Senvion SA Annual Results Presentation 2017 March 15, 2018
Disclaimer This presentation (the Presentation ) has been prepared by Senvion S.A. ( Senvion and together with its subsidiaries, we, us or the Group ) solely for informational purposes and has not been independently verified, and no representation or warranty, express or implied, is made or given by or on behalf of the Group. Senvion reserves the right to amend or replace this Presentation at any time. This Presentation is valid only as of its date, and Senvion undertakes no obligation to update the information in this Presentation to reflect subsequent events or conditions. This Presentation may not be redistributed or reproduced in whole or in part without the consent of Senvion. Any copyrights that may derive from this Presentation shall remain the sole property of Senvion. This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation or inducement to subscribe for, underwrite or otherwise acquire, any securities of Senvion, nor should it or any part of it form the basis of, or be relied on in connection with, any investment decision with respect to securities of Senvion or any other company. Certain statements in this Presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the wind industry, intense competition in the markets in which the Group operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the Group s markets, and other factors beyond the control of the Group). Neither Senvion nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. In particular, no statements in this Presentation should be construed as concrete guidance as to the results of operations, cash-flows, balance sheet data or any non-financial metrics as of or for the financial year ending December 31, 2017 or any subsequent financial period. Certain financial data included in the presentation consists of non-ifrs financial measures. These non-ifrs financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-ifrs financial measures and ratios included herein. This Presentation does not constitute or contain any investment, legal, accounting, regulatory, taxation or other advice. Due to rounding, numbers presented through out this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1
Agenda 1 2 3 4 5 Key achievements 2017 Orders and installations Financials 2017 Strategic roadmap and guidance 2018 Key takeaways 2
1 Key achievements 2017 Building a growth platform for 2019
2017 key highlights at a glance Making progress against continuing industry headwinds 1 Financials CY17 revenues at 1,890mn with adjusted EBITDA of 152mn Cash on hand improved to 235mm; net cash generation of 47mn in Q4 Working capital at 2.5% ; likely to become negative by Q2 on commissioning of the Chile project Building platform for 2019 2 Orders from new markets Orders 36% growth yoy in firm orders; 393% growth in new markets Ranked 4 th largest 2 in EMEA in 2017; market share gains in key regions +393% 2016 2017 3 Products 3.6M140 EBC rated as one of the top 3MW+ turbines by WPM 1 Progressing on moving supply chain footprint to low cost countries 2 4 Reductions in 2017 Efficiency Opex savings of 19% from efficiency program; Interest cost lower by c.28% post refinancing; cash interest cost at 30mn/yr (19%) Opex reduction (28%) Int reduction 5 Revenue development Services Service generates 16% of total revenues with double digit growth 10+ years of contract tenors and renewal rate of ~75% +15% 2015 2016 2017 4 1 Wind Power Monthly, 2. BNEF Feb 2018 for combined market share in onshore and offshore
1 Key highlights Performance in line with guidance Guidance 2017 Achieved 1.90-1.95bn 1.89bn Revenues Revenue slightly lower than expected due to minor project delays 2017 2017 Margins Adj. EBITDA around 8.0-8.5% Adj. EBITDA at 8.0% Achieved ~ 2.0bn ~ 1.8bn Two key order conversions delayed Firm order Intake 2017 2017 350 MW+ orders already converted in India & ANZ Financial targets in 2017 achieved 5
