Aquila European Renewables Plc Registered · LSE:AERI
Aquila European Renewables Plc Registered — Aquila European Renewables Income Fund — H1 2021 Earnings Presentation
43 slides from Aquila European Renewables Plc Registered's earnings presentation, Sep 28, 2021
Slide 1: Aquila European Renewables Income Fund Plc 1H21 Results
Aquila European Renewables Income Fund Plc 1H21 Results FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL Generating Essential Investments
Slide 2: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 2
Slide 3: Aquila European Renewables Income Fund Plc ("AERIF")
Aquila European Renewables Income Fund Plc (“AERIF”) Strategy • UK domiciled investment company investing in renewable energy technologies across continental Europe and the Republic of Ireland • Focus on diversification to secure income Technology Geography Contracted Revenue € Target at IPO: 30 – 5
Slide 4: Aquila Capital – One of the largest Clean Energy Portfolios in Europe
Aquila Capital – One of the largest Clean Energy Portfolios in Europe Track record of Clean Energy assets by country1 (in MW/MWp) SE, FI, DK & NO UK 3,114 19 DE US FR 574 JP 300 285 80 TR 45 PT ES 886 2,313 IT & GR 4,527 Total transaction volume Assets transacted in Dedicated teams for Industry lead
Slide 5: Aquila Capital's Presence in Southern Europe
Aquila Capital’s Presence in Southern Europe 7.5 GW+ Portfolio in Portugal Spain Italy Greece Southern Europe Supported by Local Teams – Offices in Lisbon, Madrid, Barcelona – Recently opened offices in Milan & Athens1 – 29+ employees, targeting 60 in 2021 Offices Solar PV / Wind Development Constru
Slide 6: Investment Adviser – Aquila Capital
Investment Adviser – Aquila Capital AERIF Managed by Aquila Capital’s Partnerships & Portfolio Advisory Team supported by over 110+ experts specialising in origination, asset management and merchant markets Christine Brockwell Michael Anderson Nicole Zimmermann Daniel Metzger Diego Escobar Pascal He
Slide 7: Environmental and Social Contribution to the Green Economy
Environmental and Social Contribution to the Green Economy AERIF1 Aquila Capital2 More than More than More than More than 216,000 250,000 3.6 million 4.4 million Households supplied Tonnes of CO2 Households supplied Tonnes of CO2 with green energy emissions offset with green energy emissions offset
Slide 8: Environmental and Social – Recent Initiatives
Environmental and Social – Recent Initiatives Asset Level Initiatives Fund Level / Other – GRESB assessment for Sagres, with a rating of 80 points and positioned – Sustainable Finance Disclosure Regulation (“SFDR”) article 8 fund. in 2nd place amongst peer groups Currently reviewing article 9 requir
Slide 9: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 9
Slide 10: Portfolio Snapshot
Portfolio Snapshot Key Statistics – 30 June 20211 10 30 Investments Operating assets2 2 6 projects under Countries construction 332.3 MW ~24 Operating capacity Remaining asset life (years)3 71.7% 25.4% Contracted revenue4 Leverage5 1Data based on AERIF share, where applicable. 2Sagres includes 21 se
Slide 11: Portfolio Summary
Portfolio Summary Project Technology Country Capacity1 Status COD2 Asset Life Equipment Energy Ownership Leverage4 Acquisition from COD Manufacturer Offtaker3 in Asset Date Tesla Wind energy Norway 150 MW Operational 2013, 25y Nordex PPA / Spot 25.9%6 27.1% July 2018 2019 Sagres Hydropower Portugal
Slide 12: Acquisitions closed since the last fund raising in October 2020
Acquisitions – EUR 150 million1 closed since the last fund raising in October 2020 Albeniz Desfina The Rock Ourique Technology Solar Wind Wind Solar Country Spain Greece Norway Portugal Capacity 50 MWp 40 MW 400 MW 62 MW Status Construction Operational Construction Operational COD Q4 2021 (expected)
Slide 13: Portfolio Allocation
Portfolio Allocation1 Technology Geography Asset Status Asset Age 5.2% 5.2% 13.5% 21.0% 25.7% 25.1% 18.2% 9.4% 8.9% 69.7% 25.6% 76.6% 21.7% 74.3% Portugal Norway Denmark Hydro Solar PV Wind Finland Spain Greece Operating Under construction > 10 years 5 - 10 years < 5 years The company has continue
Slide 14: Attractive Contracted Revenue Base
Attractive Contracted Revenue Base Present Value of Contracted vs. Non- Revenue Mix – Existing Contracts Only (including The Rock / Albeniz) Contracted Revenue (5 Years)1 100% 90% Aquila will proactively seek to replace expired PPA / tariff contracts over time 22.9% in order to maintain a high degre
