investor relations · pne ag iiinvestor relations presentation may 2019 3 agenda i. ii. iii....
TRANSCRIPT
![Page 1: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/1.jpg)
Investor RelationsPresentation
May 2019
![Page 2: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/2.jpg)
2PNE AG II Investor Relations Presentation II May 2019
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.
![Page 3: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/3.jpg)
3PNE AG II Investor Relations Presentation II May 2019
Agenda
I.
II.
III.
Company Profile & Business Model
Operational Highlights & Financials
4
13
30
IV. Project Pipeline 37
V. Stock & Bonds 40
![Page 4: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/4.jpg)
4PNE AG II Investor Relations Presentation II May 2019
Who we are
![Page 5: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/5.jpg)
5PNE AG II Investor Relations Presentation II May 2019
• PNE Group, consisting of the companies PNE AG
and WKN GmbH, is a leading wind farm developer
located in Northern Germany
> 2,900 MW realised onshore
• Germany’s most successful
project developer with
8 Offshore projects
sold totaling 2,852 MW
• Active in 14 countries
on 3 continents
• Nr. 2 player in operations &
management in Germany with
>1,500 MW under
management
• > € 10bn Euros of
investment done or initiated
…with a strong market position – nationally and internationally
Who we are
We are a leading developer of wind energy projects…
![Page 6: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/6.jpg)
6PNE AG II Investor Relations Presentation II May 2019
Who we are
We have a dedicated & experienced management team
• Seasoned wind energy pioneers with strong industry knowledge and large network
• CEO since May 2016
• COO 2011 - 2016
• Industry experience since 2000
• Sales, M&A, Procurement,
Offshore, Human Resources,
Communication
• CFO since April 2011
• Industry experience since 1999
• Finance and Accounting,
Controlling, Risk Management,
Legal
• COO since September 2016
• Industry experience since 1995
• Project Development,
Implementation, International
Markets
Jörg KlowatChief Financial Officer (CFO)
Markus LesserChairman of the
Board (CEO)
Kurt StürkenChief Operating Officer (COO)
![Page 7: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/7.jpg)
7PNE AG II Investor Relations Presentation II May 2019
• Acquisition of
the site
• Wind analysis
• Selection of
equipment
• Permits
• Financial
analysis
• Legal concept
• Sales/
marketing
• Project financing
• Grid connection
• Infrastructure
• Assembly
• Start-up of
operations
• IPP
• Utility
• Infrastructure
fund
• Insurance
companies
• Technical and
commercial
management
Premium, bankable
projects with high certainty
of realization
Covering the entire value
chain – from a single source
Development, planning,
construction and operation
of wind farms onshore,
offshore and photovoltaics
Development ServiceIPP
Financing ConstructionSale
What we do
We have a successful business model
![Page 8: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/8.jpg)
8PNE AG II Investor Relations Presentation II May 2019
VATTENFALLALLIANZBROOKFIELD INVESTORSDONG
Track Record
Major deals in recent years
2017
OFFSHORE
ATLANTIS I
Atlantis I ~584 MW
• Low double
digit € m payment
• Further milestone
payments expected
2016-17
ONSHORE
Wind farm
portfolio
142 MW of projects
• Enterprise value
(EV) > €330m
• Sales price in 2016
€103m for 80%
• Subsequent sales
price of €21m in
2017 and increase
of EV to > €360m
through optimiza-
tion of financing
UK
Pipeline Deal
2015
ONSHORE
PNE WIND UK ~
1,200 MW of
projects
• GBP 40m upfront
payment
• Up to GBP 63m
in milestones
possible till 2021
2012-18
ONSHORE
Various
international
project sales
• KGAL
• CEE
• CHORUS
• ALLIANZ
• ENBW
• ENEL
• JOHN LAING
2012
OFFSHORE
GODE WIND
Pipeline Deal
Gode Wind
~ 924 MW
• Payments of
€142m received
• Up to €15m due
as milestone
payments
B. Riffgrund
~ 760 MW
![Page 9: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/9.jpg)
9PNE AG II Investor Relations Presentation II May 2019
EBITDA: € 16.5m EBITDA adj.*: € 27.2m
EBIT: 7.8m EBIT adj.*: € 18.5m
2018 EBITDA: € 20 – 26m
EBIT: € 10 – 16m
€ 64m
€ 110m
€ 23.1m
2011 – 2013
2014 – 2016
2017
EBIT: € 60 – 72m
EBIT: € 110 – 130m
EBIT: € 17 – 23m (old: 0 – 15m)
GOALGUIDANCE ACHIEVED
0
10
20
30
40
50
60
70
80
90
100
2011 2012 2013 2014 2015 2016 2017 2018
What we achieved
We generated strong earnings from 2012 – 2018…
Ø EBIT of € 29.4m - In average, an EBIT of € 29.4m
was achieved per year
Ø EPS of € 0.31- In average, an EPS of € 0.31 was achieved
over the last seven years
Ø Dividend of € 0.08/share- An average dividend of € 0.08/share
was paid per year
Average EBIT 2011-2018
Annual EBIT
in €
m.
