INVESTOR PRESENTATION - Grenergy
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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 financial and statistical information in this agree to comply with the contents of this disclaimer. document has been subject to rounding off adjustments. Accordingly, the sum of The information contained in this presentation (“Presentation”) has been prepared by certain data may not conform to the expressed total. Grenergy Renovables S.A. (the “Company”) and has not been independently verified and Certain statements in this Presentation may be forward-looking. By their nature, will not be updated. No representation, warranty or undertaking, express or implied, is forward-looking statements involve a number of risks, uncertainties and assumptions made as to, and no reliance should be placed on, the fairness, accuracy, completeness or which could cause actual results or events to differ materially from those expressed or correctness of the information or opinions contained herein and nothing in this Presenta- implied by the forward-looking statements. These include, among other factors, chan- tion is, or shall be relied upon as, a promise or representation. Neither the the Company ging economic, business or other market conditions, changing political conditions and nor any of its employees, officers, directors, advisers, representatives, agents or affiliates the prospects for growth anticipated by the Company’s management. These and other shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, factors could adversely affect the outcome and financial effects of the plans and events under contract, tort or otherwise) for any loss howsoever arising from any use of this described herein. Any forward-looking statements contained in this Presentation and Presentation or its contents or otherwise arising in connection with this Presentation. based upon past trends or activities should not be taken as a representation that such This Presentation is for information purposes only and is incomplete without reference trends or activities will continue in the future. The Company does not undertake any to, and should be viewed solely in conjunction with, the Company’s publicly available obligation to update or revise any forward-looking statements, whether as a result of information and, if applicable, the oral briefing provided by the Company. The informa- new information, future events or otherwise. tion and opinions in this presentation are provided as at the date hereof and subject to The market and industry data and forecasts that may be included in this Presentation change without notice. It is not the intention to provide, and you may not rely on these were obtained from internal surveys, estimates, experts and studies, where appropriate materials as providing, a complete or comprehensive analysis of the Company’s finan- as well as external market research, publicly available information and industry publica- cial or trading position or prospects. tions. The Company, it affiliates, directors, officers, advisors and employees have not This Presentation does not constitute investment, legal, accounting, regulatory, taxation or independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. 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No responsibility or liability is persons into whose possession this presentation comes should inform themselves about accepted by any person for any of the information or for any action taken by you or any and observe any such restrictions. of your officers, employees, agents or associates on the basis of such information. NEITHER THIS PRESENTATION NOR ANY OF THE INFORMATION CONTAINED HEREIN This Presentation contains financial information regarding the businesses and assets of CONSTITUTES AN OFFER OF PURCHASE, SALE OR EXCHANGE, NOR A REQUEST FOR the Company. Such financial information may not have been audited, reviewed or AN OFFER OF PURCHASE, SALE OR EXCHANGE OF SECURITIES, OR ANY ADVICE OR verified by any