Investor Presentation
Milan, February 2019
1
Disclaimer
This presentation and the information contained herein are addressed solely to (A) in Italy, “qualified investors”, as defined by Article 34-ter, paragraph1(b), of Consob‟s Regulation No. 11971/1999, as subsequently integrated and amended and (B) in Europe, persons who are "professional clients " withinthe meaning of Annex II, Section I, of the Directive (EU) No 2014/65. This presentation is not addressed to any retail investor neither in italy nor elsewhereand no public offering of shares in Italy or elsewhere will be made. This presentation cannot be made, distributed or circulated to the public in Italy orelsewhere under any circumstances.This presentation and the information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchaseor subscribe for securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would require theapproval of local authorities or otherwise be unlawful (the “Other Countries”). Neither this presentation nor any part of it nor the fact of its distributionmay form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. The securities referred to herein have notbeen registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to thecorresponding regulations in force in the Other Countries. The securities may not be offered or sold in the United States unless such securities areregistered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. The Company (as defined below)does not intend to register any portion of any offering in the United States. This publication constitutes neither an offer to sell nor a solicitation to buy orsubscribe for securities.This presentation has been prepared and is the sole responsibility of the Company and the contents of the same are for information purposes only and arenot to be construed as providing investment advice. No representation or warranty, either express or implied, is made as to, and no reliance should beplaced on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. Neither Alerion Clean Power S.p.A. (the“Company” and together with its consolidated subsidiaries, the “Group”), nor EQUITA SIM S.p.A. (“EQUITA”), nor any of their respective representatives,directors, officers, employees, agents or advisers shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way in relation tosuch information or in relation to any loss arising from its use or otherwise arising in connection with this presentation. By accessing these materials, youagree to be bound by the foregoing limitations.This presentation contains certain forward-looking statement, projections, objectives, estimates and forecasts reflecting management’s current views withrespect to certain future events. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts,including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, plans, objectives, goals andtargets and future developments in the markets where the Company or any Group company participates or is seeking to participate. Due to suchuncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. TheGroup’s ability to achieve its projected objectives or results is dependent on many factors which are outside management’s control. Actual results maydiffer materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking informationinvolves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statementsincluded herein are based on information available to the Group as of the date hereof. Neither Group companies nor EQUITA undertakes any obligation toupdate publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required byapplicable law. The presentation may not be retained, copied, reproduced, used, distributed, published or disclosed, in whole or in part, at anytime withoutthe prior written consent of the Company.
History
2Source: company profile, management information, financial statements