…and consistently delivered on our targets
* Adjusted for impairment on inventories
![Page 10: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/10.jpg)
10PNE AG II Investor Relations Presentation II May 2019
0
20
40
60
80
100
120
140
160
180
200
in €
Mio
.
Cash
0
10
20
30
40
50
60
70
80
90
100
in €
Mio
.
EBIT
EBIT 3-Jahres-Durchschnitt
48%
34%38%
34%
53%
48%48%
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
in €
Mio
.
Eigenkapital
What we achieved
✓ Equity increased by € 130m
✓ Solid equity ratio despite volatile
earnings
Equity Earnings Liquidity
✓ Ø EBIT of more than € 29m
between 2012 and 2018
✓ Cumulative EBIT of approx.
€ 128m over the last three
years (adjusted for the offshore
impairment ca. € 139m)
✓ Liquidity increased by € 92m
✓ Liquidity position remains on
high level after redemption of
€ 100m corporate bond in 2018
Financials improved significantly since 2012
Equity Equity ratio
EBIT three
year average
EBIT Cash
![Page 11: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/11.jpg)
11PNE AG II Investor Relations Presentation II May 2019
Where we are heading
We want to increase and stabilise returns…
…and substantially reduce volatility in the future
• By 2023, we target
• an EBIT increase of 30-50% compared to the average EBIT of the period 2011-2016
• accompanied by a significant reduction of volatility
Average EBIT
2011-2016
Annual EBIT
EBIT volatility*
* no guidance for
individual years
![Page 12: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/12.jpg)
12PNE AG II Investor Relations Presentation II May 2019
Agenda
I.
II.
III.
Market & Strategy
Operational Highlights & Financials
4
13
30
IV. Project Pipeline 37
V. Stock & Bonds 40
![Page 13: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/13.jpg)
13PNE AG II Investor Relations Presentation II May 2019
Market & Growth Drivers
Markets are becoming more integrated…
Source: e/m/w 2017, PNE AG
Battery storageBattery storage
Power gridPower gridWind
Power-to-heat
Pump
and
compressed
air storage
Households, businesses, industry
Power grid
E-Mobility
Electrolysis
Natural gas drive
MethanationPower gridWind Electrolysis MethanationPower gridWind Electrolysis Methanation Gas grid
Gas and steam power plants
Cogeneration power plants
Electricity flow
Hydrogen
Artificial natural gas
(generated through
green electricity)
Heat supply
CO2
Solar PV
Hydrogen drive
![Page 14: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/14.jpg)
14PNE AG II Investor Relations Presentation II May 2019
Challenges in the current market
• Regulatory uncertainties
• Auctions for grid connections and tariffs
• Growth (in MW) in established markets is stagnating, returns are decreasing
Market & Growth Drivers
Auction systems become the norm…
Global overview of renewable energy auctions
Chile (2016) $29.1/Mwh
Chile (2016) $21.9/Mwh
Peru (2016) $37.2/Mwh
Mexico (2016) $21.04/Mwh
Mexico (2016) $35.85/Mwh
Canada (2017) $85.94/Mwh
Argentinia (2016) $59/Mwh
Argentinia (2016) $49/Mwh
South Africa (2016) $38.32/Mwh
Zambia (2016) $60.2/Mwh
Abu Dhabi (2016) $24.2/Mwh
India (2017) $37.24/Mwh
Dubai (2016) $30/Mwh
Marokko (2016) $30/Mwh
UK (2015) $69.35/Mwh
Germany (2017) 60 €/Mwh
Germany (2017) 42 €/Mwh
Italy (2016) 58 €/MwhSpain (2017) 39 €/Mwh
Egypt (2016) $29.1/Mwh
Countries with auctions or renewable energy tenders in use or planned
Onshore wind bids
Solar PV bids
Source: Bloomberg New Energy Finance
![Page 15: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/15.jpg)
15PNE AG II Investor Relations Presentation II May 2019
Market & Growth Drivers
… and are significantly impacting project pricing
