Slide 1: Phoenix Solar AG 3rd Quarter Results
Phoenix Solar AG 3rd Quarter Results 14 November 2007 Dr. Andreas Hänel (CEO) - Conference Call - SonnenStrom Electricidad Solar Elettricità Solare Solar Electricity Électricité Solaire
Slide 2: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 2
Slide 3: Highlights Q3 2007
Highlights Q3 2007 Revenues (132.0 €M), EBIT (9.0 €M) and Net Result (5.4 €M) already surpass all of 2006 High Q3 order intake and order backlog reaching 133.5 €M on 30 September 2007 First Solar framework contract extension signed in September leading to higher allocation 2008 – 2012 now totalling
Slide 4: Business Model - Overview
Business Model - Overview International Manufacturers Solar Modules BOS-Components • Crystalline • Inverters • Thin-film • Mounting Systems • Cables System integration ices Serv se Sal Turn-key installation Segment Segment Solar Power Plants Components & Systems Project Investors International Custo
Slide 5: Business Model - Focus
Business Model - Focus Focus on Photovoltaics Exclusively active in the field of photovoltaics, the market segment of renewable energies with the highest growth rate Focus on functional, marketable and profitable PV systems Advantages - Purchase of PV modules and components with the best price-to- p
Slide 6: Target Customers for Large Solar Power Plants
Target Customers for Large Solar Power Plants Closed Solar Funds as capital collection point for private investors - Participation starting at €10,000 - Fund capitalisation starting at €20M - Expected Return: > 6% Institutional investors, insurance companies, pension funds - Risk spreading (in addit
Slide 7: Competence in Large-scale Solar Power Plants
Competence in Large-scale Solar Power Plants “La Solana” (Spain), 6.5 MWp Construction Start: June 2007 7
Slide 8: International Business Relations and Worldwide Company Locations
International Business Relations and Worldwide Company Locations Phoenix Solar AG, Germany Phoenix Solar S.L., Spain RED 2002 Phoenix Solar Srl, Italy Pte Ltd, Singapore 8
Slide 9: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 9
Slide 10: German Market - Trends
German Market - Trends German market - German market weak in January and February 2007 as potential customers were waiting for further price reductions - Strong demand in the German market since March which far exceeds demand compared to the same period in 2006 - Market expected to be strong to year
Slide 11: Spanish Market - Trends
Spanish Market - Trends Spanish market - Strong demand driven by large-scale installations - Since 1 June 2007 new RD 661/2007 in force allowing for PV plants >100 kWp which reduces installation costs - 80 % of 371 MWp cap reached. Transition period until end September 2008 may lead to a booming Spa
Slide 12: Italian & Greek Markets - Trends
Italian & Greek Markets - Trends Italian market - Might multiply in 2007 (8 MWp in 2006) - Removed cap allows for installations larger than 1 MWp - Strong demand for mid- to large-scale installations up to and over 1 MWp - Financing from Italian banks still an issue Greek market - Strong demand main
Slide 13: Phoenix Solar's Solar Module and Inverter Suppliers
Phoenix Solar‘s Solar Module and Inverter Suppliers 13
Slide 14: Phoenix Solar Product Mix: Thin-film vs. Crystalline Modules
Phoenix Solar Product Mix: Thin-film vs. Crystalline Modules 100% Crystalline 90% 80% 45.0% 52.1% 70% 60% 79.7% 78.5% 83.1% 50% 100% 40% Thin-film 30% 55.0% 47.9% 20% 10% 20.3% 21.5% 16.9% 0% 2002 2003 2004 2005 2006 2007e 14
Slide 15: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 15
Slide 16: Guidance 2007 & Outlook 2010