2008 - 2014 2015 2016 2017 2018
• Alerion Clean Power focused exclusively on wind power
• Entry into operation of new wind farms in Italy and Bulgaria
• Issuance of a bond for €130m with a 6.00% interest rate
• FGPA S.r.l., controlled by FRI-EL Green Power S.p.A, acquired 29.36% of Alerion
• On April 11, 2018 a capital increase of €24.8m with the contribution of assets of 3 project companies was approved, in particular Green Energy SardegnaSrl, Eolica P.M. Srl and Fri-El AlbaretoSrl (102 MW of gross capacity)
• FRI-EL reaches 85.5% stake with free float at 13.0% and treasury shares at 1.5%
• Bond refinancing: repayment of the previous bond and issuance of a new bond for €150m with a 3.75% interest rate
• FRI-EL Green Power S.p.A, acquired the control of Alerionthrough a tender offer, reaching a stake of 84%
209.4 193.1174.1
228.0
8.1x
5.3x
4.1x
5.2x
2015A 2016A 2017A 2018PCNFP NFP / EBITDA
35%
60%
5%
Energy Incentives Other
12
Alerion at a glance
Key Facts
Alerion Clean Power S.p.A. is one of the main independent Italian operatorspecialized in the production of renewable energies, focused on wind-generatedelectricity
Alerion currently manages and operates a wind farm portfolio composed of:
• 11 wind farms in Italy with a gross capacity of 325 MW
• 1 wind farm in Bulgaria with a gross capacity of 12 MW
• 2 wind farms under construction in Italy with a gross capacity of 72MW
Wind farm portfolio overview
€54.9m
337 MW
Actual gross capacity
Note: (1) Including only operating revenues(2) As Consob N. DEM/6064293/2006
Net Financial Position (€m)(2)Focus on 2017 Net Revenues (%)
Revenues (€m)
CAGR Revenues 2015-17
8.7%
EBITDA (€m)
3Source: company profile, management information, financial statements
46.551.3 54.9
36.6(1)40.3(1)
2015A 2016A 2017A 9M
2017
9M
2018
26.0
36.142.0 44.0
56.0%
71.0%
76.5%
40.0%45.0%50.0%55.0%60.0%65.0%70.0%75.0%80.0%
22.0
27.0
32.0
37.0
42.0
47.0
2015A 2016A 2017A 2018PC
EBITDA EBITDA margin %
Wind Farm
€44m
Exp. EBITDA2018
€228m
Exp. NFP2018
Wind farm portfolio overview
Operating plants
Ordona
San Marco in Lamis
Sicily
Agrigento
Callari
Castel di Lucio
Licodia
Ciorlano
Albanella
Lacedonia (1)
337 MW
Molise
Actual gross capacity
Bulgaria
Krupen
Campania
Apulia
S.Martino in Pensillis(1)
SO WHAT cambiare
Note: (1) Wind farms owned in Joint VentureSource: company profile, management information, financial statements
12 Wind farms managed
4
SardegnaVillacidro-Medio
Campidano
Alerion Clean Power - Wind farm portfolio overview
P lant Lo cat io n SP VGro ss C apacity
(M W)Ownership
End o f
Incentive
perio d
A lbanella Eolo S.r.l. 8,5 100% Feb. 2016
C io rlano Dotto S.r.l. 20,0 100% M arch 2023
A grigento WPS S.r.l. 34,0 100% Jan. 2019
Lacedo nia Ecoenergia Campania S.r.l. 15,0 50% Oct. 2023
C allari Callari S.r.l. 36,0 100% Jan. 2024
Ordo na Ordona S.r.l. 34,0 100% M arch 2024
C astel di Lucio M inerva S.r.l. 23,0 100% Apr. 2025
Lico dia Parco eolico Licodia Eubea S.r.l. 22,1 80% Sept 2025
S.M art ino in P ensilis New Green M olise S.r.l 58,0 50% Oct 2025
S.M arco in Lamis Renergy San M arco S.r.l. 44,2 100% Dec. 2026
Krupen Wind EOOD 12,0 51% Oct 2025
Villacidro -
M edio C ampidanoGreen Energy Sardegna S.r.l 30,8 100% Jan. 2039
Wind farm portfolio overview cont’d
Plants under construction
72 MW
Emilia Romagna
Plannedgross capacity
Albareto
SO WHAT cambiare
Source: company profile, management information, financial statements
2 Wind farms under construction
5
Campania
Morcone-Pontelandolfo
Alerion Clean Power - Wind farm under construction portfolio overview
P lant Lo catio n SP VGro ss C apacity
(M W)Ownership
End o f
Incentive
perio d
M o rco ne-P o ntando lfo Eolico PM S.r.l. 51,8 100% Jun. 2039
A lbareto Fri-El Albareto S.r.l. 19,8 100% Jun. 2039
Total installed wind power capacity
Austria 2.4 2.6 2.8
Belgium 2.2 2.4 2.8