2 Senvion in EMEA and globally Senvion gaining market shares in key regions EMEA Region 2017 market share 1 Global (Ex China) 2017 market share 1 11.0% 4 6 (2016: 9.6%) 5.7% (2016: 4.9%) 17 GW Others 89% 34 GW Others 94.3% Selective global approach Aiming for significant market share gains in targeted new markets by 2019 Large player in all key markets Market share gains in Germany and France key current markets Source BNEF Report Feb 2018 based on commissioned windfarms; 1. Onshore and Offshore combined 6
2 Focus on higher growth markets 393% growth in orders from new markets Focused growth strategy in new markets Firm WTG order intake ( m): + 36% growth yoy Annual Installations (GW) CAGR Order intake ( m) Progress in new markets leading to achievement of 2019 targets Current markets -8.7% 10 7 2017 2020 New markets Offshore Current markets New markets +36% 1,776 306 1,304 Country Firm orders Order pipeline 4 Australia Nordics 1 South Cone 2 432 MW 117 MW* 395 MW Conditional orders 380 MW Multiple exclusivities and preferred supplier status in place for future volumes 17 +18.4% 28 1,159 755 India Others 3 131 MW 156 MW Aim to gain market share in key regions 715 ~4x 145 Total 1,230 MW+ 1,500 MW+ 2017 2020 CY 2016 CY 2017 (Includes firm and conditional orders as of December 2017 plus announced orders as of 15 th of March 2018) Strong project pipeline with exclusivity agreements further supports 2019 outlook Current markets: Austria, Belgium, Canada, Germany, France, Italy, Netherlands, Poland, Portugal, UK, New markets: Australia, Eastern EU countries, Egypt, India, Ireland, Japan, LatAm excl. Brazil, MENA, Nordics, Serbia Source: MAKE consulting, Q4 2017 1. Nordics = Sweden, Norway, Finland, 2. South Cone = LatAm ex Brazil, 3.Others = Eastern Europe, Japan, Ireland, Middle East and Africa, 4. Order pipeline is subject to usual market risks and is not a guarantee for further market share gains or final conversion into firm orders. *Nordics firm order contract won in 2016 and booked in revenues in 2017 7
3 Product philosophy driven by high level of modularity New modular products to drive margin recovery 2003-2014 Evolution of onshore turbines 2015 2017 (with modular approach) 2018 pipeline 2.xM 3MW+ 2.xM 3MW+ 2.xM 3MW+ IEC I 4.M 11x IEC II 2.M 1xx 4.M 14x IEC III 2.M 1xx 4.M 14x Higher AEP increase with much lower cost increase More product variety, with less component variety IRR multiplying effect Targeting cost reductions Competitive offering Project optimized turbines Region specific product fit 8
4 MOVE FORWARD Progress card 52mn fixed cost savings achieved Opex run rate Interest costs Supply chain transformation Consistent and sustainable reduction in Opex Opex ( m) -20% Net interest down by 28% 42% reduction in annual interest costs of high yield bond Net Interest ( m) 2.7 GW capacity; sufficient for growth Closed three factories in Germany Increasing sourcing from LCC (from sub 5% to 30%+) -18% -22% 56* -28% 47^ 45^ -17% 44^ 53 39 35 36 42 40** Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 DONE Q2 17 Q3 17 Q4 17 2016 DONE ^ Adjusted for IPO costs/transaction costs * Adjusted by shareholder loan interest ** Underlying interest costs without pre payment premium of earlier High yield bond and other related one time expenses of refinancing LCC = Low cost countries 2017 Increased proximity to growth markets 9
5 Growing Service business Efficient set-up to drive resilient and profitable growth Key results Key attributes Service revenue ( mn) Significant growth Consistent, high growth Increasing relevance of service offering CY16: 276m 72.6 65.4 65.5 72.8 +11.6% 72.6 CY17: 308m 88.8 78.8 68.2 High visibility from 2.5bn service order book High visibility 10+ years 2 average duration providing annuity-like revenue High renewal rate 1 (~75% last 3 years) Mar-16 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 GW under service +12.4% Dec-17 High margins and cash flow contribution Stronger contribution margin v/s turbine business ~16% share of revenues Higher FCF contribution 10.8 11.4 11.9 12.1 12.1 12.7 12.8 13.6 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Service provides a growing, annuity-like cash flow stream to the business Notes: 1.Turbine renewal rate of service contracts since 2016 based on quarterly data 2.Only includes active contracts and tenors weighted by no. of WTGs 10
