PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations

 
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
INVESTOR RELATIONS PRESENTATION

PNE – PURE NEW ENERGY

| Investor Relations Presentation | March 2020
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
DISCLAIMER

This presentation is for information purposes only and does not constitute a public offer or invitation to subscribe for or purchase any
securities of PNE AG and neither this presentation nor anything contained herein shall form the basis of any contract or commitment
whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any
other person in whole or in part.
All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness.
The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this
presentation may be statements of future expectations and other forward-looking statements that are based on the company’s current
views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ
materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the
prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and
financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document
comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a
violation of applicable Securities Laws.

        | Investor Relations Presentation | March 2020                                                                                 2
                                                                                                                      x
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
AGENDA

I.

II.

III.

IV.

       | Investor Relations Presentation | March 2020   3
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
PNE – FULL OF ENERGY

» > 25 years of industry experience

» Active in 14 countries on 3 continents

» Leading developer of wind farms in Germany                 We develop and
                                                         implement projects and
» Nr. 2 O&M manager in Germany with > 1,600 MW          solutions for the planning,
                                                            construction and
» > 5,500 MW of renewable energy projects realized       operation of renewable
                                                               power plants.
» > € 10bn of investments initiated

» Attractive wind energy pipeline of > 5,000 MW

» First PV projects in development

       | Investor Relations Presentation | March 2020
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
PIONEERS IN THE RENEWABLE ENERGY SECTOR

                               Markus Lesser
                           Chairman of the Board                                  Jörg Klowat
                                  (CEO)                                       Chief Financial Officer
                                                                                      (CFO)

» CEO since May 2016                                     » CFO since April 2011
» COO 2011–2016                                          » Industry experience since 1999
» Industry experience since 2000                         » Finance and Accounting, Controlling, Risk Management,
» Sales, M&A, Procurement, Offshore, Communication/IR      Legal, Human Resources
» Associations: Member of the Board BDEW, Member
  of the Board WAB, Chairman of Fachgruppe Energie
  und Umwelt des Wirtschaftsrates in Lower Saxony

        | Investor Relations Presentation | March 2020                                                             5
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
ROBUST BUSINESS MODEL THROUGH INTEGRATION
ALONG THE VALUE CHAIN

                                                       approx. 3 – 5 years                                                                  20 years

                                                                                                                                Sale*
         Development                                       Financing                          Construction                                              Service
                                                                                                                                 IPP
  » Acquisition of site                         » Financial analysis                     » Grid connection          » Utility                     » Technical and
  » Analysis (wind / sun)                       » Legal concept                          » Infrastructure           » Infrastructure fund           commercial
                                                                                                                                                    management
  » Selection of                                » Sales/marketing                        » Assembly                 » Insurance companies
    equipment                                   » Project financing                      » Start-up of operations   » IPP
  » Permits

                                                                                                                                                  Power-
                           Wind                                                     PV                          Storage
                                                                                                                                                  to-Gas

*sale as turnkey project or project right, as single project or project portfolio

              | Investor Relations Presentation | March 2020                                                                                                        6
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
UNIQUE TRACK RECORD

          2012                                  2012–19                2016–17                         2017                       2017–19
      OFFSHORE                                ONSHORE               ONSHORE                       OFFSHORE                      ONSHORE
     GODE WIND                                                                                                              International project
                                      Various project sales     Wind farm portfolio               ATLANTIS I
     Pipeline Deal                                                                                                                 sales
       ØRSTED                                INVESTORS                ALLIANZ                    VATTENFALL                     PROJECTS
Gode Wind ~924 MW                    »   KGAL                 ~142MW                        Atlantis I ~584 MW             » France >100MW
                                     »   CEE
» €142m received                     »   CHORUS               » Enterprise Value (EV) >     » Low double-digit €m          » Poland ~174MW
» Up to €15m due as                  »   ALLIANZ                €330m                         payment received
  milestone payments                 »   ENBW                 » Sales price in 2016         » Further milestone payments   » Sweden ~138MW
                                     »   ENEL                   €103m for 80%                 possible
Borkum Riffgrund ~ 760 MW            »   JOHN LAING           » Subsequent sale price of                                   » USA ~80MW
                                     »   PATTERN ENERGY         €21m in 2017 and increase
                                     »   QUAERO CAPITAL         of EV to > €360m through
                                     »   STADTWERKE MÜNCHEN     optimisation of financing

