Star Conference London
London, October 2nd 2014
Luogo e data
Group Overview
Strategy
Financial Highlights
Conclusions
Falck Renewables at a glance
A “pure player” in the renewable energy sector
Industrial player and Developer
￭ 29 plants across Europe with a
good technology mix :
- Wind - 17 for 711 MW
- Biomass / WTE - 2 for 35 MW
- Solar - 5 for 16 MW
￭ Greenfield Development and
Performance & Asset Mgt
￭ 762* MW in operations
￭ Captive for the Group
￭ 37.5 MW under construction
￭ International presence
￭ 94 MW authorized
￭ ~ 180 MW pipeline
3
Service provider
* 726 MW according to the adoption of IFRS 11
￭ Third parties assets through a
specialised company – Vector
Cuatro
Falck Renewables: 762 MW* Across Europe…
Plants/MW
In operation
4/120
Plants/MW
Authorised/Under constr.
8/317
ITALY - Buddusò
Ala dei Sardi
138 MW
ITALY – WTE
Trezzo sull’Adda
20 MW
ITALY
Cardonita
3.7 MW
2/49
UK
Millenium
65 MW
SPAIN
Cabezo
23.25 MW
FRANCE
Les Cretes
10 MW
* 726 MW according to the adoption of IFRS 11
4
4 /42
1/12
14 /354
… and a wide pipeline
 38 MW under construction ( ) and around 80 MW authorized ( )
Assel Valley (up to 30
MW authorized)
Kingsburn (up to 22,5
MW under construction)
– Q1 2016
West Bromwich (up to
16.2 MW authorized)
Auchrobert (up to 36
MW authorized)
Spaldington (up
to 15 MW - under
construction) –
Q2 2015
 ~180 MW under development mainly in the UK
 ~ 130 MW in Wind
 ~ 50 MW in WTE/Biomass
5
Illois (up to 12 MW
authorized)
Consistent delivery and cash flow generation
Plants
Continuos Profitability Growth
24
19
13
11
1
2
1
1
2
2
3
2
2
1
2
1
300
7
7
7
100
17
16
14
13
0
2008
2009
Wind
2010
Solar
2011
WTE
2012
498
6.0
185
5.8
72
2008
96
95
2009
2010
REVENUES
275
276
731
716
5.3
4.8
600
NFP
Derivatives
December CAPEX net of Fair Value
2011
Variation
Disposals
Cash Flow
from
Operations
2011
2012
2013
0
2012
2013
MW
Dividends
Other
(9)
(11)
400
(826)
PFN/EBITDA
157
30%
Cash Flow Generation
2.0
2011
142
158
EBITDA MARGIN
200
6
249
60%
50%
4.0
2010
57%
40%
EBITDA
800
684
43
Biomass
10.0
7.7
185
35%
2007
2013
PFN/Ebitda vs MW Growth
8.0
51%
58%
152
8
2007
52%
57%
122
13
6
48%
200
4
2
2
1
27
2
1
20
26
(114)
6
197
NFP
December
2013
Stock Performance and Governance
1.8000
12
1.5000
10
1.2000
8
0.9000
6
0.6000
4
0.3000
2
0.0000
31/12/13
31/01/14 28/02/14
31/03/14 30/04/14
31/05/14 30/06/14
31/07/14
31/08/14 30/09/14
31/10/14 30/11/14
Market Segment: STAR MTA
Reuters Code: FKR.MI
Bloomberg Code: FKR IM
Number of Shares Outstanding: 291,413,891
Auditors: Reconta Ernst & Young
* Source: Consob and Company
** Last three months
Milioni
Shareholders’ structure *
volumi
prezzi
Falck Renewables price performance
31/12/14
Price (September 26th, 2014): 1.045 Euro
Market Cap (September 26th,2014): 304 mn Euro
Average Daily Volume**: 429.047
Specialist: Banca Akros
7
Group Overview
Strategy
Financial Highlights
Conclusions
Falck Renewables: three pillars strategy
Industrial player and developer
Expand the asset portfolio in different countries by co-development with
strategic partners
Service
Cover the whole value chain in the renewable energy industry developing a
service division to extract more value from the Assets (inside and outside the
Group) and to optimize the performance within the market rules
Innovation
Create an innovation division to propose new products and processes for
