Enlight Renewable Energy
Corporate Presentation, September 2019
Enlight Renewable Energy Corporate Presentation, September 2019 - - PowerPoint PPT Presentation
Enlight Renewable Energy Corporate Presentation, September 2019 Disclaimer In this presentation, the Company has included, in relation to itself and in relation to companies in the Company Group (the "Company"), forward-looking
Corporate Presentation, September 2019
2 In this presentation, the Company has included, in relation to itself and in relation to companies in the Company Group (the "Company"), forward-looking information, as defined in the Securities Law, 1968 ("Forward-Looking Information"). Such information includes, inter alia, forecasts, objectives, estimates, assessments and other information relating to future events or matters, the realization of which is uncertain and may be affected by factors that cannot be estimated in advance and which are not under the Company's control. The forward-looking information, as aforesaid, is based on the estimates of the Company's management, which are based, inter alia, on information known to the Company's management at the time of preparing this presentation, including assessments of the Company's markets of activity, statistical and public data and publications published by various bodies and authorities, the content of which has not been independently examined by the Company, and therefore, the Company is not responsible for their accuracy. In addition, as part of this presentation, the Company has included a number of indices and data with respect to forecasts of the Company's expected results and / or projects, including a number of potential methodologies for evaluating the value of the Company's projects and assets; the aforesaid value / valuation methodologies and the accompanying data relating to the results of the projects are based on internal management analyses that are only estimates and / or independent publications in the Company's markets of activity, and do not constitute a formal assessment or a binding representation with respect to the position of the Company's management or its shareholders. However, the presentation of these methodologies is cited as a general indication and a possible point of view for readers of this presentation and the Company's investors as a whole. In addition, this presentation includes data on projects currently under construction and / or development, including data regarding the expected results of the projects, and accordingly some of the data in respect of these projects constitute internal forecasts of the Company, based on management's estimates on this date and there is no complete certainty regarding the realization of these projects / nor complete data for them. It should be noted that the data of the Company's existing projects are based on the existing tariff for each project, on conditional licenses that are subject to changes and adjustments, projects subject to regulatory variables, changes in business, expected expansion, economic data in the target countries, index data, financing assumptions based on existing discussions, and / or the understandings reached and the management's forecasts based on the project data on this date, etc., where the aforesaid is subject to regulatory variables and also has no effect on the risk factors that apply to the Company's operations, as detailed in its periodic and immediate reports. These may change from time to time and the Company will report any material development. This presentation and the data presented herein are for the purpose of convenience only and should not be relied on, and no investment decision should be made solely on the basis of them. Any investment decision about the Company or about its securities should be made according to formal and official data only relating to the Company, including the Company's prospectus and its Company reports, and should be considered in their entirety. This presentation and the data herein are not an alternative to the independent examination of the Company's financial statements and data, including any required due diligence, as required. It is hereby noted that some of the data presented in the presentation represent management data, which are not based on accounting rules and / or Non-GAAP data, and these are presented for convenience purposes only and for providing an additional business perspective regarding the Company's operations and business. These data are not a substitute for the Company's reports and / or its reporting, and should be considered as a benchmark for convenience only. The materialization of the forward-looking information, in whole or in part, or in a manner other than expected, or not materialized, may be affected, inter alia, by the risk factors characterizing the Group's activity, as well as by developments in the economic environment and by external factors affecting the Group in its areas of activity. The Company has no certainty that its estimates, plans and expectations will materialize and, therefore, the results of operations may differ materially from the results estimated or implied by this information. This presentation was prepared for concise reading and convenience only and was not intended to replace the need to review reports published by the Company to the public. Full and comprehensive information in connection with the Company and its businesses can be found in the periodic and immediate published reports, as well as in the Company's forecasts and assessments on the ISA website (www.magna.isa.gov.il) which are based on data and information available to the Company at the time of preparing this presentation, and the Company does not undertake to update and / or revise such forecasts and / or evaluations in order to reflect events and / or circumstances that may occur after the date of the presentation. It is also noted that a considerable part of the information presented in this presentation is taken and / or derived from the Company's reports, although presented in a condensed and / or graphic and / or concise manner. Therefore, this presentation is not a substitute for the Company's reports, but is rather a supplementary source of information The presentation does not constitute an invitation or an offer to purchase securities of the Company.
