Alerion Clean Power SpA : The Board of Directors approves 2013 nine months results

Informal translation of the Italian press releasePRESS RELEASE

Milan, 14 November 2013

Alerion Clean Power S.p.A. :
The Board of Directors approves 2013 nine months results
As a result of the focus on the wind energy sector, in the first nine months of 2013 revenues and profitability of continuing operations have increased compared to 2012. The Group's net financial debt decreased by approximately Euro 47 million euro compared to
31 December 2012
Main Results as at 30 September 2013 (compared to 30 September 2012) :
• Revenues from continuing operations(*)equal to Euro 48.3 million, up from EUR 45.2 million in the first nine months of 2012. Total revenues from electricity production amounted to Euro 49.8 million euro (Euro 54.8 million in the first nine months of 2012, which included Euro 9.6 million related to biomass and photovoltaic plants sold;
EBITDA of continuing operations(*)equal to Euro 32.6 million euro, up from Euro 31.0 million in
the first nine months of 2012. Total EBITDA amounted to Euro 33.0 million compared to 36.8 million at September 30, 2012;
Net result of continuing operations(*)amounted to Euro 2.1 million, up from Euro 0.8 million the
first nine months of 2012. Net Result amounted to Euro 1.5 million euro (1.8 million euro at
September 30, 2012)
Net financial debts (excluding fair value of derivatives) decreases to Euro 253.9 million euro

(*) Continuing operations are represented by the consolidated companies, excluding the disposed companies: Bonollo Energia S.p.A., Bonollo O & M S.r.l. (sold on 27/12/2012) and Solaria Real Estate S.r.l., Acquaviva S.r.l. and Brindisi Solar S.r.l. (sold on 25/06/2013)

***
The Board of Directors of Alerion Clean Power S.p.A. examined and approved 2013 First Nine Months Results, prepared according to the principles of International Accounting Standards/International Financial Reporting Standards (IAS/IFRS).

Consolidated Results

difference

54.8 (4.9)

36.8 (3.8)

31.0 1.6

19.5 (2.7)

4.0 (0.7)

2.2 (1.4)

(Euro million)	30 September 2013	31 December 2012
Net Invested Capital Net Financial Indebtedness Net Financial Indebtedness (excluding fair value of derivatives) Group Shareholders Equity	431.5 285.3 253.9 142.8	472.8 332.3 285.1 138.3

Operational highlights

difference

(41.3) (47.0)

(31.2)

4.5

"We are pleased with the results achieved in the first nine months of 2013, which saw revenues and profitability of continuing operations grow in line with our expectations and perform better than in 2012, confirming the validity of our strategy of focusing on the wind sector. In addition, during the period we recorded a significant reduction in our net debt of approximately Euro 47 million. During 2013, the Group will strengthen its presence in the wind energy sector in Italy continuing to evaluate new opportunities. In this fits the agreement signed this summer with a company of Banco Santander, with which we started the business of engineering and construction for third parties, relying on the experience of development and construction gained over the years, that will join the core business of construction and operation of plants for own account " said Giulio Antonello, CEO of Alerion Clean Power S.p.A..

During the first nine months of 2013, the production of wind turbines has increased by 26,492 MWh compared to the same period last year, due both to the full capacity operation of the San Marco in Lamis plant (54,018 MWh in 2013 compared to 42,862 MWh in 2012 ) and the increased production of other operating plants (268,893 MWh in 2013 compared to 253,557 MWh in 2012).

It should be noted that on June 25, 2013, Alerion Energie Rinnovabili S.r.l. has finalized the sale of its
100% stake in the companies Acquaviva Srl, Solaria Real Estate Srl and Brindisi Solar Srl, holding a portfolio of photovoltaic plants with a total installed capacity of about 4 MW. The total consideration of the sale amounted to Euro 3 million and corresponds to an enterprise value of approximately Euro 23 million. As a result of the disposal, the production of energy from photovoltaic plants has not recorded increases during the third quarter of 2013.
It is also noted that following the sale in December 2012 of the plant located in Anagni, the first nine months of 2013 did not include the production of energy in the biomass sector.
In the course of 2013, moreover, Alerion has integrated its industrial businesses expanding, through its subsidiary Alerion Servizi Tecnici e Sviluppo Srl, in the engineering and construction of wind farms for third parties. In this context, Alerion signed in August 2013 with Capital Riesgo Global SA, a company of Banco Santander, an agreement for the construction and operation of a wind power plant in Italy, in which Alerion will act as a partner industrial. The agreement involves the construction and operation of a wind power plant of 17.5 MW in the municipality of Manfredonia (FG), in which Alerion will maintain an
8% stake. Alerion will be paid to coordinate the construction of the entire plant and, in particular, to perform the civil and electrical works.
2013 First Nine Months Consolidated Results

