Citicore Energy REIT Corp · PSE:CREIT
Citicore Energy REIT — Investor Presentation (May 2022)
38 slides from Citicore Energy REIT's investor presentation, May 23, 2022
Slide 1: Company Presentation
COMPANY PRESENTATION 23 May 2022 SUGGESTED COVER slide 1
Slide 2: Disclaimer
Proprietary and Confidential – Do Not Distribute Disclaimer This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of Citicore Energy REIT Corp. (the “Company”
Slide 3: Agenda
Proprietary and Confidential – Do Not Distribute Agenda CREIT Overview 4 Oliver Tan, President & CEO Key Investment Highlights 9 Joan Cosico, Citicore Group IR Head Financial Highlights 35 Mia Cortez, CFO 3
Slide 4: Citicore Energy REIT Overview
Proprietary and Confidential – Do Not Distribute Citicore Energy REIT Overview
Slide 5: IPO Overview CREIT
Proprietary and Confidential – Do Not Distribute TEMPLATEIPO Overview CREIT (CSWATER) 2,181,819,000 Firm Shares, comprising: IPO Price ₱2.55 / Offer Share - 1,047,272,000 primary common shares Sponsors - 1,134,547,000 secondary common shares Indicative Yield 2022F – 7.0%; PUBLIC (based on IPO Price)
Slide 6: Citicore Energy REIT Corporation (CREIT)
Proprietary and Confidential – Do Not Distribute Citicore Energy REIT Corporation (CREIT) Post Offer Structure of CREIT Portfolio Highlights TEMPLATE (CSWATER) • CREIT has an initial land portfolio of more than 1,653,621 sq.m. with an appraised value of ₱10.9 billion and additional Public freehold l
Slide 7: CREIT Framework Structure
Proprietary and Confidential – Do Not Distribute CREIT Framework Structure Lease CREC Sale of Guaranteed Base Annual Lease (Php Mn)* CUSTOMERS Properties Agreement Group Electricity Y2022 Y2025 Y2030 Y2035 • Guaranteed Lease Clark Solar 266.17 274.34 299.90 328.35 • Variable Lease Plant Armenia 50.4
Slide 8: CREIT IPO Portfolio
Proprietary and Confidential – Do Not Distribute CREIT IPO Portfolio CREIT’s Post-IPO Portfolio is expected to be comprised of 6 Land assets and 1 Solar Power Plant TEMPLATE (CSWATER) Clark Solar Power Plant Armenia Property Silay Property Dalayap Property Toledo Property Property: Property: Propert
Slide 9: Key Investment Highlights
Proprietary and Confidential – Do Not Distribute Key Investment Highlights
Slide 10: Key Investment Highlights
Proprietary and Confidential – Do Not Distribute Key Investment Highlights Unique REIT Asset with Sustainable ESG investing Green Portfolio 1 6 Stable Occupancy Rate 2 5 Growing Demand for RE 4 3 Efficient operational Robust growth pipeline track record 10
Slide 11: Unique REIT Asset with a Green Portfolio
Proprietary and Confidential – Do Not Distribute 1 Unique REIT Asset with a Green Portfolio
Slide 12: Green Asset Portfolio of Solar Plants
Proprietary and Confidential – Do Not Distribute Green Asset Portfolio of Solar Plants Key Take-Aways 1 All 7 REIT assets are located high irradiation regions Irradiation between c.4.7 – 5.5 kWh/m2/day South Cotabato Property , Distance to Close proximity to key metropolitan areas, with steady major
Slide 13: Green Asset Portfolio of Solar Plants
