FIRST-HALF 2016 RESULTS. 26 July 2016 Paris

Transcription

1 26 July 2016 Paris

2 SOMMAIRE INTRODUCTION STRATEGIC POSITIONING - REMINDER OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 3.1 FRANCE 3.2 BRAZIL 3.3 MAURITIUS FIRST-HALF 2016 FINANCIAL RESULTS OUTLOOK APPENDICES

3 1. INTRODUCTION 3 3

4 ALBIOMA'S HIGHLIGHTS - FIRST-HALF 2016 Return to normal performance by French Thermal Biomass business New rider signed for Bois-Rouge plant contract Good half-year performance in Brazil Significant progress in the development of: France - Thermal Biomass Combustion turbine on Reunion Island: financing agreement signed (on 18 July 2016) and construction work begun Solar power Albioma awarded 5.9 MWp of projects for plants with integrated storage Brazil Third project signed on 20 May 2016: Vale do Paraná 1. INTRODUCTION 4

5 2. STRATEGIC POSITIONING - REMINDER 5 5

6 ALBIOMA - AN INDEPENDENT RENEWABLE ENERGY PRODUCER AND ENERGY EFFICIENCY PARTNER FOR THE SUGAR AND ETHANOL INDUSTRY In-depth knowledge of the sugar refinery process and related energy issues Highly-efficient energy recovery from sugar and ethanol by-products Over 24 years of experience in bagasse combustion Reliable production of steam and electricity to cover the sugar producer s energy needs (availability rate ~100%) Bagasse depot at Albioma Le Moule - Guadeloupe Surplus power exported to the electricity grid (120 kwh per tonne of sugar cane) 2. STRATEGIC POSITIONING - REMINDER 6

7 BAGASSE - ONE OF THE WORLD'S MAIN BIOMASS SOURCES 450 million tonnes of bagasse available Less than 10% is currently recovered, and only 3% in highly energy-efficient processes Renewable and storable fuel that can be used based on the needs of the electricity grid Sugarcane field in Rio Pardo Termoelétrica - Brazil 2. STRATEGIC POSITIONING - REMINDER 7

8 ALBIOMA - A PROVEN MODEL FOR ENERGY RECOVERY FROM BAGASSE SUGAR OR BIOETHANOL 115 kg Highly energy-efficient cogeneration operator supplying steam to the sugar refinery and electricity to the grid STEAM 450 kg ELECTRICITY 30 kwh ELECTRICITY 120 kwh SUGARCANE 1 tonne Additional fuel used outside of the sugar harvest: Historic alternative: coal Gradually being replaced SUGAR REFINERY Customer/partner COGENERATION PLANT ELECTRICITY NETWORK Customer by biomass BAGASSE 300 kg 2. STRATEGIC POSITIONING - REMINDER 8

9 A PIVOTAL YEAR FOR ALBIOMA: 50% RENEWABLE ENERGY 2023 TARGET % % 50% 36% 50% Renewable Renouvelable Fossile fuel 64% Renewable Renouvelable Fossilefuel Renouvelable Renewable Fossile fuel Rapid change in the energy mix thanks to: The conversion to biomass of the existing bagasse-coal power plants The construction of all-biomass plants (bagasse-biomass) in the French overseas territories Acquisition of all-bagasse plants in Brazil 2. STRATEGIC POSITIONING - REMINDER 9

10 ALBIOMA - A DIVERSIFIED GEOGRAPHIC FOOTPRINT 753 MW of installed capacity West Indies and French Guyana (174 MW) Guadeloupe, Martinique, French Guyana Metropolitan France & Rest of Europe (16 MW) Strong market share 51% of power generated on Reunion Island 42% of power generated in Mauritius 32% of power generated in Guadeloupe Brazil (108 MW) Indian Ocean (455 MW) Reunion Island, Mauritius, Mayotte Installed capacity by activity (MW) Thermal Biomass Solar power Anaerobic digestion STRATEGIC POSITIONING - REMINDER 10

