Q3 2014 Results
12 November 2014
Q3 2014 Results
1
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
2
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
3
Greentech at a glance
Vision
A global green UTILITY
generating and distributing RENEWABLE ENERGY
preserving
the ENVIRONMENT and
contributing to
a WORLD SUSTAINABLE GROWTH
Q3 2014 Results
4
Greentech at a glance
Geographical presence
The Greentech portfolio is located throughout Italy, Spain, Denmark, Poland and Germany
These markets differ in the respective maturities of their renewable energy industries,
providing Greentech with a properly balanced geographical presence and attractive business
mix
319 MW
Gross installed capacity
WIND
Installed capacity: 276 MW (220 MW net) operating
Countries: Denmark, Italy, Spain, Poland, Germany
SOLAR
Installed capacity: 43 MW (38 MW net) operating
Countries: Italy, Spain
5 Countries
621 MW
Future pipeline
SHORT-MEDIUM
TERM PIPELINE
Capacity: 42 MW
Country: Poland
LONG TERM PIPELINE
Capacity: 579 MW
Countries: Poland, Italy
Wind farms in operation
Operating Solar PV Plants
Q3 2014 Results
5
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
6
Q3 2014 Results
Highlights
- 3%
Net production
297.7 GWh
Result for the period: EUR - 18.5M
- 11%
- 13%
55%
Revenue(1)
EBITDA(1)(2)
EUR 52.2M
EUR 30.5M
EBITDA margin(1)
Vs. 307.2 GWh in Q1-Q3 2013
Including EUR -12.8M for impairment of assets
Vs. EUR 58.4M in Q1-Q3 2013
Vs. EUR 35.1M in Q1-Q3 2013
61% excluding Environment
Strong improvement
of operating cash flow of
EUR 14.7M
(1) Including Associates
(2) Adjusted for Income from Associates
Q3 2014 Results
7
Q3 2014 Results
Key financials
INCOME STATEMENT
MEUR
Q1 - Q3 2014 Q1 - Q3 2013
Revenue
42.3
45.5
EBITDA
23.2
25.1
margin %
55%
55%
Profit/Loss for the period
-18.5 *
REVENUE Q1-Q3 2014 - 7% vs. Q1-Q3 2013
2.6
EBITDA MARGIN Q1-Q3 2014 55%
NET PRODUCTION Q1-Q3 2014
BALANCE SHEET
MEUR
Q1 - Q3 2014
FY 2013
amounted to 297.7 GWh
Equity
196.0
220.7
compared to 307.2 GWh in Q1-Q3 2013
(132.7)
(145.0)
NFP
Figures for Q1-Q3 2013 have been restated in accordance with the
changes implemented on IFRS 11.
* Including EUR -12.8M for impairment of assets and EUR -1.6M for
depreciation of Deferred Tax Assets
Q3 2014 Results
8
Q3 2014 Results
Key financials
REVENUE, MEUR
EBITDA, MEUR
OPERATING CASH FLOW, MEUR
14.7
12.9
10.0
9.9
7.3
9.3
25.1
23.2
45.5
Q1 - Q3 2013
Revenue
42.3
Q1 - Q3 2014
Revenue from associates
Q1 - Q3 2013
EBITDA*
Q1 - Q3 2014
Q1 - Q3 2013
Q1 - Q3 2014
EBITDA from Associates
* Adjusted for Income from Associates
Q3 2014 Results
9
Q3 2014 Results
Revenue breakdown
REVENUE BREAKDOWN BY COUNTRY
REVENUE, MEUR
4.6
1.8
0.7
0.2
42.3
ES
DE
DK
PL
Q1-Q3 2014
35.0
9.9
IT
REVENUE BREAKDOWN BY TECHNOLOGY
42.3
15.5
3.1
0.2
42.3
Other
Q1-Q3 2014
23.5
Revenue
Revenue from associates
Wind
Solar
Environment
Q3 2014 Results
10
Q3 2014 Results
Net production breakdown
PRODUCTION BREAKDOWN BY COUNTRY
PRODUCTION BREAKDOWN BY TECHNOLOGY
1%
5%
1%
6%
9%
9%
Poland
20%
Denmark
20%
Germany
Spain
Italy
84%
85%
65%
64%
Solar
15%
Q1-Q3 2013
Q1-Q3 2014
Wind
16%
Q1-Q3 2013
Q1-Q3 2014
Q3 2014 Results
11
Q3 2014 Results
Net production vs. estimates
SOLAR, GWh
WIND, GWh
In line with estimates
18.1
+5% vs. estimates
18.1
17.7
18.5
109.0
96.6
75.5 78.9
10.7
66.3 63.9
10.6
Q1
actual
Q2
budget
Q3
Q1
actual
Q2
budget
Q3
Solar production 46.9 GWh, +2% vs. Q1-Q3 2013
Wind production 250.8 GWh, -4% vs. Q1-Q3 2013
Solar revenue EUR 17.5M*
Wind revenue EUR 30.3M*
Solar EBITDA margin 75%
Wind EBITDA margin 74%
Average energy revenues 373 €/MWh
Average energy revenues 121 €/MWh
* Including revenue from associates
Q3 2014 Results
12
Q3 2014 Results
Net Financial Position
NET FINANCIAL POSITION, MEUR
31-dec-13
Cash and Cash
equivalents
Non Current
Financial
Liabilities
Current Financial
Assets (Liabilities)
Hedging
Non Current Fin.
