ternienergia star conference london 2011
Post on 07-Apr-2017
504 Views
Preview:
TRANSCRIPT
TerniEnergia A leading Italian PV energy company
London - Star Conference 2011
3-4-5 October 2011
1 1
Disclaimer
This document has been prepared by TerniEnergia solely for information purposes and for use in
presentations of the Group’s strategies and financials. The information contained herein has not been
independently verified. No representation or warranty, express or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or correctness of the information
or opinions contained herein. Neither the company, its advisors or representatives shall have any
liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this
document 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 of
assumptions which may prove to be incorrect and, accordingly, actual results may vary. This
document does not constitute an offer or invitation to purchase or subscribe for any securities and no
part of it shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever. The information herein may not be reproduced or published in whole or in part, for any
purpose, or distributed to any other party. These materials do not constitute or form a part of any offer
or solicitation to purchase or subscribe for securities.
2
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)
Agenda
3
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
Flexible business model
Investment Highlights
4
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
31.9
46.8
99.9
0
10
20
30
40
50
60
70
80
2008 2009 2010
(Mln €) (Mln €) CAGR 2008-2010 > 77% CAGR 2008-2010 > 146%
A solid track record
5
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)
Agenda
6
Our positioning in the PV market value chain
UPSTREAM MIDSTREAM DOWNSTREAM POWER
GENERATION
Players:
► Producers of silicon and wafers
Market structure
► Global
► Concentrated
Business characteristics:
► Huge barriers to entry
Players:
► Manufacturers of solar cells
► Assemblers of modules
Main countries: the US, Germany, China and Japan
Market structure:
► 40% of the manufacturers are not integrated
► 60% are integrated
Business characteristics:
► Capital intensive
► High degree of automation
Players:
► System integrators
Role:
► The management of the authorization demand
► The design of the PV plant
► Installation
Business characteristics:
► Strong relationships with local authorities are key
► High working capital needs
TerniEnergia presence
SILICON INSTALLATION DISTRIBUTION
GENERATION WAFERS CELLS MODULES
Players:
► Producers of electricity from the conversion of the sunlight
Hemlock, MEMC, Tokuyama, Wacker Chemie, M. Setek
REC, Yingli Green Energy
Bosch Solar Energy, PV Crystalox, RWE Schott, Sanyo, Sharp, Solarworld, First Solar, Evergreen Solar
TerniEnergia
Solar Energy Italia, Enerpoint, Enerqos, Phoenix Solar, Juwi, OPDE Group, Enel si
Conergy, Solon, SolarFabrik, Solaria
Suntech, Solarfun, Kyocera
Kerself, Q Cells, Sunpower
Enel Green Power, Edison, Sorgenia, Enipower,…
Positioning in the Italian PV industry value chain
7
EPC Turnkey Solutions Business Power Generation Business
Drafting & feasibility studies
Authorization procedures
PV panels purchase and installation
Plant construction
Plant operation and maintenance
Customer support
50:50 Joint Ventures with highly
reputable partners
►Financing of projects guaranteed
►Leveraging “turnkey” expertise of
TerniEnergia
“Full Equity” started in 4Q 2010
Our business model: a fully integrated player
Build, Operate and Transfer (“BOT”) of
grid connected PV plants
Build Operate and Transfer
8
Reliable and efficient business model
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)
MARKETI
NG
SITE
IDENTIFICATION
PROJECT
DEVELOP
MENT
PV PLANT
CONSTRU
CTION
REMOTE
CONTROL
AND
MAINTENANCE
Marketing
► Feasibility
studies
► Contract
management
and job order
opening
Project development
► Authorization
process
Plant construction
► Preparation of
the final design
► Materials
planning and