Market leader in initiation, development, financing, construction and operation of renewable energy projects Growing rapidly, creating a diversified and balanced portfolio in Europe and Israel Electricity revenues forecast of NIS 30 billion for 30 years from current portfolio(1), of which 50% are in PPA contracts (2)
3
Current portfolio (1)
4
Countries
Years
Duration of contracts at fixed price (7)
Billion NIS
Expected multi-year income (1) (2)
15 billion PPA/FIT backed 15 billion Merchant sales
Current Portfolio
6 139 19 ורכמנ םיבינמ המקהב תארקל המקה חותיפ
370 ~
3849 162 105 80 ורכמנ םיבינמ המקהב תארקל המקה חותיפ 1314 413 ורכמנ םיבינמ המקהב תארקל המקה חותיפ
Western Europe
96 221 ורכמנ םיבינמ המקהב תארקל המקה חותיפ
5 180 ~
~
Under Construction Operating Sold
Israel - Solar
Towards Construction
Central & Eastern Europe
MW
Israel - Wind
Under Construction Operating Sold Towards Construction Under Development Under Construction Operating Sold Towards Construction Under Development Under Construction Operating Sold Towards Construction Under Development
New projects in the international market
Spain, Sweden and Kosovo
518MW
Zoning approval of flagship wind farm
Genesis Wind
189MW
Start of Construction
Emek HaBacha wind, Hungary PV, Sunlight 2 PV
172MW
Completion of Construction
Serbia, Sunlight 1
158MW
NIS 490 Million Improving financial position
Raising capital & debt
6
7
57 57 57
100 202 383 203 277 854 153 758 500
12/31/2017 Today Q1/2020 MW 1,294 MW 513
Israel PV Serbia Hungary Croatia Ireland Spain Genesis Wind Sweden Kosovo Emek HaBacha Yatir Israel PV
2022
1,237
57 Under Construction Operating Towards construction (1) Realized In Development
Legend
Billion NIS
Market Cap
Million NIS
Average trading volume since the beginning of the year
#15 on Tel Aviv 90
3-year stock return (22)
Rating
Company
) 8 (
Rating
Public / institutional holdings
Interested parties 4% Institutional investors 43% Other public 53%
Holding Structure
8
10
Revenue from electricity sales
EBITDA projects
FFO projects
Cash Flow and Profitability Indices NIS million,
12 months ended 31/03/2019 (9) (12)
Company rating A3.il by Midroog (Moody’s affiliate), stable
Capital raising in the past 12 months of 400 million ILS:
Options exercised
2018 Equity raised
2019 Equity raised
Forecast of electricity sales growth from current portfolio NIS Million (1) (2) (10)
11
2018 2019 2020 2021 2022 2023 950 780 510 340 270 186
MW
57
MW
19
MW
19
MW
96
MW
105
MW
113
MW
221
MW
300
MW
105
12 Israel International
Million ILS Cash and securities portfolio, solo (13)
Million ILS Bonds, solo
Million ILS Consolidated equity (13) FFO from projects
73 69 3 29
2017 2018 2019E
76 98 140-150
45% +
EBITDA from projects
124 117 3 41
2017 2018 2019E
127 158 210-230
40% +
Electricity sales
142 138 4 48
2017 2018 2019E
146 186 260-280
45% +
(NIS millions)
12
Portfolio by country
Country
Scope of Enlight projects
Existing & in development
Main currency for project activities Electricity sales model Forecast for continued Enlight market activities
MW F=FIT CP=Corporate PPA M=Merchant
Israel 1,000 ~ NIS F 25
Y
Sweden 113
under construction
Euro CP + M
Spain 300 Euro CP + M
Ireland 14 Euro F 15Y
Hungary 57 Forint F 20Y
Croatia 49 Kuna F 14Y
Serbia 105 Euro F 12Y
Kosovo 105 Euro F 12Y
Italy 13 (sold) Euro F + CP +M
Poland 38 (sold) Zloty F + CP +M
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Portfolio by project (9) Project Stage Segment Capacity Enlight holdings Electricity sales 12 months Balance of loan principal
as of 31.03.2019
EBITDA 12 months(12) FFO 12 months(12)
MW % M NIS M NIS M NIS M NIS Israel Solar - Operating Operating 139 100%
156 825 132 96 Tullynamoyle Operating 14 50.1% 9 70 7 4 Lukovac Operating 49 50.1% 55 198 48 34 Blacksmith Operating 105 50.1% 113 98 69
% Enlight holdings 1st year Expected construction cost 1st year
Emek HaBekha Construction 96 36.5% 105 660 85 60 Attila Construction 57 50.1% 28 243 22 12 Sunlight2 Construction 19
8 77 5 3 Genesis Wind Towards construction 189 60%
175
1,100
Yatir Towards construction 32 50.1% 25
190
Selac Towards construction 105 60% 102 730
Gecama Towards construction 300 53%
Y 10
185
Y 30
265
1,470
Picasso Towards construction 113 50%
) 16 (
Y 12
50
Y 30
100
575
Floating PV Towards construction 19 74%
8
77
15
Photo for illustration purposes only
Description of primary activity markets
16
Spain
Wind power and PV (15) 28 GW Currently 51 GW by 2030
Percentage of renewals from electricity generation (15)
40% currently
2030 targets 75% 2050 targets 100%
Project Gecama
300 MW
Expected Holding ~53% Construction Cost
310-330 Euro Million
Annual Revenues in 1st 10 years
40-45 Euro Million
Expected Construction start date: next
12 months
Photo for illustration purposes only
Description of primary activity markets
17
Sweden
Country rating AAA (17) Wind power and PV (15)
8 GW Currently >13 GW 2030
Percentage of renewals from electricity generation (15)
> 54% currently
2040 targets 100%
Project Picasso
113 MW Project in high demand area
Expected Holding 50-100% (16) Construction Cost
135-145 Euro Million
Annual Revenues in 1st 12 years
10-13 Euro Million
Expected Construction start date:
Q3/19
Project Genesis Wind(18) 189 MW
Expected Holding 54%-60% Construction Cost
950-1,100 NIS Million
Expected Revenues
