BayWa re Capital Market Day V6 150113 - Home | BayWa AG€¦ · BayWa Capital Market Day 2015 Berlin, ... Market entry into US market for PV projects via acquisition of Martifer Solar

BayWa r.e. renewable energy GmbH

BayWa Capital Market Day 2015

Berlin, 16.01.2015

Matthias Taft, CEO BayWa r.e.

Agenda

page 2

1. BayWa r.e. at a glance

2. Inside our project business

3. Market development

4. Business-outlook 2015


BayWa r.e. was established out of a set of small- to mid-sizedrenewable energy companies successively acquired by BayWa AG

page 3BayWa Capital Market Day 2015

WindProjects

Projectbusiness

Hardware

Logistics

BayWa r.e. is a holistic provider of renewable energy as an integratedcombination of projects, services and energy management

Services

Institutional investors/ Public investors / Utilities

Commercial customers & Industry

Private customers

SolarProjects

+Solar

Solutions

Bioenergy

Services

Energy management / Energy logistics (GEP)

Solar Trade

Market

partners

(Installers,

Utilities,

BEEGY)


BayWa r.e. has a comprehensive track record in all relevantbusiness fields

page 5

= 330 MW = 29 plants

Systems under management

= 1,300 MW

Photovoltaic- and Biomethane-Trade in 2014

= 170 MWp = 1.2 TWh

= 810 MW

Installed capacity until 2014

in 10 European countries and the USA


Market entry into Scandinavian wind market via acquisition of HS Windkraft AB(SWE)

Market entry into US market for PV projects via acquisition of Martifer Solar USA

Market entry into the future market for decentralized energy management solutions ina joint venture with MVV, Glendimplex & GreenCom (BEEGY)

Approx. 40 % sales growth between 2013 and 2014

10% increase in the number of employees (844 employees in Q4 2014 worldwide)

Implementation of an adjusted line- and matrix-organization for the r.e. group

In 2014 we have continuously advanced our business

Milestones of BayWa r.e. renewable energy GmbH 2014


WindProjects

BayWa r.e.‘s recently implemented line organization is characterizedby six central business entities

SolarProjects

Bioenergy

Projects & Services Solar Trade

EnergyTrade

Solar TradeServices

page 7

Six strategic business entities

Lean organizational set-up (clear responsibilities and reporting lines)

Solid framework for further internationalization and growth

Organization of BayWa r.e. in the renewable energy market


Agenda

page 8







BayWa r.e.’s project development process can be differentiated in 2approaches: acquisition of project rights & in-house development

Process chain of BayWa r.e.’s project development business

Greenfield (siteselection &

site acquisition) Engineering,Procurement &Construction

(EPC)

Planning and gridapprovals

Project acquisition

Project structuring,Reports & Cost

Calculation

Project assessment,Due Diligence

Sales

Lead Creation Pre-Qualification Qualification Realization Sales

Acquisition of project rights In-house development

Selection of project& seller

BayWa r.e.’s solar project business is mainly driven through acquisitions of(ready-to-built) project rights

In the wind project business both methods are usually used: acquisition ofproject rights and in-house-development (greenfield)


Project:

Location: Germany, Lübeck

Capacity: 27,5 MW / 13 turbines

Construction: 2008 till 2014 (Phase

I, II & III)

Sale: 2009 (to DIF), 2012 (to

Family Office), 2014 (to KKB)

Investment: 34,1 m EUR in total

Project characteristic:

Greenfield development; stepwise

realization in three phases

Project „Selmsdorf-Sülsdorf I, II and III“

Inside our Wind Business –Project Selmsdorf-Sülsdorf

page 11

Project:

Location: USA, New Mexico

Capacity: 19.8 MW / 12 turbines

Start of operation: February 2014

Sale: June 2014 (to Union Bank &

Macquarie)

Investment: ~30 m USD


Built in only four months; first sold

project of BayWa r.e. in the USA

Project „Brahms“

Inside our Wind Business –Project Brahms


page 12

Project:

Location: Bordeaux/Toulouse,

France

Capacity: 57.6 MWp

Start of construction: April 2013

Sale: December 2014 (to Allianz)

Investment: ~68 m EUR


Biggest solar farm of BayWa r.e.

to date

Project “La Coste”

Inside our Solar Business –Project La Coste


Agenda

page 13






Global growth in renewable energies is shifting primarily to Asia

page 141) above 250 kWp generally covered by solar solutionsSource: Bloomberg New Energy Finance 2014

