Company presentation 21 March 2019 - Falck Renewables
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Company presentation
21 March 2019
Forward -Looking Statements This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect of future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Falck Renewables S.p.A.’s current expectations and projections about future events and have been prepared in accordance with IFRS currently in force and the related interpretations as set out in the documents issued to date by IFRIC and SIC, with the exclusion of any new standard which is effective for annual reporting periods beginning on or after January 1st 2019. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Falck Renewables S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price and availability of fuel and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Falck Renewables S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation is not intended to be/does not contain any offer, under any applicable law, to sell or a solicitation of any offer to buy or subscribe any securities issued by Falck Renewables S.p.A. or any of its subsidiaries. Neither the Company nor any member of the Company’s Group nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it. 2
Agenda
Overview 4
2021 Strategic Update 9
FY 2018 Highlights 42
Appendix 48
3
Overview
A Pure Play in Renewables – 1,026 MW Today ’s Portfolio
MW
292 16 46 354
354
413 413
113
113 113
98 98*
49 49
852 129 46 1, 026*
413 49 98
* Includes minority stake in La Muela (26%) wind farm and Frullo Energia Ambiente (49%) for a total amount of 37MW
5
Asset Management & Technical Advisory
2.4 GW
Asset Management
53 GW
Technical Advisory
4.6 GW
Transaction Advisory
International experience VC Offices
6
Governance & Shareholders
Board Composition Executive Director
Non Executive Director
Current Shareholders Base
Independent Dir. according to T.U.F. and Corporate
Governance Code
The Board of Directors consists of twelve members. Six of them are Independent Directors
(50%); one was appointed Lead Independent Director.
The new Board of Directors – as approved at The Shareholders’ Meeting on 27 April 2017 –
reflects the group’s international presence and includes members with relevant experience.
7
Sustainability at the Core
triggering virtuous,
sustainable
Tangible capital (e.g. development paths
To us, sustainability is the ability to financial)
generate value over the long term, while
maintaining the context conditions that
Intangible capitals
allow for such a generation more integration of
(e.g. natural,
relational, human) sustainability
objectives in our
plans & programs
It is not only about what we do, but how we
do it, and the values that we live by
8
2021 Strategic Update
De-Carbonization: Renewables and Much More
40 First few countries All regions meet
Last countries
to reach net-zero net-zero emissions
to reach net-
emissions zero emissions
2020
Global electricity 2030
30 consumption reaches
2010 35,000 TWh/year,
having risen close to Solar PV Majority of trucks Global energy Hydrogen at
2040
50% over the past passes oil as powered by systems at 1000 10% of final
Paris
Energy systemsCO2 emissions, Gt per year
decade the largest electricity or EJ per year energy
Agreem
20 energy hydrogen (double 2010)
ent
source
ratified Biofuels overtake
Global liquid First
2050 oil as the biggest
fuel demand Accelerated investment in intercontinental component of
for low-carbon energy quadruples hydrogen flight liquid fuels
passenger solar PV and wind capacity to
10 vehicles goes 5,000 GW total
into decline
850,000
Governments reach a common 2060 10 MW
India leads the
understanding as to the appropriate level of turbines
world in solar PV
0 the cost of emissions
Global India and China CO2 storage After celebrating 30
Action plans cumulative each reach one reaches 12 Gt years at near-zero
2070 per year
developed in C40 storage of Gt CO2 per emissions, cities are in
Cities targeting net- CO2 passes year stored
zero emissions by the one Gt sight of achieving
Net 2080
-10 2050 milestone 2090 their circular economy 2100
