Falck Renewables. C o m p a ny P re s e ntation. 2 8 M a r c h

Transcription

1 Falck Renewables C o m p a ny P re s e ntation 2 8 M a r c h

2 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 forwardlooking 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 forwardlooking 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. 2

3 Agenda Group Overview and 2021 Roadmap Strategic Update 4 FY 2017 Highlights 22 Outlook and Conclusions 29 Appendix 32 3

4 A Renewables Pure Play Generating Sustainable Value Evolving Global Multi-Client Renewable Services Platform Established Asset Management and Technical Advisory Services business Expansion plan in Energy Management and Energy Efficiency Driven by Digital Technologies Clients and Community-Driven Sustainable Approach Our approach maximizes the creation of business and societal value while preserving the environment where we live and operate Financial Strength and Flexibility Strong balance sheet Sustainable financial position Capital efficiency Strong Wind and Solar Developer/ Operator in Attractive Markets Quality solar and wind assets in markets with strong fundamentals Growing pipeline and diversified asset base Led by experienced management team In-house operational expertise FALCK RENEWABLES, SUSTAINABILITY AT THE CORE Balanced, Scalable Growth Reaching scale of core operations in: Asset development Investing in asset management and technical advisory services Increased access to financial partners 4

5 Falck Renewables current Platform Asset Owned and consolidated Services Business 1.7 GW 33 plants 950 MW 413MW 292MW 16MW 46MW 1800 MW Assets managed for other owners Asset Management (Commercial, Technical), 1.8 GW < 92MW Technical Advisory (provide services for 11.5 GW of assets) 49MW Transaction Support Services (provided services for 4.3 GW of assets) 42MW Offices in Spain (HQ), Italy, Japan, Mexico, France, UK, Bulgaria, Chile, UAE 796MW 108MW 46MW 10 years of experience in more than 25 countries, over 100 highly qualified professionals 5 * Includes minority stake in La Muela (26%) wind farm and Frullo Energia Ambiente (49%) for a total amount of 37MW ** Includes Cabezo (23,2 MW) and France projects (42 MW)

6 2017 Entered Target Markets with Strong Fundamentals Acquired largest Falck PV project Acquired majority stake in two wind projects in Norway plus pipeline. Acquired two wind power projects in Sweden ~ 70 MW ~ 115 MW Projects Okla and Hennoy Projects Aliden and Brattmyrliden Added ~185 MW of capacity in target region 92 MW dc Installed Capacity of 92MW dc* Expected Production of ~150 GWh/year PPA with Duke Energy Operating since October 2017 Wind hours expected: ~3,500 Commercial Operations Date Expected: Under development: 125 MW Wind hours expected: ~3,500 Commercial Operations Date Expected: *Direct current in Watt-peak Returns expected in line with communicated targets

7 Roadmap 2021 Strategic Priorities Solar and Wind Asset and Pipeline Growth Onshore wind and solar remain core Drive growth in installed capacity of owned assets and evolve asset base Expand and diversify pipeline Deconsolidation of non core Waste Treatment business (Esposito) Investing in Services Platform Increase size and scope of services business Grow Asset Management and Tech Services offerings to asset owners Diversify service offerings and client base Expand into Energy Management and Energy Efficiency activities Invest on digital platforms Profitability and Financial Flexibility Increase efficiencies and improve profitability Optimize value from existing assets Expand access to debt and minority financial partners 7 Scalable, profitable clean energy platform

8 2021 Roadmap: Growth plan Asset Owned 1,375 MW vs. 950 MW end of 2017 assets owned +12% CAGR in EBITDA ( ) +36% growth in wind assets ( ) 248 MW Solar installed capacity ( ) 8 Vector Cuatro only presence Falck Renewables current presence Falck Renewables new markets Growth in mature markets, expansion of Vector Cuatro s services dedicated to assets owners VC as an antenna to monitor emerging market opportunities Services ~5,000 MW 1,800 MW end of 2017 assets under management +57% CAGR in EBITDA ( ) Engineering focus on wind and higher value added services 5.8% contribution to ordinary group Net Income (up from 3% in 2017)