independent accounting firm. The inclusion of such financial information RECOMMENDATION WITH RESPECT TO SUCH SECURITIES. in this Presentation or any related presentation should not be regarded as a representa- The securities of the Company may not be offered or sold in the United States of Ameri- tion or warranty by the Company, its affiliates, advisors or representatives or any other ca except pursuant to an effective registration statement under the Securities Act of person as to the accuracy or completeness of such information’s portrayal of the finan- 1933 or pursuant to a valid exemption from registration. 01
GRENERGY IN A NUTSHELL INTEGRATED BUSINESS MODEL, present in the entire value chain of our projects From a purely Solar PV player to a MULTI-ENERGY company (Solar PV, Wind, Storage) MULTI-REGIONAL player, with strong presence in EUROPE (Spain, Italy, UK) and LATAM (Chile, Colombia, Peru) Highly contracted 6GW pipeline with dual strategic approach: B2O (build to own) and B2S (build to sell) Company focused on ESG matters: ranked 5th out of 575 in the Utilities sector by Sustainalytics FINANCIAL GROWTH & consistent TARGET OUTPERFORMANCE translated into outstanding market cap evolution and volume per day (c.3M€) 02
INTEGRATED BUSINESS MODEL Creating the right structure to develop and build >1 GW annually PV from 2023 Integrated Player Grenergy has the expertise to build and operate large-scale renewable energy plants Operation & Maintenance Development Construction Services Asset Management Supported by our global teams Energy Generation Structured M&A PPA Origination Finance Asset Rotations 03
A STORY OF GROWTH WITH A PROVEN TRACK RECORD Evolving into a Multitech & Multicountry IPP 2007 2012 2015 2021 20231 INCEPTION END FIT2 IPO TODAY TOMORROW OPENING CHILE MAB GROWTH Technology Geographical + new markets Presence 300 MW Pipeline 6.0 GW Pipeline Pipeline 2.5 GW IPP Target 50 MW built >500 MW built 1: Company target 04 2: Feed In Tariff SPAIN
KEY FIGURES Key 6.1 GW 417 MW 448MW 2.9GW +1.6 GW operational Pipeline Under Backlog Advanced A.D Pipeline increase figures construction Development Last 12 months 198MW 660MW 1,5GW 2,5GW B2O 2020 +500MW 2021 +800MW 2022 +1,000MW 2023 Operational targets 100-200 MW/Yr B2S >45 plants Connected and transferred >470MW built 2021-2023 period 2020 €113M €24M €15M 3.1x Financial Revenues EBITDA Net Income 1Q21 Leverage Figures 05
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION 2 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 3 STRATEGY AND OPERATIONAL TARGETS 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 06
1-RENEWABLES REVOLUTION Wind & Solar to represent 30% of installed global capacity by 2040 Electrification and Green Hidrogen geneneration to increase global demand of electricity Global installed power capacity is projected to rise from c. 6.7TW in 2016 to 12.0TW in 2040, with c. 30% of installed capacity being renewable (c. 17% Solar PV and c. 14% Wind) Global Installed Capacity (GW)1 LCOE3 Evolution – Solar PV and Wind ($/MWh) d 3.6x - Other 1.4x 400 Solar PV 7.6x - Win 11,961 350 9,725 300 8,647 250 6,677 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2016E 2025E 2030E 2040E Solar & Wind Other technologies Wind Solar PV Global Installed Capacity – By Technology (%) LCOE3 – By Technology ($/MWh) 4% 4% 19% Gas Combined Cycled 44 73 17% Coal 65 159 7% 46% 62% 2016(2) 2% 2040E Nuclear 129 198 14% 6% Onshore Wind 26 54 4% 15% Solar PV (Utility Scale) 29 38 Fossil Fuels Hydro Wind Solar PV Nuclear Other Renewables Note: (1) Global Average Annual Capacity Additions under the New Policies Scenario, 2017-2040 (IEA); (2) Latest actual figure for WEO is 2015; (3) Levelized Cost of Energy 07 Slide Source: OECD/IEA 2017 World Energy Outlook, IEA Publishing, Perspectivas 2018-2022 Iberdrola, Lazard’s Levelized Cost of Energy Analysis 2020
