Solaria Energia y Medio Ambiente, S.A. · BME:SLR

Solaria Energia y Medio Ambiente — H1 2021 Earnings Presentation

26 slides from Solaria Energia y Medio Ambiente's earnings presentation, Sep 29, 2021

  1. Slide 1: H1 2021 Results

    18000 5175 6200 2150 3150 4150 H1 2021 RESULTS September 29, 2021

  2. Slide 2: Solaria is a unique growth platform in Europe – Impressive start of the year

    Solaria is a unique growth platform in Europe – Impressive start of the year 18000 5175 6200 2150 3150 4150 IMPRESSIVE START OF THE YEAR MARKED BY COVID NORMALIZATION HIGHLY Solar PV is the solution PROFITABLE To rationalize electricity price in Europe and meet EU targets >12% project IRR Temporary

  3. Slide 3: Solar PV is the solution – To rationalize electricity price in Europe and meet EU targets

    Solar PV is the solution – To rationalize electricity price in Europe and meet EU targets 18000 5175 6200 2150 3150 4150 Power Prices boosted by huge increase in Gas and CO2 prices CO2 1-year forward (€/tonne) European Green Deal Electricity Prices in Spain and Portugal (€/MWh) Renewable electricity

  4. Slide 4: Solar PV is the solution – Temporary inflation is not a threat to Solaria’s profitability

    Solar PV is the solution – Temporary inflation is not a threat to Solaria’s profitability 18000 5175 6200 2150 3150 4150 Spot and forward prices are driving up PPA prices 170 107.22 10Y PPA captured price 130.15 89 +10% 71 73 36 94.5 30% merchant 47.47 51.45 42.33 exposure 33 End 2020 End 1H21 End J

  5. Slide 5: Solar PV is the solution – New Spanish regulation is not a threat to Solaria’s profitability

    Solar PV is the solution – New Spanish regulation is not a threat to Solaria’s profitability 18000 5175 6200 2150 3150 4150 New Spanish RDL 17/2021 1 Published on September 15 – In force since September 16 2 MEASURES Generation tax suspension Clawback Regulated assets (285MW) Not affected Suspension

  6. Slide 6: Outstanding earnings – Excellent operational performance

    Outstanding earnings – Excellent operational performance 18000 5175 6200 2150 3150 4150 Production In line with the commissioning of new H1 2021 H1 2020 % chg. installations, energy production doubled from 195.8GWh to 430GWh in the first half Production (GWh) 430 195.8 +120% of the year. Net sales (

  7. Slide 7: Outstanding earnings – Robust cash generation

    Outstanding earnings– Robust cash generation 18000 5175 6200 2150 3150 4150 Ebitda doubles revenues growth due to H1 2021 (€mn) H1 2020 (€mn) % chg. strict control of opex. Total revenues 49.5 28.6 +73% Profit before tax amounted to €25.7mn, a threefold increase reflecting EBITDA 42.5 22.4 +89% the

  8. Slide 8: Increasing visibility of installation targets – New 1.5GW pipeline to feed 2030 18GW target

    Increasing visibility of installation targets – New 1.5GW pipeline to feed 2030 18GW target 18000 5175 6200 2150 3150 4150 +1033MW +500MW Requested in July CASTILE AND LEÓN 427MW Great acceleration in Italy Reinforcing local team in Lombardia –Veneto, Lazio and Sicilia regions. >1GW of opportunities

  9. Slide 9: Increasing visibility of installation targets – 12.6 GW pipeline in Spain

    Increasing visibility of installation targets – 12.6 GW pipeline in Spain to feed 2030 18000 18GW target 2150 3150 4150 5175 6200 Pipeline 12.615MW

  10. Slide 10: Increasing visibility of installation targets – 1.65 GW pipeline in Italy and Portugal

    Increasing visibility of installation targets – 1.65 GW pipeline in Italy and Portugal to feed 18000 2030 18GW target 2150 3150 4150 5175 6200 0.44GW Portugal Three projects under development Casal da Valeira: 200 MW Vale Pequeno: 200 MW CSF Vale da Pedra: 40 MW Chamusca, Santarém Chamusca, Santarém

  11. Slide 11: Increasing visibility of installation targets – Clear visibility on February 2022 target

    Increasing visibility of installation targets – Clear visibility on February 2022 target 18000 5175 6200 2150 3150 4150 Project status MW Installed 825 +60% vs. End 2020 Under construction + 1,133 Cifuentes-Trillo (626MW) + Toros (130MW) projects = 70% Installed and under construction = 1,958 = 91%

  12. Slide 12: Clear visibility on February 2022 target – Trillo-Cifuentes 626MW

    Increasing visibility of installation targets – Clear visibility on February 2022 target 18000 6200 TRILLO-CIFUENTES 626MW under construction 2150 3150 4150 5175 Budia 338MW REE to finish the 300MW in connection administrative infrastructure by authorizations already granted March 2022 Telesto Solar