Slide 15: Construction progress
Construction progress The Rock Albeniz Heifjellet substation was successfully energised after all of the Construction process has been as forecasted and completion is project’s 33kV cables had been installed expected in Q4 2021 The transportation of components to Mosjøen harbour also At the
Slide 16: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 16
Slide 17: Track Record Since IPO
Track Record Since IPO Summary1 Capital Deployment (EUR m)2 Deployed or committed capital of approx. EUR 327 million since IPO 350.00 Aggregate dividends paid or declared since IPO: c. EUR 16m 300.00 250.00 Dividend targets achieved in 2019 and 2020. Dividend fully covered 200.00 FY21 divide
Slide 18: Highlights
Highlights 1H21 Highlights 1H21 KPIs1 Acquisition of 50% of Ourique and Bridge Company has achieved further diversification Metric 1H21 1H20 financing commitment in relation to The Rock increasing solar PV to 25.1% (14.9% as of 31 (EUR 35.6m in total2) December 2020) Dividend per ordinary share
Slide 19: Asset Performance
Asset Performance 1H21 Monthly Production Performance vs. Budget Production by Technology (AERIF Share) (AERIF Share, GWh) 70.0 Technology Region1 Electricity Production (GWh)1 Variance (1H21 actual 60.0 vs budget) 1H21 1H20 50.0 40.0 Denmark, Finland, Wind 190.4 185.9 (12.8%) Norway & Greece 30.0 2
Slide 20: European Power Price Developments
European Power Price Developments Daily Average Power Price1 EUR / MWh 140 1H20 1H21 120 100 80 60 40 20 0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Nordpool Iberia Greece During the first half of 2021, power price
Slide 21: Balance Sheet and Liquidity (30 June 2021)
Balance Sheet and Liquidity (30 June 2021) Key Debt Metrics (EUR m)1 Liquidity and Project Commitments (EUR m) Company level debt 0.0 Total cash on hand 24.9 Asset level debt 107.6 RCF limit 40.0 Total debt 107.6 Total liquidity 64.9 NAV 316.2 Remaining commitments (The Rock, Albeniz) 50.3 GAV 423.8
Slide 22: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 22
Slide 23: Net Asset Valuation
Net Asset Valuation Net Asset Value Bridge (EUR m) 7.2 2.8 316.9 - 1.1 316.2 (4.0) (7.9) (Loss)/gain on investments – EUR (3.2)m (refer slide 29) (Loss)/profit on ordinary activities after taxation – EUR (6.0)m (refer slide 29) FY20 Raised capital Movement in Net profit / loss for Net profit / loss
Slide 24: Portfolio Valuation
Portfolio Valuation Portfolio Valuation Bridge (EUR m) Portfolio Value Split (EUR m) 1H21 FY20 293.6 3.0 0.7 2.1 0.4 1.8 Tesla 27.2 25.4 57.8 0.2 1.9 - Sagres 15.3 15.2 (1.9) (0.9) Holmen II 24.5 21.5 Olhava 26.0 25.3 Svindbaek 39.1 37.0 228.5 The Rock 47.9 32.2 Benfica III 15.8 16.7 Albeniz 27.5 17
Slide 25: Key Assumptions
Key Assumptions Metric 1H21 FY20 Discount rate Weighted average 6.3% 6.6% Long-term inflation Weighted average 2.0% 2.0% Wind 24 years 24 years Remaining Asset life Hydropower 12 years (Weighted Average)1 12 years Solar 27 years 27 years In the short to medium term, forecast electricity prices (so
Slide 26: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 26
Slide 27: Conclusion
Conclusion 1H21 performance Low risk, defensive asset portfolio Portfolio generating capacity of 332.3 MW Country and technology diversification Portfolio production 11.2% below budget High contracted revenue visibility with 71.7% of revenue contracted for the next five years Recovery in p
Slide 28: Table of Contents
Table of Contents 1 Introduction 2 Portfolio 3 Financial and Operating Performance 4 Valuation 5 Conclusion 6 Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2021 AQUILA CAPITAL 28
Slide 29: Summary Income Statement
Summary Income Statement EUR k 1H21 1H20 Gains/(losses) on investments 3,288 (6,759) Net foreign exchange gains/(losses) 3 (8) Interest income 4,834 2,709 Investment advisory fees (1,175) (716) Other expenses (702) (549) Profit /(loss)on ordinary activities before finance costs and taxation 6,248 (5
Slide 30: Summary Balance Sheet
Summary Balance Sheet EUR k 1H21 FY20 Assets Cash 21,482 121,014 Trade and other receivables 6,838 5,763 Portfolio value 291,084 229,982 Liabilities Creditors (3,252) (39,856) Net assets 316,152 316,903 Net assets per Ordinary Share (cents) 99.36c 99.96c FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIA
Slide 31: Summary Cash Flow
Summary Cash Flow EUR k 1H21 FY20 Operating activities Profit on ordinary activities before taxation 6.051 (1,187) Adjustment for unrealized (gains)/losses on investments (3,288) 3,959 Working capital adjustments (37,680) (2,398) Net cash flow (used)/from in operating activities (34,917) 374 Purchas
Slide 32: Reconciliation – Portfolio Value and NAV
Reconciliation – Portfolio Value and NAV EUR k 1H21 FY20 Operating assets 217,393 181,211 Construction assets 73,691 48,771 Fair value of investments 291,084 229,982 Cash 21,482 121,014 Total assets 312,566 350,996 Other assets and liabilities 3,586 (34,093) Net Asset Value 316,152 316,903 Ordinary
Slide 33: Asset Acquisition and Economic Transfer Dates
Asset Acquisition and Economic Transfer Dates Asset Acquisition Date Economic Transfer Date Tesla Jul 2019 Jan 2019 Sagres Jul 2019 Jan 2018 Holmen II Jul 2019 Jan 2019 Olhava Sep 2019 Aug 2019 Svindbaek I Dec 2019 Jan 2020 Svindbaek II Mar 2020 Jan 2020 The Rock Jun 2020 Jun 2020 Benfica III Oct 20
Slide 34: Merchant Market Desk – The Hub for Hedging Activities Across Aquila Group
Merchant Market Desk – The Hub for Hedging Activities Across Aquila Group Run competitive off-taker selection processes through PPA sourcing Energy and We measure, monitor and manage merchant our extensive network in the energy industry. exposure through selling at spot, entering into short- and
Slide 35: European Power Prices and the Benefits of Diversification
European Power Prices and the Benefits of Diversification MIBEL (Iberia) vs. Nord Pool Power Prices (EUR)1 Revenue Correlation Matrix – Europe and UK2 EUR / MWh AERIF Portfolio AERIF Portfolio vs. UK renewables 150 Correlation Matrix MIBEL Nord Pool –– MIBEL 1 0.1962 –– Nord Pool 0.1962 1 100 50 0 A
Slide 36: Simulation Analysis and New Investment Opportunities
Simulation Analysis and New Investment Opportunities Historical prod1-price 500 prod-price simulations 500 simulations for 500 simulations at correlation at asset level per asset revenue correlation fund level – Simulation analysis allows for unique insights beyond asset-level analysis: Identifica
Slide 37: Merchant Market Desk
Merchant Market Desk PPA Origination and Market Analysis Joakim Johnsen Marcos Dominguez Lars Haavik Natalia Wisniewska Mena Nidam Head of Merchant Market Desk Director Power Sales Iberia Director Power Markets Nordics Power Markets Analyst MMD Analyst Experience & previous roles Experience & previo
Slide 38: AQ ENRG – Trading & Origination
AQ ENRG – Trading & Origination Hedging and portfolio management solutions, FX and interest rate exposure management Dr. Arne M. Weber Dean Morris Norman Hartmann Dr. Dirk Brunnberg Kilian Leykam Terence Scheit Ben Corp Konstantinos Björn Head of Trading & Head of Chief Technology Energy Markets & H
Slide 39: Terms of the Fund
Terms of the Fund Aquila European Renewables Income Fund Plc Fund structure UK-domiciled closed-end investment company Listing Premium Segment of the London Stock Exchange Ticker / ISIN in EUR / SEDOL AERI / GB00BK6RLF66 / BK6RLF6 Ticker / ISIN in GBP / SEDOL AERS / GB00BK6RLF66 / BJMXQK1 Currency F
Slide 40: Contact details
Contact details Germany Czech Republic Japan Luxembourg Netherlands New Zealand Hamburg (Headquarters) Prague Tokyo Senningerberg Amsterdam Invercargill Valentinskamp 70 Palladium BUREX FIVE Airport Center Luxembourg Tower F, World Trade Center 173 Spey Street 20355 Hamburg Náměstí Republiky 1 2-11-
Slide 41: Important notice
Important notice FOR INSTITUTIONAL/PROFESSIONAL INVESTORS ONLY. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA, OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE
Slide 42: Important notice (cont'd)
Important notice (cont’d) The information contained in this document is given at the date of its publication (unless otherwise marked) and may be incomplete and subject to change. In particular certain figures contained in this presentation, including financial information, are unaudited and may be
Slide 43: Important notice (cont'd)
Important notice (cont’d) The Fund is incorporated and registered in England and Wales as a public company limited by shares under the Companies Act 2006 (as amended). A prospectus has been issued for the Fund, which is, together with further documents and information available free of charge via we
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