7c Solarparken Ag · XETR:HRPK
7c Solarparken — H1 2020 Earnings Presentation
32 slides from 7c Solarparken's earnings presentation, Sep 23, 2020
Slide 1: 2020 H1 Results & Business Update
2020 H1 Results & Business Update ANALYST CALL, 23.09.2020 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 H1’20 Results 5 Strategic Review 6 Guidance 2020 3
Slide 4: Business Model & Portfolio
Business Model & Portfolio Pure-play German PV operator with 215 MW own assets, and 77 MW external management contracts IPP PORTFOLIO ASSET MANAGEMENT PV ESTATE CASH FLOWS SYNERGIES TERMINAL VALUE Recurring fees from No land lease costs Acquire assets external investors Repowering potential for Deve
Slide 5: Business Model & Portfolio
Business Model & Portfolio Current IPP portfolio generates annual EBITDA (IFRS) of > EUR 39 Mio. Portfolio characteristics LOCATIONS > 1 MW CAPACITY TARIFF YIELD REVENUES EBITDA IFRS MWp EUR/MWh kWh/kWp EUR Mio EUR Mio Freefield PV 120 201 1,024 24.7 22.3 Rooftop PV 89 232 900 18.6 16.1 Onshore wind
Slide 6: 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 7: Capacity and Market Cap
Capacity and Market Cap Track record of growth and capital appreciation 2018-20 CAPITAL-INTENSIVE GROWTH 2018 TO 220 MWP BY 2020 UP TO ~150 MWP 240 Capacity in MWp Market cap in EUR Mio THROUGH 240 230 ACQUISITION OF 230 DEVELOPER + 220 220 ALTERNATIVE 210 2016-17 FINANCING 210 200 GROWTH TO 115 MWP
Slide 8: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 JOURNEY SO FAR 3 Market Conditions 4 H1’20 Results 5 Strategic Review 6 Guidance 2020 8
Slide 9: 2020 Journey so far
2020 Journey so far Capacity Objective of 220 MW by year-end 2020 within reach SHARE PRICE 2020 KEY MILESTONES ATTAINED 3,9 1. Portfolio raised to 200 MWp 3,7 3 2. Announcement of record EBITDA (EUR 38.1 Mio.) in 2019 3,5 4 1 with dividend of 11ct/share 3,3 2 3. Q1’20 EBITDA +13%, increased guidance
Slide 10: 2020 Journey so far
IPP Portfolio 31-Dec 2019 190 Bernterode 0,6 Noßwitz 0,6 Luckow Sud 0,7 Parchen Wieglitz 0,5 1,5 Calbe BA2 0,7 CalbeKK 1,3 GROWTH IN INSTALLED CAPACITY DURING 2020 (MWP) REG 4,4 0,3 Bernsdorf BA2 Ludwigsfelde IV 0,7 Oberwesterwaldbahn 10,0 Surya1 2,5 Salzwedel Floating 0,7 2020 Journey so far IPP Po
Slide 11: 2020 Journey so far
2020 Journey so far PV Estate expanded further to 147 ha (accomodating 55 MWp real capacity) PORTFOLIO OVERVIEW CURRENT STATUS 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 Sachse
Slide 12: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 MARKET CONDITIONS 4 H1’20 Results 5 Strategic Review 6 Guidance 2020 12
Slide 13: Market conditions
Market conditions PV and wind gain strength at the expense of coal in Germany’s H1’20 production mix BREAKDOWN BY SOURCE IN TWH MANAGEMENT COMMENT 80,0 75,1 H1'20 H1'19 70,0 ▪ Net PV output in Germany rose by ca. 10% to 27.9 TWh, 60,0 mainly reflecting growth in installed capacity from 48.0 50,0 GWp
Slide 14: Market conditions
Market conditions The effects of CoVid-19: consumption down by up to 10% during lockdown period leads to … ELECTRICITY CONSUMPTION IN GERMANY IN TWH - -8.4% -9.6% -6.1% 14
Slide 15: Market conditions
Market conditions … lower power prices GERMAN ELECTRICITY PRICE IN EURO/MWH MANAGEMENT COMMENT ▪ Average spot price came down from EUR 37/MWh in H1’19 to EUR 23/MWh in H1’20 as a result of a drop in consumption and the global commodity crisis leading to a coal-to-gas switch. ▪ The effect on our PV b
Slide 16: 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 for six consecutive hours, then the tariffs for parks 3.5% of the entire period in H1’20 subject to six consecutive hours o
Slide 17: Output conditions
Output conditions 3% higher irradiation in H1’20 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 H1 Year +3% vs 2020 24 37 95 163 171 163 171 653 H1’19 2019 21 52 75 138 146 200 170 147 98 56 24 20 632 1,
Slide 18: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 H1’20 RESULTS 5 Strategic Review 6 Guidance 2020 18
