Edison Investment Research - Ellomay Capital (ELLO) FY16 weak, but case remains

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Edison Investment Research

FY16 weak, but case remains

As flagged at the 9M16 results, due to factors well beyond management control – namely lower solar radiance, currency movements and spot power prices – FY16 was a less favourable year for Ellomay. The over 20% drop in reported EBITDA meant the company was loss making for the year. We view these headwinds as one-off factors and, due to Ellomay’s track record on cost control, actually increase our earnings forecasts for FY18 (FY18 reported EBITDA up 7.4% versus old forecasts) and afterwards. A weaker euro means we reduce our FY17 earnings in US$, but our revenues are only marginally different at constant currency. Higher cash flow taken together with the same valuation methodology means we increase our fair value per share to $10.93, up 4.7% versus our last note, which offers 31% upside.

09/05/2017 6 EN

Underlying

Ellomay Capital

Ellomay Capital is a holding company. Through its subsidiaries, Co. is involved in the energy and energy infrastructure industry, mainly the production of renewable and clean energy. Co. also looks to identify and evaluate additional business opportunities in the energy and infrastructure fields, including in the renewable energy field, through the direct or indirect investment in energy manufacturing plants, acuiring an existing business or pursuing business combinations. As of Dec 31 2016, Co. owned 12 photovoltaic plants in Italy with an aggregate installed capacity of approx. 22.6 MWp and four photovoltaic plants in Spain with an aggregate installed capacity of approx. 7.9 MWp.

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IL0010826357 Tel-Aviv Stock Exchange Israel

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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FY16 weak, but case remains

Ellomay Capital - Company guidance for FY18 confirmed at Q1

Ellomay Capital - Reaping the benefits of 2017 investments

Ellomay Capital - 2018 a key year for growth delivery

AGBA - A transformational deal

Biodexa Pharmaceuticals - In a period of transition

Norcros - Sale of Johnson Tiles UK agreed

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