Full year 2020 results: profitability improves sharply, 2021 objectives achieved and 2023 ambitions confirmed, long-term visibility reinforced

Full year 2020 results: profitability improves sharply, 2021 objectives

achieved

and 2023 ambitions confirmed, long-term visibility reinforced

Strong increase of 2020 results despite the context of sanitary crisis

• • Growth of revenues (+33%), of the EBITDA (+50%) and of the net profit, Group share (+71%)

2020 targets achieved

• • Installed capacity of 1.015 gigawatt (+50%)

• • 2.4 gigawatt-capacity serviced for third party clients (x5 compared with end 2019)

• • Normalised1 EBITDA of €101.1 million 2021 target and 2023 ambitions confirmed

• • Normalised2 2021 EBITDA target of €170 million

• • 2023 capacity ambitions in operation and under construction, already fully secured of 2.6 gigawatts, and a Normalised2 EBITDA of €275-300 million

Robust financial structure and long-term visibility reinforced

• • Contained gearing ratio (55%) and substantial cash flows at the end of 2020 (€220 million), reinforced by the Green Bond issued in January 2021

• • €6.5 billion of contracted future revenues (representing x28 the 2020 revenues)

• • Pipeline of 9.7 GW at the end of 2020 (up by 24% compared with 2019)

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in renewable energies, announces today its full year 2020 results. Voltalia's Board of Directors, which met on March 24, 2021, approved the consolidated financial statements for the 2020 fiscal year.

Voltalia will comment on its full year 2020 results and short to mid-term outlook during a live webcast starting at 8:30 AM Paris time on March 25, 2021. Connection details are available on Voltalia's website:https://www.voltalia.com/uk/investors.

« While 2020 was marked by a global sanitary and economic crisis presenting multiple challenges, it has been a very successful year for Voltalia. Our profitability improved substantially, and we continued to secure future growth by signing a record-high level of new power sales and services agreements. Benefiting from the proven soundness of our fundamentals, a project pipeline of 9.7 gigawatts and a robust financial structure, we are all set to pursue on our strong profitable growth path », commented Sébastien Clerc, Voltalia's CEO.

1 In September 2020, Voltalia announced a revised 2020 EBITDA target of around €100 million on a normalised basis: i.e., an average wind/solar/hydro resource in the second half of 2020 and a EUR/BRL rate of 6.3 as from September 24, 2020 (and an average annual EUR/BRL rate of 5.9).

2 "Normalised" means calculated with an average annual EUR/BRL exchange rate of 6.3 and a long-term average wind, solar and hydraulic resource.

KEY FIGURES: GROWTH OF THE ACTIVITY, INCREASE IN PROFITABILITY, EBITDA TARGET ACHIEVED

Change	Change
In € million	2020	2019	At current	At constant
exchange rates	exchange rates*
Revenues	233.5	175.5	+33%	+55%
EBITDA	97.5	65.1	+50%	+88%
EBITDA margin	41.7%	37.1%	+4.6 pts	+8 pts
Net profit, Group share	7.9	4.6	+71%	x3,7
* Average EUR/BRL exchange rate of 5.89 in 2020 vs 4.4 in 2019.

2020 revenues amount to €233.5 million, an increase of +55% at constant exchange rates and of +33% at current exchange rates. As announced previously, activity was driven by an acceleration of new commissioning and the excellent momentum of Services with third-party clients. The share of revenues outside Brazil increased from 42% in 2019 to 52% in 2020.

Consolidated EBITDA stands at €97.5 million, a +88% increase at constant exchange rates and +50% at current exchange rates, thanks to the combined increase in profitability of the Energy sales and of Services for third-party client businesses. Fixed costs were also better amortised as a result of the Group's growth. This resulted in profitability increasing substantially: the EBITDA margin amounts to 41.7% of revenues compared to 37.1% in 2019 (+4.6 points).

As in the first half of 2020, the second half of the year was impacted by a negative resource effect, mainly related to a below long-term average wind level in Brazil (-€3.6 million at the group's level in H2 2020). The 2020 normalised EBITDA stands at €101.1 million, in line with the target set by the Group.

Net profit, Group share is €7.9 million, multiplied by 3.7 at constant exchange rates and a +71% increase at current exchange rates compared with the end of 2019.

