Eolus Vind — Earnings Release 2019

Apr 25, 2019

Windfarm Anneberg Completed

3 Months December 2018 – February 2019

• Net sales 370.2 (139.4) MSEK.
• EBIT 25.9 (30.0) MSEK. Profit before tax 31.2 (27.8) MSEK. Net profit 38.7 (35.9) MSEK.
• Earnings per share, before and after dilution equals 1.55 (1.44) SEK.
• During the three month period 3 (2) wind turbines were taken into operations with a total installed capacity of 10.8 (4.4) MW.
• During the three month period the equivalent of 3.0 (3.1) wind turbines with an installed capacity of 10.8 (6.8) MW was handed over to customers.
• At the end of the period Eolus had 421 (350) MW under asset management.
• Electricity production from wind farms owned was 3.1 (9.3) GWh with an average revenue of 632 (437) SEK/MWh.
• In January 2019, wind farm Anneberg (11 MW) in Tidaholm municipality was completed and handed over to KGAL. Anneberg is the first wind farm in Sweden commissioning Vestas V136 wind turbines.

Financial summery	Q 2	Q 2	Q1- Q2	Q1- Q2	Full ye a r
	De c 2 0 18 - Fe b 2 0 19	De c 2 0 17 - Fe b 2 0 18	Se p 2 0 18 - Fe b 2 0 19	Se p 2 0 17 - Fe b 2 0 18	Se p 2 0 17 - Aug 2 0 18
Net sales, MSEK	370,2	139,4	477,9	157,5	1 366,0
EBIT, MSEK	25,9	30,0	35,5	33,0	202,4
Profit before tax, MSEK	31,2	27,8	33,3	37,6	198,9
Changes in market valuation of financial derivatives, MSEK	-24,8	-5,9	-21,2	4,5	2,5
Net profit, MSEK	38,7	35,9	39,7	43,3	194,3
Earnings per share before and after före dilution, SEK	1,6	1,44	1,6	1,74	7,81
Equity per share, SEK	32,0	26,64	32,0	26,64	32,68
Cashflow from operating activities, MSEK	277,5	-201,4	-25,7	-288,9	241,7
Total assets, MSEK	1 708,5	1 095,7	1 708,5	1 095,7	1 895,0
Net debt - /net cash +, MSEK	209,6	-159,1	209,6	-159,1	371,1
Signed customer contracts, MSEK	3 116,8	3 885,0	3 116,8	3 885,0	2 887,5
No of turbines taken into operation, amount	3,0	2,0	3,0	2,0	25,0
No of turbines handed over to customers,	3,0	3,1	4,0	3,4	30,8
Turbines taken into operation, MW	10,8	4,4	10,8	4,4	83,8
Turbines handed over to customers, MW	10,8	6,8	12,8	7,5	93,3
Managed turbines, MW	421	350	421	350	415
Electricity generation, GWh	3,1	9,3	7,0	18,9	30,2
Equity/assets ratio, %	46,7	60,7	46,7	60,7	43,1
Return on equity after tax, %	26,1	7,7	26,1	7,7	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
Nylandsbergen	Sundsvall, Sweden, SE2	1 8	6 8	230-250	2019	The wind farm is sold to Aquila Capital who will take over the facility upon completion which is expected to be in the second half of 2019. Construction of roads and foundations are ongoing and delivery of wind turbines from Vestas to site is also ongoing.
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 second half of 2019. Construction of roads and foundations are ongoing and delivery of wind turbines from Vestas to site is also ongoing.
Wind Wall	Tehachapi, California, USA	11 to 12	38-40	135-145	2020	Repowering project. Full-value production tax credit granted for the project.
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. Grid capacity reserved and construction of the grid connection has started. Turbine supply agreement signed with Siemens Gamesa.
Sötterfällan	Jönköping, Sweden, SE3	1 0	3 6	125-135	2019	The wind farm is sold to KGAL who will take over the facility upon compeltion which is expected to be in the summer of 2019. Turbine supply agreement signed with Vestas. Construction of roads and foundations are 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 has started.
Öyfjellet	Vefsn, Norway, NO4	70-90	400	1,400	2021	Fully concessioned. Grid capacity reserved. 15 year PPA signed with Alcoa. Sales process initiated.

