Eolus Vind — Interim / Quarterly Report 2019

Jan 23, 2020

Largest wind farm to date handed over

3 Months September 2019 – November 2019

• Net sales 294.4 (107.8) MSEK.
• EBIT 52.2 (9.7) MSEK. Profit before tax 37.5 (2.1) MSEK. Net profit 42.1 (1.0) MSEK.
• Earnings per share, before and after dilution equals 1.69 (0.04) SEK.
• During the three month period 43 (0) wind turbines were taken into operations with a total installed capacity of 163.4 (0) MW.
• During the three month period the equivalent of 43 (1.0) wind turbines with an installed capacity of 163.4 (2.0) MW was handed over to customers.
• At the end of the period Eolus had 687 (410) MW under asset management.
• In November 2019, wind farm Kråktorpet (163 MW) was completed and handed over to customer. Eolus will provide technical and administrative services for the wind farm.

Significant events after the balance sheet date

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.

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

Financial summary	Q 1	Q 1	Full ye a r
	Se p 2 0 19	Se p 2 0 18	Se p 2 0 18
	- Nov 2 0 19	- Nov 2 0 18	- Aug 2 0 19
Net sales, MSEK	294,4	107,8	2 031,9
EBIT, MSEK	52,2	9,7	118,3
Profit before tax, MSEK	37,5	2,1	116,0
Changes in market valuation of financial derivatives,
MSEK	26,1	3,6	-24,9
Net profit, MSEK	42,1	1,0	132,8
Earnings per share before and after dilution, SEK	1,69	0,04	5,33
Equity per share, SEK	37,35	31,90	35,65
Cashflow from operating activities, MSEK	-251,5	-303,2	566,6
Total assets, MSEK	1 841,0	1 541,5	2 057,8
Net debt - /net cash +, MSEK	542,9	-30,7	800,1
Signed customer contracts, MSEK	5 302,6	4 418,3	1 348,9
No of turbines taken into operation, amount	43,0	-	31,0
No of turbines handed over to customers, amount	43,0	1,0	34,0
Turbines taken into operation, MW	163,4	-	115,2
Turbines handed over to customers, MW	163,4	2,0	120,0
Managed turbines, MW	687	410	524
Equity/assets ratio, %	50,6	51,7	43,2
Return on equity after tax, %	20,2	25,7	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 we are now redefining 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. 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 ongoing.
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 summer of 2020. Turbine supply agreement signed with Vestas. Construction of roads and foundations is ongoing.
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 . Procurement of wind turbines is ongoing. Construction of roads has started.

As of January 22, 2020

Projects in late development phase or sales phase

Project	Location	Technology	Capacity, MW	Planned commissioning Comment
	Stockåsbodarna Sundsvall, Sweden	Wind	3 9	2022	Environmental permit appealed. Grid connection secured.
Rosenskog	Falköping, Sweden	Wind	1 5	2022	Environmental permit with legal force.
Dållebo	Ulricehamn, Sweden	Wind	2 0	2022	Environmental permit with legal force.
Boarp	Vaggeryd, Sweden	Wind	1 9	2023	Environmental permit appealed.
Ölme	Kristinehamn, Sweden	Wind	6 4	2023	Environmental permit with legal force for maximum height of 150 meters. Appclication for increased maximum height in process.
Stor-Vrången	Ockelbo, Sweden	Wind	4 9	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	4 9	2023	Environmental permit with legal force for maximum height of 150 meters. Appclication for increased maximum height in process.
Vaberget	Sollefteå, Sweden	Wind	4 9	2024	Environmental permit with legal force. The project dependent on other projects being connected to a new grid sub station.
Siggebohyttan	Lindesberg, Sweden	Wind	7 3	2024	Application for environmental permit submitted. Wind measurments to begin during 2020.
Pörtom	Närpes, Finland	Wind	4 4	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	2023	Environmental impact assessment aproved at the federal level. Decision om municipality level for Pieneva expected during 2020.
Centennial Flats Arizona, US		Solar & Storage	500 + 250	2023	Grid connection secured. Required permits are expected to be obtained during 2020.
Group			1 343

Consolidated income statement	Interim	Interim	Full year
	Sep 2019	Sep 2018	Sep 2017
KSEK	-Nov 2019	-Nov 2018	-Aug 2019
Net sales	294 352	107 773	2 031 911
Other operating income	27 535	7 744	58 706
	321 886	115 517	2 090 617
Operating expences
Change in inventories of wind turmbines, wind turbines under
construction and projekts under development	36 140	140 871	-289 576
Cost for goods and project development	-279 900	-222 800	-1 503 682
Other external costs	-12 507	-12 602	-58 141
Employee benefits expenses	-8 250	-9 091	-39 088
Depreciation/amortization and impairment of property, plant
and equipment and intangible	-2 019	-1 154	-4 968
Other operating expenses	-3 112	-1 086	-76 842
Operating profit	52 239	9 656	118 321
Profit/loss from financial items	-14 731	-7 535	-2 350
Profit before tax	37 508	2 121	115 971
Tax on profit	4 603	-1 128	16 823
Net profit for the period	42 111	993	132 794
Whereof related to the shareholder of the parent company	42 133	1 015	132 876
Whereof related to minority stakeholders	-22	-22	-82
Net profit for the period	42 111	993	132 794
Total shares	24 907	24 907	24 907
Profit per share before/after dilution (SEK)	1,69	0,04	5,33
Consolidated statement of comprehensive income
KSEK Net profit for the period	42 111	993	132 794
Other comprehensive income
Translation differences	324	-136	-1 501
Other comprehensive income for the period net after tax	324	-136	-1 501
Total comprehensive income for the period	42 435	857	131 293
Whereof related to the shareholder of the parent company	42 529	884	131 169
Whereof related to minority stakeholders	-94	-27	125
Total comprehensive income for the period	42 435	857	131 293

