EAM Solar

Earnings Release • Nov 23, 2016

3RD QUARTER 2016

23 November 2016

HIGHLIGHTS Q3 2016 REPORT

• 6 power plants in normal operations
• 17 power plants permanently shut down due to court ruling by TAR
• Quarterly power production of 4.32 GWh 4.8% above budget
• YTD power production (6 power plants) of 10.3 GWh 0.6% below budget
• Reported EBITDA at a loss of EUR 8.5 million YTD
• Core EBITDA from 6 power plants of EUR 2.3 million YTD
• Debt restructuring with reduced interest effectuated from September

Legal proceedings

• Criminal Court of Milan confirms Enovos, Avelar (and Aveleos), as financially liable for economic damages
• 5 SPVs affected by criminal proceedings filed for voluntary liquidation 22 September 2016
• Arbitration for annulment of acquisition agreements commenced

	Unaudited	Unaudited	Unaudited	Unaudited	Audited
EUR	Q3 2016	Q3 2015	9M 2016	9M 2015	2015
Revenues	1 345 812	4 274 248	3 761 483	10 904 926	6 130 955
Cost of operations	-223 848	-510 170	-1 018 777	-1 260 960	-1 605 821
Sales, general and administration expenses	-359 171	-833 315	-1 211 294	-2 211 297	-3 113 255
Acquisition and transaction costs	-8 471 046	-1 831 077	-10 028 255	-2 179 772	-20 360 928
EBITDA	-7 708 253	1 099 686	-8 496 842	5 252 897	-18 949 049
Depreciation, amortizations and write downs	-1 013 790	-1 351 447	-6 260 622	-3 996 045	-49 573 204
EBIT	-8 722 043	-251 761	-14 757 465	1 256 852	-68 522 253
Finance income	732 836	2 716 529	856 893	3 049 409	3 963 924
Finance costs	-83 976	-1 152 816	-3 456 514	-4 278 482	-5 472 255
Profit before tax	-8 073 183	1 311 952	-17 357 086	27 779	-70 030 584
Income tax gain/(expense)	11 611	10 908	29 820	-312 916	167 027
Profit after tax	-8 061 572	1 322 860 -17	327 266	-285 137 -69	863 557

9 months P&L comments

• Cost reduction measures in CoO and SG&A starting to take effect
• Legal costs of 1.4 million
• Accumulated write-offs of EUR 8.6 million related to criminal affected SPV's (intercompany debt etc.)
• Ordinary depreciation of EUR 1.4 million
• Final asset amortizations of EUR 4.8 million

	Unaudited	Unaudited	Audited
EUR	Q3 2016	Q3 2015	2015
ASSETS
Property, plant and equipment	23 488 414	81 703 792	34 436 689
Deferred tax asset	0	1 034 820	0
Intangible assets	327 012	962 427	277 089
Other long term assets	412 278	344 791	1 598 603
Non-current assets	24 227 704	84 045 830	36 312 381
Receivables	14 699 995	25 122 527	21 744 787
Other current assets	114 398	541 801	1 076 836
Cash and short term deposits	2 272 900	7 659 559	10 718 169
Current assets	17 087 293	33 323 887	33 539 792
TOTAL ASSETS	41 314	997 117 369 717	69 852 173

	Unaudited	Unaudited	Audited
EUR	Q3 2016	Q3 2015	2015
EQUITY AND LIABILITIES
Issued capital	6 214 380	6 214 380	6 214 380
Share premium	24 606 370	24 606 370	24 606 370
Paid in capital	30 820 750	30 820 750	30 820 750
Translation differences	-7 432 978	-4 935 161	-8 869 682
Other equity	-6 655 228	22 018 509	-48 103 947
Other equity	-14 088 206	17 083 348 -56	973 629
Total equity	16 732 544	47 904 098 -26	152 879
Leasing	5 914 159	9 893 382	6 135 377
Long term loan - interest bearing	7 533 449	6 207 227	7 632 405
Other non current liabilities	0	0	1 079 505
Total non-current liabilities	13 447 608	16 100 609	14 847 287
Trade payables	1 954 311	7 914 766	3 089 199
Tax liabilities	1 135 015	0	807 902
Short term financing - interest bearing	0	35 327 439	41 063 191
Other current liabilities	8 045 518	10 122 805	36 197 476
Total current liabilities	11 134 844	53 365 010	81 157 768
Total liabilities	24 582 452	69 465 619	96 005 055
TOTAL EQUITY AND LIABILITIES	41 314	997 117 369 717	69 852 176

Annual normal operations

• Power production 12.5GWh
• Revenues EUR 3.7m
• Operating costs EUR 1.2m
• EBITDA EUR 2.5m to cover legal costs and financing

Finished proceedings

• GSE termination decision (Rome)
• Financial restructuring of criminal affected SPVs (Milan)

Ongoing proceedings

• Criminal proceedings (Milan)
• Bankruptcy proceedings (Milan)
• Arbitration proceedings (Milan)
• Standstill Agreement proceedings (Luxembourg)
• Criminal complaint (Luxembourg)
• Other legal proceedings (Italy, Luxembourg & Switzerland)