The New Smart Utility

Transcription

1 The New Smart Utility

2 WHO WE ARE - Enertronica at a glance Leading Italian player in renewable energy and energy conservation, building solar power plants, designing and distributing components for photovoltaic systems, designing and manufacturing high-quality LED lighting, reselling electricity and natural gas to residential and corporate users. While running solar EPC (Engineering, Procurement and Construction) operations already in six geographical areas (Italy, South Africa, Namibia, Eritrea, Romania and Latin America), Enertronica is continuously scouting new opportunities, wherever its engineering capabilities can be best exploited. In the solar EPC business Enertronica plays both on a stand-alone basis and as a contractor for primary international utilities. In addition, Enertronica is an E.S.Co. (Energy Saving Company) providing energy-saving solution to corporate and institutional users (also acting as contractor for public entities). Founded in 2005, Enertronica went public on the AIM segment of Borsa Italiana in Since then, the company has strongly outperformed, with an overall +103% gain over the IPO price. 2

3 WHAT WE DO INTERNATIONAL MARKET PENETRATION PV EPC Italy South Africa Namibia Eritrea Romania South America MAIN BUSINESS UNITS PV EPC EPC Contractor (design and construction of PV turnkey solutions) Maintenance, supervision systems and surveillance of photovoltaic power plants COMPONENTS Design and construction of PV mounting systems (greenhouses, carports and industrial roofs) Design and construction of mono-axial and biaxial photovoltaic trackers ESCO Energy saving ENERGY RESELLER Electricity and natural gas reselling to end-users 3

4 2015: AN YEAR OF EXTRAORDINARY GROWTH Consolidated presence in SOUTH AFRICA Revenue growth of 3x in the last 3 years, also thanks to the award of a 165 MWp EPC project in South Africa, amounting to 120m. Establishment and launch of SMART UTILITY S.p.A. Revenue growth from 0,5 to 16,1 /mln in the last 3 years, thanks to a customers base of more than 50,000 units. Second contract gained in ERITREA Design and construction of 73 photovoltaic systems with energy storage using batteries, for an order value of 7 /mln to be invoiced in full by the end of First contract gained in NAMIBIA Construction of a 45 MW photovoltaic power plants with one of the world's leading Utility for a value of about 27 /mln, to be built in the biennium

5 GROUP STRUCTURE Design, engineering and management of PV EPC projects ENT SpA EPC contractor for major Italian operators in the energy sector (over 60 MWp track record) Selected by Enel Green Power as main contractor for two solar farms in South Africa (165 MWp) 100% 95% 51% 55% 100% 60% 70% ENT SGR Smart Utility ENT SA ENT Mounting System ENT Investment ENT 4 BID Projects Certum Energy Renewable energy production from own PV power plants 2 MWp PV in operation (Italy) Sale of electricity and natural gas to end-users Energy efficiency customers EPC for the South African market Commission Packet for over 165 MWp O&M contracts for 165 MWp Production of anchoring systems for the African market Production capacity of over 200 MW / Year Financial support for group investments in the African market SPV participating to 4 BID in South Africa Pipeline > 120 MWp Non-operating company 5 MWp power plant in Namibia, currently under construction Italy South Africa Namibia 5

6 BUSINESS MODEL (1/2) EPC PV EPC Components supply ESCO (Energy services) Energy reseller Turnkey photovoltaic systems Financial assistance Due diligence Engineering Procurement Construction Electrical installations Civil works Maintenance Mounting systems for pitched and flat roofs, carports and greenhouses Mounting systems for large PV installations both fixed and moving Uniaxial and biaxial tracking systems Management of own PV assets and direct energy sale Providing energy services with related energy reselling activity Electricity and natural gas purchase from large manufacturers and other retailers, that is sold mainly to residential, small/micro businesses and industrial clients 6

7 BUSINESS MODEL (2/2) EPC New products and new markets Components supply South Africa, Romania, China and Japan Startup of Storage Division LED market internationalization Storage Latin America Market Grid Parity Italy Extension of supply and manufacturing partnership Off-grid systems for emerging countries (Storage) Micro wind Italy and Africa Storage Latin America / North Africa Latin America Market ESCO Roof Top Italia/ LED Lighting Mix of technological and financial resources Public lighting systems Small wind power Italy Storage systems Micro production for PA Grid Parity Italy Smart City and sustainable transport Energy reseller Supply expansion Domestic sales force set up Structuring deals with mix of bundled products New markets Financial structuring 7