Slide 19: Electricity Production
Electricity Production Our installations produced 118 GWh or 595 kWh/kWp PRODUCTION OUTPUT +29% SPECIFIC YIELD +5% Boosted by strong wind output +5% (ex-wind 569 kWh/kWp versus 562 +23% kWh/kWp in H1’19) 595 568 195 547 552 +29% 159 410 390 407 407 127 118 103 91 72 184 57 157 145 161 Power producti
Slide 20: Power Sales
Power Sales 14% increase in Power Sales to EUR 25.6 Mio YEAR-ON-YEAR GROWTH IN POWER SALES MANAGEMENT COMMENT +13% +11% +14% ▪ Portfolio power sales rose to EUR 25.6 Mio in H1’20 (+14%) on the back of higher production (+30%). The increasing 140 350 314 level of new-build installations is however ca
Slide 21: P&L
P&L EBITDA +9.3% to EUR 23.5 Mio. boosted by power sales. In Mio EUR H1‘20 H1’19 % COMMENT Revenues 26.7 22.8 17.1% o/w power sales 25.6 22.5 Driven by capacity growth to 210 MWp o/w others 1.1 0.3 Includes EUR 0.8 Mio. sales for PV module exchange to HCI 2 Other income 1.0 1.9 o/w compensation for
Slide 22: Balance Sheet
Balance Sheet Equity Ratio still > 30% but dividend not yet paid on 30.06.2020 In Mio. EUR H1’20 2019 COMMENT ASSETS 448.7 401.3 Land & Property 10.9 10.4 Increase of PV Estate to 140ha Rights-of-Use Assets (IFRS 16) 20.8 20.0 Solar- & Windparks 324.4 285.8 Reflects expansion to 210 MWp + first-time
Slide 23: Cash Flow
Cash Flow Cash Flow Per Share stays at record level, rounded EUR 0.34/share In Mio EUR H1’20 H1’19 COMMENT EBITDA 23.5 21.5 - Lease expenses (IFRS 16) - 0.4 - 0.5 EUR 0.5 Mio payments but already EUR 0.1 Mio through P&L (EBITDA) - Cash Interest paid -2.7 -3.2 EUR 3.1 Mio paid and EUR 0.4 Mio receive
Slide 24: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 H1’20 Results 5 STRATEGIC REVIEW 6 Guidance 2020 24
Slide 25: Target #1: MW Objective at year-end 2020
Target #1: 220 MW Objective at year-end 2020 Favorable Market Development following abolition of 52 GWp cap TARIFFS FOR PV PROJECTS IN EUR/MWH MANAGEMENT COMMENT 120 ▪ The overall PV market in Germany is close to the removed 52 GWp cap. As a result, projects < 750 kWp will still benefit 100 from a f
Slide 26: Target #2: Integrate recent Growth
Target #2: Integrate recent Growth Positives and negatives PLAN AS COMMUNICATED IN DEC ‘19 OPERATIONAL FOCUS RATIONALE INITIAL TARGET DATE # 1: “Connect all commissioned projects IBN 2019 6 MWp of projects with valid commissioning are still awaiting grid Q2’20 to the grid” connection due to long del
Slide 27: Target #2: Integrate recent Growth
Target #2: Integrate recent Growth Positives and negatives OPERATIONAL FOCUS RATIONALE INITIAL TARGET STATUS H1’20 DATE # 2. “Merge different SPV’s” 25 different installations have been added during Dec-20 FULLY ACHIEVED 2019; with each an individual and existing SPV. # 3. “O&M Management on new- Sc
Slide 28: Target #3: Capital into Asset Management
Target #3: Capital into Asset Management Re-cap of the situation on our Fund business ACQUIRED OBSERVATIONS PLATFORM 2019 ACTIONS TAKEN Three Funds (20 MWp), including HCI1 7C Solarparken has financed a panel 7C Solarparken is the General Partner 1 and HCI2, substantially underperform (“Komplementär
Slide 29: Target #3: Capital into Asset Management
Target #3: Capital into Asset Management HCI 1 First-time consolidation HCI1 and HCI2: 4 comparable PV parks in Southern Germany 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 29
Slide 30: Today's Agenda
TODAY’S AGENDA 1 Company Overview 2 2020 Journey so far 3 Market Conditions 4 H1’20 Results 5 Strategic Review 6 GUIDANCE 2020 30
Slide 31: Guidance 2020
Guidance 2020 EBITDA Guidance lifted from > EUR 37 Mio. To EUR 39.2 Mio. PROGNOSIS 2020 GUIDANCE 2020 EX-HCI 2020 HCI1 (24.4%) HCI2 (34.5%) NEW GUIDANCE In Mio EUR Apr-20 AFTER Q1’20 AFTER H1’20 01.07.2020 01.07.2020 AFTER H1'20 Revenues 43.0 46.2 1.4 0.8 48.3 EBITDA 36.0 at least 37.0 37.5 1.1 0.6
Slide 32: 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 32