Arise Windpower AB. Company presentation March 2012

Transcription

1 Arise Windpower AB Company presentation March 212

2 Cautionary statement This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities. Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Arise Windpower AB. Please read our most recent annual report for a better understanding of these risks and uncertainties. 2

3 Agenda I. Introduction II. III. IV. The Swedish windpower market Arise Windpower Appendix 3

4 Arise Windpower in brief Arise Windpower is one of the leading companies within the fast growing wind power sector in Sweden The business model is to sell electricity produced by own onshore wind power turbines Fully integrated business model Sweden and Norway constitute core markets with a proprietary portfolio in the southern part of Sweden Acquisition of large development stage projects (1 MW+) Expansion at a pre-tax project IRR > 1% (goal Ø 12%) Arise Windpower, founded in 26, is traded on NASDAQ OMX Stockholm since March 21 with a market cap. of some SEK 1.2bn Key 211 financial metrics Total income of approximately SEK 286m Wind farm EBITDA-margin of 83% Group earnings before tax of approximately SEK 65m FY 214 overall target is to reach an annual production capacity 1 of 2, GWh (equal to approximately 3 turbines or 7 MW) 1) Refers to projects in operation and under construction 4

5 Arise s characteristics High quality operating assets and project portfolio 241 MW in operation or under construction (139 MW operational 1, 12 MW construction) equal to an annual production of approximately 643 GWh (a full and normal wind year) High quality onshore development portfolio of approximately 1, MW concentrated to the south of Sweden coupled with an inherent track record to source and execute large projects Industrial approach Economies of scale Cost and quality control Control of the entire value chain from prospecting and permitting to operating the turbines (incl. grid company and crane) Secures strong and attractive proposition to partners, suppliers and investors Financial strength SEK 3.5bn invested (incl. projects under construction) and cash and cash equivalents in excess of SEK 45m 2 Equity ratio of 43% and net interest bearing debt to total fixed assets of 46% Wind farm EBITDA margin of 83% (wind farm operating margin) The on-going build out will generate further cash flows and increase overall profitability Proven track record Proven track record since Company foundation, delivering on all targets communicated in the IPO of 21 The establishment of Sirocco Wind Holding AB (JV with Platina Partners LLP) regarding the 23 MW Jädraås project confirms Arise Windpower s strong position in the market, its capabilities and organisation Management team and ownership Group management with extensive experience of large scale energy projects as well as the capital markets Founders, Members of the Board of Directors and Group Management hold 12.8% of the shares in Arise Windpower Strong and diversified ownership base including several Tier 1 investors 1) Including capacity in operation ramp-up phase 2) Cash and cash equivalents excluding restricted cash as of 31 Dec 211, adjusted for the SEK 35m bond currently being issued 5

6 Agenda I. Introduction II. III. IV. The Swedish windpower market Arise Windpower Appendix 6

7 Availability of wind resources, land and grid Wind potential in Sweden Population density National grid and international connections Strong wind locations Low population density Strong grid + Strong potential for Swedish wind power Source: Uppsala University, Svenska Kraftnät, 7

8 Development of wind power in Sweden Targets for new renewable energy in Sweden Installed wind power in Sweden (TWh) (TWh) (MW) , Electricity certificate system supports build out of 25 TWh of new renewable energy End of 211, SEA estimates that 11.8 TWh have been built (approximately 5% wind power) In , 13.2 TWh of new capacity is needed to meet the target SEA estimates that approximately 5% of the capacity will come 8,5 from wind power 4,6 4,8 5,7 6,8 9, TWh 11,6 11,8 25, ,5,9,9 1, 1,4 2, 2,5 3,5 5,8 7, E 22E E 212E TWh MW Source: Swedish Energy Agency (SEA) and Svensk Vindenergi 8

