VLTSA Voltalia

Turnover growth of +20% in Q4 2023Record volume of new capacity commissioningand confirmation of normalised EBITDA target1 for 2023

Fourth quarter with strong growth of +20%

• Energy sales: +16% driven by an increase in production compared to 2022 (+11% to 1.3 TWh)
• Services: up +24% (after eliminations) mainly driven by construction contracts for third-party clients in Ireland, in parallel with a particularly dynamic internal activity (eliminated in consolidation) at +50% due to the peak in own-account construction sites

Exceeding 2023 capacity targets

• Record level of commissioning during the second half: 662 megawatts, including 316 megawatts in Q4 alone
• Capacity in operation up +51% to 2.37 gigawatts, exceeding the target of 2.3 gigawatts announced in October 2023
• Total capacity at the end of 2023 at 2.85 gigawatts, well above the target initially set in 2019 at 2.6 gigawatts
• A major contribution to the energy transition with production equivalent to the electricity consumption of 5.5 million people

Confirmation of the 2023 normalised EBITDA target of around €275 million

• A doubling compared to 2022 and a fourfold increase compared to June 2019
• Major achievements in the second half of the year, including projects sales in France and Brazil

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in renewable energies, publishes its fourth quarter 2023 turnover.

"The year 2023 will mark the history of our company through the remarkable performances we have achieved thanks to the unwavering mobilization of the teams, whom I sincerely thank for their commitment. We reached a significant milestone by commissioning 795 MW, far exceeding the targets we set for ourselves in 2019. Our teams are already fully mobilized to achieve the group's ambitions by 2027. Beyond the financial successes, I would like to highlight the significant progress in the Group's non-financial performance, with ratings constantly improving, thus demonstrating our position as a major contributor to a sustainable energy future", comments Sébastien Clerc, CEO of Voltalia.

Fourth Quarter (Q4) and 2023 Turnover

ACTIVITY REVIEW

2023 turnover stands at €495.2 million, +6% compared to 2022 (at current and constant exchange rates). Energy sales and Services (after elimination) contributed 60% and 40% of 2023 turnover, respectively.

Q4 2023 turnover stands at €170.0 million, +20% compared to the fourth quarter of 2022 (at current and constant exchange rates). Energy sales and Services (after elimination) contributed 49% and 51% of the quarter's turnover, respectively.

ENERGY SALES

Operational indicators

2023 turnover from Energy sales reached €299.3 million, up +23% compared to 2022 (at current and constant exchange rates). The average EUR/BRL rate is 5.40 in 2023, compared to 5.44 in 2022.

For 2023, the production reached 4.3 TWh, compared to 3.7 TWh in 2022, up +18%. The production of 4.3 TWh corresponds to the electricity consumption of an equivalent of 5.5 million people (+12% compared to 2022).

The increase in production reflects the increase in operating capacity, which has increased by +51% since 2022, from 1.6 GW to 2.4 GW. At the end of 2023, total capacity (in operation and under construction) in Latin America represents 57% of the Group's total capacity, Europe 35% and Africa 8%. Solar capacity accounts for 66% of the total, wind capacity for 30% and hydro, biomass and storage capacity for 3%.

Q4 2023 turnover from Energy sales reached €82.9 million, up +16% at current and constant exchange rates, compared to the fourth quarter of 2022.

Analysis by country:

• In Brazil, production is up +3%. The contribution of new plants such as SSM3-6 and Canudos have had a positive effect. On the other hand, as announced4, the grid operator has capped the production of some power plants following the blackout on August 15th. This reduced Q4 production by around 180 GWh, in line with the Group's forecast. The curtailment effect has decreased over the months. Since the beginning of 2024, it has been negligible;
• In France, production is up 92%, benefiting from better wind and solar conditions and the production of power plants commissioned in 2022 and 2023 (Helexia, Sable blanc, Sud Vannier);
• In the other countries, production was up sharply overall, at +30%, with the full-year effect of the South Farm power plant (50 MW) in the United Kingdom and the commissioning of the Garrido complex (51 MW) in Portugal and Helexia's solar rooftops in Spain and Hungary (9 MW). The Karavasta power plant in Albania (140 MW), commissioned at the end of December, generates negligible turnover. Production remains broadly stable in Egypt and Jordan.

