Record Results, Significantly Expanded Power Generation and Pipeline

Edisun Power Europe AG / Key word(s): Annual results

25-March-2022 / 07:00 CET/CEST
Publication of an ad hoc announcement pursuant to Art. 53LR
The issuer is solely responsible for the content of this announcement.

Ad hoc announcement pursuant to Art. 53LR
Zürich, March 25, 2022

Record Results, Significantly Expanded Power Generation and Pipeline

– Turnover up by 38.8% to CHF 17.16 million (+37.3% in local currency)

– EBITDA up 49.9% to CHF 13.04 million

– Net profit up 36.9% to CHF 4.51 million

– Electricity production up 152.8% to 120,254 MWh

– Significantly expanded PV pipeline from 783.6 MW to 940.6 MW

– Stable dividend of CHF 1.10/share proposed

– Proposal of the Board of Directors to increase the ordinary capital up to CHF 150 million

– Extension of the business model and increase of the future dividend

2021 was a record year for Edisun Power in several respects: new heights were reached financially, in terms of production, the connection of the large-scale Mogadouro power plant in Portugal (49.0 MW) brought the solar energy production at new levels, the second Portuguese large-scale Betty plant (23.4 MW) is under construction and strong growth is also expected in the future with the acquisition of other photovoltaic projects totaling 783 .6MW. The Board of Directors proposes to the General Meeting the payment of an unchanged dividend of CHF 1.10 per share. The main objective of Edisun Power is the further development and construction of the pipeline and its financing. To this end, the Board of Directors is proposing a substantial increase in share capital of up to CHF 150 million.

Sales of new records
As expected, total Group sales jumped 38.8% to CHF 17.16 million (2020: CHF 12.37 million). In local currency, the increase in sales was 37.3%. These record sales were supported by the start of production in the new Portuguese market with the large-scale Mogadouro power plant (49.0 MW, grid connection on December 30, 2020) and the good weather conditions in Southern Europe. At 120,254 MWh, total electricity production increased by 152.8% compared to 2020. This volume effect and a slightly stronger average euro exchange rate (+1.1%) have more than compensated for the much weaker electricity price mix (-43.1%) and led to a strong increase in revenues from the sale of electricity by 45.3% to CHF 17.06 million (2020: CHF 11 .74 million).

The sharp drop in the electricity tariff mix results from the connection of the large Mogadouro power station, which can no longer benefit from subsidized compensation for the electricity injected into the network (feed-in tariffs).

Edisun Power particularly benefited in the second half from the sharp rise in electricity prices and good weather conditions throughout Southern Europe. The total income of the plants in Spain increased by 17% and that of the Italian plant by 45%, the latter also thanks to a repowering of the entire solar plant. Photovoltaic power plants in Central Europe have failed to replicate these positive results. Largely due to poor weather conditions, revenues fell by 11% in Switzerland, 7% in Germany and 1% in France.

Profitability at a new level
Thanks to the economies of scale resulting from the connection of the new large-scale plant and the essentially smooth production of the plant, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 49.9% to CHF 13.04 million (2020: CHF 8.70 million) . The EBITDA margin increased from 70.3% to 76.0%. With an EBITDA margin of 88.7%, the new large-scale factory even surpassed the previous Swiss factory margin record of 86% without benefiting from subsidized feed-in tariffs.

Depreciation increased to CHF 6.08 million due to the new large-scale plant (2020: CHF 4.45 million). A full value adjustment had to be carried out on an existing plant in France due to a smoldering fire and security risks. The resulting shutdown of electricity production and the impairment of the residual book value weighed on the result by CHF 0.3 million. In addition, the one-off positive effect of reversal of value adjustments of CHF 0.6 million the previous year was not repeated.

The operating result (EBIT) therefore increased slightly less than the EBITDA by 39.9% to CHF 6.72 million, with an EBIT margin of 39.2% (2020: CHF 4.80 million).

