Inka –2018 Results - ContourGlobal · Cupisnique 83.2 MW 45 wind turbines 114 MW TalaraWind Farm...

Strictly Confidential

Inka – 2018 Results

April, 2019


Disclaimer

2© ContourGlobal 2018 Results 2

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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, changes ineconomic, business, social, political and market conditions, success of business and operating initiatives, and changes in the legal and regulatory environment and othergovernment actions. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that suchtrends 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 on which itis made. The Company assumes no obligation to update or revise any forward-lookingstatements.

Information contained herein relating to markets, market size, market share, market position, growth rates, penetration rates and other industry data pertaining to theCompany’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 of its internalsurveys and studies. Any such information may be subject to significant uncertainty due to differing definitions of the relevant markets and market segmentsdescribed.


Executive SummaryStrong performance despite poor resource

3© ContourGlobal 2018 Results

• Rating: On Dec’18, Fitch has affirmed the Long-Term rating assigned to Energia Eolica S.A.'s (Inka)

$185 million senior notes fully maturing by 2034 at 'BBB-'. The Rating Outlook is Stable. Affirmation

supported by strong underlying credit metrics and ongoing, consistent deleveraging of business.

• 0 Recordable Incidents: No LTI, MTI or RWC in 2018

• Generation: 2.6% higher generation in 2018 vs 2017 - improvement though below average historical

and expected levels. 30% generation from Talara site; 70% from Cupisnique.

• EBITDA: 14% increase in EBITDA in 2018 vs 2017 (2017: $25m; 2018: $29m), primarily driven by PPA

price increase.

• Debt amortization: $4.3m amortization in 2018. Net leverage decreased from 7.4x to 6.2x. 2018

DSCR of 1.72x.

LTI: Lost Time Incident

MTI: Medical Treatment Incident

RWC: Restricted Workday Case


1. Operations

© ContourGlobal 42018 Results

Talara Wind Site (Peru) 30.8MW


96% 92%80%

63%

82%

Inka project overview114 MW of reliable wind operation with 16 years left in PPA


Talara 30.8 MW

17 wind turbines

Cupisnique 83.2 MW

45 wind turbines

114 MWTalara Wind Farm

Location: Talara, Piura

Total Power Installed: 30.8 MW

Equipment (Turbine Model): Vestas V100

Turbine Capacity: 1.815 MW

Number of turbines: 17

T-Line: 1.2 km (5 Towers)

BOP: SE Campana

COD: 2014

O&M Contractor: Vestas

PPA Price: USD 91.40

Cupisnique Wind Farm

Location: Pacasmayo

Total Power Installed: 83.2 MW

Equipment (Turbine Model): Vestas V100

Turbine Capacity: 1.850 MW

Number of turbines: 45

T-Line: 28 km (78 Towers)

BOP: SE Cupisnique

COD: 2014

O&M Contractor: Vestas

PPA Price: USD 89.30


H&S PerformanceProactive H&S management leading to continued strong performance


0 LTI (Lost Time Incidents)

0 RI (Reportable Incidents)

0 First Aid Incidents

Note : LTI rate is an industry standard reporting convention for

calculating injuries in the workplace

Both safety inspections and training hours

have increased in 2018 …

161 148 188

18341697

1767

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0

20

40

60

80

100

120

140

160

180

200

2016 2017 2018

Safety Inspection Training Hours


Cupisnique – Availability Factor (1) (%)


EAF are in the top decile globally2018 EAF slightly lower than 2017 primarily due to planned maintenance activities

Talara – Availability Factor (1) (%)

(1) Availability factor refers to the actual amount of time a plant or group of plants is available to produce electricity divided by the amount of time in

the period

(2) Source: Peer to Peer benchmark performed by Make Consulting

99.4% 97.4% 97.6%

97.0%

97.9%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

2016 2017 2018

Actual EAF Vestas Benchmarking

99.2% 99.2% 98.1%

97.0%

97.9%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

2016 2017 2018

Actual EAF Vestas Benchmarking

(2)(2)


Higher production than 2017 by 2.6%Generation below PPA by 4% in 2018 mainly due to resource

8

3.2 GWh net energy produced above PPA (i.e. 122.9 GWh

vs 119.7 GWh) mainly due to higher wind speeds.

98.1% Availability Factor in 2018 lower than 2017 when

reached 99.2%

45.4% Capacity Factor slightly higher than prior year (i.e.

