Welcome to the world of Encavis! Encavis AG, Hamburg, Germany, April 2019

Transcription

1 Welcome to the world of Encavis! Encavis AG, Hamburg, Germany, April 2019

2 2 ENCAVIS: Improving efficiency and cost reduction through Economies of Scale ENergy CApital Encavis Asset Management ENCAVIS AG Encavis Technical Services VISion

3 3 We are a leading European Independent Power Producer from renewable energy sources. Our generation capacity of solar and wind parks sums up to > 1.9 GW and it is growing. We are listed on the German stock exchange and member of the SDAX Index.

4 4 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

5 5 Successfull #1 year of ENCAVIS Key Highlights FY 2018 FY 2018 All KPIs above own expectations Positive weather effects of EUR 6.7m Investments Market entry into the Spanish solar market with a 300 MW PV park (Talayuela) Already 1/3 of the exclusive three-year 1.1 GW pipeline with our strategic partner Solarcentury in realization within one year Strong exclusive pipeline of some 1 GW ahead with strategic partners Solarcentury and Power Capital/ISIF Financing 1 st Green Bond with a volume of EUR 50 million with an ISS-oekom Prime-Label -rating Investment grade issuer rating from Scope Ratings (March 2019)

6 6 Compelling reasons to invest in ENCAVIS... Leading independent European IPP in the renewable sector Generation capacity of > 1.9 GW Market capitalization > 800 EUR million Equity ratio of ~26% (2018/12/31) Valuable portfolio, low-risk substance and low-risk profile 175 PV/69 wind parks with long-term Feed-in-Tariffs/PPAs Attractive non-recourse financing conditions on project level Ready-to-build/turn-key projects and parks in operation Long-term-oriented dividend policy Nominal dividend to increase by 50% until 2021 Dividend offered as scrip dividend Forward-looking sustainable investment in a dynamic market Strategic alliances with top project developers Fast growing PPA-market Shaping the industry: customized solutions at competitive long-term fixed prices with minimal carbon footprint CAGR >34% CAGR >39% CAGR >19% Revenue (EUR mill) Oper. EBITDA (EUR mill) Dividend/Share (EUR cent)

7 7 Strong operational figures 2018 New acquisitions and favourable meteorological conditions Strong Growth in all KPIs KPIs (EUR million) Change (in %) Revenue % Oper. EBITDA % Oper. EBIT % Oper. Cash flow % EPS (in EUR) % Positive weather effects of EUR 6.7m supported the 2018 financial results KPIs (EUR million) 2018 Weather related effects FY 2018 adjusted for weather effects (wa) Revenue Oper. EBITDA Oper. EBIT

8 8 FY 2018 vs FY 2017 adjusted for weather effects (wa) Positive weather effects FY 2018: EUR +6.7m (2017: EUR +4.3m) Operating figures (in EUR million) FY 2017 Weather adjusted FY 2017 (wa) FY 2018 Weather adjusted FY 2018 (wa) Change FY 2017(wa)/ FY 2018 (wa) in % Revenue % Oper. EBITDA % Oper. EBIT %! Strong growth y-o-y (weather adjusted) is based on new acquisitions (e.g. Denmark) and parks connected to the grid (e.g. The Netherlands)

9 9 Guidance 2019 & Show case 2020 Guidance based on the existing/secured portfolio as of March 2019 Operating P & L (in EUR million) FY 2018 Weather adjusted FY 2018 (wa) Guidance 2019 Guidance 2019 vs. FY 2018 (wa) (in %) Revenue >255 +5% EBITDA >190 +5% EBIT >112 +5% Cashflow n.a. >180 +3% EPS 0.31 n.a. > % / Guidance 2019 / FY 2018 (wa) (in %) ~ % / +16% / Guidance 2019 / FY 2018 (wa) (in %) ~ % / +23%! Based on average meteorological conditions and the already secured solar and wind park portfolio as of March 2019

