Greencoat Renewables Plc · EURONEXT:GRP
Greencoat Renewables — FY2022 Earnings Presentation
31 slides from Greencoat Renewables's earnings presentation, 2023
Slide 1: Greencoat Renewables PLC 2022 Full Year Results Presentation
GREENCOAT RENEWABLES PLC 2022 Full Year Results Presentation
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: Overview
OVERVIEW
Slide 4: Greencoat Renewables Overview
Greencoat Renewables Overview Building a leading European renewable infrastructure company Key Strengths Simple business model Consistent delivery of business model TSR of 49%1 since IPO (7.6% CAGR) with 31% via dividends Equity 2 -> 35 assets Discount rate reflecting increasing market €2,227m 1 ->
Slide 5: Greencoat Renewables 2022 Highlights
Greencoat Renewables 2022 Highlights Strong cash generation of €215.0m¹ 3.2x¹ Divided Cover €66.4m of dividends paid in 2022 6.42c per share (+4%) 2023 Dividend Target NAV growth of 7.3c per share €1.124 NAV per share in 2022 Q4 2022 NAV €1,056m invested or committed in 2022, with 1,164 MW2 continue
Slide 6: Strategically Positioned for Disciplined Growth
Strategically Positioned for Disciplined Growth Significant uplift to GRP’s capabilities, capitalizing fully on the European market opportunity Shorter Timelines for European Expansion across Europe Utilities pursuing capital recycling model Renewables Deployment 6 Offices across Europe €500 billion
Slide 7: Comprehensive ESG Strategy Underlying Renewables Pure-Play
Comprehensive ESG Strategy Underlying Renewables Pure-Play 100% renewable electricity generation Operational ESG performance Disclosure and progress 2022: 2,487 GWh of green electricity, generating 685,997 tonnes of 'A' as UN Principles for Responsible Investment (PRI) signatory CO₂ savings and powe
Slide 8: Operational Considerations
OPERATIONAL CONSIDERATIONS
Slide 9: Portfolio Structure and Strategy
Portfolio Structure and Strategy Keeping portfolio assets ‘low risk’ and adding long-term contracted cashflows €/MWh 1) Highly Contracted Revenue (Real) Stream Revenue Mix at Q4 2022 NAV 100% 100 ● The majority of GRP’s revenues are set to come from contracted sources to 2032 90% 90 ● GRP continues
Slide 10: Operational Excellence
Operational Excellence Successful implementation of PIP1 and strong pipeline for further optimisation Performance to date Project pipeline Long term potential Operations optimisation Further planned developments Significant opportunities Performance to date • Key focus area for asset management team
Slide 11: Killala Battery Co-Location Case Study
Killala Battery Co-Location Case Study Optimising GRP’s existing asset base Utilised excess grid capacity Operating performance Killala wind farm was acquired with 10.8 MW spare grid connection capacity EBITDA in line with budget despite difficult regulatory environment surrounding Leveraged in-hous
Slide 12: Financial Performance and Structure
FINANCIAL PERFORMANCE AND STRUCTURE
Slide 13: Financial Performance Overview
Financial Performance Overview Consolidated Cash P&L (€’000) FY 2019 FY 2020 FY 2021 FY 2022 Revenue 92,878 118,646 139,292 330,550 Operating Expenses (26,305) (35,011) (45,129) (86,585) Key Considerations Tax/VAT (46) 644 (2,506) (7,839) ● Strong revenue growth year on year Other - - - 9,670 driven
Slide 14: Net Asset Value
Net Asset Value €m €935.2m €655.7m (€103.3m) €114.7m (€6.3m) (€313.6m) €1,282.5m Key Considerations 1,800 1,600 ● During the period, the 7.3 cent per share NAV increase is attributable to: 1,400 – Cash generated over the period 1,200 (minus dividend paid) of +13.8 cent 1,000 – Depreciation of the po
Slide 15: Capital Structure
Capital Structure Robust balance sheet combining low cost and fixed interest rate GAV (Capital Structure) Key Considerations €1,017m €1,177m €1,566m €2,227m GAV Y/E 2019 GAV Y/E 2020 GAV Y/E 2021 GAV Y/E 2022 ● €1,056m invested in or committed to new assets in 2022 GAV (€m) 2,500 ● €945m Aggregate G
Slide 16: Portfolio and Acquisitions
PORTFOLIO AND ACQUISITIONS
Slide 17: The European Energy Transition
The European Energy Transition Demand for electricity is expected to grow …while Europe is urgently transitioning to net zero European demand forecast (TWh) 1 Key pillars EU energy strategy 5000 Growth vs 2022 +41% +55% +65% Phase out dependency on fossil fuels By 2030 European wind & 4000 +28% 3000