1-RENEWABLES REVOLUTION IN EUROPE Presence in Europe Grenergy is present in some of the largest renewable markets in Europe... Solar1 & onshore wind installed capacity by country (GW) 33.0 Solar 26.6 23.2 Wind 25.2 10.2 12.9 7.8 16.4 10.3 UK New Market: UK Early stage …with attractive growth potential… 388MW Solar & onshore wind installed capacity NECP targets by country (GW) Grenergy has presence Potential new markets +56GW +42GW +79GW +56GW +55GW +11GW 146 Italy 89 102 90 80 69 Early stage 33 27 23 25 17 6 260MW 2019 2030 2019 2030 2019 20302 2019 2030 2019 2030 2019 2030 …and some of the vastest solar and wind resources European Radiation Map European Wind Resource Map Spain Resources at 50m above ground level, open plain (Watt Under Adv. per sq. meter): cons. Dev. >500 Wm-2 300– Wm-2 200MW 1.247MW 200–300 Wm-2 100–200 Wm-2
1-RENEWABLES REVOLUTION IN LatAm Presence in LatAm The need of renewable energy sources in Mexico LatAm will keep growing Operating Energy Demand Renewable Capacity 35MW (TWh) Evolution (GW) Chile Renewable energy in Chile is 79.9 93.2 the fastest growing sector of Colombia 23.9 the country’s. The growth is Under 11.5 attributable to favourable cons. Backlog policy, grid interconnection, 12MW 58MW 2019A 2029E 2019A 2029E and wind and solar resources Adv. Early Dev. stage 58MW 696MW Colombia The Colombian renewable 95.1 market is expected to 70.4 4.0 experience rapid growth, boosted by investments both Peru 0.2 from the private and public Under Adv. 2020A 2030E 2020A 2030E cons. Dev. sector 36MW 342MW Peru Despite short term 49.7 62.9 headwinds, 17.6 Chile the renewables sector is Under 15.6 expected to outperform, Operating cons. Backlog particularly in solar and wind 103MW 85MW 295MW 2019A 2029E 2019A 2029E due to the outstanding Adv. Early resources. Dev. stage 1,192MW 1,203MW Mexico Mexico is the country with the 347.7 most installed renewable 283.9 49.0 capacity in LatAm and has a Argentina 25.2 high growth potential, but is Operating currently in (stand by) due to 2019A 2029E 2019A 2029E 24MW the current Government 09 SOURCE: BNEF, BMI
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION 2 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 3 STRATEGY AND OPERATIONAL TARGETS 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 10
2-PIPELINE UPDATE Project portfolio Highly visible 6.1 GW pipeline Estimated COD2 Project Classification1 1Q21 6.0GW FY20 2025 < 50% Early Stage 2,547MW Success Rate 2,344MW -203MW 2024 > 50% Advanced Development 2,839MW Success Rate 2,869MW +30MW 2023 > 80% Backlog 353MW Success Rate 448MW +95MW 2022 Ready to Build Under Construction > 100% 417MW +120MW 297MW Success Rate 198MW 2021 In operation 198MW 1 This classification of the pipeline phases has been made by the company itself on the basis of its previous experience in projects carried out, using its own internal criteria and procedures. 11 2 Commercial Operation Date
2-PIPELINE UPDATE Total pipeline increased by 1.6 GW YoY >1 GW of projects either in operation, construction or backlog SOLAR PV WIND Under Advanced Early Total Under Advanced Early Total MW Const Backlog Dev Stage pipeline MW Const Backlog Dev Stage pipeline In In Probability Operation Probability Operation 100% 80% >50% 50%
2-PIPELINE UPDATE Projects Under Construction & Backlog 865MW to be commissioned in the next months with a strong contracted profile Country Project Type MW B20 Resource COD (Hours) Chile Quillagua Solar 103 Yes 2,950 4Q20 Mexico San Miguel de Allende Solar 35 Yes 2,300 1Q21 Peru Duna Wind 18 Yes 4,900 4Q20 Peru Huambos Wind 18 Yes 4,900 4Q20 Argentina Kosten Wind 24 Yes 5,033 1Q21 Total in Operation 198 España Escuderos Solar 200 Yes 2,128 3Q21 Chile PMGD (10 projects) Solar 103 Yes 1,924-2,442 2Q21-4Q21 Chile PMGD (4 projects) Solar 42 No 1,924-2,442 2Q21-4Q21 Colombia Distribution Solar 72 Yes 1,957 4Q21 Total UC 417 (Vs. 297 previous report) España Belinchon Solar 150 Yes 2,150 3Q22 España Jose Cabrera Solar 50 No 2,156 4Q22 Chile Quillagua2 Solar 111 Yes 2,950 4Q21 Chile PMGD (6 projects) Solar 61 Yes 2,000-2,734 4Q21-2Q22 Chile PMGD (6 projects) Solar 64 No 2,000-2,734 4Q21-2Q22 Colombia Distribution (1 project) Solar 12 Yes 1,990 4Q21 Total Backlog 448 (Vs. 353 previous report) 13 SOURCE: Company ı COD: Commercial Operation Date 19
