Sunflower Gmbh & CO.kg Gilatz Spain S...Trigger-Foresight has conducted strategic and financial...

Confidential. Copyrights Trigger-Foresight, All rights reserved 1 Confidential. Copyrights Trigger-Foresight, All rights reserved

Olmeda Park La Herrera Park

Corvera Park

Impairment Testing as of September 30th , 2013

Submitted on November 27th 2013

Submitted to:

Sunflower Gmbh & CO.kg Gilatz Spain S.L

Confidential. Copyrights Trigger-Foresight, All rights reserved 2

Disclaimer & Restriction of Liability

The following valuation of Olmeda Park, La Herrera Park and Corvera Park (hereafter “the parks”) has been conducted at the request of “Sunflower Gmbh & CO.kg” and “Gilatz Spain S.L” (hereafter “the Client”)

This opinion is provided for the information and benefit of the Board of Directors of “the client”, and is submitted to the Board of Directors in connection to the Valuation

It is agreed that “the client” and/or it’s shareholders may include, or make reference to, this opinion in, or in connection with, the financial reports submitted, or filed, as required by pertinent securities law, case law, or other sources of legal duty

Moreover, “the client” and/or its shareholders may make use of this opinion in any proceedings related to the approval of its valuation, including, but not limited to, in meetings with or deliberations before any person, entity and/or authority that “the client” and it’s shareholders deem fit

As subject to the engagement letter, the use of this opinion is permitted only by “the client’s” management and/or its shareholders. Trigger Foresight shall, under no circumstances, bare any liability, or hold any responsibility, towards a third party that receives this opinion with or without our consent, as mentioned before

In arriving at our opinion, we have relied upon, and assumed the accuracy and completeness of all of the financial and other information that was issued by “the client” without assuming any responsibility for any independent verification of any such information

We have further relied upon the assurances that “the client” is not aware of any facts or circumstances that would make any such information inaccurate or misleading


Disclaimer & Restriction of Liability (Cont.)

This valuation is based on forecasts and assumptions that rely on regulatory state information available by the 30th of September, including the primary assumption of the implementation of draft RD 9/2013. Draft RD 9/2013 is the last version available at the time of the valuation and at 30th of September 2013

However, on the 19th of November the Spanish media has announced that the Spanish government is intended to withdrawn draft RD 9/2013 with the intention of replacing it with a new draft RD version

The client has instructed us (on a letter signed at the 27th of November) to conduct the valuation based on the assumption of implementation of draft RD 9/2013 and based on regulatory state information available until th30th of September. It should be mentioned that the client has stated to us that he doesn't have any reliable information regarding the new version of the draft RD and it's implications on the valuation model. Furthermore, Trigger-Foresight lack the ability to estimate to what extent the new draft RD version is expected to influence this valuation

Trigger-Foresight claims no responsibility for the accuracy of these assumptions and forecasts. The great uncertainty regarding the regulatory state in Spain, creates a unique situation in which there is no possibility to create a standard valuation which is based on solid assumptions. Nevertheless, since according to IAS 36 the clients were required to perform a valuation, Trigger-Foresight was required to perform a ‘best estimate’ measure of the required impairment

It is important to clarify that Trigger-Foresight lacked the proper information to conduct a well-founded and precise estimation and thus the work may be subject to great changes as the regulatory framework becomes more certain. Furthermore, some of the assumptions are based on the company’s estimations and Trigger–Foresight lacked the ability to verify these assumptions, yet did not find them to be unreasonable



With respect to the financial information utilized, we assumed that such information has been reasonably prepared on a basis reflecting the best currently available estimates and judgments, and that such information provides a reasonable basis upon which we could perform our analysis and form an opinion

As subject to the engagement letter, we have not carried out a physical inspection of the properties and facilities of “the client” and have not made or obtained any evaluations or appraisals of the “the client’s” assets or liabilities (contingent or otherwise) other than publicly available information. We have not attempted to confirm whether “the client” has good title to its assets

As subject to the engagement letter, this opinion does not constitute a due diligence process , nor does it claim to take into account all information, tests or other information included in a true due diligence process , including, for example, the thorough examination of contracts and agreements. Note also that this opinion may in no way be construed as legal advice

The information in this opinion does not include all of the information required by a potential investor, and in no way presumes to determine the value of “the client” or its assets for any particular investor

This opinion refers to the valuation of the parks own by the client and not of “the client” as a whole

Trigger-Foresight has no personal interest in “the client” and/or it’s shareholders and no personal interest in the outcome of this valuation

Trigger-Foresight has conducted strategic and financial consulting processes for Shikun & Binui Group, as well as companies held by its shareholders and/or affiliated with Shikun & Binui. In addition, Trigger-Foresight has conducted a previous valuations of Olmeda Park and economic studies for the 3 parks. However, Trigger-Foresight is not financially dependent on Shikun & Binui and/or on Sunflower



Trigger-Foresight has received professional fees for the above mentioned services provided to Shikun & Binui Group and to the client. However, the opinion fee is in no way dependent on the opinion results

Trigger-Foresight has received an indemnification letter from “the client”, which includes the following:

• “The client“ confirms that all existing information necessary for this valuation regarding Gilatz was made available to Trigger-Foresight and that to the best of its knowledge there is no other relevant information that may affect the results of this valuation

• “The client” concurs that this valuation is based on estimated values and expectations about future results from the project’s activities, including some estimations made by Trigger-Foresight which are not precise and are subject to change

• “The Client” agrees that Trigger Foresight, and its respective personnel, shall not be liable to “the Client” for any claims, liabilities, losses, damages, costs or expenses relating to this Contract or the Services (“Claims”) for an aggregate amount in excess of one of “the fees" paid by “the Client” to Trigger Foresight , except to the extent finally judicially determined to have resulted primarily from the willful misconduct or gross negligence of Trigger-Foresight . Without derogating from the foregoing, “The Client” shall indemnify and hold harmless Trigger Foresight and its personnel from all claims, liabilities, or expenses incurred by Trigger Foresight or its personnel and which Trigger Foresight is not responsible for

• Without derogating from the foregoing in this Engagement Letter, “The Client” shall hold Trigger Foresight and its personnel harmless from any and all damages caused to The Client determined to have resulted from acts and/or omissions of The Client, including unlawful use and not according to this engagement, with the work product


Details of Appraiser

Managing Partner at Trigger-Foresight

More than 15 years experience in business/ strategy consulting

Leading role in tens of complex strategic and financial consulting projects with an emphasis on large companies (telecommunications, finance, holding companies, hi-tech, real estate)

Establishment of Foresight (1993) and its management (about 5 years controlled by Israel Discount Bank)

BA in Mathematics and Computer Science (B.Sc. with honors), MBA (MBA with honors)

Between the years 2001 to 2008 - Lecturer of finance (valuation) and entrepreneurship at the Herzliya Interdisciplinary Center

Shally Tshuva

Trigger-Foresight is a leading Israeli strategic and business consulting firm

Trigger Foresight is part of Deloitte’s global Strategy & Operations practice. The company has a team of over 30 consultants led by five highly experienced partners

Local and global clients include:

• Large and mid-size companies , Investors,

venture capitalists, private equity funds,

Government bodies and NGOs

Trigger-Foresight is demonstrating a leading position in three areas:

• Strategy (for the business and public sectors)

• Strategic Corporate Finance (economics

modeling)

• Business Development execution

Extensive experience in valuation for various needs:

• M&A processes (for foreign and local investors)

• Accounting needs (including IAS 36)

Trigger-Foresight

Shally Tshuva


Scope of Work and Sources of Information

The following presents a fair value analysis of the PV Parks as requested by "the Client" following the new regulation of RD 9/2013

The valuation is as of 30 September 2013

Our opinion was based in part on conversations held with the following members of Sunflower Sustainable Investments Ltd. (“Sunflower”) and Shikun & Binui Renewable Energy (“SBRE”) management teams:

