7c Solarparken Ag · XETR:HRPK
7c Solarparken — Investor Presentation (February 2019)
24 slides from 7c Solarparken's investor presentation, Feb 22, 2019
Slide 1: Investor Presentation Q1 2019
INVESTOR PRESENTATION Q1 2019 71 86 100 118 1542018 2202020 5002025 22.02.2019 1
Slide 2: Company Overview
COMPANY OVERVIEW BUSINESS MODEL & PORTFOLIO FINANCIAL POSITION C A PA C I T Y & M A R K E T C A P 2
Slide 3: Business Model & Portfolio
Business Model & Portfolio Pure-play PV operator with 166 MW own assets, and 77 MW external management contracts IPP PORTFOLIO ASSET MANAGEMENT PV ESTATE CASH FLOWS SYNERGIES TERMINAL VALUE Recurring fees from No land lease costs Acquire assets external investors Repowering potential for Develop new
Slide 4: Business Model & Portfolio
Business Model & Portfolio Current IPP portfolio generates annual EBITDA of at least EUR 34 Mio. Portfolio characteristics LOCATIONS > 1 MW CAPACITY TARIFF YIELD REVENUES EBITDA MWp EUR/MWh kWh/kWp EUR Mio EUR Mio Freefield PV 91 246 1,003 22.4 19.9 Rooftop PV 72 262 881 16.7 14.0 Onshore wind 3 86
Slide 5: Financial Position
Financial Position Robust financials with annual dividend of EUR 0.10/share EBITDA EVOLUTION AND RETURN CASH FLOW PER SHARE AND EQUITY RATIO 0.60 35% 35.0 ~9.5% 12.0% 29% ~ 30% 9.6% 30% 0.50 30.0 8.9% 25% 10.0% 7.6% 23% 25% 25.0 0.40 8.0% 18% 20% 20.0 0.30 0.52 5.4% 0.49 6.0% 33.0 15% 15.0 29.9 0.45
Slide 6: Capacity and Market Cap
Capacity and Market Cap Track record of growth and capital appreciation 2018-19 200 CAPITAL- 200 Capacity in MWp Market cap in EUR Mio 2018 INTENSIVE 190 UP TO ~150 MWP GROWTH TO 220 190 THROUGH MWP BY 2020 180 180 ACQUISITION OF 170 DEVELOPER + 170 ALTERNATIVE 160 2016-17 160 FINANCING GROWTH TO 11
Slide 7: View on German PV Market
VIEW ON GERMAN PV MARKET PV COMPETITIVENESS E E G F E E D - I N TA R I F F S NEW MODELS TO MARKET PV 7
Slide 8: PV Competitiveness
PV Competitiveness Solar PV now the lowest-cost power generator, even cheaper than conventional power HIGHER EFFICIENCY FALLING MODULE COST MODULES LEVELISED COST OF DECLINES ELECTRICITY (LCOE) 2.80 Crystalline China 2.40 Crystalline Europe (Germany) 2.00 Crystalline Japan Thin film 1.60 1.20 0.80 0
Slide 9: EEG Feed-In Tariffs
EEG Feed-In Tariffs Fixed tariffs still at attractive levels, but difficult to scale up SYSTEM COST GERMANY 750 KWP ROOFTOP 7C SOLARPARKEN VIEW: EUR/Wp EUR/MWh ▪ No relevant decrease in tariffs for new-build since 2014 due to annual capacity additions below the 2.5 GWp regulatory target 1.40 120 110
Slide 10: New Models to Market PV Power: Market Parity
New Models to Market PV Power A. Market Parity WHOLESALE POWER PRICE AND PV AUCTIONS > 750 KWP OPTION A: SELL POWER AT THE AUCTION (FFAV TARIFF) ▪ Fixed state-guaranteed tariff for 20 years 100 ▪ Principally from 750 kWp to 10 MWp 90 ▪ EEG limitations: rooftop, conversion land, alongside motorways 8
Slide 11: New Models to Market PV Power: Grid Parity
New Models to Market PV Power B. Grid Parity DISTRIBUTED GENERATION AT MEDIUM-VOLTAGE ON-SITE PPA 180 ▪ Long-term contract with on-site client who buys green ~ 160 160 power at a fixed price 140 ▪ At mid-voltage level, end-user / industrial clients pay on 120 average EUR 160/MWh for their power incl
Slide 12: Capacity Plan 2018-2020
CAPACITY PLAN 2018-2020 TIER-TWO TA R G E T 2 0 2 0 : 2 2 0 M W P VISION 2025: 500 MWP 12