Bulgaria 0.7 0.7 0.7
Croatia 0.4 0.4 0.6
Cyprus 0.2 0.2 0.2
Czech Republic 0.3 0.3 0.3
Denmark 5.1 5.2 5.5
Estonia 0.3 0.3 0.3
Finland 1.0 1.5 2.1
France 10.5 12.1 13.8
Germany 44.9 50.0 56.1
Greece 2.1 2.4 2.7
Hungary 0.3 0.3 0.3
Ireland 2.4 2.8 3.1
Italy 9.0 9.3 9.5
Latvia 0.1 0.1 0.1
Lithuania 0.3 0.5 0.5
Luxembourg 0.1 0.1 0.1
Malta - - -
Netherlands 3.4 4.3 4.3
Poland 5.1 5.8 5.8
Portugal 5.1 5.3 5.3
Romania 3.0 3.0 3.0
Slovakia 3.0 3.0 3.0
Slovenia 3.0 3.0 3.0
Spain 23.0 23.1 23.2
Sweden 6.0 6.5 6.7
UK 13.8 14.5 18.9
Total EU-28 141.7 153.7 168.7
Total 2016 Total 2017EU Capacity (GW) Total 2015
European wind power Overview
9.5
56.1
13.8
23.2
18.9
European (EU 28)installed capacity
168.7 GW
In 2017 European installed capacity increased of around 15 GW, from 153.7 GW in 2016 to 168.7 GW in 2017
The Italian wind market is the fifth in Europe (after Germany, Spain, France and UK) with a total installedcapacity of 9.5 GW, corresponding to around 6% of the total European capacity in 2017. The majority of windfarms are located in the south of Italy and the islands, due to the favorable climatic conditions
European installed wind power capacity
6Note: (1) Chart refers to both onshore and offshore installed capacitySource: WindEurope
2,406
1,783
1,364
1,065 1,014 951 913
Apulia Sicily Campania Calabria Sardinia Basilicata Other regions
Italian Wind Market Overview
Recent analyses showed that the Italian wind power on shore installed capacityshould expand up to 15.2 GW within 2030, compared to the actual installedcapacity of around 9.5 GW (+5.7 GW)
Installed capacity potential evolution to 2030
2017 Wind Onshore Installed capacity (MW) – by region
7
2030 Wind Onshore Potential Installed capacity (MW) – By region
2017 Italy Onshore Wind Power (MW)
9,496
2030 Italy Onshore Wind Power (MW)
15,200
Italian installed wind power capacity (2017)
The Italian total number of onshore wind farms amounts to around 6,700 plants in2017 with a total installed capacity of 9.5 GW, mainly located in southern regions(i.e. Apulia, Sicily, Campania, Calabria, …)
2017 Installed Capacity2030 Installed Capacity
Legenda
Source: GSE - Rapporto Statistico “Energia da Fonti Rinnovabili in Italia - 2017”; ANEV - "Il potenziale eolico italiano"
Italian Wind Onshore Installed Capacity (MW)
Apulia 2,339 2,360 2,441 2,406 0.9%
Sicily 1,747 1,758 1,795 1,783 0.7%
Campania 1,251 1,318 1,351 1,364 2.9%
Calabria 1,000 1,025 1,030 1,065 2.1%
Sardinia 997 1,006 1,012 1,014 0.6%
Basilicata 475 761 867 951 26.0%
Other regions 894 935 915 913 0.7%
Total 8,703 9,162 9,410 9,496 2.9%
Region2014
(MW)
2015
(MW)
2016
(MW)
CAGR
2014-17
2017
(MW)
Italian Wind Installed Capacity Potential w ithin 2030
Region2017 Actual
(MW)
2030 Target
(MW)CAGR 2017-30
Onshore 9,496 15,200 3.7%
Apulia 2,406 2,750 1.0%
Sicily 1,783 2,000 0.9%
Campania 1,364 2,000 3.0%
Calabria 1,065 1,750 3.9%
Sardinia 1,014 2,000 5.4%
Basilicata 951 1,250 2.1%
Other regions 913 3,450 10.8%
Offshore 950
Others 1,000
Total 9,496 17,150 4.7%
2,406
1,783
1,3641,065 1,014 951 913
2,750
2,000 2,0001,750
2,000
1,250
3,450
Apulia Sicily Campania Calabria Sardinia Basilicata Other regions
Italian Market Positioning
8Note: (1) 325 MW in Italy as of February 2019Source: Equita (elaboration on Fri-El and Anev 2017 data)
In 2017 Italy produced 17.5 TWh of wind energy, satisfying the needs of 17 million people with many naturalenvironment benefits (reducing CO2 emissions and petrol consumption)
In the italian market Alerion, with a 2017 gross capacity of 294 MW in Italy, is ranked 7th and, combined with Fri-El, it isranked 3rd
The Italian market is highly fragmented but a consolidation process is ongoing, benefitting from economies of scale
MW
294(1)
1,134
782
482
589
328 312 282 278 275 272 238 225 202 193
Erg Renew EnelGreenPower
FRI-EL &Alerion
E2i EnergieSpeciali
E.ONClimate &
Ren.