Energy Hubs capable of optimizing the performances of the renewable assets
and their integration with the grids
9
Industrial player and developer: Wind Sector
￭ Sale of 49% stake in UK qualified operating assets to CII for a cash in of GBP 154.4m
(EV equating to approx. € 2m/MW installed)
￭ Co-investment with CII after assets disposal:
￭ € 100m in already authorized/under construction onshore wind projects in
the Falck Renewables portfolio
￭ € 125m in other plants in the broader renewable energy sector
￭ Construction and operation of authorized MW (Spaldington, Kingsburn, Assel
Valley, Auchrobert, Illois )
*
MW
Euro/000
10
Dec 2013
670.3
Dec 2013
Dec 2012
655.3
Dec 2012
Revenues
187,742
180,887
Ebitda
135,532
131,726
* Figures not restated for IFRS 11
Industrial player and developer: Biomass, WTE and Solar
1/2
￭ Strong capex plan to balance non programmable sources
￭ New technology mix with WTE, solar thermo (Rende site), anaerobic digestion and
waste biomass plants
￭ Partnership with Verus Energy Limited Acquisition to construct a new plant in
Waste to Energy through an advanced technology in West Bromwich (UK)
WtE, biomass and solar sector
*
MW
Euro/000
11
Dec 2013
61.1
Dec 2013
Dec 2012
61.1
Dec 2012
Revenues
88,064
93,661
Ebitda
32,960
37,049
* Figures not restated for IFRS 11
Industrial player and developer: Biomass, WTE and Solar
Acquisition of 51% of Verus Energy Oak Limited
2/2
Partnership with Verus Energy Limited
 Acquisition of 51% of the special purpose project entity, Verus Energy Oak Limited (“VEOL”) that
owns the authorization to construct a new plant in Waste to Energy through an advanced
technology in West Bromwich (UK)
 The plant envisages energy recovery through the thermal treatment of RDF (Refuse Derived Fuel:
i.e. solid fuel obtained from non-hazardous waste) and uses bubbling type fluid bed stage
gasification technology to do so
Details
 Approval subject to due diligence investigations and the







12
verification of bankability still underway
Location: West Bromwich (8 km west of Birmingham)
Input Capacity: 130,000 tons/year of Refuse Derived Fuel (RDF)
Plant Nominal Capacity: 16.2 MW
Total Capex expected: approx. GBP 80m
Revenues expected: approx. GBP 20 - 21m
EBITDA expected : approx. GBP 9 – 10m
The project will produce power equivalent to the demand from
25.500 UK homes and it will avoid 36.000 ton. of CO2 per year
New service division
Vector Cuatro Acquisition
1/3
￭ Vector Cuatro S.L. is a Spanish company active in the management of the whole
value chain of energy projects: from advisory to structuring, from engineering to
management and administration of renewables facilities
￭ The company has been founded in 2007 by Borja Escalada, CEO and major
shareholder of Vector Cuatro (~ 51%). The management team owns, directly and
indirectly, the remaining 49% of the capital
￭ Vector Cuatro is currently managing around 934 MW of third party assets with a
team made of around 100 employees
￭ Main presence in Spain, Italy, France with significant opportunities growth in
Japan, Mexico and other countries (North America, South Africa , Bulgaria)
13
New service division
Vector Cuatro direct presence and activities
2/3
CANADA
SPAIN
FRANCE
JAPAN
• Asset Management
• Asset Management
• Engineering
• Transaction &legal ser.
• Asset Management
• Engineering
• Legal services
• Engineering
• Transaction &legal ser.
