The New Smart Utility - AIM-Italia2014 Global PV capacity – Top 10 Countries (GWp) 2014 - 2015...
Transcript of The New Smart Utility - AIM-Italia2014 Global PV capacity – Top 10 Countries (GWp) 2014 - 2015...
AIM Investor Day 2016 - April, 14th 2016
The New Smart Utility
AIM Investor Day 2016 - April, 14th 2016
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 2013. Since then, the
company has strongly outperformed, with an overall +103% gain over the IPO price.
WHO WE ARE - Enertronica at a glance
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AIM Investor Day 2016 - April, 14th 2016
INTERNATIONAL MARKET PENETRATION
WHAT WE DO
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Italy
South
America
South Africa
PV EPC
• EPC Contractor (design and construction of PV turnkey solutions)
• Maintenance, supervision systems and surveillance of photovoltaic power plants
MAIN BUSINESS UNITS
• Energy saving
• Electricity and natural gas reselling to end-users
COMPONENTS
ESCO
ENERGY RESELLER
• Design and construction of PV mounting systems (greenhouses, carports and industrial roofs)
• Design and construction of mono-axial and biaxial photovoltaic trackers
PV EPC
Namibia
Eritrea
Romania
AIM Investor Day 2016 - April, 14th 2016
2015: AN YEAR OF EXTRAORDINARY GROWTH
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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.
Consolidated presence in SOUTH AFRICA
Establishment and launch of
SMART UTILITY S.p.A.
Second contract gained in ERITREA
First contract gained in NAMIBIA
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.
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 2016.
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 2016-2017.
AIM Investor Day 2016 - April, 14th 2016
ENT SpA
ENT SGR Smart Utility ENT SA
ENT Mounting System
ENT Investment
ENT 4 BID
Projects
Certum Energy
GROUP STRUCTURE
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Italy South Africa
100% 95% 51% 55% 100%
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
4.000 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
Design, engineering and management
of PV EPC projects
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)
70% 60%
5 MWp power
plant in
Namibia,
currently
under
construction
Namibia
AIM Investor Day 2016 - April, 14th 2016
BUSINESS MODEL (1/2)
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• 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
EPC Components
supply
ESCO
(Energy
services)
Energy
reseller
PV EPC Components
supply
AIM Investor Day 2016 - April, 14th 2016
BUSINESS MODEL (2/2)
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Startup of Storage Division
LED market
internationalization
Off-grid systems for
emerging countries (Storage)
Micro wind Italy and Africa
Latin America Market
EPC
South Africa,
Romania, China and Japan
Roof Top Italia/ LED Lighting
Public lighting systems
Small wind power Italy
Storage systems
Micro production for PA
Grid Parity Italy
Smart City and sustainable
transport
Domestic sales force set up
Structuring deals with mix of
bundled products
New markets
Financial structuring
2013 2014 2015
Extension of supply and manufacturing partnership
Mix of technological and financial resources
Supply expansion Energy
reseller
ESCO
Components
supply
Storage Latin America Market
Grid Parity Italy
Storage
Latin America / North Africa
New products and new markets
AIM Investor Day 2016 - April, 14th 2016
2013 2014 2015
Energy Retail Componentistica PV EPC
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
CONSOLIDATED KEY FINANCIALS
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Revenue Net Invested Capital
2013 2014 2015
EQUITY NET DEBT
6,3 €/mln
10,1 €/mln
10,1 €/mln 5,9
€/mln
17,7 €/mln
8,4 €/mln
AIM Investor Day 2016 - April, 14th 2016
STRATEGIC DRIVERS
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Tenders participation as solar EPC contractor of major
international utilities or local authorities:
Energy and natural gas reselling to residential and
corporate end-users
Sale of PV kits to residential clients
South Africa
Morocco
Eritrea
Namibia
Participation to tenders for solar and energy saving
projects in the public sector
International
EPC
expansion
Domestic
EPC
Energy
reselling &
efficiency (Smart Utility)
AIM Investor Day 2016 - April, 14th 2016
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
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2,5
3
3,5
4
4,5
5
5,5
6
6,5
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Volume Price
€
STOCK PERFORMANCE ON THE AIM ITALIA MARKET
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Last 18-month performance Shareholders
( * ) Interest held indirectly by Plocco Services Srl
+ 81%
NTS Srl; 48,17%
Trust Seven Plocco (*); 41,59%
Market; 10,24%
Source: Bloomberg March 18th, 2016
ANALYST COVERAGE Date Target Price Price Upside Rating
EnVent 06/10/2015 4 3,4 18% Outperform
AIM Investor Day 2016 - April, 14th 2016
CONVERTIBLE BONDS PERORMANCE
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Last 18-month price and volume trend Highlights
Issuer: Enertronica S.p.A.
