Acwa Power · TADAWUL:2082
Acwa Power — H1 2021 Earnings Presentation
24 slides from Acwa Power's earnings presentation, August 2021
Slide 1: ACWA Power – H1 2021 Business Update Presentation
ACWA Power – August 2021 H1 2021 Business Update Presentation
Slide 2: Disclaimer
Disclaimer This document and the information contained therein (the "Information") has been prepared by International Company For Water & Power Projects (the "Company") for background purposes only and does not purport to be full, accurate or complete. No reliance may be placed for any purpose on th
Slide 3: Agile high growth contracted power & water champion
Agile high growth contracted power & water champion Platform of 64(1) assets across 13 countries, 3,500 employees with strong growth pipeline and leading the energy transition Key current markets Asset portfolio of ~USD 66bn(2) Large world class assets with ~71% of capacity in projects with at least
Slide 4: Developer, investor and operator of critical power and water assets
Developer, investor and operator of critical power and water assets, with embedded portfolio and capital optimisation $ Develop 1 Invest 2 Operate 3 Optimise 4 PCritical assets in PLead investor with PStandardized PFinancial and fundamentally strong significant stake & de- operating model operationa
Slide 5: ACWA Power has a strong and highly visible growth pipeline
ACWA Power has a strong and highly visible growth pipeline Expected growth in gross power capacity % Renewables Expected growth in gross water capacity (GW) (mm m3/day) 19.2% 67.8% 100% 60.1% 63.4%(4) Identified pipeline (~108.7 GW) 137.0 Identified pipeline (~10.1 mm m3 /day) 15.9 11.8 GW of projec
Slide 6: NOMAC – Leading Scalable O&M provider 100% owned by ACWA Power
NOMAC – Leading Scalable O&M provider 100% owned by ACWA Power NOMAC at a glance A key source of value creation for ACWA Power Established in 2005, First National Operation and Maintenance Company ("NOMAC") is a wholly owned ACWA Power High visibility and secure subsidiary with strong on-the-ground
Slide 7: ACWA Power's key pillars
ACWA Power’s key pillars Agile high growth contracted power and water champion at the forefront of the energy transition Market: Leader in high growth attractive markets 1 ESG: Energy transition enabler with a strong ESG framework 2 De-risked Business Model & Strategy: Contracted, diversified, resil
Slide 8: Net zero by 2050 and an ambitious set of intermediate targets
Net zero by 2050 and an ambitious set of intermediate targets 95%+ Renewables % of total portfolio capacity in GW 50%+ Renewables No coal Targets share of renewables on No capacity total capacity (% of total installed development based on capacity, GW) 50%+ coal Renewables represent 66% of the total
Slide 9: Corporate governance framework
Corporate governance framework Interface with the group companies ACWA Power Intends to be a Role Model in MENA Enterprise Risk Management Internal Audit & Control Proactive recognition of the value brought by a Continuous performance monitoring robust corporate governance framework - ACWA
Slide 10: Fully contracted portfolio underpinned by long-term P(W)PAs
Fully contracted portfolio underpinned by long-term P(W)PAs Remaining contract life (years) - Top 20 assets(1) by project cost Capacity Water KSA and the UAE represent 75%(1) of ACWA Geography Remaining contract life by project (years) (MW) (‘000 m3/day) Power projects by project cost Noor Energy 1
Slide 11: De-risked business model with fully contracted cash flows
De-risked business model with fully contracted cash flows Price and volume production Offtaker profile Inflation and currency exposure Fuel supply and resources Contracted nature of the portfolio Project jurisdictions by credit risk(3) Contracted capacity by Pass-throughs or customer per project cos
Slide 12: Total ACWA Power solution to deliver winning tariffs
Total ACWA Power solution to deliver winning tariffs Win / win partnering approach to EPC, off-taker, Development OEM, lending institutions Deep engagement with stakeholders to deliver the “total ACWA Power solution” to ensure sustainable cost leadership Highly experienced team with a track reco
Slide 13: Attractive growth-focused total shareholder return
Attractive growth-focused total shareholder return, driven by expanding portfolio of contracted assets P De-risked contracted earnings growth across the IPP value chain (developer, investor, operator) Efficient capital structure and sound financial profile, with opportunities for P further optimisat
Slide 14: Key financial metrics
Key financial metrics Metric Description Relevance Operating income • Consolidated Operating income before impairment before impairment loss loss and other expenses which also includes share in • Management KPI used to track the overall operating and other expenses results of the business from year
Slide 15: Proven track record of growth with continued momentum from new projects
Proven track record of growth with continued momentum from new projects coming online Operating income before Adjusted profit / (loss) attributable to Parent operating cash flow (SARmm) impairment loss and other expenses equity holders of the parent (SARmm) (2) (SARmm)(1) 2,155 1,949 1,249 1,158 1,2
Slide 16: ACWA Power's financial building blocks
ACWA Power’s financial building blocks Develop Invest Operate Optimise Future Income Under Lead Operating Advanced Other Lead Operator Financial Construction Developer Projects development Pipeline(1) (NOMAC) optimisation Projects Operational optimisation captured within the Invest & Operated catego
Slide 17: Profit attributable to equity holders of the parent – building blocks
ACWA Power’s Profit / (Loss) attributable to equity holders of the parent – building blocks H1 2021 H1 H1 (SARmm) 2020 LTM 2020 2021 Near-term future drivers Development and • Driven by (i) already contracted fees from existing projects, (ii) yet-to-be-contracted fees from existing projects, and (ii
Slide 18: Major performance drivers of key financial metrics in H1 2021
Major performance drivers of key financial metrics in H1 2021 Variance (SAR mm) H1 2021 H1 2020 SAR % Major variance drivers • Increase in development and construction management fees mainly on account of financial closes of Sirdarya, Sudair and Redstone. Operating income before 1,074 869 205 +24 •
Slide 19: Adjustments and certain normalisations to Profit attributable to equity holders
Adjustments and certain normalisations to ACWA Power's Profit / (Loss) attributable to equity holders of the parent A H1 2021 SAR(mm) Nature 2020 LTM H1 2020 H1 2021 B Profit / (Loss) attributable to equity holders of the parent 883 1,004 326 447 C Impairments in relation to subsidiaries and equity
Slide 20: Strong parent recourse credit profile
Strong parent recourse credit profile ACWA Power long-term target parent net leverage profile Commentary (Parent Net Debt / POCF) The majority of ACWA Power’s consolidated net debt consists of project finance instruments which are non-recourse to ACWA 7.69x Commensurate with: Power at the parent l
Slide 21: Breakdown of Long-term Financing and Funding Facilities
Breakdown of Long-term Financing and Funding Facilities Long–term financing and funding facilities Parent-Level Net Leverage As of 30 June 2021, all values in SAR mm SAR mm 12,225 On balance sheet On balance sheet EBLs and 9,408 non-recourse debt: recourse debt: Equity LCs and (2,817) SAR 18,388 mm
Slide 22: Significant subsequent events (post 1H2021)
Significant subsequent events (post 1H2021) P• Sudair PV IPP in KSA achieved financial close on 29 July 2021. The project is now under- construction P• DEWA V Phase A achieves ICOD (300 MW capacity online out of 900 MW total capacity) as of 24 July 2021 P• Ras Al Khair IWPP privatization process was
Slide 23: 21
21
Slide 24: Ja!
Ja!