Eolus Vind — Interim / Quarterly Report 2019

Oct 23, 2019

28 wind turbines handed over to customers according to plan

3 Months June 2019 – August 2019

• Net sales 1 033,7 (1 185,8) MSEK.
• EBIT 72,0 (179,4) MSEK. Profit before tax 72,6 (167,0) MSEK. Net profit 81,0 (155,7) MSEK.
• Earnings per share, before and after dilution equals 3,25 (6,25) SEK.
• During the three month period 28 (23) wind turbines were taken into operations with a total installed capacity of 104,4 (79,4)MW.
• During the three month period the equivalent of 29,0 (25,6) wind turbines with an installed capacity of 105,2 (84,4) MW was handed over to customers.
• At the end of the period Eolus had 524 (415) MW under asset management.
• Electricity production from wind farms owned was 1,4 (5,1) GWh with an average revenue of 511 (534) SEK/MWh.
• In June Eolus North America, Inc signed an agreement with Vestas for delivery of up to 13 wind turbines of the model Vestas V126 with a total installed capacity of up to 47 MW for wind farm Wind Wall in California, USA
• In July Eolus signed an agreement with Aquila Capital regarding the sale of wind farm Øyfjellet (400 MW) in Norway. This through a conditional sale of 100 percent of the shares in the project company that holds all the project rights for the wind power project, including a 15-year power purchase agreement (PPA) with Alcoa Norway, and a construction management agreement by which Eolus will manage the construction of the wind farm on behalf of Aquila Capital.
• In August wind farms Nylandsbergen (68 MW) and Sötterfällan (36 MW) was completed and handed over to customers. Eolus will provide technical and administrative services for both wind farms.

Full year September 2018 – August 2019

• Net sales 2 031.9 (1 366.0) MSEK.
• EBIT 118.3 (202.4) MSEK. Profit before tax 116.0 (198.9) MSEK. Net profit 132.8 (194.3) MSEK.
• Earnings per share, before and after dilution equals 5.33 (7.81) SEK.
• During the fiscal year 2018/2019 31 (25) wind turbines were taken into operations with a total installed capacity of 115.2 (83.8) MW.
• During the year the equivalent of 34.0 (30.8) wind turbine with an installed capacity of 120.0 (93.3) MW was handed over to customers.
• Electricity production from wind farms owned was 11.7 (30.2) GWh with an average revenue of 560 (470) SEK/MWh.
• For the fiscal year 2018/2019 the board proposes a dividend of 1.50 (1.50) SEK per share.

Eolus Vind AB (publ) Box 95 281 21 HÄSSLEHOLM Tel: 010-199 88 00 (vx)

Financial summery	Q 4	Q 4	Full ye a r	Full ye a r
	Jun 2 0 19	Jun 2 0 18	Se p 2 0 18	Se p 2 0 17
	- Aug 2 0 19	- Aug 2 0 18	- Aug 2 0 19	- Aug 2 0 18
Net sales, MSEK	1 033,7	1 185,8	2 031,9	1 366,0
EBIT, MSEK	72,0	179,4	118,3	202,4
Profit before tax, MSEK	72,6	167,0	116,0	198,9
Changes in market valuation of financial derivatives, MSEK	15,0	-1,5	-24,9	2,5
Net profit, MSEK	81,0	155,7	132,8	194,3
Earnings per share before and after dilution, SEK	3,25	6,25	5,33	7,81
Equity per share, SEK	35,65	32,68	35,65	32,68
Cashflow from operating activities, MSEK	920,5	886,7	566,6	241,7
Total assets, MSEK	2 057,8	1 895,0	2 057,8	1 895,0
Net debt - /net cash +, MSEK	800,1	371,1	800,1	371,1
Signed customer contracts, MSEK	818,9	2 887,5	818,9	2 887,5
No of turbines taken into operation, amount	28,0	23,0	31,0	25,0
No of turbines handed over to customers, amount	29,0	25,6	34,0	30,8
Turbines taken into operation, MW	104,4	79,4	115,2	83,8
Turbines handed over to customers, MW	105,2	84,4	120,0	93,3
Managed turbines, MW	524	415	524	415
Electricity generation, GWh	1,4	5,1	11,7	30,2
Equity/assets ratio, %	43,2	43,1	43,2	43,1
Return on equity after tax, %	15,6	26,4	15,6	26,4

