Full Year Results for the year ending 31 March 2018 10 May 2018 - PowerPoint PPT Presentation

Full Year Results for the year ending 31 March 2018 10 May 2018

Contents 1. Tilt Renewables Value Proposition and FY18 Highlights 2. FY18 Financial Results 3. Delivery and Growth 4. FY18 Scorecard and FY19 Guidance 02

1. Value Proposition & FY18 Highlights 03

FY18 Highlights  First full year as Tilt Renewables since demerger from Trustpower in October 2016  Reached financial close on 54 MW Salt Creek Wind farm, the construction of which is on target to be completed in July 2018 and contracted energy output to 2030  Dundonnell Wind Farm bid into Victorian Renewable Energy Auction Scheme  Earnings Before Interest, Tax Depreciation, Amortisation, Fair Value Movements of Financial Instruments (“EBITDAF”) of $103.8 million achieved  The consented development pipeline has been expanded with development approvals attained for 465 MW of solar projects in Queensland and South Australia  Waverley Wind Farm in New Zealand’s North Island and Rye Park Wind Farm in New South Wales consented and contracting opportunities being explored  Net cash from operating activities of $85.9 million delivered in the financial year Salt Creek Wind Farm wind turbine being erected  Final dividend payment of AUD 1.80 cents per share brings total payout to investors for the year to AUD 3.05 cents per share 04

FY18 full year performance Balanced Scorecard Δ % Performance area Measure FY18 FY17 Units per 1M TRIFR 1 Health & Safety 14.2 0 Negative work hours Production Energy 1,796 2,049 (12%) GWh Group revenue 158.0 174.5 (9%) A$M EBITDAF 2 $ Financials 103.8 124.0 (16%) A$M NPAT (2.8) 16.4 (117%) A$M Growth Development expense A$M 8.3 4.6 82% Final dividend 1.80 2.25 (25%) AUD cps Shareholder return Full year dividend AUD cps 3.05 n/a n/a Notes: (1) TRIFR = Total Recordable Incident Frequency Rate per one million worker hours (2) EBITDAF = Earnings Before Interest, Tax Depreciation, Amortisation, Fair Value Movements of Financial Instruments 05

Tilt Renewables Value Proposition 3 1 2 4 Demonstrated High quality assets Solid balance sheet Developing storage ability to develop with largely fundamentals with / firming capability and fund projects contracted revenues strong cash flow with technology and high quality generated by neutral approach Salt Creek under counterparties operating assets construction: 54 MW Average Tilt Renewables capacity factors over the last 5 years: Dundonnell bid into Australia 37% VREAS Prudent gearing Highbury Pumped Hydro New Zealand 39% Other consented wind Average Tilt Renewables turbine projects: Up to 930 MW Portfolio debt facility availability for last 5 years: Snowtown Solar and Australia 97.0% Shareholder support Battery Consented solar pipeline: New Zealand 97.5% Working on alternatives to Up to 470 MW traditional PPA market Experience from greenfield Positioning for policy, Not rated through to end of life Baa3 / BBB- BBB+ Flexibility to pursue market and stages of renewable Currently ca.98% contracted growth technology changes projects 5 Strong commitment to the health and safety of our staff and contractors 06

Focus areas for Tilt Renewables: Next 12 months Dundonnell / Delivering value Storage and VRET process from the pipeline firming options • • • Opportunity to grow operational Diversity across NEM states and Technology neutral approach: portfolio by 50+% technology batteries, pumped-hydro, gas • • Bank due diligence underway Debt/equity funding model will peakers, financial contracts • • Delivery contracts in place depend on offtake structures Highbury 300MW, 1350MWh • • Debt funding fully in place Portfolio approach to optimise pumped-hydro • • Infratil equity support commitment growth Snowtown 45MW solar & 20MW • Options without VREAS being battery storage • explored Offtake optionality • Building capability 07

