Soltec Power Holdings SA · BME:SOL
Soltec Power Holdings SA — H1 2023 Earnings Presentation
36 slides from Soltec Power Holdings SA's earnings presentation, Sep 26, 2023
Slide 1: H1 2023 Financial Results
H1 2023 FINANCIAL RESULTS September 26th, 2023
Slide 2: Agenda
01 H1 2023 Key Highlights 02 H1 2023 Operational Indicators 03 H1 2023 Financial Results 04 Closing Remarks 05 Appendix H1 2023 FINANCIAL RESULTS Agenda
Slide 3: Key Highlights
01 Key Highlights
Slide 4: Key Highlights
KEY HIGHLIGHTS H1 2023: STRONG VISIBILITY CONFIRMED AND GOOD VOLUMES TO COME €184.5 Mn €(10.2) Mn FY 2023 CONSOLIDATED CONSOLIDATED GUIDANCE REVENUES ADJ. EBITDA CONFIRMED €412 Mn €16,925 Mn 2.3 GW BACKLOG PIPELINE 55 NEW CONTRACTS AS OF AUGUST 23 AS OF JUNE 23 SIGNED (JAN-SEP) INDUSTRIAL 254 MW 130
Slide 5: Operational Indicators
02 Operational Indicators
Slide 6: Soltec at a Glance
SOLTEC AT A GLANCE BUSINESS AND GEOGRAPHICAL DIVERSIFICATION EUROPE 424 MW 5,926 MW INDUSTRIAL DEVELOPMENT USA 25 MW 5 MW CONSTRUCTION OPERATION (3) 111 MW 100 MW INDUSTRIAL DEVELOPMENT 2 PRODUCTION 1 LOGISTIC FACILITIES (1) CENTER(2) 1 LOGISTIC CONTRIBUTION TO REVENUES CENTER (2) 34% CONTRIBUTION T
Slide 7: Soltec Industrial
SOLTEC INDUSTRIAL STRONG ACTIVITY DURING H2 2023 55 2.3 286 CONTRACTS SIGNED January-September 2023 GW € Mn STRONG VALUE PROPOSITION OF SOLAR TRACKERS • High energy prices and the increasing demand for solar energy, together with the MW increasing production of trackers versus fixed tilt installatio
Slide 8: Reinforcing Our Positioning in the US
REINFORCING OUR POSITIONING IN THE US Inflation Reduction Act (IRA) LOCAL OFFICE IN LOGISTIC CENTER Encourages investment in domestic energy production and TEAM FLORIDA IN TEXAS manufacturing through 2030 to reduce carbon emissions. STATE OF THE ART SUPPLY CHAIN INCREASING REVENUES UP TO 50% SECURED
Slide 9: Soltec Industrial: Strong Operational Indicators
SOLTEC INDUSTRIAL STRONG OPERATIONAL INDICATORS BACKLOG(1)(2) €412 (4) Mn €412 Mn (4) +13% +31% BACKLOG AUGUST 2023 €289 +2 GW 1,245 MW €221 Mn 1,402 MW Mn + NEW CONTRACTS Inminent closing in Markets with local production €23 Mn capabilities CONTRACTS SIGNED Mar 2023 Jun 2023 Aug 2023 SEPTEMBER 2023
Slide 10: Soltec Industrial: Operational Indicators
SOLTEC INDUSTRIAL OPERATIONAL INDICATORS Operational indicators underpinned by the strong value proposition of solar trackers, and demand worldwide EUROPE NORTH AMERICA NA (1) SPAIN AZERBAIJAN UNITED STATES MEXICO Backlog: €80 Mn Pipeline: €30 Mn 30% Backlog: €88 Mn Pipeline: €90 Mn Pipeline: €1,646
Slide 11: Soltec Development 14 GW
SOLTEC DEVELOPMENT H1 2023 PLATFORM UNDER DEVELOPMENT TECHNICAL AND LOCAL 468 MW Total: 65% A QUALITY ENGINEERING PARTNERSHIPS in Spain Soltec: 35% Existing co-development partnerships with leaders in PLATFORM Lean Development platform the market. Soltec Development remains as developer 1.2 GW Aquil
Slide 12: Solid Pipeline Under Development
SOLTEC DEVELOPMENT SOLID PIPELINE UNDER DEVELOPMENT Projects mainly located in Italy & Spain: BACKLOG ADVANCED STAGE • Italy: 2,234 MW MW/year MW/year • 1,728 MW expected RTB in 2024. • 488 MW in the Backlog, correspond to projects in Brazil, at RTB status. +4% • 57% in co-development with Aquila an
Slide 13: Soltec Assets: Capacity Under Operation and Construction
