2018 annual results...45 % of power generated on Reunion Island 40 % in Mauritius 30% in Guadeloupe...

2018 annual results

08 March 2019

1

Contents

2

Highlights

Strategic positioning

Operational performance & project update

Long term historical financials

Outlook

Appendix

1

2

3

4

5

3

5

14

28

38

42

3

Highlights13

Strengthening of Albioma’s presence in metropolitan France with the acquisition of Eneco France (17 MWp) - 12 Dec. 2018

Closing of the acquisition of 60% of the second cogeneration unit of Jalles Machado in Brazil - 21 Dec. 2018

Sale of the anaerobic digestion business in France (Methaneo) to Evergaz - 10 Dec. 2018

Strong growth vs 2017 : EBITDA +18 % & Net Income (Groupe Share) +18 %

Major industrial commissioning of two plants:

–Galion 2, a 100% bagasse/biomass plant, in Martinique - 26 Sept. 2018

–The first peak-load combustion turbine fuelled by sugarcane-based bioethanol in Saint-Pierre, Réunion Island – 25 Feb. 2019

Signature of the rider to the EDF contract for the 100% biomass conversion of Albioma Caraïbes power plant (34 MW) - 20 Dec. 2018

Highlights

Operations Development/M&A

4

Capital & shareholder structure

Success of the transaction for the issue of BSAAR warrants reserved for 42 employees of the Group & the CEO - 4 Dec. 2018

Acquisition by Impala of Altair's share in Albioma’s capital (around 5,5% of the capital) bringing its share to around 6% - 12 Dec. 2018

1. Highlights

5

Strategic positioning25

Albioma

Independent producer of renewable energy

2. Strategic positioning

Key figures for 2018

13

thermal power stations

500

experts

910 MW

installed capacity end

February 2019

2.5 M

people supplied with electricity

€428 m

in revenue

3.3 TWh

of electricity produced

99,5%

availability at our solar power

plants1

€163 m

in EBITDA

120 kWh/tcexported to the

grid in the overseas territories

In mainland France, French overseas territories, Mauritius and Brazil

Committed to the energy transition through biomass and photovoltaic

The leading producer of photovoltaic energy in the French overseas territories & a reinforced position in continental France

Unique partnership for 25 years with the sugar industry to produce renewable energy from bagasse, the fibrous residue from sugar cane

6

1 Excl. Albioma Solaire France (Ex Eneco France)

Total installed capacity 910 MW (Feb. 2019)

Diversified geographical footprint


45 % of power generated on Reunion Island

40 % in Mauritius

30% in Guadeloupe

Strong market shares (2018)

Brazil - 168 MW

168MW

Indian Ocean - 499 MWReunion Island, Mauritius, Mayotte

466

MW

33

MW

Metropolitan France – 30 MW and the rest of Europe

30

MWWest Indies and French Guyana - 213 MWGuadeloupe, Martinique, French Guyana

182

MW

31

MW

7

Photovoltaic

Thermal biomass

Three-pronged strategy


Work on the energy transition in French overseas territories

1

Global roll-out of the bagasse/biomass model

2

Development of innovative solar projects

3

8

Substituting biomass for coal in plants which recover bagasse

– Giving priority to local biomass, while avoiding conflicting uses (cane straw, forest residues, etc.) and contributing to a circular economy (green waste, etc.).

– Using imported biomass to top up.

Continuing the rise in renewable energy production

– Production of reliable energy, guaranteeing security and stability of the grid through 100% renewable resources.

– Solar projects with energy storage to counter the intermittent nature of production.

Under study: Make use of solid recovered fuel (SRF).

