goldman sachs emea leveraged finance conference 2020
TRANSCRIPT
Goldman Sachs EMEA Leveraged Finance Conference 2020September 8, 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
1. ContourGlobal Snapshot
KivuWatt – Methane Gas Extraction Facility & Power Plant (Rwanda)
Focused Business Model: to acquire or develop and operate long term contracted power generation assets
Long-term contracts and regulated tariffs with significant risk mitigtion delivering stable and secure cash flows
Diversified footprint by geography and technology: each asset category contributes less than 15% group EBITDA
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
High cash flow conversion: provides strong income protection while leaving significant liquidity for growth
Longstanding commitment to ESG and sustainability principles: embracers of the United Nations Global Pact (UNGC) Principles since 2010
Business HighlightsLong-term contracted power generation company
$703m 2019A EBITDA ($697m LTM H1 2020A) 4.8 GW H1 2020 contracted generation
PortfolioThermal SolarWind Hydro Biogas
High Efficiency Cogen
4
ü Strong financial performance with Adjusted EBITDA +13% (adjusted for H1 net farm-down gains1); down 2% including net farm-down gains in H1 2019
ü No meaningful impact on operations or financial performance from COVID-19
ü PPA performance intact – no delay in cash collections or bad debt provisions and no
meaningful demand related reductions
ü Ongoing share buy-back, with £8 million repurchased,
ü Reflecting the Board’s view that the shares do not reflect the full intrinsic value of the Company
ü Maintain guidance for 2020 of Adjusted EBITDA of $710 – 745 million2
ü Positive outlook for future growth and acquisition of assets, assisted by strong financial position – total liquidity of $633m as of June 2020, including HoldCo cash of $188m and revolving credit facility of $84m
(1) Net farm-down gains of $46m in H1 2019 from CSP Spain and Solar Italy and Slovakia(2) Based on constant exchange rates from 2019 of EUR/USD 1.12 and BRL /USD 0.25, and assuming no prolonged disruption to human resource and supply
chain arising from the current COVID-19 pandemic.
H1 2020 Consolidated results – Strong Results and Business Model Validation Amidst COVID-19 Crisis
COVID-19: No material impact given resilient business modelFocused on protecting our employees and supporting the community
Protecting employee safety
Ensuring business resilience
Supporting the community
þ
þ
þ • PPA performance intact – no bad debt provisions and no meaningful demand related reductions• Proactive measures to shift patterns and staffing • Remote monitoring and operating technology• Sufficient levels of critical spares and inventory• Power plants and offices are interconnected with video, audio and data
• Social investment redirected to alleviate the impact of COVID-19 on our local communities
• 74 projects with total investment of $1.7m, focus on food, medical equipment, PPE, testing capacity and infrastructure
95%
80%
Testing
Operations personnel working on site
Office personnel working remotely
Company-led testing since April, 62 infections detected1
Workforce support
$2.2m extra compensation for front-line workers; global COVID-19 insurance program for all CG employees, covering hospitalization and recuperation costs
10%
15%
17%
20%
29%
9%
Food
Medical equipment
Other equipment
PPE
Testing capacity
Infrastructure
(1) 42 CG employees and 20 contractors
2020 Social Investment Program
6
COVID-19 Risk AssessmentCG power generation activities fall between low and medium in terms of infection and outbreak risk
Proximity of exposure
Exte
nt o
f exp
osur
e 1
2
3
High
Low
Less More
1. Significant public interaction –Airports, Hotels, Public transit, stadiums and theme parks
2. Isolated/Solo – Construction and repair services
3. Professional working spaces –Large and small offices, research lab
4. Large confined spaces - factories
4
RenewableThermal
PROXIMITY AND EXTENT OF EXPOSURE IN SELECT WORK ENVIRONMENTS
