FY2017 ANNUAL RESULTS - Engie EPS · STRICLTY CONDIFIDENTIAL Consolidated Revenues FY2016 FY2017...

STRICLTY CONDIFIDENTIAL

F Y 2 0 1 7 A N N U A L R E S U LT SCONTINUED GROWTH MOMENTUMON TRACK TOWARDS 2020 TARGETS

I N V E S T O R C A L L – B A N G K O K , 2 9 M A R C H 2 0 1 8

C O M M PA C K

PUBLIC INFORMATION BUT CONTENTS SUBJECT TO COPYRIGHTEPS COMM PACK® are publications of Electro Power Systems S.A. (EPS). The information contained therein are not confidential but all the contents are subject to copyright. As a result, the contents (including by way of illustration only, pictures, charts, etc.) contained therein cannot be sent, copied, reproduced, distributed, released or disclosed, directly or indirectly, in whole or in part, to any person (whether internally or externally to your company) unless authorized in writing by EPS. Non-compliance with these restrictions will result in the violation of legal restrictions in any jurisdiction in which EPS is active.

DISCLAIMER This document does not constitute an offer to sell, or a solicitation of an offer to buy, EPS shares. If you wish to obtain more comprehensive information about EPS, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.electropowersystems.com). This document may contain guidance and some forward-looking statements. Although the Company considers that these statements and guidance are based on reasonable hypotheses at the date of publication of this document, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements. For the risk factors behind please refer to the Registration Document 2016 (also available in English on our website: www.electropowersystems.com).

© Copyright 2017 EPS All rights reserved


2

http://www.electropowersystems.com



Consolidated Revenues

FY2016 FY2017

9,9

7,1

+ 40%

Gross Margin

FY2016 FY2017

40%46%

EBITDA

FY2016 FY2017

-1,7-4,0

+ 56%

Operating Loss

FY2016 FY2017

-5,9-8,6

+ 31%

Pipeline

FY2016 FY2017

150

100

+ 50%

Project Backlog

FY2016 FY2017

25,1

6,5

+ 286%

3

(*) Net of the €3,1mln IFRS2 accounting of the EIB Warrants

*

Revenuesand

Other Income

GrossMargin

EBITDA EBIT Net Income (Loss)

666

10

16

COGS PersonnelCosts

Operating and

R&D expenses

D&A and ESOP

Non-recurringExpenses

Financials&Taxes

0,1

2,7

4,4

6,5

10

1610,0 (6,0)

4,0 (3,5)

(2,2) (1,7)(1,6)*

(2,6)

(6,0) (5,9)**

P&L 2017 waterfall

*(1,3) D&A *(0,3) ESOP Plan

4

Data in (€ mln)

** Net of the €3,1mln IFRS2 accounting of the EIB Warrants


Data in (€ mln)

1%4%8%

87%

EMEA AFRICAAPAC AMERICAS

By Region of Installation

13%

26%

61%

Grid Support MobilityMicrogrids

By Sector

6%2%2%2%2%6%

7%

8%

8%

16%

16%

25%

ENELRFINECSOMNPSEdisonTerna

Advanced Devices Telecom Hitachi/SiemensFCAToshibaOthers

By Customer

Revenues FY2017 (€9,9mln)5


6Personnel Costs & R&D Personnel Capex

19%

15%

65%

R&D Personnel (€1,7 mln)Other Intangible Assets – IP, ERP, AI (€0,4 mln)R&D Test Equipment, Prototypes and Certification Process (€0,5 mln)

CAPEX Investments

in 2017 €2,6 mln

Personnel Costs & Related Indirect Costs R&D Personnel Capex 31% HR

Capitalized as R&D

27%with a PhD

or MBA equivalent

92 people

* Indirect Personnel costs: Including only travels and expenses Data in (€ mln)

PERSONNEL COST

INDIRECT PERSONNEL

COSTS*

5,2

4,4

R&D PERSONNELCAPEX

5,2

0

4,6

4,6

0,5

5,2

(1,7)3,5


7

11%

21%

33%

34%

Technology & InnovationOperations & ProductionGeneral ManagementBusiness Development