• Increasing market competition, also between various technologies in the renewable energy sector
• Fast decreasing tariffs in auctions – Solar PV is catching up
• Current price trends in tender markets partly anticipate future technological developments and cost
reduction effects
• Larger projects require higher security deposits and greater need for pre-financing
0
20
40
60
80
100
120
140
160
180
2012 2013 2014 2015 2016 2017 2018 2019 2020
US
D/M
Wh
Onshore wind average auction price
Solar PV average auction price
Source: Renewables 2017, IEA
Announced wind and solar PV auction prices by commissioning date
Onshore wind average auction price
Solar PV average auction price
![Page 16: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/16.jpg)
16PNE AG II Investor Relations Presentation II May 2019
Market & Growth Drivers
…But growth drivers are fully intact
Minimum prices for CO2
emissions
![Page 17: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/17.jpg)
17PNE AG II Investor Relations Presentation II May 2019
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
EPEX Day Ahead EPEX Baseload EEG Auction historical Auction modelled
Market & Growth Drivers
Electricity prices will increase
Electricity prices Germany
• Electricity prices will increase as nuclear power plants will go offline in Germany and France
• Prices of CO2 certificates will increase
• This will open up new business opportunities (e.g. project sold in Sweden relies solely
on forecasted energy pricing)
Source: PNE AG
Modelled / AuctionedHistorical
EU
R/M
Wh
2022 2023
November 2017, 3,82 ct/kWh
Mai 2017, 5,78 ct/kWh
August 2017, 4,29 ct/kWh
Februar 2018, 4,73 ct/kWh
Mai 2018, 5,73 ct/kWh
August 2018, 6,16 ct/kWh
![Page 18: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/18.jpg)
18PNE AG II Investor Relations Presentation II May 2019
Market & Growth Drivers
While established markets are stagnating,
growth will be mainly driven by emerging markets
Source: Bloomberg New Energy Finance, Make Consulting, Baringa Analysis
WEAKEST WEAK STRONG STRONGEST
• By 2020 more than 40 countries could
each install >1GW of wind energy
• Diverse development stages
in the different markets offer
different risk / reward profiles
• Emerging markets will experience
a strong increase in energy demand
due to growing populations und
economies
• Ca. 7,200 GW are necessary by 2040
to meet increasing electricity demand
and planned power plant shutdowns
![Page 19: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/19.jpg)
19PNE AG II Investor Relations Presentation II May 2019
Market & Growth Drivers
Growth trend of renewable energies remains unbroken
and will continue in the future
0
10
20
30
40
50
60
70
2015 2020 2025 2030 2035 2040 2045 2050
PW
h/y
r
Solar PV
Offshore Wind
Onshore Wind
Hydro
Other
Gas-fired
Nuclear
Oil-fired
Coal-fired
• Wind and Solar PV will grow significantly and offer huge market potential in the short, mid and long term
• Will increasingly replace electricity generation from conventional energy sources
Source: DNV GL 2017
Solar PV
Offshore Wind
Onshore Wind
Global electricity production by generation type
Ma
rket p
ote
ntial
Hydro
Other
Gas-fired
Nuclear
Oil-fired
Coal-fired
![Page 20: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/20.jpg)
20PNE AG II Investor Relations Presentation II May 2019
We are developing
into a Clean Energy
Solution Provider
Strategy
We are setting the course for the future:
![Page 21: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/21.jpg)
21PNE AG II Investor Relations Presentation II May 2019
Strategy
We are expanding our business:
We develop and
implement wind farms
onshore as well as
offshore.
