ENCAVIS AG

Investor Presentation • Nov 1, 2018

Welcome to the world of Encavis!

Encavis AG, Hamburg, Germany, November 2018

We are a leading European independent power Producer from renewable energy sources.

Our generation capacity of solar and wind parks sums up to > 1.9 GW – and growing. We are listed on the German stock exchange and member of the SDAX Index.

TOP 70 EUROPEAN SOLAR PV PORTFOLIO OWNERS 2018*

Encavis #1 among the top 70 European solar PV portfolio owners

COMPELLING REASONS TO INVEST IN ENCAVIS …

> Leading independent European IPP in the renewable sector

• Generation capacity of > 1.9 GW

• Market capitalization > 780 mEUR

• Equity ratio of ~27% (06/30/2018)

> Valuable portfolio, low-risk substance and low-risk profile

173 PV/67 wind parks with long-term Feed-in-tariffs/PPAs > Attractive non-recourse financing conditions on project level > Ready-to-build/turn-key projects and parks in operation

> Long-term, attractive dividend policy

Nominal dividend to increase by 50% until 2021

Dividend offered as scrip dividend

> Forward-looking sustainable investment in a dynamic market

• Strategic alliances with top project developers

• Fast growing PPA-market

• Shaping the industry: customized solutions at competitive long-term fixed prices with minimal carbon footprint

ENCAVIS SUCCESS STORY – STEADY AND DYNAMIC GROWTH PATH

Strong financials

Financial year 2017

ENCAVIS STRONG OPERATIONAL* FIGURES 2017 - PROFITABLE GROWTH PATH CONTINUED IN 2017

2017 - Strong Growth in all KPIs

KPIs (mEUR)	2016	2017	Change (in %)
Revenues	141.8	222.4	+57%
Op. EBITDA	106.1	166.8	+57%
Op. EBIT	61.6	100.4	+63%
Op. Cash flow	103.8	153.0	+47%

Positive weather effects supported the 2017 financial results

KPIs (mEUR)	2017	Weather related effects	FY2017 adjusted for weather effects
Revenues	222.4	4.3	218.1
Op. EBITDA	166.8	4.3	162.5
Op. EBIT	100.4	4.3	96.1

*Operational figures do not include non-cash related value effects

OPERATING RESULTS 2017 BY SEGMENT

Operating P&L	Solarparks	Technical Services	Windparks	Asset Management	HQ
Revenue	168.9	0.3	49.5	3.7	-
EBITDA	134.2	1.3	36.4	0.9	-6.0
EBITDA margin	79%	38%	74%	24%	-
EBIT	83.3	1.3	21.7	0.3	-6.2
EBIT margin	49%	38%	44%	8%	-

! All costs associated with operating activities (personnel and other costs) were distributed to the segments

9M 2018 – fully on track

Q3 / 2018

9M 2018 ENCAVIS WELL ON TRACK AFTER THE FIRST NINE MONTHS OF 2018*

9M 2018 –Operational KPIs

KPIs (mEUR)	9M 2017	9M 2018	Change (in %)
Revenues	179,8	200,9	+12%
Op. EBITDA	142,1	155,3	+9%
Op. EBIT	93,3	100,8	+8%
Op. Cash flow	118,8	128,7	+8%

• Positive meteorological environment; especially for German PV

• New acquisitions in PV and wind parks

• Regional diversification increased with market entry in Spain

• Successful entry into the attractive PPA market with PV park "Talayuela" 300 MW

• Guidance 2018 confirmed

!

OPERATING RESULTS 9M 2017 VS. 9M 2018 BY SEGMENT (IN MILLION EURO)

Op. P&L		Solarparks		Windparks	Technical Services			Asset Management	HQ
	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018
Revenue	146.8	160.4	30.8	38.2	2.6	3.1	2.0	2.1	-	-
EBITDA	123.6	135.3	21.3	26.6	1.1	1.2	0.4	-1.4	-4.3	-6.2
EBITDA margin	84%	84%	69%	70%	41%	37%	22%	-	-	-
EBIT	85.9	94.6	10.5	13.3	1.0	1.1	0.0	-1.9	-4.2	-6.3
EBIT margin	59%	59%	34%	35%	39%	36%	1%	-	-	-

All costs associated with operating activities (personnel and other costs) were allocated to the segments

Guidance financial year 2018

"GUIDANCE 2018"

