Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — H1 2022 Earnings Presentation
33 slides from Greencoat UK Wind's earnings presentation, July 2022
Slide 1: Half Year Results
Half Year Results July 2022 For Professional Investors Only
Slide 2: H1 2022 Highlights
H1 2022 Highlights £328.8m Strong cash generation Net cash generation 2,175GWh Power generation 1% above budget Power generation £176.05/MWh High power prices Average day ahead power price, N2EX £89.5m / 3.86p per share Dividend in line with full year target and dividend cover of 3.8x Dividends decl
Slide 3: Simple Model
Simple Model 6-44(1) wind Generating capacity increased farms from 127 to 1,460MW(1) since IPO Total reinvestment Equity 16.6TWh Total power produced Debt £1,207m Total cash generated £511m £696m Total dividends paid or declared “6p dividend, increasing with RPI inflation and real NAV preservation’’
Slide 4: Operational and Financial Performance
Operational and Financial Performance
Slide 5: Financial Performance
For the six months ended 30 June 2022 Group and wind farm SPV cash flows £'000 Net cash generation” 328,847 Dividends paid (86,326) Acquisitions?) (70,386) Acquisition costs (1,953) Equity issuance _ Equity issuance costs (42) Net repayment under debt facilities (50,000) Upfront finance costs (1,076
Slide 6: Net Asset Value
Net Asset Value Increase in the portfolio valuation of £228.6m (10p per share): +13p increase in forecast power prices +6p increase in inflation assumptions -3p increase in the discount rate -6p depreciation and other assumption changes 6
Slide 7: Power Price
Power Price Power price profile (before PPA discounts) Short term price set by marginal generator (gas) Gas 200p/th £140/MWh Carbon £100/t £40/MWh +13p per share System costs £20/MWh Q2 2022 NAV Total £200/MWh Long term price will also be set by marginal buyer (electrolysis) Q4 2021 NAV Potential fo
Slide 8: Net Asset Value Since IPO
Pence NAV vs RPI 156 152 148 A 144 140 [ 136 i 132 [ / 128 VA VA 124 WA Lo oo —- TIA 116 [ _—— 112 108 104 100 96 T T T T T T T T T T T T T T T T T T T Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2013. 2013) 2014 «2014 «2015 2015 2016 2016 2017 2017 2018 2018 2019 201
Slide 9: Investment Performance
Investment Performance Strong, consistent return with correlation to inflation 9
Slide 10: Portfolio and Acquisitions
GREENCOAT UK WIND Portfolio and Acquisitions
Slide 11: Portfolio Overview
Portfolio Overview Generating sufficient electricity to power 1.5 million homes 11
Slide 12: Portfolio Overview
Portfolio Overview Well diversified generating portfolio of 1,460MW – 5% market share Note: breakdown by value as at 30 June 2022 12
Slide 13: Investments and Commitments
Investments and Commitments Wind Farm Seller Net MW Investment Comment Investments Twentyshilling Statkraft 37.8 £49.6m Commitment made in 2019 Commitments £400m equity + Hornsea 1 GIP 150.0 Largest wind farm in the world £700m debt Kype Muir Extension Banks Renewables 33.5 £51.4(1) Using balance sh
Slide 14: Twentyshilling
Twentyshilling Seller ▪ Statkraft Capacity ▪ 37.8MW Turbines ▪ 9 x Vestas V117 4.2MW Commercial Operations Date ▪ June 2022 PPA ▪ Statkraft Turbine O&M ▪ Vestas O&M Management ▪ Statkraft ▪ Bilateral transaction for 100% ownership ▪ Near Sanquhar in Dumfries and Galloway Fourth subsidy free project
Slide 15: Hornsea 1
Hornsea 1 Seller ▪ GIP Capacity ▪ 1,200MW Turbines ▪ 174 x Siemens 7MW (direct drive) Commercial Operations Date ▪ December 2019 PPA ▪ CFD Turbine O&M ▪ Orsted O&M Management ▪ Orsted ▪ Largest offshore wind farm in the world, located 80 miles from service hub at Grimsby ▪ High load factor site and
Slide 16: Strategy and Ongoing Market Development
Strategy and Ongoing Market Development ROC Subsidy free UKW cashflows projects and CFD projects Merchant ▪ UKW expects to continue to make ROC investments power price Merchant Merchant ▪ There will be further opportunities to invest in power power cashflow price complementary CFD and subsidy free p
Slide 17: Secondary Market - Continued Opportunities to Grow
