Registration Document
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REGISTRATION Year : 2018 DOCUMENT Including : Annual financial report Contents INTRODUCTION 2 05 SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY 221 About us 2 A word from the Chairman 3 5.1 Positive contribution to the United Nations sustainable 2018 Group performance 4 development goals 222 2018 key events 6 5.2 Consideration of CSR/HSE matters in the Group’s A multi-local leader 8 project management 223 A producer of 100% renewable energy 10 5.3Measurement of the impacts 226 Storage 12 5.4Report by the third-party organisation 227 Corporate social responsability 14 5.5Vigilance Plan 229 Our shareholders 16 Governance 18 06 REPORT ON CORPORATE GOVERNANCE 231 01 PRESENTATION 21 6.1State of governance 232 6.2Corporate governance organisation 238 1.1Presentation of the Group 22 6.3Remuneration of executive officers 247 1.2Strategy of the Group 24 6.4Other information 258 1.3Description of the renewable energy market 27 1.4Neoen's business 56 07 CAPITAL AND SHAREHOLDING STRUCTURE 265 1.5Operating Model 68 1.6Property, plant and equipment 79 1.7Material contracts 80 7.1Information on the Company 266 1.8Intellectual property 80 7.2Capital 268 7.3Shareholding structure 272 7.4Securities market and relations with shareholders 276 02 BUSINESS ACTIVITES AND PROSPECTS 83 08 GENERAL SHAREHOLDERS’ MEETING 279 2.1Results for the financial year ended December 31, 2018 84 2.2Cash and cash equivalents and equity 98 2.3Information about trends and objectives 106 8.1Draft resolutions 280 2.4Other information 108 8.2Board of Directors’ report on the draft resolutions 288 8.3Statutory auditors’ reports on securities trading 294 8.4 Statutory auditors’ special report on regulated 03 RISKS FACTORS 119 agreements and commitments 300 3.1Risks and uncertainties 120 09 ADDITIONAL INFORMATION 303 3.2Insurance and risk management 137 9.1Persons responsible 304 04 FINANCIAL STATEMENTS 9.2Statutory auditors 304 AND STATUTORY AUDITORS REPORTS 143 9.3Historical financial information included by reference 305 9.4Documents available to the public 305 4.1 Neoen Group consolidated financial statements 9.5Details of the projects 306 at December 31, 2018 144 9.6Cross-reference tables 318 4.2 Statutory auditors’ certification report 9.7Glossary 322 on the consolidated financial statements of Neoen Group as of December 31, 2018 190 4.3 Annual financial statements of Neoen S.A. for the year ended December 31, 2018 194 4.4 Statutory auditors’ certification report on the annual financial statements of Neoen S.A. as of December 31, 2018 216 2018 REGISTRATION DOCUMENT Including annual financial report Free translation of the French Document de Référence incluant le rapport financier (Registration Document including the annual financial report) of Neoen By accepting this document, you acknowledge, and agree to be bound by, the following statements. This document is a translation of Neoen’s Document de Référence dated June 05, 2019, filed with the French Autorité des marchés financiers (“AMF”) under number R.19-021 (the “ Document de Référence ” or “Registration Document”). The Document de Référence, in its original French version, is publicly available at www.amf-france.org. This translation (this “Translation”) is provided for your convenience only. This Translation has not been prepared for use in connection with any offering of securities. It does not contain all of the information that an offering document would contain. None of Neoen or any of its respective officers, directors, employees or affiliates, or any person controlling any of them assumes any liability which may be based on this Translation or any omissions therefrom or errors or misstatements therein, and any such liability is hereby expressly disclaimed. This Translation does not constitute or form part of any offer to sell or the solicitation of an offer to purchase securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Persons into whose possession this Translation may come are required by Neoen to inform themselves about and to observe any restrictions as to the distribution of this Translation. Copies of the French Document de Référence may be obtained free of charge at Neoen, 6 rue Ménars, 75002 Paris, France, as well as on the websites of Neoen (www.neoen.com) and of the AMF (www.amf-France.org). REGISTRATION DOCUMENT 2018 1 ABOUT US About us Founded in 2008, Neoen has become a world-class independent Neoen is vertically integrated across the four stages of the life producer of renewable energy within ten years. The group has based cycle of an asset: design and development, financing, construction its rapid, profitable growth on the geographical and technological project management, and operation. Neoen’s integrated model is diversification of its assets and project portfolio, allowing more that of an independent producer retaining ownership of the assets robust performance and development dynamics. it