Ladies and gentlemen, welcome to the M and A Conference Full Year Report 2020 of India GE. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen only mode. After the presentation, there will be an opportunity to ask questions. May I now hand you over to Markus Lesser, CEO, who will lead you through this conference.
Please go ahead, sir.
Good morning, everyone, also from my side. Thank you for joining us today in this conference call regarding the fiscal year numbers of 2020. Before I start the presentation, I would like to share with you an outline of the presentation and the procedure of today's call. As usual, I will start with an overview of the operational strategic highlights of the fiscal year 2020. After that, I will comment on our financial figures.
I will conclude my presentation All other participants will stay in listen only mode as it is our company's procedure for years. As usual, our slide that I will use can be found under our Investor Relations website. Having said this, I would like to draw your attention to Slide 3. This year was both extraordinary and successful. Despite the difficult general conditions caused by the COVID-nineteen pandemic, we made significant operational progress in various markets, We are able to close the past fiscal year with a pleasing result and having consistently involved our business in accordance with the scale up concept.
Furthermore, the demand for sustainable investments has increased strongly. The share price has reflected this positive development with a price increase of roundabout 98% within 1 year and thus almost doubling. The operating performance in 2020 was clearly marked By the expansion of our power generating portfolio and the progress in the markets and business expansion. In total, P and E completed, sold, started Construction of projects with a capacity of approximately 461.2 Megawatts during the reporting period Prior year 450.8 megawatts. This means that projects the project realization is once again above the level We also see that we have an expansion in our own generation portfolio.
This makes progress. Approximately 100 megawatts have been under construction at the year end period And of which 70 megawatts could be already put into operation in this quarter. So this means 83 megawatts are now under construction for our new portfolio Independently from the projects we do for 3rd parties in this year and will be finished this year or Maybe beginning of last year. The scale up implementation is fully on track. Investments are ongoing.
We do PPAs. We do services additional like safe technology on the Martin time marking And this all start to pay off. PV is one new Technology, we put into place, the pipeline is strongly expanding to 548 megawatts Within 1 year, for last year, we had 123 megawatt peaks. The number of employees increased to 455, and last year, we had 427. The pleasing development In operation, business is reflected in the results.
The group has operated profitably, Although we have also invested in the expansion of our own generation portfolio And in the implementation of our expanded strategy via scale up. According At the financial, I want to highlight that despite some negative impact from COVID-nineteen, we were able to achieve Regarding EBITDA, even exceed our guidance in the full year 2020, in the case of EBITDA, I will show you afterwards the details, and we see that the growth compared to last year was significantly in all segments. As indicated In the previous slide, the results 2020 were impacted by the investments we made in our portfolio. The investment in our portfolio were also reflected in a non realized earnings of 50,000,000 euros within 1 year. In the last year, it was had been 11,600,000 So we also see that the milestone receivables we had we could recognize for Go to Win 4 And Atlantis 1 Offshore Projects, and this contributed to strong Q4 results.
Yes. Still on a high level with the €11,600,000 euros as cash position, which is similar on the same level as last year. The dividends we would like to propose of $0.04 per share is our target The expansion of our own generation portfolio continues. We can see that the target increase We would like to have in 2023 500 megawatts roundabout. As mentioned, 100 megawatts, we have under had under construction at At the year end, whereby 17 megawatts already put into operation in this quarter.
In total, we see 134 point 8 megawatts we have in operation already, and we would like to have very soon in this year, latest beginning of next year, 230 6 megawatts. And I can say that this at the year last year end, we have a hidden reserves accumulated in the portfolio of €80,000,000 in total. That means if we would have sold it according our calculation, Next page. We see that our pipeline is growing. Even if we finalize the project, We also have a growing pipeline, which is remarkable.
We have now 5,405 Megawatts at the year end. We have in our pipeline, The project pipeline for the project development in the last year, we had 5,235. In German pipeline, the German pipeline increased as well Around 140 Megawatts to 17 54 Megawatts. I think remarkable, again, we have See the numbers. We have 6 42 megawatts in Germany and France in a permitting process At that time last year and in a permitting procedure.
