Grenergy Renovables S.a · BME:GRE
Grenergy Renovables — Debt Investor Presentation (October 2019)
41 slides from Grenergy Renovables's debt investor presentation, Oct 16, 2019
Slide 1: Comunicación de Hecho Relevante: Grenergy Renovables
COMUNICACIÓN DE HECHO RELEVANTE GRENERGY RENOVABLES, S.A. 16 de octubre de 2019 En virtud de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014 sobre abuso de mercado y en el artículo 228 del texto refundido de la Ley del Mercado de Valores, aprobado por el Real Decreto Legislativo 4/2015
Slide 2: Green Bond Notes Programme Presentation
oO: Greneray _ (feen Bond Notes _! Programme Presentation 4). | Miadirid, 46" October 2019
Slide 3: Disclaimer
Disclaimer NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION THAT MAYBE RESTRICTED BY LAW This document and the conference-call webcast (including the Q&A session) may contain forward-looking statements and information (hereinafter, the “Statements”) relating to Grenergy Re
Slide 4: Green Bond Notes Programme Registration
Slide 5: Senior Unsecured Notes Programme
Senior Unsecured Notes Programme Senior Unsecured Notes Programme Grenergy Renovables 2019 Market MARF Rating (Axesor) BB+ Maximum amount Green Bond Second €50 Mn Vigeo Eiris of the Programme Party Opinion Registration date Financing of renewable 16 October, 2019 Use of proceeds energy projects The
Slide 6: Rating
Rating Rating BB+ by Axesor Qualitative profile Financial profile • Good competitive positioning with outstanding track • Adequate financial solvency as a previous step to the record and experience since 2007, mainly in Spain and development of an investment plan for growth. Chile and wide portfolio
Slide 7: Green Bond Program – Vigeo Eiris
Green Bond Program – Vigeo Eiris Green Bond Program certified by Vigeo Eiris • Vigeo Eiris - Leading global provider of ESG services (environmental, social and corporate governance). Second Party Opinion qualifying Grenergy Renovables Bond Program 2019 as a green instrument in accordance with the "G
Slide 8: Renewable Energy Industry
Slide 9: Strong growth in global renewable energy capacity is expected
Strong growth in global renewable energy capacity is expected in the coming years Electricity generation by fuel Renewable electricity capacity growth by technology 12.000 1200 90% 80% 10.000 Generation (TWh) 1000 Capacity growth (GW) 70% 8.000 800 60% 6.000 50% 600 40% 4.000 400 30% 2.000 20% 200 1
Slide 10: Policy support, efficiency improvements and sharp cost reductions
Driven by worldwide policy support, efficiency improvements and sharp cost reductions Wind levelized cost of energy (LCOE*) Solar PV levelized cost of energy (LCOE*) 200 400 350 $/MWh $/MWh 150 300 250 LCOE LCOE 100 200 150 50 100 50 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 20
Slide 11: Leading to a subsidies-free market based on auctions and PPAs
Leading to a subsidies-free market based on competitive auctions and PPAs Renewable capacity growth by remuneration policy Global PPA* volumes Annual volume (GW) Cumulative volume (GW) 120% 6 100% 5 20 80% 4 15 60% 3 10 40% 2 5 20% 1 0% 0 0 2016 2017-2022 (excluding 2008 2009 2010 2011 2012 2013 201
Slide 12: Grenergy Renovables
Slide 13: IPP with strong control along the value chain
IPP with strong control along the value chain Development Energy EPC * Services** & Finance Generation Development Energy EPC * Generation Services** & Finance Grenergy´s Strategy is based in a vertical integration flourishing Greenfield over Brownfield * EPC: Engineering, Procurement and Constructi
Slide 14: GRENERGY as a multicountry independent power producer (IPP)