FalckRenewables
F2i EDF ENItalia
Glenmont GruppoIVPC
Margherita BKW Italia PLT Energia Alpiq
New regulations moves from incentives toauctions, increasing competition in thesector and reducing dependency fromgovernment incentives, sustaining thetransition to the grid parity
Tariffs allocated to call for tenders €/MWh
124115
93
66
2012 2013 2014 2016
Regulatory framework – Incentives evolution
Focus on incentives evolution
9
1
2
3
FER indicates that plants with power greater than 5 MWhave to win an auction in order to receive incentives
This trend is directly related to the grid parity which isexpected in the wind energy sector. Thanks to thetechnological development, new wind farms are in factincreasingly efficient (in terms of volume of energyproduced and in maintenance costs), ensuring gridparity.
Since 2016 the Green Certificates (GC) (the previousincentive scheme) has been substituted by a newincentive form called Feed in Tariff, introduced withthe Ministerial Decree 23/06/2016
Source: GSE
Tariffs agreed for the
new assets
contribution
To extend useful life and to enhance energyproductivity, Alerion introduced plants activeownership: together with FRI-EL Green Power, Alerioninternally manage O&M of the plants
It is expected that the Italian Government will supportthe repowering / reblading process through a fasterand easier regulatory framework and authorizationprocesses
Regulatory framework – Repowering and Reblading
A significant portion of wind farms installed in Europewill come to the end of useful life between 2020 and2030
Annual repowering potential to 2030 (GW)
Promotion of Repowering and Rebladinginterventions to rejuvenate wind farms
In Europe it is estimated that the earlyrepowering volume grows from 1.2GW in2017 to reach 5.5-8.5GW in 2027 (maininterested countries Germany, Spain, Italy,Denmark, Portugal and France).
Focus on repowering and reblading trend
10
1
2
3
Source: SEN, GSE, WindEurope "Wind energy in Europe: Scenarios for 2030 “, WindEurope, Repowering – framing note, June 2017
2017A 2018A 2021P Long term target
Actual gross capacity New Assets Contribution
New Investments already planned Pipeline
Business Plan Strategic Pillars
Long Term Growth Path
1
2
3
Organic Growth
O&M Efficiency
New Assets Contribution
Planned Gross Capacity(MW)
Target Presence
11
306 MW
Future projects are expected both in Italy and in other European countries (e.g. Spain) to expand the actual installed capacity
Target of an overall installed capacity increase of around 180 MW in Italy (through asset contribution and capex and M&A growth)
Source: Alerion Business Plan
4 M&A Growth
~592 MW
408 MW
Business Plan Targets
12(1) As Consob N. DEM/6064293/2006; Source: Alerion Business Plan
Gro
ss C
apac
ity
(MW
)EB
ITD
A (€
m)
Net
Fin
anci
al P
osi
tio
n
(€m
)(1)
During the Business Plan Period
(2019-2021), the Gross Capacity
is expected to grow to ca. 592
MW in 2021:
• Ca. 480 MW in Italy
• Ca. 100 MW in Spain
• 12 MW in Bulgaria
The NFP is expected to grow at
ca. €310 m in 2021, in order to
finance the CapEx Plan (€210
m in the Business Plan Period -
2019-2021)
NFP /EBITDA
[4,1x] [4,4x]
COMMENTS
~592
~70
~310
As results of the increasing
installed gross capacity, EBITDA
is expected to grow to ca.
€70m in 2021, also benefitting
from O&M efficiency
306 306
2017A 9M 2018 2021P
42.0 44.0
2017A 2018PC 2021P
174.1228.0
2017A 2018PC 2021P
[5,2x]
Annex
13
Group structure @ February 2019
100%
Alerion Servizi
Tecnici e Sviluppo S.r.l.
Operative Plants
Technical and Development Services
Ecoenergia Campania S.r.l.
