COMPANY PRESENTATION BY Q1 2021 - European Energy
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BY Q1 2021 COMPANY PRESENTATION
Agenda 26
Our Vision
About us
03
09
09
About us
Cases
Highlights 2020 16
Market Trends 20
Cases 26
Sustainability Engagement 32
Executive Management 33
16
Highlights 2020
40
16
Markets Trends
OUR VISION
A WORLD
BASED ON
100%
RENEWABLE
ENERGY
In European Energy, we have great
optimism when it comes to making
our energy 100% renewable.
We have seen into the future, and we
like what we see.
HARRE
44.0 MW
DENMARK
First: Phasing out fossil fuels in power plants and vehicles will dramatically reduce air pollution dramatically across the world. Cleaner air improves public health and brings down healthcare costs.
Second: A world based on renewable energy is also a world less dependent on foreign energy supply. Today, the dependency on imports of oil, gas and coal plays central roles in many conflicts around the world. When renewable energy becomes mainstream, all countries can become energy independent to the benefit of more stability and peace.
Third: The number one threat to biodiversity is the rise of global mean temperatures. Breaking the curve of global warming is tantamount to the saving of species in the sea, on land and in the air. The world will be a richer and more diverse place to live across all species.
We invite everybody – politicians & investors, climate activists & sustainability initiators, local communities & national authorities – to join us in the common journey towards a world based on 100% renewable energy.
ABOUT US
OUR
BUSINESS
EUROPEAN ENERGY IS BUILT ON FOUR PILLARS
Onshore Offshore Downstream
Solar Power Wind Wind Technologies
Active in Europe, Active in Europe Active in Europe Active in Europe
Australia and and Brazil
AmericasThis is
European Energy
From Construction to Production
After the construction has finished and the farm has
been successfully connected to the energy grid, our
engagement can go in different directions.
From Idea to Construction
Location: Planning: Involvement: Construction: Managing the Divestment: Independent Power Purchase
assets: power sale: Agreements (PPA):
We secure the land Once a location has been It is essential to involve When all the essential rights We assess each project
rights in identified, a thorough analysis local citizens and and permits have been We consider managing individually and take the risk- Other times we keep Many companies choose a
collaboration with of the environmental impact, stakeholders as early as acquired, the construction the constructed assets and-reward profile into ownership of the PPA solution these days
the landowner and local grid capacities, both the possible and strive to phase can be started. We as a part of our core consideration. In some cases, energy farm and during the pre-construction
conduct political and the project understand and address manage the entire process business. This includes we divest the energy farm to provide electricity as and construction activities.
environmental economic framework any concerns. At this from design of the energy in-house competences in long-term investors at the an independent These PPA’s are long term
studies to minimize conditions is needed. This stage we also invite plant, global sourcing of both technical, optimal price. Often, we keep power producer. supply contracts with a fixed
the local includes but is not limited to investors to participate components, construction commercial and financial managing the plant for the price guaranteeing the
environment’s all from navigating through in the development of activities to grid connection aspects of managing investor to optimize delivery of renewable power
impact. national and local laws and the project. as well as all many renewable energy plants. production output and from an energy farm to a
permits to analyzing energy unforeseeable factors minimize operating costs. business.
production estimates. during this phase.
11European
Energy in the
World
12The European Energy Growth Story European Energy was founded in 2004 when CEO Knud Erik Andersen and Head of Construction Mikael D. Pedersen joined forces in the first wind project. Shortly after Executive Vice President Jens Peter Zink joined the company. In 2008 European Energy developed the first solar project. In 2021 European Energy will reach a new milestone crossing the line of 2 GW renewable energy capacity developed or purchased since 2004.
Extensive Experience in Power Sales
European Energy has more than 5 years experience in doing PPAs and have today four dedicated PPA specialists
today. All the energy facilities that European Energy expects to divest in 2021 have long-term offtake agreements.
Utility PPAs Government auctions Corporate PPAs
3
5
6
5
14Case: Corporate Power Purchase Agreement with Apple
European Energy has constructed a 50 MW solar farm and two onshore MHI Vestas
v164 wind turbines with a combined effect of 66,4 MW to supply Apple’s new data
centre in Denmark.
15HIGHLIGHTS BY Q1
2021
KEY
NUMBERSEBITDA Electricity Sale Equity
EUR 5.6 mil. EUR 10.8 mil.
EUR 239.9 mil.
By Q1 2021 By Q1 2021
By Q1 2021
EBITDA decreased 46% from Q1 20 to Q1 21 Sale of electricity decreased in Q1 21 by 30%
EUR million Q1 2021 2020 2019
primarily due to less divestments of energy from EUR 15.4 million in Q1 20 to EUR 10.8 Equity has increased 70% from Q1 20 to Q1 21.
parks. The management maintains the million in Q1 21 due to a quarter with low Hybrid capital has increased the equity by
outlook of EBITDA for the year of EUR 80 wind resources. EUR 75 million in Q3 20. EBITDA 5.6 61.2 44.3
million.
Equity 239.9 235.3 137.6
Electricity sale 10.8 42.9 30.5
Asset Management Construction Upscaling of
Organisation
+18% since Q1 2020 946.5 MW under
construction +42% increase
European Energy’s operational assets under
management, including 3rd party equity
761.7 MW ready to build 235 by Q1 2021
MW 2021 2020 2019
Under Construction 946.5 613 218
interests, increased by 18% (208 MW), from
This construction shows that we are very The number of employees (Head Count) has
1,155 MW to 1,363 MW during the first quarter
much in line to complete our goals for 2021 to increased 42% from Q1 2020 to Q1 2021, Ready to build 761.7 814 606
of 2021 compared to the first quarter of 2020. complete construction of 750 MW in the year.
