Pne Ag · XETR:PNE3
Pne — PNE Wind — Investor Day (November 2017)
30 slides from Pne's investor day presentation, Nov 15, 2017
Slide 1: PNE WIND Capital Market Day
PNE WIND Capital Market Day Frankfurt, November 15, 2017
Slide 2: Who we are: a leading developer of wind energy projects
WHO WE ARE WE ARE A LEADING DEVELOPER OF WIND ENERGY PROJECTS… • PNE WIND Group, consisting of the • Germany’s most successful project companies PNE WIND AG and WKN AG, developer with 8 Offshore projects is a leading wind farm developer located sold totalling 2,852 MW in Northern Germany >2,600 MW r
Slide 3: Dedicated and experienced management team
WHO WE ARE WE HAVE A DEDICATED & EXPERIENCED MANAGEMENT TEAM • Seasoned wind energy pioneers with strong industry knowledge and large network Markus Lesser Jörg Klowat Kurt Stürken Chairman of the Chief Financial Chief Operating Board (CEO) Officer (CFO) Officer (COO) • CEO since May 2016 • CFO sinc
Slide 4: What we do: a successful business model
WHAT WE DO WE HAVE A SUCCESSFUL BUSINESS MODEL Sale Development Financing Construction Service IPP • Acquisition of • Financial • Grid connection • IPP • Technical and the site analysis • Infrastructure • Utility commercial • Wind analysis • Legal concept • Assembly • Infrastructure management • Sel
Slide 5: What we achieved: strong earnings 2011-16
WHAT WE ACHIEVED WE GENERATED STRONG EARNINGS FROM 2011 – 2016… Operating result (EBIT) 120 100 Ø EBIT of € 29.2m - In average, an EBIT of € 29.2m was 80 achieved per year In € Mio. 60 Ø EPS of € 0.31 - Over the last six years, PNE WIND’s 40 average EPS was € 0.31 20 Ø Dividend of € 0.08/share - An
Slide 6: Where we are heading: increase and stabilise returns
WHERE WE ARE HEADING WE WANT TO INCREASE AND STABILISE RETURNS… • By 2023, we target • an EBIT increase of 30-50% compared to the average EBIT of the period 2011-2016 • accompanied by a significant reduction of volatility Annual EBIT Average EBIT 2011-2016 EBIT volatility* * no guidance for individu
Slide 7: Market changes create challenges as well as huge opportunities
Market changes create challenges… …as well as huge opportunities! PNE WIND II Capital Market Day 2017 II November 15, 2017 7
Slide 8: Markets are becoming more integrated
MARKET & GROWTH DRIVERS MARKETS ARE BECOMING MORE INTEGRATED… Electricity flow Hydrogen Battery Battery storage storage Artificial natural gas (generated through green eletricity) Heat supply E-Mobility Natural gas drive CO2 Solar PV Wind Power grid Power grid Electrolysis Power grid Electrolysis Me
Slide 9: Auction systems become the norm
MARKET & GROWTH DRIVERS AUCTION SYSTEMS BECOME THE NORM… Global overview of renewable energy auctions Countries with auctions or renewable energy tenders in use or planned Onshore wind bids Solar PV bids Germany (2017) 42 €/Mwh Germany (2017) 60 €/Mwh UK (2015) $69.35/Mwh Canada (2017) $85.94/Mwh Sp
Slide 10: Auctions significantly impacting project pricing
MARKET & GROWTH DRIVERS … AND ARE SIGNIFICANTLY IMPACTING PROJECT PRICING • Increasing market competition, also between various technologies in the renewable energy sector • Fast decreasing tariffs in auctions – Solar PV is catching up • Current price trends in tender markets partly anticipate futur
Slide 11: Growth drivers are fully intact
MARKET & GROWTH DRIVERS …BUT GROWTH DRIVERS ARE FULLY INTACT Rising Investment electricity prices pressure Power plants at the Decreasing technology costs end of their life cycle in renewable energy sector Uncertainties on the basis Phasing out of nuclear energy of volatile oil prices (France, Germa
Slide 12: Electricity prices will increase
MARKET & GROWTH DRIVERS ELECTRICITY PRICES WILL INCREASE • Electricity prices will increase as nuclear power plants will go offline in Germany and France • Prices of CO2 certificates will increase • This will open up new business opportunities (e.g. project sold in Sweden relies solely on forecasted
Slide 13: Growth mainly driven by emerging markets
MARKET & GROWTH DRIVERS WHILE ESTABLISHED MARKETS ARE STAGNATING, GROWTH WILL BE MAINLY DRIVEN BY EMERGING MARKETS • By 2020 more than 40 countries could each install >1GW of wind energy • Diverse development stages in the different markets offer different risk / reward profiles • Emerging Markets w
Slide 14: Growth trend of renewable energies remains unbroken
MARKET & GROWTH DRIVERS GROWTH TREND OF RENEWABLE ENERGIES REMAINS UNBROKEN AND WILL CONTINUE IN THE FUTURE • Wind and Solar PV will grow significantly and offer huge market potential in the short, mid and long term • Will increasingly replace electricity generation from conventional energy sources
Slide 15: We are developing into a Clean Energy Solution Provider
OUR ANSWER TO THE MARKET CHANGES: We are developing into a Clean Energy Solution Provider PNE WIND II Capital Market Day 2017 II November 15, 2017 15
