Slide 1: Phoenix Solar AG 3rd Quarter Results
Phoenix Solar AG 3rd Quarter Results 13 November 2008 Dr. Andreas Hänel (CEO) - Conference Call - SonnenStrom Electricidad Solar Elettricità Solare Solar Electricity Électricité Solaire
Slide 2: Disclaimer
Disclaimer The content of this presentation is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss
Slide 3: Key Figures Q 1-3 2008
Key Figures Q 1-3 2008 Key Figures Q 1-3 2008 Revenues 301.1 €M (+128 % versus 2007) EBIT 29.1 €M (+223 % versus 2007) EBIT margin 9.7 % (up from 6.8 % end of Q3 2007) Net Result 21.9 €M (+306 % versus 2007) EPS 3.27 € (up from 0.89 € end of Q3 2007) Equity Ratio 52.1 % (versus 33.2 % in 2007) ROE 2
Slide 4: Highlights Q3 2008 (1/2)
Highlights Q3 2008 (1/2) Phoenix Solar Australia founded on 1 July 2008 14 MWp framework contract with Meinl International Power signed on 16 July 2008. All projects planned to be completed by the end of 2009 Grid connection of first megawatt-scale plant in Pontoiraklia, Greece on 23 July 2008 450 €
Slide 5: Highlights Q3 2008 (2/2)
Highlights Q3 2008 (2/2) Project rights for a 1 MW system near Rome’s Fiumicino airport acquired in July 2008 Position of Chief Sales Officer created on 13 August 2008. The sales units operating within the company will be combined under the responsibility of one Board member. New CSO has extensive s
Slide 6: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 6
Slide 7: Business Model - Overview
Business Model - Overview International Manufacturers Solar Modules BOS-Components • Crystalline • Inverters • Thin-film • Mounting Systems • Cables System integration Phoenix Solar’s business model ices covers all PV system sizes: Serv Components & Systems 1- 500 KWp se Sal Power Plants > 500 kWp T
Slide 8: Business Model - Focus
Business Model - Focus Focus on Photovoltaics Exclusively active in the field of photovoltaics, the market segment of renewable energies with the highest growth rate Focus on functional, marketable and profitable PV systems Advantages - Purchase of PV modules and components with the best price-to-pe
Slide 9: Target Customers for Large Solar Power Plants
Target Customers for Large Solar Power Plants Closed Solar Funds as capital collection point for private investors - Participation starting at €10,000 - Fund capitalisation starting at €20M - Expected Return: > 6% Institutional investors, insurance companies, pension funds - Risk spreading (in addit
Slide 10: International Business Relations and Worldwide Company Locations
International Business Relations and Worldwide Company Locations Phoenix Solar AG, Germany Phoenix Solar S.L., Spain RED 2002 Phoenix Solar Srl, Italy Pte Ltd, Singapore Phoenix Solar E.P.E., Greece (since June 2008) Phoenix Solar Pty Ltd, Australia (since July 2008) 10
Slide 11: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 11
Slide 12: Phoenix Solar & the German Market 2008
Phoenix Solar & the German Market 2008 - Strong demand in both Components & Systems and Power Plants segments from January 2008 onwards until to date - Strong order intake in particular from Components & Systems segment in Germany indicating year-end rally, however: - Many installers (Phoenix Solar’
Slide 13: Phoenix Solar & Spanish Market 2008