2 Orders and installations
Senvion installations Installation rate in line with revenue plan Installations (MW) Germany France UK Other current markets Other new markets Offshore Annual Installation -16.1% 1,762 351 217 485 591 6 112 1,478 480 185 141 155 185 332 243 56 12 68 55 4 49 Q1-Q4 2017 installations 571 183 372 79 108 31 42 40 0 26 98 55 141 141 292 133 52 43 35 29 Decline in installations in line with revenue guidance Q4 installation rate mainly impacted by installation shifts from the 299 MW order in Chile to 2018 Final commissioning of Nordergrunde and Nordsee One offshore windfarms achieved in Q4 2017 CY 16 CY 17 Q1 17 Q2 17 Q3 17 Q4 17 12
Order book of 5.0bn Onshore order book improving Q4 17 1.2 0.3 1.5 Q3 17 1.0 0.5 1.5 Q2 17 1.1 0.5 1.6 Order book ( bn) Net Firm Orders Conditional Service Total 1.0 1.3 1.4 2.5 2.5 2.3 5.0 5.3 5.5 Q4 2017 split by geography Net firm orders at 1.5bn Figures in mn 1,471 Offshore 306 Q1 17 1.0 0.3 1.3 1.3 0.3 1.6 2.3 5.3 Q4 16 0.9 0.4 1.3 1.5 0.3 1.8 2.2 5.5 New markets 659 Q3 16 0.8 0.7 1.5 1.6 0.3 1.9 2.1 5.6 Onshore 1.2bn Q2 16 1.1 0.6 1.7 1.7 2.1 5.6 Germany 154 Q1 16 1.2 0.6 1.8 Q4 15 1.2 0.6 1.8 1.7 1.6 2.0 1.9 5.4 5.4 UK France Others 186 97 69 Q4 17 Offshore Onshore Note: Figures prior Dec 15 relate to Senvion GmbH Net Firm orders are confirmed orders minus PoC revenues already booked. Conditional orders are signed contracts where either building permit and/or grid connection and/or financing is missing. 13
Order intake growth of more than 36% yoy Growth mainly driven by new markets Firm WTG order intake ( mn) Offshore Others France Germany New markets Q4 +9% Offshore Onshore current markets Onshore new markets 36% growth yoy Q2 +106% Q3 +15% +36% New markets growth of 393% 586 Q1 +31% 458 306 155 353 269 284 292 20 117 84 39 11 113 142 36 97 73 147 54 149 169 119 122 61 12 86 41 31 53 5 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun 17 337 45 265 14 13 500 59 49 365 27 Sept 17 Dec-17 1,304 1,159 145 CY 2016 1,776 306 755 715 CY 2017 +393% 397 MW in LatAm 206 MW in ANZ 156 MW in Ireland, Eastern EU countries and Japan Pipeline continues to be strong 14
3 Financials 2017 Delivering on promises made
Key highlights Performance on target despite challenging environment ( mn) Adj. Q4 CY16 Adj. Q4 CY17 Adj. CY16 Adj. CY17 Revenue 757 580 2,210 1,890 Gross profits 192 141 619 538 Gross margin % 25.4% 24.2% 28.0% 28.5% Adjusted EBITDA 73 49 206 152 Adjusted EBITDA % 9.7% 8.4% 9.3% 8.0% Adjusted EBIT 56 30 142 86 Adjusted EBIT % 7.4% 5.1% 6.4% 4.5% Adjusted PAT 54 11 81 45 Net working capital % (3.7%) 2.5% (3.7%) 2.5% Revenues in line with guidance Stable gross margins; likely to be impacted by 1.5%-3% in 2018 EBITDA margin of 8.0% achieved in challenging market environment Net working capital influenced by Chilean project inventories and slightly lower order intake; further reduction expected to happen in Q1/Q2 2018 Cash on hand 441 235 441 235 Net Debt / EBITDA <0 1.1x <0 1.1x 16
Revenue development New markets starting to grow at a fast clip Revenue split 2016: 2.2bn Onshore 1.6bn Offshore 0.3bn Service 0.3bn Revenue split 2017: 1.9bn Onshore 1.2bn Offshore 0.3bn Service 0.3bn Onshore Offshore 364 263 73 29 Service 505 393 65 47 584 430 88 66 754 544 137 73 391 436 478 227 263 377 73 91 79 94 68 33 All figures in mn 577 359 89 128 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Other revenues at 5m for 2016 and 9m for 2017 Onshore revenue breakup ( mn) 1.619 610 397 192 420 CY16-36% 1.028 166 162 185 516 CY17 Current markets 2017: Current market revenues declined led by UK & Canada 2018: Revenues in Germany to shrink due to issues with auction systems +1,704% 198 52 89 11 37 21 CY16 CY17 New Markets Revenues from New markets grew led by Nordics Revenues likely to grow at a fast rate in 2018 led by Chile and Australia Others UK France Germany Others Nordics South Cone ANZ 17