UNITED
STATES
DOMINICAN
REPUBLIC
ROMANIA
GUATEMALA
GREECE
ECUADOR
ISRAEL
PERU’
PORTUGAL
CHILE
SOUTH
AFRICA
MEXICO
Start-up
• Asset Management
• Engineering
• Transaction &legal ser.
14
Vector Cuatro current direct presence
ITALY
BULGARIA
• Asset Management
• Engineering
• Asset Management
Potential upside due to Vector Cuatro historical presence
AUSTRALIA
New service division
FKR and Vector Cuatro integration’s potential upside
 Market competencies from an asset owner point
of view in renewable energy markets (wind, solar,
WTE and Biomass)
 Technical competencies to improve asset
performances
 Portfolio management
 Finance & Incentives
 Strong experience in the wind sector
3/3
 Solid client relationships due to strong
commercial acumen and client acquisition skills
 Deep-rooted service provider mentality to meet
clients’ needs and expectations
 Asset Management and Engineering
competencies
 Mainly PV but also wind competencies
(Development, Permitting and Engineering)
 Cohesive, highly motivated, young, dynamic and
internationally minded management team
The integration will merge several competencies to be successful in the market, speeding up changes
 Market competencies to extend product offering (cross-sell asset management services and larger client base)
 Technological diversification: opportunity to expand the service platform to new technologies
 Geographic expansion: new countries and opportunity to increase the current presence
 Further optimization in asset management activities currently carried out internally by FKR
 Performance improvements on both FKR asset base (wind, PV, biomass, WTE) and third parties asset base
15
Group Overview
Strategy
Financial Highlights
Conclusions
H1 2014 highlights
IFRS 11 APPLICATION
June 14
∆ vs
June 13
∆ %
June 13
INSTALLED CAPACITY - MW
726
+ 46
+ 7%
680
ENERGY PRODUCTION - GWh
897
- 90
- 9%
987
REVENUES - €m
127.2
- 14.8
- 10%
142.0
EBITDA - €m
72.1
- 16.4
- 19%
88.5
NET EARNINGS - €m
5.7
- 13.6
- 71%
19.3
Starting from January 2014, new IFRS 11 (JV’s accounting treatment) has been adopted and according to this principle
investments in Frullo Energia Ambiente, La Muela and Palermo Energia Ambiente have been recognised by equity method.
Also the 1H 2013, for comparative purposes, has been reclassified with the new IFRS 11.
17
H1 2014 key factors
√ 2014 Guidance
Operating business
 Poor wind conditions across Europe
√  Low tariffs and no incentives in Spain
√  Penalties on non programmable sources (E.g.“minimi garantiti”, captured price)
and on programmable sources (CIP 6)
Ongoing activities
 According to the Framework Investment Agreement with CII, FKR is actively in
talks for the sale of the minorities in Nutberry and West Browncastle wind farms
H1 2014 Results
 Results in line with expectations
√  Increasing contribution from the UK due to change of perimeter (Nutberry 15MW, full year - and West Browncastle -30 MW, one month)
√  Cash generation from operating plants and cash-in from the “Borea” deal with CII
enabled a strong reduction of the Net Financial Position
18
H1 2014 Financial highlights
millions of euro
June 2014
June 2013
Dec 2013*
Revenues
127.2
142.0
253.9
Net Operating costs
(55.1)
(53.5)
(108.5)
72.1
88.5
145.3
% on Revenues
56.7%
62.3%
57.2%
Depreciation - Amortization - Write Off
(32.4)
(33.0)
(71.7)
39.7
55.5
73.6
% on Revenues
31.2%
39.1%
29.0%
Financial income and charges
(25.3)
(25.2)
(45.0)
0.8
2.2
-
Earnings Before Taxes
15.1
32.4
28.6
Taxes
(9.4)
(13.2)
(13.7)
Net Result
5.7
19.3
14.9
Minorities
(3.0)
(0.1)
0.2
2.7
19.2
15.1
June 2014
June 2013
Dec 2013
1,103.3
1,131.5
1.106,9
505.4
377.4
378.8
Net Financial Position
(597.9)
(754.1)
(728.1)
of which: Proj. Fin. and MLT no recourse
(692.6)
(734.1)
(690.8)
NFP excluding Derivatives Instruments
(531.2)
(691.7)
(673.7)
Ebitda
Operating result
Equity investments
Net Group Result
millions of euro
Net Invested Capital
Equity
19
* 2013 Figures restated for IFRS 11
Cash flow and net financial position
Cash flow
NFP
December
2013
Exch
CAPEX net of difference on
Disposals
assets
Derivatives
Fair Value
Variation
Cash Flow
from
Operations
Euro millions
Cash from CII
Subloan CII
Dividends
NFP June 2014
(15)
(598)
€139 m
(47)
(728)
(22)
(16)
(12)
56
186
NFP breakdown
120
Euro millions
144
(67)
(22)
(49)
(27)
(4)
(598)
(693)
Cash
20
SPVs
Cash
PF
Derivatives
FKR
Corp.
