fy2017 annual results - pioneering energy storage and ... · energy storage and microgrids business...
TRANSCRIPT
STRICLTY CONDIFIDENTIAL
F Y 2 0 1 7 A N N U A L R E S U LT S CONTINUED GROWTH MOMENTUM ON TRACK TOWARDS 2020 TARGETS
I N V E S T O R C A L L – B A N G K O K , 2 9 M A R C H 2 0 1 8
C O M M PA C K
PUBLIC INFORMATION BUT CONTENTS SUBJECT TO COPYRIGHTEPS COMM PACK® are publications of Electro Power Systems S.A. (EPS). The information contained therein are not confidential but all the contents are subject to copyright. As a result, the contents (including by way of illustration only, pictures, charts, etc.) contained therein cannot be sent, copied, reproduced, distributed, released or disclosed, directly or indirectly, in whole or in part, to any person (whether internally or externally to your company) unless authorized in writing by EPS. Non-compliance with these restrictions will result in the violation of legal restrictions in any jurisdiction in which EPS is active.
DISCLAIMER This document does not constitute an offer to sell, or a solicitation of an offer to buy, EPS shares. If you wish to obtain more comprehensive information about EPS, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.electropowersystems.com). This document may contain guidance and some forward-looking statements. Although the Company considers that these statements and guidance are based on reasonable hypotheses at the date of publication of this document, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements. For the risk factors behind please refer to the Registration Document 2016 (also available in English on our website: www.electropowersystems.com).
© Copyright 2017 EPS All rights reserved
STRICLTY CONDIFIDENTIAL
2
STRICLTY CONDIFIDENTIAL
Consolidated Revenues
FY2016 FY2017
9,9
7,1
+ 40%
Gross Margin
FY2016 FY2017
40%46%
EBITDA
FY2016 FY2017
-1,7-4,0
+ 56%
Operating Loss
FY2016 FY2017
-5,9-8,6
+ 31%
Pipeline
FY2016 FY2017
150
100
+ 50%
Project Backlog
FY2016 FY2017
25,1
6,5
+ 286%
3
(*) Net of the €3,1mln IFRS2 accounting of the EIB Warrants
*
Revenuesand
Other Income
GrossMargin
EBITDA EBIT Net Income (Loss)
666
10
16
COGS PersonnelCosts
Operating and
R&D expenses
D&A and ESOP
Non-recurringExpenses
Financials&Taxes
0,1
2,7
4,4
6,5
10
1610,0 (6,0)
4,0 (3,5)
(2,2) (1,7)(1,6)*
(2,6)
(6,0) (5,9)**
P&L 2017 waterfall
*(1,3) D&A *(0,3) ESOP Plan
4
Data in (€ mln)
** Net of the €3,1mln IFRS2 accounting of the EIB Warrants
STRICLTY CONDIFIDENTIAL
Data in (€ mln)
1%4%8%
87%
EMEA AFRICAAPAC AMERICAS
By Region of Installation
13%
26%
61%
Grid Support MobilityMicrogrids
By Sector
6%2%2%2%2%6%
7%
8%
8%
16%
16%
25%
ENELRFINECSOMNPSEdisonTerna
Advanced Devices Telecom Hitachi/SiemensFCAToshibaOthers
By Customer
Revenues FY2017 (€9,9mln)5
STRICLTY CONDIFIDENTIAL
6Personnel Costs & R&D Personnel Capex
19%
15%
65%
R&D Personnel (€1,7 mln)Other Intangible Assets – IP, ERP, AI (€0,4 mln)R&D Test Equipment, Prototypes and Certification Process (€0,5 mln)
CAPEX Investments
in 2017 €2,6 mln
Personnel Costs & Related Indirect Costs R&D Personnel Capex 31% HR
Capitalized as R&D
27%with a PhD
or MBA equivalent
92 people
* Indirect Personnel costs: Including only travels and expenses Data in (€ mln)
PERSONNEL COST
INDIRECT PERSONNEL
COSTS*
5,2
4,4
R&D PERSONNELCAPEX
5,2
0
4,6
4,6
0,5
5,2
(1,7)3,5
STRICLTY CONDIFIDENTIAL
7
11%
21%
33%
34%
Technology & InnovationOperations & ProductionGeneral ManagementBusiness Development
Personnel Costs
€4,6mln
Personnel 2017 by Cost Center
15%
36% 27%
21%
Indirect PersonnelCosts
€0,5mln
Data in (€ mln)
STRICLTY CONDIFIDENTIAL
2%4%5%
19%
25%
45%
Turin (Rivoli)Milan (Bovisa)Valtellina (Delebio)Milan (Tricolore)ParisValle d'Aosta
8Other Operating Expenses 2017 (€2,1mln)
