Grenergy Renovables S.a · BME:GRE
Grenergy Renovables — H1 2020 Earnings Presentation
33 slides from Grenergy Renovables's earnings presentation, Sep 30, 2020
Slide 1: Results Presentation 1H 2020
RESULTS PRESENTATION 1H 2020 Jan-Jun Madrid, 30th September 2020
Slide 2: Disclaimer
DISCLAIMER By attending this presentation and/or by accepting this presentation you will be cial condition or results of operations by the Company and should not be relied upon taken to have represented, warranted and undertaken that you have read and when making an investment decision. Certain finan
Slide 3: Key Highlights
KEY HIGHLIGHTS FINANCIAL OPERATIONAL SUSTAINABILITY PERFORMANCE EXECUTION & GOVERNANCE 1H20 Net Profit of 4.6M€ B2O: Quillagua Solar PV plant First Sustainability report (7.0M€ in 1H19) connected - 103MW prepared and published 1H20 EBITDA of 9.5M€ 132MWs of Solar PV projects Sustainability (10.2M€ in
Slide 4: Index
INDEX 1 FINANCIAL RESULTS 2 PIPELINE & OPERATIONS 3 ESG 4 SERVICE DIVISION 03
Slide 5: Financial Results
@ Grenergy FINANCIAL RESULTS
Slide 6: Revenue 1H20
REVENUE 1H20 Total Revenue +58M€ (+5% YoY) 1H19 Revenue 1H20 Revenue 0.0 0.9 58.1 57.2 1H20 Vs. 1H19; €M 0.0 0.6 55.4 + 4% Revenue 54.8 increase in D&C* division + 41% Revenue increase in Services** division Energy division will add sales in 2H 2020 D&C Energy Services Total D&C Energy Services Tota
Slide 7: EBITDA 1H20
EBITDA 1H20 Total EBITDA +9.5M€ (-7% YoY) 1H19 EBITDA 1H20 EBITDA 0.0 0.0 1H20 Vs. 1H19; €M 0.0 0.1 12.0 -1.8 11.4 -2.0 - 7% EBITDA decrease in in D&C division + 4x EBITDA increase in Service division Energy division will add EBITDA in H2 2020 10.2 9.5 D&C Energy Services Corporate Total D&C Energy
Slide 8: Capex 2Q20
CAPEX 2Q20 Grenergy invested 36M€ in Solar PV and Wind projects under construction €M 17.3 35.5 15.1 0.8 2.3 Development Capex Wind Project: Wind Project: Quillagua Total Capex Kosten Duna Huambos Capex expected to grow with Quillagua and Duna Huambos final disbursement 07 SOURCE: Company
Slide 9: Free Cash Flow at Group Level 2Q20
FREE CASH FLOW AT GROUP LEVEL 2Q20 €M 32.2 9.5 0.8 -35.6 -0.2 8.7 33.1 3.9 11.9 End 1Q20 EBITDA Change in Taxes and Growth Project ST financial Other End 2Q20 operating Financial Capex Debt investment ST debts WK Exp. Cashout 08 SOURCE: Company
Slide 10: Change in Net Debt and Leverage
CHANGE IN NET DEBT AND LEVERAGE Overall leverage kept growing as expected to 5,4x Net Debt/EBITDA due to capex investments 1H20 Revenue Leverage1 1H19 2019 Full year -75.3 13.4 -35.6 -4.9 -102.4 1Q20 1H20 5,4x 3,6x 2,0x 0,5x 2019 Funds from Growth Other 1H20 ND/EBITDA Net Debt Operations Capex Net D
Slide 11: Pipeline & Operations
Quillagua project - September 2020 2 PIPELINE & OPERATIONS
Slide 12: Pipeline Update
PIPELINE UPDATE Operating portfolio increased by 103MWs due to Quillagua project connection 4.6 GW Pipeline + 103 MW in operation SOLAR PV WIND Under Advanced Early Under Advanced Early MW Const Backlog Dev Stage Total MW Const Backlog Dev Stage Total In Probability Operation Probability 100% 80% >5
Slide 13: Pipeline Update: Project Portfolio
PIPELINE UPDATE Project Portfolio 4.6 GW Pipeline Project Classification1 2Q20 1Q20 < 50% Early Stage 2,110MW Success Rate 2,316MW +206MW > 50% Advanced Development 1,666MW Success Rate 1,650MW -16MW > 80% Backlog 466MW Success Rate 494MW +28MW Ready to Build Construction > 100% 160MW -55MW 215MW Suc
Slide 14: Pipeline Update: Projects Under Construction & Backlog
PIPELINE UPDATE Project Under Construction & Backlog More than 650MW of projects pipeline in final phases of development Resource Country Project Type MW B20 COD (Hours) Argentina Kosten Wind 24 Yes 5,033 4Q20 Peru Duna Wind 18 Yes 4,900 4Q20 Peru Huambos Wind 18 Yes 4,900 4Q20 Chile PMGD Solar 65 N
Slide 15: Projects in Advanced Development
PIPELINE UPDATE Projects in Advanced Development PPA negotiation in Spain and Colombia maturing fast, expected to be signed in the coming weeks Advanced Development projects Resource Country Project Type MW COD Offtaker Negotiation (Hours) Spain Belinchon Solar 150 2,150 3Q22 PPA 70-80% Advanced Spa
Slide 16: Built to Own: B2O
BUILT TO OWN: B20 Grenergy increases its IPP target to 1,5GW in 2022 Grenergy will update its IPP targets for 2020-2023 period in Q3 20 earning results 2022 Estimation MW 163 660 1,460 Chile 800 Chile Spain 634 MW (43%) Spain Colombia +100 600 MW (41%) Peru Argentina 500 +400 +66 +200 163 Rest2 +24
Slide 17: ESG
3 ESG
Slide 18: Creating a Sustainability Governance
