Q2 2020 Financial Results Analyst Presentation Abu Dhabi National - - PowerPoint PPT Presentation

SLIDE 1

POWERING A THRIVING FUTURE

Q2 2020 Financial Results Analyst Presentation

Abu Dhabi National Energy Company (TAQA), 13 August 2020

SLIDE 2

Disclaimer

These materials have been prepared by Abu Dhabi National Energy Company (“TAQA” or the “Company”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. These materials have been prepared for information purposes only and do not form part of any prospectus, offering memorandum or offering circular or an offer to sell any securities and are not intended to provide the basis for any credit or any third party evaluation of any securities or any offering of them and should not be considered as a recommendation that any investor should subscribe for or purchase any securities. The information contained herein supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No person shall have any right of action (except in case of fraud) against the Company or any other person in relation to the accuracy or completeness of the information contained herein. This presentation may contain, or may be deemed to contain, "forward-looking statements" regarding future events or the future financial performance of the Company. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. Please note that rounding differences may appear throughout the presentation.

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SLIDE 3

Q2 2020 – results summary

Strong operational results with financial performance impacted by commodity price exposure

Last set of financials reflecting TAQA-standalone prior to ADPower reverse-merger Strong operational performance across business lines

• High technical availability levels maintained for contracted power and water businesses
• Oil and gas production maintained despite delayed drilling campaigns

Weaker financial performance due to COVID-19 impact on commodity prices

• Revenue of AED 3.3bn (-28% Q2 y/y)
• EBITDA of AED 1.8bn (-27% Q2 y/y)

Net loss (TAQA-share) of AED 205 million for Q2 2020

• Driven by lower revenues and largely fixed finance costs partially offset by lower opex
• Finance costs slightly lower on reduced interest rates on floating rate portion of debt

Strong liquidity and steady net debt levels

• Total liquidity at AED 11.0bn
• Higher gross debt on RCF drawdown (up AED 0.7bn y/y Q2)

3

Group financial highlights (AED million)

3,337 4,662 Q2 2020 Q2 2019 1,751 2,407 Q2 2020 Q2 2019

• 205

208 Q2 2020 Q2 2019 1,061 1,562 Q2 2020 Q2 2019 312 474 Q2 2020 Q2 2019 Revenues EBITDA Net income (TAQA-share) Free cash flow* CAPEX

* Free cash flows represent ‘operating’ less ‘investing’ cash flows

SLIDE 4

Power and water highlights

Stability from contracted generation

Stable financial performance for contracted business

• Overall power and water revenues of AED 2.7bn (-9% y/y Q2)

− Flat for contracted UAE business − Down 22% for international power 1. Reduced demand and lower production at our single merchant asset (Red Oak, USA), and 2. Lower fuel reimbursement revenues (on falling fuel cost trend and lower production)

• EBITDA of AED 1.7bn (-3% y/y Q2)

− Flat for UAE sub-segment − Down 15% for international power and water reflecting Red Oak losses Strong operational performance throughout Q2 2020

• Technical availability at 97.6% (+0.4pp y/y Q2)
• Total power generation of 23,488 GWh (-4% y/y Q2)
• Water volumes stable at 64,759 MIG (+3% y/y Q2)

4

Power generation (GWh) Revenue & EBITDA (AED million)

17,523 17,572 7,001 5,916 97.2% 97.6% Q2 2019 Q2 2020 Int'l UAE Technical availability 62,775 64,759 Q2 2019 Q2 2020

Water desalination (MIG)

2,993 2,738 1,754 1,705 59% 62% Q2 2019 Q2 2020 Revenue EBITDA EBITDA margin

SLIDE 5

Commodity price environment

Volatile price environment remains a challenge

• TAQA realized oil price US$ 18.6/bbl vs US$ 61.8/bbl

(-70% y/y Q2)

5

Benchmark gas prices (US$/mmBtu) Benchmark oil prices (US$/bbl)

• 40
• 20

20 40 60 80 2019 2020 Brent WTI 1 2 3 4 5 6 7 8 2019 2020 Henry Hub AECO NBP

• TAQA realized gas price US$ 1.7/mmBtu vs US$ 1.8/mmBtu)