Work on the energy transition

2. Strategic positioning 9

Substitution of 100% of the coal used by the Albioma Caraïbes plant by 2020

–Terms of conversion approved by the CRE (French energy regulator) and rider to the EDF contract signed in December 2018

Major contribution to the energy transition of Guadeloupe (Guadeloupe’s renewables mix to increase from 20% to 35%)

–Reduction of over 85% in the plant’s CO2 emissions

Conversion to biomass of our plants in the French overseas

Complete exit from coal by 2023 with the conversion of our plants to biomass

Recovering traceable and sustainable biomass

–Traceability procedure in accordance with the EU Timber Regulation (EUTR)

–Sustainability of the resource (FSC, PEFC type certifications)

– Local biomass supply target of 30%-40% in the long term

10

Focus on Albioma Caraïbes (Guadeloupe)


Global roll-out of the biomass model


Mauritius

40% of the electricity produced on the island today

3 plants currently in operation

1 project under development

Brazil, international priority since 2013

The world's leading sugar cane producer (700 Mtp)

Bagasse recovery: Sector average yield of 40-50 kWh/tc (compared with 120 kWh/tc at Albioma plants)

3 plants currently in operation

From 2000 up until today In the medium term

Brazil, reaching critical size

Capitalise on our experiences

Objective to sign a project every 12 to 18 months

1 project currently under construction: Vale do Paraná

Continued expansion

Geographical approach: Latin America, Africa...

Project approach: supporting existing sugar-refining partners or exploiting other sources of biomass

Exporting the partnership model with agro-industry players

11

Develop solar projects on our territories

Leader in photovoltaics overseas

– Pioneer since 2006

– 17% market share (2017) in French overseasterritories

Innovative technologies and strategic partnerships

– 10 MWp won via calls for tender in 2016 and2017 of photovoltaic installations twinned withenergy storage systems

– 5 MWp to equip rooftops of social housing onReunion Island, in partnership with the SHLMR

Acquisition of Eneco France in December2018 (17 MWp mainly on rooftops andagricultural buildings)

QSE triple certification

2. Strategic positioning 12

At least 80% renewable energy between now and 2023


the conversion to biomass of existing bagasse-coal power plants

the construction of 100% biomass power of photovoltaic installations in France

the acquisition and development of 100% bagasse plants in Brazil

Rapid change in the energy mix thanks to:

Notes: Aggregate of fully consolidated companies

13

1 Pro forma full year Albioma Solaire France (previously Eneco) and Albioma Esplanada (Jalles Machado) and excluding Methaneo, sold in 2018

2023 target

<20 %

>80 %

64 %

36 %

2013

20181

38 %62 %

2018 : substantial progress in the share of renewables

FossilRenewable

1

4

Operational performance & project update3

14

1

5

France3.115

IED work progressed in 2018 on the Reunion Island tranches

End of IED work (three out of eight tranches) planned for 2019 with the Albioma Le Moule (Guadeloupe) project and the final tranche of Albioma Bois-Rouge (Reunion Island)

EDF rider signed on 20 December 2018

Start of work in H1 2019 - biomass handling and storage system and adaptation of existing equipment to the new fuel

France - Thermal Biomass: major works

"IED" compliance investments

approx. €275 million in investments between 2016 and 2019 (excluding Albioma Caraïbes)

Albioma Galion 2 (Martinique)

40 MW – 100% biomass – approx. €215 million in investment

16

Combustion turbine in Saint-Pierre (Reunion Island)

41 MW – 80% bioethanol – approx. €60 million in investment

Albioma Caraïbes biomass conversion

approx. €70 million in net investments

Industrial commissioning on 26 September 2018

A first month of technical adjustments followed by a very good end of the year in terms of availability

Peak or backup production

Industrial commissioning on 25 February 2019

Helps to stabilise the Reunion Island grid

3. Operational performance & project update


France – Thermal Biomass

Plant availability Power generation

Solid plant availability:

–Scheduled shutdowns related to IED work on Reunion Island, contractually offset by EDF

–Technical incidents affecting the Bois-Rouge power plant during the summer

–Excellent performance by power plants in the French West Indies, including record 100% availability in December (all base-load plants including Galion 2)

Production:

–Slight erosion in call rates at base-load plants in 2018

–Reduction in the call rate at the Galion peaking plant to 22% in 2018 vs. 30% in 2017 related in particular to the commissioning of Galion 2

