Phoenix Solar Ag · HAM:PS4
Phoenix Solar — FY2009 Earnings Presentation
31 slides from Phoenix Solar's earnings presentation, Mar 9, 2010
Slide 1: Phoenix Solar AG Preliminary Results 2009
Phoenix Solar AG Preliminary Results 2009 - Conference Call - 9 March 2010 Dr. Andreas Hänel (CEO) Sabine Kauper (CFO)
Slide 2: 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
Slide 3: Table of Contents
Table of Contents 1. Review of Market Development 2009 & Impact on Phoenix 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix 4. Outlook 2010 3
Slide 4: 2009 was not an Ordinary Year for the Solar Industry
2009 was not an Ordinary Year for the Solar Industry 2009 was not only affected by the financial and economic crisis but also by: A 95% decline of the Spanish market volume with a need to find new customers and markets for more than 2.3 GWp A harsh winter lasting until the end of Q1 with few install
Slide 5: How did Phoenix Solar Cope with the Market Environment 2009
How did Phoenix Solar Cope with the Market Environment 2009 Renegotiated prices and delivery terms with Phoenix Solar’s suppliers Matched module deliveries to demand situation From mid-Q2’09 onwards sourced modules only on short notice, ideally from European warehouses of Asian suppliers Re-focused
Slide 6: How did Phoenix Solar Perform in 2009
How did Phoenix Solar Perform in 2009 Revenues up 17.5% to 473.0 €M, despite difficult market situation EBIT 12.2 €M due to very strong Q4 (EBIT Q4: 16.5 €M) Business segments with counterbalancing development: Components & Systems revenues up 39.3% to 299.0 €M, strong growth especially in Germany P
Slide 7: Cumulated Module Sales of Phoenix Solar surpass 500 MWp
Cumulated Module Sales of Phoenix Solar surpass 500 MWp MWp sold, Phoenix Solar MWp sold, worldwide* 202.0 % 66 6,874 9% G R G R8 CA 5,670 CA 120.0 72.0 2,572 30.0 1,494 2006 2007 2008 2009 2006 2007 2008 2009 Thin-film Phoenix 47.9% 51.9% 57.2% 74.2% 2.4% 2.8% 2.1% 2.9% share share Phoenix Solar ha
Slide 8: Table of Contents
Table of Contents 1. Review of Market Development 2009 & Impact on Phoenix 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix 4. Outlook 2010 8
Slide 9: Revenues: Q4'09 Strongest Quarter in Group History
Revenues: Q4’09 Strongest Quarter in Group History €M Revenue €M Revenue 473.0 402.5 2008 230.8 2009p 260.1 149.3 110.2 115.7 101.4 89.7 119.0 41.6 36.7 2006 2007 2008 2009p Q1 Q2 Q3 Q4 Upper end of revised revenue guidance of 430 - 480 €M achieved Revenues up 17.5% to 473.0 €M (2008: 402.5 €M) Q4 s
Slide 10: Earnings: EBIT Strongly Improved in H2'09
Earnings: EBIT Strongly Improved in H2’09 €M EBIT €M EBIT 33.8 17.6 16.5 2008 22.3 2009p 11.2 12.2 4.7 4.8 3.0 0.4 0.1 2006 2007 2008 2009p Q1 Q2 Q3 Q4 Revised EBIT-guidance achieved -7.4 (“positive EBIT”) EBIT-Margin Q1 - mid Q3 negatively affected by Total Q1 Q2 Q3 Q4 deflationary market environme
Slide 11: Components & Systems Segment Dominated Sales
Components & Systems Segment Dominated Sales €M Revenue €M EBIT 14.0 299.0 214.6 129.3 6.1 4.3 62.5 1.3 2006 2007 2008 2009p 2006 2007 2008 2009p Revenue EBIT- 52.9% 49.7% 53.3% 63.2% 2.1% 3.3% 6.5% 2.0% share margin Components & Systems segment dominated revenues with a share of 63.2% Revenues up 3
Slide 12: Power Plant Segment Negatively Impacted by Project Approval and Financing Delays
Power Plant Segment Negatively Impacted by Project Approval and Financing Delays €M Revenue €M EBIT 187.8 174.0 19.9 17.9 130.7 56.4 6.1 3.2 2006 2007 2008 2009p 2006 2007 2008 2009p Revenue EBIT 47.1% 50.3% 46.7% 36.8% 5.7% 13.8% 10.6% 3.5% share Margin Power Plants segment contributed 36.8% to 200
Slide 13: Outlook: Order Backlog Indicates Return to Accelerated Growth
Outlook: Order Backlog Indicates Return to Accelerated Growth €M Order Backlog Total free order backlog up 119% 296 yoy to 234 €M (2008: 107 €M) Free order backlog dominated by +164% 112 C&S orders (78%) Order intake further accelerated after year-end 2009 112 184 78 34 31.12.2008 31.12.2009p Compon
Slide 14: Balance Sheet Affected by Project Delays into 2010
Balance Sheet Affected by Project Delays into 2010 Total Assets & Liabilities (€M) 31 Dec 2009 31 Dec 2008 ∆ Analysis ∆ Assets 182.2 127.8 - Current assets 172.9 122.4 of which: Inventory 69.2 76.0 Stock in warehouse: 43.1 €M Goods in transit: 26.1 €M of which: receivables from 41.1 0.7 Large number
Slide 15: Working Capital Analysis
Working Capital Analysis Working Capital (€M) 31 Dec. 2009 31 Dec. 2008 Working Capital 92.8 87.5 ∆ current assets 172.9 122.4 - Inventory 69.2 76.0 - Receivables from long-term construction contracts 41.1 0.7 - Cash and cash equivalents 24.5 7.5 ∆ current liabilities 80.1 34.9 - Trade payables 51.7
Slide 16: Operating Cash Flow Analysis