Revenues for the production of electricity of the first nine months 2013 amounted to Euro 49.8 million euro (Euro 54.8 million 2012 in 2012 first nine months) compared with an electrical output of
326,282 MWh (334,695 MWh in 2012). In particular, revenues of wind energy sector in 2013 first nine
months amounted to Euro 48.3 million, an increase of Euro 3.1 million compared to Euro 45.2 million in the same period of 2012. It is also noted that in the period were recorded the first revenues from the engineering for third parties of approximately Euro 0,7 million.
EBITDA for the first nine months of the 2013 amounted to Euro 33.0 million (Euro 36.8 million in the same period of 2012). This result includes operating costs of approximately Euro 19.0 million. In particular, EBITDA for the first nine months of 2013 of continuing operations (ie. excluding the EBITDA related to disposed operations in late 2012 and in 2013) amounted to Euro 32.6 million, an increase of Euro 1.6 million compared to Euro 31.0 million in 2012.

EBIT for the first nine months of the 2013 amounted to Euro 16.8 million euro (Euro 19.5 million euro in the same period of 2012) and includes depreciation and amortization for Euro 16.1 million euro (Euro 17.3 million euro in 2012) which decrease compared to the first nine months of 2012 was mainly due to the deconsolidation of assets sold.
Profit before taxes for the first nine months of the 2013 amounted to Euro 3.3 million (Euro 4.0 million in 2012) and includes net financial expense of Euro 14.3 million.
Net profit of the first nine months of 2013 is equal to Euro 1.5 million euro (1.8 million euro in
2012). In particular, the net profit of current operating assets in the first nine months of 2013 amounted to Euro 2.1 million euro, an increase of Euro 1.3 million compared to Euro 0.8 million in the first nine months of 2012.
Group Net Profit of 2013 first nine months amounted to 0.8 million euro (2.2 million euro at
September 30, 2012).
Net Invested Capital of the Group as of September 30, 2013 amounted to Euro 431.5 million (Euro
472.8 million at 31 December 2012).
Group Net Equity as of September 30, 2013 amounted Euro 142.8 million, an increase of Euro 4.5 million compared to 31 December 2012. The change is mainly attributable to the profit for the period, the distribution of dividends for Euro 5.2 million, the change in the fair value of derivatives on Project Financing loans, net of tax effect, for Euro 9.5 million, the purchase of treasury shares for € 0.2 million.
Net Financial Indebtedness as of September 30, 2013 amounted to Euro 285.3 million (with a decrease of Euro 47.0 million compared to 31 December 2012). Net Financial Indebtedness includes financial debts relating to the fair value of interest rate swaps on project financing equal to Euro 31.4 million (Euro 47.2 million at December 31, 2012). Therefore, Net Financial Indebtedness of the Group, excluding fair value of interest rate swaps, amounts to Euro 253.9 million at Septemeber 30, 2013 (Euro
285.1 million at December 31, 2012).
At September, 30, 2013, financial leverage, expressed as the ratio between net financial debts and net invested capital, was 66.1% (70.3% at 31 December 2012).