deforestation
goals globally
comes to an end
10 Source: Shell SKY ScenarioRenewables Asset Growth: Global Market Update
Installed Capacity Evolution (GW) Others** Coal
41 99
28%
World Power generation capacity Solar
1208 Oil&Gas
World Wind and Solar capacity
10073 527
3112
6961 Nuclear
6690
Solar* 56
897
28% Hydro
Wind* 351
13% 659
Focus on USA and Europe (GW)
9%
New Installations 17-30
Bioenergy
2014 2015 2016 2017E 2030 82
Wind
180
748
• Renewables capacity additions are expected to grow by ~2400
GW, reaching ~4700 GW globally in 2030 from ~2300 in 2017; in
66
particular, Wind & Solar move from ~915 GW of 2017 to ~2800
Renewables CAGR 17-30
GW of 2030. Hydro 1,8%
Wind 7,1% 127 143
• Solar PV is set to account for the largest share of Renewables
Solar 11,2%
energy capacity additions, reaching ~1600 GW in 2030 (35% Bioenergy 3,6%
Others * 8,7%
more than last year World Energy Outlook estimates)
USA Europe
11 Source: World Energy Outlook 2018 - International Energy Agency (IEA) – New Policies Scenario
* From World Energy Outlook 2017 – New Policies Scenario **Others include geothermal CSP and marineEvolving the Falck Renewables Business Model
It is not only about WHAT we do, but HOW we do it, and the VALUES that we live by
Wholesale Asset
Management Funds
Unbalancing
Dispatching and Technical Digital Assets
Hedging Advisory Financial
investors
Digital “Core”
Asset
Development Industrial
PPA Flexibility
Efficiency Public Administrations
Corporate Digital Infrastructure
Aggregator Clean Energy
Digital Services
Community
Financial Strength, Efficiency and Discipline
12Falck Business Lines: Customer Driven Approach
Asset Management & Energy Management &
Asset Development
Technical Advisory Energy Efficiency
FRE
(Falck Renewables Energy)
DRIVEN BY EXTERNAL CUSTOMERS CHOICES MARKET DRIVEN DISCIPLINE AND EFFICIENCY
13Capital Allocation 2018 – 2021
BALANCING RISKS New Plan* Old Plan*
(€M) (€M) Returns (New Plan)
AND REWARDS (%) (%)
MW added 18-21: + 480 MW
489 506
Owned Assets 77% 87%
Incremental EBITDA 18-21: €64M
IRR → Wacc + 150 – 200 bps
Services 81 40 Incremental EBITDA 18-21: €17M
(Energy Management, Energy Efficiency, 7% IRR ~10%
13%
Asset Management & Technical Advisory)
56 31
Asset Development 8.5% 4.5% IRR > 15%
9 2
Digitalization 1.5% 0.5%
IRR ~ 10%
14 *Cash-out: Capex + Development Expenses2021 Macro Targets by Business
OWNED ASSETS ENERGY MANAGEMENT ASSET MANAGEMENT ASSET DEVELOPMENT
& ENERGY EFFICIENCY & TECHNICAL ADVISORY
G&A*/MW
K€ -26% COVER TARGET MW
ADDITIONS BY 2021
FRE O&M/MW
K€
- 16%
Italy + EU Country +
Vs.
Old
Plan
= = 30
• Revenues 2021: €43M
• Increase Capacity to 1430MW EXCESS PIPELINE
• EBITDA 2021: €9M Vs.
• Digital «core»
Old
Plan
= ↓ • 200 MW developed in
• Leverage on customer base • Revenues 2021: €24.7M excess of target by 2021
of ~5000 clients (and COD within 2021)
• Digital Infrastructure • EBITDA: €3.6M
• Digital Services platform • ~700 MW Net pipeline with
• Digital Assets Platform COD from 2022 onwards
15 * Includes costs not addressable to the business lines and including ICT personnelOptions Provided by Excess Pipeline
Growth Opportunities
Develop, Package and Sale
Increase Assets on Balance Sheet
«DPS» mode
• Sale at «Ready to Build» status • Greater Asset Control and Flexibility
• Asset Management by • Capital Recycling upsides (minority stake)
(in construction + operations)
• Balance Sheet has optionality for further
• Equity Upside (Minorities / Carried Interest) and faster growth
• Maximization of Earnings impact in the • Long Term impact on EBITDA
short term for new Investments
• Solidity, Resilience and Strength
• Faster Capital Recycling
• Additional Returns added to Asset
• Customer based business: discipline, speed Development returns (balanced by
and efficiency additional financing)
16Enhanced 2018 -2021 Dividend Policy
Dividend distribution: maximum between the CAP and the FLOOR
DIVIDEND «FLOOR» €/cent DIVIDEND «CAP»
→ provides downside protection
+41%
Old Plan (7% Cagr)
6.7 6.9 Pay-out ratio (“PAY-OUT”) of
6.3 6.5
6.3
40% of Group Net Earnings
4.9 5.8 → provides upside if results are better
than expected