• Batya Many, CFO, Sunflower

• Orly Kyram, CEO, Sunflower

• Shiri Etchin, CFO, SBRE

• Tsachi Peretz, Controller, SBRE

• Carmel Michaeli, Business Development, SBRE

Furthermore we held excessive discussions with all the Big 4 accounting firms (Deloitte, Pwc, E&Y, KPMG) in Spain and in Israel

Primary sources of information utilized in the formulation of our opinion were:

• Translation of draft of the Royal Decree developing the RD-L 9/2013 published on 13th of July 2013 as prepared by Brenes Abogados S.L.P. Legal consultantes

• Financial reports

• The client management’s financial performance projections for The Park

• Market research and relevant public information

• Financial Reports of publicly traded energy companies

• Analyst reports


Executive Summary

Source: Company’s documents

Valuation is calculated using the DCF approach, in nominal Euro terms

Scenario analysis was used in order to handle with the great uncertainty regarding the regulations and key assumptions

Valuation is based on a bottom up model to predict the expected cash flows from the operation

A rate of 10.68% (nominal terms) was used to discount the cash flows

Valuation Summary

On October 21st 2013, we were asked by Sunflower Gmbh & CO.kg and Gilatz Spain S.L to perform a valuation of the Parks for impairment testing according to International Accounting Standard 36

The valuation is as of 30/09/2013 The book value of Gilatz’ Parks

• €80.67M as of 30/09/2013 • €83.44M as of 31/12/2012 • €100.04M as “Purchased Value”

On July 13th, RD 9/2013 was published, and set a new remuneration system, which is an indication that the parks’ book value might be impaired and thus requiring this valuation

The first Draft to the Royal Decree developing RD-L 9/2013 is explaining the remuneration system in blurred terms and formulas. It should be noted that the above mentioned draft is subject to significant changes

The assumptions on this valuation is based on our best understanding of the remuneration system, as explained in the first draft, after several deep conversation with experts on the subject and yet the amount of uncertainty remains high, and we relied on company’s estimations as for several key assumptions. We have only reviewed the reasonability of the assumptions

General

This paper estimates the value of the parks as of 30 September, 2013 at € 62.9M


Agenda

2 Market and Business Environment Analysis

3 Valuation

1 Company and Business Overview

4 Appendix


Agenda


3 Valuation


4 Appendix


Company and Business Overview

Gilatz Spain SL and Sunflower Gmbn&co.kg

G e n e r a l

Gilats Spain SL is a Spanish company equally held by SBRE and Sunflower sustainable investments Ltd.

Sunflower Gmbn&co.kg is a German partnership equally held by SBRE and Sunflower Sustainable Investments Ltd.

Gilatz Spain and the German partnership owns three solar parks in Spain with total installed capacity of ~15 MW

Total investment of ~€100m based the potential embodied in Spanish incentives for solar energy

All parks were eligible for high feed-in tariffs (Construction and grid connection completed before 28-Sep-2008)

Source: Company Presentations

Olmeda Project

Located in Cuenca, East of Madrid

Nominal production capacity – 6MW

Total investment – ~€42m

Obtained non-recourse financing

Corvera Project

Located in Murcia, South of Madrid


Tracking technology


La Herrera Project

Located in Albacete, South-East of Madrid





Financial Results (for the 3 parks)

Source: Company, Financial Reports

P & L (€, '000)

AC kWh Produced

€ Thousands % of Revenue € Thousands % of Revenue € Thousands % of Revenue

Total Revenues

Operating Costs

O&M 1,090 12.1% 828 9.2% 435 7.3%

Insurance 96 1.1% 73 0.8% 29 0.5%

7% Energy Tax 0.0% 0.0% 416 7.0%

Total Operating Costs 1,186 13.1% 901 10.0% 880 14.8%

Operating Profit 7,846 86.9% 8,118 90.0% 5,066 85.2%

9,033 9,019 5,946

2011

25,695,741

2012

26,189,175

2013 H

12,168,249



Key Performance Indicators

Source: Company, Financial Reports

Energy Production Revenue and Operating Margin Evolution (€, '000) kWh

5,066

8,118 7,846

9,999 10,395

88% 88%

87%

90%

85%

2013 H1

25,030,431 24,384,97725,695,741

26,189,175

12,168,249

2013 H1


Agenda


3 Valuation


4 Appendix


Market and Business Environment Analysis

Solar - a key renewable energy technology

Source: Trigger-Foresight research

(1) Biomass and geothermal energy is sometimes referred to as clean but not renewable source of energy

(2) Hydro is not always qualified for RPS in order to encourage states to develop alternative and less common energy sources

Renewable Energy

Wind Energy Solar Energy Biomass Energy1

Geothermal Energy1

Marine Energy

Hydroelectric Energy2

Dams River

Streams Currents Waves Tides Biofuels Biogas

(Methane) Incineration

Solar Thermal

(CSP) Onshore Offshore PV

Bioethanol Biodiesel


PV (Photovoltaic)

CSP (Concentrated Solar Power)

Concentrated PV

Thin Film Crystallized

Silicon

Experimental Growing Traditional high concentration lenses or mirrors to focus sunlight onto miniature solar cells

a solar cell that is made by depositing one or more thin layers (thin film) of photovoltaic material on a substrate

A solar cell or converts light directly into electricity by the photovoltaic effect

Solar Power Tower

Dish Stirling

Experimental Niche Common

Parabolic Trough

Fresnel Reflector

special mirrors shaped as linear parabolas are used which reflect the sun rays on to an absorption tube

circular array of large individually tracking mirrors Heliostats are used to concentrate sunlight on to a focal point mounted at the top of a tower

dish-shaped mirror is used to reflect sunlight on to a central collecting location which is a focal point of the dish

line focus system which uses rows of flat mirrors in which solar radiation is concentrated on an elevated inverted linear absorber

Niche


Solar Energy Technologies

Source: Business Insights



PV - Installed Capacity

Source: REN21, Trigger Foresight Research

World Solar PV Capacity

Solar PV Capacity 2012

Global solar PV production recorded a robust growth of ~60% (CAGR) in 2008-2012 driven by government incentives in Germany, Spain, US and other countries

The top 10 countries accounted for ~93% of total installed solar PV capacity in 2010

(GW) (GW)

1624

40

71

100

32

16

7.2 7 6.65.1 4

2.6 2.4 2.1

7.4 6.7


248.7

73.8

95.2

79.7

426.1

124.7

177.7

123.7

Total Power

Wind Power

Biofuels

Solar Power


Market Size and Forecasts

Source: CleanEdge, REN 21 Global Reports 2013

The renewable energy market is expected to double in revenue terms over the next decade

The solar PV energy market is a rapidly growing market, and is expected to grow rapidly over the next decade

Solar PV Market Evolution Global Renewable Energy Projects Growth (B,$) (B,$)

11.215.6

20.3

29.6

36.1

71.2

91.6

73.8

123.7

…


Conventional (Fuel+Gas), 1%Solar,

6%

Neuclear, 8%

Other, 10%

Coal , 11%

Hydro, 17%

Wind power,

22%

CCGT Combined Cycle, 25%

0.20.7

3.3 3.43.8

4.555.1

Spain is one of the leading countries in solar energy production

In 2004 the government removed economic barriers relating to the connection of renewable energy to the electricity grid

A Feed-in Tariff policy for large scale solar plants was adopted

In 2007 the first European solar power plant began its operation in Spain

After the 2008 financial crisis a cap of 500MW per year was imposed for future increases in capacity, and on the end of 2010, subsidies were drastically cut

New regulations impacts the profitability especially for legacy plants (see more details in the next slides)


Spanish Solar Market - Overview

Solar Power Capacity

Electricity Generation Mix

Source: IDAE 2010; Goldman Sachs Global Investment Research, REN21 , Global Status Report 2013, REN21, Global Futures Report 2013

(2012)

(GWh)

General



Spanish Solar Market - Regulation

In 2004, legislation (RD 436/2004) was enacted to encourage the installation of solar power plants by offering high guaranteed feed-in tariffs (FiTs)

In 2008, legislation (RD 1578/2008) was updated to include Photovoltaic (PV) power plants

