Scatec Solar ASA
Investor presentation
October 2014
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Important notice (i)
By reading this presentation (together with its enclosures and appendices, the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the
following terms, conditions and limitations.
This presentation and any information provided at any meeting or oral presentation held in relation thereto are made available on a strictly confidential basis, all material contained herein and information
presented are for discussion purposes only. By accepting to attend this presentation and receive this information, the attendee and recipient agrees that it will not distribute, reproduce, disclose or provide any
information or material discussed, in whole or in part, to any other person.
This Presentation has been prepared by Scatec Solar ASA (the "Company") with the assistance of ABG Sundal Collier Norge ASA and Carnegie AS (collectively, the "Managers") in connection with a
presentation by the Company. The information provided in the Presentation cannot stand alone but must be seen in conjunction with the oral presentation and are expressed only as of the date hereof. The
content of this Presentation is not to be construed as legal, business, investment or tax advice. Each Recipient should consult with its own legal, business, investment and tax adviser as to legal, business,
investment and tax advice.
This Presentation is for information purposes only and does not constitute an offer, invitation or solicitation of an offer to buy, subscribe or sell any securities in the Company and neither this document nor any
information contained herein shall form the basis of or be relied on in connection with any offer or commitment. Any investment decision in relation to the offering as described herein must be based solely on the
prospectus published by the Company in connection with the offering and dated 12 September 2014, and which sets out the terms and conditions for the offering and the description of the company and its
business. The prospectus is available by contacting any of the joint bookrunners.
NO LIABILITY
The information contained in this Presentation 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 any information or opinion contained herein. The Recipient agrees that none of the Company or the Managers or any of their parent or subsidiary undertakings, affiliates, advisors,
or any such person’s officers or employees (collectively the "Representatives") shall have any liability whatsoever arising directly or indirectly from the use of this Presentation.
Neither the Company nor the Manager have authorised any other person to provide investors with any other information related to this Presentation or the Company, and neither the Company nor the Manager
will assume any responsibility for any information other persons may provide.
The Recipient agrees that no liability of any form relating to the information contained in this Presentation shall be assumed by the Managers, the Company or any of their Representatives.
RISK FACTORS
An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or
achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company’s technology, business,
segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic, business or political conditions, changes in domestic and
foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. The Recipient should carefully review the
summary of risk factors set out in this Presentation and the chapter “Risk Factors” in the Prospectus for a description of certain of the risk factors that will apply to an investment in the Company’s securities.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or ability to complete new projects may vary materially from those described in this
Presentation. The Recipient acknowledges that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that the Recipient will conduct its own
analysis and be solely responsible for forming its own view of the potential future performance of the Company’s business.
An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment.
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 2
Important notice (ii)
FORWARD LOOKING STATEMENTS
This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and the industry in which it operates. Forward-looking statements
concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims",
"foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party
sources are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The information contained
herein is subject to change, completion, or amendment without notice and none of the Managers, the Company or any of their Representatives intend, or assume any obligation, to update or correct the
information included in this Presentation.
DISTRIBUTION AND SELLING RESTRICTIONS
Neither the Company nor the Managers have taken any actions to allow the distribution of this Presentation in any jurisdictions other than Norway. The distribution of this Presentation and any
application/subscription for shares of the Company may be restricted by law in certain jurisdictions, and persons into whose possession this Presentation comes should inform themselves about, and observe,
any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction, and neither the Company nor the Managers nor their Representatives shall have any
responsibility or liability for any breach of such obligations.
This Presentation is only addressed to, and the securities described herein will (if an offering is completed) be offered only to, qualified investors ("Qualified Investors") within the meaning of Article 2(1)(e) of the
EU Directive 2003/71/EC (the "Prospectus Directive"). Any such Qualified Investor will be deemed to have represented and agreed that any such securities acquired by it in the contemplated offering by the
Company (if completed) have not been acquired on behalf of persons other than such Qualified Investors. Neither the Company nor the Managers have authorised any offer to the public of securities, or has
undertaken or plans to undertake any action to make an offer of securities to the public requiring the publication of a prospectus, in any member state of the European Economic Area which has implemented the
Prospectus Directive other than Norway.
