Grenergy Renovables S.A · BME:GRE
Grenergy Renovables — Investor Presentation (November 2022)
37 slides from Grenergy Renovables's investor presentation, November 2022
Slide 1: Investor Presentation Nov 2022
The sky is the limit INVESTOR PRESENTATION Nov 2022 Headquarters in Madrid - Spain
Slide 2: Disclaimer
DISCLAIMER By attending this presentation and/or by accepting this presentation you will be cial condition or results of operations by the Company and should not be relied upon taken to have represented, warranted and undertaken that you have read and when making an investment decision. Certain finan
Slide 3: Equity Story & Key Figures, Platform & Pipeline, Operational Information, Governance
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 03
Slide 4: A Story of Growth with a Proven Track Record
1-A STORY OF GROWTH WITH A PROVEN TRACK RECORD Evolving into a Multitech & Multicountry IPP 2007 2012 2015 2019 2022 20251 INCEPTION END FIT2 IPO LISTING TODAY TOMORROW OPENING CHILE MAB GROWTH MAIN STOCK First green bond Technology Geographical Europe + new markets Presence LATAM USA 300 MW Pipelin
Slide 5: Grenergy in a Nutshell
1-GRENERGY IN A NUTSHELL INTEGRATED BUSINESS MODEL, present in the entire value chain. CAPEX OPEX From a purely Solar PV player to a MULTI-TECHNOLOGY IPP (Solar PV, Wind, Storage) MULTI-REGIONAL player, with strong presence in EUROPE (Spain, Italy, UK, Poland), USA and LATAM (Chile, Colombia, Mexico
Slide 6: Integrated Business Model
1-INTEGRATED BUSINESS MODEL Building a corporate structure to develop and build >1 GW PV annually from 2023 Integrated IPP Player Grenergy has the expertise to build and operate large-scale renewable energy plants CAPEX OPEX Operation & Maintenance Development Construction Services Asset Management
Slide 7: Key Figures 9M22
1-KEY FIGURES 9M22 Pipeline Financials 171.7M€ 318.4M€ 11.4 GW 1,379 MW Revenues 27.2M€ Net Debt Solar and Wind In Operation and EBITDA Pipeline Under Construction 126.5M€ 43.1M€ 6.3x B2S Revenue Energy Sales Leverage1 759 MW 12.8M€ Financials & Backlog Net Income 4.7x Pipeline c. 7.7 GWh Corporate
Slide 8: Platform & Pipeline
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 08
Slide 9: Unprecedented Momentum in the Sector
2-UNPRECEDENTED MOMENTUM IN THE SECTOR THE INDUSTRY GRENERGY’S STRATEGY • REPowerEU solar PV target to 740 GW by 2030 Germany: Largest potential market in • RES deployments will represent a growth from 36% in Europe 2020 to 69% 2030 EUROPE • EU Government accelerates permitting process helping SOLAR
Slide 10: Company Platforms Overview
2-COMPANY PLATFORMS OVERVIEW Three platforms with outstanding growth potential SOLAR & WIND LATAM; 5.2 USA 45% USA; 1.9 17% Solar 1.9 GW Storage 0.4 GWh Europe; 4.3 38% 11.4 GW STORAGE LATAM Europe In Operation & U.C. In Operation & U.C. LATAM; 5.3 1.0 GW 0.35 GW 70% USA; 0.4 Solar 4.5 GW Solar 4.1
Slide 11: Strategy and Operational Targets - B2O
2-STRATEGY AND OPERATIONAL TARGETS- B20 Grenergy targets up to 5GW in Solar and 1GWh in Storage for 2025 Company Drivers next 3 years 2025 Strong focus in USA and key European markets Growth like Italy and Germany 5 5.0 GW Reducing sale risk, covering at least 65-70% of PPAs 4.5 energy sales with PP
Slide 12: Strategy and Operational Targets - B2O
2-STRATEGY AND OPERATIONAL TARGETS- B20 The next year deployments will be driven by Spain and LATAM MW 9M22 UNDER CONSTRUCTION BACKLOG FY23 60 43 126 300 9M22 172 96 54 240 2.0 150 GW 227 1.4 12 GW 600 MW In Operation Distribution In Operation In Operation Zawady PMGDs Belinchón Teno Tamango Mataran
Slide 13: Strategy and Operational Targets 2023 to 2025
