contourglobal investor presentation...certain statements in this presentation are “forward-looking...
TRANSCRIPT
ContourGlobal
Investor Presentation May 2019
Disclaimer
The information contained in these materials has been provided by ContourGlobal plc (“ContourGlobal” or the “Company”) and has not been independently verified.No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of theinformation or opinions contained herein. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete orcomprehensive analysis of the Company’s financial position or prospects. The information and opinions contained in these materials are provided as at the date ofthis presentation and are subject to change without notice. Neither the Company nor any of its affiliates, advisors or representatives shall have any liabilitywhatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with thispresentation.
Certain statements in this presentation are “forward-looking statements.” All statements other than statements of historical facts included in this presentation,including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, areforward-looking statements. These statements involve a number of factors that could cause actual results to differ materially, including, but not limited to, changesin economic, business, social, political and market conditions, success of business and operating initiatives, and changes in the legal and regulatory environment andother government actions. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation thatsuch trends or activities will continue in the future. Any forward-looking statement made during this presentation or in these materials speaks only as of the date onwhich it is made. The Company assumes no obligation to update or revise any forward-looking statements.
Information contained herein relating to markets, market size, market share, market position, growth rates, penetration rates and other industry data pertainingto the Company’s business is based on the Company’s estimates and is provided solely for illustrative purposes. In many cases, there is no readily available externalinformation to validate market-related analyses and estimates, thus requiring the Company to rely on internal surveys and studies. The Company has also compiled,extracted and reproduced market or other industry data from external sources, including third parties or industry or general publications, for the purposes ofits internal surveys and studies. Any such information may be subject to significant uncertainty due to differing definitions of the relevant markets and marketsegments described.
This presentation contains references to certain non-IFRS financial measures and operating measures. These supplemental measures should not be viewed in isolationor as alternatives to measures of the Company’s financial condition, results of operations or cash flows as presented in accordance with IFRS in its consolidatedfinancial statements. The non-IFRS financial and operating measures used by the Company may differ from, and not be comparable to, similarly titled measures usedby other companies. The non-IFRS adjustments for all periods presented are based upon information and assumptions available as of the date of this presentation.
2
3
I. Business Highlights
Asa Branca Wind Farm (Brazil)
4
Business HighlightsWell established power generation company with exceptional growth and dividend profile
1) Run-rate includes full year contribution of Mexico CHP acquisition on the basis of a first full year EBITDA of $110m2) 2014 – 2018 annualized growth rate of Adjusted EBITDA, with 2018 Adjusted to include a full year of Spanish CSP earnings (unadjusted growth rate of 19%)3) Based on 2018 $90m dividend divided by May 10th 2019 close of 203.50
Focused Business Model: (i) to acquire or develop and (ii) to provide continuous sustainable performance improvement of long term contracted power generation assets
Long term contracts and regulated tariffs with significant risk mitigation delivering stable and secure cash flows
Diversified footprint by geography and technology: all assets less than 20% group EBITDA
Proven track record of value accretive growth through both operationally lead acquisitions and greenfield development, with attractive M&A and development pipeline
Appropriate Capital Structure: primary use of non-recourse debt financing provides significant protection to equity investor
High cash flow conversion and exceptional combination of dividend growth: underlying assets distributing +$275m cash per year to parent.