Net finance costs increased by 16% to CHF 1.2 million (2020: CHF 1.04 million). Edisun Power continued to benefit from interest-bearing project advance payments and a one-off interest payment due to the delay in the start of construction of power plants in Portugal for a total amount of CHF 2.2 million. This was offset by an expected increase in income taxes, which increased by more than 112.4% in the year under review to CHF 1.01 million (2020: CHF 0.48 million).

Overall, net profit increased by 36.9% to CHF 4.51 million (2020: CHF 3.29 million), which, based on the weighted average number of shares outstanding, corresponds to a profit per share of CHF 4.35 (2020: CHF 3.18).

With this annual result, Edisun Power Group has so far coped well with the difficult COVID-19 crisis, impressively underlining the resilient nature of its business model in the promising renewable energy market.

Balance sheet growth with new factories
The Group reached a new milestone in 2021 with the acquisition of new photovoltaic power plants under development totaling 783.6 MW from the Smartenergy group. This aims to further accelerate Edisun Power’s strategic focus on large-scale power plants to make a significant contribution to climate protection. Edisun Power has developed a remarkable portfolio (composed of projects in development or in operation) of more than 1 GW with these latest investments. The balance sheet total thus doubled by 100.4% to CHF 405.40 million. The level of debt has also increased due to the financing of new factories, so that the equity ratio has fallen to 19.8% (2020: 40.4%). This circumstance is resolved by the capital increase proposed by the Board of Directors (see below). A favorable impact is the fact that no interest expense will be incurred until final payment of the residual purchase price for the new project pipeline to Smartenergy Group.

Extension of the business model and increase in the future dividend
Going forward, Edisun Power will increasingly act as an active acquirer and seller of solar projects and assets. This “buy and sell” business model simplifies pipeline financing, enables high return and a lower risk profile. With this realignment, the board intends to significantly increase the dividend going forward.

Outlook for the current year and capital increase
The 2022 financial year looks very promising from an operational point of view. The main tasks for the current financial year are the construction of the Portuguese power plants, the further development of the portfolio of acquired projects of 783.6 MW and the management of its financing.

By the middle of the year, Edisun Power expects the large-scale Betty plant in Portugal with 23.4 MW to be connected to the grid and the start of construction of the large-scale Quinta plant da Seixa with 33.8 MW. As a result, revenues from the sale of electricity will increase considerably from the second half of 2022. As a precaution, the outlook for the year remains difficult: geopolitical developments could lead to further shortages of solar modules, delays in the construction and difficulties in financing projects.

In order to finance its growth, the Board of Directors will propose to the General Meeting a significant increase in the ordinary share capital up to CHF 150 million by issuing a maximum of 1,200,000 new shares with a nominal value of CHF 30 per share. Further details will be communicated in due course.

Dividend proposal
Thanks to the excellent results and the large project pipeline, the Board of Directors looks to the future with optimism and proposes the payment of a stable dividend of CHF 1.10 per share. The dividend is to be increased significantly in the future with the extension of the business model (see above).

General meeting of shareholders scheduled
The Board of Directors has decided to hold the Ordinary General Meeting of April 22, 2022 without the physical presence of the shareholders. In order to exercise their shareholder rights, shareholders must authorize the independent proxy to represent them.

Edisun Power’s 2021 annual report is available on the Group’s website at
http://www.edisunpower.com/en/home-en/investors-en/reporting

For more information
Dr René Cotting, +41 79 766 88 33, [email protected]

Edisun Power Group
A listed European producer of solar energy, Edisun Power Group finances and operates solar installations in several European countries. Edisun Power began its involvement in this sector as early as 1997. The company has been listed on the Swiss stock exchange since September 2008. Edisun Power has accumulated extensive experience in the realization and acquisition of national and international projects. Currently, the company has a total of 38 solar energy installations in Switzerland, Germany, Spain, France, Italy and Portugal.

Key figures of the Edisun Power group at 31.12.

Additional Features:

File: Ad hoc-Mitteilung-ESUN-25.03.2022-Jahresabschluss Englisch

End of the ad hoc announcement