Showcase for 2019 including ~100 MW to be connected to the grid end of 2018

Operating P&L (in mEUR)	Result 2017	Weather adjusted (wa) FY2017	Guidance 2018	Change Guidance 2018 - (wa) FY2017 in %		2019	2019 – (wa) FY2017 in %
Revenues	222.4	218.4	>240	+10%		~250	+14%
EBITDA	166.8	162.5	>175	+8%
EBIT	100.4	96.1	>105	+9%
Cashflow	153.0	n.a.	>163	+7%
EPS	0.29	0.26	>0.30	+15%		~0.35	+35%

GUIDANCE 2018 BY SEGMENTS

Operating P&L mEUR	Solarparks	Technical Services	Windparks	Asset Management	HQ
Revenue	>175	(internal revenues)	>58	>7	-
EBITDA	>140	>1	>40	>1	<-7
EBITDA margin	80%	32%	69%	14%	-
EBIT	>86	>1	>24	>1	<-7
EBIT margin	49%	30%	41%	14%	-

SECURING GROWTH CAPITAL WHILE KEEPING A STRONG EQUITY RATIO (2016 – 2018*)

Financing measures implemented (in mEUR)

Equity ratio (%)

15

Our business model

Combining smart finance and sustainable investments in the renewable sector

THE 4-PILLARS OF OUR BUSINESS

Segments	Business activities
	> Acquisition and operation of ground mounted PV parks
	> Acquisition and operation of onshore wind parks
	> Customized portfolios or fund solutions with an all-round service for institutional investors in renewable energies (Encavis Asset Management)
	> Technical operation & maintenance of PV parks by our technical service unit (Encavis Technical Services)

CONSERVATIVE ACQUISITION STRATEGY FOR MARKETS WITH FIT (EXAMPLE PV)

• We acquire ready-to-built, turnkey-projects or existing parks and operate them over their technical and commercial life time

• We acquire parks that have a fixed and longterm FIT/PPAs

• We provide customized solutions with dedicated investments on the basis of longterm PPAs

ASSET MANAGEMENT – OUR EXPERTISE FOR INSTITUTIONAL CLIENTS

• The Asset Management (AM) Portfolio amounts to ~ 430 MW

• Focus: Institutional Investors (e.g. insurance companies, pensions funds, banks, foundations)

• OFFERING: One-stop-shop approach (deal originating, selecting and managing the acquisition, park operation)

• PRODUCT: Investment funds on the basis of special Luxembourg SICAVfunds/customized portfolios

• FINANCIALS: Management fees add > 5mEUR of recurring revenues

STRATEGIC PARTNERSHIPS SECURE FUTURE GROWTH

Ireland Strategic Investment Fund (ISIF) ~200 MW

• Strategic Partnership with the state fund ISIF and Irish project developer Power Capital

• Pipeline of some 200 MW in Ireland

• ISIF as co-investor (25%)

• Strong PPA market, energy intensive industries (e.g. data centres) of multinationals

• Specified IRR benchmarks

Solarcentury ~1.1 GW over 3 years

• Strategic partnership with UK based project developer Solarcentury

• Pipeline of in total 1.1 GW with projects in Europe

• 1/3 of pipeline realised in less than 1 year (March '18: PV Park in NL with 43.9 and Oct.' 18 PV park in Spain with 300 MW)

• Taking over Ready-to-build (RTB) PV parks with specified IRR benchmarks

• Standardization of processes reduces transaction costs

STRONG & EXCLUSIVE PROJECT PIPELINE ~ 1.3 GW FOR THE NEXT THREE YEARS

Solarcentury > Exclusive PV pipeline in Europe and overseas of some 1.1 GW	PV park in the Netherlands with Solarcentury > 43.9 biggest acquired PV park > Attractive FIT for 15 years > First project out of pipeline with Solarcentury	PV park in Spain > 300 MW PV park > Long-term PPA contract – subsidiy free > Creditworthy European offtaker > Highly attractive IRR
December 2017	March 2018
January 2018	September 2018	2021
ISIF/Power Capital	PV park in Germany/ Windpark in Denmark
> Exclusive PV pipeline of some 200 MW	in Ireland > Some 20 MW guaranteed respectiveley 15 yrs > Closed/in closing	FiT for 20 yrs,

173 SOLAR PV PARKS AND 67 WIND PARKS IN EUROPE WITH AN INSTALLED CAPACITY OF >1.9

WIND PARKS	OWN ASSETS	ASSET MANAGEMENT
Germany	215 MW	273 MW
France	36 MW	85 MW
Austria	36 MW	-
Finland	-	13 MW
United Kingdom	-	18 MW
Sweden	-	10 MW
Italy	6 MW	-
Denmark	41 MW	-
Total	334 MW	399 MW
SOLAR PARKS	OWN ASSETS	ASSET MANAGEMENT
Germany	262 MW	12 MW
Italy	154 MW	7 MW
France	202 MW	12 MW
United Kingdom	127 MW	-
Netherlands	92 MW	-
Spain	300 MW
Total	1,136 MW	31 MW
GROUP TOTAL	1,900 MW