2-PIPELINE UPDATE Projects in Advanced Development On track to deliver solid growth with 2.9 GW of projects in advanced development with a geographical and technological diversification Resource Country Project Type MW COD Offtaker Negotiation (Hours) España Ayora Solar 172 2,212 4Q22 PPA 70-80% Advanced España Tabernas Solar 300 2,358 4Q22 PPA 70-80% Advanced España Tres Cantos Solar 575 2,000 2Q23 PPA 70-80% Initial Colombia Distribution (5 projects) Solar 58 1,915-1,957 4Q23 PPA 70-80% Advanced Colombia Compostela Solar 120 2,079 1Q23 PPA 70-80% Initial Chile PMGD (12 Projects) Solar 120 2,200-2,700 4Q22-2Q23 PMGD Regime Completed Chile Victor Jara Solar 240 2,800 2Q23 PPA 60% Initial Chile Algarrobal Solar 240 2,800 3Q23 PPA 60% Initial Chile Teno Solar 240 2,186 1Q23 PPA 60% Initial Chile Gabriela Solar 264 2,800 4Q22 PPA 60% Initial Chile Lawal Solar 100 2,200 1Q24 PPA 60% Initial Chile Amanita Solar 35 2,000 2Q23 PPA 60% Initial Chile Tamango Solar 45 2,000 2Q23 PPA 60% Initial Chile PMGD (2 projects) Wind 18 4,000 2Q23 PMGD Regime Completed Peru Matarani Solar 80 2,750 4Q22 PPA 100% Initial Peru Lupi Solar 150 2,900 4Q22 PPA 100% In progress Peru Emma_Bayovar Wind 72 4,000 4Q22 PPA 100% In progress Peru Nairas Wind 40 5,100 4Q22 PPA 100% In progress Total 2,869 (Vs. 2,839 previous report) 14 SOURCE: Company ı COD: Commercial Operation Date
FOCUS - SOLAR PV CAPEX Solar PV CAPEX evolution and 2022 estimates 2020 Post Covid 2021 2022 Post CNY1 Tiers 1 Module capacities (GW) EUR Price W Cost per MW Price W Cost per MW Price W Cost per MW Modules 0,193 193.000 0,20 200.000 0,180 180.000 2020 2021 2022 Trackers 0,086 86.000 0,100 100.000 0,090 90.000 Longi 24 45 Inverters 0,040 40.000 0,040 40.000 0,038 38.000 Jinko 19 30 Cable 0,035 35.000 0,04 40.000 0,035 35.000 Logistics 0,009 9.000 0,030 30.000 0,015 15.000 JA Solar 15 30 Civil works 0,027 27.000 0,027 27.000 0,027 27.000 Expected to continue growing in 2022 Others BoP 0,01 10.000 0,013 13.000 0,01 10.000 Trina Solar 15 35 Total 400.000 450.000 395.000 Canadian Solar 11,3 20 Exchage rate 1,14 1,21 1,23 Risen Energy 10 20 2020 post Covid Q Cell 6,5 8 • Covid affected positively to module prices, moving down from 0.25cts/$ to slightly below 0.20cts/$. First Solar 5,7 6,7 2021 GCL-SI 3,5 5 • Module prices move back to 0.23/0.24 $. However, exchange rate moved from 1,14$/€ to current 1,21$/€, impacting positively to module cost in euros. Rest 44 44 • Significant increase in logistics and steel commodity prices is affecting negatively to shipment cost and trackers. 154 244 2022 Post CNY 1 58% • IEA said that despite relatively high commodity and freight prices, it expects module prices to be lower at the end of 2021 than the average Chinese price in 2020, which was around 0.205 $ per watt. • Steel is expected to trade at 852 USD/MT (vs 912 USD/MT) by the end of this quarter, according to Trading Total new Solar PV Installed capacity (GW) Economics global macro models and analysts' expectations. Looking forward, they estimate it to trade at 697 USD/MT in 12 months time. IEA forecast 135 145 162 • Freight cost expected to get smoothly down to preCOVID levels. 15 1 Company estimate
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION 2 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 3 STRATEGY AND OPERATIONAL TARGETS 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 16
3-STRATEGY AND OPERATIONAL TARGETS - B20 Grenergy increases its IPP target to 2,5 GW in 2023 Grenergy plans to have a construction rate of more than 1GW from 2023 2023 Estimation MW 198 660 1,460 2,460 Chile 1,000 Chile Spain 800 +100 934 MW (37%) Spain Colombia 1.100 MW (44%) Peru +100 +100 Argentina Mexico 500 Italy +400 +500 +66 +200 198 Rest2 +24 461 MW (18%) +35 +300 +300 +36 +231 +103 YTD 20211 20221 20231 Diversifying to EMEA markets to feed our future growth 17 1 Estimate. ı 2 Rest means Argentina 24MW, Peru 36MW, Colombia 266MW, Mexico 35MW and Italy 100MW.