2. FY18 Financial Results 08

Operational performance overview Operating performance Annual energy production GWh – 12 months ending 31 March 1400 800 • Tilt Renewables’ wind portfolio produced 1,796 GWh of 1200 emission free energy in FY18, 253 GWh lower than the 600 1000 previous year which had above long-term expected production 800 400 1,305 744 724 1,225 600 1,201 • Wind speeds were significantly below average in New Zealand 571 400 200 and slightly below average in Australia resulting in group 200 production 8% below long-term expectations 0 0 • 2016 2017 2018 2016 2017 2018 Asset availability in line with expectations • Snowtown I & II production was curtailed 24GWh (2.4%) in AU actual production NZ actual production FY18 by AEMO-imposed constraints for SA system strength AU LT expected production NZ LT expected production Safety performance Production GWh Actual FY18 Actual FY17 Long-term expectation Measure FY18 performance Australia 1,225 1,305 ~1,280 Total recordable injury frequency rate (TRIFR) 1 14.2 / million work hours New Zealand 571 744 ~670 Lost time injury frequency rate (LTIFR) 2 3.5 / million work hours Group Total 1,796 2,049 ~1,950 Lost time injuries (LTI) 1 • Single LTI at Mahinerangi has resulted in a greater focus on safety across operational and construction activity, and Notes: Safety incident frequency rates are measured on a rolling 12-month basis including contractor statistics. contractor engagement to achieve TLT’s goal of zero harm (1) TRIFR is calculated as the number of lost time injuries and applicable medical treatment incidents multiplied by 1 million divided by total hours worked (2) LTIFR is calculated as the number of LTIs multiplied by 1 million divided by total hours worked 09

Financial Performance – Revenue Group revenue A$M – year ending 31 March Contracting mix and price certainty Δ % Revenue FY18 FY17 Delta • NZ production 100% contracted under long term PPA with Generation revenue 157.9 174.3 (16.4) (9%) Trustpower with pricing fixed to March 2023 Other revenue 0.1 0.2 (0.1) n/a • AU production is predominantly contracted with Snowtown II Group revenue 158.0 174.5 (16.5) (9%) energy and LGCs under Origin Energy PPA to 2030 Group revenue analysis – year ending 31 March • 90% of Snowtown I energy/LGCs under PPA to Dec 2018 Δ % Revenue FY18 FY17 Delta • Salt Creek electricity output contracted with Meridian (50% Australia revenue (A$M) 121.6 127.5 (5.9) (5%) during Cal-18 and 100% from Cal-19 to Cal-30) AU average price (A$ / MWh) 99.3 97.7 1.3 2% • Large proportion of residual near-term LGC production New Zealand revenue (A$M) 33.9 44.8 (10.9) (24%) hedged forward at attractive prices for Cal-18 and 19 NZ average price (A$ / MWh) 63.6 62.8 0.8 1% Market snapshot Group Revenue A$ millions • Market prices for uncontracted energy and LGCs remain strong in FY19 and FY20. Product Cal-2018 Cal-2019 Cal-2020 SA baseload energy (futures $/MWh) 97 88 85 VIC baseload energy (futures $/MWh) 87 76 71 LGC forward price ($/LGC) 86 78 29 Source: ASX average based load futures prices as at 10/05/2018 Mercari LGC forward prices 010

Financial Performance - EBITDAF variance from prior period • FY18 EBITDAF of $103.8 million was 16% down on FY17, predominantly due to lower revenue from reduced production 1 • Reduced generation costs as a result of production-linked savings (partial hedge to production) plus higher capitalised activity 2 • Transition to standalone Tilt Renewables cost base plus impact of active 12 months investing in development pipeline 3 Full year with TLT 135 EBITDAF team A$ millions Full year cost of standalone TLT Price  2.9 125 management structure Price & ACoT Production Price, ACoT & 115 4.49 Other (1.1) Office costs (1.0) Variable O&M 3.0 (21.3) other revenue 4.9 Other (1.1) Development (3.6) ** 105 Employee costs (4.3) Capitalisation 3.0 Lower variable O&M Uplift in 124.0 Uplift in development Low wind conditions charges due to lower development Low wind conditions Lower variable O&M costs reflects full 95 vs FY17, resulted in generation vs above-average costs reflects charges due to lower year activity 253 GWh reduction FY17, resulted in generation investment in: in generation 103.8 253 GWh reduction Increased allocations - Dundonnell WF in generation on from opex to capex Increased allocations - Waverley WF 85 year on year basis from opex to capex STWF - solar options 75 FY17 Generation Price & ACoT Other O&M Overheads Development FY18 FY18 EBITDAF EBITDAF Revenue Generation Costs Corporate / Growth Costs EBITDAF 2 1 3 Notes: (1) ACoT = Avoided Cost of Transmission revenue for New Zealand assets (2) O&M = operating expense component of fees payable under longer term wind farm operations and maintenance (O&M) contracts 011