ENCAVIS FIT-PORTFOLIO – PV ACCOUNTS FOR >70% OF THE ENCAVIS PORTFOLIO

Asset Management portfolio by technology

! PV >2/3 of the renewable energy asset portfolio of Encavis with FiT; ~15 years remaining FIT maturity

*Excluding the 300 MW in Spain with PPA contract

DIVERSIFICATION BY TECHNOLOGY (WIND/PV) WITH COMPLEMENTARY INCOME STREAMS OVER THE YEAR

!

COMPETITIVE GENERATION COSTS OF PV- & WIND PROJECTS OPENS NEW BUSINESS OPPORTUNITIES

Development of global levelized costs of electricity(\$/MWh)

Forecasted generation costs for large-scale PV and 2019 Forward Prices¹ (€/MWh)

In Southerm-European markets the generation costs of renewables are already below prices of 2019 Electricity Forwards. This boosts PPA-Markets in countries such as Spain and Italy.

Source: BNEF, Fraunhofer ISE, Fraunhofer ISE Energy Charts, Goldman Sachs, 1. 1Q 2018

STRONG GROWING PPA-MARKETS - ENCAVIS IS A EUROPEAN FIRST MOVER IN SOLAR

Annual capacity additions through PPAs in EMEA (MW)¹

> Three pillars of the Encavis PPA Strategy

Encavis has secured preferred access to dedicated IP for PPA related risks by investing in market leading competence platform

Founding investor in a newly created fund, targeting to satisfy the demand of leading global corporates for green energy through customized wind- and PV-projects and attractive PPAs.

Leveraging our knowledge and network as experienced investor with various potential offtakers.

MARKET ENTRY SPAIN: DIVERSIFICATION OF PORTFOLIO INTO BOOMING PPA MARKET AT AN EARLY STAGE

Investment criteria Spain

• PPA contract no Feed-in-tariff

• PPA with strong (tier-1) offtakers

• Functional and stable market environment

• Partner with strong local network as co-investor

• Post-tax IRR >8%

THE PV PARK "TALAYUELA" – KEY INVESTMENT HIGHLIGHTS

• Generation capacity: 300 MW

• Total investment volume: EUR ~225 Mio.

• Equity/project debt finance level: 50:50

• Full loan repayment within PPA runtime

• Co-investor: Solarcentury with ~20%

• PPA:

• Long-term contract of 10 yrs

• Fixed price

• Additional income from Guarantees of Origin

• Grid connection: End of Q1/2020

• Additional land plot for possible battery storage

• Revenues 1st year of full operation: ~EUR 25 Mio.

• Post-tax IRR >8%

The future is bright for renewables

WORLDWIDE GROWTH IN GENERATING CAPACITY OF RENEWABLES BY TECHNOLOGY

ENTERING THE CENTURY OF RENEWABLE POWER GENERATION

Gross capacity additions by technology group Global utility PV- and onshore Wind Capacity

DEMAND FOR POWER FROM RENEWABLES FROM TWO STRONG PLAYERS: PUBLIC & PRIVATE SECTOR

Public Sector: Goal to limit global warming

• COP 21 Paris: 196 countries united to limit global warming below 2°C

• Europe 20-20-20 targets

• China: largest installed renewables fleets

• Denuclearization in Germany and Japan

• Creation of low-carb economies

• Demand via FIT-schemes and competitive auctions

Private sector: Sustainability goals and long-term supply security

• Private companies create global initiatives in order to take action on climate change.

• Multinational companies such as Google, Facebook and Microsoft go ahead with ambitious targets

• 100% renewable targets help to create a positive brand awareness

• Furthermore, direct power purchase agreements between companies and power producers from renewable energy resources offer long-term supply at fixed rates

Demand via PPAs and purchase of green certificates

HIGH-ENERGY CONSUMING DATA CENTRES OF MULTINATIONALS

Electricity consumption of Major Tech-Companies Consumption driven by data centres

• U.S. data centre electricity consumption in 2014: 70 billion kilowatt-hours (CAGR 4% until 2020)

• Global data centre market expected to grow further to \$23bn by 2019 (CAGR +9%)