And we have 106 megawatts in under construction, And we have in services another 4 megawatts for 3rd parties as well as 130 Megawatts Malabaget project, which is under construction as well, as well as the 59 megawatt in Poland. So you see, we have a lot of projects In front of us, all we are working on and especially in the German and France markets with this high volume. Put the numbers together, 134 megawatts we have already in our operating portfolio, 80 megawatts in Germany, plus in a permitting status, plus 106 megawatts we have already under construction or 100 megawatt for the portfolio. So that means we have a high probability to get the 500 megawatt targets Under control in 2023. To finalize the projects, Wirtzner and especially Jasna, Jasna is one of the biggest projects In Poland, with 132 megawatts, which was a very huge task to get this under control through pandemic times, And there have been delays.
In total, we hadn't had any created any delays. We got it under control. And this was a technical high level technical project and we got it We also have a rapid growth in the PV pipeline. If you see last year, 123 megawatts, now megawatt peak. Now we have 548 megawatts, and we think that we can increase our portfolio in this way as well even in this year.
So the pipeline expanded to 184 Megawatts in year 2020, 2019, where 10 Megawatts peak in Germany and Italy is 0 to 42 megawatts last year. End of last year, Romania stayed on the Same level, but I can tell you that it will increase as well in United States, 1 megawatt peak to 2 10 megawatt peak. And we look to numerous markets if we can expand it, for example, Poland, where we have a network already in place Stig, mainly with Germany, France, Italy, Romania, United States and Poland. But nevertheless, we see a lot of other markets where we can So if we look to the financial results, we see a strong operating performance, which was driven by The project sales, Germany, France, Sweden, German project. And in Germany, Erfurt Ost, which is 5.5 Megawatts, the milestone payments, We got through our projects we could finalize, a milestone we can could finalize in Germany, Poland and Sweden.
Additionally, milestones payments receivables for offshore projects go to Win 4 and Atlantis 1. So in Golden Wind 4, we Look for EUR14,700,000, we expect the payment end of 2020, too. And in Atlantis 1, we think that the EUR 4,600,000, this is depending on the offshore tenant, which we Due to the fact that the German government made progress in their spatial plans, We could recognize these numbers and had to recognize these numbers in our IFRS We had results from broad power generation and services And the expansion of our power generation portfolio, again, reflected by the increased normalized earnings. So we met our targets and exceed them in the case of the EBITDA as already mentioned. I also want to highlight the strong performance of the segments level.
Before consolidation, all these three segments showed growth compared to the last year. See project development output increases to €186,000,000 which is plus 23%. EBITDA, it was an increase to by 79% to €56,500,000 In services, service output grows by 15%. So the EBITDA decreases or stayed on the same Similar on the same level, it's €12,200,000 This is mainly due to the international expansion. So we opened markets in Poland and Sweden, where we and constructed our projects and the corona related restrictions.
You can imagine if we have to do trainings, if we have to go to locations, we couldn't do this in this amount we Electricity Generation, power generation output increased to €24,300,000 plus 26 percent, EBITDA plus 31%, okay, we put more projects into operation. So we see that the investment service and power generation are paying off. The balance sheet remains rock solid. It's the headline and is exactly what we see. We see that the balance sheet is totally increasing from €550,000,000 to €663,000,000 mainly driven because of the new projects in operation and due to the fact that the leasing contracts are now in IFRS increasing, the numbers Increasing and these are the main effects that we have a higher number.
This is effects on the equity. The equity ratio is solid now at 30%. Last year, we had 37%. And nevertheless, the liquidity is Still very high on the level of €111,600,000 The noncurrent debt It's related to the corporate bond. Again, if we build up our portfolio, it's clear that the liabilities to banks are growing, mainly related to project finance, non recourse project financing.
