EAM Solar — Earnings Release 2018

Feb 26, 2019

EAM SOLAR ASA Q4 & FULL YEAR 2018

26 February 2019

• 1. Power production 2018
• 1. FY'2018 P&L
• 1. Legal status update

POWER PRODUCTION 2018

• 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.

FY 2018 P&L

• 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)