Source: Framework adopted from McKinsey Risk Practice Report (Reopening safely: Sample practices from essential businesses) 7
8CGA Combined Heat and Power 440MW (Mexico)
2. Business Model
Health & Safety - Our Key Value Since InceptionWe continue to “Target Zero”
• 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• “One company, one policy” – we commit to maintaining 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• Recently admitted as a Member of the Campbell Institute at the
National Safety Council
(1) Lost Time Incident Rate (LTIR) is an industry standard reporting convention for calculating incidents in the workplace. LTIR measures recordable lost time Incident (LTI) rates based on 200k working hrs(2) Total Recordable Incident Rate (TRIR) is an industry standard reporting convention for calculating recordable incidents in the workplace. TRIR measures the total lost time incident rates, restricted workday cases and medical
treatments on the basis of 200k working hrs(3) 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(4) Selection of comparable peers from commissioned study performed by Black & Veatch of comparable US and European power generation companies(5) Based on the 2018 report for days away from work cases injuries and illnesses from the bureau of labor statistics
LTIR1 / TRIR2 compared to Peers3 – Industry leader in H&S with KPI significantly better than industry benchmarks
2020 Safety ScorecardTarget Zero achieved in 2020. No LTI in H1 2020
2.6MMan hours worked without a lost time incident in 2020
3.4MMan hours worked since the last lost time incident in November 2019
82%Reduction in Total Recordable Incident Rate in 5 years
91% less TRIR than US Industry and 76% less than peers top quartile
45
45
LTIR TRIR0.90
0.34
0.08
US Utility Industry Selected Peers TopQuartile
CG H1 2020
0.70
0.17
-
US Utility Industry Selected Peers TopQuartile
CG H1 2020
9
◼ Long-term contracts typically with state-owned or supported utilities or large investment grade companies, or stable regulatory regimes (avg. credit rating BBB-)
◼ Policy to generally place Political Risk Insurance on contracts in emerging markets
◼ Typical Thermal PPAs virtually eliminate commodity risk via fuel and CO2 emission cost pass-through mechanisms
LimitedCredit Risk
LimitedDuration
Risk
NoCost Risk
NoPrice Risk
◼ Long-term contracts, weighted average remaining contract life of 10 years
◼ Fixed-price contracts that typically contain inflation pass-through terms
◼ Thermal: No volume risk; plants paid full capacity payment irrespective of off-taker demand
◼ Renewables: Plants typically paid set price based on MWh produced
NegligibleRevenue /
Volume Risk
Resilient Business ModelBusinesses operate with fixed-price, long-term contracts or regulation with creditworthy off-takers
10
Our specific and highly selective criteria for investment differentiates us from many traditional utilities
55%31%
13%
IG Non IG with PRI Non IG
1
1
3
3
4
4
5
5
6
10
10
13
14
15
15
16
16
17
20
21
Arrubal
French Carribbean
Solutions
Termoemcali
Sochagota
Maritsa
Bonaire
Austr ia Wind
Solar S lovakia
Solar Italy
Mexico
Asa Branca
Inka
Togo
Chapada Complex
Spain CSP
Cap des Biches
Hydro Brazil
Vorotan
KivuWatt
11
Stable Long Term Contracted / Regulated RevenuesInvestment Grade Off-Takers and Weighted Average Remaining Contracted / Regulated Term of 10 Years
Remaining Contracted / Regulated Life by Asset (Years)1,2
Current contracts / regulated revenues
have a weighted average remaining
term ofc.10 years
% of Total Estimated Adjusted Revenues in 2020E
>98%
Contracted / Regulated revenue Uncontracted / Unregulated revenue
(1) For assets with multiple PPAs, numbers shown based on midpoint of the expiration dates for such PPAs; data as of 30 June 2020 (3) Based on S&P and Moody’s Ratings(2) Weighted by adjusted EBITDA before corporate and holding company costs. (4) Excluding Corporate Costs
LTM H1 2020 Adjusted EBITDA by Credit Rating3,4
Average Off-Taker Credit Rating of BBB-/Baa3, or BBB+/A3 after Political Risk
