EAM Solar

Earnings Release • Nov 15, 2018

EAM SOLAR ASA THIRD QUARTER 2018

15 November 2018

• 1. Power production 9M'2018
• 1. 9M'2018 financial results
• 1. Legal status update
• 1. Cost of Solar PV energy in Europe

November 2018

5.Q&A

POWER PRODUCTION 9M 2018

• Power production first 10 months of 11,518 MWh.
• Full year power production estimate of 12,675 MWh, 3,5% behind 2018.

• Prognosis electricity sales revenue 2018 is EUR 4,158.

• Revenues 9M in line with 2017 since lower production volume is offset by higher market price of electricity

• Costs of operations EUR 170k higher than anticipated due to theft in South Italy.
• SG&A in line with expectations
• Full year gross litigation costs expected to be EUR 600k higher than budget.
• Debt interest expenses of EUR 555k, remainder of net financial cost mainly related to non-cash NOK/EUR balance sheet currency effect.

EAM Solar ASA 9 months 2018	9M 2018	9M 2017	FY'2017
Power production (kWh)	10	11	13
	627	163	274
	596	650	000
Revenues	3	3	4
	525	534	213
	730	389	335
FIT	2	3	3
	883	011	567
	023	354	916
Electricity market revenues	599	523	645
	492	035	419
Other revenues	43 215	0	0
Operating costs	-2	-9	-9
	796	649	105
	108	033	404
Cost of operations	-494	-495	-769
	704	928	196
Sales, General & Administration	-1	-1	-1
	027	186	687
	480	251	671
Gross Litigation costs	-2	-1	-2
	687	731	559
	924	060	931
Litigation funding (Therium)	1 414 000	191 000	508 305
Receivables write down	0	-6 426 794	-4 596 911
EBITDA	729 622	-6 114 644	-4 892 069
% EBITDA margin	21%	-173%	-116%
Depreciation	-1	-1	-1
	398	281	908
	329	403	805
EBIT	-668 707	-7 396 047	-6 800 873
% EBIT margin	-19%	-209%	-161%
Net financial costs	-1 005 480	-721 682	96 679
Pre tax loss	-1	-8	-6
	674	117	704
	187	729	194
% pre tax margin	-47%	-230%	-159%

Two main legal processes ongoing in 2018

1) Criminal court of Milan

2) Arbitration proceedings in Milan

(Further comments given orally reflecting company reporting)