Q3 2016 REPORT - Building Energy

Q32016REPORT

“Ourmissionistobealeaderinthecreationofrenewableenergy,deliveringcompletesolutions,workingasaverticallyintegratedteamtodrive

performancethroughoutthevaluechainwhilecontinuouslydeliveringbothcommercialandutilityscalepowerplantsworldwide”

Q32016FINANCIALREPORT

1

BuildingEnergyisaglobalintegratedindependentrenewableenergyproducer.

BuildingEnergy’svaluepropositionistodriveperformancethroughoutthewholerenewableenergy

downstreamvaluechain,suchasdevelopment,financing,constructionandoperationaswellasowningand

managingSolarPV,Wind,BiomassandHydroelectricplantsovertheassetlifetime.

Foundedin2010,BuildingEnergyisoneofmostprominentItalian’sindependentrenewableenergypowerproducerssellingenergyfrom91MWofgreenpowergenerationassetsinSouthAfrica,UnitedStatesofAmericaandItaly.BuildingEnergysecuredthe

constructionofadditional272MWnetcapacityinfourdifferenttechnologiesthatareexpectedtoreachthe

noticetoproceedbytheendofnextyear.

BuildingEnergyhasin-housedevelopment,initialplantdesign,financingandoperationscapabilitiesandaperfect

recordofontimeonbudgetprojectdelivery;withaconsolidatedpresenceinAfrica,AmericaandMiddleEast

thecompanyhasasignificantnumberofgeneratingassetsformorethan2,500MWcurrentlyunder

development.

www.buildingenergy.it

BuildingEnergyataglance


2

Index

DISCLAIMER________________________________________________________________________________________________3

HIGHLIGHTS________________________________________________________________________________________________4

KEYFUGURES ______________________________________________________________________________________________5

FINANCIALSTATEMENTSASAT30/09/2016_______________________________________________________________6

BALANCESHEET__________________________________________________________________________________________________6

INCOMESTATEMENT _____________________________________________________________________________________________7

CASHFLOWREPORT______________________________________________________________________________________________8

NOTESTOTHEFINANCIALSTATEMENTSASAT30/09/2016______________________________________________9

BALANCESHEET(30/09/2016comparedtoFY2015) ____________________________________________________________________9

INCOMESTATEMENT(30/09/2016comparedto30/09/2015)____________________________________________________________14

EBITDAbysegment______________________________________________________________________________________17

PROJECTSTATUS _________________________________________________________________________________________18

PLANTSINCONSTRUCTION________________________________________________________________________________________18

PROJECTNEARNOTICETOPROCEED________________________________________________________________________________19

BACKLOGPROJECTS _____________________________________________________________________________________________19


3

DISCLAIMER

- Theseproformainterimconsolidatedfinancialstatementsarepreparedinaccordancewithinternationalaccountingstandard(IAS/IFRS),andarenotdifferentfromthethoseusedinthepreparationoftheannualconsolidatedfinancialstatementasmentionedintheGroup’sexplanatorynotesforthe2015ConsolidatedFinancialstatement,towhichthereforepleaserefer.

- WithregardsoftheconsolidationperimeterasofDecember31st2015,asshownatpages70-73ofgroup’sexplanatory notes for the 2015 Consolidated Financial statement:, the following main changes areoccurred:inclusions:

o Odyssey3LLC,ApolloSolarLLC,DaphneLLC(CornellHarfordandMusgravePVplantsspvs,USAentity);

o Sie Solar Srl included (Ita company established for future possible takeovers of operating pvplants).

exclusions:

o RefeelSolarUno(Romanianentity)

- The preparation of the interim consolidated financial statements in conformity with internationalaccountingstandardrequiresmanagementtomakejudgments,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassetsandliabilities,incomeandexpenses.

- Allthefiguresareexpressedin€/000,exceptedwherenotedotherwise.

- Theseproformainterimconsolidatedfinancialreporthasnotbeenaudited.


4

HIGHLIGHTS

- TheconstructionofthetwoUSApvplantsofHarford(2.8MW)andMusgrave(5.6MW)isongoingandboththeCODs(“CommercialOperatingDate”)areexpectedwithinthecurrentyear;theEllisTrackproject(8.3MW)isstillunderdevelopmentanditsconstructionstartisplannedbytheendof2017.

- TheUgandaproject-TororoNorthproject(10MWSolarPV)–reachedfinancialcloseinDecember2016andconstructionsiongoing.

