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H1 2019 Results Presentation
August 8, 2019
2
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.
3
Key Highlights for H1 2019
Operations
Financial Results
Bonaire 28MW Orellana CSP 50MW solar farm (Spain)HAGN 47MW Wind Park (Austria)
Agenda
Growth
4
262 357
H1 2018 H1 2019
535 617
H1 2018 H1 2019
Revenue ($m)
H1 2019: Strong Growth in All Key Financial Metrics
226 300
H1 2018 H1 2019
111
170
H1 2018 H1 2019
Adjusted EBITDA ($m)
FFO ($m)Proportionate EBITDA ($m)
48% cash Conversion1
Increased cash conversion vs. 42% in H1 18
(1) Cash conversion rate defined as FFO / Adjusted EBITDA
$50m increase from CSP
acquisition, $46m net farm down
gains, -$24m from FX and $10m from positive renewable
resource
5
✓ Good progress in regards to achieving target of doubling Adjusted EBITDA by 2022
✓ Declaring a second quarterly dividend for 2019 of $24.75 million corresponding to 3.6901 USD cents per share, which
is expected to be paid on September 6, covered by strong cash flow and in line with our policy of growing the dividend
by at least 10% per annum
✓ Mexico CHP¹ acquisition expected to close in the third quarter of 2019 and to generate $110 million of Adjusted
EBITDA on a full year basis
✓ Sale of 49% of our 250 MW Concentrated Solar Power portfolio in Spain in May 2019 with €134m cash proceeds
✓ €100 million 4.125% senior secured notes due 2025 issued subsequent to the end of the half year at 106.0% of par
corresponding to a yield to maturity of 3.024% to fund further growth
✓ Reflecting the timing of the closing of the Mexico CHP acquisition, we expect 2019 Adjusted EBITDA to be in the lower
half of our previously communicated guidance of $720-770 million for the full year at constant foreign exchange rate2
(1) CHP – Combined Heat and Power(2) 0.8851 for EUR/USD, and 3.914 for BRL/USD
Ongoing Strong Growth and Cash Generation
Key Highlights
H1 2019 Consolidated Results
6
2. OperationsKarl SchnadtExecutive Vice President & Chief Operating Officer
KivuWatt – Methane Gas Extraction Facility & Power Plant (Rwanda) 6
7
Industry Leading Health & Safety PerformanceTarget Zero achieved in H1 2019
Inka Wind Farm, Peru
Leading the Sector in Health and Safety Performance
‘Target Zero’ Remains ContourGlobal’s Key Priority
Our 2019 TRIR(5) is 0.13 vs. a target of 0.14
(1) Lost time injury rate (LTIR) is an industry standard reporting convention for calculating injuries in the workplace. LTIR measures recordable lost time incident (LTI) rates on the basis of 200,000 working hours (2) Source: peers information as 2018 reported in annual reports/sustainability reports published by companies normalized to basis of 200,000 working hours (3) Selection of comparable peers from study performed by Black & Veatch (4) Based on the 2018 Bureau of Labor Statistics report (5) TRIR: total recordable incident rate 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 200,000 working hours
7
LTIR
2
1 1
0.06
0.03 0.03
0
-0.02
0
0.02
0.04
0.06
0.08
0
0.5
1
1.5
2
2.5
2016 2017 2018 H1 2019# of LTIs LTIR
0.000.03
0.12 0.14 0.17 0.18 0.19 0.200.27 0.27 0.30
0.36 0.38 0.38
0.49 0.500.54
0.68
0.90LTIR
Selected Peers Top Quartile = 0.20
US Utilities Average = 0.6
LTIR(1) - PEERS (2) (2018) VS CG(3)
(4)
8
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
Divisional Operating PerformanceConsistent 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
9
31%28%
43%
15%
20%
28%
55%
29%31%
43%
15%
24%27%
53%
Brazil Wind Austria Wind Peru Wind Solar PV Spanish CSP Vorotan Brazil Hydro
Renewable Fleet Capacity FactorsMost clusters at or above long-term expected levels
Renewable fleet capacity factors (actual vs. long-term expected for H1)
(1) Long term expected capacity factors before repowering program completion(2) Hydro plants are less affected by generation; primarily rewarded on capacity or regulatory payments as opposed to individual plant generation
