THEOLIA : CEO Update January 19, 2010
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA
CEO Update January 19, 2010
Mr. Marc van't Noordende, CEO of THEOLIA, held a conference call/webcast Tuesday January 19, 2010 after the close of the market.
The entire presentation, webcast and audio replay are available on the Company's website: www.theolia.com.
The main topics of the presentation were as follows:
Achievements in 2009
Throughout 2009, THEOLIA continued its efforts to improve operational efficiency through tight cash management, cost reduction program continuing into 2010, and streamlining of the organization with specific achievements at headquarters, France, Brazil and Morocco.
Having sold 234 megawatts (MW) of its portfolio and pipeline during 2009, management exceeded its target to sell 200 MW of wind assets and projects. THEOLIA sold several of its non-wind activities and assets during 2009, including: Thenergo, THEOLIA Canada, 2 peaking units, and the breathalyzer product line of Seres.
At the close of 2009, there remained three non-wind companies owned by THEOLIA: Seres (other product lines), Ecoval 30, and Ecolutions. Seres is currently undergoing some internal restructuring prior to sale, Ecoval 30 is in negotiation for sale, and Ecolutions is in the midst of a management change.
As of December 31, 2009, the Group's total managed capacity amounted to 780 MW, of which 319 MW was for its own account and 461 managed for third parties. During 2009, THEOLIA sold a total of 144MW existing capacity (137MW in Germany and 7 MW in France) out of its 234 MW disposed (146 MW in Germany and 88 MW in France). The total gross proceeds from these sales amounted to €231 million.
As a key part of its 'Develop, Operate and Sell' strategy, management has now focused its energies on pipeline development and growth. A three month internal audit of the project pipeline has resulted in the application of a rigorous methodology of assessing and monitoring wind projects included in its pipeline. As such, the pipeline no longer includes turn key projects for third parties or projects in appeal and is based on net Group ownership.
As of December 31, 2009, the project pipeline totaled 2,013 MW, of which 1,748 MW was located in Europe, with the following breakdown:
|(In MW)||Prospecting||Development||Permits applied for||Permits obtained||Under
|Total European pipeline|
|Total European pipeline||974||369||260||114||31||1,748|
Certain figures contained in the table above have been subject to rounding adjustments. Accordingly, in certain instances the sum of the numbers in a column or a row in the table above may not conform exactly to the total figure given for that column or row.
The Group has invested an estimated cumulative total of 69 million euros in the European pipeline described above.
In its core European markets, THEOLIA intends to accelerate its pipeline development in France and Italy. In Germany its objective is to develop and sell approximately 100 MW per year to a wider range of buyers.
In Brazil, THEOLIA has decided to focus on contract development for third parties. The Group is currently in discussions with the Office National de l'Electricité (ONE) in Morocco regarding project development opportunities. In India, negotiations are ongoing with the JV partner concerning the financing of joint activities.
In these regions, as at December 31, 2009 pipeline amounted to 265 MW: 100MW in Brazil (in prospection phase) and 165 MW in India (including 13 MW under construction)
THEOLIA's financial situation significantly improved during 2009 compared to the beginning of the year as it managed to reduce its debt by close to 100 million euros and increase its available cash position. As at December 31, 2009, gross financial debt amounted to €493m (€589m as at December 31, 2008) cash position was €96m (€91m at December 31, 2008) of which the free cash position was €58m (€34m at December 31, 2008). Moreover, the proposed restructuring plan is designed with the dual aims of both further reducing the Group's corporate debt and enhancing its cash position to facilitate further growth. The key highlights of the restructuring plan were communicated to the market on December 29, 2009 and are accessible on the company's website.
Management believes that the Group's improved balance sheet will facilitate access to project financing. As such, THEOLIA will be in a much improved position to invest in its project pipeline and create value through pipeline development. In addition, a strengthened balance sheet widens the range of strategic options available to THEOLIA.
Next steps and conclusion
Mr. Marc van't Noordende, CEO of THEOLIA, finally outlined the following next steps for THEOLIA in 2010:Execute proposed restructuring plan (target timeframe: before June 30, 2010) Intensify development activities and pipeline growth Continue to improve operational performances Address Group's further development in new regions (Morocco, India) Pursue the disposal of non-wind assets
Management believes that the success of the restructuring plan will give THEOLIA a new basis for growth. The foundation for this growth would be based on three key attributes:A strengthened balance sheet with increased cash available for new equity investments and improved access to project financing for pipeline development. A substantial current pipeline with a clear and suitable strategy to unlock value from major projects A highly motivated and experienced management team
THEOLIA intends to publish its full year 2009 revenue on February 9, 2010 and its full year consolidated accounts on March 30, 2010, in each case, after the close of the market.