Additional key performance metrics Cost ratios in line with expectations Material cost development ( mn) 1,563 28.5% 1,618 28.0% 1,359 28.5% Adj. COGS 497 Gross margin 317 Stable gross margins Likely to decline by 1.5%-3% in 2018 due to competitive pressures 25.4% 24.2% PF Adj CY15 CY16 CY17 Q4 CY16 Q4 CY17 Adj. COGS Gross margin Cost breakdown ( mn) -12% 122 131 135 121 127 18 117 116 119 14 20 13 17 15 15 19 47 45 44 53 39 35 36 42 62 66 64 64 71 66 65 57 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 D&A Q2 17 OPEX Q3 17 Personnel Q4 17 Sustainable Opex reduction driven by MOVE FORWARD program Employee costs likely to go up in 2018 due to build up of service business, new markets Further Opex reduction likely offset the increase in employee costs in 2018 Note: Financials adjusted for PPA, offshore provisions, IPO related costs. 18
Breakup of total Capex and R&D Achieving more within similar cost budgets Total intangible and tangible capex 1 ( mn) 1.5% 2.6% 2.2% 1.4% 2.7% 2.7% 35 46 43 30 60 51 Investments focused on the expansion of the blade facility and consolidation of nacelle facility in Portugal März-13 März-14 März-15 PF adj CY15 CY16 CY17 Senvion GmbH Senvion S.A. [%] Capex over LTM sales R&D expenditure ( mn) 1.8% 2.6% 3.0% 3.1% 3.1% 2.9% R&D spending in line with previous year 42 22 21 20 Mar-13 45 23 Mar-14 Senvion GmbH 58 19 22 23 26 39 45 45 42 Mar-15 67 68 68 PF adj CY15 [%] R&D over LTM sales Expensed CY16 Senvion S.A. Capitalised CY17 Key R&D spending focused on development of 3xM, 2XM platform Increasing product portfolio within the same R&D costs thanks to modularity and cost savings due to various measures such as insourcing of project managers, efficient certification management etc Note: 1. Excluding capitalised R&D. 19
Net working capital and cash flow summary Working capital to improve by H1 2018 Quarterly net working capital 1 evolution ( m) (4.7%) (6.4%) (101) (132) (2.7%) (57) (5.8%) (3.7%) (0.2%) (5) (83) (119) 99 4.6% 8 0.4% 47 2.5% Q4 impacted due to delayed order conversions Likely to improve by Q1/Q2 2018 on the back of order intake and commissioning of Chilean project Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar 17 Jun 17 Sep-17 Dec-17 Net working capital NWC 1 % of trailing 12 months revenue Quarterly cash flow evolution ( m) 185 23 (68) 64 14 (109) (173) 44 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar 17 Jun 17 Sep-17 47 Dec-17 Consistent cash flow generation excluding exceptional items Negative free cash flow in H1 2017 mainly driven by inventory for Chilean projects Free cash flow Operating cash flow Investing cash flow Positive free cash flow in H2 2017 Note: 1. Net working capital defined as current assets (adjusted for liquid funds and assets of disposal Group classified as held for sale) minus total current liabilities (adjusted for provisions, liabilities of disposal Group classified as held for sale and short-term loans and current portion of long-term loans). 20
4 Strategic roadmap and financial goals Enhancing efficiency to achieve 2019 targets
New markets Current markets Auction systems bring larger volumes at lower prices Prices stabilizing with Senvion gaining ground Markets dominated by auctions Onshore auction volumes (GW) /MWh 70 FIT 57 43 Volumes growing and prices now stabilizing 37 +24% 46 May-17 Aug-17 Nov-17 Feb-18 709 MW with avg bid price going up by 24% Govt discussing to add 1.4 GW extra auctions in 2018 Senvion increasing market share /MWh -12% 74 65 Stable market, auctions volume to flow into 2020 Senvion maintaining 10-20% market share +20.0% 20 24 INR/KWh 4.50 FIT 3.46 2.64 2.43 2018e 2.44 +17% 2.85 Indian government plans 10 GW of auctions between 2018 2020 Senvion with 131 MW orders, a healthy pipeline and increasing market share FIT Jan.- 17 Okt.- Gujarat Febr.- 17 18 Maha 2017 2018E Wind auctions in 2017 Auctions in previous years, no wind activity in 2017 $/MWh 59 2016 53 2016 41 2017 Decent auction prices Senvion gaining market share 100 MW of co-investment project Positive changes supporting 2019 outlook Source: Bloomberg auction overview & MAKE regional reports, Senvion Market Intelligence Prices correspond to the latest average auctions results in each country 22