• 96% of Facebook's electricity consumption related to its data centres

• In 2016 Google planned the construction of 12 new cloud data centres

VOLUME OF GLOBALLY SIGNED CORPORATE PPAS STEADILY GROWING

MAJOR PPA-PLAYERS AND GENERAL MARKET OVERVIEW

Top offtakers by capacity and source Recent market developments

• North American market with pioneering role

• US companies search partners for PPAs in Europe

• ENCAVIS registers increasing demand for PPAs also in Europe (Nordics, Spain, Italy, Ireland)

• Major PPA deal in Europe in 2017: Norsk Hydro signs PPA until 2039 for 650 MW wind park in Sweden

• PPAs are contracted for time periods from 6 20 years

THE "GOLDEN END" OF ENCAVIS'S POWER PLANTS

Illustration of the different cash flows of a solar PV park

Assumptions

• Solar-park connected to the grid in 2010 with FIT for 20 years (t20)

• Park is bought in Q2 2011, first full year of operation 2012 (t2)

• Non-recourse project financing will be serviced and paid-off by the park

! As the loan is paid-off during the FIT-period, parks are very profitable in the "golden end"

Source: Company data

GOLDEN END" - PV PARKS STILL WITH HIGH EFFICIENCIES AND LOWEST MARGINAL COSTS

Performance of PV-modules after 20-years Example*: Cash flow for one solar park

ENCAVIS TECHNICAL SERVICES IS RESPONSIBLE FOR THE OPERATION OF OUR PARKS

Company profile

• Specialized in technical operation of PV parks since 2008

• The team is located in Halle (Saale) and consists of 16 project-experienced engineers, technicians and mechanics

• Company is accepted by financing banks

• Broad technology experience:

• Crystalline and thin-film modules

• Central and string inverters

• Different monitoring systems

Parks managed by Encavis Technical Services

INSIGHT INTO OUR 24/7 TECHNICAL PARK OPERATION

Constant monitoring of parks

• Integration of all parks into our centralized 24h control room

• Calculation of yield reports and simulations based on actual irradiation levels

• Handling of failure reports 365 days a year

• Management of fast response fault clearance actions

Onsite visits

• Failure analysis and repair works directly on site are conducted by experienced and trained team

• Our service vehicles hold comprehensive stock of spare parts

• For major repairs teams of the component manufacturers are requested (for instance defective power sections)

INSIGHT INTO OUR ON-SITE ACTIVITIES

Thermography

• Identification of strings with short circuits

• Adjustment of the polarity

Repairs

For instance repair of string-inverters with lightning damages (350 in the last 24 months)

Performance tests

Performance measurements for strings or single modules show performance reductions

Replacing modules

In 2014 and 2015 our team replaced more than 20,000 defect modules

OPTIMIZING THE PERFORMANCE OF OUR WIND PORTFOLIO

Power Uprates

Power Uprates for installed turbines increase annual electricity production of turbines by up to 3% without effecting the turbine design life

Optimizing power curves

Improve efficiency of turbine at lower wind speeds through software updates and the optimization of regular downtimes, of blade pitch angle and of gondola alignment

Battery storage The energy system of the future

INCREASING SHARE OF RENEWABLES IN POWER SECTOR CREATES NEW CHALLENGES

Hour of Day

• Supply based on coal, nuclear and gas

• Large, centralized power plants

• National markets not interconnected

Source: Own illustration

Electricity demand and historic supply mix Conceptual supply mix in the future

Hour of Day

• Supply based on Renewables and flexible gas power plants

• Electricity storage with increasing importance

• Decentralized power generation with prosumers

NEW BUSINESS CASES FOR ELECTRICITY STORAGE

MARKET FOR ELECTRICITY STORAGE IS ALREADY GROWING. PROMISING OUTLOOK

Annually commissioned utility-scale storage

• Strong increase in annual commissions

• Growth distributed globally

Source: BNEF

Lithium-ion technology currently standard technology

Future market outlook for storage applications

• Strong growth in all regions until 2030 as storage is needed to integrate renewables into power sectors and thus guarantee security of supply

• Decreasing costs drive capacity additions

AS INSTALLED CAPACITIES INCREASE COSTS ARE FORECASTED TO FALL

Reduction of costs for energy storage systems Case example: Xcel Energy's tender

• Resource solicitation for RES generation plus storage

• Submission of 400 individual proposals

• Median price for wind-plus-storage projects was \$21/MWh and for solar-plus-storage was \$36/MWh

• Combined bids are only \$3-\$7 higher than standalone wind- and solar power plants

BATTERY STORAGE: POSSIBLE MARKET ENTRANCE FOR ENCAVIS

Business model with minimised risks…

• Encavis is owner and operator of utility-scale batteries

• Encavis transfers usage of batteries via long-term contracts

• Projects are bankable

• Partner is responsible for the marketing of the batteryservices

… and great opportunities

• Diversification of Portfolio

• Complementary to RES power generation

• Early bird advantages

• Increase revenues of parks after end of FIT ("Golden End")

