Alternus Energy Group PLC. · OTC:ALTNF
Alternus Energy — Q3 2021 Earnings Presentation
24 slides from Alternus Energy's earnings presentation, Nov 15, 2021
Slide 1: Third Quarter 2021
THIRD QUARTER 2021 15 November 2021
Slide 2: Caution Forward Looking Statements
Q3 2021 Financial Presentation 21 Caution Forward Looking Statements Some of the statements contained in this document, including information incorporated by reference, discuss future expectations, plans or prospects, or state other forward looking information Words such as “intends”, “believes”, "e
Slide 3: Agenda and Today's Presenters
AGENDA AND TODAYS PRESENTERS Q3 2021 Financial Presentation 3 Vincent Browne Joseph Duey CEO CFO ▪ Vincent will present: ▪ Joe will present: - Key Metrics - Financial Performance - Business Update 3
Slide 4: Key Highlights Since Last Quarterly Report
KEY HIGHLIGHTS SINCE LAST QUARTERLY REPORT Q3 2021 Financial Presentation 41 All time high revenues and profits for Q3 & YTD Sep ‘21 REVENUES UP 370% YoY - 69% EBITDA - POSITIVE NET INCOME Completed all planned asset acquisitions in initial bond portfolio 110MW OPERATING CAPACITY ADDED IN 2021 – 4.3
Slide 5: Highest Ever Company Revenues and Profits
HIGHEST EVER COMPANY REVENUES AND PROFITS Q3 2021 Financial Presentation 53 Q3 2021 REVENUES EBITDA NET INCOME EUR 7.1m EUR 4.9m EUR 0.3m 3.5 times NEGATIVE EUR 0.2m NEGATIVE EUR 2.5m vs. Q3 2020 in Q3 2020 in Q3 2020 NINE MONTHS TO SEPTEMBER 2021 REVENUES EBITDA NET INCOME EUR 13.1m EUR 7.1m EUR 10
Slide 6: Largest Ever Asset Base
LARGEST EVER ASSET BASE Q3 2021 Financial Presentation 66 Extensive third-party expert analysis of technical, regulatory and profitability before acquiring new projects 24 Owned - Producing Contracted Assets YE 2020 279 500 833 Owned - Backlog Pipeline 30 1 Jun-21 130 293 1,424 563 2,410 Sep-21 130
Slide 7: Largest Ever Asset Base and Project Backlog
LARGEST EVER ASSET BASE AND PROJECT BACKLOG Q3 2021 Financial Presentation 77 Owned and contracted assets at various stages of cycle to balance risk, project returns and capital needs Sep-21 130 342 1,374 674 2,520 Producing / COD 130 113 Owned / Producing Owned Backlog In Construction / COD 18 ‘22
Slide 8: Company Ambition of Over 3.5 GW in Operation by 2025
COMPANY AMBITION OF OVER 3.5 GW IN OPERATION BY 2025 Q3 2021 Financial Presentation 8 Growth driven by current owned backlog and contracted assets ~3 564 ~1 100 2025 operational target Owned backlog + ~2 464 contracted assets increased by 75% to 3.5 GWp ~900 ~1 564 Indicates ~EUR 110m ARR’s at YE202
Slide 9: Sustainability Highlights – First Months of 2021
10 Q3 2021 Financial Presentation 9 SUSTAINABILITY HIGHLIGHTS – FIRST 9 MONTHS OF 2021 Equivalent to the carbon sequestered by 865,056 trees grown for 10 years Equivalent to CO2 emissions from 5.1 million gallons of diesel consumed Equivalent to removing 11,378 fossil fuel-based passenger vehicles f
Slide 10: Financial Review
Q3 2021 Financial Presentation FINANCIAL REVIEW
Slide 11: Power Production Increased 2.7 Times YoY
11 Q3 2021 Financial Presentation 11 POWER PRODUCTION INCREASED 2.7 times YOY Power Production Third Quarter Power Production Mix Q3 2021 (GWh) (GWh) Comments +2.7x 14.8% 1.5% 26 14.9% GWh 68.8% 26.0 Italy Germany Netherlands Romania 9.6 • Increase in Romania and Italy due to acquisition of addition
Slide 12: Best Ever Revenues and EBITDA
12 BEST EVER REVENUES AND EBITDA (EUR MILLIONS) Q3 2021 Financial Presentation 12 Q3 2021 – Revenues and EBITDA Nine months - Revenues and EBITDA 2020 2021 2020 2021 +3.4x +3.8x +25x +35x 7.1 13.1 4.9 7.1 2.1 3.5 -0.2 0.2 Revenues EBITDA Revenues EBITDA • 77% gross margins from power generation in 2
Slide 13: All Planned Acquisitions Now Completed
