7c Solarparken Ag · XETR:HRPK
7c Solarparken — H1 2022 Earnings Presentation
37 slides from 7c Solarparken's earnings presentation, Sep 22, 2022
Slide 1: H1 2022 Results & Annual Outlook
H1 2022 Results & Annual Outlook 22 SEPTEMBER 2022 VIRTUAL PRESENTATION Steven De Proost. CEO – Koen Boriau. CFO
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 MARKET CONTEXT 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 366 MWp, EBITDA ca. EUR 52 Mio
IPP PORTFOLIO Existing Assets 366 MWp. EBITDA ca. EUR 52 Mio (*) MWp GWh kWh/kWp EUR/MWh in EUR Mio in EUR Mio Capacity Production Yield FIT Sales EBITDA LOCATION OF GERMAN PARKS > 2 MWP Germ any 331 332 1.002 170 56 48 Freefield 240 243 1.011 158 38 32 Rooftop 85 75 882 227 17 14 Wind 6 14 2.350 87
Slide 6: IPP Portfolio: Breakdown of 366 MWp by Tariff and Year of Commissioning
IPP PORTFOLIO Breakdown of 366 MWp by Tariff and Year of Commissioning COMMISSIONING YEAR AND AVERAGE FEED-IN TARIFF (EUR/MWH) PER YEAR PARKS WITH HIGH EBITDA PARKS WITH POWER PRICE OPTION VALUE 60 450 406 402 400 50 50 378 371 350 42 HEDGE 40 306 300 268 29 31 250 Out of the additions realised in 2
Slide 7: Germany Capture Price reflecting FIT, Hedge Instrument and EU Price Cap
GERMANY Capture Price reflecting FIT. The Hedge Instrument and the EU Price Cap (*) MARKET PRICE VERSUS CAPTURE PRICE EEG PRICING MECHANISM 450 250 Example: Fixed FIT = EUR 103/MWh EU Price Cap Unhedged Hedged 400 200 Average capture Price EUR/MWh 350 300 150 250 200 100 150 100 50 50 - - - 40 90 14
Slide 8: Belgium On-Site PPA Model: End-User Price and Self-Consumption
BELGIUM ON-SITE PPA MODEL End-User Price and Self-Consumption END-USER PRICES FOR INDUSTRY IN EUR/MWH 15 MINUTES VALUES CONSUMPTION AND PRODUCTION IN KW 1.600 1.600 200 1.400 1.400 EXCESS PRODUCTION 150 1.200 sold at spot market 1.200 1.000 1.000 100 800 800 50 600 600 400 400 - 500 MWh 1 GWh 2.5 GW
Slide 9: Financial Profile: Steady EBITDA Growth and Equity Ratio 39%
FINANCIAL PROFILE Steady EBITDA Growth and Equity Ratio 39% EBITDA AND EBITDA RETURN (EBITDA/TOTAL ASSETS) EQUITY RATIO AND CASH FLOW PER SHARE 70 12,0% 40% 0,65 60 35% 0,60 10,0% 0,55 50 30% 8,0% 0,50 25% 40 0,45 48,6 42,9 6,0% 20% 30 38,1 0,60 0,57 0,40 0,55 0,56 15% 35,1 4,0% 0,49 0,35 20 0,45 29
Slide 10: Valuation: Market Cap versus Installed Capacity
VALUATION Market Cap versus Installed Capacity MWP VERSUS MARKET CAP P/CF VERSUS MARKET CAP EUR MIO. (LOGARITHMIC SCALE) 450 16 400 15 350 14 13 300 12 250 11 10 200 9 150 8 7 100 6 50 5 4 - 3 1/01/15 1/01/16 1/01/17 1/01/18 1/01/19 1/01/20 1/01/21 1/01/22 50 500 1.000 5.000 Capacity in MWp Market c
Slide 11: Agenda
AGENDA COMPANY OVERVIEW MARKET CHARTS H1 RESULTS MARKET CONTEXT ANNUAL OUTLOOK AGENDA 11
Slide 12: Production Mix H1 2022: Less Nuclear, less Gas, more PV & Wind
PRODUCTION MIX H1 2022 Less Nuclear, less Gas, more PV & Wind H1 2022 ELECTRICITY PRODUCTION GERMANY RENEWABLES > 50% IN THE GENERATION MIX (MONTHLY DATA) NET GENERATION TWH 2022 H1 2021 H1 % Total market 252 249 1% Nuclear 16 32 -51% Lignite 51 47 8% Hard coal 27 19 42% Natural Gas 26 30 -14% Other
Slide 13: Weather Conditions: As from March too hot, too dry, very sunny
WEATHER CONDITIONS As from March too hot, too dry, very sunny SUNSHINE (HOURS) VERSUS LONG-TERM TEMPERATURE (°C) VERSUS LONG-TERM RAINFALL (LITER/M²) VERSUS LONG-TERM 13
Slide 14: Specific PV Output: Very sunny H1'22