GRENERGY as a multicountry independent power producer (IPP) SPAIN CHILE SPAIN MEXICO CHILE COLOMBIA SPAIN PERU MEXICO CHILE ARGENTINA COLOMBIA MEXICO PERU ARGENTINA SPAIN 2020 MAB IPO 2015 2019 INCEPTION 2007 300 MW pipeline 4,128 MW pipeline 5,000 MW pipeline 50 MW built 200 MW built 550 MW built B
Slide 15: More than 4.1 GW of Pipeline under development
More than 4.1 GW of Pipeline under development in stable and attractive markets COLOMBIA (458 MW) MEXICO (30 MW) SPAIN PERU (382 MW) (980MW) ARGENTINA (24 MW) CHILE (2,253MW) 1,3 GW as IPP portfolio <> in 2022 14 SOURCE: Company
Slide 16: Strong shareholders commitment
Strong shareholders commitment Shareholder structure Creating growth for our shareholders 15-oct-19 €9,98 Market Cap: 242,6 M€ 2 Listing in MAB 8-jul-15 €1,38 Free float 17,6% Treasury shares 3,1% Hugo Galindo Pérez 1,9M operating 3,3% +100k€ VWAP 7x Share price growth shares in 2019 Board of direct
Slide 17: Key Highlights
Key Highlights 1H19 Net Profit of 8.8M€ ; +192% YoY ~ PER1 9.8x Strong Financial 1H19 EBITDA of 12.1M€, +134%YoY. Income of 55.5M€,+126% YoY Performance Leverage2 of 0.5x (Vs 0.2x in 1H18) All 2019 operational targets on track and above forecast Impressive Operational Increasing our pipeline by more
Slide 18: Business plan review
Business plan review GRENERGY keeps on track… FY 2018 2019 Business Plan Real Business Plan Real FY 2019 1H 2019 107% Revenue € 52.0 M € 55.5 M € 70.7 M € 55.5 M Energy Sales 108% € 2.5 M € 3.0 M € 4.7 M € 0.6 M & Services 210% EBITDA € 10.5 M € 22.0 M € 24.1 M € 12.1 M 201% Net Profit € 6.5 M € 13.
Slide 19: Financial Result
Slide 20: Revenue 1H19
Revenue 1H19 Total Revenue +126% YoY; D&C and Services division keep growing exponentially 1H18 vs 1H19; €M + 139% Revenue increase in D&C* division 1H19 Revenue + 82% Revenue increase in Services** division • Energy division will add sales in Q4 2019 0.6 +126% 1H18 Revenue 0.0 0.3 55.5 54.9 1.3 24.
Slide 21: EBITDA 1H19
EBITDA 1H19 EBITDA continues to accelerate and grew +134% vs 1H18 1H18 vs 1H19; €M + 153% EBITDA increase in D&C division 1H19 EBITDA + EBITDA turns positive in Services division EBITDA Margin up to 22% 0.0 0.1 +134% -1.9 1H18 EBITDA -0.1 13.9 1.0 -1.3 12.1 5.5 5.1 D&C Energy Services Corporate Tota
Slide 22: Capex 1H19
Capex 1H19 Grenergy invested 27M€, mainly Wind projects under construction. €M 27,2 0,2 8,1 18,3 0,6 Development Capex Wind Project: Wind Project: Other Total Capex Kosten Duna Huambos Financial close and beginning construction phase of Duna Huambos Wind Project 21 SOURCE: Company
Slide 23: Cash Flow 1H19
Cash Flow 1H19 Growth capex impacted Free Cash Flow in 1H19 €M -2.0 -3.2 9.0 19.1 12.1 10.5 -27.2 21.8 -11.3 EBITDA Change Taxes and Funds from Change in Growth Free cash Financing CF Var Cash. in WK Financial operations Investing Capex flow Exp. Cash WK 1H18 (€M) 5.1 6.9 (0.6) 11.3 (0.1) (23.7) (12
Slide 24: Change in Net Debt and Leverage
Change in Net Debt and Leverage Overall leverage still low at 0.5x Net Debt/EBITDA €M Change in net debt Leverage 2017 Full year 3.1x 1H18 1,8 -5,3 2018 Full year 11,3 1H19 -0,3 3,8 27,2 -19,1 0.5x 0.2x 0.2x 3,2 2018 Net Funds from Change in Growth IFRS16 debt ST Finance Other 1H19 ND/EBITDA Debt Op
Slide 25: Pipeline & Operations
Slide 26: Pipeline stages
Pipeline stages Project with an advanced The Notice to Proceed has been given to technical and financial stage: the relevant EPC - +50% Prob. to secure land. - +90% Prob. to get grid access. IPP - Environmental permits requested. 100% In Operation >80% Under >50% Construction Backlog <50% Advanced D
Slide 27: Pipeline Update – Solar PV
Pipeline Update – Solar PV Total Solar PV pipeline increased by 1,339MW from previous update (+57% QoQ) • Great addition in Chile with more than 1,082 MWs in new large Scale Projects including COSMOS 600 MWs hybrid WIND + PV. • Improvement in Spanish Solar PV projects, moving 660 MWs from E.S to A.D