CREATING A SUSTAINABILITY GOVERNANCE Diagnosis and ESG Policy ESG Action Plan Materiality Assessment ✔ Full external and internal analysis. ✔ ESG police approved by the board. ✔ 3 years ESG action plan approved. ✔ 43 key aspect order by relevance. ✔ Creation of the ESG directors committee. ✔ Include
Slide 19: ESG Action Plan - 2023 Roadmap
ESG Action Plan - 2023 ROADMAP Strategic pillars and TCFD Recommendations The four objectives approved by the ESG Policy will be reached by implementing the ESG Action Plan on five core functional areas Number ESG Policy Action areas of actions Aim ESG Governance ✔ Create a solid ESG Governance Gove
Slide 20: ESG Results - FY 2019
ESG RESULTS - FY 2019 + + ENVIRONMENT SOCIAL GOVERNANCE 691,501 tCO2eq avoided emissions through activity -2% gender pay gap 33.3% women on the Board of Directors +168K€ investment on environmental projects 406 h of employee training 50% independent directors 0 red flags in environmental audits +22,
Slide 21: Focus: The Service Division
4 DIVISION FOCUS: THE SERVICE
Slide 22: Service Division
SERVICE DIVISION Integrated business division to improve company efficiency and greater control over our own plants D&C ENERGY SERVICES SERVICE DEPARMENT ASSET MANAGEMENT OPERATION & MAINTENANCE • Project accounting • Real time monitoring of the assets • Tax management • Corrective and preventive ma
Slide 23: Service Division: Track Record
SERVICE DIVISION Important track record and proved capabilities for future growth Track-record 2016 2017 2018 2019 20203 20213 20223 Projects 14 21 29 32 46 69 ≈120 Capacity (MW) 30 MW 65 MW 102 MW 126 MW 415 MW 936 MW ≈2,000 MW 2009 2016 2020 2022 First O&M and First O&M and AM contracts in Spain A
Slide 24: Service Division: Digitalization and High Technology
SERVICE DIVISION Improving efficiency with digitalization and high technology equipment DIGITALIZATION AND IMPLEMENTATION OF NEW TECHNOLOGIES FIELD OPERATIONS OPTIMIZATION ASSET CONTROL: TECHNOLOGIES • Enhancement of in-field technician's coordination • Real time tracking of the asset through top cl
Slide 25: Appendixes
@ Grerersy APPENDIXES
Slide 26: Platform with Relevant Growth Potential
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Project Classification1 Early Stage Projects with technical and financial feasibility: < 50% • Possibilities to secure land and grid; and/or Success Rate 2,316MW • Possibilities to sell it to third parties Projects with an advanced technical an
Slide 27: Project Overview: 160MW Under Construction
PROJECT OVERVIEW 160MW Under Construction 71MW Build to Own - 89MW Build to sell Country Project Site Type MW Control Interconnect. Environmental Build COD rights approvals & Own Peru Duna Wind 18 Obtained Obtained Obtained Yes 4Q20 Peru Huambos Wind 18 Obtained Obtained Obtained Yes 4Q20 Argentina
Slide 28: Project Overview: 494MW Backlog
PROJECT OVERVIEW 494MW Backlog 494MW Build to Own Country Project Site Type MW Control Interconnect. Environmental Build COD rights approvals & Own Chile PMGD/PMG centro Solar 51 Secured Secured Submitted Yes 2Q22 Chile Quillagua2 Solar 111 Obtained Secured Obtained Yes 3Q21 Chile Mitchi Solar 11 Ob
Slide 29: Project Overview: 1,650MW Advanced Development
PROJECT OVERVIEW 1,650MW Advanced Development Proven track record and important conversion rate from Advance Development to Backlog Country Project Site Type MW Control Interconnect. Environmental COD rights approvals Chile Gabriela Solar 220 Submitted Submitted In progress 1Q23 Chile Teno Solar 200
Slide 30: 2Q20 Results: Profit and Losses
2Q20 RESULTS Profit and Losses Solid increase in Net Income Profit and losses (€k) 1H20 1H19 Delta Revenue 58,081 55,403 5% Income from customer sales 30,818 55,216 (44%) Income from related from third party sales 27,263 187 n,m Procurement (42,252) (41,747) 1% Procurement from third parties (14,989)
Slide 31: 2Q20 Results: Balance Sheet
2Q20 RESULTS Balance Sheet Balance Sheet (€k) 30/6/20 31/12/19 Var. Non-current assets 148,097 88,044 60,053 Intangible assets 9,453 9,446 7 Fixed asset 129,572 70,347 59,225 Assets with right of use 4,657 4,564 93 Deferred tax assets 4,139 3,498 641 Other fix assets 276 189 87 Current assets 70,750
Slide 32: 2Q20 Results: Net Debt
2Q20 RESULTS Net Debt In spite of important investment activity the company has still ample capacity for finance growth Net Debt (€k) 1H20 FY19 1H20-FY19 Long-term financial debt 35,253,251 26,097,393 9,155,858 Short-term financial debt 5,796,671 4,841,280 955,391 Other long term debt 182,219 208,249
Slide 33: Developers and IPP of Solar PV & Wind Projects
Developers and IPP of SOLAR PV & WIND projects Lima – Madrid – Santiago – Bogotá