11 ALBIOMA'S INTERNATIONALISATION CRITERIA GEOGRAPHIC BREAKDOWN OF GLOBAL SUGARCANE PRODUCTION OUR INTERNATIONALISATION CRITERIA Other 24% Brazil 40% Mexico 3% Pakistan 3% Thailand 5% China 7% India 18% Source 1. FAOSTAT, 2013 Brazil - Albioma's international priority Opportunistic development of solar power projects alongside thermal biomass projects 2. STRATEGIC POSITIONING - REMINDER 11

12 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 12 12

13 3.1 France 13 13

14 THERMAL BIOMASS FRANCE: VERY GOOD AVAILABILITY IN THE FIRST HALF OF 2016 THERMAL PLANT AVAILABILITY POWER GENERATION 91,1% In GWh 82,9% H H H H Availability up: All thermal power plants achieved a solid operational performance Few technical shutdowns at the plants other than scheduled shutdowns whereas the first half of 2015 was affected by a strike and two technical incidents Good call-out rate maintained in the first half of 2016 at the Galion peaking plant: 31.5% compared with 31.8% in the first half of OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 14

15 SIGNING OF RIDER TO ELECTRICITY PURCHASE CONTRACT BETWEEN EDF AND ALBIOMA BOIS-ROUGE POWER PLANT Compensation for the extra costs resulting from managing combustion by-products and processing liquid and gaseous waste Processing combustion by-products and reducing liquid waste Compensation for the extra costs resulting from managing the combustion by-products of the three tranches of the Bois-Rouge power plant, borne by it since 2013 following the change in the regulations (ministerial order of 28 May 2013) Adjustment of the remuneration to take into account all of the costs associated with bringing into compliance with the regulations the systems for processing liquid waste for tranches 1 and 2 of the Bois-Rouge power plant Treating atmospheric emissions EU Industrial Emissions Directive (IED) to come into force by 1 January 2020 at the latest Total investment of 200 million over five years for nine production units After the agreement obtained for the Albioma Le Gol power plant's three units, a rider was signed for tranche 3 of the Bois-Rouge power plant Total investment of 34 million Pre-tax ROCE of 11% THERMAL 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 15

16 SOLAR BUSINESS ACHIEVES STABLE PERFORMANCE SOLAR POWER NUMBER OF EQUIVALENT FULL POWER HOURS POWER GENERATION In GWh H H H H Plants achieved good performance despite less favourable sunshine conditions in the West Indies, French Guyana and Europe Production slightly higher than in 2015 due to the power plants acquired (3 MWp) on Reunion Island in April OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 16

17 ANAEROBIC DIGESTION (3MW) ANAEROBIC DIGESTION AVAILABILITY POWER GENERATION In GWh 71,7% 72,2% H H H H Stable performance from the three power plants in operation The business is not profitable. It is currently the subject of a strategic review with a decision expected in the second half of OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 17

18 Good growth prospects in the French overseas territories 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 18

19 GALION 2 PROJECT: FIRST ALL-BIOMASS PLANT IN THE FRENCH OVERSEAS DEPARTMENTS Construction started in 2015 assembly of combustion facilities in progress 40 MW installed Technology: Ansaldo combustion equipment, Doosan-Skoda turbine, Jeumont generator; baseload operation Fuel: bagasse, local and imported biomass (pellets) 30-year contract Total investment of 185 million Bank financing of 120 million over 20 years signed in April % of capital held by Albioma Scheduled commissioning date: summer OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 19

20 COMBUSTION TURBINE IN SAINT PIERRE ON REUNION ISLAND Financing agreement signed on 18 July 2016 and construction work begun 41 MW installed Technology: General Electric LM 6000 Sprint gas turbine; peaking operation Fuel: bioethanol (1/3 produced locally) and light fuel oil 25-year contract Total investment of 60 million, including 45 million financed by project debt 22-year term Albioma Saint-Pierre and the surrounding area Banks: CEPAC, AFD and Natixis 51% of capital held by Albioma Scheduled commissioning date: end OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 20

21 NEW SOLAR POWER PLANTS WITH INTEGRATED STORAGE Albioma was a winner in the call for tenders launched by the French Energy Regulatory Commission on 18 May 2015 for three photovoltaic plants with integrated storage Le Port Reunion Island Three projects representing installed capacity of 5.9 MWp Technology: Two rooftop plants on Reunion Island (2.6 MWp) and one ground-based plant in Guadeloupe (3.3 MWp) Stade de l est Saint-Denis de La Réunion Total investment of around 13 million Scheduled commissioning date: 2018/2019 Sainte-Rose Guadeloupe 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 21

