• Like
TerniEnergia Star Conference London 2011
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

TerniEnergia Star Conference London 2011

  • 341 views
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
341
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. TerniEnergiaA leading Italian PV energy companyLondon - Star Conference 20113-4-5 October 2011
  • 2. DisclaimerThis document has been prepared by TerniEnergia solely for information purposes and for use inpresentations of the Group’s strategies and financials. The information contained herein has not beenindependently verified. No representation or warranty, express or implied, is made as to, and noreliance should be placed on, the fairness, accuracy, completeness or correctness of the informationor opinions contained herein. Neither the company, its advisors or representatives shall have anyliability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of thisdocument or its contents or otherwise arising in connection with this document.The forward-looking information contained herein has been prepared on the basis of a number ofassumptions which may prove to be incorrect and, accordingly, actual results may vary. Thisdocument does not constitute an offer or invitation to purchase or subscribe for any securities and nopart of it shall form the basis of or be relied upon in connection with any contract or commitmentwhatsoever. The information herein may not be reproduced or published in whole or in part, for anypurpose, or distributed to any other party. These materials do not constitute or form a part of any offeror solicitation to purchase or subscribe for securities. 11
  • 3. Agenda  Investment highlights – Stefano Neri (CEO)  Market growth – Paolo Ricci (Executive Board Member)  2010 Financial Highlights - Paolo Allegretti (CFO)  Development Strategy and 2011-2013 Plan – Stefano Neri (CEO) 2
  • 4. Investment Highlights Flexible business model Italian leading player as a supplier of photovoltaic systems and energy producer in the fast growing PV market Significant presence in the reference market with substantial growth potential Experienced Management Team Reliable and efficient operating and commercial model Listed on STAR Italian Stock Exchange Over delivered expectations 3
  • 5. A solid track record Successful historical growth and balanced diversification of the business in the power generation activity:  Solid free cash flow generation  Gained market shares, consolidating leadership in PV market, exploiting new opportunities of growth  Profitability levels confirmed by quarter to quarter growth trend Revenues EBITDA CAGR 2008-2010 > 146% (Mln €) CAGR 2008-2010 > 77% (Mln €) 80 70 99.9 60 50 46.8 40 31.9 30 20 10 0 2008 2009 2010 4
  • 6. Agenda  Investment highlights – Stefano Neri (CEO)  Market growth – Paolo Ricci (Executive Board Member)  2010 Financial Highlights - Paolo Allegretti (CFO)  Development Strategy and 2011-2013 Plan – Stefano Neri (CEO) 5
  • 7. Our positioning in the PV market value chain POWER UPSTREAM MIDSTREAM DOWNSTREAM GENERATION INSTALLATION SILICON WAFERS CELLS MODULES GENERATION DISTRIBUTION Players:  Players:  Players:  Players: ► Producers of silicon ► Manufacturers of solar cells ► System integrators ► Producers of and wafers ► Assemblers of modules  Role: electricity from the Market structure  Main countries: the US, Germany, China and Japan ► The management of the conversion of the ► Global authorization demand sunlight  Market structure: ► Concentrated ► 40% of the manufacturers are not integrated ► The design of the PV Business characteristics: plant ► 60% are integrated ► Huge barriers to entry ► Installation  Business characteristics:  Business characteristics: ► Capital intensive ► Strong relationships with ► High degree of automation local authorities are key ► High working capital needs Hemlock, MEMC, TerniEnergia Tokuyama, Wacker Chemie, M. Setek REC, Yingli Green Energy Bosch Solar Energy, PV Crystalox, RWE Schott, Sanyo, Sharp, Solarworld, First Solar, Evergreen Solar Suntech, Solarfun, Kyocera Kerself, Q Cells, Sunpower Conergy, Solon, SolarFabrik, Solaria Solar Energy Italia, Enerpoint, Enerqos, Phoenix Solar, Juwi, OPDE Group, Enel si Enel Green Power, Edison, Sorgenia, Enipower,… TerniEnergia presence Positioning in the Italian PV industry value chain 6
