7c Solarparken Ag · XETR:HRPK
7c Solarparken — H1 2021 Earnings Presentation
28 slides from 7c Solarparken's earnings presentation, Sep 28, 2021
Slide 1: H1 2021 Results & Annual Outlook
H1 2021 Results & Annual Outlook September 28, 2021 ANALYST PRESENTATION 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 OVERVIEW MARKET CHARTS H1 RESULTS ANNUAL OUTLOOK AGENDA 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 running parks Recurring fees Internalising lease cost New-build development Economies of scale Repowering potential Optimise
Slide 5: IPP Portfolio: Existing Assets 316 MWp, EBITDA ca. EUR 47 Mio
IPP PORTFOLIO Existing Assets 316 MWp, EBITDA ca. EUR 47 Mio Capacity % FIT Production Yield Revenues EBITDA LOCATION OF GERMAN PARKS > 2 MWP MWp EUR/MWh GWh kWh/kWp EUR Mio EUR Mio I Freefield 199 63% 168 199 1,001 33.3 28.7 III Rooftop 111 35% 210 98 881 20.5 17.4 Germany 96 30% 225 74 769 16.7 14
Slide 6: Financial Profile: Steady EBITDA Growth and Equity Ratio > 35%
FINANCIAL PROFILE Steady EBITDA Growth and Equity Ratio > 35% EBITDA AND EBITDA RETURN (EBITDA/TOTAL ASSETS) EQUITY RATIO AND CASH FLOW PER SHARE 40% 0.65 50 11.0% 35% 10.2% 35% 0.60 45 9.6% 9.5% 9.4% 10.0% 32% 8.9% 30% 0.55 40 30% 29% 9.0% 35 7.6% 25% 0.50 8.0% 25% 23% 30 0.60 0.55 0.57 0.45 7.0% 2
Slide 7: Valuation: Market Cap versus Installed Capacity
VALUATION Market Cap versus Installed Capacity 350 KEY EVENTS SINCE REVERSE IPO LATE 2014 300 5 1 Listing of the new group 7C Solarparken after business 250 combination with Colexon Energy AG (26 MWp) 4 200 2 Business combination with Miskina (14 MWp) 150 3 3 Entry in Project Development financed by
Slide 8: Shareholders: Free float has further increased to 76%
SHAREHOLDERS Free float has further increased to 76% OWNERSHIP STRUCTURE 31 08 2021 EQUITY ANALYSTS OVERVIEW 3% 3% 5% Latest Research / Rating / Target Price Free float 6% MM Warburg 06.09.2021 / BUY / EUR 5.20 Rodolphe de Spoelberch 7% Hauck & Aufhauser 01.02.2021 / BUY 5.20 Vlaamse Energieholding
Slide 9: Agenda
AGENDA PROFILE MARKET CHARTS H1 RESULTS ANNUAL OUTLOOK AGENDA 9
Slide 10: New-Build Market: PV remains dominant Source of Growth
NEW-BUILD MARKET PV remains dominant Source of Growth ANNUAL NET ADDITIONS IN CAPACITY GERMANY (GW), JAN-JULY FOR 2021 MARKET CHARTS 10
Slide 11: Component Prices: PV Panel Price 20% higher than one Year ago
COMPONENT PRICES PV Panel Price 20% higher than one Year ago POLYSILICON USD$/KG PV PANEL PRICE EUR/WP MARKET CHARTS 11
Slide 12: Tariffs: Regulated Tariffs down by 1.5% per month, FFAV stable, Market Price up
- 100 120 20 40 60 80 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 MARKET CHARTS Sep-15 Nov-15 Jan-16 Mar-16 May-16 Freefield < 750 kWp Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 REMUNERATION CATEGORIES IN EUR/MWH Nov-17 Jan-18 Mar-18 Large roofs < 750 kWp May-18 Jul-18 Sep-18 Nov-18 Jan-1
Slide 13: Weather: Adverse Sunshine Conditions, particularly in Q3'21
WEATHER Adverse Sunshine Conditions, particularly in Q3’21 SUNSHINE HOURS GERMANY MARKET CHARTS 13
Slide 14: PV Production: 10% less relative Output vs H1'20
PV PRODUCTION 10% less relative Output vs H1’20, abnormally weak in Q3’21 NATIONWIDE KWH/KWP Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 Jan-Aug YEAR 2011 21 41 101 132 147 122 112 116 100 75 41 15 564 792 1,023 2012 26 47 93 100 138 118 125 130 96 62 27 15 522 777 977 2013 12 25 74 98 103 12
Slide 15: Agenda
AGENDA PROFILE MARKET CHARTS H1 RESULTS ANNUAL OUTLOOK AGENDA 15
Slide 16: Operational Growth: Capacity Growth + 45 MWp in H1'21
OPERATIONAL GROWTH Capacity Growth + 45 MWp in H1’21 ANNUAL/QUARTERLY ADDITIONS IN MWP 295 MWP IPP TARGET 2021 EXCEEDED 70 301 295 MWp 60 256 14 50 190 40 154 66 26 30 118 101 86 20 36 36 71 10 18 19 15 14 - 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 2014 2015 2016 2017 2018 2019 2020 H1
