2020 half-year results 27 July 2020 2 0 2 0 h a l f - y e - - PowerPoint PPT Presentation
2020 half-year results 27 July 2020 2 0 2 0 h a l f - y e a r r e s u l t s 1 Sommaire 1 Recent update 3 2 Strategic positioning 5 3 Operational performance 15 4 Financial results 26 5 Outlook 34 6 Appendix
27 July 2020
2 2 h a l f Sommaire
2 2 2 h a l fRecent update Strategic positioning Operational performance Financial results Outlook Appendix
3 5 15 26 34 38
Recent update
4
Strong rise in EBITDA (+19% yoy) and net income, Group share (+34% yoy) COVID-19 – Good resilience of the economic model and normal operation of the facilities – Conversion to biomass of Albioma Le Moule (formerly Albioma Caraïbes) power plant: gradual resumption of work in Guadeloupe after a shutdown due to the confinement measures, leading to a delay of several months (commissioning planned for Q4 2020) Solar Power – 20 MWp of PV projects awarded during the last governmental calls for tenders related to French non-interconnected areas (17 MWp) and continental France (2.9 MWp) Albioma entered the SBF 120 and CAC Mid-60 indexes as of 19 June 2020
Recent highlights
2020 half-year results
Strategic positioning
Albioma
An independent renewable energy producer
Key figures 13
thermal power stations
567
experts
~ 1GW
installed capacity end June 2020
2.6 M
people supplied with electricity
€506 m
2019 revenue
3.8 TWh
per year
100 MWp
installed capacity in solar plants
€183 m
2019 EBITDA
120 kWh/tc
exported to the grid in the
territories
Located in mainland France, French
Committed to the energy transition through biomass and photovoltaic The leading producer of photovoltaic energy in the French overseas territories Unique partnership for 25 years with the sugar industry to produce renewable energy from bagasse, the fibrous residue from sugar cane
6 2020 half-year results
Of which 841 MW thermal biomass and 100 MWp solar1
~ 1 GW installed capacity across the world
46 % of power generated on Reunion Island 40 % in Mauritius 26 % in Guadeloupe 19 % in Martinique
Strong market shares (2019)
Brazil - 193 MW 193 MW Indian Ocean - 500 MW Reunion Island, Mauritius, Mayotte 466 MW 34 MWp Metropolitan France – 33 MW and the rest of Europe 33 MWp West Indies and French Guyana
Guadeloupe, Martinique, French Guyana 182 MW 34 MWp
7
1As of June 20202020 half-year results
Euronext
Dark Pool OTC Total Number of traded shares Daily average - last 6 months 61,648 37,136 3,495 51,112 153,391 Daily average - last 12 months 46,550 30,512 2,682 36,422 116,166 in millions of euros Daily average - last 6 months 1,930 1,167 111 1,625 4,834 Daily average - last 12 months 1,346 871 78 1,073 3,368
Liquidity and shareholder structure
Liquidity Shareholder structure at 30 June 2020
8
Albioma now part of SBF 120 index
Source: Bloomberg – 17 July 2020
2020 half-year results Number of ordinary shares in issue - 20 July 2020 31,601,983
Three-pronged strategy
Act for the energy transition in French overseas territories
1
Global rollout of Albioma’s expertise
2
Accelerate the development in solar PV
3
9 2020 half-year results
Continuing the rise in renewable energy production
Production of reliable energy, guaranteeing security and stability of the grid from 100% renewable sources Solar energy storage projects and 100% storage projects in non interconnected areas aiming to counter the intermittent nature of production
100% biomass target in our plants
Substitution of biomass for coal in plants which recover bagasse Give priority to local biomass, while avoiding conflicting uses (cane straw, forest residues, etc.) and contributing to a circular economy (green waste, etc.) Use of traceable and renewable imported biomass to top up
Make use of solid recovered fuels (SRF)
10 2020 half-year results
Act for the energy transition in French overseas territories
Global roll-out of Albioma’s expertise
Mauritius
40% of the electricity produced on the island today
3 plants currently in operation
1 project under development
Brazil
The world's leading sugar cane producer (700 Mtp)
Use of bagasse for energy production: 8.5% of energy production in Brazil comes from biomass (mainly bagasse)1
3 plants currently in operation
From 2000 up until today In the medium term Continuation of the development in Brazil
Capitalise on our experiences
1 project currently under construction: Vale do Paraná
Continued expansion
Geographical approach: supporting existing sugar- refining partners or exploiting or developing new projects in Latin America, South-East Asia...
