Eolus Vind — Interim / Quarterly Report 2018

Oct 26, 2018

Strongest yearly result so far

3 Months June 2018 – August 2018

• Net sales 1 185.8 (281.4) MSEK.
• EBIT 179.4 (28.2) MSEK. Profit before tax 167.0 (18.3) MSEK. Net profit 155.7 (13.0) MSEK.
• Earnings per share, before and after dilution equals 6.25 (0.52) SEK.
• During the three month period 23 (9) wind turbines were taken into operations with a total installed capacity of 79.4 (19.4) MW.
• During the three month period the equivalent of 25.6 (12.8) wind turbines with an installed capacity of 84.4 (23.9) MW was handed over to customers.
• At the end of the period Eolus had 415 (351) MW under asset management.
• Electricity production from wind farms owned was 5.1 (9.9) GWh with an average revenue of 534 (362) SEK/MWh.
• In July Eolus signed an agreement with ewz regarding the sale of wind farm Stigafjellet comprising 30 MW for a preliminary purchase price of EUR 40.7 million. The wind farm will be commissioned during the second half of 2020.
• In August wind farm Jenåsen (79 MW) in Sundsvall municipality was completed and handed over to Munich Re. The wind farm is covered with a PPA with Google and comprises 23 wind turbines of the model Vestas V126 3.45 MW.
• In August Eolus made public that Richard Larsson, Head of Project delivery, will be part of Eolus Management group as of September 1st 2018.

Full year September 2017 – August 2018

• Net sales 1 366.0 (1 065.7) MSEK.
• EBIT 202.4 (40.2) MSEK. Profit before tax 198.9 (34.2) MSEK. Net profit 194.3 (24.5) MSEK.
• Earnings per share, before and after dilution equals 7.81 (1.02) SEK.
• During the fiscal year 2017/2018 25 (25) wind turbines were taken into operations with a total installed capacity of 83.8 (72.2) MW.
• During the year the equivalent of 30.8 (36.8) wind turbine with an installed capacity of 93.3 (92.8) MW was handed over to customers.
• Electricity production from wind farms owned was 30.2 (58.6) GWh with an average revenue of 470 (423) SEK/MWh.
• For the fiscal year 2017/2018 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)

Significant events after the balance sheet date

• In September Eolus wholly owned subsidiary Eolus North America, Inc, acquired a solar plus storage project under development in western U.S. with a planned capacity of 500 MW solar and 250 MW storage.
• In September Eolus signed an agreement with Siemens Gamesa for the delivery of seven wind turbines of the model SWT-DD-130 with a capacity of 4.3 MW each to the Norwegian project Stigafjellet.
• In September Eolus signed a four-year credit agreement with Swedbank comprising liquidity and construction facilities totaling 1 050 MSEK.
• In October Eolus signed an agreement with KGAL regarding the sale of wind farm Bäckhammar (130 MW) for a preliminary purchase price of EUR 131 million. In a corresponding move Eolus placed an order for 31 wind turbines with Vestas. The wind farm is expected to be commissioned in August 2020.

Financial summery	Q4	Q4	Full year	Full year
	Jun 2018 -Aug 2018	Jun 2017 -Aug 2017	Sep 2017 -Aug 2018	Sep 2016 -Aug 2017
Net sales, MSEK	1 185,8	281,4	1 366,0	1 065,7
EBIT, MSEK	179,4	28,2	202,4	40,2
Profit before tax, MSEK	167,0	18,3	198,9	34,2
Changes in market valuation of financial derivatives, MSEK	-1,5	-0,3	2,5	3,7
Net profit, MSEK	155,7	13,0	194,3	24,5
Earnings per share before and after före dilution, SEK	6,3	0,52	7,8	1,02
Equity per share, SEK	32,7	26,41	32,7	26,41
Cashflow from operating activities, MSEK	886,7	77,9	241,7	91,0
Total assets, MSEK	1 895,0	900,8	1 895,0	900,8
Net debt - /net cash +, MSEK	371,1	167,6	371,1	167,6
Signed customer contracts, MSEK	2 887,5	1 061,0	2 887,5	1 061,0
No of turbines taken into operation, amount	23,0	9,0	25,0	25,0
No of turbines handed over to customers, amount	25,6	12,8	30,8	36,8
Turbines taken into operation, MW	79,4	19,4	83,8	72,2
Turbines handed over to customers, MW	84,4	23,9	93,3	92,8
Managed turbines, MW	415	351	415	351
Electricity generation, GWh	5,1	9,9	30,2	58,6
Equity/assets ratio, %	43,1	73,2	43,1	73,2
Return on equity after tax, %	26,4	3,7	26,4	3,7

Priority projects

The market conditions change rapidly when is 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.

