Company Results and Business Plan. Milan, 22 nd May 2013

Transcription

1 Company Results and Business Plan Milan, 22 nd May 2013

2 2012 Results Q Results Business Plan Appendix 2

3 2012 HIGHLIGHTS Euro millions Dec 12 vs Dec 11 % Dec 11 INSTALLED CAPACITY - MW % 684 ENERGY PRODUCTION - GWh 1, % 1,560 REVENUES - m % EBITDA - m % NET EARNINGS - m (Excluding One-Offs) % 36.8 NET EARNINGS - m (85.5) %

4 2012 FINANCIAL STATEMENTS millions of euro Dec 2012 One-Off December December Op. activities Items Revenues Net Operating costs (116.7) - (116.7) (106.9) Ebitda % on Revenues 57.5% % 57.0% Depreciation - Amortization - Write Off (67.8) (111.6) (179.4) (62.5) Operating result 90.2 (111.6) (21.4) 79.2 % on Revenues 32.8% - (7.8%) 31.9% Financial income and charges (46.8) (0.3) (47.1) (42.7) Equity investments Earnings Before Taxes 44.0 (111.9) (67.9) 37.3 Taxes (17.4) (0.2) (17.6) (17.4) Net Earnings 26.6 (112.1) (85.5) 19.8 millions of euro Dec 2012 One-Off Op. Activities Items Dec 12 Dec 2011 Net Invested Capital 1,298.6 (112.1) 1, ,277.9 Equity (112.1) Net Financial Position (842.8) - (842.8) (826.1) of which: Proj. Fin. and MLT no recourse (775.4) - (775.4) (749.7) NFP excluding Derivatives Instruments (757.1) - (757.1) (765.2) 4

5 2012 NET RESULT : IMPACT OF ONE-OFF ITEMS December millions of euro 2012 Net result (85,5) Sicily Projects - impact on Ebit (104,1) Sicily Projects - impact on financial charges (0,3) Sicily Projects - impact on equity investments - Sicily Projects - taxes (1,6) Subtotal (106,0) Normalized Net Result without Sicily impact 20,6 Impairment on operating assets - impact on Ebit (7,5) Impairment on operating assets - taxes 1,4 Total One-Offs (112,1) Normalized Net Result 26,6 Normalized EBIT 90,2 5

6 2012: BREAKDOWN OF SICILY IMPACT ON P&L Euro millions ~ 104 ~ 29 ~ 3 ~ 1 ~ 0,3 ~ 1,6 ~ 106 ~ 71 ~ 15m written off in June Asset Goodwill Provisions Others EBIT Fin. Charges Taxes NET INCOME 6

7 SICILY PROJECTS RECAP Claim against Sicilian Region: Costs incurred of ~ 105m + Loss of Profit of ~ 163m claimed by Tifeo, Platani and Pea (23,27%) for a total amount of ~ 268m. Compensation claimed by Regional Administration: request of compensation of ~ 64m due to the breach of Conventions by the project companies. Claim before the Palermo Regional Administrative Court (Tar Palermo): on 10 May 2013 the Court denied the claim submitted by the Falck Renewables Group companies challenging decree no. 548/2010 issued by the Regional Councilperson for Energy and Public Utilities and the President of the Region of Sicily. The companies intend to challenge the aforementioned Court decisions before the Administrative Court of Justice for the Region of Sicily (Consiglio di Giustizia Amministrativa per la Regione Sicilia). Two appeals are pending before the Court of Cassation initiated by Falck Renewables Group companies in order to definitely state, inter alia, the jurisdiction of the ordinary Court (i.e. Court of Milan). With regard to the investigation conducted by the Public Prosecutor of Palermo, related to the 2002 tenders for the creation of integrated waste management systems in Sicily, some key persons amongst the management of the Falck Group were summoned for summary information by the Guardia di Finanza of Palermo (Tax Police). Considering the increase of the complexity and the uncertainty related to the litigations against the Sicilian Region it is not possible to assess either the outcome of the litigations or the duration. 7