155-175 NIS Million
Expected Construction start date: next 6 months
Israel
Wind power and PV (15)
~1.7 GW Currently >8 GW 2030
Percentage of renewables from electricity generation
>5% currently
2030 17%
Photo for illustration purposes only
Description of primary activity markets
18
19
Croatia
49 MW FIT 0.103 25-30 years 14 years
Country
Capacity Sales Model Tariff Euro/KwH(20) Project lifespan(12) FIT period
Serbia
105MW FIT 0.096 25-30 years 12 years
Hungary
57MWp FIT 0.098 25-30 years 20 years
Kosovo
105MW FIT 0.085 25-30 years 12 years
Projects in CEE countries
21
preparation for construction – have an advanced development status, whose construction is expected to begin in the next 12 months, but have not yet received all the regulatory approvals for the start of construction, and therefore there is still no certainty as to their realization and their realization with regards to the specified supply. 2. Including the Company's forecast of revenues from income-generating projects, under construction and in preparation for construction, for a period
realization of such data and estimates over the period. In addition, the data include the expected average output 50P - the probability of median energy output according to site measurements, the inflation forecast according to the Company's assumptions and based on the forecast of poyry central electricity prices in the market. 3. https://about.bnef.com/blog/transition-energy-transport-10-predictions-2019/ 4. https://about.bnef.com ו- NEO 2018 BNEF 5. %European Installations :IRENA Renewable capacity highlights 31 March 20; %Global Installations :Source: Global Trends in Renewable Energy Investment Report 2018 6. Levelized Cost of Energy Analysis (LCOE 12.0) 7. Includes all the projects in the existing portfolio and is calculated according to the average of the tariff arrangement period / PPA according to the weights of the revenue backlog in the said period. 8. https://maya.tase.co.il/reports/details/1228020 9. Calculated according to Euro / Shekel exchange rate 4.08 or the average exchange rate for the period for actual results, and Euro / Kuna 7.42 for the project in Croatia and Euro / Forint 321.50 for the project in Hungary, as of March 31, 2019.
Company's estimates regarding the timetables for completing development and construction, however, there is still no certainty as to their materialization in general or the timetables specified for completing the development. In addition, please see a clarification clause regarding "forward-looking information”
for projects after commercial operation. The FFO is calculated on the basis of the EBITDA index as defined above, excluding the effects of events that are one-time in nature and less current tax expenses and interest payments in respect of senior debt loans and non-recourse financing loans. Without the effect of the IFRS 16 implementation.
22
Depreciation and amortization - depreciation in respect of fixed assets, amortization of intangible assets and share-based payment (excluding the effect of the implementation of IFRS 16) EBITDA index is calculated as a profit before financing, taxes, depreciation and amortization (without the effect of the implementation of IFRS 16) Recording depreciation expenses for PV facilities in Israel that are treated in the statutory statements as a financial asset, and converted to fixed
the fixed assets) and an amortization period of 20 years.
International Renewable Energy Agency, Abu Dhabi: Renewable Energy in Spain today: https://windeurope.org/wp-content/uploads/files/about- wind/reports/Wind-energy-in-Europe-Scenarios-for-2030.pdf, Predicted installed power Spain 2030: and WHOLESALE ELECTRICITY PRICE PROJECTIONS FOR SPAIN ,Predicted installed power Sweden 2030:https://windeurope.org/wp-content/uploads/files/about-wind/reports/Wind- energy-in-Europe-Scenarios-for-2030.pdf 2030
; Data for Israel: A road map for the development of the generation segment in the electricity sector.
alternatives, but not more than 49% of equity, and is in preliminary negotiations with a number of entities regarding this matter. According to the Company's policy, it will continue to hold 100% of the project's management rights and will therefore be entitled to management fees, initiation fees and distribution rates in volumes and in excess rates of return.
accepted with the addition of a condition that the project plan will come into effect after reaching an agreement with the Ministry of Defense regarding the budget for finding a technological solution for dealing with security aspects relating to wind turbines in Israel. To the best of the Company's knowledge, the matter is being discussed by the Ministry of Defense and the Ministries of Energy and Finance. The cost of the investment and the forecasted revenues are based on a normative output forecast from the electricity arrangement in the first year of operation and the electricity tariff based on the relevant tariff regulation.
Wind installations in 2020-2030 are forecasted ~ 700-2000MW and PV installations in the same period are forecasted ~ 700-1000MW; Data for Kosovo: http://ero- ks.org/2019/Autorizimet_Licencat/15_05_2019%20Regjistri%20i%20Aplikuesve%20per%20Autorizim%20dhe%20Pranim%20ne%20Skemen%20Mbes htetese.pdf