7c Solarparken Ag · XETR:HRPK
7c Solarparken — Non-Deal Roadshow (June 2022)
24 slides from 7c Solarparken's roadshow presentation, June 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION June 2022 Presented by Steven De Proost, CEO
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitute an invitation to purchase any securities of 7C SOLARPARKEN AG. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness. Certain statements contai
Slide 3: Agenda
AGENDA COMPANY Q1 RESULTS OUTLOOK & RISKS 3
Slide 4: Business Model: Pure PV Owner & Operator with Focus on Germany and Belgium
BUSINESS MODEL Pure PV Owner & Operator with Focus on Germany and Belgium IPP PORTFOLIO ASSET MANAGEMENT PV ESTATE CASH FLOW GENERATOR SYNERGIES LONG-TERM VALUE Acquisition of PV parks Recurring fees Internalising lease cost New-build development Economies of scale Repowering potential Optimise & op
Slide 5: Capital Appreciation Proposition: Sustainable Dividend + Growth
CAPITAL APPRECIATION PROPOSITION Sustainable Dividend + Growth GUARANTEED TARIFFS (FLOOR) FOR ~ 11 YEARS HIGH EQUITY RATIO ALMOST 40% SUSTAINABLE DIVIDEND ATTRACTIVE EBITDA YIELD > 9% MARKET GROWTH FUELS SIZE & VALUATION POTENTIAL FOR M&A AS PURE-PLAY PV GROWTH PV ESTATE ENABLES LONG-TERM RE-POWERIN
Slide 6: IPP Portfolio: Existing Assets 352 MWp
IPP PORTFOLIO Existing Assets 352 MWp. FIT-based EBITDA > EUR 48 Mio KEY PARAMETERS IPP PORTFOLIO LOCATION OF GERMAN PARKS > 2 MWP Power Yield Production Tariff Sales EBITDA MWp kWh/kWp GWh EUR/MWh EUR Mio EUR Mio I Freefield PV 229 1.005 230 152 34,9 30,2 II Rooftop PV 117 879 103 202 20,8 17,6 Ger
Slide 7: IPP Portfolio: Breakdown by Tariff and Year of Commissioning
IPP PORTFOLIO Breakdown of 352 MWp by Tariff and Year of Commissioning COMMISSIONING YEAR AND AVERAGE FEED-IN TARIFF (EUR/MWH) PER YEAR PARKS WITH HIGH EBITDA PARKS WITH POWER PRICE OPTION VALUE 60 450 406 402 378 371 50 400 50 42 350 308 40 268 300 29 250 27 28 29 30 197 24 200 21 145 20 18 14 20 1
Slide 8: IPP Portfolio: Upside through EEG, Fixed Tariff = Market Price + Premium
IPP PORTFOLIO 1) Upside through EEG: Fixed Tariff = Market Price + Market Premium EEG PRICING MECHANISM CAPTURE PRICES OF IPP PORTFOLIO 250 Example: Fixed FIT = EUR 103/MWh 375 350 200 325 Capture price EUR/MWh 300 275 150 250 225 100 200 175 50 150 125 - 100 jul/19 jul/20 jul/21 sep/19 nov/19 sep/2
Slide 9: IPP Portfolio: Two-years Visibility through 93 MWp Hedge
IPP PORTFOLIO 2) Two-years Visibility through 93 MWp “Hedge” with European Utility FROM 1 JUNE 2022 UNTIL 31 DEC 2023 FIXED PRICE SECURED EUR 149.5/MWH EUROPEAN UTILITY MIGHT BE ENLARGED MIGHT BE PROLONGED IN TIME 9
Slide 10: PV Estate: 185 ha accommodating 75 MWp
PV ESTATE 185 ha accommodating 75 MWp, Book Value EUR 12.9 Mio GEOGRAPHICAL BREAKDOWN OF LAND 10
Slide 11: Financial Profile: Steady EBITDA Growth and Equity Ratio 39%
FINANCIAL PROFILE Steady EBITDA Growth and Equity Ratio 39% EBITDA AND EBITDA RETURN (EBITDA/TOTAL ASSETS) EQUITY RATIO AND CASH FLOW PER SHARE 70 12,0% 40% 0,65 60 35% 0,60 10,0% 0,55 50 30% 8,0% 0,50 25% 40 0,45 48,6 42,9 6,0% 20% 30 38,1 0,60 0,57 0,40 0,55 0,56 15% 35,1 4,0% 0,49 0,35 20 0,45 29
Slide 12: Valuation: Market Cap versus Installed Capacity
VALUATION Market Cap versus Installed Capacity MWP VERSUS MARKET CAP P/CF VERSUS MARKET CAP EUR MIO. (LOGARITHMIC SCALE) 400 400 16 350 350 15 300 300 14 13 250 250 12 11 200 200 10 150 150 9 8 100 100 7 6 50 50 5 - - 4 1/01/15 1/01/16 1/01/17 1/01/18 1/01/19 1/01/20 1/01/21 1/01/22 3 Capacity in MW
