Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — FY2020 Earnings Presentation
28 slides from Greencoat Renewables's earnings presentation, March 2021
Slide 1: Greencoat Renewables PLC 2020 Full Year Results
Greencoat Renewables PLC 2020 Full Year Results March 2021 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: Greencoat Renewables 2020 Highlights
Greencoat Renewables 2020 Highlights 1,404 GWh 2020 power generation 3% below budget 22% increase on 2019 €66.4m1 Dividend cover of 1.7x1 alongside strong cash generation 36% increase on 2019 557MW 7 assets added, forward sale model executed, European diversification underway 21% increase on 2019 €7
Slide 4: Year overview
SECTION 1 Year 3 overview STRICTLY CONFIDENTIAL
Slide 5: A Platform for Growth
A Platform for Growth 2018 2019 2020 45% increase in capacity in 2 years 384 MW 462 MW 557 MW Scaling the business 87% increase in net cash generation in 2 €23.1m €48.7m €66.4m years TSR of 38%, of which 20.7% via dividends 10.1% 31.6% 38.0% Strong performance and stable returns Consistent and robus
Slide 6: Long-term Value Drivers in Renewable Infrastructure
Long-term Value Drivers in Renewable Infrastructure GRP advantages • Deepest experience and expertise Over 250 MW in bilateral transactions Acquire the best assets • Best transactional and co-ownership relationships at the best price • Widest pool of investible opportunities Asset pool 196 GW • Sell
Slide 7: ESG at Every Stage
ESG at Every Stage Environmental, Social, Governance + Health & Safety Publication of third annual ESG report 2020: 1,404 MWh of green electricity Focus on all aspects of Health & / 561k tonnes of CO2 savings Safety, seeking continuous improvement “A” score overall1 as UN PRI Regular reviews of port
Slide 8: Operational Performance
SECTION 2 Operational Performance STRICTLY CONFIDENTIAL
Slide 9: Portfolio as at Dec 2020
Portfolio as at 31 Dec 2020 Diversified portfolio underpinned by c.10 years’ contracted cashflow Subsidy % # Wind Farm Country Turbines Net MW 3 end date Interest 1 An Cnoc Republic of Ireland Enercon Dec 2032 100% 11.5 2 Ballybane Republic of Ireland Enercon 2023 - 2032 100% 48.3 3 Beam Hill (1) Re
Slide 10: Asset Management
Asset Management Ongoing performance improvement programme 2020 • No major incidents in the period • Independent health and safety audits planned for the second half of the year covering Health and Safety sites not previously audited • Changes to work procedures and certain restrictions were applied
Slide 11: Financial Performance
SECTION 3 Financial Performance STRICTLY CONFIDENTIAL
Slide 12: Greencoat Renewables – Simple and Robust Business Model
Greencoat Renewables – Simple and Robust Business Model1 Equity Convert wind to energy 2 > 21 wind farms €1,176.7m 137 > 557 MW Total investment Debt Electricity sold to grid 3,180 GWh Group net cash generation €149.2m 2 €38.8m Cash Reinvestment €40.2m Reinvestment €22.2m €88.2m PF Repayment Dividen
Slide 13: Financial Performance
Financial Performance Consolidated Cash P&L (€’000) 2018 2019 2020 Key Considerations Revenue 38,956 92,878 118,646 • Strong 3x revenue growth in three years Operating Expenses (8,902) (26,305) (35,011) Tax/VAT (647) (46) 644 • Stable and solid operating margin (wind farm operating cash flow) of c.
