VOLTALIA (EPA:VLTSA) Voltalia : Q2 2018 revenues: robust growth trend.

Transparency directive : regulatory news

18/07/2018 18:20

PRESS RELEASE
Q2 2018 financial information

July 18, 2018

Q2 2018 revenues: robust growth trend

Revenues up by +8% at constant exchange rates in Q2 2018 at EUR35.2 million

* Growth of Energy sales at constant exchange rates (+16%): positive pricing
  effect achieved in Brazil, which more than offsets lower wind conditions in
  April-May
* Strong growth of Services revenues at constant exchange rates (+57%): sale of
  development and construction for plants owned by Voltalia

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in
renewable energies, announces today its Q2 2018 revenues.

"We remained on a solid growth trend in Q2 2018. We have achieved higher power
sale prices in Brazil by suspending contracts for some of our plants and
selling electricity at attractive prices through short-term contracts. Our
Services business continues its growth trend, with teams fully mobilized on
numerous projects including our first solar projects in Africa, our largest
wind farm in Brazil and an ambitious biomass project in French Guiana. The
environment remains very supportive for Voltalia, with contract suspensions in
Brazil running until the end of the year and opportunities arising on all
continents where we are present", comments Sébastien Clerc, Chief Executive
Officer of Voltalia.

Q2 and H1 2018

In EUR million          Q2       Q2              Change     H1 2018   H1 2017
                       2018     2017  Change   at constant
                                               FX rates(1)

Energy sales           27.6     27.9(2)  -1%      +16%        54.4      55.5(2)

Services               20.1     13.2    +52%      +57%        39.1      23.8

Development,
construction &
procurement            15.3      8.0    +91%      +97%        29.3      13.3

Operation &
Maintenance             4.7      5.2     -9%       -5%         9.8      10.5

Eliminations(3)       -12.5     -4.3    x2.9      x3.1       -20.4      -6.1

Consolidated
revenues               35.2     36.8     -4%       +8%        73.1      73.2

Change       Change
          at constant
           FX rates(1)

    -2%       +14%
   +65%       +70%
   x2.2       x2.3
    -6%        -2%
   x3.3       x3.5
     0%       +12%

(1) 2018 revenues calculated at 2017 exchange rates
(2) 2017 revenues taking into account an extra seasonality effect, with no
impact on annual revenues regarding Brazil power sales
(3) Eliminations: services provided by the Services business for Group-owned
power plants are eliminated upon financial consolidation

Energy sales

Q2 2018 revenues totalled EUR27.6 million, with growth in business activity
offset by the impact of a strong appreciation of the euro against most
currencies, including the Brazilian real whose value in euros was 18% lower in
Q2 2018 versus Q2 2017.

At constant exchange rates, Energy sales revenues are up by 16%, with:

- improved revenues in Brazil driven by: (i) higher power sale prices achieved
by suspending contracts for the Areia Branca plant (60 MW, since January 2018)
and the Vila Para plant (99 MW, since April 2018) and selling electricity at
attractive prices through short-term schemes (ii) increased contribution of the
Vila Acre plant (27 MW), which was still in ramp-up phase in Q2 2017, (iii)
overall less favourable wind conditions over the quarter; and

- higher Energy sales revenues in France thanks to better production in French
Guiana. Metropolitan France was impacted by poor weather conditions and newly
commissioned solar plants did not contribute to their full potential yet.

Services

Q2 2018 revenues from Services grew to EUR20.1 million, up 57% at constant
exchange rates.

- The Development, Construction & Procurement business recorded revenues of
EUR15.3 million, almost doubling compared with Q2 2017 at constant exchange
rates, thanks to a strong contribution of Development and Construction
services. During the quarter, teams commissioned the Canadel solar plant (10.4
MW), owned by Voltalia in France. They also completed work on two projects for
third party clients located in the UK: a solar plant (5 MW) and a battery
energy storage system (2 MW).

- Revenues from the Operation & Maintenance business totalled EUR4.7 million,
down 5% at constant exchange rates. This decrease reflected the expiry of
contracts, notably in Japan and Italy, partly compensated by market share gains
in Greece.

Eliminations expanded in the quarter, more than half of the revenues of the
Services business line coming from services provided internally. The
acquisition of Martifer Solar is proving successful, with the in-house
management of many services that were previously outsourced.