BUSINESS REVIEW

Energy sales: EBITDA increases sharply despite a lower wind resource in Brazil

Financial key figures

In € million

Before eliminations of services provided internally

Revenues

EBITDA EBITDA margin

2020	2019	Change At current exchange rates	Change At constant exchange rates
163.1	130.6	+25%	+51%
100.9	76.1	+33%	+62%
61.9%	58.3%	+3.6 pts	+4 pts

Operational indicators

Production (in GWh)

Installed capacity (in MW, closing date) Wind load factor in Brazil

Wind load factor in France Solar load factor in France

2020	2019	Change	Load Long-term average (Voltalia)	Factors3 Long-term average (national)
2,756	2,117	+30%
1,015	678	+50%
44%	49%	-5%	51%	43%4
28%	27%	+1%	25%	25%5
17%	19%	-2%	20%	15%6

• ▪ Strong revenue growth as a result of the increase in installed capacity

Energy sales revenues amount to €163.1 million, a +51% growth at constant exchange rates and +25% at current exchange rates.

This increase primarily results from the growth in installed capacity: at the end of 2020, it stands at 1,015 MW, slightly above the target of 1 GW that the Group had set, thanks to the addition of 337 MW of new projects compared with 154 MW in 2019. This strong growth, achieved in a complex sanitary context, is even more remarkable as some significant delays were recorded on the construction and commissioning of several projects.

The revenue growth also results from the full-year effect of plants commissioned in the course of 2019, the full-year consolidation of Helexia (acquired in the middle of 2019) and from the consolidation of the solar plants acquired in Jordan (four months in 2020).

With a 51% average in the long-term, the load factor of Voltalia's Brazilian wind turbines is higher than the sector's national average. This positive difference is also found in the other countries where Voltalia operates and results from the Group's rigorous selectivity in choosing the sites to develop and from the expertise of the maintenance teams, recognized by the trust third-party clients place in Voltalia. However, the 2020 revenues growth was slowed down by the lower wind resource recorded in Brazil which was below the long-term average as well as at the 2019 level.

• ▪ EBITDA grows faster than revenues

EBITDA from Energy sales is up close to €47 million in 2020 compared with the end of 2019 at constant exchange rates and +€24.8 million at current exchange rates.

In both cases, the increase is faster than that of revenues. As a consequence, the EBITDA margin increases by 3.6 points.

• 3 Power actually generated / power that would be generated if the plants produced 100% of the time and 100% of their capacity

• 4 Source: Global Wind Energy Council 2019

• 5 Source: RTE 2019

• 6 Source: RTE 2020

This improvement results from the quality of the new plants commissioned, the receipt of liquidated damages following delays in the commissioning of certain projects (€7.2 million) and efficient cost management particularly within Helexia which recently integrated the Group. The 3.6-point increase in EBITDA margin would have been significantly higher if the resource (wind, solar, hydro) had been in line with the long-term average: the resource deficit in 2020 compared with this average had a negative impact of €11.1 million on the EBITDA of which €7.5 million in the first half of 2020 and €3.6 million in the second half.

Services: continued increase in the contribution to the Group 's EBITDA

In € million

Before eliminations of services provided internally

Revenues

Of which internal revenues

Of which external revenues

EBITDA

EBITDA margin

FY 2020	FY 2019	Change At current exchange rates	Change At constant exchange rates
136.5	144.2	-5%	-1%
66.1	98.5	-33%	-31%
70.4	45.7	+54%	+62%
11.6	11.7	-1%	+20%
8.5%	8.1%	+0.4 pt	+1.9 pts

• ▪ A +54% increase in external Services revenues

2020 Services revenues, internal and external, amount to a total of €136.5 million7. In the absence of new high-contributing internal projects, intra-Group revenues (eliminated in the consolidation) are down -33 % in 2020.

In contrast, revenues from Services to third-party clients total €70,4 million, up +62% at constant exchange rates and +54% at current exchange rates, highlighting the excellent commercial momentum despite the economic and sanitary crisis. The Services activity also contributed to the launch of Voltalia as an independent power producer in two new countries in 2020, Albania and Jordan, where Voltalia's teams were already performing services for third-party clients.

Confirming the rise in external revenues, the backlog for external clients at the end of 2020 is robust and amounted to €157.8 million (i.e. 2.2 times the level of external revenues in 2020).

.

• ▪ Development, Construction and Equipment Procurement

Development, Construction and Equipment Procurement revenues total €114.2 million (-5% at constant exchange rates and -9% at current exchange rates). They highlight a slowdown of the internal activity and the rise of activity for third-party clients, on each of the three activities of this business line. The Group sold 180 MW of ready-to-build projects in Brazil and France to emblematic partners such as the French Total-Eren and Siloé Infrastructures or the Japanese Toda, while supplying construction services for third-party clients mainly in Portugal, Burundi and in Brazil (175 MW under construction as of today). This significant level of activity generated a double-digit EBITDA margin, in line with the Group's expectations.

7 This figure which is a revision of the figure published on January 26, 2021, integrates a €10.7 million reclassification in deduction of operating expenses (with no impact on EBITDA and cash)