Arise Windpower AB. Annual General Meeting of Shareholders 25 April 2012

Transcription

1 Arise Windpower AB Annual General Meeting of Shareholders 25 April 212

2 Q1-9 Q2-9 Q3-9 Q4-9 Q1-1 Q2-1 Q3-1 Q4-1 Q1-11 Q2-11 Q3-11 Q Hedging reduces revenue and cost fluctuations Highlights of 211 Realised price compared with market price (SEK/MWh) 1 Installed and commissioned 4 turbines (9 MW) Started construction of a further 66 turbines (23 MW) in project Jädraås in which Arise owns 5% Project development of major projects (1 to 2 MW class) added to business model Electricity production growth: 28% on 21 Wind conditions: Normal 1) Total revenues: SEK 286m (SEK 17m in 21) Earnings before tax: SEK 65m (SEK -24m in 21) Average revenue of SEK 762/MWh, which is 2% above market price for electricity and electricity certificates in 211 Arise is now the leading wind power company in Sweden measured by production capacity (MW) in operation or under construction Electricity spot price Certificate spot price Arise - realised price 1) Nord Pool and SKM 2

3 Strong track record of developing wind farms Projects in full operation since 29/21 Projects in full operation since Oxhult, 24. MW 2 Råbelöv, 1. MW 3 Brunsmo, 12.5 MW Located outside Laholm, Halland Went into operation in March 29 Turbines: 12 Vestas V9 2. MW Est. annual production 62 GWh Located outside Kristianstad, Skåne Went into operation in December 29 Turbines: 5 Vestas V9 2. MW Est. annual production 26 GWh Located outside Karlskrona, Blekinge Went into operation in March 21 Turbines: 5 GE 2.5 MW Est. annual production: 3 GWh 4 Fröslida, 22.5 MW 5 Idhult, 16. MW 6 Kåphult, 17.5 MW Located outside Hylte, Halland Went into operation in December 21 In full operation Q2 211 Turbines: 9 GE 2.5 MW Est. annual production: 56 GWh Located in Småland Went into operation in December 21 In full operation Q2 211 Turbines: 8 Vestas V9 2. MW Est. annual production 35 GWh Located outside Laholm, Halland Went into operation in December 21 In full operation Q2 211 Turbines: 7 GE 2.5 MW Est. annual production: 47 GWh 7 Södra Kärra, 1.8 MW 8 Blekhem, 1.8 MW 9 Gettnabo, 12. MW In operation Capacity: 139 MW Annual production 358 GWh 1) Total investment: SEK 2bn Under construction 11 Capacity: 12 MW Annual production 285 GWh 1 Total investment: SEK 1.5bn 11 7 Projects production ramp-up phase Located outside Askersund, Närke Construction initiated in Nov. 21 Went into operation in Q3-Q4 211 Price area III Turbines: 6 Vestas V1 1.8 MW Est. annual production 34 GWh Located outside Västervik, Småland Construction initiated in Nov. 21 Went into operation in Q3-Q4 211 Price area III Turbines: 6 Vestas V1 1.8 MW Est. annual production: 31 GWh Located outside Torsås, Blekinge Construction initiated in March 211 Went into operation in Q3-Q4 211 Turbines: 6 Vestas V9 2. MW Est. annual production 29 GWh ) All production figures refer to expected production in a full and normal wind year 2) 3 MW in Skäppentorp became operational in Q

4 The Jädraås project Northern Europe s largest onshore wind power project Located outside Gävle about 3 km from the east coast of Sweden 66 V112, each with a capacity of 3.1 MW for a total of 23 MW (Arise s share is 5%) Project Production in a normal wind year approx. 57 GWh (Arise s share is 285 GWh) Start of operation in October 212, in full operation from April 213 SEK 3.1bn investment, fully funded Construction proceeding according to plan UK-based, established in 22 About 3 employees with financial and technical expertise in the field of energy Platina Partners Management firm for a number of funds investing in renewable energy (solar, wind, biomass) Principal investors are major pension funds, insurers and other funds and banks, including the European Investment Bank (EIB) Has invested approx. EUR 5m in equity capital over the past ten years, constructing 7 MW of new wind power, 3 MW of solar power and 35 MW of biomass power 4

5 Regulatory system and market prices Electricity prices (EUR/MWh) Electricity certificate prices (SEK/MWh) Forw Forw Current electricity prices reflect high hydro reserves and a relatively warm climate coupled with economic uncertainty Electricity certificate prices have dropped due to economic uncertainty and a high supply of certificates The excess supply will be reduced through: increased quotas phasing-out of facilities Norwegian buyers Source: Swedish Energy Agency, Nord Pool and SKM 5