Insurance
87%
51%
11%
38%
Europe Africa Latin America
18%
11%
7%
3%
18%
14%
22%
7%
Coal Natural GasFuel oil BiogasHigh Efficiency Cogen WindSolar Hydro
Highly Diversified FootprintEBITDA Splits
LTM H1 2020 PF EBITDA by Technology1
LTM H1 2020 PF EBITDA by Currency1
LTM H1 2020 PF EBITDA by Geography1
(1) PF for full year EBITDA of Mexican CHP acquisition completed in November 2019 ($110m). Split excludes Thermal and Renewable HoldCo expenses
Renewable44%
HE Cogen18%
Thermal39%
54%
28%
10%
5% 3%
EUR USD BRL BRL hedged to USD Other
12
21%
11%
3%
2%24%
16%
16%
7%
Coal Fuel oilNatural Gas BiogasHigh Efficiency Cogen WindSolar Hydro
LTM H1 2020 CFADS by Technology1
LTM H1 2020 CFADS by Currency1
LTM H1 2020 CFADS by Geography1
Renewable38%
HE Cogen24%
Thermal38%
13
60%
9%
31%
Europe Africa Latin America
60%
31%
1%9%
EUR USD BRL Other
(1) Asset CFADS excluding cash overhead at corporate level and Thermal and Renewable HoldCos
Highly Diversified FootprintCFADS Splits
Improving Cost Structure While Increasing Operational Performance
Proven track-record of creating significant value in acquisitions through operational improvement
Asset Size Plant Type
908 MW LigniteMaritsa
800 MW Gas-firedArrubal
150 MW WindAustria Wind
65 MW Solar PVSolar Italy
28 MW Wind & HFOBonaire
250 MW Solar CSP Spanish CSP
Fixed Cost Reduction Availability Other Operational Improvements
ü
ü
ü
ü
ü
ü
22%
20%
32%
16%
26%
12%
ü
ü
ü
ü
ü
ü
2%
2%
1%
3%
2%
4%
€2m fuel savingsü
ü Insourced Operations; Zero LTI
ü Repowering
O&M insourcedSell-down of 49% of asset for ~2x net equity value
ü
Zero LTIs since 2015ü
Sell-down of 49% of asset for ~2x net equity valueü
Value Lever
14
30%
51%
19%
35%
51%
81%
PeersAverage
CG PeersAverage
CG Thermal PeersAverage
CGRenewable
Sector Leading Operational and Financial Delivery
Resilient Cost Structure and EBITDA Margins1
(1) Based on 2019A results. Thermal and Renewable margins include corporate SG&A fully allocated proportionately to each division based on EBITDA
Fixed Costs to Variable Margin (%)
450 bps.
+21%
+16%
+30%
31.0%27.7% 28.8%
26.5%
2016 2017 2018 2019
üContinued focus on strong margins and efficient cost structures through streamlined operations – EBITDA margins consistently higher than peers
ü450bps decrease in Fixed Cost / Variable margin vs. 2016 levels on a run-rate basis
15
90.2% 92.8% 93.2% 97.4%
2018 2019 H1 2019 H1 2020
Divisional Operating PerformanceStrong availability factors across the fleet
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
74% weighted average PPA minimum availability requirement
• Strong availability across the Thermal fleet consistently significantly above the weighted average PPA minimum availability requirement
• Stable performance of the wind fleet
16
• Decrease in EAF due to planned outage in the Vorotan complex and unplanned outage in Brazil
• Stable performance of the CSP fleet• Increase in PV EAF due to good technical performance,
operational improvements and good asset management
95.8% 95.8% 96.1% 96.3%
2018 2019 H1 2019 H1 2020
98.5% 97.9% 98.2% 96.3%
2018 2019 H1 2019 H1 2020
99.2% 99.3% 98.3% 99.6%95.3% 93.3% 94.6% 94.6%
2018 2019 H1 2019 H1 2020
Solar PV Solar CSP
0.79 0.66 0.62 0.56 0.58 0.54
2015 2016 2017 2018 2019 H1 2020
Long Standing Commitment to Sustainability and ESG principlesDesigned around 4 key sustainability principles linked to the UN SDG’s and Global Compact
• H&S is included in our value statement and is our number 1 priority• Rigorous management of plant cost and performance against set targets and
industry benchmarks to improve efficiency reducing fuel and water consumption• Increased production from renewable energy and efficient cogeneration energy• Commitment to continue reducing our CO2 emissions intensity (32% reduction
since 2015)
Operate Safely and Efficiently and Minimize Environmental
Impacts
• Investment focus on cleaner technologies, such as high efficiency cogeneration and concentrated solar power• Provide reliable and low-cost electricity using best in class technology to
