Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — FY2021 Earnings Presentation
26 slides from Greencoat Renewables's earnings presentation, 2022
Slide 1: Greencoat Renewables PLC FY 2021 Results Presentation
Greencoat Renewables PLC FY 2021 Results Presentation STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has been prepared and issued by Greencoat Renewables PLC (the “Company” or “Greencoat Renewables”). While this Presentation has been prepared in good faith, the information contained in it has not been independently verified and does not purport to b
Slide 3: 2021 Overview
SECTION 1 2021 Overview Europe STRICTLY CONFIDENTIAL
Slide 4: Greencoat Renewables in 2021
Greencoat Renewables in 2021 Building Europe’s leading renewable infrastructure company Key Strengths Simple business model Consistent delivery of business model Robust, inflating, dividend and NAV growth, with stable TSR of 40% since IPO Equity €1,566m Convert wind Proven growth and aggregation cap
Slide 5: Greencoat Renewables 2021 Overview
Greencoat Renewables 2021 Overview 1.5x1 Strong cash generation of €70.5m1 in a low wind year (-16% vs budget) Divided Cover 6.18c per share €47.2m of dividends paid in 2021 with 2% increase in dividend per share targeted for 2022 2022 Dividend Target €1.051 NAV per share NAV growth of 4.1c per shar
Slide 6: Enormous Growth Opportunity
Enormous Growth Opportunity Market entry in 5 European countries, ability to scale demonstrated Continued Diversification Sweden Presence in Ireland, France, Finland1, Norway Market - 11.1 GW Leading Position Spain1 and Sweden Existing Assets Market - 4.1 GW Portfolio – 101 MW, 1 asset Within Invest
Slide 7: ESG – Carbon Negative, Community Positive
ESG – Carbon Negative, Community Positive Comprehensive ESG approach, spanning operational best-practice and upcoming regulation Operational ESG performance Disclosure and progress 2021: 1,522 GWh of green electricity, “A” as UN Principles for Responsible generating 609k tonnes of CO2 savings Invest
Slide 8: Track Record of Growth and Market Leadership
Track Record of Growth and Market Leadership FY 2018 FY 2019 FY 2020 FY 2021 2x increase in net generating capacity in 3 384 MW 462 MW 557 MW 800 MW1 Scaling the years business Continued increase in net €23.1m2 €48.7m2 €66.4m2 €70.5m2 cash generation TSR since IPO of 40%, of 10.2% 33.7% 38.3% 40.0%
Slide 9: Portfolio Overview
SECTION 2 Portfolio Overview STRICTLY CONFIDENTIAL
Slide 10: Greencoat Renewables Portfolio and Commitments
Greencoat Renewables Portfolio and Commitments Market-leadership achieved in Ireland, accelerating growth in continental Europe High-quality, highly contracted, € denominated portfolio 25 Assets 6 years Average age of assets Increasingly diversified into one of world’s biggest markets 5 countries Ma
Slide 11: Ireland Aggregation and Market Opportunity: 2021 Acquisitions
Ireland Aggregation and Market Opportunity Continued consolidation of a strategic market Cordal Wind Farm • 89.6 MW asset located in County Kerry (€188m) • In operation since May 2018 and receiving REFIT until December 2032 Current Situation • Acquired from Cubico Sustainable Investments • ~€360m in
Slide 12: New Market Entries
New Market Entries GRP executed transactions in Finland, Sweden and Spain in 2021 Torrubia Acquisition Highlights (Spain) • To be acquired when COD is reached, expected in Q4 2022 1 • Located in Spain, the first asset in this market for GRP • Acquired on a fully merchant revenue basis • Lightsource
Slide 13: Operational Considerations
SECTION 3 Operational Considerations STRICTLY CONFIDENTIAL
Slide 14: Portfolio Structure and Strategy
