Good morning, everyone. Also from my side, thank you for joining us today in this conference call on the results of the Q1 2021. Before I start with the presentation, I would like to share with you an outline of the presentation and the procedures of today's call. As usual, I will start with an overview of the operational and strategic highlights of the Q1 2021. After that, I will comment on our financial figures.
I will conclude my presentation with our outlook for the remainder of the year. As always, we will then open the line for the sell side analysts only. All other participants will stay in listen only mode as it is our company procedure for years. As usual, our slides that I will use can be found on our Investor Relations website. Having said this, I would like to draw your attention to Slide 3.
In operational terms, we have made a dynamic start to the 2021 fiscal year. Despite a still difficult general condition caused by the COVID-nineteen pandemic. The operation performance in Q1 was again clearly marked by the expansion of our power generation portfolio as well as the progress with our business expansion. Regarding the expansion of our own generation portfolio, we were able to complete 2 wind farms with around 17 megawatts and increased our portfolio to 151.6 megawatts. In addition, 5 wind farms with a nominal output of approximately 90 megawatts were under construction in Germany at the end of the Q1.
So in total, we talk about 156 megawatts under construction for if you consider the Polish project of 59 megawatts as well on our own balance sheet. Scale up. We are still in implementation. It's fully on track. We could look and see new PPA and offer new PPA services and some special products bring it to the market.
The PBE pipeline expanded further to 674 Megawatts. In the last year. At the same time, we had 132 megawatts peak in our portfolio. The numbers of the employees has increased from EUR 4.32 billion to EUR 4.60 billion. And looking at the financials on the next slide.
I want to highlight despite some negative impact from corporate in our own generation portfolio and the weak weather conditions, the Q1 results are on target. That we can confirm our guidance for the full year 2021. We have to consider that the investments in our generation portfolio reflected in a non realized earnings. In total, we have now €85,000,000 above €85,000,000 as a non realized earnings to consider. It was added to EUR 6,000,000 this quarter.
We said another EUR 6,000,000 has been added. We are still on a high cash level with EUR 94,100,000 euros. Equity remains stable with €201,400,000 Only to give you a short overview. In the last 11 years, the biggest, the best year in terms of EBITDA, best First quarter had been at €6,900,000 So we are not far away. If you look on the next slide, our on generation portfolio.
We are as I said, we are working on 98 megawatts just right now in the construction, whereby 18 Megawatts project is expected to start operation next year to the due to a lawsuit which was filed against the building permission. But nevertheless, we talk about roundabout above 80 megawatts, which should be finalized this year. So that we come in total to a volume of above 230 megawatts close to 235 megawatts. So that means that we are still on target to come up and start operation or have in operation 500 megawatts by 2023. Related to the pipeline, it is remarkable that we could increase the pipeline number in total again.
In wind, onshore, it is now we are now on the level of 5,588 Megawatts. It was in quarter 1 last year, 5,125 megawatts. And if you consider that we already finished Jasna projects and other projects, so which are not anymore in the pipeline, then it is remarkable. And again, We have the highest level of projects in permitting Phase 2 in Phase 3 or which are already permitted in Germany and France with 7 30 megawatts that are usually projects which can be considered to be built in the next 2 to 3 years, latest. Remarkable in Germany was that the German EEG was changed so in a positive way.
And one point was that we could recognize that the tender in year 2022 will be extended from 2,900 megawatt to 4,000 megawatts. I think it's remarkable and shows that the support from the German government is increasing. It is increasing as well as our pipeline. As you can see, we are now at 18 17 megawatts. In the Q1, we have been at 1664 Megawatts in Germany.
And in total, we are at 1.1 Gigawatts close to 1.1 gigawatts in application for building permission in all our markets or where we have already building permission in place. In Germany, I spoke about 16 megawatts. We already close to 70 megawatts, we're already finished for our own portfolio. And the construction of project Erfurt Ost was 5.5 gigawatt was completed. This was one project which was sold.