- The financial close of the biomass project Mkuze, originally scheduled for February 2016, has beenpostponed.

- Theconstructionofthe30MWwindfarminIowaisongoing;CODisexpectedbyQ12017evenifseventurbines(outof10)willbeinoperationbytheendofcurrentyear;

- TheleasingcontractsoftheItalianSPVoperating8MWPVplantinItalyhavebeenrenegotiatedfollowingtheimplementationoftheDecreto“SpalmaIncentivi”;

- DuetofavorableGSEbidrelatedtothehydroplantpluriannualfeedintariff,BEGroupwillinvestintheconstructionandmanagementoftwoItalianhydroplants,abletoreachanaggregateproductionof13GWh/y.ConstructionstartisexpectedwithinQ12017andCODsareexpectedinH22018.


5

KEYFUGURES

(1) NetAssetValuecalculatedonthebasisofthecalculationmethodologysetoutintheTermsandConditionsoftheBondissuedasofJuly31st,2015.TheNet

AssetValuewillbeupdatedonaquarterlybasis.

30/09/15 €Thousand 30/09/16 D %

11.037 Revenues andotherincome 10.722 (315) (3%)

(1.785) EBITDA (1.954) (169) (9%)

(3.473) OperatingProfi t (3.135) 339 10%

(5.459) Profi t/(loss )beforeincometax (4.158) 1.301 24%

(5.812) Profi t/(loss )fortheperiod (5.208) 603 10%

(5.823) BuildingEnergyGroupprofit/(loss) (5.446) 377 6%

11 Profi t/(loss )tononconrol l inginterest 238 227 >100%

EBITDAbysegment

1.899 Powerproduction 2.691 791 42%

637 Operation&Maintenance 488 (150) (23%)

(1.172) Development&Construction (1.329) (157) (13%)

(3.150) Corporate&El imination (3.803) (653) (21%)

(1.785) Total (1.954) (169) (9%)

94.381 Totalassets 135.225 40.844 43%

31.831 Equity 27.580 (4.252) (13%)

36.390 Netfinancia l pos i tion 39.183 2.793 8%

143.032 Netassetva lue(1) 184.265 41.233 29%

variance


6

FINANCIALSTATEMENTSASAT30/09/2016

BALANCESHEET

€Thousand notes YtD30/09/16 FY2015 D

Property,plants andequipment 1 71.051 36.420 34.631

Intangibleassets 2 28.341 21.759 6.583

Goodwi l l 400 400 -

Investments va luedbytheequitymethod 3 13.217 14.113 (895)

Deferredtaxes 1.758 1.951 (194)

Othernon-currentassets 4 7.413 9.020 (1.607)

Totalnon-currentassets 122.181 83.663 38.518

Inventories 80 80 -

Tradeandotherreceivables 5 2.815 5.553 (2.738)

Currentfinancia l assets 0 51 (51)

Othercurrentassets 6 1.564 2.050 (486)

Accruals andprepayments 647 579 68

Taxreceivables 7 2.403 2.189 213

Cashandcashequiva lents 4.042 9.894 (5.852)

Totalcurrentassets 11.550 20.396 (8.846)

Noncurrentassetava i lableforsa le 1.493 1.493 -

Noncurrentassetavailableforsale 1.493 1.493 -

TOTALASSETS 135.225 105.553 29.672

Sharecapita l 12.000 12.000 (0)

Sharepremiumreserves 17.020 17.020 -

Reserves andreta inedearnings (2.116) 8.457 (10.573)

Profi t/(loss )oftheperiod (5.446) (9.748) 4.302

TOTALGROUPSHAREHOLDERS’SEQUITY 21.458 27.728 (6.271)

Equityofnon-control l inginterest 5.884 2.018 3.867

Profi t/(loss )ofnon-control l inginterest 238 237 1

TOTALEQUITY 27.580 29.983 (2.403)

Debttowards banks andotherlenders >1 8.1 53.960 49.627 4.333

Deferredtax 746 197 549

Staffrelatedfunds 754 601 153

Provis ions forri sks 178 190 (12)

Totalnon-currentliabilities 55.638 50.615 5.023

Tradeandotherpayables 9 10.743 12.626 (1.883)