9 Renewables Asset Growth: Global Market Update World electrical capacity 1.4x in one year! Other ~40 Coal ~330 Renewables capacity ~6,100 ~6,400 ~6, GW vs Outlook 2016 ~9,700 ~3,300 Solar ~1,100 Solar* ~780 Gas & Oil ~550 Wind* ~770 Nuclear ~60 26% 31% 32% 45% E 2030E Renewables capacity additions are expected to grow by ~2,400GW, reaching ~4,400 GW globally in 2030 Solar PV is set to account for the largest share of Renewables energy capacity additions, reaching ~1,100 GW in 2030 In the USA, Solar PV is expected to reach ~165 GW (6x the 2015 installed capacity) in 2030 Wind ~760 «Slight Contraction" Bioenergy ~90 Hydro ~400 New Installations USA EUROPE Wind 78 GW 138 GW Solar 138 GW 69 GW 9 Source: World Energy Outlook 2017 New Policies Scenario International Energy Agency * From World Energy Outlook 2016 New Policies Scenario International Energy Agency **Others include geothermal CSP and marine energy Including Hydro, Bioenergy and Others

10 Industrial Plan Updated to Reflect Market Evolution 2016: Falck Renewables Relaunched its Development Strategy Portfolio combination: balanced mix of Greenfield, Readyto-Build and operational assets Geographical presence: differentiated; maintaining low country risk Outlined plans to establish assets in New Markets New Additions Evolving Towards a More Balanced Mix (MW) Cumulative % Solar 20% 553 Solar 42% : Consolidation and Fine Tuning Additional installed capacity: +15% More balanced geographical diversification Larger presence in solar Further development with ambition to reach larger pipeline coverage 2018/2019 Target IRR = 150 bps + country WACC (maintained) Wind 80% Wind 58% 10 North Europe: France, UK, Netherlands Nordics: Sweden, Norway North America South Europe: Italy, Spain

11 Roadmap 2021: More Ambitious and Balanced Asset Growth North Europe France, UK, Netherlands Nordics Norway, Sweden North America Installed Capacity (MW) by Region ( ) +60% Installed Capacity (MW) by Technology ( ) Wind Solar Other South Europe Italy, Spain 1,303 1, ,002 1,062 Energy Output (TWh) 11 Old Plan New Plan * Includes Wte and Biomass plants

12 2021 Roadmap: New Capacity Pipeline Targets Pipeline Targets (MW) Almost all additions ** * ** * To be covered (Ready to Build/Merger & Acquisition) Greenfiled/JDA Secured % 42% 313 8% 49% 43% Pipeline Coverage In Business Plan (MW) of which 32% covered by existing company pipeline (projects under development identified and under control adjusted by probability of success) 40% 100% 60% of which 50% covered by existing projects under development adjusted by probability of success At end of 2017 Target end of * Projects under development identified and under control adjusted by probability of success ** Projects under development identified and under control

13 Roadmap 2021: Energy Transition and New Market Design The penetration of renewables sources which are getting cheaper and more efficient and a more active consumer are changing the shape of the electricity market structure Cost structure Generation structure Planning and Operation Control and dispatch Role of demand-side Role of grids Price of energy Current Mainly marginal Mainly centralised Flex supply to match demand From centre Passive Neutral conduit KWh Mainly capital Decentralised Flex demand to match supply Throughout system (cf. internet) Interactive Smart player? Future These new issues are all system issues, which will determine a re-design of the market 13 Source: Oxford Energy Institute Keay and Robinson 2017

14 Roadmap 2021 Ser vices Market: 3 Key Drivers and Market Opportunities 1 - Growth of RES capacity 2 - Flexible power systems 3 - Prosumers Expected growth in RES 2030 Example of power production 2030 Example of energy Monitoring Tool Efficient asset management Flex Demand to match supply Consumption Behaviours changing Continued market overall growth Good margins in spite of competition and price pressure IoT, advanced analytics services increase added value Market value [M ] Key parameters Demand response and storage become critical system resources Promising and evolving market but still unclear economics Regulation plays an important role Digitalisation enables consumption awareness/action Consumers show time based and price based sensitive responses Performance based service contracts and CPPA** Public Administration active actor Market value [M ] Key parameters Market value [M ] Key parameters 1,140 Growth Profitability Concentration Regulat. Risk 7% 12% 25% medium 776 Growth Profitability Concentration Regulat. Risk 8% n.a. n.a. high 15,765 Growth Profitability Concentration Regulat. Risk 6% 7% 20% medium 14 * Source: Accenture. Market coverage IT, SP, USA, UK and DE (for EM only). Profitability: Net Operating Income ** CPPA: Corporate Power Purchase Agreement.

