Eolus Vind — Earnings Release 2020

Apr 23, 2020

The shares in the project company Øyfjellet Wind divested

3 Months December 2019 – February 2020

• Net sales 259.4 (370.2) MSEK.
• EBIT 53.0 (25.9) MSEK. Profit before tax 57.7(31.2) MSEK. Net profit 75.7 (38.7) MSEK.
• Earnings per share, before and after dilution equals 3.04 (1.55) SEK.
• During the three month period 0 (3) wind turbines were taken into operations with a total installed capacity of 0 (10.8) MW.
• During the three month period the equivalent of 1 (3) wind turbines with an installed capacity of 0.8 (10.8) MW was handed over to customers.
• At the end of the period Eolus had 687 (421) MW under asset management.
• In December 2019, Aquila Capital acquired all shares in Øyfjellet Wind AS, that holds the rights to establish wind farm Øyfjellet with a capacity of 400 MW. Eolus will handle the construction management of the wind farm on behalf of the customer.

Significant events after the balance sheet date

In March 2020 the project company Øyfjellet Wind AS, which Eolus has a construction management agreement with, signed a turbine supply agreement with Nordex regarding 72 wind turbines of the model N149 with a total installed capacity of 400 MW. A 20-year Premium Service contract with options for extension has also been signed.

Financial summary	Inte rim	Inte rim	6 month	6 month	Full ye a r
	De c 2 0 19	De c 2 0 18	Se p 2 0 19	Se p 2 0 18	Se p 2 0 18
	- Fe b 2 0 2 0	- Fe b 2 0 19	- Fe b 2 0 2 0	- Fe b 2 0 19	- Aug 2 0 19
Net sales, MSEK	259,4	370,2	553,7	477,9	2 031,9
EBIT, MSEK	53,0	25,9	105,3	35,5	118,3
Profit before tax, MSEK	57,7	31,2	95,2	33,3	116,0
Changes in market valuation of financial derivatives, MSEK	-6,1	-24,8	20,0	-21,2	-24,9
Net profit, MSEK	75,7	38,7	117,8	39,7	132,8
Earnings per share before and after dilution, SEK	3,04	1,55	4,73	1,59	5,33
Equity per share, SEK	38,78	31,96	38,78	31,96	35,65
Cashflow from operating activities, MSEK	-148,4	277,5	-400,0	-25,7	566,6
Total assets, MSEK	1 868,6	1 708,5	1 868,6	1 708,5	2 057,8
Net debt - /net cash +, MSEK	355,1	209,6	355,1	209,6	800,1
Signed customer contracts, MSEK	5 116,6	3 116,8	5 116,6	3 116,8	1 348,9
No of turbines taken into operation, amount	-	3,0	43,0	3,0	31,0
No of turbines handed over to customers, amount	1,0	3,0	44,0	4,0	34,0
Turbines taken into operation, MW	-	10,8	163,4	10,8	115,2
Turbines handed over to customers, MW	0,8	10,8	164,2	12,8	120,0
Managed turbines, MW	687	421	687	421	524
Equity/assets ratio, %	51,6	46,7	51,6	46,7	43,2
Return on equity after tax, %	23,9	26,1	23,9	26,1	15,6

Project portfolio

Eolus' success as a developer of renewable energy projects is in large dependent on access to a highquality project portfolio that develops and is optimized over time. Over time the project portfolio consists of projects for wind, solar and storage in different phases developed by Eolus or acquired from others. Development and optimization of projects is done during a long period of time. Development and optimization of the most important projects in the total project portfolio is therefore key activities for Eolus.

To increase the long-term visibility of our activities the company in conjunction with the interim report for the first period of the fiscal year redefined the classification of our project portfolio and will clarify the communication for our most prioritized projects for establishment from 2022 onwards. The intention is to describe the progress of the projects in interim reports and on Eolus website and continually add information about future projects when they reach the late development phase.

All project development normally occurs at Eolus own risk and even if Eolus has well developed processes for project development, there is a risk that some projects might not be able to establish due to market och permit factors in the future.

Projects under establishment

Project	Location	Number of WTG	Capacity, MW	Estimated production, GWh	Planned commissioning	Comment
Wind Wall	Tehachapi, California, USA	13	47	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. Construction of roads and foundations is ongoing. Sales process is ongoing.
Stigafjellet	Bjerkheim, Norway, NO2	7	30	120	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 completed. Delivery of components for the wind turbines has started.
Bäckhammar	Kristinehamn/ Degerfors, Sweden, SE3	31	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 autumn of 2020. Turbine supply agreement signed with Vestas. Construction of roads and foundations is completed. Delivery of components for the wind turbines has started.
Öyfjellet	Vefsn, Norway, NO4	72	400	1,400	2021	Fully concessioned. Grid capacity reserved. 15 year PPA signed with Alcoa. The customer Aquila Capital has acquired all shares in the project company . Turbine supply agreement signed with Nordex. Construction of the wind farm and the electricity system has started.