(-6 % y/y Q2) TAQA blended output energy price of US$ 13.3/boe vs US$ 35.3/boe (-62% y/y Q2)

SLIDE 6

Oil and gas highlights

Stable overall volumes but significantly lower commodity prices

Strong operational results from the Oil & Gas segment

• Global production at 123.1 mboepd (flat y/y Q2) despite delayed drilling

campaigns

• North America at 72.5 mboped (-8% y/y Q2), Europe 40.0 mboepd (+5%),

Iraq entitlement production at 10.7 mboepd (+84%) Weaker financial performance on significantly lower commodity prices

• Revenues of AED 0.6bn (-64% y/y Q2); EBITDA of AED 69 mn (-90%)
• No further impairments this quarter on oil and gas assets

6

79.0 72.5 38.1 40.0 5.8 10.7 Q2 2019 Q2 2020 North America Europe Iraq

Average production (mboepd) Revenue & EBITDA (AED million)

1,669 599 659 69 39% 12% Q2 2019 Q2 2020 Revenue EBITDA EBITDA margin total: 122.9 total: 123.1

SLIDE 7

Liquidity and key ratios

Strong liquidity levels and continued debt reduction

7

Robust liquidity position

• Total liquidity of AED 11.0bn made up of:

− Cash and cash equivalents of AED 4.6bn − Undrawn credit facilities of AED 6.4bn

• RCF drawdown of AED 2.8bn in early Q2 2020

Flat interest costs

• Cash interest paid was flat versus the prior year period as higher gross

debt (AED 0.7bn higher) was offset by lower interest rates (drawn RCF)

• Net debt of AED 60.6bn (flat versus end-Q1 2020)

Q2 2019 Q2 2020 Net debt / net capital ** 84% 85% EBITDA / Interest 2.8x 2.2x Net Debt / EBITDA LTM 6.4x 7.5x

Key ratios Corporate debt maturity profile* (US$ million)

* as at 30 June 2020

1,500 415 1,250 2,848 750 1,000 1,000 913 500 2020 21 22 23 24 25 26 30 36 49 Bonds Drawn RCF Undrawn RCF Term loan

** Net capital = net debt plus equity less accumulated changes in the fair value of derivatives

SLIDE 8

A brief overview of the new TAQA

SLIDE 9

9

ADPower and TAQA are writing history

Creating a regional water and electricity champion that will transform the sector

AED 180bn

asset size of the combined company

Strong credit & ability to pay dividends

AED 44bn

revenues )85% of EBITDA is long term contracted

• r regulated)

23 GW of electrical generation capacity 913 MIGD of water desalination capacity 20,000 km water, 80,000 km electricity networks 124.4k boepd global production 11 countries with

• perations

Note: Showing pro forma YE/FY 2019 figures for new TAQA

SLIDE 10

10

Key objectives achieved by TAQA – ADPower transaction

Strengthened capital structure, secure cash flow profile and strong growth prospects

Formation of one of the largest listed integrated utilities in the region holding the rights in perpetuity for the regulated power and water network concessions in Abu Dhabi

Creation of a national power & energy champion to lead sector transformation B

Robust capital structure and immediate deleveraging of TAQA, with further performance uplift potential from integration

A

Highly predictable and secure cash flow profile underpinned by a transparent regulatory framework and long term offtake contracts leading to more than 85% of EBITDA being contracted or regulated

B A

Enjoys exclusivity rights to participate in all future power and water generation projects tendered in Abu Dhabi over the next ten years with a minimum 40% stake

Enhanced capital structure with a strong balance sheet and secure cash flow profile B

Strong and stable company providing virtually all the critical power and water infrastructure for the Abu Dhabi economy and the only vehicle available to invest in this sector

A

Positioned to capture the infrastructure growth expected in Abu Dhabi and selectively seeking value-added growth outside the Emirate