Slide 18: Established Positions in Large European Renewables Markets
Established Positions in Large European Renewables Markets Market entry in 6 European countries via onshore wind, offshore wind and solar assets Leading Position Key Considerations Existing Assets • Partnership with key developers and IM Office Finland utilities including Ørsted, SSE, Statkraft and
Slide 19: 2022 Acquisitions
2022 Acquisitions €1,056m invested or committed across Europe during 2022 (c.590 MW) Tullahennel Wind Farm ● 37.05 MW asset located in County Kerry (c.€75m). In operation since September 2018 and receiving REFIT until December 2032 Soleidra Wind Farm ● 24 MW asset located in Northeast Spain (c.€42m)
Slide 20: Diversifying Further into Europe in 2022: Borkum Riffgrund I
Diversifying Further into Europe in 2022 Acquisition of Stake in Borkum Riffgrund I Investment Fundamentals Asset Highlights ● Acquisition of a 50% stake for c.€350m which closed in Q2 2022 ● 312 MW offshore wind farm, located in Germany’s exclusive economic zone in the North Sea ● Bilateral process
Slide 21: Diversifying Further into Europe in 2022: Butendiek
Diversifying Further into Europe in 2022 Acquisition of Stake in Butendiek Investment Fundamentals Asset Highlights ● Acquisition of a 22.5% stake for c.€190m which was signed in Q4 2022 and ● 288 MW offshore wind farm, located in Germany’s exclusive economic zone completed in February 2023 in the N
Slide 22: Forward Sale Model – Construction Update
Forward Sale Model – Construction Update Investment Manager expertise enlarging value chain opportunity Construction Construction Expected Capacity Partner Progress Completion ● Construction almost Torrubia, completed, some repairs Q1 50.0 Suntech panels Lightsource BP being carried out Spain 2023 M
Slide 23: Summary
SUMMARY
Slide 24: The Greencoat Difference – Strategic Opportunity for Growth
The Greencoat Difference – Strategic Opportunity for Growth Exclusive focus on renewable energy projects with efficient, active long-term asset management Strategic industry relationships In-house capabilities underpinning active value creation Technical expertise European Team (>30% of workforce ha
Slide 25: Balance Sheet with Existing Capacity for Growth
Balance Sheet with Existing Capacity for Growth Funding structure to support M&A pipeline €m Q1 2023 Q2 2023 Q3 2023 Q4 2023 Key Considerations ● Oversubscribed equity raise with gross Equity Acquisitions 231 72 31 135 proceeds of €281.5m closed in Q1 2022 ● Gearing would increase to 48% post near €
Slide 26: Appendix
APPENDIX
Slide 27: NAV Sensitivities
NAV Sensitivities Impact on NAV Valuation Factors ● The base case asset life depends on Discount rate (+/- 0.5%) the technology as those are underpinned by different design life: – On-shore wind assets’ lifetime is Inflation rate (-/+ 0.5%) typically 30 years – Off-shore wind assets’ lifetime is bas
Slide 28: FY 2022 Financial Performance (1/2)
FY 2022 Financial Performance (1/2) For the year ended 31 December 2022 Group and wind farm SPV cash flows Net1 Gross1 €’000 €’000 Net cash generation1 201 ,548 215,030 Dividends paid (66,378) (66,378) SPV level Capex & PSO Cashflow2 20,494 20,494 SPV level debt repayment – (13,482) Acquisitions3 (6
Slide 29: FY 2022 Financial Performance (2/2)
FY 2022 Financial Performance (2/2) For the year ended 31 December 2022 Net Cash Generation – Reconciliation to For the year ended 31 December 2022 Net Cash Generation – Breakdown Net €’000 Gross €’000 Net Cash Flows from Operating Activities Net €’000 Gross €’000 Revenue 330,550 330 ,550 Net cash f
Slide 30: Portfolio as at December 2022
Portfolio as at December 2022 Market leading Irish position, with European market entry now executed # Asset Country Vendor Acquired % Net MW 15 1 Knockacummer Ireland Brookfield Mar 2017 100% 100.0 2 Killhills Ireland Brookfield Mar 2017 100% 36.8 Total y/e 2017 136.8 3 Lisdowney Ireland Local Deve
Slide 31: List of Abbreviations
List of Abbreviations CAGR Compound Annual Growth Rate MWh Megawatt Hour Capex Capital Expenditure NAV Net Asset Value COD Commercial Operations Date O&M Operations and Maintenance Delivering a Secure Sustainable Electricity P&L Profit and Loss DS3 System PLC Public Limited Company FCF Free Cash Flo