Soltec Power Holdings Sa · BME:SOL
Soltec Power Holdings Sa — Investor Presentation (September 2023)
56 slides from Soltec Power Holdings Sa's investor presentation, September 2023
Slide 1: Corporate Presentation
CORPORATE PRESENTATION September 2023
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Soltec Power Holdings, S.A. (“Soltec”) exclusively for use of investors after Q1 2023 trading update. Therefore, thereof, this document may not be disclosed or published, nor used by any other person or entity, for any other reason without the express an
Slide 3: 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 4: Agenda
01 Company Overview 02 Business Units 03 Financial Update 04 Closing Remarks 05 Appendix CORPORATE PRESENTATION Agenda
Slide 5: Company overview
01 Company overview
Slide 6: An IPP with industrial capabilities
AN IPP WITH INDUSTRIAL CAPABILITIES PROJECT ASSET INDUSTRIAL DEVELOPMENT MANAGEMENT • Tracker manufacturing division that also • Greenfield solar development segment, • Selective “build-to-own” strategy. provides additional construction services developing early-stage projects to RTB • Solar IPP seg
Slide 7: Soltec has a history of integration
SOLTEC HAS A HISTORY OF INTEGRATION 18-year history of becoming an integrated leader in the solar pv sector, adapting our business model to the changing renewables environment in order to maximize value creation Project vertical interaction Strategy based on development Asset ownership Tracker manuf
Slide 8: Business integration to add financial margins
BUSINESS INTEGRATION TO ADD FINANCIAL MARGINS INSTALLATION / POWER GENERATION DEVELOPMENT EQUIPMENT CONSTRUCTION (Ownership) PROJECT DEVELOPMENT INDUSTRIAL SERVICES CONSTRUCTION SERVICES ASSET MANAGEMENT 1 Early-Stage Development TRACKER MANUFACTURING 1 Project Engineering 1 Financing Closing Plant
Slide 9: Integrated and sustainable business model to capture growth and margins
INTEGRATED AND SUSTAINABLE BUSINESS MODEL TO CAPTURE GROWTH AND MARGINS KEY PILLARS OF OUR BUSINESS MODEL VERTICAL INTEGRATION The complementary nature of the integrated model gives access to additional revenue streams and provides stability as it diversifies GEOGRAPHIC cyclical risk DIVERSIFICATION
Slide 10: Business Divisions
02 Business Divisions CORPORATE PRESENTATION
Slide 11: Industrial
BUSINESS UNITS 2.1 2.2 2.3 INDUSTRIAL DEVELOPMENT ASSETS
Slide 12: What is a solar PV tracker?
WHAT IS A SOLAR PV TRACKER? MAIN TRACKER COMPONENTS 1P SOLAR PV TRACKER 2P SOLAR PV TRACKER TRACKER PV PLANT IMPACT ▪ Solar trackers increase production Piles between 15-25% vs. fixed tilt(1) ▪ Extended production hours: producing more energy when the cost of electricity is typically higher Solar PV
Slide 13: Wide product offering for every project and customer
WIDE PRODUCT OFFERING FOR EVERY PROJECT AND CUSTOMER SFONE SF7 Module 1-in-Portrait 2-in-Portrait configuration Bifacial Low High (specific product) adaptation Complex orography Steep-slope tolerance High winds tolerance 13
Slide 14: Tracker ASP expected evolution
TRACKER ASP(1) EXPECTED EVOLUTION TRACKER PRICE DECLINES HIT A ROADBLOCK IN 2021, BUT PRICES ARE EXPECTED TO FALL IN THE NEAR FUTURE €0.17/W €0.14/W €0.12/W €0.11/W €0.11/W €0.11/W €0.10/W €0.09/W €0.09/W €0.09/W €0.09/W 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E ▪ ASP (€/W) • Steel p
Slide 15: Soltec Industrial track record
SOLTEC INDUSTRIAL TRACK RECORD TRACK-RECORD TRACKER SUPPLY 15.9 Yearly GW supplied by Soltec GW 15.6 Cumulative GW supplied by Soltec GW 0,3 11.8 3,8 GW Q1 2023 2023 8.4 15.9 GW 3,4 GW 6.1 2,2 GW 3.2 GW 2,9 0.7 1.7 2025E 2025E 0.1 0.4 GW GW GW GW 1,5 26-30 GW 0,3 0,3 1,0 0,1 2014 2015 2016 2017 2018