In the event that this Presentation is distributed in the United Kingdom, it shall be directed only at persons who are either "investment professionals" for the purposes of Article 19(5) of the UK Financial Services
Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or high net worth companies and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order
(all such persons together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this Presentation or any of its contents. Any investment or investment activity
to which this Presentation relates will (if an offering is completed) be available only to Relevant Persons and will be engaged in only with Relevant Persons. This Presentation is not a prospectus for the purposes
of Section 85(1) of the UK Financial Services and Markets Act 2000, as amended ("FSMA"). Accordingly, this Presentation has not been approved as a prospectus by the UK Financial Services Authority ("FSA")
under Section 87A of FSMA and has not been filed with the FSA pursuant to the UK Prospectus Rules nor has it been approved by a person authorised under FSMA.
The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other
jurisdiction in the United States, and, subject to certain exemptions, may not be offered or sold within the United States, absent registration or under an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act. In the United States the securities described herein will (if an offering is completed) be offered only to qualified institutional buyers (QIBs) as defined in Rule 144A
under the Securities Act in accordance with Rule 144A or another transaction exempt from or not subject to the registration requirements of the Securities Act. Outside the United States the securities described
herein will (if an offering is completed) be offered in accordance with Regulation S under the Securities Act. Neither this document nor any copy of it may be taken or transmitted into the United States, Australia,
Canada or Japan or to any person in any of those jurisdictions.
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 3
Important notice (iii)
NO UPDATE
This Presentation is dated October 2014. Neither the delivery of this Presentation nor any further discussions of the Company or the Managers with any of the recipients shall, under any circumstances, create
any implication that there has been no change in the affairs of the Company since such date. The Company does not undertake any obligation to review or confirm, or to release publicly or otherwise to investors
or any other person, any revisions to the information contained in this Presentation to reflect events that occur or circumstances that arise after the date of this Presentation.
The information and opinions contained in this Presentation are for background purposes only and do not purport to be complete.
CONFLICT OF INTEREST
The Managers and/or its employees may hold shares, bonds, options or other securities of the Company and may, as principal or agent, buy or sell such securities. The Managers may have other financial
interests in transactions involving such securities.
GOVERNING LAW
This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 4
Introduction
Our business
Financials
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 5
Management with a track record and deep industry expertise
CEO Raymond Carlsen has been with Scatec Solar
since 2009. He has more than 30 years of global
experience in construction and developing energy
related businesses, predominantly within the Aker
Group
EVP Power Production & Asset Management Torstein
Berntsen has been with Scatec since 2006. He has
more than 10 years of experience within audit and
business advisory services, from Arthur Andersen and
Ernst & Young
CFO Mikkel Tørud joined Scatec Solar in 2014,
coming from the position as SVP Investor Relations
and Business Development in REC. He holds a broad
background from strategy, business development and
finance in various roles in REC, BP and PA Consulting
EVP Business Development Roar Haugland holds
more than 15 years of business development
experience from large multinationals like HP and IBM
COO Terje Pilskog has been with Scatec Solar since
2012. He has extensive solar industry experience from
the position as SVP of REC Systems and Business
Development in REC
EVP Legal Counsel Snorre Valdimarsson earned a
Master of law from University of Bergen. Prior to joining
Scatec Solar, Mr. Valdimarsson worked at the law firm
Selmer focusing on M&A, Banking and Finance
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 6
Key investment highlights
1
Independent Solar Power
Producer with an attractive
asset base
2
Integrated business model capturing full project value
3
Excellent track record across
multiple geographies
4
Significant backlog and
pipeline supporting growth
5
Active asset management of
operating assets to optimize
long term returns
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 7
Introduction
Our business
Financials
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 8
An Independent Solar Power Producer
Experienced and fast-growing
•
Project track record of 386 MW
•
Manages 219 MW of solar power plants in operation / under construction
•
Aim to reach 750 MW of solar power plants by the end of 2016
Integrated across the downstream value chain
•
Generating cash flows in throughout the project stages while establishing
premium assets with strong and predictable long-term cash flows
•
Focus on asset management with the goal of maximizing long term
shareholder values
Strong asset base and revenue backlog
•
Total estimated nominal undiscounted value of solar power sales contracts