Assets & Loans to
Associates
30-sep-14
(140.00)
(145.00)
(150.00)
(3.4)
(155.00)
(6.2)
(160.00)
(165.00)
0.2
(155.9)
12.6
(162.1)
2.9
Fair value of financial instruments was EUR 17.1M and EUR 23.3M as of 31-Dec-13 and 30-Sep-14, respectively
Q3 2014 Results
13
Q3 2014 Results
Pipeline Status
USTKA
Fully permitted, EDF EN has indicated intention to exercise the option to buy a 40 % stake in the project
30MW
(Poland)
Construction is scheduled for Q1 2015, with the aim to commence operation by the beginning of 2016
PARNOWO
12MW
(Poland)
SMOLECIN
67MW
(Poland)
Fully permitted, EDF EN has indicated intention to exercise the option to buy 100% of the project
Permitting process is ongoing with green lights from Municipalities involved
Construction of the plant is expected to commence in H1 2016 with scheduled finalization in H1 2017
A 50/50 joint venture agreement has been signed with the French utility EDF EN
BRINDISI
70MW
(Italy)
The applying process to obtain the AU authorization (Autorizzazione Unica) is on-going
According to wind assessment studies, the project is expected to deliver approx. 2,400 full load
hours per year
Q3 2014 Results
14
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
15
2014 Outlook
Key Financials
REVENUES, MEUR
EBITDA, MEUR
1.4
0.8
12-14
10.8
73.9
44.6*
6.9
59-62
59.9
9-10
31.7*
2012
2013
31-32*
Revenue from
associates
EBITDA from
associates
Revenue
EBITDA
2014E
2012
2013
2014E
* Adjusted for income from Associates
NFP, MEUR
FY 2013
Q1 2014
H1 2014
9M 2014
FY 2014
(100.00)
(110.00)
(120.00)
(130.00)
(132.7)
(140.00)
(150.00)
(138.2)
(145.0)
(135.7)
(147.0)
Q3 2014 Results
16
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
17
Strategic guidelines
BECOMING A LEADING MID CAP PLAYER
with a broadly-based portfolio based on 3 strategic pillars:
• M&A transactions
• Geographical diversification
• Technological diversification
CONTINUOUS IMPROVEMENT OF VALUATION AND METRICS
CONSTANT EFFORT ON OPERATIONAL PERFORMANCE AND COST EFFICIENCY
Q3 2014 Results
18
Agenda
1
Greentech at a glance
2
Q3 2014 Results
3
2014 Outlook
4
Strategic guidelines
5
Appendix
Q3 2014 Results
19
Investment Summary
BALANCED
GEOGRAPHICAL,
TECHNOLOGICAL AND
BUSINESS MIX
Balanced mix of mature (Denmark, Germany and Spain), attractive (Italy) and high-growth potential markets
(Poland)
319 MW of gross installed capacity diversified by technology
Production of drinkable water treatment plants and sludge treatment plants
ATTRACTIVE
GROWTH
OPPORTUNITIES
Approx. 621 MW of future pipeline, complementary in locations, technology and development phase
Strong industrial relationships with Électricité de France (EDF) and Polska Grupa Energetyczna (PGE) for
identification of new opportunities
VALUE CREATION
POTENTIAL
Value creation from
–
Operational improvement
–
Acquisition of new underpriced assets/Consolidation of complementary companies
–
Development/construction activities
STRONG FINANCIAL
PROFILE
Strong cash and liquidity position, ensuring a competitive advantage in securing third party financing for growth
opportunities
Long-dated relationships with major banking and financial groups
STRONG CORE
SHAREHOLDER BASE
Fidim Srl.
