Encavis AG: Conference Call Q2/6M 2020

Welcome to the world of Encavis - Conference Call Q2/6M 2020 Interim Report

Encavis AG, Q2/6M 2020 Interim Report, Hamburg, August 26th, 2020

2

Segments	Highlights from April to August 2020
	Encavis AG follows its strategy to own 100% of all solar parks within its
	corporate portfolio consequently. Latest acquisition of the residual shares (20%)
	of the Spanish major solar project La Cabrera (200 MW total capacity) from its
	strategic development partner Solarcentury is one example for this strategy.
	Encavis AG concludes development partnership with GreenGo Energy Group
	for a portfolio of subsidy-free solar parks in Denmark of more than 500 MW
	ENCAVIS exceeds all expectations in Q1/2020 and benefits from
	the expansion of capacities with significant earnings and cash flow
	increases as well as margin improvement in the wind segment due to positive
	weather effects and massive improvement in Encavis Asset Management
	ENCAVIS and Sunovis conclude a cooperation agreement for a
	200 MW+ portfolio of subsidy-free solar projects in Germany

3

Segments	Highlights from April to August 2020
			Encavis Asset Management raised additional 74.5 million euros equity
			special fund "Encavis Infrastructure II" - Fund volume exceeds 200 million
			ENCAVIS acquires wind farm in Germany with a total of 14.4 megawatts of
			generation capacity with a Feed-in-Tariff (FiT) remuneration until year-end 2039
			ENCAVIS expands its participation in its solar park portfolio in France
			and now owns 100% of all its French solar parks
			Encavis Asset Management AG acquires additional wind farm in France
			for special fund 'Encavis Infrastructure Fund II'
			ENCAVIS successfully secured a EUR 63.8 million non-recourse project refinancing
			for a portfolio of 10 ground-mounted PV plants located in Italy of 29.1 megawatts
			BlackRock increased their shareholdings in ENCAVIS from 3.51% to 4.07%

4

Recent acquisition of minorities lead to ownership in solar parks of >94 per cent on average

191 solar parks and 85 wind parks in 10 European countries: total capacity > 2.5 GW

WIND PARKS	OWN ASSETS (net / gross)	ASSET MANAGEMENT
Germany	181	/ 229 MW	0 / 351 MW
France	36 / 36 MW	0 / 114 MW
Austria	36 / 36 MW	0 / 17 MW
Finland				-	0 / 13 MW
United Kingdom						-	0 / 18 MW
Sweden				-	0 / 10 MW
Italy						5 / 6 MW	-
Denmark			118	/ 120 MW	-
Total	376 / 427 MW	0 / 523 MW
SOLAR PARKS	OWN ASSETS	ASSET MANAGEMENT
Germany	258	/ 262 MW	0 / 103 MW
Italy					154	/ 154 MW	0 / 7 MW
France					194	/ 194 MW	0 / 41 MW
United Kingdom			127 / 127 MW	-
The Netherlands	95	/ 106 MW	0 / 80 MW
Spain	Construction: 440 / 500 MW
Total	1,269 / 1,343 MW	0 / 231 MW
GROUP TOTAL	Own Assets 1,645 / 1,770 MW	GROUP TOTAL 2,524 MW

Market presence Market entry initiated

5

Construction of 300 MW PV park "Talayuela" well underway

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 1st year of full operation
					in EUR:	~25 m
			>	Post-tax IRR:	>8%
			>	Connected to the grid	late 2020

Talayuela

STATUS OF THE CONSTRUCTION OF THE PV PLANT AS OF JULY 31ST, 2020

69% of the entire plant is completed

Civil works and site preparation is at 95%:

70% of the HV substation and 87% of the transmission line are built up. In the photovoltaic section:

• 96% of the ramming task,
• 62% of tracker assembly,
• 35% of modules installation,

are completed across the entire plant.

Main components and products are all delivered to site, with exception of:

1. 0.5% of PV modules (delayed due to aborted bifacial test)
2. Step-uptransformer (due to change in transportation rules in Spain)

Planned	Required as per
Key Dates	EPC contract
Grid Connection	11/23/2020
Date for	11/30/2020
Commissioning
Date for	01/25/2021
Completion

Expected delay due to CoVid-19 outbreak: 0 to 30 calendar days

Agreed total extra costs are equal to TEUR 250.

