ALERION CLEAN POWER S.P.A. Milan, 18thMarch 2015
Alerion Clean Power S.p.A. .: The Board of Directors approved 2014 Full Year Results Proposed dividend: €0.045 per share Relevant consolidated 2014 results1:• Revenues: 45.9 million euro (54.0 million euro in 2013)
• Adjusted EBITDA: 25.0 million euro (31.3 million euro in 2013)
• Adjusted Net Result: -5.4 million euro (-0.2 million euro in 2013)
• Net Result: -27.8 million euro, after non-recurring items of approximately 22.4 million euro (-0.3 million euro in 2013)
• Net financial Indebtedness (escluding derivatives) of 168.2 million euro, with a decrease of 17.0 million euro compared to 185.2 million euro as at 31 December 2013
The Board of Directors of Alerion Clean Power S.p.A. examined and approved 2014 financial statements, prepared according to the principles of International Accounting Standards/International Financial
Reporting Standards (IAS/IFRS).
1 Adjusted EBITDA is EBITDA adjusted by operating costs related to the assessment of the strategy and financial structure evaluated prior to the issue of the bond, and also by the effects of the repayment of the project finance debt of WPS, company in joint venture, the results of which are classified under "joint ventures results accounted using the equity method";
• Adjusted Net Income represents the net income adjusted by, in addition to the above, the write-offs and impairment of assets
considered non-strategic or non-recoverable, and the effects of repayment of the project finance debt of some subsidiaries.
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Economic results (€ million)
(*) - Adjusted for retrospective application of IFRS11
"2014 results were affected by a wind significantly lower than the expected annual average, the lowest recorded by the group since it started its operations, and non-recurring costs, mainly resulting from the refinancing of project finance as a result the issuance of the bond. In this context, the Group has continued to generate significant operating cash flow of EUR 18.8 million, which led to a further reduction of debt to 168.2 million euro. We are very satisfied with positive market response to the recent issue of the bond that allowed us to come in 2015 with greater financial flexibility." said Giulio Antonello, CEO of Alerion.
1. 2014 Operational Highlights
2014 results were mainly characterized mainly by:
• wind conditions significantly below the average, in particular in the winter season 2013/2014 was one of the lowest recorded by the Group since the beginning of its operations;
• non-recurring costs for approx. 12.3 million euro, net of tax, attributable to the effects of the closing of the project financing and related interest rate hedging contracts following the issue of the bond, which
will allow the Group a more efficient management of the liquidity generated by wind farms;
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• write-offs of development activities in Italy and abroad, no longer considered strategic or non- recoverable under the current renewable energy incentive scenario, both nationally and internationally, which resulted in a non-cash costs of approx 9.0 million euro, net of tax.
The production of wind farms in 2014 amounted to 378 GWh (with an installed capacity of about 255
MW) compared to 411 GWh in 2013, mainly because of low wind levels.
• to lower revenues of operating wind farms for 5.5 million euro;
• the loss of revenues, amounting to 1.6 million euro, resulting from the sale of photovoltaic companies occurred in 2013.
Wind Power Sud Srl ("WPS"), a joint venture company, for 0.7 million euro.
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2014 Adjusted Net Result was negative for EUR 5.4 million (negative for 0.2 million euro in 2013) and and mainly reflects the decrease in operating revenues following the low wind conditions recorded. 2014 Net Result was negative for 27.8 million euro (negative for 0.3 million euro in 2013), after non- recurring costs, mainly due to the effects of the early repayments of the project finance debts of some subsidiaries and the write-offs of certain assets considered non-strategic or non-recoverable, totalling22.4 million euro, of which 0.5 million euro to minority interests.
Net Financial Indebtedness as of December, 31, 2014 was 201.9 million euro with an improvement of
8.6 million euro compared to 31 December 2013. Net Financial Indebtedness, net of derivatives, as of December, 31, 2014 amounted to 168.2 million euro with a decrease of 17.0 million euro compared to
31 December 2013, when it was 185.2 million euro.
For the parent company Alerion Clean Power S.p.A., the year 2014 ended with a net profit of 0.1 million euro (1.6 million euro in 2012). It should be noted that the Board of Directors has resolved to propose to the Shareholders' Meeting to carry forward the net profit of 2014, subject to provision of legal reserve.
Shareholders' equity at 31 December 2014 amounted to 198.9 million euro. The decrease of 3.5 million euro compared to 31 December 2013 is mainly due to the distribution of dividends of 3.4 million euro, the purchase of treasury shares for 0.1 million euro and profit of the year of 0.1 million euro.
On February 11, 2015 Alerion proceeded to the issuance of a bond, listed on the Italian bond market (MOT), guaranteed non-convertible and non-subordinated for a total amount of 130 million euro, with a duration of 7 years and an annual fixed interest rate of 6%.
The issuance of the bond was aimed at closing of debt in project financing of four group companies
(Renergy San Marco Srl, Parco Eolico Licodia Eubea Srl, Wind Power Sud Srl and Minerva Srl), through
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the extinction of financing and related hedging contracts, in order to allow more efficient management of the cash generated by wind farms.
This operation allowed, among other things, to use the existing liquidity of wind farms to buy the
remaining 50% stake of the company Wind Power Sud Srl.
In 2015 Alerion, following to the issue of the bond, will have a more efficient management of the liquidity generated by wind farms.
The Group will also continue the optimization of wind farms' efficiency and the rationalization of operating costs, including the increase of economies of scale, with particular reference to the plants no longer subject to the constraints imposed by the project financing.
