Encavis AG: Conference Call Q1/2020

Welcome to the world of Encavis - Strategic Outlook >> Fast Forward 2025

Encavis AG, Conference Call 08 January 2020

The use of

infinite resources - this is our future

3

New era - Growing PPA market

Encavis is a European first mover

4

Conservative acquisition strategy for markets with FiT (Feed-in-Tariffs) will be pursued as in the past

We acquire ready-to-build,turnkey-projects or existing parks with Feed-in-Tariffs and operate them over their technical and

commercial life time	>7%
>10 years of experience in these markets still	>7%
>6%
allow for numerous acquisition opportunities in
established markets with satisfying IRRs	>5%

Falling interest rates create an increasing	>6%
competition for FiT projects

However, Encavis reiterates its commitment to

Post tax equity IRR for FiT

stated IRR expectations

>8%

PV projects/higher for wind Market presence for FiT

Market entry planned for FiT

5

Competitive generation costs of PV & wind projects opens new business opportunities

Development of global levelized costs of electricity	Forecasted generation costs for large-scale PV
(USD real 2018 /MWh)	and 2020 Forward Prices1(EUR/MWh)

350
300
250
200
150
100
50
0
2010	2012	2014	2016	2018	2019
1H	1H	1H	1H	1H	1H
Solar-PV	Onshore wind

70

60

50

40

30

20

10

0

														66
													64
							61
										59
		57
					45								51
	Merchant PPA			40		44
	opportunity

34

Spain Italy France Germany UK 2019 expected generations cost for PV

2020 Electricity Forward Price (Dec)

!	In Southern-European markets the generation costs of renewables are already below prices of
2019 Electricity Forwards. This boosts PPA-Markets in countries such as Spain and Italy.

Source: : BNEF, Fraunhofer ISE, Fraunhofer ISE Energy Charts, Goldman Sachs Global Investment Research, 1. Baseload Futures Year Ahead last price am 06.12.2019

6

Conservative acquisition strategy for markets with PPA projects with increasing importance

We acquire ready-to-build,turnkey-projects

or existing parks and negotiate Power Purchase Agreements with companies with very good ratings and operate them over their technical and commercial life time

Our experience from PPA negotiations in Spain (500 MW PV) and UK (40 MW PV) enables Encavis to move to emerging PPA markets like Italy and - in time to come - Germany and France

IRR minimum requirement depends more on risk distribution and rating of the off-taker, to a lesser extent on regulatory risk

>7%

>8%	Post tax equity IRR for PPA
>8%

PV projects/higher for wind

Market presence for PPA

Market entry planned for PPA

7

Worldwide growth in generating capacity of renewables by technology - mostly driven by PPAs

Capacity growth in GW

1000
800
600	28 %
400
200	14
	92
0	39

		82 %
	68 %
		44
45 %	45	119
	215
		438
31	260
176
36	285	321
134

Percentage of PV/Wind of total

Other

Hydropower

Solar

Wind

1994 - 2004 2005 - 2010 2011 - 2016 2017 - 2022

Source: International Energy Agency 2017

8

The need for green energy supply is driving PPA markets

Top offtakers by capacity and source

						3.015
Google Inc	172				3.187
Amazon	344	875	1.219
Microsoft Corp	739	759
		549
Apple Inc	200	749
Norsk Hydro ASA			744
Facebook	690	725
ACT Government	619	669			Solar-PV
		Wind

Market developments

North American market with pioneering role

US companies search partners for PPAs in Europe

ENCAVIS registers increasing demand for PPAs

also in Europe (Nordics, Spain, Italy, Ireland, Germany)

Major PPA deal in Europe in 2017:

Norsk Hydro signed PPA until 2039 for 650 MW wind park in Sweden

PPAs are contracted for time periods from 6 - 20 years

9

Market entry in Spanish PPA market with 300 MW PV park "Talayuela" in realization

Highlights:

			>	Generation capacity:	300 MW
				> Total investment volume in EUR:	~225 m
					Equity/project debt finance level:	43:57
					Full loan repayment within PPA
					runtime of	10 years
	Talayuela	>	Co-investor: Solarcentury with	~20%
			>	Long-term PPA contract with
					fixed price for	10 years
			>	Revenues 1styear of full operation
					in EUR:	~25 m
			>	Post-tax IRR:	>8%
			>	Connected to the grid	late 2020