Strong Social Engagement: Embracers of the United Nations Global Pact (UNGC) Principles since 2010, having invested $2.4 million in 122 social projects in 2018
$760 – 810m run-rate EBITDA1
+20% EBITDA growth rate²
5.1% dividend yield³
10% p.a. dividend growth target
4.8 GW contracted generation
(1) Includes full year earnings of Spanish CSP, which was acquired in May 2018 (+$40m of Adjusted EBITDA based on FY earnings)(2) CFADS as defined in Bond Indenture post cash overhead at the corporate level divided by corporate bond interest(3) Net corporate debt divided by CFADS plus distributions from Solar Italy farm down
Adj. EBITDA
+19% growth vs. 2017A$610m
Prop. Adj. EBITDA
+23% growth vs 2017A$536m
Net Debt/ Adj. EBITDA
4.0x-4.5x target4.4x1
DSCR>5-6x Credit Rating Upgrade Threshold
6.1x2
2018 Key Financial Metrics
FFO $302m +18% growth vs. 2017A
+18% growth vs. 2017AHoldCo Net Leverage
2.2x3Sustainable leverage
2018 Financial Snapshot Delivering on our IPO commitments
Adj. EBITDA Growth
305 331440
513610
150
2014 2015 2016 2017 2018 2022Target
2014-2018 CAGR 19%
Significant M&A and development pipeline with ~1.0 GW of advanced stage opportunities
Run-rate 2018 EBITDA
5
Dividend+12.5% growth from
2018 guidance$90m
✓ Long-term contracts typically with state-owned or supported utilities or large investment grade companies, or stable regulatory regimes (avg. credit rating BBB-)
✓ Typical Thermal PPAs virtually eliminate commodity risk via fuel and CO2 emissions costs pass-through mechanisms
Limited
Credit Risk
Limited Duration
Risk
No
Cost Risk
No
Price Risk
✓ Long-term contracts, weighted average remaining contract life of 12 years
✓ Fixed-price contracts that typically contain inflation pass-through terms
Contract Structure Differs between technologies✓ Thermal: No volume risk; plants paid full capacity payment irrespective of off-taker demand✓ Renewables: Plants typically paid set price based on MWh produced
Negligible Revenue /
Volume Risk
6
High-Quality and Stable BusinessesFixed-price, long-term contracts or regulation, with credit worthy off-takers.
✓ Policy of putting political risk insurance with US government or AAA private insurers, whenever investing in sub-investment grade countries
Mitigated Political Risk
7
Diversified: technology, geography and currencyOur business model and strongly diversified asset base lead to resilient financial performance
17%
17%
15%6%
13%
24%
8%
High Efficiency CoGen (NG) Coal
Natural Gas Fuel oil
Wind Solar
Hydro
24%
11%
18%14%
14%
9%
10%
Spain Western Europe
Eastern Europe Brazil
Mexico Other LatAm
Africa
55%30%
8%5%
2%
EUR USD BRL BRL Hedged Other
FY 2018 PF Adj. EBITDA1 by Technology FY 2018 PF Adj. EBITDA by Geography FY 2018 PF Adj. EBITDA by Currency
1. FY 2018 Pro Forma Adj EBITDA = actual EBITDA for FY 2018 + pro forma adjustment for a full year contribution from our Spanish CSP assets + pro forma adjustment for expected run-rate annual contribution from our Mexican CHP assets ($110 million; signed but not closed yet)
Renewable45%
HE Cogen17% Europe
53%
LatAm37%
Africa10%
Thermal38%
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II. Growth
Orellana CSP solar farm (Extremadura, Spain)
260305 331
440
513
2013 2014 2015 2016 2017 2018 Run-rate 2022E
9
Continuing to Deliver on our IPO growth commitmentsGrowth in 18 months has added ~$250m EBITDA on a consolidated adjusted run-rate basis. Ready to execute on attractive pipeline going forward.
2013-2017 CAGR 19%
We Deliver. Attractive high return opportunities showcased at IPO have been executed in first year.✓ 250 MW Spanish CSP closed in May 2018; signed minority sell-
down at 2x investment multiple
✓ 518 MW Mexico Cogen: signed Jan 2019
✓ Solar Roll Up: ~50 MW growth by Jan 2019
✓ Kosovo: commercial close 2 months post IPO
✓ Minority sell-downs to recycle capital
Ready to Execute Attractive Pipeline
• Significant M&A and development pipeline with ~ 1.0 GW of advanced stage opportunities
• Wind repowering investment projects
• Solutions cogeneration business expansion
• Kosovo greenfield development
1) Double run-rate Adjusted EBITDA target is taking 2017 EBITDA as reference point
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Improving cost structure while increasing operational performance
Proven track-record of creating significant value in acquisitions through operational improvement
Asset Size Plant Type
908 MW LigniteMaritsa
800 MW Gas-firedArrubal
150 MW WindAustria Wind
65 MW Solar PVSolar Italy
28 MW Wind & HFOBonaire
250 MW Solar CSP Spanish CSP
Fixed Cost Reduction AvailabilityOther Operational Improvements
✓
✓
✓
✓
✓
✓
22%
20%
32%
16%
26%
12%
✓
✓
✓
✓
✓
✓
2%
2%
1%
3%
2%
4%
€2m fuel savings✓
✓ Insourced Operations: Zero LTI
✓ Repowering
O&M insourcedSell-down of 49% of asset for ~2x net equity value✓
Zero LTIs since 2015✓
Sell-down of 49% of asset for ~2x net equity value✓
Value Lever
513
610
2017 2018 2019 Run-rate Double Adj.EBITDA
Investing in selective profitable growth to achieve target of doubling 2017 Adj. EBITDA
• Introducing Proportionate Adj. EBITDA metric as an additional metric given farm downs
• Resilient Balance Sheet with $337m parent-level and $697m total cash (excluding the proceeds of the CSP farm downannounced in December 2018 and expected to close in Q2 2019 (€134m)). No incremental equity required to deliverremaining growth while accelerating dividend
Adj. EBITDA close to doubling the 2017A Adj. EBITDA ($m) Prop. Adj. EBITDA ($m)
(1) Guidance includes acquisition of Mexico CHP assuming closing in June 2019 and ~$50m of gain on CSP Spain farm down expected to close in Q2 2019(2) Run-rate includes full year contribution of Mexico CHP acquisition on the basis of a first full year EBITDA of $110m
$720-$770Guidance1
$760-$810Run-rate2
434
536
2017 2018 2019 Run-rate DoubleProp. Adj.