procurement
► Construction and
installation
► Grid connection
Plant operation and maintenance
► Monitoring,
emergency
services,
ordinary and
extraordinary
maintenance
Customer assistance
TerniEnergia’s business model allows full control of the entire operating process
Site identification
► Agricultural and
industrial sites
acquisition for
PV project
implementation
9
• Stop PV investments
• Financial difficulties in planning new plants
Cutting
incentives
and legislation
vacatio
• Strong focus on PV Industry
• Development of large plants in JV and FE to increase the power generation business
Previous plan
based on
«Terzo Conto Energia»
•Strong focus on PV Industry
•Development of large plants in JV and FE to increase the power generation business
•All plants covered by “Salva Alcoa” law connected to the grid
•28 photovoltaic plants of industrial size, for a cumulated installed power capacity of 57.3 MWp connected between July and August
A new business plan: PV strategic guidelines
TerniEnergia’s
reaction in 1H2011
10
• Retreat of foreign investors
• Overproduction of PV panels
Competitive
framework
• Increases the incentive decalage
• Introduces restrictions on large ground PV plants and an annual installation cap
New
“Quarto Conto
Energia”
• Focus on reduction of production costs and increasing installation quality, e.g. on roof top
• Return of foreign and large utilities investments
Market
changing
TerniEnergia’s
challenge to grow
A new business plan: PV strategic guidelines
• Property management systems of the PV plants to maximize revenues from incentived fees and sale of produced energy
• Optimization of plant operation and maintenance in order to achieve revenues stability and high margins
• Expansion into foreign countries, attraction strategy of foreign investor (e.g. international PV panels productors) and focus on industrial roof top plants
• Acquiring stakes in Italian companies in order to enforce industrial activity and diversifying energy efficiency business
11
A new business plan: Energy Efficiency guidelines
Market size limited but grew in the late 90's, to reach
€ 10 billion between the USA and EU in 2008
Hold strong growth over the next 10 years in Europe,
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
Market Overview
12
Accredited by the AEEG and the GME
investments in projects that generate energy
efficiency for the customers
The energy savings generated by our projects amounted to
over 150 million kWh
Energy Efficiency
Experience
Our activities
and our proposal
Identification of intervention areas, verification of technical
feasibility and verification of the economic and financial
viability of the project
Planning of the intervention, supply of materials, execution
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%)
A new business plan: Energy Efficiency guidelines
13
A new business plan: Energy Efficiency guidelines
Contracts for Energy Spread or Energy Service with Public and Private Target: 34,000 LA in management by 2013, total investments of € 15 mln
Focus: Public illumination Medium and large industrial groups and multi-facility in private lighting
Technologies: ORC (TerniEnergia), motors, inverter, others (es., actions on productivity lines, ecc.)
Achievements "turnkey" for the redevelopment of lighting systems for other energy efficiency
Target: 23,000 LA in management by 2013;
Lightning
projects
In FTT
ORC
Organic
Rankine Cycle
Engineering
EPC
14
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)
Agenda
15
Historical evolution of installed capacity (MWp)
5%
33%
62%
FE (MWp)
JV (MWp)
EPC (MWp)
Source: Company information, as at 1° September 2011
Total installed Plants 242
Total installed Power (MWp) 187,00
FE (MWp) 10,40
JV (MWp) 61,20
EPC (MWp) 115,40
16
Sound financial structure with outstanding growth track record
Source: Company information
Revenues EBITDA Net income
Double-digit organic growth with margins of industry best in class
+900%
10,0
31,8
46,8
99,9
