Star Conference London

Transcription

1 Star Conference London London, October 2 Luogo e data nd 2014

2 Group Overview Strategy Financial Highlights Conclusions

3 Falck Renewables at a glance A pure player in the renewable energy sector Industrial player and Developer Service provider 29 plants across Europe with a good technology mix : Greenfield Development and Performance & Asset Mgt - Wind - 17 for 711 MW - Biomass / WTE - 2 for 35 MW - Solar - 5 for 16 MW Third parties assets through a specialised company Vector Cuatro 762* MW in operations Captive for the Group 37.5 MW under construction International presence 94 MW authorized 3 ~ 180 MW pipeline * 726 MW according to the adoption of IFRS 11

4 Falck Renewables: 762 MW* Across Europe 4/120 Plants/MW In operation 8/317 Plants/MW Authorised/Under constr. ITALY - Buddusò Ala dei Sardi 138 MW ITALY WTE Trezzo sull Adda 20 MW ITALY Cardonita 3.7 MW 2/49 UK Millenium 65 MW SPAIN Cabezo MW FRANCE Les Cretes 10 MW 4 /42 14 /354 * 726 MW according to the adoption of IFRS /12

5 and a wide pipeline 38 MW under construction ( ) and around 80 MW authorized ( ) Assel Valley (up to 30 MW authorized) Auchrobert (up to 36 MW authorized) Kingsburn (up to 22,5 MW under construction) Q Illois (up to 12 MW authorized) West Bromwich (up to 16.2 MW authorized) Spaldington (up to 15 MW - under construction) Q ~180 MW under development mainly in the UK ~ 130 MW in Wind ~ 50 MW in WTE/Biomass 5

6 Consistent delivery and cash flow generation Plants Continuos Profitability Growth 57% 58% 57% % 51% % % % 50% 40% 30% Wind Solar WTE Biomass EBITDA REVENUES EBITDA MARGIN PFN/Ebitda vs MW Growth Cash Flow Generation NFP December 2011 CAPEX net of Disposals Derivatives Fair Value Variation Cash Flow from Operations Dividends Other NFP December (826) (9) (11) PFN/EBITDA MW 0 (114)

7 Stock Performance and Governance Falck Renewables price performance Shareholders structure * prezzi volumi Milioni /12/13 31/01/14 28/02/14 31/03/14 30/04/14 31/05/14 30/06/14 31/07/14 31/08/14 30/09/14 31/10/14 30/11/14 31/12/14 Market Segment: STAR MTA Reuters Code: FKR.MI Bloomberg Code: FKR IM Number of Shares Outstanding: 291,413,891 Auditors: Reconta Ernst & Young * Source: Consob and Company ** Last three months Price (September 26 th, 2014): Euro Market Cap (September 26 th,2014): 304 mn Euro Average Daily Volume**: Specialist: Banca Akros 7

8 Group Overview Strategy Financial Highlights Conclusions

9 Falck Renewables: three pillars strategy Industrial player and developer Expand the asset portfolio in different countries by co-development with strategic partners Service Cover the whole value chain in the renewable energy industry developing a service division to extract more value from the Assets (inside and outside the Group) and to optimize the performance within the market rules Innovation Create an innovation division to propose new products and processes for Energy Hubs capable of optimizing the performances of the renewable assets and their integration with the grids 9

10 Industrial player and developer: Wind Sector Sale of 49% stake in UK qualified operating assets to CII for a cash in of GBP 154.4m (EV equating to approx. 2m/MW installed) Co-investment with CII after assets disposal: 100m in already authorized/under construction onshore wind projects in the Falck Renewables portfolio 125m in other plants in the broader renewable energy sector Construction and operation of authorized MW (Spaldington, Kingsburn, Assel Valley, Auchrobert, Illois ) * Dec 2013 Dec 2012 MW Euro/000 Dec 2013 Dec 2012 Revenues 187, ,887 Ebitda 135, , * Figures not restated for IFRS 11