  13. Slide 13: Clear visibility on February 2022 target – Toro 130MW

    Increasing visibility of installation targets – Clear visibility on February 2022 target 18000 6200 TORO 130MW under construction 2150 3150 4150 5175 TORO PROJECT DELPHINUS Three plants - 130MW under 50MW construction fully permitted DRACO Toro 50MW REE to finish connection infrastructure by April 2

  14. Slide 14: Trillo-Cifuentes & Toro under construction

    Increasing visibility of installation targets – Clear visibility on February 2022 target 18000 6200 TRILLO-CIFUENTES & TORO under construction 2150 3150 4150 5175

  15. Slide 15: Clear visibility on 2022 and 2023 targets

    Increasing visibility of installation targets – Clear visibility on 2022 and 2023 targets 18000 5175 6200 2150 3150 4150 Project status MW Green Flag Installed and under construction = 1,958 Public exposure = 4,508MW 3-12 months to reach green flag for construction >2550 >2024 Target Pegaso, Scorpiu

  16. Slide 16: Healthy growth – Efficient debt and cash management

    Healthy growth – Efficient debt and cash management 18000 5175 6200 2150 3150 4150 Healthy debt structure Generating cash 15% 10% Fixed Corporate Variable Project 85% 90% Sharp reduction in cost of debt 4.0% 3.8% 2.9% 2.5% FY19 FY20 Today Est. FY 2021

  17. Slide 17: Healthy growth – Debt optimization via refinancing

    Healthy growth– Debt optimization via refinancing 18000 5175 6200 2150 3150 4150 365MW REFINANCING To be closed by end of year NOW AFTER Structure Project Finance Project Bond 255MW 110MW Debt lifetime 15 24 2017 Spanish auction Repsol PPA Still 24Y regulatory life Still 5Y Interest rate >2.3% <2% 8

  18. Slide 18: Healthy growth – PPAs, yes but not at any price

    Healthy growth – PPAs, YES but not at any price 18000 5175 6200 2150 3150 4150 New PPA signings on hold 1. Need to reevaluate prices considering surge in spot and forward prices 2. New Spanish auction in October 3.3GW new Spanish public PPA auction on October 14 1.3GW for Solar PV 700MW for assets o

  19. Slide 19: Improving ESG commitments – Meeting ESG targets

    Improving ESG commitments – Meeting ESG targets 18000 5175 6200 2150 3150 4150 DECARBONIZATION OUR PEOPLE IS OUR BEST RESOURCE +69% of employees -45% CO2 emissions reduction Surpassing Target From 0.68 tn CO2/GWh in 1H2020 to 0.37 tn CO2 / GWh in 1H2021 +40% Promotion of women Target achieved Compar

  20. Slide 20: Case Study – Local project integration with fauna and flora

    Improving ESG commitments – Always striving for best local project integration with fauna and 18000 flora 2150 3150 4150 5175 6200 Flora-protection measures CASE STUDY Fauna-protection measures Protecting power lines and fencing BUDIA 338MW from collisions Part of Cifuentes-Trillo 626MW complex 210

  21. Slide 21: Appendix

    18000 5175 6200 2150 3150 4150 Appendix

  22. Slide 22: Income Statement

    18000 Income Statement 2150 3150 4150 5175 6200 H1-2021 (unaudited) €mn H1-2021 H1-2020 Relative change (%) Net sales 42.967 23.115 86 Other income and earnings 6.531 5.527 18 Total revenues 49.498 28.642 73 Personnel expenses (3.238) (2.775) 17 Operating expenses (3.812) (3.460) 10 EBITDA 42.448 22

  23. Slide 23: Balance Sheet – Assets

    18000 Balance Sheet 2150 3150 4150 5175 6200 H1-2021 (unaudited) Assets €mn H1-2021 FY20 Relative change (%) Non-current assets 802.746 609.897 32 Intangible assets 109.383 45.584 140 Tangible fixed assets 626.569 496.431 26 Deferred tax assets 66.123 67.224 (2) Other non-currents financial assets 6

  24. Slide 24: Balance Sheet – Liabilities

    18000 Balance Sheet 2150 3150 4150 5175 6200 H1-2021 (unaudited) Liabilities €mn H1-2021 FY20 Relative change (%) Equity 248.349 222.514 12 Capital and share premium 310.926 310.926 0 Other reserves 5.311 5.311 0 Retained earnings (60.227) (83.876) (28) Value adjustments (7.661) (9.847) (22) Non-cur

  25. Slide 25: Disclaimer

    Disclaimer 18000 5175 6200 2150 3150 4150 This document has been prepared by SOLARIA ENERGÍA Y MEDIO AMBIENTE, S.A. (“Solaria”) for information purposes only and it is not a regulated information or information that has been subject to prior registration or review by the Spanish Securities Market Co

  26. Slide 26: 18000

    18000 5175 6200 2150 3150 4150

Solaria Energía y Medio Ambiente — H1 2021 Earnings Presentation on 6ix