Voltalia SA: New 2023 growth ambitions

Voltalia SA 
Voltalia SA: New 2023 growth ambitions 
 
06-Jun-2019 / 07:30 CET/CEST 
Dissemination of a French Regulatory News, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            Today: 
 
  · 2020 targets: 1 GW installed capacity secured with an EBITDA of 
  EUR160-EUR180 million 
 
  · 0.6 GW of additional secured projects now bringing total secured 
  capacity to 1.6 GW 
 
  · Validation of the services strategy as a source of short and long-term 
  value creation 
 
Tomorrow: new 2023 targets 
 
  · Capacity in operation or construction above 2.6 GW (x2.9 compared with 
  2018) 
 
  · EBITDA between EUR275-EUR300 million (x3.6 - x4 compared with 2018) 
 
 "In an expanding market, our Group records a fast and profitable growth. We 
      have built an original model in our industry, with teams active at all 
        stages of a project lifecycle, from early development to operation & 
   maintenance of our owned plants and the ones of our clients. After having 
 secured its 1 GW objective of installed capacity by end 2020 (+91% compared 
            with end 2018), Voltalia now targets capacity installed or under 
 construction of more than 2.6 GW with an EBITDA between 275 and 300 million 
     euros by 2023. We will keep focusing on renewable plants projects which 
produce affordable energy, to be also possibly sold directly to corporations 
         through Corporate PPAs", comments Sébastien Clerc, CEO of Voltalia. 
 
      *** 
 
During a Capital Markets Presentation held today in Paris, Voltalia Euronext 
      Paris, (ISIN code: FR0011995588), an international player in renewable 
  energies, presents its new strategic ambitions to the financial community. 
 
            A fast-growing market 
 
      The renewable energy market benefits from long-term growth drivers: 1) 
       growing needs for electricity, notably in emerging countries to which 
         renewables provide a well-proven and fast solution; 2) geostrategic 
   independence, as renewables are local by definition and are accessible to 
    all countries, reducing dependence on imports and on price volatility of 
  fossil fuels; 3) increasing efforts realised and expected to fight against 
     climate change; and 4) competitiveness: renewables are today one of the 
            cheapest ways to produce electricity. 
 
            Voltalia, a distinctive profile backed by a strong track record 
 
     In this dynamic and fast-transforming environment, the Group is ideally 
  positioned thanks to a distinctive positioning. Voltalia is present across 
    the entire value chain through its energy sales and services businesses, 
    reinforced by the successful integration of the service company Martifer 
         Solar in 2016. This positioning enables, at each stage of a project 
         lifecycle, to align the Group's interests with the interests of its 
   stakeholders, in order to ensure a shared and sustainable value creation. 
 
  Voltalia benefits from a strong growth track record in installed capacity: 
         the 1 GW objective is already secured by 2020 thanks to the work of 
Voltalia's development and construction teams. Furthermore, these teams have 
        secured an 0.6 GW of additional capacity, bringing the total secured 
            capacity to 1.6 GW. 
 
A model characterized by visibility on revenues and attractive internal 
rates of return 
 
The economic model developed by Voltalia fosters electricity production at a 
competitive price (to date, 84% of the capacity in operation or construction 
    is non-subsidized). Long-term power purchase agreements (with a residual 
term of contracts of 17.1 years as of end 2018), indexed to inflation, offer 
a strong visibility on the Groups' future revenues: the 1 GW secured by 2020 
       represents a total of EUR4 billion in future revenues until 2043. The 
      Group's power plants are furthermore mostly financed by long-term debt 
         denominated in the same currency as the currency of the power sales 
 agreement; this project financing debt has a residual maturity of 15 years. 
 
   Thanks to its operational know-how such as a rigorous selection of sites, 
synergies between energy sales & services, economies of scale enabled by the 
      development of clusters or the capacity to operate on attractive niche 
     markets, Voltalia has exceeded its internal rates of returns[1] targets 
 (above 10% in mature countries and above 15% in emerging countries). On the 
   existing portfolio, theses return rates reach 14% in mature countries and 
            17% in emerging countries[2]. 
 
            Confirmed 2020 objectives 
 
As stated in its Q1 2019 revenues communication[3], 2020 main objectives are 
            confirmed: 
 
  · 1 GW+ installed capacity (including 921 MW in operation or construction 
  to date); and 
 
  · a 2020 EBITDA between EUR160 and EUR180 million, at the upper-end of the 
  announced range. 
 