8 CONSOLIDATED KEY FINANCIALS Impressive growth of Revenues in the last 3ys, in the region of 10x, mainly attributable to the award of a 165 MWp EPC project in South Africa, amounting to 120m +60% the Energy reselling growth, mainly due to the increase in residential and micro-business end-users Net Financial Position benefits from the increase in cash mainly due to advance payment from the South Africa projects B1,2 the rating given by Cerved Rating Agency in February 2016 Revenue Net Invested Capital Energy Retail Componentistica PV EPC EQUITY NET DEBT 10,1 /mln 5,9 /mln 8,4 /mln 17,7 /mln ,3 /mln 10,1 /mln

9 STRATEGIC DRIVERS International EPC expansion Tenders participation as solar EPC contractor of major international utilities or local authorities: Eritrea Namibia South Africa Morocco Domestic EPC Participation to tenders for solar and energy saving projects in the public sector Energy reselling & efficiency (Smart Utility) Energy and natural gas reselling to residential and corporate end-users Sale of PV kits to residential clients 9

10 STOCK PERFORMANCE ON THE AIM ITALIA MARKET Shareholders Last 18-month performance Market; 10,24% Trust Seven Plocco (*); 41,59% NTS Srl; 48,17% 6,5 6 5,5 5 4,5 4 Volume + 81% Price ( * ) Interest held indirectly by Plocco Services Srl 3, , /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/ Source: Bloomberg March 18 th, 2016 ANALYST COVERAGE Date Target Price Price Upside Rating EnVent 06/10/ ,4 18% Outperform 10

11 CONVERTIBLE BONDS PERORMANCE Highlights Last 18-month price and volume trend Issuer: Enertronica S.p.A. Type: convertible bonds Size: 6m bonds convertible in new common stocks without par value Par value: per bond Subscription Price: par value Interest rate: fixed annual coupon rate is 7,5% - postponed semi-annual payment Maturity: 30 months from Issuing Date Conversion Price: 6 Issuing date: 30th April 2014 Listing date: 8th May Volume Price /09/ /11/ /01/ /03/ /05/ /07/ /09/ /11/ /01/2016 Source: Bloomberg March 18 th,

12 PV EPC GLOBAL MARKET HIGHLIGHTS (1/2) Global PV cumulated capacity (GWp) Annual installations by region (GWp) Europe 7 Middle East and Africa 1 Central / South America 1,2 Asia- Pacific 23, Cumulative installed capacity Annual installations Source: Renewable Global Status Report 2015 (REN21); RECAI, February 2016 (EY) North America 6,8 Source: RECAI, February 2016 (EY) 40 GWp 2014 Global PV capacity Top 10 Countries (GWp) Europe 8,3 Middle East and Africa 1,8 Central / South America 1,7 Asia- Pacific North America 8,9 57 GWp Germany China Japan Italy USA France Spain Australia Belgium India Source: Trends 2015 in Photovoltaic Applications (IEA) Source: Trends 2015 in Photovoltaic Applications (IEA) 12

13 INTERNATIONAL EXPANSION: EPC contractor for third parties (1/4) Enertronica is carrying on its international expansion and strengthening its presence in Africa by being awarded tenders in new countries Examples of this business are the two contracts signed in Eritrea (Eritrea 1 and Eritrea 2) Project location: Eritrea (Debub, Maekel, Anseba) Technicals: 1,7 MWp, 10 MWh Time frame: 8 months, 7m Management team: Enertronica SA Expected start: April 2016 Expected final COD*: October 2017 Description: 73 innovative PV systems with energy storage based on acid-lead batteries, which will serve facilities, offices, farms and clinics property of the Minister of Agriculture all over Eritrea. Plants are commissioned directly by the Eritrean Government and financed by the European Commission. The projects are located in 3 regions of Eritrea, namely the Debub, Maekel, and Anseba regions. Authorities involved: the Government of the State of Eritrea (Contracting Authority) and the Minister Of Agriculture (Beneficiary Customer) The photovoltaic park has a peak power of about 1,7 MW, and cumulative storable energy of almost 10 MWh. It will consist of over 100 shelters, 49 of which anchored to Enertronica s roof mounted structure. Contract involves supply, delivery, unloading, installation and commissioning of 16 drip and sprinkler irrigation systems powered by photovoltaic energy. Water source for the drip irrigation systems is mainly surface water from small reservoirs with a storage capacity ranging from to mc. The area of irrigation schemes ranges from 3,7 to 274 ha. * Commercial Operations Date (COD) AIM Investor Day April 13