Guidance 2007 & Outlook 2010 Guidance 2007 Outlook 2010 Sales: > 200 €M (up from 200 €M) Sales: > 500 €M EBIT: > 11 €M (up from 9 €M) Positioning of Phoenix Solar as an internationally active International business estimated at concern 60 €M (up from 40 €M) Expansion of international 60 – 70 MWp mod
Slide 17: Sales Development
Sales Development €M 600 500.0 500 400 300 >200.0 200 R 7 6.0 % C AG 111.1 119.0 100 67.2 14.4 20.8 23.5 0 4.0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007e ... 2010e Up to 2004: Phoenix Solar AG (HGB) 2005-6: Revenue of Phoenix Concern (IFRS) 17
Slide 18: Revenue Share of Business Segments
Revenue Share of Business Segments 100% Components & Systems (Germany) Components & Systems (ROW) 90% Power Plants (ROW) Power Plants (Germany) 80% 46.3% 70% 60.4% 72.0% 60% 50% 6.3% 5.6% 40% 5.5% 30% 4.0% 20% 41.8% 34.1% 24.0% 10% 0% 2004 2005 2006 18
Slide 19: EBIT / EBIT-Margin Development
EBIT / EBIT-Margin Development EBIT EBIT-Margin (€ M) 6.9% 16 7% 14 6% 5.5% 12 > 11.0 5% 10 3.7% 4.0% 4% 8 7.7 3% 6 4.8 2% 4 2.5 2 1% 0 0% 2004 2005 2006 2007e According to International Financial Reporting Standards (IFRS) 19
Slide 20: Annual Results / Earnings per Share
Annual Results / Earnings per Share €M € / share 7.0 Net Results 1,00 0.92 EPS 0,90 6.0 0,80 4.95 5.0 0,70 0,60 4.0 0.55 3.02 0,50 3.0 0.34 0,40 2.0 1.70 0,30 0,20 1.0 0,10 0.0 0,00 2004 2005 2006 According to International Financial Average # of shares: 5,025,000 5,372,945 5,546,173 Reporting Stand
Slide 21: Quarterly Sales Development 2006 / 2007
Quarterly Sales Development 2006 / 2007 Group Results €M 80 Sales Group Sales 73.2 70 +67% Q3 2007 revenue increased by 156 % yoy 60 53.7 Q1-3 2007 revenue already 50 43.8 significantly higher than all of 2006 40 +192% Q1-3 2007 growth (102 %) in line 28.6 with revenue guidance 2007 30 21.4 (> 68 %)
Slide 22: Quarterly EBIT Development 2006 / 2007
Quarterly EBIT Development 2006 / 2007 Group Results EBIT EBIT-Margin (€ T) Group EBIT 10,000 9499 21% 18% Significantly improved EBIT yoy: 8,000 13.0% 15% - EBIT Q3 2007 up 537 % 12% compared to Q3 2006 6,000 9% - EBIT Q1-3 2007 (8.98 €M) up 5.2% 5.6% 6% 407 % compared to 4,000 2.2% Q1-3 2006 (1.77
Slide 23: Quarterly Sales Development 2006/2007 Power Plant Segment
Quarterly Sales Development 2006/2007 Power Plant Segment €M 50 Sales Power Plant Segment 45 43.9 Q3 2007 revenue increased by 40 209 % yoy and 139 % qoq 35 33.0 +139% Revenue Q3 2007 already 30 higher than Q4 2006 25 International revenues 20 18.4 dominating (6.5 MWp La Solana, 14.2 1 MWp Jumilla)
Slide 24: Quarterly EBIT Development 2006/2007 Power Plant Segment
Quarterly EBIT Development 2006/2007 Power Plant Segment €T 8,000 EBIT 22% Power Plant Segment 20% 7,000 6429 18% Positive EBIT in all quarters 6,000 14.6% 16% 14% EBIT up 1,097 % compared to 5,000 12% Q2 2007 4,000 8.4% 8.2% 10% 7.8% 8% EBIT up 441 % compared to -114 % 3,000 2558 2.9% 6% Q3 2006 2,
Slide 25: Quarterly Sales Development 2006/2007 Components & Systems Segment
Quarterly Sales Development 2006/2007 Components & Systems Segment €M 35 Sales Components & Systems Segment +15% 29.3 Q3 2007 revenue increased 30 105 % yoy and 15 % qoq 25.4 25 Market strengths 2007 vs. 20.8 +123% market weakness 2006 evident 20 14.9 -16% Revenues Q1-3 2007 already 14.3 15 12.5 hig
Slide 26: Quarterly EBIT Development 2006/2007 Components & Systems Segment
Quarterly EBIT Development 2006/2007 Components & Systems Segment €T 3000 EBIT 2887 14% Components & Systems Segment 12% 2500 9.9% 10% Q1 2007 EBIT dominated by 2000 8% seasonally weak Q1 and clearing 6% sales 1500 1.9% 1.7% 4% 1.6% 1000 3.7% 2% Q3 2007 EBIT increased by 546 1.4% 352 404 0% 958 % yo