underserved countries• Pursue acquisition opportunities where we can improve performance and invest
additional capital• Commitment to stop investing in new coal-fired power plantsGrow Well
CO2 emissions (tonnes) / MWh
100% 73% 100% 100% 100%
2015 2016 2017 2018 2019
Low-carbon investment
17
40%
60%Male
Female
• Adhere to and promote highest standards of corporate governance and business ethics• Performing failure analysis and lessons learned is in our values statement and is
applied to all activities• Apply continuous improvement methodology to governance and social
commitments• Annual compliance deep dives and third-party audits• Monetary incentives for suppliers who commit to our sustainability
principles and agree to an ESG audit
Manage our Business
Responsibly
• Improve the regulatory, commercial and social environment in which we operate through investment, engagement, and establishment of strategic partnerships• Advocate for transparent business processes and build capabilities• Make the places we operate better because we are there• Meet community needs, particularly in developing countries• $2.3m investment in social projects in 2019 and 147 approved projects
Enhance our Operating
Environment
Executive Management Gender Diversity Bonaire 2019 Going Beyond Power Award
Our ESG contractor incentive program led to our contractor ILTEKNO becoming a signatory to the United Nations Global Compact (UNGC) principles, achieving preferred supplier status, and receiving the first ever Going Beyond Power Award given to companies that formally adopt the UNGC, undergo a rigorous ESG audit, and achieve exemplary H&S performance
38%
18%16%
13%
13%
2%Quality education
Reduced inequalities
Sustainable cities and communities
Good heal th and well-being
Partnership
Other goals
2019 social investment program
18
Long Standing Commitment to Sustainability and ESG principlesDesigned around 4 key sustainability principles linked to the UN SDG’s and Global Compact
3. Financial Highlights and Growth Strategy
Asa Branca Wind Farm 160MW (Brazil) 19
305 331
440
513
610
657
697
311
351
2014 2015 2016 2017 2018 2019 LTM H12020
H12019
H12020
Adj. EBITDA Net farm-down gains
Financial and Credit SnapshotHigh value growth
(1) Pro forma for full year expected earnings of Mexican CHP, which was completed 25 November 2019 (additional $64m of incremental Adjusted EBITDA based on FY Earnings)(2) Adjusted EBITDA is a non-IFRS measure as defined in IPO Prospectus(3) Excluding the net farm-down gains of $46m in Q2 2019 from farm-downs in CSP Spain and Solar Italy and Slovakia
Liquidity at Parent Level $272m
Debt Maturing by or after Jun-2023
Key Financial Metrics H1 2020
Net/Debt EBITDA1 4.4x
+18% growth vs. 2017Ac. 75%
Adj. EBITDA2 Evolution ($m)
4
~80%
703
357
+13%3
2014- H1 2020
CAGR 16%
Non-Recourse Debt
3
3
20
536 562 537 300 275
2018A 2019A LTM H12020
H1 2019 H1 2020
610 703 697 357 351
2018A 2019A LTM H12020
H1 2019 H1 2020
617 680 743 617 680
2018A 2019A LTM H12020
H1 2019 H1 2020
302 338 340 170 172
2018A 2019A LTM H12020
H1 2019 H1 2020
(1) Adjusted EBITDA, Proportionate Adjusted EBITDA and FFO are non-IFRS measures as defined in IPO Prospectus(2) Excluding the net farm-down gains of $46m in Q2 2019 from farm-downs in CSP Spain and Solar Italy and Slovakia(3) Excluding FX effect
Robust Financial PerformanceSolid performance despite global pandemic
Adjusted EBITDA1 ($m)
21
Revenue ($m)
FFO1 ($m)
Proportionate Adjusted EBITDA1 ($m)
+10% -2%
-8%
+1%
• Mexican CHP acquisition (+$99m) and Maritsa higher electricity sales (+$27m), offset by lower Arrubal revenue due to lower generation (-$33m) and foreign exchange rate (-$30m)
• Mexican CHP acquisition (+$46m), higher availability revenueand lower O&M costs (+11m), commercial improvements(+$6m) and full effect of acquisitions and repowerings (+$4m), offset by farm-down gains from Spanish CSP and Solar Italy and Slovakia in H1 2019 (-$46m), poorer resource in Spanish CSP, Brazil Wind and Vorotan (-$12m) and foreign exchange rate movements (-$17m).