Project approach: developing other sources of renewable energies
11
1Source : Empresa de Pesquisa Energética - http://www.epe.gov.br2020 half-year results
Innovative solutions
Positioning on energy storage/network service – 7.4 MW / 14.9 MWh project winner of the October 2019 CRE call for tenders in Mayotte Winner of the CRE tender for solar PV projects with storage in the French
Positioning on targeted and profitable segments
Consolidate our leading position in French overseas markets and strengthen it in mainland France Reference target segments: small and medium rooftops, storage, onsite consumption, land with no conflict of use
A very promising market
Increase in the size of projects eligible to energy purchase obligation rates from 100 kWp to 300 kWp Visibility on tender volumes:
2019 and 2020 in the non- interconnected areas and 2.2 GWp in metropolitan France Consolidation of our portfolio through selective acquisitions
12 2020 half-year results
Accelerate and strengthen solar power development
13 2020 half-year results
At least 80 % renewable energy target by 2023
Fossil Renewable 2023 target <20 % >80 % 64 % 36 % 2013
67% of our energy mix from renewable energy sources Confirmation of the continued increase of the renewable share
Note: Aggregate of fully consolidated companies. Renewable energy (electrical and steam) as a share of total production.
2019
33 % 67 %
In line with French “Climate plan” objectives
Strong extra-financial performance
14
Development and solar energy in Madagascar, by providing solar lighting for the Akamasoa village in Madagascar Commitment to the preservation
Mauritius, by cleaning the Riambel beach reknowned to be a passage way for turtles and dolphins Preservation of water ressources in Guadeloupe, by improving the control and treatment of industrial and rainwater
1. Vigeo Eiris – December 201975 %
Independance
Thorough governance practices sustained by an independent and dynamic Board of Directors
Some of our environmental and social initiatives
Achievement of a robust ESG performance (+9 points vs 2018) Top 20 of the sector (among 65 companies evaluated)
59/100
ESG score
Integrated to Gaïa Index
Rewards the best performers from a panel of 230 SME’s and MidCaps
1
2020 half-year results
Operational performance
16
Good resilience of the activity and normal operation of the facilities thanks to continuity plans & respect of sanitary measures Shutdown of the conversion to biomass worksite of Albioma Le Moule 3 (formerly Albioma Caraïbes) in Guadeloupe during the lockdown period – Gradual resumption of work since May – Force majeure clause claimed with EDF in order to compensate for the unavailability of the plant due to the extension of the conversion shutdown period – Restart of the plant delayed by several months – expected Q4 2020 Construction of photovoltaic plants were halted during the lockdown period and were able to resume since May Direct financial cost of the measures taken during the sanitary crisis amounts to c. €2 million (purchase of protective equipment/masks and reorganisation of the teams to comply with the health measures) No use made of the French State support measures (short-time work, “guaranteed loan”...), increase in stock to prevent fuel shortage, accelerated payment to suppliers Cash position at 30 June 2020: €118 million – No use made of the available credit lines (RCF line fully available on 30 June 2020: €60 million)
2020 half-year results
Main impacts of the Covid-19 sanitary crisis
France
High availability of our plants in the context of the COVID-19 crisis Works for the conversion to biomass of Albioma Le Moule 3 (formerly Albioma Caraïbes) were delayed due to lockdown measures and travel restrictions (started 1 March 2020) – restart of the plant expected Q4 2020
France – Thermal Biomass – operations
Plant availability Power generation
18
In GWh 85.0% 86.7%
H1 2019 H1 2020
975 984
H1 2019 H1 2020
2020 half-year results
Substitution of 100% of the coal used by the Albioma Le Moule 3 (formerly Albioma Caraïbes) plant by 2020 – Net investment of c. €80 million (increased because of covid-19) Major contribution to the energy transition of Guadeloupe (Guadeloupe’s renewables mix to increase from 20% to 35% and reduction of over 85% in the plant’s CO2 emissions Works progressed well in 2019 (Building of wood pellets storage domes) / suspended in March due to lockdown measures. Restart of the work since May 2020 - new commissioning date expected for Q4 2020
France – Thermal Biomass – development
Port of Jarry, Guadeloupe Le Moule plant site
19
Conversion to biomass of our plants in Overseas France
2020 half-year results
618 583
H1 2019 H1 2020
Slight increase in production
– New plant commissioning including two new plants with storage capacities in Sainte-Rose, Guadeloupe (3.3 MWp in June 2019) and at Stade de l’Est in Saint-Denis, Reunion (1.3 MWp in April 2020) – Lower solar irradiation in French Guyana and deteriorated performance on Reunion Island and Spain
