VOLTALIA (EPA:VLTSA) 2017 interim results / Confirmed revenue growth / Investments in the relaunch of services / Confirmation of 2019 ambitions

Transparency directive : regulatory news

25/09/2017 19:35

Press release
Financial information for the first half of 2017
25 September 2017

                              2017 interim results
                            Confirmed revenue growth
                    Investments in the relaunch of services
                        Confirmation of 2019 ambitions

* Strong revenue growth (+74.6%) thanks to energy sales (+36.5% -organic
  growth) and services (x5.2 -external growth)
* Slight growth in EBITDA (+5.4%) and decline in net profit with a still
  negative contribution of the services activity acquired in August 2016, in
  commercial relaunch phase
* Acceleration in energy sales expected in the second half of 2017
* Confirmed ambitions for 2019

Voltalia (Euronext Paris, ISIN code: FR0011995588), international player in
renewable energies, today announces its 2017 interim results.

"The first half year results reflect the recent developments at Voltalia: on
the one hand continued organic growth in energy sales, and on the other hand,
the services activity which is being relaunched and not yet profitable overall.
However, with this new activity and new countries, Voltalia is in a position to
seize opportunities in a changing market with the rapid emergence of
competitive renewable energies. In the short term, we anticipate an
acceleration in energy sales in the second half year, driven by the excellent
performance of the power plants in July and August", declared Sébastien Clerc,
Chief Executive Officer of Voltalia.

Key figures for the first half of 2017

In EUR million
        Energy Development,   Operation-  Eliminations* 30/06/2017 30/06/2016
        sales  construction   maintenance and corporate                (1)
               and procurement

Revenues 60.4       13.3          10.5        (6.1)        78.1(2)    44.7
EBITDA   35.4       (2.7)          1.0        (8.3)        25.3       24.0
EBITDA
margin   58.6%     -20.1%          9.1%        n/a         32.4%      53.7%
Net
profit
(loss)
(Group
share)                                                     (6.8)       3.0

*Eliminations: services provided by the services business lines for owned power
plants and projects are eliminated on financial consolidation.

(1) Voltalia recalls that following the acquisition of Martifer Solar in Q3
2016, the latter was consolidated within the consolidated accounts from
1 August 2016.
(2) Revenues at 30/06/2017 revised slightly upwards compared to the
communication dated 19 July 2017.

Revenues and EBITDA

Energy sales
In EUR million  30/06/2017  30/06/20163  Change

Revenues           60.4        44.3      +36.5%
EBITDA             35.4        27.6      +28.4%
EBITDA margin      58.6%       62.2%

The increase in energy sales (+36.5% compared to the first half of 2016) is
mainly due to revenues from the new power plants commissioned in Brazil since
30 June 2016: the wind farms of Vila Para (99 MW) and Vila Acre (27 MW). The
activity recorded a profitable growth with an increase of 28.4% in EBITDA, with
the slight decline in margins in the first half attributable to non-recurring
events, notably operating incidents at the Mana hydropower plant in French
Guiana.

Services

The contribution of the services activity grew 5.2 times compared to the first
half of 2016 to reach revenues of EUR23.8 million. EBITDA stood at EUR(1.7)
million during the period, with contrasting performances between development,
construction and equipment procurement on the one hand and
operation-maintenance activities on the other hand.

Development, construction and procurement

In EUR million
Revenues before inter-activity eliminations
             30/06/2017  30/06/2016(3)   Change

Revenues        13.3         2.8          x4.8
EBITDA          (2.7)       (0.6)         n/a
EBITDA margin  -20.1%      -22.3%

The development, construction and procurement activity benefited from the
construction contract signed in Tanzania and equipment procurement contracts in
Italy. Furthermore, the first synergies were realised with the mobilisation of
the Martifer Solar teams for designing and constructing Voltalia's first solar
power plant in Brazil, at the isolated site of Oiapoque (4 MW). However,
business volume is insufficient at this stage to cover fixed costs, within the
context of the commercial relaunch. The negative EBITDA therefore reflects the
time lag between the team strengthening programme, initiated at the end of 2016
and which is still underway, and the revenues that will be generated by these
additional resources.

(3) Voltalia recalls that following the acquisition of Martifer Solar in Q3
2016, the latter was consolidated within the consolidated accounts from
1 August 2016.

The activity-wise data for 2016 is unaudited.