• Decrease in Proportionate Adjusted EBITDA higher than decrease in Adjusted EBITDA mainly because of the 6-month impact of the Spanish CSP farm-down completed in May 2019
+13%2
+8%2
Cash conversion
49%
+3%3 +182,3
361
633 188
84
Asset LevelCash
HoldCoLevel Cash
Revolvingcreditfacility
TotalLiquidityJun-20
Jun-20 liquidity ($m)
Ample Cash Resources to Support Future Growth and DividendNet debt / EBITDA metric within the 4.0x-4.5x guidance
• $3.3bn Net Debt as of June 30, 2020
• Committed to high value growth while maintaining strong BB credit metrics
• Net debt / EBITDA metric within the 4.0x-4.5x guidance
• $272m liquidity at parent level, including $188m of cash and $84m undrawn capacity under corporate level revolver
• Strong balance sheet and credit rating, flexible access to capital with no near-term refinancing requirements
22
Net Debt/EBITDA (x)Jun-20 net debt ($m)
(1) Restricted cash at the operating assets’ level(2) Unrestricted cash at the HoldCo level(3) Converted from EUR to USD at a rate of 1.1247(4) Pro forma for full year expected earnings of Spanish CSP, which was completed in May 2018 (additional $40m of incremental Adjusted EBITDA based on FY Earnings)(5) Pro forma for full year expected earnings of Mexican CHP, which was completed 25 November 2019 (additional $100m of incremental Adjusted EBITDA based on FY Earnings)(6) Pro forma for full year expected earnings of Mexican CHP, which was completed 25 November 2019 (additional $64m of incremental Adjusted EBITDA based on FY Earnings)
4
1 2
3
5
2,898 3,317
968
(548)
ProjectDebt
CorporateDebt
Cash Net DebtJun-20(IFRS)
4.4x 4.4x 4.4x
2018 2019 H1 2020 6
274 296 233 218 190
1,744
506
449
Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Due after Jun-25
Project Debt Corporate Debt
Capital structure and primary use of non-recourse debt significantly reduces future refinancing risks
Gross debt maturity as of June 2020 ($m)
ü ~75% of debt is at the asset level and non-recourse to ContourGlobal
ü Project debt matched to currency of revenues
ü Project debt has regular amortization schedule and is typically fully paid before end of PPA or regulation lifeü In unlikely event of project underperformance, the debt is not recourse to the parent
23
~80% of debt due in or post Jun-2023
24
Our Approach to GrowthDelivering stable cashflows for dividends and reinvestment
(1) Based on LTM H1 2020 Adjusted EBITDA
Low carbon ‘ContourGlobal’ assets
• Renewable technologies
• High efficiency gas and co-generation including with CO2 capture
• Strict financial hurdles with attractive long-term cash IRR
• Consistent with long-term contracted power generation strategy
Optimize returns
• Improve operations• Health & Safety• Technology• Focus on costs
• EBITDA margins significantly above peers
• Up to 30% fixed cost reductions on acquisitions
• Achieving up to 400bps increases in availability
• Consistent record of value creation
• Stable long-life income stream (weighted-average remaining contract life of 10 years1)
• Controlled price and volume risk
• Limited customer credit risk
• Mitigated debt and political risk
• Retain operating control and risk
Identify assets Lead with operations Deliver value / mitigate risk