Slide 17: KPI's: Relative Output Yield in line with Market Average
KPI’S Relative Output Yield in line with irradiation-driven Market Average ANNUAL/QUARTERLY ADDITIONS IN MWP 2021 H1 2020 H1 % COMMENT Solar + Wind in GWh 144,7 117,5 23,2 % Solar kWh/kWp 509,6 568,8 -10,4 % Poor irradiation conditions Wind (kWh/kW operating hours) 1.054,9 1.455,1 -27,5 % Poor wind
Slide 18: P&L: EBITDA +8.5% boosted by increased operational Capacity
P&L EBITDA +8.5% boosted by increased operational Capacity In Mio EUR 2021 H1 2020 H1 % COMMENT Revenues 28.8 26.7 7.9% o/w power sales 28.3 25.6 Driven by capacity growth to 301 MWp including full consolidation of 2 PV funds Other income 1.0 1.0 Special items incl. compensation for outages and reve
Slide 19: Balance Sheet: Equity Ratio rises to 36.7%
BALANCE SHEET Equity Ratio rises to 36.7% In Mio EUR 2021 H1 2020 COMMENT ASSETS 478.4 458.5 Land & Property 11.9 11.9 PV Estate Right of use assets 31.4 22.0 IFRS 16 Solar and windparks 349.1 337.3 Reflects expansion of IPP portfolio Financial Investments 1.0 1.6 Stakes in non-consolidated PV funds
Slide 20: Cash Flow per Share: Drops to EUR 0.30/share
CASH FLOW PER SHARE Drops to EUR 0.30/share In Mio EUR 2021 H1 2020 H1 COMMENT EBITDA 25.5 23.5 - Lease expenses (IFRS 16) -0.7 -0.4 - Cash Interest paid -3.2 -2.7 - Cash tax paid -0.7 +0.2 2020: Includes effect from tax audit (reimbursement EUR 0.6 Mio) = Net Cash Flow 20.9 20.6 Number of shares in
Slide 21: Analyst Consensus: KPI's above Expectations
ANALYST (*) CONSENSUS KPI’s above Expectations In Mio EUR 2021 H1 CONSENSUS Revenues 28.8 27.5 EBITDA 25.5 22.7 CFPS (per share) 0.30 0.27 (*) Following investment banks delivered their H1’21 estimates: MM Warburg, Hauck & Aufhauser, Stifel Europe H1 21 RESULTS 21
Slide 22: Agenda
AGENDA PROFILE MARKET CHARTS H1 RESULTS ANNUAL OUTLOOK AGENDA 22
Slide 23: Drivers for H2'21: Growth towards 335 MWp at year-end
DRIVERS FOR H2’21 Growth towards 335 MWp at year-end IPP PORTFOLIO TREND 2021 MANAGEMENT COMMENT 335 ▪ Plan to add another ca. 20 MWp to the existing portfolio throughout Q4’21 316 ▪ There will be 20 MWp more operating capacity than planned (guidance included: 275 301 MWp weighted operational capaci
Slide 24: Drivers for H2'21: Average Power Price to exceed EUR 75/MWh
DRIVERS FOR H2’21 Average Power Price for H2’21 to exceed EUR 75/MWh 5 DAY-AVERAGE POWER PRICE 2021 EUR/MWH 100 MANAGEMENT COMMENT 90 ▪ 7C Solarparken owns ca 70 MWp operating capacity that is entitled to a feed-in 80 tariff below EUR 75/MWh. This package of 70 MWp enjoys an average tariff of 70 EUR
Slide 25: Drivers for H2'21: Irradiation during Jul-Aug 13% below long-term value
DRIVERS FOR H2’21 Irradiation during Jul-Aug 13% below long-term value NATIONWIDE KWH/KWP JULY + AUGUST MANAGEMENT COMMENT 290 ▪ Operating Portfolio of at least 295 MWp will be generating 30 kWh/kWp less 270 than under a normal period of July and August AVERAGE ▪ EBITDA Impact: 295 MWp x 30 kWh/kWp
Slide 26: Guidance Revision: EBITDA forecast raised to EUR 44.4 Mio
GUIDANCE Revision EBITDA forecast raised to EUR 44.4 Mio, CFPS unchanged OUTLOOK 2021 INITIAL NEW Guidance Forecast In Mio EUR 2020 2021 2021 COMMENT EBITDA 42.9 42.5 44.4 Above Plan in H1’21 Lease paid -0.9 -1.1 -1.5 In line with growth Cash interest paid -5.5 -5.3 -5.8 In line with growth Cash tax
Slide 27: Standard Deviation: Annual Irradiation Deviations
ANNUAL IRRADIATION DEVIATIONS 15% 10% STANDARD DEVIATION 5% 2021 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -5% -10% OUTLOOK 2021 27
Slide 28: 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 CONTACT 28