PNE AG
XETRA:PNE3
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PNE AG
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Good day, and welcome to the PNE AG Q2 Report 2018 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Markus Lesser, CEO. Please go ahead, sir.
Hello. Good morning for the half-year conference here in 2018 for the first time as PNE AG, not anymore as PNE WIND AG. As decided on the last AGM, we changed the name in respect to our new strategy. And if I look to the first half year, I see a lot of work. We did following up our SCALE UP process. We worked on structural and -- especially on cost-reduction issues like the refinancing of EUR 50 million -- the EUR 50 million bond. We paid back EUR 100 million. We, just right now, could take over 100% of the shares of WKN AG to follow up on synergies. Now in the next weeks, we're going to change it from an AG to a GmbH to cut costs. Additionally, we invest in our 200-megawatt portfolio. Just right now, Kührstedt with 43 megawatts in operation and additional 22 megawatts is under construction. Third of all, we strengthened our conversion works, in that respect that we follow up and made additional consultant works on financing, construction and development. The third project in Germany and in Sweden had been done like this, in this method, and we are successful in this. Additionally, we worked on our project development pipeline, and we had success in all tiers in onshore as well as in offshore as well, as I said already in consultant business.If you look to the Page 4, you see that we completed 37.5 megawatts in Germany whereby 2 projects, Looft and Wangerland, are consultant projects as mentioned before. In the moment, we have 66 megawatts under construction. One project, Gerdau-Schwienau with 22 megawatts is a project, which were related to our project portfolio, 200 megawatts. Laxaskogen, a project in Sweden, and additionally a project in France are the other projects. It means that we have our successes in foreign countries as well.New permits, we got already for 42 megawatts, and we win already tenders of 49 megawatts, which can be -- we started already with Gerdau-Schwienau and Schlenzer and Kittlitz will [indiscernible] soon with the construction. In the offshore business, we got a milestone payment of -- for Gode Wind 3 of EUR 4 million from Ørsted, which was a good success. And Gode Wind 4 had been successful in the offshore tender in this year. The construction of Borkum Riffgrund started, which means that we expect this year a EUR 4.1 million milestone payment for this project because this is -- this payment we will get after the first wind turbine had been completed and commissioned.So as mentioned already, if you look to the financial highlights on the next slide, you see that we are on a good way to get our outlook done. We're following our plan, the EBITDA at EUR 8.7 million and an EBIT at EUR 4.1 million, showing that we are on a good way. The earnings increase on a year-on-year basis is significant and we have to see that it is in the same time when we do investments in our project portfolio. And we're working heavily on our SCALE UP strategy. So we filed our resolutions in -- on the AGM in 2018, and if we look back, the dividend of EUR 0.04 had been paid. And as I mentioned already, PNE WIND became PNE. If you look to the refinancing, it was a very successful refinancing. We did -- we got EUR 50 million corporate bond with an attractive coupon of 4% interest rate. And to see only interest in mind, what does this mean? Just right now, it is the cheapest coupon in a Mittelstand [ underlier ] ever. This shows a lot of trust to our company and to our strategy. It was the first time that a EUR 100 million bond we paid back that 8% interest rate was cut down by half. We paid back in June EUR 100 million. And in total, we can see that the financial basis remains still strong. The cash position is still high on EUR 114.9 million. This is enough to follow up on our strategy. The equity ratio is very strong at 53%. And the liabilities have been reduced by EUR 54.4 million. That's why we say we still stay with a positive outlook of EBITDA -- EBIT, EUR 10 million to EUR 16 million and EBITDA to EUR 20 million to EUR 26 million at the end of this year.Going a little bit deeper. If you look to the onshore development, we have still a pipeline at 4.7 gigawatts. We see that the developments in Germany are ongoing, part of it I explained already. Important to see is that we put a project in France in operation with Saint-Martin, that we have another project with 19.2 megawatts under construction and that we got a permit for another project. So this pipeline in France is very valid and is on a good way and a good mood -- and we are in good mood that this is ongoing in the future. So remarkable is that