10 10 Strategic Partnerships secure future growth Encavis Finance & operate ISIF Participate & accelerate Solar in Ireland Target markets of the Solarcentury partnership Projects realised Power Capital Develop & build Ireland Strategic Investment Fund (ISIF) ~200 MW Strategic Partnership with the state fund ISIF and Irish project developer Power Capital Pipeline of some 200 MW in Ireland ISIF as co-investor (25%) Strong PPA market, energy intensive industries (e.g. data centres) of multinationals Specified IRR benchmarks Solarcentury ~1.1 GW over 3 years Strategic partnership with UK based project developer Solarcentury Pipeline of 1.1 GW in total with projects in Europe 1/3 of pipeline realized in less than 1 year Taking over Ready-to-build (RTB) PV parks with specified IRR benchmarks Standardization of processes reduces transaction costs

11 11 ENCAVIS #1 among the top 70 European solar PV portfolio owners is paving the way for attractive growth financing in the future New ESG investors First Green Schuldscheindarlehen of EUR 50 million sucessfully placed Bond certified by Climate Bond Standard Executive Board Encavis got a Primel-Label by ISS-oekom Investment grade issuer rating Encavis received Investment Grade issuer rating by Scope Ratings (BBB-) Rating reflects Encavis' risk-averse business model, regional diversification as well as the high proportion of non-recourse financing Strong creditworthiness revealed Positive impact on financing conditions expected

12 12 Our business model Combining smart finance and sustainable investments in the renewable sector

13 13 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

14 14 The four pillars of our business Segments Business activities Acquisition and operation of ground mounted PV parks Acquisition and operation of onshore wind parks Customized portfolios or fund solutions with an all-round service for institutional investors in renewable energies (Encavis Asset Management) Technical operation & maintenance of PV parks by our technical service unit (Encavis Technical Services)! Focus on the low risk part of investments in renewable energies

15 15 Conservative acquisition strategy for markets with FIT (Feed-in-Tariffs / example PV) We acquire ready-to-built, turnkey-projects or existing parks and operate them over their technical and commercial life time >8% We acquire parks that have a fixed and long-term FIT/PPAs (Power Purchase Agreements) >8% >6% >5% We provide customized solutions with dedicated investments on the basis of long-term PPAs >8% >8% >6% >8% >8% Post tax equity IRR Market presence Market entry planned

16 16 ENCAVIS is not a developer (solar/wind) Business model: risk structure of an investment over time (solar/wind) Risk + Project Developer Investor & Operator Completion risk Technical risk Production risk Planning Construction Operation Dismantling Selected risks Project life cycle Dismantling risk

17 17 Asset Management Our expertise for institutional clients The Asset Management (AM) Portfolio amounts to ~450 MW AM Portfolio by region AM Portfolio by technology Focus: Institutional Investors (e.g. insurance companies, pension funds, banks, foundations) SW 2% UK 4% Fi 3% PV 9% Offering: One-stop-shopping approach (deal originating, selecting and managing the acquisition, park operation) Product: Investment funds on the basis of special Luxembourg SICAV-funds/customized portfolios It 2% F 22% GER 68% Wind 91% Financials: Management fees add >5 million EUR of recurring revenues

18 18 Segment Technical Services Operational and Technical Management of our parks Company profile Parks managed by Encavis Technical Services Specialized in technical operation of PV parks since 2008 The team is located in Halle (Saale) and consists of 16 project-experienced engineers, technicians and mechanics Company is accepted by financing banks Broad technology experience: > Crystalline and thin-film modules > Central and string inverters > Different monitoring systems In MW

19 19 Pipeline status three year project pipeline of ~900 MW in total (March 2019) Solarcentury Exclusive PV pipeline in Europe and overseas of some 1.1 GW December 2017 PV park in The Netherlands with Solarcentury 43.9 MW Attractive FIT for 15 years First project out of pipeline with Solarcentury March /3 of 1.1 GW pipeline with Solarcentury realized in < 1 year January 2018 ISIF/Power Capital Exclusive PV pipeline in Ireland of >120 MW October 2018 PV park in Spain 300 MW biggest PV park in the history of Encavis Contracting of 10-year PPA with (tier-1) offtaker Grid connection in Q1 2020