15 Roadmap 2021: Strategy for ser vices SERVICE BUSINESS % Revenues % RENEWABLE ENERGY ASSET MANAGEMENT and ADVISORY TECH SERVICES GENERATION CLIENTS ENERGY MARKETS FLEXIBILITY Gain Market Share DIGITAL PLATFORM SMART METERING/ENERGY INTERNET OF THINGS RESIDENTIAL CUSTOMERS COMM. & INDUSTRIAL PUBLIC ADMINISTRATION FALCK RENEWABLES Current Status 15% ENERGY MANAGEMENT CLIENTS Generate value from energy flexibility CLIENTS ACTIVE DISPATCHING UNIT 20% ENERGY EFFICIENCY Extract value from energy consumption and smart demand CLIENTS BUILDING TEAM AND INITIATIVES 15

16 Roadmap 2021: Ser vices Business Targets Target 2021 DIGITAL PLATFORM RES ASSET MANAGEMENT and TECH SERVICES ENERGY MANAGEMENT SERVICES ENERGY EFFICIENCY 3 key goals for Falck Renewables IoT platform MW under management Technical advisory and engineering Transaction services Increase market share and technical competences Dispatching of own plants and third parties Software platform Advanced Demand Side Management solutions Storage and plants ancillary services New cogeneration projects Public Administration (lighting) projects Energy Service Company offering Efficient processes Partners collaboration Advanced analytics on energy, operation and maintenance 5.0 GW 2.8x 2017 Revenues 1.5x 2017 Revenues Further M&A 1.5 TWh Integrated with AM Also through M&A Pilots and through M&A 2 MW 5 municipalities Also through M&A 16

17 Developing In House New IT Digital Platform MULTISPEED ARCHITECTURE CAPEX BENEFITS Engineers (Internal or contractor) Project managers Site supervisors / Field worker HQ / Branch Office Manager Remote Intelligence Command Center Clients 1.0M Services & Collaboration Cost Efficiency Service Composition BIG DATA ANALYTICS & IOT 1.8M Data Centric Organisation CORE SYSTEMS Engineering Maintenance Operations Commercial Solid backbone Customer Centricity 17

18 Roadmap 2021: Ser vices: Key financials Targets Capex: 33M Revenues 2021 REVENUES [ M] External Growth 2021 OLD 2021 NEW Organic 28M Turnover 44M Turnover EBITDA [ M] 1 4, M EBITDA 8M EBITDA ,5 18

19 Financial Goals EBITDA ( M) CAGR +12% 1.4x Debt to Equity Ratio 1.5x 1.5x NFP to EBITDA Ratio NFP ( M) 7.0x 7.0x 7.0x* Falck Renewables Debt Covenant 4.7x 4.6x 3.9x Falck Renewables NFP to EBITDA Ratio Sound ratios with room for further expansion 19 * Assumed equal to the existing covenant

20 Based on pay-out ratio 2021 Road map Maintaining Financial Flexibility and Delivering Value Improvement of the financial stability Clear Dividend Policy Dividend Per Share (in c )* Operational targets Current yield ~2.50% ** 4.7x Old 4.4x New Average NFP/EBITDA Maintain a sustainable ratio throughout the plan; well within the corporate financing covenant Roadmap enables sustainable investments in short and long-term growth while supporting progressive annual dividend * Years in Y-axis represent timing of dividend payment e.g., 2017 represents FY2016 dividend payment ** as of 22 March 2018

