Grenergy Renovables S.a · BME:GRE
Grenergy Renovables — H1 2023 Earnings Presentation
26 slides from Grenergy Renovables's earnings presentation, Sep 27, 2023
Slide 1: Results Presentation 1H23
The sky is the limit RESULTS PRESENTATION 1H23 RESULTS Madrid, 27th September 2023
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: Highlights
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG OPERATIONAL FINANCIAL ESG EXECUTION PERFORMANCE 15.7GW Total Platform (+1.7GW qoq) Revenues €226m (+110% yoy) Q2 objectives of 1.9GW in Operation & U/C EBITDA €21.7m (+8% yoy) 2023 ESG Roadmap 10.7GWh Storage pipeline Net income €4.0m (-54% yoy) accomp
Slide 4: Platform Overview
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG PLATFORM OVERVIEW 1H23 1Q23 15.7GW +1.7GW USA Solar 4.6 GW Identified Opportunities 2027 4,633MW +851MW Storage 3.0 GWh Early Stage 6,842MW +969MW 2026 Advanced Development 2,049MW -198MW 2025 LATAM Europe In Operation & U.C. In Operation & U.C. Backlog
Slide 5: Solar & Wind Pipeline Update
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG SOLAR & WIND PIPELINE UPDATE ✓ Italian platform reached 1.2GW of solar capacity ✓ US platform added 0.6GW of solar capacity ✓ Chile is our 2nd-largest platform (3.1GW) ✓ Poland increased to 1.3GW of solar capacity ✓ New opportunities in ERCOT (Texas) &
Slide 6: Storage Pipeline Update
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG STORAGE PIPELINE UPDATE Energy Storage Annual Capacity, GWh ✓ Storage pipeline of 10.7GWh (+0.9GWh qoq) 800 ✓ Chile is the most advanced market (4.9GWh, + 0.9GWh qoq) 700 % 600 R 31 ✓ On track to meet our 1.0GWh target in 2025 Capacity GWh 500 CAG 400
Slide 7: PPAs - 825MW Signed YTD Up to 1.5GW
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG PPAs - 825MW SIGNED YTD UP TO 1.5GW ✓ 1.5GW PPAs signed in Spain, Chile & Colombia MW ✓ 825MW YTD in Spain, Chile and Peru 1,500 ✓ Another 1.5GW of PPAs under negotiation ✓ 76% of total output with PPAs from 2026 259 US CORPORATE ✓ €2.0bn of revenues c
Slide 8: Valkyria Project
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG VALKYRIA PROJECT ✓ Sale of 100% of the 150MW Belinchón solar PV project (deal completion expected in 2023) BELINCHÓN ✓ €89m net proceeds 150MW ✓ Capital gains estimated at €70m or €0.5m/MW FIRST ✓ Implicit multiple of 1.7x EV/IC IN OPERATION MILESTONE
Slide 9: Key Operating & Financial Data
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG KEY OPERATING & FINANCIAL DATA ✓ +28% in total output on new capacity and better load factors ✓ Results driven by Energy and asset rotation (none in Q2) ✓ 63% of total output from contracted volumes (+42%) ✓ Capex mainly devoted to Belinchón and Gran T
Slide 10: Revenue & EBITDA Breakdown
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG REVENUE & EBITDA BREAKDOWN ✓ D&C division includes €11m from the disposal of two PMGD projects (21.6MW) in 1Q23 in Chile ✓ Energy division driven by higher output (+28%) on greater installed capacity and better load factors ✓ Retail supply business in
Slide 11: Capex
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG CAPEX ✓ Tangible fixed assets reached €672m in 1H23 ✓ Capex per MW at all-time lows ✓ Total capex of €188m in 1H23 (+220% yoy) ✓ Deflation in modules (c€0.15m per MW) and logistic costs ✓ Project capex concentrated in Belinchón and Gran Teno ✓ IRRs sta
Slide 12: Cash Flow
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG CASH FLOW ✓ Significant working capital recovery (€24m outflow in 1H23 vs. €51m in 1Q23) due to the unwinding of supplier debt ✓ Project Financing for the Belinchón (€90m) and Gran Teno & Tamango ($148m) solar PV plants signed in 1H23 €m 21.7 -23.9 -13
Slide 13: Leverage & Liquidity
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG LEVERAGE & LIQUIDITY Net debt & Leverage (ex IFRS16) Total 527 ✓ Substantial reduction in pro-forma leverage post Belinchón deal Non-recourse Corporate ✓ Asset rotation ongoing with the second milestone of the Valkyria project ✓ Fully funded for 2023-2
