Solaria Energia Y Medio Ambiente, S.a. · BME:SLR
Solaria Energia Y Medio Ambiente — FY2020 Earnings Presentation
35 slides from Solaria Energia Y Medio Ambiente's earnings presentation, Dec 20, 2021
Slide 1: The leading PV platform in Europe: Q4 and FY2020 Update
The leading PV platform in Europe Q4 and FY2020 Update
Slide 2: Disclaimer
Disclaimer 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 Commission. By attending a meetin
Slide 3: Agenda
Agenda 1. Key Highlights 2. Pillars of growth in place 3. Solaria 2.0: A 18GW Solar Leader by 2030 4. Final remarks 3
Slide 4: Key Highlights
Solaria 01 Key Highlights
Slide 5: Key highlights FY2020
1. Key highlights FY2020 Pillars of growth in place ✓ Production +341% y/y; Revenues +48% y/y; EBITDA +56% y/y; Net profit +27% y/y Strong set of results ✓ Financing cost optimization ✓ 626MW Trillo Project, the largest PV project in Europe is a 2021 reality Robust backlog supporting targets ✓ 1,030
Slide 6: Pillars of growth in place
02 Pillars of growth in place 6
Slide 7: Strong set of results: energy production and revenues
2. Pillars of growth in place Strong set of results Energy production record and strict control of the operating expenses Revenues generated by Energy production (GWh) energy sales (€mn) 506.7 In line with new installations, energy 53.3 production rose by over +341% y/y to +341% 506.7GWh 34.5 +54% R
Slide 8: Strong set of results: profit before tax and net profit
2. Pillars of growth in place Strong set of results Outstanding profit on the back of strong operating leverage Profit before tax (€mn) Profit before tax amounted to €20.4mn, up +250% y/y 20.4 and reflecting the company’s sound capacity of cash generation without impact of tax credit +250% • Old ind
Slide 9: Financing cost optimization
2. Pillars of growth in place Strong set of results Financing cost optimization 4,5% Continue decrease 4,0% Institutional in gross financing cost Investors 3,5% New agreements to 3,0% improve substantially project finance cost 2,5% Santander Sabadell Strong Cash Flow BayernLB Natixis 2,0% improvemen
Slide 10: Profitability focus: Capex, Opex and project IRR
2. Pillars of growth in place Profitability focus Best in class in Capex & Opex in Iberia. 12% minimum Project IRR target CMD Sep 2020 CMD Sep 2020 Strong track record of capex Continued strong focus on profitability efficiencies over time OPEX Project CAPEX €/MW + €/MW IRR 2020YE €390,000 €10,000 (
Slide 11: Profitability focus: further capex reduction targets
2. Pillars of growth in place Profitability focus We target further capex reduction of 9% per year in 2022 and 2023 Real Project Cost 60% already contracted CMD20 Target New targets Efficiency pillars ✓ Increased suppliers €0.39mn competition and mass (7.9%) €0.35mn production (7.9%) €0.32mn €0.29mn
Slide 12: Focus on construction of large-scale projects
2. Pillars of growth in place Focus on construction of large-scale projects 1,828MW installed and under construction in 1Q21 presentation and 2,150MW installed target by end 2021 3,135MW under construction to deliver 2,120MW by end 2022 (1.4x coverage) +1.0GW Substantial Works to be Capacity in MW c
Slide 13: Landmark 626MW Trillo Project fully on track
2. Pillars of growth in place Large scale projects are now a reality Landmark 626MW Trillo Project fully on track 626MW already in public information Purchasing all the materials for the PV plant Construction beginning in April 2021 COD December 2021 TRILLO NODE (Guadalajara, Spain) Largest solar PV
Slide 14: Trillo in numbers
2. Pillars of growth in place Large scale projects are now a reality Trillo in numbers – The largest solar PV project in Europe 0.35 Est. €0.35mn Capex /MW = One of the most profitable projects in Europe 1 The largest solar PV project in Europe 81 81% of our 775 MW new installations target for 2021
Slide 15: Garoña and Villaviciosa 1,377MW with storage
2. Pillars of growth in place Large scale projects are now a reality Garoña and Villaviciosa 1,377MW From energy producer to energy manager Always focus on innovation With storage For the first time we are going to include batteries in both projects: 595MW Garoña (Burgos, Spain) and 783MW Villavicio
Slide 16: PPA leader in Iberia: 560MW secured
2. Pillars of growth in place PPA leader in Iberia 560MW secured in last month Large Iberian Spain Utility 1st auction hold on 26 January 2021 80MW 300MW 180MW 10Y 10Y 12Y COD 2021 COD 2021 COD 2023 €33-36 €33-36 €27.97 Project IRR>12%1 Project IRR>12%1 Project IRR=12%1 1 Assumptions: Amortisation 3
Slide 17: Public PPAs offer attractive opportunities
2. Pillars of growth in place PPA leader in Iberia Public PPAs offer attractive opportunities European countries auctions = New PPA players in the game 10GW PV Auctions until 2025 1st auction held on 26 January 2021 Award of 180MW at €27.97 COD 2023 12Y Project IRR = 12%1 Best price-volume combinati
Slide 18: PPA leader in Iberia: fixed price 1.57GW
