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H1 2020 Results Presentation
August 10th, 2020
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 2020
Operations
Financial Results
Hybrid, battery, wind, and engine facility 38MW (Bonaire) Orellana CSP 50MW solar farm (Spain)Hagn Wind Park 47MW (Austria)
Agenda
Sustainability, Strategy, and Growth
4
✓ Strong financial performance with Adjusted EBITDA +13% (adjusted for H1 net farm-down gains1); down 2% including net farm-down gains in H1 2019
✓ No meaningful impact on operations or financial performance from COVID-19
✓ PPA performance intact – no delay in cash collections or bad debt provisions and no
meaningful demand related reductions
✓ Dividend +10%: second quarter dividend of 4.0591 USD cents per share, or 3.1077 pence per
share
✓ Supported by continuing strong and predictable cash flow generation
✓ Ongoing share buy-back, with £8 million repurchased,
✓ Reflecting the Board’s view that the shares do not reflect the full intrinsic value of the Company
✓ Maintain guidance for 2020 of Adjusted EBITDA of $710 – 745 million2
✓ 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
5
COVID-19Focus on protecting our employees, ensuring business resilience and supporting the community
Protecting employee safety
Ensuring business resilience
Supporting the community
• 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$1.7m of COVID-19 related social investments in 74 projects in 14 countries
Food donation in ArmeniaVideo intubation laryngoscopes
in Spain• Social assistance has been provided
to disadvantaged families residing near the Vorotan complex
• 85 families have been supported during the COVID-19 pandemic.
Medical equipment donation in Senegal
• ContourGlobal donated 2 video laryngoscopes to a hospital close to one of our CSP plants.
• They permit performing complex intubation procedures for COVID-19 patients
• Donation to 2 hospitals in Senegal of PPE and disinfectants to support staff and patients
7
COVID-19 Risk AssessmentCG power generation activities fall between low and medium on the risk scale
Proximity of exposure
Exte
nt
of
exp
osu
re 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)
8
2. OperationsKarl SchnadtExecutive Vice President & Chief Operating Officer
KivuWatt Methane Gas Extraction Facility & Power Plant 26MW (Rwanda) 8
9
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
4
5
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
10
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
10
• 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
11
3. Financial ResultsStefan SchellingerExecutive Vice President & Chief Financial Officer
Asa Branca Wind Farm 160MW (Brazil) 11
12
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
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)
12
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 (-$17m).
• Decrease in Proportionate Adjusted EBITDA higher than decrease in Adjusted EBITDA mainly because of the 6-month impact of the Spanish CSP farm-down completed in May 2019
+13%2
+8%2
Cash conversion
49%
+3%3 +182,3
1,253 1,330 1,393
617 680
2018A 2019A LTM H12020
H1 2019 H1 2020
13
214
155
4
(46) (6) (12)
Adj. EBITDA H1 2019 Scope Farm-downs Commercial andresource
FX impact Adj. EBITDA H1 2020
161
213
11
46
(6)
Adj. EBITDA H1 2019 Organic Mexican CHP FX impact Adj. EBITDA H1 2020
Successful Integration of New Assets Drives GrowthAdjusted EBITDA bridges
ADJUSTED EBITDA – THERMAL DIVISION1 ($m)
ADJUSTED EBITDA – RENEWABLE DIVISION1 ($m) Farm-down gains in CSP and Solar Italy and Slovakia in H1
2019
Weaker EUR and BRL
13
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 (-$3m)
14
351
172
(91)(13)
(23)
(47) (2) (2)
Adjusted EBITDA Interest paid Income tax paid Maintenancecapex
Cash distributionminorities
JV and Associates Other FFO
Strong Cashflow Generated in H1 2020Consistently strong cash conversion
(1) Funds From Operations is defined as Cash Flow from Operating Activities excluding changes in working capital, less interest paid, less maintenance capital expenditure, less distribution to minorities. Funds from Operations is a non-IFRS measure.