Intesa Sanpaolo S.p.A.
Pirelli Group
GWM Group
Company aiming at expanding free float and liquidity in share trading in the medium term
MANAGEMENT TEAM
WITH PROVEN TRACK
RECORD
Well known and highly respected new management team with solid reputation
Experienced professionals with multi-year track record in the industry
Q3 2014 Results
20
Group History
2009
2010/11
GWM Renewable Energy II (GWM RE II), sole shareholder
of GWM, is incorporated
A joint venture shareholder agreement with the Foresight Group relating
to the acquisition of Global Litator and the operation and maintenance
of its solar photovoltaic plant located in Cordoba (Spain)
A joint venture agreement with Solar Utility S.p.A. (Pirelli Group) based
on a 60% - 40% strategic partnership in GP Energia S.r.l. with the aim of
developing a common strategy in the photovoltaic sector
GWM developed and built the following five plants:
(i) Montetosto, an 8.7 MW plant located in Cerveteri (Lazio)
(ii) De Marinis, a 1 MW plant located in Foggia (Apulia
(iii) Mercurio, a 1 MW plant located in Ragusa (Sicily)
(iv) Ferrante, a 1 MW plant located in Trinitapoli, Foggia (Apulia)
(v) Nardò Caputo, a 9.8 MW plant located in Lecce (Apulia)
GWM obtained a major position (60%) in Gruppo Zilio, a leading Italian
company in the engineering, construction and management of micro
filtering plants for drinkable water, sludge treatment plants and minihydro
Investment Agreement GWM RE - Banca Intesa San Paolo - Pirelli Group
Founded as a local danish bank
1924
After becoming an investment company (1991),
Greentech begins to invest in renewables
1998
Greentech starts to create a portfolio in renewables in Denmark
(2000: acquisition of 3MW), Italy (acquisition of Energia Verde in
2002 and developing of 100MW in 2006), Poland (acquisition of
Wiatrapol International in 2003), Germany (30MW in 2007)
2000/07
Joint-venture with PGE Group, state utlity holding a
50% interest in Eolica Wojeciechowo
The first wind energy project in Italy is in operation
Equity offer of Greentech (€153m are raised)
Strategic partnership with EDF Energies Nouvelles
Minerva Messina and Monte Grighine plants (98MW)
are fully operational
Share purchase agreement with Gamesa Energia S.A. to acquire a
30 MW wind farm located in Tarragona, Catalonia, Spain
2005
2007
2009
2010
2011
May 2011:
Contribution Agreement Greentech – GWM RE
August 2011:
Greentech completes capital increase
September 2011:
Mandatory Tender Offer ended bringing GWM RE II to hold ownership of 71.49% of the shares in Greentech
CREATION OF A LEADING PLAYER IN RENEWABLE ENERGY SECTOR WITH A HIGHLY
DIVERSIFIED PORTFOLIO, IN TERMS OF GEOGRAPHY, TYPE OF PROJECT AND PHASE
Q3 2014 Results
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Shareholders
Fidim Srl.
Solar Utility S.p.A.
GWM RENEWABLE ENERGY I S.p.A.
70.63%
16.87%
12.5%
GWM RENEWABLE ENERGY II S.p.A.
71.49%
Market
28.51%
Greentech has strong institutional investors, major international groups with strong financial track records, such as:
Fidim Srl., an investment company, through GWM Renewable Energy I
Pirelli Group, the world leading tire group
Intesa Sanpaolo S.p.A. banking group, the largest bank in Italy and No. 5 in Europe
GWM Group, a financial group focusing on alternative investments
In addition, Greentech has strong industrial relationships with two of the largest energy producers in Europe, Électricité de France
(EDF) and Polska Grupa Energetyczna (PGE), through which Greentech will be able to secure better terms in respect of supply and
financing agreements and which also may increase the number of project opportunities available
Q3 2014 Results
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Regulatory framework – Italy
In Italy, on 11th August 2014, the law-decree no. 91/2014 became Law no. 116/2014. This establishes three
options to re-modulate Feed-in-Tariffs (FiT) for photovoltaic plants with a capacity above 200 kW. Plant owners
have to communicate the chosen option to GSE within 30th November 2014. The new tariff will be applied
starting from 1st January 2015.
