Holaluz Clidom SA · BME:HLZ
Holaluz Clidom SA — Holaluz — H1 2023 Earnings Presentation
30 slides from Holaluz Clidom SA's earnings presentation, Oct 31, 2023
Slide 1: The Rooftop Revolution
The Rooftop Revolution H1-2023 results and Q3 update October 31st, 2023
Slide 2: Forward looking statements
Forward looking statements This communication contains forward-looking statements related to Holaluz (the “Company”) These data do not represent estimates within the meaning of Commission Delegated Regulation (Eu) No. 2019/979 or No. 2019/980. Such forward-looking statements include, but are not lim
Slide 3: Success is about the difference you make in people's lives
"Success is about the difference you make in people's lives.” Michelle Obama 3
Slide 4: Agenda
Agenda Executive Summary Solar deep-dive Energy Management deep-dive Consolidated deep-dive Merket guidance and company outlook 4
Slide 5: Executive summary
Executive summary 1 Despite the challenging environmental conditions in that led solar market in Spain to drop by 25 - 50%, Holaluz expects to meet its 2023 low-end guidance in solar contracts under management and consolidated normalized EBITDA. 2 Holaluz has undertaken a very strong focus on operat
Slide 6: Agenda
Agenda Executive Summary Solar deep-dive Energy Management deep-dive Consolidated deep-dive Market guidance and company outlook 6
Slide 7: Executive summary – Solar
Executive summary – Solar 1 Holaluz is consolidated at 280+ monthly Solar sales and expects to close the year with a comparable number of installations vs 2022, in a very complex 2023 where the market for residential Solar installations in Spain is decreasing by 25 - 50% given the high decrease in e
Slide 8: Solar gross margin growing quarter on quarter
Holaluz is growing Gross Margin quarter on quarter due to an increase in average installation size, flexible assets penetration and COGS optimization initiatives Strong Solar GM Q/Q increase associated to the following three main Solar Gross Profit, % revenue factors: Installations, k xx Gross Profi
Slide 9: Diversification of lead acquisition channels reduces acquisition costs by 44%
Diversification of lead acquisition channels has enabled Holaluz to reduce lead acquisition costs by 44% between Q1 and Q3 Sales xx Unitary acq. Cost Channel 1 Channel 2 Other channels Digital • Holaluz has been focused Unitary lead acquisition on diversifying lead Investment (€) -44% cost (€/sale)
Slide 10: Value proposition: 75% of customers achieving 70%+ guaranteed savings
▪ Holaluz is focused on generating Holaluz Value Proposition is unrivaled, with 75% of long-term and end-to-end customers achieving 70%+ guaranteed savings relationships with its customers after Solar installation ▪ Holaluz clients get: ▪ Solar installation delivered in Savings achieved by Holaluz S
Slide 11: Solar installations in Spain: exponential trend, market underpenetrated
Solar installations in Spain have followed an exponential trend in the past 4 years while Key takeaways market is vastly underpenetrated at only 3% The residential solar DG market in Spain has Residential solar installations in Spain ’19 – ’23 gone through an exponential growth curve over the last 4
Slide 12: Solar – H1 P&L
We keep on bootstrapping our Solar business with the proceeds from Solar – H1 P&L Energy Management and adapting our operating costs to our levels of sales H1-2023 key figures – Solar H1-2023 Q3-20231 H1-2022 1 Revenue: €13.7M: €3.6M increase vs H122 (+35,6%) due to higher Average Selling Price Key
Slide 13: Agenda
Agenda Executive Summary Solar deep-dive Energy Management deep-dive Consolidated deep-dive Merket guidance and company outlook 13
Slide 14: Executive summary – Energy Management
Executive summary – Energy Management 1 Strong Gross Profit in Q2 and Q3 building on the success of our Tarifa Justa product, leaving behind the challenges in Q1. We expect to close the year in with record Gross Margin figures. Since 2018 we have experienced better NPS, lower cost to serve and lower
Slide 15: Record Gross Margin in Q2 and Q3 with Tarifa Justa
Holaluz achieved a record Gross Margin in Q2 and Strong EM Gross Profit in Q2 and Q3 building on the success of Tarifa Justa product Q3 building on the success of EM Gross Profit, % revenue our Tarifa Justa product. Also H1 GP ex.gas, M€ xx Gross Profit, M€ xx expected for Q4 Gross Profit H1-23: €21
Slide 16: Improved unit economics from move to Tarifa Justa