Consolidated income statement	Q 2	Q 2	Q1- Q2	Q1- Q2	Full ye a r
	De c 2 0 18	De c 2 0 17	Se p 2 0 18	Se p 2 0 17	Se p 2 0 17
KSEK	- Fe b 2 0 19	- Fe b 2 0 18	- Fe b 2 0 19	- Fe b 2 0 18	- Aug 2 0 18
Net sales	370 154	139 383	477 927	157 522	1 365 977
Other operating income	7 418	1 455	15 162	15 662	22 533
	377 572	140 838	493 090	173 184	1 388 511
Operating expences
Change in inventories of wind turmbines, wind turbines
under construction and projekts under development	-137 319	31 475	3 552	129 683	171 724
Cost for goods and project development	-164 310	-116 965	-387 110	-225 247	-1 248 858
Other external costs	-14 144	-11 475	-26 746	-20 952	-51 542
Employee benefits expenses	-9 686	-8 084	-18 777	-15 740	-32 702
Depreciation/amortization and impairment of property,
plant and equipment and intangible	-1 435	-4 553	-2 588	-6 760	-14 765
Result from participations in associated companies	-	-	-	-	-4 589
Other operating expenses	-24 824	-1 266	-25 910	-1 210	-5 367
Operating profit	25 855	29 970	35 511	32 958	202 411
Profit/loss from financial items	5 370	-2 148	-2 165	4 614	-3 532
Profit before tax	31 225	27 822	33 346	37 573	198 879
Tax on profit	7 461	8 062	6 333	5 727	-4 566
Net profit for the period	38 687	35 884	39 680	43 299	194 313
Whereof related to the shareholder of the parent company	38 710	35 924	39 725	43 386	194 460
Whereof related to minority stakeholders	-24	-41	-46	-86	-147
Net profit for the period	38 687	35 884	39 680	43 299	194 313
Total shares	24 907	24 907	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	1,55	1,44	1,59	1,74	7,81

Consolidated statement of comprehensive income
KSEK
Net profit for the period	38 687	35 884	39 680	43 299	194 313
Other comprehensive income
Translation differences	-106	1 7	-242	-129	-538
Other comprehensive income for the period net after tax	-106	1 7	-242	-129	-538
Total comprehensive income for the period	38 581	35 901	39 438	43 170	193 775
Whereof related to the shareholder of the parent company	38 559	35 973	39 443	43 171	193 582
Whereof related to minority stakeholders	2 2	-72	-5	-1	193
Total comprehensive income for the period	38 581	35 901	39 438	43 170	193 775

Consolidated balance sheet Fe b 2 8 Fe b 2 8 Aug 3 1 2 0 19 2 0 18 2 0 18 KSEK ASSETS Non-current assets Consolidated balance sheet Nov 3 0 Nov 3 0 Aug 3 1 Intangible assets 71 090 - 96 162 2 0 18 2 0 17 2 0 18 KSEK Property, plant and equipment 39 792 91 136 52 024 ASSETS Participations in associated companies - 3 763 3 7 Non-current assets Deferred tax asset 1 770 3 309 3 095 Intangible assets 87 899 - 96 162 Other financial assets 20 721 32 763 25 953 Property, plant and equipment 40 661 109 427 52 024 Total fixed assets 133 373 130 971 177 271 Participations in associated companies - 3 763 3 7 Deferred tax asset 3 648 2 651 3 095 Current assets Other financial assets 20 502 31 314 25 953 Inventories, work in progress 675 033 481 593 574 666 Total fixed assets 152 711 147 154 177 271 Advance payment to suppliers 309 420 416 497 307 225 Account receivable - trade 22 664 26 172 53 018 Current assets Derivative instruments - 2 296 - Inventories, work in progress 750 326 453 287 574 666 Current tax assets 8 863 - - Advance payment to suppliers 379 644 94 531 307 225 Other receivables 27 115 12 027 37 023 Account receivable - trade 28 004 32 531 53 018 Prepaid expenses and accrued income 169 169 7 263 5 973 Other receivables 50 134 40 055 37 023 Cash and bank balances 362 833 18 851 739 825 Prepaid expenses and accrued income 101 198 6 384 5 973 Total current assets 1 575 097 964 699 1 717 730 Cash and bank balances 77 638 107 853 739 825 TOTAL ASSETS 1 708 470 1 095 670 1 895 002 Total current assets 1 388 836 744 076 1 717 730 TOTAL ASSETS 1 541 546 891 230 1 895 002 Fe b 2 8 Fe b 2 8 Aug 3 1 2 0 19 2 0 18 2 0 18 KSEK Nov 3 0 Nov 3 0 Aug 3 1 EQUITY AND LIABILITIES 2 0 18 2 0 17 2 0 18 KSEK Equity EQUITY AND LIABILITIES Equity related to the share holders of parent company 796 091 663 603 814 013 Equity Equity related to minority stake holders 1 907 1 718 1 912 Equity related to the share holders of parent company 794 898 664 988 814 013 Total equity 797 999 665 320 815 924 Equity related to minority stake holders 1 885 1 789 1 912 Non-current liabilities Total equity 796 783 666 777 815 924 Non-current interest bearing liabilities 152 667 14 340 81 780 Non-current liabilities Provision, non current 1 577 3 323 2 107 Non-current interest bearing liabilities 77 800 8 250 81 780 Deferred taxes 36 468 54 231 39 994 Provision, non current 1 557 3 867 2 107 Other liabilities 268 826 264 Deferred taxes 40 786 59 746 39 994 Total non-current liabilities 190 980 72 720 124 145 Other liabilities 264 836 264 Current liabilities Total non-current liabilities 120 406 72 699 124 145 Current interest bearing liabilities 533 163 646 286 960 Current liabilities Bills payable 126 386 32 049 140 806 Current interest bearing liabilities 30 533 20 252 286 960 Derivative instruments 33 859 12 866 12 647
Bills payable 99 778 30 154 140 806 Current tax liabilities 9 5 7 587 35 099
Derivative instruments 10 938 14 123 12 647 Accrued expenses and deferred income 59 563 17 762 61 606
Current tax liabilities 5 762 12 326 35 099 Advance paument from customers 496 626 122 013 318 782
Accrued expenses and deferred income 40 407 17 959 61 606 Other liabilities 2 430 1 708 99 031
Advance paument from customers 434 934 54 856 318 782 Total current liabilities 719 491 357 630 954 932
Other liabilities 2 004 2 084 99 031