14 INTERNATIONAL EXPANSION: EPC contractor for third parties (2/4) Enertronica is currently considering new markets, selected upon the potential opportunities they can generate over the near future. In Morocco, they have already pre-qualified for a potential engineering of a 100 MWp plant, while Egypt is another market where interesting opportunities can be seized. Latin America is another area where they expect to evaluate increasingly available opportunities. By targeting these areas, Enertronica intends to leverage its capabilities in engineering and project management of new plants, and the expertise already developed and consolidated in the participation to international tenders. The plan envisages an international expansion through the opening of operational facilities (possibly in Morocco and the south-west of the United States) to cover: - Morocco and North Africa - Central and South America - The US (potential selected opportunities) 14

15 INTERNATIONAL EXPANSION: BOT diversification (3/4) Enertronica is planning to seize business opportunities also as BOT operator. This can be achieved thanks to the local intelligence (in specific African countries) and to the significant experience gained in South Africa. An example of this business is the contract signed in Namibia for the construction of a 5 MWp power plant Project location: Erongo Region, mining area, close to Walvis Bay harbor. Technicals: 5 MWp (AC), 6,2 MW (DC) Time frame: 8 months, Management team: Enertronica SA Expected start: April 2016 Expected final COD*: October 2017 ERONGO REGION TREKKOPJE SOLAR PARK Description: The Trekkopje Solar Park is located in the Region of Erongo, Namibia, 45 km NE from Swakopmund, on the road to Usakos. The PV plant lies within the Trekkopje mining area, covering around ha, and is located in the immediate proximity of the substation feeding directly the Trekkopje mine area. The dedicated power line feeding the three pumping stations and the Erongo Desalination plant departs from the same substation. The project is located on flat terrain. 5 MWp Photovoltaic modules technology: Polycrystalline Mounting system: Tracker Monoaxial Trekkopje Project Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Preparation site: Civil works Mechanical works Electrical works COD: * Commercial Operations Date (COD) 15

16 INTERNATIONAL EXPANSION: BOT diversification (4/4) Enertronica can seize enormous investment opportunities in the development of plants whose size may be quite small for large players, but still capable to provide very positive returns. Trekkopje (Namibia) is just the first step, but many more can be added, based on the Group s financial sustainability. Trekkopje (Namibia) Expected Project IRR: 13% 16

17 DOMESTIC EPC Although more challenging, the photovoltaic market in Italy is still interesting, and continuously offering new opportunities. During 2015, Enertronica S.p.A. was engaged in 14 tenders for public works, winning 2 (one has been successfully completed - Siracusa, the other is on the way to be accomplished ). 10 tenders have already been attempted in 1Q2016, and this activity is expected to offer new business. Enertronica has a strong engineering division (engineers and project management specialists) with significant experience and track record in supporting the company s effort in both the Italian contract and the international EPC venture. The engineering division provided a remarkable contribution to the company s profitability in 2015, and is expected to steer the success of Enertronica in many future challenges. AIM Investor Day April 17

18 DOMESTIC PUBLIC LIGHTENING ENERGY-SAVING TENDERS In addition to the traditional tenders for public works, Italian local authorities are continuously proposing new tenders for energy saving investments. Such tenders are awarded on the basis of long-term repayment schedules, funded with enduring energy savings. Enertronica is currently evaluating such tenders, to identify the best ways to participate. Only a handful of firms have the technology and expertise to provide local authorities with the required solutions, able to generate tangible savings to taxpayers. Enertronica has already been awarded public works, and can validly participate to these tenders, whose number and aggregate size is increasing very rapidly. This type of work requires an initial investment for the engineering, manufacturing and hardware installation. It generates a stream of periodic cash flows over a time span of years, in exchange for periodic maintenance. The IRR generated by these projects is often very attractive, especially if combined with appropriate and dedicated financial structures. 18

19 ENERGY RESELLING (SMART UTILITY) Smart Utility is the Group vehicle that approaches the domestic market for energy reselling, targeting residential and corporate end-users with supply of electricity and gas. Smart Utility plans to pursue a rapid and sustainable growth in the number and the quality of clients, through an intense and selective marketing campaign. Energy reselling is a low-margin business, but Smart Utility business model is crafted to add high-margin tailor-made specialty products to the basic offer of purely commoditized energy. Energy-saving kits are sold at an average price of 1.800, providing the company with significant margin. Financial solutions to end consumers will be proposed as a marketing tool to make the purchase more affordable and to strengthen customer loyalty. Smart Utility is planning to more than double its customer base. 19

20 Contacts Enertronica S.p.A. Francesco Passeretti Via Armando Fabi, IR Top (Investor & Media Relations) Floriana Vitale, Domenico Gentile via Cantu, 1 Milano d.gentile@irtop.com