H1 2020 ADJUSTED EBITDA TO FFO1 ($m) 49% cash conversion
(H1 2019: 48%)
14
15
-$6m: H1 2019 cash gain on Spanish CSP and Solar Italy and Slovakia farm-downs ($46m), H1 2020 negative FX impact from weaker EUR and Brazilian real ($17m) offset by the Mexico CHP acquisition ($46m) and higher availability revenue and lower O&M costs ($11m)
+46m: Cash gain on Spanish CSP and Solar Italy and Slovakia farm-downs in H1 2019
-$19m: Increase due to Mexico CHP acquisition
+$65m: Positive variance of $53m related to a non-cash change in fair value of a derivative in Mexico CHP, which is an instrument that locks in a fixed margin for certain contracts, and a positive variance of $32m in fair value of financial derivatives, partially offset by a negative impact of -$20m of realized and unrealized FX losses and net interest expense negative variance of -$2m
-$10m: Increase from Mexico CHP acquisition
+$12m: Mainly due to a recovery in net profit in Solar Italy, which has incurred refinancing costs in 2019, and higher profitability at Brazil Wind
Adj. EBITDA to Adj. Net Profit1 Bridge
1
1
2 2
33
(1) Net profit adjusted for one-off items
4 4
5
5
6 6
Adj. EBITDA to IFRS Net Profit bridge (US$m) H1 20 H1 19
Adjusted EBITDA 351 357
Share of adjusted EBITDA in associates (10) (10)
Share of profit in associates 7 8
Acquisition related items (4) (5)
Cash gain on sale of minority interest - (46)
Restructuring costs (2) (0)
Private incentive plan (3) (5)
Other (24) (17)
EBITDA 315 283
Depreciation & Amortization (151) (132)
Finance costs net (63) (128)
Income tax (27) (17)
Net Profit 75 6
Change in FV of fixed margin instrument (34) -
Italian / Slovakian refinancing - 15
Acquisition related items 4 5
Restructuring costs 2 0
Private incentive plan 3 5
Adj. Net Profit 50 31
Minorities 4 (8)
Net Profit to CG PLC shareholders 71 14
Adj. Net Profit to CG PLC shareholders 47 40
16
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 $84m undrawn capacity under corporate level revolver
• Strong balance sheet and credit rating, flexible access to capital with no near-term refinancing requirements
16
Net Debt/EBITDA (x)Jun-20 net debt ($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
17
Stable cash-flows create compelling value for shareholders
Free Cash Flow from Existing Assets
Corporate bond interest and corporate
overhead
Parent Company Free Cash Flow
Investment in further growth
DividendsDelivering 10% annual
dividend growth
Stable and predictable cash generation from existing assets to parent company provides cashflow to support dividends and fund growth
Disciplined investment in growth opportunities with a minimum mid-teens IRR
18
Capital Structure Optimized for Sustainable Returns
18
Free Cash Flow from Existing
Assets1:
$242m
Corporate Overhead:
($46m)
Corporate Bond Interest Costs: ($38m)
Parent Company Free Cash Flow:
$158m
(1) CFADS post Thermal and Renewable HoldCos LTM and pro-forma for Mexican CHP acquisition,(2) Parent Company Free Cash Flow divided by LTM H1 2020 dividend paid(3) Net corporate debt divided by Free Cash Flow from Existing Assets less Corporate Overhead
Net Corporate leverage3Dividend cover2
Parent Company Free Cash Flow will be second half weighted, due to timing of Mexican CHP distributions
1.6x
LTM H1 2020 2020E
4.0x
LTM H1 2020 2020E
2x
3x
19
0.1342
0.1476
2018 2019 2020
• Returned $260 million1 in cash since listing, equivalent to 15% of market capitalization
• Continuing to deliver dividend growth of 10% per annum, supported by stable and consistent cashflow generation
Commitment to dividend growth of 10% p.a.