CLEAN ENERGY
SOLUTION PROVIDERPROJECT
DEVELOPER
We develop and implement projects
and solutions for the planning,
construction and operation of
renewable energy power plants.
SOLUTIONS
CORE
ADAPT
LEVERAGE
EXPAND
Provide clean energy solutions
Grow our core business
Optimize our structures
Leverage our expertise
Expand along the value chain
![Page 22: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/22.jpg)
22PNE AG II Investor Relations Presentation II May 2019
Strategic Portfolio
• Build-up of an onshore project
portfolio of ca. 200 MW in
Europe by end of 2020
• Optimization and sale – partially
or completely
• Acquisition of existing wind farms
over 15 years old for repowering
and acquisition of already well
developed projects
Strategy
We capitalize on our core competencies…
…to open up further elements of the value chain
Services
• Grow O&M business to >2200 MW
under operational management
• Start smart energy supply
management
• Expand consulting solutions and
deliver everything necessary
around operation and optimization
for wind farms
Project development
• Will remain core business
• Significant volume increase above
400 MW p.a. across various
technologies in the mid term
• International markets will drive growth
• Combination of new technologies and
markets creates huge market potential
![Page 23: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/23.jpg)
23PNE AG II Investor Relations Presentation II May 2019
Strategy
We will drive down costs…
• Reduction of other expenses
• Procurement synergies
• Strengthening of core processes
• New IT solutions to improve efficiency
and communication
Reduction of Overhead costs
1. Economies of Scale
• Increase development output to
400 MW p.a. across all technologies
• Increase Strategic Portfolio size
to 200MW
• Increase MW under operational
management to >2,200
2. Cost Reductions
• e.g. through cooperations with wind
turbine manufacturers
• DEVEX
• CAPEX
• OPEX
3. Higher Energy Output
• More efficient wind turbines
Reduction of Project costs
![Page 24: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/24.jpg)
24PNE AG II Investor Relations Presentation II May 2019
• Optimisation of financing structure
• € 100m corporate bond (8% coupon) paid
back successfully
• € 50m growth financing secured through
successful placement of new corporate bond
with 4% coupon
• This results in a reduction of financing costs
of € 6m
• € 25m <4% additionally secured for wind
farm equity
• Increase of recurring revenue basis,
leading to improved credit terms
• Higher margin potential in emerging
markets, especially with government
funding and loans (EKF, KfW, Hermes,
EIB, Weltbank, IPEX etc.)
• Partnering / Cooperations with partners
who guarantee low refinancing costs
Smart Capital Allocation
Strategy
…and invest to increase our competitiveness
Investment of € 10m p.a. on average for:
• Acquisitions of companies at attractive
multiples before synergies
• Acquisition of project rights to expand the
pipeline
• Investment in high potentials
and experts in markets
and technologies
• Investment in additional (regional) offices
and equipment
Additional Investment:
• Acquisition of projects as a basis for
repowering
• Participation in citizen wind energy
projects
Investment
![Page 25: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/25.jpg)
25PNE AG II Investor Relations Presentation II May 2019
Strategy
Scale Up Milestones
2017
2018
2019
2020
• Start of ramp-up
phase
• Structures /
People /
Processes
• Implement Smart
Development
Team Hamburg
• Start build-up of
200MW portfolio
• Completion of
ramp-up phase
• First new
products/services
available
• First revenues
with new products
and services
• Partnering
• Improvement of
financing structure
• 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
• Sale of 200MW
portfolio share
• 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
…
• Add further new
products/services
• Product range
of different Hybrid
Power Plants is in
place
• Start the build-up
of next portfolio
• Market entrance
3rd market
• Identify remaining
white spots in
regions, value
chain and
products
2023
• Finalisation of
SCALE UP
![Page 26: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/26.jpg)
26PNE AG II Investor Relations Presentation II May 2019
Newly defined product range:
• Project development:
− Wind onshore
− Wind offshore
− Photovoltaics (new)
− Hybrid Solutions (new)
• Service products:
− Financial services (new)
− Construction management (new)
− Operational management
− Energy supply services (new)
− Wind planning solutions (new)
• Power generation
First revenues generated with new products:
• In the Service segment: e.g. Construction management and
Financial services in the Wangerland project
Takeovers strengthen competence in services:
• MEB Safety Services: safety technology for wind energy
and industrial plants
• Argus GmbH: on-demand night-time marking systems
Strategy
Implementation of Scale Up – Progress and successes I
Milestones
• First new products /
services available
• First revenues with new
products / services
• Partnering
Progress and successes
![Page 27: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/27.jpg)
27PNE AG II Investor Relations Presentation II May 2019
Organisational framework created:
• Increase of WKN stake to 100% and transformation from
AG to GmbH
• Implementation of Smart Development Team Hamburg
• Adaptation of the organisational structure and processes to
the new, market oriented product structure (in progress)
• Change of name in PNE AG / Rebranding almost
completed
Optimisation of financing structure:
• € 100m / 8% corporate bond paid back
• € 50m / 4% corporate bond placed
• Interest payments decrease by € 6m p.a.