11 Industrial player and developer: Biomass, WTE and Solar 1/2 Strong capex plan to balance non programmable sources New technology mix with WTE, solar thermo (Rende site), anaerobic digestion and waste biomass plants Partnership with Verus Energy Limited Acquisition to construct a new plant in Waste to Energy through an advanced technology in West Bromwich (UK) WtE, biomass and solar sector * Dec 2013 Dec 2012 MW Euro/000 Dec 2013 Dec 2012 Revenues 88,064 93,661 Ebitda 32,960 37, * Figures not restated for IFRS 11

12 Industrial player and developer: Biomass, WTE and Solar 2/2 Acquisition of 51% of Verus Energy Oak Limited Partnership with Verus Energy Limited Acquisition of 51% of the special purpose project entity, Verus Energy Oak Limited ( VEOL ) that owns the authorization to construct a new plant in Waste to Energy through an advanced technology in West Bromwich (UK) The plant envisages energy recovery through the thermal treatment of RDF (Refuse Derived Fuel: i.e. solid fuel obtained from non-hazardous waste) and uses bubbling type fluid bed stage gasification technology to do so Details Approval subject to due diligence investigations and the verification of bankability still underway Location: West Bromwich (8 km west of Birmingham) Input Capacity: 130,000 tons/year of Refuse Derived Fuel (RDF) Plant Nominal Capacity: 16.2 MW Total Capex expected: approx. GBP 80m Revenues expected: approx. GBP 20-21m EBITDA expected : approx. GBP 9 10m The project will produce power equivalent to the demand from UK homes and it will avoid ton. of CO2 per year 12

13 New service division 1/3 Vector Cuatro Acquisition Vector Cuatro S.L. is a Spanish company active in the management of the whole value chain of energy projects: from advisory to structuring, from engineering to management and administration of renewables facilities The company has been founded in 2007 by Borja Escalada, CEO and major shareholder of Vector Cuatro (~ 51%). The management team owns, directly and indirectly, the remaining 49% of the capital Vector Cuatro is currently managing around 934 MW of third party assets with a team made of around 100 employees Main presence in Spain, Italy, France with significant opportunities growth in Japan, Mexico and other countries (North America, South Africa, Bulgaria) 13

14 New service division 2/3 Vector Cuatro direct presence and activities CANADA SPAIN FRANCE JAPAN Asset Management Asset Management Engineering Transaction &legal ser. Asset Management Engineering Legal services Engineering Transaction &legal ser. UNITED STATES DOMINICAN REPUBLIC ROMANIA GUATEMALA GREECE ECUADOR ISRAEL PERU PORTUGAL CHILE SOUTH AFRICA MEXICO Start-up Asset Management Engineering Transaction &legal ser. ITALY Asset Management Engineering BULGARIA Asset Management AUSTRALIA 14 Vector Cuatro current direct presence Potential upside due to Vector Cuatro historical presence

15 New service division 3/3 FKR and Vector Cuatro integration s potential upside Market competencies from an asset owner point of view in renewable energy markets (wind, solar, WTE and Biomass) Technical competencies to improve asset performances Portfolio management Finance & Incentives Strong experience in the wind sector Solid client relationships due to strong commercial acumen and client acquisition skills Deep-rooted service provider mentality to meet clients needs and expectations Asset Management and Engineering competencies Mainly PV but also wind competencies (Development, Permitting and Engineering) Cohesive, highly motivated, young, dynamic and internationally minded management team The integration will merge several competencies to be successful in the market, speeding up changes Market competencies to extend product offering (cross-sell asset management services and larger client base) Technological diversification: opportunity to expand the service platform to new technologies Geographic expansion: new countries and opportunity to increase the current presence Further optimization in asset management activities currently carried out internally by FKR Performance improvements on both FKR asset base (wind, PV, biomass, WTE) and third parties asset base 15

16 Group Overview Strategy Financial Highlights Conclusions

17 H highlights IFRS 11 APPLICATION June 14 vs June 13 % June 13 INSTALLED CAPACITY - MW % 680 ENERGY PRODUCTION - GWh % 987 REVENUES - m % EBITDA - m % 88.5 NET EARNINGS - m % 19.3 Starting from January 2014, new IFRS 11 (JV s accounting treatment) has been adopted and according to this principle investments in Frullo Energia Ambiente, La Muela and Palermo Energia Ambiente have been recognised by equity method. Also the 1H 2013, for comparative purposes, has been reclassified with the new IFRS