The development is due to the net difference which reflects an increased level of activity
between commissioning, acquisition and and the need to strengthen the organization Asset Management 1.363 1.336 1.179
divestment of new wind and solar farms. to meet expected growth in the future.
17Strong Pipeline
Development pipeline Construction Portfolio
(excl. construction portfolio)
2
14
13
12,9 Under construction
12
1,7
11 Ready-to-build
10
9
8
11,8 1
7 1,4
6
0,8
GW
5
4
3 6,5
2
1
0 0
2019 2020 Q1 2021 2019 2020 Q1 2021
• Strong growth in construction pipeline during 2020, • During 2020, European Energy was engaged in construction
underlining continued future growth activities at 14 different sites in five European countries and
Brazil
• In 2021, European Energy expects to continue the
significant grow in the development pipeline • Strong growth in Ready-to-build and Under-construction
during 2020 underlining continued future growth
• Approx. 800 MW secured by PPA or FiT at the end of 2020
18Operational performance
• In 2020, European Energy recorded a record high in sale of electricity. • Asset Management continues to grow and at the end of 2020, European
Compared to the previous year, the consolidated power sales increased Energy managed 1.34 GW of assets divided between 880 MW wind power
by 41% to EUR 42.9m. and 456 MW solar power production.
• The increase in electricity production is primarily related to the strategy
to move towards becoming an Independent Power Producer (IPP) with
more generating assets kept in European Energy’s own books.
Share of electricity production Assets under Management Sale of Electricity
1.5 50
632 1,3 43
600 1,2
40
458 1,0
1 30
EUR mill.
400 30
328 0,9
GW
GWh
0,8 20
0,8 20
0.5
200
10
0 0 0
2018 2019 2020 2018 2019 2020 2018 2019 2020MARKET TRENDS
GREEN
TRANSITIONSource: Global Energy Perspective Report 2021
Source: IMF, NOAA, UN, World Economic Forum, International Organization for Migration, EIA
1. IHS market forecast in 2019 for 2019-22, and in 2020 for 2021-25
2. Top-down assessment based on world’s capacity needed to reach net-zero emissions in 2050
Source: McKinsey, EnergyData & IRENA 2030 Report; OECD Investing in Climate, Investing in Growth Report 2019
23“ There is an inflection taking place. If you compare the world today
to the world 18 months ago, the big difference is that only 25 % of
the world had a decarbonization horizon. Today, 75 % of the world
economy has a decarbonization horizon. This is a major shift.
Pascal Lamy, former Head of the World Trade Organization, in Financial Times Feb. 4th, 2021
24Low Power Prices
• Very limited short-term exposure to merchant prices
• Low energy prices is a challenge for PV and wind
• Even bigger challenge for fossil fuels
• A great driver of the electrification of society
Europe 2005-2020 Exposure to merchant prices on
70.00
operational assets
Denmark Sweden Germany
60.00 100%
91%
90%
50.00 80%
70%
40.00 60%
50%
30.00
40%
30%
20.00
20%
10.00 10% 6% 3%
0%
0.00 PPA with 25 øre subsidy Merchant parks Feed in Tarif/long term
PPACASES
EXAMPLES
ON SOLAR
AND WIND
PROJECTCoremas, Brazil
The Coremas project is a cluster of three sites in Brazil with a total capacity of 93 MW.
27Zinkgruvan, Sweden Zinkgruvan was European Energy’s first project in Sweden and the first using GE Renewables turbines. It has a capacity of 53.2 MW and was completed in 2019.
Sprogø, Denmark European Energy acquired the Sprogø Offshore Wind Farm in 2018. The seven 3 MW turbines are located in the Great Belt strait between Zealand and Funen. European Energy is currently developing several offshore wind parks, including 560 MW at Omø South and Jammerland Bay.
Troia, Italy
Troia was completed in the summer of 2020, and is Italy’s largest solar farm with 121,5 MW
capacity.
30Vandel, Denmark Vandel was constructed in Denmark late 2015. It has a 75 MW capacity and although it is five years old, it is still among Scandinavia’s largest solar plants.
Sustainability Engagement
Executive Team
Knud Erik Andersen Jens Peter Zink Mikael D. Pedersen Jonny T. Jansson Lars Bo Jørgensen
CEO and founder Executive Vice President Head of Construction, Chief Financial Officer Head of Transaction
With EE since 2004 and chairman Wind and founder With EE since 2012 Services and Project
With EE since 2005 With EE since 2004 Economy
Prior experience Prior experience
With EE since 2017
Co-founder and CEO of Sentic Prior experience Prior experience Extensive experience as Chief
A/S 10 years with KPMG holding CTO at Sentic A/S Financial Officer & General
Prior experience
Co-founder and CEO of Inside different positions, including CTO & Co-founder of Inside Manager
Partner, KPMG
Technology A/S Manager M&A Technology A/S
Glenn Aagesen Simon Bjørnholt Thorvald Spanggaard Ole Fich Poul Jacobsen
Head of Operations Director, Legal Project Director Head of Asset EPC Director
With EE since 2020 With EE since 2018 With EE since 2017 Management With EE since 2015
With EE since 2020
Prior experience Prior experience Prior experience Prior experience
Co-Founder of FairWind Head of Legal, Deloitte General Counsel & Head of Prior experience Technical Director,
International Attorney at law, Bruun & Hjejle Claims at (Denmark’s Export Vice President in Finance at Kontron Technology
Operational and Aftermarket Credit Agency) and Attorney at Ørsted’s offshore wind
Executive law, Kromann Reumert businessWe are green energy
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