We got new permits of about 30.4 megawatts, which are now in the application for the actual tender in Germany. 3 construction management for Malabaghet. We are it's ongoing and we the construction for Wind Farm Hotel Mall was this project was sold in this quarter or finalized the sale in this quarter. Poland, 2 projects in total 59 megawatts are under construction. Looking to PV, we see that we have a significant growth.
3 new markets, markets where we are already in. We could start our business in PV. So in France, Canada and Poland, with 90 megawatt peak, that could be added to our PV pipeline in the Q1. So the first so we have a total pipeline of 674 Megawatt Peak. And this is, again, a growth a strong growth to the last year and to the end of the last year.
Looking to the results, we have 1 the total output was €49,400,000 is the highest total output for the Q1 we ever had in the last or not we ever in the last 10 years, I have to say. This was what we looked at. It's mainly related to the construction of our own portfolio and look you can see how much we invest in that. And Again, one point, which is which we have to look at is the increased non realized earnings. I mentioned it altogether already EUR 6,000,000 versus EUR 6,100,000 in the quarter 1, twenty twenty one.
Remarkable is all the time we had a bad influence because of the interest rates. Perhaps now we have a positive effect due to the fact that the Interest rates are increasing, so the financial results positively impacted by the valuation of interest rates by EUR 2,300,000. The performance across the business segments are again increasing and shows that we are on a good path with one worse or better The worst thing is related to the electricity generation because the power generation decreases to 6.8 €1,000,000 And this is related to the weak wind yields. So in the moment, we are we have a wind year, which is which shows a wind yield, which is 74% of the euro, 100% wind yield rate over the year in our portfolio. And this means that can only partly be compensated by the increase of the production capacities.
And it means that the EBITDA decreases to minus 28%. But all other segments are on a good path. Project development output increases to €47,900,000 plus 131 percent. EBITDA increases to EUR 6,500,000 in Project Development. The Service output growth to €4,900,000 plus 11 percent.
EBITDA increases to €1,700,000 also driven by international expansion. Now we get the first money back. So we are on a good path on this. And the wind will come back and we will see years where we have more than 100% we expected. So We were in hope that these numbers will become better in the future.
If you look to the balance sheet, we have an increase from EUR 630,000,000 EUR 640,000,000 to EUR 672,000,000 in total. The liquidity is still high on a high level. If you look and have in the background that it is really and you consider that it is really at a level that we are working on 150 6 megawatts, which we have under construction. And we have a very good cash position having this in mind. Equity rate is still solid, 30%.
As you know, we have nonrecourse project financing of €230,000,000 on non current debt and current liabilities of EUR 14,700,000 that means so that the whole most of the liabilities are related to non recourse financing. And I think this is think. And I think this is, again, remarkable. Scale up, the implementation is progressing. There's nothing new on that.
Just right now, we work on the expansion of our portfolio. We look for new products and services and look that we get the results, which we can see now. Hyper hybrid project, power projects we are working on look to market and trends, but this is really something what we will look at if we are have more the possibility to meet each other personally, to step into markets on a this team's basis is a little bit difficult. So nevertheless, our target is there, 500 megawatts in operation or start with operation in 2023. We can confirm our outlook for 2021.
So EBITDA of €24,000,000 to €32,000,000 we are still in the plan. And The next step is what we what is ongoing is the next AGM, which is taking place next week. On Wednesday at the virtual general meeting due to the COVID-nineteen pandemic rules. And Yes. We are ongoing with our projects.
Tender volumes are increased in Germany ET. We have a lot of projects around 3 29 megawatts under construction for us and for others. We have 98 megawatts under construction in Germany. So we are in plan to get our targets meet in the portfolio. And our own portfolio Pipeline is increasing despite the fact that we already finished bigger projects.