        | Investor Relations Presentation | March 2020                                                                                              7
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
SUSTAINABLE GROWTH

EBITDA (4-year-average, in € m)                         » 4-year-time span better reflects the operative development and
                                                          profitability of the project business than on a yearly basis
                                                        » EBITDA/EBIT impacted by investments in portfolio build-up

                                                        * Adjusted for depreciation of inventories

       | Investor Relations Presentation | March 2020                                                                      8
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
COMFORTABLE BASIS FOR FURTHER GROWTH

Equity                                                                   Liquidity
» Equity increased by more than €130m since 2012                         » Liquidity increased by more than €70m since 2012
» Solid equity ratio despite portfolio build-up and impact from          » Liquidity position remains on high level after redemption
  „IFRS 16 Leases“                                                         of €100m corporate bond in 2018 and despite investments in
In € m                                                                     portfolio build-up

300
                            Equity                        Equity ratio
250

200

150

100

 50

  0

         | Investor Relations Presentation | March 2020                                                                                 9
PNE - PURE NEW ENERGY - INVESTOR RELATIONS PRESENTATION - PNE AG: Investor Relations
OWN WIND FARM ASSET BASE GROWS

» Own wind farm asset base grows to 130.1 MW                           300
                                                                             Equity   Own wind farm assets (book value)
» Book value of own wind farms grows to €143.4m
                                                                       250
» Project financing related to own generation portfolio increases to
  €145.6m (non-recourse project financing incl. interim equity         200
  financing)
                                                                       150
» Balance sheet total increases to €567.6m
» Equity ratio decreases due to portfolio build-up and impact from     100
  „IFRS 16 Leases“ (€39.4m) – still on solid level
                                                                       50
» Liquidity position remains on high level after redemption
  of €100m corporate bond in 2018 and despite investments in            0
  portfolio build-up

         | Investor Relations Presentation | March 2020                                                                   10
LARGE 5 GW PIPELINE PROVIDES EXCELLENT
VISIBILITY BEYOND 2020

                                                                                                    EUROPE
» Onshore wind:                                                                                     in MW*
   Large, high-quality project
                                                                                                    D 1.612
   pipeline secures stable project
                                                                                                    BG 121
   output                                                                                           F   532
                                                                                                    UK   43
                                                       CANADA
» PV:                                                                                               I    40
                                                       505 MW*
                                                                                                    P   111
   First projects under                                                                             RO 156
   development in Germany, USA,                                            USA                      S    59
   Romania;                                                                432 MW*                  TR 700
   further internationalisation                                                                     H    42
   planned                                                       PANAMA
                                                                 352 MW*

* only wind onshore
                                                                                     SOUTH AFRICA
                                                                                     530 MW*
            | Investor Relations Presentation | March 2020                                                    11
AGENDA

I.

II.

III.