Paid in Paid in Paid in Paid in Paid in
2017 2019 2020 2021 2022
SUSTAINABLE POLICY WITH CLEAR 2021 VISIBILITY
17Key Strategic Pillars 2019 -2021
Asset Development Growth to amplify options
Improving Asset Management and Technical Advisory capabilities
to enhance efficiency and competencies
Energy Management and Energy Efficiency: new growth pillars
and greater regional focus
Financial Strength to deliver robust results and contemplate upsides
18Asset Development Activities and Strategy
EXCELLENCE in
DEVELOPMENT
Project Route to
Design & Market
Land Grid Permits
Resource PPA
Assessment Wholesale
Falck Renewables Sustainability Concept
Inhouse External Internal Local Partners Strong Integrated
Integrated partners Competencies with Falck Competencies
Competencies & support with FRE
External
Support
19Further Growth in Installed Capacity
North Europe
France, UK,
Netherlands Installed Capacity (MW) by Region Installed Capacity (MW) by Technology
Nordics
(2016 – 2021) (2016 – 2021)
Wind
Norway, Sweden
+74% Solar
USA Other
South Europe +7% 1375 1430
Italy, Spain 2%
+25%
1133 13% 18%
1062 537
543 21%
1026*
822 511
455
511 183 192
47
419 97 152 193 92%
83% 79%
113 137 113 76%
403 403 423 413
503 503
2016 2018 2019 Old 2019 New 2021 Old 2021 New 2016 2018 2021 Old 2021 New
Energy
Output
1.9 3.4
(TWh)
20 * Includes 56MW wind portfolio in France accounted for in 2018Asset Development Targets
Additions 2019-2021 (MW) Net Pipeline end of 2018 – Coverage (MW)
404 404
~90%
South Europe 100 Solar 50%
North Europe 42%
32 Under
USA Construction
80 202
Nordics To be Net
secured Pipeline
Wind 180
50%
192 58%
To be secured
202MW Additions 2021 Targets (MW) Self Sustaining Business by 2025**
19-21* + ~700
€M
~200MW in
excess 364
400
350 Avg.Full Devex
336 ~63k€/MW
50 2025
COD within 21 Net Pipeline 2021
(COD > 2022)
Old Plan (MW) ~200 ~ 275
COVER PLANNED ADDITIONS + EXCESS MW M&A AS AN OPPORTUNISTIC WAY TO ACCELERATE
21 * Excluding projects under Construction
** Excluding internal development feesAsset Management & Advisory Activities
ASSET MANAGEMENT
• Technical asset management
• Monitoring and performance analysis
• Yield optimisation
• Technical asset management 11 years
TRANSACTION ADVISORY
• Commercial Asset Management in the renewable
Over 200
employees
2.4 GW of solar and
• Revenue control Energy industry
from different
wind projects under • M&A and debt transactions
management
backgrounds • Financial modelling
• Debt raising
• Design of financing and refinancing
structures
• PPA structuring
TECHNICAL ADVISORY
Global player with
offices in 60 GW
Diversified activity:
• Site and production (or energy) assessments 11 countries and “One-stop shop”
of experience
including solar PV
• Engineering and design experience in for investors
and wind power
40 countries
• Technical due diligence for sponsors, services
investors and lenders
• Owner’s engineering, project management
and construction monitoring
HELPING GREEN INVESTMENTS PROSPER
• Tenders for EPC and O&M contractors
22Asset Management & Technical Advisory Targets
Consolidated Worldwide presence → Revenues 2021 + 17%
Highlights ↑ Cost Efficiency
Positive Impact of the Digital Assets Platform
(€M) +17% (€M) +71%
25 3.6
Asset 21
Management
58%
2.1
65% 14%
Technical EBITDA
margin
Advisory
10%
EBITDA
33% margin
30%
Transaction 5% 9%
Advisory 2019 2021 2019 2021
Revenues EBITDA
23Operational Excellence – Owned Wind Portfolio
• Increasing in-house value-added services
• Increasing plant efficiency and fleet performances
• Minimizing O&M Provider dependency
ACTION 1: «Proactive» Maintenance Approach ACTION 2: Deep Performance Monitoring (DPM)
O&M 20%
+
+ ISP1 O&M2
lower costs
(% MW)
~25%
O&M 100% Insource more activities, exploiting digitalization:
Full ~95% 80% • Preventive/predictive maintenance
Deep Performance Monitoring
service • Technical improvements
• Small correctives
«Proactive» «Proactive»
Approach
2017 2021 + DPM
Increase of the «Proactive» Approach
24 Notes: (1) ISP - Independent Service Provider; (2) O&M – Original Equipment ManufacturerDigital Assets Management Platform
ASSET MANAGEMENT DEEP EXPERTISE LEADS TO..