Slide 28: Pipeline Update – Wind
Pipeline Update – Wind Total Wind pipeline increased by 300MW from previous update (+156% QoQ) • 24MWs Kosten Wind project expected C.O.D in Q4 2019. • 36MWs Duna Huambos project construction on track, with unchanged expected C.O.D in Q2 2020. • NEW addition Flagship project in Chile – COSMOS Hybrid
Slide 29: Pipeline Update
Pipeline Update Grenergy as a diversified company with important growth ahead Pipeline by status Pipeline by technology Pipeline by geography 3% 1% 11% 12% 11% 1% 9% 22% 54% 64% 24% 88% Under Construction Advance Development Argentina Peru Wind Solar PV Backlog Early Stage Chile Colombia Spain Mexic
Slide 30: Secured Pipeline Update: Under Construction
Secured Pipeline Update: Under Construction Over 130MW in the final construction phase in two different technologies COD: Commercial Operation Date 29 SOURCE: Company
Slide 31: Secured Pipeline Update: Backlog
Secure Pipeline Update: Backlog 450 MW Los Escuderos (200MW) and Quillagua (100MW) are our next key projects to step up to U.C. COD: Commercial Operation Date 30 SOURCE: Company
Slide 32: Secured Pipeline Update: Advanced Development
Secured Pipeline Update: Advanced Development 895 MW Proven track record and important conversion rate from Advance Development to Backlog COD: Commercial Operation Date 31 SOURCE: Company
Slide 33: Build and Own
Build and Own Grenergy expects to increase its MW in operation in the next years. MW 1,323 >500 MWs AD ES Projects Escuderos 560 Jose Cabrera Quillagua I & II Belinchon Duna Huambos >400 MWs 763 PMGD Chile Kosten 50 50 150 150 100 100 >300 MWs 363 200 200 200 203 203 24 103 36 36 36 24 24 24 1H19 2H
Slide 34: Use of Proceeds
Use of Proceeds Fully financed 2020 Business Plan M€ Capex plan ~ 300 M€ Project Debt ~ 210 M€ Equity ~ 90 M€ Capex Plan Capex Finance 200-230M€ Sound financial structure Development Capex Wind Capex Project debt (70/30 structure) Solar PV Capex Strong cash position (29.3M€, June 2019) Others
Slide 35: Build and Sale
Build and Sale 270 MW - $ 300 M. December 2018 6 deals in 16 months Sale of 2 solar plants (18 MWs) to Sonnedix from USA April 2018 Sale of 11 solar plants (45 MWs) to InterEnergy from USA September 2017 Sale of 2 PV plants (20,7 MWp) to Eurus Energy from JAPAN December 2018 Sale of 4 solar plants (
Slide 36: Build and Sale
Build and Sale Grenergy has secured income and cash for the next couple of years €M Eurus Over 300MUSD. Interenergy Strong FCF generation. AD Capital +72% 90 Buy and Sale as a key Daelim 1 strategy for our shareholders. Sonnedix JP Morgan 18 Carbonfree +18% 52 +3x 36 44 21 13 +4x 13 57 13 17 2
Slide 37: Structure & Team
Slide 38: A success story since 2015 MAB IPO
A success story since 2015 MAB IPO Strong track record of profitable Growth Income (M€) Ebitda (M€) Pipeline (MW) 22 x5 55 56 x5 4,126 48 x14 12 7 2,487 4 17 1,038 10 626 300 -2 2015 2016 2017 2018 1H19 2015 2016 2017 2018 1H19 2015 2016 2017 2018 1H19 HeadCount Equity (M€) Mkt Cap (M€) 126 39 108 X
Slide 39: Ready for another step in the Spanish Stock Exchanges
Ready for another step in the Spanish Stock Exchanges Highly experience management team with a combined experience of over 150 years Adapting our BoD to the Stock Exchange Strengthening our Admission to trading in July 2015 Recent top management corporate team Spanish MaB’s 2nd largest company h
Slide 40: Platform for Growth
Platform for Growth Strengthening our corporate structure to a global organization. New LATAM Regional Office in Titanium building in Santiago (Chile) New Corporate Offices in Madrid (Spain) New Corporate Website www.grenergy.eu 39 SOURCE: Company
Slide 41: Grenergy Renovables
Grenergy Renovables — Debt Investor Presentation (October 2019) on 6ix