IV.

       | Investor Relations Presentation | March 2020   12
STRONG GROWTH OF RENEWABLE ENERGY MARKET AHEAD

Key growth drivers:                                              World electricity generation (GWh/yr)
» Global commitment to reduce global warming and ambitious       70.000.000
  political targets (e.g. COP21)
                                                                 60.000.000
» Renewable sourced electricity is key for decarbonisation/
  CO2 reduction                                                  50.000.000

» Growing demand for renewable energy driven by economic         40.000.000
  growth and geostrategic reasons                                30.000.000
» Competitive renewable energies due to heavily decreasing
                                                                 20.000.000
  technology costs
» High demand especially for premium projects in low interest    10.000.000
  environment                                                            0
» Increasing power prices driven by the nuclear phase-out                 1990    2000   2010   2020     2030     2040   2050
  (Germany, France) and increasing prices for CO2 certificates          Coal             Oil                Gas
  reduce dependency on subsidies                                        Nuclear          Other renewables   Hydro
                                                                        Solar            Wind onshore       Wind offshore
Source: DNV GL – Energy Transition Outlook 2018

            | Investor Relations Presentation | March 2020                                                                      13
ELECTRICITY PRICES WILL INCREASE

    » Electricity prices will increase as nuclear power plants go offline in Germany and France
    » Prices of CO2 certificates will increase
    » This will open up new business opportunities

   Power price scenario Germany                                                                            Historic          Modelled
EUR/ 90
MWh                                                   August / September / October 2019, 6.20 ct/kWh
     80
     70                                                                        May 2019, 6.13 ct/kWh
     60                                                                       May 2017, 5.78 ct/kWh
     50                                                                       November 2017, 3.82 ct/kWh
     40
     30                                                                                                                   August 2018, 6.16ct/kWh

     20
                                                                                                                          February 2018, 4.73 ct/kWh
     10                                                                                                       initiated
      0
          2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
    Source: PNE AG
                       EPEX Baseload                   Electricity price
                                                       Preisprojektion               Spot Day Ahead
                                                                                    EPEX                        EEG
                                                                                                                EEG                Tender historical
                                                                                                                                   Auction             Renumeration
                                                                                                                                                       Auction modelled
                                                       projection                    electricity price          tariff             results             modelled
               | Investor Relations Presentation | March 2020                                                                                                             14
NEW OPPORTUNITIES THROUGH INTEGRATION
OF ENERGY MARKETS

Maximising project value through:
                                                                             Battery storage
» Focus on value chain after power generation
» Combination of wind, PV and storage
                                                                                                 E-Mobility     Natural gas drive
» Creating a new sales channel through the integration
  of storage solutions (e.g. Power-to-Gas)
» Offering solutions to bypass grid bottlenecks             Solar PV Wind      Power grid        Electrolysis     Methanation       Gas grid

                                                                               Pump and          Hydrogen
                                                                              compressed           drive
                                                                               air storage
                                                                 Power-to-heat              Households, businesses              Gas and steam
                                                                                                 and industry                    power plants
                                                                                                                                Cogeneration
                                                                Electrocity flow                  CO2                            power plants
                                                                Hydrogen                          Artificial natural gas
                                                                Heat supply                       (generated through green electricity)
Source: e/m/w 2017

           | Investor Relations Presentation | March 2020                                                                                      15
DEVELOPING INTO CLEAN ENERGY SOLUTION PROVIDER
WITH „SCALE UP“ PROGRAMME

                                                                   TECHNOLOGY              OPERATIONS
                                                                   - Wind                  - Power Generation
                                                                   - PV                    - Smart Energy
                                                                   - Storage                 Supply Management
                                                                   - Power-to-Gas

 TECHNOLOGY          OPERATIONS                                    MARKETS                 SOLUTIONS/
 - Wind              - Power Generation                            - Established Markets   CONSULTING
                                                                   - Emerging Markets      - Engineering &
                                                                                             Financing Solutions
 MARKETS             SOLUTIONS/
                     CONSULTING                                                            - Repowering
 - Established
   Markets                                                                                 - O&M
                     - Repowering
                     - O&M
                                                           S   »
                                                           C   »
                                                           A   »
                                                           L   »
                                                           E   »

          | Investor Relations Presentation | March 2020                                                           16
CLEAR MID TERM TARGET: PROFITABLE GROWTH AND
REDUCED VOLATILITY