Projects in late development phase or sales phase

Project	Location	Technology	Capacity, MW	Planned commissioning Comment
Stockåsbodarna	Sundsvall, Sweden	Wind	44	2022	Sales and procurement process initiated. Environmental permit appealed. Grid connection secured.
Rosenskog	Falköping, Sweden	Wind	16	2022	Sales and procurement process initiated. Environmental permit with legal force.
Dållebo	Ulricehamn, Sweden	Wind	22	2022	Sales and procurement process initiated. Environmental permit with legal force.
Boarp	Vaggeryd, Sweden	Wind	22	2022	Sales and procurement process initiated. Environmental permit appealed. The Land and Environment Court rejected all of the appeals in March 2020. A leave to appeal is required if the Land and Environment Court of Appeal is to consider the appeals.
Ölme	Kristinehamn, Sweden	Wind	64	2023	Environmental permit with legal force for maximum height of 150 meters. Appclication for increased maximum height in process.
Stor-Vrången	Ockelbo, Sweden	Wind	49	2022	Environmental permit with legal force for maximum height of 150 meters. Ongoing optimization in regards to the restriction of the permit.
Fågelås	Hjo, Sweden	Wind	49	2023	Environmental permit with legal force for maximum height of 150 meters. Appclication for increased maximum height in process.
Vaberget	Sollefteå, Sweden	Wind	49	2024	Environmental permit with legal force. The project dependent on other projects being connected to a new grid sub station.
Siggebohyttan	Lindesberg, Sweden	Wind	20	2024	Application for environmental permit submitted. Wind measurments to begin during 2020. Environmental permit granted for 4 of 15 wind turbines in March 2020. Eolus is preparing an appeal of the decision to the Land and Environment Court to grant permit for more wind turbines.
Pörtom	Närpes, Finland	Wind	44	2023	Permit with leagl force. The project is dependent on grid connection with other projects in the area.
Peineva/Dobele	Tukums och Dobele, Latvia	Wind	172	2024	Environmental impact assessment aproved at the federal level. Negative decision on municipality level in March 2020. Eolus is preparing an appeal of the municpal decision.
Centennial Flats	Arizona, US	Solar & Storage	500 + 250	2023	Grid connection secured. Required permits are expected to be obtained during 2020.
Group			1 301

As of April 23, 2020

Consolidated income statement	Inte rim	Inte rim	6 month	6 month	Full ye a r
	De c 2 0 19	De c 2 0 18	Se p 2 0 19	Se p 2 0 18	Se p 2 0 18
KSEK	- Fe b 2 0 2 0	- Fe b 2 0 19	- Fe b 2 0 2 0	- Fe b 2 0 19	- Aug 2 0 19
Net sales	259 376	370 154	553 728	477 927	2 031 911
Other operating income	-3 065	7 418	24 470	15 162	58 706
	256 311	377 572	578 197	493 090	2 090 617
Operating expences
Change in inventories of wind turmbines,
wind turbines under construction and projekts	-5 600	-137 319	30 541	3 552	-289 576
Cost for goods and project development	-167 419	-164 310	-447 319	-387 110	-1 503 682
Other external costs	-18 900	-14 144	-31 407	-26 746	-58 141
Employee benefits expenses	-8 426	-9 686	-16 676	-18 777	-39 088
Depreciation/amortization and impairment of
property, plant and equipment and intangible	-1 170	-1 435	-3 189	-2 588	-4 968
Other operating expenses	-1 777	-24 824	-4 888	-25 910	-76 842
Operating profit	53 020	25 855	105 259	35 511	118 321
Profit/loss from financial items	4 668	5 370	-10 063	-2 165	-2 350
Profit before tax	57 688	31 225	95 196	33 346	115 971
Tax on profit	18 041	7 461	22 644	6 333	16 823
Net profit for the period	75 729	38 687	117 840	39 680	132 794
Whereof related to the shareholder of the
parent company	75 745	38 710	117 878	39 725	132 876
Whereof related to minority stakeholders	-16	-24	-38	-46	-82
Net profit for the period	75 729	38 687	117 840	39 680	132 794
Total shares	24 907	24 907	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	3,04	1,55	4,73	1,59	5,33

Consolidated statement of comprehensive income KSEK
Net profit for the period	75 729	38 687	117 840	39 680	132 794
Other comprehensive income
Translation differences	-5 612	-106	-5 288	-242	-1 501
Other comprehensive income for the period
net after tax	-5 612	-106	-5 288	-242	-1 501
Total comprehensive income for the period	70 117	38 581	112 551	39 438	131 293
Whereof related to the shareholder of the
parent company	70 368	38 559	112 896	39 443	131 169
Whereof related to minority stakeholders	-251	2 2	-345	-5	125
Total comprehensive income for the period	70 117	38 581	112 551	39 438	131 293

