j.p. morgan high yield and leveraged finance conference, miami
TRANSCRIPT
J.P. Morgan High Yield and Leveraged Finance Conference, MiamiFebruary 2020
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
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
Thermal Solar
Wind Hydro
High Efficiency Cogen / Energy Solutions business
CARIBBEAN
73 MW
BRAZIL HYDRO
167 MW
CHP COMPLEX
518 MW
AUSTRIA WIND
149 MW
Global Footprint: 4.8GW in 18 Countries
LEGEND
3
BRAZIL SOLUTIONS
76 MW
SOLAR ITALY
77 MW
SOLAR SLOVAKIA
35 MW
TOGO
100 MWKIVUWATT
26 MW
CAP DES BICHES
86 MW
SOLUTIONS EUROPE
34 MW
Colombia
405 MW
SOLUTIONS AFRICA
16 MW
0.2
0.060.03 0.03
2015 2016 2017 2018
4
Safety first: Commitment to Zero Harm With Best In Class Performance▪ Everyone goes home safe, everyday, everywhere
▪ “Target Zero” program sets the company-wide expectation that we will incur zero LTIs in all businesses for all people – employees, contractors and visitors
▪ Commitment to maintain the same high H&S standards in every country that we operate in. Proud to achieve globally consistent high H&S standards, which are significantly better than industry benchmarks
▪ Became member of the Campbell Institute at the National Safety Council
(1) Lost time incident rate (LTIR) is an industry standard reporting convention for calculating injuries in the workplace. LTIR measures recordable lost time incident (LTI) rates based on 200l working hrs
(2) Peers information as of 2018 reported in annual reports / sustainability reports published by companies normalized to basis of 200,000 workings hours. Selection of comparable peers from a CG sponsored study with all major US and European power generation companies
(3) Based on the 2018 US Bureau of Labor Statistics report(4) Total Recordable Incident Rate (TRIR) is an industry standard reporting convention for calculating recordable injuries in the
workplace. TRIR is the total lost time injuries, restricted workday cases and medical treatments on the basis of 200k working hrs
Lost Time Incident Rate (LTIR)1
On-going improvement in key H&S indicator
LTIR/TRIR Compared to Peers2 – Industry leader in H&S with KPIs significantly better than industry benchmarks
2018 Safety Scorecard5.7MMan hours worked without a lost time injury
85%Reduction in zero lost-time injuries in 4 years
63%Reduction in total recordable injuries in 4 years
95% less LTIR than US industry and 85% less than peers top quartile
(85%)
Total Recordable Incident Rate (TRIR)4
0.46
0.180.10
0.17
2015 2016 2017 2018
(63%)
0.6
0.9
0.2
0.43
0.030.17
LTIR TRIRUS Utilities -avg Peers - top quartile CG 2018
23
5
Business HighlightsWell-established power generation company with exceptional growth
Focused business model: acquire, develop and operate long-term contracted power generation assets
Diversified footprint by geography and technology: each asset category contributes less than 20% group EBITDA
High cashflow generation provides strong income protection while leaving significant liquidity for growth
Long term contracts and regulated tariffs with significant risk mitigation delivering stable and secure cash flows
Proven track record of value accretive growth through both operationally lead acquisitions and greenfield development, with attractive M&A and development pipeline
Efficient Capital Structure: primary use of non-recourse debt financing provides significant protection to equity investor
Long-term contracts with state-owned/supported utilities or large IG companies or stable regulatory regimes (avg. credit rating BBB-)
LimitedCredit Risk
Limited Duration and refinancing
Risk
NoCost Risk
Mitigated Political Risk
Negligible Volume Risk for Thermal
Limited /Mitigated Volume
Risk forRenewables
6
High-Quality and Stable BusinessesFixed-price, long-term contracts or regulated tariffs, with credit worthy off-takers
NoPrice Risk
(1) As of end of 2019
Long-term contracts, weighted average remaining contract life of 10 years1
Use of political risk insurance to limit exposure