Reliable, low risk, long term cash generation
25
Growth remains focused on long-term contracted assets, primarily acquisitions
North America and Caribbean
2 GW gas opportunities primarily located in
regions with long-term need for reliable supply
to stay online
Central and Latin America
1 GW renewable energy opportunities
in USD markets
Europe1.5 GW opportunities
with focus on both gas and renewables; particular focus on
platform expansions
Attractive pipeline of low carbon technologies across different regions
Africa300 MW
renewable and natural gas greenfield
Appendices
Sao Domingos II Hydro Power Plant (Brazil) 26
Financial HighlightsKey financial metrics
27
In US$ millions H1 2020 H1 2019 Var Var %
Revenue 680 617 63 10%
Gross profit 186 171 15 8%
Adjusted EBITDA 351 357 (6) (2%)
Proportionate EBITDA 275 300 (25) (8%)
Income from operations 158 143 16 11%
Net finance cost (63) (128) 65 (51%)
Profit before tax 102 23 78 338%
Income tax expense (27) (17) (10) 56%
Net profit 75 6 69 1,147%
Adjusted Net Profit 50 31 19 60%
Basic earnings per share (pence) 0.11 0.02 0.09 404%
FFO 172 170 2 1%
Contributors to Adj. EBITDA 2017 2018 2019 LTM H1 2020 H1 2019 H1 2020
Contributors from Thermal fleetMaritsa East III 125 120 120 126 62 68 Mexico CHP - - 10 57 - 46 Arrubal 61 63 60 58 31 29 Cap des Biches 26 27 28 27 14 13 KivuWatt 24 26 25 26 12 13 Togo 25 25 26 26 13 13 CG Solutions1 27 27 27 29 10 13 Caribbean 27 24 25 25 12 12 Colombia 22 21 22 21 10 10 Others 2 1 (0) 0 (0) 0 Contributors from Renewable fleetSpanish CSP - 89 134 127 67 60 Solar Europe, excl. CSP2 31 41 45 48 23 26 Brazil Hydro 28 41 40 38 22 20 Brazil Wind 82 59 66 62 21 17 Peru Wind 25 29 31 30 15 14 Austria Wind 25 20 24 23 14 13 Vorotan 23 23 24 19 12 8 Others - - (0) (0) (0) (0)Total asset EBITDA 553 638 706 742 339 375 Thermal and Renewable HoldCos, farm-down gains and corporate overhead (40) (27) (4) (46) 18 (24)Total Adjusted EBITDA 513 610 703 697 357 351
Contributors to Adj. EBITDA by H1 2020
(1) Includes Solutions Europe and Africa and Solutions Brazil(2) Includes Solar Italy, Solar Slovakia, Solar Romania and Biogas Italy(3) Includes $21m farm-down gains, $26m corporate overhead and $22m Thermal and Renewable HoldCos(4) Includes $46m net farm-down gains, $30m corporate overhead and $19m Thermal and Renewable HoldCos(5) Includes $46m net farm down gains, $18m corporate overhead, and $10m Thermal and Renewable HoldCos
28
3 4 5
Contributors to Prop. Adj. EBITDA 2017 2018 2019 LTM H1 2020 H1 2019 H1 2020
Contributors from Thermal fleetMaritsa East III 92 88 88 92 46 50 Arrubal 61 63 60 58 31 29 Cap des Biches 26 27 28 27 14 13 Caribbean 27 24 25 25 12 12 KivuWatt 24 26 25 26 12 13 CG Solutions1 25 25 24 26 9 11 Colombia 22 21 22 21 10 10 Togo 20 20 21 20 11 10 Mexico CHP - - 10 57 - 46 Others 1 0 (0) 0 (0) 0 Contributors from Renewable fleetSpanish CSP - 89 89 65 55 31 Brazil Wind 56 41 44 42 14 12 Peru Wind 25 29 31 30 15 14 Brazil Hydro 20 30 29 28 16 14 Vorotan 23 23 24 19 12 8 Solar Europe, excl. CSP2 31 39 23 25 12 14 Austria Wind 23 18 22 21 13 12 Others - - (0) (0) (0) (0)Total Asset EBITDA 474 564 565 582 281 298 Thermal and Renewable HoldCos, farm-down gains and corporate overhead (40) (27) (4) (46) 18 (24)
