ENCAVIS AG — Call Transcript 2017

Aug 31, 2017

Capital Stage AG – Conference Call FY2016

In a Nutshell: Milestones 2016 / Outlook 2017

Financial Year 2016

• ─ Operating results on target with Guidance 2016
• ─ Dividend increased to EUR 0.20 (2016: EUR 0.18)
• ─ New organic acquisitions of Solar- and Windpark-Portfolio of about >124 MW and take-over of Chorus
• ─ Poor wind performance and base effect from good PV year 2015 weigh on operating performance

CHORUS Takeover

• ─ One of the biggest independent IPPs in Europe
• ─ Increased portfolio to >1.2 GW
• ─ Q4 2016 of CHORUS fully consolidated into FY16 results
• ─ Improved position on acquisition markets and access to new group of investors
• ─ Strong position within the SDAX; increased liquidity of Capital Stage share
• ─ New business segment "Asset Management"
• ─ Squeeze out initiated

Positive Outlook 2017

• ─ Further growth in FY2017 expected; Guidance 2017 confirmed
• ─ Available equity for investment of some EUR 60m plus add. Credit facilities of EUR 30m; translates into an investment volume of about EUR 360m
• ─ Well filled pipeline; exclusivity agreements with seven projects of some 170 MW
• ─ Market consolidation leaves opportunities for inorganic growth
• ─ Dividend strategy 50% increase until 2022

Operating Results 2016 on target with Guidance

Operating P&L (million, €)	Guidance	One-time effects CHORUS take over	Operating Results	Δ in %
Reporting period	2016	2016	2016
Sales	>140		142	1%
EBITDA	>104	4.6	106	2%
EBITDA/Sales	74%		75%
EBIT	>60	4.6	62	3%
EBIT/Sales	43%		43%
Operating Cash Flow	>98	8.5	104	6%
Operating CF/Sales	70%		73%

Track Record: Portfolio

The total installed capacity amounts to > 1.2 GW (as of March 2017)

Portfolio overview

(MW)	Solar		Wind
	Capital Stage	Asset Mgt.	Capital Stage	Asset Mgt.	Total
Germany	251	7	183	134	575
France	202	12	36	73	323
Italy	154	7	6	-	167
UK	88	-	-	18	106
Austria	-	-	30	-	30
Finland	-	-	-	13	13
Sweden	-	-	-	10	10
Total	695	26	255	248	1,224

New regions with CHORUS acquisition

Adjustments to IFRS figures (IAS 8)

Settings: Harmonization of Accounting Standards in FY16

• New auditor for the financial year in 2016
• Creating a mutual accounting landscape Capital Stage/CHORUS
• Creating a clear balance sheet in line with the new auditor and latest IFRS standards

Findings: Inaccuracy in Defferred taxes (IAS 8)

• For the purchase price allocation in the form of intangible assets for French PV parks acquired in 2014 and the corporate accounting of the goodwill for one Italian park no deferred tax had been activated in accordance to IFRS accounting standards
• Inaccuracy in terms of IAS 8

Effects: IFRS-related adjustments with no effect on operational figures or cashflows

• Voluntary adjustment with third column on the balance sheet with effect on 01.01.2015
• Correction is activated on 01.01.2015 through equity, negative impact on IFRS result for FY2014 and positive effect on IFRS result for FY2015 and following years until 2034
• Pure IFRS-related accounting adjustments with no effect on operating key figures, cashflows and IRRs

Adjustments to IFRS figures (IAS 8)

Effects in the IFRS Balance Sheet
P&L positions	01.01.2015 in t€	31.12.2015 in t€
Other operating income	-10,740	1,326
Depreciation	-997	0
Tax	197	5,574
Total	-11,540	6,900
BS item	01.01.2015 in t€	31.12.2015 in t€
DTA	0	6,288
DTL	11,540	612
Total	11,540	6,900

Actual vs actual operational figures

Operating P&L (thousand, €)	Actual	Actual	Delta
Reporting period	2015	2016
Sales	112,802	141,783	26%
Other income	1,180	3,553	201%
Material costs	-921	-1,326	44%
Personnel costs	-5,576	-8,380	50%
Other costs	-20,658	-29,565	43%
EBITDA	86,827	106,065	22%
EBITDA/Sales	77%	75%
Depreciation	-31,429	-44,475	42%
EBIT	55,398	61,590	11%
EBIT/Sales	49%	43%
Financial costs	-29,636	-38,683	31%
EBT	25,726	22,907	-11%
EBT/Sales	23%	16%
Financial result	-29,636	-38,683	31%
Tax	-2,366	-2,420	2%