High degree of comfort developing on 2019 volumes Closing gap on 2019 revenue targets Increasing visibility on 2019 revenues Key comments Service+Offshore New markets Current markets 2.6-2.7bn 1 Service and offshore growth largely covered by firm orders 3 2 Improving order pipeline in new markets 1.9bn 35% 1.8-1.9bn 25% 1 2 India: Gaining market share, additional upside if further auctions are conducted on time Argentina: Large market share likely in RENOVA 2 auction Australia: c. 600 MW of volume visibility based on orders in hand for 2019 11% ~40% Chile and North Africa: Exclusivities for large volumes 3 Germany 54% ~35% Market share growing from 7% to 10% in 2017 1 Extra volume expected if proposal to expand auction volumes by 50% go through 2017 2018 Guidance Service+ offshore New markets upside Germany upside potential 2019e Key risks Market developments delayed in India and Germany Delays in order conversions/postponements Expanding pipeline with market share gains 1 Onshore market share as per BNEF market share file released in Feb 2018 and Feb 2017 23
LCoE roadmap in place with early stages of cost outs Intensive efforts required in light of pricing pressure Product LCoE roadmap ready LCoE -16% 3.xM 12X Progress being made on cost outs Increasing sourcing from LCC 1 Agreements in place for generators and blades from China Sourcing agreements for towers and Gearbox from China also in place Key Risks Delays in new component sourcing Competition pressures on new turbines and components -4% Simplifying processes Delays in new product introductions 3.xM 14X EBC -12% Lower transport costs Lower crane and installation costs Risks of quality, testing period delays cannot be ruled out Reduction in BoP costs 2014 2016 2018 2020 Reduced time for installation Cost out plans initiated, but execution risks remain LCoE calculation based on reference project for Germany (6.5m/s at 140m, 8WECs), including all project cost from customer perspective 3.xM12x at 139m hub height 3.xM EBC at 130m/128m/126m hub height 1. LCC Low Cost Countries 24
Senvion 2018 guidance Margin impact less severe with stable revenues 2017 Guidance 2018 Onshore Offshore Service Revenues 1.89bn Shrinking current markets, offset by growth in new markets Revenues already in firm order book Double digit growth expected Revenues 1.80-1.90bn 2017 Guidance 2018 Pricing pressure Margin pressure Adj. EBITDA margin 8.0% Lower turbine ASPs Cost structure in the process of being adjusted Gross margins likely to impacted by 1.5%-3% Delivering on savings programme is essential Adj. EBITDA margin 5% - 6.5% 25
5 Key takeaways
Key takeaways 1 Performance in line with guidance 2 Market share gains followed by solid order intake from new markets 3 Expanding product portfolio within same R&D budgets and with a healthy product pipeline 4 Significant cost cuts achieved under MOVE FORWARD as promised 5 Service business continues to grow 27
MM tubines in France Appendix
Financial calendar Financial Calendar 2017 Event Date Annual Results 2017 March 15, 2018 Q1 2018 Results May 15, 2018 Your Investor Relations Team: Dhaval Vakil Vice President Capital Markets and M&A Phone UK: +44 20 7034 7992 Mobile: +44 7788390185 Email: dhaval.vakil@senvion.com Anja Siehler Sr. Manager Capital Markets Phone Lux: +352 26 00 5285 Mobile: +49 152 21817093 Email: anja.siehler@senvion.com Annual General Meeting May 31, 2018 For general queries: IR@senvion.com Q2 2018 Results August 14, 2018 Q3 2018 Results November 14, 2018 29