Following a rapid increase in solar power plants installation, the government imposed a limit on additional capacity growth of 500MW per year

In Aug. 2010 the government announced cuts of 5%-45% in the FiT for new PV solar plants

In 2010, new legislation (RD 1565/2010 and 14/2010) enacted the following changes:

• The reduction of the FiT for new projects

• Limits on the duration of current projects

• Imposed a new tax for use of transmission and distribution lines

• Limits on the electricity production guaranteed to be purchased at the FiT

In Dec. 2012, new legislation (RD 15/2012) was published, regarding General tax, equivalent to 7% of total revenues

In July 2013, a new remunerative regime on the investment(RD 9/2013) was announced and stats that profitability measure will be based, that will provide the owner a defined yield currently estimated to be calculated as 10-year government bonds plus 300 basis points

Regulation Milestone

Source: Herbert Smith Freehills Spain LLP 2013


The Data which will used in the calculation is yet to be determined and is expected to represent a normative cost structure of an efficient market player (Based on the first draft of Royal Decree developing RD-L 9/2013 as described by Brenes Abogados’ experts, which is still under legislation procedure and therefore is subject to changes)


First Draft of RD-L 9/2013

Source: A translation of the first draft of RD-L 9/2013 done by Brenes Abogados S.L.P.

Formula to calculate the total retribution to be perceived

Formula to calculate the supplement on investment costs

Formula to calculate the value of the asset

Formula to adapt the total retribution to be perceived to the real market price-If, the real market price achieved yearly was higher than the max cap, energy producers shall be obliged to reimburse the excess

Retribution Basic Formulas

On July 13th 2013, first draft of the Royal Decree developing the RD-L 9/2013 was published. The parks valuation was based on the content of the first draft, which is subject to future changes and great uncertainty

The main content of the first draft is the following:

• All installations which have been entitled to perceive a FIT will be automatically inscribed in this newly created Register

• installations will be eligible for retribution as long as they produce a minimum amount (Yet to be determined by the minister) of hours per year

Special Retribution Register


Agenda


3 Valuation


4 Appendix


Valuation

Methodology – IAS 36

This valuation was performed in accordance with International Accounting Standard 36 - “Impairment of Assets” (hereinafter “IAS36")

IAS36 requires that the value of an asset be accessed annually or whenever there is a sign indicating significant depreciation of the asset. In such events the asset must undergo a valuation process which should be compared to its book value. If the book value of the asset exceeds the resulting valuation, an impairment loss is recognized

The value of the asset shall be the greater of two amounts:

• The “fair value less cost to sell”

• The “value in use” of the asset

“Fair value less cost to sell” represents the amount received from the sale of an asset at an acceptable market price less the costs incurred by the transaction

“Value in use” is the present value of future cash flows expected to be derived from the asset

Due to the announcement of RD 9/2013, there has been an event of significant impact on the expected future cash flows derived from the subject of this valuation

The calculations and assumptions, presented herein, were performed in order to reflect the “value in use” as defined under IAS36


Valuation

Methodology - DCF

Valuation Methods:

• Discounted Cash Flow (DCF) - Value of asset equated to present value of expected future cash flows generated by the asset

• Comparable-based - Value of asset derived from pricing of 'comparable' assets generally calculated by multipliers of relevant financial figures (i.e. earnings, cash flows, book value or sales)

• Net Asset Value (NAV) – Value of asset equated to the sum the net value of its components

This work utilizes the DCF valuation method, which is most appropriate for this situation

The valuation is calculated in Euros, in nominal terms (in gross terms) for the purpose of asset impairment examination (according to IAS 36) of the parks as of 30/9/2013

Theoretically, the same results should be obtained by discounting pre-tax cash flows at a pre-tax discount rate or post-tax cash flows at a post-tax discount rate, as long as the post-tax discount rate is properly adjusted for the future tax expenses. This valuation was based on the latter. The pre-tax discount rate may be calculated as the value which equates in present value terms pre-tax cash flows with the valuation

From conversations we have conducted with market players, it was revealed to us that due to the high uncertainty regarding the regulation structure, the number of transactions has decreased dramatically, as market players are in a “hold” position until further information will be published. We assume that the cash flow from PV parks is nor dependent on the investor's characteristics (due to a clear production formula and a regulatory framework). Based on that, we assume that a valuation based on “Value in use” will be equal to a valuation based on “Fair Value”


Valuation

Methodology - Scenario Based Valuation

The fact that RD 9/2013 has not been finalized and there is a wide range of possibilities for its final outcome, creates a high level of uncertainty linked to the future results of the company and the corresponding cash flows

The valuation is based on the first draft of RD-L 9/2013, which is subject to significant changes in the future

It should be highlighted that this is a unique situation where the uncertainty regarding many parameters is very high, and according numerous market players with whom we have discussed, it is very difficult to provide an accurate estimate of those factors and thus to value the assets

The dependence of the park’s cash flow in the exact implementation of RD 9/2013 is so great that small changes can change the value dramatically

Following accepted valuation methodologies for cases where likely scenarios for future cash flows are highly divergent, the approach taken in this report is the scenario based methodology

The scenario based approach is widely accepted in the relevant professional literature as the favorable alternative for the valuation of assets under high uncertainty:

“Uncertainty is the hardest part of valuing high-growth technology companies, and the use of probability –weighted scenarios is a simple and straightforward way to deal with it.” (“Valuation-Measuring and Managing the Value of Companies” p. 315-325, by Copland, Koller & Murrin, McKinsey & Company, Inc.)

“The expected cash flows that we use to value risky assets can be estimated in one or two ways. They can represent a probability-weighted average of cash flows under all possible scenarios or they can be the cash flows under the most likely scenario. While the former is the more precise measure, it is seldom used simply because it requires far more information to compile.” (“Probabilistic Approaches: Scenario Analysis, Decision Trees and Simulations” by Aswath Damodaran.)


Valuation

Methodology - RD 9/2013 implications on the scenarios

RD 9/2013 defines a new remuneration system, in which tariffs will be calculated for different types of renewable energy projects, allowing each project to reach a defined pre-tax return on the investment

From discussions with market players we understand that the defined rate is expected to be 7.5%, based on the average yield in April-June 2013 of Spanish government 10 years bond (which is 4.5%) plus 300 basis points premium

We assume that the return rate will be 7.5% in any scenario, though it is important to clarify that this assumption in not certain and is not based on any official document

Due to the great variance in investment costs, deriving from factors such as technology, location, year of construction, etc. the regulator will define a ‘Normative Investment’ by which the return will be calculated

Since there is no information regarding the form by which the normative investment will be calculated (currently 2 consulting firms are working with the Spanish government to define that), there is a wide range of options for the amount of investment that would be recognized as the “Normative Investments” for the parks

In the best case scenario, all of the initial investment will be recognized. In the low case scenario, a big part of the investment would not be recognized, leading to a significantly lower NPV

In our scenario analysis we will explore several option on the range between the best and worst cases


Valuation

The Total Retribution Formula

The total retribution to be perceived by renewable energy producers will be determined as follows (Based on the first draft of Royal Decree developing RD-L 9/2013 as described by Brenes Abogados’ experts, which is still under legislation procedure and therefore is subject to changes)

Reᵢ= Rinvᵢ.Pn +Roᵢ*Egᵢ

Reᵢ = retribution to be perceived in a particular year ᵢ, expressed in €

Rinvᵢ = supplement on investment costs to be perceive by an installation-type in the year ᵢ, expressed in €/MW. Note that all “installation types” will be defined in the ministerial order to be issued

Pn: nominal installed capacity in MW. Note that only the nominal installed capacity inscribed in the Special Retribution Register shall be taken into account

Roᵢ: supplement on operation costs to be perceive by an installation type in the year ᵢ, expressed in €/MW

Egᵢ: energy generated in year ᵢ by each installation expressed in MWh. Note that only the energy generated by the nominal installed capacity as inscribed in the Special Retribution Register shall be taken into account