And you see that we have €216,600,000 in the noncurrent debt. And if you see the current liabilities, EUR 4,600,000, EUR 22,700,000, sorry, related to this non mainly to this nonrecourse financings. The liabilities from leasing contracts Increasing write off use to a level of €70,400,000 if you see the noncurrent debt. And if you see the current liabilities We see the positive impact of our measurements in the scale up We have now one organization in the whole P and E group. The processes Tools and tools are in place, which really helps us through this pandemic.
So we are mainly in the home office With some exceptions, we'll do trainings or do services. You see that we are still ongoing with the expansion of the generation power portfolio. We see there we are not in the range of doing the first PPA. I think we are now on a level that we are We have done multiple of PPAs. Just right now, we are one of the big PPA signers In Germany for post EG wind farms.
And the completion of The sale of the first developed project in new markets, we wanted to sell 1 project in Panama. This was not possible due to the Fact that Panama was hit very heavily from the pandemic. And the sale of the first hybrid project, There is a postponement due to natural heritage, but I'm sure we are working on this to get this under control. So we are working on one of these projects. So in 2022, we are in 2021, we are on the way.
Furthermore, the expansion of our own portfolio is one main target, and we want to come up with new innovative Products and Services, we talk about different hybrid projects, hydrogen projects. Maybe we get the first one On board. And the market entrants may be in the 3rd market. We will see if we really Want to do this, we look very carefully to the markets, how they are affected and were affected by the pandemic. We look constantly on the market situation.
And we look to new projects and bright spot Ladies and gentlemen, this leads me to the outlook. In 2021, we will have further upfront expenditure in the low Nevertheless, we expect group EBITDA of €24,000,000 to €32,000,000 in respect of our guidance For the 2021 fiscal year. Due to the pandemic, you know as well, in your business, it's not become easier to sell projects or that we get the wind turbine at the right time. The wind turbine manufacturer extended now the delivery times for another 3 months. So you might expect there might be an postponement of projects.
But As usual, we consider a little delay, but we hope that will not be extended. And nevertheless, it's always only a shift. It's not that we can't do the project. So if we summarize it, We have a promising start of the year with the sale of the 59 Megawatt project in Sweden. We have a high project activity number still under construction.
A lot of them in Germany for our own generation portfolio, 100 megawatts or 83 now. Wellford, Growing project pipeline, 5,400 Megawatt in total in on wind, onshore and 548 Megawatts in PV. High volume of permitting phase core markets in Germany and French with 6 42 megawatts in permitting status. And we expect the sale of projects in United States, Poland, Romania, South Africa, Panama this year, Depending sometimes on sales situation, pandemic and sales situation, but in mainly also Due to tenders environment, we do ongoing investments and Want to become more efficient and want to grow steadily in the product range so that we meet the market needs. Ladies and gentlemen, I would like to conclude my presentation.
Thanks for your attention, And I'm ready to answer questions.
Ladies and gentlemen, we will now begin our question and answer session.
Good morning, Markus. Good to hear that P and E, despite the pandemic, My first question is regarding your own wind farm portfolio capacity. Could you tell us what you plan to have under own management at the end of 2021?
Yes. If you look to the numbers, we have around about 83 megawatts, Which we would like to finalize, which we have under construction just right now, beneath the 70 megawatts we finalized just right now. So if you add 134 plus 17 megawatts, it's a starting point. And then 83 megawatts from that, We have one project which might go in the next year with 17.5 megawatts, which you have to It's a subtractive of deviate from the 83 megawatts. So in total, let me summarize, 83 minuteus 17 5 plus 17.
So roundabout 83 megawatts, which you can add to the number we have just right now, 134
Perfect. Thanks for that. That is helpful. When I see your wind project pipeline, This did not grow much in 2020. And in your annual report, you say that you do not expect pipeline
The project pipeline, You mentioned the project pipeline for the development project in wind, yes?
Yes.