Build-up of 200 MW Portfolio according to plan:
• 71.3 MW already in operation or under construction
Market entry in Panama:
• Hub for Latin America
• Five advanced projects with a potential of approx. 400 MW
taken over
• Great potential for wind and PV
Strategy
Implementation of Scale Up – Progress and successes II
Milestones
• Structures / People /
Processes
• Improvement of financing
structure
• Start of 200 MW portfolio
build-up
• Development of project
pipeline in the 1st new
market
Progress and successes
![Page 28: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/28.jpg)
28PNE AG II Investor Relations Presentation II May 2019
Strategy
Wind Farm Portfolio 2020 – Development according to plan
• Portfolio currently consists of 71.3 MW of projects which are in operation or under construction
• Kührstedt-Alfstedt (43.2 MW, Lower Saxony) entered operations in Q4 2017
• Gerdau-Repowering (21.6 MW, Lower Saxony) in operation since Q1 2019
• Schlenzer (6.5 MW, Brandenburg) under construction – completion in coming weeks
• Remaining projects to bring portfolio to target size of up to 200 MW are already identified within
our project pipeline and are in different development stages
• Earnings accrued in the „Wind farm portfolio 2020“ to date (as of March 31, 2019) – which have not
been realised yet – amount to approx. € 24.6m (thereof approx. € 3.6m in Q1 2019)
• Power generation EBITDA grows to € 4.1m in Q1 2019 (Q1 2018: € 2.9m)
0
1
2
3
4
5
in €
m
EBITDA Electricitygeneration (per quarter)
0
5
10
15
20
25in
€ m
Accrued earnings(cumulative)
![Page 29: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/29.jpg)
29PNE AG II Investor Relations Presentation II May 2019
Agenda
I.
II.
III. Operational Highlights & Financials
4
13
30
IV. Project Pipeline 37
V. Stock & Bonds 40
![Page 30: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/30.jpg)
30PNE AG II Investor Relations Presentation II May 2019
Current Business Development
Operational Highlights Q1 2019
Successes in the onshore wind business – nationally and internationally
Scale Up – Implementation fully on track
Successes in the offshore business
Wind Farm Portfolio 2020 – Progress as scheduled
• Projects completed: Gerdau-Repowering (21.6 MW), Laxaskogen (25.2 MW), Laperrière (19.2 MW)
• 44.4 MW of project rights sold in Italy
• 27.2 MW of projects under construction in Germany
• Tender win of 4.7 MW in Germany
• New permits in Germany received for 30.6 MW
• Total MW in pipeline increased by 321 MW to 5,204 MW
• Borkum Riffgrund 2 put into operation by Ørsted
• 4 offshore wind farms, which were developed by PNE, with output of 1,344 MW now in operation
• Project Gerdau-Repowering (21.6 MW) completed
• Wind farm Schlenzer (6.5 MW) under construction
• Service business strengthened with new products and acquisition of Argus GmbH
• Successful market entry in Panama
![Page 31: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/31.jpg)
31PNE AG II Investor Relations Presentation II May 2019
• Gross cash position at € 125.4m
• Equity increases slightly to € 218.2m; corresponds to book value of € 2.85 per share
• Decrease of equity ratio due to first time application of “IFRS 16 Leases”; remains still solid at 44%
• Corporate rating of BB with a positive outlook was confirmed by Creditreform
• New segment structure: “Project development” / “Service” / “Electricity generation”
• Former segment “Project development” was split up into “Project development” and “Service”
Best Q1 result since 2010
Current Business Development
Financial Highlights Q1 2019
• EBIT of € 15-20m, EBITDA of € 25-30m
• EBITDA at € 6.9m (Q1 2018: € 2.1m), EBIT at € 4.3m (Q1 2018: € -0.2m)
• Earnings driven by strong operating performance