STRATEGY AND OPERATIONAL TARGETS - B20 2021 IPP Projects on track - 500MW 200MW - ESCUDEROS Sola 72MW - 6 distribution proj r PV ects project under constructio Under Construction n 15 years PPA signed with Ce 12 yerar PPA signed with GA lsia Backlog 200MW - Belincho LP Ongoing PPA negotiations n and Jose Cabrera RTB 4Q21 - 14 PMGD projects U nder Construction 145MW ancial negotiations ing fin COD: Commercial Operation Date Backlog 236MW - Ongo r construction 18 SOURCE: Company 2 projects unde
3-STRATEGY AND OPERATIONAL TARGETS - B20 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 70% D&C gross margin covers a large part of Grenergy’s equity contribution to each B&O project 100% 10% 20% Project Senior Mezzanine Equity D&C Grenergy Capex Debt Debt Margin Equity COD: Commercial Operation Date 19 SOURCE: Company
3-STRATEGY AND OPERATIONAL TARGETS - B20 Focus: Structured finance Up to date US$ 400 M > US$ 400 M total secured financing under negociation 2020 2020 2020 2021 2021 2021/22 CIFI KFW/BANKINTER NATIXIS US$ 17,5 M US$ 96,7 M US$ 85 M US$ 65 M US$ 50 M US$ 308 M 2019 1 pv project 4 pv projects PMGD’s 111 MW 90 MW 660 MW 35 MW 200 MW 130 MW Chile Colombia Spain Mexico Spain Chile Quillagua 2 SECURITY US$ 60,3 M 1 pv project 100 MW 2019 2018 2017 2016 2016 2015 Chile CAF/ICO KFW SECURITY CIFI SECURITY IDB US$ 36,8 M US$ 31,7 M US$ 41,2 M US$ 9,8 M US$ 19,2 M US$ 7,5 M 2 wind projects 1 wind project 7 pv projects 3 pv projects 2 pv projects 2 pv projects 36 MW 24 MW 45,4 MW 12 MW 20 MW 6 MW Peru Argentina Chile Chile Chile Chile 20
3-STRATEGY AND OPERATIONAL TARGETS - B2S Strong track record generating value through a sell-down strategy, allowing Grenergy to accelerate growth Build to Sell (B2S) 73 €M 72 +72% 44 44 +3x +0% 17 4 +4x 2015 2016 2017 2018 2019 20201 Grenergy expects to rotate 100-200 MW annually until 2023 COD: Commercial Operation Date SOURCE: Company 21 1 Exchange rate 1,12 $
KEY INVESTMENT HIGHLIGHTS Attractive equity story 1 RENEWABLES REVOLUTION 2 PLATFORM WITH OUTSTANDING GROWTH POTENTIAL 3 STRATEGY AND OPERATIONAL TARGETS 4 STRONG GOVERNANCE STRUCTURE WITH FOCUS ON ESG 22
4-STRONG GOVERNANCE WITH FOCUS ON ESG Committed management team with sound track record in the sector Executive – 1/2 Independent members – 1/3 Female members NON-INDEPENDENT MEMBERS INDEPENDENT MEMBERS BoD in line David Ruiz de Andrés Nicolás Bergareche Mendoza Chairman (Propietary, Exec.) Director with Stock Exchange Best Antonio Jiménez Alarcón Ana Peralta Moreno Director (CFO, Exec.) Director Practices Florentino Vivancos Gasset Rocío Hortigüela Esturillo Director (Proprietary) Director Management Committee Business Units Directors David Ruiz de Andrés Emi Takehara CEO Structured Finance Antonio Jiménez Alarcón Gonzalo de Rojas Highly CFO Development experienced Mercedes Español Alfredo Casas management M&A EPC team Daniel Lozano Daniel Barman IR+Communication Energy Sales Alvaro Ruiz Luis Collazo Legal Services (O&M + AM) Top Management fully aligned with shareholders through stock options programmes 23