EBITDA
11
Mexican Cogeneration Business AcquisitionSigned in Jan 2019 on Track for COD and Close in H1 2019
• Acquisition of natural-gas fired combined heat & power assets for518MW of operational capacity at completion, potential for afurther 414MW in development
• Successful COD condition precedent to transaction close. Alpekremains with construction risks
• Estimated Adj. EBITDA of $110m in first full year of operations
• Acquisition value was of $724 million paid in cash, with anadditional payment at closing estimated at $77m of VAT(refundable in full within 12 months)
• $590m project financing underwritten by Scotiabank to besyndicated in Q2
• On track for 90% contracted revenues at transaction close
Overview of Assets
CGA I: 414 MW Plant under commission
Transaction Highlights and Update:
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EPC Contract
• General Electric selected as Preferred Bidder for EPC and Long-Term Maintenance (LTM) provider
• State-of-the-art coal plant in accordance with EU and OECD Best Available technology
Financing
• Mix of Development Finance Institutions (“DFI”) and Export Credit Agencies (“ECA”)
• Financial Close expected to H2 2019
Political Risk Insurance (“PRI”)
• Preliminary agreements totaling €360m
• Expect to execute final PRI package around financial close
Kosovo ProjectEconomic and Environmental Imperative Greenfield Project in a fast-growing country
Major Milestones
Project Agreements Effective Date May-2018
EPC Selection Announcement May-2019
Financial Closing and Notice to Proceed (NTP) H2 2019
Commercial Operations Date 2023
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• Persistent shortages and unreliable electricity supply incurring costs of more than €300 million to the economy
• The new Kosovo plant will boost growth by ~2% in mid-term, on top of the forecasted 4.5% growth to 2022.
• Kosovo’s current plant is the most polluting in Europe,contributing to one of the highest rates of prematuredeaths in the continent
• New plant will significantly decrease all emissions,resulting in significantly improved environmental andhealth outcomes
Significant Reduction in Pollution Will Improve Environment and Population Health
Reliable Electricity Supply Will Remove Major Impediment to Development
Kosovo A Plant to be decommissioned at COD of new Kosovo plant
European Solar Platform Growth PlanHighly attractive valuation of minority farm downsPartnerships with high quality investors accelerate growth
• In H2 2018 ContourGlobal signed two minoritystake farm downs to Credit Suisse EnergyInfrastructure Partners (“CSEIP”)
(1) Purchase price at closing including locked box interest and upfront payment of expected refinancing proceeds. Closing happened in October 2018 (2) Farm down to close in Q2 2019(3) Includes 12MW Italian acquisition signed in February 2019 and to be closed in April 2019
• Agreement for future acquisitions anddevelopments in Solar Italy, plus a significantlydecreasing cost structure combined withincrease in operational metrics, furtheraccelerates growth expectations for business
• Partnership combines extensive industrynetwork, considerable transaction experienceand sector specific knowledge of two leadinginstitutions
CSEIP Partnership helps power future growth plan:
Farm downs crystalize high value of underlying assets:
Assets Stake Sold Purchase Price Net Equity Multiple
Italy + Slovakia 49% EUR 63m1 2.3x
Spain 49% EUR 134m2 1.9x
Portfolio Growth Plan (in MW):
• 40% capacity growth from 2017 to 2018
• Target is to more than double current portfolio until end of 2022
50
27
77 77
150
3535
35
7 7
7
8534 119
269
2017 2018 Current Portfolio Target
Italy Pipeline Slovakia Romania
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3
15
Substantial Progress on Wind Repowering in AustriaTechnological advancements will increase the production of Phase I by 80%
• 149 MW wind portfolio in Austria to be repowered over 2 phases
• Repowering enables wind farms to significantly increase production and be granted additional attractive Feed-in-Tariff for 13– 20 years
• Significant higher energy production will drive an annualized EBITDA increase of approx. €5m for Phase I and of approx. €10mfor Phase II