21 Falck Renewables, Sustainability at the Core We believe in an approach that maximizes the creation of business and societal value, while preserving the environment where we live and operate. We welcome the PARTICIPATION OF LOCAL POPULATION IN OUR BUSINESS, also through ownership schemes We promote LOCAL WORKFORCE and LOCAL SUPPLY CHAIN in our activities We BACK COMMUNITY PROJECTS spanning social, cultural, environmental to educational We encourage communities TO SHARE PROJECTS BEST PRACTICE to maximize benefits for others We SUPPORT LOCAL INFRASTRUCTURAL DEVELOPMENT, where possible, when it benefits communities We SHARE OUR KNOWLEDGE on energy sustainability to spread the word about its benefits to locals We ensure our operations MINIMIZE their IMPACT ON THE ENVIRONMENT it is not only about WHAT we do, but HOW we do it, and the VALUES that we live by 21

22 FY2017 HIGHLIGHTS

23 2017 Highlights Strong performance across the board Strong assets performance in 2017 vs : Better production compared to 2016 (+9.5%)in spite of lower than expected wind conditions in Italy. Better prices in Italy (+13%), UK (+16%) and Spain (+68%) Increase in capacity (+128MW) and geographical diversification (operating plant in the US) Better operational performance (O&M and G&A) Services performance aligned with expectations: Reached over 1.8 GW of assets under management by Vector Cuatro Higher revenues from technical and transaction services vs 2016 Energy management In-house dispatching for WtE and certain solar assets. Reduced impact of unbalancing costs in Italy 23 Better Group financial results vs Higher EBITDA in 2017 vs (+9.6%) and above expectations and consensus Reduced depreciations by increased useful life. EBIT at 75.4M (+26.4% vs. 2016) Net Earnings reaches 32.1M vs. 1.9M in 2016 thanks to better EBITDA, lower financial charges and taxes Group Net Earnings at 20.35M vs in 2016, best result ever NFP at 584M vs. 562M in 2016 significantly better than expectations reaching multiple 3.9x on EBITDA Stabilized impact of GBP exchange ratio (-6.5%) Proposed Dividend per share 5.3 c vs. 4.9 c in 2016 (+8.2%)

24 FY 2017 full year financials ( M) FY 2017 FY 2016 YoY Change EBITDA 149,4 136,3 9,6% EBIT 75,4 59,6 26,4% NET EARNINGS 32,1 1,9 n.m. GROUP NET EARNINGS 20,35 (3,9) n.m. NFP (583,7) (562,0) (3,9%) NFP/EBITDA 3,9x 4,1x 5,2% Proposed DPS 5.3 c 4.9 c 8.2% INSTALLED CAPACITY 950 MW 822 MW 128 MW Best ever recorded Net Earnings and Group Net Earnings results Strong year end financial position (3.9x NFP/EBITDA), 163 mln in Cash and 150 mln undrawn Corporate Credit Line ENERGY PRODUCTION GWh GWh 177 GWh 24

25 2017 Wind Portfolio Performance UK & Italy: Evolution of Production** FY2017 vs. FY2016: Load Factor* by Country TOTAL GROUP (3.7%) TOTAL GROUP (EXCLUDES REIMBURSED CURTAILMENT) (11.8)% (11.2)% 2.7% (0.6%) (9.6)% 2.7% 1.7% (5.8)% (2.3%) 33.1% 29.0% 19.7% 20.0% 22.4% 25.8% 25.3% 24.4% 27.8% 27.3% (10.8%) (8.6%) (6.4%) (7.9%) (20.4%) (23.8%) (14.5%) Q1 H1 Q3 12M 25 ** variation % vs internal Index of production * Based on effective operating hours

26 «GROUP» PRICE WHOLESALE PRICE* Market Average Price FY2016 FY2017 D % Eur/MWh % Eur/MWh % /MWh Average: 54 /MWh GBP/MWh Average 43 /MWh 6% 11% 45% (7%) 13% % 4 7% 3% 41 27% 13% Roc Recycle 26 Cv2018: 99 /MWh ( -8 /MWh vs. 2017) * Source: GME, Heren

27 FY 2017 Cash Flow ( M) CASH 136 CASH 163 PF (735) SPV CASH 121 SPV CASH 99 CII HOLDCO 10 PF (792) CII HOLDCO (7) FV DER. (59) OTHER (18) FV DER. (46) OTHER (17) 27