7

200 MW PV park "La Cabrera" will be connected to the grid within next days

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
			>	Long-term PPA contract (149 MW)
					with Amazon with fixed price for	10 years
	La Cabrera	>	Revenues 1st year of full operation
			in EUR:	~16.4 m
			>	Post-tax IRR:	~ 8%
			>	Connected to the grid	late 2020

La Cabrera

STATUS OF THE CONSTRUCTION OF THE PV PLANT AS OF AUGUST 17TH, 2020

1. All components and products were delivered to site.
2. the High Voltage section (substation and transmission line) is grid connected and energized;
3. The 50MW sections named Cerrado Cabrera and Los Gonzales are completed and ready for hot commissioning for a total capacity equal to 100MWp;
4. The 50MW sections named Hazas de los Sesenta and Primo Aleman are expected to be ready for hot commissioning on August 29th, bringing the total capacity under commissioning to 200MWp at the end of August;

Planned Key	Required as per EPC
Dates	contract
Grid Connection	8/18/2020
Date for	8/25/2020
Commissioning
Date for	10/20/2020
Completion

The construction is on time. Completion is foreseen to be on time.

The agreed extra costs due to CoVid-19 are equal to TEUR 240.

9

Strong 6M 2020 in line with guidance besides some one-time effects from disposal of minorities, meteorological effects or the virtual Stock Option Programme (SOP)

Operating figures	Q1 2019	Q1 2020	Q2 2019	Q2 2020	6M 2019	6M 2020
(in EUR million)

Revenue	59.5	65.2	84.5	89.6	143.9	154.8
Oper. EBITDA	44.7	50.6	76.1	69.0	120.8	119.6
Oper. EBIT	23.4	28.1	54.8	46.4	78.2	74.5
Oper. Cashflow	15.9	50.8	60.5	64.4	76.4	115.2
Oper. EPS (EUR)	0.05	0.08	0.25	0.19	0.30	0.27

!		Detailed explanations on the following pages . . .

10

However, timing effects and the increase in the stock price reduced the improvement of key figures

Operating figures	6M 2019		6M 2020		Change
(in EUR million)					6M 2020/2019
Revenue	143.9		154.8		+ 8 %
Oper. EBITDA	120.8		119.6		- 1 %
Oper. EBIT	78.2		74.5		- 5 %
Oper. EPS in EUR	0.30		0.27		- 10 %
Oper. Cash Flow	76.4		115.2		+ 51 %

• Positive meteorological effect after 6M 2019 of EUR 11.3 m compared to 6M 2020 of EUR 8.2 m (EUR -3.1 m)
• Profit from disposal of participations after 6M 2019 of EUR 5.9 m comp. to 6M 2020 of EUR 1.9 m (EUR -4 m)
• Provisions for the virtual Stock Option Programme for the Management due to strong stock price development: after 6M 2019 EUR -0.5 m compared to 6M 2020 EUR -2.8 m (EUR -2.3 m)

11

Significant revenue and cash flow increases after 6M 2020 vs. 6M 2019

Operating figures	6M 2019		6M 2020		Change
(in EUR million)					6M 2020/2019
Revenue	143.9		154.8		+ 8 %
Oper. EBITDA	120.8		119.6		- 1 %
Oper. EBIT	78.2		74.5		- 5 %
Oper. EPS in EUR	0.30		0.27		- 10 %
Oper. Cash Flow	76.4		115.2		+ 51 %

• Planned payment of capital gain taxes in Q1/2019 instead of Q4/2018 (EUR 9 million) - Reimbursement from the tax office was expected during the year 2019 but happened in Q1/2020

12

6M 2020 vs 6M 2019 - adjusted for weather effects (wa)

Again significant positive weather effects after 6M 2020: EUR + 8.2 million (6M 2019: EUR + 11,3 million)

Operating figures	6M 2019	Weather		6M 2020	Weather	Change
(in EUR million)		adjusted			adjusted	6M 2020 (wa)/
		6M 2019 (wa)			6M 2020 (wa)	6M 2019 (wa)
Revenue	143.9	132.6		154.8	146.6	+ 11 %
Oper. EBITDA	120.8	109.5		119.6	111.4	+ 2 %
Oper. EBIT	78.2	66.9		74.5	66.3	- 1 %

• Even stronger earnings development post weather adjustments

13

Margin decline in the wind segment due to very positive weather effects in the past year (6M 2019) vs this year besides significant improvement in Encavis Asset Management

Operating	Solar Parks	Wind Parks	Technical	Asset	HQ
P & L					Services (PV)	Management
(in EUR
million)
	6M'19	6M'20	6M'19	6M'20	6M'19	6M'20	6M'19	6M'20	6M'19	6M'20
Revenue	106.9	105.9	34.2	43.6	2.3	2.5	3.9	5.0	-	-
EBITDA	91.5	87.1	31.7	33.0	0.7	2.7	1.2	1.8	- 4.2	- 5.0
EBITDA	86%	82%	93%	76%	29%	111%	30%	36%	-	-
margin
EBIT	60.4	55.7	21.0	20.0	0.6	2.7	0.8	1.5	- 4.7	- 5.4
EBIT margin	57%	53%	61%	46%	27%	111%	21%	30%	-	-

