Mr. Marc van't Noordende, CEO of THEOLIA, held his second conference call/webcast on January 29, 2009 after the market. The webcast and replay are available on the Company's website: www.theolia.com. The main topics of the presentation were as follows:
THEOLIA's free cash position at year-end is within the range indicated in November 2008, but remains tight as proceeds from divestments have not yet been received. The Company's auditors continue to closely monitor this situation.
Cash position as of December 31, 2008
|(in ¤m)||Total cash||Free cash (1)|
|June 30, 2008||162||64|
|October 31, 2008||95 (2)||14 (2)|
|December 31, 2008||94 (3)||14 (3)|
(1) Cash available at holding level, neither pledged nor trapped in project support companies and subsidiaries
(2) Non audited figures
(3) Preliminary non audited figures
In order to strengthen its cash position, THEOLIA continues to focus on divestments and cost management. The financial close of the sale of THEOLIA's entire stake in Thenergo for ¤15 million is due in the coming weeks. The gross proceeds of ¤81 million from the sale of the 56 MW wind farm in Germany are contingent on ongoing financing negotiations, which progress slowly in the current market environment.
Since the November update, THEOLIA has started the sale of over 200 MW of projects in France, Germany and Spain.
Further restructuring, closures of subsidiaries and cost cutting should result in approximately ¤10 million in annual savings versus ¤4 million as announced in November 2008.
Estimated debt positions as of December 31, 2008 (1)
|(in ¤m)||(in ¤m)|
|Estimated total debt||586||Estimated total debt||586|
|Estimated total cash||94||Non-recourse project financing||343|
|Estimated net debt||492||Convertible bond||209|
|Loan backed by letter of credit||5|
|Working capital credit facilities||29|
|- Fixed maturities (2011/2012)||15|
|- Revolving facilities with guarantees||14|
(1) Preliminary non audited figures
Marc van't Noordende confirmed the preliminary strategic conclusions outlined in November 2008 with a focus on aligning short term growth with the Group's financial capacity.
After an in-depth review of its geographic presence, THEOLIA will focus on three key markets: Italy, France and Germany.
Considering their significant growth potential, the Group has identified India and Brazil as potential future key markets; however, the group will confirm its commitment to these markets by the end of the year. In Morocco, THEOLIA is currently renegotiating the relationship with its local partner.
The Group has decided to withdraw from Spain, Greece, Czech Republic, Poland and Croatia.
On December 31, 2008, the Group's installed capacity totaled 671 MW, of which 360 for its own account and 311 managed for third parties, and THEOLIA's development pipeline reached 2,580 MW, detailed as follows:
|(In MW)||Prospecting||Development||Permits applied||Permits obtained||Under construction||Total pipeline|
|Rest of the World|
(1) Of which 21 MW owned 50/50 with partner
(2) Joint-venture 50/50; all figures on 100% basis
Following the separation of the roles of Chairman and CEO announced in September 2008, THEOLIA has decided to formally adopt a two-tier governance structure and to review the future composition of its Board of directors with an emphasis on a greater number of independent directors and diversification.
The Company acknowledges that Philippe Perret, former Executive Vice-President of THEOLIA, recently resigned from his Board position.
Mr. van't Noordende indicated that 2008 will be a transition year, allowing the Company to start 2009 with a clean slate.
The Company's 2009 internal budget contains clear operational targets. It includes sales of wind projects and continued disposals of wind and non-wind assets. These actions should result in a self-financing scenario for 2009. Several financial restructuring options can allow THEOLIA to leverage its existing business and finance future growth. In addition to sales of assets and projects, these options include sales of equity portions of installed capacity as well as access to external capital and/or assets, with a view to grow the business beyond the 2009 base case budget.
In the current market environment, the timing of disposals is difficult to manage over the first half of the year. This risk preempts the Group to disclose financial and operating targets at this stage. 2009 financial guidance will be communicated with the 2008 financial results on April 28, 2009.
THEOLIA is a leading European producer of electricity from wind energy. THEOLIA is active in France, Germany, Italy, India, Brazil and Morocco. THEOLIA trades on the compartment B of Euronext Paris, regulated market of NYSE Euronext, under the symbol TEO. The stock is in the SBF 120, NEXT 150 and CAC MID100 indices.
For more information
Edward F. McDonnell
Director of Investor Relations
Tel: +33 (0)4 42 906 594
French Société Anonyme (public limited company with Board of Directors) with share capital of ¤39,746,992
Registered office: 75 rue Denis Papin BP 80199 - 13795 Aix-en-Provence cedex 3 - France
Tel : +33 (0)4 42 904 904 - Fax : +33 (0)4 42 904 905 - www.theolia.com
THEOLIA is listed on the compartment B of Euronext Paris, code: TEOInformation non réglementée
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