Fearnley Renewable and Clean-tech Seminar November 2021
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Today's presenters
CEO Erik Sneve
A portfolio approach in developing solar and wind projects (Ready-to-Build) – supported by legacy royalty revenues
Growing an asset-light development portfolio of wind- and solar energy projects, and technology development
Highly experienced renewable energy investment and project team leading Magnora's transition
Ambition to develop solar and wind projects with a total equity share capacity of ~5 GW by 2025
Financing from near-term cash flow of USD ~20 million from legacy FPSO assets
Listed on Oslo Stock Exchange with approx. 9,300 shareholders
Growing asset-light wind and solar project portfolio with low capital requirements
Project and company search and deal flow monitoring Focus on early-stage evaluations and developments of wind and solar PV Invest jointly with partners and/or consider developing own projects Maturing and derisking with key developments farm-down/sale in the portfolio Invite project partners for ownership optimisation at construction start Magnora team with extensive renewable project track record
Strong cash flow from legacy FPSO assets and company/project monetisation
companies
Record high energy prices lead to increased pricing power for developers - Favorable price development and market outlook
One year Nordic system price development1)
Nordic price development forecast2)
November 12, 2020
November 12, 2021
High activity and good progress in portfolio companies
- Asset light developer of solar parks for IPPs, pension or infrastructure funds – "Ready to Build" – 10x
- 1GW pipeline achieved six months ahead of original schedule
- Experience good interest from European wind and solar developers as well as infrastructure and pension funds on back of higher electricity prices and stalling onshore wind potential Northern Europe
- Helios sold two projects (45MW) to OX2 on Nov 23rd 2021 - Breakthrough contract as first sale from its portfolio .
- Expected sales process of two projects totaling 68 MW, with expected close short term with EY as advisor in another strucutred process.
- Identified and included energy storage potential in several projects
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Considering expansion into two other countries in Nordpool area
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Disruptive technology complimentary to basically all crystalline based silicon based solar panels. Boosting efficiency with 25% without increasing cost per watt. Potenial efficiency enhancement 35% over the coming decade.
- Reached business plan milestones ahead of schedule – commercial development agreement
- Intensified market activities. In-depth discussions with many potential partners and customers, both from solar cell/module and glass industry, based on signed NDAs
- Growing interest in the perovskite technology and Evolar from financial advisors and large investors
- Initiated process of increasing Magnora's next ownership option by the end of the year from 40.9% (max 63.5%)
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Intensifying work around maximizing value for Magnora and Evolar shareholders (IPO)
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Submitted two applications to the Scotwind lease round with TechnipFMC (several thousand employees in Norway and Scotland).
- Expecting announcement from ScotWind short term
- Local activity within respective areas in Scotland and business development with key local stakeholders
- Looking into new opportunities with TechnipFMC into other lease rounds
- Discussing with other potential partners for various lease rounds and/or ownership in Magnora Offshore Wind
ADJUSTED EBITDA
-3.2 NOK million
5.1 Q3'20 (-2.9 Q2'21)
EQUITY RATIO
94%
96% Q3'20 (96% Q2'21)
Key financials
- Operating revenues mainly reflects license income from agreement with Dana
- ‐ Increase mainly due to higher off-loading volumes
- ‐ Operator will potentially increase revenues due to more development activity going forward.
- Higher operating costs from business development activities, bonus payment, development of Magnora Offshore Wind, and the SPV in South Africa
- Cash flow in the quarter was mainly affected by ‐ Increased ownership in HeliosNordic Energy AB and KustVind AB
- ‐ Continued investments in projects in Magnora Offshore Wind and Magnora South Africa
- Established credit facility of NOK 50 million with tier 1 leading Nordic bank during the quarter which is un-used.
Projected license and royalty income legacy design acitivities 2021-2023 of USD ~20 million
Projected licence income Estimated royalty income
Financial strategy, capital priorities and outlook
- Financing plan for development phase of planned activities towards 2025
- ‐ Existing balance sheet cash and credit line
- ‐ Cash flow from legacy design contracts
- ‐ Organic cash flow from realization of projects
- ‐ Farm downs
- Dividend from potential IPOs and extra ordinary sales, if no new attractive reinvestment possibilities
- Identified new growth opportunities in and outside our core geographic areas
- Magnora has track record of returning NOK 517 million to shareholders over last three years, reduced after implementation of renewable strategy
- Shareholder friendly
"Developing the right projects and companies in order to generate long term shareholder value "
CONTACT US
Visiting address: Karenslyst Allé 2 0277 Oslo Norway
Postal address C/O Advokatfirmaet Schjødt AS P.O. Box 2444 Solli, 0201 Oslo Norway
www.magnoraasa.com