Priority projects

The market conditions change rapidly when it comes to technological development, electricity prices and investors. Eolus's strategic focus will therefor concentrate on the development, establishment and divestment of a number of high-priority projects in the coming years, i.e. those with the best conditions to be realized at the lowest cost per megawatt-hour. With fewer, but larger, established wind farms fluctuations between individual quarters will be greater in terms of constructed wind turbines, tied up capital, turnover and results. At the same time the fluctuations will decrease due to usage of the percentage of completion method.

To highlight information about the status of these high-priority projects, they will be given a separate heading in Eolus's interim reports. The same information will be presented on Eolus's website. The website will be updated following the publication of interim reports, or due to other significant project events announced via press release.

The following are currently our high-priority projects for the coming years. However, the summary does not rule out establishment of other projects from Eolus´s high-quality project portfolio that meet investors demands and requirements.

Proje c t	Loc a tion	Numbe r of WTG	Ca pa c ity, M W	Estima te d produc tion, GWh	Pla nne d c ommissioni n g	Comme nt
Kråktorpet	Sundsvall, Sweden, SE2	4 3	163	550-590	2019	The wind farm is sold to Aquila Capital who will take over the facility upon completion which is expected to be in the autumn of 2019. Provdrift av turbiner pågår.
Wind Wall	Tehachapi, California, USA	1 3	40-47	145-155	2020	Repowering project. Full-value production tax credit granted for the project. 15 year PPA signed with Amazon Web Service. Agreement for delivery of wind turbines signed with Vestas. Sales process is ongoing.
Stigafjellet	Bjerkheim, Norway, NO2	7	3 0	110-130	2020	The wind farm is sold to ewz who will take over the facility upon compeltion which is expected to be in the second half of 2020. Turbine supply agreement signed with Siemens Gamesa. Construction of roads and foundations is ongoing.
Bäckhammar	Kristinehamn/ Degerfors, Sweden, SE3	3 0	130	400	2020	The wind farm is sold to KGAL who will take over the facility upon completion which is expected to be in the summer of 2020. Turbine supply agreement signed with Vestas. Construction of roads and foundations is ongoing.
Öyfjellet	Vefsn, Norway, NO4	70-90	400	1,400	2021	Fully concessioned. Grid capacity reserved. 15 year PPA signed with Alcoa. Sales agreement signed with Aquila Capital. Procurement of wind turbines, construction of roads and foundations and grid connection is ongoing.

Consolidated income statement	Q 4	Q 4	Full ye a r	Full ye a r
	Jun 2 0 19	Jun 2 0 18	Se p 2 0 18	Se p 2 0 17
KSEK	- Aug 2 0 19	- Aug 2 0 18	- Aug 2 0 19	- Aug 2 0 18
Net sales	1 033 689	1 185 825	2 031 911	1 365 977
Other operating income	43 184	319	58 706	22 533
	1 076 873	1 186 144	2 090 617	1 388 511
Operating expences
Change in inventories of wind turmbines, wind turbines
under construction and projekts under development	24 471	-616 389	-289 576	171 724
Cost for goods and project development	-971 433	-352 204	-1 503 682	-1 248 858
Other external costs	-20 774	-16 635	-58 141	-51 542
Employee benefits expenses	-11 643	-8 426	-39 088	-32 702
Depreciation/amortization and impairment of property,
plant and equipment and intangible	-1 075	-6 089	-4 968	-14 765
Result from participations in associated companies	-	-4 571	-	-4 589
Other operating expenses	-24 467	-2 386	-76 842	-5 367
Operating profit	71 951	179 444	118 321	202 411
Profit/loss from financial items	676	-12 414	-2 350	-3 532
Profit before tax	72 627	167 030	115 971	198 879
Tax on profit	8 329	-11 379	16 823	-4 566
Net profit for the period	80 955	155 652	132 794	194 313
Whereof related to the shareholder of the parent company	80 991	155 674	132 876	194 460
Whereof related to minority stakeholders	-36	-23	-82	-147
Net profit for the period	80 955	155 652	132 794	194 313
Total shares	24 907	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	3,25	6,25	5,33	7,81