Pre-Repowering Post-Repowering
Production (GWh, P50) FiT Expiry
Production (GWh, P50) CAPEX COD New FiT
Repowering Phase I (23 MW)
44.8 2016-2017 80.9(+80%)
€43m fully funded Jan-2019 (complete) and Q2 2019
Term: 13 yearsAverage Secured tariff of €87.4/MWh
Repowering Phase II (50 MW)
113.0 2017-2023 164.1(45%)
€71-82m (expected) 2022-2024 Term: 13 years
FiT Expiry 2026+ (76 MW)
176.4 2026+ Assessment in 2024
Scharndorf Repowering
Decommissioning of old turbines in Velm-Götzendorf
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16
III. 2018 Operational and Financial Performance
KivuWatt - Methane Gas Extraction Facility & Power Plant (Rwanda)
256 302
2017 2018
434
536
576
2017 2018
513
610
650
2017 2018
Robust Financial PerformanceSignificant growth in Adjusted EBITDA, Proportionate Adjusted EBITDA and FFO
(1) Adjusted EBITDA and FFO are non-IFRS measures as defined in IPO Prospectus(2) Growth calculated between 2017 and 2018 including full year contribution of Spanish CSP(3) Pro forma numbers: Adjusted to reflect full year contribution of Spanish CSP.
Adjusted EBITDA1
($m)
+27%2 +29%2
FFO1
($m)
3
2018 Adj. EBITDA of $610m within the guidance range of $600-630m
Proportionate Adjusted EBITDA($m)
3
+33%2
17
330³
High Margins Related to Sector and Continued Focus on Cost Efficiencies Gains
31.0%
27.7%
28.8%
2016 2017 2018 2019E
27 – 28%
✓Continued focus on strong margins and efficient cost structures through streamlined operations
✓~350bps decrease in Fixed Cost / Variable margin vs. 2016 levels on a run-rate basis
✓100bps increase in 2018 partially caused by increased overhead costs resulting as a public listed company
18
Competitive Cost Structure and EBITDA Margins Relative to Sector11
1. Thermal and Renewable margins include corporate SG&A fully allocated proportionately to each division
Fixed Costs to Variable Margin (%)
~ 350 b.p.
16%
40%
49%
80%
ThermalPeers
CG Thermal RenewablePeers
CGRenewable
24%
31%
Optimized Debt/Capital StructureLong-term non-recourse Project Finance at asset level shows sustainable debt ratios and significant dividend coverage at corporate level
19
Asset levelSignificant recurring cash flow from asset to corporate level…
Corporate level
Distributions to Corporate Level:
$275m1
Cash overhead at Corporate Level:
($32m)
Corporate Bond Interest Costs: ($34m)
Cash available for investment and dividends:
$210m
Key Corporate Metrics
DSCR: 6.1x (7.3x including distributions from Solar Italy farm down)2
Net Corporate Leverage: 2.2x3
Dividend Cover: 2.3x4
…results in consistently high corporate interest cover and
sustainable corporate leverage
(1) Including Solar Italy farm down proceeds of $40m(2) CFADS as defined in Bond Indenture post cash overhead at the corporate level divided by corporate bond interest(3) Net corporate debt divided by CFADS plus distributions from Solar Italy farm down(4) CFADS plus distributions from Solar Italy farm down after corporate bond interest divided by dividend guidance ($90m in 2018)
Ample Cash Resources to Support Debt Service at Corporate Level and Future Growth • $2.9bn Net Debt as of December 31, 2018
• Committed to high value growth while maintaining strong BB credit ratings
• $414m liquidity at parent level, including $337m of cash and $77m undrawn capacity under our corporate level revolver. Thisis excluding the proceeds of the CSP farm down announced in December 2018 and expected to close in Q2 2019 (€134m)
Dec-18 NET DEBT – ($m)
2,695 2,863
865
(697)
ProjectDebt
CorporateDebt
Cash Net DebtDec-18(IFRS)
20
Dec-18 LIQUIDITY – ($m)
360
774
337 77
AssetLevel Cash
HoldCoLevel Cash
RevolvingCreditFacility
TotalLiquidityDec-18
Adj. IFRS Net Debt / Adj. EBITDA1, 2
4.6x
4.1x 4.4x
2016 2017 2018
3
(1) Adjusted Net Debt and Adjusted EBITDA are non-IFRS measures(2) ContourGlobal share of Net Debt at TermoemCali and Sochagota considered(3) Net Leverage Ratio includes full year earnings of Spanish CSP, which was acquired in May 2018 (+$40m of Adjusted EBITDA based on FY earnings)
IV. Appendices
Sao Domingos II Hydro Power Plant (Brazil) 21
Segment Facility / Project Name LocationGross Cap.
