At the same time, Aerowatt has continued its development of wind power by commencing operations at its Mont Mau (4.1 MW in New Caledonia) and La Perriere 3 (3.3 MW in Reunion) sites, which were installed in 2007, and by commissioning, at the end of 2008, the Saint Jean Lachalm site (12 MW in Haute-Loire), in which it holds a 66% share. At the end of 2008 the company had an available installed wind capacity of 69 MW, of which 63 MW on its own account.

2008 was also intensive in terms of new projects going into the concept or construction phase. Currently, with a secured portfolio of 424 MW on its own account in wind and 56.2 MWp in solar, Aerowatt has already reached 120% of its objective of 400 MW installed and held on its own account by the end of 2013, of which 350 MW in wind and 50 MWp in solar.

2008 results

The increased power in several power stations was partly counterbalanced by unfavorable exogenous elements (abnormal meteorological conditions in New Caledonia and delays in linking solar installations).

Inventory change and own work capitalized reached EUR5.5 million, rising by 80% over one year. It shows Aerowatt’s strong acceleration in development and the rising power of solar which represented 30% of current production at the end of 2008.

The company’s EBITDA was EUR4.2 million (+12.5%) in keeping with the objective set in September 2008. Aerowatt thus proves its capacity to produce high margins while strongly investing in project development.

In 2008, Aerowatt generated an operating cash flow, net of WCR variation, of EUR2.2 million, positive for the second consecutive year and covering financing costs. This additional cash, as well as the net income from capital increase in September 2008 (EUR6.7 million) and subsidies received (EUR8.2 million), covered half of the large investment cash flows (EUR33.2 million).

At the end of December, Aerowatt’s net indebtedness reached EUR37.1 million, of which EUR8.5 million in project debt without recourse on the parent company, for stockholders’ equity of EUR25.6 million. The ratio of net debt with recourse on Aerowatt / stockholders’ equity and definitively acquired subsides comes to 32%.

Strategy and perspectives

In difficult economic circumstances that translate into tightened financing conditions on certain projects, Aerowatt has some key advantages. Thanks to its ability to present quality projects that are clearly defined and reasonably sized, the group has not had, as of yet, any particular difficulties in accessing the credit market.

Concerning strengthening of its own funds, given the current state of the stock market, Aerowatt has decided, in the short term and in order to avoid slowing the rhythm of commissioning, to actively study alternative solutions. These are based on the entrance of minority partners to the capital of the power stations, with Aerowatt keeping financial and operational control of the projects. The Group has received signs of interest from investors to participate in its infrastructure.

This capacity to adapt to the financial context allows Aerowatt to confirm its strategy, based on developing and operating wind and solar power stations, and its operational and financial objectives on the short and medium term.

For the fiscal year 2009, Aerowatt is banking on an additional commissioned capacity of 38 MW, of which 21 MW on its own account, and on an EBITDA of between EUR7 million and EUR9 million.

Jerome Billerey, chairman of the management board, says I am very proud of the work that we have accomplished in 2008. We have built up our activities and our project portfolio, kept our financial commitment in terms of EBITDA and succeeded in our transfer onto Alternext in particularly difficult market conditions. 2009 promises to be complex for the entire economy. All the while, the dynamics of our market, and our capacity to find financing solutions thanks to the quality of our projects, allow us to maintain our strategy and stay the course for the years to come. Finally, the recent strengthening by our key shareholders of Aerowatt’s capital is for us a large signal of confidence that allows us to work serenely and with long-term goals in mind.