» 1. Growth
                                                                                             2023
  Increase of output in Project development as well as in wind                               EBIT
  farm management and reduction of cost by economies of scale                               target

» 2. Diversification                                                                38–44*
                                                                                             €m
  Increase of technological and geographical diversification and
                                                                       47,8
                                                                                                          Increase
  expansion along the value chain to secure attractive margins          Increase of                  of own generation
                                                                   project output by 2023             by 2023 to up to

» 3. Visibility
  Significant increase of stable, recurring earnings base and
                                                                      >400                              500
                                                                          MW p.a.          under           MW
  stable cash flows through organic and inorganic growth in                             management
  Services business and build-up of own generation portfolio                          in O&M by 2023

                                                                                    >2,200
                                                                                             MW
* +30–50% compared to average EBIT of 2011–2016

           | Investor Relations Presentation | March 2020                                                                17
STEP BY STEP EXECUTION OF STRATEGIC AGENDA

                                                                                                     Processes & Tools

                                                                                                 » Profit center structure introduced
                                                                          Products               » Newly defined processes
                                                                                                 » IT structure unified
                                                                   » Newly defined and
                                           Organisational &
                                         financial framework         expanded product range

                                     » Financing optimised: € 100m corporate bond paid back, € 50m
   Strategy                            corporate bond placed
                                     » Takeover of remaining WKN stake, transformation from AG to GmbH,
                                       cross-company standardisation of the organisational structure

   | Investor Relations Presentation | March 2020                                                                                       18
SCALE UP – EXECUTION FULLY ON TRACK

                                                                                                                                                                     2023
                                                                                                                                              …
                                                                                                                      2020
                                                                                    2019
                                                2018                                                                                                         » Finalisation of
            2017                                                                                                                     » Add further new         SCALE UP
                                                                                                              » Sale of 200MW          products/services
                                                                          » Development of                      portfolio share*
                                      » Completion of                       project pipeline in                                      » Product range
 » Start of ramp-up                     ramp-up phase                                                         » Completion and
                                                                            the 1st new market                                         of different Hybrid
   phase                                                                                                        sale of 1st
                                      » First new                         » 1st PV project in                                          Power Plants is in
 » Structures/                          products/services                                                       developed project      place
                                                                            development                         in new markets
   People/Processes                     available
                                                                          » Provide additional                                       » Start the build-up
 » Implement Smart                    » First revenues with                                                   » 1st PPA                of next portfolio*
                                                                            services and                        (Power Purchase
   Development                          new products and                    expand consulting                   Agreement) in        » Market entrance
   Team Hamburg                         services                            solutions                           foreign markets        3rd market
 » Start build-up of                  » Partnering                        » Expansion of                      » Market entrance      » Identify remaining
   200MW portfolio
                                      » Improvement of                      Offshore                            2nd market             white spots in
                                        financing structure                 Development                                                regions, value
                                                                                                              » Sale of 1st Hybrid     chain and products
                                                                                                                project

       RAMP-UP                          TRANSFORM                              EXECUTE                            DELIVER
* Expansion of own power generation portfolio, envisaged sale of wind farm portfolio 2020 will not be continued

            | Investor Relations Presentation | March 2020                                                                                                                       19
AGENDA

I.

II.

III.

IV.

       | Investor Relations Presentation | March 2020   20
HIGH PROJECT ACTIVITY IN 2019

» 450.8 MW sold, put into operation or started construction                               Sold,
                                                                                    put in operation,
  (2018: 235.7 MW), highlighted by projects Jasna (132 MW)
                                                                                  started construction
  and Malarberget (113 MW)
» Tender successes in Germany (67.8 MW) and Poland (94.8 MW)                       450.8
» Assets of repowering project Papenrode (22.3 MW) acquired                               MW
» Scale Up – Implementation fully on track                            47,8
                                                                       Tender
                                                                      successes
                                                                                                      Own wind
                                                                                                  generation portfolio

