Slide 1: 2020 Nine-Months Results & Business Update
2020 Nine-Months Results & Business Update ANALYST CALL, 26.11.2020 1
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: Today's Agenda
TODAY’S AGENDA 1 COMPANY OVERVIEW 2 2020 Journey so far 3 Market Conditions 4 9M’20 Results 5 Strategic Review 6 Guidance 2020 3
Slide 4: Business Model & Portfolio
Business Model & Portfolio Pure-play German PV operator with 240 MW IPP assets, and 62 MW external management contracts CONSOLIDATED IPP ASSET MANAGEMENT PV ESTATE CASH FLOWS SYNERGIES TERMINAL VALUE Recurring fees from No land lease costs Acquire assets external investors Repowering potential for D
Slide 5: Business Model & Portfolio
Business Model & Portfolio HCI 1 Transfer of 15 MWp from Asset Management into consolidated IPP Portfolio as from 30.06.2020 IGLING BUCHLOE 5.8 MWp,FIT EUR 355/MWh NEUHAUS STETTEN 3.3 MWp, FIT EUR 355/MWh HCI 2 OBEROSTENDORF 2.5 MWp, FIT EUR 319/MWh DETTENHOFEN 3.3 MWp, FIT EUR 319/MWh 5
Slide 6: Business Model & Portfolio
Business Model & Portfolio Current IPP portfolio generates annual EBITDA (IFRS) of EUR 43 Mio. Portfolio characteristics LOCATIONS > 1 MW CAPACITY TARIFF YIELD REVENUES EBITDA IFRS MWp EUR/MWh kWh/kWp EUR Mio EUR Mio Freefield PV 145 205 1,000 29.8 26.3 Rooftop PV 89 232 886 18.3 15.8 Onshore wind 6
Slide 7: Financial Position
Financial Position Robust Financials: Equity Ratio > 30% and latest dividend EUR 0.11/share EBITDA EVOLUTION AND RETURN CASH FLOW PER SHARE AND EQUITY RATIO 0,70 35% 45,0 12,0% 30% 32% 10,2% 29% 40,0 9,5% 0,60 30% 9,6% 10,0% 25% 35,0 8,9% 23% 0,50 25% 7,6% 30,0 8,0% 18% 0,40 20% 25,0 5,4% 6,0% 0.60
Slide 8: Capacity and Market Cap
Capacity and Market Cap Track record of growth and capital appreciation 2018-20 2018 CAPITAL-INTENSIVE GROWTH UP TO ~150 MWP TO 220 MWP BY 2020 THROUGH ACQUISITION OF 250 250 DEVELOPER + 240 Capacity in MWp Market cap in EUR Mio 240 ALTERNATIVE 230 230 FINANCING 220 220 2016-17 210 GROWTH TO 115 MWP
Slide 9: The Relevance of Market Cap
The Relevance of Market Cap Strong money-flow momentum away from big oil into renewable energy Sector index performance “ Peer group” Market Cap in EUR Mio (X-axis) versus P/CF (Y-axis) 250 20,0 Energy index 18,0 200 Renewable Energy Index 16,0 150 14,0 12,0 100 10,0 8,0 50 6,0 4,0 - 2,0 Logarithmic
Slide 10: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 JOURNEY SO FAR 3 Market Conditions 4 9M’20 Results 5 Strategic Review 6 Guidance 2020 10
Slide 11: 2020 Journey so far
2020 Journey so far Capacity Objective of 220 MW by year-end 2020 reached during October 2020 SHARE PRICE 2020 KEY MILESTONES ATTAINED 4,10 1. Portfolio raised to 200 MWp 3,90 5 2. Announcement of record EBITDA (EUR 38.1 Mio.) in 2019 3,70 1 4 with dividend of 11ct/share 3,50 3 3,30 3. Q1’20 EBITDA
Slide 12: 2020 Journey so far
2020 Journey so far 50 MWp added to consolidated IPP portfolio on year-to-date basis GROWTH IN INSTALLED CAPACITY DURING 2020 (MWP) 7,6 5,2 2,3 14,9 10,0 0,7 2,5 240 4,4 0,3 0,7 1,3 225 1,5 0,7 0,6 0,7 0,5 0,6 190 12
Slide 13: 2020 Journey so far
2020 Journey so far PV Estate expanded further to 156 ha (accomodating 64 MWp real capacity) Land ownership Real estate Region Land size (ha) MWp installed MWp not owned Acquisition date Sandersdorf Conversion land Sachsen Anhalt 9.7 5.1 Zerre Conversion land Sachsen 28.5 8.0 5.5 Hausen Logistics ha
Slide 14: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 MARKET CONDITIONS 4 9M’20 Results 5 Strategic Review 6 Guidance 2020 14
Slide 15: Market conditions
Market conditions PV Capacity exceeded the previous 52 GWp cap, nuclear exit continues PRODUCTION CAPACITY IN GERMANY (IN GW) 52,7 40,7 42,3 45,2 49,2 39,2 37,9 36,7 18,0 33,0 10,6 25,3 15
Slide 16: Market conditions
Market conditions PV and wind gain strength at the expense of coal in Germany’s 9M’20 production mix BREAKDOWN BY SOURCE IN TWH MANAGEMENT COMMENT 100,0 92,6 9M '20 9M '19 80,0 ▪ Net PV output in Germany rose by 8% to 45.9 TWh, mainly 54,7 reflecting growth in installed capacity to 52.7 GWp (+7%) 60
Slide 17: Market conditions
Market conditions The effects of CoVid-19: consumption down by 4% in the first nine-months to 383 TWh ELECTRICITY CONSUMPTION IN GERMANY IN TWH 55 50 -4% 45 +3% -3% -3% -2% 40 -5% -12% -5% -10% 35 LOCKDOWN EFFECT 30 25 Jan Feb Mrt Apr Mei Jun Jul Aug Sep Okt Nov Dec 2020 2019 17
Slide 18: Market conditions