  • 8. Our business model: a fully integrated player EPC Turnkey Solutions Business Power Generation Business  Drafting & feasibility studies  50:50 Joint Ventures with highly reputable partners  Authorization procedures ►Financing of projects guaranteed  PV panels purchase and installation ►Leveraging “turnkey” expertise of  Plant construction TerniEnergia  Plant operation and maintenance  “Full Equity” started in 4Q 2010  Customer support Build Operate and Transfer  Build, Operate and Transfer (“BOT”) of grid connected PV plants 7
  • 9. Reliable and efficient business model PROJECT PV PLANT REMOTE SITE MARKETI CONTROL DEVELOP CONSTRU AND IDENTIFICATION NG MENT CTION MAINTENANCE Site identification  Marketing  Project  Plant construction  Plant operation development and maintenance ► Agricultural and ► Feasibility ► Preparation of industrial sites studies ► Authorization the final design ► Monitoring, acquisition for process emergency ► Contract ► Materials PV project services, management planning and implementation ordinary and and job order procurement extraordinary opening ► Construction and maintenance installation  Customer ► Grid connection assistance TerniEnergia’s unique business model enables in particular to: ► Control the entire construction process ► Optimize resources with a careful and synergistic management of construction sites and workshop ► Exploit the efficiency of trained, qualified and specialized personnel ► Optimize plant construction and installation timing through the planned integration of the typical activities of the different phases required ► Long term relationships with clients thanks to maintenance and customer assistance contracts (20 years) TerniEnergia’s business model allows full control of the entire operating process 8
  • 10. A new business plan: PV strategic guidelines TerniEnergia’s reaction in 1H2011 Previous plan • Strong focus on PV Industry based on • Development of large plants in JV and •Strong focus on PV Industry «Terzo Conto FE to increase the power generation •Development of large plants in Energia» business JV and FE to increase the power generation business •All plants covered by “Salva Alcoa” law connected to the grid Cutting •28 photovoltaic plants of incentives • Stop PV investments industrial size, for a cumulated • Financial difficulties in planning new installed power capacity of 57.3and legislation plants MWp connected between July vacatio and August 9
  • 11. A new business plan: PV strategic guidelines TerniEnergia’s challenge to grow New • Increases the incentive decalage “Quarto • Introduces restrictions on large • Property management systems Conto ground PV plants and an annual of the PV plants to maximize installation cap revenues from incentived fees Energia” and sale of produced energy • Optimization of plant operation and maintenance in order to achieve revenues stability and high margins • Focus on reduction of production costs • Expansion into foreign Market and increasing installation quality, e.g. countries, attraction strategy of on roof top changing foreign investor (e.g. • Return of foreign and large utilities international PV panels investments productors) and focus on industrial roof top plants • Acquiring stakes in Italian companies in order to enforce industrial activity and diversifying energy efficiencyCompetitive • Retreat of foreign investors businessframework • Overproduction of PV panels 10
  • 12. A new business plan: Energy Efficiency guidelines Market size limited but grew in the late 90s, to reach € 10 billion between the USA and EU in 2008 Hold strong growth over the next 10 years in Europe, Market Overview even after approval of the Directive “Pacchetto Clima“ European market (EU-25) estimated at least € 75 billion for 2020, with expected growth of 10 times between 2008 and 2020 11
  • 13. A new business plan: Energy Efficiency guidelines  Accredited by the AEEG and the GME  investments in projects that generate energy Energy Efficiency efficiency for the customers Experience  The energy savings generated by our projects amounted to over 150 million kWh  Identification of intervention areas, verification of technical feasibility and verification of the economic and financial viability of the project Our activities  Planning of the intervention, supply of materials, execution and our proposal of work - retrofitting and upgrading – plant testing  Management and maintenance of the facility, ensuring the smooth functioning of the same Industrial Energy Efficiency produces High Margins (over 30%) 12