22 3.2 Brazil 22 22

23 RIO PARDO AND ALBIOMA CODORA PLANTS ACHIEVE GOOD PERFORMANCE RIO PARDO - EXPORTED POWER CODORA - EXPORTED POWER In GWh 127 In GWh S S H H Rio Pardo Acquisition finalised on 1 April 2014 Excellent technical performances in the first half of 2016 Shutdown between harvests reduced to 40 days - a level never before achieved in Brazil Good availability of cogeneration for the sugar refinery (96.4%) Codora Energia Acquisition finalised on 4 August 2015 First period between harvests (maintenance) under Albioma's management Improved operating conditions resulting in increased productivity Sales hit by fall in spot price 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 23

24 STRATEGY TO SECURE SALES CONTINUED Reminder: 2 electricity sales methods in Brazil Regulated market: long-term contracts awarded following tender process set out by the regulator Open market: short-term contracts with industrial customers or sale at the spot price Fall of the spot price between 2015 and 2016, from BRL 370/MWh in June 2015 to BRL 30/MWh in February 2016 (the period's low point). It was BRL 61/MWh in June 2016 RIO PARDO 2015: average price of BRL 354/MWh 2016: return to 'normal' after two exceptional years: average price expected at ~ BRL 210/MWh for the year (all power sold under contract), i.e.-40% vs : ~ 60% of energy sold under contract at BRL 213/MWh (baseline 2016) CODORA 2015 (Jan. Dec.): average price BRL 221/MWh 2016: ~ 80% of energy sold under contract; average price of contracts: ~ BRL 203/MWh : ~ 65% of energy sold under contract at BRL 214/MWh (baseline 2016) Objective: 70%-80% of sales under contract (regulated and open market) 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 24

25 SIGNING OF A THIRD PROJECT ON 20 MAY 2016: VALE DO PARANÁ A new investment fulfilling all our selection criteria: Vale do Paraná: Mill with annual sugarcane crushing capacity of 2 million tonnes Location: Suzanápolis, State of São Paulo (around 600 km to the north west of São Paulo) Shareholder structure: VDP is a subsidiary of the Pantaleon Group, Central America's leading producer (13 million tonnes) based in Guatemala and Manuelita, an agro-industrial producer based in Colombia (6 million tonnes) Creation of a company jointly owned by Vale do Paraná (60%) and Albioma (40%): Extension of the existing plant with the installation of a new turbine and connection to the grid Albioma is the technical partner during construction and operation: development of a "model" project 80% of electricity sales secured over 25 years as from 1 January 2021 at the price of BRL 243/MWh (2016 basis) Investment of around BRL 100 million (2016 basis) mostly financed by a BNDES loan Scheduled commissioning date: OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 25

26 3.3 Mauritius 26 26

27 EXCELLENT PERFORMANCE OF PLANTS IN MAURITIUS PLANT AVAILABILITY POWER GENERATION In GWh 89,6% 91,4% H H H H The plants operated by Albioma performed well with a particularly high call-out rate at the Terragen plant since the beginning of the year 3. OPERATIONAL PERFORMANCE: FIRST-HALF 2016 ASSESSMENT AND OUTLOOK 27

28 4. FIRST-HALF 2016 FINANCIAL RESULTS 28 28

29 INCOME STATEMENT BY REGION/BUSINESS ( millions) H H Change 16/15 France Thermal Biomass % France Solar Power (2) % Brazil % Holding & Other % Revenues % France Thermal Biomass (1) % France Solar Power (2) % Maurice (equity accounted) % Brazil 1.4 (0.2) n.a. Of which operating % Of which holding and development (1.3) (2.1) +40% Holding & Other (2.7) (2.2) n.a. EBITDA % Consolidated net income % Consolidated net income (Group Share) % Performances of the French thermal power plants returned to normal and new riders to the Bois Rouge contract were signed Poor sunshine conditions in mainland France, the West Indies and French Guyana The Mauritian entities achieved good performances The sugar harvest in Brazil began extremely well (1) Including non-recurring income related to the retroactive effect of price adjustments in H totalling 4.4 million. (2) Including Spain and Italy 4. FIRST-HALF 2016 FINANCIAL RESULTS 29