10

Entering the Spanish Corporate PPA market with 200 MW PV park "Cabrera" in realization

Highlights:

			>	Generation capacity:	~200 MW
				> Total investment volume in EUR:	~158 m
					Equity/project debt finance level:	ca. 50:50
					Full loan repayment within PPA
					runtime of	10 years
			>	Co-investor: Solarcentury with	~20%
			>	Long-term PPA contract (149 MW)
	Cabrera			with Amazon with fixed price for	10 years
	>	Revenues 1st year of full operation
					in EUR:	~16.4 m
			>	Post-tax IRR:	~ 8%
			>	Connected to the grid	late 2020

11

Strong growing PPA-markets - ENCAVIS is a European first mover in solar

Pillars of the Encavis Growth Strategy >> Fast Forward 2025

• Encavis has secured preferred access toknow-how for PPA by establishing a dedicated in-house competence team and by investing in market leading competence platform Pexapark.
• Leveraging knowledge and network as experienced investor based on recently signed PPAs with a leading European Utility and Amazon for in total 500 MW Spanish solar plants.
• Strong Balance Sheet with equity ratio > 24% giving corporates adequate comfort to handle risks fromlong-term PPA contracts.
• Access to early stage projects without taking direct development risk by signing numerous partnership agreements with exclusive rights in Italy, France, Spain, Netherlands, Denmark and Germany.

12

Strategic outlook:

>> Fast Forward 2025

13

ENCAVIS Growth Programme: >> Fast Forward 2025

Growth Initiative

• Investment in RTB and securingearly-stage projects primarily focused on PPA markets
• Ongoing opportunistic acquisitions in FiT markets
• European focus for the time being
• Disposal of minority participations in projects (mainly wind parks) to diversify local wind risk and to recycle cash

Economies of Scale and Scope

• Optimisation of O&M cost
• Optimisation ofSPV-financing
• Cash pooling

14

ENCAVIS Growth Strategy: >> Fast Forward 2025

> Doubling of signed own capacity of 1.7 GW (2019) to 3.4 GW

• Increasing revenue (wa) from 260 to 440 million EUR
• Increasing oper. EBITDA (wa) from 210 to 330 million EUR
• Oper. EBITDA margin of 75%
• Increasing oper. EPS (wa) from 0.40 EUR

to 0.70 EUR	> Growth rate of signed own capacity of 12% CAGR

• Revenue (wa) growth rate of 9% CAGR
• Oper. EBITDA (wa) growth rate of 8% CAGR

> Oper. EPS (wa) growth rate of 10% CAGR > Solid equity ratio of 24% or more

15

Selected measures to fulfill >> Fast Forward 2025

Pipeline	> Currently five strategic partnerships with developers signed
	> Pipeline of 2.0 Gigawatt (GW) minimum secured
Capacity Growth	> 1.7 GW of signed own capacity end of 2019 will be doubled to
	3.4 GW end of 2025
	> Thereof currently 1.2 GW connected to the grid, end of 2020
	1.7 GW and approx. 3.0 GW end of 2025
Recycling of Cash	> Sale of minority stakes up to 49% will be continued
	> Doubled capacity incl. diversified local wind risks
Recycling of Debt	> Shifting EUR ~100 million of debt p.a. from SPV to corporate
	level

16

Growth strategy based on 2019 fundamentals only

Profitable growth outside Europe

Profitable business models in storage technology

Potential reserves in equity capital market transactions and dividend policy post 2021

Further opportunities in

Mergers & Acquisitions

Base case scenario:

>> Fast Forward 2025

Encavis AG

Große Elbstraße 59

22767 Hamburg, Germany

Fon: [phone]

Email: [e-mail]

January 2020

The information provided in this document has been derived from sources that we believe to be reliable. However, we cannot guarantee the accuracy or completeness of this information and we do not assume any responsibility for it. Encavis AG assumes no liability for any errors or omissions or for any resulting financial losses. Investments in capital markets, in particular in stock markets and futures markets, are fundamentally associated with risks and a complete loss of the invested capital cannot be ruled out. Recommendations provided herein do not represent an offer to buy or sell and are not intended to replace comprehensive and thorough advice before making a decision to buy or sell. Copies of the content of this presentation, in particular prints and copies or publications in electronic media, will only be authorized by written consent from Encavis AG.