6 Action plan Development since the IPO Action plan communicated in IPO Development since IPO Status Continued construction of wind farms at a rapid pace Installed capacity increased from 46.5 MW to 139 MW 12 MW under construction (5% of Jädraås) Total number of projects increased from 49 to 69 Development of project portfolio, including potential acquisition of additional projects with existing or pending permits Internal project development complemented with acquisitions of permitted projects, including Jädraås, the largest Swedish wind power project currently under construction Fine-tune CAPEX and OPEX to boost returns CAPEX has been reduced from approx. SEK 5.7 kwh to a target of below SEK 5. kwh OPEX continuously decreasing in existing operational wind farms Secure financing for continued expansion and construction in SEK 55m in new equity raised in IPO SEK 1.9bn raised in senior project debt after IPO Non-cash funding of Jädraås project SEK 35m raised in senior unsecured debt (bond issue) Excellent track record on delivering on operational goals and in accordance with expansion plan 6

7 Shareholders and share price Shareholder structure 1 Share price since IPO Name No. of shares Voting rights and share capital, % AP Founders Länsförsäkringar Fondförvaltning AB Nordea Investment Funds Statkraft AS OPP Arbejdsmarkedets Tillaegspension Alecta Pensionsförsäkring Ernström Finans AB Vätterledens Invest AB (SEK) (Thousand shares) Ten largest shareholders Other shareholders Total no. of registered shares mar-1 jun-1 sep-1 dec-1 mar-11 jun-11 sep-11 dec-11 mar-12 Volym (h.a.) Arise (v.a.) OMX Stockholm (v.a.) 1) Shareholder structure at 31 January 212 7

8 Expansion plan Growth strategy Goal for yearend 214 Continue to build projects from proprietary portfolio as permits are granted. Goal to build an additional 5-1 MW (3 to 6 turbines) from our proprietary portfolio in 212 Acquire large projects with existing or pending permits. Projects in central/northern Sweden and Norway of interest. Ambition to realise one large (1 MW+) project p.a. Production capacity ~2 TWh (operation & construction), approx. 3 WTGs or 7 MW Total investment SEK ~1bn (aggregated specific investment cost of SEK 5. kwh) Platform for continued growth and/or dividend through own generated cash flow Targeted annual capacity (at year-end) Status of project portfolio, including 5% of Jädraås (GWh) 2 (MW) 8 No. of projects No. of wind turbines Total capacity (MW) * 214* Operational, GWh (l.a.) Jädraås, GWh (l.a.) Targeted expansion, GWh (l.a.) Total capacity, MW (r.a) Wind farms in operation and under construction In operation Under construction Project portfolio Permits received/acquired Permits pending Project planning completed Leases signed Total portfolio ,195 * Includes projects under development 8

9 Q1-212 Events Electricity production A senior unsecured corporate bonds was launched in March The issue was oversubscribed within 24 hours and raised SEK 35m, which can be used to fund equity in new projects 12, 1, Produktion kvartalsvis (GWh) Electricity production: 98.6 GWh (+ 88% on Q1 211) Wind conditions: Approx. 4% below normal 1) Total revenues: SEK 8m (59) Earnings before tax: SEK 13m (18) 8, 6, 4, 2, Average revenue of SEK 619/MWh, which is 24 % above market price for electricity and electricity certificates in the same quarter, Q1 Q2 Q3 Q4 1) Danish Wind Energy Index, 3-year average, 9

10 Outlook Cost control The company s interest expense has largely been fixed through long term contracts (average of 5 years) at a cost of well below 6% Development of in-house operations organisation lowers operating cost Increased efficiency More efficient turbines generate additional kwh per invested krona New monitoring system in which all wind farms can be followed in real time has been installed. The system leads to improved control as well as increased availability and production at operational wind farms Efficient, lean and fine-tuned organisation Main uncertainties and opportunities Wind (+/- 15% from a normal year) Electricity prices for unhedged portion Electricity certificate prices for unhedged portion Financial strength Approx. SEK 5m of cash and cash equivalents, which can be used for equity funding of new wind power projects Strong interest from banks in providing loan funding for the company s wind power projects The success of the company s corporate bond issue shows that Arise also can raise capital from other sources Focus We have a clear plan, identified projects and highly developed methods for taking on large and small projects in Sweden and Norway 1

11 THANK YOU FOR YOUR INTEREST! 11