Slide 16: Strategy: we will scale up our business
STRATEGY WE WILL SCALE UP OUR BUSINESS SCALE UP SOLUTIONS Provide clean energy solutions CORE Grow our core business ADAPT Optimize our structures PROJECT CLEAN ENERGY LEVERAGE Leverage our expertise DEVELOPER SOLUTION PROVIDER EXPAND Expand along the value chain We develop and implement We develop
Slide 17: Scale Up: capitalize on core competencies
STRATEGY “SCALE UP” WE CAPITALIZE ON OUR CORE COMPETENCIES… Project development • Will remain core business • Significant volume increase above 400 MW p.a. across various technologies in the mid term • International markets will drive growth • Combination of new technologies and markets creates huge
Slide 18: Scale Up: we will drive down costs
STRATEGY “SCALE UP” WE WILL DRIVE DOWN COSTS… Reduction of Project costs Reduction of Overhead costs • 1. Economies of Scale • Reduction of personnel costs • Increase development output to • Reduction of other expenses 400 MW p.a. across all technologies • Procurement synergies • Increase Strategic
Slide 19: Scale Up: invest to increase competitiveness
STRATEGY “SCALE UP” …AND INVEST TO INCREASE OUR COMPETITIVENESS Smart Capital Allocation Investment • Optimisation of financing structure Investment of € 10m p.a. on average for: • € 25m <4% for wind farm equity • Acquisitions of companies at attractive • € 25-50m additional growth financing multipl
Slide 20: Leveraging expertise into new technologies
STRATEGY “SCALE UP” WE ARE LEVERAGING OUR EXPERTISE INTO NEW TECHNOLOGIES Currently: New: • Wind • Photovoltaic - requires project • Onshore development competencies similar to • Offshore wind energy, but has shorter development times • Power-to-Gas - hydrogen as alternative for the electricity mark
Slide 21: Increasing our footprint into new markets
STRATEGY “SCALE UP” WE ARE INCREASING OUR FOOTPRINT INTO NEW MARKETS Currently: New: PNE portfolio • Increase penetration in existing markets markets: e.g. France O&M and PV, Wind Offshore • Germany international: e.g. USA • France • Additional new Emerging Markets: • Sweden • Panama, Iran, etc. • U
Slide 22: Refining power generation: new operations
STRATEGY “SCALE UP” WE WILL REFINE POWER GENERATION – NEW OPERATIONS Currently: New: Electricity Smart Energy Supply Management to Production: optimise returns • During the • Organisation of electricity sale for own portfolio build up portfolio as well as for third parties and/or after sale • Optimi
Slide 23: Attractive margins with new services
STRATEGY “SCALE UP” WE GENERATE ATTRACTIVE MARGINS WITH NEW SERVICES Currently: New: • Operational Expansion of the service portfolio: management • Engineering of „Hybrid Power Plants“ - • Repowering clean energy projects involving different • O&M technologies (wind energy, PV and / or • Offshore st
Slide 24: Scale Up milestones
STRATEGY “SCALE UP” SCALE UP MILESTONES 2023 • Finalisation of SCALE UP … • Add further new products/services 2020 • Product range • Sale of 200MW of different Hybrid portfolio share Power Plants is in 2019 place • Completion and • Development of sale of 1st • Start the build-up project pipeline in
Slide 25: We have the will and the skill to implement the strategy
We have the will and the skill to implement the strategy! PNE WIND II Capital Market Day 2017 II November 15, 2017 25
Slide 26: Track record: major deals in recent years
TRACK RECORD MAJOR DEALS IN RECENT YEARS 2012 2012-15 2014 2015 2016-17 2017 OFFSHORE ONSHORE ONSHORE ONSHORE ONSHORE OFFSHORE Various Turkey UK Wind farm Pipeline deal ATLANTIS I Project sales Pipeline deal Pipeline deal portfolio DONG INVESTORS STEAG BROOKFIELD Allianz Vattenfall [Jan 17] Gode Win
Slide 27: Track record: consistently delivered on targets
TRACK RECORD WE CONSISTENTLY DELIVERED ON OUR TARGETS… Operating result (EBIT) GUIDANCE GOAL ACHIEVED 2011 – 2013 € 60 – 72m € 64m 2014 – 2016 € 110 – 130m € 110m 2017 € 17 – 23m (old: 0 – 15m) € 23.7m after 9M … AND WE HAVE JUST INCREASED OUR 2017 GUIDANCE! PNE WIND II Capital Market Day 2017 II No
Slide 28: Summary: key takeaways
SUMMARY KEY TAKEAWAYS • Strong global demand for renewable energy accelerates growth • Markets are changing – the new strategy is tailored to address the significantly changing market conditions, generates new margin potential and reduces the volatility of earnings • We want to be a Clean Energy Sol
Slide 29: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitute a public offer or invitation to subscribe for or purchase any securities of PNE WIND AG and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Thi
Slide 30: PNE WIND Group contact
PNE WIND GROUP CONTACT Rainer Heinsohn Head of Communication Tel: +49 (0) 47 21 – 7 18 - 453 Fax: +49 (0) 47 21 – 7 18 - 373 E-mail: [email protected] Christopher Rodler Head of Investor Relations Tel: +49 (0) 47 21 – 7 18 - 454 Fax: +49 (0) 47 21 – 7 18 - 373 E-mail: christopher.rodler@pn