Recent developments

France: 10.4 MW commissioned in Q2 2018 and 50.3 MW currently under
construction

In June 2018, Voltalia announced the commissioning of the Canadel solar power
plant (10.4 MW). Located in Southern France, the plant benefits from one of the
best solar resource of the country. It was won during the CRE III tender at the
end of 2015, with Voltalia benefiting from a 20-year sales contract.
In the quarter, Voltalia also launched the construction of the Echauffour wind
power plant (10 MW). This plant is located in a region which benefits from the
second best wind potential of the country. Commissioning is expected during H1
2019. This new project brings the total capacity under construction to
50.3(4) MW for Voltalia in France.

(4) Including the plants of Cacao (5.1 MW), Carrière des plaines (8.2 MW),
Echauffour (10 MW), PAGAP (5 MW), Sarry (22 MW)

Brazil: contract suspension strategy successfully implemented and 163 MW
currently under construction

Following a first round that took place in the second semester of 2017,
Voltalia has started a second round of contract suspensions regarding some of
its Brazilian assets. By temporarily suspending long-term power sale contracts,
Voltalia can sell electricity through short-term contracts, at very attractive
prices. The full effect of this strategy is to be felt in the second semester
of 2018.

In June, Voltalia announced the launch of the construction of its largest wind
project in Brazil. The Ventos da Serra do Mel project (VSM, 163 MW) is located
in Voltalia's Serra Branca cluster in the State of Rio Grande do Norte, a
region known for its exceptional wind conditions. Progressive commissioning of
turbines in the first three quarters of 2020 is expected, with production sold
on the free market, mainly through private short-term contracts before the
start of the 20-year power sale contracts.

Africa : entering new markets

After Rabat in Morocco and Dar es Salaam in Tanzania, Voltalia is opening a
third office in Africa. Located in Cairo, Egypt, this office will host a local
team, which will get the support of Voltalia's international development teams
as well as in- house wind and solar experts. After winning a first 32 MW
project in 2017, the Group aims at developing up to 800 MW in Egypt over the
next 5 to 8 years, for itself but also for third-party clients.

In May 2018, Voltalia announced the signing of a 20-year sales contract for a
solar project in Kenya, initiated by Martifer Solar and finalized by joint
teams. Voltalia's Kopere power plant (50 MW) will be constructed and operated
by the Group and should contribute to 2020 targets.

Confirmed outlook

In 2018, total installed capacity is expected to increase slightly. The global
environment remains very supportive for Voltalia in Brazil, with high spot
prices, a positive impact of contract suspensions, and a strong interest in
renewable investments shown by investors worldwide. However, it is widely
expected that the Brazilian currency will remain weak over the coming
quarters.

In Services, teams will continue to be mainly mobilized on the Group's own
projects, with the launch of construction of a series of new projects, while
third-party clients' sales are to build-up progressively.

Along with the recent developments in Africa, the launch of the VSM project in
Brazil gives a good visibility on the achievement of Voltalia's 2020 targets.

Report on electricity production

Total energy       Wind   Solar   Biomass  Hydro   Hybrid    Total H1 2018
production in
H1 2018
by area and by
energy
in GWh

Brazil             703.6   1.9                        16.4        721,9
France              51.5   4.6                                     56,1
French Guiana              2.1      5.6    10.8                    18,5
United Kingdom             3.9                                      3,9
Greece                     3.4                                      3,4
Portugal                   0.6                                      0,6

Total               755.1 16.5      5.6    10.8        16.4       804.4

Installed capacity  Wind   Solar   Biomass  Hydro   Hybrid   Total H1 2018
as of
June 30 2018
by area and
by energy
In MW

Brazil               417.3   4.0                       12.0      433.3
France                42.2  18.7                                  60.9
French Guiana                4.5      1.7       5.4               11.6
United Kingdom               7.3                                   7.3
Greece                       4.7                                   4.7
Portugal                     1.0                                   1.0
Total                459.5  40.2      1.7       5.4    12.0      518.8

Next on the agenda: half-year results on September 26, 2018

About Voltalia (www.voltalia.com)

- Voltalia is an international player in the renewable energy sector. The
Company produces and sells electricity generated from wind, solar, hydro and
biomass power plants; it owns a total installed capacity of 519 MW.

- Voltalia is also a service provider, assisting its investor clients active in
renewables at each project stages, from conception to operation and
maintenance.

- With more than 460 employees in 18 countries, over 4 continents. Voltalia is
able to act worldwide on behalf of its clients.

- Voltalia has been listed on the Euronext regulated market in Paris since July
2014 (FR0011995588 - VLTSA) and is a component stock of the Enternext Tech 40
index and the CAC Mid&Small index.

Voltalia
Chief Administrative Officer: Marie de Lauzon
Investor relations: invest@voltalia.com
+33 (0)1 81 70 37 00

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

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