2019 Full Year Results 22 August 2019 Image: Run With The Wind, - PowerPoint PPT Presentation

2019 Full Year Results 22 August 2019 Image: Run With The Wind, Woodlawn Wind Farm, NSW 1

FY19 was a transformative year for Infigen  In FY19 Infigen made significant steps in its transition to the utility of the future.  We have a clear plan for growth. FY18 FY19 Our plan for growth Source an additional 300-400MW 557MW 670MW of renewable energy capacity in Owned Renewable Energy Assets Owned Renewable Energy Assets NSW. Fast-start firming enables 75% of Nil 89MW expanded renewable energy Contracted Renewable Energy Assets Contracted Renewable Energy Assets volumes to be contracted. Nil 148MW Deliver additional firming capacity and renewable growth in SA. Firming Assets Firming Assets 647GWh 768GWh Continual improvement of quality and quantity of earnings. C&I electricity sales C&I electricity sales ‘We are leading ‘Owner operator of wind ‘Utility of the future’ Australia’s transition to farms’ a clean energy future’ 2

FY19 Highlights  Strong FY19 results reflecting delivery of business strategy. Strategic Achievements Financial Highlights Increased Renewable Energy Generation: Underlying EBITDA: $165.3m, 11% higher than FY18.  Achieved practical completion at Bodangora WF. Sourced first volumes from Kiata WF in September 2019.  Renewable Energy Generation sold: 1,775GWh,  Sold Cherry Tree WF development project for $6.5m and 20% higher than FY18. entered into a 15 year PPA effective once built (FY21). NPAT: $40.9m, 10% lower than FY18. FY19 included non- Acquired firming assets: cash $9.9m impairment to development assets, announced Acquired Smithfield OCGT providing 123MW of firming  December 2018. capacity in NSW.  Constructed SA Battery which will deliver (25MW/52MWh) Net operating cash flow: $144.3m, 44% higher than of firming in SA. FY18. Increased clean energy sales to C&I customers: Distribution declared: 1 cent per security for HY ending  C&I volumes 19% higher at 768GWh. 30 June 2019, paid from free cash flows.  Significant investment in C&I customer service systems and capabilities in FY19. Increased levels of contracting:  67% of FY19 Renewable Energy Generation sold under contracts.  Infigen enters FY20 with 75% of expected Renewable Energy Generation and 100% of expected LGCs contracted. 3

Higher Renewable Energy Generation and Contracted Revenue Additional Renewable Energy Generation underpinned revenue growth with the business strategy  delivering higher Contracted Revenue outcomes. Net Revenue Renewable Energy Generation FY18 vs FY19 FY18 vs FY19 2,000 $229.3m $210.1m 250 1,775 92 1,800 220 Renewable Energy Generation (GWh) 10.1 16 Contracted 0.1 1,600 Revenue 1,480 37.2 200 +13% 48.4 1,400 AUD m 1,200 150 1,000 800 100 182.0 161.6 600 400 50 200 - 0 FY18 Bodangora Kiata WF, Wind FY19 FY18 FY19 WF, Owned Contracted variation Contracted Revenue Uncontracted Revenue Compensated Revenue Asset Asset Notes: Renewable Energy Generation includes Owned Assets and Contracted Assets. Notes: Contracted Revenue includes electricity revenue from PPAs, electricity revenue from C&I customers Excludes generation from Firming Assets. Renewable Energy Generation presented and contracted LGC revenue. Uncontracted Revenue incudes Merchant revenue and uncontracted LGC after application of marginal loss factors. revenue. Uncontracted Revenue is subject to price risk. 4

Infigen’s supply and demand profile  Higher Renewable Energy Generation resulted in higher volumes sold through all market channels. Electricity Supply and Demand Total Electricity Generation 20% higher at 1,778GWh FY18 vs FY19  Driven by Bodangora WF (220GWh), Kiata WF (92GWh, Contracted Asset) and Smithfield OCGT (3GWh). 2,000 C&I volumes 19% higher at 768GWh 716  Reflects continuing success of contracting strategy. 1,500 673 PPA volumes 20% higher at 489GWh 1,778 GWh 489 1,000 1,480  Bodangora WF PPA effective from March 2019. 407 Merchant volumes sold 6% higher at 716GWh 500  Reflecting higher Renewable Energy Generation. 768 647 248 193 Merchant volumes purchased 22% lower at 193GWh - FY18 Supply FY18 Demand FY19 Supply FY19 Demand  Bodangora WF providing additional coverage of C&I contracts. Merchant purchases Total Electricity Generation C&I PPA Merchant sales 5