Slide 13: Valuation: Multiples in Comparison
VALUATION Multiples in Comparison HISTORICAL P/CF MULTIPLE BASED ON ACTUALS HISTORICAL EV/EBITDA MULTIPLE BASED ON ACTUALS GERMAN IPP PEER GROUP: 10.4x GERMAN IPP PEER GROUP: 12.9x 700 400 9,0 12,0 600 7,7 8,0 350 9,8 7,1 9,4 10,0 7,0 500 8,8 8,8 8,6 300 8,5 7,7 8,0 5,5 5,5 6,0 250 5,2 5,3 400 4,5 5
Slide 14: Agenda
AGENDA COMPANY Q1 RESULTS OUTLOOK & RISKS 14
Slide 15: Q1 EBITDA Record level thanks to Power Price and improved Weather
Q1 EBITDA Record level thanks to Power Price and improved Weather SOLAR MARKET PRICE 2021-22 Q1 OPERATIONAL & FINANCIAL HIGHLIGHTS 2022 Q1 2021 Q1 MWp weighted capacity 336 268 GWh produced 59 40 kWh/kWp 175 148 Capture Price EUR/MWh 238 201 Revenues EUR Mio 14.1 8.3 EBITDA EUR Mio 11.9 6.9 Net debt
Slide 16: Agenda
AGENDA COMPANY Q1 RESULTS OUTLOOK & RISKS 16
Slide 17: Capacity Target 2022: IPP Portfolio to grow to 400 MW
CAPACITY TARGET 2022 IPP Portfolio to grow to 400 MW during 2022, back-end loaded IPP TARGET IN MWP GROWTH FROM 339 MWP (2021) TO 525 MWP (2024) 75 1. OWN DEVELOPMENT > 25 MWP Numerous projects are in various phases of 60 permitting (50 rooftop & freefield sites in Belgium of which 8 have obtained a
Slide 18: Guidance Scenarios depend on Power Price and attached Risks
GUIDANCE SCENARIOS depend on Power Price and attached Risks MARKET OBSERVATIONS: CAUTION IS AT ITS PLACE RATHER THAN GROWTH AT ALL PRICE ▪ High power prices on the SPOT market have led to the perception that land and permits should be valued 2 or 3 times the historical / normal value. As a result, c
Slide 19: Guidance Scenarios: Power Price Assumption
GUIDANCE SCENARIOS Power Price Assumption THE GAS RESERVE SITUATION OVERPROPORTIONAL ELECTRICITY PRICE INCREASE Fundamentally, the gas reserves are no longer endangered as we also notice substantial LNG arrivals from the US into Europe. Furthermore, governments have taken numerous new initiatives to
Slide 20: Guidance Scenarios: Power Price Assumption
GUIDANCE SCENARIOS Power Price Assumption SCENARIO RISK-ADJUSTED MARKET PRICE EUR 126/MWH SCENARIO PRICE CAP EUR 70/MWH EUR/MWh Q1 Q2 Q3 Q4 2022 EUR/MWh Q1 Q2 Q3 Q4 2022 Base-load forward 183 92 92 86 113 Base-load forward 183 215 215 206 205 Risk premium Ukraine Risk premium Ukraine -60 -60 -60 Imb
Slide 21: Effect of Re-dispatch 2.0: Unforeseen Switch-Offs in Power Production
EFFECT OF RE-DISPATCH 2.0 Unforeseen Switch-Offs in Power Production EXAMPLE APRIL 4, 2022 LARGEST PV PARK In March 2022, ca. 4.0% of all power of the group has undergone a forced power control by the grid operator leading to unforeseen outage of 1.3 GWh. 21
Slide 22: Guidance 2022 EBITDA in Conservative Range EUR 49.1 – 55.4 Mio
GUIDANCE 2022 EBITDA IN CONSERVATIVE RANGE EUR 49.1 – 55.4 MIO GUIDANCE TABLE MANAGEMENT INPUT Guidance Illustrative ▪ EBITDA 2022 is assumed - under the risk-adjusted market price scenario - RISK ADJUSTED on an investible and manageable planning stance with realistic base-load MARKET PRICE CAP EUR
Slide 23: Long Term Outlook Boosted by New Government Initiatives
LONG TERM OUTLOOK Will be boosted by the new Government Initiatives INITIATIVES PRESENTED ON 06 APRIL 2022 BY MINISTER HABECK OBJECTIVE INSTRUMENTS Renewable Energy From <50% in 2021 to 80% by 2030 Grid expansion Wind offshore From 7.8 GW to 30 GW by 2030 Less administrative hurdles Wind onshore Fro
Slide 24: Contact
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