Essential infrastructure company for Abu Dhabi with strong government support

SLIDE 11

TAQA at a glance

Our global footprint

Power Power and Water Oil and Gas Transmission and Distribution

Country Plant name Operatorship; TAQA ownership Power / water (installed capacity^) P(W)PA residual life (as at 31/12/2019) Country Asset description Operatorship 2019 production Hydrocarbon production mix (% crude / gas / NGL) 2P reserves (as at 31/12/2019) Note: 49% associate investment in Massar Solutions not shown ^ Installed gross power and water capacity at PCOD * Percentage of global TAQA capacity / production / 2P reserves of 22GW, 913 MIGD / 124.4mboped / 379mmboe ** Int’l partners include: Engie, Marubeni, JGC, JinkoSolar, Sumitomo, ACWA Power, BTU, EDF, JERA, Kepco, Powertek, Sembcorp, Total *** Not included in ‘Generation’ business line given TAQA stake in whole smelter (powered by a captive power plant)

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India Neyveli lignite-fired power plant TAQA-operated; 100% TAQA 250 MW (1%)* 13 years Oman Sohar Aluminium smelter Non-operated; 40% TAQA 1,000 MW *** / 375k tons aluminium per year Captive Saudi Arabia Jubail Energy gas-fired power and steam plant Non-operated; 25% TAQA 250 MW (1%)* / 510 tons per hour of steam 6 years United Arab Emirates 12 gas-fired and renewable power and water plants Non-operated; 40-100% TAQA; 0-20% Other GRE; 40% Int’l Partners** 18,041 MW (82%)* / 913 MIGD (100%) 13 years weighted average Iraq Atrush block in Kurdistan Region of Iraq TAQA-operated; 7,137 boepd (6%)* 100% crude 2P reserves: 30mn boe (8%)* UK / the Netherlands Oil and gas assets (off and onshore) TAQA-operated and non-operated 39,021 boepd (31%)* 80% crude / 19% gas / 1% NGL 2P reserves: 64mn boe (17%)* Two gas storage facilities GSB (60% TAQA), PGI (40%); Gas storage capacity: 4.6 bcm (50 TWh) Ghana Takoradi gas-fired power plant TAQA-operated; 90% TAQA 330 MW (2%)* 21 years Morocco Jorf Lasfar coal-fired power plant TAQA-operated; 86% (units 1-4), 91% (units 5-6) 2,056 MW (9%)* 24 years United States Red Oak gas-fired power plant (New Jersey) Non-operated merchant asset; 85% TAQA 832 MW (4%)* 3 years (tolling agreement) Lakefield wind farm (Minnesota) Non-operated; 50% TAQA 206 MW (1%)* 12 years Canada Oil and gas assets TAQA-operated and non-operated 78,260 boepd (63%)* 18% crude / 68% gas / 14% NGL 2P reserves: 285mn boe (75%)* United Arab Emirates Transmission and distribution Operated; 100% TAQA ~100,000 km power and water networks

SLIDE 12

TAQA at a glance (cont’d)

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Our Abu Dhabi and UAE home markets

Power (renewable) Power and Water (cogeneration) Transmission and Distribution

Plant name TAQA and GRE ownership Power / water (installed capacity^) Fuel / desalination technologies (as applicable) (P)(W)PA residual life (as at 31/12/2019)

Water

Fujeirah F1 60% TAQA 882 MW / 131 MIGD Gas / MSF, RO; 16 years Fujeirah F2 60% TAQA 2,114 MW / 132 MIGD Gas / MED, RO; 11 years Fujeirah F3 (under construction) 40% TAQA, 20% Mubadala 2,400 MW Gas; 25 years (from PCOD, expected 2023) Taweelah A1 60% TAQA 1,671 MW / 84 MIGD Gas / MSF, MED; 9 years Taweelah A2 60% TAQA 760 MW / 53 MIGD Gas / MSF; 2 years Taweelah B 60% TAQA 2,220 MW / 162 MIGD Gas / MSF; 9 years Taweelah RO (under construction) 20% TAQA, 40% Mubadala 68 MW / 200 MIGD Solar PV / RO; 30 years (from PCOD, expected 2022) Shuweihat S1 60% TAQA 1,615 MW / 101 MIGD Gas / MSF; 5 years Shuweihat S2 60% TAQA 1,627 MW / 101 MIGD Gas / MSF; 17 years Shuweihat S3 60% TAQA 1,647 MW Gas; 20 years Umm al Naar 60% TAQA 2,290 MW / 96 MIGD Gas / MSF; 8 years Al Mirfa (MIPCO) 60% TAQA 1,665 MW / 53 MIGD Gas / MSF, RO; 23 years AMPC (Al Ain & Madinat Zayed) 100% TAQA 373 MW Gas; 1 year Abu Dhabi Dubai Sharjah Ajman Umm Al Quwain Ras al Khaimah Sweihan PV 60% TAQA 1,177 MW (DC) Solar PV; 24 years Al Ain Interconnection to Oman (GCCIA) Interconnection to Saudi Arabia (GCCIA) Al Dhafra PV (under construction) 40% TAQA, 20% Masdar 2,000 MW (DC) Solar PV; 30 years (from PCOD expected 2022)