of more than NOK 15 billion secured until 2034***, yielding annual payments
from project SPVs to Scatec Solar of NOK 130-150 million
Key facts
Key facts
Established:
Headquarter:
Established:
MainHeadquarter:
shareholders:
2001
Oslo
2001
Scatec*
Oslo62.5 %,
Itochu 37.5 %
Employees:
88
Main shareholders:
Scatec* 53%,
Itochu 36%
Power plants (ownership)
Employees 9%
Others 2%
Employees:
88
Power plants (ownership)
Czech Republic (100%):
20 MW
Key financial
highlights
Kalkbult, RSA (39%):
75 MW
Secured revenue backlog of more than NOK 15bn
Linde, RSA (39%):
40 MW
Dreunberg**, RSA (39%):
75 MW
ASYV, Rwanda (57%)
9 MW
* Includes Scatec AS and Scatec Invest AS
** Under construction
*** Revenue estimate is based on contractual power prices and estimated production volumes
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 9
An early mover in utility-scale solar energy production
Initiation*
•
•
Geographical expansion
Awarded for the “Best
Renewable Project of the Year”
in 2007
3 x world record largest solar
power plant (1.6 MW; 4 MW; 6.3
MW)
2001-2007
•
South African entry
Market entry in the Czech
Republic and Italy
•
2008-2009
•
•
•
Business expanded to include
design and construction
Developed a hub for technical
competence in Germany, based
on strong regional PV competence
Expanding to D&C
Positioned for growth
Selected as preferred bidder for
the 75 MW Kalkbult plant in
South Africa
Market entry West Africa
•
•
•
2010 - 2011
•
•
•
Business model expanded to IPP
The power plants in the Czech Republic
being first assets retained
Market entry in South Africa, France and
the US
Expanding to IPP
Two phase 2 projects (40MW+75MW) in RSA under
construction, following grid connection of first 75MW
project
Market entry into Japan and the UK
Backlog of 155 MW and pipeline of more than 730 MW
2012 - 2013
•
•
2014
Initiated construction of first 75
MW PV plant in South Africa
Awarded concession agreement
for two more plants in
South Africa, totaling 115 MW
South African success story
Start Retaining Ownership and Asset Management (PP)
Start Operation and Management (O&M)
Start Design and Construction (D&C)
Start Project Development
* Through integration of the acquired German developer Solarcompetence
Copyright: Scatec Solar ASA
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Page 10
The Scatec Solar business process and value chain
Scatec Solar
PV equipment
manufacturing
Development & Construction
Project development
Financing
Construction
• Chemical
processing &
assembly
• Site
development
• Detailed design
& engineering
• Project
management
• Rapid
technology
development
• System design
• Business case
• Component
tendering
• Supplier and
construction
monitoring
• Cost reductions
• Permitting
• Grid connection
• PPA negotiation
/ tender / FiT
secured
• Debt / Equity
structuring
• Due Diligence
• Quality
assurance
Operations & Maintenance
Power Production
Operations
IPP
• Maximize
performance
and availability
• Maintenance
and repair
• Power
Production
• Asset
management
• Financial and
operational
optimization
• Funding and
cash flow
management
Parts of the construction phase is outsourced to EPC sub-contractors
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 11
Value creation through the project lifecycle
Feasibility & due diligence
Development
Opportunity
Pipeline
Financing
Construction
Operations
Backlog
Construction
Asset management
Value
Production
start
VALUE CREATION
Financial
close
Cost
PPA award
Project
secured
Time
Copyright: Scatec Solar ASA
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Page 12
The integrated approach captures the full project value
Project development & construction
•
Allows access to attractive projects that
otherwise would not be available
•
Captures attractive margins from early stage
development and construction activities,
which is recycled as equity in new projects
Long term asset ownership
• Generates steady long term cash flows
• Eliminates ‘friction loss’ between developer, builder,
operator, and owner
• Active asset management strategy to continuously
optimize operations as well as the Company’s balance
sheet, aiming at increasing shareholder value and
reducing the cost of capital
Development margin
Construction margin
O&M margin
Extracting premium margin from development, construction
and operations
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
NPV power production Optimize performance
Cost of capital
Residual value
Total value
Maximizing value through long term ownership
and asset management
Page 13
Value adding approach to Project Finance and Asset
Management
•
Portfolio
Management
Refinance
Financial Close
As our portfolio of operating assets grows we will
seek to increase cash flows to equity through debt
refinancing and re-pricing of project equity cash
flows based on e.g.:
o Proven operational over-performance
o Improved financing terms
o Access to low yield capital through YieldCos or similar
structures
Maximizing the
total SSO return
Optimizing the
financial model
Identifying the
preferred financial
structure
Copyright: Scatec Solar ASA
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Page 14
Kalkbult plant’s strong operational performance is a proof
of concept
Introduction to Kalkbult
• Scatec Solar was awarded the 75 MW Kalkbult
project in December 2011 with financial close
in November 2012
• The largest project awarded in the 1st bidding
round, accounting for 20% of overall volume
• Construction progress as planned
o
o
o
o
312,504 PV modules installed in 188 days
800,000 work hours, zero accidents
More than 700 workers on site at peak
Grid connection in September 2013
• No deviations found on external inspections by
o Eskom, Dept of Environmental Protection, Dept.