28 FY 2017 Debt Breakdown Gross Debt Nature Without Derivatives Gross Debt by Currency Without Derivatives Gross Debt Without Derivatives Hedged 48% % % 30% 812M 812M 812M Financing with recourse Project financing without recourse Other financings without recourse GBP EUR USD Hedged Un-hedged 28 Average interest rate (including interest rate swap) of 3.65% vs. 4.30% in 2016

29 OUTLOOK AND CONCLUSIONS

30 2018 Guidance ( M) 148» Full operations at 92MW dc Solar Pv in the US EBITDA» Full operations at Auchrobert wind farm 36MW Net Earnings NFP» Italy: Green /Mwh» Maintenance works at Rende biomass plant» Exchange vs. vs. USD Dividend proposal at 2019 Shareholders Meeting: 5.8 c 30 These forward-looking statements have been prepared in accordance with IFRS GAAP currently in force and the related interpretations as set out in the documents issued to date by IFRIC and SIC, with the exclusion of any new standard which is effective for annual reporting periods beginning on or after January 1 st 2018

31 Conclusions» Strong 2017 performance with the highest Group Net Earnings since the company incorporation and improvements in all operational KPIs» Construction activities ongoing in Sweden, Norway and in the US» Business Development working on new investment opportunities and increasing the existing pipeline according to the industrial plan guidelines» Increase of Energy Management activities through in-house dispatching of Italian wind assets and evaluation of external growth opportunities for Asset Management, Energy Efficiency and Energy Management» New in-house investments expected in processes digitalization, production monitoring and predictive maintenance» Focus on financial sustainability and optimization of cost of funding of existing financings. 31

32 32 Appendix

33 feb-17 mar-17 apr-17 mag-17 giu-17 lug-17 ago-17 set-17 ott-17 nov-17 dic-17 gen-18 feb-18 2,8% 4,4% 3,5% % of market % CS cap traded 5,3% 6,8% 7,2% 7,2% 6,0% 7,9% 9,9% 9,9% 0,98 1,08 1,15 1,18 1,25 1,23 17,2% 16,6% 1,38 1,50 1,46 1,47 Average Prezzo medio share ponderato price 1,81 1,94 2,13 Performance and Governance New CEO since March 2016, new management team in place New Roadmap presented Nov 2016, updated Dec 2017 Current price* /share, ~ 625 M Mkt cap, > 1.2 B EV Best performing stock in 2017 in Europe among peers, +131% (3x share price value vs. Nov 2016) Shareholders Base Institutional Investors (21.4% of floating) CS% PMP 30% 2,30 25% 1,80 Board Composition 20% 1,30 15% 10% 0,80 5% 0% 0,30-0,20 Executive Director Non Executive Director Independent Dir. according to T.U.F. and Corporate Governance Code The Board of Directors consists of twelve members. Six of them are Independent Directors (50%); one was appointed Lead Independent Director. 33 * As of 22 March 2018 The new Board of Directors as approved at The Shareholders Meeting on 27 April 2017 reflects the group s international presence and includes members with relevant experience.

34 FY 2017 Financial Highlights

35 FY 2017 Financial Highlights details ( M) 1 FY2017 FY2016 Depreciation, Amortization and Write-Off Depreciation (59.4) (64.9) Provision (14.2) (12.0) Write off / Revaluation (0.5) FY 2017 FY 2016 Financial Charges (35.3) (41.4) Dispute resolution with Agenzia delle Entrate (2.5) Other (0.5) Financial charges (35.3) (38.5) 3 FY 2017 FY 2016 Taxes (10.4) (17.5) Dispute resolution with Agenzia delle Entrate (12.6) Current taxes on retained losses previously not recognized Deferred taxes assets increased useful life 1.5 Change in Tax rate Taxes on Group Net Earnings (14.8) (11.2) 35

36 Revenues by Country* Revenues by Technology FY 2017 Revenues ( M) Trend vs Wind 39.0 WtE/Bio Solar Service Other/Adjustments/Non recurring ( M) 39.0 Italy UK France Spain Other 36 * By origination