  • 14. A new business plan: Energy Efficiency guidelines  Contracts for Energy Spread or Energy Service with Public and Private Lightning projects  Target: 34,000 LA in management by 2013, total investments of € 15 mln In FTT  Focus: Public illumination  Medium and large industrial groups and multi-facility in private lighting ORC Technologies: ORC (TerniEnergia), motors, inverter, others Organic (es., actions on productivity lines, ecc.) Rankine Cycle Engineering  Achievements "turnkey" for the redevelopment of lighting systems for other energy efficiency EPC  Target: 23,000 LA in management by 2013; 13
  • 15. Agenda  Investment highlights – Stefano Neri (CEO)  Market growth – Paolo Ricci (Executive Board Member)  2010 Financial Highlights - Paolo Allegretti (CFO)  Development Strategy and 2011-2013 Plan – Stefano Neri (CEO) 14
  • 16. Historical evolution of installed capacity (MWp) 5% 33% FE (MWp) JV (MWp) 62% EPC (MWp) FE (MWp) 10,40 Total installed Plants 242 JV (MWp) 61,20 Total installed Power (MWp) 187,00 EPC (MWp) 115,40Source: Company information, as at 1° September 2011 15
  • 17. Sound financial structure with outstanding growth track record Revenues EBITDA Net income +900% 14,6 9,0 9% 99,9 8% 7,3 3,7 46,8 31,8 1,7% 2,3 1,7% 10,0 0,8 0,2 0,5 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 Double-digit organic growth with margins of industry best in class 16Source: Company information
  • 18. Sound financial structure with outstanding growth track record Revenues EBITDA Net income 16,2 9,9 116,4 13,6 5,9 5,4 7,6 4,6 3,6 36,3 8,9 5,9 20,6 1,2 2,8 1H 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 Double-digit organic growth with margins of industry best in class 17
  • 19. Sound financial structure with outstanding growth track record 1H 2011 Bridge to Earnings Before Taxes (€ ‘000) 100.0% (36.1%) (34.1%) (18.6%) (3.4%) (0.1%) 7.6% (0,5%) 7.1,0% (1,0%) 1.0% 7,1% (42.033) 116.435 (39.755) (21.675) (3.920) (156) (635) 1.128 1.127 8.896 8.262 8.262 REVENUES Change Cost of Cost of staff charges other cost EBITDA D&A EBIT Interest cost Joint Venture EBT invetories Materials Services 2010 Bridge to Earnings Before Taxes (€ ‘000)100.0% 60,3% (106,1%) (33.7%) (5.5%) (0.3%) 14,6% (0,9%) 13,8% (0,9%) 0.6% 13,5% 100.0% 60,3% (106,1%) (33.7%) (5.5%) (0.3%) 14,6% (0,9%) 13,8% (0,9%) 0.6% 13,5% 60,220 (106,220) (33,647) 99,933 (5,494) (349) (859) (893) 586 14,425 13,766 13,460Revenues Chg in Material Services Personnel Other EBITDA D&A EBIT Interest JV EBT invetories costs costs costs costs cost 18 18
  • 20. Sound financial structure with outstanding growth track record Net debt (€m) and net debt / EQUITY(x) NWC (€m) and NWC / Sales (%)Net 2,7 5.7 36 NWC 12.4 23,2 39debt 51,5 1,2x 22,2 11,0 0,2x 0,2x (8,3) (19,6) (16,4) 2009 2010 1H 2011 Financial Indebtness Cash and CashEquivqlents NFP/Equity 19
  • 21. Focus on joint ventures JVs – Sales and EBITDA (€ ‘000) Comments 19.8 49,3  According to IFRS, JVs are not included in the consolidated EBITDA nor in the net debt of TerniEnergia 13.3 27,4  JV business model: 15% equity (shared ½ by JV’s 10.604 partners) – 85% debt 84,2%  60 plants completed as of June 30, 2011 Fatturato Ebitda Ebitda margin  Total capacity: 61,2 MWp in operation (40 in 2011) 8.932  JVs consolidated net debt: €197.9m as of June 30, 2011 of wich €9.9m of cash ► Approx. 50% long term debts (18/20 years) 4.112 ► Approx. 80-90% swapped at a fixed rate in order to stabilise cash-flows 42,7%  The EBITDA margin is typically affected by the time gap between the installation phase (when most of the operating costs are incurred) and the grid connection (when the plant start generating revenues) 1.756  At regime, it is expected that EBITDA margin could range between 80-90% according to the electricity production results 2009 2010 Cumulated installed capacity MWp Cumulated operating MWp 20Source: Company information