1
Wind Solar Hydro
9
2 2
(1%)
(2%)
4%
3%(2%)
Expected H1 2019 Expected H1 2019 Expected H1 2019 Expected H1 2019 Expected H1 2019 Expected H1 2019 Expected H1 2019
Expected and actual capacity factors are for H1 only. Seasonality of resource means majority of renewable generation occurs in H2
0%
0%
10
3. Financial ResultsStefan SchellingerExecutive Vice President & Chief Financial Officer
Asa Branca Wind Farm (Brazil) 10
11
434
536 610
226 300
576
2017A 2018A LTM H12019
H12018
H12019
513
610
706
262
357
650
2017A 2018A LTM H12019
H12018
H12019
Robust Financial PerformanceSignificant growth in all key financial metrics
(1) Adjusted EBITDA and FFO are non-IFRS measures as defined in IPO Prospectus(2) Pro forma numbers: Adjusted to reflect full year contribution of Spanish CSP(3) Growth based on 2017 to LTM H1 2019 (CAGR)(4) EBITDA includes net gains from farm down transactions of $46m
Adjusted EBITDA1
($m)
+24%3 +26%3
FFO1
($m)
2
Proportionate Adjusted EBITDA($m)
2
+25%3
11
+36% +33% +53%
4 4
2
256 302
361
111
170
330
2017A 2018A LTM H12019
H12018
H12019
12
120 119 119 129 131 184
214 214
10 3 52
46
(1)
(16)
Adj. EBITDA H12018
Availability Resource Other Organic Acquisitions Farm downs FX Impact andOther
Adj. EBITDA H12019
163 163 161 161
9
(11)
Adj. EBITDA H1 2018 Availability and dispatch FX Impact and Other Adj. EBITDA H1 2019
Successful Integration of New Business Driving Growth
ADJUSTED EBITDA – THERMAL DIVISION ($m)
ADJUSTED EBITDA – RENEWABLE DIVISION ($m)
1
(1) Spanish CSP Acquisition closed on May 10th, 2018
78% increase
1%decrease
Austria Wind: +$4m / Solar assets: +$3m / Hydros: +$1m / Others: +$2m
+$50m CSP Spain
Increased availability and higher dispatch
12
1
11
BRL and EUR depreciation
13
Significant Cash Conversion Achieved in H1 2019
(1) Funds From Operations is defined as Cash Flow from Operating Activities excluding changes in working capital, less interest paid, less maintenance capital expenditure, less distribution to minorities. Funds from Operations is a non-IFRS measure.
(2) Includes net cash gain on sale of minority interests in CSP and Solar Italy and Slovakia(3) Cash conversion rate defined as FFO / Adjusted EBITDA
H1 2019 ADJUSTED EBITDA TO FFO1
(2)
13
48% cash conversion³(42% in H1 2018)
357.2
169.8
1.5
(100.8) (8.1)
(19.7)(14.3)
(46.0)
Adjusted EBITDA Interest paid Income tax paid Maintenancecapex
Cash distributionminorities
JV and Associates Net gain on farmdowns
Funds fromOperations
14
4.1x 4.4x
4.0x
2017A 2018A LTM H1 2019
Jun-19 liquidity – ($m)
Ample Cash Resources to Support Future Growth and DividendImprovement in Net debt / EBITDA metric – at the lower range of 4.0x-4.5x guidance
• $2.9bn Net Debt as of June 30, 2019
• Committed to high value growth while maintaining strong BB credit metrics
• Improvement in Net Debt / EBITDA metric to 4.0x
• $497m liquidity at parent level, including $445m of cash and $52m undrawn capacity under corporate level revolver
14
299
796 445
52
Asset LevelCash
HoldCoLevel Cash
RevolvingCreditFacility
TotalLiquidityJun-19
Net Debt/EBITDA (x)Jun-19 net debt – ($m)
(1) Restricted cash at the operating assets’ level(2) Unrestricted cash at the HoldCo level(3) Includes full year earnings of Spanish CSP, which was acquired in May 2018 (+$40m of Adjusted EBITDA based on FY Earnings)
(3)
2,744 2,857
857
(744)
ProjectDebt
CorporateDebt
Cash Net DebtJun-19(IFRS)
(1) (2)
15
90 99
2018A 2019E
• 2018 dividend of $0.1342 per share or $90m
• 2019 guidance of $0.1476 per share or $99m
• ContourGlobal declare a second quarterly dividend for 2019 of $24.75m corresponding to 3.6901 USD cents per share to be
paid on September 6, 2019
ContourGlobal’s strong and predictable cash flow supports our commitment to dividend growth of 10% p.a.