(MW)Number of
Assets Fuel Type1ContourGlobal
Ownership COD Power Purchaser PPA Expiration
Maritsa Bulgaria 908 1 Coal 73% 1978 NEK 2024
Arrubal Spain 800 1 Natural Gas 100% 2005 Gas Natural Fenosa 2021
TermoemCali Colombia 240 1 Natural Gas / Diesel 37% 1999 Various N/A
Sochagota Colombia 165 1 Coal 49% 1999 Gensa 20192
Togo Togo 100 1 Natural Gas / HFO / Diesel 80% 2010 CEET 2035
Cap des Biches Senegal 86 1 Oil /Natural Gas 100% Q2 2016 / Q4 2016
Senelec 2036
Energies Antilles / Energies St Martin
French Caribbean 35 2 HFO / LFO 100% 2000; 2003 EDF 2020; 2023
Bonaire Dutch Antilles 28 1 HFO / Wind 100% 2010 WEB 2025
KivuWatt Rwanda 26 1 Natural Gas 100% Q4 2015 EWSA (ex-Electrogaz & REC) 2040 (expected)
Total Thermal 2,388 10
Mexican CHP assets(5) Mexico 518 2 Natural Gas cogeneration 100% 2014/19 Mexican industrial/commercial N/A
ContourGlobal Solutions Europe – Nigeria –Brazil
132 11 Natural Gas / Diesel / LFO 100%;100%; 80% 1995-2015 Investment grade global industrial companies
2018-2032
Total High Efficiency Cogen 650 13
Chapada Complex Brazil 438 3 Wind 51%, 51%, 100% 2015; Q1 2016 CCEE; distribution companies 2035
Vorotan Armenia 404 1 Hydro 100% 1970 AEN 2040
CSP Portfolio Spain 250 5 CSP 100% 2010 CNMC 2034-2037
Hydro Brazil Brazil 167 9 Hydro 79%3 1963; 1992; 2009-2012
Distribution companies 2027-2042
Asa Branca Brazil 160 1 Wind 100% 2013 Distribution companies 2033
Austria Wind Austria 150 10 Wind 94% 2003-2014 OeMAG 2016-2027
Inka Peru 114 2 Wind 100% 2014 Distribution companies 2034
Solar Italy4 Italy 65 43 Solar 51% 2007-2013 Gestore Servizi Energetici S.p.A 2027-2033
Solar Slovakia Slovakia 35 3 Solar 51% 2010-2011 Distribution companies 2025-2026
Solar Romania Romania 7 1 Solar 100% 2013 Distribution companies 2028
InterPorto5 Italy 12 5 Solar 51% 2010-2011 Gestore Servizi Energetici S.p.A 2030-2031
Biogas Italy Italy 2 2 Biogas 100% 2013 Gestore Servizi Energetici S.p.A 2028
Total Renewable 1,804 85
Total portfolio 4,842 108
ContourGlobal Portfolio
Thermal Renewables
(1) HFO refers to heavy fuel oil, and LFO to light fuel oil. (2) CES has already signed 4 contracts to replace existing PPA, extending expiration to 2024, with an additional 5 year extension expected(3) Capacity weighted(4) Italian solar assets in 19 clusters(5) Signed but not closed. After closing, InterPorto will be part of Solar Italy
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23
ContourGlobal Footprint: 4.8GW in 19 Countries
ARRUBAL
800 MW – SPAIN
CSP COMPLEX
250 MW – SPAIN
MARITSA
908 MW – BULGARIA
INKA
114 MW – PERU
BRAZIL WIND
598 MW
VOROTAN
404 MW – ARMENIA
BRAZIL SOLUTIONS
76 MW
LEGENDThermal Solar
Wind Hydro
High Efficiency Cogen / Energy Solutions business
CARIBBEAN
165 MW
BRAZIL HYDRO
167 MW
CHP COMPLEX
518 MW – MEXICO
SOLAR ITALY
65 MW
AUSTRIA WIND
155 MW
Africa228 MW | 10% EBITDA
Europe2,675 MW | 53% EBITDA
LatAm1,931 MW | 37% EBITDA
(1) FY 2018 Pro Forma Adj EBITDA = actual EBITDA for FY 2018 + pro forma adjustment for a full year contribution from our Spanish CSP assets + pro forma adjustment for expected run-rate annual contribution from our Mexican CHP assets ($110 million; signed but not closed yet)
(2) Credit rating of off-takers in instance of PPAs, or credit rating of country in instance of FiTs or regulated assets
FY 2018 PF Adj. EBITDA1 by Offtaker2 FY 2018 PF Adj. EBITDA1 per Asset
16%
15%
13%
8%6%
42%
Spanish CSP Maritsa Mexico CHP
Arrubal Solar Europe PV Others
Remaining 42% from over 50+ assets
