- Strategic outlook of the growth strategy: ">> Fast Forward 2025" sets concrete targets and growth rates
- Project pipeline of at least 2.0 gigawatts (GW) secured
- Cost reductions and efficiency enhancements secure operating EBITDA margin of 75%
- Financing of growth through favourable debt capital while maintaining the long-term equity ratio of >24%
Hamburg, January 08, 2020 - The Management Board of SDAX-listed Encavis AG (ISIN: DE0006095003, Prime Standard) has set a strategic growth plan for the next six years based on detailed plans and internal action programs as well as detailed market analyses.
This strategic outlook up to the end of 2025 is based on a growth campaign and action plans to further increase efficiency:
- investments in wind and solar parks in ready-to-build status as well as securing projects already in earlier phases of development in coordination with the current five strategic development partners while maintaining a long-term equity ratio of the Group of >24%. Thereby no capital measure has been assumed.
- sale of minority interests in wind parks and individually selected solar parks of up to 49% to generate liquidity for investments in further wind and solar parks
- reduction and optimization of the operating costs in operation and maintenance of solar parks
- optimisation/refinancing of SPV project financing
- introduction of group-wide cash pooling including all individual companies
The megatrend climate and environmental protection has become one of the greatest challenges of our time. No other topic is discussed so intensively and controversially worldwide. The share of electricity from renewable sources in Germany is now around 40% and the EU Commission, under its new president, is adopting a "Green Deal" which aims to make Europe the first climate-neutral continent by 2050. "The business model of ENCAVIS is thus fully in line with the development of a new, environmentally friendly way of generating energy - and on an international level. But ENCAVIS is not only environmentally friendly, ENCAVIS is also economically very successful and with our growth strategy ">> Fast Forward 2025" optimally positioned for the coming challenges", Dr. Dierk Paskert, CEO of Encavis AG, explained the strategic outlook of the group.
The Encavis Group"s growth strategy ">> Fast Forward 2025" focuses on the following target figures for 2025, based on the projected annual figures for 2019e:
doubling the contractually secured own generation capacity from 1.7 GW to 3.4 GW
an increase in weather-adjusted revenues (wa) from EUR 260 million to EUR 440 million
an increase in weather-adjusted operating EBITDA (wa) from EUR 210 million to EUR 330 million
a weather-adjusted operating EBITDA (wa) margin of 75%,
an increase in operating earnings per share (EPS) (wa) from EUR 0.40 to EUR 0.70
"The corresponding weighted growth rates (CAGR) for the next six years until 2025 document the ambitious strategic measures of the Encavis Group", Dr. Christoph Husmann, CFO of Encavis AG, underlined the outstanding growth opportunities:
- capacity growth of 12% CAGR
- sales growth (wa) of 9% CAGR
- earnings growth of the operating EBITDA (wa) of 8% CAGR
- growth of the operating earnings per share (wa) of 10% CAGR
This base case of the ENCAVIS growth strategy ">> Fast Forward 2025" does not yet take into account any further growth opportunities that may arise from inorganic growth through M&A transactions and potential equity transactions. Nor have the opportunities that may arise from profitable business models in connection with battery storage capacities in wind and solar parks in the future been taken into account. A possible expansion into regions outside Europe opens up further growth potential.