Consolidated balance sheet KSEK	Fe b 2 9 2020	Fe b 2 8 2 0 19	Aug 3 1 2 0 19
ASSETS
Non-current assets
Intangible assets	36 018	71 090	54 084
Property, plant and equipment	31 283	39 792	31 810
Deferred tax asset	10 421	1 770	4 421
Other financial assets	17 053	20 721	20 502
Total fixed assets	94 775	133 373	110 817
Current assets
Inventories, work in progress	529 642	675 033	472 359
Advance payment to suppliers	371 815	309 420	277 014
Account receivable - trade	96 117	22 664	25 277
Derivative instruments	297	-	-
Current tax assets	74 493	8 863	5 705
Other receivables	126 446	27 115	35 411
Prepaid expenses and accrued income	62 479	169 169	28 223
Cash and bank balances	512 529	362 833	1 102 983
Total current assets	1 773 818	1 575 097	1 946 973
TOTAL ASSETS	1 868 594	1 708 470	2 057 789
	Fe b 2 9	Fe b 2 8	Aug 3 1
KSEK	2020	2 0 19	2 0 19
EQUITY AND LIABILITIES
Equity
Equity related to the share holders of parent company	965 992	796 091	887 817
Equity related to minority stake holders	-948	1 907	2 037
Total equity	965 044	797 999
			889 854
Non-current liabilities
Non-current interest bearing liabilities	154 731	152 667	152 400
Provision, non current	765	1 577	925
Deferred taxes	27 252	36 468	6 153
Other liabilities Total non-current liabilities	281 183 028	268 190 980	284 159 762
Current liabilities
Current interest bearing liabilities	2 698	533	150 533
Bills payable	164 099	126 386	229 381
Derivative instruments	17 854	33 859	37 521
Current tax liabilities	7 5	9 5	3 2
Accrued expenses and deferred income	187 362	59 563	91 585
Advance paument from customers	331 217	496 626	293 791
Other liabilities	17 217	2 430	205 330
Total current liabilities Total equity and liabilities	720 522 1 868 594	719 491 1 708 470	1 008 173 2 057 789

Consolidated cash flow statement	Inte rim	Inte rim	6 month	6 month	Full ye a r
	De c 2 0 19	De c 2 0 18	Se p 2 0 19	Se p 2 0 18	Se p 2 0 18
KSEK	- Fe b 2 0 2 0	- Fe b 2 0 19	- Fe b 2 0 2 0	- Fe b 2 0 19	- Aug 2 0 19
Operating activities
Operating profit	53 020	25 855	105 259	35 511	118 321
Non cash items	6 673	30 140	-15 128	26 105	29 896
	59 693	55 995	90 131	61 616	148 217
Interest received	603	1 534	885	1 823	4 261
Interest paid	-3 409	-1 519	-6 743	-4 275	-13 807
Income tax paid	-8 756	-9 556	-30 006	-39 774	-59 140
Net cash flow from operating activities before	48 130	46 454	54 267	19 390	79 532
changes in working capital
Adjustments of working capital	-196 571 -	231 071 -	-454 250 -	-45 113 -	487 098 -
Cash flow from operating activities	-148 441	277 525	-399 983	-25 723	566 630
Acquisition of intangible assets	-	-	-	-96 162	-96 162
Acquisition of property, plant and equipment	-209	-472	-325	-1 139	-1 939
Sales of property, plant and equipment	-	276	400	310	310
Acquisition of participations in subsidaries/asset
acquisition	-	-13	-	-1 681	-1 681
Acquisition of financial assets	-	-	-	-	-1 376
Sales of financial assets	-	-	-	-	6 3
Cash flow from investing activities	-209	-209	7 5	-98 672	-100 785
Repayment of loans	-2 800	-30 133	-152 933	-290 540	-787 617
Cash flow from financing activities	-40 161	7 506	-190 296	-252 901	-103 167
Cash flow for the year	-188 810	284 823	-590 204	-377 296	362 678
Cash and cash equivalents at beginning of year	701 350	77 638	1 102 983	739 825	739 825
Exchange-rate differences in cash and cash
equivalents	-10	373	-250	304	480
Cash and cash equivalents at year-end	512 529	362 833	512 529	362 833	1 102 983

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 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				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
Net profit for the year				93 150	93 150	-36	93 114
Other comprehensive income			-1 381	-44	-1 425	166	-1 259
Total comprehensive income			-1 381	93 106	91 726	130	91 855
At 31 August 2019	24 907	190 843	-2 170	674 240	887 817	2 037	889 854
At 1 September 2019	24 907	190 843	-2 170	674 240	887 817	2 037	889 854
Net profit for the year				117 878	117 878	-38	117 840
Other comprehensive income			-5 031	5 0	-4 981	-307	-5 288
Total comprehensive income			-5 031	117 928	112 896	-345	112 551
Transactions with shareholders
Acquisition of shares from non-controlling interests				2 640	2 640	-2 640	-
Dividend				-37 361	-37 361		-37 361
At 29 February 2020	24 907	190 843	-7 201	757 447	965 992	-948	965 044