2-STRATEGY AND OPERATIONAL TARGETS - 2023 to 2025 Solar projects will drive Grenergy´s growth in the three regions FY23 FY25 0.5 GW 1.1 GW 1.4 GW 5.0 GW 2.0 GW In Operation In Operation & U.C. & U.C. EUROPE LATAM NORTH AMERICA Spain, Biggest Utility scale Project under development Clara Chile, Utili
Slide 14: North America Platform
2-NORTH AMERICA PLATFORM: US Gov approved The Inflation Reduction Act: Allocation of USD 369 billion in clean energy Regional power grids Renewables as Key Driver in the US > After December 31, 2024, the traditional investment tax credit will begin to step-down. > “Base credit" 6% of the investment
Slide 15: An Unprecedented Opportunity
2-AN UNPRECEDENTED OPPORTUNITY Europe increases PV targets for 2030 to 740 GW Europe's approach to renewables • REPowerEU, intends to mobilize up to 300Bn Eur • EU's unprecedented solar strategy sets a target of doubling solar PV capacity by 2025 and installing 740 GW by 2030 • EU increases solar am
Slide 16: Pipeline Update
2-PIPELINE UPDATE Project portfolio Highly visible 11.4GW pipeline, 600 MW in operation 13.0GW Estimated COD2 Project Classification1 9M22 1H22 2026/27 20-40% Identified Opportunities 6,190MW Success Rate 3,927MW -2,263MW 50% Early Stage 2,635MW Success Rate 3,238MW 603MW 2025 70% Advanced Development
Slide 17: Pipeline Update
2-PIPELINE UPDATE Total pipeline of 11.4 GW (increased by 5.1 GW YoY) >1.4 GW of projects either in operation, construction or backlog SOLAR PV WIND Under Advanced Early Ident. Total Under Advanced Early Ident. Total MW Const Backlog Dev Stage Opp. Pipeline MW Const Backlog Dev Stage Opp. Pipeline I
Slide 18: Strategy and Operational Targets - Storage
2-STRATEGY AND OPERATIONAL TARGETS - STORAGE CAPEX Early stage Advanced Backlog Total Total PIPELINE 7.7 GWh MW's development MW's MW´s MW's MWh's Chile 809 180 79 1,068 5,342 Total LatAM 809 180 79 1,068 5,342 Spain 317 50 - 367 1,449 Italy 74 - - 74 165 UK 144 - - 144 368 Chile: Main market in Lat
Slide 19: Projects In Operation, Under Construction & Backlog
2-PIPELINE UPDATE Projects In Operation, Under Construction & Backlog 1.4 GW in operation and under construction. 759 MW in final development phase Country Project Type MW B20 Resource COD Offtaker (Hours) Peru Duna Huambos Wind 36 Yes 4,900 4Q20 Auction 18 Yrs 100% Chile Quillagua Solar 103 Yes 2,9
Slide 20: Projects in Advanced Development
2-PIPELINE UPDATE Projects in Advanced Development >2.6 GW to feed our 2024-25 IPP targets Resource Country Project Type MW COD Offtaker Negotiation (Hours) Spain Clara Campoamor Solar 575 2,000 2Q24 Est. Ppa PaP 75% 15 Yrs. Advanced UK Pack 3 PYs Dx middle size Solar 95 1,900 2Q24 TBD Initial Italy
Slide 21: Operational Information
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 20
Slide 22: Integrated Business Model - B2O (Build-to-own)
3-INTEGRATED BUSINESS MODEL - B20 (Build-to-own) FOCUS ON IPP Strategy: a success story Grenergy Strategy In Operation and Under Construction Target (in GW) • Revenues 43.1M€ EBITDA 28.4M€ EBITDA Margin 67%. Pipeline of 11.4GW ✔ In 9M22 Grenergy reached >500MWs in operation, connecting 5.0 projects
Slide 23: Integrated Business Model - B2S (Build-to-sell)
3-INTEGRATED BUSINESS MODEL - B2S (Build-to-sell) FOCUS M&A: a success story Grenergy Strategy Annual Capacity Sold (in MW) • Revenues 29.0M€ - EBITDA 4.7M€ - EBITDA Margin 16%. 103 ✔ 2017-2020; Important track record in B2S, generating cash to 70 reduce capital needs for our investment plan. ✔ In 9
Slide 24: Solar PV CAPEX
3-SOLAR PV CAPEX Solar PV CAPEX evolution and 2023 estimates Tier 1 Module capacities (GW) 2021 2022 2023F EUR Price W Cost per MW Price W Cost per MW Price W Cost per MW 2020 2021 2022 Modules 0.25 250,000 0.25 250,000 0.235 235,000 Longi 24 45 65 Jinko 19 30 50 Trackers 0.1 100,000 0.089 89,000 0.