9 Variations in wind energy Energy content of the wind Monthly production data 12% 1% 8% 6% 4% 2% % % 16% 14% 12% 1% 8% 6% 4% 2% % Jan Mar Maj Jul Sep Nov % of average year Median Range Median The output of wind energy is dependent on the energy content of the wind and how it varies over time Statistics on the output of all wind turbines that have been officially registered with the Swedish Energy Agency show that between 1991 and 21 the energy content varied from 84% to 116% of an average year with a standard deviation of 9% Average monthly production varies from approximately 5% of annual production in July to over 11% in November/December Source: 9

10 The Swedish electricity grid The Swedish national electrical grid Price areas in Sweden Limited bottlenecks associated with build-out Production/consumption imbalance promote production in the South of Sweden 6% (9 TWh) of total consumption 14% (21 TWh) of total production Introduction of price areas in Sweden Since 1 November 211, the Swedish market has been divided into four price areas 18% (27 TWh) of total consumption 7% (1 TWh) of total production Introduction of price areas leads to slightly higher prices in southern Sweden Production/consumption imbalance in the different regions Limitations in transmission capacity between the regions Source: Svenska Kraftnät 1

11 The Swedish certificate system Introduction to the system The Swedish certificate system, a market based supply/demand driven support system, came into effect in May 23 and is designed to support the build out of 25 TWh of new renewable energy capacity until 22 Producers of renewable energy receive certificates during the first 15 years of operation for each produced MWh The purpose of the system is to ensure a high enough combined income to producers of renewable energy to stimulate a build-out that meets growth targets (25 TWh) Supply is determined by the amount of renewable energy production entitled to receive electricity certificates and the number of such certificates producers decide to sell Demand is determined by the statutory quota obligation and the total electricity consumption The system is financed by consumers of energy (some energy intensive industries are exempt) via the electricity bill. The system is not tax financed Norway joined the Swedish certificate market in 212 to create a joint certificate market up until and including 235 Norway has adopted the same target, 13.2 TWh of new renewable energy by 22 The combined objective of the two systems is 26.4 TWh of new renewable energy in the period (Quota, %) 25% 2% 15% 1% 5% % Quota obligation and capacity growth (New production, TWh) New quota Previous quota Renewable growth target A new quota was decided in 21 from 213 and onwards to offset a surplus of certificates created in the system The surplus is due to biofuel fired production which created a surplus in the first three years of the system and a low energy consumption following the financial crisis At the end of 212 approximately 11 TWh of production entitled to certificates will be phased out (as a reference there was approximately 18 TWh of production in the system in 21) Source: Swedish Energy Agency (SEA) 11

12 Regulatory system and market prices Electricity price development (EUR/MWh) Electricity certificate price development (SEK/MWh) Forw Forw Electricity is traded on Nordpool, both spot and derivatives Electricity also commonly sold through PPAs Current electricity prices reflect high hydro reserves and relatively warm climate along with economic uncertainty Source: Swedish Energy Agency, Nord Pool and SKM Electricity certificate prices have dropped due to economic uncertainty and high supply of certificates The Swedish Government has introduced quota increases in 213 as a response and significant phase out of old production from the system (11 TWh) will occur in 212 As of 1 January 212, Norway is increasingly becoming a net buyer 12

13 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 Comments Realised price compared to market price (SEK/MWh) 1 Electricity and electricity certificate spot prices show significant fluctuations Policy to hedge prices and interest rates to reduce revenue and cost fluctuations 3-6% of production is to be hedged Remaining production to be sold at spot price Interest rates hedged long term (avg. 4.9 %) Track record of having realised prices of approx. SEK 75 MWh In the period 212 to 214 approx. 4% of expected production from wind farms in full operation (139 MW) is hedged at levels of around SEK 8 MWh Electricity spot price Arise - realised price Certificate spot price Arise - avg. price hedge levels 1) The hedge level depicted relates to wholly owned production Source: Company data, Nord Pool and SKM 13

14 Agenda I. Introduction II. III. IV. The Swedish windpower market Arise Windpower Appendix 14

15 A green utility equipped to handle large and complex projects Experienced and well reputed organisation of approximately 37 persons led by CEO Peter Nygren Industrial approach Fully integrated business model Economies of scale Cost and quality control Reduce bottlenecks to secure build-out plan In-house recourses to costeffectively handle all critical steps in the value chain, including own electricity grid company, own crane and internal service organisation 15