Strong credit quality across assetsAverage Off-taker Credit Rating of BBB- with High Business Diversification
24
59%29%
13%
Investment Grade
Non-Investment Grade with PRI
Non-Investment Grade without PRI
202
309
10 2
104 21
(23)
(7)
Adj. EBITDA 2017 Wind availability Wind resource Other Organic Acquisitions Farm-downs FX Impact andOther
Adj. EBITDA 2018
332 327
12
(10) (6)
Adj. EBITDA 2017 Maritsa French Caribbean FX Impact and Other Adj. EBITDA 2018
Successful Integration of New Assets Drives GrowthAdjusted EBITDA bridges
ADJUSTED EBITDA – THERMAL DIVISION ($m)
ADJUSTED EBITDA – RENEWABLE DIVISION ($m)
1
1
1
(1) Before Corporate Costs. 2017 Renewable EBITDA adjusted for reallocation between Renewable HoldCos and Corporate Overhead of approx. $9m(2) Spanish CSP Acquisition closed on May 10th 2018. Solar Italy and Biogas portfolio closed on December 4th, 2017 and March 22nd, 2018. Hydro Brazil closed on March 17th, 2017(3) Solar Italy and Slovakia farm downs closed on October 17th, 2018
1
53% increase
2%decrease
Better EAF in Brazil Wind
($20m) in Brazil Wind and ($3.5m) in Austria wind slightly offset by Peru Wind
Spanish CSP, Solar Italy and Biogas, Hydro Brazil2
Cash gain on 49% divestment of Solar Italy and Slovakia portfolios3
Change in revenue recognition standard and
policy (IFRS15)
One-off reversal of bad debt provision in 2017
25
Eurobond Refinancing HighlightsAverage debt maturity extended to almost 10 years, interest cost reduced, corporate debt term extended
(1) Adjusted Net Debt and Adjusted EBITDA are non-IFRS measures(2) ContourGlobal share of Net Debt at TermoemCali and Sochagota considered(3) Net Leverage Ratio includes full year earnings of Spanish CSP, which was acquired in May 2018 (+$40m of Adjusted EBITDA based on FY earnings)(4) Weighted average cost of debt excludes inflation CPA adjustment on Brazil debt as this component is effectively passed through to revenue through PPA tariff structure
3
Weighted average cost of debt (%)4
Weighted average outstanding life of debt (years)
4.8%4.5%
2017 2018
8.3
9.9
2017 2018
• July 2018 refinancing of corporate bond to reduce annualized corporate interest costs by $10m per annum
26
Adj. IFRS Net Debt / Adj. EBITDA1, 2
4.6x
4.1x 4.4x
2016 2017 2018
Net Leverage Ratio1 DSCR1
In $m or multiple
Continued Strong Bond Credit Metrics
202
301
237 232
291
203
32 33 41 41 43 34
6.3x
9.2x
5.7x 5.6x
6.8x
6.1x
(0.5x)
0.5x
1.5x
2.5x
3.5x
4.5x
5.5x
6.5x
7.5x
8.5x
9.5x
-
50
100
150
200
250
300
350
400
450
500
Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18
CFADS (LTM) Annualized Debt Service
DSCR Incurrence Level (2x min)
27
(1) DSCR and Leverage Ratio (Non-guarantor combined leverage ratio) as defined in Bond Indenture. Please see slide 31 for calculation of Bond Indenture Leverage Ratio, including Proportionate Adjusted EBITDA and NGPTI (Non-Guarantor Proportionate Total Indebtedness) (2) Includes distributions from Solar Italy farm down
2.0x
1.2x
2.2x
2016 2017 2018
2
Top Contributors to Adj. EBITDA
(1) EBITDA is calculated by asset excluding corporate costs and thermal and renewable holdcos(2) Includes Solutions Europe and Africa and Solutions Brazil(3) Includes Solar Italy, Solar Slovakia and Solar Romania
Top Contributors to Adj. EBITDA1 2016 2017 2018
Top contributors from Thermal fleet
Maritsa East III 117 125 120
Arrubal 62 61 63
ContourGlobal Solutions2 12 27 27
Cap des Biches 12 26 27
KivuWatt 22 24 26
Togo 21 25 25
Caribbean 21 27 24
Colombia 21 22 21
Others (0) 2 1
Top contributors from Renewable fleet
Spanish CSP – – 89
Brazil Wind 79 82 59
