Scatec Asa · OSL:SCATC
Scatec Asa — Scatec Solar — Merger or Acquisition (October 2020)
29 slides from Scatec Asa's merger presentation, Oct 16, 2020
Slide 1: Acquisition of SN Power
Acquisition of SN Power Building a global leader in renewable energy 16 October 2020
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: Today's presenters
Today’s presenters Raymond Carlsen Terje Pilskog Mikkel Tørud EVP Project Development & Chief Financial Officer Chief Executive Officer Project Finance 2
Slide 4: Scatec Solar acquires SN Power - a leading hydropower developer and IPP
Scatec Solar acquires SN Power - a leading hydropower developer and IPP • Scatec Solar has signed an agreement to acquire 100% of the shares in SN Power from Norfund for a total consideration of USD 1,166 million (NOK 10,948 million) The acquisition of • Includes SN Power’s hydropower assets in the
Slide 5: Strategic rationale
Strategic rationale 1 Building a global leader in renewable energy 2 Adding significant cash flow from operating plants 3 Solid hydro assets in attractive power markets 4 Accelerating growth with new pipeline & market access 5 Cultural fit and strong focus on ESG 4
Slide 6: The energy transition is accelerating and Scatec Solar broadens its growth strategy
1 The energy transition is accelerating and Scatec Solar broadens its growth strategy Massive demand growth in renewables Scatec Solar’s broadened growth strategy: • Build an IPP across solar, hydro, wind and storage • New, high growth markets and broader offering More complex power markets • Mainta
Slide 7: Building a global leader in renewable energy
1 Building a global leader in renewable energy Where we come from Where we are now Where we are going Regional solar Global top-tier A global multi-technology developer/IPP developer/IPP renewables developer/IPP Solar Solar Solar Hydro Hydro Wind Wind Storage Storage 6
Slide 8: Strengthening Scatec Solar's position as a leading renewable developer
1 Strengthening Scatec Solar’s position as a leading renewable developer + Scatec Solar + SN Power - in brief 450 employees globally SSO SNP 3.3 GW1 9.5 GW1 2.5 TWh2 HQ In operation & under Backlog & pipeline 2019 net power construction production 8,108 2,720 1,336 MNOK2 MNOK2 MNOK 2019 proportionat
Slide 9: Scatec Solar will increase net power production 4.4x to 4.1 TWh by 2021
1 Scatec Solar will increase net power production 4.4x to 4.1 TWh by 2021 Gross capacity in operation or under construction3 (GW) Net power production (TWh)1 3.3 SNP SSO 4.1 1.4 4.4x 3.2 1.8 2.5 2.3 1.6 3.1 3.1 1.5 1.9 1.9 2.0 2.3 1.4 1.1 1.2 1.6 0.7 0.9 0.4 2018 2019 2020e 3.3 GW2 Solaria Solarpack
Slide 10: Adding scale and significant cash flow from operating plants
2 Adding scale and significant cash flow from operating plants Combined financials Value creation EBITDA per segment • The equity returns from SN Financial year 2019 – Proportionate, MNOK Services; 2% Power's asset base is Development & expected to be significantly Hydro Power Construction; higher t
Slide 11: The hydropower assets are generating stable long-term cash flows
2 The hydropower assets are generating stable long-term cash flows SN Power proportionate financials - MNOK Comments Revenues • Low operational gearing and high cash conversion 1,773 1,766 EBITDA • A mix of contract types are stabilizing cash generation Cash flow to equity • Well maintained assets w
Slide 12: Securing solid hydro assets in attractive power markets
3 Securing solid hydro assets in attractive power markets Philippines About 2 GW new PV & Wind expected by 2025 Established wholesale market with large volumes HQ Market dominated by local/regional players Laos Targeting 30% non-hydro renewables by 2025 Single-buyer structure with Electric
Slide 13: The Philippines – a sophisticated power market in a robust economy
3 The Philippines – a sophisticated power market in a robust economy SN Power assets Benguet & Magat Key facts Stakeholders and agreements Power sales • 30 % spot sales in the wholesale market 642 810 • 40 % sales of ancillary services MW GWh • 30% bilateral contracts with 2-3 years tenor Median net
Slide 14: Laos – delivering hydropower to Thailand
3 Laos – delivering hydropower to Thailand SN Power assets Theun Hinboun Power Company Key facts Stakeholders and agreements Power sales • Off-taker EGAT (Thailand) and EDL (Laos) 525 600 • 20 year take-or-pay fixed price contract for MW GWh ca 90% of generation with EGAT Median net Financing Gross
Slide 15: Uganda - largest independent hydro investment in Africa