Slide 14: Net Asset Value
Net Asset Value Key Considerations €650.0m €117.2m €66.9m (€31.9)m €4.5m €3.1m €(61.0)m €748.8m • Decrease of NAV of 2c per share: 900.0 • +c. 4.5c Cash generation net of 800.0 dividend • +c. 1.5c NAV accretive equity raise 700.0 • -c. 4.5c Depreciation 600.0 • -c. 1.5c Adjustment to short term curt
Slide 15: Capital Structure to Drive Growth
Capital Structure to Drive Growth Key Considerations GAV (Capital Structure) 1,600 €883m €1,017m €1,177m • €428m Aggregate Group Debt at 31 Dec GAV GAV GAV 2020 or 36% gearing (vs gearing cap of c.€700m headroom 1,400 on 60% gearing 60%) 1,200 1% 17% • Scale to benefit mid-term gearing (2020 1,000 a
Slide 16: European Expansion
SECTION 4 European Expansion STRICTLY CONFIDENTIAL
Slide 17: Overview of the Market
Overview of the Market Deep asset base seeking long-term Investors Norway Sweden Leading Position 2.6 GW 14.5 GW Market Growth Operating Presence Over 196 GW of renewables Within Investment Strategy Finland Initial Investigation 2.5 GW Policy EU Clean Energy Directive Denmark Requiring 40% cut in GH
Slide 18: French Expansion
7 French Expansion Mature market with over 26 GW of existing capacity and strong government supports Overview French Seed Portfolio 3 Mix of onshore and solar. Substantial growth emerging in solar and onshore and offshore wind Correlation to Irish wind speeds 2 Medium 1 Tariff regime Mostly 15/20-ye
Slide 19: Nordic Expansion
7 Nordic Expansion High-growth market with very low LCOE, and well-developed corporate PPA sector Overview Kokkoneva wind farm Primarilly onshore wind market with substantial growth continuing Correlation to Irish wind speeds Low 1 Tariff regime Mix of 10/15-year Corporate PPA, shorter term contract
Slide 20: Irish Aggregation
SECTION 5 Irish Aggregation STRICTLY CONFIDENTIAL
Slide 21: 2020 Acquisitions
7 Ireland Aggregation Over 200MW of assets secured in the past 12 months A An Cnoc 11.5MW B Carrickallen 10.3MW net D • 5 Enercon E70 turbines • 10 Senvion MM92 turbines 2020 Acquisitions • Contracted under REFIT II until 2032 • Contracted under REFIT II until 2032 B C Letteragh 14.1MW D Killala/Bea
Slide 22: Irish Market
Irish Market Continued consolidation of a growing market Republic of Ireland – Installed Capacity Key Considerations • Market growth has developed as planned 16 − REFIT has remained a very stable Onshore Wind Solar Offshore Wind policy 14.2 GW 14 • RESS auctions in 2020 supported adiitonal 1.3GW of
Slide 23: Conclusion
SECTION 6 Conclusion STRICTLY CONFIDENTIAL
Slide 24: Portfolio Strategic Considerations
Portfolio Strategic Considerations Keeping portfolio “low risk” and adding long-term contracted cashflows I 3 2 F 1.Existing Portfolio Highly Contracted 2. M&A Strategy – Continue to extend contracted profile 3. Using PPA to recontract existing assets • 98% of revenue contracted under REFIT or Frenc
Slide 25: Greencoat Renewables Key Strengths
Greencoat Renewables Key Strengths Highly contracted portfolio: Leading investment manager: Strong platform for growth: Demonstrated aggregation ability: 98% of revenues fixed until end >€7.0bn of renewables assets Strong relationships and currency- Track record of optimization and of 2027 under man
Slide 26: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 27: 2020 Financial Performance (1/2)
2020 Financial Performance (1/2) For the year ended 31 December 2020 Group and wind farm SPV cash flows Net(1) Gross(1) €’000 €’000 Net cash generation1 52,415 66,424 Dividends paid (38,169) (38,168) SPV level Capex & PSO Cashflow2 (19,594) (19,594) SPV level debt repayment - (14,009) Acquisitions3
Slide 28: 2020 Financial Performance (2/2)
2020 Financial Performance (2/2) For the year ended 31 December 2020 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 118,648 118,648 Operating expenses (35,167) (35,167) Tax/VAT 644 644 Wind farm operating cashflow 84,125 84,125 SPV level debt interest (6,602) (6,602) SPV level debt re