Proprietary and Confidential – Do Not Distribute Green Asset Portfolio of Solar Plants Armenia Toledo Silay Dalayap Bulacan S.Cotabato 1 Clark Property 2 3 4 5 6 7 Property Property Property Property Property Property 1 Location Pampanga Tarlac City Toledo City Silay City Tarlac City Bulacan South C
Slide 14: Strong payout growth and dividend policy
Proprietary and Confidential – Do Not Distribute Strong payout growth and dividend policy Increasing distributable income % to revenues Strong projected dividend pay-out 1 In PhP millions, except % 2021A 2022E 2023E 86% Net income 225.88 1,224.78 1,222.84 81% Distributable income 223.16 1,094.96 1,1
Slide 15: Stable Occupancy Rate
Proprietary and Confidential – Do Not Distribute 2 Stable Occupancy Rate
Slide 16: Stable Occupancy Rate all Year Round
Proprietary and Confidential – Do Not Distribute Stable Occupancy Rate all Year Round Total Installed Capacity for CREIT’s Tenants (%) 1 WALE with tenants at 20.82 years 5.0% Contracted to contestable 2 customers Area Tenants Lease Sold under priority dispatch on CREIT Property the WESM (in Hectares
Slide 17: Stable Occupancy Rate all Year Round
Proprietary and Confidential – Do Not Distribute Stable Occupancy Rate all Year Round 1 Off-take Contract Renewal of Tenants’ Historical Hourly WESM Price Customers 2 8.00 Day Peak Night Peak 69.3% 7.00 6.00 5.00 WESM Price 7.3 Years (Weighted 4.00 Ave) 3.00 2.00 16.0% 1.00 8.0% 2.8% 3.9% 0.00 1 2 3
Slide 18: Efficient Operational Track Record
Proprietary and Confidential – Do Not Distribute 3 Efficient Operational Track Record
Slide 19: Computerized and Efficient Operations
Proprietary and Confidential – Do Not Distribute Computerized and Efficient Operations 1 Historical Power Outage Plant Availability and Performance Ratio 2 3 in days Internal Outage External Outage Average 30 98% 98% 97% 99% 98% Availability Ratio: 98.3% Average 20 Performance 21 85% 83% 83% 83% Rat
Slide 20: Reputable Sponsor and committed support
Proprietary and Confidential – Do Not Distribute Reputable Sponsor and committed support Backed by Citicore Holdings, Inc., the same group behind the country’s leading construction, engineering and 1 infrastructure conglomerate, Megawide Construction Corp. 2 • Focused on • Engaged in biomass 3 empow
Slide 21: Experienced and professional Board of Directors
Proprietary and Confidential – Do Not Distribute Experienced and professional Board of Directors… 1 Oliver Y. Tan Edgar B. Saavedra Chairman President and CEO 2 • 20 years experience in engineering and • Director, Vice Chairman of the Finance construction Committee, Member of the Executive & • Head
Slide 22: Citicore Fund Managers, Inc.
Proprietary and Confidential – Do Not Distribute Citicore Fund Managers, Inc. Proactive identification of asset 1 Fund Management Company – Directors and Executive Officers Investment growth opportunities 2 Capital management and risk management 3 Leonilo G. Coronel Christopher Nadayag Chairman and
Slide 23: Citicore Property Managers, Inc.
