Albioma : First-half 2020 results presentation (pdf)

2020 half-year results

27 July 2020

Sommaire

1	Recent update
2	Strategic positioning
3	Operational performance
4	Financial results
5	Outlook
6	Appendix

3

5

15

26

34

38

1 Recent update

Recent highlights

• 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

1. Recent update

2020 half-year results

4

2 Strategic positioning

Albioma

An independent renewable energy producer

Committed to the energy transition through biomass and photovoltaic

Unique partnership for 25 years with the sugar industry to produce renewable energy from bagasse, the fibrous residue from sugar cane

The leading producer of photovoltaic energy in the French overseas territories

Located in mainland France, French overseas territories, Mauritius and Brazil

Key figures
	13					~ 1GW
	567
	thermal power						installed
		experts
	stations						capacity end
							June 2020

2.6 M	€506 m		3.8 TWh
people supplied	2019 revenue		of electricity sold
with electricity					per year
								120
100 MWp		€183 m		kWh/tc
						exported to the
installed		2019 EBITDA
capacity in solar						grid in the
					overseas
	plants
						territories

2. Strategic positioning

2020 half-year results

6

~ 1 GW installed capacity across the world

Of which 841 MW thermal biomass and 100 MWp solar1

West Indies and French Guyana - 216 MW

Guadeloupe, Martinique, French Guyana

182 34

MW MWp

Metropolitan France - 33 MW

and the restof Europe

33

MWp

Strong market shares (2019)

46 % of power generated on Reunion Island

40 % in Mauritius

26 % in Guadeloupe

19 % in Martinique

Indian Ocean - 500MW

Reunion Island,Mauritius, Mayotte

Brazil - 193 MW

193	466	34
MW	MW	MWp

1As of June 2020

2. Strategic positioning

2020 half-year results

7

Liquidity and shareholder structure

Albioma now part of SBF 120 index

Liquidity					Shareholder structure at 30 June 2020
	Euronext	o ther	Dark	OTC	Total
	platefo rms	Pool
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

Source: Bloomberg - 17 July 2020

Number of ordinary shares	31,601,983
in issue - 20 July 2020

2. Strategic positioning

2020 half-year results

8

Three-pronged strategy

1

2

3

Act for the energy transition in French overseas territories

Global rollout of Albioma's expertise

Accelerate the development in solar PV

2. Strategic positioning

2020 half-year results

9

Act for the energy transition in French overseas territories

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

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

Make use of solid recovered fuels (SRF)

2. Strategic positioning

2020 half-year results

10

Global roll-out of Albioma's expertise

From 2000 up until today

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

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

1Source : Empresa de Pesquisa Energética - http://www.epe.gov.br

2. Strategic positioning

2020 half-year results

11

Accelerate and strengthen solar power development

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

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 overseas departments

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: approx. 270 MWp between 2019 and 2020 in the non- interconnected areas and 2.2 GWp in metropolitan France
• Consolidation of our portfolio through selective acquisitions

2. Strategic positioning

2020 half-year results

12

At least 80 % renewable energy target by 2023

In line with French "Climate plan" objectives

<20 %

>80 %

67 %

36 %

33 %

	64 %				2023 target
	2019
2013				Renewable		Fossil

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.

2. Strategic positioning

2020 half-year results

13

Strong extra-financial performance

59/100

ESG score

1

Integrated to

Gaïa Index

75 %

Independance

Achievement of a robust ESG performance (+9 points vs 2018)

Top 20 of the sector (among 65 companies evaluated)

Rewards the best performers from a

panel of 230 SME's and MidCaps

Thorough governance practices sustained by an independent and dynamic Board of Directors

Some of our environmental and social initiatives

Development and solar energy in Madagascar, by providing solar lighting for the Akamasoa village in Madagascar

Commitment to the preservation of biodiversity in 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 2019

2. Strategic positioning

2020 half-year results

14

3 Operational performance

Main impacts of the Covid-19 sanitary crisis

• 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-timework, "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)

3. Operational performance

2020 half-year results

16

3.1 France

France - Thermal Biomass - operations

Plant availability

85.0%

86.7%

Power generation

975

984

In GWh

H1 2019

H1 2020

H1 2019

H1 2020

• 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

3. Operational performance

2020 half-year results

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France - Thermal Biomass - development

Conversion to biomass of our plants in Overseas France

• 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

Port of Jarry, Guadeloupe

Le Moule plant site

3. Operational performance

2020 half-year results

19

France - Solar Power

Number of equivalent full power hours

618	583

Power generation

61	62

In GWh

H1 2019

H1 2020

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

3. Operational performance

2020 half-year results

20

3.2 Mauritius

Mauritius

Plant availability

87.9%	92.2%

Power generation

608

580 In GWh

H1 2019

H1 2020

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-yearextension agreement has been reached with the Central Electricity Board (CEB) related to Terragen's Power Purchase Agreement

Note: share of net income from these entities included in the Group's operating income (EBITDA and EBIT) using the equity method since 2014