45.3%)

20.1 GWh net energy produced below PPA (i.e. 282.9 GWh

vs 303 GWh) mainly due to lower wind speeds

97.6% Availability Factor in 2018 slightly higher than 2017

when reached 97.4%

38.8% Capacity Factor above prior year (i.e. 37.5%)

P89 generation level achieved in 2018

P75 generation level achieved in 2018

2018 production below PPA…

Cupisnique

Wind Farm

Talara Wind

Farm


336.0 273.0 282.90

303.0 303.0 303.0

46.0%37.5% 38.8%

00%

20%

40%

60%

80%

100%

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2016 2017 2018

Net Energy Production (GWh) PPA Volume (GWh)

PPA Volume (GWh)

Capacity Factor (%)

138.0 122.5 122.9

119.7

51.0%45.3% 45.4%

00%

20%

40%

60%

80%

100%

110.0

115.0

120.0

125.0

130.0

135.0

140.0

2016 2017 2018

Net Energy Production (GWh) PPA Volume (GWh)

PPA Volume (GWh)

Capacity Factor (%)


2. Financial Update


Talara, Wind Site (Perú) 83 MW

2. Financial Update

Cupisnique, Wind Site (Perú) 83 MW

2. Financial Performance

Cupisnique, Wind Site (Peru) 83.2 MW


Robust financial performance since CODAverage EBITDA during operation period of $29m

2018 Results 10© ContourGlobal

(1) DSCR as defined in Bond Indenture.

DSCR increased in 2016 due to the deferral of the

1st year PPA premium revenues that were collected

in the 2nd PPA year.

Revenues

(US$m)

EBITDA

(US$m)

DSCR (1)

(Multiple)

39 39

34

37

-

5

10

15

20

25

30

35

40

2015 2016 2017 2018

30 31

25

29

-

5

10

15

20

25

30

35

40

2015 2016 2017 2018

1.5x

2.3x

1.5x

1.7x

1.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

2015 2016 2017 2018


EBITDA Bridge 2017-2018Higher EBITDA driven by price adjustment


Price impacted by retroactive indexation :

As per PPA, when cumulated index reach 5%, the PPA price is adjusted. In 2017, the index reached the 5% level but was only

recognized in 2018 results (impact by $1.8m in 2017). In 2018, PPA price adjusted has an impact by $1.1m.


Significant debt reduction and distribution to

shareholder funded through operating cash flows


EBITDA TO NET CASH FLOW (US$m)


Scheduled debt amortization drives leverage down

from 7.4x in 2017 to 6.2x in 2018


Financial KPIs

Notes:

- EBITDA improvement driven by better generation vs. 2017 were plants were impacted by El Niño

costero.

- Convenant is not required for the leverage ratio.

Leverage Ratio

199193 189

181

30.0 31.0 25.4 29.0

-

20

40

60

80

100

120

140

160

180

200

2015 2016 2017 2018

Net Debt EBITDA

6.6x

6.2x

7.4x

6.2x

5.6x

5.8x

6.0x

6.2x

6.4x

6.6x

6.8x

7.0x

7.2x

7.4x

7.6x

2015 2016 2017 2018

Leverage Ratio

Strictly Confidential 14© ContourGlobal

3. 2018 Financial Statements


2018 Results


FY18 IFRS Financial Statements (Audited)P&L Statement


Higher revenues driven by PPA review and retroactive price indexation.

Lower administrative expenses driven by reduction coming from Municipal Taxes that impacted 2017 results (one time cost) +

savings done on facilities expenses (rental expenses and communication fees).

Financial expenses decrease mainly driven by penalty paid in 2017 related to plant construction process (custom fees/one time

cost).