Personnel Costs

€4,6mln

Personnel 2017 by Cost Center

15%

36% 27%

21%

Indirect PersonnelCosts

€0,5mln

Data in (€ mln)


2%4%5%

19%

25%

45%

Turin (Rivoli)Milan (Bovisa)Valtellina (Delebio)Milan (Tricolore)ParisValle d'Aosta

8Other Operating Expenses 2017 (€2,1mln)

Data in (€ mln)

6%7%

21%

67%

External assembling activitiesInstallations activities outsourcedPower House installationsOthers

Installation Costs “Make or Buy” €0,7mln

Rents €0,3mln

50%

10%

12%

28%

Legal Advisors (External Advisors)HSEQ AdvisorsCommunication AdvisorsAudit services

Legal and other consultancy costs

€0,2mln

7%14%

15%

21%

15%

13%

14%

InsuranceBoard CompensationTaxes and Bank commisionsFuel & TransportationMaintenanceVoice & DataOthers

Other Expenses €0,9mln


Distribution & Business Development

Legal Accounting & Certification

Travel, Communication and Roadshow Other Non-recurring

36%40% 17% 8%

9Non-recurring Expenses (€2,6mln)

13%

14%

30%

43%

Analyst CoverageInvestor RelationsPress AgencyOthers

Communication and Roadshow expenses

€0,4mln

4%15%

17%

19%17%

28%

Legal Support DD and DDRIFRS Independent AdvisorsTemporary Admin SupportExtra Auditing expensesCertification AdvisorsOthers

Legal Accounting & Certification €0,9mln

6%9%

8%

20%

29%

29%

Installations services (Telco)Gas Engineering (Telco)Business Development (Partners)External Project ManagementExternal LogisticsOthers

Distribution & Business

Development€1,0mln

15%

47%

38%

HR SupportR&D activitiesOthers

Other Non Recurring expenses

€0,2mln


Our Mission, since the beginning, today solid more than ever10

The Group’s mission is to unlock the energy transition, by mastering the intermittency of renewable energy sources. Being pioneer of Hybrid Storage Solutions, transforming intermittent renewable sources into a stable power source. And enabling renewables to power society: reliably, affordably and sustainably.


Human Resources (FTE)

Our 4-year People story

25

50

75

100

2013 2017

Source: EPS Annual Financial Report and update as at 07.09.2017

11

27%with a PhD

or MBA equivalent

92people

50%on IEEE

150+ publications

13 hydrogen experts


100%Storage Systems 100%Microgrids

Grid Support Utility-Scale and behind the meter

Independent Power Generation and weak-grids stabilization

Source: bnef.com

Outlook: Addressable Markets 12

65%100%

45 GW global 2016-2024

14 GW EMEA

65%100%

600 GW global to 2017

29 GW Annually

http://bnef.com


Microgrids generation capacity Grid-Support Solutions* Energy Storage

APAC Europe Africa Americas

2017 Installed Base and systems under commissioning

1%23%

6%

70%

40 MW

89%

11%

55 MW

4%7%

73%

16%

67 MWh

Source: data as at 31.12.2017

13

* including utility scale and behind-the-meter solutions


Cerro Pabellon (Chile) 1 MWh Hydrogen enabled microgrid IN OPERATIONS, COMMISSIONED, EXPERIMENTAL PHASE PASSED

Coober Pedy (Australia), 12 MW microgrid IN OPERATION SINCE H2 2017

2017 Operational HighlightsMICROGRIDS

14

14

Semakau Island (Singapore),2MWh Hydrogen P2P System COD EXPECTED IN H2 2018


15

Giannutri Smart Island (Italy), 200kW, COD EXPECTED IN H1 2018

2017 Operational HighlightsSMART ISLANDS

REMOTE will develop 3 microgrids, all based on the integration of RES, batteries and hydrogen-based energy

storage solutions: • Ginostra Smart Island, 2MWh (Italy)

• Off-Grid Microgrid in Serres, 1MWh (Greece)• Off-Grid Microgrid in Ambornetti, 0.5MWh (Italy)