Valuation

The Investment Costs Supplement Formula

The supplement on investment cost to be perceived by renewable energy producers will be determined as follows (Based on the first draft of Royal Decree developing RD-L 9/2013 as described by Brenes Abogados’ experts, which is still under legislation procedure and therefore is subject to changes

Rinvᵢ=C.VNAj.(𝐓𝐑𝐅.(𝟏+𝐓𝐑𝐅)ᵛᴿ)

𝟏+𝑻𝑹𝑭 ᵛᴿ−𝟏

C = coefficient to adjust the retribution

VNAj= net Value of the asset as it was in the first day of the “first half period”. The “first half period” starts on the date the RD will be approved and shall last for three years

VR: remaining period until the end of regulatory life. VR is established by way of deducting the years the installations has been operating (that means as from date of the starting up permission) from the whole regulatory life to be determined in the ministerial order

TR: financial retribution rate. Note that for the first 6 years as from the date the RD is approved the financial retribution rate will be the rate paid for the Spanish 10-years-bond as handled in the secondary market during the months April, Mai and June 2013 plus 300 Basic Points



Valuation

The Asset Value Formula

The Assets Value to be perceived by renewable energy producers will be determined as follows (Based on the first draft of Royal Decree developing RD-L 9/2013 as described by Brenes Abogados’ experts, which is still under legislation procedure and therefore is subject to changes)

VNAȷ= vi.(1+TRF)ᵖ- 𝐈𝐧𝐠ᵢ − 𝐂𝐞𝐱𝐩ᵢ 𝟏 + 𝐓𝐑𝐅 ᵖ − ᵢᵖᵢ=𝟏

VNAᵢ: net value of the asset in €/MW on the first day of the first half period as established for an installation type

VI: value of the initial investments in €/MW for an installation type

TRF: financial retribution rate

P: number of years calculated as from the date stated on the starting up permission until the date the VNA is calculated

Ingᵢ: total income perceived by an installation type during yearᵢ

Cexp: estimation of the operation costs for an installation type during yearᵢ



Valuation

Electricity selling revenues

According to market players understanding of the first draft od RD-L 9/2013, additionally to perceiving this retribution rate ( “supplement on investment costs”), the energy producers will keep on selling energy in the market at the market price

The producers are entitled to be perceive that market price in addition to any supplement on investment costs they might get

This means that energy producers will be paid, on one hand, the supplements (note that in total there will be two supplements: one on investment costs and one on operational costs) and, on the other hand, they will get for the energy they produce the market price

These incomes (supplement + market price) shall make up their total expected income (or retribution) that energy producers

However, as the evolution of the market price is not exactly foreseeable, should the market price evolve in extreme ways (either falling much lower as expected or reaching unexpectedly high values) the total income eventually perceived by energy producers would adapt according to the following: • The Royal Decree also foresees that installations shall either pay or perceive an additional supplement

which aim it is to adapt the supplements calculated as set forth in points a) to c) above to real average market price achieved each year

• In order to do so, the ministerial order shall determine a minimum and maximum caps to the market price. If the real market price achieved yearly falls under the minimum cap, the energy producer will be entitled to perceive an payment additionally to the supplements already paid. The amount of that additional payments will be set forth in the ministerial order. If, on the contrary, the real market price achieved yearly was higher than the maximum cap, energy producers shall be obliged to reimburse a certain amount to be set forth the ministerial order



• All of the investment is recognized by the regulator as eligible capex for the return calculation

Valuation

Methodology - Scenarios Framework

Low Case High Case

Base Low Base High

• Very aggressive reduction in the

recognized capex

• Moderate reduction in the recognized capex

• Aggressive reduction in the recognized capex

Base Case

Assumptions regarding the probability of each scenario is required, and will be further discussed

Assumptions regarding which share of the actual parks’ investment will be recognized as a value of the initial investment

Some of the investment is not recognized by the regulator as capex, thus leading to a lower effective IRR


Valuation

Methodology – Definition of Probabilities and Scenarios

There is no mathematical way to determine the probabilities of each scenario, nor to the determine how much of the investment will be recognized in each scenario

Since there is a big uncertainty regarding the most likely scenario, we apply the accepted routine in such valuations and assume an equal probability distribution, assuming that the probability of each scenario is 25%

In order to deal with the uncertainty regarding the recognized investment level we conducted 2 analyses:

1. Benchmark analysis: Comparing the actual investment in the parks to those of comparable projects. We compered the price/MW of each park to an industry average range if we stand within a conceivable range and regarding to the average

2. Cost breakdown analysis: analyzing the breakdown of the different components of the parks’ investment in the parks (e.g. license, panels, invertors, etc.) and comparing them to the components of comparable projects


The cost varied according to the installation type, year of installment, geographic- between countries and within a country

In Europe, as shown in the figure below the spread is quite large

Valuation

Methodology- Scenarios Definition: Benchmark analysis

Source: U.S Dep. of energy, 2008 Solar Technology Market Report ; HIS Emerging Energy Research Sep 2011 “Europe Solar PV market and strategy 2011-2025

Corvera Olmeda La Herrera

8.20 €/kW 6.17 €/kW 6.23 €/kW

According to the parks pick power


Valuation

Methodology- Scenarios Definition: Benchmark analysis

The Parks Costs in USD are the following:

• Olmeda: $ ~8.8m per MW

• Corvera: $ ~11.6m per MW

• La Herrera: $ ~8.7m per MW

All parks prices are above the average

Olmeda and La Herrera are about 15% higher than the weighted average

Corvera1 is about 30% higher than the weighted average (taking into account the stabilized one Axis)

Note: The prices and the analysis above are functioning as an orientation tool and do not implied any specific conclusion regarding the price/range that will be recognize

Orientation Tool

U.S Dep. of energy, 2008 Solar Technology Market Report.

Prices are for Fixed Axis Mounting.

One Axis Mounting prices are 15-20% higher

Average Price Per kW

Source: (1) U.S Dep. of energy, 2008 Solar Technology Market Report.,

(1) Corvera has stabilized 2 axis.


Valuation

Methodology- Scenarios Definition: Cost breakdown analysis

Source: U.S Dep. of energy, 2008 Solar Technology Market Report, REN 21

Company’s Parks Breakdown Industry Breakdown

Physical components (e.g. panels, trackers and invertors) are more or less similar to the benchmark

Licenses is a unique component in the books as the parks were bought from a third party

Panels 42%Panels 49% Panels 49%

Trackers 15%

Inverters 6%

Inverters 7% Inverters 7%

Construction 28%

Construction 34% Construction 34%

Licenses 9% Licenses 10% Licenses 10%

Corvera Olmeda La Herrera

Panels 45%Panels 52%

Trackers 5%

Inverters 7% Inverters 6%

Material 10% Material 10%

Labor 10% Labor 10%

Overhead 23% Overhead 22%

Stabilized axis Fixed Axis


• All of the actual investment is recognized by the regulator as “initial investment” for the return calculation

Valuation

Methodology - Scenarios and Probabilities

Low Case High Case

Base Low Base High

• Very Aggressive reduction in the recognized investment

• 60% of the actual investment is recognized (license and a large portion of the entrepreneurial profit not recognized)

• Moderate reduction in the recognized investment

• 90% of the investment is recognized (only license not recognized)

25% 25% 25% 25%

• Aggressive reduction in the recognized investment

• 80% of the actual investment is recognized (license and some of the entrepreneurial profit not recognized)

Probabilities:

Base Case

Some of the investment is not recognized by the regulator as capex, thus leading to a lower effective IRR


Valuation

Main Assumptions

Source: Inflation.eu, Company’s documents , Oxford Economics (1) Trigger- foresight have not independently verified that assumption

Tariffs and Power Generation

The Rinv formula as described at the first draft which calculates the proper return on the investment, although it should be mentioned that the formula presented in draft can change in the final legislation

We assume the 7.5% return will remain for the entire operation period Electricity is sold at market price, currently stands at 0.05€, growing at inflation rate annually

(see appendix D)

Electricity production forecast is based on an opinion the company has received from an external technical expert for 2012 and actual production figures in recent years. The forecast assumes annual degradation rate of 0.5%

The production capacity will also be determined by the regulator- demanding a minimum capacity in order to be eligible for the full Rinv. We assume that the company will be able to meet this requirements, and thus will receive the full Rinv

Expenses

Actual operating expenses are assumed to meet the standard cost which will be determined by the regulator (based on companies’ assumptions that it is an efficient producer1)


Valuation

Main Assumptions (cont.)