Total Proportionate Adjusted EBITDA 434 536 562 537 300 275
Contributors to Proportionate Adj. EBITDA by H1 2020
29
3 4 5
(1) Includes Solutions Europe and Africa and Solutions Brazil(2) Includes Solar Italy, Solar Slovakia, Solar Romania and Biogas Italy(3) Includes $21m farm-down gains, $26m corporate overhead and $22m Thermal and Renewable HoldCos(4) Includes $46m net farm-down gains, $30m corporate overhead and $19m Thermal and Renewable HoldCos(5) Includes $46m net farm down gains, $18m corporate overhead, and $10m Thermal and Renewable HoldCos
Contributors to CFADS
(1) CFADS (Cash Flows Available for (Corporate) Debt Service) as defined in Bond Indenture. Asset CFADS excluding cash overhead at corporate level and Thermal and Renewable HoldCos(2) Includes Solar Italy, Solar Slovakia and Solar Romania(3) Includes Solutions Europe and Africa and Solutions Brazil(4) Includes EUR40m restricted cash release in one of the Spanish CSP assets
30
Contributors to CFADS(Before Corporate and Other Costs)1 2017 2018 2019 LTM H1 2020
Maritsa 30 65 34 46
Mexico - - 45 45
Austria Wind 8 4 9 43
Solar Europe excl. CSP2 55 38 45 21
Spanish CSP - 35 77 19
Caribbean 9 5 11 18
CG Solutions3 41 15 14 15
Cap des Biches 7 17 12 12
Brazil Hydros 55 14 17 9
Vorotan 13 9 10 8
Colombia 8 4 12 7
Peru Wind 5 15 9 6
Togo 6 7 4 6
KivuWatt - 4 4 5
Arrubal 28 18 13 3
Brazil Wind 5 (0) (10) (9)
Total 270 249 307 253
4
214
155
4
(46) (6) (12)
Adj. EBITDA H1 2019 Scope Farm-downs Commercial andresource
FX impact Adj. EBITDA H1 2020
161
213
11
46
(6)
Adj. EBITDA H1 2019 Organic Mexican CHP FX impact Adj. EBITDA H1 2020
Successful Integration of New Assets Drives GrowthAdjusted EBITDA bridges
ADJUSTED EBITDA – THERMAL DIVISION1 ($m)
ADJUSTED EBITDA – RENEWABLE DIVISION1 ($m) Farm-down gains in CSP and Solar Italy and Slovakia in H1
2019
Weaker EUR and BRL
31
InterPorto acquisition in June 2019 (+$2.6m) and Austria Wind repowering
(+$1.6m)
Weaker EUR and BRL
Mexico CHP acquisition, completed in November
2019
(1) Total divisional Adj. EBITDA of $368m before corporate overhead. Corporate overhead of $17m
Mainly higher availability revenue and lower O&M costs
Commercial improvements in Brazil wind (+$6m) offset by negative resource in Spanish CSP (-$7m), Brazil Wind (-$2m) and Vorotan (-$3m)
202
301
237 232
291
203
251 251
196
32 33 41 41 43 34 34 38 38
6.3x
9.2x
5.7x 5.6x
6.8x 6.1x
7.4x
6.6x
5.2x
(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 Dec-19 Jun-20
CFADS (LTM) Annualized Debt Service
DSCR Incurrence Level (2x min)
Leverage Ratio1 DSCR1
In $m or multiple In $m or multiple
Continued Strong Bond Credit Metrics5.2x DSCR & 3.6x Non-Guarantor Combined Leverage Ratio as of June 2020
32
(1) DSCR and Leverage Ratio (Non-guarantor combined leverage ratio) as defined in Bond Indenture
1,196 1,132
1,587 1,712
2,399 2,222
2,029
2,430 2,313
345 341 456 476
614 580 567 688 649
3.5x 3.3x 3.5x 3.6x 3.9x 3.8x
3.6x 3.5x 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 Dec-19 Jun-20
NGPTI Prop. Adj. EBITDA (LTM)
Leverage Ratio Incurrence Level (5x max)
Segment Facility / Project Name LocationGross Cap.