we have 69 megawatts on owned wind farms currently in operation whereby we have to see that we have, we've got Gerdau-Schwienau, a project of 22 megawatts with the repowering project, which will cut this 69 megawatts by 22 megawatts.In the offshore business, as I mentioned before, Gode Wind 4 successful in the offshore tender, which just shows again how high our quality is. And the construction of Borkum Riffgrund 2 has started. Everybody who came to Cuxhaven could see the big parts, which had been collected here and built here in the fabrication in Cuxhaven for this Borkum Riffgrund project. From our point of view, we were very successful issuing the with the commissioning of the first machine, we will get our milestone payment of EUR 4.1 million. We are selective in doing our consultant business with Kührstedt and Vattenfall. And related to the regulatory changes, we see that the [ constitutional ] complaint is still ongoing, so we see that the court takes us serious and so we are still in very good mood that this will become positive development. Very important with our payment of Gode Wind 3, we have a next successful result of our businesses and business already in the business in the past with slightly above EUR 4 million of payment this half year.If you look to the income statement. As I mentioned already, the main points had been the payment of the milestone payment of Gode Wind 4, the buildup -- the building up of the wind farm portfolio 2020 where we have already earnings accrued, which are not yet shown. In the moment, we are at EUR 18.8 million whereby EUR 6.5 million are in the first half year of 2018 had increased so -- and the main point is this will become valid at the point of sale of the portfolio. Another important point is the power generation due to the fact that we have now 69 megawatts in the moment in operation. We have around about EUR 7 million power generation sales, which supports the EBIT situation.Looking to the balance sheet. We see that we have a strong -- still a strong liquidity position with EUR 114.9 million and this is remarkable, especially in the moment when we are investing very heavily in projects like -- for our portfolio and in our strategy. We have a noncurrent debt at EUR 126.2 million where it is important to know that we could cut with the new bond our interest rate payments by EUR 6 million, from EUR 8 million to EUR 2 million per year. And the liabilities of paying is always remarkable to -- you need to know that we have -- these are all liabilities, which are nonrecourse liabilities of EUR 64.3 million -- or mainly EUR 64.3 million, and this has nothing to do with the company itself.If we look to the outlook. End of the year, we see that there are some further permits will come up in the near future in several markets, especially in Germany. We see that the markets like France with our working and ongoing in a moment, we are still in the sales process of Chilocco wind farm and we are pretty sure that we will get it done this year. We look to new markets following our SCALE UP strategy like Panama and perhaps for Latin America and others. In offshore wind power, we are still working on projects in the East Coast. And in total, we are looking on projects where we did obviously did a bit of around 6.5 gigawatts. The strategy, SCALE UP, I already said where we are, but the next half we have -- is that we reorganize us in that way that we put PNE and WPN in one PNE group organization to lower cost. And this is the internal view. And on the other side, that we see that the first products become available in 2018. So with the projects Wangerland, Looft and Laxaskogen, we show that our consulting business is increasing, so the first products will be seen very short. And with our VPC corporation, which is an Eastern -- former Vattenfall service business, we see potential for further businesses in Eastern Germany as well.So therefore, we see -- together, we're looking for opportunities for inorganic growth. In corporations, we see we are in good mood to get our guidance done and that our strategy is in a good way, a good -- on a way to be finalized. So from that point, I say it again, the positive outlook, we see EBIT of EUR 10 million to EUR 16 million and EBITDA of EUR 20 million to EUR 26 million. We confirm it today again.Yes, thank you very much. That was my short overview about the first half year. I'm prepared to answer your questions.
[Operator Instructions] It appears there are no questions at this time via the telephone. Mr. Lesser, I'd like to turn the conference back over to you.
So since there are no questions in the moment, thank you very much for your attention and your interest to the PNE AG. In the meantime, our Investor Relations manager we'll be there to answer your questions if you have any in the future. Thank you.