Taxl iabi l i ties 10 2.930 1.824 1.106

Debits towards banks andotherlenders <1 8.2 32.571 5.979 26.592

Accruals anddeferra ls 329 11 317

Othercurrentl iabi l i ties 11 5.434 4.513 921

Totalcurrentliabilities 52.007 24.955 27.053

TOTALLIABILITIES 107.645 75.569 32.075

TOTALLIBILITIESANDEQUITY 135.225 105.553 29.672


7

INCOMESTATEMENT

30/09/15 €Thousand notes 30/09/16 D

3.271 Revenues 12 4.346 1.075

232 Otheroperatingrevenues 477 245

7.533 Increaseinintangibleassets forinternal work 13 5.898 (1.635)

11.036 Totalrevenuesandotherincome 10.722 (315)

(38) Rawmateria ls ,semi-finishedandfinishedproducts (53) (15)

(7.344) Services 14 (7.005) 339

(4.845) Personnel (5.379) (534)

(595) Otheroperatingcosts (238) 356

(1.688) Depreciation,amortizationandprovis ions 15 (1.181) 507

(3.474) Operatingprofit(EBIT) (3.135) 339

(2.025) Financia l incomeandcharges 16 (92) 1.934

40Shareofprofi tfromparticipatinginterestva luedbytheequitymethod

17 (932) (972)

(5.459) Profit/(loss)beforetax (4.158) 1.301

(352) Incometax (1.050) (698)

(5.811) Resultoftheyear (5.208) 603

(0) Othercomprehens iveincome - 0

(5.812) Netcomprehensiveresultoftheyear (5.208) 604


8

CASHFLOWREPORT

€Thousand YtD30/09/16 FY2015

Profit(loss)beforeincometaxes,interest,dividendsandgains/lossondisposal) (2.082) (8.112)

Cashflowbeforechanges innetworkingcapita l 976 7.721

Cashflowafterchanges innetworkingcapita l 4.484 980

Cashflowafterotheradjustments 986 2.962

A)Cashflowsfromoperatingprofit(indirectmethod) 4.364 3.552

B)Cashflows frominvestingactivi ties

Fixedassets (35.797) (18.126)

Intangibleasset (6.598) (12.056)

Financia l asset 895 (1.760)

CurrentFinancia l asset 1.801 (129)Acquis i tionordisposal ofsubs idiaries orotherbus iness units netofcashandcashequiva lentsB)Cashflowsfrominvestingactivities (39.700) (32.071)

C.Cashflows fromfinancingactivi ties

thirdpartsources 29.484 34.859

C)Cashflowsfromfinancingactivities 29.484 34.859

Increase(decrease)incash (5.852) 6.339

Cashavai lableatbeginningoftheyear 9.894 3.555

Cashavai lableattheendoftheyear 4.042 9.894


9

NOTESTOTHEFINANCIALSTATEMENTSASAT30/09/2016

BALANCESHEET(30/09/2016COMPAREDTOFY2015)

Capitalexpenditureinpropertyplant&equipmentvariance

Increaseofk€8.333occurredinQ3mainlyduetothefollowingassetsunderconstruction:

- Iowawindplant(+k€5.671);- CornellUniversitypvplants(formallyHarfordandMusgrave,whoseconstructionbeganinJulyandAugust

2016;+k€3.015)

Tabbelowoutlinesthebookvalueofthemainfixedassetsbytypeandgeographicalarea:

YtD30/09/16 FY2015 D

1 Property,plantsandequipment 71.051 36.420 34.631

(€/000) notes

14.027 BookvalueofITAoperatingpvplants;

9.229 BookvalueofUSAoperatingpvplants;

46.228 BookvalueofUSAunderconstructionwindandpvplants;

903 BookvalueoflandpurchasedinSerbiaandChile;

663 Otherfixedasset.

71.051

YtD30/09/16 FY2015 D

2 Intangibleassets 28.341 21.759 6.583


10

Expenditureinintangibleassetsandcostcapitalizationvariance

Increaseof intangibleassettillSeptember,30th2016mainlydueto internalcapitalizationofdirectand indirectdevelopmentcosts;outofthetotal increaseofthefirstninemonths(k€6.583),the71,8%arisesfrominternaldevelopmentactivities(k€4.762).Nomaterialwriteoffoccurredduringtheperiod.