of Labour, Insurance companies
Actual Kalkbult completion
Percent
completed
100%
80%
Grid
Connection
82,6%
84,6%
87,9% 89.0% 89.8% 90.1%
85,2% 86,3% 86,7%
81,2%
77.5%
60%
40%
2014 actuals
2013 actuals
20%
P50 forecast*
0%
Copyright: Scatec Solar ASA
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Total
Project
Baseline
Total
Project
Actual
Performance ratio %
49
3
9
15
21
27
33
39
45
Week
51 number
* P50 is defined as the base (expected) performance case as accepted by the banks as a basis for lending to the project
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Page 15
Market approach and partnerships in priority markets
Norway
JV with Norfund for new
project sourcing,
evaluations and IPP
investments
Guarantee support from
GIEK
•
UK
Development
agreement with local
developer with strong
team
•
USA
•
•
•
Offices in California
Presence since 2010
Local development
team with solid track
record
•
Middle East
•
Sub-Saharan Africa
•
•
Regional development
partnership with IFC
Local development
partners in each country
•
Collaboration with
Dallah Al-baraka for
Saudi Arabia
Local development
partner in Jordan
Japan
•
•
•
Offices in Tokyo
Development support
with Itochu
Itochu also provides
trade financing globally
South Africa
•
•
•
Copyright: Scatec Solar ASA
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Offices in Cape Town
and Johannesburg
Local development
team established
Proven development
partnerships with local
players
Page 16
Plants in operation, in construction and in backlog
SSO %
2010
2011
2012
H1 ‘13
H2’13
Q1’14
Q2’14
Q3’14
Q4’14
2015
2016
In operation & construction:
Operation
Czech projects
20 MW
100%
Kalkbult, RSA
75 MW
39%
Development
Linde, RSA
40 MW
39%
Development
Construction
Dreunberg,RSA
75 MW
39%
Development
Construction
ASYV, Rwanda
9 MW
57%
Total
Construction
Development
Operation
Operation
Operation
Construction
Operation
219 MW
Backlog:
Oryx, Jordan
10 MW
70%*
Development
Financial close
EJRE/GLAE, Jordan
33 MW
40%**
Development
Financial close
104 MW
100%*
Development
8 MW
49%*
Development
Utah, USA
Hawaii, USA
Total
FC
FC
155 MW
Pipeline:
USA
220 MW
UK
53 MW
Africa & ME
Timing TBD
396 MW
Japan
64 MW
Total
733 MW
Financial close
Start of operation
Copyright: Scatec Solar ASA
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Actions post Q2-14 are based on management expectations
* Estimated ownership ** SSO has a call option to increase shareholding up to 50.1% (subject to government consent)
Q3
2014
Page 17
Scatec Solar project development funnel
Geographical split
~900
•
MW
19%
Feasibility and business case
verified
2% 10%
34%
30%
6%
> 50%
Pipeline
Assessed as
having more than
50% likelihood of
being realized
Backlog
Assessed as
having more than
90% likelihood of
being realized
~730
MW
>90%
155
MW
IN OPERATION
219 MW
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
•
•
•
•
Financial close/
Construction start
•
•
•
•
Land secured
Grid connection available
Preliminary design completed
Securing PPA/FiT through
permitting, tender or
negotiations assessed as likely
Geographical split
9%
Africa, ex RSA
35%
30%
19%
Geographical split
PPA signed / FiT secured
Grid connection secured
All main permits in place
Project financing the only
milestone outstanding
South Africa
7%
28%
72%
Middle East
USA
Japan
UK
North America, ex USA
Page 18
Introduction
Our business
Financials
Summary
Copyright: Scatec Solar ASA
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Page 19
The Scatec Solar reporting segments
Power
production
• Management
(financial/operational)
of power producing
assets
Activities
Operations &
Maintenance
• Maintaining operations
through technical &
operational services
• Ring-fenced nonrecourse financing
Margin
drivers
Project
investment
criteria
Development &
Construction
• Project development
• Quality assurance
• Funding and cash flow