Slide 25: Renewables Revolution - Storage Markets
3-RENEWABLES REVOLUTION - STORAGE MARKETS Grenergy main markets early position and core business PV + Storage, Spain PV + WIND + Storage, Chile PV + Storage, UK New Capacity market regulation Defining new Energy storage needs Mature Energy storage markets PROS: PROS: PROS: • At least 5 GW Storage Ob
Slide 26: Capital Markets & Financing
3-CAPITAL MARKETS & FINANCING Grenergy has succesful track record securing capital needs in Capital Markets Sound financial structure Equity: Share Capital Increase 2022 Completed on 28th june 22 Deal size: 90M€ • Project debt (85/15 structure) • The book had c.50 lines with strong international dem
Slide 27: Build to Own: D&C Margin Covering Equity
3-STRATEGY, ESTIMATES & OPERATIONAL TARGETS -B20 (Bulid-to-own) Built to Own: D&C margin covering a large part of the equity Example of a project finance structure Power plants financed with non-recourse debt & additional tranche of mezzanine debt D&C gross margin covers a large part of Grenergy’s equ
Slide 28: Strong Governance Structure with Focus on ESG
1 EQUITY STORY & KEY FIGURES 2 PLATFORM & PIPELINE 3 OPERATIONAL INFORMATION 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 28
Slide 29: ESG Roadmap - Phase II
4-ESG ROADMAP - PHASE II ESG Action Plan 2022 in progress CONTROL SYSTEM DEFINED FOR THE IMPLEMENTATION OF CORPORATE POLICIES TARGETS SCHEDULED FOR THE THIRD QUARTER ACHIEVED Embedded in Grenergy´s Internal Regulatory Framework Implemented by the Executive Compliance Committee (ECC) Control system m
Slide 30: Grenergy Strengthens Position as ESG Leader
4-GRENERGY STRENGTHENS POSITION AS ESG LEADER MSCI and Sustainalytics ESG Ratings upgraded and ESG coverage expanded 2022 2022 10.2 Low Risk MSCI ESG Ratings AAA 2021 13.6 2021 Low Risk Negl. Low Med. High Severe MSCI A ccc B BB BBB A AA AAA 0-10 10-20 20-30 30-40 40+ ESG Ratings Upgraded to Negl. L
Slide 31: Strong Governance with Focus on ESG
4-STRONG GOVERNANCE WITH FOCUS ON ESG Translating into solid value creation for its shareholders General Information Shareholders (as of Jun, 2022)1 Share Information Free Float 43% ● Currency: EUR ● Market: Spanish Stock Exchange ● ISIN: ES0105079000 Members of the Board ● Ticker code: GRE 0.6% ● M
Slide 32: Appendices
APPENDICES
Slide 33: Platform with Relevant Growth Potential
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Project Classification1 20-40% Identified Opportunity Identified opportunities (20-40%): Project with technical and financial feasibility, given that 1) there is the possibility of land, 2) access to the electricity Success Rate 3,927MWMW grid is
Slide 34: 9M22 Results - Profit and Losses
9M22 RESULTS Profit and Losses Solar and Wind projects producing EBITDA in the energy division Profit and losses (€k) 9M 2022 9M 2021 Delta Revenue 171,685 150,439 14% Income from customer sales 74,178 49,542 50% Income from capitalize works 97,507 100,897 (3%) Procurement (122,756) (119,304) 3% Proc
Slide 35: 9M22 Results - Balance Sheet
9M22 RESULTS Balance Sheet Balance Sheet (€k) 30/09/22 31/12/21 Var. Non-current assets 609,633 428,450 181,183 Intangible assets 69 81 (12) Fixed assets 517,637 388,783 128,854 Assets with right of use 12,779 13,072 (293) Deferred tax assets 46,384 25,441 20,943 Other fix assets 32,764 1,073 31,691
Slide 36: 9M22 Results - Net Debt
9M22 RESULTS Net Debt Total leverage1 6.3x Total corporate leverage2 4.7x Net Debt (€k) 9M22 FY21 9M22-FY21 Long-term financial debt 92,756 39,073 53,683 Short-term financial debt 68,357 35,181 33,176 Long-term Lease debt (IFRS 16) 10,704 9,913 791 Short-term Lease debt (IFRS 16) 1,464 1,013 451 Oth
Slide 37: Developers & IPP of Solar PV - Wind - Storage projects
Developers & IPP of SOLAR PV - WIND - STORAGE projects Europe - USA - LATAM Duna Huambos windfarm - Peru
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