17

2,043 1,874

2017 2018

89.6%87.9%

2017 2018

In GWh


France – Solar Power

Number of equivalent full power hours Power generation

Stable production, less favourable sunshine conditions, particularly on Reunion Island

Signing of a €110 million loan to finance new projects in the Indian Ocean and refinance the debt ofthe existing power stations in the region

Signing of a strategic partnership with Société des HLM de La Réunion (4.8 MWp) for the installationof rooftop power plants

Construction of projects with storage underway following awarding of CRE ZNI invitations to tender (10 MWp)

–Notably GPMDLR (1.4 MWp), Sainte Rose (3.3 MWp) and Stade de l’Est (1.2 MWp)

18

1,274 1,229

2017 2018

95 92

2017 2018

In GWh

17 MWp installed, mainly photovoltaic plants on rooftops andagricultural facilities and a 0.5 MW hydroelectric unit

Bolstering of solar power activity in mainland France: installedcapacity increased from 8 MWp to 25 MWp & integration of ateam of 12 people based in Avignon

Strong acceleration of our investments in solar thanks to this new platform

France – Solar Power – Development

Acquisition of Eneco France (renamed Albioma Solaire France)

19

Outlook


2

0

Mauritius3.220


Mauritius

Plant availability Power generation

After a first half marked by the accidental outage of OTEO La Baraque, the Mauritian power plants performed well during the second half of the year

The share of net income from these consolidated entities has been included in the Group's operating income (EBITDA and EBIT) using the equity method since 2014

21

93.8%

85.4%

1,173 1,084

2017 2018

In GWh

GO

SP

2015

CODORA

2014

RIO PARDO

2016

VALE DO PARANA

2018JALLES

MACHADO

2

2

Brazil3.322

Growth of Albioma in Brazil


Brazil, the international priority for Albioma

Acquisition of Rio Pardo Termoelétrica

Acquisition of Codora Energia

Vale do Paranáproject agreement

2013 2014 2015 2016 2018

Acquisition of Jalles Machadocogeneration unit

Commissioning of a third turbine at Codora

23


Brazil – Macroeconomic indicators

24

Relative stability of macroeconomic indicators in 2018

The real continued to weaken in 2018, with the exchange rate rising from R$/€ 3.97 at end-2017 to R$/€ 4.44 at end-2018. The average exchange rate was R$/€ 4.31 in 2018 vs. R$/€ 3.60 in 2017

Inflation in Brazil rose from 2.9% at end-2017 to 3.8% at end-2018

The CDI rate fell from 6.9% at end-2017 to 6.4% at end-2018

The average MWh spot price fell from R$325/MWh in 2017 to R$290/MWh in 2018


Brazil

25

Power generation Energy efficiency

Strong performances by the two power plants despite a lower volume of crushed cane compared with2017 (2.7 Mtp vs. 3.1 Mtp in 2017)

Production down slightly in 2018, driven by the excellent performance of the Albioma Codora Energiafacility. Satisfactory performance by the Albioma Rio Pardo Termoelétrica power plant despite thefragile financial situation of its sugar-producing partner Usina Rio Pardo, which has been placed under“recuperação judicial”, the local judicial recovery protective regime

Average sale price of R$321/MWh (vs. R$303/MWh in 2017), mainly due to high spot prices from Mayto October and the indexation of medium- and long-term contracts

Completion of installation work for a third turbine at Codora on 15 December 2018

248 238

2017 2018

77 80

2017 2018

In GWh In kWh/tp

Brazil – acquisition of Jalles Machado cogeneration unit


60% of capital held by Albioma

Fuel: 100% bagasse

20-year contract

Renovation of existing boilers and installation of a new 25 MW turbine to bring the total capacity up to 65 MW