develops and operating them itself, thus guaranteeing high quality assets over the long-term. At the end of 2018, Neoen had facilities in operation and under construction in 14 countries. The Group is the leading independent Neoen develops its activities around the world with audacity. renewable energy producer in France, Australia, El Salvador, It designs and builds innovative, economically competitive, high- Jamaica and Zambia. performance energy solutions which have enabled it to become a global leader in renewable energy production. As regards technologies, Neoen develops and operates a mix of solar power plants and onshore wind farms. In addition, the Neoen operates with absolute integrity, everywhere and under all Group has acquired a world-class expertise in energy storage, so circumstances, and only works with partners who abide by this as to provide a solution to energy intermittency and to support the principle. This integrity enables the Company to undertake projects development of these energy sources. with complete transparency, everywhere in the world. With a capacity of 2.3 GW in operation or under construction, and around 900 MW in additional projects secured as of December 31st, 2018, Neoen has doubled in size in only 18 months. Neoen has demonstrated its ability to manage projects from end to end to produce the most competitive energy, and can build on major successes. It operates Europe’s largest solar farm in Cestas, France (300 MWp) and the world’s largest lithium-ion battery energy storage system in Hornsdale, Australia (100 MW/129 MWh). Capitalising on its strong financial performance and after its successful listing on Euronext Paris, the Group is aiming for a capacity in operation and under construction of more than 5 GW by 2021. €228 million €174 million 2.3 GW 14 countries 2018 revenue 2018 EBIDTA Capacity in operation Geographical presence and under construction as of December 31st, 2018 as of December 31st, 2018 2 REGISTRATION DOCUMENT 2018 MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER A word from the Chairman Neoen is the leading French independent producer of renewable energy and one of the most dynamic worldwide. XAVIER BARBARO Chairman and Chief executive officer 2018 has been an important year for the growth of Neoen, which has become one of the leading players of renewable energies. Neoen is now listed on Euronext Paris, and its excellent results confirmed its dynamic growth. Neoen has also proven its ability to renew its pipeline of projects in a portfolio spread over time, while ensuring the continued progress of projects already under way. With a capacity of around 3 GW in operation and under construction as of May 2019, Neoen is the leading French independent producer of renewable energy and one of the most dynamic worldwide. Our positioning makes us stand out in several ways: first, because we are a pure player of renewable energy, with a complete technology This discipline is totally compatible with the entrepreneurial spirit mix (solar, wind, storage) and a world-class expertise enabling which has been leading us for ten years. It’s our flexibility and us to carry out large-scale projects from end to end in each our ability to adapt to new environments that have enabled us to of these segments. Our “develop to own” model is also distinctive: become a leading global player in renewable energies. This growth we develop our own projects and retain our assets over the very continued in 2018 with the launch of projects in two new countries: long-term to create value over time. Finland and Colombia. Day after day, our actions and our relationships with all our It is thanks to the above elements that Neoen has successfully stakeholders are driven by our values: audacity, integrity, commitment listed on the stock market in a particularly demanding market and esprit de corps. These values are shared by our 197 employees environment. We raised €697 million, which was the largest listing of more than 20 nationalities. They are the foundation of our on Euronext Paris in 2018 by far. identity and provide the essential ethical guidelines for our day- to-day behaviour. Our long-standing shareholder, Impala, with which we share the same long-term vision, renewed its trust in Neoen by increasing This results for instance in a high level of discipline in the operational its investment and confirming its role as our majority shareholder. and financial management of our business, which we intend to be exemplary; in our governance, which is compliant with AFEP-MEDEF And we are very enthusiastic about continuing our development recommendations; and in the choice of our projects. Neoen only in 2019, with the same demanding approach, and fully faithful to takes on projects at “grid parity”, the competitiveness of which our mission: to produce locally the most competitive renewable does not depend on subsidies which are always unpredictable electricity, sustainably and on a large scale.