Highlights of the third quarter of 2013
It should be noted that, given the seasonal nature of wind power production, wind plants productivity is mainly concentrated in the autumn and winter months. Therefore, the economic returns for the third quarter are structurally disadvantaged compared to the overall performance of the year.
Revenues from electricity production for the third quarter of 2013 amounted to Euro 9.7 million (Euro 14.6 million in the third quarter of 2012), with an electrical production of 66,639 MWh (87,103 MWh in 2012). The decrease in revenues compared to 2012 was due mainly to the sale of biomass and photovoltaic plants. EBITDA for the third quarter of 2013 is equal to Euro 5.3 million (Euro 8.7 million in the third quarter of 2012) .
Net income for the third quarter of 2013 is negative for Euro 2.9 million (negative for Euro 1.7 million in
the third quarter of 2012). Group net income for the third quarter of 2013 is negative for Euro 3.6 million euro (negative for 1.3 million in the third quarter of 2012).
Significant events following 30 September 2013 and foreseeable evolution

Significant events after 30 September 2013
No significant events occurred after 30 September 2013.
Foreseeable evolution

During 2013 the Group will strengthen its presence in the wind sector, focusing on the management of operating plants and the evaluation of new investment opportunities, technologies.

Press contacts:
Investors and Analysts contacts:
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Simona Raffaelli, Emanuela Borromeo [e-mail]
Tel. [phone]

[e-mail].+39027788901

[e-mail].+39027788901

CONSOLIDATED FINANCIAL STATEMENTS

- Recl a s s i fi ed I ncome Sta tement (€ mi l l i on)
3rd
Quarter

2013
3rd
Quarter
2012
Nine Months
2013
Nine Months
2012

9.7	14.6 Revenues from electricity production	49.8	54.8
5.3	8.7 Gross operating margin (EBITDA)	33.0	36.8
0.0	3.2 Net operating margin (EBIT)	16.8	19.5
(4.6)	(2.3) Earnings before taxes (EBT)	3.3	4.0
(2.9)	(1.7) Net income / (loss)	1.5	1.8
(3.6)	(1.3) Net income / (loss) attributable to the Group	0.8	2.2

CONSOLIDATED FINANCIAL STATEMENTS - Recl a s s i fi ed Statement of Fi nanci al Pos i ti on (€ mi l l i on)
	30 September 2013	31 December 2012
Intangible assets	80.4	86.3
Property, plant and equipment	307.8	340.7
Fiancial Assets	0.9	0.6
Total fixed assets and long-term investments	389.1	427.6
Other non-fi nanci al as s ets and l i abi l i ti es	42.4	45.2
NET INVESTED CAPITAL	431.5	472.8
Shareholders' equity attributable to the Group	142.8	138.3
Non-controlling interest	3.4	2.2
Shareholders' equity	146.2	140.5
Cas h a nd Cas h equi va l ents	52.8	54.5
Other fi nanci a l as s ets a nd l i a bi l i ti es	(338.1)	(386.8)
Net financial indebtedness	(285.3)	(332.3)
SHAREHOLDERS' EQUITY + NET FINANCIAL INDEBTEDNESS	431.5	472.8

CONSOLIDATED FINANCIAL STATEMENTS

- Net Fi na nci a l I ndebtednes s (€ mi l l i on)

	30 September 2013	31 December 2012
(€ mi l l i on) Cash and Cash equivalents - Ca s h a t ba nks	52.8	54.5
Cash and cash equivalents	52.8	54.5
Current financial receivables	2.7	2.0
Current financial liabilities - Other fi na nci a l l i a bi l i ti es	(4.1)	(4.3)
- Borrowi ngs from ba nks	(61.2)	(51.9)
- Pa ya bl es to a s s oci a tes	(3.5)	(3.5)
- Deri va ti ve fi na nci a l i ns truments	(8.8)	(9.9)
Totale passività finanziarie correnti	(77.6)	(69.6)
CURRENT FINANCIAL DEBT	(22.1)	(13.1)
Non-current financial liabilities - Other fi na nci a l l i a bi l i ti es	(8.8)	(9.8)
- Borrowi ngs from ba nks	(243.3)	(278.7)
- Deri va ti ve fi na nci a l i ns truments	(22.6)	(37.3)
NON-CURRENT FINANCIAL DEBT	(274.7)	(325.8)
NET FINANCIAL INDEBTEDNESS PER CONSOB NOTICE NO. DEM/6064293/2006	(296.8)	(338.9)
Non-current financial receivables	11.5	6.6
NET FINANCIAL INDEBTEDNESS	(285.3)	(332.3)