EAM Solar

EAM SOLAR ASA Q4 & FULL YEAR 2018

26 February 2019

Full year power production estimate of 12,608 MWh, 5% less than 2017.
Electricity sales revenue 2018 of EUR 4,157m, 1,3% less than in 2017.
Average market price of electricity increased in 2018 to EUR 59,5 per MWh from EUR 48,6 per MWh in 2017.
Average total sales price of electricity in 2018 was EUR 342,7 per MWh, an increase of 8% from 2017.

Revenues higher due to higher electricity prices and one-offs
First year with positive EBITDA since 2014.
Costs of operations approximately EUR 170k higher than "normal" due to thefts in South Italy.
SG&A higher due to legal fees and taxes
Full year gross litigation costs of EUR 2,7 million, approximately EUR 720k higher than budgeted.
Net litigation costs of EUR 1,5 million after Therium contribution of EUR 1,1 million.
Management costs lower than budget.

EUR	Q4 2018	Q4 2017	2018	2017	Guidance 2018	Difference	%
Power production (MWh)	1 981	2 110	12 609	13 274	13 244	-635	-5%
Revenues	795 576	678 946	4 321 305	4 213 335	4 171	150	4%
Cost of operations	-155 559	-273 490	-657 459	-769 196	-637	-20	3%
Sales, general and administration expenses	-387 718	-497 491	-1 414 796	-1 687 671	-1 201	-214	18%
Legal costs	-274 398	1 347 791	-1 547 767	-6 648 537	-1 389	-159	11%
EBITDA	-22 098	1 255 757	701 283	-4 892 069	944	-243	-26%
Depreciation, amortizations and write downs	-466 387	-627 402	-1 864 635	-1 908 805
EBIT	-488 486	628 355	-1 163 352	-6 800 874
Finance income	790 019	1 150 087	1 175 812	2 879 014
Finance costs	-214 916	-414 608	-1 605 557	-2 782 335
Profit before tax	86 617	1 363 834	-1 593 098	-6 704 195
Income tax gain/(expense)	-167 597	-506 632	-297 888	-510 198
Profit after tax	-80 980	857 202	-1 890 985	-7 214 393

Main legal processes in Q4'2018 & H1'2019

1) Criminal court of Milan

2) Arbitration proceedings in Milan
3) Proceedings commencing against UBI Leasing
4) Defamation claim from Aveleos dismissed by Luxembourg Court
5) Fallout from bankruptcy proceedings in Milano with dismissal of Aveleos claims against bankrupt SPV

(Further comments given orally reflecting company reporting)