8 EBITDA 2012 VS 2011: KEY FACTORS Euro millions Roc Recycle and market price Granarolo 29.3 (5.3) 2.8 (1.0) (0.6) (9.1) Geopower Ty Ru Petralia La Muela 2011 Loss CIP 6 Incentives New Plants Price Exch differences Development expenses Other

9 FINANCIAL HIGHLIGHTS: CASH FLOW Euro millions NFP December 2011 CAPEX NFP La Muela Exch difference on assets Derivatives Fair Value Variation Dividends Cash Flow from Operations NFP December 2012 (826.1) (58.3) (10.5) (8.9) (24.0) (8.8) 93.8 (842.8) 9

10 FINANCIAL HIGHLIGHTS: NET FINANCIAL POSITION Euro millions NFP BREAKDOWN NFP : IMPACT OF DERIVATIVES (826) (843) (86) (94) (22) (5) (765) (757) (775) (843) NFP excluding derivatives 74% Derivatives Cash SPVs Cash PF Derivatives FKR Corp. Loan MLT Loans & Local Com. Other net debts NFP (61) (86) December 2011 December 2012 Net Financial Position breakdown by currency for year ended 2012 : 74% Euro and 26% GBP 10

11 CORPORATE LOAN COVENANTS Falck Renewables Spa entered into a loan agreement for 165m with a pool of leading banks on 14 January The loan will mature on 30 June 2015 The contract requires covenants to be met every six months : the covenants comprise the NFP/EBITDA and NFP/Equity. ALL COVENANTS WERE SATISFIED AT 31 DECEMBER 2012 NFP/Equity expected by contract: Actual: 31 December ,54 2,45 30 June ,09 31 December ,98 30 June ,18 31 December ,97 74% 11

12 2012 Results Q Results Business Plan Appendix 12

13 HIGHLIGHTS Mar 13 vs Mar 12 % Mar 12 INSTALLED CAPACITY - MW % 684 ENERGY PRODUCTION - GWh % 528 REVENUES - m % 78.4 EBITDA - m % 51.4 EARNINGS BEFORE TAXES - m %

14 FINANCIAL HIGHLIGHTS millions of euro March 2013 March 2012 Revenues 82,5 78,4 Net Operating costs (30,9) (27,0) Ebitda 51,6 51,4 % on Revenues 62,5% 65,6% Depreciation - Amortization - Write Off (15,6) (14,6) Operating result 36,0 36,8 % on Revenues 43,6% 46,9% Financial income and charges (13,8) (11,6) Equity investments - 1,5 Earnings Before Taxes 22,2 26,7 Geopower Ty Ru Petralia La Muela millions of euro March 2013 Dec 2012 Net Financial Position (825,5) (842,8) of which: Proj. Fin. and MLT no recourse (776,4) (775,4) NFP excluding Derivatives Instruments (742,1) (757,1) 14

15 EVOLUTION OF INSTALLED CAPACITY AND PRODUCTION BY TECHNOLOGY BY COUNTRY MW +5% MW +5% Q1 12 Q1 13 Wind WTE/Biomass Solar Q1 12 Q1 13 Italy UK France Spain GWh % 578 WASTE (KTON) 87 +4% Q1 12 Q1 13 Wind WTE/Biomass Solar Q1 12 Q

16 FINANCIAL HIGHLIGHTS: REVENUES AND EBITDA Euro millions Revenues by Technology 78 m 83 m 3% 2% 28% 24% Revenues by Country 78 m 83 m 3% 4% 1% 3% 35% 24% 69% 74% 62% 69% Q1 12 Q1 13 Wind Wte/Biomasse Solare EBITDA * by Technology 3% 3% 17% 13% Q1 12 Q1 13 ITA UK FRA SPA EBITDA by Country 51 m 52 m 3% 5% 2% 3% 25% 40% 79% 85% 56% 68% Q1 12 Q1 13 Wind Wte/Biomasse Solare Q1 12 Q1 13 ITA UK FRA SPA * Breakdown of EBITDA by technology made on total Ebitda gross of holding impact 16

17 EBITDA Q VS Q1 2012: KEY FACTORS Euro millions 4.0 (1.4) (5.1) (0.3) (0.3) Q Prices Volumes Exch. Rate Perimeter Unbalancing Devex Q