Slide 16: Soltec Industrial operational indicators: backlog and pipeline
SOLTEC INDUSTRIAL OPERATIONAL INDICATORS Order Backlog(1) €221 Mn and Pipeline(2) €10,870 Mn Backlog includes tracker supply and other construction services EUROPE NORTH AMERICA ALBANIA FRANCE NORTH MACEDONIA CANADA Pipeline: €2 Mn Pipeline: €6 Mn Pipeline: €14 Mn Pipeline: €48 Mn ARMENIA UNITED KIN
Slide 17: Soltec Industrial operational indicators
SOLTEC INDUSTRIAL OPERATIONAL INDICATORS BACKLOG(1)(2) BACKLOG BREAKDOWN BY ORIGIN GEOGRAPHIC DIVERSIFICATION NA (4) Soltec Development 29% (45%) €Mn €8.7 Mn 2,383 €399 Mn BACKLOG MW (48%) 10 MW €221 Mn 1,245 €221 MW Europe LATAM MW Mn Utilities, EPCand other clients 16% 55% Q1 2022 Q1 2023 PIPELINE
Slide 18: Pipeline breakdown by probability
SOLTEC INDUSTRIAL OPERATIONAL INDICATORS PIPELINE BREAKDOWN BY PROBABILITY Probability of execution of potential projects. Status Probability € Mn • Reinforced value proposition of solar trackers and strong demand in most PV countries worldwide. Contract Signed 100% MoU (Existing Customer) 100% €1,4
Slide 19: Revenue outlook
REVENUE OUTLOOK €750-800 Mn €650-750 Mn €600-700 Mn €587 Mn 2022 2023E 2024E 2025E • Figures does not include revenues generated by the projects owned by Soltec Asset Management 19
Slide 20: Improving EBITDA margins
IMPROVING EBITDA MARGINS EBITDA Margins will improve for the industrial division FACTORS HELPING EBITDA MARGINS TO INCREASE ● Increasing volumes 4.7% 6%-7% ● Tier 1 clients ● Diversification of suppliers 2022 2023E ● Increasing flexibility in supply chain ● Production near destination ● Improving co
Slide 21: Soltec Industrial ramp-up in margins
SOLTEC INDUSTRIAL RAMP-UP IN MARGINS MARGIN RECOVERY Strong seasonality loaded Ramp up in a still challenging environment in H2 2023 COVID-19 & Supply Measures implemented to face high The demand for solar trackers will chain disruptions inflation, the energy crisis and logistics materialize in the
Slide 22: Capital expenditure outlook
CAPITAL EXPENDITURE OUTLOOK Capex required for the Industrial Division remains low c.1% of total revenues €22-30 Mn €8 -10Mn €6-8 Mn €5-7 Mn €3-5 Mn 2022E 2023E 2024E 2025E TOTAL CAPEX as a % 1% 1% 1% 1% of revenues • Investments required to accomplish the BP of the Industrial division • CAPEX is ma
Slide 23: Development
BUSINESS UNITS 2.1 2.2 2.3 INDUSTRIAL DEVELOPMENT ASSETS
Slide 24: Soltec Development
SOLTEC DEVELOPMENT SOLAR PV DEVELOPMENT CYCLE COMPETITIVE ADVANTAGES Development Construction 1 In-house development from the beginning, using trackers and construction services from Soltec Industrial RTB COD 2 Agreements with Tier 1 partners to accelerate processes and minimize risks Financing Asse
Slide 25: Soltec Development pipeline by country
SOLTEC DEVELOPMENT 14.2 GW Pipeline of projects under development in 8 different countries 45%: EUROPE - 55%: AMERICAS ADV. EARLY TOTAL MW BACKLOG ID. OPP STAGE STAGE PIPELINE… Spain - 830 708 782 2,320 Brazil 488 173 1,438 4,525 6,623 DENMARK: 751 MW SPAIN: 2,320 MW Italy - 2,277 370 325 2,972 ROMA
Slide 26: Project status categorization
PROJECT STATUS CATEGORIZATION Projects in a preliminary stage (expected probability of completion <30%): ● Land secured or in process, and/or ● Feasibility study and business case performed Identified Opp. Projects in early stage 7,781 MW (expected probability of completion 30%-50%): ● Land secured
Slide 27: Asset rotation and co-development agreements
ASSET ROTATION AND CO-DEVELOPMENT AGREEMENTS SPAIN ITALY 2020 2020 ASSET ROTATION CO-DEVELOPMENT AGREEMENT CO-DEVELOPMENT AGREEMENT (51%) TO AQUILA ▪ Development 468 MW with Total in Spain of utility-scale ● Development of up to +1.2 GW in Italy of utility- MW 514 solar PV projects scale solar PV pr