Enables Data Driven Digital Service and
2.9 €M project cost
generates new revenues streams
PROCESS
AUTOMATION DATA DRIVEN
REAL TIME
DIGITAL DECISIONS
CONTENTS
Digital Factory Allows O&M costs optimization and
PRODUCTION
15 resources SCALABLE AND EFFICIENCY
Opex reduction
MODULAR
RELIABLE KPIS
NEW O&M
DOWNSTREAM
DIGITAL PREDICTIVE
SERVICES GOVERNANCE
Leads to operating margin improvement
9000 man days of internal development
in the Asset Management services
…VALUE DIGITAL SERVICE AS A PRODUCT
GO LIVE April 2019
25A Decarbonized Electricity Infrastructure Requires Advanced
Energy Management and Efficiency
Future energy infrastructure Falck Renewables proposition
Advanced, active real time management of connected assets, Digital Services Platform
energy balance, at both consumers and producers sites
Big data management. Consumption reduction support for
improved competitiveness and sustainability Energy Energy
Management Efficiency
Services Solutions
Connected objects
Distributed Generation
Modern Prosumer
Production Storage
Consumption
Higher % Renewables
Electric Mobility
Commercial Public
Industrial Administration
Energy Efficiency
26Italy, Our Core Market, with Expansion Plan in The UK / Spain
ITALY UK SPAIN
• Market opening up with
ENERGY 197 M€ • Interruptibility, UVAM
• New pilots on voltage
430 M€ • Advanced market
through regulatory
Starting recent Royal Decree.
MANAGEMENT and frequency changes and redesign • Potential future
(DEMAND
RESPONSE
6% YoY 19-23 6% YoY 19-23 participation of
demand to services
ONLY)
• Established market for • Large market with • Potential for energy
ENERGY
2.8 B€ ESCo, consolidating 3.8 B€ various players 1.3 B€ efficiency from old
EFFICIENCY • Public Sector significant • Public sector infrastructures and new
opportunities in PPP opportunities through gasification of regional
PRIVATE + 7% YoY 19-23 4% YoY 19-23 dedicated schemes 5% YoY 19-23 areas
PUBLIC
Core Focus Market Potential Expansion Market Growth Opportunity
27 Source: Accenture; Energy Strategy Group; Bain; FIEE; Falck Estimates;
DR Demand Response; DSM Demand Side Management; ESCo Energy Service CompanyOur Offering Helps Clients and System Sustainability
ENERGY MANAGEMENT ENERGY EFFICIENCY
Portfolio Demand Distributed Distribution Energy
Metering
Management Response Generation Storage Efficiency
SOLUTION AND BENEFITS
€MWh
Active roles on Active roles on
energy markets Optimise local energy markets
Self production production /cons.