Market conditions … lower power prices GERMAN ELECTRICITY PRICE IN EURO/MWH MANAGEMENT COMMENT ▪ Average spot price came down from EUR 38/MWh in 2019 to EUR 29/MWh in 2020 as a result of a drop in consumption and the global commodity crisis leading to a coal-to-gas switch. ▪ Since the end of the loc
Slide 19: Market conditions
Market conditions … even negative prices NUMBER OF HOURS WITH NEGATIVE PRICES UNDER § 51 EEG 2017 MANAGEMENT COMMENT ▪ §51 EEG 2017: When day-ahead spot prices turn negative 75 2.5% of the entire period in 9M’20 subject to six consecutive hours of for six consecutive hours, then the tariffs for park
Slide 20: Output conditions
Output conditions 2.9% higher irradiation in 9M’20 versus last year, well above the “normal” GLOBAL HORIZONTAL IRRADIATION IN GERMANY (DWD) kWh/m² jan feb mar apr may jun jul aug sep oct nov dec 9M Year 2020 24 37 95 163 171 163 171 145 109 48 1,078 + 2.9% versus 2019 2019 21 52 75 138 146 200 170 1
Slide 21: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 9M’20 RESULTS 5 Strategic Review 6 Guidance 2020 21
Slide 22: Electricity Production
Electricity Production Our IPP installations produced 198 GWh (+33%) or 957 operating hours OUTPUT IPP PORTFOLIO 300 1000 MANAGEMENT COMMENT 957 949 923 950 250 924 884 ▪ Total production during the first nine-months including wind 900 865 205 energy and including HCI 1 / HCI 2 as from the start of
Slide 23: Power Sales
Power Sales 18% increase in Power Sales to EUR 43,6 Mio YEAR-ON-YEAR GROWTH IN POWER SALES MANAGEMENT COMMENT +21% +4% +18% ▪ Power sales from the IPP portfolio rose to EUR 43,6 Mio in 250 350 9M’20 (+18%) on the back of higher production (+33%). The 317 over-proportional level of new-build installa
Slide 24: Short P&L and Balance Sheet
Short P&L and Balance Sheet EBITDA +13% to EUR 39,7 Mio. boosted by power sales and first-time consolidation of HCI1 and HCI2 CONSOLIDATED P&L UNTIL THE EBITDA LINE HCI 1 + HCI 2 EUR Mio. 9M `20 9M´20 9M `19 COMMENT Revenues 44.9 1.8 37.6 _ Power sales 43.6 1.8 37.0 Effect of production growth _ oth
Slide 25: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 9M’20 Results 5 STRATEGIC REVIEW 6 Guidance 2020 25
Slide 26: Targets for 2020 achieved
Targets for 2020 achieved Growth target has been surpassed, two funds consolidated GROWTH INTEGRATION FURTHER STEPS 220 MW at year-end 2020 Connect 6 MW of 2019 projects Court case initiated to recover “already at 240 MW” “0,9 MW still not connected: losses, management anticipates Langelsheim and Al
Slide 27: Target 2023: At least 500 MWp, stronger IPP
Target 2023: At least 500 MWp, stronger IPP Principles unchanged, decision to enter Belgium and goal to lift IPP to 400 MWp POTENTIAL POOL OF LARGER SCALE ACQUISITIONS & DEVELOPMENT CONSOLIDATION: 15 GWp existing PV installations > 1 MWp in Germany NEW-BUILD: New government target indicated at 98 GW
Slide 28: Target 2023: At least 500 MWp, stronger IPP
Target 2023: At least 500 MWp, stronger IPP Expansion Objectives per year CAPACITY TARGET UNTIL 2023 MANAGEMENT COMMENT > 500 MWp ▪ IPP in Belgium to grow from current 4 MWp to > 50 MWp by 2023. A new-build project of 6 MWp at the Seaport of Ghent 100 is about to start construction and will be grid-
Slide 29: Entry in Belgium
Entry in Belgium Why we focus on Belgium as our second market: (1) development potential available … CO2 PENALTIES LOOMING POTENTIAL TO SCALE UP NEED FOR UTILITY SCALE INVESTMENTS UNDERUTILISATION OF LARGE ROOFS & LAND Available sites in Flanders hectar Residential Roofs 38,000 Large roofs 27,000 Al
Slide 30: Entry in Belgium
Entry in Belgium … (2) at the right remuneration NEW: TENDER FOR A 10 YEAR CERTIFICATE ON-SITE AUTO-CONSUMPTION PRICING FOR PROJECTS < 2 MW ATTRACTIVE PPA MARKET TO END-USERS COMPARABLE TO FFAV-SCHEME IN GERMANY INDUSTRIAL END-USER PRICE EUR/MWH 93 BANDING FACTOR FOR PROJECTS > 2 MW 86 89 80 81 82 7
Slide 31: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 9M’20 Results 5 Strategic Review 6 GUIDANCE 2020 31
Slide 32: Guidance 2020
Guidance 2020 EBITDA Guidance lifted from EUR 39.2 Mio. To EUR 41.0 Mio PROGNOSIS 2020 GUIDANCE 2020 GUIDANCE 2020 GUIDANCE 2020 In Mio EUR Apr-20 AFTER Q1’20 AFTER H1'20 AFTER 9M’20 Revenues 43.0 48.3 49.5 EBITDA 36.0 at least 37.0 39.2 41.0 Minus lease payments -1.0 -1.1 -1.3 Minus cash interest p
Slide 33: 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 33