(Lacedonia 15MW)
Renergy San Marco S.r.l.
(S. Marco in Lamis 44.2MW)
Wind Power Sud S.r.l.
(Agrigento 34 MW)
Ordona S.r.l.
(Ordona 34 MW)
Parco Eolico Licodia Eubea
S.r.l. (Licodia 22.1 MW)
Callari S.r.l.
(Callari 36 MW)
Minerva S.r.l.
(Castel di Lucio 23 MW)
Dotto S.r.l.
(Ciorlano 20 MW)
Eolo S.r.l.
(Albanella 8.5 MW)
4 Bulgarian SPVs
(Krupen 12 MW)
100% 100%
100%100%
100%100%
100%80%
50% 51%
50%
New Green Molise S.r.l.
(S. Martino in Pensilis 58
MW)
14
Green Energy Sardegna S.r.l.
(Medio Campidano 30.8 MW)
Alerion Energie Rinnovabili S.p.A.
New Assets Contribution100%
100%
Source: company profile, management information, financial statements
Fri-El Albareto S.r.l.
(Albareto 19.8 MW)
Eolico PM S.r.l.
(Morcone-Pontandolfo
51.75 MW)Enermac S.r.l.
100% 100%
Project under
construction
Project under
development
100%
Appendix
Key Financials
15
Source: Alerion Consolidated results(1) Including only operating revenues(2) As Consob N. DEM/6064293/2006(3) Excl. derivatives
Income Statement Balance Sheet
€ m 2015 2016 2017 30/09/2018
Non-current intagible assets 70.1 66.7 62.7 -
Non-current tangible assets 223.3 207.3 191.4 -
Non-current financial assets 13.4 14.5 17.8 -
Total non-current assets 306.8 288.5 271.9 -
Other non-current assets 6.8 8.3 12.3 -
Net Invested Capital 313.6 296.8 284.2 -
Shareholders' Equity 105.4 105.6 111.8 -
Minority Shareholders' Equity 2.8 2.6 2.6 -
Total Equity 108.2 108.2 114.4 -
Cash and Cash Equivalents 28.2 35.0 43.3 -
Net Financial Position (2) 209.4 193.1 174.1 -
NFP excluding Derivatives 188.5 174.7 159.1 188.8
NFP (2) / EBITDA 8.1 5.3 4.1 -
NFP (3) / EBITDA 7.3 4.8 3.8 n.m.
€ m 2015 2016 2017 9M2017 9M2018
Revenues 46.5 51.3 54.9 36.6(1) 40.3(1)
Operating costs (21.1) (16.1) (15.3) (9.0) (9.0)
Results of Joint Ventures 0.6 0.9 2.4 1.6 1.4
EBITDA 26.0 36.1 42.0 27.9 33.3
EBITDA % 55.9% 70.4% 76.5% - -
Depreciation and amortization (22.0) (20.5) (20.6) - -
EBIT 4.0 15.6 21.4 - -
Net interest expenses (17.3) (13.9) (13.3) - -
EBT (13.3) 1.7 8.1 - -
Taxes 4.3 (0.9) (3.2) - -
Net Results (9.0) 0.8 4.9 - -
Net results to minorities (0.4) (0.1) (0.1) - -
Net Results of the Group (8.6) 0.9 5.0 - -
Appendix
The Group: FRI-EL Green Power
16
Source: Fri-El Green Power S.p.A. web site(1) Pro forma financials take into consideration 100% of Alerion Clean Power
c 2016 20171
Revenues 214 325
EBITDA 83 143
EBITDA % 38.8% 44.0%
Net Results 22 46
NFP 246 416
NFP/EBITDA 3.0x 2,9x
Thomas Gostner33%
Josef Gostner33%
Ernst Gostner33%
Increase due to the acquisition of the controlling stake of Alerion Clean Power S.p.A.
Pro Forma Key Financials (€ m) Shareholding Structure
EBITDA (€ m) and EBITDA Margin (%) NFP (€ m) and NFP/EBITDA (x)
246
416
3,0x 2,9x
2016 2017
83
143
39%
44%
2016 2017