AI assistant
PNE AG Investor Presentation 2021
334_ip_2021-11-09_64470d74-2513-4aa9-a64a-1997e90d6894.pdf
Investor Presentation
Open in viewerOpens in your device viewer
INVESTOR RELATIONS PRESENTATION
9M | 2021
PNE
POUR NEW KNIGHT
DISCLAIMER
This presentation is for information purposes only and does not constitute a public offer or invitation to subscribe for or purchase any securities of PNE AG and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person in whole or in part.
All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness.
The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on the company's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of applicable Securities Laws.
PNE | Investor Relations Presentation | November 2021
OPERATIONAL HIGHLIGHTS
DYNAMIC OPERATING PERFORMANCE CONTINUES
BUSINESS EXPANSION CONTINUES
- 763.4 MW sold, put into operation or under construction
- Significant project sales of 433.8 MW in 9M: 60 MW in Sweden, 220.6 MW in Romania, 13.2 MW in France, 140 MW in South Africa
- Further 58.8 MW sold in Poland at beginning of Q4
- Increase of pipeline by 729 MW/MWp yoy despite project sales
- Expansion of own generation portfolio makes progress – 364.9 MW in operation, under construction or through tender
- Scale Up – Implementation fully on track
- Investments are ongoing, e.g. in international markets, PV and services (PPA services, on-demand night-time marking, etc.) and start to pay off
- PV pipeline expanded further to 794 MWp (9M 2020: 476 MWp)
- Number of employees nearly unchanged at 475 (9M 2020: 465)
PNE | Investor Relations Presentation | November 2021
*in operation, under construction or through tender as of September 30, 2021
FINANCIAL HIGHLIGHTS
9M RESULT IMPROVED YOY
RESULTS IMPACTED BY INVESTMENTS IN OWN GENERATION PORTFOLIO
- 9M results on target – FY guidance confirmed
- Total output at high level of 134.6m, up 48.4% yoy
- EBITDA up 37.7% yoy
- Project development and Services segments grow
- Investments in own generation portfolio impact group result – reflected by non-realised earnings (“hidden reserves”) of € 19.7m (vs. € 18.2m in 9M 2020)
- Cash position and equity temporarily decreased due to investments in project development and own generation portfolio, but high cash inflow and positive impact on equity expected in Q4 related to Poland sale
PNE | Investor Relations Presentation | November 2021
OWN POWER GENERATION
EXPANSION OF OWN GENERATION PORTFOLIO CONTINUES
365 MW IN OPERATION, UNDER CONSTRUCTION OR THROUGH TENDER
- Target to increase own generation to up to 500 MW by the end of 2023
- Objective of stabilising sales and earnings at a high level
- 173.1 MW of onshore wind projects currently in operation*
- Project Helenenberg added to own generation portfolio – potential for repowering
- Further approx. 130.9 MW intended for portfolio under construction
- Hidden reserves accumulated in portfolio of more than € 100m in total:
| Project | MW | State | Status |
|---|---|---|---|
| Kührstedt-Alfstedt | 43.2 | Lower Saxony | in operation since Q4 2017 |
| Gerdau-Repowering | 21.6 | Lower Saxony | in operation since Q1 2019 |
| Schlenzer | 6.5 | Brandenburg | in operation since Q2 2019 |
| Neuenwalde | 7.2 | Lower Saxony | in operation since Q4 2019 |
| Kittlitz | 17.2 | Brandenburg | in operation since Q4 2019 |
| Laubuseschbach | 3.0 | Hesse | in operation since 2002 |
| Pülfringen | 6.5 | Baden-Würt. | in operation since 2002 |
| Erfeld | 2.6 | Baden-Würt. | in operation since 2002 |
| Papenrode | 22.3 | Lower Saxony | in operation since 2002 |
| Kleinbüllesheim | 4.7 | NRW | in operation since Q4 2020 |
| Langstedt | 8.4 | Schleswig-Holstein | in operation since Q1 2021 |
| Lentföhrden | 8.4 | Schleswig-Holstein | in operation since Q1 2021 |
| Helenenberg | 21.5 | Rhineland-Palatinate | in operation since 2000/01 |
| Total in operation* | 173.1 | ||
| 8 projects | ~ 130.9 | under construction | |
| 2 projects | ~ 60.9 | through tender | |
| Total* | ~ 365 |
PNE