management
• MWh produced & sold
under PPA or FiT
• Fixed fees per MW
maintained
• Development premiums
• Operations &
Maintenance costs
• Bonus based on overperformance of assets
• Financing costs (cost of
capital)
• O&M costs
• Component sourcing and
project execution
• ROE on equity invested in
project of minimum 10%
subject to project specific
risks
• EBITDA-margin of
40 – 50% before any
performance bonus
revenues
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• EPC contracts
• Gross project margin of
15-20% subject to scope
and market maturity
Corporate
• Corporate services,
management and group
finance
• Internal charges of
management services
• N/A
Page 20
Strong financial performance
Revenues
NOKm
2012
2013
H1 '14 **
Power production
67.8
106.0
156.8
Operations & Maintenance
12.4
13.9
9.7
587.2
1,825.2
722.5
9.3
8.0
4.3
Eliminations
-310.2
-1,824.3
-743.5
Consolidated
366.5
129.0
149.7
NOKm
2012
2013
H1 '14 **
Power production
61.3
66.0
144.1
Operations & Maintenance
-0.2
0.6
3.2
Development & Construction
140.6
589.2
185.3
Corporate
-15.7
-23.3
-13.5
Eliminations
-158.1
-649.3
-238.3
Consolidated
27.9
-16.9
81.1
Development & Construction
Corporate
EBITDA
Very strong historical profitability in the
different business segments*
The Company expects to continue to
secure solid margins in development and
construction and substantially increase
revenues and profits from the power
production segment
Run-rate revenues from existing projects
in place of approx. NOK 750 million
* On a consolidated basis, profits generated during the development and construction phase are eliminated in the consolidated accounts
** Unaudited
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Page 21
Financial highlights
4
NOKm
2013
H1 '13
H1 '14
Total revenue and other income
129.0
45.4
149.7
EBITDA
-16.9
-22.9
81.1
Operating profit (EBIT)
-74.7
-35.5
45.3
Profit before income tax
18.1
53.7
40.6
Development & Construction
185.3
Profit (loss) for the period
-7.6
25.2
36.2
Corporate
-13.5
Eliminations
-238.3
Attributable to equity holders of the parent company
-34.7
-18.6
-1.6
Attributable to non-controlling interests
27.1
43.8
37.8
3,524.5
2,296.4
4,173.3
11%
18%
11%
1,373.0
671.0
2 022
202.1
38.7
-164.5
296.5
133.2
132.0
Segm ent
EBITDA
Pow er production
Operations & Maintenance
Consolidated
Total assets
Equity (%)
1
2
Net interest bearing debt
Net free cash flow
3
Free cash at end of period
144.1
3.2
81.1
1)
The consolidated equity ratio is negatively affected by inclusion of non-recourse debt in project companies at full amount while the value of consolidated assets are reduced by the internal margins generated through the project
development and construction activities. This non-recourse project finance debt is pledged solely to the assets and performance of each individual project
2)
Non-recourse financing less cash and cash equivalents
3)
Net free cash flow is defined as the Group’s operating cash flow before consolidation of project companies, plus share of cash distributions from project companies, less share of equity investments in project companies
4)
Unaudited
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Page 22
D&C margins are eliminated & reduces consolidated PP&E
Build up of PP&E as per 30 June 2014 – NOKm
1 249
•
Margins created through D&C
of power plants are eliminated
in consolidated financial
statement
•
Elimination booked against
PP&E in consolidated financial
statements
2 942
1 002
2 551
2 304
Leads to:
• A negative effect on
consolidated equity short term
as corresponding non-recourse
finance is included at full value
Plants in operation (SPVs)
Plants under
construction (SPVs)
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D&C margin
Sum consolidated PP&E
Gross debt
•
Improves consolidated net
profit over time through
reduced depreciation charges
Page 23