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. Project Jenåsen has been completed and handed over to the customer since the previous interim report and is no longer part of the compilation of priority projects.

Project	Location	Number of WTG	Capacity, MW	Estimated production, GWh	Planned commissioning	Comment
Nylandsbergen	Sundsvall, Sweden, SE2	18	68	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. Turbine supply agreement signed with Vestas. Agreement regarding grid connection signed with E.ON Elnät. Construction of roads and foundations are ongoing.
Kråktorpet	Sundsvall, Sweden, SE2	43	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. Turbine supply agreement signed with Vestas. Agreement regarding grid connection signed with E.ON Elnät. Construction of roads and foundations are 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	07-jan	30	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. Turbine supply agreement signed with Siemens Gamesa.
Sötterfällan	Jönköping, Sweden, SE3	10	36	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.
Bäckhammar	Kristinehamn/ Degerfors, Sweden, SE3	30	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.
Öyfjellet	Vefsn, Norway, NO4	80-100	330-400	1,200-1,500	2021	Fully concessioned. Grid capacity reserved. 15 year PPA signed with Alcoa. Sales process initiated.

Consolidated income statement

Consolidated income statement	Q4	Q4	Full year	Full year
	Jun 2018	Jun 2017	Sep 2017	Sep 2016
KSEK	-Aug 2018	-Aug 2017	-Aug 2018	-Aug 2017
Net sales	1 185 825	281 406	1 365 977	1 065 668
Other operating income	319	2 803	22 533	17 379
	1 186 144	284 209	1 388 511	1 083 047
Operating expences
Change in inventories of wind turmbines, wind turbines
under construction and projekts under development	-616 389	7 421	171 724	-183 858
Cost for goods and project development	-352 204	-234 595	-1 248 858	-739 026
Other external costs	-16 635	-11 688	-51 542	-54 382
Employee benefits expenses	-8 426	-6 544	-32 702	-30 650
Depreciation/amortization and impairment of property,
plant and equipment and intangible	-6 089	-4 360	-14 765	-23 423
Result from participations in associated companies	-4 571	-2 570	-4 589	-2 570
Other operating expenses	-2 386	-3 700	-5 367	-8 904
Operating profit	179 444	28 173	202 411	40 233
Profit/loss from financial items	-12 414	-9 915	-3 532	-6 009
Profit before tax	167 030	18 258	198 879	34 224
Tax on profit	-11 379	-5 302	-4 566	-9 720
Net profit for the period	155 652	12 956	194 313	24 504
Whereof related to the shareholder of the parent company	155 674	13 022	194 460	25 317
Whereof related to minority stakeholders	-23	-66	-147	-813
Net profit for the period	155 652	12 956	194 313	24 504
Total shares	24 907	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	6,25	0,52	7,81	1,02

Consolidated statement of comprehensive
income
KSEK
Net profit for the period	155 652	12 956	194 313	24 504
Other comprehensive income
Translation differences	-283	239	-538	172
Other comprehensive income for the period net after tax	-283	239	-538	172
Total comprehensive income for the period	155 369	13 196	193 775	24 677
Whereof related to the shareholder of the parent company	155 297	13 444	193 582	25 729
Whereof related to minority stakeholders	72	-249	193	-1 053
Total comprehensive income for the period	155 369	13 196	193 775	24 677