3. Operational performance

2020 half-year results

22

3.3 Brazil

GO

2016 SP VALE DO PARANA

2018

ESPLANADA

2015

CODORA

2014

RIO PARDO

Brazil

Power generation

130	131	In GWh

Energy efficiency

56	60

In kWh/tp

H1 2019

H1 2020

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

3. Operational performance

2020 half-year results

24

Ongoing projects in Brazil

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

3. Operational performance

2020 half-year results

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4 Financial results

Income statement by region/ business

(In € millions)	H1 2020	H1 2019	Var
Published	20/19
France - Thermal biomass	217.3	204.7	+6%
France - Solar	(1)	24.1	24.8	-3%
Brazil		8.5	8.9	-4%
Holding & Others	0.8	2.6	-69%
Turnover		250.7	241.0	+4%
France - Thermal biomass	82.6	64.5	+28%
France - Solar	(1)	17.8	18.0	-1%
Brazil		2.2	3.0	-26%
Holding & Others	(2.2)	(0.9)	-156%
EBITDA		100.4	84.5	+19%
Consolidated net income (Group	24.4	18.2	+34%
share)

1. including Spain and Italy

• 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 of the existing plants

4. Financial results

2020 half-year results

27

Revenues up 4% over H1 2019

4. Financial results

2020 half-year results

28

EBITDA €100.4 million up 19% over H1 2019

incl. c. €2m of

direct costs related

to the Covid-19

sanitary crisis

4. Financial results

2020 half-year results

29

Income statement at 30 June 2020

(In € millions)	H1 2020	H1 2019
Published
Revenues	250.7	241.0
EBITDA	100.4	84.5
Depreciation, amortization, provisions & others	(40.3)	(36.3)
Operating income	60.1	48.2
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
Net income, Group share	24.4	18.2
Consolidated earnings per share (in euros)	0.79	0.60

Var 20/19 +4% +19% -11%+25% -18% -26%

+28% +34%

4. Financial results

2020 half-year results

30

Significant level of cash as of June 2020

4. Financial results

2020 half-year results

31

A sound balance sheet

• 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-recourseproject debts other than Brazil debt (€19m) and projects under construction

(In € millions)	30 June 2020	31 Dec 2019	Change
Project debt	821	834	-2%
Corporate debt	93	104	-11%
Total gross debt (excl. IFRS 16)	914	938	-3%
Cash	(118)	(161)	-27%
Guarantee deposits and equivalents	(3)	(4)	-9%
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

4. Financial results

2020 half-year results

32

2020 objectives confirmed

	2019	2020
EBITDA	183	200-210
(in € millions)
Net income (Group	44	48-54
share)

(in € millions)

• 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

4. Financial results

2020 half-year results

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5 Outlook

Investments since 2013 and development outlook

In € millions

New capacities
Galion 2	Solar PV
Combustion
Turbine (Reunion		120
Island)

Existing

Conversion to

biomass of Albioma

Le Moule 3

Brazil	70
140

International

Solar PV -

New Development

Existing capacities

Biomass

Conversion to biomass of the other plants

1 300 - 1 500

Existing	275
IED
275

2013

880

2019

2023

2013 - 2019	2020 - 2023
€880m of committed investments	€450m-650m of new investments to secure

5. Outlook

2020 half-year results

35

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

5. Outlook

2020 half-year results

36

Thank you

for your attention

	Follow us on	and on www.albioma.com
5. Outlook		2020 half-year results 37

6 Appendix

Cash flow statement at 30 June 2020

(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	-	-
Borrowings (increase)		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

1. Variation in Net Working Capital, including the lag to July of payments of receivables, the increase in raw material stocks and spare parts inventories and the acceleration of payments to suppliers in the context of the sanitary crisis,

6. Appendix	has a negative impact on Free cash flow of -€39 million.	2020 half-year results	39

Balance sheet at 30 June 2020

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

6. Appendix

2020 half-year results

40

Long-term debt matched to business profile

Existing debt repayment profile1

Residual life of 11 years

In € millions

									104
								138		11
												8
							85						5
102	96	92				85
			53	80	80
									823	792	730
								705
												653
							607
	563					562								581
533	539
471		476										509
			462
														438
																		368	303
																			238
																				188	147	108	80	61	44
																								32
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	2035
											Project debt		Corporate debt

Note

1. Financial liabilities, excluding bank overdrafts, accrued interest and borrowing costs and excluding new projects

6. Appendix

2020 half-year results

41

Albioma's historical business model

Leading player in the bagasse high-efficiency cogeneration industry

	Operator of high-efficiency	Additional fuel outside the crop period
	 Historically: coal
	cogeneration plants providing steam
	 Progressive substitution of
	to the sugar mill and power to the grid
Sugarcane	biomass for coal
1 ton

Client/Partner				Client
	Steam
	450 kg
Sugar	Electricity	Cogeneration	Electricity	Electricity
30 kwh	120 kwh
refinery		plant		network

Sugar or bioethanol	Bagasse
115 kg	300 kg

6. Appendix

2020 half-year results

42