The presentation, available on www.theolia.com, forms an integral part of this press release.
THEOLIA is an independent international developer and operator of wind energy projects. THEOLIA is active primarily in France, Germany and Italy, and also in India, Brazil and Morocco. THEOLIA trades on the compartment B of Euronext Paris, regulated market of NYSE Euronext, under the symbol TEO. The THEOLIA stock is part of in the CAC Small 90 index.
For more information
Edward F. McDonnell
Director of Investor Relations
Tel: +33 (0)4 42 906 594
+44 (0) 7899 066 995
+44(0) 2079 202 347 dAncona@mcomgroup.com
French Société Anonyme (public limited company with Board of Directors) with share capital of €39,895,207
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: TEO
This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security in the capital of THEOLIA in any jurisdiction.
This announcement is not an offer of securities for sale in the United States. No securities of THEOLIA have been or will be registered under the US Securities Act of 1933, as amended (the ''Securities Act''), or under the securities legislation of any state or other jurisdiction of the United States. Accordingly, the securities of THEOLIA may not be offered, sold taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, in or into the United States absent registration under, or an exemption from, the registration requirements of the Securities Act and in compliance with any relevant state securities laws. There will be no public offer of the securities of THEOLIA in the United States.
Neither this announcement (including and any materials distributed in connection with this announcement) nor any part or copy of it may be released, published or distributed in or into the United States, Australia, Canada, Japan or South Africa or any other such jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. Any failure to comply with this restriction may constitute a violation of the securities laws of the United States, Australia, Canada, Japan or South Africa. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.
This announcement and any materials distributed in connection with this announcement may include forward-looking statements. Forward-looking statements include all matters that are not historical fact, including statements regarding the belief or current expectations of THEOLIA, its management or directors regarding THEOLIA's business and strategy; the execution and impact of any restructuring plans or efficiency programs; the timing and amount of any projects and sales that are currently contemplated or subject to negotiation; or its assets, pipeline, financial condition, results of operations cash position. Generally, words such as ''may'', ''could'', ''will'', ''expect'', ''intend'', ''estimate'', ''anticipate'', ''believe'', ''plan'', ''seek'', ''continue'' and similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current beliefs and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of THEOLIA and are difficult to predict, and which may cause THEOLIA's actual results to materially differ from any future results or developments expressed by or implied from the forward-looking statements. Such risks and uncertainties include the effects of continued or increasing volatility in international financial markets, economic conditions both internationally and in the markets where THEOLIA operates, and other factors affecting the level of THEOLIA's business activities and the costs and availability of financing for its activities. Securityholders and prospective investors are invited to refer to the risks described in the documents filed by THEOLIA with the Autorité des marches financiers (the "AMF") and available on the AMF website (www.amf-france.org) and the THEOLIA website (www.THEOLIA.com).
Any forward-looking statement contained in this announcement and based on past or current trends or activities of THEOLIA should not be taken as a representation that such trends or activities will continue in the future. No statement in this announcement is intended to be a profit forecast or to imply that the earnings of the THEOLIA for the current year or future years necessarily will match or exceed the historical or published earnings of THEOLIA. Each forward-looking statement speaks only as of its date. THEOLIA expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in THEOLIA's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based. Recipients of this announcement should conduct their own independent assessment of the business, data and property described in this announcement.
The information in this press release (other than information that is part of THEOLIA's December 31, 2008 financial statements or of THEOLIA's June 30, 2009 financial statements) has not been independently verified by anyone other than the Company. In particular, this press release includes current estimates of data (operational and financial) that have not been fully verified or, as the case may be, audited, yet. None of the Company, its advisers or any other person undertakes or is under any duty to update this press release or to correct any inaccuracies in any such information which may become apparent or to provide you with any additional information. No reliance may be placed for any purposes whatsoever on the information contained in this press release or on its completeness, accuracy or fairness. Accordingly, no representation or warranty, express or implied, is given by or on behalf of THEOLIA, its advisers, or any of such persons' directors, officers, employees or affiliates as to the accuracy or completeness of the information or opinions contained in this press release and no liability whatsoever is accepted by any of THEOLIA, its advisers, or any of such persons' directors, officers, employees or affiliates for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.Information réglementée
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