Sunflower Sustainable Investments Ltd - Company Presentation - July 2014
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Sunflower Sustainable Investments Ltd.
Company Presentation – July 2014Disclaimer
This presentation is made for convenience purposes only and is not designed to obviate the need to
inspect the reports publicly released by Sunflower Sustainable Investments Ltd., including the financial
statements. Certain information as presented in the presentation includes declarations, statements of
opinion, expectations, assessments and forecasts including in connection with the industry to which
the company belongs, which are forward looking. The information is based, inter alia, on estimates and
assumptions
i which
hi h may not materialize
i li and/or
d/ transpire
i as wrong and d involve
i l risks,
i k information
i f i andd
events which are difficult to foresee and/or are unclear, and therefore the presentation of the future
information and the said explanations should not be deemed as a promise and/or guarantee of the
company’s future performance. The Company’s actual performance may materially differ from the
f t
future i f
information
ti provided
id d by
b the
th Company
C i good
in d faith.
f ith The
Th aforesaid
f id does
d nott constitute
tit t advice,
d i
invitation, an offer or a recommendation to buy securities of the Company. The purchase of securities
of the Company shall be made only based on the Company’s valid prospectus on the date of purchase
and the immediate reports. Anyone making use of information appearing in the presentation, bears
sole
l responsibility
ibilit therefore.
th f
2Business Card
The Company operates in the Renewable Energy market
The Company holds projects in the renewable sector of 81 MW and has
additional 100 MW of projects in development stage
63 MW are connected to the electricity grid and 18MW are under
construction or in purchase process
The Company’s
Th C ’ b
business
i model
d l iis tto iinvestt iin renewable
bl energy projects
j t
which generate a strong and stable FFO
The Company
p y owns several real estate p
properties
p in Israel with a total value
of NIS 90 million
3The Group’s
Group s Investments in Projects in
i MW
90
80
70
60
50
40
30
20
10
0
2008 2009 2010 2011 2012 2013 (*) 2014
((*)) The capacity
p y of 2014 includes 18 MW of p projects
j under construction or purchase
p
process and does not include projects in development stage of 100MW
4C
Company’s
’ Revenues
R ffrom El
Electricity
t i it Million NIS
120
12
3
100 21
22
80
2
60 22
83
40 74
41
20 26 28
1 1
-
2008 2009 2010 2011 2012 2013
Italy Spain Israel
5The Companies Activities
Real Estate Wind Farms PV Projects
Properties
2 Properties 10MW Active Projects 53MW Active Projects
Book Value Projects under construction - 16MW Projects in purchase
NIS 90 million Projects in development stage - 100 MW process - 2MW
Company’s share in active projects and under Company’s share in all the
construction - 20MW projects - 41MW
Company’s share in Projects in development stage-
82MW 6The Renewable Energy Sector PV TTechnology
h l
The third largest
g Renewable Energy
gy sector, after Hydro
y and Wind
The purchase cost of panels has decreased from approx. €3.5 million per
MW in 2008 to approx. €0.5 million per MW in 2014
$114 billion of investments in 2013 in PV projects, approx. 45% of the total
investments in the renewable energy
Installed Capacity in GW around the World
- PV Projects
150
100
50
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
7The Renewable Energy Sector Wind
Wi d Technology
T h l
The fastest growing renewable energy sector in the Western world
Low Regulatory Risks: Incentives for wind-generated energy are among the
lowest in the renewable energy industry
$80 billion of investments in 2013 in PV projects, approx. 30% of the total
investments in the renewable energy
Installed Capacity in GW around the world‐ Wind Farms
350
300
250
200
150
100
50
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
8טכנולוגיית הPV- PV Sector
Solar Energy - Italy
By 2020,
2020 Italy is required to produce 17% of its consumed energy from
renewable sources, and by the end of 2012 13% were achieved
In the aggregate, by the end of 2013 PV facilities of approx. 18 GW were
connected to the electricity grid
The Company owns PV Plants with an installed capacity of 31 MW through a
subsidiary, in which the Company holds 85% and the remaining shares are