Portfolio Structure and Strategy Keeping portfolio “low risk” and adding long-term contracted cashflows 2 I 3 F 1) Market Upside on REFIT Assets 2) Highly Contracted Revenue Stream 3) Inflation Protected Revenues • Day ahead baseload power prices in I-SEM have seen • The majority of GRP’s revenues a
Slide 15: Continued Asset Management Driving Long Term Value
Continued Asset Management Driving Long Term Value Maturing technology and market developments opening potential for future value uplift Near term Medium term Long term Revenue optimisation Technology deployment Valuation upside Greencoat PIP (Performance Improvement Plan) Best in class operational
Slide 16: Active Asset Management: Co-located Battery Project
Active Asset Management: Co-located Battery Project Maturing technology emerging as investible opportunity Enhancing Returns, and Creating Value 4 • Wind/battery co-location synergies possible across portfolio: increased dispatch, grid stabilisation payments, and trading arbitrage 3 Portfolio Approa
Slide 17: Financial Performance
SECTION 4 Financial Performance STRICTLY CONFIDENTIAL
Slide 18: Financial Performance Overview
Financial Performance Overview Consolidated Cash P&L (€’000) FY 2018 FY 2019 FY 2020 FY 2021 Key Considerations Revenue 38,956 92,878 118,646 139,292 Operating Expenses (8,902) (26,305) (35,011) (45,129) • Solid revenue growth year on year. Tax/VAT (647) (46) 644 (2,506) • Stable and solid operating
Slide 19: Net Asset Value
Net Asset Value Key Considerations €748.8m €380.6m (€24.8m) €34.4m (€0.6m) €203.2m €935.2m • Increase of NAV of 4.1c per share: 1,200.0 • Cash generated over the period (minus dividend paid) of +2.8c 1,000.0 • Short term (mostly) power price increased curved of +2.7c • Impact of short-term CPI incre
Slide 20: Financial Structure
SECTION 5 Financial Structure STRICTLY CONFIDENTIAL
Slide 21: Capital Structure to Drive Growth
Capital Structure to Drive Growth Optimised capital structure combining low cost and fixed interest rate Key Considerations GAV (Capital Structure) 1,800 €1,017m €1,177m €1,566m • €484m invested in or committed to new assets GAV 2019 GAV 2020 GAV 2021 in 2021 1,600 - • €631m Aggregate Group Debt at
Slide 22: Balance Sheet with Capacity for Growth
Balance Sheet with Capacity for Growth Funding structure to support M&A pipeline Key Considerations €m Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 • 2021 year end GAV of €1.57bn Forward Sale Asset Completions - 59 - 97 72 • Adjusting for forward sales, GAV expected to increase to €1.87bn December • Comb
Slide 23: Appendix
Appendix STRICTLY CONFIDENTIAL
Slide 24: 2021 Financial Performance (1/2)
2021 Financial Performance (1/2) For the year ended 31 December 2021 Group and wind farm SPV cash flows Net(1) Gross(1) €’000 €’000 Net cash generation(1) 55,999 70,526 Dividends paid (47,171) (47,171) SPV level Capex & PSO Cashflow(2) 26,812 26,812 SPV level debt repayment - (14,527) Acquisitions(3
Slide 25: 2021 Financial Performance (2/2)
2021 Financial Performance (2/2) For the year ended 31 December 2021 Net Cash Generation – Breakdown Net €’000 Gross €’000 Revenue 139,292 139,292 Operating expenses (45,129) (45,129) Tax/VAT (2,506) (2,506) Wind farm operating cashflow 91,657 91,657 SPV level debt interest (5,960) (5,960) SPV level
Slide 26: Portfolio as at December 31st, 2021
Portfolio as at December 31st, 2021 Market leading Irish position, with European market entry now executed Net # Asset Country Vendor Acquired % MW 15 1 Knockacummer Ireland Brookfield Mar 2017 100% 100.0 22 2 Killhills Ireland Brookfield Mar 2017 100% 36.8 Total y/e 2017 136.8 3 Lisdowney Ireland L