15
Dividend – ($m)
$0.1476 per share
Dividend policy of 10% annual Growth
$0.1342 per share
1616Sao Domingos II Hydro Power Plant (Brazil)
4. GrowthJoseph C. BrandtPresident & Chief Executive Officer
17
Mexican Cogeneration Business Acquisition Signed in Jan 2019; closing expected in Q3 2019
• Acquisition of natural-gas fired combined heat & power assets
with 518MW of operational capacity at completion, potential
for a further 414MW in development
• More than 90% contracted revenues including heat and steam
with seller
• Integration of Mexico CHP¹ is progressing as planned with all
key integration workstreams on track
• Commissioning of 414 MW CGA 1 plant progressing with COD²
and closing expected in Q3 2019
• $590m project financing underwritten by Scotiabank to be
syndicated in Q3 2019 with syndication progressing well
• 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(2) Commercial Operations Date
18
Latest development
• Resignation of Prime Minister and potential change of government creates timing uncertainty
State-of-the-art coal plant
• State-of-the-art coal plant with Best Available technology
• The new plant will replace Kosovo’s current plant, the most polluting plant in Europe emitting 9 times more damaging particulate matter than the average of coal plants in the Balkans.
• It’s expected to significantly decrease all emissions, including CO2 , resulting in significantly improved environmental and health outcomes
EPC Contract
• General Electric selected as EPC preferred bidder in May 2019
• Awarded after a highly competitive procurement process for turn key contract
Key Areas of Progress in 2018-19
Major Milestones So Far
Project Agreements Effective Date May-2018
Receipt of EPC Technical Proposals Dec-2018
EPC Selection Announcement May-2019
Signing of EPC contract Q3 2019
KosovoGeneral Electric Selected as EPC Preferred Bidder; Resignation of Prime Minister Creates Potential Delay
Financing
• Financing consists of a mix of Development Finance Institutions (“DFI”) and Export Credit Agencies (“ECA”)
• ECA is driven by EPC bidder selection. ContourGlobal engaged with multiple parties
19
Renewable UpdatesFurther Growth with both Strategic Projects and M&A. Successful Refinancing at Solar Assets
Installed Capacity(1) : 1,820 MW Adjusted EBITDA H1 2019: $214m
(1) As of June 2019, including Solar Italy Interporto acquisition(2) Feed in tariff (3) Assuming consistent amount of debt
Austria Wind Repowering
• Phase 1 (30 MW): Repowering of Velm (13 MW) reached COD on 31st Jan 2019 on time and below budgeted cost, with FiT secured for 13 years;
• Scharndorf (17 MW) to complete in H2 2019 / H1 2020 , with FiT secured for 13 years
Solar Europe Growth
• Acquisition of a 12.4MW add-on Solar Italy asset completed in June 20 – rooftop PV solar portfolio with average remaining FiT² period of 13 years, located close to existing Northern Italy hub
• Strong Solar Europe pipeline identified for future growth
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
• Expected Results: Vorotan EBITDA increases by approx. $7m from 2019 to 2021
Solar Italy and Solar Slovakia Refinancing
• Refinancing of Italian and Slovakian solar businesses in two separate financings• €196m refinancing in Solar Italy – increased tenor by 2.7 years from 8.9 years to 11.6
years and reduced interest costs by 1.49% p.a. (incl. breakage costs) from 4.14% to 2.65%
• €51m refinancing in Slovakia – increased tenor by 1.4 years from 5.4 years to 6.8 years and reduced interest costs by 1.95% p.a. (incl. breakage costs) from 4.48% to 2.53%
• €4m interest savings on an annualized basis³
20
Thermal UpdatesContinuation of established projects across geographies: Battery Upgrade Project implemented in Bonaire, serving as Pilot Project for future growth
Installed Capacity(1) : 3,027 MW Adjusted EBITDA H1 2019: $161m
(1) As of June 2019, including Mexico CHP and Cogeneration Assets(2) Reliability charge is a regulated fixed monthly fee to incentivize base load plants to be available
• With the acquisition of Bonaire in 2013, the company moved into a newhybrid technology and gained further expertise in battery storage withoutassuming construction risk
• In 2018 we commenced an innovative battery replacement and hybridexpansion project, which will enable us to integrate more wind energy intothe system and further reduce costs to the island customers
• Project status:
• Phase 01: Successfully implemented 6 MW/MWh Battery upgradeproject in Q1 2019. 7.7 GWh production increase
• Phase 02: Replace rented engines and ensure security of supply andgrid stability COD in Nov 2019
• Phase 03: 10 MW PV plant, 7-10 MW wind park expansion andadditional battery capacity
• Expected Results: Upon completion, the project will increase the energyproduction in line with growing energy demand on the island, achieve furtherenergy tariff reductions and increase the renewable mix on the island.Moreover, ContourGlobal will become the sole power producer on theisland.