SPECIFIC PV OUTPUT Very sunny H1’22 +7% vs. long-term Average, even +11% vs H1’21 KWH/KWP IN GERMANY kWh/kWp Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 YEAR 2011 21 41 101 132 147 122 112 116 100 75 41 15 564 1.023 2012 26 47 93 100 138 118 125 130 96 62 27 15 522 977 2013 12 25 74 98 103 12
Slide 15: 3.2 GWp New-Build in H1'22
3.2 GWP NEW-BUILD IN H1’22 Total PV Capacity rose to 62.5 GWp NEW PV INSTALLATIONS IN THE PERIOD JAN-JUN (MWP) NEW PV INSTALLATIONS LAST TWELVE MONTHS (MWP) 8.000 800 7.000 700 6.000 600 5.000 500 4.000 400 3.000 300 2.000 200 1.000 100 - 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 jan
Slide 16: Feed-in Tariff & Corporate PPA
FEED-IN TARIFF & CORPORATE PPA PV Attractiveness boosted by Market Prices REMUNERATION SCHEME PER FIT CATEGORY IN EUR/MWH 10Y PPA TRACKER GERMANY EUR/MWH (ENERVIS) Feed-in Tariff (serves as floor) = Market Price PV + Market Premium > 0 16
Slide 17: Agenda
AGENDA COMPANY OVERVIEW MARKET CHARTS H1 RESULTS MARKET CONTEXT ANNUAL OUTLOOK AGENDA 17
Slide 18: Capacity Growth: 26 MWp added so far during 2022
CAPACITY GROWTH 26 MWp added so far during 2022 ADDITIONS TO IPP PORTFOLIO IN 2022 (YEAR-TO-DATE) Country MWP Area Type kWh/kWp IBN Grid Peenemunde Germany 7.8 Freefield acquisition PV park 1,000 Q2 22 Q4 22 Salzwedel Floating extension Germany 1.8 Floating extension of PV plant 975 Q3 22 Traitschin
Slide 19: Capacity Growth: 26 MWp added so far during 2022
CAPACITY GROWTH 26 MWp added so far during 2022 ADDITIONS TO IPP PORTFOLIO IN 2022 (YEAR-TO-DATE) PEENEMUNDE 7.8 MWP OUDENAARDE 2.3 MWP TRAITSCHING 9.9 MWP OOSTVOGELS 2.6 MWP LUCKX SAINTES 0.3 MWP GB BEERNEM 0.1 MWP 19
Slide 20: KPI's: 30% Increase in Power Production to 189 GWh
KPI’S 30% Increase in Power Production to 189 GWh ANNUAL/QUARTERLY ADDITIONS IN MWP 2022 H1 2021 H1 % COMMENT Solar + Wind in GWh 189 145 30% - Operating hours solar (kWh/kWp) 551 510 8% Sunny H1’22 versus cloudy 2021 Operating hours wind 1,170 1,055 11% Compared to very poor H1‘21 Operating hours s
Slide 21: P&L: EBITDA +52% driven by GWh and Capture Price
P&L EBITDA +52% driven by GWh and Capture Price. Net Profit more than doubling In Mio EUR 2022 H1 2021 H1 % COMMENT Revenues 43.7 28.8 52% o/w power sales 43.2 28.3 Capture Price (+17%) x GWh (+30%) Other income 0.6 1.0 Mainly insurance compensation Opex -5.7 -4.2 Capacity-related, inflation (direct
Slide 22: Balance Sheet: Equity Ratio remains at a strong 39%
BALANCE SHEET Equity Ratio remains at a strong 39% In Mio EUR 2022 H1 31.12.2021 2021 H1 COMMENT ASSETS 545,4 507.9 478.4 Land & Property 12.9 12.9 11.9 PV Estate Right of use assets 38.1 26.3 31.4 IFRS 16 Solar and windparks 362.8 377.6 349.1 Financial Investments 1.1 1.1 1.0 Inventory 1.1 2.0 2.7
Slide 23: Cash Flow: CFPS at Record Level
CASH FLOW CFPS at Record Level EVOLUTION CFPS SINCE 2015 In Mio EUR H1 2022 H1 2021 EBITDA 38.7 25.5 Lease paid -1.0 -0.7 0,28 0,23 0,22 0,26 Cash interest paid -2.7 -3.2 0,21 0,20 0,18 Cash taxes paid -0.7 -0.7 Net Cash Flow 34.3 20.9 0,45 0,32 0,33 0,34 Number of shares. weighted Mio 76.4 69.3 0,2
Slide 24: Risk on H1'22 Figures: Retro-active Price Cap proposed by EC
RISK ON H1’22 FIGURES Subject to retro-active Price Cap as proposed by EC WHAT THE EUROPEAN COMMISSION PROPOSED ON 14.SEP.2022 RELATED TO A PRICE CAP ▪ RETRO-ACTIVE: “Approach to recover excess revenues from renewables, nuclear and lignite producers by setting an ex-post cap on revenues per MWh of e
Slide 25: Risk on H1'22 Figures: Spot Prices Jan-Jun 2022
