Voltalia SA — Earnings Release 2016

Sep 19, 2016

2016 interim results and new objectives

• In the first half of 2016, growth of +82% in income to €44.7 million, and an 8.5 point increase in the EBITDA margin to 53.7% of income
• Since 1 July 2016, start of production of 75 MW at the Vila Pará site
• New ambitious objectives by 2019 following the Martifer Solar acquisition

Voltalia (Euronext Paris, ISIN Code: FR0011995588), an international renewable energy player, today announces its 2016 interim results, marked by new strong growth in business and profitability.

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This press release provides information on the consolidated results, produced according to IFRS, that were subject to a limited review by the Statutory Auditors, then examined by the Voltalia Audit Committee, and approved by the Board of Directors.

Financial statements - H1 2016

CONSOLIDATED INCOME STATEMENT

In € million IFRS – non-audited data	30/06/2016	30/06/2015	Change
Revenue	42.0	24.5	+71%
Other income	2.7	na	na
Income1	44.7	24.5	+82%
Operating expenses excluding depreciation, amortisation and provisions	(20.7)	(13.4)	+55%
EBITDA2	24.0	11.1	x 2.2
EBITDA margin	53.7%	45.2%	+8.5 pts
Depreciation, amortisation and provisions	(6.9)	(3.7)	+87%
Operating profit (loss)	17.1	7.5	x 2.3
Financial profit (loss)	(11.4)	(3.0)	Ns
Taxes and levies and other minority interests	(2.0)	(1.3)	Ns
Net profit (loss)	3.7	3.2	+15%
Of which net profit (loss) attributable to owners of the parent	3.0	3.2	-6%

¹ Income includes revenue (or income from ordinary activities) for the Group and the other income associated with the business.

² EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortisation. It is calculated by subtracting the operating profit (loss) from depreciation, amortisation and provisions recognised in current profit (loss) and in operating income and expenses.

In € million IFRS – non-audited data	30/06/2016	30/06/2015	Change
Gross cash flow	11.0	7.3	+50%

Strong growth in business: +82%

Driven mainly by remarkable progress in energy sales in the second quarter, income from business in the first six months of the year increased by 82%. At constant exchange rates, income doubled during the first half of 2016. Voltalia notably benefited from excellent income from its power plants in Brazil, both for those that were already generating revenues in the first half of 2015 (Areia Branca) and those that have been commissioned since then (São Miguel do Gostoso, Oiapoque and Vamcruz: a total of 213 MW).

Doubling of EBITDA with a margin of 53.7%: up +8.5 points

Income growth along with controlled operating expenses supported strong growth of the EBITDA margin that increased by 8.5 points, to reach 53.7%, compared to 45.2% in the first half of 2015. EBITDA thus amounted to €24 million (x 2.1). At constant exchange rates, EBITDA was multiplied by 2.6 compared to the first six months of 2015.

Net profit up: €3.7 million

After depreciation, amortisation and provisions of €6.9 million, up following the commissioning of new production capacity, operating profit posted significant growth at €17.1 million (x 2.3).

Voltalia recorded a financial loss of -€11.4 million, also up sharply due to the commissioning of large power plants in Brazil. Long-term interest rates in Brazil, administered by the BNDES, have been raised since 2015³ in response to the high level of inflation⁴ , as the prices of long-term electricity sales contracts are indexed to inflation. The interest expense of a power plant, at its highest at the time of commissioning, will lower mechanically as the debt is repaid, while the benefit from the sales price increase is permanent.

Net profit amounted to €3.7 million, up by +15%. At constant exchange rates, net profit increased by +44% compared to the first half of 2015.

In € million IFRS - audited data	30/06/2016	31/12/2015	Change
Equity, group share	177.2	153.4	+16%
Minority interests	70.5	57.8	+22%
Current liabilities	178.2	74.9	x 2.4
Non-current liabilities	305.3	265.1	+15%
Fixed assets	639.1	487.8	+31%
Current assets excluding net cash	34.5	19.8	+74%
Available cash	57.7	43.6	+32%
Total balance sheet	731.3	551.2	+33%

CONSOLIDATED BALANCE SHEET

Reinforced financial and cash structure

³ 7.5% during the first half of 2016, compared to 5.5-6% in the first half of 2015.