16 Board of Directors & Group Management Name Position Other assignment(s) Pehr G Gyllenhammar Birger von Hall Joachim Gahm Chariman of the Board Board Member Board Member Board of Directors Chairman of the Board of Thomson Reuters Founder Share Company Ltd., Deputy Chairman of Rothschild Europe and Chairman of Rothschild Nordic AB Board member of Chalmers Innovation Affiliate Fund AB (publ), deputy board member of Platzer Fastigheter Holding AB (publ) and Chairman of the Board of Stiftelsen Göteborgs Maritima Centrum Senior partner and director of the board in Sustainable Growth Capital AB, director of the board in Kungsleden AB, and chairman of the board in Förvaltnings AB Hanneborg Share holdings 1 446,639 shares 4, shares 1, shares Name Peter Nygren Thomas Johansson Gary Ericson Position CEO Employed since Founder CFO & HR 28 Head of Marketing Group Management 211 Previous experience Holdings 1 Shares Options 17, Many years of experience with large-scale energy projects, including holding responsibility 1,34,197 for energy issues for the SCE Group and as Vice President of Project Financing at NCC shares 2 options Broad experience from previous positions such as MD, Finance and Administration Manager, and Certified Accountant Many years' experience from the energy industry. Before joining Arise Windpower, he worked for Halmstads Energi och Miljö AB 55, shares shares 2, options 2, options Jon G Brandsar Board Member Executive Vice President, Wind Power and Technologies of Statskraft responsible for onshore windpower, offshore windpower, district heating, innovation, small scale hydropower shares Lars Fröding COO 211 More than 15 years experience from senior management (private and public sector) 1 shares 35, options Peter Nygren Board Member & CEO None 1,34,197 shares 2 and 17, options Leif Jansson Vice President IR & Acquisitions Founder Broad business development experience and has previously held a number of senior management positions, including Managing Director 1,293,99 shares 2 options Founders, Board of Directors and Group Management combined hold 4,271,78 shares, representing 12.8% of total voting rights and share capital Linus Hägg Head of Corporate Finance 211 Broad financial expertise and experience from capital markets 1, shares 2, options 1) Holdings as of 29 February 212 and including the holdings of kindred 2) The shareholdings of Zinwin AB equally distributed to Peter Nygren, Leif Jansson and Ulf Corné (non executive founder) 16

17 Shareholders and share price development Name Shareholder structure 1 No of shares Voting rights and Share capitals, % AP3 4,636, Founders 3,71, Nordea Investment Funds 3,272, Länsförsäkringar Fondförvaltning AB 2,95, Statkraft AS 2,495, OPP 2,1, 6.3 Arbejdsmarkedets Tillaegspension 1,951, Alecta Pensionsförsäkring 1,5, 4.5 Ernström Finans AB 1,4, 4.2 Vätterledens Invest AB 734, Ten largest shareholders 24,75, Other shareholders 8,677, Total registered shares 33,428,7 1. Share price development since IPO (SEK) (Thousand shares) mar-1 jun-1 sep-1 dec-1 mar-11 jun-11 sep-11 dec-11 Volume (r.a.) Arise (l.a.) OMX Stockholm Allshare (l.a.) 1) Shareholder structure as of 31 January