Second partnership with the Jalles Machado group

Production target : 145 GWh / year, from the 2019 campaign on

80% of energy sales already secured on the regulated market

26

Project under construction in Brazil


Vale do Paraná

40% of capital held by Albioma

48 MW installed eventually

R$ 100m of investment

25-year contract - commissioning: 2021

27

First-half 2018 results 28

Long term historical financials4

28

(€ million) 20182017

Publié

Var

18/17

France - Thermal Biomass 363,4 334,2 +9%

France - Solar Power (2) 41,5 42,4 -2%

Brazil 17,6 20,8 -15%

Holding & Other 5,8 5,8 -0%

Revenues 428,3 403,2 +6%

France - Thermal Biomass (1) 123,6 102,1 +21%

France - Solar Power (2) 30,1 32,0 -6%

Mauritius (Equity accounted) 3,1 3,5 -10%

Brazil 6,5 7,7 -15%

Holding & Other (0,7) (6,9) +89%

EBITDA 162,6 138,3 +18%

RNPG 44,2 37,4 +18%

(1) Including non-recurring income

(2) Including Spain and Italy

4. Long term historical financials

Income statement by region/business

29

Industrial commissioning of Galion 2 on 26 Sept. 2018

Increase in fixed capacity payments linked to recent riders to contracts signed with EDF that partly offset the contractual reduction in ABR revenues

Less favourable sun conditions, particularly on Reunion Island

Brazil : performance in line with 2017 excluding exchange rate effect

Sale of the anaerobic digestion business in Dec. 2018

403.2

413.0

428.3

9.8

14.4

18.6

(1.3)

(18.1)

5.7 (3.5)(0.9) 1.2 (0.9)

413.0

Rise in

fixed capacitypayments Bonus/Malus

Other

Thermal Biomass

France

FX change

real vs. euro Brazil

Volume effect Others

2018

Thermal Biomass France+€19.4 m

Brazil-€3.2 m

Others-€0.9 m

2017

Fuel price

effect

2017Cumulative excluding fuel

price effect

403.2

428.3

Volume effect

Thermal Biomass

France

Brazil

Price effect and others

Industrial

commissionig of new

capactities

o.w. contractual reduction

ABR : -€4.2 m


Revenues up 6%

Excluding fuel price effect, sales are up by 4% over 2017 thanks to (i) the increase in fixed capacity payments linked to contractual indexation and recent riders to contracts signed with EDF and (ii) to the industrial commissioning of the new power plant Galion 2 in Martinique

30

135.1

160.2

3.3 2.4

6.8

18.6

(1.3) 1.8 (1.4)(0.9) 1.2 (0.8) 1.1 2.4

2017

Rise in

fixed capacitypayments Bonus/Malus

Other Thermal

Biomass France

FX change

real vs. euro

Brazil

Volume effect

Brazil

Price effect Others Brazil Others

138.3

162.6

2018

Retroactivity &

other exceptionalsThermal Biomass France

+€25.9 m

Brazil-€1.9 m

Others+€1.1 m

Exceptionals

Exceptionals

Industrial

commissionig of new

capactities

o.w. contractual reduction

ABR : -€4.2 m


EBITDA €162.6 million up 18 % over 2017

Significant increase in EBITDA over 2017 particularly thanks to (i) the increase in fixed capacity payments linked to contractual indexation and recent riders to contracts signed with EDF and (ii) to the industrial commissioning of the new power plant Galion 2 in Martinique

31

32.1

44.1

5.3

0.11.6

10.8

(1.0)(0.6) 0.2 (0.9) 1.1 (0.8) 1.5

0.1

2017

Rise in

fixed capacity

payments Bonus/Malus

Industrial

commissionig of new

capactities

Other Thermal

Biomass France

FX change

real vs. euro

Brazil

Volume effect

Brazil

Price effect

Others

Brazil Others

44.2

2018

Retroactivity &

other exceptionals

Thermal Biomass France+€10.8 m

Brazil-€0.4 m

Others+€1.5 m

Exceptionals

Exceptionals37.4


Net result, Group share up 18% over 2017

32

92 95

31 Dec. 2016 31 Dec. 2017

Group cash position

31 déc. 2017 31 déc. 2018

3

17

178

Albioma SA dividends

13

179

24 97

42

Sources Uses

2018 cash flow

Capital repayment

Development investissements

(ow acquisitions)

Free cash flow 1 Interest cost

New debts

Debt service65

Others

Increase in cash

1 Free cash flow = Operational cash flow - Investments related to operations.

Variation in NWC, maily due to the lag to Januray of payments of receivables, has a negative impact on Free cash flow

of -€25,8 million in 2018.


