The key strategic partner of an investor in renewable energies. Comprehensive Management of Renewable projects

Transcription

1 The key strategic partner of an investor in renewable energies Comprehensive Management of Renewable projects

2 Element Power Asset Management, a new view in renewable assets management Element Power Asset Management (EPAM) is a multidisciplinary professional services firm specialized on the comprehensive management of renewable energy projects We are focused on helping our clients managing the operation of their plants in the most efficient manner and providing advisory for the best decision making to enhance the value generation of the projects MISSION Provide top quality professional services and solutions, through the expertise of a multidisciplinary team, with proven business experience and fully committed to attend our customers needs OBJECTIVE Maximize the value and profitability of the projects under management We provide advice and management to extract the maximum value in the plants operation Element Power Asset Management is a company of the Element Power Group -

3 MANAGED PROJECTS FRANCE PV Saint Martin 5,37 MWp USA SPAIN ITALY Macho Spring 50,0 MW Almatret 49,4 MW PV Olmedilla 25,2 MWp La Cattiva 1,96 MWp Piano Corallo 4,5 MWp PANAMA PV Herrera 2,02 MWp PV Manzanares 2,03 MWp VS 1 0,99 MWp VS 3 0,45 MWp Viento Sur 150,0 MW CHILE PV Herencia 1,13 MWp Los Almendros 3,5 MWp PE San Vito 50,0 MW Arauco 100,0 MW OTHER PROJECTS El Rocío 1,44 MWp Lebrija 1,45 MWp Zal 0,71 MWp Los Pinares 2,18 MWp Zaratán 3,8 MWp PV Vilasana PV Pascuales PV Cañada PV Alameda PV Morales PV Rincones 1,39 MWp 0,67 MWp 1,11 MWp 0,08 MWp 0,55 MWp 1,1 MWp UNDER CONSTRUCTION

4 Our Services EPAM provides a full range of professional services and advisory for the renewable projects: Project Management Origination / site selection Land acquisition Project design and engineering Permitting Construction Resource assessment Interconnection and transmission EPAM is a full service developer Operation O&M integrated services Technical review Preventive corrections Security Monitoring of the O&M suppliers Technical Due Diligence & Audit Technical design of the plant Administrative Accounting & bookkeeping Representation & Intermediation with authorities, tax authorities, auditors Interim Financial services Financial Control Filling of the Financial Statements Billing and monitoring discrepancies with the energy distributor Bank reconciliation Working Capital management Efficiency in MANAGEMENT through the interaction of a multidisciplinary team Efficiency in ADVISORY through the interaction of the complementary roles & tasks Financial to the banks Monitoring of the covenants compliance Forecasting & Budgeting Creating Financial structures Refinancing of projects M&A process (invest & divestment) Modeling to deal with financial banks Cash Flow management Attendance to board meeting Production & incidents report Financial reports Update of the sectorial news Proposing action plans Accountant report to consolidate Legal & Tax Design the legal & tax structure Constitution of legal entities Tax filing compliance services Drafting contracts (O&M, EPC, Financing) Legal representation Tax optimization

5 Our Approach Scope of the final services Before the scope definition we propose our customers to perform a GLOBAL EVALUATION of the project (with no compromise) to evaluate the Operational, Technical and Financial Structure of the project, so we can define an ad-hoc ACTION PLAN ACTION PLAN FOCUS ON SPECIFIC: Technical Actions ( in the scope of O&M,..) Structural Actions (refinancing, ) Administrative Actions (structure redesigning,..) OPERATIONAL STRUCTURE EVALUATION Legal Actions (collective claims, demands ) KICKOFF MEETING TECHNICAL EVALUATION ACTION PLAN ACTION AGREEMENT IMPLEMENTATION & MONITORING NDA FINANCIAL STRUCTURE EVALUATION Actions to: Reduce costs Enhance efficiency Service Agreement Cash flow in a renewable energy company. The value chain The Cash Flow approach allows us to focus on reducing costs and enhancing efficiency while safeguarding the creation of shareholder value Value Chain 40% 50% 10% Example of Value Map ADMINISTRATIVE FLOWS Bookkeeping Tax / Legal disputes Insurance Administrative issues Statistics Administrative Flows Operational Flows RENEWABLE ENERGY PROJECT Financial Flows OPERATIONAL FLOWS -core business- O&M Insurances Monitoring Taxes Security Working Capital FINANCIAL FLOWS Debt Service Payment Covenants Evaluations Audits and Covenants Capital Management Guarantees and Deposits Cash Flow / Value Chain We design an action plan to adapt the structure of cash flows to achieve the optimization of the IRR Typical cost structure 42% 19% Illustrative Example 39% IRR 10.3x Restructuring process Optimal cost structure 37% 11% Illustrative Example 52% IRR 11.1x