2007 2008 2009 2010 2007 2008 2009 2010
0,2 0,5
3,7
9,0
1,7%
1,7%
8%
9%
2007 2008 2009 2010
0,8
2,3
7,3
14,6
17
Sound financial structure with outstanding growth track record
Revenues EBITDA Net income
Double-digit organic growth with margins of industry best in class
1H 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011
20,6
36,3
116,4
2,8
5,9
8,9
13,6
16,2
7,6
1,2
3,6
5,4
5,9
9,9
4,6
18
116.435
(42.033)
(39.755)
(21.675)
(3.920) (156) 8.896
(635) 8.262
1.128 1.127 8.262
REVENUES Changeinvetories
Cost ofMaterials
Cost ofServices
staff charges other cost EBITDA D&A EBIT Interest cost Joint Venture EBT
Sound financial structure with outstanding growth track record
1H 2011 Bridge to Earnings Before Taxes (€ ‘000)
100.0% (18.6%) (3.4%) (0.1%) 7.6% (0,5%) 7.1,0% (1,0%) 1.0% 7,1% (36.1%)
2010 Bridge to Earnings Before Taxes (€ ‘000)
(34.1%)
18
100.0% 60,3% (33.7%) (5.5%) (0.3%) 14,6% (0,9%) 13,8% (0,9%) 0.6% 13,5% (106,1%)
99,933
60,220
(106,220)
(33,647)
(5,494) (349)
14,425
(859)
13,766
(893) 586
13,460
Revenues Chg in
invetories
Material
costs
Services
costs
Personnel
costs
Other
costs
EBITDA D&A EBIT Interest
cost
JV EBT
100.0% 60,3% (33.7%) (5.5%) (0.3%) 14,6% (0,9%) 13,8% (0,9%) 0.6% 13,5% (106,1%)
19
Sound financial structure with outstanding growth track record
NWC (€m) and NWC / Sales (%)
39 12.4 23,2 NWC
Net debt (€m) and net debt / EQUITY(x)
Net
debt 36 2,7 5.7
11,0 22,2
51,5
(8,3)
(16,4)(19,6)
0,2x 0,2x
1,2x
2009 2010 1H 2011
Financial Indebtness Cash and CashEquivqlents
NFP/Equity
20
Focus on joint ventures
JVs – Sales and EBITDA (€ ‘000) Comments
According to IFRS, JVs are not included in the
consolidated EBITDA nor in the net debt of TerniEnergia
JV business model: 15% equity (shared ½ by JV’s
partners) – 85% debt
60 plants completed as of June 30, 2011
Total capacity: 61,2 MWp in operation (40 in 2011)
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)
► Approx. 80-90% swapped at a fixed rate in order to
stabilise cash-flows
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)
At regime, it is expected that EBITDA margin could
range between 80-90% according to the electricity
production results
Cumulated installed capacity MWp
Source: Company information
19.8 49,3
13.3 27,4
Cumulated operating MWp
4.112
10.604
1.756
8.932
42,7%
84,2%
Fatturato EbitdaEbitda margin
2009 2010
21
2012E
• Revenues: 86 Euro Mln
• EBITDA: 16 Euro Mln
16
86
18
93
0
10
20
30
40
50
60
70
80
90
100
EBITDA Revenues
EBITDA and REVENUES TREND (Euro ML)
2012 E 2013 E
CAGR 2012-2013 = 12%
CAGR 2012-2013 = 8%
2012- 2013 Plan: EBITDA and Revenues
2013E
• Revenues: 93 Euro Mln
• EBITDA: 18 Euro Mln
Target 2012E-2013E
EBITDA Margin 2012 E: 18%
2013 E: 19%
22
10,9
11,5
10,0
11,0
12,0
2012 2013
Capex Targeted 2012-2013 (ML euro)
CAGR 2012-2013 = 8%
2012- 2013 Plan: Capex targeted
Total targeted Capex for JV and Energy Efficiency Business
D/E 2013: 1.0
23
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)
Agenda
24
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
“A strong reaction to changes in PV regulatory and incentives”
A new business plan: development guidelines
25
Additional material
26
Additional material
Appendix
27 27
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
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
Ex
pe
rie
nc
ed
an
d r
eli
ab
le m
an
ag
em
en
t te
am
28
“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:
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;
june 2011 -
december
2011
First
Half
2012
Second
Half 2012
First
Half
2013
First Half
2013
Second
Half 2014
Second
Half 2014
First
Half
2015
Second
Half 2015
First
Half
2016
Second
Half 2016
Total
Cost CAP
€/mio 300 150 130 240 240 200 200 155 155 80 80 1.930
General
level of
MWp
1.200 770 720 1.115 1.225 1.130 1.300 1.140 1.340 1.040 1.480 12.460
29
New FIT 2011 - June – August
30
New FIT 2011 september - December
31
New FIT - 2012
32
New FIT - 2013
Starting 2013 the FIT system becoming only a Feed In system on German model.
top related