Development
– Interruption of the construction works of new plants during the lockdown period – 20 MWp of PV projects awarded though governmental call for tenders in France
France – Solar Power
Number of equivalent full power hours Power generation
20
In GWh
61 62
H1 2019 H1 2020
2020 half-year results
Mauritius
87.9% 92.2%
H1 2019 H1 2020
608 580
H1 2019 H1 2020
Excellent performance of the installations in 2019 and postponement of some maintenance shutdowns Decrease in call rates and production due to the slowdown related to the economic crisis 5-year extension agreement has been reached with the Central Electricity Board (CEB) related to Terragen’s Power Purchase Agreement
Mauritius
Plant availability Power generation
22
In GWh
2020 half-year results
Note: share of net income from these entities included in the Group's operating income (EBITDA and EBIT) using the equity method since 2014
GO SP
2015 CODORA 2014 RIO PARDO 2016 VALE DO PARANA 2018 ESPLANADA
2 3 2 2 h a l fBrazil
56 60
H1 2019 H1 2020
130 131
H1 2019 H1 2020
Very good operational performance of the plants – Stable production despite a slightly lower volume of cane compared to H1 2019 due to heavy rains impacting cane crushing – Optimization of production during intercrop period, in particular for Codora that restarted in early March 2020 thanks to the remaining bagasse from 2019 – Average sale price is up (R$ 265/MWh in H1 2020 vs R$ 249/MWh in H1 2019) More than 90% of sales are secured with medium and long term contracts over the next 5 years
Brazil
Power generation Energy efficiency
24
In GWh In kWh/tp
2020 half-year results
Ongoing projects in Brazil
25 2020 half-year results
Project under construction Vale do Paraná 40% of capital held by Albioma 48 MW installed eventually 25-year contract (start in 2021) Commissioning expected H2 2020 – slightly delayed due to the Covid-19 crisis
Financial results
Income statement by region/ business
27
Additional contributions related to IED compliance riders signed with EDF Good functioning of the thermal plants during the sanitary crisis – some maintenance shutdowns were postponed Solar: production remained stable year-on-year. New plant commissioning in H1 2020 Brazil: Strong decrease of the BRL vs EUR FX rate. Good performances
the existing plants
(In € millions)
H1 2020 H1 2019 Published Var 20/19
France - Thermal biomass 217.3 204.7 +6% France - Solar (1) 24.1 24.8
Brazil 8.5 8.9
Holding & Others 0.8 2.6
Turnover 250.7 241.0 +4%
France - Thermal biomass 82.6 64.5 +28% France - Solar (1) 17.8 18.0
Brazil 2.2 3.0
Holding & Others (2.2) (0.9)
EBITDA 100.4 84.5 +19% Consolidated net income (Group share) 24.4 18.2 +34%
(1) including Spain and Italy2020 half-year results
Revenues up 4% over H1 2019
28 2020 half-year results
EBITDA €100.4 million up 19% over H1 2019
29 2020 half-year results
direct costs related to the Covid-19 sanitary crisis
2020 half-year results
Income statement at 30 June 2020
30
(In € millions)
H1 2020 H1 2019 Published Var 20/19 Revenues 250.7 241.0 +4% EBITDA 100.4 84.5 +19% Depreciation, amortization, provisions & others (40.3) (36.3)
Operating income 60.1 48.2 +25% Net financial result (16.7) (14.2)
Tax (14.3) (11.3)
Effective tax rate 33.3% 34.0%
Consolidated net income 29.1 22.7 +28% Net income, Group share 24.4 18.2 +34% Consolidated earnings per share (in euros) 0.79 0.60
2020 half-year results
Significant level of cash as of June 2020
31
Decrease in gross debt : new debt drawings related to the financing (conversion to biomass, solar PV) of new projects compensated by debt reimbursements – Residual life of 11 years – Group average interest rate of 3.1% (of which France 3.1% and Brazil 7.8%) – 85% of debt covered or at fixed rates – Non-recourse project debts other than Brazil debt (€19m) and projects under construction
2020 half-year results
A sound balance sheet
32
(In € millions)
30 June 2020 31 Dec 2019 Change Project debt 821 834
Corporate debt 93 104
Total gross debt (excl. IFRS 16) 914 938
Cash (118) (161)
Guarantee deposits and equivalents (3) (4)
Total net debt 793 773 3% Net debt / LTM EBITDA 4.0x 4.3x Gearing (1) (2) 160% 148%
(1) Excluding IFRS 16 restatements (2) Net debt / Equity 33
Restart of Albioma le Moule 3 scheduled Q4-2020 and compensation of delays based on force majeure clause Excluding potential new effects related to Coronavirus
2020 half-year results
2020 objectives confirmed
2019 2020
EBITDA
(in € millions)
183 200-210
Net income (Group share)
(in € millions)
44 48-54
Outlook
880 1 300
275 275 120 140 70
Investments since 2013 and development outlook
2013 2019
35 2020 half-year results
Solar PV Brazil Existing Conversion to biomass of the
Solar PV - Development International
2013 – 2019 €880m of committed investments 2020 - 2023 €450m-650m of new investments to secure
Existing
IED
New capacities
Galion 2 Combustion Turbine (Reunion Island)
2023
New capacities
Biomass In € millions
Existing
Conversion to biomass of Albioma Le Moule 3
Why invest in Albioma?