ThevarianceismainlyduetoassociatedcompaniesREISA,theJVGumaBuildingEnergyandWBHOBuildingEnergy(Africa)andRES(USA);netoftheexchangerateeffect,mainitemsare:

Thebalanceismainlycomposedby:

YtD30/09/16 FY2015 D

3 Investmentsvaluedbytheequitymethod 13.217 14.113 (895)

(€/000) notes

11.984

REISAisthespvowneroftheKathuPVplant,haldat10%;ithasacumulatednegativeimpact(K€-1.068)arisingfromthefairvalue’samortizationdeterminedatthetimeofinitialrecognitionbyusingtheequitymethod.(Thevalueoftheinvestment,sodetermined,representstheGroup’sshareoftheKathuplantfairvalueandthisiswhyisamortizedonthebasisofthePPAduration),meanwhiletheoperatingresultofthefirstninemonthsispositiveevenifnotmaterial(k€28);

938 WBHO/BuildingEnergyisEPCcontractor(ownedat30%)involvedinKathupvplantconstruction;notmaterialimpactrecognizedatSeptember,30th2016

233 Guma/BuildingEnergyistheO&MserviceproviderforpvKathuplant(ownedat51%);positiveimpactatYtdp/lfork€226;

63 Otherinvestment.

13.217

YtD30/09/16 FY2015 D

4 Othernon-currentassets 7.413 9.020 (1.607)


11

DecreaseofthetradereceivablesareduetothecashinofthereceivablestowardReisa(k€3.600)relatedtothesuccessfees,occurredinFebruary2016butrecognizedinDecember2015:outstandingreceivablescanbesplitregardingtheGroupmainbusinessdepartmentasfollows:

Thebalanceismainlycomposedby:

ThemainGrouptaxassetscanbesplitasfollows:

Thedetailissplitbelow:

(€/000) notes

3.874 M/ltermreceivablefromtheassociatedentityREISA(notconsolidated);

1.745 ShareholderloantothePSEPassociatedentity(notconsolidated);

821 DSRAontheItalianSPV(asguaranteesfortheleasingcompaniesthatfundedtheconstructionofthe5pvplants);

444 RestrictedcashforUSApvconstructionandotherprepayment;

465 PrepaymentandreceivabletowardsnonconsolidatedGroupsentities;

64 Other.

7.413

YtD30/09/16 FY2015 D

5 Tradeandotherreceivables 2.815 5.553 (2.738)

(€/000) notes

933 energysalereceivablesfromItalianIPPspv;

765 energysalereceivablesfromUSAIPPspv;

607 o&mactivityreceivablesfromItalianserviceprovidertowardthirdpartplants;

510 HoldingandDevelopmentactivitiesreceivableandotherreceivables.

2.815

YtD30/09/16 FY2015 D

6 Othercurrentassets 1.564 2.050 (486)

(€/000) notes

858 RestrictedcashforUSApvconstructionandotherprepayment(within1year);

628 Otherprepaymentandreceivablefromthirdpart

78 Other.

1.564

YtD30/09/16 FY2015 D

7 Taxreceivables 2.403 2.189 213

(€/000) notes

319 VatrefundclaimfromItalianspv;

1.383 Vatcreditrecognizedduringtheperiod;

666 Directtaxasset;

35 Othertaxassets.

2.403

YtD30/09/16 FY2015 D

8.1 Debttowardsbanksandotherlenders>1y 53.960 49.627 4.333


12

Detailsplitbelow:

Detailsplitbelow:

Detailsplitbelow:

(€/000) notes

31.912BeSPA(ITA):ofwhich,k€30.412relatedtotheTHCPbondaccountedforusingtheamortisingcostaccountingissue,andk€1.500forbankfacil itiestowardBancaIntesa;

12.049 m/ltermdebtstowardleasingcompanieswhofinancedtheconstructionofthefiveItalianoperatingopvplats;

7.990 Zevoblox(Africa):m/longtermFutureGrowthfacil ity;

1.659 Odissey2(USA):fundobtainedfromNationalCooperativeBankrelatedtotheconstructionofCornellGenevapvplant;

282 Beam(USA);fundobtainedfromHannonArmstrongBankrelatedtotheconstructionofCornellSnyderRoadpvplantpayableinm/lterm;

62 SolarPiemonte(Chile):thirdpartshareholdersloan;

6 Other.

53.960

YtD30/09/16 FY2015 D

8.2 Debitstowardsbanksandotherlenders<1y 32.571 5.979 26.592

(€/000) notes

3.141BeSPA(ITA):k€721asbankoverdraft;k€450fromMontePaschiSiena;k€500fromIntesaSanPaoloandk€1.470obtainedfromtherelatedpartiesSolarNRG;