Operation-maintenance

In EUR million
Revenues before inter-activity eliminations

             30/06/2017  30/06/20163  Change

Revenues        10.5         1.8       x5.9
EBITDA           1.0         0.4       x2.2
EBITDA margin    9.1%       24.6%

Apart from the continuation of historical operation and maintenance contracts
in Europe, Voltalia recorded the first revenues from the new contracts signed
in Japan (50.7 MW) and in Jordan (57 MW). The business recorded a decline in
the EBITDA margin during the period, since the first half of 2016 did not offer
a relevant basis of comparison due to the change in scope.

Eliminations(4) and corporate

In EUR million
             30/06/2017  30/06/20165

Revenues        (6.1)       (4.1)
EBITDA          (8.3)       (3.3)

Since the acquisition of Martifer Solar, Voltalia now manages certain services
internally that were previously outsourced. The growth in elimination of
revenues reflects this new strategy.

EBITDA is affected by the increase in costs, corresponding mainly to the
structuring costs incurred to support the Group's continued growth in the short
and medium term.

Other items from the profit and loss statement

In EUR million

                              30/06/2017  30/06/2016  Change

EBITDA                            25.3      24.0      +5.4%
EBITDA margin                     32.4%     53.7%    -213 bps
Depreciation, amortisation
and provisions                   (11.1)     (6.9)      n/a
Exceptional income and charges    (0.6)       -        n/a
Operating profit (EBIT)           13.6      17.1     -20.5%
Financial result                 (19.2)    (11.4)      n/a
Taxes and net income of equity
affiliates                        (1.6)     (2.0)      n/a
Minority interests                 0.4      (0.7)      n/a
Net profit (Group share)          (6.8)      3.0       n/a

(4) Eliminations: services provided by the services business lines for owned
power plants and projects are eliminated on financial consolidation.
(5) Voltalia recalls that following the acquisition of Martifer Solar in Q3
2016, the latter was consolidated within the consolidated accounts from 1
August 2016.

The activity-wise data for 2016 is unaudited.

Depreciation, amortisation and provisions represent EUR(11.1) million, up
compared to the first half of 2016, in line with the commissioning of the new
power plants. Expressed in percentage of revenues, they stood at 14.2%, down
compared to 15.5% in the first half of 2016, due to the less capital intensive
services activities.

Voltalia recorded a financial result of EUR(19.2) million, lower compared to
the first half of 2016. Borrowing cost was up following the commissioning of
the Vila Para power plant in Brazil, prior to the implementation of long-term
project financing under more competitive conditions.

The net result (Group share) stood at EUR(6.8) million for the period under
review.

Perspectives

Update on the integration of Martifer Solar

In August 2017, the Group celebrated the first anniversary of its acquisition
of Martifer Solar. As part of the integration, a number of projects were
successfully completed, like the setting-up of a single organisation since
October 2016, harmonisation of human resources policies, implementation of new
common management control procedures, creation of a common engineering team and
rationalisation of the subsidiaries. Finally, work concerning IT
standardisation was undertaken.

At commercial level, all the teams are now combined under the brand Voltalia,
officially presented during the international tradeshow Intersolar in Munich.
In addition, in order to sustain and support the Group's strong growth,
Voltalia intensified its recruitments from end 2016, in particular in the
marketing area and, to a lesser extent in the support area, with the
recruitment to new positions of about thirty employees in total.

The rapid integration of the two teams of Voltalia and Martifer Solar should
make it possible to see growth in revenues from services and benefit from the
synergies generated with the historic business of electricity production.

Recent successes in development and in operation-maintenance

After having won an electricity sale contract in French Guiana for a new
biomass power plant project (6) (5.1 MW), on 30 June 2017, Voltalia announced
the launch of the construction of three new solar power plants in Metropolitan
France(7) for a total of 22.4 MW as well as the selection of two solar projects
as part of the CRE IV(8) (8 MW) call for tender, one of them having been
historically developed by Martifer Solar. In Japan, Voltalia sold a
"ready-to-build" photovoltaic power plant project with a capacity of 2.2 MW,
which was also historically developed by Martifer Solar, to a local client.

In early September, the teams signed contracts for the operation-maintenance of
solar power plants for around 32 MW in Greece, thus taking the country's
managed capacity to 81 MW (+65%).

(6) See press release dated 21 April 2017.
(7) Canadel, Castellet II and Carrière des Plaines power plants. See press
releases dated 7 July and 30 August 2017.
(8) See press release dated 1 August 2017.

Accelerated growth in revenues from energy sales expected in the second half
of 2017

In the second half of 2017, Voltalia anticipates higher revenues from energy
sales compared to the first half.

Firstly, revenues benefit from a seasonality effect, with a second half that is
statistically(9) 12% higher on average than the first half.

Furthermore, the performance of the power plants in July and August was
excellent (+28% of production in July and August compared to the average
monthly production of the first half of the year(10)).