of energy
5,000 clients served in Italy with metering Energy Audits and Advisory from Energy
solutions. Team, more than 40 M€ investment
OFFERING
Leader in interruptibility services for C&I opportunities identified
Falck Renewables with more than 80% market. Falck Next capex-based services, leverage
Energy Active dispatching, portfolio management on ET clients and team competences
and hedging (ca 1 TWh)
28 Source: World Economic Forum study; Bain & Co.Energy Management & Energy Efficiency Targets to 2021
ENERGY
ENERGY
MANAGEMENT
EFFICIENCY
• Dispatching of own plants and third parties • New cogeneration projects
Targets • Portfolio management (hedging, risk) • Public Administration (lighting) projects
• MW of Demand Response under management • Energy Service Company offering
• Storage and plants ancillary services
1.5 TWh 2 MW
0.8 TWh 5 municipalities
2021
Approx. 30 MW Also through M&A
Pilots and through M&A
Key Competitors
29Energy Management & Energy Efficiency: Key Financials
Revenues (€M)
Domestic acquisition
+2.7x 8%
43
34% 19%
Organic
16 16
9
39%
2019 Old Plan 2021 2019 New Plan 2021
International acquisition
EBITDA (€M) 18-21 Capex (€M)
+4.5x
9
+2.4x
3 81
2
34
0 Old New
2019 Old Plan 2021 2019 New Plan 2021
30Scenario Assumptions
PUN €/MWh Green Certificates
103 103 104 Euribor & Libor 2019 2020 2021
Euribor Old Plan 0.25% 0.50% 1.00%
92 92 94
62 59 58 Euribor New Plan 0.00% 0.25% 0.50%
47 46 UK Libor Old Plan 1.20% 1.30% 1.40%
50
UK Libor New Plan 1.20% 1.30% 1.40%
2019 2020 2021 2019 2020 2021
New Plan
Old Plan
Wholesale GBP/MWh ROCs
54 51 51
FX 2019 – 2021
48 49 50 EUR/GBP: 0.91
46 49 EUR/USD: 1.18
45 48 49 50
2019 2020 2021 2019 2020 2021
31Price Risk Management Assumptions - Update
Power Price Risk
No price risk on almost 80% of expected revenues after hedging actions ➢ Natural hedging provided by environmental subsidies (ROCS, Tariffs,
Certificates) and Grid Benefits (for DC projects) has been complemented
Market Price Exposure at 31/12/2018 by sales on forward market in ITA and UK
100%
21% 21% 18% ➢ Only 20% of 2019 revenues is exposed to price risk, after actions
24%
80%
17%
23% 71% 28%
60% 2019 Price Risk Sensitivity considering Hedged Positions
82%
40% ▪ UK: ± 1 £/MWh -> ± 0,5 M£
62%
56%
48%
▪ ITA: ± 1 €/MWh -> ± 0,4 M€
20%
29% ▪ US: ± 1 $/MWh -> ± 0 M$
▪ Other EU: ± 1 €/MWh -> ± 0.1 M€
0%
Falck Portfolio US UK ITA Other EU
FiT + Grid Benefits
*
FWd Hedging + PPA Merchant
Wind - Captured Prices
2019 2020 2021
Italy (Energy Price + Green
149 148 148
Certificates) (€/MWh)
*
UK (Energy Price + ROCs)
US: SREC + Capacity Payments ; UK: ROCs + % of Grid Benefits; 99 95 95
ITA: Tariffa Grin + Conto Energia; Other EU: French FiT (GBP/MWh)
322019 Guidance (€M)
EBITDA reported 2018 191.5
Non recurring transactions (7.1)
EBITDA adjusted 2018 (estimate) 184.4 >30
• Perimeter 9
• Green Certificates -6 Group Net Earnings
• Prices 6
• Opex -2
• Services 2-3
~737
• Devex -4
• Exchange rate -3
Net Financial Position
• Others (Insurance claims, Lds) -3
EBITDA 2019E 184.0
33 These forward-looking statements have been prepared in accordance with IFRS GAAP in force in 2018 and the related interpretations as set out in the documents
issued to date by IFRIC and SIC, with the exclusion of any new standard which is effective for annual reporting periods beginning on or after January 1st 20192021 Guidance