A major player at the heart of the energy transition A future pure player in renewables A continued growth sustained by an investment program of €450m to €650m by 2023 A dividend growth policy with a distribution objective of around 50% of net income (Group share), excluding exceptional items
36 2020 half-year results
Follow us on and on www.albioma.com
2020 half-year results 37
Appendix
2020 half-year results
Cash flow statement at 30 June 2020
(1) Variation in Net Working Capital, including the lag to July of payments of receivables, the increase in raw materialstocks and spare parts inventories and the acceleration of payments to suppliers in the context of the sanitary crisis, has a negative impact on Free cash flow of -€39 million. 39
(In € millions)
H1 2020 H1 2019 Published Cash flow from operations 102.0 86.4 Change in net working capital 1 (39.3) (32.0) Tax paid (11.5) (25.0) Net cash flow from operating activities 51.3 29.4 Operating capex (7.4) (10.4) Free cash flow from operations 43.9 19.0 Development capex (51.0) (60.8) Others / Acquisitions / Disposals (3.2) (0.4) Cash flow from investing activities (54.3) (61.3) Dividends paid to Albioma SA shareholders
33.9 94.3 Borrowings (repayments) (49.8) (80.5) Cost of financial debt (16.6) (14.2) Other 2.9 (2.5) Net cash flow from financing activities (29.6) (2.9) Currency effect on cash (3.0) (0.5) Net change in cash and cash equivalents (43.0) (45.7) Opening cash position and cash equivalents 161.1 95.3 Closing cash and cash equivalents 118.1 49.6
ASSETS (In € millions) 30 June 2020 31 Dec 2019 Goodwill 17 17 Intangible assets & Property, plant and equipment 1,383 1,380 Other non-current assets 32 37 Total non-current assets 1,432 1,434 Current assets 181 164 Cash and cash equivalents 118 161 Total ASSETS 1,731 1,759 EQUITY & LIABILITIES (In € millions) 30 June 2020 31 Dec 2019 Shareholders' equity, Group share 409 425 Non-controlling interests 87 95 Total equity 496 520 Current and non-current financial liabilities 914 938 Debts related to the right of use assets (IFRS 16) 38 36 Other non-current liabilities 129 121 Current liabilities 154 143 Total LIABILITIES 1,731 1,759
40
2020 half-year results
Balance sheet at 30 June 2020
533 563 539 471 462 476 562 607 705 823 792 730 653 581 509 438 368 303 238 188 147 108 80 61 44 32 102 96 92 53 80 80 85 85 138 104 11 8 5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035Project debt Corporate debt
41
Existing debt repayment profile1
Long-term debt matched to business profile
Residual life of 11 years
Note
Project debt Corporate debt
2020 half-year results In € millions
42
Leading player in the bagasse high-efficiency cogeneration industry
Albioma’s historical business model
Bagasse
300 kg
Sugarcane
1 ton
Sugar refinery
Client/Partner
Cogeneration plant Electricity network
Client
Electricity
120 kwh
Electricity
30 kwh
Steam
450 kg
Sugar or bioethanol
115 kg
Operator of high-efficiency cogeneration plants providing steam to the sugar mill and power to the grid Additional fuel outside the crop period
Historically: coal
Progressive substitution of biomass for coal
2020 half-year results