18 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 Price area IV Operation start in March 29 Turbines: 12 Vestas V9 2. MW Est. annual production 62 GWh Located outside Kristianstad, Skåne Price area IV Operation start in December 29 Turbines: 5 Vestas V9 2. MW Est. annual production 26 GWh Located outside Karlskrona, Blekinge Price area IV Operation start 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 Operation start in December 21 In full operation Q2 211 Price area IV Turbines: 9 GE 2.5 MW Est. annual production: 56 GWh Located in Småland Operation start in December 21 In full operation Q2 211 Price area IV Turbines: 8 Vestas V9 2. MW Est. annual production 35 GWh Located outside Laholm, Halland Operation start in December 21 Price area IV In full operation Q2 211 Turbines: 7 GE 2.5 MW Est. annual production: 47 GWh 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 Södra Kärra, 1.8 MW 8 Blekhem, 1.8 MW 9 Gettnabo, 12. MW 7 Projects production ramp-up phase Located outside Askersund, Närke Construction initiated in Nov. 21 Operation start 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 Operation start in Q3-Q4 211 Price area III Turbines: 6 Vestas V1 1.8 MW Est. annual production: 31 GWh Located outside Torsås, Blekinge Construction start in March 211 Operation start in Q3-Q4 211 Price area IV Turbines: 6 Vestas V9 2. MW Est. annual production 29 GWh ) All production figures represent expected production in a full and normal wind year 2) 3 MW in Skäppentorp operation start in Q

19 The Jädraås project Located outside Gävle ~ 3 km from the Swedish East cost Project 66 V112, each 3.1 MW, totalling 23 MW (Arise Windpower s share is 5%) Estimated production a full and normal wind year 57 GWh (Arise Windpower s share 285 GWh) Production start autumn 212, full operation spring/summer 213 Timing Phase I - 43 turbines - Start construction October Full operation Winter 212 Phase II - 23 turbines - Start construction Spring Full operation Spring/Summer 213 Acquired from OPP and Bergvik together with Platina Partners Total CAPEX SEK 3.1bn Financing Owned 5/5 with Platina Partners Equity secured through existing cash Debt package secured from DNB, SEB and EKF 19

20 Action plan Development since the IPO Action plan communicated in IPO Development since IPO Status Continue build-out of wind parks at a high pace Installed capacity increased from 46.5 MW to 139 MW 12 MW under construction (5% of Jädraås) Development of the project portfolio, including potential acquisition of additional projects with or close to permits Total number of projects increased from 49 to 69 Internal project development complemented with acquisitions of permitted projects, including Jädraås, the largest Swedish wind power project under construction Fine tune CAPEX and OPEX to boost returns Secure financing for the continued expansion and build-out in CAPEX has been reduced from approx. SEK 5.7 kwh to a target of below SEK 5. kwh OPEX continuously decreasing in existing operating farms SEK 55m in new equity raised in the IPO SEK 1.9bn raised in senior project debt after the IPO Issue in kind for financing of the Jädraås project SEK 35m raised in senior unsecured debt (bond issue) Excellent track record on delivering on operational goals and in accordance to expansion plan 2

21 Build-out plan Growth strategy Goal year end 214 Continue to build projects from the proprietary portfolio as permits are granted. Goal to build an additional 5-1 MW (3 to 6 turbines) from our proprietary portfolio in 212 Acquisition of large projects with existing or near permits. Projects in middle/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 development (at year end) Status of the 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 21

22 Bond offering will support growth ambitions The Company sees opportunities to accelerate the pace of expansion Acquisition of large projects with or near permits in Sweden and Norway This will occur in parallel to the planned build out of the company s proprietary portfolio of medium size projects The SEK 35m bond was issued to support this accelerated pace of expansion Summary of key terms Issuer: Arise Windpower AB (publ) Volume: SEK 35m Status: Senior unsecured Coupon: Stibor 3m + 5bps, quarterly payments in arrear Tenor: 3 years Listing: On NASDAQ OMX Stockholm The proceeds from the bond can effectively be deployed as equity in new projects An example of such a project is the Lingbo project situated approx. 3 km North of the Jädraås project The project has been developed by the landowner, Bergvik Skog AB, and is fully permitted with the right to install up to 85 turbines Platina Partners LLP has the right to buy the project in whole. Platina and Arise have signed a memorandum of understanding giving Arise the right to acquire 12.5 to 5%. The MoU is signed subject to Arise s and Platina s board approval Start construction earliest Autumn/Winter