                                                                      162.6                        130.1
» PV pipeline expanded in Germany and international markets
» Service business internationalised and strengthened with new
  products and acquisitions                                             MW                                MW

» Expansion of own power generation portfolio up to 500 MW by                         Projects
  2023 – strategy extension to minimize volatility                                under construction

  Envisaged sale of wind farm portfolio 2020 will not be continued,
  projects to be kept in own generation portfolio                                   311.0
                                                                                          MW

        | Investor Relations Presentation | March 2020                                                                   21
HIGH PROJECT ACTIVITY REFLECTED IN IMPROVED FIGURES

» Guidance for FY 2019 (EBITDA € 25-30m, EBIT € 15-20m)
  achieved or slightly exceeded                                                EBITDA
» Total output (€ 174.0m, +55% yoy) and operating result
  (EBITDA +91% yoy, EBIT +143% yoy) clearly improved yoy –                    31.6
  driven by international project sales                                         €m

» Gross cash position very solid at € 111.9m                          47,8
                                                                       EBIT              Equity

                                                                      19.0              220.0
» Equity increases to € 220.0m
» Decrease of equity ratio to approx. 39% attributed to increase of
  non-recourse project financing (portfolio build-up) and              €m                 €m
  application of IFRS 16 Leases
» New segment reporting introduced                                              Cash

                                                                              111.9
                                                                                €m

        | Investor Relations Presentation | March 2020                                            22
EXPANSION OF OWN POWER GENERATION

» PNE Group will expand its own wind farm operations                      Project         MW         State                Status
  considerably in the future                                         Kührstedt-Alfstedt   43.2    Lower Saxony   in operation since Q4 2017

» Changed framework conditions and favourable financing options      Gerdau-Repowering    21.6    Lower Saxony   in operation since Q1 2019
  led to decision                                                        Schlenzer         6.5    Brandenburg    in operation since Q2 2019

» Envisaged sale of wind farm portfolio 2020 will not be continued      Neuenwalde         7.2    Lower Saxony   in operation since Q4 2019
                                                                           Kittlitz       17.2    Brandenburg    in operation since Q4 2019
» Objective of stabilising sales and earnings at a high level
                                                                      Laubuseschbach       3.0       Hesse        in operation since 2002
» Aim is to achieve the medium-term EBIT target of € 38-44m*
                                                                                                     Baden-
  until 2023 earlier                                                     Pülfringen        6.5                    in operation since 2002
                                                                                                  Württemberg
» Individual projects, particularly abroad, will still be marketed                                   Baden-
                                                                           Erfeld          2.6                    in operation since 2002
                                                                                                  Württemberg
» Own generation portfolio currently consists of 130.1 MW of            Papenrode         22.3    Lower Saxony    in operation since 2002
  onshore wind projects                                                    Total          130.1
» Power generation Total output** at €19.4m in FY 2019 (2018:
  €18.2m), EBITDA** at €14.0m in FY 2019 (2018: €13.9m)

* as defined in Scale up strategy
** incl. Silbitz

             | Investor Relations Presentation | March 2020                                                                                 23
WELL-FILLED PROJECT PIPELINE WIND ONSHORE