€213M > €40M ~ €804M
2021 EBITDA Group Net Earnings** 2021 NFP*
+2.5% +33% -1%
Vs Old Plan Vs Old Plan Vs Old Plan
€325M ~ €747M
Fully funded by amended Corporate 2017-2021 Operating Cash Flow
committed Credit Line ending 31
December 2023 and operating cash +14.5%
flow. Vs Old Plan
34 *NFP calculated with exchange rate £/€ 0.91 and $/€ 1.18 Doesn’t include IFRS16 adoption ** Before impairments and provisionsEBITDA Growth 2019 – 2021
(€M) CAGR +7%
New Assets
Operating Assets
Services
+8
+18 Services
+3 New Assets
213
184 Operating Assets
+29
2019 2021
35Improving the Financial Efficiency
CUMULATED CAPEX (€M) CUMULATED FINANCIAL CHARGES
(2019 – 2021) (2019 – 2021)
+ €98M
- 11%
506
408
CAPEX/MW
€k Old New
Wind 1.31 1.15
Solar 1.07 0.84
Wind Solar Services Digital Others
Leveraging on better conditions of the amended Corporate committed Credit Line
36Group Net Earnings 2019 – 2021
CUMULATED GROUP NET EARNINGS* (€M) GROUP NET EARNINGS EVOLUTION* (€M)
(2019 – 2021)
+33%
+ 34%
114 29 (18)
5
85 (4)
(2) > 40
> 30
& Others
37 * Before provisions and impairmentsMain Financial Indicators
Debt to Equity Ratio
Falck Renewables
3.0x 3.0x
Debt Covenant
1.3x 1.3x
Falck Renewables
NFP to Euity Ratio
2019 2021
NFP to EBITDA Ratio
7.0x 7.0x Falck Renewables
Debt Covenant
Falck Renewables
4.0x NFP to EBITDA Ratio
3.8x
2019 2021
NFP significantly within covenants
38NFP Evolution
2016 2018 2021
(€M)
Cash
136
available NFP Variation (242) vs. (251) Old Plan
121 SPV Cash SPV Cash 124
Project
Finance (794) Financial
Tax Equity / charges, (640) Project
Operating Other Derivatives Finance
Cash Flow minorities FV and Financial
& contributions exchange Operating charges,
Development rate Dividends, Cash Flow Tax Equity / Derivatives
expenses Buy Back & Other FV and
Capex 60 Capex Development minorities exchange
Other debt (25) (36)* expenses contributions rate
(562) (50) (555) Dividends,
17 (105)* Buy Back
(257) Corporate
(279) 311 Loan
(89) Other debt
(31)
(506) 436 (804)
Operating Cash Flow net of Development expenses
39 * It includes IFRS 9 AdoptionCumulative Capex 2019 - 2021
(€M) By Area (€M) By Contribution to EBITDA
Partial/Nill 22% North Europe 13%
North Europe 22%
Nordics 36%
South
Europe 15%
506 506
South Europe 26% Nordics 36% USA 13%
USA 16%
40Potential Technical Life Extension of Wind Assets: Italy and UK
June 2018 2023 2028 2033 2038 2043 2048 2053
Sensitivity analysis based on
partial technical extension
(estimate)
+ €6M
(on yearly Group Net Earnings)
WIND UK 413 MW ~ 15Y ~ 6Y ~ 5Y
Average technical extension
Residual Life
Maximum technical extension
Repowering
WIND ITALY 292 MW ~ 14Y ~ 11Y ~ 5Y
41FY 2018 Highlights
FY 2018 – A Year of Results without Equal
Operating Assets: Energy Management & Energy Efficiency • Ebitda at €191.5M vs. 2017 above
• Better production compared to 2017 (+7.0%) mainly • Energy Management through Falck Renewables Energy expectations
thanks to increase of perimeter (+112.5MW) and (“FRE”): 360 GWh dispatched in-house in Italy (~ 44% of • Group Net Earnings more than double vs
wind in Italy (+25 GWh) energy produced) 2017 at €44.2M
• Better comprehensive captured prices in the UK • Consolidation of Energy Team financial results in Q4 • NFP at €547M significantly better than
(+15%), and worse in Italy (-5%) vs 2017 • Fine tuned international strategy and active scouting of €585M end of 2017.
