ALBIOMA: FIRST-HALF 2013 RESULTS

Press release
PARIS LA DÉFENSE, july 23, 2013

FIRST-HALF 2013 RESULTS

Very good operating performance

Active approach to EDF contracts

At its meeting of July 23, 2013, Albioma's Board of Directors, under the chairmanship of Mr. Jacques Pétry, approved the Group's consolidated accounts for the first half of 2013, as at June 30, 2013.

KEY FIGURES AS AT JUNE 30, 2013 (EXCLUDING SOLD WIND-POWER BUSINESS)

Said Jacques Pétry, chairman and CEO of Albioma: "I am delighted with the Group's very good performance in the first half of 2013, which shows the solidity of our business and our ability to take a hands-on approach to our contracts with EDF. The numerous projects underway serve to underline our commitment to our strategy of exploiting biomass as a source of energy."

First-half revenues were stable despite the fall in raw materials prices.

EBITDA rose by 20%, thanks to a good operating performance and the back-dated and recurring impacts of compensatory tariffs agreements entered into with EDF.

Group share of net income rose by a massive 70%, of which 36% stemmed from the €5.6 million capital gain from the sale of the Group's wind-power business.

SIGNIFICANT EVENTS OF THE FIRST HALF OF 2013

Thermal biomass and solar power businesses turn in a good operational performance

Availability rates at the Group's thermal power plants remained high (89.5%) in spite of planned stoppages, particularly at our two plants of Bois-Rouge and Le Gol on Réunion Island and at the Caraïbes énergie plant in Guadeloupe. On Martinique, the Galion peaking power plant achieved a high calling rate of 37%, to be compared with 22% for the first half of 2012. Total electricity generated reached 1.7 TWh, similar to the level in the first half of 2012.

Solar-power business continues to show high level of operating performance. The production reached 46 GWh, 2.5% lower than in the first half of 2012, as a consequence of a drop in sunshine hours in Mainland France and Continental Europe.

Client relations-Active management of EDF contracts

On foot of the tariffs review clauses contained in the Group's long-term contracts for sale of electricity to EDF, two amendments have been negotiated with EDF since the beginning of 2013 to take into account extra costs arising from changes in the operating environment over the past few years. The first amendment, signed in January 2013, specifically addresses the end of the one-third tax rebate on the fiscal lease taken out by the CTM plant in Guadeloupe. The second contract amendment, announced in June 2013, covers the CTG and CTBR plants on Réunion Island.

These amendments allow for an upward revision in tariffs starting in 2013.

Taking into account the extra logistical and environmental expenses that stem from changes in the regulations governing combustion by-products and the General Tax on Pollutant Activities (TGAP), these amendments will add a net €2-3 million to annual EBITDA on a recurring basis. A compensatory fee back-dated over three years also stipulated in the amendments added a net €13.6 million to the figure for the first half of 2013.

100%-biomass projects gain momentum

The innovative CCG2 38 MW biomass-wood project on Martinique, is forging ahead. Public enquiries and tariffs negotiations are underway.

The importation chain of biomass used to fuel CCG2 will also be used for other projects in the West Indies. Albioma was thus able to relaunch its 13 MW project in Marie-Galante, turning it into a Bagasse/Biomass project enjoying wide political support.

The TIPER Méthanisation plant entered service in April 2013 in Thouars in the Deux-Sèvres département. This is the Group's first methanation plant to go into operation. The other projects in this domain are advancing quickly, with a second plant (in Saint-Varent) due to start operations by the end of 2013 and four more due to come on stream in 2014.

In Brazil, the Group's priority in terms of international expansion, a holding company called "Albioma Participaçoes do Brazil" was created to bring together companies we intend to set up there in the future. A development team has been appointed and active discussions with several partners in the sugar industry are underway with a view to acquiring existing co-generating factories and improving their energy performance.

Substantial fall in debt level

Net debt stood at €443 million compared with €545 million a year earlier, a 19% drop. This significant decrease particularly stemmed from the sale of the Group's wind-power business in February 2013 (for €59 million) and significant debt repayments.

Albioma thus has solid means to financing its ambitious development scheme.

Fostering shareholder loyalty

A programme to foster shareholder loyalty has been set up. Registered shareholders who hold their shares continuously for a period of at least two years starting from January 1, 2014 are eligible for a bonus 10% dividend payment. This bonus will be payable starting in 2016 for dividends due on the financial year ended December 31, 2015.

The option offered to shareholders to have part of their 2012 dividends paid in the form of new company shares met with great success. Shareholders who chose to have 50% of their dividend paid in the form of new shares accounted for 78% of share capital (and included the Group's main shareholder, Financière Hélios). As a consequence, 535,454 new shares were issued, equivalent to 1.8% of new authorised capital, and an extra €6.5 million in liquidity was made available to fund the group's development

Earnings guidance confirmed

The Albioma Group confirms its 2013 and 2016 EBITDA and Group share net income objectives excluding Brazil and Marie-Galante.

Notes

⁽¹⁾ Excluding wind-power.

⁽²⁾ Based on existing perimeter plus the sole CCG2 project commissioned at the end of 2015.