20 20 ENCAVIS is focused on growth to skim Economies of Scale Portfolio is actively managed by international and experienced team (examples) Measures implemented Negotiations with local authorities by Encavis workforce comprising native speakers from all countries where Encavis is active Financial optimization by releasing reserve accounts due to high performance of parks and trust in Encavis Optimization of insurance by auctioning all insurance contracts of Encavis parks in a European wide process. Leading to an improved coverage and reduction of premiums by 40 per cent Optimization of low level operation contracts by clustering parks and auctioning service with local suppliers Digitalization of the business improving technical availability by remote control of the parks, implementing a digital backbone for data flow from the parks via accounting into IFRS statement Ongoing Status Q Q Ongoing/2018

21 21 ENCAVIS is focused on growth to skim Economies of Scope (1) Constant monitoring of parks Integration of all parks into our centralized 24h control room Calculation of yield reports and simulations based on actual irradiation levels Handling of failure reports 365 days a year Management of fast response fault clearance actions Onsite visits Failure analysis and repair works directly on site are conducted by experienced and trained team Our service vehicles hold comprehensive stock of spare parts For major repairs teams of the component manufacturers are requested (for instance defective power sections)

22 22 ENCAVIS is focused on growth to skim Economies of Scope (2) Constant improvement of parks Regular screening of solar parks with GPS navigated drones with thermos cameras to detect hotspots Re-energization of PV parks to stop degradation of modules Investment into winglets to improve rotation of wind blades in our wind farms to improve energy production Maintenance For solar parks either maintenance by own experienced employees or supervision of trained subcontractors For wind parks maintenance usually done by turbine manufacturers regular maintenance service supervised by onsite accompaniment of our own experienced employees

23 The golden end 23

24 24 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

25 End of FIT 25 The golden end of ENCAVIS power plants Illustration of the different cash flows of a solar PV park In EUR 000 Financial Obligation (loan) Closing of debt reserve accounts golden end Assumptions Solar-park connected to the grid in 2010 with FIT for 20 years (t20) Interest Park is bought in Q2 2011, 2012 first full year of operation (t2) EBT CF to Equity Non-recourse project financing will be serviced and paid-off by the park t2 t3 t4 t5 t6 t7 t8 t9 t10 t11 t12 t13 t14 t15 t16 t17 t18 t19 t20 Time (t)! As the loan is paid-off during the FIT-period, parks are very profitable in the golden end

26 Module performance in % 26 golden end - PV parks are still with high efficiencies and lowest marginal costs Performance of PV-modules after 20-years Example*: Cash flow for one solar park Do not incur in total at golden end Do not incur in golden end Observed performance at our parks Adjusted Performance expectation of solar modules Expected future performance of our PV parks according to observations years in service Revenues OPEX Operating Cashflow Loan repayment Interest Tax Cashflow

27 27 New era Growing PPA market Encavis is a European first mover

28 28 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

29 nominal USD/MWh 29 Competitive generation costs of PV & wind projects opens new business opportunities Development of global levelized costs of electricity (USD/MWh) Forecasted generation costs for large-scale PV and 2019 Forward Prices 1 (EUR/MWh) Merchant PPA opportunity ! H Solar-PV H Onshore wind H H H 0 Spain Italy France Germany UK 2018 expected generations costs for PV 2019 Electricity Forward Price In Southern-European markets the generation costs of renewables are already below prices of 2019 Electricity Forwards. This boosts PPA-Markets in countries such as Spain and Italy. Source: BNEF, Fraunhofer ISE, Fraunhofer ISE Energy Charts, Goldman Sachs, 1. 1Q 2018

30 Strong growing PPA-markets ENCAVIS is a European first mover in solar Annual capacity additions through PPAs in EMEA (MW) 1 PV Wind Three pillars of the Encavis PPA Strategy Encavis has secured preferred access to dedicated IP for PPA related risks by investing in market leading competence platform Founding investor in a newly created fund, targeting to satisfy the demand of leading global corporates for green energy through customized Wind- and PV-projects and attractive PPAs Leveraging our knowledge and network as experienced investor with various potential offtakers Source: IEA, BNEF; 1: ; signing date estimated by Bloomberg