Oh, I see. It's a slight increase what we see. So you have to recognize that we have that roundabout 460 megawatts, which is a very high level,
All right. And in your annual report, you say that you do not expect wind pipeline expansion in 2021?
Yes. I think this depends on all the time. If you have markets where you have Projects with high numbers. I tell you an example, in South Africa, you have 160 megawatts, 200 megawatts project, one project you sell and you have immediately impact of 200 megawatts. Having in mind The margins thought there are not that high.
So it depends all the time what goes in, what goes out. So that's While we see just right now this year that a lot of projects, United States, 160 megawatts, maybe more In South Africa, above 200 megawatts. So you see in total, the pipeline will be affected
All right, understood. Question regarding kind of special question. I don't know whether this can be answered so quickly, but I looked into your balance sheet and what I found is that Liabilities from leasing contracts rose significantly from €37,000,000 to €70,000,000
Yes.
I don't know whether I have to ask your colleague or whether you can answer that directly.
Yes. It is if you take projects over and put them into operation or you take them on board in your portfolio, then you Immediately you have to announce these leasing contracts according IFRS as in a full It's a full financial obligation, yes. And this is the situation we have to face and that means You see that we have €50,000,000 additional Potential EBIT, so we calculated a lot of projects which we put into our own you have to take a part of this. And later on, when they are in operation, you have to take this IFRS measurement and have to put them as a liability in the balance sheet. And this is Magna increasing.
Yes. But then it's just IFRS effect of your Successful transfer of projects into your own plant portfolio. Well understood. Thanks for that. You mentioned your offshore business and that Or you are looking at also doing business in the U.
S. You have been active there. We have now the new Biden government, which seems to be very fond of offshore wind. So how do you See your chances there. What we see in the market is that a lot of very large players are, of course, positioning.
So I think it is not easy for German Mittelstand company like P&E to get a hand there, but perhaps you could elaborate on your opportunities there.
Yes, we're looking carefully to the market. But nevertheless, we have to see that this is really a market which we think is a little bit overheated in the moment. The payments for in advance for the big projects With a lot of risks, you have to pay to get a tender on board with a lot of obligations. We see them more and more risky for us. And you're absolutely right.
That's there we have to pay attention. And for us, it is, I would say a market like Vietnam is more a market something for midsized player like us.
All right. That was very helpful, Markus. Thank you very much for taking my questions.
Thank you.
The next question we received is from Jan Bauer of RAPOG Research. Your line is now open. Please go ahead.
Good morning, Mr. Nestor, and congrats to the results. I got a few questions. So you're currently building or You have several projects under construction for your own in house portfolio. Can you give us an idea of how much How much of the costs for those wind farms are already recognized in the 2020 figures?
How much of the costs? Yes. That's what we have to pay attention according to milestone payments. We calculated milestone So according to payments, we calculated and take it into consideration. So I can't tell you the cost in detail just right now for that you have to do per project, yes, because the development costs and you have other costs, which have to be related and up to the financing and then you have further more the cost for the construction.
So I can't bring you to the total number because this is depending on a project and the status of the project.
Okay. I totally understand. But you're right in your report that you expect a single digit million value That you will need for the development of your own portfolio. But compared to currently, as you said, 83 megawatts under construction, that Sounds a little bit low to me.
Yes. I think that it is a question of what do you mean with that. So we talk about poor scale up issues, which means additional services, additional changes in tools where we want to be more efficient, maybe some parts of Research on new markets and technologies. So nevertheless, we have all of your business looking For repowering projects, so others are not involved in these numbers.
Okay. Can you give us an idea of what's your expectations for the service segment EBITDA for 2021?
Related to 2021, I would be careful now to tell something about that because the pandemic issues are there. Nevertheless, we have the first costs on now we start the business in Poland. So we have effects of this. We start the process in Sweden. So we have starting points.