16

Litoral, 20 MW utility-scale, COD EXPECTED IN H1 2018

Altomonte, 0.5 MW utility-scale, COD EXPECTED IN H1 2018

2017 Operational HighlightsUTILITY-SCALE STORAGE SYSTEMS


May

2014Industrial and

Financial Restructuring

completion

April

2015IPO in ParisManagement

appointment

2005Politecnico SPIN-OFF

Revenues

Order IntakeEnergy Storage and microgridsBusiness Model validation

Scale-Up Pivoting

in the Energy MarketsTechnology Incubation

Research funded by top European VCs investors

October

2013

17

December

2015ABB + acquisition

FY2014 FY2015 FY2016 FY2017 FY2018

22,8

17

12,1

1,20,1 0,0

10,0

7,1

1,20,8

*


At the lowest cost with the highest quality

EU CHALLENGES

Decarbonization

Market Efficiency

Security of Supply

SECTOR TRENDS

Intermittent RES increase

Thermal phase-out

Technological development

Energy efficiency

SYSTEM NEEDS

Flexibility: RES integration

Security: of the whole supply

Adequacy: at system level

Not a coincidence: the European showcase as a cornerstone for the global energy transition


SOLAR +17.6GW

WIND +4.3GW

6

28 29 3235

4438

577 4 7 8

6256

505x

+ 28 GW

2020 Low High 2025

Low High 2030 2009 2016 Low High

20202025 2030

-15 GW-12 GW

2011 20132009 20162011 2013

RES GROWTH (GW)2009 TO DATE TOMORROW

THERMAL PHASE OUT (GW)2009 TO DATE TOMORROW

Source: Terna estimates for Italian Electricity Market, 27 September 2017

87%60%

39%21 MAY 3:00pm 21 MAY MAY

Hourly Daily Monthly

RES load coverage H1 2017

26% of the European storage installed capacity has been developed by Ternain Italy

SEN3 Targets 50% require further deployments of 51GW solar and 17GW wind

Not a coincidence: the Italian showcase, Energy Transition for real19


100%

100%100%

100%

Not a coincidence: focus in Emerging Economies because of the indisputable market potential

$22bln

Annual Market just for Capacity Additions

($190bln to 2030 according to GTM)

600 GW 29 GW

Annual Capacity Additions

Potential Investment for replacement with microgrids

$960bln

Current installed fleet of diesel generation

100%2.5blnPeople

Source: bnef.com, GOGLA and BCG integrated with EPS analysis

20

100%$1.2bln

Annual spending in diesel fuel per GW

3-5 years paybackfor decentralized clean energy

http://bnef.com

21

Not a coincidence: out partner is the largest independent power producer in the world, and strongly committed to the Energy Transition

Find the right partner. Set ambitious targets. Play hard. Work harder.

Simone Moro, February 27th 2016, Nanga Parbat, 8,126 meters a.s.l, first winter ascent ever, 3rd attempt

as sometimes it is the people no one can imagine anything of

who do the things no one can imagine.Alan Turing

C O M M PA C K


23PUBLIC INFORMATION BUT CONTENTS SUBJECT TO COPYRIGHTEPS COMM PACK® are publications of Electro Power Systems S.A. (EPS). The information contained therein are not confidential but all the contents are subject to copyright. As a result, the contents (including by way of illustration only, pictures, charts, etc.) contained therein cannot be sent, copied, reproduced, distributed, released or disclosed, directly or indirectly, in whole or in part, to any person (whether internally or externally to your company) unless authorized in writing by EPS. Non-compliance with these restrictions will result in the violation of legal restrictions in any jurisdiction in which EPS is active.

DISCLAIMER This document does not constitute an offer to sell, or a solicitation of an offer to buy, EPS shares. If you wish to obtain more comprehensive information about EPS, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.electropowersystems.com). This document may contain guidance and some forward-looking statements. Although the Company considers that these statements and guidance are based on reasonable hypotheses at the date of publication of this document, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements. For the risk factors behind please refer to the Registration Document 2016 (also available in English on our website: www.electropowersystems.com).

© Copyright 2017 EPS All rights reserved



FY2017 ANNUAL RESULTS - Engie EPS · STRICLTY CONDIFIDENTIAL Consolidated Revenues FY2016 FY2017...

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