   Following this first success, Voltalia is ready, in a fast-growing market 
      environment, to set new ambitions for 2023, materializing the expected 
            acceleration of its development. 
 
Well-identified post 2020 growth opportunities: a solid pipeline of projects 
            as a reservoir for growth 
 
Voltalia is well-positioned to adress growing electricity needs in its three 
   regions of focus (Europe, Latin America, Africa). It already has a strong 
   pipeline of projects in development of 6.2 MW as of end 2018 (among which 
  0.6 GW have already been secured beyond 2020). These projects satisfy four 
      criteria related to land access, feasibility of grid connection, first 
            authorizations and permits and profitability. 
 
       Another major opportunity: developing the direct offer to corporates, 
reinforced by the projected acquisition of Helexia[4], a reference player in 
    large photovoltaic (PV) rooftops and energy efficiency. This acquisition 
     aims to offer affordable renewable electricity to corporates (Corporate 
 PPAs[5]). The offer will also include PV rooftops used for self-consumption 
   or injection into the grid and energy efficiency services to adapt to the 
            new energetic situation. 
 
            A new 2023 roadmap 
 
            By 2023, the Groups targets: 
 
  · A total capacity in operation or construction above 2.6 GW, multiplied 
  by 2.9 compared with 2018. Reaching this capacity should come with a 
  larger geographic and energetic diversification of its portfolio of 
  plants. A progressive ramp-up is expected in solar to reach above 30% of 
  the capacity in operation or construction in 2023 (from 11% in 2018). 
  Geographically, Brazil's contribution should decrease to less than 50% for 
  the benefit of mature and emerging countries that should each represent 
  around 25% of the future capacity. 
 
  · 2023 EBITDA between EUR275-EUR300 million, a x3.6 to x4 progression 
  compared with EUR76 million in 2018. 
 
            Financing growth 
 
         Voltalia will assess the best financing options to support its 2023 
    ambitions. In addition to the innovative EUR100 million innovative green 
  syndicated loan implemented on May 2019[6], Voltalia will monitor the debt 
and equity markets with, for the latter option, the possibility of a capital 
 increase involving all existing shareholders. Such a transaction would also 
    aim at increasing stock liquidity while benefiting from a new investment 
            from the reference shareholder. 
 
            Documents availability 
 
  The 2023 strategic plan will be commented during a presentation to be held 
   today at 8:30 am, Paris time. Presentation materials will be available on 
            the Company's website, in the investors' section: 
            https://www.voltalia.com/en/investors [1] 
 
            Next on the agenda: Q2 2019 results on July 17, 2019 
 
            About Voltalia (www.voltalia.com [2]) 
 
  · Voltalia is an international player in the renewable energy sector. The 
  Company produces and sells electricity generated from wind, solar, hydro, 
  biomass and storage facilities, with a total capacity of 921 MW either in 
  operation or construction. 
 
  · Voltalia is also a service provider, assisting its investor clients 
  active in renewables at each project stages, from conception to operation 
  and maintenance. 
 
  · With 550 employees in 18 countries over 4 continents, Voltalia is able 
  to act worldwide on behalf of its clients. 
 
  · Voltalia has been listed on the Euronext regulated market in Paris since 
  July 2014 (FR0011995588 - VLTSA) and is a component stock of the Enternext 
  Tech 40 index and the CAC Mid&Small index. The Group is also included in 
  the Gaïa-Index, an index for socially responsible midcaps. 
 
Voltalia                                                 Actifin 
 
Chief Administrative Officer:   Press Relations: Jennifer Jullia 
Marie de Lauzon 
 
                                              [e-mail] 
Investor Relations: 
[e-mail] 
 
                                            [phone] 
 
[phone] 
 
            Disclaimer 
 
This press release and the information contained herein do not constitute an 
       offer to sell or purchase, or the solicitation of an offer to sell or 
 purchase, securities of Voltalia in France, Europe and the United States or 
    in any other jurisdiction. Voltalia shares may not be sold in the United 
 States absent registration or an exemption from registration under the U.S. 
    Securities Act of 1933, as amended (the "U.S. Securities Act"). Voltalia 
does not intend to register in the United States any portion of the offering 
         or to conduct a public offering of the shares in the United States. 
 
     No communication or information relating to a transaction involving the 
 securities of Voltalia may be distributed to the public in any jurisdiction 

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June 06, 2019 01:30 ET (05:30 GMT)