⁴ Inflation (consumer price index) increased by +8.97% between August 2015 and August 2016 (source: Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística - IBGE).

The Group's financial structure is solid, with equity, Group share, amounting to €177.2 million at 30 June 2016.

Amounting to nearly €58 million, cash grew by €14.1 million, with €15 million in cash generated by operations over the period.

Financial liabilities, for their part, amounted to €437 million at 30 June 2016, 89% of the total consisting of financing in local currencies backed by power plants that are in operation or under construction.

Recent developments

Current installed capacity of 451 MW: +20% since 1 July 2016

After almost tripling its installed capacity between 1 January 2015 and 30 June 2016, Voltalia has continued to grow since 1 July. It is ahead of its initial schedule, having commissioned the first part of the Vila Pará power plant (25 turbines out of a total of 33) that represents an installed capacity of 75 MW out of a total of 99 MW. Thus, Voltalia's total installed capacity to date is 451 MW.

Acquisition of Martifer Solar

On 19 August, Voltalia announced that it had finalised its acquisition of Martifer Solar, a major player on the global solar power market that is a specialist in the development, construction and operation of photovoltaic power plants on behalf of third party customers.

Integration is well advanced and started as soon as the exclusive negotiations were under way. The organisation of the new group and its management team has already been established.

The rapid organic growth of the last few years, along with the Martifer Solar acquisition, have combined to make Voltalia an international leader in renewable energy.

Voltalia is now active in 29 countries, with 423 employees. The company continues its industrial strategy as an integrated producer of renewable energy, while also providing its expertise to third party clients as a service provider.

€45 million in revolving credits obtained

After obtaining, in March 2016, €35 million in revolving credits from the BPCE Group (Banques Populaires – Caisses d'Epargne) for a five-year term, Voltalia announced that in August it had opened credit facilities, also for a five-year term, for an additional €10 million with Bpifrance. Voltalia also has access to bank credit lines with a maturity of under one year. The interest rate of these short- and medium-term credit lines is between 0.8% and 2%.

These sources of financing, opened by the Group's parent company alongside very long-term project financing that are backed by power plants in operation, give Voltalia reinforced financial flexibility for the implementation of its strategy. Nonetheless, the company is still considering options to strengthen its equity base, subject to favorable market conditions, and with due respect to all shareholders.

France: Voltalia prepares for new calls for tender in solar energy

The French energy transition law (Loi de Transition Energétique) aims to increase the share of renewable energy in the overall energy mix to 32% by 2030. It plans for future power plants to market the electricity they produce in the wholesale market or directly with end-use consumers. Moreover, the French government implemented a regular call for tender for a volume of 1,500 MW per year for the first three-year period. In order to prepare for the new regulations, and in its role as an integrated player, Voltalia recently obtained a 'balancing actor' status and was authorised to operate in the purchase of electricity for resale to end-use consumers.

Definition of new objectives up to 2019

The acquisition of Martifer Solar gives Voltalia the means to implement an M³ strategy, in other words multienergy, multi-country, and multi-business models. This latter dimension gives the Group greater options, by allowing it to develop business in new geographic areas for third party customers.

During Voltalia's IPO in 2014, it announced its objectives, and it has reached them all ahead of schedule. Building on this success, the company is announcing new financial and operating objectives.

Installed capacity increased to 1 GW by 2019⁵ : x 2.2

The Group's objective is to reach 1 GW of consolidated installed capacity by end-2019, moving ahead of its previous target by three years. This objective builds on the strong foundation⁶ of its 451 MW of currently installed capacity, including the 24 MW which are in the final construction phase at the Vila Pará site, and on the increased development capacity provided by the integration of Martifer Solar.

In order to reach this objective, Voltalia is relying on 3 GW of projects under development, made up of:

• 215 MW of backlog, individually identified⁷ projects in advanced development stage, which will be built by 2019, and
• 2.8 GW of other projects currently under development on four continents in approximately 23 countries. Approximately 300 MW will be built by 2019, mainly those developed by Martifer Solar.