6 Our Internal Structure SUPPORT FINANCIAL DEPARTMENT TECHNICAL DEPARTMENT ADVISOR DEPARTMENT ADMINISTRATIVE DEPARTMENT Financial models Plants operation Tax Accountants Covenants Maintenance Legal Bookkeeping Cash flows to the Financial Institution Insurance Energy sales Cost reduction Regulatory New investments Divestments Permits Documentation Management Advisory COMMITTEE KEY MEMBERS OF THE ADVISORY COMMITTEE Pedro Barriuso Executive Chairman Element Power General Manager Pedro Diosdado Juan Ramón Guzmán Managing Director EMEA / LATAM Iván Furones Solar Business Director Element Power Country Manager Juan Kariger Corporate Development Director Element Power Technical Manager Financial Manager Admin Manager Legal & Tax Advisor Element Power s approach to renewable energy projects is informed by the deep experience of our team.

7 Our Group Element Power Group Overview. Develops, acquires, builds, operates and/or sells utility-scale renewable energy projects History Formed in September 2008 through the acquisition of Helium Energy by the Hudson CEP Funds Established offices, teams and projects in key markets People Most experienced management team in the industry Over 100 professionals between Europe and U.S. Attracted 25 senior professionals from Iberdrola Portfolio Extensive portfolio of wind and solar projects in operation and development Broad geographic footprint with focus on European and North American markets Differentiated Business Approach Focus on the highest rewarding assets across all stages of the development process Fully integrated development platform Capital efficiency through reinvestment and disciplined value realization KEY ADVANTAGES DIFFERENTIATORS Best-in-Class Management Team A team of executive managers, each with expertise in the industry and a track record of proven success; significantly contributed to the 2 largest public, utility-scale renewable energy companies, Iberdrola Renovables (market cap of $20.9B) and EDP Renovaveis (market cap of $4.1B) (1) High Growth Market Combination of government support and macro-economic trends are driving rapid growth in global wind and solar PV generating capacity; projected CAGR of 16% and 28%, respectively Value-Based Strategy Maximizing return on invested capital by focusing on assets with the greatest value potential, not simply the greatest MW contribution Diversified Portfolio Diversified portfolio mitigating technology, geography and execution risk Fully-Integrated Development Platform Fully-integrated platform from greenfield development through operation Value creation along the development cycle with team that has successfully developed and built over 10 GW of wind and solar Understanding True Development Value Industry mistakes made as the result of overpayment for development assets Element understands true value of development assets to secure highest profit Partner of Choice Preferred development partner with flexible JV and co-development structures A range of power products beyond traditional PPAs to increase sales value Proprietary Network Deep industry contacts for privately-negotiated sourcing at lowest cost entry No need to participate in asset auctions Regional headquarters Solar facilities (operating/near term) Solar assets (in development) Transmission/Market Strategies In-house competencies create value from transmission and market rule plays Focus on access to multiple customers and/or liquid markets to increase value Development offices EP employees depending of Portland office Wind facilities (operating/near term) Wind assets (in development)

8 Highlights EPAM actually is managing over 123 MW in operation. 61 MW in wind farms and over 62 MW in photovoltaic plants. Distributed throughout the European geography Operating portfolio (growing every day) Spain: 61 MW in wind farms and 49 MW in photovoltaic plants Italy: 8 MW in photovoltaic plants France: 5 MW in photovoltaic plants EPAM manages over 246 million euro assets in operation (212 million euro in Spain and 26 million euro assets out of Spain), managed on behalf of its owners, ranging from international Investment Funds to companies of the Element Power Group

9 Head Office - EPAM Spain Ismael Rodelgo Edificio América Av. Bruselas 13 1 D Alcobendas Madrid, Spain T F EPAM Greece Nicolas Charalambous 197 Alexandras Avenue , Athens, Greece T F EPAM UK Mike O Neill 1st Floor 3 Sheldon Square Paddington Central, London, W2 6HY UK T F EPAM Italy Amedeo Lori Corso di Porta Nuova Verona (VR), Italy T F EPAM France Clemence Picard Espace Richter Center 80 place Ernest Granier Montpellier, France T F EPAM US Pedro Diosdado Portland Office 421 SW Sixth Avenue, Suite 1000 Portland, OR T F Charlottesville Office 400 Preston Avenue, Suite 200 Charlottesville, VA T F