Typical thermal PPAs virtually eliminate commodity risk via fuel and CO2 emission costs pass-throughs
• Thermal: no volume risk; plants receive full capacity payment irrespective of off-taker demand
• Renewables: diversification of portfolio limits resource risk
Fixed-price contracts that often contain inflation protection
7
M&A Strategy Demonstrates Ability to Improve 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
92.6% 90.2% 93.3% 93.2%
2017 2018 H1 2018 H1 2019
92.7% 95.8% 95.8% 96.1%
2017 2018 H1 2018 H1 2019
97.8% 98.5% 98.5% 98.2%
2017 2018 H1 2018 H1 2019
99.2% 99.2% 99.7% 98.3%95.3% 96.7% 94.6%
2017 2018 H1 2018 H1 2019
Solar PV Solar CSP
Power Generation Operating PerformanceConsistently Strong Performance Across All Technologies
Thermal – Equivalent Availability Factor1 (%)
Hydro – Equivalent Availability Factor1 (%)
Wind – Equivalent Availability Factor1 (%)
Solar – Equivalent Availability Factor1 (%)
(1) Equivalent Availability factor refers to the actual amount of time a plant or group of plants is available to produce electricity
• Technical performance is in line with previous periods and well above minimum PPA required threshold
• Ongoing improvement in Brazil Wind operations driving EAF improvements
8
• Excellent hydro availability; plants primarily rewarded on capacity or regulatory payments as opposed to individual plant generation
• Decrease in H12019 availability due to blade failure in CSP and forced outages and maintenance at Solar Italy
• Strong production performance at CSP despite lower H1 2019 EAF
74% weighted average PPA minimum availability requirement
Our Principles: Going Beyond Power with Key ESG Commitments
Grow Well
Implementing “Next
Generation”
technologies such as
Bonaire battery
storage and Quad-Gen
technology
Providing power in
underserved countries
such as Togo, Senegal,
Rwanda
Operate Safely & Efficiently and Minimize
Impacts
Manage our Businesses Responsibly
Enhance the Operating Environment
Supplier Code of Conduct
and incentive program for
adherence to UNGC
principles
Top decile and quartile
operational KPIs and
robust benchmarking
Programs to
strengthen
Institutional and
Private Sector Capacity
Effective Social Investment
and Community
Engagement
Air Emissions, Waste and
Water Management
Plans
H&S Target Zero for all
employees, contractors
and visitors
Adhere to Highest Standards
of Corporate Governance
and Business Ethics and
Uphold Human Rights and
Labor Principles
Governmental support
to improve Policy and
the Regulatory
Environment
Partnerships to
increase Power
Accessibility and
Affordability
Worker Exchange
Program and global
training plans
9
10
Commitment to CommunityWe strive to make positive impact on the communities where we operate
ContourGlobal 2018 Social Responsibility Performance
122Social investment projects
+31% on 2017
~ 996,000Beneficiaries from social projects
+109% on 2017
$ 2.4 MillionTotal investment+102% on 2017
283ContourGlobal employees dedicated to social
investment initiatives
▪ More than 20,500 hours dedicated to social investment initiatives
▪ Around 2,800 hours devoted to social volunteering activities in our communities
Social Investment Projects
Europe 45%
Latam 40%
Africa 14%
America 1%
Community Education & Engagement
19,000 hours
16,000 hours Community education activities
Community engagement activities
122Projects
21
21
17
16
16
16
16
15
14
11
10
6
6
6
4
4
4
4
2
2
KivuWatt
Vorotan
Hydro Brazil
Cap des Biches
Spain CSP
Chapada Complex
Togo
Inka
Asa Branca
Mexico
Solar Italy
Solar Slovakia
Austria Wind
Bonaire
Maritsa
Sochagota
Termoemcali
Solutions
French Carribbean
Arrubal
11
Stable Long Term Contracted / Regulated Revenues Delivering Robust Cash FlowsWeighted Average Remaining Contracted / Regulated Term of 10 Years
(1) For assets with multiple PPAs, numbers shown based on midpoint of the expiration dates for such PPAs; data as of 30-Jun-2019.(2) Weighted by adjusted EBITDA before corporate and holding company costs.