Data in (€ mln)
6%7%
21%
67%
External assembling activitiesInstallations activities outsourcedPower House installationsOthers
Installation Costs “Make or Buy” €0,7mln
Rents €0,3mln
50%
10%
12%
28%
Legal Advisors (External Advisors)HSEQ AdvisorsCommunication AdvisorsAudit services
Legal and other consultancy costs
€0,2mln
7%14%
15%
21%
15%
13%
14%
InsuranceBoard CompensationTaxes and Bank commisionsFuel & TransportationMaintenanceVoice & DataOthers
Other Expenses €0,9mln
STRICLTY CONDIFIDENTIAL
Distribution & Business Development
Legal Accounting & Certification
Travel, Communication and Roadshow Other Non-recurring
36%40% 17% 8%
9Non-recurring Expenses (€2,6mln)
13%
14%
30%
43%
Analyst CoverageInvestor RelationsPress AgencyOthers
Communication and Roadshow expenses
€0,4mln
4%15%
17%
19%17%
28%
Legal Support DD and DDRIFRS Independent AdvisorsTemporary Admin SupportExtra Auditing expensesCertification AdvisorsOthers
Legal Accounting & Certification €0,9mln
6%9%
8%
20%
29%
29%
Installations services (Telco)Gas Engineering (Telco)Business Development (Partners)External Project ManagementExternal LogisticsOthers
Distribution & Business
Development€1,0mln
15%
47%
38%
HR SupportR&D activitiesOthers
Other Non Recurring expenses
€0,2mln
STRICLTY CONDIFIDENTIAL
Our Mission, since the beginning, today solid more than ever10
The Group’s mission is to unlock the energy transition, by mastering the intermittency of renewable energy sources. Being pioneer of Hybrid Storage Solutions, transforming intermittent renewable sources into a stable power source. And enabling renewables to power society: reliably, affordably and sustainably.
STRICLTY CONDIFIDENTIAL
Human Resources (FTE)
Our 4-year People story
25
50
75
100
2013 2017
Source: EPS Annual Financial Report and update as at 07.09.2017
11
27%with a PhD
or MBA equivalent
92people
50%on IEEE
150+ publications
13 hydrogen experts
STRICLTY CONDIFIDENTIAL
100%Storage Systems 100%Microgrids
Grid Support Utility-Scale and behind the meter
Independent Power Generation and weak-grids stabilization
Source: bnef.com
Outlook: Addressable Markets 12
65%100%
45 GW global 2016-2024
14 GW EMEA
65%100%
600 GW global to 2017
29 GW Annually
STRICLTY CONDIFIDENTIAL
Microgrids generation capacity Grid-Support Solutions* Energy Storage
APAC Europe Africa Americas
2017 Installed Base and systems under commissioning
1%23%
6%
70%
40 MW
89%
11%
55 MW
4%7%
73%
16%
67 MWh
Source: data as at 31.12.2017
13
* including utility scale and behind-the-meter solutions
STRICLTY CONDIFIDENTIAL
Cerro Pabellon (Chile) 1 MWh Hydrogen enabled microgrid IN OPERATIONS, COMMISSIONED, EXPERIMENTAL PHASE PASSED
Coober Pedy (Australia), 12 MW microgrid IN OPERATION SINCE H2 2017
2017 Operational HighlightsMICROGRIDS
14
14
Semakau Island (Singapore),2MWh Hydrogen P2P System COD EXPECTED IN H2 2018
STRICLTY CONDIFIDENTIAL
15
Giannutri Smart Island (Italy), 200kW, COD EXPECTED IN H1 2018
2017 Operational HighlightsSMART ISLANDS
REMOTE will develop 3 microgrids, all based on the integration of RES, batteries and hydrogen-based energy
storage solutions: • Ginostra Smart Island, 2MWh (Italy)
• Off-Grid Microgrid in Serres, 1MWh (Greece)• Off-Grid Microgrid in Ambornetti, 0.5MWh (Italy)
STRICLTY CONDIFIDENTIAL
16
Litoral, 20 MW utility-scale, COD EXPECTED IN H1 2018
Altomonte, 0.5 MW utility-scale, COD EXPECTED IN H1 2018
2017 Operational HighlightsUTILITY-SCALE STORAGE SYSTEMS
STRICLTY CONDIFIDENTIAL
May
2014Industrial and
Financial Restructuring
completion
April
2015IPO in ParisManagement
appointment
2005Politecnico SPIN-OFF
Revenues
Order IntakeEnergy Storage and microgridsBusiness Model validation
Scale-Up Pivoting
in the Energy MarketsTechnology Incubation
Research funded by top European VCs investors