584 ItalianoperatingSPV:fromm/ltermdebtstowardleasingcompanies;

442 Zevoblox(Africa):shorttermFutureGrowthfacil ity;

341Odyssey2(USA);fundobtainedfromNationalCooperativeBankrelatedtotheconstructionofCornellGenevapvplantpayableinshortterm;

905 Behus(USA):MPSshorttermloan;

26.691BEWI(USA):HannonArmstrongconstructionloanobtainedfortheconstructionoftheIowawindplant.Theloanwill bepaidatCOD,andwill bereplacedby:a) theincomingportionofequitythattheTEI(“taxequityinvestor”)will inflowintherelevantcompany,and,b) bynewHannonArmstrongloanagreement(of10yearduration);

455Beam(USA);fundobtainedfromHannonArmstrongBankrelatedtotheconstructionofCornellSnyderRoadpvplantpayableinshortterm;

11 Other.

32.571

YtD30/09/16 FY2015 D

9 Tradeandotherpayables 10.743 12.626 (1.883)

(€/000) notes

7.352 Tradepayablearisingfromholdinganddevelopmentactivities;

1.740 PayablefromsuppliersinvolvedintheconstructionofwindandpvplantsinUSA

1.047 PayablefromsuppliersamongtheitalianIPPspv;

394 PayablefromsuppliersamongtheitalianO&Mserviceprovider;

211 PayablefromsuppliersamongtheUSAIPPspv.

10.743

YtD30/09/16 FY2015 D

10 Taxliabilities 2.930 1.824 1.106


13

Detailsplitbelow:

(€/000) notes

2.351 Wittholdingtaxdueonbehalfofemployeesorotherthirdpart;

578 TaxpayableestimatedontotheYtDresult

2.930

YtD30/09/16 FY2015 D

11 Othercurrentliabilities 5.434 4.513 921

(€/000) notes

1.435 Payabletowardemployeeseforsalaries,mboanddeferredcompensation;

1.340 Payabletowardegiptyanentitiesholdforsale;

914 Payabletowardsocialsecuityinstitution;

491 AccrualforwindplantEPCsuppliers;

456 DeferredrevenuesarisingfromIPPandO&Mactivitiesthatwill beexpensedinP/Linnextperiod;

133 Accrualforinterestandinterconnectioncost;

665 Otherpayabletowardthirdparts.

5.434


14

INCOMESTATEMENT(30/09/2016COMPAREDTO30/09/2015)

Revenuebreakdownisthefollowing:

Revenuesfromenergysalesandpowerproductiondetailedbyeachoperatingplantsbelow:

30/09/16 30/09/15 D

12 Revenues 4.346 3.271 1.075

(€/000) notes

3.329 IPPrevenues,ofwichk€2.071arisingfromITApvplants,k€1.258fromUSApvplantsandk€91fromenergytradingactivity

550 O&MservicesrenderedtowardITAthirdpartspvplants;

466 Advisoryservicesrenderedtowardthirdparts.

4.346

plant technology power 30/09/16 30/09/15 pricecomponents

Ascoli PV 0,8 848.365 853.610 (5.245) (1%) marketprice+fit("IVContoEnergia")Medole PV 0,9 1.014.263 1.020.182 (5.919) (1%) marketprice+fit("IVContoEnergia")Asola PV 4,0 3.964.449 3.929.544 34.905 1% marketprice+fit("IVContoEnergia")Ostellato PV 1,0 960.084 970.197 (10.113) (1%) marketprice+fit("IVContoEnergia")Voghera PV 0,8 761.965 743.590 18.375 2% marketprice+fit("IVContoEnergia")KWhTotalItaly 7.549.127 7.517.123 32.003 0%ItalyenergySales(€/000) 2.071 1.713 359 21%

CornellSnyderroad PV 2,1 1.995.595 1.796.547 199.048 11% marketprice+fit("Niserdaincentive")CornellGeneva PV 2,8 2.426.332 - 2.426.332 -KWhTotalUSA 4.421.927 1.796.547 2.625.380 >100%USAenergySales(€/000) 998 580 418 72%

ArabiaSaudita GETS 20.840 n/a n/a - PPAKWhGETSTotal 20.840 n/a n/a -GETSenergySales(€/000) 3 n/a n/a -