Maintaining Long Weighted Average Remaining Contracted / Regulated Term2 (Years)
Remaining Contracted / Regulated Life by Asset (Years)1,2
% of Total Estimated Adjusted Revenues in 2019E-2024E
>90%
<10%
Contracted / Regulated Revenue Uncontracted / Unregulated Revenue
Current contracts / regulated revenues
have a weighted average remaining
term ofc.10 years
12 11
12 11
2015 2016 2017 2018
17%
15%
6%
17%
14%
23%
8%
Coal Natural Gas
Fuel oil High Efficiency Cogen
Wind Solar
Hydro
Diversification Across Geographies and TechnologiesAdj. EBITDA
LTM H1 2019 PF EBITDA by Technology1
LTM H1 2019 PF EBITDA by Currency1
LTM H1 2019 PF EBITDA by Geography1
(1) PF for full year EBITDA of Mexican CHP acquisition completed in November 2019 ($110m) and Solar InterPorto acquisition completed in June 2019 ($6m). Split excludes Thermal and Renewable HoldCo expenses and gain on CSP and Solar Italy and Slovakia farm downs
53%
11%
36%
Europe Africa Latin America
54%31%
13%
2%
EUR USD BRL Other
Renewable45%
HE Cogen17%
Thermal38%
12
10%
16%
5%
17%
4%
40%
8%
Coal Natural Gas
Fuel Oil High Efficiency Cogen
Wind Solar
Hydro
Diversification Across Geographies and TechnologiesCFADS
LTM H1 2019 PF CFADS by Technology1
LTM H1 2019 PF CFADS by Currency1
LTM H1 2019 PF CFADS by Geography1
(1) PF for full year EBITDA of Mexican CHP acquisition completed in November 2019 ($45m)
Renewable52%
HE Cogen17%
Thermal31%
13
63%7%
30%
Europe Africa Latin America
66%
26%
8%
EUR USD BRL
49%
28%
37%
16%
74%
51%
CG PeersAverage
CG Thermal PeersAverage
CGRenewable
PeersAverage
Sector Leading Operational and Financial Delivery
31.0%
27.7%
28.8%
2016 2017 2018 2019E
27 – 28%
✓Continued focus on strong margins and efficient cost structures through streamlined operations – EBITDA margins on average approx. 20% higher than peers
✓~350bps decrease in Fixed Cost / Variable Margin vs. 2016 levels on a run-rate basis
✓100bps increase in 2018 partially partially caused by increased overhead as a result of public listing
14
Resilient Cost Structure and EBITDA Margins1
(1) Thermal and Renewable margins include corporate SG&A fully allocated proportionately to each division
Fixed Costs to Variable Margin (%)
~ 350 bps.
+21%
+20%
+22%
7.1%7.7%
5.1%4.5%
3.7% 3.4%(2023)
3.0%(2025)
4.1% (2025)
$400m $100m Tap €500m €50m €100m €750m €100m Tap
Yiel
d t
o M
atu
rity
ContourGlobal HoldCo Bond Issuances
May 2014 Nov 2015 Jun 2016 July 2018Feb 2017Jul 2016 July 2019
BB- / BB-BB- BB / BB- BB / BBBB / BB BB / BBBB / BB-
Our business model is well attuned to the debt capital markets and debt investors value the credit
15
✓ €100m tap on the 4.125% senior secured notes due 2025 Notes priced on 30 July 2019 at 106.0% of par corresponding to a yield to maturity of 3.024%, the lowest recorded for the Company
SSN Rating:(S&P / Fitch)
Spread (bps) 599.2547.5 514.5311.9-360.7
366.3 339.5463
1,196 1,132
1,587 1,712
2,399 2,222
2,029
345 341 456 476
614 580 567
3.5x 3.3x
3.5x 3.6x 3.9x 3.8x
3.6x
(0.5x)
0.5x
1.5x
2.5x
3.5x
4.5x
5.5x
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19
NGPTI Prop. Adj. EBITDA (LTM)
Leverage Ratio Incurrence Level (5x max)
Leverage Ratio1 DSCR1
In $m or multiple In $m or multiple
Continued Strong Bond Credit Metrics7.4x DSCR & 3.6x Non-Guarantor Combined Leverage Ratio as of June 2019
16
(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) .
5x
202
301
237 232
291
203
251
32 33 41 41 43 34 34
6.3x
9.2x
5.7x 5.6x
6.8x
6.1x
7.4x
(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 Jun-19
CFADS (LTM) Annualized Debt Service
DSCR Incurrence Level (2x min)
2x
513
610 695
447 532
650
2017A 2018A 9M19LTM
Q3 YTD2018
Q3 YTD2019
High Growth and Robust Financial PerformanceHighly cash generative business with natural deleveraging
(1) Adjusted EBITDA is a non-IFRS measure as defined in IPO Prospectus(2) Pro forma numbers: Adjusted to reflect full year contribution of Spanish CSP(3) Growth based on 2017 to 9M19 LTM (CAGR)(4) EBITDA includes net gains from farm down transactions of $46m(5) Includes full year earnings of Spanish CSP, which was acquired in May 2018 (+$40m of Adjusted EBITDA based on FY Earnings)
Adjusted EBITDA1
($m)
+19%3
Net debt / EBITDA(x)
2
CFADS($m)
+19%
4 4
17
232
203
251
2017A 2018A LTM H1 2019
4.1x
4.4x
4.0x
2017A 2018A LTM H1 20195
USDm 2017 2018 LTM H1 2019Cash 781 697 744 Debt 2,890 3,560 3,601 Net debt 2,109 2,863 2,857
Target leverage ratio of 4.5x
Mexican Cogeneration Business Acquisition Signed in Jan 2019; closed November 2019
