Enlight Renewable Energy Ltd · TASE:ENLT
Enlight Renewable Energy — Investor Presentation (May 2023)
26 slides from Enlight Renewable Energy's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION M a y 2023
Slide 2: Legal disclaimer
Legal disclaimer This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; intend s
Slide 3: Enlight at a glance
Enlight at a glance Next generation global renewable energy platform Greenfield developer and IPP Global platform Wind, solar and energy storage Control over entire project life cycle Growing activity across Expertise across main renewable U.S., Europe and Israel technologies Extensive track record
Slide 4: Enlight represents a differentiated investment opportunity
Enlight represents a differentiated investment opportunity Control over entire project lifecycle from greenfield development to power generation maximizes project returns Global platform with operational infrastructure in the largest renewable energy markets across the U.S. and Europe Diversified po
Slide 5: Achieving ~3X growth every years in the past decade
Achieving ~3X growth every 3 years in the past decade Founder mentality, market innovation and business discipline 4.2 GW successfully developed2 52 quarters as a public company 2022 Expansion across major global markets $271m net 2020-2021 Early mover within proceeds 2021 Entering the U.S. storage
Slide 6: Control over entire project lifecycle as both a greenfield developer and IPP
Control over entire project lifecycle as both a greenfield developer and IPP Lead project design Leverage global platform to optimize supply Competitive advantage chain access and terms with low cost of capital Project Engineering Construction Asset Finance Sourcing & Procurement Management Manageme
Slide 7: Our combined developer & IPP model: 4.5 GW and 3.5 GWh Mature Projects
Our combined developer & IPP model: 4.5 GW and 3.5 GWh Mature Projects Generation, Storage, Graph, MW MWh scale Portfolio definitions Operational, under construction and pre- + + Mature construction (expected to start construction within 12 months) + 11,876 12,427 20,539 25,528 4,130 9,572 Projects
Slide 8: Global renewable platform in the right markets at the right time
Global renewable platform in the right markets at the right time Europe Regional energy crisis Renewables the key to energy security Pan European footprint 3.2 GW + 1.1 GWh across 9 European countries Near term upside 1.5 GW of mature projects with exposure to record high power prices United States
Slide 9: Diversified mature portfolio reduces exposure to volatility
Diversified mature portfolio reduces exposure to volatility Diversity across technology, geography and revenue structure< 2% 17% 18% 33% 49% 46% Revenue 10% Technology Region Structure 4.5 GW 4.5 GW 60% 4.5 GW 21% 24% 22% Israel CEE Western Europe US Wind Solar Solar+Storage Fixed PPA Linked PPA Mer
Slide 10: Creating long term growth through “land and expand” development strategy
Creating long term growth through “land and expand” development strategy Addressing transmission scarcity by leveraging existing large-scale interconnection assets to fuel expansion U.S. Europe Israel 1 GW interconnection position in Leveraging Enlight owned transmission Introducing transmission to
Slide 11: Record quarterly results in Q1 2023
Record quarterly results in Q1 2023 Continued rapid growth across financial parameters Q1 2023 versus Q1 2022 ($m) 1,421 71 +98% 103% 54 55 118% +315% 717 35 33 +275% 25 13 9 1 Operational MW Revenue Net income Adjusted Cash flow from EBITDA Operations Q1/22 Q1/23 1Adjusted EBITDA is a non-IFRS meas
Slide 12: Expected growth to continue apace in the coming years
Expected growth to continue apace in the coming years Operational capacity on track to triple to 4.5 GW and 3.5 GWh by the end of 2025 Mature Projects: Operational MW over time Status Today: Operational Under construction Pre construction 4,532 MW + 3,529 MWh CAGR +65% 2021A-2025E Co bar: 2,082 1,20
Slide 13: Atrisco – continuing to focus on execution and returns
Atrisco – continuing to focus on execution and returns Significant progress on financing; additional upside potential Location New Mexico, USA Development complete Technology Solar Advanced negotiations with leading financial institutions to provide a Generation capacity 360 MW $800m construction fa
Slide 14: Gecama Hybrid – continuing to focus on execution and returns