Years Ended Dec 31

In $ millons 2018 2017

Operating income:

Revenues from energy sales 37.1 33.5

Operating costs (18.3) (17.7)

Gross profit 18.8 15.8

Administrative expenses (2.3) (3.8)

Operative profit 16.5 12.0

Financial expenses (12.6) (16.1)

Financial income 1.3 1.1

Exchange differences, net (1.0) (0.3)

(Loss) profit before income tax 4.2 (3.3)

Income tax (0.8) 1.0

Net profit / (loss) 3.4 (2.3)


FY18 IFRS Financial Statements (Audited)Balance Sheet


ASSETS LIABILITIES AND EQUITY

Years Ended Dec 31 Years Ended Dec 31

In $ millons 2018 2017 In $ millons 2018 2017

Current assets Current liabilities

Cash and cash equivalents 2.1 0.7 Borrowings and interest payable 4.8 4.8

Trade and unbilled accounts receivable 3.8 6.5 Trade accounts payable and accruals 1.1 1.4

Other accounts receivable 3.6 6.9 Other accounts payable to related parties 0.0 0.1

Prepaid expenses 0.5 0.7 Other current liabilities 1.8 2.5

Total current assets 10.1 14.8 Current Portion Financial leases obligation 0.3 0.3

Total current liabilities 8.1 9.2

Non-current assets Non-current liabilities

Other accounts receiva. from related parties 32.6 24.0 Borrowings and interest payable 173.5 177.2

Property, plant and equipment 182.8 194.5 Financial leases obligation 2.7 2.8

Intangible assets 0.1 0.0 Decommisioning provision 3.9 3.6

Total non-current assets 215.5 218.6 Deferred income tax liability 8.8 8.0

Total non-current liabilities 188.8 191.6

Equity

Share capital 46.3 53.7

Accumulated losses -17.7 -21.1

Total equity 28.6 32.6

TOTAL ASSETS 225.5 233.3 TOTAL LIABILITIES AND EQUITY 225.5 233.3


ContourGlobalInternational Power Generation, Stable Cash Flows + Growth.

18

• Large diversified footprint

• Long term contracts and regulated tariffs

delivering stable and secure cash flows

• Proven track record of value accretive

growth through both operationally lead

acquisitions and greenfield development

• High return growth + safe and growing

dividend

• Non-recourse debt: use of non-recourse debt

financing at the project level provides

significant protection to equity investor

• High cash flow conversion (+50% EBITDA to

FFO)

Portfolio

Thermal Solar

Wind Hydro BiogasHigh Efficiency Cogen

ContourGlobal Footprint – 4.8 GW in 19 CountriesContourGlobal Footprint – 4.8 GW in 19 countries 1Investment Highlights

1) Figures (GW and number of countries) include 518 MW Mexican Cogeneration acquisition

signed January 2019


Long-term contracts typically with state-owned or supported utilities or large investment grade companies, or stable regulatory regimes (avg. credit rating BBB-)

Typical Thermal PPAs virtually eliminate commodity risk via fuel and CO2 emissions costs pass-through mechanisms

Limited

Credit Risk

Limited

Duration

Risk

No

Cost Risk

No

Price Risk

Long-term contracts, weighted average remaining contract life of 12 years

Fixed-price contracts that typically contain inflation pass-through terms

Contract Structure Differs between technologies

Thermal: No volume risk; plants paid full capacity payment irrespective of off-taker demand

Renewables: Plants typically paid set price based on MWh produced

Negligible

Revenue / Volume Risk

We Build and Invest in High-Quality BusinessesBusinesses operate with fixed-price, long-term contracts or regulation, with credit worthy

off-takers. This structure provides risk mitigation and sets ContourGlobal apart in the

sector.

19

Strictly Confidential20

Diversified: technology, geography and currencyOur business model and strongly diversified asset base lead to resilient financial performance

39%

18%

43%

Thermal High Efficiency Cogen Renewable

50%

10%

40%

Europe Africa Latam

53%30%

12%

4% 1%

EUR USD BRL BRL Hedged Other

LTM H1 2018 PF Adj. EBITDA1 by Technology LTM H1 2018 PF Adj. EBITDA by Geography LTM H1 2018 PF Adj. EBITDA by Currency

Financial performance is highly resilient to external factors

1. LTM H1 2018 Pro Forma Adj EBITDA = actual EBITDA for LTM H1 2018 + pro forma adjustment for a full year contribution from our Spanish CSP assets + pro forma adjustment

for expected run-rate annual contribution from our Mexican CHP assets ($110 million; signed but not closed yet)

100% 99% 98% 97% 100% 100%

LTM H1 2018 10% change in electricity

spot prices

10% depreciation of BRL 10% change in renewables

resource

10% change in fuel prices 10% change in CO2 prices

Sensitivity

For further information please visit www.contourglobal.com

Inka –2018 Results - ContourGlobal · Cupisnique 83.2 MW 45 wind turbines 114 MW TalaraWind Farm...

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