After a thorough cost-benefit analysis, Greentech has chosen to apply for the option that reduces the FiT by 8%
for the remaining lifetime of the plants.
Q3 2014 Results
Greentech at a glance
Wind and solar PV existing portfolio
TOTAL INSTALLED GROSS CAPACITY BREAKDOWN
WIND PROJECTS
TYPE
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
PLANT
Milbak
Oppelstrup
Hannesborg
Frorup
Gehlenberg
Wormlage
Tiefental
Energia Verde
Monte Grighine
Minerva Messina
Cagliari II
Polczyno
Conesa
COUNTRY
DK
DK
DK
DK
DE
DE
DE
IT
IT
IT
IT
PO
ES
TOTAL
MW
MW NET
3.75
7.50
1.60
2.60
23.40
7.50
6.00
21.00
98.90
48.30
24.00
1.60
30.00
3.75
7.50
1.60
2.60
23.40
3.75
3.00
21.00
49.45
48.30
24.00
1.60
30.00
276.15
219.95
GRID
CONNECTION
Aug-01
Aug-01
Feb-01
Dec-00
Dec-01
Dec-05
Dec-05
Jul-07
Jul-10
Jul-10
Aug-12
Aug-06
Sep-09
6% 1%
11%
Italy
Germany
13%
Spain
Denmark
70%
Poland
SOLAR PV PROJECTS
TYPE
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PV
PLANT
Montestosto
Nardò Caputo
Vaglio 1
Vaglio 2
Ugento 1
Torremaggiore
Nardo Nanni
Alessano Bortone
Ferrante
De Marinis
Mercurio
Ugento 2
Montemesola 1 + 2
Alessano Strutture
Fotocampillos
Cordoba
TOTAL
COUNTRY
IT
IT
IT
IT
IT
IT
IT
IT
IT
IT
IT
IT
IT
IT
ES
ES
MW
MW NET
8.74
9.77
1.02
1.96
0.98
0.99
0.94
0.98
0.99
0.99
0.91
0.98
1.00
0.70
2.10
9.80
8.74
9.77
1.02
1.96
0.98
0.99
0.94
0.98
0.99
0.99
0.91
0.98
1.00
0.70
2.10
4.90
42.85
37.95
GRID
CONNECTION
Mar-11
Apr-11
Dec-08
Dec-09
Dec-09
Dec-09
Dec-09
Dec-09
Apr-11
Mar-11
Apr-11
Apr-11
Jun-12
Apr-11
May-08
Sep-08
TOTAL INSTALLED GROSS CAPACITY BREAKDOWN
28%
Italy
Spain
72%
Q3 2014 Results
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Wind operating plants
Monte Grighine
Minerva Messina
Italy
Power: 98.9 MW
Type of turbine:
Nordex
Start of operation:
July 2010
Ownership: 50%
Italy
Power: 48.3 MW
Type of turbine:
Nordex
Start of operation:
July 2010
Ownership: 100%
Oppelstrup
Conesa
Denmark
Power: 7.5 MW
Type of turbine:
NEG. Micon
Start of operation:
August 2001
Ownership: 100%
Spain
Power: 30.0 MW
Type of turbine:
Gamesa
Start of operation:
September 2009
Ownership: 100%
Q3 2014 Results
25
Solar PV operating plants
La Carlota
Fotocampillos
Cordoba, Spain
Power: 9.8 MW
Installation type:
Fixed-tilt
Start of operation:
September 2008
Ownership: 50.03%
Malaga, Spain
Power: 2.1 MW
Installation type:
Fixed-tilt
Start of operation:
May 2008
Ownership: 100%
Montetosto
Nardò Caputo
Lazio, Italy
Power: 8.7 MW
Installation type:
Fixed-tilt
Start of operation:
March 2011
Ownership: 100%
Apulia, Italy
Power: 9.8 MW
Installation type:
Fixed-tilt
Start of operation:
April 2011
Ownership: 100%
Q3 2014 Results
26
Short--medium and long term pipeline
Short
TYPE
PLANT
COUNTRY
Wind
Wind
Ustka
Parnowo
Poland
Poland
TOTAL
MW GROSS
MW NET
29.90
12.50
29.90
12.50
42.40
GRID
CONNECTION
TYPE
COUNTRY
2015
2015
Wind
Italy
13.50
Wind
Italy
70.00
Wind
Italy
8.00
Wind
Italy
60.00
Wind
Italy
23.00
Wind
Italy
140.00
Wind
Italy
60.00
Wind
Poland
12.00
Wind
Poland
66.70
Wind
Poland
99.00
PV
Italy
26.00
42.40
TOTAL SHORT-MEDIUM TERM PIPELINE: 42 MW
MW GROSS
TOTAL LONG TERM PIPELINE: 579 MW
TOTAL PIPELINE: 621 MW
The company is expanding its capacity in Italy and investing mainly in Poland
New solar plants are under screening in Italy
Q3 2014 Results
27
Gruppo Zilio – Complementary Company with Strong, Attractive Prospects
Leading Italian company in the engineering, construction and management of micro filtering plants for drinkable water, sludge treatment
plants, biomass and mini-hydro
Over 120 MW pipeline in Italy, Serbia, Montenegro, Hungary and Albania
PHOTOVOLTAIC: focused the construction of solar
plants, both for internal and external clients
SERVICES: focused on developing monitoring and
control systems
KEY BUSINESSES
ENERGY SYSTEMS: involved in the development and