Power (thermal)

Transmission (Transco) 100% TAQA 76.4 kGWh / 255 kMIG Distribution (ADDC & AADC) 100% TAQA 41.7 kGWh / 200 kMIG ~1 million customers Asset name TAQA ownership 2019 power / water transmitted or distributed Other details

SLIDE 13

largely contracted fully contracted

Generation(2)

TAQA segmental overview and financial highlights

Vertically integrated across the utilities value chain

FY19 PF EBITDA (AED bn) and % of total 44.8

International Assets UAE Value Chain Operational highlights Segment Overview

13

• 18.0 GW / 913 MIGD gross

power / water capacity(4)

• 4.4 GW / 200 MIGD of new

power / water capacity under development

• 9.4k km of electricity

transmission networks, 3.6k km of water pipelines

• 76.4k GWh / 255k MIG

2019A power / water transmitted

• ~1 million customers
• 71.3k km of electricity

networks and 14.7k km

• f water pipelines
• 41.7k GWh / 200k MIG

2019A power / water distributed

• 3.9 GW(2) (4) gross power

generation capacity

• 124.4k boepd 2019A

net production

• 379mn boe 2019A

2P reserves

• 4.6 BCM gas storage

capacity(5)

• 22.0 GW / 913

MIGD capacity[4]

• ~80k / 20k km

electricity / water networks

• 12 I(W)PPs in UAE
• Exclusive rights to min.

40% stake in Abu Dhabi power and water generation projects over next 10 years

• Supplies >95%(6) of Abu

Dhabi’s power & water

• Regulated by Abu Dhabi

Department of Energy

• Sole transmission

company in Abu Dhabi

• Also supplies Northern

Emirates and connects to GCCIA grid (KSA, Oman)

• Sole distributors of water

and electricity to end users in Abu Dhabi emirate (ADDC, AADC)

• Includes power generation

facilities in 5 countries

• TAQA Morocco is listed on

the Casablanca stock exchange and provides >40% of Morocco’s base- load power needs

• International oil and gas

assets in the UK, Netherlands, Canada(7) and Iraq

• Fully integrated

utility with upstream and midstream oil and gas assets and operations in 11 countries.

Generation(1)

regulated networks

Transmission Distribution Oil & Gas Group (1)(2)(3) Countries

35%

6.5

27%

5.0

19%

3.5

6% 13%

1.2 2.5 AED 18.6

Source: TAQA 2019 AR, ADPower unaudited 2019 financials. Note: (1) EBITDA figures and operational highlights exclude Taweelah RO, Fujairah F3 and Al Dhafra Solar Project, (2) EBITDA figures exclude impact from associate investments in power generation (Lakefield, Jubail); EBITDA and

• perational highlights exclude TAQA’s minority stake in Sohar Aluminium (Oman), a smelter with a 1GW captive power generation plant; (3) Includes HoldCo level adjustments for EBITDA of AED -0.2bn; (4) Installed gross capacities at PCOD.