Slide 14: ESG Roadmap 2021-2023
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG REVIEW ESG ROADMAP 2021-2023 ESG Action Plan – III Phase ACHIEVEMENT OF 100% OF THE Q2 OBJECTIVES OF THE PLAN 2023 Q1 Q2 Q3 Q4 INFORMATION SECURITY DEFINE THE CORPORATE PURPOSE • Information security: GOVERNANCE APPROVAL OF THE INFORMATION SECURITY POL
Slide 15: Expansion and Improve Positioning in ESG Ratings
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW ESG REVIEW EXPANSION AND IMPROVE POSITIONING IN ESG RATINGS Confirmation of leadership in ESG ratings ESG score Recognition by CDP of the level of 1. Scatec A 81/100 ambition of Grenergy's climate 2. Grenergy Renovables A- Expansion of index coverage, Gren
Slide 16: Appendices
APPENDICES
Slide 17: Pipeline Update
PIPELINE UPDATE Projects In Operation, Under Construction & Backlog 1.9 GW in operation and under construction, 259 MW in final development phase Country Project Type MW B20 Resource COD Offtaker (Hours) Peru Duna Huambos Wind 36 Yes 4,900 4Q20 Merchant Chile Quillagua Solar 103 Yes 2,950 4Q20 Baske
Slide 18: Pipeline Update
PIPELINE UPDATE Projects in Advanced Development >2.0 GW to feed our 2024-25 IPP targets Resource Country Project Type MW COD Offtaker Negotiation (Hours) Spain Clara Campoamor Solar 575 2,000 2Q25 PPA PaP 75% 15 Yrs (259MW) Contracted Italy Le Isole Projects Solar 282 1,250 2Q25 PPA 60-70% In Progr
Slide 19: Platform with Relevant Growth Potential
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Total Platfom1 Includes projects in operation and total pipeline 20-40% Identified Opportunity Identified opportunities (20-40%): Project with technical and financial feasibility, given that 1) there is the possibility of land, 2) access to the
Slide 20: 1H23 Revenues & EBITDA
1H23 REVENUES & EBITDA Divisional Breakdown Revenues (€m) 2Q23 2Q22 Var. 1H23 1H22 Var. Development & Construction 107.3 43.6 146% 185.3 79.6 133% Income from customer sales 4.5 13.5 (67%) 17.4 20.7 (16%) Income from capitalize works 102.8 30.0 242% 168.0 58.9 185% Energy 15.3 14.5 5% 26.9 22.9 17%
Slide 21: 1H23 Results: Profit and Losses
1H23 RESULTS Profit and Losses Profit and losses (€m) 2Q23 2Q22 Var. 1H23 1H22 Var. Revenue 129.8 60.5 115% 225.8 107.4 110% Income from customer sales 27.0 30.9 11% 57.8 48.5 19% Income from capitalize works 102.8 30.0 242% 168.0 58.9 185% Procurement (111.7) (40.7) 175% (181.8) (73.4) 148% Procurem
Slide 22: 1H23 Results: Balance Sheet
1H23 RESULTS Balance Sheet Balance Sheet (€m) 1H23 FY22 Var. (€m) 1H23 FY22 Var. Equity 310.5 244.8 65.7 Non-current assets 794.5 681.8 112.7 Non-current liabilities 491.6 420.9 70.8 Intangible assets 5.8 0.2 5.5 Deferred tax liabilities 34.1 20.4 13.7 Tangible asset 671.8 582.1 89.7 Provisions 13.9
Slide 23: 1H23 Results: Cash Flow
1H23 RESULTS Cash Flow Cash Flow (€m) 2Q23 2Q22 Var. 1H23 1H22 Var. EBITDA 7.3 12.7 (42%) 21.7 20.1 8% + Change in operating WK 27.2 (31.4) n.m. (23.9) (49.3) (51%) + Financial costs & Taxes paid (3.7) (4.6) (18%) (13.9) (8.4) 65% Funds from operations 30.8 (23.3) n.m. (16.1) (37.7) (57%) + ST Inves
Slide 24: 1H23 Results: Net Debt
1H23 RESULTS Net Debt Total leverage1 10.4x (2.9x proforma) Total corporate leverage2 4.6x (0.6x proforma) Net Debt (€m) 1H23 FY22 Var. Long-term financial debt 90.2 92.4 (2.2) Short-term financial debt 121.9 41.7 80.2 Long-term Lease debt (IFRS16) 25.4 25.2 0.2 Short-term Lease debt (IFRS16) 1.1 1.
Slide 25: Net Debt/EBITDA Reconciliation
1H23 RESULTS Net Debt/EBITDA Reconciliation Net Debt/EBITDA Reconciliation 1H23 FY22 (€m) Total Corporate Non-Recourse Total Corporate Non-Recourse Net Debt 553.9 182.2 371.7 339.7 111.5 228.2 Impact IFRS16 26.5 26.5 - 26.4 26.4 - Net Debt ex IFRS16 527.5 155.8 371.7 313.3 85.1 228.2 Proforma Net De
Slide 26: Solar PV + Storage
Independent power producer SOLAR PV + STORAGE EUROPE - USA - LATAM