PV is increasing. We have the highest volume of permitting phase projects or permitted projects in Germany and France, which are which I have which is a good situation because with our core business, where we are on sale in Guozapol and Romania, South Africa, Panama. And we hope that we get both of these projects sold finalized this year. So and we invest in our own generation portfolio and scale up. So never for we are absolutely in plan in our targets.
And thanks for your attention. We are now open for
questions. And the first question we received is from Carsten von Blumenthal, FirstBank Berlin Equity Research. Your line is now open, sir. Please go ahead.
Good morning, Markus. Thanks for the presentation. P and E has shown a very strong Service EBIT, much, much better than last year. And if I see the total output, that was Also increased from 4.9 percent from 4.4 percent to 4.9 percent. But could you explain a bit in a bit more detail why EBIT was so much stronger.
The margin also widened significantly. That would be very interesting.
There are 3 points which we have to consider. 1 is, 1st of all, We have more own projects. We could increase the project pipeline, our own project pipeline where you get additional orders. Secondly, we invested in the recent deals in foreign countries, Poland, Sweden. Now the first results are coming back.
So and 3rd of all, we get additional business out of our PPA business, the example. So the services we are offering to the market are just right now paying back. So PPA business is increasing, business for special lighting systems for night solutions in a radar used based light solution. So this is our special, special offers we can do now and bring to the market.
So all in all, it is, On the one hand, internationalization and on the other hand, expanded service offering.
Yes, exactly. And last but not least, I have to say that the corona effects are lowering down. Now we used to work how we can do training together.
All right. That's really very, very promising, and we now see that the decision to invest into services Pays off, that is good to see. And my second question is regarding your PV business, your pipeline. You made a lot of progress there. And in 1 quarter, you entered 3 new markets: Canada, Poland and France.
Could you perhaps elaborate on that, why these markets? How did you organize it? How did you get The projects there, what was your approach?
Yes. It's we have already organizations in these countries, like in France, Canada and Poland, we are already in. So what we did, we always hired people who are used to work in PV business and extended there our offices in this respect, our staff there. And if you have in mind that Poland is the next new market and You have always constraints in some regions because of wind, but PV is very seldom there, and we see an increasing market there. So you have the same situation as in Germany in terms of sun effects and yield.
And on the other side, you have landscape enough in Poland, which can be planned. So that is exactly a good situation. And I often think we are in the right time there. Canada is even if you don't believe it, in the South of Canada, you have the same situation as in Bavaria in terms of some yield. And so therefore, it is we see there a market which is upcoming.
And French, in any case, is a market where we have a bigger team and which we could extent and where we see a good development of the PV market, which is already ongoing, but we think that will increase furthermore.
Perfect. Thanks for that. And you mentioned in the call that you plan to increase the Ondtland portfolio to roughly 230 Megawatt by the end of the year. Remember in the last call, you were a bit more cautious. So obviously, things develop a bit better than During when you mentioned
it in the
last call. So 230 Megawatts is now the target for your Own plant portfolio at the end of this year?
Yes. We have always to wait. The last time when I spoke, it was not clear if we get any lawsuit filed for any permission. So but we think it will be so what we want to have at minimum 2 30, maybe we get more, yes. So but in any case, that should be our target.
And what we can see now that the time for lawsuit are gone. So therefore, it is we can go ahead with our projects and could order the machines. And so we are much say for now to give any prediction when we are ready or not.
Perfect. Happy to hear that. You mentioned in the call that in In Germany, the overall tender volume for 2022 is significantly expanded from 2.9 gigawatt to 4.0 gigawatt. My question is tender expansion is, of course, fine. But do you think that the Approval situation will also develop into a very good direction Because in the last tenders, we were under subscribed.
So the largest tenders do not help if we don't have any permits in Germany.