Brazil Hydro 9 28 41
Peru Wind 31 25 29
Vorotan 22 23 23
Austria Wind 23 25 20
Solar Europe, excl. CSP3 31 31 41
Total 485 553 638
28
Top Contributors to CFADS1
(1) CFADS (Cash Flows Available for (Corporate) Debt Service) as defined in Bond Indenture(2) Includes Solar Italy, Solar Slovakia and Solar Romania(3) Includes Solutions Europe and Africa and Solutions Brazil(4) $84m second instalment of acquisition payment not deducted from CFADS
Top Contributors to CFADS (Before Corporate and Other Costs)1 2016 2017 2018
Maritsa 118 30 65
Solar Europe excl. CSP2 22 55 38
Spanish CSP – – 35
Arrubal 19 28 18
Cap des Biches – 7 17
ContourGlobal Solutions3 28 41 15
Peru Wind 23 5 15
Brazil Hydros (1) 55 14
Vorotan 111 13 9
Togo 6 6 7
Caribbean 10 9 5
Austria Wind 7 8 4
KivuWatt – – 4
Colombia 4 8 4
Brazil Wind 2 5 (0)
Total before Corporate, Thermal and Renewable HoldCo costs
349 270 249
4
29
Disclaimer
30
The information contained in these materials has been provided by ContourGlobal plc (the “Company”) and has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial position or prospects. The information and opinions contained in these materials are provided as at the date of this presentation and are subject to change without notice. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
Certain statements in this presentation are “forward-looking statements.” All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, are forward-looking statements. These statements involve a number of factors that could cause actual results to differ materially, including, but not limited to, changes in economic, business, social, political and market conditions, success of business and operating initiatives, and changes in the legal and regulatory environment and other government actions. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Any forward-looking statement made during this presentation or in these materials speaks only as of the date on which it is made. The Company assumes no obligation to update or revise any forward-looking statements.
Information contained herein relating to markets, market size, market share, market position, growth rates, penetration rates and other industry data pertaining to the Company’s business is based on the Company’s estimates and is provided solely for illustrative purposes. In many cases, there is no readily available external information to validate market-related analyses and estimates, thus requiring the Company to rely on internal surveys and studies. The Company has also compiled, extracted and reproduced market or other industry data from external sources, including third parties or industry or general publications, for the purposes of its internal surveys and studies. Any such information may be subject to significant uncertainty due to differing definitions of the relevant markets and market segments described.
This presentation contains references to certain non-IFRS financial measures and operating measures. These supplemental measures should not be viewed in isolation or as alternatives to measures of the Company’s financial condition, results of operations or cash flows as presented in accordance with IFRS in its consolidated financial statements. The non-IFRS financial and operating measures used by the Company may differ from, and not be comparable to, similarly titled measures used by other companies. The non-IFRS adjustments for all periods presented are based upon information and assumptions available as of the date of this presentation.