Gecama Hybrid – continuing to focus on execution and returns Hybridization of our existing wind farm to commence construction in H2 2023 Location Spain Gecama Wind is the largest operational wind farm in Spain, 329 MW Technology Wind + Solar + Storage Gecama Solar would add solar and storage to exis
Slide 15: Co Bar Cluster – continuing to focus on execution and returns
Co Bar Cluster – continuing to focus on execution and returns Incremental 475 MW contracted in the first quarter; 1 GW of cluster now with signed PPAs Location Arizona, USA New PPA signed of 475 MW with local utility Technology Solar 1 GW contracted; remaining 200 MW in negotiations, in addition to
Slide 16: U.S portfolio expected to benefit from energy community adders
U.S portfolio expected to benefit from energy community adders Energy communities to benefit from 10% tax credit adder on PTC and ITC Potential Potential Qualification Project Qualification Under Both Fossil Total Potential 25% of U.S. Portfolio Expected Classification (MW) Under Closed Fuel & Curre
Slide 17: Our portfolio possesses large portfolio of advanced interconnection positions
Our portfolio possesses large portfolio of advanced interconnection positions In interconnection constrained market, quality of pipeline driven by interconnection status Advanced Mature Development Development Projects 8.67GW System Impact Study Completed 55% of total portfolio in the United States
Slide 18: Existing resources sufficient to complete Mature Project portfolio
Existing resources sufficient to complete Mature Project portfolio4 Mature Project portfolio fully funded< <Potential to generate substantial distributions from 2026+ ($m) 4.5 GW + 3.5 GWh Mature Projects Potential annual distributions from Mature Projects3 (Enlight share) $155m Excess 850 cash: 800
Slide 19: Illustrative financing strategy for autonomous funding of 1.5 GW a year from 2026 onward
Illustrative financing strategy for autonomous funding of 1.5 GW a year from 2026 onward3 1.5 GW per year anticipated uses: $270m per year 1.5 GW per year from cash flow and minority sell-downs: $270m per year 1 Annual potential cash flow: $100m Deployment Blended Capex 1 1.5 GW a year $0.9m per MW
Slide 20: Supply chain strength driven by scale coupled with global breadth
Supply chain strength driven by scale coupled with global breadth Globally Differentiated Supply Chain Israel and Europe U.S. Key Suppliers Key Suppliers South East Asia module suppliers Indian module suppliers U.S. Battery Supplier Diversified supplier pool which mitigates Opportunistic approach ac
Slide 21: Deep global management team
Deep global management team Decades of renewable energy experience ~220 Total Employees Gilad Yavetz Co-founder & CEO 40 Jason Ellsworth Project Developers Co-founder & CEO Clenera Marko Liposcak Nir Yehuda Meron Carr Amit Paz VP, Business Dev Europe CFO VP, Israel Project SVP, Engineering & Develop
Slide 22: Enlight represents a differentiated investment opportunity
Enlight represents a differentiated investment opportunity Huge opportunity, having just scratched the surface Strong track record of execution globally Diversity across markets, technologies and revenue structures Combined developer and IPP model has delivered high growth and returns Focus on deliv
Slide 23: Appendix
APPENDIX 23
Slide 24: Reaffirming guidance for 2023
Reaffirming guidance for 2023 Operational Portfolio Revenue Adjusted EBITDA2 Proceeds for )MW* ($m) ($m) financial assets projects1 ($m) 290f300 Key Assumptions 54% 48% • Bjorn - Full COD by end of H1 192 188f198 • Genesis Wind g COD H2 +30% 130 1,848 102 • Apex Solar g COD by end of H1 99 No Materi
Slide 25: 2.1 GW and 1.8 GWh of pre-construction projects largely de-risked
2.1 GW and 1.8 GWh of pre-construction projects largely de-risked Project Total MW / MWh Real Estate Interconnection Permit Offtake Commentary Advanced interconnection; Co Bar Cluster 1,200 / 824 Final 200 MW and storage under negotiation n/a Negotiating environmental permits Gecama Solar 250 / 200
Slide 26: Appendix 1- Reconciliations between Net Income to Adjusted EBITDA
Appendix 1- Reconciliations between Net Income to Adjusted EBITDA ($ thousands) For the three months period ended 03/31/23 03/31/22 Net Income 33,276 8,871 Depreciation and amortization 13,140 7,015 Share based compensation 1,389 2,481 U.S. acquisition expense - - Other income - - Finance income (20
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