October
2013
17
December
2015ABB + acquisition
FY2014 FY2015 FY2016 FY2017 FY2018
22,8
17
12,1
1,20,1 0,0
10,0
7,1
1,20,8
*
STRICLTY CONDIFIDENTIAL
At the lowest cost with the highest quality
EU CHALLENGES
Decarbonization
Market Efficiency
Security of Supply
SECTOR TRENDS
Intermittent RES increase
Thermal phase-out
Technological development
Energy efficiency
SYSTEM NEEDS
Flexibility: RES integration
Security: of the whole supply
Adequacy: at system level
Not a coincidence: the European showcase as a cornerstone for the global energy transition
STRICLTY CONDIFIDENTIAL
SOLAR +17.6GW
WIND +4.3GW
6
28 29 3235
4438
577 4 7 8
6256
505x
+ 28 GW
2020 Low High 2025
Low High 2030 2009 2016 Low High
20202025 2030
-15 GW-12 GW
2011 20132009 20162011 2013
RES GROWTH (GW)2009 TO DATE TOMORROW
THERMAL PHASE OUT (GW)2009 TO DATE TOMORROW
Source: Terna estimates for Italian Electricity Market, 27 September 2017
87%60%
39%21 MAY 3:00pm 21 MAY MAY
Hourly Daily Monthly
RES load coverage H1 2017
26% of the European storage installed capacity has been developed by Ternain Italy
SEN3 Targets 50% require further deployments of 51GW solar and 17GW wind
Not a coincidence: the Italian showcase, Energy Transition for real19
STRICLTY CONDIFIDENTIAL
100%
100%100%
100%
Not a coincidence: focus in Emerging Economies because of the indisputable market potential
$22bln
Annual Market just for Capacity Additions
($190bln to 2030 according to GTM)
600 GW 29 GW
Annual Capacity Additions
Potential Investment for replacement with microgrids
$960bln
Current installed fleet of diesel generation
100%2.5blnPeople
Source: bnef.com, GOGLA and BCG integrated with EPS analysis
20
100%$1.2bln
Annual spending in diesel fuel per GW
3-5 years paybackfor decentralized clean energy
21
Not a coincidence: out partner is the largest independent power producer in the world, and strongly committed to the Energy Transition
Find the right partner. Set ambitious targets. Play hard. Work harder.
Simone Moro, February 27th 2016, Nanga Parbat, 8,126 meters a.s.l, first winter ascent ever, 3rd attempt
as sometimes it is the people no one can imagine anything of
who do the things no one can imagine.Alan Turing
C O M M PA C K
STRICLTY CONDIFIDENTIAL
23PUBLIC INFORMATION BUT CONTENTS SUBJECT TO COPYRIGHTEPS COMM PACK® are publications of Electro Power Systems S.A. (EPS). The information contained therein are not confidential but all the contents are subject to copyright. As a result, the contents (including by way of illustration only, pictures, charts, etc.) contained therein cannot be sent, copied, reproduced, distributed, released or disclosed, directly or indirectly, in whole or in part, to any person (whether internally or externally to your company) unless authorized in writing by EPS. Non-compliance with these restrictions will result in the violation of legal restrictions in any jurisdiction in which EPS is active.
DISCLAIMER This document does not constitute an offer to sell, or a solicitation of an offer to buy, EPS shares. If you wish to obtain more comprehensive information about EPS, please refer to the public documents registered in France with the Autorité des Marchés Financiers (which are also available in English on our Internet site: www.electropowersystems.com). This document may contain guidance and some forward-looking statements. Although the Company considers that these statements and guidance are based on reasonable hypotheses at the date of publication of this document, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements. For the risk factors behind please refer to the Registration Document 2016 (also available in English on our website: www.electropowersystems.com).
© Copyright 2017 EPS All rights reserved