31 31 Market entry in Spanish PPA market with 300 MW PV park Talayuela in realization Talayuela Highlights: Generation capacity: 300 MW Total investment volume: EUR ~225 Mio. > Equity/project debt finance level: 50:50 > Full loan repayment within PPA runtime Co-investor: Solarcentury with ~20% PPA (Power Purchase Agreement): > Long-term contract of 10 yrs > Fixed price Revenues 1 st year of full operation: ~EUR 25 Mio. Post-tax IRR >8% Update: Expected grid connection postponed from Q1/2020 to Q3/2020 due to delays in regulatory approvals Therefore, PPA signing postponed accordingly No effect on post-tax IRR for Encavis expected due to contractual settings with partner Solarcentury

32 The future is bright for renewables 32

33 33 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

34 34 Worldwide growth in generating capacity of renewables by technology Capacity growth in GW % 68 % % % Percentage of PV/Wind of total Other Hydropower Solar Wind Source: International Energy Agency 2017

35 35 Entering the Century of Renewable Power Generation Gross capacity additions by technology group Global utility PV and onshore wind capacity 100% 90% In GW % 70% 60% 50% 40% 30% 20% 10% CAGR +8% % Renewables Nuclear Fossil Fuels Large-scale PV Onshore Wind Share in annual capacity additions

36 36 Demand for power from renewables from two strong players: public & private sector Public Sector: Goal to limit global warming o COP 21 Paris: 196 countries united to limit global warming below 2 C o o o Europe targets China: largest installed renewables fleets Denuclearization in Germany and Japan o Creation of low-carb economies Demand via FIT-schemes and competitive auctions Private sector: Sustainability goals and long-term supply security o o o Private companies create global initiatives in order to take action on climate change. Multinational companies such as Google, Facebook and Microsoft go ahead with ambitious targets 100% renewable targets help to create a positive brand awareness o Furthermore, direct Power Purchase Agreements between companies and power producers from renewable energy resources offer long-term supply at fixed rates Demand via PPAs and purchase of green certificates

37 37 High-energy consuming data centres of multinationals Electricity consumption of Major Tech-Companies MWh Microsoft Facebook Trend-line Google Apple Consumption driven by data centres U.S. data centre electricity consumption in 2014: 70 billion kilowatt-hours (CAGR 4% until 2020) Global data centre market expected to grow further to USD 23 billion by 2019 (CAGR +9%) 96% of Facebook s electricity consumption is related to its data centres In 2016 Google planned the construction of 12 new cloud data centres Source: BNEF; Sustainability Reports of Apple Inc., Facebook I0nc., Google Inc. and Microsoft Corporation

38 38 Steadily growing volume of globally signed corporate PPAs Global corporate PPA volumes PPA capacity by offtaker type Annual volume in GW Annual volume in GW AMER EMEA APAC Technology Government & University Manufacturing Consumer Staples Materials Others

39 39 Major PPA-players and general market overview Top offtakers by capacity and source Recent market developments Google Inc Amazon Microsoft Corp North American market with pioneering role US companies search partners for PPAs in Europe ENCAVIS registers increasing demand for PPAs also in Europe (Nordics, Spain, Italy, Ireland) Apple Inc Norsk Hydro ASA Major PPA deal in Europe in 2017: Norsk Hydro signed PPA until 2039 for 650 MW wind park in Sweden Facebook ACT Government Solar-PV Wind PPAs are contracted for time periods from 6 20 years

40 40 Battery storage The energy system of the future

41 41 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

42 42 Increasing share of renewables in power sector creates new challenges Electricity demand and historic supply mix Conceptual supply mix in the future MW Peak Load Intermediate Load MW Battery discharging Battery charging Solar-PV Hydro Natural Gas Baseload Wind Biomass Hour of Day Supply based on coal, nuclear and gas Large, centralized power plants National markets are not interconnected Hour of Day Supply based on Renewables and flexible gas power plants Electricity storage with increasing importance Decentralized power generation with prosumers

43 Required Capacity 43 New business cases for electricity storage Application Price-arbitrage for electricity trading > Time of sale of electricity is independent of the time of its generation Possible battery technologies Congestion management > Optimising utilization of available infrastructure (generation and transmission) Redox Flow Peak Shaving > Reduce costly peak-loads of large consumers Voltage stability (SDL*) > Stabilization of network operations Lithiumion * System services Supply of control energy (SDL*) > Participation in the control energy market, for which RES power plants are not qualified