As well as reaching this capacity, there will be a larger energy and geographic diversification of the portfolio of power plants in operation, with an increase in solar power and the arrival of new geographical areas in the 29 countries where Voltalia is now doing business. Moreover, this installed capacity will give Voltalia the longterm means to finance its own strong growth.

Tripling operating capacity to 3 GW

After integrating the Martifer Solar power plant operations as a service provider for third party clients, Voltalia currently operates 1 GW of generating capacity⁸ .

Voltalia's objective is to increase this capacity in operation to 3 GW by 2019, with 1 GW operated on its own behalf, and 2 GW on behalf of third party customers.

EBITDA objective of €180 million by 2019

With the Group benefitting from gradually reaching these objectives of installed capacity, as well as from its new activities as a service provider, it will seek to increase its consolidated EBITDA to €180 million⁹ by the end of the 2019 financial year.

⁵ Objectives previously announced for 2022 when the 2015 interim results were published.

⁶ Owned capacity, consolidated scope.

⁷ More detailed information is available in the interim operations report, available on the company website.

⁸ Total of the company's own installed capacity, added to capacity operated for third party customers.

⁹ Based on an exchange rate of 4 Brazilian reals for 1 euro.

Confirming the dividend distribution policy from 2018

Voltalia confirms it intends to implement a dividend distribution policy from 2018 for the 2017 financial year, with a distribution rate growing up to 30% of the net profit, Group share.

"We are very proud to have reached all the objectives that we announced during the IPO. Supported by growing financial performance resulting from our organic growth, we today enter into a new phase of development, following our recent acquisition. Solar energy will represent a larger part of our activity, and we will grow our asset base in new countries. In a global sector that has been growing by 20% per year for over 15 years, Voltalia will continue to grow faster than the market," rejoices Sébastien Clerc, CEO of Voltalia.

The full interim financial report for the first six months of 2016 has been made public today, and has been submitted to the French Financial Markets Authority (AMF). It is available on the company website (www.voltalia.com).

The 2016 interim results will be available on our website (www.voltalia.com) on 20 September 2016 at 8.30am.

Calendar: Revenue for Q3 2016, 17 November 2016 (after market closing).

About Voltalia (www.voltalia.com)

• Voltalia is an international player in renewable energies, and a multi-source electricity producer (wind, solar, hydropower and biomass) with an installed capacity of 451 MW, and provides services to third party customers.
• Voltalia is established in 17 countries on 4 continents and has a global capacity that is at the service of its clients.

 Voltalia is listed on the Euronext regulated market in Paris since July 2014 (FR0011995588 – VLTSA).
Actifin	Voltalia
Investor Relations: A. Commerot, acommerot@actifin.fr	General Secretary: Marie de Lauzon
Media Relations: J. Jullia, jjullia@actifin.fr	E-mail: invest@voltalia.com
Tel: +33 (0)1 56 88 11 11	Tel: +33 (0)1 44 63 14 40

Forward-looking statements - Voltalia

This press release contains forward-looking statements. Forward-looking statements are not historical facts. The statements contain forecasts and estimates, as well as assumptions on which they are based. They are statements concerning projects, objectives, intentions and expectations regarding the financial results, events, transactions, future services, product development and potential, and future performance.

These statements are sometimes identified by the words "expect", "anticipate", "believe", "intend to", "estimate", or "plan to", and other similar terms. While Voltalia feels that these forward-looking statements are reasonable, investors are reminded of the fact that these statements are subject to numerous risks and uncertainties that are difficult to forecast, and which in general are beyond Voltalia's control. This means that the results and the actual events that occur can differ significantly from those that are described, implied or expected in the forward-looking statements and information. These risks and uncertainties include inherent uncertainties linked to the decisions of regulatory authorities on whether to award (or not) operational authorisations and building permits, and at what date, the subsidies provided for renewable energy, other factors that can have an impact on the production capacity or the profitability of the Voltalia production sites, as well as those developed or identified in the public documents that Voltalia submits to the French

Financial Markets Authority (AMF), including those set out in the Voltalia registration document, as well as in its interim financial report. Voltalia does not commit to update the forward-looking statements or information other than as required according to applicable regulations, including Articles 223-1 et seq. of the French Financial Markets Authority (AMF) General Regulation.