Consolidated results of 2015 will also benefit from the increase in the installed capacity of the Group following the acquisition of 50% stake in Wind Power Sud S.r.l..
The Board of Directors has authorized the Chairman of the Board of Directors to convene the General
Annual Shareholders' Meeting in compliance with applicable law, ie within 120 days of year end.
The Board of Directors will propose to the Shareholders' Meeting to approve the financial statements d'esercizio 2014 and the distribution of a cash dividend of € 0.045 gross per ordinary share (net of treasury shares), allocating for this purpose part the reserve called "Retained earnings" in the amount of about 2 million euro (coupon no. 4).
The Shareholders will also be asked to vote on the appointment of the Board of Directors and the Board of Auditors, to the signing of an insurance policy to cover the civil liability of board members and the Remuneration Report.
The Board of Directors has also resolved to propose to the Shareholders' Meeting the authorisation to purchase and dispose of treasury shares, in order to invest in treasury shares, increase the liquidity of the stock, directly or through intermediaries, in compliance with current regulations and ensuring equitable
treatment of shareholders and use treasury shares as consideration in the event of extraordinary
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operations, and in general, for other applications deemed of strategic interest. The proposal provides a maximum number of shares acquired up to an amount not exceeding 10% of Company share capital,
4,357,900 shares, and an aggregate maximum amount of 10 million Euros, for a period of 18 months from
the resolution date. The purchase of treasury shares shall be made at a price not more than 20% above or below the weighted average price of the shares registered by the Stock Exchange in the three days prior to each individual transaction, in accordance with terms and procedures allowed by applicable law and regulations. As of today, Alerion owns n. 40,000 treasury shares.
The documentation relating to items on the agenda of the Assembly, provided by law, will be made available to the public on the Company's website www.alerion.it and in the manner and to the law.
Simona Raffaelli, Emanuela Borromeo alerion@imagebuilding.it
Tel. +39 02 89011300
Stefano Francavilla stefano.francavilla@alerion.it Tel. +39 02 7788901
Luca Lunghini Luca.lunghini@alerion.it Tel. +39 02 7788901
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(€ mi l l i on) 2014 2013 (*)
Energy revenues 41.8 48.9
Revenues for the construction fot the third parties 2.8 3.1
Other revenues 1.3 2.0
Total revenues 45.9 54.0
Pers onnel cos ts (4.0) (4.6) Contra ct cos ts (1.7) (1.8) other opera ti ng cos ts (18.0) (17.6)
Oper ating costs (23.7) (24.0) Net income / (loss) of Joint Vent ures accounted for using equity method(1 ) 0.4 1.3
Gross operat ing margin (EBITDA) 22.6 31.3
Gross operat ing margin (EBITDA) Adjusted 25.0 31.3
Depreci a ti on a nd I mpa i r ment of a s s ets (2) (22.8) (16.9)
Ne t ope rat ing mar gin (EBIT) (0.2) 14.4 Fi na nci a l i ncome a nd expens es (3 ) (30.5) (15.4) Fi na nci a l i ncome a nd expens es from i nves tments (3.7) 0.8
Earnings before t axes (EBT) (34.4) (0.2)
I ncome ta x 6.6 (0.1)
Ne t income / (loss) (27.8) (0.3)
Ne t income / (loss) Adjuste d (5.4) (0.2)
Net i ncome / (l os s ) a ttr i buta bl e to mi nori ti es (1.0) 0.5
Ne t income / (loss) att ribut able to the Group (26.8) (0.8)
(*) - Adj us ted for r etr os pecti ve a ppl i ca ti on of I FRS11
(1) 0,7 €/mi l l i on re l a te d to the re fi na nci n g o f th e Pro je ct Fi n a n ce
(2) 6,1 €/mi l l i on re l a te d to the wri te -o ffs o f d e ve l o p me n t a cti vi ti e s i n I ta l y a n d a b roa d, n o l o n ge r co n s i d e re d s tra te gi c o r no n-re cove ra bl e un d e r the cu rre nt re n e wa b l e e ne rgy i nce n ti ve
(3) d i cu i 16,0 €/mi l l i on re s u l ti n g fro m the cl o s i n g o f th e p roje ct fi n a n ci n g a n d re l a te d i nte re s t ra te h e dgi n g co n tra cts
CONSOLIDATED FINANCIAL STATEMENTS - Reclassified Statement of Financial Position (€ million) | ||
(€ mi l l i on) | 31 December 2014 | 31 December 2013(*) |
Intangible assets | 43.8 | 52.4 |
Property, plant and equipment | 236.2 | 252.1 |
Fiancial Assets | 19.5 | 21.4 |
Tot al fixed assets and long-term investments | 299.5 | 325.9 |
Other non-fi na nci a l as s ets a nd l i a bi l i ti es | 19.4 | 29.6 |
NET INVESTED CAPITAL | 318.9 | 355.5 |
Shareholders' equity attributable to the Group | 114.6 | 141.8 |
Non-controlling interest | 2.4 | 3.2 |
Shareholders' equity | 117.0 | 145.0 |
Ca s h a nd Ca s h equi va l ents | 47.9 | 44.2 |
Other fi na nci a l as s ets a nd l i a bi l i ti es | (250.0) | (254.7) |
Net financial position | (201.9) | (210.5) |
SHAREHOLDERS' EQUITY + NET FINANCIAL POSITION | 318.9 | 355.5 |
(*) - Adjus ted for retros pecti ve a ppl i ca ti on of IFRS11 |
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