44 44 Market for electricity storage is already growing Promising outlook Annually commissioned utility-scale storage In MW Global annual battery storage capacity additions Strong increase in annual commissions Growth distributed globally Lithium-ion technology currently standard technology Future market outlook for storage applications In GW Short duration balancing Peaking RE integration Transmission Distribution Residential C&I Strong growth in all regions until 2030 as storage is needed to integrate renewables into power sectors and thus guarantee security of supply Decreasing costs drive capacity additions

45 45 Costs are forecasted to fall as installed capacities increase Reduction of costs for energy storage systems In real 2017 USD/kWh CAGR --6% Battery pack EPC Power Conversion System Developer overheads Balance of System Developer margin Energy Management System Case example: Xcel Energy s tender Resource solicitation for RES generation plus storage Submission of 400 individual proposals Median price for wind-plus-storage projects was USD 21/MWh and for solar-plus-storage was USD 36/MWh Combined bids are only USD higher than standalone wind and solar power plants

46 46 Battery Storage: Possible market entrance for ENCAVIS Business model with minimised risks and great opportunities > Encavis is owner and operator of utility-scale batteries > Diversification of Portfolio Established technologies (Wind & PV) > Encavis transfers usage of batteries via long-term contracts > Complementary to RES power generation > Projects are bankable > Early bird advantages Established markets (Germany, UK, ) Established business models > Partner is responsible for the marketing of the batteryservices > Increase revenues of parks after end of FIT ( golden end )

47 47 Strong financials Financial year 2018

48 48 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

49 49 ENCAVIS success story steady and dynamic growth path CAGR >34% CAGR >39% CAGR >38% CAGR >34% CAGR >27% CAGR >19% 2,649 2, , , Revenue (EUR mill) Oper. EBITDA (EUR mill) Oper. EBIT (EUR mill) Balance Sheet (EUR mill) Equity (EUR mill) Div./Share (EUR cent)

50 50 OPERATING RESULTS FY 2018 Strong growth y-o-y / Guidance outperformed Operating key figures (in EUR million) FY 2017 Guidance 2018 FY 2018 Change y-o-y (in %) FY 2018 vs. Guidance (in %) Revenue > % +4% Oper. EBITDA > % +7% Oper. EBIT > % +8% Oper. Cashflow > % +7% EPS (in EUR) 0.29 > % +5%! Positive income effects by new acquisitions/grid connections & positive weather effects (PV)

51 51 FY 2018 vs FY 2017 by Business Segments Operating P & L Solar Parks Wind Parks Technical Services Asset Management HQ Revenue EBITDA EBITDA margin 79% 82% 74% 72% 38% 37% 24% -25% - - EBIT EBIT margin 49% 52% 44% 41% 38% 36% 8% -41% - -! Operating expenses distributed among Business Segments

52 52 Weather adjusted operating results FY 2018 vs FY 2017 wind and solar (in EUR million) Operating P & L (weather adjusted) Solar Parks 2017 (wa) 2018 (wa) Change 2018 (wa) vs (wa) (in %) Wind Parks 2017 (wa) 2018 (wa) Change 2018 (wa) vs (wa) (in %) Revenue % % Oper. EBITDA % % Oper. EBIT % %! Strong growth y-o-y (weather adjusted) is based on grid connection of PV (e.g. The Netherlands) and new wind acquisitions (e.g. Denmark)

53 53 Securing growth capital while keeping a strong equity ratio ( ) Financing measures implemented (in EUR million) Equity ratio (%) Full & successful placement of first Green Schuldschein in (small) Capital Increase Hybrid Convertible Bonded and "Green" Loans Credit Lines