• Reduced price volatility in Italy through risk potential opportunities • Negligible impact from GBP exchange ratio
management and hedging policy (-0,9% vs average 2017)
• Completed disposal of non core assets (Esposito) • Proposed dividend per share 6.3 €c vs. 5.3
Asset Management & Technical Advisory €c in 2017 (+19%)
Under Construction (% of completion in value)
• Revenues: €15.1M
• Aliden 46.8 MW (Sweden): 24%
• Reorganization complete with potential effects in
• Brattmyrliden 74.1 MW (Sweden): 9% 2019
• Hennoy 50 MW (Norway): 36% • 2019 started with encouraging prospects: revenues
• Okla 21 MW (Norway): 6% backlog at €6.8M (+ intercompany)
• Carrecastro 10 MW (Spain): 20% • digital asset management on track (April 2019)
Business Development: Net Pipeline of 180 MW end of
2018 vs. 50MW in 2017 to cover 2021 target of projects
to be secured (202 MW)
43
NFP/EBITDA at 2.9x reinforcing confidence in achieving business plan targetsFY 2018: Best Results ever 44
FY 2018 EBITDA Bridge
Assets
(€M)
1.2 (0.8) (1.0)
191.5
(2.1) (0.7) 184.4 7.1
↓ GRID
28.0 ↑ ITALY WIND
↑ ENERGY MGM
↓ LAW 488
↑ FRANCE WIND ↓ RENDE & EFFICIENCY ↓ 2017: 0,8767
MAINTENANCE ↑ INSURANCE 2018: 0,8847
↓ ITALY ↓ ASSET MGM
CLAIM & LDS
149.4 10.5 BIOMASS/WTE ↑ OTHER OPEX & TECH.
ADVISORY ↓ STRUCTURE
↓ ITALY SOLAR
STRENGTHENING
↑ UK WIND
↑ ITALY WASTE
↑ UK WIND
↓ ITALY WIND
↑ US SOLAR
↑ ROYALTIES
FY 2017 PERIMETER PRICES VOLUMES OPEX SERVICES G&A/ EXCHANGE FY 2018 NON FY 2018
OTHER RATE RECURRING
Adjusted Reported
45FY 2018 Cash Flow
(€M)
CASH
163 CASH
113
SPV SPV
CASH CASH
99 105
CII HOLDCO 10 CII HOLDCO 9
PROJECT PROJECT
FINANCING FINANCING
(793) (700)
FV DER. (38)
FV DER. (46)
OTHER (36)
OTHER (17)
45
42
33
46 OTHER 2FY 2018 Debt Breakdown
Gross Debt Nature Without Derivatives Gross Debt by Currency Without Derivatives Gross Debt Without Derivatives Hedged
30%
47%
49% 2017 2017
70%
4%
€739M €739M €739M
Financing with recourse GBP Hedged
Project financing without recourse EUR Un-hedged
Other financings without recourse USD
Average interest rate (including interest rate swap) of 3.73%*
47
Gross Debt = Project Financing + Other Debt + Debt vs CII HoldCo *excluding IFRS 9 effectAppendix
FY 2018 Financial Highlights
*
*
*
Breakdown (€M) FY2018 FY2017
Depreciation (64.8) (59.4)
Provision (8.8) (14.2)
Write – off / Revaluation (2.4) (0.5)
Breakdown (€M) FY2018 FY2017
Financial charges (35.9) (35.3)
IFRS 9 adoption (5.0)
*
49 * It includes the impact of non-recurring transactions of €7.1MAssets: Captured Price Over view Eur/MWh
2017
93
2018
92
D%
1%
Eur/MWh 52 51 2%
(5%) 88 15% 101
157 149
CAPTURED ENRGY +
€/MWh GBP/MWh
INCENTIVE PRICE
2%
(8%) Price exposure Price exposure
23%
1%
FiT + Grid Benefits FWd Hedging + PPA Merchant
90 90
60 60
Average 2017 Average 2018
45 GBP/MWh 57 GBP/MWh
70 Avg. 70 €/MWh 70
Avg. 61 €/MWh
WHOLESALE
50 50
PRICE*
50 50
Avg. 61 €/MWh
40 40
Avg. 51 €/MWh Avg. 59 €/MWh