Income statement 2017 Bridge between reported and adjusted earnings mn Q4 17 Adj. Adj Q4 17 CY17 Adj. Adj CY17 Revenue 580 580 1,890 1,890 Total performance 458 458 1,893 1,893 Material expenses (317) (317) (1,355) (1,355) Q4 2017 1 Key adjustments Includes PPA impact of 15.2mn Gross profit 141 141 538 538 Gross margin % 24.2% 24.2% 28.5% 28.5% Other operating income 10 10 30 30 Personnel expenses (57) (57) (260) (260) 2 3 Includes 0.6mn restructuring provision reversed Includes positive PPA impact of 5.5mn Opex (42) (42) (153) (153) CY 2017 FX gain/loss (3) (3) (4) (4) EBITDA 49 49 152 152 EBITDA % 8.4% 8.4% 8.0% 8.0% D&A (34) 1 15 (19) (158) 4 92 (66) EBIT 14 29 (6) 86 EBIT% 2.4% 5.0% (0.3%) 4.5% Extraordinary Expenses 1 2 (1) (0) (54) 5 54 0 Net interest (10) (10) (61) 6 20 (41) Taxes (3) 3 (6) (8) 28 7 (28) (0) Net profit (Con. Ops) 2 11 (93) 45 PAT % 0.3% 1.8% (4.9%) 2.4% 4 5 6 7 Includes PPA impact of 92.1mn Includes 54.1mn of restructuring measures Includes 20.4mn of bond refinancing costs Includes positive PPA impact of 28.3mn 30
Senvion S.A. Balance sheet Assets ( mn) Dec 17 Sep 17 Dec 16 Liquid Funds 235 190 441 Current Assets (excluding liquid funds) 774 804 814 Receivables 206 153 257 Inventories 490 560 430 Others 78 91 127 Property, plant & equipment 224 234 222 Other intangible assets 527 541 604 Other non current assets* 35 40 19 Deferred tax assets 13 0 0 Total 1,808 1,808 2,101 Liabilities ( mn) Dec 17 Sep 17 Dec 16 Loans (short term, long term and High Yield Bond) 400 401 407 Current liabilities (excluding provisions and short term loans) 728 796 897 Advance payments received 119 159 189 Trade payables 340 381 431 Gross amount due to customers for contract work as a liability 139 119 122 Others 131 137 155 Provisions 300 247 289 Deferred tax liability 150 140 173 Total equity capital 230 225 334 Total 1,808 1,808 2,101 * - Includes assets held for sale 31
Senvion S.A. Cash flow summary Senvion S.A. Senvion S.A. Senvion S.A. ( mn) Q4 CY16 Q4 CY17 CY16 CY17 Result before income taxes (38) 5 (89) (121) Adjustments for Senvion S.A. Depreciation on property, plant and equipment, amortization of intangible assets and write-offs on financial assets 43 35 167 158 Interest income (0) (2) (1) (4) Interest expenses 14 13 64 65 Increase/decrease in provisions 76 53 71 10 Change in working capital (35) (27) (23) (100) Interest received 0 3 1 4 Interest paid (14) (18) (40) (68) Income tax paid/received (0) (3) (12) (36) Cash flow from operating activities 46 57 138 (91) Cash receipts from the sale of property, plant and equipment, intangible and other long-term assets 1 (0) 3 3 Cash payments for the purchase of intangible assets (13) (8) (50) (42) Cash payments from purchase of property, plant and equipment and other long-term assets (20) (2) (58) (59) Cash payments from loans granted to related parties 0 0 0 0 Acquisition of subsidiary: Net of cash acquired (0) (1) (0) (1) Cash flow from investing activities (32) (11) (105) (99) Acquisition of treasury shares (4) 0 (7) (8) Net Cash repayments of amounts borrowed / repayments (1) (0) (5) (4) Cash flow from financing activities (5) (0) (12) (12) Increase/decrease in cash and cash equivalents 9 46 20 (203) Cash and cash equivalents at the beginning of the period 425 184 413 434 Cash and cash equivalents at the end of the period 434 231 434 231 Liquid funds 441 235 441 235 Short-term bank liabilities (8) (5) (8) (5) Cash and cash equivalents at the end of the period 434 231 434 231 32
Overview of PPA Adjustments Net PPA booked in CY17 ( mn) Expected yearly P&L effects 1 ( mn) 64 Q4 17 10 Dez.-17 64 Q3 17 18 Dec-18e 28 Q2 17 18 Dec-19e 28 Q1 17 18 Dec-20e 27 CY 2017 Notes: 1. Including deferred tax impacts and is not the complete schedule; assumed group tax rate of 29.935% for calculations. Source: Company information; Deloitte analysis. 33
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