SERVICES

2023 turnover from Services for third-party clients (after eliminations) reached €195.9 million, down -12% (at constant and current exchange rates), while internal services (eliminated in consolidation) increased by x3.1 compared to 2022.

• The Development, Construction and Equipment Procurement segment for third-party clients was down -16% to €172.8 million, not including proceeds from projects sales5. The internal activity of this segment was up x3.4 compared to 2022;
• The Operations & Maintenance segment for third-party clients grows by 26% to €23.1 million, in parallel with internal activity which increased by +8%.

Q4 2023 turnover from Services for third-party clients reached €87.1 million, +24% (at current and constant exchange rates). Internal Services activity grows by +50% to reach €101.9 million.

The analysis by segment shows a strong growth in the Development, Construction and Equipment Procurement segment:

• The Development, Construction and Equipment Procurement for third-party clients segment posts an €80.6 million turnover, up +24%, reflecting the ramp-up of major construction contracts for third-party clients, particularly in Ireland. Internal turnover in this segment increases by +52% to €96.9 million, reflecting active construction sites;
• The Operations & Maintenance segment records a turnover of €6.5 million for third-party clients, up +20%. The capacity operated on behalf of internal and external clients amounts to 6.9 GW, up +58% compared to 2022, including 4.6 GW for external clients, up +63%.

2023 eliminations and Q4 2023 eliminations amount to -€400.0 million (multiplied by x3.1 at current and constant exchange rates) and -€101.9 million (+50% at current and constant exchange rates), respectively, reflecting the strong increase in internal services.

RECENT DEVELOPMENTS

• First megawatt-hours for the Karavasta solar power plant in southern Albania6

With a total capacity of 140 MW, all of the plant’s capacity is secured by long-term electricity sales contracts with public and private players.

• Commissioning of Logelbach solar power plant in France7

With a capacity of 12.1 megawatts, the Logelbach solar farm covers 12 hectares and has 21,384 solar panels. Annual production is equivalent to the electricity consumption of around 6,000 people.

• Commissioning of the Montclar solar farm in France8

The 3.7-MW Montclar power station, installed over an area of 4.2 hectares, comprises around 8,400 solar panels.  Construction was a challenge, as the site is located in a mountainous landscape with steep slopes at an altitude of 1,350 meters. 

• New progress in future clusters combining solar, wind and storage in Uzbekistan9

Voltalia has signed two agreements consolidating the development of its projects in the country: a protocol covering the next stages in the development of the Shurkul hybrid project (400 to 500 MW); and a protocol for the extension of the Sarimay project, providing for the hybridisation of the solar project with the addition of a further 100 MW of wind power, combined with battery storage solutions.

• United Kingdom for the supply of sustainable green electricity10

Co-op and Voltalia have jointly signed a 15-year power sales agreement for the entire output of the 34 MW Eastgate solar farm in North Yorkshire. Under the agreement, Co-op will source electricity for its premises, including food shops, distribution centres and funeral homes across the UK.

• Voltalia wins three wind farm projects in France with a total capacity of 73 megawatts11

The first winning project will be located in Côte d'Or (Bourgogne-Franche-Comté region), with ten wind turbines and a total output of 33.6 MW. The second will be located in Deux-Sèvres (Nouvelle-Aquitaine region), with seven wind turbines and a total output of 26.1 MW. Finally, the third winner will be located in Indre (Centre-Val de Loire region), with five wind turbines and a total capacity of 13.5 MW.

• Acquisition of a 55% stake in the 60-MW Mosselbanken solar plant in the Netherlands12

Located in Zeeland, the most southwestern province of the Netherlands, the Mosselbanken solar plant is located in the industrial port of Terneuzen. The plant revenues benefit from a Power purchase agreement (PPA) of 15 years.

• Sale of a 90 MW ready-to- build project to TODA in Brazil13

Voltalia sells a wind site to TODA, a Japanese conglomerate. This marks a continuation of a fruitful partnership, following a 28-MW wind project developed and built by Voltalia for TODA three years ago. The 90-MW project, called Casqueira, will include 15 wind turbines supplied by Nordex Acciona. Construction is expected to begin in the first half of 2024 and to be completed in the first quarter of 2025. The project will benefit from interconnection infrastructures already developed and built by Voltalia.