Yes, we see a development there. And there is a political will to change this. And just right now, there are a lot of changes are in discussions and finalized so that the permission procedure will be shortened, that we will have a look to the radar situation, which where you have special radar Patients, they will shorten the cycles around this, which have to be free of wind farms. So we have a A lot of different issues which are happening just right now. So and we see improvement there.
So We think that the megawatts numbers will increase, which will be permitted and can be built in the next time.
Perfect. Happy to hear that. One last question from my side. You did not take part in the first German wind and solar tender rounds In Q1?
No. Okay. Perfect. But now in the second.
Okay. Very good to hear,
with 30 megawatts on it for your information. So that's
Okay. So that are the permits you just won?
Exactly. And we are we went we could get them immediately into the tender.
Perfect. Excellent. That has been all my questions. Thank you very much for answering them, Markus.
Thank you, Carsten.
The next question received is from Oeyvind of FMC Research. Your line is now open, sir. Please go ahead.
Yes, good morning. I have only one additional question. In your presentation, you have mentioned That you might fail the Panama project this year. But according to your report, You didn't start the sales process until now. I think COVID was a burden for the project development there.
Maybe you can give us some more details about the actual development in Panama.
Yes, you're exactly right. The COVID pandemic hit Panama very heavily. So now the first now it starts to become a little bit lower in terms of restrictions. For a long time, they had to stay at home and had not to leave their flats. And this was real hindering us to step ahead in some licensee processes.
Nevertheless, we think we are in a situation where we can finalize our project situation in the next couple in the next 1 or 2 months. And then we go into the sales process, we hope, yes? So this is really something which depends on how the COVID-nineteen pandemic will go ahead in Panama.
Okay, fine. Thank you very much.
Before we take the next question, just a reminder, if you would like And the next question we received is from Jan Bauer of Warburg Research. Your line is now open, Sir, please go ahead.
Good morning.
Just a question. So you said you will participate in the tender with 30 megawatts. But as far as I know, you received the permission for 46 megawatts. So there is a gap of 16 megawatts, right?
We got the sorry, what did we get? Sorry, I couldn't hear it. I couldn't get it.
Okay. And you received permission for 46 megawatts, but only participated 30 megawatts in the tender.
No, no. We got permissions for 30 megawatts, and these are all in the tender now.
Okay. Good. And what time do you expect those so if you assume that you will be successful in the tender, so those projects are Yes. Can could start construction already this year or the next year?
Yes. The usual delivery mean, 15 months for machines only, but we expect due to the fact that we, on early stage, talked with the manufacturers. And we think that end of the year, beginning of next year, we will have to finally we can finalize this 30 megawatts as well. So that we at the year end, we say minimum 230 megawatts and in the Q1 next year. In any case, 2 60 megawatts, that is our plan.
All right. Thank you.
Maybe we get it faster.
Yes. Let's hope for that. But as far as I know, there are some diligence issues with Nordics,
Yes. So just right now, there are a lot of delivery the river changes to expect here.
Okay. So you're saying you are in advanced Sales process for projects in South Africa, Romania and also France. And could you give a little bit more details about it? So can we Expect the sale in each country this year? Or this is still, let's say, some high visibility that it won't work out?
Yes.
It is always the situation that we have in some regions, we have to finalize our projects in terms of permissions or licensees or something like this. But see like Haga Haga is a project in South Africa where we where the tenders came up, and now we are in negotiations for sale. So therefore, this is a situation where we have to finalize the sale. So in Chilocco, in the United States, we are working on heavily, and we are in negotiations with now with Evon exclusivity. And we hope that we can finalize this project and the sale of the project.
In France, we have We already sold the projects which we have to finalize just right now, and it looks like that we can get it finalized. So therefore, this is in good shape. In Romania, we are in negotiations of our wind portfolio, 152 Megawatts and of 1 wind farm of 60 LPV farm of 60 Megawatts. So we are in, I would say, in the middle stage of sales process. And then we have the Polish projects where we are in negotiations.