Country                  I – II           III              IV   Total MW
                                                                            Sold/     Germany – Good activity despite delays in permitting process
                                                                           Services   » Gerdau-Repowering (21.6 MW), Schlenzer (6.5 MW),
Germany                 1,251           361                0     1,612        20
                                                                                        Kittlitz (17.2 MW) and Neuenwalde (7.2 MW) completed
Bulgaria                 121             0                 0      121         0
France                   271            261                0      532         0         and put in operation
United Kingdom            43             0                 0       43         0       » Wölsickendorf (16.8 MW) sold to CEE Group
Italy                     40             0                 0       40         0       France – Strong momentum continues
Canada                   505             0                 0      505         0       » Project Laperrière (19.2 MW) completed
Panama                   352             0                 0      352         0
Poland                    92             19                0      111        174      Sweden – Project sold
Romania                   54            102                0      156         0       » Malarberget (113 MW) sold to Enlight Renewable Energy
South Africa             500             30                0      530         0       » Project Laxaskogen (25.2 MW) completed
Sweden                    0              59                0       59        113
                                                                                      Poland – Project sold
Turkey                   629             71                0      700         0
Hungary                   0              42                0       42         0
                                                                                      » Jasna (132 MW) sold to Stadtwerke München
USA                      266            166                0      432         0       » Construction management for Barwice (42 MW)
Total                   4,124          1,111               0     5,235       307      Panama – Pipeline acquired
Phase I – II = Exploration & Development             As of December 31, 2019          » 5 projects with approx. 352 MW
Phase III = Planning
Phase IV = Implementation till handover                                               USA – Project sold
Sold/Services = sold, but construction management services by PNE                     » Burleigh sold to Burke Wind, LLC

          | Investor Relations Presentation | March 2020                                                                                        24
FURTHER MILESTONE PAYMENTS EXPECTED FROM SOLD
OFFSHORE WIND PROJECTS

8 projects sold
» 4 projects already in operation
Active as service provider for projects sold
» Consultant agreements in place with Ørsted & Vattenfall
Further milestone payments expected
                                                                                          1
» Up to € 15m from Gode Wind 4                                                            2

                                                                                          3
Zone    Sold projects               Phase       #WEA        Total MW       Sold to
                                                                                          4
  1     Borkum Riffgrund 1            8            78          312     Ørsted (DONG)
                                                                                          5
  1     Borkum Riffgrund 2            8            56          448     Ørsted (DONG)
                                                                                          6
  1     Gode Wind 1 & 2              8/8        55 + 42        582     Ørsted (DONG)
                                                                                          7
  1     Gode Wind 3 & 4              5/5           30          242     Ørsted (DONG)
                                                                                          8
  2     Atlantis I                    3            73          584        Vattenfall
                                                                                          9
  4     HTOD5 (Nautilus II)           2            68          476     Ventizz/Hochtief
                                                                                          10
Total                                             402         2,644
                                                                                          11
Phase 2 = Application conference held, 3 = Hearing held,                                  12
4 = Approval granted, 5 = Grid connection, 6 = Investment decision,
                                                                                          13
7 = Under construction, 8 = In operation
                                                                                               *Project sold, PNE active as service provider

           | Investor Relations Presentation | March 2020                                                                                25
PROJECT PIPELINE PV

Country                       I – II              III        IV       Total MWp      Improved conditions for PV projects
Germany                         10                 0          0           10         » Photovoltaic installations have become increasingly cost-effective
Romania                        112                0           0           122          and thus more marketable in the area of electricity generation
USA                             1                 0           0            1         » Legal and economic framework conditions for the development of
Total                          123                0           0           123          photovoltaic projects are in place in many countries
Phase I – II = Exploration & Development                   As of December 31, 2019   Additional markets and projects are being evaluated
Phase III = Planning
Phase IV = Implementation till handover                                              » Numerous markets are currently being examined in detail and the
                                                                                       first rights are being secured
                                                                                     » Particular attention will initially be paid to Germany, France, Italy,
                                                                                       Romania and the USA as well as other international markets

          | Investor Relations Presentation | March 2020                                                                                                        26
CLEARLY IMPROVED RESULTS