• Ethifinance awards Voltalia a gold medal for its extra-financial performance14

Voltalia, which has improved steadily in the Gaïa index since it was first included six years ago, has been awarded a gold medal for its ESG (Environmental, Social and Governance) performance, with a score of 73 out of 100 for 2022, up six points on last year.

2023 OBJECTIVES

At the end of 2023, Voltalia exceeded the total capacity (in operation and under construction) and operating capacity targets.

Initially set at 2.6 GW in June 2019, the total capacity target was revised upwards to 2.8 GW in October 2023. At the end of 2023 at 2.85 GW, total capacity has increased by a x2.8 since June 2019.

As for the capacity in operation, whose initial target was set at 2.3 GW in October 2023, it reached 2.37 GW at the end of 2023. Since June 2019, installed capacity has increased by x4.4, thanks in particular to a growth of +51% in 2023 alone.

Voltalia confirms the 2023 normalised EBITDA target15 of approximately €275 million. This performance represents a 2-fold increase compared to 2022 and a 4-fold increase compared to June 2019, when the target was set.

2027 AMBITIONS

Reaffirmation of the following ambitions:

• Owned operating and construction capacity: over 5 GW;
• Capacity operated on behalf of third parties: over 8 GW;
• Normalised EBITDA16 : around €475 million;
• CO2-equivalent avoided: more than 4 million tons.

Forward-Looking Statements This press release contains forward-looking statements about Voltalia and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, or future performance. Forward-looking statements are generally identified by the words "expects," "anticipates," "believes," "intends," "estimates," "forecasts," "projects," "seeks," "strives," "aims," "hopes," "plans," "may," "goal," "objective," "projection," "outlook," and other similar expressions. Although Voltalia's management believes that these forward-looking statements are reasonable, investors and shareholders of the Group are cautioned that forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond Voltalia's control, that could cause actual results and events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public filings made by Voltalia with the Autorité des marchés financiers, including those listed in Chapter 2 "Risk Factors and Risk Management" of Voltalia's 2022 Universal Registration Document filed with the Autorité des marchés financiers on April 14, 2023 under number D.23-0267 and in Chapter 5 "Principal Risks and Trends" of the 2022 interim financial report. These forward-looking statements are made only as of the date of this press release and Voltalia undertakes no obligation to update any forward-looking information or statements included in this press release to reflect any change in expectations or events, conditions or circumstances on which any such forward-looking statement is based. Any information regarding past performance contained in this press release should not be construed as a guarantee of future performance. Nothing in this press release should be construed as an investment recommendation or legal, tax, investment or accounting advice.

Installed capacity as of December 31st 2023

Capacity under construction as of December 31st 2023

Power production as of December 31, 2023

Next on the agenda: 2023 results, April 2nd, 2024 (before market opens)

1 "Normalised EBITDA" estimated as of December 31, 2023, calculated with an annual average EUR/BRL exchange rate of 6.3 and wind, solar and hydropower production corresponding to the long-term average2 The above amounts are the sum of the consolidated data, rounded to the first decimal place 3 The installed capacity includes the Mosselbanken solar power plant in the Netherlands, 55% owned by Voltalia but not consolidated (not included in either turnover or production) 4 Press release of September 27th, 20235 From 2022, the Group publishes its turnover. Income from the disposal of tangible or intangible assets is recorded under "Other current income and expenses".6 Press Release of December 18th,20237 Press Release of January 25th, 20248 Press Release of November 8th, 2023 9 Press Release of November 3rd, 202310 Press Release of November 23rd, 2023 11 Press Release of November 29th, 2023 12 Press Release of December 6th, 2023 13 Press Release of December 12th, 2023 14 Press Release of December 26th, 2023 15 "Normalised EBITDA" estimated as of December 31, 2023, calculated with an annual average EUR/BRL exchange rate of 6.3 and wind, solar and hydropower production corresponding to the long-term average16 "Normalised EBITDA" estimated at 31 December 2027 calculated with an annual average EUR/BRL exchange rate of 5.5 and wind, solar and hydro production corresponding to the long-term average17 Including the acquisition of a majority stake in Mosselbanken (55%)18 Including Oiapoque solar production

Attachment

• 240131 - Voltalia Turnover Q4 2023_VDEF

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