Loan
Subloan
CIP
MLT Loans
&
Local Comm.
Other
net
debts
NFP
Group Overview
Strategy
Financial Highlights
Conclusions
Outlook: 2014 Target confirmed
￭ Regulation changes - CIP 6 - and energy price trend should continue in the second
part of the year
￭ Well on track with the diversification toward a new business model more balanced
in favour of programmable sources and services
Euro millions
145 *
130-135
PRICES (ITA & SPAIN)
NET VOLUMES
PERIMETER (NUTBERRY
& WEST BROWNCASTLE)
CIP6 EXPIRING (TREZZO)
DEVEX
2013
* € 157 mln without IFRS 11 application
22
2014E
Why Falck Renewables ?
Industry
 Balanced presence
across markets
 Proven ability to
deliver projects
 Experienced
Management
23
Outlook
 Strong profitability
and robust cash
flow
 New partner CII
 Portfolio
rebalancing
Investment case
 Self sustainable
business
 Financially stronger
after JV with CII
 Undervaluation of
the existing assets
not included in the
transaction
Contacts
IR Contacts
FKR on line
IR Manager
www.falckrenewables.eu
Giorgio Botta
Milan +39 02 2433 3338
giorgio.botta@falckgroup.eu
Twitter
@falckrenewables
Via Alberto Falck 14-16
20099 Sesto San Giovanni
Milano
IR Consultant
Vincenza Colucci
CDR Communication Srl
Tel. +39 335 6909547
vincenza.colucci@cdr-communication.it
24
Next events
November 12th , 2014
Board of Directors to approve Q3 2014 results
Disclaimer
This document has been prepared by Falck Renewables S.p.A. (the "Company") for use during meetings with investors and
financial analysts and is solely for information purposes. The information set out herein has not been verified by an
independent audit company.
Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the “Group”), as well as any of
their directors, officers, employees, advisers or agents (the “Group Representatives”) accepts any responsibility for/or
makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information
set out herein or any other related information regarding the Company and/or Group, whether written, oral or in visual or
electronic form, transmitted or made available.
This document may contain forward-looking statements about the Company and/or the Group based on Company’s current
views, beliefs, expectations, opinions, as well as based on current plans, estimates, assumptions, projections and projects of
the Company and/or Group. These forward-looking statements are subject to significant risks, uncertainties and other factor
(many of which are beyond the Company and/or the Group’s control) which might cause actual results, performance or
achievements to be materially different from any future results, performance or achievements expressed or implied by
these forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance
on the forward-looking statements in this document.
The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws
and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements
or to conform these statements to its actual results.
Under no circumstances shall the Company, the Group and/or any of the Group Representatives be held liable (for
negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or
otherwise in connection with the document or the aforesaid forward-looking statements.
This document does not constitute an offer to sell or a solicitation to buy or subscribe the shares of the Company or Group
and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to
conclude any legal act of any kind whatsoever.
This document may not be reproduced or distributed, in whole or in part, by any person other than the Company.
By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.
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