  • 22. 2012- 2013 Plan: EBITDA and Revenues EBITDA and REVENUES TREND (Euro ML) CAGR 2012-2013 = 8%100 93 Target 2012E-2013E 90 86 80 2012E 70 • Revenues: 86 Euro Mln 60 50 • EBITDA: 16 Euro Mln CAGR 2012-2013 = 12% 40 30 18 2013E 20 16 • Revenues: 93 Euro Mln 10 0 • EBITDA: 18 Euro Mln EBITDA Revenues 2012 E 2013 E 2012 E: 18% EBITDA Margin 2013 E: 19% 21
  • 23. 2012- 2013 Plan: Capex targeted Capex Targeted 2012-2013 (ML euro) CAGR 2012-2013 = 8% 12,0 11,5 10,9 11,0 10,0 2012 2013 Total targeted Capex for JV and Energy Efficiency Business D/E 2013: 1.0 22
  • 24. Agenda  Investment highlights – Stefano Neri (CEO)  Market growth – Paolo Ricci (Executive Board Member)  2010 Financial Highlights - Paolo Allegretti (CFO)  Development Strategy and 2011-2013 Plan – Stefano Neri (CEO) 23
  • 25. A new business plan: development guidelines“A strong reaction to changes in PV regulatory and incentives”  Advanced approach in the new industrial energy efficiency business in 2011 since now. Business no policy driven  Starting abroad PV industrial activity through first EPC contract with a subsidiary of an european major utility  PV activities as EPC Turnkey and JV providers: target capacity over 120 MWp in 2012-2013 (PV modules partially included)  Profitability in power generation business through JV and Full equity plants guaranteed for 20 years  Keep unchanged the dividend value 24
  • 26. Additional material 25
  • 27. Additional material Appendix 26
  • 28.  Highly skilled management team  Highly experienced management with deep industry knowledge on board since the creation of TerniEnergia  Well connected in Italian PV business  Running a young, dynamic and skilled organization to deliver strong results Stefano Neri – Chairman and CEO of TerniEnergia  Born in Terni on 14 September 1959  Degree in Law at “La Sapienza” University in Rome  Certified attorney since 1985, specialized in administrative law, authors of several papers in the field Experienced and reliable management team  1998-2000: vice president at “Interpark Servizi per l’Ecologia S.r.l.” (Group Falck)  Founder of T.E.R.N.I. Research, from September 2006 is chairman of TerniEnergia BoD Paolo Ricci – Executive Director – Business Development  Born in Terni on 15 July 1940  Degree in Electric Engineering at “La Sapienza” University in Rome  1978-2000: several managerial roles at Enel S.p.A. before becoming head of Transmission sector division  2000-2005: responsible for the engineering and the management of “Rete Elettrica Nazionale” plants at TERNA S.p.A.  From 2007 is a member of TerniEnergia BoD, and chairman of the BoD of Solar Energy S.r.l., Energia Alternativa S.r.l., Energie S.r.l. and Foto Solare Settima S.r.l. JV Fabrizio Venturi – Executive Director – Chief Operating Officer  Born in Terni on 14 February 1964  Degree in Sociology at “La Sapienza” in Rome  1990-2007: CEO at Venturi S.p.A., a company operating in the realization of electric industrial plants. From August 2007 is a member of TerniEnergia Board of Directors Paolo Allegretti – Chief Financial Officer and Investor Relator  Born in Terni on 6 July 1971  Degree in Business Administration at “La Sapienza” University in Rome  2002-2008: head of the internal control and financial controller at Keryos S.p.A.  From October 2009 is CFO at TerniEnergia, after being head of the Planning & Control department from 2008 and head of Internal Control from 2009 27 27
  • 29. “Quarto Conto Energia” Deadline extention to enter in the third feed in tariff (August 31th, 2011 instead of June 30th, 2011); Fixing, only for the big PV Plants, of a cap, for each year until 2016, in MWp and in sum of money to provide FIT. Follow the table: june 2011 - First Second First First Half Second Second First Second First Second Total december Half Half 2012 Half 2013 Half 2014 Half 2014 Half Half 2015 Half Half 2016 2011 2012 2013 2015 2016Cost CAP 300 150 130 240 240 200 200 155 155 80 80 1.930€/mioGenerallevel of 1.200 770 720 1.115 1.225 1.130 1.300 1.140 1.340 1.040 1.480 12.460MWp The establishment of a FIT application register to run a ranking which is previously established based on the progress of the PV Plant installation booked; 28
  • 30. New FIT 2011 - June – August 29
  • 31. New FIT 2011 september - December 30
  • 32. New FIT - 2012 31
  • 33. New FIT - 2013 Starting 2013 the FIT system becoming only a Feed In system on German model. 32