• Earnings accrued in the „Wind farm portfolio 2020“ – which have not been realised yet – amount to € 3.6m in Q1 19
Financial basis remains strong
New segment reporting introduced
Positive outlook for FY 2019 confirmed
![Page 32: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/32.jpg)
32PNE AG II Investor Relations Presentation II May 2019
Financials
Income Statement Q1 2019 (Q1 2018)
In € m Q1 2019 Q1 2018
Sales 28.0 10.9
Work in progress 15.1 4.2
Other income 1.4 0.6
Total output 44.4 15.7
Cost of materials -26.9 -3.7
Personnel -6.5 -5.6
Others -4.2 -4.2
EBITDA 6.9 2.1
Depreciation -2.6 -2.3
EBIT 4.3 -0.2
Financial result -1.9 -3.7
EBT 2.3 -3.9
Taxes -0.7 0.5
Non-controlling interests 0.1 -0.4
Net income 1.6 -3.0
EPS (in €) 0.02 -0.04
EPS (in €) Diluted 0.02 -0.04
• Best Q1 result since 2010 due to strong operating
performance
• Operating performance and earnings driven by:
• Milestone payments for projects which were sold end
of 2018 and results from Power Generation
• Build-up of the „Wind farm portfolio 2020“ which is
expected to be sold until 2020
• Earnings accrued in the „Wind farm portfolio 2020“
to date – which have not been realised yet – amount to
approx. € 24.6m (thereof approx. € 3.6m in Q1 2019)
![Page 33: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/33.jpg)
33PNE AG II Investor Relations Presentation II May 2019
Financials
Segment results Q1 2019
0
2
4
6
8
10
12
Q1 2018 Q1 2019
in E
uro
mill
ion
0
2
4
6
8
10
12
Q1 2018 Q1 2019
in E
uro
mill
ion
Total output* EBITDA* EBIT*
0
5
10
15
20
25
30
35
40
45
50
Q1 2018 Q1 2019
in E
uro
mill
ion
ProjectDevelopment
Services
ElectricityGeneration
* excl. consolidation
![Page 34: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/34.jpg)
34PNE AG II Investor Relations Presentation II May 2019
Financials
Balance Sheet Q1 2019 (IFRS)
• Property, Plant and
Equipment at € 118.3m
• Transformer stations
€ 13.4m
• Land and building € 11.3m
• Own wind farms € 87.1m
• Rights of use € 36.5m
• First time application of
“IFRS 16 Leases”
• Inventories at € 96.6m
• Offshore € 15.4m
• Onshore Germany € 32.5m
• Onshore International
€ 33.1m
• Strong liquidity position
at € 125.4m
• Strong basis to fund
implementation of Scale up
125.4 (129.1) 96.4
(94.3)
33.9(26.5)
181.1 (142.0)
96.6(117.3)
218.2 (216.3)
20.0(18.5)
36.5(0.0)
118.3(96.1)
65.0(65.1)
Assets Equity andLiabilities
in € m as of March 31, 2019 (as of December 31, 2018)(rounding differences possible)
495.8 (452.6) 495.8 (452.6)
• Equity at € 218.2m
• Equity ratio solid at 44% (48%
as of 31 December 2018)
• Book value of € 2.85 per share
• Non-current debt at € 181.1m
• Corporate bond 2018/23
(€ 50m, 4%)
• Liabilities to banks € 89.0m,
which is mainly project
financing (non recourse)
• Liabilities from leasing
contracts (rights of use)
€ 34.6m
• Current liabilities at € 96.4m
• 2014/19 convertible bond
€ 6.5m
• Liabilities to banks € 27.6m,
which is mainly project
financing (non recourse)
• Liabilities from leasing
contracts (rights of use)
€ 2.0m
Intangible Assets
Property, plant and
equipment
Rights of use
Inventories
Cash
Receivables and
other assets
Equity
Non-current debt
Current liabilities
Assets Equity and
Liabilities
Other
![Page 35: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/35.jpg)
35PNE AG II Investor Relations Presentation II May 2019
Onshore wind power
Outlook
Outlook – Promising start to the year
Scale up
Offshore wind power
• Development of project pipeline in the 1st new market Panama
• Examination of entrance into further new markets: e.g. PV international
• 1st PV project in development: PV projects started in Germany and international markets
• Additional services and consulting solutions introduced