4-STRONG GOVERNANCE WITH FOCUS ON ESG ESG Action Plan - 2023 ROADMAP Strategic pillars and TCFD Recommendations The four objectives approved by the ESG Policy will be reached by implementing the ESG Action Plan on five core functional areas Number ESG Policy Action areas of actions Aim ESG Governance ✔ Create a solid ESG Governance Governance 16 structure structure Prevention and Strategy 5 ✔ Integrate ESG objectives within mitigation of negative Corporate strategy impacts Risk management 8 ✔ Integrate ESG risks Promotion of positive ✔ Boost positive impacts and ESG Impacts 31 impacts mitigate negative ✔ Implement the necessary tools Stakeholder's relations Communication 8 to quantify Grenergy’s ESG footprint in the community 24
4. ESG - CARBON FOOTPRINT 2020 Emissions reduction targets CARBON FOOTPRINT INDEPENDENT EMISSIONS REDUCTION CALCULATION VERIFICATION TARGETS SET New sources of scope 3 Identification of sources and Reduce scope 1&2 Reach scope 1&2 emissions included to calculations were emissions emissions independently verified comply with GHG Protocol Scope 1&2: 421.61 tCO2 CO2e 55% Net zero Assessed tCO2e/GWh Scope 3: 67,458 tCO2e Organisation by 2030 by 2050 EMISSIONS SOURCES MAP SCOPE 3 SCOPE 1-2 SCOPE 3 Supply chain Construction O&M Corporate Sea freight Subcontractor Company Office buildings Business trips machinery vehicles REDUCTION STRATEGY • Renewable energy sources for own consumption Road freight Third party Waste vehicles • Energy efficiency opportunities identification Home-workers • Transition to clean corporate cars analysis Solar panels production Waste 25
4-ESG - EXTERNAL RECOGNITION OUR FIRST ESG RATING ACHIEVED ESG Risk Rating Ranking Strong Mangement of Peers ESG Risk Rating all ESG material issues: 13.6 1. Scatec 12.8 Low INDUSTRY GROUP Governance Low Risk Utilities 5 out of 575 Land Use and 2. Grenergy Renovables 13.6 Low Biodiversity Business Ethics 3. Voltalia 15.2 Low 4. Acciona 21.1 Medium Product Human Capital SUBINDUSTRY Governance 5. audax 25.1 Medium Negl. Low Med. High Severe Renewable Power Production 3 out of 68 6. Neoen 25.3 Medium Ocupacional Health Community Relations 7. Solarpack - (not rated) 0-10 10-20 20-30 30-40 40+ and Safety 8. Solaria - (not rated) OUR EMPLOYEES TRUST LEVEL TESTED • Great place to Work certification obtained • We measured our employees experience through Trust Index© surveys • Surveys launched in summer 2020 following to the COVID-19 confinement period 94% satisfied with treament received 92% feels proud to work at Grenergy 79% thinks Grenergy is an excellent place to work. 26
4-ESG-CASE STUDY QUILLAGUA Quillagua solar PV project • Quillagua phase 1: 103 MW in operation • Quillagua phase 2: 111 MW in backlog • Located in the desert of Atacama, Chile Socioeconomic situation of local community • Limited access to electricity 8-11 hours per day via diesel powered generator • Difficult economic development due to remote location Grenergy´s commitment • Provide electricity supply 24h from renewable sources • Construction works of 350KW solar PV plant to start in May 2021 • Local employment and training • Support to promote tourism • Protection of cultural heritage improving local museum facilities Lifes of more than 150 local people directly benefited from the project, including Aymara indigenous group Componentes básicos de la instalación PV solar panels: 520W JINKO JKM520M-7TL4-BDVP Inverter: Huawei SUN2000-185HTL Structure: SolarFix. Fixed structure 25º Peak Power: 349.440 Wp 27