Secondary Market - Continued Opportunities to Grow ▪ Government policy has become increasingly UKW net generating capacity (MW) 1,610MW (1) supportive in a drive for 1600 energy security and low 1400 carbon power 1200 1000 ▪ Offshore wind – further 800 drive to accelerate 600 utilisation of UK’s 400
Slide 18: ESG
GREENCOAT UK WIND ESG
Slide 19: Environmental, Social and Governance
Environmental, Social and Governance ▪ Portfolio produces enough renewable electricity to power 1.5 million homes ▪ Recycling of capital enabling more renewable generation capacity to be built out ▪ 1.8m tonnes of CO2 per annum will be avoided compared to thermal generation Environmental ▪ Co-existe
Slide 20: ESG Case Study – Coastal Path Upgrade, John O'Groats
ESG Case Study – Coastal Path Upgrade, John O’Groats ▪ Stroupster has contributed towards the upgrade of a 450m long coastal footpath at John O’Groats ▪ This valuable infrastructure provides easy access to the coast and also to previously inaccessible beaches ▪ Helps the health and wellbeing of the
Slide 21: Recyclability of Turbine Equipment Material
Recyclability of Turbine Equipment Material Turbine Recyclability Study ▪ UKW engaged DNV to carry out a study into the recyclability of a Vestas V112-3.6 turbine (pictured at Tom nan Clach) ▪ The study models and assesses the material composition and weights of the major components of the turbine,
Slide 22: Summary
GREENCOAT UK WIND Summary
Slide 23: H1 2022 Highlights
H1 2022 Highlights £328.8m Strong cash generation Net cash generation 2,175GWh Power generation 1% above budget Power generation £176.05/MWh High power prices Average day ahead power price, N2EX £89.5m / 3.86p per share Dividend in line with full year target and dividend cover of 3.8x Dividends decl
Slide 24: Appendix
GREENCOAT UK WIND Appendix
Slide 25: Greencoat UK Wind
Greencoat UK Wind ▪ Greencoat UK Wind acquires and operates UK wind farms. The cash generated by these assets is used primarily to pay a robust, premium dividend to shareholders. The Simple remainder is reinvested to ensure capital is preserved in real terms. ▪ Simple structure, UK domiciled with a
Slide 26: Diversified Asset Portfolio (1)
Diversified Asset Portfolio (1) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Andershaw Scotland Vestas Statkraft 35.0 100% 35.0 Feb-17 Sep-21 0.9 34.4% Bicker Fen England Senvion EDF 26.7 80
Slide 27: Diversified Asset Portfolio (2)
Diversified Asset Portfolio (2) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Corriegarth Scotland Enercon Centrica 69.5 100% 69.5 Apr-17 Aug-17 0.9 35.5% Cotton Farm England Senvion Sainsbur
Slide 28: Diversified Asset Portfolio (3)
Diversified Asset Portfolio (3) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Humber Gateway England Vestas RWE 219 38% 82.8 Jun-15 Dec-20 2.0 44.2% Kildrummy Scotland Enercon Sainsbury’s 18.
Slide 29: Diversified Asset Portfolio (4)
Diversified Asset Portfolio (4) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Red Tile England Senvion EDF 24.6 80% 19.7 Apr-07 Oct-17 1.0 24.4% Rhyl Flats Wales Siemens RWE 90.0 24.95% 22.5
Slide 30: Diversified Asset Portfolio (5)
Diversified Asset Portfolio (5) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Twentyshilling Scotland Vestas Statkraft 37.8 100% 37.8 May-22 May-22 - 37.9% Walney England Siemens Total 367.2
Slide 31: NAV Sensitivities
Impact on NAV Discount rate (+/- 0.5%) Inflation rate (-/+ 0.5%) Power price (-/+ 10%) Asset life (-/+ 5 years) Energy yield (10 year P90/P10) —— = i @ } -20p -15p -10p -5p Op 5p 10p 15p 20p pence per share 31
Slide 32: Disclaimer (1)
Disclaimer (1) Important Information This presentation and its contents are confidential. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (OR TO ANY US PERSON), AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, CANADA, JAPAN, ANY MEMBER STATE O
Slide 33: Disclaimer (2)
Disclaimer (2) Any subsequent offer may only be made in Jersey where the offer is valid in the United Kingdom or Guernsey and is circulated in Jersey only to persons similar to those to whom, and in a manner similar to that in which, it is for the time being circulated in the United Kingdom or Guern