RISK ON H1’22 FIGURES Subject to retro-active Price Cap as proposed by EC SPOT PRICES JAN-JUN 2022 (HOURLY VALUES) 600 500 400 300 200 100 - -100 -200 EPEX Spot > EUR 180/MWh Cap @ EUR 180/MWh 25
Slide 26: Risk on H1'22 Figures: Impact of Proposed Price Cap
RISK ON H1’22 FIGURES Subject to retro-active Price Cap as proposed by EC IMPACT ON H1’22 FIGURES IN CASE OF THE PROPOSED SCENARIO (AS FROM JANUARY 2022) Market Price EUR/MWh at Price Cap EUR/MWh Impact on H1'22 month EPEX Spot PV Value Capture Price EPEX Spot PV Value Capture Price Capture Price GW
Slide 27: Agenda
AGENDA COMPANY OVERVIEW MARKET CHARTS H1 RESULTS MARKET CONTEXT ANNUAL OUTLOOK AGENDA 27
Slide 28: Energy Transition: EEG 2023 with Ambitions of CO2 Neutrality
ENERGY TRANSITION EEG 2023 with Ambitions of CO2 Neutrality OBJECTIVE INSTRUMENTS Renewable Energy From <50% in 2021 to 80% by 2030 (or 600 TWH) Grid expansion, designated sites for renewables Wind offshore From 7.8 GW to 30 GW by 2030 Less administrative hurdles Wind onshore From 56 GW to 115 GW by
Slide 29: Energy Prices: Disproportional European Gas Price
ENERGY PRICES It’s all about the disproportional “European” Gas Price BRENT OIL USD/B NATURAL GAS RESERVES EUROPE 100 80 60 40 20 0 jan feb mrt apr mei jun jul aug sep okt nov dec 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HISTORICAL EUROPEAN GAS PRICE EUR/MWH HISTORICAL US HENRY HUB GAS PRIC
Slide 30: Supply / Demand Curve
SUPPLY / DEMAND CURVE 70-80 GW Peak Demand during Weekdays SUPPLY/DEMAND WINTER IN GW SUPPLY/DEMAND SUMMER IN GW 30
Slide 31: CCGT's Set the Power Price
CCGT’S SET THE POWER PRICE The Merit Order is in Demand for more Renewables CAPACITY GW (X) VERSUS MARGINAL COST EUR/MWH (Y) IN GERMANY (COMPARISON Q4’21 – Q4’22) EUR/MWH 500 475 450 425 400 Clearing price for all generators (WINTER) 375 350 PEAK DEMAND 325 WINTER 300 275 Clearing price for all gene
Slide 32: Long-Term: Targeting EUR 80-100/MWh as Sustainable PV Market Price
LONG-TERM Targeting EUR 80-100/MWh as sustainable PV Market Price CALCULATION OF LONG-TERM POWER PRICE EUROPEAN GAS PRICE OUTLOOK EUR/MWH (BRAINPOOL ENERGY) Forward Curve Forecast 2023 2024 2025 2030 2040 2050 Gas Price 200 120 75 35 25 35 Carbon EUR/t 80 80 80 80 120 150 CCGT Efficiency 60% 60% 60%
Slide 33: Agenda
AGENDA COMPANY OVERVIEW MARKET CHARTS H1 RESULTS MARKET CONTEXT ANNUAL OUTLOOK AGENDA 33
Slide 34: Immediate Pipeline 2022: Target ~400 MWp at year-end
IMMEDIATE PIPELINE 2022 Target to reach ~ 400 MWp at year-end 2022 PROJECTS READY TO BUILD IN Q4’22 Project Type MWp kWh/kWp EUR/MWh Status GERMANY 21.1 W*** Freefield 9.9 1 025 FFAV currently in acquisition Burgwindheim II Freefield 9.9 1 050 PPA extension of existing farm, ready to build Pflugdorf
Slide 35: Market Value PV at Record Levels in Q3'22
MARKET VALUE PV At record levels in Q3’22, assuming EUR 360/MWh for H2’22 REALISED AND ASSUMED PV MARKET PRICES Forward Price as from Sep ‘22 & implied PV value 700 600 550 525 500 399 400 380 340 300 261 207 178 189 200 146 151 119 100 - jan/22 feb/22 mrt/22 apr/22 mei/22 jun/22 jul/22 aug/22 sep/2
Slide 36: EBITDA & CFPS Guidance Slightly Up
EBITDA & CFPS GUIDANCE SLIGHTLY UP Price Cap was already included in Guidance NEW GUIDANCE FOR 2022 New Previous H1'22 Price Cap H1 effect H2'22 Forecast 2022 2022 MWp weighted 337 342 339 339 GWh 189 154 343 > 333 kWh/kWp 562 450 1.012 > 981 Average PV price EUR/MWh 165 360 250 > 155 Capture Price
Slide 37: 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 37