• Operating expenses distributed among Business Segments

14

Weather adjusted operating results after 6M 2020 vs 6M 2019 by wind and solar

Operating		Solar Parks			Wind Parks
P & L
(weather
adjusted)
(in EUR million)	6M'19 (wa)	6M'20 (wa)	Change	6M'19 (wa)	6M'20 (wa)	Change
			6M'20 (wa) vs.			6M'20 (wa) vs.
			6M'19 (wa)			6M'19 (wa)
Revenue	96.4	98.5	+ 2 %	33.4	42.8	+ 28 %
Oper. EBITDA	81.0	79.7	- 2 %	30.9	32.2	+ 4 %
Oper. EBIT	49.9	48.3	- 3 %	20.2	19.2	- 5 %

• Strong revenue growth in wind (due to acquired windfarms) and small revenue growth even in solar (due to improved performance)

15

Securing growth capital (2015 - 2020) while keeping a strong equity ratio

Financing measures implemented (in EUR million)

2020	35	10
2019		48		105	60
2018		50	28
2017		97			44
2016		49	20	25
2015	23

(small) Capital Increase		Biateral Debt, Bonded and "Green" Loans		Hybrid Convertible		Credit Lines

16

ENCAVIS Analysts' Consensus on the five corporate KPIs for Q2/2020e and 6M/2020e as of Aug 21, 2020

• Average Analysts' Consensus for Q2/2020 and for 6M/2020 in general in line with ENCAVIS' results /
  Operating EBITDA mainly burdened by higher expenses for the Stock Option Programme (SOP) as planned Operating Cash Flow benefitted from changes in other assets and liabilities as well as reverse tax effects

					Analysts' Consensus						Analysts' Consensus
					Average	Extrema						Average	Extrema
(in EUR '000)	Q2 2019		Q2 2020		Q2 2020e	Top	Bottom		6M 2019		6M 2020		6M 2020e	Top	Bottom
Revenues	84,450		89,565		87,372	90,840	85,092		143,914		154,775		152,577	156,050	150,303
Oper. EBITDA	76,103		69,006		72,532	79,000	65,000		120,815		119,615		123,120	129,500	115,609
Oper. EBIT	54,785		46,473		47,883	56,000	41,000		78,168		74,535		75,951	83,192	69,062
Oper. Cash Flow	60,423		64,342		58,392	61,540	55,000		76,360		115,183		98,268	112,380	76,582
Oper. EPS (in EUR)	0.25		0.19		0,193	0,255	0,130		0.30		0.27		0,274	0,330	0,210

17

ENCAVIS Analysts' Consensus on the five corporate KPIs for 6M/2020e and FY 2020e as of Aug 21, 2020

• Average Analysts' Consensus for FY 2020e slightly above ENCAVIS' earnings guidance,
  whereas Analysts' Consensus of Operating Cash Flow is significantly below ENCAVIS' guidance for FY 2020e

					Analysts' Consensus				Analysts' Consensus
					Average	Extrema		Guidance		Average	Extrema
(in EUR '000)	6M 2019		6M 2020		6M 2020e	Top	Bottom		FY 2020e		FY 2020e	Top	Bottom
Revenues	143,914		154,775		152,577	156,050	150,303		> 280,000		286,062	295,400	280,000
Oper. EBITDA	120,815		119,615		123,120	129,500	115,609		> 220,000		223,523	230,700	220,000
Oper. EBIT	78,168		74,535		75,951	83,192	69,062		> 130,000		134,582	138,786	130,200
Oper. Cash Flow	76,360		115,183		98,268	112,380	76,582		> 200,000		181,704	217,700	156,400
Oper. EPS (in EUR)	0.30		0.27		0,274	0,330	0,210		0.41		0,424	0,500	0,380

18

Moderate growth expected for FY 2020e vs FY 2019 (wa = adjusted for weather effects)

2020e will be a year of transition in which the acquired PPA parks in Spain will have COD in Q3 and in Q4 and new acquisitions don't contribute to 2020e P&L - but step-up in 2021e