The Encavis share

An attractive investment

ENCAVIS – ONE OF THE LARGEST INDEPENDENT AND LISTED EUROPEAN RENEWABLE IPPS

Benchmarking by market capitalization (mEUR)

ENTREPRENEURIAL SHAREHOLDER STRUCTURE – STRONG AND LONG TERM ANCHOR INVESTORS

ATTRACTIVE AND TRANSPARENT DIVIDEND POLICY 2016 - 2021

Dividend policy reflects increasing cash flows from PV/wind parks over time

• 50% increase of nominal dividend until 2021 (compared to 2016) based on the existing PV/wind park portfolio as of March 31, 2017

• Further acquisitions of PV/wind parks will positively contribute to the dividend potential

ENCAVIS-SHARE – NINE COVERAGES WITH ~90% CLEAR "BUY"-RECOMMENDATION

Coverage institution	Rating	Date	Target Price (in EUR)
	Buy	August 30, 2018	7.90
	Buy	Nov 27, 2018	8.80
	Buy	Oct 12, 2018	8.70
	Buy	April 11, 2017	7.70
	Outperform	March 23, 2018	8.80
	Buy	Nov 11, 2018	7.70
	Buy	January 18, 2018	8.30
	Hold	September 21, 2018	6.20
	Buy	Nov 26, 2018	7.80
Consensus	-	-	7.99

! Further coverages of the Encavis share in initiation

MANAGEMENT TEAM WITH GREAT INDUSTRY EXPERTISE AND STRONG PASSION FOR RENEWABLES

Dr. Dierk Paskert

• Since September 2017 CEO at Encavis AG

• CEO Rohstoffallianz GmbH

• Member of the Management Board of E.ON-Energie AG

• E.ON AG Düsseldorf, SVP Corporate Development

• Member of the Management Board Schenker AG

Dr. Christoph Husmann

• Since October 2014 CFO at Encavis AG

• Member (CFO) and later Chairman of the Management Board of HOCHTIEF Projekt Entwicklung GmbH

• STINNES AG and HOCHTIEF AG, Head of Corporate Controlling and M&A

• VEBA AG, Controlling

SUPERVISORY BOARD

Dr. Manfred Krüper (Chairman)

• Member of the Board of Directors at E.ON AG (until Nov. 2006)

• Supervisory Board (a.o.): Coal & Minerals GmbH, EQT Partners investment consultancy GmbH; EEW Energy from Waste GmbH

Dr. Cornelius Liedtke

• Entrepreneur and co-owner of the B&L Group

• Supervisory board (a.o.): GL Aktiengesellschaft, Dichtungstechnik G. Bruss GmbH & Co. KG

Prof. Fritz Vahrenholt

• Until January 2014 chairman of the supervisory board at RWE Innogy GmbH (previously CEO)

• Supervisory board (a.o.): Aurubis AG, RADAG and Putz & Partner Unternehmensberatung AG

Alexander Stuhlmann

• Until December 2006 CEO at HSH Nordbank and thereafter until April 2008 CEO at WestLB AG

• Supervisory board (a.o.): HCI Capital AG, alstria office REIT-AG, Euro-Aviation Versicherungs-AG

Prof. Dr. Klaus-Dieter Maubach

• Entrepreuneur and director of the maubach.icp GmbH

• November 2015 November 2016 CEO at Capital Stage; before CEO at E.ON Avacon AG & E.ON Energy AG

Christine Scheel

• Until October 2016 member of the supervisory board at CHORUS Clean Energy AG

• Former member of the German parliament

Albert Büll

• Entrepreneur and co-owner of the B&L Group

• Supervisory board (a.o.): Kalorimeta AG & Co. KG, URBANA Energietechnik AG & Co. KG, Dichtungstechnik G. BRUSS GmbH & Co. KG

Dr. Henning Kreke

• Previously 15 years as CEO at Douglas Holding AG

• Supervisory board (a.o.): Deutsche EuroShop AG; Thalia Bücher GmbH

Peter Heidecker

• Until October 2016 chairman of the supervisory board at CHORUS Clean Energy AG

• Founder of the CHORUS GmbH in 1998

Encavis AG

Till Gießmann Head of IR/PR Große Elbstraße 59 22767 Hamburg, Germany

Fon: +49 (40) 3785 62 0 Email: ir@encavis.com

November 2018

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. Encavis 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 authorized by written consent from Encavis AG.