Consolidated statement of comprehensive income

KSEK
Net profit for the period	80 955	155 652	132 794	194 313
Other comprehensive income
Translation differences	-811	-283	-1 501	-538
Other comprehensive income for the period net after tax	-811	-283	-1 501	-538
Total comprehensive income for the period	80 144	155 369	131 293	193 775
Whereof related to the shareholder of the parent company	80 107	155 297	131 169	193 582
Whereof related to minority stakeholders	3 7	7 2	125	193
Total comprehensive income for the period	80 144	155 369	131 293	193 775

Consolidated balance sheet KSEK	Aug 3 1 2 0 19	Aug 3 1 2 0 18
Consolidated balance sheet ASSETS	Nov 3 0	Nov 3 0
KSEK Non-current assets	2 0 18	2 0 17
ASSETS Intangible assets	54 084	96 162
Non-current assets Property, plant and equipment	31 810	52 024
Intangible assets Participations in associated companies	87 899 -	- 3 7
Property, plant and equipment Deferred tax asset	40 661 4 421	109 427 3 095
Participations in associated companies Other financial assets	- 20 502	3 763 25 953
Deferred tax asset Total fixed assets	3 648 110 817	2 651 177 271
Other financial assets	20 502	31 314
Total fixed assets Current assets	152 711	147 154
Inventories, work in progress	472 359	574 666
Current assets Advance payment to suppliers	277 014	307 225
Inventories, work in progress Account receivable - trade	750 326 25 277	453 287 53 018
Advance payment to suppliers Current tax assets	379 644 5 705	94 531 -
Account receivable - trade Other receivables	28 004 35 411	32 531 37 023
Other receivables Prepaid expenses and accrued income	50 134 28 223	40 055 5 973
Prepaid expenses and accrued income Cash and bank balances	101 198 1 102 983	6 384 739 825
Cash and bank balances Total current assets	77 638 1 946 973	107 853 1 717 730
Total current assets TOTAL ASSETS	1 388 836 2 057 789	744 076 1 895 002
TOTAL ASSETS	1 541 546	891 230
KSEK	Aug 3 1 Nov 3 0 2 0 19	Aug 3 1 Nov 3 0 2 0 18
	2 0 18	2 0 17
EQUITY AND LIABILITIES
Equity
Equity related to the share holders of parent company	887 817 794 898	664 988
Equity related to minority stake holders Total equity	2 037 1 885 889 854	1 789
KSEK EQUITY AND LIABILITIES Equity Equity related to the share holders of parent company Equity related to minority stake holders Total equity Non-current liabilities	796 783	666 777
Non-current interest bearing liabilities	152 400
Provision, non current	77 800 925	8 250
Deferred taxes	1 557 6 153	3 867
Other liabilities	40 786 284	59 746
Non-current liabilities Non-current interest bearing liabilities Provision, non current Deferred taxes Other liabilities Total non-current liabilities	264 159 762	836
Total non-current liabilities Current liabilities	120 406	72 699
Current interest bearing liabilities	150 533
Bills payable	30 533 229 381	20 252
Derivative instruments	99 778 37 521	30 154
Current tax liabilities	10 938 3 2	14 123
Accrued expenses and deferred income	5 762 91 585	12 326
Current liabilities Current interest bearing liabilities Bills payable Derivative instruments Current tax liabilities Accrued expenses and deferred income Advance paument from customers	40 407 293 791	17 959
Advance paument from customers Other liabilities	434 934 205 330	54 856
Other liabilities Total current liabilities Total current liabilities	2 004 1 008 173 624 357	814 013 1 912 815 924 81 780 2 107 39 994 264 124 145 286 960 140 806 12 647 35 099 61 606 318 782 99 031 2 084 954 932 151 754

