EAM Solar — Earnings Release 2019

Feb 25, 2020

EAM SOLAR ASA Q4 & FY 2019

25 February 2020

AGENDA

• 1. Fourth quarter and year 2019 results
• 1. Status litigation activities
• 1. Q&A

• Core power plant operations yields positive EBITDA. Power production slightly below budget for the full year (-1,2%).
• Litigation activity draining cash resources
• Varmo & Codroipo sales of NOK 137 million yields sales gain on group level of NOK 25m and NOK 53m for parent company. Initial net cash to group after repayment of debt of approx. NOK 80m.
• Energeia AS in process of sales or refinancing, financial closing of processes expected in H1'2020.
• No financial offset for GSE's termination decision on FITcontract for ENFO25 based 73 external labels missing on 4.300 PV modules conducted. GSE's decision is considered illegal. Formal legal process on the merits of the case is expected to take 12 to 18 months before hearing in administrative court in Lazio. Alternative actions under consideration.
• Overall costs level significantly reduced going forward.

	Unaudited	Unaudited	Unaudited	Audited
EUR	Q4 2019	Q4 2018	2019	2018
Revenues	229 784	795 576	3 166 026	4 305 450
Cost of operations	-119 843	-155 559	-409 428	-658 559
Sales, general and administration expenses	-89 600	-387 718	-1 133 861	-1 438 771
Legal costs	-334 519	-274 398	-1 222 577	-1 533 656
EBITDA	-314 177	-22 098	400 161	674 463
Depreciation, amortizations and write downs	-548 180	-466 387	-2 041 259	-1 864 499
EBIT	-862 357	-488 486	-1 641 098	-1 190 036
Finance income	539 082	790 019	3 487 083	956 997
Finance costs	23 008	-203 299	-1 688 218	-1 411 534
Profit before tax	-300 267	98 234	157 767	-1 644 573
Income tax gain/(expense)	-61 240	-167 597	-206 479	-388 212
Profit after tax	-361 507	-69 363	-48 712	-2 032 786
Adjusted EBITDA	20 342	252 299	1 622 738	2 208 120

EAM SOLAR ASA GROUP BALANCE SHEET SEPT 2019

• Sales of Varmo & Codroipo power plants improves group solidity in the quarter.
• Liquidity will be strongly improved during forthcoming 6 month period.
• Solidity improved on group level with external debt reduced to 25%.
• Net working capital of EUR 8,6 million.
• Parent company 100% equity financed with NOK 196 million in book equity.

	Unaudited	Audited
EUR	2019	2018
ASSETS
Property, plant and equipment	6 812 546	19 845 162
Deferred tax asset	255 324	581 743
Intangible assets	263 861	283 293
Other long term assets	1 262 881	2 115 906
Non-current assets	8 594 613	22 826 104
Receivables	9 114 115	1 865 385
Other current assets	1 392 256	1 818 798
Cash and short term deposits	365 687	843 589
Current assets	10 872 058	4 527 772
TOTAL ASSETS	19 466 671	27 353 876
EQUITY AND LIABILITIES
Issued capital	8 126 110	8 126 110
Share premium	27 603 876	27 603 876
Paid in capital	35 729 986	35 729 986
Translation differences	-6 893 717	-6 375 607
Other equity	-17 695 866	-17 647 156
Other equity	-24 589 583	-24 022 763
Total equity	11 140 402	11 707 223
Leasing	4 919 349	5 196 505
Long term loan - interest bearing	0	6 354 403
Deferred tax liabilities	623 308	976 353
Other non current liabilities	531 033	668 754
Total non-current liabilities	6 073 690	13 196 015
Trade payables	2 252 578	2 448 362
Tax payables	0	2 275
Total current liabilities	2 252 578	2 450 637
Total liabilities	8 326 268	15 646 652
TOTAL EQUITY AND LIABILITIES	19 466 671	27 353 876

• 1) Criminal Court of Milano decision published in English translation this morning on our web site.
• 2) Criminal Court of Milano: Appeal of Criminal Court decision delivered
• 3) UBI Leasing claim: Hearing conducted in January next hearing in May
• 4) Collection procedure on EUR 5 million award from Criminal Court of Milan still pending awaiting issuance of documents from the Court.
• 5) Arbitration award appeal: Next hearing in the case scheduled for January 2021.
• 6) Execution on criminal complaint and civil law suit against Enovos and Renova groups ongoing.

EAM Solar ASA Dronningen 1 NO -0287 Oslo NORWAY

Phone: +47 9161 1009 E-mail: viktor@eam.no Web: www.eam.no