4-STRONG GOVERNANCE WITH FOCUS ON ESG Translating into solid value creation for its shareholders General Information Shareholders (as of May, 2021)1 Share Information Free ● Currency: EUR Float 40 ● Market: Spanish Stock Exchange ● ISIN: ES0105079000 ● Ticker code: GRE ● Market Cap. (as of May 20th, 2021) 8202M€; ● 30 Day Avg Volume. (as of May 20th, 2021) 79.530 David Ruiz de Andrés (c.3M€) 60% ● Number of shares (as of May 20th, 2021): 27,926,911 Banks covering the stock Share Information ● Admision to trading in to the main market last 16th December 2019. Share Information ● inversores@grenergy.eu Grupo 28 Note (s): David Ruiz de Andrés through Daruan Group Holding
APPENDICES
PLATFORM WITH RELEVANT GROWTH POTENTIAL Project Portfolio Project Classification1 Early Stage Projects with technical and financial feasibility: < 50% • Possibilities to secure land and grid; and/or Success Rate 2,344MW • Possibilities to sell it to third parties Projects with an advanced technical and financial stage: > 50% Advanced Development • +50% Probability to secure land; and/or Success Rate 2,869MW • +90% Probability to get grid access; and/or • Environmental permits requested Projects in a final phase before construction: > 80% Backlog • Secured land and grid access; and/or • +90% Probability to obtain environmental permits Success Rate 448MW • Off-take agreements, PPA, or bankable scheme of stabilized prices secured / ready to be signed Ready to Build Ready to Build: Financing close, PPA in place or negotiation of EPC Under Construction Under Construction: EPC provider has been mandated to start > 100% 417MW construction works Success Rate In operation In Operation: Project responsibility transferred from the EPC 198MW provider to the project operator 30 1 This classification of the pipeline phases has been made by the company itself on the basis of its previous experience in projects carried out, using its own infernal criteria and procedures.
1Q21 RESULTS Profit and Losses Solar and Wind projects producing EBITDA in the energy division Profit and losses (€k) Q1 21 Q1 20 Delta Revenue 18,701 33,278 (44%) Income from customer sales 9,856 22,838 (57%) Income from related from third party sales 8,845 10,440 (15%) Procurement (13,808) (24,108) (43%) Procurement from third parties (4,963) (13,668) (64%) Activated cost (8,845) (10,440) (15%) Gross Margin 4,893 9,170 (47%) Personnel expenses (2,015) (1,318) 53% Other incomes 512 11 4.555% Other operating expenses (1,618) (2,291) (29%) Other results (15) 25 (160%) EBITDA 1,757 5,597 (69%) Depreciation and amortization (1,018) (196) 419% EBIT 739 5,401 -86% Financial incomes 26 15 n.m Financial expenses (1,734) (565) 207% Exchange rate differences 1,249 (979) (228%) Financial result (459) (1,529) (70%) Result before taxes 280 3,872 -93% Income tax 111 (445) -125% Net Income 391 3,427 -89% 31
1Q21 RESULTS Balance Sheet Balance Sheet (€k) 31/03/21 31/12/20 Var. Non-current assets 209,762 169,499 40,263 Intangible assets 9,298 9,143 155 Fixed asset 178,769 144,768 34,001 Assets with right of use 11,371 5,284 6,087 Deferred tax assets 10,091 10,217 (126) Other fix assets 233 87 146 Current assets 187,670 88,699 98,971 Inventories 24,368 18,169 6,199 Trade and other accounts receivable 45,936 42,755 3,181 Current financial investments 4,707 6,461 (1,754) Other current financial assets 