• Acquisition of natural-gas fired combined heat & power assets with518MW of operational capacity at completion, potential for afurther 414MW in development
• More than 98% contracted revenues including heat and steam withseller
• Integration of Mexico CHP¹ is progressing as planned with all keyintegration workstreams on track
• Made both internal and external appointments to supportthe new acquisition
• CG operational and H&S standards were developed inadvance of closing and are in the process of beingimplemented
• The plants have successfully transitioned to all of ouroperational and IT systems
• Acquired for $724m in cash with an additional VAT payment atclosing estimated at $77 million expected to be refunded in fullwithin 12 months of closing. $535m project financing underwrittenby Scotiabank and being syndicated to international banks
• Estimated Adj. EBITDA of $110m in first full year of operations
Transaction Highlights and Update Geographic Footprint
Altamira, TamaulipasCGA
Cosoleacaque, VeracruzCELCSA
(1) CHP – Combined Heat and Power 18
2019 key updates
Austria Wind Repowering
• Phase 1 (21 MW): Repowering of Velm reached COD in Jan 2019. Repowering of 3 of 5 Scharndorf turbines reached COD in November 2019. Both received a FIT of 13 years
Vorotan Refurbishment
• Electro-mechanical refurbishment and modernization program started in 2017 to improve operational performance, safety, reliability and efficiency of Vorotan. Initial phase has been completed and the project is on track with completion expected in 2020, ahead of original schedule and on budget
• Total $71.5m investments: electrical part funded by a €51m loan with a Development Finance Institution and additional civil works at $13.5m are funded by company’s operating cash flow
• Civil works to be entitled to a reimbursement and a regulated unlevered return through an adjustment to the tariff
19
• In February 2020 we inaugurated an innovative battery replacement and hybrid expansion project, which has enabled us to integrate more wind energy into the system and further reduce costs to the island customers
• Phase 01: Successfully implemented 6 MW/MWh Battery upgrade project in Q1 2019. 7.7 GWh production increase
• Phase 02: COD achieved in November 2019 on time and on budget. Replaced rented engines and ensured security of supply and grid stability, while reducing end user tariffs through avoidance of usage of rental diesel engines.
• Phase 03: 6 MW PV plant, 11-16 MW wind farm expansion and additional battery capacity
• Starting from October 2019, ContourGlobal is again the sole power producer on the island
Bonaire Hybrid Concept, a 24
MW integrated Wind, Diesel and Battery Power Plant
Appendices
Sao Domingos II Hydro Power Plant (Brazil) 20
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, Solar Romania and Biogas Italy
Top Contributors to Adj. EBITDA1 2016 2017 2018 LTM H1 2019
Top contributors from Thermal fleet
Maritsa East III 117 125 120 122
Arrubal 62 61 63 63
KivuWatt 22 24 26 29
Cap des Biches 12 26 27 27
Togo 21 25 25 26
CG Solutions2 12 27 27 24
Caribbean 21 27 24 24
Colombia 21 22 21 19
Top contributors from Renewable fleet
Spanish CSP - - 89 135
Brazil Wind 79 82 59 57
Solar Europe, excl. CSP3 31 31 41 42
Brazil Hydro 9 28 41 39
Peru Wind 31 25 29 32
Austria Wind 23 25 20 24
Vorotan 22 23 23 24
Total 485 553 638 687
21
Top Contributors to CFADS(Before Corporate and Other Costs)1 2016 2017 2018 LTM H1 2019
Spanish CSP - - 35 75
Solar Europe excl. CSP2 22 55 38 61
Maritsa 118 30 65 34
Arrubal 19 28 18 29
Brazil Hydros (1) 55 14 23
CG Solutions3 28 41 15 15
Cap des Biches - 7 17 12
Peru Wind 23 5 15 12
Colombia 4 8 4 12
KivuWatt - - 4 8
Vorotan 111 13 9 5
Austria Wind 7 8 4 5
Others5 18 20 11 7
Total 349 270 249 298
Contributors to CFADS1
(1) CFADS (Cash Flows Available for (Corporate) Debt Service) as defined in Bond Indenture(2) Includes Solar Italy, Solar Slovakia, Solar Romania and Biogas Italy(3) Includes Solutions Europe and Africa and Solutions Brazil(4) $84m second instalment of acquisition payment not deducted from CFADS(5) Other include Togo, Caribbean and Brazil Wind
4
22
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 38 1 HFO / Wind 100% 2010 WEB 2025
KivuWatt Rwanda 26 1 Natural Gas 100% Q4 2015 EWSA (ex-Electrogaz & REC) 2040 (expected)
Total Thermal 2,398 10
Mexican CHP assets Mexico 518 2 Natural Gas cogeneration 100% 2014/19 Mexican industrial/commercial N/A
ContourGlobal Solutions Europe – Nigeria –Brazil