held by a local partner
The entire portfolio is financed by Italian banks in non-recourse
non recourse financing
The total investment in Italy, in terms of 100% of the projects, is in an amount
of Euro 108 Million,, out of which 27% is in equity
q y
10Solar Energy - Spain
By 2020,
2020 Spain is required to produce 20% of its consumed energy from
renewable sources, and by the end of 2012 14% were achieved
By the end of 2013, PV facilities of 5 GW were connected to the electricity
grid in Spain
The Company owns PV Plants with an installed capacity of 13 MW through
a subsidiary,
subsidiary in which the Company holds 50% and the remaining shares
are held by Shikun & Binui
A 6 MW project is financed by a German bank in non
non-recourse
recourse financing
The total investment of the Company in Spain is in an amount of Euro 49
Million, out of which 63% is in equity
11Solar Energy - Israel
Israel has set a target
g that byy 2020 it will p
produce 10% of its consumed
energy from renewable sources, and by the end of 2012 approx. 1% was
achieved
The Company
Th C h smallll active
has ti facilities
f iliti with
ith an installed
i t ll d capacity
it off 4 MW
(Company’s share 2 MW)
The Company owns medium
medium-size
size PV plants with a total capacity of 5 MW
(Company’s share 4 MW) and additional 2 MW are in purchase process
The Company sold 40% of the regular shares in projects with a capacity of
4MW and preferred shares for an amount of NIS 21,000,000
12Wind Sector
Wind Energy - Poland
The Company founded a subsidiary in which it holds 82% together with
three entrepreneurs
By 2020, Poland is required to produce 15% of its consumed energy from
renewable sources, and by the end of 2012 11% were achieved
I t ll d Capacity
Intalled C it in
i MW in
i Poland
P l d
Wind Energy
4000
3000
2000
1000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
14Wi d Energy
Wind E - Poland
P l d
The Company owns 2 operating wind
farms with a total capacity of 10 MW
(Company’s share 7MW)
The Company owns 2 wind farms with a
total capacity of 16 MW which are under
construction (Company
(Company’s
s share 13MW)
The total investment of the Company in
Poland is in an amount of € 26 Million
and until end of construction additional €
16 million will be invested
The Company
Compan signed agreements for the
finance of the operating wind farms in
non-recourse financing of approx. 55%
15Wind Energy - Finland
By 2020, Finland is required to produce 38% of its consumed energy from
renewable sources, and by the end of 2012 34% were achieved
Intalled Capacity in Finland - Wind Energy in MW
500
400
300
200
100
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2011
The Company signed an agreement for the purchase of permits in
development stage with a total capacity of 100 MW for a total consideration
of € 5 million (Company’s share 82MW)
The permits which will be fully developed will be purchased at the
completion of the development stage within two years
The estimated construction cost of the Projects,
Projects in case they will be
constructed in full and in accordance with the known construction costs, is €
160 Million 16Summary of the Group’s
Group s Investments thousand Euros
Incentive Country Company’s Total Company’s Company’s Term of Average Projected Average
Share in Initial Share Share in Incentive Cost per Annual Projected
MW Cost Initial Cost ((in y
years)) MW Revenues Annual
(1) (1) for 2013 (1) Revenues
per MW (1)
Italy
y 31 108,072
, 85% 91,861
, 20 3,486
, 16,540
, ((5)) 534 ((5))
Spain 13 97,500 50% 48,750 30 7,500 8,680 (6) 668 (6)
Feed In 5 ((2)) 17,735
, 100%
% 17,735
, 20 3,547
, ,
2,470 494
Tariff
Israel 4 15,718 60% 9,431 20 3,929 2,650 663
2 6 638
6,638 50% 3 319
3,319 20 3 319
3,319 1 165
1,165 583
20 (3) 31,770 82% 26,052 15 (4) 1,589 5,125 256
Green Poland
Certificate
6 10,050 57% 5,728 15 (4) 1,675 1,625 271
(1) In terms of 100% of the Projects (2) including 2 MW in purchase process (3) including 16 MW under construction (4) the legislation
was not enacted yet
yet. please note the Company
Company’ss Management Discussion and Analysis attached to the financial reports of 2013.
2013 (5)
regarding the change of legislation in Italy, which was not considered in the data, please see the company’s publication dated June 26,
2014. (6) regarding the change of legislation in Spain, which was considered in the data, please see the company’s publication dated
June 24, 2014.