Operating figures	FY 2019		Weather		Guidance		Change		Show case
(in EUR million)			adjusted		FY 2020e		Guidance		FY 2021e /
			FY 2019 (wa)				FY 2020e /		Change vs.
							FY 2019 (wa)		Guidance FY 2020e
Revenue	273.8		263.3		> 280.0		+ 6.3%		> 320.0 / + 14.3%
Oper. EBITDA	217.6		210.6		> 220.0		+ 4.5%
Oper. EBIT	132.2		125.2		> 130.0		+ 3.8%
Oper. EPS	0.43		0.40		0.41		+ 2.5%
Oper. Cash flow	189.3				> 200.0

• Large Spanish projects Talayuela and La Cabrera are under construction in 2020 and distribute significant FY revenue and operating cash flow to the Group in 2021

19

Guidance FY 2020e by Business Segments

Operating

Solar Parks

Technical

Wind Parks

Asset

HQ

P & L

Services

Management

(in EUR

million)

FY

FY 2019

Guidance

FY

Guidance

FY

FY 2019

Guidance

FY

Guidance

FY

Guidance

2019

(wa)

2020e

2019

2020e

2019

(wa)

2020e

2019

2020e

2019

2020e

Revenue

200.1

186.0

> 190

4.7

> 4

63.1

66.7

> 74

11.6

> 12

-

-

EBITDA

167.3

156.7

> 159

1.5

> 2

51.9

55.4

> 62

5.6

> 5

- 8.6

< - 9

EBIT

104.9

94.3

> 95

1.4

> 2

23.8

34.0

> 38

5.0

> 5

- 9.5

< - 10

• Guidance based on average meteorological conditions and the already secured solar park and wind farm portfolio as of March 2020

The use of

infinite resources - this is our future

21

The Management

22

Management team with great industry expertise and strong passion for renewables

Dr Dierk Paskert	Dr Christoph Husmann
Chief Executive Officer	Chief Financial Officer
CEO since Sep 2017	CFO since Oct 2014
Reappointed until Aug 2025	Reappointed until Sep 2025

CEO Rohstoffallianz GmbH	Member (CFO) and later CEO of the Management Board of
Member of the Management Board of E.ON-Energie AG	HOCHTIEF Projekt Entwicklung GmbH
SVP Corporate Development of E.ON AG	Head of Corporate Controlling and M&A of STINNES AG and
Member of the Management Board of Schenker AG	HOCHTIEF AG,
	Controlling of VEBA AG

23

Supervisory Board

Dr Manfred Krüper (Chairman)

Member of the Board of Directors at E.ON AG (until Nov 2006)

Supervisory Board (a.o.): Power Plus Communication AG,

EQT Partners Beteiligungsberatung GmbH; EEW Energy from Waste GmbH

Peter Heidecker (dependent)

Chairman of the Supervisory Board at

CHORUS Clean Energy AG (until Oct 2016)

Founder of the CHORUS GmbH in 1998

Supervisory Board (a.o.):

Auszeit Hotel & Resort AG

Christine Scheel

Member of the Supervisory Board at

CHORUS Clean Energy AG (until Oct 2016)

Former Member of the German Parliament

Supervisory Board (a.o.):

NATURSTROM AG

Alexander Stuhlmann (Dep. Ch.)

CEO at HSH Nordbank (until Dec 2006) and thereafter CEO at WestLB AG (until April 2008)

Supervisory Board (a.o.): Euro-AviationVersicherungs-AG, Ernst Russ AG, GEV Gesell- schaft für Entwicklung und Vermarktung AG, M.M. Warburg & CO Hypothekenbank AG

Dr Henning Kreke (dependent)

Previously CEO at Douglas Holding AG for 15 years

Supervisory Board (a.o.): Deutsche EuroShop AG; Douglas GmbH, Thalia Bücher GmbH

Dr Marcus Schenck

Partner of Perella Weinberg Partners

Independent Advisory Council(a.o.): EQT Infrastructure

Albert Büll (dependent)

Entrepreneur and co-owner of the B&L Group

Advisory Council (a.o.):

BRUSS Sealing Systems GmbH, noventic GmbH

Dr Cornelius Liedtke (dependent)

Entrepreneur and co-owner of the B&L Group

Supervisory Board (a.o.): BRUSS Sealing Systems GmbH, SUMTEQ GmbH

Prof Fritz Vahrenholt

Chairman of the Supervisory Board

(until January 2014) at RWE Innogy GmbH

(previously CEO)

Supervisory Board (a.o.):

Aurubis AG

24

The Encavis share

An attractive investment

25

Dividend of EUR 0.26 per share for FY 2019 fully in line with dividend target 2021

Significant majority (61.5 %) of shareholders preferred new ENCAVIS shares to cash dividend for FY 2019

