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Press release

PNE WIND Group presents report on the 2014 financial year

Cuxhaven - The 2014 fiscal year was very eventful for the PNE WIND Group and our operations reported many successes. Rarely before in our company history were we able to complete or start construction on such a high volume of onshore wind farms within one year. The financial figures will, however, only reflect these developments fully in the coming years.

The PNE WIND Group achieved an EBIT of euro 2.7 million, with turnover of euro 211.3 million. The Group reported consolidated undiluted earnings per share of -0.22 euro. In 2013, the Group realised revenues of euro 144.0 million, an operating result (EBIT) of euro 43.6 million and undiluted earnings per share of euro 0.80. Although a much higher number of onshore projects were realised in 2014 –134 MW vs. 32 MW in the previous year – the 2014 results were below those of the prior year owing largely to the results in 2013 being very positively influenced by the receipt of milestone payments from the offshore business totalling euro 45 million.

According to accounting principles of the German Commercial Code (HGB), PNE WIND AG recorded a net income of euro 4.0 million (prior year: euro 36.6 million) and the retained earnings amounted to euro 63.3 million on December 31, 2014.

The reason for the Group result arises from the so called YieldCo and the negative impact on earnings in connection with the majority holding in WKN AG, which in particular affected the consolidated financial statements. With the YieldCo, projects are being, as planned, initially realised as a single portfolio which will be sold upon commissioning. The results achieved from the individual projects sales are therefore being delayed into the future.

Despite the unplanned write-down, the PNE WIND Group remains well positioned for the future. At the end of the year, 77 MW of projects were under construction, one of which is the “Chransdorf” wind farm in Brandenburg with 57.6 MW. This wind farm will represent an essential part of the newly formed YieldCo’s initial portfolio.

We are also expanding our international activities and in France, a 12 MW wind farm was completed and handed over. Further projects in France (10 MW), the United Kingdom (38 MW), USA (183 MW), Romania (102 MW) and Poland (32 MW) are permitted. In the United Kingdom, the PNE WIND Group was recently successful in a tender process for one of our wind parks and we are aiming to partner with a financially strong partner to realise our projects there.

New milestones were achieved within the offshore segment and two of our offshore projects completed important development steps. The hearings for the “Gode Wind III” and “Atlantis I” were successfully completed and completing the next development step should result in the building permits being issued. According to the current plans, wind power turbines with a total nominal capacity of approx. 2,640 MW may be constructed in our own offshore wind farms – these projects represent a substantial growth potential for our enterprise.

Martin Billhardt, CEO of PNE WIND AG highlights, “a part of our strategy is to permanently search out new sales channels and investors for our projects. We continued this ongoing development of our business model with the establishment of our new YieldCo subsidiary in 2014. The proceeds out of the capital increase and convertible bond placement - approx. euro 40 million - provide sufficient capital to finance the equity portion of the wind farms which will be placed into the YieldCo. In this way, the capital measures completed in October 2014 marked the start of our YieldCo strategy.”

Apart from increasing the earnings potential and strengthening the Group’s competitive position, the objectives of the YieldCo business are also to establish a new subsidiary (YieldCo), which offers stable and attractive dividends to its investors. The YieldCo represents a classic win-win situation offering large potential both for PNE WIND and for the investors of the YieldCo.

As the first German company to establish a YieldCo, the PNE WIND Group is breaking new ground in Germany. “By adapting this strategy, we are expanding our business model and providing the Group with lasting and long term benefits. We have, however, also accepted that this approach leads to higher investments and a delay of our earnings in 2014 and 2015 into 2016. This - as well as the continued upfront investments in the development of the onshore and offshore project pipeline in Germany and abroad - is reflected in the operating results of the year under report” comments CEO Martin Billhardt.

Through the establishment of our YieldCo business, we will open up considerable new possibilities for the Group. Our onshore and offshore project development pipelines are well filled and the higher implementation rate of our projects promises continuous returns. Therefore, we confirm our forecast of achieving a cumulative EBIT of euro 110 to 130 million for the 2014 to 2016 financial years and see the prospect of increasing our forecast upon the successful implementation of the YieldCo business.

Against this backdrop, the Management Board and Supervisory Board of PNE WIND AG decided to propose to the Annual General Meeting that there should not be a dividend payment for the 2014 financial year. The Management Board and Supervisory Board believe that strengthening the equity should have preference over a dividend distribution for the previous fiscal year. It is PNE WIND AG’s intention to distribute a dividend beginning next year again.


Cuxhaven, March 27, 2015


Publication and Reprint free of charge; please send a voucher copy to
PNE WIND AG.


Attention editorial offices: For further questions please contact

PNE WIND AG
Rainer Heinsohn
Head of Company Communication
Phone +49 (0) 4721-718-453
E-Mail: mailto:rainer.heinsohn@pnewind.com


PNE WIND AG
Peter-Henlein-Straße 2 - 4
D-27472 Cuxhaven

Internet: http://www.pnewind.com




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