Total equity and liabilities 1 541 546 891 230 1 895 002

Consolidated cash flow statement	Q 4	Q 4	Full ye a r	Full ye a r
	Jun 2 0 19	Jun 2 0 18	Se p 2 0 18	Se p 2 0 17
KSEK	- Aug 2 0 19	- Aug 2 0 18	- Aug 2 0 19	- Aug 2 0 18
Operating activities
Operating profit	71 951	179 445	118 321	202 411
Non cash items	-18 258	7 592	29 896	15 399
	53 692	187 037	148 217	217 810
Interest received	422	1 094	4 261	2 667
Interest paid	-7 486	-3 034	-13 807	-7 174
Income tax paid	-9 781	5 966	-59 140	-3 424
Net cash flow from operating activities before changes in	36 847	191 062	79 532	209 879
working capital
Adjustments of working capital	883 655-	695 651-	487 098-	31 845-
Cash flow from operating activities	920 502	886 713	566 630	241 724
Acquisition of intangible assets	-	-	-96 162	-
Acquisition of property, plant and equipment	-368	-35	-1 939	-1 388
Sales of property, plant and equipment	-	4	310	437
Acquisition of participations in subsidaries/asset acquisition	-	-	-1 681	-
Acquisition of financial assets	-	-	-1 376	-
Sales of financial assets	-	-	6 3	-
Cash flow from investing activities	-368	-31	-100 785	-952
Borrowings	320 232	240 000	721 810	360 000
Repayment of loans	-496 944	-423 782	-787 617	-25 807
Paid dividends	-	-	-37 361	-37 361
Cash flow from financing activities	-176 711	-183 782	-103 167	296 833
Cash flow for the year	743 423	702 900	362 678	537 604
Cash and cash equivalents at beginning of year	359 258	36 789	739 825	201 509
Exchange-rate differences in cash and cash equivalents	303	136	480	712
Cash and cash equivalents at year-end	1 102 983	739 825	1 102 983	739 825

Consolidated statement of changes in equity

Consolidated statement of changes in equity
		Additiona l			Tota l,	Non
	Sha re	pa id- in		Re ta ine d	Eolus's	c ontrolling
KSEK	c a pita l	c a pita l	Re se rve s	e a rnings	sha re holde rs	inte re sts	Tota l e quity
At 1 September 2017	24 907	190 843	369	441 673	657 791	1 719	659 510
Net profit for the year				194 460	194 460	-147	194 313
Other comprehensive income			-864	-14	-878	340	-538
Total comprehensive income			-864	194 446	193 582	193	193 775
Transactions with shareholders
Dividend				-37 361	-37 361		-37 361
At 31 August2018	24 907	190 843	-496	598 759	814 013	1 912	815 924
At 1 September 2018	24 907	190 843	-496	598 759	814 013	1 912	815 924
Adjustment for changed accounting principle:
IFRS 15 Income from agreements with
customers				-20 000	-20 000		-20 000
Adjusted as per 1 september 2018	24 907	190 843	-496	578 759	794 013	1 912	795 924
Net profit for the year				132 876	132 876	-82	132 794
Other comprehensive income			-1 674	-33	-1 707	206	-1 501
Total comprehensive income			-1 674	132 843	131 169	125	131 293
Transactions with shareholders
Dividend				-37 361	-37 361		-37 361
At 31 August 2019	24 907	190 843	-2 170	674 240	887 817	2 037	889 854