Investor Relations Presentation | November 2021
- as of September 30, 2021
PROJECT PIPELINE
WELL-FILLED PROJECT PIPELINE WIND ONSHORE
MORE THAN 1.1 GW IN PERMITTING PHASE
| Country | I – II | III | IV | Total MW | Sold/Services |
|---|---|---|---|---|---|
| Germany | 1,225 | 544 | 131 | 1,900 | 0 |
| France | 271 | 246 | 0 | 517 | 13 |
| United Kingdom | 43 | 0 | 0 | 43 | 0 |
| Italy | 40 | 0 | 0 | 40 | 0 |
| Canada | 505 | 0 | 0 | 505 | 0 |
| Panama | 280 | 60 | 0 | 340 | 0 |
| Poland | 355 | 0 | 59 | 414 | 0 |
| Romania | 0 | 0 | 0 | 0 | 221 |
| South Africa | 630 | 30 | 0 | 660 | 140 |
| Sweden | 100 | 0 | 0 | 100 | 60 |
| Turkey | 629 | 71 | 0 | 700 | 0 |
| USA | 266 | 167 | 0 | 433 | 0 |
| Total | 4,344 | 1,118 | 190 | 5,652 | 434 |
Phase I – II = Exploration & Development
As of September 30, 2021
Phase III = Planning
Phase IV = Implementation till handover
Sold/Services = sold, but construction management services by PNE
» Total pipeline grows to 5,652 MW (9M 2020: 5,241 MW) despite project sales
» New record level of projects in permitting phase in Germany and France with 790 MW
Germany
» Increase of German pipeline to 1,900 MW (9M 2020: 1,747 MW)
» Construction of project Erfurt Ost (5.5 MW) completed
» Projects Langstedt (12.6 MW / 4.2 MW for third party) and Lentföhrden (8.4 MW) completed for own generation portfolio
France
» Project Nanteuil (13.2 MW) sold to CEE Group in Q2 2021
Poland
» Projects Krzecin (19 MW) and Kuslin (40 MW) under construction; projects were sold at beginning of Q4 2021 to Octopus Renewables
Romania
» 220.6 MW were sold Q2 2021
South Africa
» 140 MW were sold in Q3 2021
Sweden
» Construction of sold wind farm Hultema (59.4 MW) started in Q1 2021
PNE
Investor Relations Presentation | November 2021
PROJECT PIPELINE
RAPID GROWTH OF PV PROJECT PIPELINE CONTINUES
FOUNDATION LAID FOR FURTHER PIPELINE GROWTH IN NEW MARKETS
| Country | I – II | III | IV | Total MWp |
|---|---|---|---|---|
| Germany | 220 | 0 | 0 | 220 |
| France | 25 | 0 | 0 | 25 |
| Italy | 42 | 0 | 0 | 42 |
| Canada | 10 | 0 | 0 | 10 |
| Poland | 55 | 0 | 0 | 55 |
| Romania | 112 | 0 | 0 | 112 |
| USA | 330 | 0 | 0 | 330 |
| Total | 794 | 0 | 0 | 794 |
Phase I – II = Exploration & Development
Phase III = Planning
Phase IV = Implementation till handover
> 3 new markets (France, Canada, Poland) with 90 MWp added to PV pipeline in 2021
> Total PV pipeline at 794 MWp (9M 2020: 476 MWp)
Improved conditions for PV projects
- Photovoltaic installations have become increasingly cost-effective and thus more marketable in the area of electricity generation
- Legal and economic framework conditions for the development of photovoltaic projects are in place in many countries
- Additional markets and projects are being evaluated
PNE
Investor Relations Presentation | November 2021
FINANCIALS
TOTAL OUTPUT AND EBITDA IMPROVED YOY
DRIVEN BY STRONG OPERATING PERFORMANCE AND PROJECT SALES
- Strong increase in Total output of 48.4% yoy
- EBITDA up 37.7% yoy
- Operating performance and earnings driven by:
- Project sales in Sweden, Romania, France, South Africa
- Internal sales related to build-up of own generation portfolio
- Milestone payments of projects that had already been sold in previous years, e.g. Sweden, France
- Project development and general contractor services
- Results from Power Generation and Services
- Expansion of own power generation portfolio reflected by increased non-realised earnings (€ 19.7m vs. € 18.2m in 9M 2020)
- Financial result positively impacted by valuation of interest rate swaps (€ 3.2m)
| In € m | 9M 2021 | 9M 2020 |
|---|---|---|
| Sales | 54.2 | 73.9 |
| Work in progress | 78.8 | 14.2 |
| Other income | 1.6 | 2.6 |
| Total output | 134.6 | 90.7 |
| Cost of materials | -81.0 | -44.9 |
| Personnel | -27.1 | -23.9 |
| Others | -13.8 | -12.7 |
| EBITDA | 12.7 | 9.2 |
| Depreciation | -17.0 | -12.8 |
| EBIT | -4.3 | -3.5 |
| Financial result | -1.1 | -7.5 |
| EBT | -5.2 | -11.0 |
| Taxes | -3.4 | 0.7 |
| Non-controlling interests | -0.3 | -0.9 |