2. Pillars of growth in place PPA leader in Iberia Fixed price 1.57GW Long-Term Tenor (10-years) No exit windows Creditworthy counterparties Support attractive financing 73% of 2021 target capacity already secured Note: Spain and Portugal auctions are country ratings 18
Slide 19: Sustainable growth: main ESG achievements
2. Pillars of growth in place Sustainable growth S U S TA I N A B L E C O M M I T M E N T S New Ethics, Compliance and ESG Commission (February) MAIN ESG ACHIEVEMENTS New ESG Policy (February) E NE V N VI IR ROO NNMM E NETN T GG O OVVEER R NNAN A CNEC E New Environmental Policy New Anticorruption Po
Slide 20: Solaria 2.0: A 18GW Solar Leader by 2030
03 Solaria 2.0: A 18GW Solar Leader by 2030 20
Slide 21: Solar = New king of electricity
3. Solaria 2.0: A 18GW Solar Leader by 2030 Solar = New king of electricity Solar PV growth expected to accelerate in Europe until 2030 Strong Institutional Support for Solar Entailing an Unique Opportunity for PV in Energy Transition the Renewables Growth in Europe over the Next Decade and Beyond T
Slide 22: Long term demand for solar energy: expansion of addressable market
3. Solaria 2.0: A 18GW Solar Leader by 2030 Solar = New king of electricity Long term demand for solar energy: expansion of total addressable market Solar c.3x Solar capacity in Europe by 2030 GW E-mobility Extra demand 42% of transportation from Hydrogen energy demand from plants electricity by 205
Slide 23: Iberia will be the solar hub of Europe
3. Solaria 2.0: A 18GW Solar Leader by 2030 Solar = New king of electricity Iberia will be the solar hub of Europe Solaria is sharing green energy with all Europe through PPA’s with the largest European Utilities The core of our strategy are the Customers Large Iberian Utility 23
Slide 24: From 6.2 to 11GW in Iberia
3. Solaria 2.0: A 18GW Solar Leader by 2030 From 6.2 to 11GW In Iberia Organic growth Project IRR target > 12% 10GW 1GW TO FILL THE GAP Spain Portugal 11,000MW 1.000 Portugal: Obtained 400MW connection points 6,200MW Spain: 3,000MW of new 500 opportunities Connection points already identified. 10.00
Slide 25: Solaria stands behind the new regulation since CMD 2019
3. Solaria 2.0: A 18GW Solar Leader by 2030 Solaria stands behind the new regulation since CMD 2019 93 new projects admitted June Royal Decree-law1 TARGETS NEW DEADLINE • To stop speculation in Spain To withdraw unfeasible project and abandon grid 3M access permit, and to receive back the bank • To
Slide 26: 3GW in Italy: PV market starting to explode
3. Solaria 2.0: A 18GW Solar Leader by 2030 3GW in Italy PV Market starting to explode Energy Price 25% higher than Spain Energy price comparison (€/MWh) 60 Small and medium-sized projects 10-20MW 50 40 Land scarce and complex to negotiate 30 20 National, regional and local regulation 10 PPA market
Slide 27: 3GW in Italy: organic growth
3. Solaria 2.0: A 18GW Solar Leader by 2030 3GW in Italy Organic growth Project IRR target > 12% Historical local knowledge and presence Replicating Iberian business model with own team and in-house pipeline development PV projects developed and operational in Italy since 2009 17MW in operation sinc
Slide 28: 4GW in rest of Europe: non-organic growth
3. Solaria 2.0: A 18GW Solar Leader by 2030 4GW in rest of Europe Non-organic growth Acquisition of a platform and pipeline to accelerate growth To be the reference in the solar consolidation European market in the coming years Strong demand from our PPA customers in other European countries enablin
Slide 29: Final remarks
Solaria Final remarks
Slide 30: Final remarks
4. Final remarks Pillar of Growth in place ❑ Solaria the Best Brand with the Best Customers ❑ Very strong positioning in Iberia in Solar PV which will be replicate in Europe 2021 is a turning point in Solaria history ❑ Construction of the largest PV plant in Europe this year: TRILLO 626MW ❑ Innovati
Slide 31: Appendix
Solaria Appendix
Slide 32: Income Statement
Income Statement FY20 (unaudited) €mm FY20 FY19 Relative change (%) Net sales 53.266 34.540 54 Other income and earnings 11.239 8.998 25 Total revenues 64.505 43.538 48 Personnel expenses (7.923) (5.785) 37 Operating expenses (7.519) (6.256) 20 Operating (4.674) (4.623) 1 Levies (2.845) (1.633) 74 E
Slide 33: Balance Sheet: Assets
Balance Sheet FY20 (unaudited) Assets €mm FY20 FY19 Relative change (%) Non-current assets 609.897 462.386 32 Intangible assets 45.584 24.255 88 Tangible fixed assets 496.431 384.678 29 Deferred tax assets 67.224 52.809 27 Other non-currents financial assets 658 644 2 Current assets 105.611 138.140
Slide 34: Balance Sheet: Liabilities
Balance Sheet FY20 (unaudited) Liabilities €mm FY20 FY19 Relative change (%) Equity 222.514 193.258 15 Capital and share premium 310.926 310.926 0 Other reserves 5.311 5.311 0 Retained earnings (83.876) (114.290) (27) Value adjustments (9.847) (8.689) 13 Non-current liabilities 406.546 326.254 25% N
Slide 35: Solaria
V Solaria
Solaria Energía y Medio Ambiente — FY2020 Earnings Presentation on 6ix