37 FY 2017 EBITDA Bridge ( M) UK WIND PLANTS 17.1 (3.7) (1.9) (4.7) WIND UK WIND ITA WTE/TREATMENT RENDE BIOMASS WIND UK WIND ITA RENDE BIOMASS GRID IMU / BUSINESS RATES OUTAGES REPAIRS / OTHER (4.6) (0.3) (1.8) 2016: 0,8195 L 488 MM 2017: 0,8767 INSURANCE CLAIM PERIMETER VOLUMES PRICES OPEX (EXCLUDING O&M) DEVEX EXCHANGE RATE SERVICES G&A/OTHER FY 2016 FY

38 Installed Capacity and Production by Plants in 2017 Plants MW Energy produced FY 2017 (GWh) Cefn Croes (Wales ) Boyndie (Scotland ) Earlsburn (Scotland) Ben Aketil (Scotland) Millennium (Scotland) Kilbraur (Scotland) WIND SOLAR WTE/BIO Nutberry (Scotland) West Browncastle (Scotland) Spaldington (England) Kingsburn (Scotland) Assel Valley (Scotland) Auchrobert (Scotland) San Sostene (Italy) Minervino Murge (Italy) Buddusò Alà dei Sardi (Italy)* Petralia Sottana (Italy) Ty Ru (France) Fouy (France) Cretes (France) Esquennois (France) Cabezo San Roque (Spain) Rende (Italy) Sicily (Italy) Mesagne (Italy) North Carolina (USA) WTE Trezzo (Italy) BIO Rende (Italy) MINORITIES 38 La Muela (Wind - Spain) 26.0 Frullo Energia Ambiente (WtE - Italy) 11.0 TOTAL ,043 * The installed capacity is 159 MW, production limit at 138 MW

39 Young Asset Base December 2017 Technology MW WIND UK 413 WIND IT 292 Project's residual Life 15Y6m Residual Debt's Life 10y3m Residual Incentive Life 12y3m Project's residual Life 14y6m Residual Debt's Life 8Y3m Residual Incentive Life 8y 5y3m 3y3m 6y3m 6y6m WIND SP 23 Project's residual Life 6y Residual Debt's Life 1y Residual Incentive Life 6y 5y WIND FR 42 Project's residual Life 20y3m Residual Debt's Life 10y3m Residual Incentive Life 7y3m 10y 13y SOLAR US 92 Project's residual Life 34y9m Residual Debt's Life 15y3m Residual Incentive * Life 10y 19y6m 24y9m SOLAR IT 16 Project's residual Life 15y3m Residual Debt's Life 8y6m Residual Incentive Life 13y 6y9m 2y3m WTE 20 Project's residual Life 5y9m Residual Debt's Life 5y9m Residual Incentive Life 5y9m BIOMASS IT 14 TOTAL 913 Project's residual Life 13y Residual Debt's Life 2y Residual Incentive Life 8y Project's residual Life 17y Residual Debt's Life 9y9m Residual Incentive Life 10y 11y 5y 7y3m 7y Residual Project Life Residual Debt Life Project cash flow after debt repayment Wholesale price Residual incentive life 39 * PPA secured

40 Scenario Assumptions Our solid and reliable path forward is informed by revised scenario assumptions and our strong year one performance. Lower Energy Prices in Europe Nominal Italy PUN Old Plan /MWh Italy PUN New Plan /MWh Italy Green Certificate Old Plan /MWh Italy Green Certificate New Plan /MWh Uk baseload Old Plan /MWh UK baseload New Plan /MWh Higher Interest Rates Euribor & Libor Euribor Old Plan 0.00% 0.00% 0.00% 0.22% Euribor New Plan 0.00% 0.25% 0.50% 1.00% UK Libor Old Plan 0.50% 0.50% 0.60% 0.80% UK Libor New Plan 1.00% 1.20% 1.30% 1.40% Lower wind Capex/MW M/MW 2018 Wind Old Plan 1.55 Wind New Plan 1.31 Solar PV Old Plan 1.04 Solar PV New Plan 1.07 More Solar in Mix of Capacity Additions 40 Larger Funding from third parties (Tax Equity in the U.S.)