Ukraine Wind Energy Investment Opportunity

Transcription

1 Ukraine Wind Energy Investment Opportunity 2019

2 Opportunity summary Opportunity to invest in wind energy in Ukraine. Transformation of Ukraine s energy sector on-going. Wind energy is a priority area. Generous government subsidies the highest in Europe - are incentivising its growth. Ukraine has ideal conditions and an abundance of available land for wind parks. Wind Solar Energy LLC (WSE) has advanced plans for 4 wind parks, and an ambitious project pipeline thereafter. Currently very high levels of profitability in the sector - IRR rates are in excess of 25%, and projects then generate profit with low opex for 20+ years. Investment possible through various equity/debt combinations. 2

3 Ukraine - macro environment Overview Ukraine is the largest country in Europe by area, and with 45 million inhabitants the eighth largest country by population. It possesses rich farmlands, a well-developed industrial base, a well-educated labour-force, and substantial mineral resources. In recent years, considerable Western support, in particular from the IMF, EBRD, US government agencies and EU institutions, has helped Ukraine to make significant reform progress, and to address the longterm challenges of underdeveloped infrastructure and institutions. After a fall in GDP in , the economy grew by 2% per annum in 2016 and 2017, and is projected by the World Bank to grow by 3.5% in Key macroeconomic indicators F GDP growth (%) Nominal GDP (US$bn) Inward FDI (US$bn) Inflation (CPI % av) UAH/USD ex rate Reform progress Tax reform Anticorruption drive and improved transparency Currency stability and reduction in inflation Global Doing Business rank has improved from 152 in 2012 to 71 in 2018

4 Ukraine wind energy market Green Tariff driving growth FIT for wind energy in Ukraine (EUR/kWh) The main form of state incentive and support for renewable energy in Ukraine is the Green Tariff, a feed-in tariff (FIT) introduced in 2009 as a special preferential price for electricity produced from alternative energy sources, and paid until Ukraine has one of the highest FITs for electricity produced from renewable energy sources in the world. As a result, renewable energy has grown rapidly from just 48GWh in 2010 to 2TWh in The FIT is established at the date the energy plant is commissioned, and runs until 1 st January FIT is fixed in EUR, and is recalculated quarterly based on the official EUR/UAH exchange rate set by the national bank, resulting in minimal currency risks. Wholesale electricity market operator Energorynok is required to purchase renewable power before other forms of energy (nuclear, coal ) There is a supportive regulatory regime in place for renewable energy producers in terms of land access and environmental legislation. Date of commissioning Turbine power 600 kw - 2MW Turbine power > 2MW Wind energy installed capacity in Ukraine (MW)

5 Ovruch Wind Park Location Ovruch district, Zhytomyr region, Ukraine Capacity 25.2 MW Turbine manufacturer Vestas Turbine type V MW Turbine hub height 123 metres Number of turbines 6 Feed-in tariff 102/MWh Wind measurement contractor WindGuard (Germany) Wind measurement start date February 2018 Projected annual production 68.5 GWh Capex 26.9m Annual sales 6.98m Project IRR 26.4 %

6 Lesnaya 1 Wind Park Location Korosten district, Zhytomyr region, Ukraine Capacity 111 MW Turbine manufacturer Envision Turbine type EN MW Turbine hub height 140 metres Number of turbines 37 Feed-in tariff 102/MWh Wind measurement contractor WindGuard (Germany) Wind measurement start date February 2018 Projected annual production GWh Capex 122m Annual sales 36m Project IRR %

7 Lesnaya 2 Wind Park Location Korosten district, Zhytomyr region, Ukraine Capacity 57 MW Turbine manufacturer Envision Turbine type EN MW Turbine hub height 140 metres Number of turbines 19 Feed-in tariff 102/MWh Wind measurement contractor WindGuard (Germany) Wind measurement start date February 2018 Projected annual production GWh Capex 63m Annual sales 18.5m Project IRR %

8 Lesnaya 3 Wind Park Location Korosten district, Zhytomyr region, Ukraine Capacity 21 MW Turbine manufacturer Envision Turbine type EN MW Turbine hub height 140 metres Number of turbines 7 Feed-in tariff 102/MWh Wind measurement contractor WindGuard (Germany) Wind measurement start date February 2018 Projected annual production GWh Capex 23m Annual sales 6.8m Project IRR 24.4 %