Proprietary and Confidential – Do Not Distribute Citicore Property Managers, Inc. Proactive asset management 1 Property Management Company – Directors and Executive Officers Proactive identification of asset-growth opportunities 2 3 Jose M. Layug, Jr. Abigail Joan R. Cosico Chairman and Independent
Slide 24: Robust Growth Pipeline
Proprietary and Confidential – Do Not Distribute 4 Robust Growth Pipeline
Slide 25: New REIT Assets
Proprietary and Confidential – Do Not Distribute New REIT Assets Bulacan Property South Cotabato Property Annual Net Generation (GWh) 1 Bulacan Property South Cotabato Property 2 19.8 20.2 20.0 20.0 3 4 Location Bulacan South Cotabato 8.8 8.9 9.0 9.1 Land area (sq.m.) 253,880 79,997 Land lease expir
Slide 26: Potential Growth from Project Pipeline 5X
Proprietary and Confidential – Do Not Distribute Potential Growth from Project Pipeline 1 Potential Capacity Build-up – Post IPO (MWpDC) 2 3 319 4 MW 780 MW 195 MW 5X From Y1 to Y5 121 MW 145 MW 2021 2022 2023 2024 2025 Note (1): such projects may be considered by the Company and the Fund Manager af
Slide 27: Steady pipeline for REIT Infusion
Proprietary and Confidential – Do Not Distribute Steady pipeline for REIT Infusion 1 Prospective 5 year Pipeline¹ 2 Capacity Project Name Investment Type Status Completion Date (MWpDC) 3 Solar Rooftop PV Completed + AFAB Solar Rooftop Phase 1 6.5 2021 4 System Commissioned Arayat-Mexico Solar Farm 1
Slide 28: Growing Demand for Renewable Energy
Proprietary and Confidential – Do Not Distribute 5 Growing Demand for Renewable Energy
Slide 29: Positioned to capture vibrant and growing energy demand
Proprietary and Confidential – Do Not Distribute Positioned to capture vibrant and growing energy demand Philippine GDP to revert to growth post COVID PH RE installed capacity to grow CAGR of 16.1 % 2020 to 2030 1 11% 700.0 12.0% 70,000 9% 10.0% 2 600.0 8% 8% 8% 8% 60,000 8.0% 500.0 6% 3 6.0% 50,000
Slide 30: Collaborative policy environment
Proprietary and Confidential – Do Not Distribute Collaborative policy environment 1 Redundant Channels for RE Fiscal Incentives for Renewable Energy suppliers 2 3 Off-taker • Duty Free Importation • Provides end-users an option to 4 choose RE resources as their • Tax Credit on Domestic Capital Equip
Slide 31: Sustainable Investing
Proprietary and Confidential – Do Not Distribute 6 Sustainable Investing
Slide 32: Sustainable ESG Investing
Proprietary and Confidential – Do Not Distribute Sustainable ESG Investing 1 2 Agro-Solar Concept 3 Solar and vegetable farming to co-exist 4 5 6 Community Building Activities Promote inclusive growth. Reduction in CO2 Emissions Towards zero carbon future 32
Slide 33: Sustainable ESG Investing
Proprietary and Confidential – Do Not Distribute Sustainable ESG Investing 1 CICERO SHADES OF GREEN CERTIFICATION: DARK GREEN RATING 2 First in Southeast Asia, Citicore gets highest level of green certification from Cicero 3 Under the Cicero Green ratings, ‘dark green’ ranks highest and such rating
Slide 34: Financial Highlights
Proprietary and Confidential – Do Not Distribute Financial Highlights
Slide 35: Strong financial position
Proprietary and Confidential – Do Not Distribute Strong financial position • 21% 3-year CAGR growth in Equity Pro Forma Financial Position (in PhP millions) • 18% 3-year CAGR decline in Liabilities • Minimal interest-bearing liabilities* as of Dec 2020 Assets Liabilities & Equity • Zero bank loans*
Slide 36: Recurring and predictable revenues and net income
Proprietary and Confidential – Do Not Distribute Recurring and predictable revenues and net income • Revenues are generated lease payments from properties leased by solar plant operators • While total revenues are consistent, 3-year CAGR of net 1,653,621 sq.m. of land income shows growth of 7% lease
Slide 37: Dividend policy and payout growth
Proprietary and Confidential – Do Not Distribute Dividend policy and payout growth Increasing distributable income % to revenues Strong projected dividend pay-out In PhP millions, except % 2021A 2022E 2023E Net income 225.88 1,224.78 1,222.84 86% 81% Distributable income 223.16 1,094.96 1,168.31 Fun
Slide 38: Thank You
THANK YOU For questions, please contact: Michelle A. Magdato CREIT Investor Relations Officer [email protected] SUGGESTED COVER slide 38
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