(5) Capacities at Bergermeer Gas Station & Peak Gas Installation in The Netherlands; (6) In early 2020, TAQA North exited all its oil and gas activities in the United States (a non-core region with mature assets and production of less than 1,000 boepd). (7) Excluding captive power generation, e.g. EGA, ADNOC

SLIDE 14

29% 57% 14%

Contracted Regulated Other

14

Highly predictable and secure cash flow profile

Over 85% of revenues and EBITDA derived from regulated and contracted businesses

Pro forma 2019 Revenue Pro forma 2019 EBITDA

AED 44.0bn(1) AED 18.6bn(1)

Regulated and long-term contracted earnings represent ~85% of Revenues & EBITDA Over 13 years(2) weighted residual life of P(W)PAs excluding projects under development. The latter will have 25 or 30-year purchase agreements once completed in the next 2-3 years Single regulatory framework in place for 3 regulated networks (Transco, ADDC and AADC) in Abu Dhabi which ensures predictability of cash flows

Source: TAQA 2019 AR, ADPower unaudited 2019 financials. Note: (1) Revenues and EBITDA include impact of HoldCo costs and intercompany eliminations of ~AED5.0bn and ~AED0.2bn respectively. (2) Weighted by gross installed power capacity and excluding Red Oak tolling agreement (merchant asset)

• Contracted: Local and international power generation assets
• Regulated: TransCo and 2 DisCos
• Other: Oil and Gas

Long-term predictability and visibility of cash flow profile underpinned by ~85% of revenues and EBITDA derived from regulated and contracted assets

P P P

41% 46% 13%

Contracted Regulated Other

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15

Current growth projects

Significant generation capacity and network additions

Overview 44.8 Al Dhafra PV Taweelah RO Project cost Sponsors

• World’s largest sea-water

reverse osmosis plant (44% larger than current largest plant)

• 200 MIGD water desalination

capacity

• 68 MW onsite (captive) solar PV

power generation capacity

• World’s largest solar

photovoltaic plant

• 2 GW (DC) power generation

capacity

• One of the most cost-competitive

tariffs at US$ 1.35 cents/kWh (levelized cost of electricity basis)

• UAE’s largest gas-fired (CCGT)

independent power project (IPP)

• 2.4 GW power generation capacity
• One of the most efficient in the

region

• Two projects to distribute recycled

water beyond municipal landscaping to include commercial and agricultural operations

• Capacity to distribute 85 MIGD of

recycled water

• 150 km of pipelines in two phases
• 4.4 GW / 200 MIGD

additional generation capacity

• Substantially de-

risked financial profile(1): − Long-term PWPAs with EWEC (Abu Dhabi govt. owned) − Contractual prot- ection for cost risks (e.g. fuel, O&M) − LTSAs with OEMs for turbines

• AED 3.2 billion
• Not yet disclosed (financing

expected in Q3 2020)

• AED 4.2 billion
• 40% lower than average fleet cost
• AED 900 million
• 2022 with 30-year WPA
• 2022 with 30-year PPA
• 2023 with 25-year PPA
• Q3 2021 (30 MIGD pipeline)
• Q4 2021 (55 MIGD pipeline)
• 20% TAQA, 40% Mubadala,

40% ACWA Power

• 40% TAQA, 20% Masdar,

20% EDF, 20% JinkoSolar

• 40% TAQA, 20% Mubadala,

40% Marubeni

• Not applicable

Generation Group Country Fujairah F3 Distribution Recycled Water Distribution Expected PCOD New capacity and network additions to meet growing demand and energy transition requirements

Note: (1) For generation projects, as for existing UAE generation fleet

SLIDE 16

60.5 7.4 67.9 9.1 9.4 18.6

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Improved capital structure following ADPower reverse merger

Higher cash flow generation, significantly lower leverage and improved liquidity

Source: TAQA 2019 AR, ADPower unaudited 2019 financials. Note: (1) Total Debt of AED73.0bn after deducting prepaid finance cost. (2) Includes transmission, distribution and generation assets received from ADPower.