23 Capacity additions and fees driving growth Group revenue and EBITDA, rolling 12-months (Revenue, SEKm) 3 (EBITDA margin, %) 7% Wind power generation segment, rolling 12-months Capacity and production 1 Revenue and EBITDA margin (Capacity, MW) (Production, GWh) (Revenue, SEKm) (EBITDA margin, %) % 25 6% % 7% 2 5% % 15 4% 3% % 4% 1 2% % 5 1% % 1% % % Revenue EBITDA-margin 2 MW in operation Prod. GWh (sec. axis) Revenue EBITDA-margin 1) ~139 MW and ~241 MW denote capacity and annual production capacity as of Jan and from when Jädraåsen is operational, respectively, assuming a normal wind year 2) Including capacity in operation ramp-up phase 23

24 Illustrative EBITDA potential current operations Long term price target SEK 75 MWh Current combined hedge and market price level SEK 66 MWh (SEKm) 3 Total effect (MW) 139 (SEKm) 3 Total effect (MW) 139 Annual production capacity (GWh) 358 Annual production capacity (GWh) Price (SEK/MWh) 75 2 Price (SEK/MWh) 66 1 Revenue capacity (SEKm) 269 Wind farm OPEX 1 (SEKm) 48 1 Revenue capacity (SEKm) 236 Wind farm OPEX 1 (SEKm) 48 Wind farm EBITDA (SEKm) 22 Wind farm EBITDA (SEKm) 188 Revenue capacity Wind farm OPEX Wind farm EBITDA Wind farm EBITDA margin 82% Revenue capacity Wind farm OPEX Wind farm EBITDA Wind farm EBITDA margin 8% Based on current operating production capacity (139 MW), Arise Windpower s wind farm operations would generate SEK 269m in revenues and SEK 22m of EBITDA at a price level of SEK 75/MWh in a normal wind year Based on current market prices and hedging levels the current operating production capacity would generate wind farm revenues and EBITDA of SEK 236m and SEK 188m, respectively, in a normal wind year This is enough to support general overhead, continued project development and debt service When the Jädraås project becomes operational in the winter 212/13 and spring 213 it will, in addition to cover its own OPEX and debt service, provide further positive cash flow contributions to Arise Windpower 1) Incorporates all OPEX items, including production-related OPEX items (land lease, transmission cost, balance power) as well as other OPEX items (service and maintenance, insurance, real estate tax and administration) of SEK MWh 24

25 Financial position and debt funding overview Capital structure as of 31 December 211 Debt funding overview Non-interest bearing liabilities 8% Arise Windpower AB (publ) Interest bearing liabilities 49% Total assets SEK 2.9bn Equity 43% Arise Wind Farm 1 AB Secured project financing from bank A Denotes ring fenced entity Arise Wind Farm 2 AB Secured project financing from bank B ( ) Arise Wind Farm (n) AB Secured project financing from bank n Strong financial position Equity ratio of 43% Cash and cash equivalents of SEK 137m (corresponding to SEK 479m after the bond issue) Net debt amounts to SEK 1,23m Project financing, secured by entitlement to the wind park, lies within each subsidiary If a subsidiary was to default the consequences for the Company can be minimised Arise Windpower AB (publ) has no interest bearing liabilities or any material company guarantees outstanding Arise Windpower may issue company guarantees for subsidiaries in conjunction with the construction phase of wind farms 25

26 Financial overview Income statement (SEKm) Net sales Work in progress Other revenues Total revenues Personnel costs Other external costs EBITDA Depreciation EBIT Financial income Interest expense EBT Deferred tax Net income Segment reporting Wind power operations Wind power development Eliminations Group (SEKm) Total revenues EBITDA EBITDA margin 74% 83% neg. 17% % 62% EBIT EBIT margin 3% 49% neg. 13% - - neg. 36% EBT EBT margin neg. 28% neg. 15% 67% 67% neg. 23% Balance sheet (SEKm) Assets Fixed assets 918 1,735 2,615 Current assets Cash and bank balances Total assets 1,348 2,75 2,88 Equity and liabilities Equity 68 1,195 1,243 Non-current liabilities ,35 Other current liabilities Total equity and liabilities 1,348 2,75 2,88 Cash flow (SEKm) Cash flow from operating activities Cash flow from investments Cash flow from financing activities Total cash flow