• Ongoing consultant agreements with Ørsted and Vattenfall
• Explore new markets (e.g. USA)
• Sale of project Jasna (132 MW) - Poland and sale project rights of Burleigh (298 MW) – USA in Q2/2019
• Promising outlook due to well-filled project pipeline in Germany and France with a total of 357 MW in Phase III
• Continue build-up of Wind Farm Portfolio 2020
• Continue ongoing sales processes in international markets
Positive outlook for FY 2019 confirmed
• EBIT of € 15-20m, EBITDA of € 25-30m
![Page 36: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/36.jpg)
36PNE AG II Investor Relations Presentation II May 2019
Agenda
I.
II.
III. Operational Highlights & Financials
4
13
30
IV. Project Pipeline 37
V. Stock & Bonds 40
![Page 37: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/37.jpg)
37PNE AG II Investor Relations Presentation II May 2019
Current Business Development
Wind Onshore
Phase I – II = Exploration & Development
Phase III = Planning
Phase IV = Implementation till handover
Land I-II III IV Total MW
Germany 1,402 208 27 1,637
Bulgaria 121 0 0 121
France 373 149 0 522
United Kingdom 43 0 0 43
Italy 40 0 0 40
Canada 505 0 0 505
Panama 352 0 0 352
Poland 92 132 0 224
Romania 54 102 0 156
South Africa 230 30 0 260
Sweden 0 170 0 170
Turkey 629 71 0 700
Hungary 0 42 0 42
USA 232 200 0 432
Total 4,073 1,104 27 5,204
As of March 31, 2019
• Germany – Good activity despite delays in
permitting process
• Project Gerdau-Repowering (21.6 MW) completed
• Kittlitz (21 MW) under construction
• Schlenzer (6.5 MW) under construction
• Klein Büllesheim (4.7 MW) successful in tender
• New permits for Willerstedt (13.8 MW) and
Wölsickendorf (16.8 MW)
• France – Strong momentum continues
• Project Laperrière (19.2 MW) completed
• Sweden – Project completed
• Project Laxaskogen (25.2 MW) completed
• Poland – Project sold
• Construction management for Barwice (42 MW)
• Jasna (132 MW) sold to Stadtwerke München [Q2]
• Panama – Pipeline acquired
• 5 projects with approx. 352 MW
• USA – Project sold
• Burleigh sold to Burke Wind, LLC [Q2]
![Page 38: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/38.jpg)
38PNE AG II Investor Relations Presentation II May 2019
Current Business Development
Wind Offshore
Phase 2 = Application conference held, 3 = Hearing held,
4 = Approval granted, 5 = Grid connection, 6 = Investment decision,
7 = Under construction, 8 = In operation
• Borkum Riffgrund 2 put into operation by Ørsted
in Q1 2019
• Active as service provider for projects sold
• Consultant agreements in place with Ørsted &
Vattenfall
• Further milestone payments expected
• Up to € 15m from Gode Wind 4
• Regulatory changes
• According to WindSeeG all projects in Zone 3 to 5
will be brought into the “Central Model” to be
tendered off by the government
• As legal opinions conclude that parts of WindSeeG
are unconstitutional, a constitutional complaint has
been filed in July 2017 together with others
• Our expectation of a successful outcome of the
constitutional complaint and claim for damages
remains unchanged
Zone Sold projects Phase #WEA Total MW Sold to
1 Borkum Riffgrund 1 8 78 312 Ørsted (DONG)
1 Borkum Riffgrund 2 8 56 448 Ørsted (DONG)
1 Gode Wind 1 & 2 8 / 8 55 + 42 582 Ørsted (DONG)
1 Gode Wind 3 & 4 5 / 5 30 242 Ørsted (DONG)
2 Atlantis I 3 73 584 Vattenfall
4 HTOD5 (Nautilus II) 2 68 476 Ventizz/Hochtief
Total 402 2,644
Atlantis I*
Atlantis II
Atlantis III
Nemo
Nautilus I
Jules Verne
Gode Wind 1*
Gode Wind 2*
Gode Wind 3*
Gode Wind 4*
Nautilus II*
Borkum Riffgrund I*
Borkum Riffgrund II*
* Project sold, PNE
act as service provider
1
2
3
4
5
6
7
8
9
10
11
12
13
![Page 39: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/39.jpg)
39PNE AG II Investor Relations Presentation II May 2019
Agenda
I.