Operating Cash Flow Analysis Operating Cash Flow (€M) 31 Dec 2009 31 Dec 2008 Operating Cash Flow 21.6 -23.6 Cash flow optimised by: reduction in inventory by improved working capital management liabilities increased more than receivables by the end of the year 16
Slide 17: Table of Contents
Table of Contents 1. Review of Market Development 2009 & Impact on Phoenix 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix 4. Outlook 2010 17
Slide 18: Additional cuts in feed-in tariffs on 1 July 2010
Additional cuts in feed-in tariffs on 1 July 2010 (Status as of 3 March 2010) One-time, additional reduction of the feed-in tariff on 1 July 2010 of: 16% for roof-mounted systems 15% for ground-mounted systems elsewhere 11% for ground-mounted systems on “conversion” sites (former industrial or milit
Slide 19: Additional cuts in feed-in tariffs on 1 July 2010 (continued)
Additional cuts in feed-in tariffs on 1 July 2010 (Status as of 3 March 2010) Changes in the eligibility of ground-mounted systems for feed-in tariffs: Ground-mounted systems on agricultural land no longer eligible for feed-in tariffs! Exemption made for projects that had already secured land-use ap
Slide 20: Limited Impacts of German FIT Reductions on Phoenix Solar
Limited Impacts of German FIT Reductions on Phoenix Solar 16% additional FIT cuts will not slow German roof-mounted market significantly as end-customer’s returns will remain high (widely accepted target corridor is 6 – 8% IRR return) Majority of Phoenix Solar’s business is on roofs through Componen
Slide 21: Table of Contents
Table of Contents 1. Review of Market Development 2009 & Impact on Phoenix 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix 4. Outlook 2010 21
Slide 22: Significant Growth Drivers 2010 and Beyond for Phoenix Solar
Significant Growth Drivers 2010 and Beyond for Phoenix Solar Fundamental trends intact: significant PV world market growth of 30 – 50% in 2010 and 50 – 70% in 2011 expected German market may grow to 3 – 4 GWp in 2010 (from 3 GWp in 2009) Even market volumes of above 6 GWp are now politically accepta
Slide 23: Guidance 2010 & Outlook 2013
Guidance 2010 & Outlook 2013 Detailed Guidance 2010 Long-term Outlook 2013 after finalisation of the EEG Maintained In 2010 Phoenix Solar again Sales: 1.5 €Bil. expects significant volume growth, EBIT: 100 €M increasing sales together with Positioning of Phoenix Solar improved profitability and as a
Slide 24: Summary
Summary Phoenix Solar is one of the very few German solar companies showing revenue increase yoy and profitable business in 2009 Q4 strongest quarter in sales in group history Phoenix Solar gained significant world market share Dividend proposal of 0.20 € per share Cumulated module sales of Phoenix
Slide 25: Thank you for your attention!
Thank you for your attention! 25
Slide 26: Financial Calendar
Financial Calendar 9 March 2010 Preliminary figures 2009 (conference call) 22 April 2010 Annual Report 2009 11 May 2010 Results 1st Quarter (conference call) 16 June 2010 Annual General Meeting 11 August 2010 Results 1st Half (conference call) 10 November 2010 Nine-Month Results (conference call) 26
Slide 27: Contact Details
Contact Details Anka Leiner Head of Investor Relations Tel.: +49 (0)8135 938 -315 Fax: +49 (0)8135 938 -399 E-mail: a.leiner@phoenixsolar.de 27
Slide 28: Phoenix Solar at a Glance
Phoenix Solar at a Glance Founded Nov. 1999, headquartered near Munich, global workforce >300 One of the leading globally active PV system integrators (3 continents, 8 countries) CAGR 2000 – 2009 revenue: 70% Continuously profitable since 2004 Stock-listed since November 2004, TecDAX-listed since Ma
Slide 29: Offering to the Customer Segments
Offering to the Customer Segments Components & Systems Power Plant Sales Power Plants Investor Business Residential Commercial Large-Scale 0,1 MWp 1 MWp 10 MWp 1 kWp* 20 kWp 500 kWp 1 MWp 5 MWp 10 MWp+ Phoenix Solar’s business model covers all PV system sizes: • Components & Systems 1kWp - 1 MWp • P
Slide 30: Focused Business Model
Focused Business Model Focus on Photovoltaics Exclusively active in the field of photovoltaics, the market segment of renewable energies with the highest growth rate Focus on PV System Technology Focus on core competence of high-yield, long-lasting and profitable PV systems System integrators are th
Slide 31: Worldwide Company Locations in 8 Countries and 3 Continents
Worldwide Company Locations in 8 Countries and 3 Continents Phoenix Solar AG, Germany (Since Nov. 1999) Phoenix Solar SAS, France (Since Sept. 2009) Phoenix Solar, Phoenix Solar USA S.L., Spain (coming H1 2010) (Since Apr. 2006) Phoenix Solar Phoenix Solar S.r.l., Italy (Since July 2006) Pte Ltd, Si