Infratil Limited · NZX:IFT
Infratil — Tilt Renewables — FY2020 Earnings Presentation
27 slides from Infratil's earnings presentation, May 2020
Slide 1: Tilt Renewables FY2020 Full Year Results
TILT RENEWABLES FY2020 FULL YEAR RESULTS
Slide 2: Unprecedented Year: FY2020 Highlights
UNPRECEDENTED YEAR FY2020 HIGHLIGHTS Tilt Renewables FY2020 Results 2
Slide 3: Timeline of FY2020
TIMELINE OF FY2020 DELIVERING WITH ENERGY ACROSS THE YEAR Commissioned in 150 metre turbine December 1999 diameter Tilt Renewables FY2020 Results 3
Slide 4: Building on Our Presence: Re-rating of TLT
BUILDING ON OUR PRESENCE CONSTRUCTION + STRATEGIC TRANSACTIONS HAVE DRIVEN RE-RATING OF TLT Tilt Renewables has strengthened its presence as an Australasian With the investments in the Dundonnell and Waipipi wind farm Renewables leader, in a year of value creation. construction projects and then the
Slide 5: FY2020 Balanced Scorecard
FY2020 BALANCED SCORECARD FULL YEAR RESULTS 12 months to 31 March 2020 FY2020 FY2019 Delta % Key context items Safety – Total Recordable Injury • Snowtown 2 (“SWF2”) was under per 1M hrs 10.2 24.6 (58%) Frequency Rate (TRIFR) TLT ownership for 8.5 months in Safety – Lost Time Injuries incidents 1 4
Slide 6: What Is the Tilt Renewables Difference?
WHAT IS THE TILT RENEWABLES DIFFERENCE? KEY DIFFERENTIATORS Tilt Renewables FY2020 Results 6
Slide 7: Quality Assets
QUALITY ASSETS STRONG PERFORMANCE QUALITY ASSETS Operational track record • 1,835 GWh of production (37% average capacity factor) • Good availability levels across the portfolio, including the 20 years ‘young’ Tararua Wind Farm Stage 1 • Average age of fleet to drop significantly with Dundonnell and
Slide 8: Platform for Growth
PLATFORM FOR GROWTH ADVANCING THE PIPELINE WITH DISCIPLINE AUSTRALIA NEW ZEALAND Optimisation of NSW Wind Options Advancing Options and Modernisation of Fleet • Rye Park tip-height modification lodged to maintain its • New wind development sites bolstering existing position as one of NSW’s most pros
Slide 9: Electricity Sales
ELECTRICITY SALES TLT’S PROJECTS ARE ATTRACTIVE TO QUALITY LONG-TERM ELECTRICITY BUYERS PLUS OTHER PATHWAYS TO MARKET ARE AVAILABLE TLT’s strong and long contract mix End of Renewable Energy Target & most PPAs in the Australian market Tilt Renewables FY2020 Results 9
Slide 10: Growing the Business: Focus on Construction
GROWING THE BUSINESS FOCUS ON CONSTRUCTION Tilt Renewables FY2020 Results 10
Slide 11: Dundonnell Wind Farm Project Update
DUNDONNELL WIND FARM PROJECT UPDATE Tilt Renewables FY2020 Results 11
Slide 12: Waipipi Wind Farm Project Update
WAIPIPI WIND FARM PROJECT UPDATE * * project budget in NZ dollars including finance costs Tilt Renewables FY2020 Results 12
Slide 13: Clearing Our Hurdles: FY2020 Operational and Financial Results
CLEARING OUR HURDLES FY2020 OPERATIONAL AND FINANCIAL RESULTS Tilt Renewables FY2020 Results 13
Slide 14: Health and Safety
FY2020 RESULTS HEALTH AND SAFETY We are people powered • Our success is founded upon maintaining a safe work environment for our employees, contractors and communities • Reduction in Lost Time Injuries to 1 injury reflects the progress made in this area, but continued focus is required • Downward tr
Slide 15: Community and Environment
FY2020 RESULTS COMMUNITY AND ENVIRONMENT Communities are important to us • As a long-term participant within regional communities we take pride in engaging constructively and positively with our host communities • TLT recognises the importance of investing in and partnering with our communities to a
Slide 16: Operational Performance Remains Satisfactory