Dividend policy reflects increasing cashflows from PV/Wind parks over time

50% increase of nominal dividend until 2021 (compared to 2016) based on the existing PV/Wind park portfolio as of March 31, 2017

	0.08
Further acquisitions of PV/Wind	0.05
parks will positively contribute
to the dividend potential

Nominal dividend to increase by 50% (base-year 2016) to 30 EUR cent in 2021

0.30
0.26
0.24
0.22
0.20
0.18
0.15
0.10

Dividend (EUR cent/share)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

26

Entrepreneurial shareholder structure - strong and long-term anchor investors

Market Cap:	# shares: 138,437,234
~ 2.0 billion EUR	(post scrip dividend of 2019)

Major investors within the free float:	26.7%	Pool of
4.1%	BlackRock Asset Management Schweiz AG		AMCO Service GmbH (Büll Family) with
	Dr Liedtke Vermögensverwaltung GmbH
4.0%	Versicherungskammer Bayern		(Liedtke Family)
3.5%	Lobelia Beteiligungsgesellschaft/	Free float
	Kreke Immobilien KG
	73.3%
3.1%	DWS Investment GmbH, Frankfurt/Main
2.3%	PELABA Vermögensverwaltungs GmbH & Co. KG
0.4%	Management of Encavis AG

27

ENCAVIS share - Ten active coverages with seven "buy" recommendations out of nine

Coverage institution	Updated Ratings	Date (2020 only)	Target Price (EUR)
	Hold	Aug 21, 2020	14.00
	Buy	Aug 21, 2020	11.20
	Buy	May 29, 2020	15.00
	Hold	May 29, 2020	13.50
	Buy	May 26, 2020	13.50
	Buy	May 26, 2020	14.30
	(Buy)	May 26, 2020	10.40
	Buy	May 04, 2020	14.10
	Buy	Mar 24, 2020	10.00
		Jan 24, 2020
Consensus			12.89

• Further coverages of the ENCAVIS share are initiated . . .

28

ENCAVIS share with strong upward trend since mid of 2019 got a dip from capital market panic also

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ENCAVIS	DAX 30	SDAX	OEKODAX

29

Date 2020	Event (I)
Aug 26	Interim report Q2/6M 2020
Aug 27/28	Stifel MainFirst Virtual Investors Days,
	Amsterdam (NL) / (BeNeLux)
Sep 02/03	Commerzbank Virtual Sector Conference
	2020, Frankfurt/Main (GER)
Sep 9	DSM TechTalk webinar on Retrofit AR
	coating repowering solar parks
Sep 12	Interest payment PNL 2018 "Green SSD"
Sep 13	Interest payment Hybrid Convertible
Sep 16	Raiffeisen CENTROBANK Virtual
	Investors Day, Zagreb (CRO)
Sep 18	Citi VIRTUAL Small-/Mid Cap Growth
	Conference 2020, London (UK)
Sep 21/22	Berenberg/Goldman Sachs Virtual Ninth
	German Corp. Conference, Munich (GER)

Date 2020	Event (II)
Sep 28-30	Stifel MainFirst Virtual Investors Days,
	Canada / West Coast USA
Oct 1	Kempen Virtual Renewable Energy
	Conference, Amsterdam (NL)
Oct 14	Jefferies Virtual European Mid-Cap
	Industrial Forum 2020, London (UK)
Oct 15/16	Jefferies Virtual Investors Days,
	Dublin/Edinburgh (IRL/UK)
Oct 19-23	Jefferies Virtual Investors Days,
	East Coast & Mid-West USA
Oct 26-29	Jefferies Investors Days,
	Scandinavia and Europe
Nov 9/10	CM-CIC Investors Forum, Paris (FR)
Nov 11/12	Solar Asset Management Europe,
	Frankfurt/Main (GER)

30

Date 2020	Event (III)
Nov 16	Interim statement Q3/9M 2020
Nov 16-18	German Virtual Equity Capital Market
	Forum, Deutsche Börse, FFM (GER)
Nov 23/24	Commerzbank Virtual Investors Days,
	Zurich/Geneva (CH)
Nov 24	DZ Bank Equity Conference,
	Frankfurt/Main (GER)
Nov 25/26	16th Structured FINANCE, Stuttgart (GER)
Nov 30	Berenberg European Conference 2020,
	Pennyhill Park, Surrey / London (UK)
Dec 11	Interest payment PNL 2015

Contact

Jörg Peters

Head of

Investor Relations &

Public Relations

Encavis AG

Große Elbstraße 59

D- 22767 Hamburg

Germany

1. +49 (0)40 / 37 85 62 242 M +49 (0)160 / 429 65 40

[e-mail]

www.encavis.com

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.