II.
III. Operational Highlights & Financials
4
13
30
IV. Project Pipeline 37
V. Stock & Bonds 40
![Page 40: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/40.jpg)
40PNE AG II Investor Relations Presentation II May 2019
1,5
1,7
1,9
2,1
2,3
2,5
2,7
2,9
3,1
3,3
3,5 PNE AG Aktie
2
2,5
3
3,5
4
4,5
5
85
90
95
100
105
110
115
Anleihe 2018/2023
Wandelanleihe 2014/2019
PNE AG
Stock & Bonds
Calendar
WKN / ISIN AOJBPG / DE000A0JBPG2
Number of shares
(3 May 2019)76,557,803
Market capitalization
(3 May 2019)€ 190m
Free Float Approx. 76%
Market segment Prime Standard
Indices CDAX Technology, ÖkoDAX
Designated Sponsors /
Market MakerCommerzbank, Baader Bank
Reuters / Bloomberg PNEGn / PNE3
Corporate bond 2018/2023
(WKN: A2LQ3M)Coupon 4%
Total volume € 50m
Convertible bond 2014/2019
(WKN: A12UMG)
Coupon 3.75%
Strike price € 2.9971
Total volume € 6.6m
Annual General Meeting May 22, 2019
Publication of H1 report August 8, 2019
Publication of Quarterly Statement Q3 November 7, 2019
Analyst Conference November 2019
PNE AG Shares
Corporate bond 2018/2023
Convertible bond 2014/2019
![Page 41: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/41.jpg)
41PNE AG II Investor Relations Presentation II May 2019
• Build up of the Wind Farm Portfolio 2020 progresses as scheduled
• Strategy is tailored to address the significantly changing market conditions,
generate new margin potential and reduce the volatility of earnings driven by a
substantial expansion of the service business
• Great experience and know-how exist in the company
• Shareholder Value is central to all activities
• High cash position, secured financing and strong project pipeline back up the
implementation of the strategy
• Strategic development into a Clean Energy Solution Provider through the Scale
Up programme is progressing according to plan
Summary
Investment Highlights
• Markets are changing, but underlying growth drivers are fully intact
![Page 42: Investor Relations · PNE AG IIInvestor Relations Presentation May 2019 3 Agenda I. II. III. Company Profile & Business Model Operational Highlights & Financials 4 13 30 IV. Project](https://reader036.vdocuments.net/reader036/viewer/2022070108/603fa7c4f4663c0dde4c5bc0/html5/thumbnails/42.jpg)
42PNE AG II Investor Relations Presentation II May 2019
CONTACT
Rainer Heinsohn
Head of Communication
Tel: +49 (0) 4721 – 718 - 453
Fax: +49 (0) 4721 – 718 - 373
E-mail: [email protected]
Christopher Rodler
Head of Investor Relations
Tel: +49 (0) 40 879 331 14
Fax: +49 (0) 4721 – 718 - 373
E-mail: [email protected]
www.pne-ag.comHarnessing the power of the wind means for us
connecting environmental responsibility with
corporate success
PNE AG