30 INCREASED REVENUES Revenues increased by 8% despite a negative raw material price effect due to (i) the good operating performance achieved by the French Thermal Biomass plants, (ii) adjustments to pricing and (iii) the acquisition of Codora in Brazil in August 2015 millions Impact of raw material prices (8.5) Impact of Thermal France volume Bonuses/Penalties 4.9 Increase in fixed premiums 2.5 Pricing adjustments and indexation 9.4 Availability 91.1% vs. 82.9% Other Thermal France 1.5 (1.2) 3.7 (3.1) Pricing adjustments Variable price Impact of BRL/EUR exchange rate Impact of Brazil volume (Rio Pardo) Impact of Brazil price (Rio Pardo) Brasil other Of which, change in consolidation scope: Codora 2.3 million Other Thermal France: million excluding impact of raw material prices Brazil: million Other: million H H H Excluding impact of raw material prices 4. FIRST-HALF 2016 FINANCIAL RESULTS 30

31 EBITDA, AT 65.4 MILLION, SIGNIFICANTLY HIGHER THAN IN 2015 EBITDA increased significantly as compared with the same period last year, due mainly to (i) the good operating performance achieved by the French Thermal Biomass plants, (ii) the retroactive compensation granted by EDF following the signing of the new rider to the Bois-Rouge contract and (iii) the effect of the change in consolidation scope in Brazil millions 50.2 Retroactive effect 4.4 Increase in fixed premiums 2.5 Impact of Impact of Other Brazil volume Impact of Impact of Brazil price Thermal (Rio Pardo) Brazil change in BRL/EUR (Rio Pardo) consolidation scope Bonuses/Penalties France other Other 65.4 exchange rate 9.4 (2.0) (0.2) 3.7 (3.1) (0.8) Acquisition of Codora In August Thermal France: million Brazil: million Other: million H H FIRST-HALF 2016 FINANCIAL RESULTS 31

32 NET INCOME (GROUP SHARE) UP BY MORE THAN 50% Compared to the first-half of 2015, net income (Group share) included amortisation/depreciation and financial expenses related to Codora for the full half year millions Increase in fixed premiums Bonuses/Penalties 5.4 Other Thermal France (1.6) Impact of BRL/EUR exchange rate 0.3 Impact of Brazil volume (Rio Pardo) Impact of Brazil price (Rio Pardo) 3.6 (3.0) Brazil other (0.3) Impact of change in consolidation scope (1.0) Acquisition of Codora In August 2015 Holding company financial expense (0.2) Other (2.4) 14.5 Retroactive effect Thermal France: million Brazil: million Other: million H H FIRST-HALF 2016 FINANCIAL RESULTS 32

33 CASH UP SIGNIFICANTLY AT 97 MILLION Cash - flow H Group cash Cash flow from operations 58 Debt service 32 Loan repayments 19 Interest costs 14 Investments 44 Operations 6 Development New borrowings 68 Cash increase Inflow Outflow janv.-15 Dec janv.-16 June FIRST-HALF 2016 FINANCIAL RESULTS 33

34 A STRONG BALANCE SHEET TO FINANCE GROWTH Gross debt increased mainly due to the debt raised to finance the projects currently under construction (Galion 2 and Albioma Le Gol IED compliance) Group average interest rate of 4.7% (of which France 4.2% and Brazil 14.8%) 83% of debt hedged or at fixed rates Non-recourse project debt except Brazil debt (around 35 million) and projects under construction 45 million of financing not yet drawn down (In million) 30-Jun Dec-15 Change Project debt % Corporate debt % Total gross debt % Cash and cash equivalents (97) (48) 101% Guarantee deposits and equivalents (6) (6) 11% Total net debt % Net debt/ebitda 3.8x 4.2x Net debt/ebitda embedded 3.4x 4.0x Gearing* 126% 123% * Net debt/equity 4. FIRST-HALF 2016 FINANCIAL RESULTS 34

35 2016 OBJECTIVES EBITDA ( millions) Net income (Group share) ( millions) Confirmation of 2016 guidance 4. FIRST-HALF 2016 FINANCIAL RESULTS 35