Slide 27: Quarterly Sales Development 2006/2007 National Sales
Quarterly Sales Development 2006/2007 National Sales €M 60 National National Sales 50.4 Q3 sales up 61 % compared to 50 48.3 Q2 2007 +61% 40 Q3 sales up 118 % compared to Q3 2006 31.3 30 23.1 +122% 20.1 20 13.6 14.1 10 0 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 27
Slide 28: Quarterly Sales Development 2006/2007 International Sales
Quarterly Sales Development 2006/2007 International Sales €M 25 International International Sales 22.8 Strong growth in international 20 +82% sales (up 82 % compared to Q2 2007) 15 Q3 sales up 315 % compared to 12.5 Q3 2006 10 Revenues Q3 2007 alone higher than all int’l revenues of 2006 +1262% 5.5
Slide 29: Order Backlog Development Q3 2006 vs. Q3 2007
Order Backlog Development Q3 2006 vs. Q3 2007 Order intake and order backlog €M remain at record levels 150 133.5 High yoy order backlog growth 130 driven by both Power Plants and 110 +266% Components & Systems segment 90 85.4 +154% 70 48.1 50 36.5 33.6 +1559% 30 10 2.9 30.9.2006 30.9.2007 30.9.2006
Slide 30: Order Backlog Development Q4 2006 to Q3 2007
Order Backlog Development Q4 2006 to Q3 2007 Strategic module allocation reflected in Q1 order backlog €M increase for Power Plants and 150 133.5 in Q2 for Components & 130 +20% Systems segments 110.8 110 Order intake 2008 started +42% 90 85.4 78.1 +31% +6.5% 70 65.4 +591% 61.4 +6% 45.4 48.1 50 +115
Slide 31: Outlook Q4 2007
Outlook Q4 2007 Construction work on 6.5 MWp La Solana plant (Spain) to be finished in Q4 Market entry in Greece successful: - 25 MW project development contract in co-operation with KGAL - First Megawatt contract signed for a project near Thessaloniki Mountain View School Project inaugurated as pre
Slide 32: Improved Supply Visibility for 2010
Improved Supply Visibility for 2010 First Solar: - 2nd framework contract extension signed in May leading to higher allocation in 2007 - 4th framework contract extension signed in September leading to higher allocation 2008 – 2012 now totalling 396 MWp 2008 – 2010 framework contract totalling 63 MWp
Slide 33: Improved Sales Visibility for 2010
Improved Sales Visibility for 2010 275 €M framework contract 2008 – 2010 with KGAL signed (represents approx. one fourth of sales targets 2010) 25 MWp Solar power plants development contract signed with Greek project developer (first contracts expected 2008) First power plant contract concluded with
Slide 34: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 34
Slide 35: Investment Highlights
Investment Highlights Business model focuses on the core capabilities (PV systems technology), allows for high flexibility and fast exploitation of market opportunities Phoenix growth until 2010 above expected world market growth of 25-30 % reaching 500 €M revenues Expansion of international busines
Slide 36: Phoenix Solar at a Glance
Phoenix Solar at a Glance Reporting date / period 01.01. – 01.01. – 01.01. – 01.01. – 30.09.2007 30.09.2006 30.09.2007 30.09.2006 Balance sheet1 Employees1 Total assets T€ 114,973 59,506 Employees2 Number 125 90 Equity T€ 38,153 24,415 Sales per capita3 T€ 1,124 860 Equity Ratio % 33.18 41.03 Return
Slide 37: Contact
Contact Phoenix Solar AG Hirschbergstrasse 8 D-85254 Sulzemoos Phone +49 8135 938-000 www.phoenixsolar.com Fax +49 8135 938-399 phoenix@phoenixsolar.de Investor Relations Public Relations Anka Leiner Andrea Zepf Phone +49 8135 938-315 Phone +49 8135 938-313 a.leiner@phoenixsolar.de a.zepf@phoenixsol
Slide 38: Disclaimer
Disclaimer The content of this presentation is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss