VOLTALIA (EPA:VLTSA) Voltalia : FY2016 annual results.

Transparency directive : regulatory news

03/04/2017 18:52

Press release FY 2016 financial information
3 April 2017

FY2016 annual results

* Consolidated revenues doubled
* +28% increase in installed capacity to 481 MW
* Integration of Martifer Solar activities
* EBITDA increase to +67%
* Confirmation of 2019 targets

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international renewable
energy company, announces its 2016 results today.

"We reached a new milestone in 2016. First, the acquisition of Martifer Solar
allowed us to accelerate in solar and acquire additional expertise in services
provision. Second, we raised EUR170 million to finance our next power plants
and reach our 1 GW installed capacity target for the end of 2019. I extend my
warmest thanks to all Voltalia teams for their commitment throughout the year",
congratulates Sébastien Clerc, Chief Executive Officer of Voltalia.

This press release presents the consolidated results prepared in accordance
with IFRS, approved by the Board of Directors of Voltalia on 31 March 2017 and
now being audited by the Statutory Auditors.

For a better understanding of the business activity, Voltalia recalls that
following its acquisition, Martifer Solar was integrated in the consolidated
accounts from 1 August 2016.

Consolidated  revenues statement

In EUR million                 Voltalia  Voltalia  Change  Martifer   Voltalia
IFRS - non audited data          2015     2016              Solar     new scope
                                       historical         (5 months)*   2016
                                          scope

Energy sales                     57.4     101.9     +78%      0.3      102.1
Development, construction
and procurement                     0       6.0      nm      12.3       18.3
Operation and maintenance         1.0       1.3     +30%      5.1        6.5
Revenues                         58.5     109.2     +87%     17.7      127.0
Operating expenses excluding
depreciation,
amortisation and provisions     (28.5)    (53.1)    +86%    (23.8)     (77.0)
EBITDA                           30.0      56.1     +87%     (6.1)      50.0
EBITDA margin                    51.3%     51.3%      -.      nm       39.4%
Depreciation, amortisation
and provisions                   (7.7)    (16.2)     x2.1     3.0      (13.2)
Exceptional income and charges      -      (3.0)     x3.0     0.4       (2.6)
Operating result                  22.3      36.9     +65%    (2.7)      34.2
Net financial profit (loss)      (14.8)   (27.6)     +86%    (1.5)     (29.0)
Taxes and other minority
interests                         (3.6)    (3.5)      nm       0        (3.5)
Net result (Group share)           3.9      5.9      +51%     (4.2)      1.6

* Starting on 1 August 2016

An excellent 2016 for Voltalia's historical activity

Own-account electricity production showing major growth

The year 2016 was highlighted by a strong performance of the IPP activity.

Energy sales for the year 2016 thus show growth of +77.5%, benefiting from the
full effect of the power plants commissioned at year-end 2015 in Brazil
(Vamcruz 93 MW and Oiapoque 12 MW) and the first revenues generated by the Vila
Para power plant (99 MW in Brazil) which gradually started production during
Q3 2016(1). The continued growth of the Serra Branca cluster thus greatly
contributed to the performance of this business in 2016.

Regarding its services activity, the Group recorded very good results due to
the sale of a solar power plant in France and the growth of the third-party O&M
business in Greece (+30%).

New EBITDA growth

The +86% increase in operating charges is explained by the additional costs
incurred by the operation of the new power plants over a full year. EBITDA
reaches EUR56.1 million, for an EBITDA margin of 51.3%, at the same level as
that of FY 2015.

Net result (group share) strongly up in spite of increased financial costs The
increase in financial costs in 2016 is explained by three factors:

* New commissionings in Brazil
They mechanically lead to an increase in interest expenses that will go down as
debt is repaid;

(1)  See press release dated 1 September 2016.

* The interest expense of the Vila Para power plant commissioned in Q3 2016

In 2016, this power plant was still financed by short-term debt at reference
interest rates above those of the long-term BNDES debt that replaced it in
February 2017;

* Brazilian interest rates at historically high levels

After increasing by 5.5% to 7% in 2015, the long-term BNDES interest rate
remained at 7.5% throughout 2016. The interest rate was brought down to 7% from
April 1, 2017.

In sum, the group share net result at constant scope grew by +51%.

Marketing dynamic relaunched for the services activities from Martifer Solar

On August 18, 2016, Voltalia closed the acquisition of Martifer Solar. The
acquired activities have been integrated in Voltalia's consolidation scope from
August 1, 2016.

Over 5 months, the provision of services resulting from the venture with
Martifer Solar generated revenues of EUR17.7 million and a -4.2 million euros
net result because of a slowdown in business due to the difficulties of the
former parent company in 2014-2016.

The relaunch of the marketing dynamic, initiated in September 2016, is still
ongoing in order to reach the 2019 targets. It has already bore its first
fruits at the end of 2016 and early 2017, with the singing of an EPC contract
in Tanzania  (5 MW) and several O&M contracts in Japan (50 MW).

Financial structure: continued increase in investments to maintain the growth
dynamic

The Group maintains its strong investment strategy: in 2016, it invested a
total of EUR133.9 million for the construction of new production capacities.

The Group's financial structure is robust. All operating power plants are
financed to date by long-term project finance debt in local currency, which
represented 96% of the total financial debt of Voltalia at 31 December 2016.
Thanks to the proceeds of the EUR170 million capital increase carried out in
October, the Group repaid corporate debts. The first of these were revolving
five-year lines held by Voltalia. In addition, the Group repaid lines held by
Martifer Solar to finance its working capital requirements in order to
eventually replace them with more competitive lines. Finally, Voltalia used its
enhanced cash flow to finance most of the construction of the Vila Acre power
plant (27 MW), thus postponing the use of debt until the start of the long-term
debt project and thus save on financing costs.

At 31 December 2016, Voltalia thus had a EUR101.4 million cash balance and
EUR62.5 million of unused corporate bank lines.

In EUR million
IFRS - non audited data                31/12/2015   31/12/2016     Change

Voltalia's shareholders' equity           153.4        349.8        x2.3
Minority interests                         57.8         74.9        x1.3
Non-current liabilities                   265.1        352.1        x1.3
Current liabilities                        74.9        190.0        x2.5
Fixed assets                              487.8        797.7        x1.6
Current assets excluding net balance       19.8         67.8        x3.4
Cash balance                               43.6        101.4        x2.3
Total balance sheet                       551.2        966.9        x1.8

Capital increase: financial resources to reach the 2019 targets

The success of the EUR170 million capital increase achieved during Q4 2016
provided Voltalia the financial means necessary to reach its targets, enlarge
its shareholder base and welcome new investors. The operation benefited from a
new investment from the reference shareholder Creadev (through Voltalia
Investissement), whose equity stake now amounts to 70%.(2)

The capital increase also enabled Proparco to take an equity stake. Proparco is
a subsidiary of the sovereign institution Agence Française de Développement
(AFD) dedicated to the private sector, which has been working for over 40 years
to support the development of emerging markets.

Finally, the free float has been significantly strengthened thanks to this
operation.

Perspectives

Continued increase in owned installed capacity

The growth in the Group's own installed capacity will continue in 2017. In
Brazil, the expected commissionings of the Vila Acre wind farm (27 MW)(3) and
of the Group's first solar power plant in Brazil in Oiapoque (4 MW)(4) will
contribute to increase Voltalia's owned installed capacity to more than 500 MW
in 2017.
In addition, Voltalia has a solid 2.7 GW portfolio of projects in development,
which displayed significant sector and geographical diversification.

Relaunch of the services activities

New construction and/or operation and maintenance contracts for solar power
plants will be added. In addition to the new contracts announced in the Q4 2016
press release(5), Voltalia plans to intensify its commercial efforts even more
with the aim of acquiring new customers in its different business activities in
2017.

Achievement of Martifer Solar integration

Thanks to the upstream work carried out by the teams of the two companies, the
new structure was put in place as soon as October 2016. The last stages include
the harmonisation of the IT systems and the legal aspects related to
intellectual property (name changes, subsidiary management, etc.), currently
being processed.

Confirmation of 2019 ambitions

Emboldened by a determining 2016 and increased resources to pursue its
profitable growth strategy, Voltalia reconfirms its 2019 ambitions, presented
in September 2016:

* To cross the 1 GW threshold of owned installed capacity;
* To triple its operating capacity to operate 3 GW including 2 GW for
  third-party clients;
* To reach consolidated EBITDA of EUR180 million.

(2)  See press release dated 4 November 2016.
(3)  See press release dated 1 September 2016.
(4)  See press release dated 23 January 2017.
(5)  See press release dated 25 January 2017:

Calendar: Q1 2017 revenues on 26 April 2017 (post trading)

About Voltalia (www.voltalia.com)

* Voltalia is an international renewable energies company producing electricity
  from many sources (wind and solar power, hydropower and biomass, with an
  installed capacity of 481 MW as of 12/31/2016). It also provides services to
  independent customers.
* Voltalia is established in 15 countries on 4 continents and has a global
  capacity that is at the service of its clients.
* Voltalia has been listed on the Euronext regulated market in Paris since July
  2014 (FR0011995588 - VLTSA).

Actifin
Investor Relations: A. Commerot, acommerot@actifin.fr
Media Relations: J. Jullia,
Tel.: +33 (0)1 56 88 11 11

Voltalia
Chief Administrative Officer: Marie de Lauzon
Email: invest@voltalia.com Tel.: +33 (0)1 44 63 14 40

Forward-looking statements - Voltalia

This press release contains forward-looking statements. Forward-looking
statements are not historical fact. The statements contain forecasts and
estimates, as well as assumptions on which they are based. They are statements
concerning projects, objectives, intentions and expectations regarding the
financial results, events, transactions, future services, product development
and potential and future performance.

These statements are sometimes identified by the words "expect", "anticipate",
"believe", "intend to", "estimate", or "plan to", and other similar terms.
While Voltalia feels that these forward-looking statements are reasonable,
investors are reminded of the fact that these statements are subject to
numerous risks and uncertainties that are difficult to forecast, and in general
are beyond Voltalia's control. This means that the results and the actual
events that occur can differ significantly from those that are described,
implied or expected in the forward-looking statements and information. These
risks and uncertainties include inherent uncertainties linked to the decisions
of regulatory authorities on whether or not to award operating permits and
construction permits, and on what date, as well as the policies in support of
renewable energies and other factors that could impact the production capacity
or profitability of Voltalia's power generation sites as well as those
developed or identified in the public documents filed by Voltalia with the
French Financial Markets Authority (AMF), including those set out in Chapter 4
"Risk factors" of the 2014 Voltalia registration document filed with the AMF on
30 April 2015 under number R.15-026. Voltalia makes no commitment to update the
forward-looking statements or information other than those required according
to applicable regulations, including Articles 223-1 et seq. of the French
Financial Markets Authority (AMF) General Regulation.

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