Consolidated balance sheet

Consolidated balance sheet	Aug 31	Aug 31
KSEK	2018	2017
ASSETS
Non-current assets
Intangible assets	96 162	0
Property, plant and equipment	52 024	111 443
Participations in associated companies	37	3 763
Deferred tax asset	3 095	2 236
Other financial assets	25 953	30 517
Total fixed assets	177 271	147 959
Current assets
Inventories, work in progress	574 666	344 840
Advance payment to suppliers	307 225	128 435
Account receivable - trade	53 018	25 686
Other receivables	37 023	44 493
Prepaid expenses and accrued income	5 973	7 840
Cash and bank balances	739 825	201 509
Total current assets	1 717 730	752 805
TOTAL ASSETS	1 895 002	900 764

	Aug 31	Aug 31
KSEK	2018	2017
EQUITY AND LIABILITIES
Equity
Equity related to the share holders of parent company	814 013	657 791
Equity related to minority stake holders	1 912	1 719
Total equity	815 924	659 510
Non-current liabilities
Non-current interest bearing liabilities	81 780	12 740
Provision, non current	2 107	3 789
Deferred taxes	39 994	57 291
Other liabilities	264	797
Total non-current liabilities	124 145	74 617
Current liabilities
Current interest bearing liabilities	286 960	21 169
Bills payable	140 806	28 276
Derivative instruments	12 647	15 097
Current tax liabilities	35 099	15 598
Accrued expenses and deferred income	61 606	32 483
Advance paument from customers	318 782	51 300
Other liabilities	99 031	2 714
Total current liabilities	954 932	166 637
Total equity and liabilities	1 895 002	900 764

Consolidated cash flow statement

Consolidated cash flow statement	Q4	Q4	Full year	Full year
	Jun 2018	Jun 2017	Sep 2017	Sep 2016
KSEK	-Aug 2018	-Aug 2017	-Aug 2018	-Aug 2017
Operating activities
Operating profit	179 445	28 173	202 411	40 233
Non cash items	7 592	4 633	15 399	23 715
	187 037	32 806	217 810	63 948
Interest received	1 094	-4	2 667	730
Interest paid	-3 034	-1 331	-7 174	-8 632
Income tax paid	5 966	-4 843	-3 424	-1 175
Net cash flow from operating activities before changes	191 062	26 628	209 879	54 871
in working capital
	0	0	0	0
Adjustments of working capital	695 651	51 229	31 845	36 100
Cash flow from operating activities	886 713	77 857	241 724	90 971
Acquisition of property, plant and equipment	-35	-4 852	-1 388	-6 698
Sales of property, plant and equipment	4	-53	437	606
Acquisition of participations in subsidaries/asset acquisition	0	0	0	-4 009
Sales of financial assets	0	231	0	383
Cash flow from investing activities	-31	-4 674	-952	-9 719
Borrowings	240 000	0	360 000	0
Repayment of loans	-423 782	-8 889	-25 807	-47 865
Redemption derivative instrument	0	0	0	-15 810
Capital contribution	-	15	0	0
Paid dividends	0	0	-37 361	-37 361
Cash flow from financing activities	-183 782	-8 873	296 832	-101 035
Cash flow for the year	702 900	64 310	537 604	-19 785
Cash and cash equivalents at beginning of year	36 789	137 315	201 509	221 549
Exchange-rate differences in cash and cash equivalents	136	-115	712	-255
Cash and cash equivalents at year-end	739 825	201 509	739 825	201 509

Specification of movements in equity

Consolidated statement of changes in equity

KSEK	Share capital	Additional paid-in capital	Reserves	Retained earnings	Total, Eolus's shareholders	Non controlling interests	Total equity
At 1 September 2016	24 907	190 843	-42	455 315	671 026	140	671 166
Net profit for the year				25 317	25 317	-813	24 504
Other comprehensive income			412		412	-240	172
Total comprehensive income			412	25 317	25 729	-1 053	24 677
Transactions with shareholders Acquisition of shares from non controlling interests				10	10	-10
Non-controlling interest araised at aquisition of group companies						2 641	2 641
Changes associated company				-1 610	-1 610		-1 610
Dividend				-37 361	-37 361		-37 361
At 31 August 2017	24 907	190 843	369	441 673	657 791	1 719	659 510
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 August 2018	24 907	190 843	-496	598 759	814 013	1 912	815 924