19
Declared dividend per share – ($)
$99m total declared dividend
$90m total declared dividend
$109m total dividend2
(1) Including announced second quarter dividend to be paid on 25 September 2020(2) Based on shares of issue at start of year and assuming quarterly dividend payments of ~$27m
3.6901
4.0591
Q2 2019 Q2 2020
Declared quarterly dividend ($)
+10%
2020CGA Combined Heat and Power 440MW (Mexico)
4. Sustainability, Strategy and GrowthJoseph C. BrandtPresident & Chief Executive Officer
21
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, as well as carbon capture projects
• Commitment to continue reducing our CO2 emissions intensity
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
22
40%
60%
Male
Female
Long Standing Commitment to Sustainability and ESG principlesDesigned around 4 key sustainability principles linked to the UN SDG’s and Global Compact
• 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 AwardOur 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 health and well-being
Partnership
Other goals
2019 social investment program
23
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
23
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
24
Growth remains focused on long-term contracted assets, primarily acquisitions
24
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
25
✓ Anticipated Adjusted EBITDA in the range of $710m to $745m1 for 2020
✓ Strong Parent Free Cash Flow and a stable dividend cover supporting future dividend
growth
✓ Maintain commitment to 10% dividend increase
✓ Visible pipeline of future growth
✓ Focused on low carbon technologies
✓ Resilient business model
2020 OutlookContinuing to deliver growth and shareholder returns
(1) 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. 2019 Adjusted EBITDA was $703 million including $46 million net gain from farm-downs in Spanish CSP, Solar Italy and Solar Slovakia
26
Appendix
26Sao Domingos II Hydro Power Plant 25MW (Brazil)
27
Financial HighlightsKey financial metrics
27
In US$ 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%
28
Contributors to Adj. EBITDA 2017 2018 2019 LTM H1 2020 H1 2019 H1 2020
Contributors from Thermal fleet
Maritsa 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 fleet
Spanish 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
29
Contributors to Prop. Adj. EBITDA 2017 2018 2019 LTM H1 2020 H1 2019 H1 2020
Contributors from Thermal fleet
Maritsa 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 fleet
Spanish 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
30
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
31
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
31
(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)
32
51%
11%
38%
Europe Africa Latin America
18%
11%
7%
3%
18%
14%
22%
7%
Coal Natural Gas
Fuel oil Biogas
High Efficiency Cogen Wind
Solar Hydro
A Diversified FootprintWith future investment in clean technologies
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
Long-term contracts with state-owned/supported utilities or large IG companies or stable regulatory regimes (avg. credit rating BBB- before PRI and BBB+ after PRI)
LimitedCredit Risk
Limited Duration and refinancing
Risk
NoCost Risk
Mitigated Political Risk
Negligible Volume Risk for Thermal
Limited / Mitigated Volume
Risk for Renewables
33
Resilient Business ModelFixed-price, long-term contracts or regulated tariffs, with credit worthy off-takers
NoPrice Risk
Long-term contracts, weighted average remaining contract life of 10 years1
Use of political risk insurance to limit exposure
Typical thermal PPAs virtually eliminate commodity risk via fuel and CO2 emission costs pass-throughs
• Thermal: no volume risk; plants receive full capacity payment irrespective of off-taker demand
• Renewables: diversification of portfolio limits resource risk
Fixed-price contracts that often contain inflation protection
33(1) Based on LTM H1 2020 Adjusted EBITDA
34
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 Industrial companies 20242
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 38 1 HFO / Wind 100% 2010 WEB 2025
KivuWatt Rwanda 26 1 Biogas 100% Q4 2015 EWSA (ex-Electrogaz & REC) 2040 (expected)
Total Thermal 2,398 10
Mexican CHP assets Mexico 518 2 Natural Gas cogeneration 100% 2014/19 Mexican industrial/commercial 2020-2040
ContourGlobal Solutions Europe – Nigeria –Brazil
126 10 Natural Gas / Diesel / LFO 100%;100%; 80% 1995-2015 Investment grade global industrial companies
2020-2032
Total High Efficiency Cogen 644 12
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 51% 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 147 10 Wind 94% 2003-2014 OeMAG 2016-2032
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 1,801 85
Total 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
35
IR InformationNext Events & Contact Point
Date Event Location
August 10-12 Results Roadshow Virtual
1st week of September
BNP Reverse Roadshow Virtual
September 8Goldman Sachs EMEA
Leveraged Finance Conference
Virtual
September 9-11
J.P. Morgan European High Yield & Leveraged
Finance ConferenceVirtual
September 23-24
Morgan Stanley Utilities and Clean Energy
SummitVirtual
Next IR Events
35
John SmeltSVP, Investor Relations
Email:[email protected]
Corporate Websitewww.contourglobal.com
Investor Relations www.contourglobal.com/investors
IR Contact
Web Resources