construction of plants for the production of energy from
hydropower and biomass
Q3 2014 Results
ECOLOGY: focused on the development of facilities
for the treatment of drinking water
28
Disclaimer
Greentech Energy Systems A/S (“GES”) is an energy company developing, constructing and operating renewable energy projects
This material is confidential and not to be reproduced or circulated without the prior written consent of GES. The manner of circulation and distribution may be restricted by law or
regulation in certain countries. Persons who come into possession of this document are required to inform themselves of, and to observe such restrictions. Any unauthorized use,
duplication, or disclosure of this document is prohibited by law and may result in prosecution.
This document is intended for information purposes only. Nothing herein constitutes an invitation to buy or trade shares in GES, nor does it constitute an endorsement with respect
to any investment area or vehicle. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with
relevant persons. GES, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or
written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in
connection with the ‘promotion or marketing’ of the transaction(s) or matter(s) addressed by these materials, to the extend allowed by applicable law. Any such taxpayer should
seek advice based on taxpayer’s particular circumstances from an independent tax advisor.
This presentation contains forward-looking statements reflecting Management’s current perception of future trends and financial performance. Statements relating to 2014 and the
subsequent years are inherently subject to uncertainty, and GES’s actual results may therefore differ from the projections. Factors that may cause such variance include, but are not
limited to, changes in macro-economic and political conditions – particularly in GES’s principal markets, changes to the supplier situation and approval procedures, volatility in power
prices, regulatory changes, possibilities of obtaining and terms and conditions for project funding, etc.
All information contained here is current only as of the earlier of the date hereof and the date on which it is delivered by GES to the intended recipient, or such other date indicated
with respect to specific information, and GES assumes no obligation or responsibility for the accuracy of the information after such date. GES has no obligations or responsibility to
update or supplement any of the information contained herein.
Some information contained herein has been obtained from third-party sources, including those specifically referenced, and such information has not been independently verified
by GES. No representation, warranty, or undertaking, expressed or implied, is given as to the accuracy or completeness of such information by GES or any other person; no reliance
may be placed for any purpose on such information, and no liability is accepted by any person for the accuracy and completeness of such information.
Opinions expressed in this document may include those of GES, GES Affiliates, or non-affiliated third parties. In addition, your relationship team may highlight topics that are specific
to your objectives. These opinions may differ from the opinions by other businesses or affiliates of GES; they are not intended to be a forecast of future events, a guarantee of future
results or investment advice and are subject to change based on market and other conditions. In any event, past performance is no guarantee of future results, and future results
may not meet our expectations due to variety of economic, market and other factors. Further, any projections of potential risk or return are illustrative and should not be taken as
limitations as to the maximum possible loss or gain.
Q3 2014 Results
29