17Return
R t off th
the Company’s
C ’ Investments
I t t in
i
Italy and Spain
In Million of Euros
Company’s share only, 50% in Spain and 85% in Italy
Spain Italy
Net Investment after Finance 31 24
Withdrawal – Net Amount (10) (3)
Remaining Financial Investment on March 21 21
31 2014
31,
Year of beginning of activity 2008 2010-2013I
Investments
t t in
i Countries
C t i in million of Euros
250 Poland Israel Italy Spain
200
150
100
50
0
2010 2011 2012 2013 2014
( ) Company’s
(*) p y Share,, in 2014 includes 2 MW in Israel in p
purchase p
process and 16
MW in Poland under constructionThe Group’s Investments in Countries (*)
In Financial Terms
31.12.12 31.12.13 2014**
Italy Spain Israel Italy Spain Israel Poland Italy Spain Israel Poland
9% 7%
16%
11%
14% 46%
35% 56% 53%
28%
24%
( ) Company’s
(*) p y Share,, investments before finance
(**) including projects under construction or in purchase process, not including Finland
20R l Estate
Real E t t Business
B i in
i Israel
I l
The Company owns properties with a total value of approx. NIS 90 million
A yielding property in A plot for the
Ra’anana in partnership construction
with REIT 1 of an office tower in
Ra’anana
100% occupation Currently used as a parking lot
NIS 62 Million Book Value NIS 30 Million Book Value
NIS 5 Million Annual Income NIS 0.6 Million Annual Income
21Company Holdings Structure
Roni Biram
&
Gil Deutsch
Redmill Union
45.44%
15.17% 9 1%
9.71%
Public Beresheit
12.74% Fund
16.94%
Sunflower
Sustainable
Investments
Ltd.
22EBITDA and
d FFO
the Group’s Total Activity in thousand NIS
Q 1 2014 Q 1 2013 2013 2012
EBITDA 15,570 12,817 89,828 76,616
FFO 6,841 4,125 39,151 43,526
EBIDTA - Earnings Before Interest, Taxes, Depreciation, Amortization, reappraisal of real estate
and capital gain
FFO - Funds from Operations - the reported operating profit, net of financing expenses (including
profit from securities and apart from rate differences) and current taxes, and net of revenues and
expenses of a capital nature, plus the Company’s share in the renewable energy business
depreciation and other amortization
The profit from securities and income interest in 2013 was NIS 8 million, while in 2012 it was NIS
12 million and in Q1 2014 it was NIS 1 million, while in Q1 2013 it was NIS 2 million
23Summary Balance Sheets ini thousand
th d NIS
March December
31, 2014 31, 2013
C h Cash
Cash, C hE
Equivalents
i l t andd Sh
Short-term
tt Investments
I t t 110,376 177,366
Investments in affiliated companies 82,805 82,048
Investment in Renewable Energy Projects,
Projects after Depreciation 640 542
640,542 602 157
602,157
Investment Property 92,382 92,380
Asset classified as held for sale 22,760 22,760
Short-term Credit and Current Maturities of Long-Term Loans and
Bonds 90,279 110,262
g
Long-Term Loans from Banking
g Corporations
p 378 050
378,050 381 917
381,917
Loans from non-controlling shareholders in subsidiaries 31,917 30,115
Bonds 197,511 199,652
E it
Equity 293,153 294,430
Net Debt without affiliated companies 587,381 544,580
Total Balance Sheet 1,032,510 1,051,820
Net Debt including affiliated companies
670,817 625,913
24 (this data is not included in the consolidated financial statements)Summary Income Statement Figures in thousand NIS
the equ
change of legislation
The red
Q 1 2014 Q 1 2013 2013
duction of valu
uity in net earrnings of affiliiated compan
Revenues 21,752 16,686 99,910
Cost of Revenues 11,555 9,509 43,863
Gross Profit 10,197
, 7,177
, 56,047
,
n. In the finan
ue of the PV Plants in 2013 was in Spain due to the
Valuation losses of photovoltaic plants - - (35,022)
Valuation gains of investment property, net - - 21
ncial reports of
General and Administrative Expenses (4,210) (3,827) (14,493)
Other income (expenses), net 180 (94) 403
Equity in net earnings (losses) of affiliated
o 2013 the lo
nies
companies 214 (850) 1,118
Operating Profit 6,381 2,406 8,074
Financing Expenses,
Expenses net (7,374
7 374) (20,558
20 558) (37,549
37 549)
oss is included
losses before Taxes on Income (993) (18,152) (29,475)
Taxes on Income 451 (3,001) 7,069
d in
Net losses (1,444) (15,151) (36,544)
25Summary
As of 2010 until today:
y
the capacity of Projects in MW was doubled
The investment in Projects was tripled
The Company’s income from producing electricity is four times higher
The Wind sector is the main growth engine of the Company and the Company
is looking for investments opportunities in:
Poland - the Company is planning to substantially increase its investment
and to expend its activity in this market
Finland - the Company
p yp preparing
p g for significant
g activity
y in this new territory
y
The Company intent is to use its knowledge and experience in the PV and
Wind sectors in order to expend its activity in the target territories
26Thank you!