16 ALL PLANNED ACQUISITIONS NOW COMPLETED Q3 2021 Financial Presentation 13 400% INCREASE IN ANNUAL RECURRING REVENUES (ARR). YoY +398% 3.3 ~8.7 years weighted 19.9 average 16.6 contract term remaining 4.0 4.0 As at As at As at 65 MW As at Sep-20 Dec-21 Jun-21 Witnicia Sep’21 63 MWp added Aug ’21 ▪
Slide 14: 2021 Booked Revenues Bridge to ARR
2021 BOOKED REVENUES BRIDGE TO ‘ARR’ Q3 2021 Financial Presentation 14 (EUR million) 6.8 7.1 19.9 13.1 5.2 0.8 Booked Booked Booked YTD 2021 Adj. for timing Exp. EOY ARR’s Q1 ’21 Q2 ’21 Q3 ’21 of acquisitions for operational projects ▪ 15MW of operational projects in Romania closed March 2021 ▪ 20MW
Slide 15: Improved Balance Sheet Provides Stronger Financial Position
13 IMPROVED BALANCE SHEET PROVIDES STRONGER FINANCIAL POSITION Q3 2021 Financial Presentation 15 As of 30 September 2021 Consolidated financial position (EUR million) Consolidated Solis Corporate Balance Sheet Bond Co Level Group Investment in Energy December 31, 2020 30 September 2021 141.7 5.5 147
Slide 16: Cash Flow Summary for Nine Months September 2021
14 CASH FLOW SUMMARY FOR NINE MONTHS 30 SEPTEMBER 2021 Q3 2021 Financial Presentation 16 As of 30 September 2021 ▪ Net cash used for operations was EUR 2.2M, this included EUR EUR (M) 9.3M of cash paid for interest. Consolidated Cash Flow ▪ Net cash from investing activities, included EUR 96.2M for
Slide 17: Owned Assets Increased by Over 8 Times YoY
OWNED ASSETS INCREASED BY OVER 8 TIMES YoY 8 Q3 2021 Financial Presentation 17 Total Owned Assets (MWp) Well Diversified Portfolio (MWp) 8.5x 472 Poland 423 14% Germany 130 1% 130 18 Italy 17% 472 18 324 MW 60% 44 44 Netherlands 275 25 26 9% 5 4 14 14 Romania Sep-20 Dec-20 Jun-21 Sep-21 Producing Co
Slide 18: Contracted Assets Grew by 1.3 GW YoY
9 CONTRACTED ASSETS GREW BY 1.3 GW YoY Q3 2021 Financial Presentation 18 Total Contracted Assets (MWp) Well Diversified Portfolio (MWp) +1.274 Other 1.424 6% 1.374 277 113 Italy 29% Greece 383 23% 665 1,374 MW 2% Poland 764 279 596 9% 109 Ireland 100 170 32% Sep-20 Dec-20 Jun-21 Sep-21 Spain Produci
Slide 19: Appendix
Q3 2021 Financial Presentation APPENDIX
Slide 20: Alternus Snapshot
ALTERNUS SNAPSHOT 3 Q3 2021 Financial Presentation 20 1 2 Vertically Integrated Solar IPP ▪ Targeted focus on fragmented mid-sized utility market (Europe / USA) Operational ▪ Highly diversified Diversified Portfolio solar PV assets 342 Development / Construction ▪ 1.4 GWp of contracted acquisitions
Slide 21: European Solar PV Capacity Set to Grow ~40% Over Next Three Years
EUROPEAN SOLAR PV CAPACITY IS SET TO GROW ~40% OVER THE NEXT THREE YEARS 18 Q3 2021 Financial Presentation 21 Installed solar capacity in Europe (GW) Commentary ▪ European solar power capacity has Small scale Utility scale increased rapidly in the last decade, +12% 200 growing 10% p.a. since 2012 18
Slide 22: Solis BondCo Portfolio – Offtaker Overview
SOLIS BONDCO PORTFOLIO – OFFTAKER OVERVIEW Q3 2021 Financial S o lPresentation is BondCo 22 Italy Romania Netherlands Poland • Italian government backed Feed-in-Tariff • Romanian government issued Green • SDE + subsidy scheme managed by the • Corporate PPA with Gorażdże Cement of (FiT) program proce
Slide 23: Solis BondCo - Credit Metrics
SOLIS BONDCO - CREDIT METRICS Q3 2021 Financial S o lPresentation is BondCo 23 EBITDA & interest coverage ratio 1) (@ 6.5% interest rate) Shareholders equity 2) & Equity ratio 3) EBITDA (EURm) Interest coverage ratio (x) Shareholders’ equity (EURm) Equity ratio (%) 18.4 18.4 18.4 53.6 55.9 51.3 29.5
Slide 24: Explanation of Bargain Purchase Recorded in Net Income
EXPLANATION OF BARGAIN PURCHASE RECORDED IN NET INCOME 15 Q3 2021 Financial Presentation 24 Total Total Italy (EUR million) Cost of Acquisition Romania Acquisitions Acquisitions Contracted Purchase Price 45,926 8,214 69.3 Net Working Capital after adjustments 2,668 498 9.6 59.7 Total Acquisition Cos
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