Source: Inflation.eu, Company’s documents , Oxford Economics

Years of Operation

Assumed to be total of 30 years of operation (therefore an additional 25 years) reflecting the current licenses policy and the company’s assumption

Tax

Tax expenses were calculated based on a tax rate of 25% for Olmeda and Corvera and 30% for La Herrea, which is the appropriate tax rate for the client

The Parks enjoys a tax benefit in the form of accelerated depreciation of assets

Impact of tax benefit is calculated by depreciating the NPV of the projects

Depreciation period assumed as a 10 years starting from 30/9/13 (based on the company’s accounting policy)

There is uncertainty regarding the 7% revenue tax as a result of RD 15/2012. The company’s and market players assumption is that it will not apply on the retribution received, rather that it will only apply on the revenues sourced directly from electricity selling


Valuation

WACC - Methodology

Weighted Average Cost of Capital - represents the weighted cost of the capital used to finance a company’s activity

The WACC incorporates the cost of the capital provided by each funding source according to the relative weight of it in the total funding

It is customary to divide the WACC into two factors: the cost of debt (external capital) and the cost of equity (own capital)

𝑊𝐴𝐶𝐶 = 𝐾𝑑 1 − 𝑇𝐶𝐷

𝐷 + 𝐸+ 𝐾𝑒

𝐸

𝐷 + 𝐸

Equity Weight in total capital

Debt Weight in total capital

Tax Shield on financing expenses

Cost of Debt: return on capital required by third party lenders

Cost of Equity: return on capital required by stockholders

𝐾𝑒 = 𝑟𝑓 + 𝛽𝐿 𝑅𝑚 − 𝑟𝑓

𝛽𝐿 = 1 + 1 − 𝑇𝐶𝐷

𝐸𝛽𝑈

CAPM

WACC

Risk Free Rate - generally associated with Government long-term bonds

Risk Factor representing the relation of returns with these of the financial market as a whole

Market Risk Premium


..

Valuation

WACC Calculation1

(1) For further information see appendix B & C

Cost of Equity: Calculated based on CAPM:

•Risk Free Rate: 4.16% (Spanish 10 Year Governmental Bond)

• Market Beta (Unlevered): 0.54 (Derived from comparison to comparable companies in the market- see Appendix C)

•Mature Market Risk Premium: 5.60% (Based on Damodaran’s updated estimations for US Market)

•Specific Risk Premium: 3.5% (A premium representing the additional risk inherit in the size and illiquidity of the asset)

𝑫

𝑫+𝑬: Assuming no leverage according to current market conditions

Tax: Effective tax rate of 30% for La Herrera and 25% for the rest

… … Olmeda Corvera La Herrera

Component Value

Rf 4.16%

Beta Levelaged 0.54

MRP 5.60%

Ke 10.68%

Kd N\A

Tax Rate 25%

D\D+E 0%

WACC 10.68%

Component Value

Rf 4.16%

Beta Levelaged 0.54

MRP 5.60%

Ke 10.68%

Kd N\A

Tax Rate 25%

D\D+E 0%

WACC 10.68%

Component Value

Rf 4.16%

Beta Levelaged 0.54

MRP 5.60%

Ke 10.68%

Kd N\A

Tax Rate 30%

D\D+E 0%

WACC 10.68%


(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 3,531 3,531 3,531 3,531 3,531 3,178

542 549 554 561 569 765

FCF after Tax 3,852 3,857 3,860 3,865 3,871 3,182

NPV 33,021

Net Elec. Rev.

39,457

Valuation

Olmeda- Results by Scenario

High

Low

Base High

Base Low

Weighted Average NPV for Olmeda stands at € 28M

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 3,178 3,178 3,178 3,178 3,178 3,178

542 549 554 561 569 765

FCF after Tax 3,516 3,520 3,524 3,529 3,535 2,917

NPV 30,166

35,511

Net Elec. Rev.

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 2,825 2,825 2,825 2,825 2,825 3,178

542 549 554 561 569 765

FCF after Tax 3,179 3,184 3,188 3,193 3,199 2,917

NPV 27,311

31,565

Net Elec. Rev.

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 2,119 2,119 2,119 2,119 2,119 2,119

542 549 554 561 569 765

FCF after Tax 2,507 2,512 2,516 2,520 2,526 2,917

NPV 21,602

23,674

Net Elec. Rev.


(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 2,039 2,039 2,039 2,039 2,039 2,039

338 342 346 350 355 477

FCF after Tax 2,247 2,250 2,253 2,255 2,259 1,862

NPV 19,279

Net Elec. Rev.

22,797

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 1,835 1,835 1,835 1,835 1,835 1,835

338 342 346 350 355 477

FCF after Tax 2,053 2,056 2,058 2,061 2,065 1,709

NPV 17,630

20,517

Net Elec. Rev.

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 1,631 1,631 1,631 1,631 1,631 1,631

338 342 346 350 355 477

FCF after Tax 1,859 1,862 1,864 1,867 1,871 1,557

NPV

18,238

Net Elec. Rev.

15,982

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 1,223 1,223 1,223 1,223 1,223 1,223

338 342 346 350 355 477

FCF after Tax 1,471 1,474 1,476 1,479 1,482 1,251

NPV 12,685

13,678

Net Elec. Rev.

Valuation

Corvera- Results by Scenario

High

Low

Base High

Weighted Average NPV for Corvera stands at € 16.4M

Base Low


(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 372 377 380 385 391 525

525 377 380 385 391 397

FCF after Tax 2,567 2,570 2,572 2,575 2,579 2,015

NPV

Net Elec. Rev.

26,706

21,716

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 372 377 380 385 391 525

372 377 380 385 391 525

FCF after Tax 2,343 2,346 2,349 2,352 2,356 1,848

NPV

Net Elec. Rev.

24,035

19,843

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 372 377 380 385 391 525

372 377 380 385 391 525

FCF after Tax 2,120 2,123 2,125 2,128 2,132 1,681

NPV

Net Elec. Rev.

21,364

17,970

(K, €) 2014F 2015F 2016F 2017F 2025F 2038F

Eligible Capex

Rinv Payment 372 377 380 385 391 525

372 377 380 385 391 525

FCF after Tax 1,673 1,676 1,678 1,681 1,685 1,346

NPV

Net Elec. Rev.

16,023

14,223

Valuation

La Herrera- Results by Scenario

High

Low

Base High

Base Low

Weighted Average NPV for La Herrera stands at € 18.4M


Scenario Probability

High 25%

Base High 25%

Base Low 25%

Low 25%

Probability adjusted valuation

Olmeda Corvera La HerreraTotal

WACC 10.68% 10.68% 10.68% #REF!

Book Value Q3, 2013 34,455 22,215 24,003 80,674

NPV (30/09/2013) 28,025 16,394 18,438 62,857

Differnce from BV (6,430) (5,821) (5,565) (17,817)

Description

100% of Capex recognized





High 10%

Base High 40%

Base Low 40%

Low 10%



NPV (30/09/2013) 28,453 16,641 18,719 63,814

Difference from BV (6,002) (5,574) (5,284) (16,860)

Valuation

Gilatz probability adjusted valuation and Sensitivity Analysis

Sensitivity Analysis- Probabilities Distributions Valuation Summary

10-40-40-10 Distribution

20-30-30-20 Distribution


High 20%

Base High 30%

Base Low 30%

Low 20%



NPV (30/09/2013) 28,168 16,476 18,532 63,176



Applying a 7% revenue tax reduces the valuation by € ~4M, as a result of the decrease in free cash flow

The impact of the revenue tax is moderated by an increase in the tax shield that it creates

There is uncertainty regarding the incomes that will be subject to the 7% tax. Some assumes that the 7% revenue tax will only apply to the revenues generated from selling of the electricity and not on the supplement, while other assumes it will be apply to both.

