3Q 2019 Results

AUDAX RENOVABLES SKYROCKETS ABOVE ITS OWN RESULTS: WITHIN THE FIRST NINE MONTHS OF 2019 HAS ALREADY EARNED MORE THAN IN THE ENTIRE 2018

The EBITDA accumulated by September 2019 amounts to €58.2 million, gaining 71.5% in comparison to the same period of 2018, and already exceeds the total of €53 million reached throughout 2018

Audax Renovables (ADX.MC), the energy group whose activities involve retail and production of 100% renewable electricity, has skyrocketed above its own results. Owing to the optimization attained through vertical integration of the two business activities, the Group ended the first nine months of 2019 with sales figures amounting to €783 million, which means a 10.1% rise compared to the same period of the previous year. The Group has made a profit of €18.5 million and has increased its EBITDA by 71.5%, up to €58.2 million.

The energy company has improved its figures in all the variables. The good performance of the retail division in the national market as well as in other European countries where the company operates has made it possible to increase the gross margin by 26%. On the other hand, the energy generation division has enhanced its EBITDA by 27%, mainly due to stronger wind resources and a higher price of Green Certificates in Poland, representing a 54% rise compared to the same period of the previous year.

As it was announced on the Capital Markets Day, Audax Renovables continues its strategy of assets turnover and debt reduction, having succeeded in reducing its financial debt by 25%, which allows it to attain an NFD/EBITDA ratio of 3.34x.

Moreover, in October there was a TAP issue of its bonds with maturity in October 2023 by €35 million up to the current €70 million, with the aim of restructuring the maturity of its debt and thus safeguarding its future balance.

In the first nine months of 2019 Audax Renovables has concluded several PPAs (Power Purchase Agreements) for long-term purchase of energy generated by various photovoltaic plants. At the beginning of the current year, Audax Renovables signed with WElink a framework agreement for the purchase of electricity (PPA) for the period of 20 years at a fixed price; under this agreement Audax Renovables will purchase energy produced by the photovoltaic plants of Solara4 and by other new photovoltaic projects which WElink Group will develop in Spain and as well as in Portugal, expecting to attain a total installed capacity of 708 MW. Additionally, the Group has signed an agreement with Trina Solar, a global leader in photovoltaic energy, for the purchase of energy generated by photovoltaic facilities with a capacity of up to 300 MW throughout the period of 20 years. These agreements will contribute to the improvement of the Audax Renovables’ energy purchase price and to the consolidation of the leading position of the Group, which, at present, is rated as the fourth supplier to the SME segment nationwide.

The financial solvency, good results and future expectations have allowed the rating agency AXESOR to renew in April its rating of Audax Renovables S.A. at Investment Grade BBB- stable outlook.

At the end of the third quarter of 2019, Audax Renovables has more than 326,000 clients, which means 6.8% more than in the same period of 2018. Of this number, 79.7% correspond to electricity supply and 20.3% – to gas supply. The company is working towards achieving by the year 2022 a portfolio of more than 500,000 clients, supplying more than 15 TWh of energy, attaining a revenue of € 1.5 billion and an EBITDA of over €100 million, through the means of doubling its profitability and relaxing financial leverage due to substantial cash generation.

The accomplishment of these objectives will enable Audax Renovables to strengthen its leadership as the top independent retailer in the SME segment in Spain and to replicate the success on the international markets where it operates: Portugal, Italy, Germany, the Netherlands, France, Poland and Panama.

Lastly, it should be mentioned that the price of the shares of Audax Renovables in the first nine months of 2019 increased by 12.79%, maintaining the high average traded daily volume.

About Audax Renovables

Audax Renovables is the result of a merger between Audax Renovables itself and its parent company, Audax Energía, which gave rise to an energy group whose business is centred on electricity and gas retailing as well as on the production of 100% renewable energy.

As an energy Group with leading position in the SME segment in Spain, Audax Renovables guarantees efficient supply of energy retailed through a process of vertical integration with the renewable energy production branch, with a robust financial position and ready to lead the energy transition on the European market.

The Group operates through two different business activities: retail and production. Its division of electricity and gas retail is present in Spain, Portugal, Italy, Germany, Poland and the Netherlands. On the other hand, the generation division manages a total portfolio of operating wind farms of 127 MW in Spain, France and Poland. Additionally, it has one project of 66 MW under construction in Panama and has purchased several projects of photovoltaic facilities to be developed in Spain.

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