Overview of plants in operation and under construction
Project name
Capacity (MW)
SSO ownership
COD
Off-take
arrangement
Expected annual
production
(MWh)
Expected annual
revenues (100%)
(NOKm)
Expected annual
OPEX (100%)
(NOKm)
Plants in operation:
Czech plants
19.8
100%
2010/2011
20 year, FiT
20,500
76
7
Kalkbult, South Africa
75.0
39%
Q1 2014
20 year, PPA
150,000
250
23
Linde, South Africa
40.0
39%
Q2 2014
20 year, PPA
93,700
138
14
ASYV, Rwanda
8.5
57%
Q3 2014
25 year, PPA
15,500
17
4
279,700
481
48
178,000
270
23
Total projects in operation
143.3
Dreunberg, South Africa
75.4
Total projects under construction
75.4
178,000
270
23
Total SSO projects
218.8
457,700
751
71
39%
Q4 2014
20 year, PPA
Please note that off-take arrangements are subject to certain terms and conditions
Revenue and OPEX estimates are based on contractual power prices and estimated production volumes. Please note that the expected annual revenues reflect the estimated 1st year after COD for the respective solar PV plants
Please see slide 43-47 for further information about the assumptions for FX rates applied
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 24
Cash flow in Scatec Solar
O&M contract #1
O&M contract #2
O&M contract #3
Single Purpose
Vehicle #1
Single Purpose
Vehicle #2
Single Purpose
Vehicle #3
O&M
margins
Dividends
Equity
Total cash
available
Development &
Construction
margins
Working capital
Construction
project #1
Construction
project #2
Construction
project #3
Surplus liquidity /
Scatec Solar
dividends
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 25
Dividend policy
• The Company’s objective is to pay our shareholders consistent and growing cash dividends
• A share of free cash distributed from the project companies holding our power producing assets will be
used to pay regular cash dividends that are sustainable on a long term basis. It is the intention that
dividend will grow in line with the growth in our producing asset base
• The Company intends to announce its first dividend as a listed Company, during the first half of 2015,
distributing 100% of the cash received from our project companies during 2014, estimated to amount to
approximately NOK 25 million
• From 2015 the Company intends to allocate 50% of free cash received from the project companies
holding our power producing assets to dividends. For 2015, the dividend is estimated to amount to
minimum NOK 401 million
1)
Reflecting initial build-up of required cash reserve accounts in the South African SPVs
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 26
SSO will raise capital in the IPO to support accelerated
growth
• SSO aims to build and own gross solar PV capacity of 750 MW by the end of 2016
• Based on a debt ratio of 70% – 80% and a plant ownership share of 40% – 80%, the required
investment for Project Equity in the period is estimated to be in the range of NOK 700m – 1000m
• Cash generation in the same period from Development & Construction margins, as well as dividends,
O&M fees and performance bonuses from operating plants, reduces the requirement for new capital
• A growth-driven increase in working capital, as well as a commitment to pay dividends to SSO
shareholders in the period, is added to the total funding analysis
• Scatec Solar intends to raise gross proceeds of about NOK 500 million
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 27
Key investment highlights
1
Independent Solar Power
Producer with an attractive
asset base
2
Integrated business model capturing full project value
3
Excellent track record across
multiple geographies
4
Significant backlog and
pipeline supporting growth
5
Active asset management of
operating assets to optimize
long term returns
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]
Page 28
Thank you
Copyright: Scatec Solar ASA
www.scatecsolar.com • [email protected]