18 FINANCIAL HIGHLIGHTS: CASH FLOW Euro millions NFP DECEMBER 2012 CASH FLOW FROM OPERATIONS EXCHANGE DIFFERENCE ON ASSETS CAPEX DERIVATIVES FAIR VALUE VARIATION NFP MARCH (12) (843) (826)

19 FINANCIAL HIGHLIGHTS: NET FINANCIAL POSITION 1/2 Euro millions NFP BREAKDOWN DERIVATIVES IMPACT ON NFP (843) (826) (83) (67) (22) (11) (776) Cash SPVs Cash PF Derivatives FKR Corp. Loan MLT Loans & Local Comm. Other net debts (826) NFP (757) (742) NFP excluding derivatives Derivatives (86) (83) December 2012 March

20 FINANCIAL HIGHLIGHTS: NET FINANCIAL POSITION 2/2 PLANT UNDER CONSTRUCTION/IN OPERATION PROJECT FINANCE HEDGED 5.3% 24.8% Under Construction Operating Unhedged pf Hedged pf 94.7% 75.2% PROJECT FINANCE/NFP NFP (WITHOUT DERIVATIVES) HEDGED 12,0% 11,9% Other Project Finance Unhedged Hedged 88,0% 88,1% 20

21 2012 Results Q Results Business Plan Appendix 21

22 NEW BUSINESS PLAN.. From a Capital intensive to a self sustainable business Core activities Rebalancing of technologies and markets Asset rotation and integration Integrated Services LESS CAPITAL, MORE VALUE 22

23 NEW BUSINESS PLAN : REASONS TO UPDATE THE STRATEGY ECONOMIC SCENARIO Higher financial costs Decrease of financing ratios (D/E) Decrease of countries GDP (EU) Overcapacity & flat consumption in some countries Regulatory changes in most of EU countries Penalties on non programmable sources (E.g. unbalancing, capture price) Some EU countries reaching Targets PORTFOLIO REVIEW Excessive focus on wind technology High exposure to wind unpredictability Progressive decrease in wind quality of new sites New focus on technologies where profitability is less dependent on incentives Need to take control of industrial activities and widen the portfolio to get scale effects and direct control on plant performances Progressive decrease of debt leverage 23

24 BUSINESS PLAN : MAIN ASSUMPTIONS Existing Business Growth Asset Rotation Completion and operation of authorized wind projects in UK Extensions of operating wind farms in Italy Impacts of unbalancing costs & CEC-CIP6 calculations No further growth expected in Solar sector (Pv) Focus on Programmable sources Hybridization of plants Service Business: Greenfield Development, Performance and Asset M.gt, Dispatching & Unbalancing, Forecast Services Sale of 49% stake in UK qualified operating assets Use of proceeds: partial decrease of NFP and support of the growth 24

25 SALE OF MINORITY STAKE IN UK WIND ASSETS 51% 49% PARTNER Sale of a qualified minority stake (up to 49%) of UK SPVs Financial partnership for codevelopment in projects pipelines Finalization of a short list underway. DIVIDENDS UK SPVs DIVIDENDS Completion: end 2013/early 2014 Proceeds 100% Partial reimbursement of Corporate Credit Loan Focus on growth plan and related activities 25

26 WIND SECTOR BUSINESS PLAN Euro millions SUMMARY 2017: MW BY COUNTRY Sale 49% of UK assets; Co-investment with a new partner after assets disposal; 6% 6% 46% 42% ~ 42% ~ 6% ~ 6% ~ 46% Construction and operation of authorized MW (Nutberry, Spaldington, W. Browncastle and Kingsburn) EBITDA cagr 7% ~ 170 Total installed capacity in 2017 ~ 770MW ~ 130 Cumulated Capex ~ 145m

27 WTE/BIOMASS SECTOR BUSINESS PLAN Euro millions SUMMARY Strong capex plan to balance non programmable sources New technology mix with WTE, solar thermo (Rende site), anaerobic digestion and waste biomass plants 2017: MW BY COUNTRY 37% 63% ~ 63% ~ 37% UK and other countries Total installed capacity in 2017 ~ 81MW ~ 20 EBITDA cagr 19% ~ 40 Cumulated Capex ~ 250m