Related to the EBITDA, I wouldn't see the big growth. Nevertheless, we see a good development in the FITA business, Which where we see effects, maybe we get them on we get some contracts on board in the next couple of weeks. So from that point, I see a slight change in a positive way in terms of EBITDA of Services.
Okay. And you said that you expect that this year several projects might be postponed to 2020 at 3, 2022 due to delivery issues and the all over COVID issues or delays. Can you just give us an idea of What's that in megawatts?
Yes. You see, just right now, we have to face the situation that we have 3 effects Which leads to postponement, could lead to postponement. So with some of them, we always thought maybe It's better to consider a 3 month period. So that's what we did in our planning. So nevertheless, we have now the pandemic, Which cause to delays related to deliveries.
We don't get the permit sometimes to get the cranes And big parts to the site. We also have in services trainings, which we can't do or others. So this is one point. Secondly, we have the issue that we have postponement of delivery times from the wind turbine manufacturers Around 3 months. And third of all, we have the situation that we have more and more lawsuits to consider In projects, mainly due to natural heritage and where we have to wait until Something is coming back from the heuristical point of view.
But mainly, we have It's no issue related to the project itself. It's mainly related to time. So and that's affect us. That's affecting the whole market. We are not alone.
So and in this respect, we only want to be sure That it is understood that even if we have a permit, there might come up some performance, Which we have to consider and which we carefully consider, but we it may happen that this may give a shift to the projects. Just right now, we have now bigger situation we have to face, one project is affected from this 100 megawatt project from 17.5 megawatt, But we think this will be a postponement into the next year, as I mentioned to the speaker before.
Okay. One last question. Where do you see possible project sales to external parties in 2020
Yes. As I mentioned before, we have projects in Germany, in Romania, Wind and hopefully, PV, which we can sell. And we have the project in one project in France, in South Africa. In Poland, we have 2 projects, which we have now under construction, we would like to sell this year as well.
The next question is from Poyraz Jafin of SMC Research. Your line is now open. Please go ahead.
Good morning all together.
Good morning.
I have only few additional questions. First one regarding the U. S. Market. You didn't mention the sale of the Chilocco project, Do you see a chance to realize it in 2021?
Yes. We are still in heavily negotiation, and we hope we get it done. But it is in at the edge, I would say, in the moment. So we will see. But I hope or it's a target to sell this
In your annual report, I've read that you've sold
Yes. It was an initiative of 1 of our guys in United And it was more a personal family owned area. He sold to 3rd parties and we Got the right to extend this to $50,000,000 but it was 1 part. So it's a really minor business and it was only Private initiative. And so we only want to get some minor we want to get it Done in the recent years depending on the progress of the landscape permitting process.
Okay. I wonder if you because I've never heard from this before. But okay, I understand. But you've only written that you acquired 4 projects with 280 megawatts. And additionally, you develop projects with 150 megawatts in New Mexico.
Why I can't see this in your PV pipeline?
Yes. I can tell you that this depends all the time of the phase where they are. You know that we are usually If the projects are not in the situation that we are having Phase 1 or 2, then in a lot of cases, we don't take them on board. At that moment, I can only say that we are working on these projects and we see them upcoming, But they are in an early phase.
Okay. Too early to put this on the pipeline.
It must be valuable, and then we put it on our in our portfolio pipeline overview.
Okay. Thank you. Okay. Last question from my side. You've decided to book receivables So for outstanding milestone payments for the projects Go to Win 4 and Atlantis 1, But you've mentioned that you expect payment for Atlantis 1 not before 2024.
Isn't it too early for booking receivables?
Yes. We are obliged according to IFRS rules to do this In this way, because they have been coming up some development. First of all, we saw we got information from our partner that would like to progress. But nevertheless, it is also the main point is that the spatial plan, The special plan had been finalized end of last year from the German government, and This also lead us to this IFR according to IFR as rules to consider this.
As there are no further questions at this time, I hand back to you, Mr. Lesson.
So thank you very much for your attention, and you see us very soon for the Q1 numbers. Thank you very much. See you.