Scatec Asa · OSL:SCATC
Scatec Asa — Investor Presentation (July 2022)
30 slides from Scatec Asa's investor presentation, July 2022
Slide 1: Investor presentation July 2022
Investor presentation July 2022
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: Contents
Contents 1. Scatec in brief 2. Our business model 3. Financials 4. Outlook
Slide 4: Scatec in brief
01 Scatec in brief Scatec
Slide 5: Key investment highlights
Key investment highlights A leading renewable power producer with 4.6 GW in operation and under construction Solid and predictable cash flow generation supported by 16 years PPAs A track record of growth with a 14.8 GW project pipeline across high growth markets A business model to develop, build, o
Slide 6: Scatec provides renewable energy solutions in high growth markets
Scatec provides renewable energy solutions in high growth markets - 4.6 GW of solar, wind, hydro and storage in operation and under construction Scatec in brief Develop, build, own and 3,160 MW Plants in operation operate renewable energy Plants under construction 1,422 MW Projects in backlog 39 MW
Slide 7: A growing portfolio of renewable assets
Power production Key figures A growing portfolio of renewable assets Capacity1 MW 3,500 4.1 Power 3,000 2,500 TWh2 production 2,000 1,500 4,093 1,000 Q2’22 LTM 500 MNOK revenues3 0 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Wind Hydro Solar MNOK 2,693 Q
Slide 8: Predictable and diversified long-term cash flows
Predictable and diversified long-term cash flows Long-term PPA’s with weighted average remaining tenor of 16 years¹ Diversified asset portfolio Power Production EBITDA distribution Q2’22 LTM 2022 2025 2030 2035 2040 2045 2050 Vietnam Argentina Brazil Other Philippines (2) Jordan 2% Egypt 22 Honduras
Slide 9: Our business model
02 Our business model Scatec
Slide 10: Scatec's integrated business model
Scatec’s integrated Scatec’s business model and strategic approach business model • Develop, build, own & operate Project development • An agile and proven approach Partnerships • Focus on markets with excellent Long-term Attractive conditions for renewables Financing & returns offtake agreements st
Slide 11: A typical project structure
A typical project structure Illustration of company structure and main contracts Equity co- Scatec investors 100% 39%-100% Shareholders’ agreement Land owners Land lease agreements Component Suppliers Scatec EPC contract Single Purpose Loan Project O&M / EPC O&M contract Vehicle agreements financing
Slide 12: Value creation in Scatec's integrated business model
Value creation in Scatec’s integrated business model Illustration of Equity IRR build up: • The integrated business model yields 18+% multiple sources of value • Project cost of equity defined based on e.g. leverage, currency and country risk premium • Scatec guidance: 12-16% • Avg project Equity IR
Slide 13: Partnering with Development Banks for project finance and risk mitigation
Partnering with Development Banks for project finance and risk mitigation Multilateral development banks (DFIs) are providing equity and debt to infrastructure projects in emerging markets DFIs are often advising governments on design of renewable programmes to promote private/public partnerships Pr
Slide 14: ESG aspects are integrated in our operating model
Environmental, Social & Governance aspects are integrated in our operating model Project Power Opportunity Financing Delivery Development Production Risk assessment & monitoring Environmental & social impacts Stakeholder engagement, grievance mechanism & local development Health & Safety Responsible
Slide 15: Top rating from independent rating agencies
Platinum Medal Highest recognition for sustainability Top rating from independent rating agencies ratings, placing Scatec among top 1% rated worldwide Rating summary: Low risk How we work with ESG A competitive advantage #1 of 450 – Utilities #1 of 48 – Renewable power producers • ESG is an integrat
Slide 16: Financials
03 Financials Scatec
Slide 17: Proportionate financials