Bonaire Hybrid Concept, a 24
MW integrated Wind, Diesel and Battery Power Plant
TermoemCali Reliability
charge assignment
extension and refinancing
• $80m refinancing: $45m long term and $35m working capital facility completed following Reliability Charge2 (the primary source of EBITDA for this peaker CCGT plant) assignment extension until November 2023.
• Optimizes capital structure and demonstrates long-term positive outlook for the asset post current regulatory period
21
Appendix
21Sao Domingos II Hydro Power Plant (Brazil)
22
17%
15%
6%
17%
14%
23%
8%
Coal Natural Gas
Fuel oil High Efficiency Cogen
Wind Solar
Hydro
Maintaining a Diversified Footprint Across Geographies and Technologies
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 signed in January 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%
23
+$95m: Growth driven mainly by the CSP acquisition (full 6 months), CSP farm down and higher resource partially offset by negative FX impact due to weaker EUR and earn-out payments to make to Credit Suisse related to Italy farm down (non cash in H1 2019)
+$7m: In H1/2018, related essentially to all CSP acquisition costs (M&A closed). In H1/2019, related essentially to Mexico CHP (M&A not yet closed)
+$46m: CSP farm down net profit ($52m) partially offset by net amount of earn-outs on farm down of Italy and Slovakia ($6m)
+$25m: Largely driven by CSP acquisition (full 6 months)
+$21m: Increase in finance costs largely driven by (i) the Slovakian and Italian refinancings which required early settlement of the existing swaps ($11m) and immediate recycling to P&L of deferred financing costs ($4.2m, non-cash), and (ii) full six month impact of Spain CSP interests, partially offset by lower interests on the corporate bond following July 2018 refinancing.
Adj. EBITDA to Adj. Net Income1 Bridge
23
11
2
2
3
35
5
4
4
(1) Net income adjusted for one-off items
5
Adj. EBITDA to IFRS net income bridge (US$m) H1 2019 H1 2018
Adjusted EBITDA 357.2 261.8
Share of adjusted EBITDA in associates (10.1) (12.0)
Share of profit in associates 8.3 2.8
Acquisition related items (5.3) (12.3)
Costs related to CG Plc IPO - (0.8)
Cash gain on sale of minority interest (46.1) -
Restructuring costs (0.1) -
Private incentive plan (4.7) -
Other (1) (16.7) (19.2)
EBITDA 282.5 220.3
Depreciation & Amortization (131.5) (106.4)
Finance costs net (127.7) (107.0)
Income tax (17.2) (4.2)
Net Income 6.0 2.7
Bond refinancing one-off cost - -
CG Plc IPO costs - 0.8
Acquisition related items 5.3 12.3
Italian / Slovakian refinancing 15.4 -
Restructuring costs 0.1 -
Private incentive plan (non cash, non PLC cost) 4.7 -
Adj. Net Income 31.5 15.8
Minorities (8.1) (1.0)
Net Income attributable to Group 14.1 3.7
24
Financial HighlightsKey financial metrics
24
Six months ended June 30 Var Var %
In US$ millions 2018 2019
Revenue 535 617 82 15.3%
Gross profit 144 171 27 19.1%
SG&A (22) (20) 2 (10.5%)
Adjusted EBITDA 262 357 95 36.4%
Proportionate EBITDA 226 300 74 32.6%
Operating profit 112 143 31 27.4%
Net finance cost (107) (128) (21) 19.4%
Income tax expense (4) (17) (13) 309.5%
Net profit / (loss) after income tax 3 6 3 122.2%
Basic earnings per share (pence) 0.01 0.02 0.01 110.4%
FFO 111 170 59 53.2%
25
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
25
Top Contributors to Adj. EBITDA1 2016 2017 2018 H1 2019
Top contributors from Thermal fleet
Maritsa East III 117 125 120 62
Arrubal 62 61 63 31
KivuWatt 22 24 26 12
Cap des Biches 12 26 27 14
Togo 21 25 25 13
CG Solutions2 12 27 27 10
Caribbean 21 27 24 12
Colombia 21 22 21 10
Others (0) 2 1 (0)
Top contributors from Renewable fleet
Spanish CSP - - 89 67
Brazil Wind 79 82 59 21
Solar Europe, excl. CSP3 31 31 41 23
Brazil Hydro 9 28 41 22
Peru Wind 31 25 29 15
Austria Wind 23 25 20 14
Vorotan 22 23 23 12
Others - - - (0)
Total 485 553 638 339
26
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) 2018 and LTM H12019 not including thermal and renewable holding costs
4
26
Contributors to CFADS(Before Corporate and Other Costs)1 2016 2017 20184 LTM H1 20194
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
Togo 6 6 7 5
Caribbean 10 9 5 4
Brazil Wind 2 5 (0) (2)
Total 349 270 249 298
27
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 $m or multiple
Continued Strong Bond Credit Metrics7.4x DSCR & 3.6x Non-Guarantor Combined Leverage Ratio as of June 2019
27
(1) DSCR and Leverage Ratio (Non-guarantor combined leverage ratio) as defined in Bond Indenture. Please see slide 31 for calculation of Bond Indenture Leverage Ratio, including Proportionate Adjusted EBITDA and NGPTI (Non-Guarantor Proportionate Total Indebtedness) .