Strong improvements in unit economics resulting from the move of our portfolio to Tarifa Justa and a significant reduction in operating costs EM Direct costs, M€ % savings xx% Move to Tarifa Justa has generated 45% in-year H1 2022, M€ H1 2023, M€ Cost savings, M€ savings vs. H1 2022 in direct costs
Slide 17: EM – H1 P&L
We keep on materializing the unit economics benefits from our portfolio EM – H1 P&L change to Tarifa Justa H1-2023 key figures – Energy Management Revenues: €143.1M Low prices environment 1 (vs skyrocketing prices in 2022: €204.4 H1-2023 Q3-20231 H1-2022 €/MWh avg vs €91,5 €/MWh for 2023) + Key P&L
Slide 18: EM – H1 P&L
We keep on materializing the unit economics benefits from our portfolio EM – H1 P&L change to Tarifa Justa Norm. Op. Costs: €-18.5M H1-2023 key figures – Energy Management Main Costs: bad debt (6€M), call center (2 H1-2023 Q3-20231 H1-2022 3 €M), direct personnel cost (2 €M). Very strong focus on op
Slide 19: Agenda
Agenda Executive Summary Solar deep-dive Energy Management deep-dive Consolidated deep-dive Merket guidance and company outlook 19
Slide 20: Consolidated – H1 P&L
1 Revenues: €156.8M: EM: Low prices environment + lower Consolidated – H1 P&L consumption at the beginning of the year (warm winter) for EM. TJ migration effects >Q2. Solar: + 35.6% revenue increase in Solar business (vs H122: higher ASP resulting from an increase in size and higher flexible assets
Slide 21: Consolidated balance sheet (1/2)
Fixed Assets: €35M (€33.7M intangible + 1 €2M tangible): Int. assets investment Holaluz financials: consolidated balance amounting €5.8M to optimize Solar operations and processes and sheet (1/2) automatizing EM business with new tools and developments. €m 2 Long-term financial investments: €9.6M: o
Slide 22: Consolidated balance sheet (2/2)
Holaluz financials: consolidated balance sheet (2/2) 1 Net Equity: €9.0M: i) €21.8M€ Own Funds + €m ii) €-12.8M MtM Adjusts. acc. to Spanish At year end we expect Net Equity to be in normalised GAAP the range of +12M to 15M thanks to adjustments in the MtM. 30.06.23 31.12.22 30.06.23 31.12.22 Net eq
Slide 23: Adjusted net debt position
Net Financial Debt: €66.9M Holaluz financials: adjusted net debt €12.2M increase vs FY22. The Parent position Company has continued funding the solar business and fostering its growth and €m scalability to create a long-term value in both businesses, energy management and solar, that feed back into
Slide 24: Customer-centric and impact-driven business model
Holaluz continues expanding its customer-centric and impact-driven business model Four-star scoring in Tesla chooses Holaluz to Holaluz obtains the Trustpilot install Powerwall EcoVadis Gold Medal for home batteries in Spain its sustainability impact Holaluz has achieved a 4-star Holaluz announced o
Slide 25: Agenda
Agenda Executive Summary Solar deep-dive Energy Management deep-dive Consolidated deep-dive Market guidance and company outlook 25
Slide 26: Building the most impactful green energy community in Europe
We are building the most impactful green energy community in Europe Unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage To From Centralized oligopoly, polluting and Decentralized network of decarbonized, with very expensive T&D costs democratized and
Slide 27: Guidance update for FY2023 – FY2025
Guidance update for FY2023 – FY2025 Executive summary Despite the challenging 2023 2024 2025 environmental conditions in that Solar led solar market in Spain to drop Installations (#) 2,900 – 3,200 3,800 – 4,200 6,200 – 6,700 by 25 - 50%, Holaluz expects to meet its 2023 low-end guidance Revenue (m€
Slide 28: Main guidance changes relative to last update
Main guidance changes relative to last update 1 Meeting the low guidance in 2023 consolidated normalized EBITDA: • We consider a 6 / 8 €M lower normalized EBITDA in Solar driven by a 2.100-3.800 decrease in number of installations relative to previous guidance in light of a challenging residential s
Slide 29: Prepared for 2024: building the largest green energy community in Europe
We are prepared for a very exciting 2024 where we will continue building the largest green energy community in Europe 1 Unleashing the power of Distributed Generation • Holaluz will work to ensure collective self-consumption takes off at scale to facilitate the production and consumption of 100% gre
Slide 30: The best way to predict the future is to create it
”The best way to predict the future is to create it.” Peter Drucker 30