| Net income | -8.5 | -9.4 |
| EPS (in €) | -0.11 | -0.12 |
| EPS (in €) Diluted | -0.11 | -0.12 |
PNE | Investor Relations Presentation | November 2021
FINANCIALS
MIXED PERFORMANCE ACROSS BUSINESS SEGMENTS
PROJECT DEVELOPMENT & SERVICES GROW; WEAK WIND YIELDS BURDEN POWER GENERATION
Project development
» Project development output increases to €134.7m (+58.6%)
» EBITDA increases to €21.0m (+56.8%)
Services
» Services output grows to €15.3m (+4.8%), driven by new service offerings and growth of O&M business
» EBITDA increases to €4.0m (+16.0%), driven by international expansion (Poland, Sweden); only minor COVID19-related restrictions
Electricity generation
» Power generation output decreases to €16.4m (-7.4%) due to weak wind yields and maintenance downtime of Silbitz, partly compensated by increase in production capacities
» EBITDA decreases to €10.9m (-18.9%)
- Before consolidation
Total output
In € m
EBITDA
In € m
PNE
Investor Relations Presentation | November 2021
FINANCIALS
BALANCE SHEET REMAINS ROCK SOLID
PORTFOLIO EXPANSION REFLECTED IN GROWING ASSET BASE AND PROJECT FINANCING
Property, Plant and Equipment
- Transformer stations €15.2m
- Land and building €13.2m
- Own wind farms €157.3m
Inventories
- Onshore Germany €125.3m
- Onshore International €84.9m
- Advance payments €61.1m
Liquidity
- Cash position decreased to €88.3m due to investments in project development and own generation portfolio
in €m as of September 30, 2021 (as of December 31, 2020)
(rounding differences possible)
Equity
- Equity ratio at 24.4%
- Equity ratio “bond” at 27.5%
Non-current debt
- Corporate bond 2018/23 (€50m, 4%)
- Liabilities to banks €313.5m, mainly project financing (non recourse)
- Liabilities from leasing contracts (rights of use) €100.1m
Current liabilities
- Liabilities to banks €23.3m, mainly project financing (non recourse)
- Liabilities from leasing contracts (rights of use) €6.6m
PNE
Investor Relations Presentation | November 2021
STRATEGY
SCALE UP – IMPLEMENTATION IS PROGRESSING
| 2017
Start of ramp-up phase
Structures/ People/Processes
Implement Smart Development Team Hamburg
Start build-up of 200MW portfolio | 2018
Completion of ramp-up phase
First new products/services available
First revenues with new products and services
Partnering
Improvement of financing structure | 2019
Development of project pipeline in the 1st new market
1st PV project in development
Provide additional services and expand consulting solutions
Expansion of Offshore Development | 2020
Start of expansion of own generation power portfolio
Completion and sale of 1st developed project in new markets
1st PPA (Power Purchase Agreement) in foreign markets
Market entrance 2nd market
Sale of 1st Hybrid project | 2021
2022
Expansion of own generation portfolio
Add further new products/services
Product range of different Hybrid Power Plants is in place
Market entrance 3rd market
Identify remaining white spots in regions, value chain and products | 2023
500 MW own power generation portfolio in operation
Finalisation of SCALE UP |
| --- | --- | --- | --- | --- | --- |
| RAMP-UP | TRANSFORM | EXECUTE | DELIVER |
- Postponed due to COVID19-pandemic
PNE | Investor Relations Presentation | November 2021
OUTLOOK
WELL ON TRACK TO ACHIEVE FY TARGETS
- Guidance for FY 2021 confirmed: EBITDA of € 24-32m
- Regulatory environment: further improvements lead to good perspective
- High project activity due to high number of MW under construction (262 MW)
- 131 MW under construction in Germany for own generation portfolio
- Well-filled and growing project pipeline (5,652 MW wind onshore, 794 MWp PV)
- Highest volume ever in permitting phase in core markets Germany and France with 790 MW (wind onshore) offers great potential and good visibility going forward
- Further sales processes still ongoing, e.g. in USA and Panama
- Ongoing investment in own generation portfolio and Scale-Up
PNE
Investor Relations Presentation | November 2021
iStock
INVESTOR RELATIONS PRESENTATION
9M | 2021
PNE
POUR NEW KNIGHT