, Finance & Corporate Treasury Jon Mancini Mark Chiplock SVP, Solar Project Development SVP & Chief Accounting Officer
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Slide 32: Key Drivers in Sustainability
Key Drivers in Sustainability Lisa Shpritz SVP, Environmental Operations, Bank of America Client Session
Slide 33: Enterprise Climate Strategy and Environmental Programs
Enterprise Climate Strategy and Environmental Programs Lisa Shpritz March 23, 2022
Slide 34: BofA's History of Climate Leadership: 2003 to 2013
34 BofA’s History of Climate Leadership: 2003 to 2013 Founding member and signatory of Carbon Disclosure Project Became a signatory to the Equator Principles Published first GRI report First US bank to announce a Scope 1&2 GHG reduction goal with EPA Climate Leaders First US bank to disclose utility
Slide 35: BofA's History of Climate Leadership: 2014 to Present
35 BofA’s History of Climate Leadership: 2014 to Present BofA has been recognized for our ESG leadership by various organizations: Launched first widely adopted Green Bond Index for institutional investors Established Global ESG Committee One of 13 initial companies to join President’s American Busi
Slide 36: Bank of America Enterprise Climate Strategy
Support clients in their low- carbon transition Sustainable Finance goals and initiatives Client engagement Carbon neutrality advisory Assess & manage climate- related risks Establish rigorous risk management program that advances the use of climate risk factors to enhance preparedness for a low- ca
Slide 37: Enterprise Climate Strategy: Net Zero Commitment
Enterprise Climate Strategy: Net Zero Commitment 5 Rigorous risk policies Advocacy for necessary, supportive public policy Strong, coordinated 3rd party partnerships and alliances Aligning our Activities to the Goals of the Paris Agreement • Achieve net zero greenhouse gas (GHG) emissions for our fi
Slide 38: Sustainable Aviation Fuel Goals
• Aviation accounts for 2.5% of global GHG emissions; in 2019, 98 billion gallons of jet fuel were used globally. In 2021, SAF production totaled ~70 million gallons globally. • BofA’s 2030 goal includes: • $2B in financing, capital deployment for SAF production and other low-carbon aviation solutio
Slide 39: Lisa Shpritz contact details
Lisa Shpritz, 980-386-6989 lisa.shpritz@bofa.com
Slide 40: Key Drivers in Federal Government
Key Drivers in Federal Government Kevin Kampschroer GSA Chief Sustainability Officer Office of Federal High-Performance Green Buildings Client Session
Slide 41: U.S. General Services Administration GSA Overview
U.S. General Services Administration GSA Overview Office of Federal High-Performance Green Buildings
Slide 42: U.S. General Services Administration
U.S. General Services Administration ● Established in 1949 by President Truman ○ To Streamline the Administrative Work of the Federal Government ● GSA’s Mission ○ “Deliver value and savings in real estate, acquisition, technology, and other mission- support services across government.”
Slide 43: GSA Real Property Asset Portfolio
GSA Real Property Asset Portfolio • Buildings are a Critical Focus • 8,842 Owned or Leased Assets – 186.5 Million Square Feet Owned – 184.5 Million Square Feet Leased • 1.1 Million People • Replacement Value: $88.6 Billion • Revenue: $10.4 Billion/Year Based on GSA's State of the Portfolio FY20 Snap
Slide 44: Federal Acquisition Service (FAS)
Federal Acquisition Service (FAS) Acquisition expertise Electronic tools Innovative techniques Services Products Solutions What We OfferWhat We Deliver What We Achieve Buying power of the Federal government Best value for our taxpayers and Federal customers Total FAS employees (Oct 2020): 3,603 FY20
Slide 45: Deep Energy Retrofits/ESPCs
Deep Energy Retrofits/ESPCs • ESPCs provide an opportunity for infrastructure improvement as well as reduction in resource use. – Old: 18% energy/water savings – New: 34% Avg. – Public-Private Partnership • $656 million invested (2013-2020) • $38 Million Annual Savings • Potential for growth: $60--1
Slide 46: Client Sessions – Key Drivers Questions & Answers
Client Sessions – Key Drivers Questions & Answers SVP, Environmental Operations, Bank of America Lisa Shpritz GSA Chief Sustainability Officer Office of Federal High- Performance Green Buildings Kevin Kampschroer
Slide 47: New Markets and Models in Ameresco's Regions
New Markets and Models in Ameresco’s Regions Executive Vice President Bob Georgeoff SVP, Western & London Operations Britta MacIntosh Executive Vice President Lou Maltezos SVP, Marketing & Communications Leila Dillon
Slide 48: Ameresco's ESG Impact
Ameresco’s ESG Impact CFO & EVP Doran Hole SVP, Marketing & Communications Leila Dillon
Slide 49: Doing Well by Doing Good: Innovation. Action. Integrity. Access
Doing Well by Doing Good: Innovation. Action. Integrity. 49 Access Ameresco’s 2021 ESG Report online: ameresco.com/2021-esg-report *All figures through 09/30/2021
Slide 50: ESG in 2021
ESG in 2021 50 ESG is in our DNA – Doing Well by Doing Good • ESG Ambassadors (9 cross-functional team members) • Subcommittees for Environmental, Social, Governance • Dedicated resource focused on formalized reporting frameworks • 2021 Focus: Innovation. Action. Integrity. • After our inaugural 202
Slide 51: Ameresco's ESG Commitments
Ameresco’s ESG Commitments 51 Committed to our vision of energizing a sustainable world by “doing well by doing good”
Slide 52: SCE Roadmap and Future Corporate Impact
SCE Roadmap and Future Corporate Impact Doran Hole Chief Financial Officer & EVP
Slide 53: SCE Project Update
SCE Project Update • Placed POs for batteries, transformers, inverters and switchgear • Executed major subcontracts for civil, electrical and mechanical work • Completed factory acceptance testing for a majority of equipment • Required site permits in hand • Mobilized on all sites in preparation for
Slide 54: SCE Schematic
SCE Schematic 54 Grid-scale battery projects are containerized and scalable Ameresco Newmarket Battery Storage Project (16MWh) Representative SCE Site (~900MWh)
Slide 55: FCF Generated From Project Business Finances High Margin Recurring Revenue Energy Assets
FCF Generated From Project Business Finances High Margin Recurring Revenue Energy Assets 55 Generates cash EBITDA with no incremental overhead expense or permanent invested capital incremental MW and recurring revenue for up to 20 years OR • Winning the SCE contract establishes a leading position fo
Slide 56: Ameresco's Financial Goals
Ameresco’s Financial Goals President and CEO George Sakellaris CFO and EVP Doran Hole
Slide 57: Pathway to $300M of Adjusted EBITDA
Pathway to $300M of Adjusted EBITDA 57 $63 $91 $91 $118 $153 2017 2018 2019 2020 2021 2022 2023 2024 Adjusted EBITDA ($M) $300 Expected to approximately double 2021 Adjusted EBITDA in the next 3 years Ameresco’s Roadmap to $300M • Growing addressable market • Integrated advanced technology offering
Slide 58: Questions & Answers
Questions & Answers
Slide 59: Presenters
George Sakellaris CEO & President Doran Hole CFO & EVP Nicole Bulgarino EVP & GM, Federal Michael Bakas EVP, Distributed Energy Systems Leila Dillon SVP, Marketing & Communications Bob Georgeoff EVP Britta MacIntosh SVP, Western & London Operations Lou Maltezos EVP Josh Baribeau VP, Finance & Corpor
Slide 60: Thank You
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