27 Agenda I. Introduction and investment attractions II. III. IV. The Swedish windpower market Arise Windpower in brief Appendix 27

28 Build-out governed by strict return focus Key factors and project return 1 Illustrative example of the average MW in the project portfolio 1 MW Wind speed / Output m/s 2,4-3,6 MWh/MW SEKm CAPEX 15 Revenues 2.3 Ratio SEK 15m /MW SEK 5 /kwh SEK 75 /MWh 3, MWh/MW CAPEX SEK 13-17m /MW 1% pre-tax return on invested capital OPEX SEK m /MWh OPEX SEK -13 /MWh EBITDA 1.9 SEK 62 /MWh Interest cost % Revenues SEK 75 /MWh All projects in the portfolio have an estimated pre-tax return on invested capital in excess of 1% 1) Based on 2 years of operation of which 15 years eligible for electricity certificates 2) Incorporates all OPEX items, including production-related OPEX items (land lease, transmission cost, balance power) as well as other OPEX items (service and maintenance, insurance, real estate tax and administration) 3) Interest cost year 1 before any debt amortisation 28

29 Increased efficiency benefitting the portfolio More efficient turbines, example at 6.7 m/sec, 12 % losses Turbine MWh/y Full load hours per MW V h V h Improvement 13 % 26 % Expected further improvements and trends Expected further improvements and trends: Higher towers Larger blades Intelligent operation (as a group of turbines rather than individual) Example I Skäppentorp in operation 1 * Vestas V m blades/119 m tower height Price zone IV in Sweden 6.8 m/sec at hub height 2 7 full load hours Example II Södra Kärra in operation 6 * Vestas V 1 1 m blades/96 m tower height Price zone III in Sweden 6.6 m/sec at hub height 3 15 full load hours 29

30 Arise Windpower's project portfolio Geographically concentrated to the South of Sweden Planned wind power projects Wind locations with attractive return potential Strong grid and infrastructure (number of planned wind turbines) Southern inland (~165) Favourable climate Geographic concentration West coast (~12) East coast (~95) Skåne/Blekinge (~12) 1 Approx. 1,2 MW in attractive wind locations concentrated to the South of Sweden 1) Approx. 6 planned turbines (15 MW) in Blekinge can be affected by proposed JAS restriction 3

31 Status of project portfolio Project portfolio Installed capacity (accumulated MW) Number of Capacity 25 Projects Turbines (MW) In operation (blue) Operation ramp-up ( grey) Under construction (green) Permits received Permit pending Detailed planning Land lease signed Total portfolio ,195.7 In operation Operation ramp-up Under construction 31

32 From wind potential to revenue Wind speed (m/s) Availability (%) Efficiency (%) Electricity production (MWh) Capacity (MW) Electricity price (SEK/EUR) Revenues Electricity certificate (SEK) Wind power revenues are dependent on a number of key factors: Wind speed potential is essential for every wind turbine and depends on both average wind speed and availability Availability along with efficiency and the wind turbine s total effect determines the total electricity production In addition to production volume, revenues are generally a function of the electricity price and other revenue sources such as a electricity certificates 32

33 Rule of thumb MW = Megawatt = capacity measure 1 wind turbine generator (WTG) MW (large WTG) MWh = Megawatt hour = Energy (production) measure 1 MW wind power 2,4-3,6 MWh in a full year (assuming strong wind locations ~ m/s) 1,, MWh = 1, GWh = 1 TWh (~135 WTG á 2.5 MW) Swedish long-term target framework: 3 TWh (of which 2 TWh is onshore wind power 3,-5, WTGs) The certificate system has the objective to increase renewable electricity production by 25 TWh until 22 Arise Windpower total revenues target SEK 75 /MWh Investment cost (at 1. SEK/EUR) is approx. SEK 15m /MW or SEK 3-4m per WTG 33

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