Phoenix Solar & Spanish Market 2008 Spanish market - Transition period of RD 661/2007 has expired end of September - Spain’s market size might reach more than 1 GWp 2008 Spain remains 2nd biggest market in the world - New Royal Decree 1578/2008 with significantly reduced feed-in tariffs and hard cap
Slide 14: Phoenix Solar & Italian and Greek Market 2008
Phoenix Solar & Italian and Greek Market 2008 Italian market - Market may triple to more than 150 MWp in 2008 - Financing from Italian banks & grid connection still an issue - 4th Quarter expected to be strongest sales quarter in 2008 Greek market - Demand has been picking-up in 2008 but volume stil
Slide 15: Phoenix Solar's Solar Module and Inverter Suppliers
Phoenix Solar‘s Solar Module and Inverter Suppliers 450 €M contract signed in July 2008 Inverter Suppliers 15
Slide 16: Phoenix Solar Product Mix: Thin-film vs. Crystalline Modules
Phoenix Solar Product Mix: Thin-film vs. Crystalline Modules 100% Crystalline 90% 80% 42.0% 52.1% 48.1% 70% 60% 79.7% 78.5% 83.1% 50% 100% 40% Thin-film 30% 58.0% 51.9% 47.9% 20% 10% 20.3% 21.5% 16.9% 0% 2002 2003 2004 2005 2006 2007 2008e 16
Slide 17: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 17
Slide 18: Guidance 2008 & Outlook 2010
Guidance 2008 & Outlook 2010 Second update of Outlook 2010 Guidance 2008 Sales: 380 €M Sales: > 500 €M (up from > 370 €M) Positioning of Phoenix Solar EBIT: approx. 33 €M as an internationally active (up from > 23 €M) concern Expansion of international Expansion of international business to more tha
Slide 19: Sales Development
Sales Development €M 600 >500 500 400 380 300 260.1 2% 200 G R8 CA 111.1 119.0 100 67.2 14.4 20.8 23.5 0 4.0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e ... 2010e Up to 2003: Phoenix Solar AG (HGB) 2004 onwards: Revenue of Phoenix Concern (IFRS) 19
Slide 20: Sales Development per Full-Time Equivalent
Sales Development per Full-Time Equivalent €T 2200 2000 1915 1778 1800 1555 1600 1355 1400 1200 €T 1000 2.000 1732 800 +54% 621 1.500 551 575 1124 600 1.000 400 200 500 0 2001 2002 2003 2004 2005 2006 2007 Q1-Q3 '07 Q1-Q3 '08 Accounting Basis: HGB; from 2004 onwards IFRS 20
Slide 21: Revenue Share of Business Segments
Revenue Share of Business Segments 100% Components & Systems (Germany) 90% Components & Systems (ROW) Power Plants (ROW) 80% 36.6% Power Plants (Germany) 46.6% 44.3% 70% 60.4% 72.0% 60% 9.0% 5.4% 50% 6.3% 5.6% 40% 21.7% 5.5% 51.6 % International Sales 42.6% 30% 4.0% 20% 41.5% 34.1% 28.6% 24.0% 10% 1
Slide 22: EBIT / EBIT-Margin Development
EBIT / EBIT-Margin Development EBIT EBIT-Margin (€ M) 35 ~ 33 10% 8.6% 9% 30 8% 6.9% 25 7% 22.3 6% 20 4.0% 5% 3.7% 15 4% 10 3% 7.7 2% 4.8 5 2.5 1% 0 0% 2004 2005 2006 2007 2008e According to International Financial Reporting Standards (IFRS) 22
Slide 23: Annual Results / Earnings per Share
Annual Results / Earnings per Share €M € / share 18.0 2.50 Net Results 2.38 16.0 EPS 2.00 14.0 14.48 12.0 €M Net Results € / share 1.50 EPS 10.0 25.0 3.27 3.50 3.00 8.0 20.0 21.9 0.92 1.00 2.50 +306% 6.0 15.0 2.00 4.0 4.95 0.55 10.0 1.50 0.34 0.50 0.89 1.00 2.0 3.02 5.0 5.4 0.50 1.70 0.0 0.00 0.0 0.
Slide 24: Quarterly Sales Development 2007 / 2008 Group
Quarterly Sales Development 2007 / 2008 Group Results €M Group Sales 160 Sales 149.3 Best quarter revenue ever (Q3 2008 sales higher than Q4 2007) 140 +35% 128.1 104 % revenue increase yoy 120 110.2 128 % increase +75% Q1-3 2008 vs. Q1-3 2007 100 +165% 80 73.2 €M +67% 300 260.1 60 250 +119% 43.8 41.