54 Guidance financial year

55 55 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

56 56 Guidance 2019 & Show case 2020 Guidance based on the existing/secured portfolio as of March 2019 Operating P & L (in EUR million) FY 2018 Weather adjusted FY 2018 (wa) Guidance 2019 Guidance 2019 vs. FY 2018 (wa) (in %) Revenue >255 +5% EBITDA >190 +5% EBIT >112 +5% Cashflow n.a. >180 +3% EPS 0.31 n.a. > % / Guidance 2019 / FY 2018 (wa) (in %) ~ % / +16% / Guidance 2019 / FY 2018 (wa) (in %) ~ % / +23%! Based on average meteorological conditions and the already secured solar and wind park portfolio as of March 2019

57 57 Guidance FY 2019 by Business Segments Operating P & L (in EUR million) Solar Parks Technical Services Wind Parks Asset Management HQ FY 2018 FY 2018 (wa) Guidance 2019 FY 2018 Guidance 2019 FY 2018 FY 2018 (wa) Guidance 2019 FY 2018 Guidance 2019 FY 2018 Guidance 2019 Revenue > (internal) > > EBITDA > > > >4-7.2 <-7 EBIT > > > > <-7! Based on average meteorological conditions and the already secured solar and wind park portfolio in March 2019

58 58 Guidance including effects from IFRS 16 Operating P&L (in EUR milliom) Guidance 2019 Guidance 2019 (incl. IFRS 16) Revenue >255 >255 EBITDA >190 >199 EBIT >112 >114 Cashflow >180 >188 EPS >0.35 >0.35 Equity ratio 26% 25%

59 59 Appendix: Our PV and Wind Park Portfolio

60 60 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

61 61 Regional diversification of portfolio further increased in solar PV parks and 69 wind parks in 10 European countries: total capacity >1.9 GW WIND PARKS OWN ASSETS ASSET MANAGEMENT Germany 215 MW 286 MW France 36 MW 85 MW Austria 36 MW - Finland - 13 MW United Kingdom - 18 MW Sweden - 10 MW Italy 6 MW - Denmark 41 MW - Total 334 MW 412 MW SOLAR PARKS OWN ASSETS ASSET MANAGEMENT Germany 262 MW 22 MW Italy 154 MW 7 MW France 202 MW 12 MW United Kingdom 127 MW - The Netherlands 106 MW - Spain 300 MW Total 1,150 MW 41 MW GROUP TOTAL 1,937 MW Market presence Market entry initiated Market entry in 2018

62 62 Encavis FIT Portfolio PV accounts for >70% of the Encavis Portfolio Encavis Portfolio by technology Asset Management Portfolio by technology Capacity >1.5 GW Wind 22% PV 7% Installed base ~450 MW Average PV park 6.7 MW Average PV park 4.5 MW Average wind park 10.1 MW PV 78% Wind 93% Average wind park 12.0 MW! Almost 70% of the Renewable Energy Portfolio of Encavis is based on an FIT: ~15 years remaining FIT maturity

63 In MWh In MWh 63 Diversification by technology (Wind/PV) with complementary income streams over the year Seasonal Power Output of one Wind Park Seasonal Power Output of one Solar Park Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

64 64 Weather effects 2018: Strong Summer ( Jahrhundertsommer ) in North-Western Europe* Solar Germany Solar UK MWh MWh MWh MWh Power production 2018 > % 251 MW +9% 88 MW Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Solar Italy MWh Solar France MWh Power production 2018 < MWh MWh -8% -5% MW 141 MW 2017 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov * Energy output in MWh based on the same portfolio as of Dec 31, 2017, to ensure comparability

65 65 Weather effects 2018: Wind performance in Main Portfolio (Germany) below previous year Wind Germany MWh MWh Wind Austria -19% MWh MWh Power production 2018 > % Jan Mar May Jul Sep Nov 179 MW 179 MW Jan Mar May Jul Sep Nov 16 MW 16 MW Wind Italy +2% MWh MWh Wind France +7% MWh MWh Power production 2018 < 2017 Jan Mar May Jul Sep Nov 6 MW 6 MW Jan Mar May Jul Sep Nov 36 MW 36 MW * Energy output in MWh based on the same portfolio as of Dec 31, 2017, to ensure comparability

