2020

26.03.2020 – Edisun Power Europe AG

Edisun Power Europe AG: Record results and crucial strategic decisions

Edisun Power Europe AG / Key word(s): Annual Results
Edisun Power Europe AG: Record results and crucial strategic decisions

26-March-2020 / 17:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Ad hoc press release
Zurich, March 26, 2020

Record results and crucial strategic decisions

- Revenue growth of 3% to CHF 14.26 million

- EBITDA increased 1% to CHF 10.34 million

- Net profit increased 18% to CHF 3.60 million

- Proposal to raise dividend from capital contribution reserves by 10%
to CHF 1.10 per share

By purchasing a 206 MW photovoltaic project pipeline and successfully
carrying out a capital increase of over CHF 50 million, Edisun Power has
made some crucial strategic decisions in 2019 to set course for the future.
From a financial perspective, the year under review was also concluded very
positively. Thanks primarily to first-time income from the project
development business, another record profit of CHF 3.60 million was achieved
despite lower electricity prices. The dividend is to be raised 10% to CHF
1.10 per share in light of these encouraging developments.

Income from electricity stable despite lower electricity prices
Income from electricity generation declined 1% year on year to CHF 13.55
million (2018: CHF 13.75 million) due to lower electricity prices in Spain
and Italy, even despite a 10% increase in electricity production to 49'528
MWh. Income in Spain was down EUR 0.38 million compared to the previous year
due to lower electricity prices. That was compensated to a certain extent by
the 12 MW Requena plant, which went online for the first time in March 2018
and had its first full year of production in 2019.

Group's revenue increased by 3% to CHF 14.26 million (2018: CHF 13.87
million) thanks to income of around CHF 0.62 million from the project
development business. Local-currency growth amounted to 6%.

Strong profitability
Operating costs were up by around CHF 0.27 million, or 7% year on year,
since the Requena plant had been in operation for 12 months for the first
time and due to higher costs incurred in connection with planning and
implementation work on the five new projects in Portugal. Thanks to
additional income from the project development business, earnings before
interest, taxes, depreciation and amortization (EBITDA) still rose 1% to CHF
10.34 million (2018: CHF 10.22 million). The EBITDA margin contracted
slightly from 73.7% to 72.5%.

Depreciation and amortization remained essentially unchanged at CHF 4.57
million (2018: CHF 4.55 million). Past impairments in the amount of CHF 0.18
million were reversed in Spain and France. Operating profit (EBIT) thus
increased by 5% to CHF 5.95 million (2018: CHF 5.68 million).

Financing costs declined 14% to CHF 1.99 million (2018: CHF 2.38 million),
mainly due to scheduled repayments of existing project financing
arrangements and the lower CHF/EUR exchange rate. This was offset by an
expected increase in income taxes, which rose by more than a third to CHF
0.37 million (2018: CHF 0.26 million) in the year under review, due to the
fact that the majority of tax loss carryforwards have now been depleted.

Overall, net profit rose again by 18% to CHF 3.60 million (2018: CHF 3.04
million), which corresponds to earnings per share of CHF 5.96 (2018: CHF
5.93).

Strong equity base
Encouraging profits, two capital increases from contributions in kind of CHF
8.61 million that were carried out within the scope of project acquisitions
as well as the ordinary capital increase of CHF 51.88 million completed at
the end of November increased consolidated equity to CHF 79.81 million
(2018: CHF 20.19 million) despite the considerable year-on-year fall in the
euro and put the equity ratio at 45.4% (2018: 21.3%). The equity ratio will
decline, however, as projects are implemented and the balance sheet grows as
a result.

Proposals to the Annual General Meeting
Based on this encouraging development, the Board of Directors has decided to
propose to the Annual General Meeting on April 24, 2020 an increase in the
dividend to CHF 1.10 (2019: CHF 1.00). The dividend will be in the form of a
distribution from capital contribution reserves.

Scheduled General Meeting of Shareholders
The Board of Directors has decided to hold its Ordinary General Meeting of
Shareholders as planned on April 24, 2020. As a result of the measures taken
by the Swiss Federal Council to fight the coronavirus, in order to exercise
shareholders' rights, shareholders must mandate the independent proxy to
exercise their rights. Physical participation is excluded.

Outlook for the current year
From a financial perspective, the current year will be one of transition.
Although the plants are producing normally, lower electricity prices must be
expected in Spain and Italy due to the coronavirus pandemic. In addition,
delays in the completion of the new projects in Portugal cannot be ruled
out. However, from today's perspective, the first Portuguese project is
expected to be connected to the grid towards the end of the year. The other
four projects are expected to be completed in the course of 2021. Finally,
the Group's tax burden will continue to increase. All in all, at the current
euro exchange rate, the Group is expecting a net result of CHF 2.8 million
for the current financial year.

Edisun Power's 2019 Annual Report is available on the Group's website at
http://www.edisunpower.com/en/home-en/investors-en/reporting

For more information
Rainer Isenrich, CEO, +41 44 266 61 21, info@edisunpower.com
Reto Simmen, CFO, +41 44 266 61 29, info@edisunpower.com

Edisun Power Group
A listed European solar energy producer, the Edisun Power Group finances and
operates solar power installations in a number of European countries. Edisun
Power began its involvement in this sector as far back as 1997. The company
has been listed on the Swiss Stock Exchange since September 2008. Edisun
Power has amassed extensive experience in the realization and acquisition of
both national and international projects. Currently, the company owns a
total of 37 solar energy installations in Switzerland, Germany, Spain,
France and Italy.


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