» FY 2019 result driven by international project sales and       In € m                               FY 2019    FY 2018
  strategic expansion                                            Sales                                  132.8        91.4
» Total output increased by 55% yoy, EBITDA +91% yoy,            Work in progress                         36.6       15.1
                                                                 Other income                              4.7        5.3
  EBIT +143% yoy
                                                                 Total output                           174.0      111.8
» Operating performance and earnings driven by:                  Cost of materials                       -93.0      -36.7
  »   International project sales in Poland and Sweden           Personnel                               -30.6      -27.8
  »   Sale of project Wölsickendorf in Germany                   Others                                  -18.9      -20.1
                                                                 Impairment on offshore inventories          0      -10.8
  »   Results from Power Generation and Service
                                                                 EBITDA                                   31.6       16.5
  »   Build-up of wind farm portfolio                            Depreciation                            -12.6       -8.7
» Financial result burdened by higher interest expenses due to   EBIT                                     19.0        7.8
  valuation of interest rate swaps (€ 4.3m)                      Financial result                        -11.7       -9.8
                                                                 EBT                                       7.3       -2.0
                                                                 Taxes                                    -6.0       -0.4
                                                                 Non-controlling interests                 0.7       -1.4
                                                                 Net income                                0.7       -1.0
                                                                 EPS (in €)                               0.01      -0.01
                                                                 EPS (in €) Diluted                       0.01      -0.01
          | Investor Relations Presentation | March 2020                                                               27
GROWTH IN ALL BUSINESS SEGMENTS
FURTHER DIVERSIFICATION OF BUSINESS

» Project development                                              Total output*                                                     EBITDA*
                                                                   In € 250,0
                                                                        m                                                            In € m
  » Project development output grows to €154.4m (+57%),
    primarily driven by international project sales                                                                                              50,0
                                                                                      200,0
  » EBITDA grows to €25.5m (+221%)
                                                                                                                                                 40,0
» Services                                                                            150,0
                                                                                                                                                 30,0

                                                                    in Euro million
  » Services output grows to €18.4m (+55%),

                                                                                                                               in Euro million
    mainly driven by new service offerings                                            100,0                                                      20,0

  » EBITDA increases to €5.2m (+29%), despite integration and                                                                                    10,0
    restructuring costs of acquired companies                                          50,0
                                                                                                                                                  0,0
» Electricity generation
                                                                                        0,0
  » Power generation output increases to €19.4m (+6%)                                                                                            -10,0
                                                                                                 2018       2019                                            2018           2019
  » EBITDA increases slightly to €14.0m (+1%), due to increase                        -50,0                                                      -20,0
    of own power generation capacities and despite positive one-
                                                                                      Project Development                                         Electricity Generation
    off effect in 2018 (€4.2m)
                                                                                      Services                                                    Consolidation
                                                                   * Comparability to previous year’s figures is limited due to new segment structure

        | Investor Relations Presentation | March 2020                                                                                                                            28
BALANCE SHEET REMAINS ROCK SOLID

Property, Plant and Equipment                               in €m as of December 31, 2019 (as of December 31, 2018)               Equity
» Transformer stations                €13.2m                                               567.6 (452.6)                          » Equity ratio solid at 39%
» Land and building                   €11.2m                Intangible Assets
                                                                                      64.7
                                                                                     (65.1)                                       Non-current debt
» Own wind farms                    €143.4m
                                                                                                       220.0
                                                                                                                    Equity
                                                                                                                                  » Corporate bond 2018/23 (€50m, 4%)
                                                                                                      (216.3)
Rights of use                                              Property, plant and       174.1                                        » Liabilities to banks €135.6m,
                                                                   equipment         (96.1)
» First time application of “IFRS 16 Leases”                                                                                        mainly project financing (non recourse)
                                                                                                                                  » Liabilities from leasing contracts (rights of use)
Inventories                                                     Rights of use       39.4 (0.0)                                      €37.2m
                                                                       Other       24.4 (19.9)
» Advance payments                    €23.4m                                                           234.0        Non-current
                                                                   Inventories        101.4           (142.0)       debt          Current liabilities
» Offshore                            €16.5m                                         (117.3)
                                                                                                                                  » Liabilities to banks €10.3m, mainly project
» Onshore Germany                     €33.8m                 Receivables and          51.7                                          financing (non recourse)
                                                                other assets         (25.1)
» Onshore International               €27.3m
                                                                                                                                  » Liabilities from leasing contracts (rights of use)
                                                                                      111.9            113.6        Current
                                                                        Cash                                                        €3.1m
Liquidity                                                                            (129.1)           (94.3)       liabilities