66 Operational excellence 66

67 67 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

68 68 Insight into our on-site activities (examples) Thermography Identification of strings with short circuits Adjustment of the polarity Repairs For instance repair of string-inverters with lightning damages (350 in the past 24 months) Performance tests Performance measurements for strings or single modules show performance reductions Replacing modules In 2014 and 2015 our team replaced more than 20,000 defect modules

69 69 Optimizing the performance of our Wind Portfolio Power Uprates Power Uprates for installed turbines increase annual electricity production of turbines by up to 3% without effecting the turbine design life Power (kw) Power Uprate Baseline Optimizing power curves Improve efficiency of turbine at lower wind speeds through software updates and the optimization of regular downtimes, of blade pitch angle and of gondola alignment Power (kw) Optimized power curve Baseline

70 IFRS P&L FY 2018 vs FY

71 71 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

72 72 IFRS RESULT FY 2018 IN EUR MILLION P&L 2018 FY 2017 FY 2018 Revenue Other income Material costs Personnel costs Other costs EBITDA Depreciation EBIT Financial costs (net) EBT Tax EAT

73 73 IFRS RESULT FY 2018 IN EUR MILLION P&L 2018 FY 2017 FY 2018 Revenue Other income > Change in market environment: Reflects lower Badwill due to an increase of investments in parks ready-to-build (e.g. Talayuela ) following market standards

74 74 IFRS RESULT FY 2018 IN EUR MILLION P&L 2018 FY 2017 FY 2018 Revenue Other income Material costs Personnel costs > One-time expenses related to Holger Götze (Executive Board Member) and Helmut Horst (former CFO of CHORUS) leaving the Board > Increase due to company growth

75 75 IFRS RESULT FY 2018 IN EUR MILLION P&L 2018 FY 2017 FY 2018 Revenue Other income Material costs Personnel costs Other costs EBITDA Depreciation > Increase due to organic growth > Linear depreciation of assets > EUR 12.4m Goodwill impairment in UK in FY 2018 due to ongoing uncertainities relating to the Brexit and changes in the underlying planning assumptions, in particular cost of replacement

76 76 IFRS RESULT FY 2018 IN EUR MILLION P&L 2018 FY 2017 FY 2018 Financial costs (net) EBT Tax EAT Additonal growth financing (debt)

77 The Management 77

78 78 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

79 79 Management team with great industry expertise and strong passion for renewables Dr. Dierk Paskert Since September 2017 CEO at Encavis AG CEO Rohstoffallianz GmbH Member of the Management Board of E.ON-Energie AG E.ON AG Düsseldorf, SVP Corporate Development Member of the Management Board Schenker AG Dr. Christoph Husmann Since October 2014 CFO at Encavis AG Member (CFO) and later Chairman of the Management Board of HOCHTIEF Projekt Entwicklung GmbH STINNES AG and HOCHTIEF AG, Head of Corporate Controlling and M&A VEBA AG, Controlling

80 80 Supervisory Board Dr. Manfred Krüper (Chairman) Member of the Board of Directors at E.ON AG (until Nov 2006) Supervisory Board (a.o.): Power Plus Communication AG, EQT Partners Beteiligungsberatung GmbH; EEW Energy from Waste GmbH Peter Heidecker Chairman of the Supervisory Board at CHORUS Clean Energy AG (until Oct 2016) Founder of the CHORUS GmbH in 1998 Supervisory Board (a.o.): Auszeit Hotel & Resort AG Alexander Stuhlmann (Dep. Ch.) CEO at HSH Nordbank (until Dec 2006) and thereafter CEO at WestLB AG (until April 2008) Supervisory Board (a.o.): Euro-Aviation Versicherungs-AG, Ernst Russ AG, GEV Gesellschaft für Entwicklung und Vermarktung AG, M.M. Warburg & CO Hypothekenbank AG Dr. Henning Kreke Previously CEO at Douglas Holding AG for 15 years Supervisory Board (a.o.): Deutsche EuroShop AG; Douglas GmbH, Thalia Bücher GmbH Albert Büll Entrepreneur and co-owner of the B&L Group Advisory Council (a.o.): BRUSS Sealing Systems GmbH, noventic GmbH Dr. Cornelius Liedtke Entrepreneur and co-owner of the B&L Group Supervisory Board (a.o.): BRUSS Sealing Systems GmbH, SUMTEQ GmbH Prof. Dr. Klaus-Dieter Maubach Entrepreuneur and Director of the maubach.icp GmbH CEO at Capital Stage (Nov 2015 Nov 2016) Supervisory Board (a.o.): ABB Deutschland AG, Klöpfer & Königer GmbH & Co. KG, Fortum Corporation Christine Scheel Member of the Supervisory Board at CHORUS Clean Energy AG (until Oct 2016) Former Member of the German Parliament Supervisory Board (a.o.): NATURSTROM AG Prof. Fritz Vahrenholt Chairman of the Supervisory Board (until January 2014) at RWE Innogy GmbH (previously CEO) Supervisory Board (a.o.): Aurubis AG

