DJ 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
jjullia@actifin.fr
Investor Relations:
invest@voltalia.com
+33 (0)1 56 88 11 11
+33 (0)1 81 70 37 00
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
(MORE TO FOLLOW) Dow Jones Newswires
June 06, 2019 01:30 ET (05:30 GMT)
in which registration or approval is required. Prior to the potential
decision to launch such transaction involving the securities of Voltalia, no
action has been or will be undertaken in any jurisdiction where such steps
would be required. Voltalia assumes no responsibility for any violation of
applicable laws or regulations by any person. The distribution of this press
release in certain jurisdictions may be restricted by law.
This press release contains forward-looking statements about Voltalia and
its subsidiaries. These statements include financial projections and
estimates and their underlying assumptions, statements regarding plans,
objectives and expectations with respect to future operations, products and
services, and statements regarding future performance. Although the Group
believes that the expectations reflected in such forward-looking statements
are reasonable, investors and holders of the Group's securities are
cautioned that forward-looking information and statements, in particular
those with respect to the Group's objectives or targets, are subject to
various risks, whether known or unknown, uncertainties and other factors,
which may be beyond the control of the Group and which may result in
significant differences between actual results and those expressed or
implied by such forward-looking statements. These risks and uncertainties
include those discussed or identified in public filings with the Autorité
des marchés financiers ("AMF") made or to be made by the Group, in
particular those described in section 2.2 of Voltalia document de référence
2018 filed with the AMF on March 29, 2019 under number D.19-0222. The Group
undertakes no obligation to publicly update its forward-looking statements,
whether as a result of new information, future events, or otherwise. Any
information relating to past performance contained herein is not a guarantee
of future performance.
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[1] Equity invested on projects Internal Rates of Return
[2] In both cases, weighted average on projects won and entered in
construction since 2011
[3] Press release dated April 24, 2019
[4] Press release dated May 23, 2018
[5] Long term power purchase agreement between an energy producer and a
corporation
[6] Press release dated May 21, 2019
Regulatory filing PDF file
Document title: PDF-VENG
Document: http://n.eqs.com/c/fncls.ssp?u=CXMKFCUGYQ [3]
Language: English
Company: Voltalia SA
84 boulevard de Sébastopol
75003 Paris
France
E-mail: invest@voltalia.com
Internet: www.voltalia.com
ISIN: FR0011995588
Euronext Ticker: VLTSA
AMF Category: Inside information / Other releases
EQS News ID: 820263
End of Announcement EQS News Service
820263 06-Jun-2019 CET/CEST
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(END) Dow Jones Newswires
June 06, 2019 01:30 ET (05:30 GMT)