FY2020 RESULTS OPERATIONAL PERFORMANCE REMAINS SATISFACTORY Existing portfolio performing well Production and revenue –12 months to 31 March 2020 • TLT’s operational assets (excluding SWF2) produced FY20 Revenue FY19 Revenue FY20 Revenue % FY20 Production FY19 Production FY20 Production % 1,204GWh,
Slide 17: EBITDAF Comparison to Prior Year
FY2020 RESULTS EBITDAF COMPARISON TO PRIOR YEAR Group EBITDAF A$M • Operational assets (excluding SWF2) produced 1,204GWh, 3% more than the prior year • Full year Salt Creek contribution resulted in higher revenue & opex vs FY2019 • Market disruption with South Australia islanding in Feb 2020 caused
Slide 18: 3-Year Performance
FY2020 RESULTS 3-YEAR PERFORMANCE Group Group Revenue Net Profit A$M After Tax A$M Group Basic and EBITDAF Underlying Earnings A$M per share A$ cents Tilt Renewables FY2020 Results 18
Slide 19: Treasury: Gearing at the Low Point, Positioned for Growth
FY2020 RESULTS TREASURY– GEARING AT THE LOW POINT, POSITIONED FOR GROWTH Debt maturity profile (excludes ongoing amortisation) • Total Group Debt decreased by A$406M across FY2020 due to: 250 AUD debt (A$M) NZD debt (A$M) • Refinancing A$483M of corporate debt (subsequently repaid 200 through sale p
Slide 20: Capital Management: Liquidity Is Strong Heading into FY2021
FY2020 RESULTS CAPITAL MANAGEMENT– LIQUIDITY IS STRONG HEADING INTO FY2021 • Year end cash and investments position of A$679M (of which A$531M is unrestricted cash or short maturity term deposits*) • FY2020 operating cash flow of A$96M • Snowtown 2 sale (including October 2019 debt restructure) was
Slide 21: Outlook for FY2021
A TRANSITIONAL YEAR WITH 469MW MOVING FROM CONSTRUCTION TO OPERATIONS OUTLOOK FOR FY2021 Earnings driver FY2021 Production ▲ Dundonnell production ramp-up from April with full production possible towards end of CY2020 ▲ Waipipi commissioning back ended in FY2021, with earnings a minor driver of Grou
Slide 22: Questions & Answers
QUESTIONS & ANSWERS Tilt Renewables FY2020 Results 22
Slide 23: Financial Statements
FY2020 RESULTS FINANCIAL STATEMENTS All figures in A$ thousands Summary Balance Sheet 31-Mar-20 31-Mar-19 Cash 228,799 94,940 133,859 Summarised Income Statement FY2020 FY2019 Financial assets 449,989 225,468 224,521 Electricity revenue 168,751 192,871 (123%) Receivables & prepayments 28,034 31,
Slide 24: Tilt Renewables Asset Portfolio
APPENDIX TILT RENEWABLES ASSET PORTFOLIO Installed FY2020 FY2020 FY2020 Offtake Offtake Asset Phase Location Commissioned MW GWh Capacity Factor Availability (Energy) (LGCs) Snowtown 1 Operational 101 SA 2008 329 37% 97.0% Merchant + near-term hedges Merchant + forward sales Salt Creek Operational 5
Slide 25: Development Pipeline Depth and Diversity
DEVELOPMENT PIPELINE DEPTH AND DIVERSITY • 366 MW OPERATIONAL, 469 MW UNDER CONSTRUCTION • 836 MW POST COMPLETION DDWF/WWF • PIPELINE >3,000 MW QLD Development Omamari WF Potential capacity: Chewko SF 70MW (wind) Potential capacity: 60MW (solar) QLD Wind (multiple sites) Potential capacity: 250MW (w
Slide 26: Notes on Financial Information
FY2020 RESULTS NOTES ON FINANCIAL INFORMATION Notes on currency conventions 1. All financial information in this publication is presented in Australian dollars unless otherwise specified. Notes on non-GAAP Measures 2. EBITDAF is a non GAAP financial measure but is commonly used within the energy and
Slide 27: Disclaimer
FY2020 RESULTS DISCLAIMER Disclaimer This presentation is issued by Tilt Renewables Limited. While all reasonable care has been taken in the preparation of this presentation, Tilt Renewables Limited and its related entities, directors, officers and employees (collectively “Tilt Renewables”) do not a