Okay. But the Polish projects, you're already under construction. So you will sell it
for decommissioning, right? Exactly. We will but we are in sales process. And whenever we get it fixed, then we sell the project even if it is in under construction or finalized. It doesn't matter.
Okay. Perfect. Just one question regarding the wind portfolio. So what EBIT contribution do you expect from your in house portfolio for this year?
For the EBIT contribution. I cannot give you any answer on this in this moment because we have a lot of effects. Then we have to consider all or numbers due to the fact because we have different effects. Depending on when the projects come into operation, We have writing off issues. On the other side, we have EBIT and EBIT margin coming in.
So therefore, that's why we say all the time, EBITDA is our key indicator, yes, because otherwise, we you can't get a true picture out of it with EBIT. And the expectation for EBITDA. So just right now, we have I can't tell you in detail because we give we will not give any segment guidance. This depends often on the wind application. If you see just right now, the Q1, the first project, 16,000,000, what they have had a chance only to work several weeks.
So the EUR 6.6 million are mainly related to the 135 megawatts. So this is the only and with the 74% wind year. So this is what I can tell you, I can't tell because then and you should have in mind maybe that 70% of all income will be done during the winter months, October until March. So then you have maybe you can calculate it. You're doing my best.
One last question regarding the service segment. Can you give us an idea of what's your target EBIT margin for the or target margin on EBITDA or EBITDA levels for dual service And on the long term?
Yes, we said all the time 20% to 25%. This is what we or to look at that we get this margin level. It depends on all the time, which If we take further acquisition into having into mind, we have always to consider that we have write offs, yes, and all these different issues. And sometimes it makes sense to you need to get some synergy effect. But first of all, we are now in the expansion phase.
That means that we are a little bit lower. But in future, this should be our target.
All right. Perfect. Thank you.
The next question received is from Peter Roten Eicher of Baader Bank. Your line is now open, sir. Please go ahead.
Yes, good morning. I have some questions regarding the PV business. So you were quite successful in getting here a new project. What is your general policy regarding the project sales? On the one hand, when can we expect Here, the first noteworthy project sales.
On the other hand, what is your intention to bring These PV projects also further towards Phase 3, Phase 4, so with construction? Or is more the Tension to sell them in a more early stage.
This depends on but the first thing what we are saying, if we don't need and we get the nearly same price level, which we will see when we tender the projects. In every country, it might be a difference, then we want to make a project wide for you, So standard with finance and equity, they have to put only equity in and then they can build. So this is our plan, but we will look in each country, might be different, what's going to be paid, yes? So if the construction is going to be paid, then we need to have a deeper look on this. Then we look to the cash situation, and then we have to decide what we do.
But in the moment, this is the plan.
And the first note was the project sales. When do you expect here some profit?
Next year, we said. Next year, we want to make the first project sales. Okay.
And one question regarding Expected compensation payments from this win fee story. What is your general expectation? What magnitude of compensation Could you expect and when do you expect here to see some profit?
Yes, we are in we got the new Winzig that's and this Winzig that showed that the compensation is for on the studies we made and the work we made is not compensated in the right manner. And that's why we are now. Again, working on the or we now insist and make the application for the next procedure for the constitutional court. So we are in the process again only to because we say we don't except that what is the rule in the wind, Sigve. So therefore, we are fighting still for that to get a higher volume in a higher amount.
So it may take some years again?
No, I don't think so. Maybe this is a procedure which already have taken place. So the decision is there. It's only a matter if that what they have made in the Ministry of Economics is right. So this is not a complete procedure.
It is a smaller procedure. I think somewhere end of this year, beginning of next year would be a right. It is my estimation.
But anyhow, it's not part of your earnings guidance for the current year.
No, no, no.
Okay. Thank you.
So as far as we receive no further questions, I hand back To you, Mr. Leuchten.
Yes. Ladies and gentlemen, thank you very much for your attention, And I wish you a good day. See you next time. Bye.