TAQA (post transaction) Net Debt 2019A and PF(1) (AED bn) EBITDA 2019A and PF (AED bn) Immediate deleveraging and strong highly predictable cash flow generation to underpin stable financials

P

TAQA’s pro forma EBITDA for 2019 will double with the share of regulated and contracted EBITDA exceeding 85%

P

Improved liquidity of TAQA due to high cash flow generation and low leverage of new asset portfolio

P

TAQA (before transaction) 6.6x ADPower assets(2) 0.8x 3.7x Net Debt / EBITDA (x) Lower leverage resulting in standalone investment grade profile

SLIDE 17

Favourable ratings outcome post-transaction

Improved business profile acknowledged through extraordinary upgrade of TAQA’s standalone ratings

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• Transaction significantly enhances asset portfolio by the addition of the

transmission and distribution assets to its generation assets and creating a leading integrated utility in the Emirate of Abu Dhabi

• Higher ownership and strategic nature of TAQA operations strengthens

importance to Abu Dhabi

• The transfer of assets significantly improves TAQA's financial profile

through improved leverage metrics post transaction

Very Strong assessment of the support track record and expectations factor is driven by consistent, timely and large-scale tangible support provided by Abu Dhabi to TAQA …. upgrade is supported by the strengthening of the links under Fitch Government-Related Entities Rating criteria between TAQA and its majority indirect shareholder Abu Dhabi (AA/Stable).

• Asset transfers to TAQA improves its position in electricity generation

and water desalination, and secures a leadership position in the water and electricity sector in Abu Dhabi

• TAQA to enjoy a pronounced importance to Abu Dhabi's electricity and

water markets, UAE Energy Strategy 2050, and its role in diversifying the Emirates' generation towards renewables

• Maintains moderate level of leverage

[Moody’s] consider the asset transfer as a form of financial support from the government to TAQA because it will significantly improve its capitalisation …. Given the highly strategic nature of these operations in an arid and harsh desert climate, [Moody’s] expect the government to continue to support TAQA's operations.

Highlights

3-notch upgrade to AD ratings less 1 notch 6-notch upgrade Standalone ratings b1 Standalone ratings baa1 Final ratings A3 / Stable Final ratings Aa3 / Stable 2-notch upgrade to AD ratings less 1 notch 7-notch upgrade Standalone Ratings ‘b’ category Standalone Ratings bbb+ Final Ratings A / Stable Final Ratings AA- / Stable Obtained rare rating upgrade during COVID-19 Almost unprecedented 3-notch upgrade )by Moody’s) Narrowed rating differential to Abu Dhabi sovereign to only 1 notch

SLIDE 18

0% 1% 2% 3% 4% 5%

• 0.2%

0.2% 0.6% 1.0% 1.4% 1.8% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20

Yield Yield spread

TAQA 2030 vs. Mubadala 2028 (& 2030*) TAQA 2030 vs. Abu Dhabi 2029 (& 2030**) TAQA 4.875% 2030 yield (RHS) 2 4 6 8 10 12 50% 100% 150% 200% 250% 300% 350% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20

Daily traded value (USDmn) Price (indexed)

Traded Value (USDmn; RHS) TAQA share price (rebased) ADX General Index (rebased)

3 Feb Announcement 29 Apr AGM Approval 1 July Closing

TAQA shares and bonds have reacted positively

18

Source: Bloomberg, as of 12 August 2020

Share price has rallied and daily value traded significantly increased

• TAQA’s share price has tripled )up ~200%) since deal announcement
• ADX market index down 16% over the same period
• Average value traded up from US$ 1-2mn to US$ 3-5mn

Bond yields improved and spreads to Mubadala and Abu Dhabi tightened

• TAQA bonds now pay only 0.17% and 0.29% more than the Abu Dhabi sovereign

for 10 and 30-year borrowing (versus a 0.75% and 0.60% premium pre-merger)

• TAQA bonds are currently trading flat to Mubadala’s curve, which is rated at the

sovereign level but trades at a spread to it

• TAQA 10-year bonds currently yield 1.855% and 30-year bonds 2.850%

AED 1.39

(+196% vs Feb 3) Source: Bloomberg as of 12 August 2020 * Starting 18 May 2020 as new on-the-run benchmark; ** starting 14 April 2020

Spread to AD 17bps (-0.61pp) Yield 1.855% (RHS)

(-1.24pp vs Feb 3)

ADSMI (-16%)

