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Blue Elephant Energy AG prepares for an IPO

• Blue Elephant Energy AG ("Blue Elephant Energy", the "Company"), one of the fastest growing independent producers of renewable energy in the fragmented European market, is planning an initial public offering ("IPO") on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q3 2021, subject to market conditions.
• Distinct, de-risked and highly scaleable business model built on the three pillars: superior project access, strict investment discipline and excellent operations.
• Blue Elephant Energy benefits from a combined 70 years of experience of the management team and additional core employees with a proven track record in the renewable energy industry and capital markets.
• Since its foundation in June 2016, Blue Elephant Energy has already built a portfolio of 61 solar parks and 13 wind farms with a total contracted capacity of 1,107 MW (as at 31 March 2021) and a substantial project pipeline of a further 1,671 MW (as at 31 March 2021).
• The Company has a demonstrated financial track record, generating revenues of EUR 82 million and an Adjusted EBITDA of EUR 61 million (Adjusted EBITDA margin of 74%) in 2020. As one of the fastest growing independent power producers of renewable energy, the Company has grown on average at an outstanding growth rate of c. 45% (CAGR) between 2018 and 2020. The strong financial profile is further substantiated by Blue Elephant Energy's outlook for 2021, which foresees forecasted revenues of approx. EUR 100 million and an Adjusted EBITDA of approx. EUR 74 million.
• Clear ESG case as Blue Elephant Energy not only focuses on producing 100% clean energy, leveraging proven technologies, but also combines this with environmental and social projects with a positive impact on local communities.
• To implement the growth strategy, Blue Elephant Energy intends to issue new shares from a capital increase and is targeting gross proceeds of approximately EUR 150 million. Except for granting over-allotment shares within a customary greenshoe option, none of the existing shareholders intends to sell shares.

Hamburg, 18.06.2021 - Blue Elephant Energy (www.blueelephantenergy.com) announces its intention to float an IPO and to list its shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange expected to be completed in the third quarter of calendar year 2021, subject to market conditions.

Proven business model

The Company is an Independent Power Producer (IPP) operating in the renewable energy sector with a highly scaleable and low-risk business model focusing on the acquisition and operation of solar parks and onshore wind parks. Blue Elephant Energy operates in the so-called "downstream area" of the value chain of the renewable energy sector, benefiting from highly visible revenue streams in the long term. It acquires de-risked renewable energy assets that are ready-to-build with all material permits secured, under construction or already in operation. The Company's strategy rests on three pillars: (1) superior project access based on long-standing relationships with developers and other industry players, (2) strict investment discipline with in-house expertise to conduct business and technical due diligence and clear investment criteria, and (3) excellent operations using online tools for remote diagnosis to ensure high availability of renewable energy assets. The business model of Blue Elephant Energy further has a strong ESG aspect, producing power from renewable sources, rounded off by environmental and social projects in communities associated with renewable energy assets.

"Blue Elephant Energy is a strong and fast-growing renewable energy company that has established a proven economic model and robust strategic position, as well as the ability to become one of the sector's leading players." says Felix Goedhart, Founder and Chief Executive Officer (CEO) of Blue Elephant Energy, "It is with great enthusiasm that we prepare this planned initial public offering, which will enable us to finance our ambitious growth targets and to remain a leading independent player in the renewable energy markets. Our core team at Blue Elephant Energy consists of highly experienced experts with an extensive network in the industry. All of them are shareholders in the Company and drive our development as co-entrepreneurs."

An experienced team with a clear growth strategy and a strong track-record

Since its foundation in June 2016, Blue Elephant Energy has expanded its portfolio to 61 solar parks and 13 wind farms with a total contracted capacity of 1,107 MW (as at 31 March 2021). The Company has built up its attractive and diversified portfolio in eight different countries, demonstrating its ability to source and execute attractive acquisition opportunities on a large scale in a fragmented market.

The leadership team driving this growth benefits from a combined 70 years of experience among management and core employees. Some of the members of this leadership team developed Encavis AG between 2006 and 2015 from a small venture capital firm into one of Europe's largest renewable energy IPPs. The Blue Elephant Energy team has extensive industry expertise and networks that allow the Company to identify attractive acquisition opportunities at an early stage. The in-house engineering expertise of the team is vital for successfully selecting attractive acquisition targets, supervising construction activities and the operation of renewable energy assets.

"Our growth is based upon two pillars. The first pillar are projects which are offered to us via our long- standing network. We cherry-pick those projects which offer the best risk-return ratio. This strategy has carried us this far and we have been able to build a 1.1 GW portfolio since we started in mid-2016. In the future, we will also grow through the recently introduced second pillar of formal cooperation agreements with project developers. We have secured exclusive access to projects via these agreements. We aim to minimize exposure to development risks. Each agreement is different but generally our partners have aligned interests and the largest part of their remuneration will only be payable once the projects are ready to build. This avoids significant exposure to risks during the development phase, while at the same time placing growth on broader shoulders." explains Tim Kallas, Chief Investment Officer (CIO) of Blue Elephant Energy.

Dr. Gerd Weidenfeld, Chief Financial Officer (CFO) of the Company, adds: "Once built, our renewable energy assets benefit from a long lifespan, providing us with a very high visibility of our future revenue streams. Over the next 15 years, we expect to generate 90% of revenues for the current portfolio from legally guaranteed feed-in-tariffs or long-term power purchase agreements. We aim to achieve a global volume weighted average internal rate of return on project-level of approximately 8% per annum."

As part of its growth strategy, Blue Elephant Energy recently entered into cooperation agreements with five project developers, providing the Company with exclusive access to attractive solar parks being developed by these partners. Longstanding relationships with project developers generally result in a high rate of repeat business. On that basis, the Company has already built a large, substantiated and highly visible project pipeline of 1,671 MW (as at 31 March 2021) in addition to the already contracted portfolio of 1,107 MW (as at 31 March 2021).

"The project pipeline consists entirely of solar parks, which offer a very attractive risk/reward ratio. We intend to maintain a proportion of about 80% of solar assets in the portfolio, by opportunistically acquiring wind farms already in operation. We consider wind farms an important addition, providing further diversification." comments Goedhart. "Further elements of our growth strategy are geographical diversification and new technologies such as storage and hydrogen."

In addition to regularly reviewing investment opportunities in the current markets in Germany, the Netherlands, Italy, Spain, France, Greece, Chile, and the Dominican Republic, Blue Elephant Energy also selectively screens investments in other locations with highly attractive risk/ return profiles. These include growth and niche markets in Europe, South America, the Caribbean, Asia-Pacific and North-America.

While the Company's disciplined investment approach is currently focused on solar and onshore wind assets for the generation of renewable energy, it is also monitoring new technologies such as energy storage and green hydrogen. Provided these investment areas offer attractive risk/return profiles, the Company may expand its investment strategy accordingly.

A larger proportion of overall higher demand for electricity drives renewable energy market growth

The energy transition is a pathway toward transformation of the global energy sector from fossil-based to zero-carbon. It is the driver for the structurally growing market for renewable energies, with a growing share of renewables in an expanding overall energy market.

This transition is driven by corporate renewable Power Purchase Agreements ("PPAs") and regulatory developments like the Paris Agreement in 2015, the revision of the renewable energy directive in 2018 and the EU Green Deal in 2019. Renewable PPAs enable corporate buyers to manage their electricity costs and increase cost visibility, while simultaneously making progress on carbon reduction and environmental goals.^[1]

On the supply side, costs of electricity from renewable energy sources have fallen sharply over the past decade, driven by, among others, improving technologies, economies of scale and increasingly competitive supply chains. As a result, renewable power generation technologies have become the least-cost option for new capacity in almost all parts of the world.^[2]

CEO Goedhart summarizes: "The public, businesses, and regulators are now all working to transition away from fossil fuels. This drives both increased use of electricity overall - think electric cars or public transport - and the share of renewables in the energy mix. Blue Elephant Energy is well positioned to seize this opportunity with its capable team and clear strategy and provide clean, renewable energy for the future. This is accomplished with established technology at a low level of risk."

A strong financial track record and positive outlook

Blue Elephant Energy generated revenue from the sale of electricity produced by its renewable energy assets of EUR 82 million in 2020, compared with EUR 65 million in 2019 and EUR 39 million in 2018. This represents a growth rate (CAGR) of 45% 2018 - 2020. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) stood at EUR 61 million in 2020 (2019: EUR 67 million, 2018: EUR 26 million) and Adjusted Earnings Before Interest and Taxes (EBIT) at EUR 35 million for 2020 (2019: EUR 47 million, 2018: EUR 12 million). Note that the figures for 2019 are impacted by the sale of assets located in the United Kingdom, which generated a profit of EUR 22 million.

Based on the existing portfolio of 1,107 MW contracted capacity as at 31 March 2021, the Company expects for the year ending 31 December 2021 that Adjusted EBITDA will amount to approximately EUR 74 million and Adjusted EBIT will amount to approximately EUR 41 million. This is based on revenue forecast at approximately EUR 100 million for the financial year 2021 from the contracted portfolio, which includes assets that are under construction.

IPO proceeds to fund growth for the acquisition of new solar parks and wind farms

Blue Elephant Energy intends to issue new shares from a capital increase and is targeting gross proceeds of approximately EUR 150 million. The net proceeds will be used to finance the acquisition of new solar parks and wind farms in accordance with the Company's investment strategy and investment criteria.
None of the existing shareholders (including management) intends to sell shares in the offering - except for granting over-allotment shares comprising 15% of the new shares sold in the IPO (greenshoe option). All existing shareholders and the Company agreed to a lock-up period of 6 months. In the planned IPO, Berenberg acts as the Sole Global Coordinator and Joint Bookrunner, COMMERZBANK acts as Joint Bookrunner.
According to the current plan, the offering is expected to comprise a public offering in Germany and international private placements.

Annex: Business Model Highlights

Attractive fundamentals of global energy market fuel transition to renewable energy: As one of the fastest growing IPPs in the fragmented European market, Blue Elephant Energy is in a unique position to capitalize on the attractive fundamental growth trends in the global energy market fuelled by the transition to renewable energy, including political pressure to implement climate protection and anti-global warming measures, national targets to reduce dependency on fossil fuel and decrease of CO₂ emissions and significantly improved relative cost competitiveness of solar and wind energy. The Company believes that these attractive underlying fundamental trends will continue to support its growth for the foreseeable future.

Distinct, de-risked and highly scaleable business model: Due to the long average lifespan of Blue Elephant Energy's renewable energy assets, it has a very high visibility of its future revenue streams. It benefits from guaranteed feed-in tariffs or long-term power purchase agreements and from a largely fixed cost base. More than 90% of its future revenues from its existing portfolio over the next 15 years are fixed through FiTs or long-term PPAs. Due to the increased competitiveness of renewable energies, Blue Elephant Energy expects to generate more of its future revenues through such subsidy-free PPAs.

Highly experienced and entrepreneurial leadership team backed by a renowned shareholder base: Blue Elephant Energy benefits from a combined 70 years of experience of the management team and additional core employees. This team has a proven track record. The Company's extensive in-house engineering expertise is vital for successfully selecting attractive acquisition targets, supervising the construction phase of ready-to-build projects and the operation of its solar parks and wind farms. In addition, its extensive network in the industry allows it to identify attractive acquisition opportunities at an early stage.

The main shareholders, Blue Elephant Venture GmbH (a company controlled by the Chairman of Blue Elephant Energy's Supervisory Board, Dr. Peter-Alexander Wacker), Jahr Assetmanagement GmbH (Jahr Family) and RTG Beteiligungs GmbH (a company controlled by Blue Elephant Energy's CEO Felix Goedhart), enjoy great respect within the renewable energy sector and the financial markets. Their investment perspective is long-term. All key members of the management team have invested substantial amounts in shares in the Company.

Well-positioned to capture a huge market opportunity driven by substantiated pipeline and visible growth strategy: Blue Elephant Energy has generated a substantial project pipeline of 1,671 MW (as at 31 March 2021). A significant part of this project pipeline results from cooperation agreements with five project development companies, which give the Company early and exclusive access to the respective projects. Its longstanding relationships with project developers generally result in a high rate of repeat transactions. In addition, the extensive industry network of the Management Board and the Company's strong reputation in the industry as a reliable business partner that delivers on its promises help it to acquire attractive renewable energy projects.

Blue Elephant Energy predominantly sources its investments from its own broad network, which has been built up by the management team over the last couple of years and explains how the expansion of the portfolio was possible in such a short period of time. As part of its strategy the Company permanently strengthens its relationships with project developers in order to secure attractive investment opportunities as early as possible being exposed only to limited development risks.

About Blue Elephant Energy AG

Blue Elephant Energy AG (BEE) acquires and operates solar parks and wind farms in eight countries with a focus on Western-Europe. Founded in 2016, BEE is currently operating a renewable energy portfolio of 1,107 MW, from which a part is under construction. By the end of 2020, BEE's renewable energy plants have contributed to a sustainable energy supply by saving 956,419 tons of CO2 and providing clean energy to 711,028 households. As part of its ESG strategy BEE directly contributes to social projects on a local level, particularly in Chile and in the Dominican Republic. BEE has secured additional 1,391 MW solar park capacity in the context of co-development agreements with a number of developers, based on longstanding relationships and mutual appreciation. With equity provided by BEE's shareholders, participation rights capital provided by medium-sized insurance companies and project financing, BEE has been able to build a total balance sheet well above EUR 1.2 billion since inception.

Press & Investor Relations contact:

Blue Elephant Energy AG
Karen Westphal
Jungfernstieg 51
20354 Hamburg

cometis AG
Matthias Kunz
Phone: +49 (0)611 20 58 55 64
E-mail: kunz@cometis.de

This press release is available at: www.blueelephantenergy.com

Important Notice:
These materials may not be, directly or indirectly, published, distributed or transmitted in or into the United States, Canada, Australia or Japan or any other jurisdiction in which the distribution or release would be unlawful. These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the "Securities") of Blue Elephant Energy AG (the "Company") in the United States, Australia, Canada, Japan or any other jurisdiction in which such offer or solicitation is unlawful. The Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). There will be no public offering of the Securities in the United States. The Securities of the Company have not been, and will not be, registered under the Securities Act. The Securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan subject to certain exceptions.

This publication constitutes neither an offer to sell nor a solicitation to buy securities. A public offer in Germany will be made solely by the means of, and on the basis of, a securities prospectus which is yet to be published. An investment decision regarding the publicly offered securities of Blue Elephant Energy AG should only be made on the basis of the securities prospectus. The securities prospectus will be published promptly upon approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and will be available free of charge on the Blue Elephant Energy AG website.

This release may in the United Kingdom only be distributed to, and is only directed at, persons who are "qualified investors" within the meaning of Article 2(e) of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, and who are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) or (iii) are persons to whom an invitation or inducement to engage in an investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise be lawfully communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). This release is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity in shares of the Company is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This announcement contains certain "forward-looking statements". Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "will", "anticipates", "aims", "could", "may", "should", "expects", "believes", "intends", "plans", "prepares" or "targets" (including in their negative form or other variations). By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. All subsequent written or oral forward-looking statements attributable to the Company or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward looking statements in this document will be realised. Any forward-looking statements are made of the date of this announcement.

This announcement also contains certain financial measures that are not recognized under International Financial Reporting Standards ("IFRS"). These non-IFRS measures are presented because the Company believes that they and similar measures are widely used in the markets in which it operates as a means of evaluating the Company's operating performance and financing structure. They may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles.

^[1] World Business Council for Sustainable Development, Cross-border renewable PPAs in Europe: An overview for corporate buyers, https://www.wbcsd.org/contentwbc/download/10878/160801/1, last access 21 April 2021;

^[2] The International Renewable Energy Agency, The Power Generation Costs 2019, https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019, last access 19 April 2021;