5x
202
301
237 232
291
203
251
32 33 41 41 43 34 34
6.3x
9.2x
5.7x 5.6x
6.8x
6.1x
7.4x
(0.5x)
0.5x
1.5x
2.5x
3.5x
4.5x
5.5x
6.5x
7.5x
8.5x
9.5x
-
50
100
150
200
250
300
350
400
450
500
Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19
CFADS (LTM) Annualized Debt Service
DSCR Incurrence Level (2x min)
2x
28
Reconciliation of Bond Metrics to IFRS Financials
Bond metrics definitions use Proportionate Adjusted EBITDA (“PAE”) and Non-Guarantor Proportionate Total Indebtedness(“NGPTI”) to calculate leverage ratios. These definitions exclude Corporate Level Financings and Project Finance Subsidiaries(“PFS”) (projects not yet reached, or recently passed, COD). As of December 31, 2018, no project is treated as a PFS.
PAE (Proportionate Adjusted EBITDA)
• Includes our share in JVs (Sochagota & TermoemCali)
• Pro forma for acquisitions mainly relates to our acquisition of theSpanish CSP portfolio
NGPTI (Non-Guarantor Proportionate Total Indebtedness)
• Excludes debt at parent company level (corporate bond)
• Increase in gross debt and NGPTI relating to our acquisition ofthe Spanish CSP portfolio
28
Calculation of PAE ($m) Dec-18 LTM Jun -19
Income From Operations 262 293
Depreciation & Amortization 239 264
Share in JVs 21 19
Other 88 129
Adjusted EBITDA 610 706
Pro Forma Acquisitions 46 13
Project Finance Subsidiaries (PFS) - -
HoldCos & Other 20 21
Pro Rata Adjustment (97) (173)
PAE 580 567
Calculation of NGPTI ($m) Dec-18 Jun-19
Non-current Borrowings 3,287 3,342
Current Borrowings 273 260
Consolidated Gross Debt 3,560 3,601
Accrued Int & IFRS Adj. 53 41
Share in JVs 6 13
Project Finance Subsidiaries (PFS) - -
Peru Wind Letter of Credit 9 9
DSRA (185) (117)
Corporate Bond (860) (853)
Pro Rata Calculation (361) (665)
NGPTI 2,222 2,029
29
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 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 155 10 Wind 94% 2003-2014 OeMAG 2016-2027
Inka Peru 114 2 Wind 100% 2014 Distribution companies 2034
Solar Italy4 Italy 77 48 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
Biogas Italy Italy 2 2 Biogas 100% 2013 Gestore Servizi Energetici S.p.A 2028
Total Renewable 1,809 85
Total portfolio 4,847 108
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 20 clusters. Includes InterPorto acquisition, which was completed in June 2019(5) Signed but not closed
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IR InformationNext Event & Contact Point
Date Event Location
8th August H1 2019 Results CallDial-in details available on
website
3 – 4th SeptGoldman Sachs EMEA
Leveraged Finance London
5 – 6th SeptJP Morgan European
High Yield and Lev Finance
London
12 – 13th SeptMorgan Stanley Power
and Utility Summit London
Alice HeathcoteSVP, CFO RenewablesEmail: [email protected]
or
Corporate Websitewww.contourglobal.com
Investor Relations www.contourglobal.com/investors
IR ContactNext IR Events
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Web Resources