Type: convertible bonds
Size: €6m - 1.110 bonds convertible in new common stocks without par value
Par value: €5.400 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 2014
Source: Bloomberg March 18th, 2016
-
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
180.000
200.000
96
97
98
99
100
101
102
103
104
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Volume Price
€
AIM Investor Day 2016 - April, 14th 2016
PV EPC GLOBAL MARKET HIGHLIGHTS (1/2)
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Global PV cumulated capacity (GWp)
2014 Global PV capacity – Top 10 Countries (GWp)
2014 - 2015 Annual installations by region (GWp)
38
28
23
19 18
6 54 3 3
0
5
10
15
20
25
30
35
40
45
Germany China Japan Italy USA France Spain Australia Belgium India
Source: Renewable Global Status Report 2015 (REN21); RECAI, February 2016 (EY)
Source: Trends 2015 in Photovoltaic Applications (IEA)
Source: RECAI, February 2016 (EY)
Source: Trends 2015 in Photovoltaic Applications (IEA)
40 GWp
57 GWp
4 5 7 916
23
40
70
100
138 40
57
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Cumulative installed capacity Annual installations
177
234
Asia-Pacific
23,8
North America
6,8
Europe7
Middle East and
Africa1
Central / South
America 1,2
Asia-Pacific
36
North America
8,9
Europe 8,3
Middle East and
Africa1,8
Central / South
America 1,7
AIM Investor Day 2016 – 14 April
INTERNATIONAL EXPANSION: EPC contractor for third parties (1/4)
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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 150.000 to 3.000.000 mc. The area of
irrigation schemes ranges from 3,7 to 274 ha.
* Commercial Operations Date (COD)
AIM Investor Day 2016 - April, 14th 2016
INTERNATIONAL EXPANSION: EPC contractor for third parties (2/4)
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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)
AIM Investor Day 2016 - April, 14th 2016
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
INTERNATIONAL EXPANSION: BOT diversification (3/4)
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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
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 37.000 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.
TREKKOPJE SOLAR PARK
Photovoltaic modules technology:
Polycrystalline
Mounting system: Tracker Monoaxial
ERONGO REGION
5 MWp
Trekkopje Project Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Preparation site:
Civil works
Mechanical works
Electrical works
COD:
* Commercial Operations Date (COD)
AIM Investor Day 2016 - April, 14th 2016
INTERNATIONAL EXPANSION: BOT diversification (4/4)
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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%
AIM Investor Day 2016 – 14 April
DOMESTIC EPC
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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 2016 - April, 14th 2016
DOMESTIC PUBLIC LIGHTENING ENERGY-SAVING TENDERS
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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 15-
25 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.
AIM Investor Day 2016 - April, 14th 2016
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.
ENERGY RESELLING (SMART UTILITY)
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AIM Investor Day 2016 - April, 14th 2016
Contacts
Enertronica S.p.A.
Francesco Passeretti
Via Armando Fabi, 337
www.enertronica.it
IR Top (Investor & Media Relations)
Floriana Vitale, Domenico Gentile
via Cantu, 1 Milano
www.irtop.com