Slide 28: Development costs
DEVELOPMENT COSTS • Development costs are all direct necessary investments of the project to obtain the permits (i.e. lease agreements, interconnection permits, engineering and environmental studies, construction permits, financing and PPA) to achieve RTB. DENMARK SPAIN 12,500 €/MW 15,000 €/MW USA R
Slide 29: Market prices for PV project rights at RTB
MARKET PRICES FOR PV PROJECT RIGHTS AT RTB(1) RTB PV PROJECT RIGHTS AND EPC COSTS(2), BY COUNTRY [IN K.EUR/MW MULTIPLES]. STAGE DIFFERS ACCORDING TO COUNTRIES. EPC COSTS VARY TOO “Ready-to-Build” PV projects are projects that have reached core development milestones, namely: ● Secured land (through
Slide 30: Assets
BUSINESS UNITS 2.1 2.2 2.3 INDUSTRIAL DEVELOPMENT ASSETS
Slide 31: Soltec Asset Management: a new business line
SOLTEC ASSET MANAGEMENT A NEW BUSINESS LINE A new business Selective 1 line to generate additional revenues 2 “build-to-own” strategy EQUIPMENT INSTALLATION / CONSTRUCTION PROJECT DEVELOPMENT INDUSTRIAL SERVICES CONSTRUCTION SERVICES POWER GENERATION Financing Plant 1 Closing 2 Monitoring Power 3 Sa
Slide 32: Soltec Assets operational indicators
SOLTEC ASSETS OPERATIONAL INDICATORS CAPACITY UNDER OPERATION BUSINESS PLAN 2023-2025 (1) 230 MW 117 MW 2022 Q1 2023 Q1 2023 2023 255 MW CAPACITY UNDER CONSTRUCTION 138 MW 2025E (3) 2025E 755-1,020 MW 25 MW (2) 2022 Q1 2023 (1) Capacity under operation: Pedranópolis (113 MW), Araxá (113 MW) and La A
Slide 33: Expected assets under ownership
EXPECTED ASSETS UNDER OWNERSHIP EXPECTED ASSETS UNDER OWNERSHIP 70% Europe - 30% Latam 755-1,020 MW 350 - 400 MW 250 - 300 MW 150 - 200 MW 117 MW 2022 2023E 2024E 2025E TOTAL • Long term outlook: 0.5 GW per year • Target installed capacity of assets to be owned by Soltec Asset Management in the next
Slide 34: 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
Slide 35: 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 13.9 MWp Capacity 5.5 MWp Net Energy Generated Net Energy Gener
Slide 36: Capital expenditures outlook
CAPITAL EXPENDITURES OUTLOOK ASSET MANAGEMENT INVESTMENT REQUIRED TO BRING ASSETS TO COD STATUS €250-300 Mn €770-950 Mn 80-90% €200-250 Mn 10-20% 80-90% 80-90% €170-200 Mn 10-20% €150-200 Mn 80-90% 10-20% 90% 10-20% 10% 2022E 2023E 2024E 2025E TOTAL Development Construction • Development: developmen
Slide 37: Investment criteria
INVESTMENT CRITERIA IRR TARGETS BASED ON GEOGRAPHIC RISK, OFF-TAKER CREDITWORTHINESS, AND DEGREE TO WHICH ASSET IS CONTRACTED TARGETED EQUITY IRRS BY GEOGRAPHY METHODOLOGY 1 IRRs contemplated over 30-year forecast 7–9% 10-13% period, in line with industry-wide practices. (+/- 150 bps) (+/- 150 bps)
Slide 38: Financial Update
03 Financial Update CORPORATE PRESENTATION
Slide 39: Confirmed 2023 guidance: on track
CONFIRMED 2023 GUIDANCE : ON TRACK SOLTEC POWER HOLDINGS INDUSTRIAL EBITDA REVENUES EBITDA MG. €45 Mn €60 Mn €600 €700 6% 7% Mn Mn DEVELOPMENT EBITDA €25 Mn €35 Mn Greater seasonality of revenues in 2023 vs. 2022 ASSETS The demand for solar trackers will materialize in the second half of 2023 REVENU
Slide 40: FY 2022 key highlights
FY 2022 KEY HIGHLIGHTS RECORD REVENUES €568.2 Mn €32.6 Mn €13.1 Mn +64% +64% (2022-2021) +€40Mn +€14 Mn €346.5 Mn 4.7% SOLTEC INDUSTRIAL (€6.9 Mn) EBITDA MARGIN (€1.2 Mn) 2021 2022 2021 2022 2021 2022 372 MW ROTATED REVENUES ADJ. EBITDA NET PROFIT IN 2022 117 MW(1) 138 MW(2) NEW BUSINESS DIVISION IN
Slide 41: Q1 2023 financial update: Soltec Power Holdings