Consolidated balance sheet KSEK	Nov 3 0 2 0 19	Nov 3 0 2 0 18	Aug 3 1 2 0 19
ASSETS
Non-current assets
Intangible assets	47 158	87 899	54 084
Property, plant and equipment	35 704	40 661	31 810
Deferred tax asset	2 335	3 648	4 421
Other financial assets	19 391	20 502	20 502
Total fixed assets	104 589	152 710	110 817
Current assets
Inventories, work in progress	696 597	750 326	472 359
Advance payment to suppliers	187 213	379 644	277 014
Account receivable - trade	18 956	28 004	25 277
Current tax assets	52 272	-	5 705
Other receivables	37 634	50 134	35 411
Prepaid expenses and accrued income	42 434	101 198	28 223
Cash and bank balances	701 350	77 638	1 102 983
Total current assets	1 736 456	1 388 836	1 946 973
TOTAL ASSETS	1 841 044	1 541 546	2 057 789
	Nov 3 0 2 0 19	Nov 3 0 2 0 18	Aug 3 1
KSEK
			2 0 19
EQUITY AND LIABILITIES
Equity
Equity related to the share holders of parent company	930 347	794 898	887 817
Equity related to minority stake holders	1 943	1 885	2 037
Total equity	932 290	796 783	889 854
Non-current liabilities
Non-current interest bearing liabilities	155 587	77 800	152 400
Provision, non current	929	1 557	925
Deferred taxes	24 811	40 786	6 153
Other liabilities	277	264	284
Total non-current liabilities	181 604	120 406	159 762
Current liabilities
Current interest bearing liabilities	2 858	30 533	150 533
Bills payable	215 615	99 778	229 381
Derivative instruments	11 434	10 938	37 521
Current tax liabilities	4 2	5 762	3 2
Accrued expenses and deferred income	207 974	40 407	91 585
Advance paument from customers	243 462	434 934	293 791
Other liabilities	45 764	2 004	205 330
Total current liabilities Total equity and liabilities	727 149 1 841 044	624 357 1 541 546	1 008 173 2 057 789

Consolidated cash flow statement	Inte rim	Inte rim	Full ye a r
KSEK	Se p 2 0 19 - Nov 2 0 19	Se p 2 0 18 - Nov 2 0 18	Se p 2 0 18 - Aug 2 0 19
Operating activities
Operating profit	52 239	9 656	118 321
Non cash items	-21 801	-4 034	29 896
	30 438	5 621	148 217
Interest received	282	289	- 4 261
Interest paid	-3 333	-2 756	-13 807
Income tax paid	-21 250	-30 218	-59 140
Net cash flow from operating activities before changes in	6 136	-27 063	79 532
working capital
			-
Adjustments of working capital	-257 679-	-276 185-	487 098-
Cash flow from operating activities	-251 543	-303 248	566 630
Acquisition of intangible assets	-	-96 162	- -96 162
Acquisition of property, plant and equipment	-117	-667	-1 939
Sales of property, plant and equipment	400	3 4	310
Acquisition of participations in subsidaries/asset acquisition	-	-1 668	-1 681
Acquisition of financial assets	-	-	-1 376
Sales of financial assets	-	-	6 3
Cash flow from investing activities	283	-98 463	-100 785
Borrowings	-	-	- 721 810
Repayment of loans	-150 133	-260 407	-787 617
Paid dividends	-	-	-37 361
Cash flow from financing activities	-150 133	-260 407	-103 167
Cash flow for the year	-401 392	-662 119	- 362 678
Cash and cash equivalents at beginning of year	1 102 983	739 825	- 739 825
Exchange-rate differences in cash and cash equivalents	-241	-68	480
Cash and cash equivalents at year-end	701 350	77 638	1 102 983

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 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				1 015	1 015	-22	993
Other comprehensive income			-97	-34	-131	-5	-136
Total comprehensive income			-97	981	884	-27	857
At 30 November 2018	24 907	190 843	-593	579 740	794 898	1 885	796 783
Net profit for the year				131 861	131 861	-60	131 801
Other comprehensive income			-1 577	1	-1 576	211	-1 365
Total comprehensive income			-1 577	131 862	130 284	152	130 436
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
At 1 September 2019	24 907	190 843	-2 170	674 240	887 817	2 037	889 854
Net profit for the year				42 133	42 133	-22	42 111
Other comprehensive income			354	42	396	-72	324
Total comprehensive income			354	42 175	42 529	-94	42 435
At 30 November 2019	24 907	190 843	-1 816	716 415	930 347	1 943	932 290