81 81 The Encavis share An attractive investment

82 82 Agenda 1 Encavis at a glance 4 2 Our business model 13 3 The golden end 24 4 New era - The growing PPA market 28 5 The future is bright for renewables 33 6 Battery storage 41 7 Strong financials Outlook Guidance financial year Appendix: Our PV and Wind Park Portfolio Operational excellence IFRS P&L FY 2018 vs FY The Management The Encavis share 82

83 83 ENCAVIS One of the largest independent and listed European Renewable IPPs Benchmarking by market capitalization (EUR million) 2,553 European listed renewable companies 2,189 1,954 European listed developers Listed Yield Cos 1,609 1,

84 84 Entrepreneurial shareholder structure strong and long-term anchor investors Market Cap AMCO Service GmbH (Büll Family) > 800 EUR million 20.2% 7.2% Dr. Liedtke Vermögensverwaltungsgesellschaft GmbH (Liedtke Family) # shares 129,487,340 Free float 64.4% 3.6% 4.6% Lobelia Beteiligungsgesellschaft / Kreke Immobilien KG (Kreke Family) PELABA Anlagenverwaltungs GmbH & Co. KG

85 85 ENCAVIS share Nine coverages with ~90% clear buy recommendation Coverage institution Rating Date Target Price (EUR) Buy Mar 25, Buy Mar 20, Buy Mar 15, Buy Jan 14, Buy Jan 10, Buy Nov 30, Hold Sep 21, Outperform Mar 23, Buy Jan 19, Consensus ! Further coverages of the ENCAVIS share are initiated...

86 86 Dividend proposal of EUR 0.24* for FY 2018 fully in line with dividend target 2021 Dividend policy reflects increasing cashflows from PV/Wind parks over time Nominal dividend to increase by 50% (base-year 2016) to 30 EUR cent in % increase of nominal dividend until 2021 (compared to 2016) based on the existing PV/Wind park portfolio as of March 31, * Further acquisitions of PV/Wind parks will positively contribute to the dividend potential Dividend (EUR cent/share) * Subject to approval by the AGM of Encavis AG on May 15, 2019

87 87 Financial Calendar / Contact Date April 4 April 5 May 15 Event Crédit Mutuel-CIC Conference, Paris Bankhaus Lampe Deutschlandkonferenz 2019, Baden-Baden AGM of Encavis AG Hamburg May 29 Interim statement Q1/2019 August 30 Interim report Q2/6M 2019 November 29 Interim statement Q3/9M 2019 Contact Jörg Peters Investor Relations & Public Relations Encavis AG Große Elbstraße 59 D Hamburg Germany T +49 (0)40 / M +49 (0)160 / joerg.peters@encavis.com

88 Encavis AG Große Elbstraße Hamburg, Germany Fon: April 2019 The information provided in this document has been derived from sources that we believe to be reliable. However, we cannot guarantee the accuracy or completeness of this information and we do not assume any responsibility for it. Encavis AG assumes no liability for any errors or omissions or for any resulting financial losses. Investments in capital markets, in particular in stock markets and futures markets, are fundamentally associated with risks and a complete loss of the invested capital cannot be ruled out. Recommendations provided herein do not represent an offer to buy or sell and are not intended to replace comprehensive and thorough advice before making a decision to buy or sell. Copies of the content of this presentation, in particular prints and copies or publications in electronic media, will only be authorized by written consent from Encavis AG.