9 Project pipeline and company structure Wind Solar Energy LLC Ukraine 100% 100% 100% Wind Solar Energy 6 LLC Wind Solar Energy 7 LLC Wind Solar Energy 8 LLC Ovruch wind park 25 MW Zhytomyr region, in the planning stage Lesnaya 1 wind park 111 MW Zhytomyr region, in the planning stage Lesnaya 2 wind park 57 MW Zhytomyr region, in the planning stage 100% 100% 100% Wind Solar Energy 9 LLC Wind Solar Energy 10 LLC Wind Solar Energy 11 LLC Chernihov wind park 75 MW Zhytomyr region, in the planning stage Lesnaya 3 wind park 21 MW Zhytomyr region, in the planning stage Berdichev 1 wind park 31 MW Zhytomyr region, in the planning stage

10 Management team Nat Moser Managing Director Dr Moser has over 20 years experience working in investment in energy. This includes as an Analyst for Dart Management, the largest foreign equity investor into Russia in the 1990s, as a Senior Analyst for Pharos Financial Group, one of the most established investment management firms working in the FSU region in the 2000s, and as a Director of Poltava Energy, a company developing an oil and gas field in Ukraine. He holds a BA and PhD from Manchester University, an MPhil from Oxford University, and completed a post-doc at University College London. Vladimir Yatsyuk Director Mr Yatsyuk has over 20 years experience working in business organisations in Ukraine including as a deputy head and head of several commercial departments. He has fulfilled the role of deputy director or director of several firms in grain trading and fuel retail businesses. He holds a degree in economics from Kiev State Economics University and has additional qualifications in budget planning and management of organisations. Serhii Zanoza Head of Financial Analysis and Planning Department Mr Zanoza has over 15 years experience in financial analysis and modelling, including developing business plans, comparing the effectiveness of different strategies, analysis of cash flow and budgeting. For 12 years of this he has worked within the Factor Group of companies in Ukraine where he has fulfilled a variety of different analytical roles. He holds a Master s in management from Kiev National Economic University. 10

11 Partners: current and potential 11

12 Contact Dr Nat Moser Managing Director Vladimir Yatsyuk Director yatsiuk@windsolarenergy.info Serhii Zanoza Head of Financial Analysis and Planning Department szanoza@windsolarenergy.info Wind Solar Energy LLC Redutna St. 21, Kiev Ukraine info@windsolarenergy.info 12

13 Disclaimer This document is issued by Wind Solar Energy LLCand may not be distributed In the United States orcanada andin order to be eligible to view this report you must be (i) a non Canadian citizen and a non-us person for the purposes of Regulation S under the US Securities Act of 1933, as amended ( the Securities Act ) and ii) a person into whose possession this report may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located. Distribution or reproduction of this report in whole or in part is unauthorised. This document does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, the Shares or a prospectus for the purposes of EU Directive 2003/71/EC, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. This document does not form a fiduciary relationship orconstitute advice and is not and should not be construed as an offer or a solicitation ofan offer or an invitation, or inducement to engage in investment activity, andcannot be relied upon as a representation that any particular transaction could have been or can beeffected at any stated price. All information contained herein is subject to change without notice and neither the Company or its associates or affiliates is underany obligation to update or keep current the information contained herein or in any other medium. Neither the Company nor its directors or employees warrant the accuracy, adequacy or completeness of the information contained herein and Wind Solar Energy LLC expressly disclaims liability for errors oromissions in such information. No warranty of any kind implied, express or statutory is given by the Company or any of its directors or employees in connection with the information contained herein. Under no circumstances may this document or any part thereof, be copied, reproduced or redistributed without the express permission of a director of Wind Solar Energy LLC. Any projections, forecast, estimate or other forward looking statement in this document only illustrates hypothetical performance under specified assumptions of events or conditions, which may include, but are not limited to, prepayment expectations and interest rates. Such projections, forecasts estimates or other forward looking statements are not a reliable indicator of future performance. Intended Audience this document is intended for professional and/or sophisticated investors, financial institutions and professional clients and is not intended for distribution to, or use by, private customers. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Neither Wind Solar Energy LLC nor its directors, representatives or employees accept any liability for any direct of consequential loss or damage arising out of the use of all or any part of the information herein. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. Investments in illiquid securities involve a high degree of risk and are suitable only for sophisticated investors who can tolerate such risk and do not require an investment easily and quickly converted into cash. Other risk factors affecting the price, value or income of an investment include but are not necessarily limited to political risks, economic risks, credit risks, and market risks,. Investing in emerging markets such as Russia involves a high degree or risk and investors should perform their own due diligence before investing. 13