EAT	23,396	20,487	-12%
EAT/Sales	21%	14%

Portfolio: Wind and PV performance FY16

Strong growth of group not fully reflected in sales due to meteorological effects

Normalization of sales, in t€

Operating Figures: EBT Performance 2016

Poor wind performance weighs on operating EBT in FY16

From target EBT to actual EBT in line with growth in revenues, m€

IFRS Figures: P&L 2016 vs 2015

IFRS P&L (in TEUR)	Actual	Actual	Delta
Reporting period	2015	2016	2015/ 2016
Sales	112,802	141,783	26%
Other income	19,216	29,399	53%
thereof PPA	12,009	21,322	78%
Material costs	-921	-1,326	44%
Personnel costs	-5,758	-8,541	48%
Other costs	-23,565	-37,562	59%
EBITDA	101,774	123,753	22%
Depreciations	-47,888	-64,028	34%
EBIT	53,886	59,725	11%
Financial costs	-33,165	-48,774	47%
thereof FX expenses from currency translation	-1,731	-11,751	579%
EBT	20,721	10,951	-47%
Current taxes	-2,366	-2,420	2%
Deferred taxes	7,889	3,277	-58%
EAT	26,244	11,808	-55%

IFRS Figures: EBT performance 2016

Poor wind performance, base effects from a good PV year 2015 as well as consolidating only the traditionally weaker Q4 of CHORUS weigh on EBT (IFRS) in FY16

Target EBT explanation on IFRS level, m€

161 Mio. Euro financing transactions since end of 2015

Many smaller financing transactions enables finetuning of equity ratio

Capital Stage – Balance sheet as of Dec. 31, 2016

The growth story continues on our balance sheet

Equity ratio above long-term target

The improved equity ratio offers further debt financing capabilities in the group

Equity ratio above long-term target >25%

Attractive and transparent dividend policy

Growing dividend reflects the development of the cashflows in the PV/ wind parks

Dividend 2016: Increased to EUR 0,20 Dividend: 50% nominal increase in 2021

• Continuous annual increase of dividend resulting in a dividend of 30 ct. in 2021 (+50%) based on existing solar and wind parks (March, 31, 2017)
• Dividend strategy reflects the increase in cash flows from the solar and wind parks
• Further acquisitions of solar and wind parks will positively contribute to the dividend potential

Offered as a scrip dividend which leaves full flexibility to investors

Market Position: Improved capital market profile

Capital Stage with higher visibility, improved index rating, and broadened research coverage

• Increased free float market cap and liquidity
• Improved index ranking in the SDAX
• Wider research coverage due to increased market capitalization and liquidity
• LTM Daily Trading Volume of 135.137 (XETRA) shares on average

Strong increase in liquidity of CSAG stock

Capital Stage share liquidity increased positively; special effects weighted on CSAG stock price in 2016/beginning 2017

Capital Stage – Guidance 2017

Guidance for the full FY2017

• Growth continues in 2017
• Organic and inorganic growth

• Strong pipeline / exclusivity for projects seven with some 170 MW

• "Firepower" of EUR 60m equity which is about EUR 250M in investment volume

• Improved equity ratio frees debt capacity to long-term equity target range of > EUR 80m

in €m	FY2016	FY2017 (e)*	yoy in % (e)
Revenues	141.8	> 200	> +40
Operating EBITDA	106.1	> 150	> +45
Operating EBIT	61.6	> 90	> +50
Operating Cashflow	103.8	> 140	> +40

(e) = expected

Note: Operational KPIs have been adjusted for one-time effects related to the takeover of CHORUS by Capital Stage. These sum up to ~4.6m€ (EBITDA/EBIT) and ~8.5m€ in operating cashflow; Operational figures are solely based on profitability and do not reflect IFRS-related measurement effects; *Guidance Capital Stage 2016 only incorporates the 4th quarter of CHORUS

Contact

IR Contact

Capital Stage AG Till Gießmann Head of IR & PR Große Elbstraße 59 22767 Hamburg, Germany

fon: +49 (0)40 378 5620 fax: +49 (0)40 378 562 129 Email: IR@capitalstage.com www.capitalstage.com

The information provided in this document has been derived from sources that we believe to be reliable. However, we cannot guarantee the accuracy or completeness of this information and we do not assume any responsibility for it. Capital Stage AG assumes no liability for any errors or omissions or for any resulting financial losses. Investments in capital markets, in particular in stock markets and futures markets, are fundamentally associated with risks and a complete loss of the invested capital cannot be ruled out. Recommendations provided herein do not represent an offer to buy or sell and are not intended to replace comprehensive and thorough advice before making a decision to buy or sell. Copies of the content of this presentation, in particular prints and copies or publications in electronic media, will only be authorised by written consent from Capital Stage AG.