3 Feb Announcement 29 Apr AGM Approval 1 July Closing

Spread to Mubadala

• 4bps (-0.49pp)

SLIDE 19

Q&A session

SLIDE 20

Appendix A

H1 2020 operational data for TAQA pre-transaction close

SLIDE 21

Operational data

Power & Water KPIs

21

UAE domestic plants Q2 2019 Q2 2020

Power generation (GWh) 17,523 17,572 Water desalination (MIG) 62,775 64,759 Technical availability (%) 98.6 98.3

International plants

Power generation (GWh) 7,001 5,916 Technical availability (%) 90.2 94.3

Global power and water

Power generation (GWh) 24,524 23,488 Water desalination (MIG) 62,775 64,759 Technical availability (%) 97.2 97.6

SLIDE 22

Operational data

Oil & Gas production

22

North America Q2 2019 Q2 2020

Crude oil (mbbls/day) 14.0 12.1 Natural gas (mmcf/day) 325.5 303.3 Natural gas liquids (mboe/day) 10.7 9.9 Average (mboe/day) 79.0 72.5

Europe

Crude oil (mbbls/day) 31.9 34.5 Natural gas (mmcf/day) 34.8 31.9 Natural gas liquids (mboe/day) 0.4 0.1 Average (mboe/day) 38.1 40.0

Iraq

Crude oil (mbbls/day) 5.8 10.7

Total Production

Crude oil (mbbls/day) 51.7 57.3 Natural gas (mmcf/day) 360.3 335.2 Natural gas liquids (mboe/day) 11.2 10.0 Average (mboe/day) 122.9 123.1

SLIDE 23

Operational data

Oil & Gas average pricing

23

North America Q2 2019 Q2 2020

Crude oil (US$/bbl) 49.9 16.7 Natural gas (US$/mcf) 1.4 1.6 Natural gas liquids (US$/boe) 23.2 12.4 Average (US$/boe) 17.9 11.2

Europe

Crude oil (US$/bbl) 66.9 23.5 Natural gas (US$/mcf) 4.5 1.7 Natural gas liquids (US$/boe) 65.7 21.0 Average (US$/boe) 62.2 20.3

Iraq

Crude oil (US$/bbl) 53.7 13.1

Global

Crude oil (US$/bbl) 61.8 18.6 Natural gas (US$/mcf) 1.7 1.6 Natural gas liquids (US$/boe) 24.7 12.8 Average (US$/boe) 35.3 13.3

SLIDE 24

Operational data

Oil & Gas netbacks

24

North America 6m 2019 6m 2020

Gross price (US$/boe) 19.6 13.8 Royalties (US$/boe) 1.6 0.9 Net sales price (US$/boe) 18.0 12.9 Operating costs (US$/boe) 7.3 6.1 Operating netback (US$/boe) 10.8 6.7

Europe

Gross price (US$/boe) 60.2 37.8 Royalties (US$/boe)

• Net sales price (US$/boe)

60.2 37.8 Operating costs (US$/boe) 30.8 31.0 Operating netback (US$/boe) 29.4 6.8

SLIDE 25

Appendix B

Additional slides related to new TAQA overview section

SLIDE 26

Abbreviations used

26

• AADC: Al Ain Distribution Company
• ADDC: Abu Dhabi Distribution Company
• CCGT: Combined Cycle Gas Turbines
• DC: Direct Current
• DisCo: Distribution Company
• EWEC: Emirates Water and Electricity Company
• GCCIA: Gulf Cooperation Council Interconnection Authority
• IPP: Independent Power Producer
• IWPP: Independent Water & Power Producer
• LTSA: Long-Term Service Agreement
• MED: Multiple-Effect Distillation (desalination)
• MSF: Multi-Stage Flash (desalination)
• O&G: Oil and Gas
• O&M: Operations and Maintenance
• PCOD: Plant Commercial Operations Date
• PV: Photovoltaic
• RO: Reverse Osmosis (desalination)
• TransCo: Transmission Company
• Transco: Abu Dhabi Transmission and Despatch Company

SLIDE 27

For investor enquiries, please contact Investor Relations: Shadi Salman, CFA (ir@taqa.com)