SOLTEC ASSETS CAPACITY UNDER OPERATION AND UNDER CONSTRUCTION CAPACITY UNDER OPERATION 117 MW 230 MW Pedranópolis Araxá La Asomada (1) 112.5 MW 112.5 MW 4.5 MW 138 MW CAPACITY UNDER CONSTRUCTION 25 MW La Isla (1) Los Valientes I & II (1) Totana IV 4.5 MW 14.9 MW 5.5 MW 2022 Q2 2023 Capacity under op
Slide 14: Soltec Assets: Capacity Under Operation
SOLTEC ASSETS CAPACITY UNDER OPERATION PEDRANÓPOLIS(1) ARAXÁ(1) LA ASOMADA(2) KEY PROJECT DATA KEY PROJECT DATA KEY PROJECT DATA Location Sao Paulo (Brazil) Location Minas Gerais (Brazil) Location Murcia (Spain) Capacity 112.5 MWp Capacity 112.5 MWp Capacity 4.5 MWp Net Energy Generated Net Energy G
Slide 15: Soltec Assets: Capacity Under Construction
SOLTEC ASSETS CAPACITY UNDER CONSTRUCTION LA ISLA(1) LOS VALIENTES I Y II(1) TOTANA IV KEY PROJECT DATA KEY PROJECT DATA KEY PROJECT DATA Location Murcia (Spain) Location Murcia (Spain) Location Murcia (Spain) Capacity 4.5 MWp Capacity 14.9 MWp Capacity 5.5 MWp Net Energy Generated Net Energy Genera
Slide 16: Soltec Assets: PPA Strategy
SOLTEC ASSETS PPA STRATEGY 260 MW PPA STRATEGY 4 DEALS Hedging against merchant volatile prices 5 Assets (1) 29.4 MW 2 Assets 1 Asset 225 MW 5.5 MW 1. Offtakers with investment grade ratings to guarantee success in negotiations 2. Fixed price to provide a shield 3. Long-term PPA 4. PPA prices linked
Slide 17: Financial Results
03 Financial Results
Slide 18: H1 2023 Financial Results
H1 2023 FINANCIAL RESULTS SOLTEC POWER HOLDINGS CONSOLIDATED RESULTS (1) € Mn H1 23 H1 22 23 vs.22 • The company shows strong visibility with strong shipments and commercial agreements in areas with high growth potential. Revenues 184.5 244.5 (60.0) • Financial performance: As expected, key metrics
Slide 19: Soltec Industrial Financial Results
H1 2023 FINANCIAL RESULTS SOLTEC INDUSTRIAL(1) FINANCIAL RESULTS € Mn H1 23 H1 22 23 vs.22 Strong orders and good visibility for coming quarters. • Strong contract signing and operational indicators, reflecting the strong demand in the Revenues 174.8 265.7 (90.8) market and the good market positioni
Slide 20: Soltec Industrial Revenue Breakdown
H1 2023 FINANCIAL RESULTS SOLTEC INDUSTRIAL REVENUE BREAKDOWN BY ACTIVITY BY GEOGRAPHY United States Latam (1) 21% 45% Supply 66% Construction services 34% (2) Europe 34% • Supply of Solar trakers represented 66% of revenues, while construction services represented 34%. • Europe 34%, the United Stat
Slide 21: Soltec Development
H1 2023 FINANCIAL RESULTS SOLTEC DEVELOPMENT € Mn • Asset rotation strategy: 384.4 MW in H1 2023 H1 23 H1 22 23 vs.22 • 254.4 MW rotated to Soltec Assets in 2023: Adj. EBITDA Proforma(1) (2) (5.1) (3.0) (2.1) • Araxá (Brazil): 112.5 MW • Pedranópolis (Brazil): 112.5 MW QUARTERLY EVOLUTION (2023) • L
Slide 22: Soltec Assets
H1 2023 FINANCIAL RESULTS SOLTEC ASSETS € Mn H1 23 H1 22 23 vs. 22 • Financing secured: Revenues 4.6 - - • Successful equity raise of €100 Mn in H1 2023. Adj. EBITDA(1) 3.8 - - • Capacity under operation in Brazil and Spain in H1 2023: 225 MW QUARTERLY EVOLUTION (2023) • Araxá: 112.5 MW • Pedranópol
Slide 23: Net Financial Debt
NET FINANCIAL DEBT AS OF JUNE 30TH, 2023 DEBT WITH NO RECOURSE TO SOLTEC POWER HOLDINGS SOLTEC INDUSTRIAL REVOLVING CREDIT FACILITY € Mn INDUSTRIAL DEVELOPMENT ASSETS • Bankable projects: €80 Mn 17.9 Disposition: €10 Mn 62.3 250.5 4.2 • Maturity: February 11, 2024 228.3 • Bank guarantees: €110 Mn •
Slide 24: Cash Flow as of June 30th, 2023