Q1 2023 FINANCIAL UPDATE SOLTEC POWER HOLDINGS(1) € Mn Q1 23 Q1 22 23 vs. 22 Revenues 76.8 97.9 (21.1) • Up to €100 Mn raised in 2023 to fund the growth of the development and asset management division. Adj. EBITDA(2) (4.6) (13.0) 8.5 Net Profit / (loss) (9.6) (15.5) 5.9 (1) Sum of Soltec Industrial
Slide 42: Q1 2023 financial update: Soltec Industrial
Q1 2023 FINANCIAL UPDATE SOLTEC INDUSTRIAL € Mn Q1 23 Q1 22 23 vs.22 • Good performance expected for the full year 2023 and guidance confirmed for the industrial division (second half loaded). Revenues 71.3 117.1 (45.8) • The evolution of the industrial division during the first quarter of the year
Slide 43: Q1 2023 financial update: Soltec Development
Q1 2023 FINANCIAL UPDATE SOLTEC DEVELOPMENT • Public support of European institutions (EU Green Deal) and US Market (IRA), € Mn Q1 23 Q1 22 23 vs.22 together with ESG and decarbonization targets, on the back of global renewable growth. Adj. EBITDA(1) (2.1) 2.1 (4.1) • Relevant quality pipeline of 14
Slide 44: Q1 2023 financial update: Soltec Assets
Q1 2023 FINANCIAL UPDATE SOLTEC ASSETS • High interest rates and resilient profile in the current macro environment. € Mn Q1 23 Q1 22 23 vs. 22 • Successful equity raise of €100 Mn in Q1 2023 from a Spanish fund. Revenues 3.0 - - • New capacity under operation in Brazil and Spain in Q1 2023: 225 MW
Slide 45: Business Plan 2022-2025
04 Business Plan 2022-2025 CORPORATE PRESENTATION
Slide 46: Soltec Power Holdings
SOLTEC POWER HOLDINGS REVENUES (€ MN) EBITDA (€ MN) €780 - €840 Mn €100 Mn - €120 Mn 14% 4% 54% CAGR CAGR 25% €568 Mn 32% 96% €33 Mn 98% 18% 43% 82% 2022 2025E 2022 2025E 6% EBITDA 13%-14% Margin Industrial Asset Management Industrial Project Development Asset Management 46
Slide 47: Industrial
INDUSTRIAL REVENUES (€ MN) EBITDA (€ MN) €750 - 800 Mn 11% 23% €45 -50 Mn CAGR CAGR €587 Mn €27 Mn 2022 2025E 2022 2025E EBITDA 5% Margin 6%-7% 47
Slide 48: Project Development
PROJECT DEVELOPMENT EBITDA (€ MN) €30 - 40 Mn 88% CAGR €6 Mn 2022 2025E • Project development generates EBITDA from asset rotation (to third parties or the asset management division) 48
Slide 49: Asset Management
ASSET MANAGEMENT REVENUES (€ MN) EBITDA (€ MN) €30 – 40 Mn €25 – 30 Mn 2022 2025E 2022 2025E EBITDA 75%-83% Margin • Recurring revenue streams from power generation 49
Slide 50: Net financial debt
NET FINANCIAL DEBT Expected financial structure for 2025 € 950 – 1,050 Mn € 200 – 300 Mn € 750-850 Mn Project debt (Non-recourse debt) c.75% Corporate debt (Recourse debt) c.25% GROSS CASH AND NET FINANCIAL DEBT OTHER EQUIVALENT FINANCIAL DEBT LIQUID ASSETS 50
Slide 51: Closing Remarks
04 Closing Remarks CORPORATE PRESENTATION
Slide 52: Closing remarks
CLOSING REMARKS GUIDANCE 2023 STRONG 230 MW UNDER CONFIRMED DEMAND OF OPERATION SOLAR €100 MN RAISED IN 2023 TO TRACKERS FUND THE GROWTH OF THE DEVELOPMENT AND ASSET MG H2 LOADED DUE TO SPANISH ELECTORAL 805 MW SIGNED IN JULY AND DIVISION CALENDAR AND IRA GUIDELINES IN USA AUGUST RECORD REVENUES FOR
Slide 53: Appendix
05 Appendix CORPORATE PRESENTATION
Slide 54: Stock overview
STOCK OVERVIEW SHARE PRICE PERFORMANCE 7,0 High (14/03/2023) Market Cap Price Close 6,5 €6.40 €350 Mn €4.02 6,0 Avg. Volume 90D Nº Shares 5,5 143k 91,386,717 5,0 4,5 Price (30/08/2023) IPO Price Avg. Price €4.02 €4.82 €6.0 4,0 3,5 Low (24/08/2023) High (01/07/21) Low (05/16/22) €3.97 3,0 €14.84 €3.4
Slide 55: Solar PV development cycle
SOLAR PV DEVELOPMENT CYCLE Project Development process in Spain Construction COD Envi. Urban RTB Asset Ownership Land Access Connection Environmental Point Studies Studies Permits 70% Debt-30% Equity Point presented granted Project Development process in Italy Construction COD STMG AU RTB Asset Owne
Slide 56: Thank you
THANK YOU
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