Not only that shortening the operating period to 25 years does not reduce the valuation- it even increases it slightly

The reason for that, is that a reduction of the operation period to 25 causes an increase in the Rinv yearly payment and thus increases the NPV

25 Years of Operations

30 Years of Operations (Current Assumptions)

Valuation

Sensitivity Analysis (Cont.)

Sensitivity Analysis- Applying 7% revenue Tax

Sensitivity Analysis- Length of Operation Period

With 7% Revenue Tax Appling to All Revenues

(Electricity sells and Rinv Payment)

7% Revenue Tax Appling to Electricity sells only (Current Assumptions)


NPV (30/09/2013) 28,025 16,394 18,438 62,857



NPV (30/09/2013) 26,377 15,442 17,356 59,175



NPV (30/09/2013) 28,025 16,394 18,438 62,857



Total NPV (30/09/2013) 28,463 16,628 18,724 63,815



Wacc NPV

12.3% 25,338

11.9% 25,964

11.5% 26,619

11.1% 27,305

10.7% 28,025

10.3% 28,780

9.9% 29,573

9.5% 30,406

9.1% 31,283

Wacc NPV

12.3% 14,821

11.9% 15,187

11.5% 15,571

11.1% 15,973

10.7% 16,394

10.3% 16,836

9.9% 17,300

9.5% 17,788

9.1% 18,301

Wacc NPV

12.3% 16,697

11.9% 17,103

11.5% 17,527

11.1% 17,972

10.7% 18,438

10.3% 18,927

9.9% 19,440

9.5% 19,979

9.1% 20,545

Valuation

Sensitivity Analysis (Cont.)

A change of 1% in the WACC will lead to a change of up to € 4 Million in the aggregate valuation of all the 3 parks

Olmeda Corvera La Herrera


Agenda


3 Valuation


4 Appendix


Appendix

Appendix A - Olmeda High

Olmeda

AC kWh Produced

Revenues

Price

Electricty selling revenues

Net Electricty Revenues (After 7% tax)

Rinv Payment (in 2008-2012 Rinv=EBITDA)

Total Revenues

Depreciation for Tax

Profit before Tax

Therotic Tax

Accumelated Theorotic Tax

Actual Tax

FCF after Tax

Discounted Cash Flow

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,956,194 10,649,777 10,596,528 10,543,546 10,490,828 10,438,374 10,386,182 10,334,251 10,282,580 10,231,167 10,180,011 10,129,111 10,078,465

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

98,062 541,869 548,865 554,312 560,917 569,275 577,757 586,365 595,102 603,969 612,968 622,102 631,371

91,198 503,938 510,444 515,511 521,653 529,425 537,314 545,320 553,445 561,691 570,061 578,555 587,175

882,776 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

973,974 4,035,043 4,041,549 4,046,615 4,052,757 4,060,530 4,068,418 4,076,424 4,084,549 4,092,796 4,101,165 4,109,659 4,118,279

825,522 3,302,087 3,302,087 3,302,087 3,302,087 3,302,087 3,302,087 3,302,087 3,302,087 3,302,087 2,476,565 - -

148,452 732,956 739,462 744,528 750,670 758,443 766,332 774,338 782,463 790,709 1,624,600 4,109,659 4,118,279

37,113 183,239 184,866 186,132 187,668 189,611 191,583 193,584 195,616 197,677 406,150 1,027,415 1,029,570

37,113 220,352 405,218 591,350 779,017 968,628 1,160,211 1,353,795 1,549,411 1,747,088 2,153,238 3,180,653 4,210,223

37,113 183,239 184,866 186,132 187,668 189,611 191,583 193,584 195,616 197,677 406,150 1,027,415 1,029,570

936,861 3,851,804 3,856,683 3,860,483 3,865,089 3,870,919 3,876,835 3,882,840 3,888,934 3,895,118 3,695,015 3,082,244 3,088,709

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

924,579 3,569,443 3,228,981 2,920,171 2,641,444 2,390,072 2,162,666 1,956,937 1,770,814 1,602,427 1,373,374 1,035,035 937,087

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

10,028,073 9,977,933 9,928,043 9,878,403 9,829,011 9,779,866 9,730,966 9,682,312 9,633,900 9,585,731 9,537,802 9,490,113 9,442,662

0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

640,778 650,326 660,016 669,850 679,831 689,960 700,241 710,674 721,263 732,010 742,917 753,987 765,221

595,924 604,803 613,815 622,961 632,243 641,663 651,224 660,927 670,775 680,770 690,913 701,208 711,656

3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104 3,531,104

27.8% 30.4% 33.0% 35.6% 38.3% 41.1% 43.9% 46.8% 49.7% 52.7% 55.8% 58.9% 62.1%

4,127,028 4,135,907 4,144,919 4,154,065 4,163,347 4,172,767 4,182,328 4,192,031 4,201,879 4,211,874 4,222,017 4,232,312 4,242,760

- - - - - - - - - - - - -

4,127,028 4,135,907 4,144,919 4,154,065 4,163,347 4,172,767 4,182,328 4,192,031 4,201,879 4,211,874 4,222,017 4,232,312 4,242,760

1,031,757 1,033,977 1,036,230 1,038,516 1,040,837 1,043,192 1,045,582 1,048,008 1,050,470 1,052,968 1,055,504 1,058,078 1,060,690

5,241,980 6,275,957 7,312,186 8,350,703 9,391,539 10,434,731 11,480,313 12,528,321 13,578,791 14,631,759 15,687,264 16,745,341 17,806,031

1,031,757 1,033,977 1,036,230 1,038,516 1,040,837 1,043,192 1,045,582 1,048,008 1,050,470 1,052,968 1,055,504 1,058,078 1,060,690

3,095,271 3,101,931 3,108,689 3,115,549 3,122,510 3,129,576 3,136,746 3,144,024 3,151,409 3,158,905 3,166,513 3,174,234 3,182,070

12.75 13.75 14.75 15.75 16.75 17.75 18.75 19.75 20.75 21.75 22.75 23.75 24.75

848,432 768,184 695,546 629,794 570,273 516,392 467,615 423,458 383,481 347,289 314,522 284,855 257,994


Appendix

Appendix A - Olmeda Base High

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

10,028,073 9,977,933 9,928,043 9,878,403 9,829,011 9,779,866 9,730,966 9,682,312 9,633,900 9,585,731 9,537,802 9,490,113 9,442,662

0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

640,778 650,326 660,016 669,850 679,831 689,960 700,241 710,674 721,263 732,010 742,917 753,987 765,221

595,924 604,803 613,815 622,961 632,243 641,663 651,224 660,927 670,775 680,770 690,913 701,208 711,656

3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994

27.8% 30.4% 33.0% 35.6% 38.3% 41.1% 43.9% 46.8% 49.7% 52.7% 55.8% 58.9% 62.1%

3,773,918 3,782,797 3,791,809 3,800,954 3,810,237 3,819,657 3,829,218 3,838,921 3,848,769 3,858,763 3,868,907 3,879,201 3,889,649

- - - - - - - - - - - - -

3,773,918 3,782,797 3,791,809 3,800,954 3,810,237 3,819,657 3,829,218 3,838,921 3,848,769 3,858,763 3,868,907 3,879,201 3,889,649

943,479 945,699 947,952 950,239 952,559 954,914 957,304 959,730 962,192 964,691 967,227 969,800 972,412

4,785,979 5,731,678 6,679,630 7,629,869 8,582,428 9,537,342 10,494,646 11,454,377 12,416,569 13,381,260 14,348,486 15,318,287 16,290,699

943,479 945,699 947,952 950,239 952,559 954,914 957,304 959,730 962,192 964,691 967,227 969,800 972,412

2,830,438 2,837,098 2,843,856 2,850,716 2,857,677 2,864,743 2,871,913 2,879,191 2,886,577 2,894,072 2,901,680 2,909,401 2,917,237