CASH FLOW AS OF JUNE 30TH, 2023 € Mn Jan 1st H1 2023 2023 70.0 (1.9) 19.0 17.9 (54.2) (15.0) CASH CASH FLOWS CASH FLOWS CASH FLOWS EFFECT OF CASH & CASH FROM FROM FROM EXCHANGE & CASH EQUIVALENTS OPERATING INVESTING FINANCING RATE EQUIVALENTS (1) AT THE START ACTIVITIES ACTIVITIES ACTIVITIES VARIATI
Slide 25: Closing Remarks
04 Closing Remarks
Slide 26: A Unique, Vertically Integrated Solar Company with Proven Businesses
AN UNIQUE, VERTICALLY INTEGRATED SOLAR COMPANY WITH 3 PROVEN BUSINESSES • €412 Mn BACKLOG (1) AS OF AUGUST 2023 STRONG VISIBILITY • €16,925 Mn PIPELINE AS OF JUNE 2023 +96% POTENTIAL (vs. T.P.) AND DEMAND OF • + 2 GW INMINENT CONTRACTS Share price trading at strong discount SOLAR TRACKERS • GROWING
Slide 27: Appendix
05 Appendix
Slide 28: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (€, 000) H1 2023 H1 2022 Revenue 184,513 244,533 Changes in inventories of finished goods and work in progress (153) 262 Other operating income 2,223 832 Works carried out by the Group for its assets 8,422 31,396 Supplies (116,933) (178,150) Personnel expenses (35,371)
Slide 29: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (€, 000) 30.06.23 31.12.22 SHAREHOLDERS' EQUITY AND LIABILITIES 30.06.23 31.12.22 NON-CURRENT ASSETS SHAREHOLDERS' EQUITY Capital and reserves Intangible assets 34,065 28,349 Share capital 22,847 22,847 Property, plant and equipment 171,304 160,041 Share premium 143
Slide 30: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS (€, 000) H1 2023 FY 2022 Profit/(loss) before tax (21,931) 18,079 Adjustments to the profit / (loss) 10,528 14,289 Changes in net working capital (31,817) (1,867) Other operating cash flow (10,931) (7,625) Cash flows from operating activities (54,151) 22,876 Cash
Slide 31: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES GROSS MARGIN NET MARGIN Net turnover + Changes in inventories of finished goods and Gross margin - Other personnel expenses - Other operating work in progress - Supplies expenses + Losses, impairment and changes in provisions for The Parent Company as a measure of th
Slide 32: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES NET MARGIN ON SALES ADJUSTED EBITDA Net margin / net turnover EBITDA + Losses, impairment losses and changes in provisions The net margin on sales is considered by the group’s management as a for trading operations measure of the performance of its activity, as it pr
Slide 33: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES BORROWINGS NET FINANCIAL DEBT Current bank borrowings + Non-current financial liabilities + Borrowings - Current financial assets - Cash and cash Other current financial liabilities + Derivatives equivalents (excluding those other components of cash that are pledged
Slide 34: Disclaimer
DISCLAIMER This document has been prepared by Soltec Power Holdings, S.A. (“Soltec”) exclusively for use during the trading update for the six-month period ended on June 30th, 2023. Therefore, this document may not be disclosed or published, nor used by any other person or entity, for any other reas
Slide 35: Disclaimer
DISCLAIMER This document contains certain financial measures of the Company that are not based on International Financial Reporting Standards (IFRS), but rather on its accounting records, which the Company considers as alternative performance measures (APMs) for the purposes of Commission Delegated
Slide 36: Slide 36
Soltec Power Holdings — H1 2023 Earnings Presentation on 6ix