VOLTALIA (EPA:VLTSA) Voltalia : Sharp growth of Q3 2018 revenues and confirmation of strong H2 outlook.

Transparency directive : regulatory news

17/10/2018 17:47

PRESS RELEASE

Q3 2018 financial information

October 17, 2018

Sharp growth of Q3 2018 revenues and confirmation of strong H2 outlook

Revenues up by 26% at constant exchange rates in Q3 2018 at EUR54.5 million

- As expected, strong growth of Energy sales at constant exchange rates (+49%
  vs Q2 2018, +20% vs Q3 2017) supported by a growth in production (+ 63% vs Q2
  2018, +6% vs Q3 2017)
- Accelerated growth of Services revenues at constant exchange rates (+24% vs
  Q2 2018, x2.6 vs Q3 2017) lifted by sales in Development, Construction &
  Procurement

2018 outlook confirmed: positive trends already underway in Q3 expected to
materially increase profitability in H2 vs. H1

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in
renewable energies, announces today its Q3 2018 revenues.

"The expected positive dynamics have started to unfold, confirming our outlook
for a strong second half of 2018. Energy sales are supported by our pricing
optimization strategy on top of a favorable seasonality effect. But ultimately,
it is our Services activity which is recording an outstanding performance, with
revenues more than doubling", comments Sébastien Clerc, Chief Executive
Officer of Voltalia.

In EUR million       Q3       Q3     Change      Change       9M
                    2018    2017(1)            at constant   2018
                                               FX rates(2)

Energy sales        40.7     40.6    +0.3%        +19.8%     96.4
Services            24.9     10.2     x2.4         x2.6      64.1
Development,
Construction &
Procurement         20.5      5.6     x3.7         x3.9      50.3
Operation &
Maintenance (O&M)    4.4      4.6    -4.8%         -0.8%     13.8
Eliminations(3)    (11.1)    (2.3)    x4.8         x6.0     (31.4)
Consolidated
revenues            54.5     48.5   +12.2%        +26.5%    129.1
Other key data

Production
(in GWh)              658     619      +6%           +6%    1,462
Installed capacity
(in MW. end of
period)                                                       524

9M      Change       Change
2017               at constant
                    FX rates(1)

101.0     -4.5%       +12.3%
34.0     +88.5%       +96.7%

18.9      x2.7         x2.8

15.1      -8.6%        -3.4%
(8.4)     x3.7         x3.9

126.6     +1.9%       +16.6%

1,476       -0%         -0%

501         +5%         +5%

(1) Quarterly figures calculated by difference between 9M and H1
(2) 2018 revenues calculated at 2017 exchange rates
(3) Eliminations: services provided by the Services business for Group-owned
power plants are eliminated upon financial consolidation

Business review Energy sales

Q3 2018 revenues totalled 40.7 million, broadly stable compared with Q3 2017,
with very solid growth in business activity fully offsetting the drop in the
Brazilian real.

At constant exchange rates, Energy sales revenues are up by 20%, with:

- strong revenue growth in Brazil driven by: (i) good wind conditions
  benefiting all wind farms, with production up by 6% (ii) higher power sale
  prices achieved by suspending contracts for the Areia Branca (60 MW) and
  Vila Para (99 MW) plants against a comparison base that already included
  contract suspensions for 153 MW in Q3 2017; and

- overall very good performances outside of Brazil.

Services

Q3 2018 revenues from Services grew sharply to EUR24.9 million, up 2.4 times
(and 2.6 times at constant exchange rates) compared with Q3 2017.

- The Development, Construction & Procurement business recorded revenues of
  EUR20.5 million, lifted by the sale of ready-to-build projects to
  international renewables investor Actis. In parallel, EPC maintained a
  strong growth momentum with teams mainly mobilized on projects in France and
  Brazil.

- Revenues from the O&M business totalled EUR4.4 million, broadly stable at
  constant exchange rates.

Eliminations expanded in the quarter, driven by the in-house performance of
many services that were previously outsourced.

Confirmed short-term outlook

As expected, Q3 2018 Group revenues have been much higher vs Q2: +48% at actual
rates and +55% at constant rates.

Continuing the Q3 2018 momentum, and based on positive trends announced in the
H1 results communication on September 26, Voltalia confirms the short-term
outlook of higher profitability in H2 compared with H1.

Q3 developments

In Q3 2018 Voltalia maintained a strong commercial momentum by securing several
new projects:

- Early August, Voltalia won 20-year power sale contracts for two solar
  projects in France: Laspeyres (5 MW) and Jonquières (3.9 MW), expected to be
  commissioned by 2020 and 2019, respectively.

- Later that same month, Voltalia won two hydroelectric projects in France:
  Croix-et-Jorasse (2.4 MW), in the Haute- Savoie department, and Merderel
  (2 MW), located in the Savoie department. Both will benefit from a 20-year
  electricity sales contract effective from the commissioning, expected end of
  2022 at the latest.

- In late August, Voltalia secured a new 60 MW wind project, named VSM 2
  (Ventos da Serra do Mel 2) during the auctions organized by the Brazilian
  regulator ANEEL. As for most of Voltalia's projects in Brazil, construction
  will be accelerated. Between start of operations, which will occur during the
  second semester of 2020, and until the long-term power sales contracts begin
  in 2024, production will be sold on the free market mainly through short-term
  private power sales agreements already secured at a price more than 60%
  higher than the 20-year contract price.

- Mid-September, Voltalia announced it had sold a ready-to-build 197 MW
  portfolio of Brazilian wind farm projects to international investor Actis
  (through its Echoenergia fund). This first sale is part of a 500 MW
  partnership.

Recent developments

- Last week, Voltalia won 10-year contracts for two battery storage units, for
  an installed capacity totalling 10 MW. The Stockage Mana project, located
  near other Voltalia projects in French Guiana, is expected to start
  operations at the end of 2019.

Report on electricity production

Total production
by area and               Wind      Solar   Biomass   Hydro  Hybrid    Total
by energy                                                             9M 2018
in GWh

Brazil                  1 313.0                               29.0    1 342.0
France                     64.8       13.0                               77.7
French Guiana                          3.5      7.8     17.8             29.0
United Kingdom              6.7                                           6,7
Greece                      5.7                                           5.7
Portugal                    1.0                                           1.0
Total                   1,377.7       29.8      7.8     17.8   29.0   1,462.1

Installed capacity
by area and               Wind      Solar   Biomass   Hydro  Hybrid    As of
by energy                                                           09/30/2018

Brazil                    417.3                                16.0     433.3
France                     42.2      23.7                                65.9
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      41.2       1.7    5.4     16.0     523.8

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 524 MW as of
  today.
- Voltalia is also a service provider. assisting its investor clients active in
  renewables at each project stages. from conception to operation and
  maintenance.
- With 490 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
Press contact: J. Jullia
+33 (0)1 56 88 11

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VOLTALIA (EPA:VLTSA) Voltalia : Sharp growth of Q3 2018 revenues and confirmation of strong H2 outlook.

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