28 SERVICE SECTOR BUSINESS PLAN GREENFIELD DEVELOPMENT PERFORMANCE & ASSET MGT Leveraging on abundant pipeline to reduce costs of development through internalization of activities. Reduce O&M costs for the captive market. New Performance & Asset concept for plant perfomance improvement. Savings on captive market Sale of exceeding projects to third parties Specific services on Dispatching & Unbalancing as a support of the O&M activities (Portfolio Management). Services to third parties No capex required. Scouting of M&A opportunities to provide services to the market and speed up the process. Target: All countries with relevant opportunities. Some activities already started for O&M internalization of 15 MW of Pv plants by end of October 2013 EBITDA EXPECTED IN 2017 ~ 25m 28

29 BUSINESS PLAN : EBITDA EVOLUTION Euro millions 2012 vs 2013 BY TECHNOLOGY PRICES VOLUMES UNBALANCING EXCH. RATE NEW ACTIVITIES TRANSACTION COSTS LEGAL COSTS ~ 20 ~ 30 ~ 225 ~ ~ 145 ~ 136 ~ WIND WTE/BIO SERVICE

30 BUSINESS PLAN : MW & CAPEX Euro millions CAPEX EVOLUTION ( m) ~ 140 ~ 70 ~ 40 ~ 50 ~ 420 1% 10% 6% 35% ~ % Cumulated Wind Wte/Biomass Anaerobic D. Solar thermo Services INSTALLED CAPACITY EXPECTED TO REACH 865MW IN

31 BUSINESS PLAN : NFP & CASH GENERATION Euro millions NFP UNDER CONTROL OVER THE PERIOD Strong cash flow generation from the operating plants and new projects; ~ 505 ~ 420 Proceeds from sale of a qualified minority of the UK assets (49%) Dividend distribution policy from 2014 Capex Plan over 400m OP. CASH FLOW CAPEX SURPLUS 2017 NFP expected : m without derivatives impact 31

32 2012 Results Business Plan Q Results Appendix 32

33 2012 EVOLUTION OF INSTALLED CAPACITY AND PRODUCTION BY TECHNOLOGY BY COUNTRY MW +5% MW +5% Wind WTE/Biomass Solar Italy UK Spain France GWh 1, % 1, WASTE (KTON) % 314 1,233 1, Wind WTE/Biomass Solar

34 2012 FINANCIAL HIGHLIGHTS: REVENUES +10% TO 275 M Revenues By Technology Revenues By Country Euro millions 249 m 4.0% 39.0% +10% 275 m 4.2% 29.9% 249 m 32.5% 2.0% 2.0% +10% 275 m 27.6% 3.5% 2.5% 57.0% 65.9% 63.5% 66.4% Wind Wte/Biomass Solar EBITDA* By Technology 5.7% 27.5% 5.7% 16.3% Italy UK France Spain EBITDA By Country 142 m 38.0% 2.1% 2.1% +11% 158 m 29.9% 3.9% 2.6% 66.8% 78.0% 57.7% 63.6% Wind Wte/Biomass Solar Italy UK France Spain * Breakdown of EBITDA by technology made on total Ebitda gross of holding impact 34

35 2012 FINANCIAL HIGHLIGHTS : NET FINANCIAL POSITION PLANT UNDER CONSTRUCTION/IN OPERATION 4.0% PROJECT FINANCE HEDGED 96.0% Under Construction Operating Unhedged pf Hedged pf 74.4% 25.6% PROJECT FINANCE/NFP NFP (WITHOUT DERIVATIVES) HEDGED 13.4% 14.6% Other Unhedged 86.6% Project Finance Hedged 85.4% 35

36 CONTACTS IR CONTACTS FKR ON LINE IR Manager Giorgio Botta Milan Via Alberto Falck Sesto San Giovanni Milano IR Consultant Vincenza Colucci CDR Communication Srl Tel

37 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. 37