2,921 745 2,176 Cash and cash equivalents 109,738 20,569 89,169 Triple equity TOTAL ASSETS 397,432 258,198 139,234 balance due to (€k) 31/3/21 31/12/20 Var. Equity 155,507 48,835 106,672 the share capital Non-current liabilities 151,200 143,518 7,682 increase Deferred tax liabilities 5,728 5,591 137 Non-current provisions 4,966 3,421 1,545 Financial debt 140,506 134,506 6,000 Bonds 21,488 21,497 (9) Debt with financial entities 109,509 108,653 856 Finance lease 9,379 4,200 5,179 Other debts 130 156 (26) Current liabilities 90,725 65,845 24,880 Current provisions 908 839 69 Trade and other accounts payable 54,695 44,049 10,646 Financial debt 35,122 20,957 14,165 Current financial liabilities 451 152 299 Short-term financial lease 32,683 17,069 15,614 Other current liabilities 815 682 133 Group Loan 1,173 3,054 (1,881) TOTAL LIABILITIES AND EQUITY 397,432 258,198 139,234 32
1Q21 RESULTS Net Debt Leverage reduced to 3.1x Net Debt (€k) 1Q21 FY20 1Q21-FY20 Long-term financial debt 39,668,228 35,026,283 4,641,945 Short-term financial debt 13,621,726 4,832,787 8,788,939 Other long term debt 130,159 156,189 (26,030) Other short term debt 1,172,573 3,054,370 (1,881,797) Other current financial assets (4,706,757) (6,460,724) 1,753,967 Cash & cash equivalents (105,464,054) (12,492,510) (92,971,544) Corporate Net Debt with resource (55,578,125) 24,116,395 (79,694,520) Project Finance debt with resource 57,943,786 50,382,935 7,560,851 Project Finance cash with resource (917,025) (5,631,607) 4,714,582 Project Finance Net Debt with resource 57,026,761 44,751,328 12,275,433 Project Finance debt without resource 63,091,741 62,009,987 1,081,754 Project Finance cash without resource (3,348,968) (2,445,133) (903,835) Net Debt without resource 59,742,773 59,564,854 177,919 Total Net Debt 61,191,409 128,432,577 (67,241,168) 33 1 IFRS audited figures
SHARE CAPITAL INCREASE: USE OF PROCEEDS Grenergy has successfully secured its capital needs with an ABB in 1Q21 • Size of the deal: 105M€ • Admission to trading 22nd March 21 • Total Shares: 27,926,911 • 40% free float after the deal ABB Key figures: 350-400M€ • The book had c.50 lines with strong international demand. 300-350M€ Capex • Long-only accounts represented the majority of the allocations, with the Investment top 10 allocations taking over 60% of the book. 200-250M€ ~ 1000 M€ • Largest equity offering by a Spanish-listed renewables company in 2021 year-to-date. 2021 2022 2023 This operation allows us: +500MWs +800MWs +1000MWs • To obtain the necessary funds for achieving our IPP targets & strengthening the organizational structure. Sound financial structure • To accelerate our international expansion and pipeline of projects. • Project debt (85/15 structure) • To triple our equity balance and reduce total leverage. Capex • Strong cash position (109M€, March 2021) • To increase share liquidity per day and let new international investors get Finance • Funds from Operation from: in as company shareholders. · Service and Energy div. recurrent cash in • To show management belief in our share by purchasing new shares in the · Build and Sale secure income deal. 34
Developers and IPP of SOLAR PV & WIND projects Chile - Spain - Peru - Colombia - Italy - Mexico - Argentina - UK
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