ACWA Power (2082) Analyst Day presentation summary

Business model and financial framework

• Integrated model spans development, investment, operation, and optimization of critical assets in growth markets, focusing on long-term contracts and resilient cash flows.

• Operations and maintenance platform is fully integrated, providing reliability, scalability, and additional margins through vertical integration.

• Capital structure leverages both recourse and non-recourse financing, optimizing returns and risk management across project tiers.

• Cash flows are highly contracted (99%) with long-term take-or-pay agreements, predominantly with investment-grade or sovereign-linked offtakers.

• Business model is mapped directly to financial statements, with clear links between project stages and financial impacts.

Consolidated financial statements and disclosures

• Subsidiaries are fully consolidated, while associates and joint ventures are equity accounted, reflecting the group’s share of net profit or loss.

• Profit or loss statement includes revenue, operating costs, share in net results of equity accounted investees, and gains from divestments.

• Balance sheet details both current and non-current assets and liabilities, including project-level and parent-level items.

• Cash flow statements distinguish between operating, investing, and financing activities, with detailed adjustments for project and corporate cash flows.

• Parent cash and Parent Operating Cash Flow (POCF) are derived from distributions, fees, refinancing, and are net of corporate expenses and debt service.

Key financial metrics and performance analysis

• Management focuses on operating income before impairment, adjusted profit attributable to equity holders, POCF, and parent net leverage.

• EBITDA is not used as a KPI by management, but a bridge is provided for market reference, reconciling operating income, depreciation, and equity investee results.

• Parent-level debt is broken down into recourse and non-recourse, with detailed disclosure of guarantees, commitments, and contingent liabilities.

• Quarterly earnings are non-linear, with annual results more representative due to milestone-driven volatility.