Proportionate financials Q2’22 vs Q2’21 NOK million Power Production Revenues Q2’22 Q1’22 Q2’21 2021 • Revenue of NOK 1,015 million (875) Power Production 1,015 933 875 3,890 Services 79 66 68 260 • Increase mainly driven by Development & Construction 25 5 51 137 Philippines and currency effects Cor
Slide 18: Short-term impact by seasonality - long-term asset values increasing
Power Production – Philippines Short-term impact by seasonality - long-term asset values increasing Quarterly power production – GWh (100%) 5 year avg production 2022 production • Q2’22 production 20% above 5-year average as expected 2021 production • Production in 2H’22 expected to exceed contractu
Slide 19: A solid financial position
A solid financial position Consolidated financial position (NOK million) As of 31.12.2021 As of 30.06.2022 • Group free cash of NOK 1,981 million 34,019 34,019 33,030 33,030 • Available undrawn credit facilities NOK 1,830 million 5,205 5,645 • Group* book equity of NOK 10,949 million 9,036 9,919 • A
Slide 20: Q2'22 movement of the Group's free cash
Q2’22 movement of the Group’s free cash NOK million 15 -82 1,830 -63 -9 -53 194 -168 -404 3,810 2,550 1,981 End Q1 22 Distributions Cash flow to Cash flow to Cash flow to Working Project Project equity Dividend End Q2 22 Available Total including from operating equity D&C equity Services equity Corp
Slide 21: Scatec is starting construction projects with NOK 15.3 billion of capex
Scatec is starting construction projects with NOK 15.3 billion of capex 1.2 GW under construction • NOK 15.3 billion capex for 1.2 GW under construction; Project capital structure – NOK billion • Funded by NOK 10.3 billion of non-recourse project finance representing 15,3 10,3 leverage of 67% • Scat
Slide 22: Outlook
04 Outlook Scatec
Slide 23: A project portfolio of 20.3 GW – a solid platform for further growth
A project portfolio of 20.3 GW – a solid platform for further growth (Since Q2’21) Project pipeline: In operations 3,355 MW (-) 3% 2% 15% Solar Wind 1,266 MW (+1,107 MW) 43% Under construction Hydro 14.8 GW P2X Release 37% Project backlog* 933 MW (-1,148 MW) 9% Project pipeline* 14,786 MW (+2,498 MW
Slide 24: 1.2 GW under construction
1.2 GW under construction South Africa: RMIPPPP starting construction • 540MW solar and 225/1,140MWh battery power plant • 20-year PPA with Eskom providing 150 MW of dispatchable capacity Brazil: Mendubim starting construction • 531 MW solar plant in partnership with Equinor and Hydro Rein • 20-year
Slide 25: Building strategic position within green ammonia and green hydrogen
Power-to-X Building strategic position within green ammonia and green hydrogen Egypt: 100 MW green hydrogen moved to backlog • Partnership with Fertiglobe, Orascom and Sovereign Fund of Egypt • 12,000 MT p.a. from 100 MW electrolyser / 260 MW solar & wind • Term-sheet signed for 20-year offtake agre
Slide 26: Guidance
Guidance Power Production1) Q2’22 Q3’22 FY2022 Production - GWh 916 1,060-1,160 3,900 – 4,100 EBITDA - NOK million 2,500 – 2,700 • 25% above average production in the Philippines in Q3’22 • FY2022 EBITDA increased by NOK 150 million reflecting currency exchange rate development Development & Constru
Slide 27: A renewable solution provider well positioned for further growth
A renewable solution provider well positioned for further growth Building a global leader Focus on high growth Continue to apply our across renewable energy markets where our track business model to a technologies record can be leveraged changing market 27
Slide 28: Scatec improving our future
Scate improving our future
Slide 29: Power Production financials – proportionate
Power Production financials – proportionate Q2’22 Q1’22 Q2’21 2021 Power production (GWh) Solar & Wind 523 527 456 2,002 Hydro the Philippines 135 100 111 729 Hydro Laos and Uganda 259 241 293 1,092 Total 916 868 860 3,823 Revenues (NOK million) Solar & Wind 476 479 464 1,971 Hydro the Philippines 3
Slide 30: Our asset portfolio
Our asset portfolio Capacity Share in % Plants in operation Capacity Economic Under construction Capacity Economic Project pipeline MW MW interest MW interest Theun Hinboun, Laos 525 20% Kenhardt, South Africa 540 51% Solar 6,298 43% Magat, Philippines 388 50% Mendubim, Brazil 531 33% Wind 5,540 37%