12.75 13.75 14.75 15.75 16.75 17.75 18.75 19.75 20.75 21.75 22.75 23.75 24.75

775,840 702,599 636,292 576,259 521,906 472,693 428,135 387,788 351,255 318,174 288,217 261,089 236,522

2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,956,194 10,649,777 10,596,528 10,543,546 10,490,828 10,438,374 10,386,182 10,334,251 10,282,580 10,231,167 10,180,011 10,129,111 10,078,465

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

98,062 541,869 548,865 554,312 560,917 569,275 577,757 586,365 595,102 603,969 612,968 622,102 631,371

91,198 503,938 510,444 515,511 521,653 529,425 537,314 545,320 553,445 561,691 570,061 578,555 587,175

794,498 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994 3,177,994

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

885,696 3,681,932 3,688,438 3,693,504 3,699,647 3,707,419 3,715,308 3,723,314 3,731,439 3,739,685 3,748,054 3,756,548 3,765,169

754,154 3,016,616 3,016,616 3,016,616 3,016,616 3,016,616 3,016,616 3,016,616 3,016,616 3,016,616 2,262,462 - -

131,542 665,317 671,822 676,889 683,031 690,804 698,692 706,698 714,823 723,070 1,485,593 3,756,548 3,765,169

32,886 166,329 167,956 169,222 170,758 172,701 174,673 176,674 178,706 180,767 371,398 939,137 941,292

32,886 199,215 367,170 536,392 707,150 879,851 1,054,524 1,231,199 1,409,904 1,590,672 1,962,070 2,901,207 3,842,499

32,886 166,329 167,956 169,222 170,758 172,701 174,673 176,674 178,706 180,767 371,398 939,137 941,292

852,810 3,515,603 3,520,483 3,524,282 3,528,889 3,534,718 3,540,635 3,546,639 3,552,733 3,558,918 3,376,656 2,817,411 2,823,877

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

841,631 3,257,888 2,947,499 2,665,860 2,411,681 2,182,488 1,975,119 1,787,493 1,617,726 1,464,116 1,255,046 946,102 856,739

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax



Appendix

Appendix A - Olmeda Base Low

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,956,194 10,649,777 10,596,528 10,543,546 10,490,828 10,438,374 10,386,182 10,334,251 10,282,580 10,231,167 10,180,011 10,129,111 10,078,465

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

98,062 541,869 548,865 554,312 560,917 569,275 577,757 586,365 595,102 603,969 612,968 622,102 631,371

91,198 503,938 510,444 515,511 521,653 529,425 537,314 545,320 553,445 561,691 570,061 578,555 587,175

706,221 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

797,418 3,328,822 3,335,328 3,340,394 3,346,536 3,354,309 3,362,197 3,370,203 3,378,328 3,386,575 3,394,944 3,403,438 3,412,058

682,786 2,731,145 2,731,145 2,731,145 2,731,145 2,731,145 2,731,145 2,731,145 2,731,145 2,731,145 2,048,359 - -

114,632 597,677 604,183 609,249 615,391 623,164 631,052 639,058 647,184 655,430 1,346,585 3,403,438 3,412,058

28,658 149,419 151,046 152,312 153,848 155,791 157,763 159,765 161,796 163,858 336,646 850,859 853,015

28,658 178,077 329,123 481,435 635,283 791,074 948,837 1,108,602 1,270,398 1,434,255 1,770,902 2,621,761 3,474,776

28,658 149,419 151,046 152,312 153,848 155,791 157,763 159,765 161,796 163,858 336,646 850,859 853,015

768,760 3,179,403 3,184,282 3,188,082 3,192,688 3,198,518 3,204,434 3,210,439 3,216,533 3,222,717 3,058,298 2,552,578 2,559,044

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

758,682 2,946,333 2,666,018 2,411,549 2,181,918 1,974,903 1,787,572 1,618,049 1,464,638 1,325,805 1,136,717 857,170 776,392

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

10,028,073 9,977,933 9,928,043 9,878,403 9,829,011 9,779,866 9,730,966 9,682,312 9,633,900 9,585,731 9,537,802 9,490,113 9,442,662

0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

640,778 650,326 660,016 669,850 679,831 689,960 700,241 710,674 721,263 732,010 742,917 753,987 765,221

595,924 604,803 613,815 622,961 632,243 641,663 651,224 660,927 670,775 680,770 690,913 701,208 711,656

2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883 2,824,883

27.8% 30.4% 33.0% 35.6% 38.3% 41.1% 43.9% 46.8% 49.7% 52.7% 55.8% 58.9% 62.1%

3,420,807 3,429,687 3,438,698 3,447,844 3,457,126 3,466,547 3,476,107 3,485,811 3,495,658 3,505,653 3,515,796 3,526,091 3,536,539

- - - - - - - - - - - - -

3,420,807 3,429,687 3,438,698 3,447,844 3,457,126 3,466,547 3,476,107 3,485,811 3,495,658 3,505,653 3,515,796 3,526,091 3,536,539

855,202 857,422 859,675 861,961 864,282 866,637 869,027 871,453 873,915 876,413 878,949 881,523 884,135

4,329,978 5,187,399 6,047,074 6,909,035 7,773,316 8,639,953 9,508,980 10,380,432 11,254,347 12,130,760 13,009,709 13,891,232 14,775,367

855,202 857,422 859,675 861,961 864,282 866,637 869,027 871,453 873,915 876,413 878,949 881,523 884,135

2,565,605 2,572,265 2,579,024 2,585,883 2,592,845 2,599,910 2,607,080 2,614,358 2,621,744 2,629,240 2,636,847 2,644,568 2,652,404

12.75 13.75 14.75 15.75 16.75 17.75 18.75 19.75 20.75 21.75 22.75 23.75 24.75

703,247 637,014 577,037 522,724 473,539 428,995 388,654 352,119 319,029 289,058 261,912 237,323 215,050


Appendix

Appendix A - Olmeda Low

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,956,194 10,649,777 10,596,528 10,543,546 10,490,828 10,438,374 10,386,182 10,334,251 10,282,580 10,231,167 10,180,011 10,129,111 10,078,465

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

98,062 541,869 548,865 554,312 560,917 569,275 577,757 586,365 595,102 603,969 612,968 622,102 631,371

91,198 503,938 510,444 515,511 521,653 529,425 537,314 545,320 553,445 561,691 570,061 578,555 587,175

529,666 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

620,863 2,622,601 2,629,107 2,634,173 2,640,315 2,648,088 2,655,976 2,663,982 2,672,108 2,680,354 2,688,723 2,697,217 2,705,838

540,051 2,160,203 2,160,203 2,160,203 2,160,203 2,160,203 2,160,203 2,160,203 2,160,203 2,160,203 1,620,152 - -

80,812 462,398 468,904 473,970 480,112 487,885 495,773 503,779 511,905 520,151 1,068,571 2,697,217 2,705,838

20,203 115,600 117,226 118,493 120,028 121,971 123,943 125,945 127,976 130,038 267,143 674,304 676,459

20,203 135,803 253,029 371,521 491,549 613,520 737,464 863,409 991,385 1,121,423 1,388,565 2,062,870 2,739,329

20,203 115,600 117,226 118,493 120,028 121,971 123,943 125,945 127,976 130,038 267,143 674,304 676,459

600,660 2,507,002 2,511,881 2,515,681 2,520,287 2,526,117 2,532,033 2,538,038 2,544,131 2,550,316 2,421,580 2,022,913 2,029,378

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

592,786 2,323,223 2,103,055 1,902,927 1,722,391 1,559,733 1,412,477 1,279,161 1,158,463 1,049,184 900,060 679,305 615,696

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

10,028,073 9,977,933 9,928,043 9,878,403 9,829,011 9,779,866 9,730,966 9,682,312 9,633,900 9,585,731 9,537,802 9,490,113 9,442,662

0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

640,778 650,326 660,016 669,850 679,831 689,960 700,241 710,674 721,263 732,010 742,917 753,987 765,221