Annex: Real Estate in Israel
1 “Amdocs
1. Amdocs Building”
Building at Ra
Ra’anana
anana
junction
The company holds 50% of a property,
which is located at Raanana-center
junction (south), near Route 4
Built-up
p area of the p
property
p y – approx.
pp
13,425 sqm
Most of the property is currently leased to
Amdocs
Fair book value- NIS 62 million
Annual income from the property - approx
NIS 5 million
Occupancy
p y rate - 100%
28Annex: Real Estate in Israel
2. 2007 Lot
A lot on an area of approx. 4,600 sqm
located near Amdocs Building
The lot has building rights for the
construction of a multi-story tower known as
the “Raanana City Gate Tower”
REIT 1 has an option to buy 50% of the
built-up tower
Fair
F i value
l on th
the b
books
k - approx. NIS 30
million
The lot is used as parking lot as of 2012
29The Wind Sector in Finland
Incentives to Start Activity in Finland
҉ Finland is one of the only countries in Europe with a rating of AAA
҉ The wind market in Finland is in an early stage and by the end of
2013 wind projects with a total capacity of approx. 380 MW were
erected which are included in the tariff scheme, out of which
approx 160 MW were erected during 2013
approx.
҉ The current tariff scheme set a capacity of 2,500 MW
҉ An average wind farm in Finland can produce approx. 3,000 kWh
per annumFeed in Tariff
҉ Wind farms in Finland are entitled, in addition to the market price
of electricity, to an additional amount equal to the difference
between the market price and € cent 8.35 per kWh
҉ Wind farms that will be connected before the end of 2015 will be
entitled of € cent 10.53
10 53 per kWh
҉ The additional amount equal to the difference between the set
amountt and d the
th market
k t price
i will
ill be
b calculated
l l t d based
b d on a market
k t
price not lower than € cent 3 per kWh
҉ The current market price is approx. € cent 4 per kWh
҉ The tariff is for a period on 12 yearsThe
h Wind
i d Sector iin Finland
i l d
҉ Development ‐ most of the development of new projects is executed by local
developers with limited experience in the field, while there are also
experienced international developers working with local teams
҉ Services ‐ all the construction and operation services are provided by local
companies while there are also international advisors active in the market
҉ Turbine Manufacturers ‐ most of the turbine manufacturers are active in the
market and they are adjusting their turbines to the severe weather
҉ Investment ‐ in the past, investments were made by local energy companies
and
d iinvestors
t b butt llately
t l iinternational
t ti l iinvestors
t are partt off th
the market
k t
҉ Banks ‐ Nordic banks are financing wind projectsThe Company’s
Company s Project
҉ The Company signed an agreement for the purchase of licenses for
the construction of up to 5 Wind Farms with a capacity of approx.
20 MW each, which are still in the development process
҉ The consideration for the purchase of the licenses is in an amount
of € 50,000
50 000 per MWMW, and the estimated total amount is around € 5
million, in case the transaction will be completed for all the wind
farms
҉ Based on the current construction costs, the Company estimates
that the cost of the construction of the Wind Farms will be in an
amount of € 1.6 million per MWYou can also read