€95 million in cash at 31 December 2018

33

A strong balance sheet to finance growth

Gross debt increased following debt raisings to finance projects currently under construction (Galion 2, TAC Saint-Pierre, IED)

– Residual life of 11 years

– Group average interest rate of 3.6% (of which France 3.4% and Brazil 9.2%)

– 87% of debt covered or at fixed rates

– Non-recourse project debts other than Brazil debt (€28 m) and projects under construction

4. Long term historical financials 34

Notes1. Net debt/Equity

(In € million) 31 Dec. 2018 31 Dec. 2017 Change

Project debt 708 622 14%

Corporate debt 138 85 62%

Total gross debt 846 707 20%

Cash (95) (92) 4%

Guarantee deposits and equivalents (3) (3) 23%

Total net debt 747 613 22%

Net debt / EBITDA 12 moving months 4.6x 4.4x

Gearing1 152% 131%

Dividend per share climbing since 2016

4. Long term historical financials 35

0.570.60

0.65

2016 2017 2018 proposed

Proposed dividend distribution for the 2018 financial year: €0.65 per share, up by 8%

Payable 100% in cash or 50% in cash and 50% in Albioma shares

Loyalty bonus for shareholders who have held registered shares for a continuous period of at least two years

Premium of 10% of the dividend


2019 objectives

2018Excluding exceptional items

2019

EBITDA(€ millions)

160 168-178

Net income (Group share)(€ millions)

44 38-44

36

Full-year contribution of Galion 2 and the latest IED facilities. Commissioning of the Saint-Pierrecombustion turbine on 25 February 2019

Two further reductions in fixed premiums planned for 2019 for Bois-Rouge and Le Gol (approx. €12 million; see Appendices)

Full-year effect of amortisation and financial charges for facilities commissioned in 2018 (IED, etc.)

37

Illustration of the financial model

60% - 70% Project debt

Albioma equity

+

10% - 15%

International

€600 million France and Mauritius

20% - 25%

Co-investors’ equity(sugar producers)

€400 million

Cumulated capex 2013-2023 Debt and shareholders’ equity


3

8

Outlook538

790

1,300

-

1,500

275

275

100

140

Investments since 2013 et development outlook

5. Outlook

2013 2018

39

PV

Brazil

Existing

Biomass conversion

Solar -Development

Brazil & international

2013 – 2018€790 m of committed investments

2019 - 2023€500-700 m of new investments to secure

Existing

IED

New capacities

Galion 2 Combustion

Turbine (Reunion Island)

2023

New capacities

Biomass

In € millions

Why invest in Albioma?

A major player at the heart of the energy transition

A future renewables pure player through its two businesses: biomass and solar power

A midcap with strong growth prospects: expected 2020 EBITDA of around €200 million

A dividend growth policy with a distribution objective of around 50% of net income (Group share), excluding exceptional items