» Cash position                     €111.9m
                                                                                     Assets         Equity
                                                                                                     Equityandand
                                                                                                    Liabilities
                                                                                                      liabilities
                                                                                 (rounding differences possible)

          | Investor Relations Presentation | March 2020                                                                                                                            29
EARLY EXTENSION OF STRATEGY TO
FURTHER REDUCE VOLATILITY

» Increase own power generation portfolio in Germany (sale of wind farm portfolio 2020
  will not be continued)

» Individual projects, particularly abroad, will still be marketed

» High project activity due to high number of MW under construction (311 MW)

» Well-filled project pipeline (5.235 MW wind, 123 MWp PV)

» Expand into new markets and services according to our Scale up milestones

» Guidance for FY 2020: EBITDA of € 15-20m and EBIT of € 5-10m                                     Guidance FY 2020:
                                                                                                              EBITDA

                                                                                                  €15–20m
                                                                                                                EBIT

         | Investor Relations Presentation | March 2020
                                                                                                  €5–10m
                                                                                         iStock
AGENDA

I.

II.

III.

IV.

       | Investor Relations Presentation | March 2020   31
PNE SHARES

PNE vs. RENIXX vs. ÖKODAX                                          Basic information*
Indexed to 100%                                                    WKN/ISIN                                         A0JBPG/DE000A0JBPG2
240%                                                               Number of shares                                                76.603.334
              PNE AG Shares
                     Aktie                       RENIXX   ÖkoDAX
220%                                                               Market capitalization                                        approx. €295m
200%                                                               Market segment                                              Prime Standard
180%                                                               Indices                                        CDAX Technology, ÖkoDAX
160%
                                                                   Designated Sponsors/Market Maker              Commerzbank, Baader Bank
140%
                                                                   Reuters/Bloomberg                                            PNEGn/PNE3
120%
100%                                                               Analyst recommendations*
 80%                                                                                        Recommen-
                                                                   Bank                                 Price target Analyst
                                                                                            dation
 60%
                                                                   M.M. Warburg             Hold        € 4,30      Jan Bauer
 40%
                                                                   First Berlin             Add         € 4,00      Karsten v. Blumenthal
                                                                   SMC                      Hold        € 4,30      Holger Steffen
                                                                   Baader Helvea            Reduce      € 4,20      Laura Lopez Pineda
                                                                   * as of March 26, 2020
        | Investor Relations Presentation | March 2020                                                                                      32
PNE BONDS

Corporate bond                                          Corporate bond 2018/2023   Coupon 4%
                                                        (WKN: A2LQ3M)              Volume: €50m
 130
                      Corporate
                      Anleihe   bond 2018/2023
                              2018/2023
 120

 110

 100

  90

  80

  70

       | Investor Relations Presentation | March 2020                                             33
CONTACT & FINANCIAL CALENDAR

Rainer Heinsohn                                          Financial Calendar
Head of Communication                                    Publication of Annual Report         31.03.2020
Tel: +49 (0) 4721 – 718 - 453                            Publication of Financial Report Q1   13.05.2020
Fax: +49 (0) 4721 – 718 - 373                            Publication of Financial Report Q2   12.08.2020
E-Mail: rainer.heinsohn@pne-ag.com                       Publication of Financial Report Q3   11.11.2020
                                                         Analyst Conference/Frankfurt         November 2020

Christopher Rodler
Head of Investor Relations
Tel: +49 (0) 40 879 331 14
Fax: +49 (0) 4721 – 718 - 373
E-Mail: christopher.rodler@pne-ag.com

        | Investor Relations Presentation | March 2020                                                        34
You can also read