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

Consolidated cash flow statement	Q 2	Q 2	Q1- Q2	Q1- Q2	Full ye a r
	De c 2 0 18	De c 2 0 17	Se p 2 0 18	Se p 2 0 17	Se p 2 0 17
KSEK	- Fe b 2 0 19	- Fe b 2 0 18	- Fe b 2 0 19	- Fe b 2 0 18	- Aug 2 0 18
Operating activities
Operating profit	25 855	29 970	35 511	32 958	202 411
Non cash items	30 140	11 613	26 105	4 499	15 399
	55 995	41 583	61 616	37 457	217 810
Interest received	1 534	659	1 823	1 573	2 667
Interest paid	-1 519	-1 956	-4 275	-3 071	-7 174
Income tax paid	-9 556	-2 824	-39 774	-6 487	-3 424
Net cash flow from operating activities before changes in	46 454	37 461	19 390	29 473	209 879
working capital
Adjustments of working capital	231 071-	-238 907-	-45 113-	-318 389-	31 845-
Cash flow from operating activities	277 525	-201 446	-25 723	-288 917	241 724
Acquisition of intangible assets	-	-	-96 162	-	-
Acquisition of property, plant and equipment	-472	-	-1 139	-1 104	-1 388
Sales of property, plant and equipment	276	365	310	432	437
Acquisition of participations in subsidaries/asset acquisition	-13	-	-1 681	-	-
Cash flow from investing activities	-209	365	-98 672	-672	-952
Borrowings	75 000	160 325	75 000	160 325	360 000
Repayment of loans	-30 133	-10 842	-290 540	-16 272	-25 807
Paid dividends	-37 361	-37 360	-37 361	-37 360	-37 361
Cash flow from financing activities	7 506	112 123	-252 901	106 693	296 832
Cash flow for the year	284 823	-88 957	-377 296	-182 895	537 604
Cash and cash equivalents at beginning of year	77 638	107 853	739 825	201 509	201 509
Exchange-rate differences in cash and cash equivalents	373	-45	304	237	712
Cash and cash equivalents at year-end	362 833	18 851	362 833	18 851	739 825

Consolidated statement of changes in equity

Consolidated statement of changes in equity
		Additiona l			Tota l,	Non
	Sha re c a pita l	pa id- in c a pita l	Re se rve s	Re ta ine d e a rnings	Eolus's sha re holde rs	c ontrolling inte re sts	Tota l e quity
KSEK
At 1 September 2017	24 907	190 843	369	441 673	657 791	1 719	659 510
Net profit for the year				43 386	43 386	-86	43 299
Other comprehensive income			-215		-215	8 5	-129
Total comprehensive income			-215	43 386	43 171	-1	43 170
Transactions with shareholders
At 28 February 2018	24 907	190 843	154	447 697	663 601	1 718	665 320
Net profit for the year				151 074	151 074	-61	151 014
Other comprehensive income			-650	-14	-664	255	-409
Total comprehensive income			-650	151 060	150 411	194	150 605
At 31 August 2018	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
Justerat per 1 september 2018	24 907	190 843	-496	578 759	794 013	1 912	795 924
Net profit for the year				39 725	39 725	-46	39 680
Other comprehensive income			-294	1 1	-283	4 1	-242
Total comprehensive income			-294	39 736	39 443	-5	39 438
Transactions with shareholders
Dividend				-37 361	-37 361		-37 361
At 28 February 2019	24 907	190 843	-789	581 134	796 091	1 907	797 999