18 H key factors 2014 Guidance Operating business Poor wind conditions across Europe Low tariffs and no incentives in Spain Penalties on non programmable sources (E.g. minimi garantiti, captured price) and on programmable sources (CIP 6) Ongoing activities According to the Framework Investment Agreement with CII, FKR is actively in talks for the sale of the minorities in Nutberry and West Browncastle wind farms H Results Results in line with expectations Increasing contribution from the UK due to change of perimeter (Nutberry - 15MW, full year - and West Browncastle -30 MW, one month) Cash generation from operating plants and cash-in from the Borea deal with CII enabled a strong reduction of the Net Financial Position 18

19 H Financial highlights millions of euro June 2014 June 2013 Dec 2013* Revenues Net Operating costs (55.1) (53.5) (108.5) Ebitda % on Revenues 56.7% 62.3% 57.2% Depreciation - Amortization - Write Off (32.4) (33.0) (71.7) Operating result % on Revenues 31.2% 39.1% 29.0% Financial income and charges (25.3) (25.2) (45.0) Equity investments Earnings Before Taxes Taxes (9.4) (13.2) (13.7) Net Result Minorities (3.0) (0.1) 0.2 Net Group Result millions of euro June 2014 June 2013 Dec 2013 Net Invested Capital 1, , ,9 Equity Net Financial Position (597.9) (754.1) (728.1) of which: Proj. Fin. and MLT no recourse (692.6) (734.1) (690.8) NFP excluding Derivatives Instruments (531.2) (691.7) (673.7) * 2013 Figures restated for IFRS 11

20 Cash flow and net financial position Cash flow NFP December 2013 CAPEX net of Disposals Exch difference on assets Derivatives Fair Value Variation Cash Flow Euro millions from Operations Cash from CII Subloan CII Dividends NFP June m (47) (15) (598) (728) (22) (16) (12) NFP breakdown Euro millions (67) (22) (49) (27) (4) (693) (598) Cash SPVs Cash PF Derivatives FKR Corp. Loan Subloan CIP MLT Loans & Local Comm. Other net debts NFP 20

21 Group Overview Strategy Financial Highlights Conclusions

22 Outlook: 2014 Target confirmed Regulation changes - CIP 6 - and energy price trend should continue in the second part of the year Well on track with the diversification toward a new business model more balanced in favour of programmable sources and services Euro millions 145 * PRICES (ITA & SPAIN) NET VOLUMES PERIMETER (NUTBERRY & WEST BROWNCASTLE) CIP6 EXPIRING (TREZZO) DEVEX E * 157 mln without IFRS 11 application 22

23 Why Falck Renewables? Industry Outlook Investment case Balanced presence across markets Proven ability to deliver projects Experienced Management Strong profitability and robust cash flow New partner CII Portfolio rebalancing Self sustainable business Financially stronger after JV with CII Undervaluation of the existing assets not included in the transaction 23

24 Contacts IR Contacts FKR on line IR Manager Giorgio Botta Milan Via Alberto Falck Sesto San Giovanni Milano IR Consultant Next events November 12 th, 2014 Board of Directors to approve Q results Vincenza Colucci CDR Communication Srl Tel

25 Disclaimer This document has been prepared by Falck Renewables S.p.A. (the "Company") for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the Group ), as well as any of their directors, officers, employees, advisers or agents (the Group Representatives ) accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Company and/or Group, whether written, oral or in visual or electronic form, transmitted or made available. This document may contain forward-looking statements about the Company and/or the Group based on Company s current views, beliefs, expectations, opinions, as well as based on current plans, estimates, assumptions, projections and projects of the Company and/or Group. These forward-looking statements are subject to significant risks, uncertainties and other factor (many of which are beyond the Company and/or the Group s control) which might cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on the forward-looking statements in this document. The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements or to conform these statements to its actual results. Under no circumstances shall the Company, the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward-looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe the shares of the Company or Group and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations. 25