595,924 604,803 613,815 622,961 632,243 641,663 651,224 660,927 670,775 680,770 690,913 701,208 711,656

2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663 2,118,663

27.8% 30.4% 33.0% 35.6% 38.3% 41.1% 43.9% 46.8% 49.7% 52.7% 55.8% 58.9% 62.1%

2,714,586 2,723,466 2,732,477 2,741,623 2,750,905 2,760,326 2,769,886 2,779,590 2,789,437 2,799,432 2,809,576 2,819,870 2,830,318

- - - - - - - - - - - - -

2,714,586 2,723,466 2,732,477 2,741,623 2,750,905 2,760,326 2,769,886 2,779,590 2,789,437 2,799,432 2,809,576 2,819,870 2,830,318

678,647 680,866 683,119 685,406 687,726 690,081 692,472 694,897 697,359 699,858 702,394 704,968 707,580

3,417,976 4,098,842 4,781,961 5,467,367 6,155,094 6,845,175 7,537,647 8,232,544 8,929,903 9,629,761 10,332,155 11,037,123 11,744,702

678,647 680,866 683,119 685,406 687,726 690,081 692,472 694,897 697,359 699,858 702,394 704,968 707,580

2,035,940 2,042,599 2,049,358 2,056,217 2,063,179 2,070,244 2,077,415 2,084,692 2,092,078 2,099,574 2,107,182 2,114,903 2,122,739

12.75 13.75 14.75 15.75 16.75 17.75 18.75 19.75 20.75 21.75 22.75 23.75 24.75

558,063 505,844 458,529 415,655 376,804 341,598 309,694 280,780 254,576 230,827 209,301 189,791 172,106


Appendix

Appendix A - Corvera High

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

6,256,564 6,225,281 6,194,154 6,163,184 6,132,368 6,101,706 6,071,197 6,040,841 6,010,637 5,980,584 5,950,681 5,920,928 5,891,323

0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

399,785 405,742 411,787 417,923 424,150 430,470 436,884 443,393 450,000 456,705 463,510 470,416 477,425

371,800 377,340 382,962 388,668 394,459 400,337 406,302 412,356 418,500 424,735 431,064 437,487 444,005

2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165

27.8% 30.4% 33.0% 35.6% 38.3% 41.1% 43.9% 46.8% 49.7% 52.7% 55.8% 58.9% 62.1%

2,410,964 2,416,504 2,422,127 2,427,833 2,433,624 2,439,501 2,445,466 2,451,520 2,457,664 2,463,900 2,470,229 2,476,651 2,483,170

- - - - - - - - - - - - -

2,410,964 2,416,504 2,422,127 2,427,833 2,433,624 2,439,501 2,445,466 2,451,520 2,457,664 2,463,900 2,470,229 2,476,651 2,483,170

602,741 604,126 605,532 606,958 608,406 609,875 611,367 612,880 614,416 615,975 617,557 619,163 620,792

3,058,900 3,663,026 4,268,557 4,875,515 5,483,921 6,093,797 6,705,163 7,318,043 7,932,459 8,548,434 9,165,992 9,785,154 10,405,947

602,741 604,126 605,532 606,958 608,406 609,875 611,367 612,880 614,416 615,975 617,557 619,163 620,792

1,808,223 1,812,378 1,816,595 1,820,875 1,825,218 1,829,626 1,834,100 1,838,640 1,843,248 1,847,925 1,852,671 1,857,489 1,862,377

12.75 13.75 14.75 15.75 16.75 17.75 18.75 19.75 20.75 21.75 22.75 23.75 24.75

495,644 448,830 406,450 368,081 333,345 301,895 273,421 247,640 224,297 203,160 184,021 166,691 150,997

2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,270,877 6,644,448 6,611,226 6,578,169 6,545,279 6,512,552 6,479,989 6,447,590 6,415,352 6,383,275 6,351,358 6,319,602 6,288,004

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

63,708 338,075 342,439 345,838 349,959 355,173 360,465 365,836 371,287 376,819 382,434 388,132 393,915

59,248 314,410 318,469 321,630 325,462 330,311 335,233 340,228 345,297 350,442 355,664 360,963 366,341

509,791.14 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165 2,039,165

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

569,039 2,353,574 2,357,633 2,360,794 2,364,626 2,369,476 2,374,397 2,379,392 2,384,462 2,389,607 2,394,828 2,400,128 2,405,506

481,971 1,927,883 1,927,883 1,927,883 1,927,883 1,927,883 1,927,883 1,927,883 1,927,883 1,927,883 1,445,912 - -

87,069 425,691 429,750 432,911 436,743 441,593 446,514 451,509 456,579 461,724 948,916 2,400,128 2,405,506

21,767 106,423 107,438 108,228 109,186 110,398 111,629 112,877 114,145 115,431 237,229 600,032 601,376

21,767 128,190 235,628 343,855 453,041 563,439 675,068 787,945 902,090 1,017,521 1,254,750 1,854,782 2,456,158

21,767 106,423 107,438 108,228 109,186 110,398 111,629 112,877 114,145 115,431 237,229 600,032 601,376

547,272 2,247,151 2,250,196 2,252,566 2,255,440 2,259,077 2,262,769 2,266,515 2,270,317 2,274,176 2,157,599 1,800,096 1,804,129

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

540,098 2,082,422 1,883,961 1,703,901 1,541,392 1,394,852 1,262,270 1,142,315 1,033,782 935,581 801,943 604,482 547,357


Appendix

Appendix A - Corvera Base High

Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


Olmeda

AC kWh Produced

Revenues

Price




Total Revenues


Profit before Tax

Therotic Tax


Actual Tax

FCF after Tax


2013Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1,270,877 6,644,448 6,611,226 6,578,169 6,545,279 6,512,552 6,479,989 6,447,590 6,415,352 6,383,275 6,351,358 6,319,602 6,288,004

0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06

63,708 338,075 342,439 345,838 349,959 355,173 360,465 365,836 371,287 376,819 382,434 388,132 393,915

59,248 314,410 318,469 321,630 325,462 330,311 335,233 340,228 345,297 350,442 355,664 360,963 366,341

458,812.02 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248 1,835,248

0.3% 1.8% 3.6% 5.1% 6.9% 9.1% 11.3% 13.5% 15.7% 18.1% 20.4% 22.8% 25.3%

518,060 2,149,657.77 2,153,717 2,156,878 2,160,710 2,165,559 2,170,481 2,175,476 2,180,545 2,185,690 2,190,912 2,196,211 2,201,589

440,757 1,763,027 1,763,027 1,763,027 1,763,027 1,763,027 1,763,027 1,763,027 1,763,027 1,763,027 1,322,270 - -

77,303 386,630 390,690 393,850 397,683 402,532 407,454 412,449 417,518 422,663 868,641 2,196,211 2,201,589

19,326 96,658 97,672 98,463 99,421 100,633 101,863 103,112 104,379 105,666 217,160 549,053 550,397

19,326 115,983 213,656 312,118 411,539 512,172 614,035 717,148 821,527 927,193 1,144,353 1,693,406 2,243,803

19,326 96,658 97,672 98,463 99,421 100,633 101,863 103,112 104,379 105,666 217,160 549,053 550,397

498,734 2,053,000 2,056,044 2,058,415 2,061,289 2,064,926 2,068,617 2,072,364 2,076,166 2,080,024 1,973,751 1,647,158 1,651,192

0.13 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75 10.75 11.75

492,196 1,902,503 1,721,409 1,557,039 1,408,707 1,274,975 1,153,964 1,044,463 945,376 855,709 733,610 553,125 500,957

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

6,256,564 6,225,281 6,194,154 6,163,184 6,132,368 6,101,706 6,071,197 6,040,841 6,010,637 5,980,584 5,950,681 5,920,928 5,891,323

Sunflower Gmbh & CO.kg Gilatz Spain S...Trigger-Foresight has conducted strategic and financial...

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Transcript of Sunflower Gmbh & CO.kg Gilatz Spain S...Trigger-Foresight has conducted strategic and financial...