Slide 25: Quarterly EBIT Development 2007 / 2008 Group
Quarterly EBIT Development 2007 / 2008 Group Results EBIT EBIT-Margin Group EBIT (€ T) Best quarter EBIT ever 17599 18,000 (Q3 2008 EBIT higher than Q4 2007) 24% 16,000 20% 85 % EBIT increase yoy 14,000 13280 16% EBIT margin remains on very 12,000 13.0% 11173 11.8% high level 10.4% 10.1% 12% 10,000
Slide 26: Quarterly Sales Development Power Plant Segment
Quarterly Sales Development 2007 / 2008 Power Plant Segment Power Plant Segment €M 90 84 % revenue increase yoy Sales 80.9 Q3 2008 revenues surpass Q4 2007 80 +22% 148 % increase 66.5 70 64.8 Q1-3 2008 vs. Q1-3 2007 60 +48% Germany and Spain were the +303% revenue drivers 50 43.9 €M 40 +139% 140 130
Slide 27: Quarterly EBIT Development Power Plant Segment
Quarterly EBIT Development 2007 / 2008 Power Plant Segment EBIT EBIT- €T Margin Power Plant Segment 12,000 22% Almost 54 % EBIT increase yoy 11,000 10694 20% Stable EBIT margin compared to 9885 10,000 18% Q2-2008 16.5% 9,000 14.6% 8405 16% 155 % increase Q1-3 2008 vs. Q1-3 8,000 2007 – in line with
Slide 28: Quarterly Sales Development Components & Systems Segment
Quarterly Sales Development 2007 / 2008 Components & Systems Segment Components & Systems Segment €M 80 Sales 133 % revenue increase yoy 108 % increase 68.4 70 63.2 Q1-3 2008 vs. Q1-3 2007 60 +56% German revenues dominate although international revenues increased 50 +116% significantly 43.7 €M 40 +7
Slide 29: Quarterly EBIT Development Components & Systems Segment
Quarterly EBIT Development 2007 / 2008 Components & Systems Segment EBIT EBIT- €T Margin Components & Systems Segment 8000 7707 18% Higher revenues and higher margin modules lead to significant EBIT margin 15% 7000 11.3% increase (11.3%) 9.9% 12% 6000 9% 593 % increase Q1-3 2008 vs. 6.3% 5000 4.3% Q
Slide 30: Quarterly Sales Development National Sales
Quarterly Sales Development 2007 / 2008 National Sales National Sales €M 100 National 40 % revenue increase yoy 93.8 90 National Sales dominated by +86% Components & Systems sales 80 70.5 70 60 +76% 50.4 €M 50 +15% 200 189.6 +61% 40.1 +81% 40 34.9 31.3 150 30 +122% 104.8 100 20 14.1 10 50 0 0 Q1'07
Slide 31: Quarterly Sales Development International Sales
Quarterly Sales Development 2007 / 2008 International Sales International Sales €M 90 International 246 % revenue increase in +12% international sales yoy 78.8 80 International sales rise to 70 70.1 51.6 % Q1-3 2008 330 % revenue increase 60 +946% Q1-3 2008 vs. Q1-3 2007 50 €M 40 34.2 80 70.4 +50% 7
Slide 32: Order Backlog Development 2007 & 2008
Order Backlog Development 2007 & 2008 €M Order backlog on all-time high 320 On-going strong order intake in 290 275 Components & Systems in Q4 260 First Power Plant contracts 2009 231 230 included 230 199* 200 170 143 138 134 140 111 109 110 88 92 85 78 73 76 80 61 65 45 48 50 36 11 17 20 5 6 1.1.07
Slide 33: Highlights Q4 2008
Highlights Q4 2008 Phoenix Solar Singapore signs 181 kWp contract in October 2008 to build largest PV system in Singapore on Lonza Biologics building 7 October: Solyndra exits “stealth mode” for its innovative thin CIGS module particularly suited for flat rooftops 10 October: Phoenix Solar ranked no
Slide 34: Supply Visibility
Supply Visibility First Solar: - 2nd framework contract extension signed in May leading to higher allocation in 2007 - 4th framework contract extension signed in September leading to higher allocation 2008 – 2012 now totalling 396 MWp + 15 MWp additional volume H1 / 2009 2008 – 2010 framework contra
Slide 35: Sales Visibility
Sales Visibility 275 €M framework contract 2008 – 2010 with KGAL signed (represents approx. one fourth of sales targets 2010) 25 MWp Solar power plants development contract signed with Greek project developer (first contracts expected 2008) 100 €M Solar power plants development contract signed with
Slide 36: Outlook to 2009
Outlook to 2009 Germany: So far strong demand from both Power Plants and Components & Systems for 2009. Pull-in effects don’t seem to be materialising from today’s perspective. Demand changes due to credit crisis may occur but are not visible yet. Spain: Total volume of installations 2009 will fall
Slide 37: Table of Contents
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 37
Slide 38: Investment Highlights
Investment Highlights Business model focuses on the core capabilities (PV systems technology), allows for high flexibility and fast exploitation of market opportunities Expansion of international business to more than 50 % of sales by 2010 World-leading expertise in large-scale power plant construct
Slide 39: Phoenix Solar at a Glance
Phoenix Solar at a Glance Reporting date / period 01.01. – 01.01. – 01.01. – 01.01. – 30.09.2008 30.09.2007 30.09.2008 30.09.2007 Balance sheet1 Employees1 Total assets T€ 167,514 114,973 Employees2 Number 190 125 Equity T€ 87,276 38,153 Sales per capita3 T€ 1,732 1,124 Equity Ratio % 52.10 33.18 Re
Slide 40: Contact
Contact Phoenix Solar AG Hirschbergstrasse 8 D-85254 Sulzemoos Phone +49 8135 938-000 www.phoenixsolar.com Fax +49 8135 938-399 phoenix@phoenixsolar.de Investor Relations Public Relations Anka Leiner Andrea Zepf Phone +49 8135 938-315 Phone +49 8135 938-313 a.leiner@phoenixsolar.de a.zepf@phoenixsol