EnergyTrading(€/000) 258 n/a

KWhTotal 11.991.894 9.313.670 2.678.223 29%Energysales 3.329 2.292 1.037 45%

D


15

O&Mrevenuesandtechnicaldatadetailedbelow:

Increasemainlyduetothecapitalizationofinternalman-hoursfordevelopmentactivitiesofGroup’sprojects:thetabbelowshowsamountandpercentagecontributionaccordingtothemainGroupentities:

plant 30/09/16 30/09/15 D

Ascoli 0,8 0,8 -Medole 0,9 0,9 -Asola 4,0 4,0 -Ostellato 1,0 1,0 -Voghera 0,8 0,8ThirdParties 28,0 18,7 9,3MWTotalItaly 35 26 9,3Italyo&mservices(€/000) 1.008 768 239consolidationentries(€/000) (458) (215) (243)Netrevenues(€/000) 550 553 (4)

CornellSnyderroad 2,1 2,1 -CornellGeneva 2,8 2,8 -ThirdParties 1,2 1,2 -MWTotalUSA 6 6 -USAo&mservices(€/000) 93 93consolidationentries(€/000) - -Netrevenues(€/000) 93 - 93

Kathu 81,0 81,0 -MWTotalSA 81,0 81,0 -SAO&Mservices(€/000) 275 376 (101)consolidationentries(€/000) - -Netrevenues(€/000) 275 376 (101)

MWTotal 122,6 113,3 9,3Totalaggregatedrevenues(€/000) 1.376 1.145 231consolidationentries(€/000) (458) (215) (243)TotalConsolidatedRevenues 917 929 (12)

30/09/16 30/09/15 D

13 Increaseinintangibleassetsforinternalwork 5.898 7.533 (1.635)

(€/000) notes

4.603 InternalcapitalizationfromParentCompany(68%)

993 InternalcapitalizationfromSouthAfricanSubholding(27%)

302 InternalcapitalizationfromNorthAmericaSubholding(4%)

5.898

30/09/16 30/09/15 D

14 Services (7.005) (7.344) 339


16

Tabbelowshowsthebreakdownaccordingtothenatureofthebusiness:

Maincausesoftheincreaseare:

- Increaseof IPPcost (related to the increaseofenergy tradingsalesperformedbyHomes),and to theincreaseoftheUSenergysales,duetothecompletionoftheGenevapvplant;

- Increaseofdevelopmentcostnoteligibleforcapitalization.

Lowerlevelbetweenthepreviousperiodduetoabsenceofanyimpairmentinthesefirstninemonths,insteadat30thSeptember2015recognizedimpairmentequaltok€598relatedtobusinessactivitiesinSantoDomingo.

Compositionreportedinthetabbelow:

Detailreportedinthetabbelow:

30/09/16 30/09/15 D

IPPcosts (632) (310) (322)

O&Mcosts (493) (355) (138)

D&Ccosts (4.773) (4.945) 172

Corporatecosts (1.107) (1.734) 627

Totalcosts(€/000) (7.005) (7.344) 339

30/09/16 30/09/15 D

15 Depreciation,amortizationandprovisions (1.181) (1.688) 507

30/09/16 30/09/15 D

16 Financialincomeandcharges (92) (2.025) 1.934

(€/000) notes

679 financialincomefrombankandnonfromconsolidatedentity

(2.908) financialchargesonprojectfinancingpartiallyoffsetbythecapitalizationofinterestattributabletospecificdevelopment

1.306 exchangerateincome

832 recognizationofpositiveeffectarisingfrompastyearsauditadjustment

(92)

30/09/16 30/09/15 D

17 Shareofprofitfromparticipatinginterestvaluedbytheequitymethod (932) 40 (972)

(€/000) notes

210 GumaBuildingEnergy(proquota ofperiodresult)

(83) RES(proquota ofperiodresult)(1.059) REISA(periodresult+proquota amortisationoffairvalue)

(932)


17

EBITDAbysegment

Building Energy is focus on the following business segments: Power Production, Operation andMaintenance(O&M), Development & Construction, and Corporate. The purpose of the segment report is to provide acomprehensivesetofinformationontheprofitabilityoftheactivitiesoftheindividualsegmentsinordertopresentrevenuesandmarginsofdevelopment,construction,operationandmaintenanceservicesofcontrollingentitiesthatareeliminatedintheGroupconsolidationprocess.