Avg. 50 €/MWh
Sicily South Italy Sardinia
50
* Source: GME, N2EXInstalled Capacity and Production by Plants in 2018
Plants MW Energy produced 2018 (GWh)
Cefn Croes (Wales ) 58.5 146
Boyndie (Scotland ) 16.7 38
Earlsburn (Scotland) 37.5 107
Ben Aketil (Scotland) 27.6 69
Millennium (Scotland) 65.0 167
Kilbraur (Scotland) 67.5 158
Nutberry (Scotland) 15.0 50
West Browncastle (Scotland) 30.0 75
Spaldington (England) 11.8 26
WIND Kingsburn (Scotland) 22.5 79
Assel Valley (Scotland) 25.0 74
Auchrobert (Scotland) 36.0 99
San Sostene (Italy) 79.5 158
Minervino Murge (Italy) 52.0 89
Buddusò – Alà dei Sardi (Italy)* 138.0 309
Petralia Sottana (Italy) 22.1 42
Ty Ru (France) 10.0 20
Fouy (France) 10.0 17
Cretes (France) 10.0 18
Esquennois (France) 12.0 21
Cabezo San Roque (Spain) 23.3 50
Rende (Italy) 1.0 1
SOLAR
Sicily (Italy) 13.1 18
Mesagne (Italy) 2.0 3
North Carolina (USA) 92.0 134
Syncarpha - Massachussets (USA) 14.5 11
WTE/BIO Middleton – Massachussets (USA) 6.0 4
WTE Trezzo (Italy) 20.0 101
BIO Rende (Italy) 15.0 103
* The installed capacity is 159 MW, production limit at 138 MW
La Muela (Wind - Spain) 26.0
MINORITIES Frullo Energia Ambiente (WtE - Italy) 11.0
51
TOTAL 970.2 2,187Young Asset Base
December 2018
*
Residual Project Life
Residual Debt Life
Project cash flow after debt repayment
Wholesale price
Residual incentive life
52 * PPA secured and SRECAssets: Construction
% of
Contracts
Project MW Turbines Completion Expected COD
Signed
(in value)
Nordex N131/3900 TSA, BOP, E-BOP
Aliden 46.8 24% Q4 2019
12 turbines of 3.9MW and Grid
Nordex N131/3900 TSA, BOP, E-BOP
Brattmyrliden 74.1 9% Q4 2020
19 turbines of 3.9MW and Grid
Vestas V136 TSA, BOP, E-BOP
Hennoy 50.0 36% Q4 2019
12 turbines of 4.2MW and Grid
Okla 21.0 T.b.d. 6% Grid Q4 2020
Siemens Gamesa TSA, BOP, E-BOP
Carrecastro 10.0 SG 2.6-114 20% Q4 2019
and Grid
4 turbines 2.6MW
53Hot Deal: “Julia” CLOSING ANNOUNCED ON MARCH 15, 2019
Seller Glennmont Partners
Noyales 10MW (Fünhlander)
Eolteam 12MW (Senvion) Export Capacity 56 MW, Installed Capacity 59.5 MW
Capacity Net EOH: 2,100 (average)
Equity: €36.9M – NFP: €19.1M (2018)
Boys Ballay 12MW (Nordex) Valuation
Coudrays 10MW (Nordex)
EBITDA: €6.7M (2018)
(Nordex) 12MW Mazeray
Assets Life Remaining Assets Life (average): 22* years
Falck Existing Assets Feed-in-Tariff @ €0.09/kWh
New Assets Revenues
remaining Tariff Life 6.5* years (average)
INDUSTRIAL RATIONALE
Noyales, availability improvements
Installed Capacity 98 MW – Energy Output ~ 200GWh
Scale on Ownership and Asset Management
POTENTIAL UPSIDES Potential Life
Extension or
→ Renegotiation of O&M agreement (~60% MW Nordex) Repowering
→ Increase of Power Curve and Availability
Falck Ownership
→ Life Extension
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
→ Energy Management & Hedging at FiT expiration
PRESENCE, OPTIMIZATION, LONG TERM VALUE EXTRACTION
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