126 10 Natural Gas / Diesel / LFO 100%;100%; 80% 1995-2015 Investment grade global industrial companies
2018-2032
Total Cogen 644 12
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 149 10 Wind 94% 2003-2014 OeMAG 2016-2027
Inka Peru 114 2 Wind 100% 2014 Distribution companies 2034
Solar Europe Italy, Slovakia, Romania
121 54 Solar 51% / 100% 2007-2013 Distribution companies 2027-2033
Total Renewable 1,803 85
Total portfolio 4,845 107
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
23
24
Robust continuous improvement process Our value to “embrace excellence” means that we commit to continuously improve in all aspects of business performance
Operating as a high-growth company in a complex and diverse environment, we understand that failures are inevitable. Embracing failure, openly discussing it at all levels of management, and taking action to prevent the failure in the future is the way to operate safely and efficiently
Tools
▪ Internal and third party Health, Safety and Environmental audits▪ The Power for HSE Excellence Manual▪ Benchmarking▪ Five why’s, Lessons learned, Case study, other root-cause methodologies
Continuous Improvement
Committee
Timely and Transparent
▪ Responsible for reviewing operational aspects of our global Continuous Improvement program and developing strategy to further the culture of learning from failure across our organization
▪ The 2 Ts, timely transparency, is a specific initiative to encourage that successes and failures are communicated in a timely, open and honest way
▪ This creates and environment of trust without blame, allowing us to honor our commitments and improve performance
322 24
35
2015 2016 2017 2018
# of 5 why’s solely HSE related
Correction and Prevention
▪ Corrective and Preventive Action Tracker to ensure all inspection actions are timely closed
▪ Company stand downs, Company bulletins, injuries alerts▪ Hazard identification, hazard awareness and safety inspections (incl by
Senior Management)▪ Job safety analysis for each task▪ Utilization of predictive maintenance (“PdM”) and condition-based
maintenance (“CBM”), as well as centralized pool of experts to reduce unplanned failures
Leading indicator strategy
▪ Combination a series of interlinked KPIs to identify and remove hazards from the work environment in a timely manner, reducing workers’ exposure to hazardous conditions.
▪ Assignation of target values to our leading indicators.
0.0033
0.0023
0.0024
0.0026
2015
2016
2017
2018
SAFETY INSPECTIONS PER WORKING HOURS
96%
94%
91%
83%
2018
2017
2016
2015CORRECTIVE AND PREVENTIVE ACTIONS CLOSURE RATE
23%
44%
64%
74%
2015
2016
2017
2018
HAZARD IDENTIFICATION RATE
2.77%2.89%
2.16%1.10%
2018201720162015
% OF WORKING HOURS DEDICATED TO H&S TRAINING
25
Strong environmental performance We are actively managing and minimizing environmental impacts
ContourGlobal 2018 Environmental Performance
CO₂ emissions includes emissions from combustion of fuel, purchase of electricity, heat, steam and cooling, including a power plant’s own use
8.17 7.51
8.14
6.48
2015 2016 2017 2018
CO2 Emissions (tonnes)
0.630.61
0.58
0.56
2015 2016 2017 2018
Net CO2 tonnes/MWH
One of the most significant environmental impacts of our Thermal portfolio is our CO₂ emissions.
We set a target in 2014 to maintain or reduce our intensity of carbon emissions, i.e. the carbon emissions in tonnes/MWh.
We have achieved this through growth in our Renewable portfolio and promoting efficiency in power plant operations
We have the ongoing dedication to minimizing our environmental impact as much as possible at all our sites.
Our social and environmental governance is centered around our Policy on Social Responsibility and Environmental Sustainability, a policy aligned with the International Finance Corporation Performance Standards. The policy, and accompanying frameworks set out how we are working to achieve social and operational excellence and include:
• Compliance with regulations and legislation and alignment to global best practice
• Maintaining or decreasing our carbon, air and waste footprint
• Training and development for our human talent
• Launching targeted social investments aligned to our core business objectives
In 2018,our carbon intensity was at its lowest level since our baseline year 2011
88%
2.7t hazardous waste recycled+60% y-o-y
246 SO2 emissions-45% y-o-y
198k seedings planted+34% y-o-y
246 SO2 emissions-45% y-o-y
No Environmental grievances and 1 Environmental sanction in 2018