Global development of wind and solar markets by regions


2012 2013 2014e 2015e 2016e

31,4

44,648,9

54,049,6

2012 2013 2014e 2015e 2016e

11,2

22,9 22,3 23,4 23,0

2012 2013 2014 2015 2016

10,4 10,1

15,2

19,7

26,7

Wind business Solar Projects business (> 1 MWp) Solar Trade business (< 1 MWp)

Middle East & AfricaNorth America ChinaAPAC (ex China) Central & South AmericaEurope

2012 2013 2014 2015 2016

8,97,2

9,111,3

13,9Residential (< 20 kWp)

Commercial1 (20-1000 kWp)[GW]

partly projectbusiness

In the coming years, global markets of large wind & solar

plants are characterized by constant growth rates

Global demand for small

PV-plants is expected to

increase significantly

Potential target market

BayWa r.e presence and/ormarket activities

P

P

PP

P

P

Market presence and attractive potential target markets forBayWa r.e. in its core business (Projects & Solar Trade)

T

T T

T

P (early stage)

page 15

P = Projects

T = Trade

T

P T


The post-EEG-world is characterized by new centralized &decentralized power marketing models

New market

models for

renewable

energy

Solar trade[<1000 kWp]

Decentralized power marketing

On-site consumption solutions forprivate and commercial customers

PV-lease and PV-contracting models

Decentralized energy managementon local customer level (see BEEGY)

Direct marketing (“Direktver-marktung”) on the power exchange

Marketing of renewable energy on thebalancing market through a virtualpower plant (e.g. “Regelenergie”)

Marketing of local power(“Grünstrom-Markt-Modell”) toprivate end users via the public grid

Post-EEG-models for power marketing of renewable energy

Project business[> 1000 kWp]

1

Central power marketing 2Producer & Consumer ingeographical proximity

Producer & Consumer not in geographicalproximity


Recommended positioning along the value chain

Projectdevelopment

EPCTechnical &commercial mgmt.

In the retail business, utilities have power market expertise, brand and a client base (nowholesale skills)

BayWa r.e. value chain is not disrupted no direct threat from market entry of utilities

BayWa r.e. aims at covering the value chain “energy marketing” in cooperation withpartners (e.g. JV BEEGY, cooperation SWS, ESB) in order to use their existing client base

Investor

Product mgmt./Procurement

LogisticsMarketing &Sales

InstallerEnergymarketing

End customer

Project-

business

Solar

trade

Covered directly orindirectly by BayWa r.e.

Covered bypartner

In a post-incentive-world the value-added chain “energy marketing” gains more and moreimportance. In Germany, “Direktvermarktung” is mandatory. In other countries (e.g. UK,USA) market integration of renewable energies is driven through PPAs.

With the entity “Green Energy Products”, BayWa r.e. has already established a providerof energy services (e.g. energy trade, end customer electricity)

BayWa r.e. aims at expanding its business activities in the field of “energy marketing”

BayWa r.e. needs to position itself with different strategies in the fieldof new power marketing models

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Energymarketing

page 17

New

New


Agenda

page 18






page 19

With 181.1 MW wind power plants under construction or in operation,BayWa r.e has built the foundations for a successful year 2015……

Project Country MWInvestment(in m EUR)

Status

Hettstadt Germany 3 4.5 under construction

Guggenberg II Germany 4.8 7.2 under construction

Saint Congard France 8.2 12.3 in operation

Stroupster UK 29.9 44.8 under construction

Trierweiler Germany 4.6 6.9 in operation

Saint Fraigne France 12 18 in operation

Beethoven (B&H) USA 79.6 119.4 under construction

Stormon Sweden 15 22.5 under construction

Obernwohlde I+II Germany 24 36 under construction

Sum 2015 181.1 271.6

Pipeline / Forecast 2015 - Wind


page 20

…..the same counts for the solar business of BayWa r.e.

Project Country MWInvestment(in m EUR)

Status

Intersolaire France 1 1.3 in operation

Valley Center USA 8 13.6 in planning

Sunrise Energy USA 8.9 11.1 under construction

Lynt Farm UK 26.7 33.4 under construction

Pingewood UK 15.7 19.6 under construction

Vine Farm UK 44 55 in planning

Aston Clinton UK 24 30 under construction

Lower House UK 8 10 in planning

Homestead UK 18 22.5 under construction

Sum 2015 154.3 196.5

Pipeline / Forecast 2015 - Solar


Thank you

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BayWa re Capital Market Day V6 150113 - Home | BayWa AG€¦ · BayWa Capital Market Day 2015 Berlin, ... Market entry into US market for PV projects via acquisition of Martifer Solar