Slide 13: Tier-Two
Tier-Two Target: Tier-2 player to benefit from improved valuation and cost of capital OVERVIEW LISTED YIELDCOS & GREEN IPP’S IN EUROPE MANAGEMENT VIEW TIER 1+2 TIER 3 Clear benefits for 200 Mio. EUR market caps / 200 MW players 1,600 < 200 MW - Access to a broader class of institutional investors wh
Slide 14: Target 2020: 220 MWp
Target 2020: 220 MWp Continuation of growth acceleration with EUR 16 Mio fresh capital required to meet 220 MWp BREAKDOWN OF BUILD UP PLAN TO 220 MW (STATUS NOV’18) MANAGEMENT INDICATION 250 ▪ 66 MWp planned additions: through own development and 220 acquisition of operating parks 200 ▪ Capex budget
Slide 15: Vision 2025: 500 MW
Vision 2025: 500 MW Capturing future opportunities once the Tier-2 status is reached POTENTIAL POOL OF LARGER SCALE ACQUISITIONS & DEVELOPMENT CONSOLIDATION: 15 GWp existing PV installations > 1 MWp in Germany AUCTIONS: Special rounds in 2019-21, including innovative auctions PPA: Large scale opport
Slide 16: Financial Targets
FINANCIAL TARGETS 2018 GUIDANCE E B I T D A & C F P S TA R G E T DIVIDEND POLICY 16
Slide 17: 2018 Guidance
2018 Guidance EBITDA will rise to EUR 33 Mio, CFPS to EUR 0.52 Outlook for 2018 reflects strong production yield 7C SOLARPARKEN WILL REPORT THEIR FY’18 RESULTS ON 23 APRIL 2019 REPORTED FIGURES FORECAST in Mio. EUR Q1'18 H1'18 9M '18 2018F Revenues 5.1 20.4 35.7 39.5 _ Power sales 5.0 20.2 35.5 39.2
Slide 18: EBITDA & CFPS Target
EBITDA & CFPS target Towards EBITDA > EUR 41 Mio. upon executing the Plan 2018-2020 ESTIMATED EBITDA AND NET CASH FLOW SHOWCASE 220 MWP (EUR MIO) MANAGEMENT COMMENT ▪ EBITDA to increase by EUR 9.3 Mio to EUR 41.3 Mio following 45.0 41.3 9.3 40.0 acquisition / commissioning of the planned 67 MWp. 32.
Slide 19: Dividend Policy
Dividend Policy Stable annual dividend or equivalent, cash-flow related but at least EUR 10ct/share DIVIDEND POLICY DIVIDEND OUTLOOK 2018 ▪ Partly exempt of German withholding tax: First-time dividend ▪ A stable and preferably increasing dividend or dividend over 2017 of EUR 10ct/share has been paid
Slide 20: The Share & Governance
THE SHARE & GOVERNANCE OUTPERFORMANCE OWNERSHIP MANAGEMENT 20
Slide 21: Outperformance Among German Developers & IPPs
Outperformance Among German Developers & IPPs Led by defensive character and growth 4-YEARS SHARE PRICE PERFORMANCE (REBASED) SHARE PRICE PERFORMANCE 2018 (REBASED) 190 115 170 110 105 150 100 130 95 110 90 90 85 70 80 50 75 Jun-15 Jun-16 Jun-17 Jun-18 Dec-14 Dec-15 Dec-16 Dec-17 Mar-15 Sep-15 Mar-1
Slide 22: Ownership
Ownership Objective to further institutionalize the shareholders’ structure and to increase free float SHAREHOLDERS STRUCTURE Q1’2019 TREND IN FREE FLOAT Librae Holding 55.7% 53.5% 10.6% 43.4% 44.0% Rodolphe de Spoelberch 8.1% 38.4% 38.7% Distri Beheer 6.0% Steven De Proost Free float, 55.7% 4.7% 20
Slide 23: Management
Management Entrepreneurship and industry-expertise Steven De Proost, CEO ✓ Utilities & energy analyst and head of equity research at Delta Lloyd and Dexia ✓ Ranked by Handelsblatt as best analyst in the German power industry in 2008 ✓ Founder of 7C Solarparken NV ✓ CEO of 7C Solarparken AG as June 2
Slide 24: Contact
CONTACT 7C SOLARPARKEN AG An der Feuerwache 15 95445 Bayreuth / Germany +49 (0) 921 23 05 57 77 www.solarparken.com ir@solarparken.com 24
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