SegmentFinancial30/09/2016

SegmentFinancial30/09/2015

IPP O&M D&C Corporate Elimination 30/09/16

Revenues 3.329 1.118 4.046 445 (4.593) 4.346

Changeinworkinprogress - - - - - -

Otheroperantingincome - - - 480 (3) 477

Incr.ofassets forint.work - - 2.603 - 3.295 5.898

Rawmateria ls - - - (53) - (53)

Costofservices (632) (493) (4.773) (2.051) 944 (7.005)

Labour - (137) (3.206) (2.037) - (5.379)

OtherOperatingExpenses (7) - - (231) 0 (238)

EBITDA 2.691 488 (1.329) (3.446) (357) (1.954)

IPP O&M D&C Corporate Elimination 30/09/15

Revenues 2.292 1.145 5.315 364 (5.846) 3.271

Changeinworkinprogress - - 0 - - 0

Otheroperantingincome - - - 267 (35) 232

Incr.ofassets forint.work - - 2.026 - 5.507 7.533

Rawmateria ls - (2) - (36) - (38)

Costofservices (310) (355) (4.945) (2.107) 373 (7.344)

Labour - (150) (3.568) (1.127) - (4.845)

OtherOperatingExpenses (83) - - (512) - (595)

EBITDA 1.899 637 (1.172) (3.150) (0) (1.785)


18

PROJECTSTATUS

ThissectionisintendedtorepresentBuildingEnergy‘smainprojectsunderdevelopment.TheaimistoprovideahighlevelinsightonGroup’sfutureoutlookintherenewableenergymarket.

ProjectsunderdevelopmentdependingontheirstatusarecategorizedasinNearNoticetoProceed,BacklogandPipeline.

MinimumrequirementsforaprojecttobeincludedintheNearNoticetoProceedare:(i)inpublictendermarkets,projects reached the awarding of preferred bidder status and/or secured financing; (ii) in regulated markets,projectsneedtohaveobtainedmainpermits(i.e.EIA)and/orsecuredPPAsagreementsand/orsecuredfinancing.NearNoticetoProceedprojectswithasecuredofftakeagreementandfinancinghaveaprobabilityofrealizationhigherthan90%.

TobeincludedinBacklog,projectsneedstohavereachedbidawaitingstatusand/orhavebeshortlistedincaseofpublic tender markets; while in regulated andmerchant markets, Backlog projects needs to have obtained apositive outcome from the connection identification and/or have undertaken the land optioning and/or thefinancial model can assure the return threshold. The remaining part of the projects under development areincludedinthePipelineincaseofapositiveresultfromapreliminaryresourceavailabilityscreeningand/orhaveinitiatedtheobtainingpermittingprocess.

PLANTSINCONSTRUCTIONThedetailisshowninthefollowingtab.

30/09/16 30/06/16 31/03/16 31/12/15 30/09/15 30/06/15

Inoperation 94 94 91 91 91 91

Inconstruction 38 30 30 33 3 -

Nearnoticetoprocide 267 272 236 233 263 255

Backlog 505 436 522 533 533 183

Pipel ine 1.770 1.876 1.668 1.753 1.753 1.638

TotalMW 2.674 2.708 2.547 2.643 2.643 2.167

netassetva lue(€/000) 184.265 168.754 174.654 184.603 143.032 145.786

technology 30/09/16 30/06/16 D

Iowa(USA) wind 30,0 30,0 -

Harford(USA) pv 2,8 - 2,8

Musrgave(USA) pv 5,6 - 5,6

TotalMW 38,4 30,0 8,4


19

PROJECTSNEARNOTICETOPROCEEDAsatSeptember,30th2016,theCompanyhasidentifiedeightprojectstobeclassifiedasNearNoticetoProceed,foratotalcapacityof267MWofwhich:

BACKLOGPROJECTSAsatSeptember,30th2016,theGroup’sbacklogportfolioconsistsinprojectsfortstotalof506MW,ofwhich:

TheBoardofDirectorsofBuildingEnergyS.p.A.

Milan,December12th,2016.

MW notes

217 AfricaandMiddleEast

5 EastEurope

45 LatinAmerica

267

MW notes

477 AfricaandMiddleEast

3 EastEurope

9 LatinAmerica

17 NorthAmerica

505

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Documents

Q3 2016 REPORT - Building Energy