Finally, electricity production in the second half will be sold at generally
higher prices in Brazil:

* excess production is sold at high spot prices; and
* Voltalia won a call for tender allowing to interrupt(11) certain contracts
(153 MW) in the second half of the year: the energy produced is then sold
within private contracts at fixed prices that are significantly higher than in
the long-term contracts, which will resume at the end of the interruption.

Confirmed ambitions for 2019

In order to ensure its future growth, Voltalia has continued to add development
projects to its portfolio: as of 30 June 2017, it amounts to 2.8 GW, a slight
increase since 31 December 2016.

In addition to these projects, Voltalia anticipates first successes in the
development of projects in new geographical areas, particularly on the African
continent.

Thus, Voltalia confirmed its 2019 targets presented in September 2016:
* To cross the threshold of 1 GW in owned installed capacity by 2019;
* To triple its operated capacity to reach 3 GW in operation, including 2 GW
  for third parties, by the end of 2019;
* To reach consolidated 2019 EBITDA of EUR180 million.

(9) Change calculated on the basis of the assets under production at 1 January
2017 and at the current exchange rate.
(10) Change calculated on the basis of the assets under production at 1 January
2017.
(11) Calls for applications carried out in March and July 2017 for the
temporary suspension of long-term electricity sale contracts.

Detailed data

This press release provides information on the consolidated results, produced
according to IFRS that were subject to a limited review by the Statutory
Auditors, then examined by the Voltalia Audit Committee, and approved by the
Board of Directors.

Detailed comprehensive profit and loss statement at 30 June 2017

In EUR million
IFRS - non audited data          30/06/2017  30/06/2016    Change

Revenues                            78.1        44.7       +74.6%
Operating expenses excluding
depreciation, amortisation and
provisions                         (52.8)      (20.7)       n/a
EBITDA                              25.3        24.0       +5.4%
EBITDA margin                       32.4%       53.7%     -213 bps
Depreciation, amortisation and
provisions                         (11.1)       (6.9)        n/a
Exceptional income and charges      (0.6)         -          n/a
Operating profit (EBIT)             13.6        17.1       -20.5%
Financial result                   (19.2)      (11.4)        n/a
Taxes and net income of equity
affiliates                          (1.6)       (2.0)        n/a
Minority interests                   0.4        (0.7)        n/a
Net profit (Group share)            (6.8)        3.0         n/a

Simplified balance sheet as at 30 June 2017

In EUR million
IFRS - non-audited data           30/06/2017   31/12/2016

Equity, group share                 324.8        349.8
Minority interests                   65.2         74.9
Short-term financial debt            57.5        109.7
Long-term financial debt            349.9        322.4
Other current and non-current
liabilities                         105.0        110.1
Fixed assets                        771.4        797.7
Current assets excluding cash        74.9         67.8
Available cash                       56.1        101.4
Total balance sheet                 902.4        966.9

Report on electricity production from 1 January 2017 to 30 June 2017

Total energy production
by area and by energy
in GWh                   Wind power Solar power Biomass Hydro Hybrid  Total

Brazil                      774.2        -         -       -   18.6   792.8
Metro. France                46.4        3.7       -       -    -      50.2
French Guiana                  -         2.2      4.5     9.6   -      16.3
Greece                         -         3.6       -       -    -       3.6
United Kingdom                 -         3.7       -       -    -       3.7
Portugal                       -         0.7       -       -    -       0.7
Total                       820.6       13.9      4.5     9.6  18.6   867.2

The full interim financial report for the first six months of 2017 will be
published and submitted to the French Financial Markets Authority (AMF) in the
next few days. It will be available on the company website (www.voltalia.com).

The 2017 interim results will be available on the Company website
(www.voltalia.com) on 26 September 2016 at 8.30 a.m.

Next on the agenda: Q3 2016 revenues on 18 October 2017 (post trading). About
Voltalia (www.voltalia.com)

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 501 MW). It also provides services to independent
  customers.
* Voltalia operates in 17 countries over 4 continents and is able to act
  worldwide on behalf of its customers.
* Voltalia has been listed on the Euronext regulated market in Paris since July
  2014 (FR0011995588 - VLTSA) and entered the Enternext Tech 40 index in April
  2017 and the CAC Mid&Small in September 2017.

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

Voltalia
General Secretary: Marie de Lauzon
invest@voltalia.com
+33 (0)1 44 63 14 40

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VOLTALIA (EPA:VLTSA) 2017 interim results / Confirmed revenue growth / Investments in the relaunch of services / Confirmation of 2019 ambitions

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