Alerion Cleanpower — Investor Presentation 2016

Mar 14, 2016

FY 2015 RESULTS

Conference Call Milan, 14 March 2016

Highlights

	2014	2015
Gross Installed Capacity (MW)	306.8	306.8
Consolidated Capacity (MW including Joint Ventures)	253.3	270.3
Fully Consolidated Capacity (MW excluding Joint Ventures)	199.8	233.8
Fully Consolidated Energy Production (GWh)	284.7	309.7	+8.8%
Operating revenues (m€)	41.8	44.3	+6.0%
EBITDA (m€)	22.6	26.0	+15.0%
EBIT (m€)	(0.2)	4.0	+4.2 m€
Group Net Result (m€)	(26.8)	(8.6)	+18.2 m€
Alerion Clean Power S.p.A. Net Result (m€)	0.1	2.3	+2.2 m€
Net Financial Position (m€ including derivatives) Net Financial Position (m€ excluding derivatives)	201.9	205.4 188.5	+3.5 m€
Change in Net Financial Position, excluding derivatives and effects of Agrigento plant purchase (m€)		(12.1 m€)
Dividend proposed (€/share)	0.045	0.045

Production

Quarterly Gross production (GWh)

4Q 2015 Italian wind production decreased by 18% vs 4Q 2014 (source Terna)

Revenues and EBITDA

Consolidated results (m€)	2014	2015
Operating revenues	41.8	44.3	+2.5
Other revenues	4.1	2.2	(1.9)
Operating costs, of which severance costs	(22.9) -	(19.5) (0.5)	+3.4 (0.5)
Results of Joint Ventures	0.4	0.6	+0.2
Provision for risks, of which Real estate and Photovoltaic business	(0.8) -	(1.6) (0.9)	(0.8) (0.9)
EBITDA	22.6	26.0	+3.4

Cost reduction and operational streamlining

2015 actionsimplemented:

• Line-by-line cost cutting (corporate and operating)
• FTE reduced by 30% (2016 vs 2014)
• O&M renegotiations
• Extraordinary maintenance on Agrigento plant
• New HQ
• More than 90% of Opex already contracted
• Tax optimization: structure rationalization, IMU decrease

Simple and low-risk cost structure:

• Maintenance Capex fully included in Opex
• No exposure to raw material prices

Ebitda Bridge Analysis

* Agrigento, and extraordinary not included

Ebitda: quarterly performance

From EBITDA to Net Results

Consolidated results (m€)	2014	2015	D (m€)
EBITDA	22.6	26.0	+3.4
Depreciation and amortization	(16.5)	(19.8)	(3.3)
Write-offs	(6.3)	(2.2)	+4.1
EBIT	(0.2)	4.0	+4.2
Net interest expenses, of which related	(30.5)	(15.9)	+14.6
to project financing and derivatives repayments	(16.0)	(0.5)	+15.5
Other financial charges,	(3.7)	(1.4)	+2.3
of which in 2015 related to write-offs of Romanian assets		(3.0)
EBT	(34.4)	(13.3)	+21.1
Taxes	6.6	4.3	(2.3)
Net result	(27.8)	(9.0)	18.8
Net result of the Group	(26.8)	(8.6)	18.2
Headquartes sale in 2015:
 Write off: -2.0 m€  Tax effect: +3.5 m€
 Net effect: +1.5 m€

Balance Sheet

Balance Sheet (m€)	FY 2014	FY 2015	Change	NFP (m€)	FY 2014	FY 2015	Change
Fixed asset	299,5	306,8	7,3	Cash and Cash Equivalents	47,9	28,2	(19,8)
Other non current assets, of which	19,4	6,8	(12,6)	Other Financial Receivables	15,4	5,7	(9,7)
receivables for electricity and incentives	14,8	14,1	(0,7)	Total Activities	63,3	33,9	(29,4)
Net Invested Capital	318,9	313,6	(5,3)	Banks Debt	(229,2)	(87,1)	142,0
				Bond	-	(133,4)	(133,4)
Shareholders' Equity	114,6	105,4	(9,1)	Other Financial Debts	(2,2)	(1,9)	0,3
Minority Shareholders' Equity	2,4	2,8	0,3	Total Liabilities	(231,4)	(222,4)	8,9
Total Equity	117,0	108,2	(8,8)
				NFP excluding Derivatives	(168,1)	(188,5)	(20,4)
Cash and Cash Equivalents	47,9	28,2	(19,8)
Other Financial Assets and Liabilities	(249,8)	(233,6)	16,2	Derivatives	(33,8)	(16,9)	16,9
Net Financial Position	(201,9)	(205,4)	(3,6)	Net Financial Position	(201,9)	(205,4)	(3,5)
Equity and Net Financial Position	318,9	313,6	(5,3)

NFP Bridge Analysis

2014 Debt breakdown 2015 Debt breakdown

Strategic guidelines FY 2015 Results

1

Cost reduction and operational streamlining

Operating Margin approx. 70%

2 Financial discipline

Pursuit of economies of scale, also through M&A 3

Disclaimer

• This document has been prepared solely for the use at investors and analysts meetings
• This document does not constitute an offer or an invitation to purchase or subscribe any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever
• Some information contained herein and other material discussed at the meetings may include forward looking information based on Alerion current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them
• Forward looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward looking statement. Such factors include, but are not limited to: changes in global economic business, changes in the price of certain commodities including electricity and gas, the competitive market and regulatory factors
• Moreover, forward looking statements are valid only at the date are made