Enlight Renewable Energy Corporate Presentation, September 2019 - - PowerPoint PPT Presentation

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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


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Enlight Renewable Energy

Corporate Presentation, September 2019

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SLIDE 2

Disclaimer

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.

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SLIDE 3

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

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SLIDE 4

The strengths of the business model

Current portfolio (1)

4

10

Countries

16.7

Years

Duration of contracts at fixed price (7)

30

Billion NIS

Expected multi-year income (1) (2)

15 billion PPA/FIT backed 15 billion Merchant sales

1.3 GW

Current Portfolio

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SLIDE 5

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

440MW

96 221 ורכמנ םיבינמ המקהב תארקל המקה חותיפ

4 balanced and growing target markets

5 180 ~

~

Under Construction Operating Sold

Israel - Solar

~550MW

Towards Construction

Central & Eastern Europe

430 ~

MW

Israel - Wind

~500MW

Under Construction Operating Sold Towards Construction Under Development Under Construction Operating Sold Towards Construction Under Development Under Construction Operating Sold Towards Construction Under Development

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SLIDE 6

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

Last 12 months in summary

6

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SLIDE 7

2017-2022: Installed capacity multiple x 12 (10) (1)

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

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SLIDE 8

Selected market data (11)

2.4

Billion NIS

Market Cap

3.1

Million NIS

Average trading volume since the beginning of the year

#15 on Tel Aviv 90

225%

3-year stock return (22)

A3.il

Rating

Company

) 8 (

Rating

96%

Public / institutional holdings

Interested parties 4% Institutional investors 43% Other public 53%

Holding Structure

8

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SLIDE 9

Financial profile

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SLIDE 10

Financial Summary: 2018 to date

10

208

Revenue from electricity sales

178

EBITDA projects

114

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

  • utlook (8)

Capital raising in the past 12 months of 400 million ILS:

67

Options exercised

60

2018 Equity raised

223

2019 Equity raised

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SLIDE 11

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

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SLIDE 12

12 Israel International

Financial stability and high liquidity

~400

Million ILS Cash and securities portfolio, solo (13)

273

Million ILS Bonds, solo

~900

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% +

Consistent growth in cash flow profitability indices (9) (10) (12)

(NIS millions)

12

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SLIDE 13

Activities by countries and projects

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SLIDE 14

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

  • 20

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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SLIDE 15

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%

  • 51%

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

  • 100%50%

8 77 5 3 Genesis Wind Towards construction 189 60%

  • 54%

175

  • 155

1,100

  • 950

Yatir Towards construction 32 50.1% 25

  • 15

190

  • 170

Selac Towards construction 105 60% 102 730

  • 570

Gecama Towards construction 300 53%

  • 50%

Y 10

  • 1

185

  • 165

Y 30

  • 11

265

  • 225

1,470

  • 1,310

Picasso Towards construction 113 50%

  • 100%

) 16 (

Y 12

  • 1

50

  • 40

Y 30

  • 13

100

  • 70

575

  • 550

Floating PV Towards construction 19 74%

  • 50%

8

  • 7

77

  • 73

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SLIDE 16

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

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SLIDE 17

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

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SLIDE 18

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

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SLIDE 19

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

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SLIDE 20

Thank You

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Appendix: Notes and Sources

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  • 1. "Existing portfolio includes income-generating projects, projects under construction and projects in preparation for construction. Projects in

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

  • f 30 years (as a whole, with each project having a different lifespan), according to the indices and project data reported to the public and the full

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.

  • 10. The estimate of the installed power as at the beginning of 2020 in particular and the assumptions regarding the tables in general is based on the

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”

  • 11. Market data for the date 28/05/2019
  • 12. The EBITDA index is calculated as a profit before financing, taxes, depreciation and amortization based on the application of the fixed asset model

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.

  • 13. Including the proceeds of equity raising issued on April 2019, totaling 223 million ILS, gross
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Appendix: Notes and Sources (cont.)

22

  • 14. Profit & Loss statement for Fixed Assets Non-GAAP:

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

  • assets. Depreciation expenses added to the adjustment column were calculated using a residual value of 15% (in relation to the construction cost of

the fixed assets) and an amortization period of 20 years.

  • 15. Installed power today: The Renewable capacity statistics 2019, IRENA (2019); and The Renewable Energy Statistics 2018, IRENA (2018), The

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

  • 2018

; Data for Israel: A road map for the development of the generation segment in the electricity sector.

  • 16. The Company is examining the integration of institutional entities for Investments in shareholders' equity required for the project, in various

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.

  • 17. https://tradingeconomics.com/sweden/rating
  • 18. Housing cabinet approval was received for the project plan in accordance with the planning process. The approval of the Cabinet, as aforesaid, was

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.

  • 19. For all countries (except those detailed below): kot - 2030-res-targets-for-Europe Croatia: According to Croatia draft National Energy Strategy. New

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

  • 20. For the year 2019 and according to the exchange rate for 31.05.2019 - Euro / Kuna 7.42, Euro / Forint 325.11 and Euro/Serbian Dinar 117.92
  • 21. The lifespan of the project is evaluated for each project on its own merits, taking into account technical, legal, regulatory and economic parameters.
  • 22. https://finance.themarker.com/quote/?mador=1&documentId=720011