5. Outlook 40

Thank you

for your attention

5. Outlook Follow us on and on www.albioma.com

4

2

Appendix

42

43

Leading player in the bagasse cogeneration industry

Albioma’s historical business model

Bagasse

300 kg

Sugarcane

1 ton

Sugar refinery

Client/Partner

Cogeneration plant

Electricity network

Client

Electricity

120 kwhElectricity

30 kwh

Steam

450 kg

Sugar or bioethanol

115 kg

. Appendix

(In € millions) 2018 2017 Var 18/17

Sales 428.3 403.2 +6%

EBITDA 162.6 138.3 +18%

Depreciation, amortisation, provisions & other (59.4) (58.4) -2%

Operating income 103.3 79.9 +29%

Net financial income (19.8) (23.7) +17%

Tax (29.9) (11.9) -152%

Effective tax rate 1 37.3% 22.6%

Consolidated net income 53.6 44.3 +21%

Net income (Group share) 44.2 37.4 +18%

Net income per share (consolidation scope) 1.46 1.24

1 The normative tax rate is 33,7% (effective tax rate less the effects of non-deductible depreciation, excluding Brazil and the effect of the change in

the tax rate from 2019). For the year ended 31 December 2018, the normative tax rate does not include the cancellation of the 3% tax on

distributed dividends.

. Appendix

Income statement for the year ended 31 December 2018

44

(In € millions) 2018 2017

Cash flow from operations 164.1 139.4

Change in working capital requirements1 (25.8) (1.9)

Tax paid (26.9) (17.0)

Net cash flow from operating activities 111.4 120.6

Operating capex (14.2) (12.4)

Free cash flow from operations 97.2 108.1

Development capex (128.7) (146.9)

Other/Acquisitions/Disposals (49.1) 2.5

Cash flow from investing activities (177.8) (144.4)

Dividends paid to Albioma SA shareholders (12.8) (10.6)

Borrowings (increases) 178.8 105.6

Borrowings (repayments) (41.5) (41.4)

Cost of financial debt (23.6) (24.3)

Other (16.0) 4.0

Net cash flow from financing activities 84.8 33.3

Currency effect on cash (1.0) (0.9)

Net change in cash and cash equivalents 3.2 (3.9)

Opening cash and cash equivalents 92.1 96.0

Closing cash and cash equivalents 95.3 92.1

1-€25,8 m variation in NWC mainly due to the lag to january of payments of receivables.

. Appendix

Cash flow statement for the year ended 31 December 2018

45

ASSETS (In € millions) 31-Dec-18 31-Dec-17

Goodwill 24 12

Intangible assets & Property, plant and equipment 1,263 1,141

Other non-current assets 30 34

Total non-current assets 1,317 1,186

Current assets 188 140

Cash and cash equivalents 95 92

Total ASSETS 1,601 1,419

EQUITY & LIABILITIES (In € millions) 31-Dec-18 31-Dec-17

Shareholders' equity, Group share 408 389

Non-controlling interests 84 78

Total equity 493 467

Current and non-current financial liabilities 846 707

Other non-current liabilities 111 119

Current liabilities 151 125

Total LIABILITIES 1,601 1,419

. Appendix

Balance sheet at 31 December 2018

46

533563

539

471 462 476

562607

705

642582

520

458402

345288

233181

12994

69 46 30 21 12 8 7 5 3 2

10296

92

53 8080

85

85

138

84

3

2

1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Dette projet Dette corporate

. Appendix

Long-term debt matched to business profile

Residual life of 11 years

Existing debt repayment profile1

47

Note1. Financial liabilities, excluding bank overdrafts, accrued interest and borrowing costs and excluding new projects

Project debt Corporate debt

Schedule of contractual reductions in fixed payments

. Appendix 48

Fixed payments

Contratual reductions

(In € millions)

2018 2019 2020 2021 2022 2023 2024

Bois Rouge (4.2) (4.8)

Le Gol (6.8) (4.5)

Le Moule (5.8)

Total (4.2) (11.7) (4.5) (5.8)

Shareholder structure at 31 January 2018

. Appendix 49

Impala6.0%

COFEPP6.1%

Bpifrance5.0%

CDC Entreprises Valeurs Moyennes

4.5%Financière de l'Échiquier

4.4%

Directors (excluding Bpifrance) and officers

0.3%

Employees1.3%

Treasury shares2.6%

Free float69.8%

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2018 annual results...45 % of power generated on Reunion Island 40 % in Mauritius 30% in Guadeloupe...

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