(MW)Number of
Assets Fuel Type1ContourGlobal
Ownership COD Power Purchaser PPA ExpirationMaritsa Bulgaria 908 1 Coal 73% 1978 NEK 2024Arrubal Spain 800 1 Natural Gas 100% 2005 Gas Natural Fenosa 2021TermoemCali Colombia 240 1 Natural Gas / Diesel 37% 1999 Various N/ASochagota Colombia 165 1 Coal 49% 1999 Industrial companies 20242
Togo Togo 100 1 Natural Gas / HFO / Diesel 80% 2010 CEET 2035Cap des Biches Senegal 86 1 Oil /Natural Gas 100% Q2 2016 /
Q4 2016Senelec 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 2025KivuWatt Rwanda 26 1 Biogas 100% Q4 2015 EWSA (ex-Electrogaz & REC) 2040 (expected)
Total Thermal 2,398 10Mexican CHP assets Mexico 518 2 Natural Gas cogeneration 100% 2014/19 Mexican industrial/commercial 2020-2040ContourGlobal Solutions Europe – Nigeria –
Brazil126 10 Natural Gas / Diesel / LFO 100%;100%; 80% 1995-2015 Investment grade global
industrial companies2020-2032
Total High Efficiency Cogen 644 12Chapada Complex Brazil 438 3 Wind 51%, 51%, 100% 2015; Q1 2016 CCEE; distribution companies 2035Vorotan Armenia 404 1 Hydro 100% 1970 AEN 2040CSP Portfolio Spain 250 5 CSP 51% 2010 CNMC 2034-2037Hydro Brazil Brazil 167 9 Hydro 79%3 1963; 1992;
2009-2012Distribution companies 2027-2042
Asa Branca Brazil 160 1 Wind 100% 2013 Distribution companies 2033Austria Wind Austria 147 10 Wind 94% 2003-2014 OeMAG 2016-2032Inka Peru 114 2 Wind 100% 2014 Distribution companies 2034Solar Italy4 Italy 77 48 Solar 51% 2007-2013 Gestore Servizi Energetici S.p.A 2027-2033Solar Slovakia Slovakia 35 3 Solar 51% 2010-2011 Distribution companies 2025-2026Solar Romania Romania 7 1 Solar 100% 2013 Distribution companies 2028Biogas Italy Italy 2 2 Biogas 100% 2013 Gestore Servizi Energetici S.p.A 2028
Total Renewable 1,801 85Total portfolio 4,843 107
ContourGlobal Portfolio
Thermal Renewables
(1) HFO refers to heavy fuel oil, and LFO to light fuel oil(2) Sochagota has already signed 5 contracts to replace existing PPA, extending expiration to 2024, with an additional 5 year extension in option(3) Capacity weighted(4) Italian solar assets in 20 clusters
IR InformationNext Events & Contact Point
Date Event Location
September 8Goldman Sachs EMEA
Leveraged Finance Conference
Virtual
September 11J.P. Morgan European
High Yield & Leveraged Finance Conference
Virtual
September 23-24
Morgan Stanley Utilities and Clean Energy
SummitVirtual
Next IR Events
34
John SmeltSVP, Investor Relations
Email:[email protected]
Corporate Websitewww.contourglobal.com
Investor Relations www.contourglobal.com/investors
IR Contact
Web Resources
For further information please visit www.contourglobal.com