Net Revenue drivers  Success of contracting strategy resulted in higher sales to C&I and PPA customers. Net Revenue:  Net Revenue: $229.3m, 9% increase, primarily driven FY18 vs FY19 by higher Renewable Energy Generation. 250 229.3 9.9 3.5  Higher C&I revenue: reflecting the continuing success 9.5 3.4 0.3 210.1 of customer contracting strategy. 200  Higher PPA revenue: driven by Bodangora WF practical completion where 60% is sold via PPA. 150  Merchant revenues: Reflecting lower received prices AUD m when higher volumes were sold to C&I Customers.  Lower LGC prices: reduced Net Revenue by $3.4m as 100 higher priced forward sales contracts rolled off.  Compensated Revenue: primarily in respect of delay 50 in completion of Bodangora WF. 0 FY18 Net Higher C&I Higher PPA Higher Lower LGC Lower FY19 Net Revenue revenue revenue Compensated revenue Merchant Revenue Revenue revenue 6

Net Revenue to EBITDA bridge  Net revenue was $19.3m higher than FY18 and resulted in $16.2m of higher EBITDA. FY19 Net Revenue to EBITDA Owned Renewable Energy Asset Expenses: costs 250  reflect long term Operations and Maintenance (“O&M”) 229.3 contracts with Vestas and GE. Turbine Availability guarantees in place until 20 th anniversary 200  of commencement of commercial operations at each wind 38.2 0.2 3.0 farm. 165.3 22.7 FCAS Net Expense: Frequency Control Ancillary Service  150 AUD m costs imposed by the market operator. Firming Assets fixed operating costs: reflects short  period of Smithfield OCGT ownership. 100 Business Operating Costs: of $22.7m are slightly higher  than FY18 ($21.0m) reflecting investment in business capabilities. 50 0 FY19 Net Owned FCAS Net Firming Assets Business FY19 EBITDA Revenue Renewable Expense fixed operating Operating Costs Energy Assets costs expenses 7

Underlying EBITDA to NPAT bridge  Statutory NPAT affected by previously disclosed Impairment of development assets and higher Income Tax Expense. FY19 EBITDA to NPAT Underlying EBITDA: $165.3m  180 165.3 Depreciation & Amortisation: ($54.6m)  160 ‒ Bodangora WF and Smithfield OCGT increase D&A. ‒ Owned Wind Farms depreciated over 25 years, except Bodangora WF at 30 years. 140 ‒ Smithfield OCGT depreciated over 20 years. 120 Net Finance Costs: ($45.9m)  ‒ Interest Expense, ($40.2m) 54.6 AUD m 100 ‒ Other Finance Costs, ($8.1m) ‒ Interest Income, $2.3m 80 Income Tax Expense: ($20.5m)  45.9 60 Impairment of Development Assets: ($9.9m) as  announced in December 2018. 6.5 40.9 40 20.5 Net gain on changes in fair value of financial  9.9 instruments: $6.5m, reflecting non cash value mark-to- 20 market of Capital Lite PPAs. 0 Statutory NPAT: $40.9m  Underlying Depreciation amortisation Net finance Income tax Impairment of Net gain on instruments FY9 NPAT development EBITDA expense financial FY19 costs assets and 8

Capital Management Strategy in FY19  Strong operating cashflow enabled investment in accretive assets and the reintroduction of distributions without materially increasing Net Debt. Net Debt: FY18 to FY19 Accretive Growth: 600  Acquired Smithfield OCGT for $74.0m, providing physical firming in NSW. 531.2 535.4 5.7 74.0  Constructed SA Battery for $30.4m, net of grants, which will provide 25MW/52MWh of physical firming in SA. 500 44.9 Continued deleveraging: 30.4  Net debt broadly unchanged. 400 AUD m  Corporate Facility: $483.8m, repaid $33.7m in FY19. 144.3 6.5  Bodangora PF: $155.3m, repaid $3.3m in FY19.  Cash: $103.7m. 300  FY19 Net Debt to EBITDA of 3.2x (vs FY18 of 3.6x). Returns to security holders:  1 cent per security per half-year. 200  Sustainable through cycle.  Paid from free cash flows.  H2FY19 distribution to be paid September 2019. 100 0 FY18 Net Net Cherry Battery FY19 Smithfield Other FY19 Net Debt Operating Tree WF capex (net) Bodangora purchase Debt Cashflow sale capex price proceeds 9

FY20 Outlook Image: Capital Wind Farm, NSW 10