36 5. OUTLOOK 36 36

37 GRADUAL REORGANISATION OF THE SHAREHOLDER STRUCTURE Gradual reorganisation of the shareholder structure: SHAREHOLDER STRUCTURE AT 19 JULY crossings of the 5% ownership threshold in the first half-year (COFEPP and CDC) Strengthening of employee share ownership: approval of a new bonus performance share plan at the General Meeting of 24 May 2016 (through repurchase of the Company's shares on the market) Free float 65.7% Others 3.0% Directors (excluding Altamir) 0.3% Employees 1.5% Treasury shares 1.2% Altamir and affiliates (concert) 14.3% Financière de l'echiquier 5.1% COFEPP 5.9% Caisse des Dépôts et Consignations 6.1% 5. OUTLOOK 37

38 INVESTMENT PLAN FOR GROWTH Galion 2 Commissioning: 2017 Combustion turbine Reunion Island Commissioning: end CAPEX for modernisation programme Commissioning: Solar power 2015 acquisition and projects to be commissioned in 2018/2019 Anaerobic digestion Commissioning: 2014 and 2015 Rio Pardo, Codora and Vale do Paraná Acquisitions: 2014 and 2015 and commissioning: Other projects in France to be developed Other projects in Brazil to be developed 1 project every 12 to 18 months Target 2013 to 2023: 1 billion confirmed Pre-tax ROCE target per project: 11% + country-risk premium 5. OUTLOOK 38

39 ALBIOMA - A HYBRID GROWTH AND INCOME STOCK Sustain and double the industrial asset base between 2013 and 2023 Objective to double net income (Group share) in 10 years (baseline 2013) Confirmation of the dividend distribution policy: 50% of net income (Group share), excluding nonrecurring items 2015 dividend paid in 2016: shareholders opting for payment of 50% of their dividend in new shares represented nearly 65% of the share capital 5. OUTLOOK 39

40 ALBIOMA = THERMAL BIOMASS + SOLAR POWER QUALITY ASSETS GENERATING HIGH RECURRING CASH FLOWS = STRENGTH CREATING VALUE FROM BIOMASS, A RESOURCE OF THE FUTURE = GROWTH A ROBUST INDUSTRIAL AND FINANCIAL MODEL = PROFITABILITY

41 6. APPENDICES 41 41

42 INCOME STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2016 ( millions) H H Change 16/15 Revenue % EBITDA % Depreciation/amortisation & provision (24.8) (19.6) -27% Operating income % Net financial charges (13.6) (12.5) -9% Tax (11.3) (7.3) -55% Effective tax rate 44.1% 43.2% Consolidated net income % Consolidated net income (Group share) % Weighted average number of shares 29,468,800 29,607,618 Consolidated net earnings per share APPENDICES 42

43 CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2016 ( millions) H H Cash flow from operations Change in working capital requirements 7.5 (0.7) Tax paid (16.9) (6.8) Net cash flow from operating activities Operating capex (5.6) (10.2) Free cash flow from operations Development capex (38.2) (19.8) Other/Acquisitions/Disposals (0.2) (10.4) Cash flow from investing activities (38.4) (30.2) Dividends paid to Albioma SA shareholders - - Borrowings (drawn down) Borrowings (repaid) (18.5) (17.8) Cost of debt (13.8) (13.0) Other (1.3) 0.0 Cash flow (net) from financing activities 33.9 (25.5) Currency effect on cash 0.8 (0.7) Net change in cash and cash equivalents 48.8 (21.6) Opening cash and cash equivalents Closing cash and cash equivalents APPENDICES 43

44 BALANCE SHEET AT 30 JUNE 2016 ASSETS ( millions) 30-Jun Dec-15 Goodwill Intangible assets & Property, plant and equipment Other non-current assets Total non-current assets 1,051 1,013 Current assets Cash and cash equivalents Total ASSETS 1,265 1,198 EQUITY & LIABILITIES ( millions) 30-Jun Dec-15 Equity (Group share) Non-controlling interests Total equity Current and non-current financial liabilities Other non-current liabilities Current liabilities Total EQUITY & LIABILITIES 1,265 1, APPENDICES 44