3 Uganda - largest independent hydro investment in Africa SN Power assets Bujagali Key facts Stakeholders and agreements Power sales • Off taker: Ugandan Electricity Transmission Co 255 420 • Tariff entirely based on capacity payments MW GWh Financing • Project finance: 75% leverage provided by a Me
Slide 16: Increasing pipeline to further accelerate growth
4 Increasing pipeline to further accelerate growth Selected mature pipeline projects Accelerating growth Country Philippines Philippines Rwanda, DRC, Madagascar • Leveraging both companies track record in Burundi Capacity1 project development, financing and 140 MW 40 MW 147 MW 120 MW construction Te
Slide 17: Establishing a new partnership for hydro-power in Sub-Saharan Africa
4 Establishing a new partnership for hydro-power in Sub-Saharan Africa A new joint venture for Sub-Saharan Africa; • Joint venture for Hydro power production and project development in the region 51% 49% • Includes the Bujagali hydro asset and the hydro project pipeline from SN Power Hydro power pro
Slide 18: Complementary technologies and strong competence synergies
4 Complementary technologies and strong competence synergies Complementary technologies Competence synergies • Optimal use of intermittent PV and regulated hydro generation to create base load & hybrid solutions • Hydro reservoirs potential for floating PV plants • SN Power’s pipeline in addition in
Slide 19: Strong ESG focus: Solid track record and shared mindset
5 Strong ESG focus: Solid track record and shared mindset Scatec Solar and SN Power with same ESG approach Strict ESG standards: Operating in line with the IFC Performance Standards and signatories to the UN Global Compact Trusted partnerships: Partners with strong ethical standards including IFC, N
Slide 20: Financing and capital structure
Financing and capital structure Financing of the transaction Financing - MUSD: 200 MUSD subordinated 7-year vendor finance provided by Norfund Vendor finance 200 150 MUSD 4- year term loan provided by Nordea, DNB and Swedbank Term loan 150 Acquisition finance 700 700 MUSD acquisition finance is avai
Slide 21: Building a global leader in renewable energy
Building a global leader in renewable energy Where we come from Where we are now Where we are going Regional solar Global top-tier A global multi-technology developer/IPP developer/IPP renewables developer/IPP Solar Solar Solar Hydro Hydro Wind Wind Storage Storage 20
Slide 22: Scatec Solar
Scatec Solar Improving our future™
Slide 23: Appendix
Appendix Scatec Solar ‘Improving our future a
Slide 24: 2019 Pro forma proportionate P&L
2019 Pro forma proportionate P&L FY 2019 Scatec Solar Power Scatec Solar Scatec Solar Scatec Solar NOK MILLION Production SN Power Services D&C Corporate Total Revenues and other income 1,163 1,766 168 4,980 31 8,108 Cost of sales 0 -272 0 -4,274 0 -4,546 Gross profit 1,163 1,494 168 706 31 3,562 Pe
Slide 25: 2019 Proportionate P&L SN Power
2019 Proportionate P&L SN Power FY 2019 SN Power NOK MILLION Philippines Laos Uganda Corporate Total Power Production - GWh 671 454 414 - 1,539 Revenues and other income 1,191 217 315 42 1,766 Cost of sales -258 -14 - - -272 Gross profit 933 203 315 42 1,493 Personnel -28 -7 -2 -73 -110 Other operat
Slide 26: Pro forma capital structure
Pro forma capital structure Pro- forma capital structure – Per 30 June 2020 Scatec Solar NOK million Consolidated SSO prop. share Group level Cash 4,069 3,351 1,933 Interest bearing liabilities1 (13,937) (9,606) (747) Net debt (9,868) (6,255) 1,186 SN Power NOK million Consolidated SN Power prop. sh
Slide 27: Equity partner Philippines
Equity partner Philippines Business overview Presence in Ownership History and recent renewables developments in hydro ▪ With investments in power generation, electricity ▪ Out of a total net capacity of 3,455 MW as ▪ Publicly listed, but ~80% owned by Aboitiz ▪ 1978-90: Invested in 14 mini-hydroele
Slide 28: Equity partners Laos
Equity partners Laos Business overview Presence in Ownership History and recent renewables developments in hydro ▪ Électricité du Laos – Gen is the listed production ▪ 10 fully-owned hydropower plants with ▪ Publicly listed, but 75% owned by the state ▪ 2010: Founded and subsequently listed in arm o
Slide 29: Equity partners Uganda
Equity partners Uganda Business overview Presence in Ownership History and recent renewables developments in hydro ▪ International development agency that invests in ▪ In addition to the investment in Bujagali, ▪ Owned by the Aga Khan Development ▪ 2019: Signed agreement with SN Power economically s