Holaluz Clidom Sa · BME:HLZ
Holaluz Clidom Sa — Holaluz — FY2023 Earnings Presentation
41 slides from Holaluz Clidom Sa's earnings presentation, May 9, 2024
Slide 1: The Rooftop Revolution: FY 2023 results and Q1 2024 update
The Rooftop Revolution FY 2023 results and Q1 2024 update May 9, 2024
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: Agenda
Agenda About Us Marketplace and Strategy 2023 Review 2024 YTD Summary 3
Slide 4: Our commitment to fully decarbonize the world
Our commitment to fully decarbonize the world We are building the largest and most impactful green energy community in Europe, unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage 4
Slide 5: About Us: Leading the energy transition
About Us Leading the energy transition Transforming every rooftop into a distributed green energy producer • More than 13 years as a GreenTech leader in Spain • Creating the largest green energy community in Europe, connecting distributed Solar producers and renewable electricity customers in our en
Slide 6: Presenters and Leadership Team
Presenters and Leadership Team Enhanced leadership team with strong operational and cost control focus Driven by a well-defined strategy Ferran Nogué Carlota Pi Co-Founder and Chief Co-Founder and CEO Energy Management Officer Maria Ros Narcís Matabosch Chief Sales Officer Chief Product Officer Carl
Slide 7: Business model
Business model Getting vertically integrated into electricity generation through distributed solar and storage and connecting these distributed producers with end customers through our energy management tech platform creates a strong and sustainable competitive advantage in the sourcing cost of elec
Slide 8: A Distributed Generation ecosystem enables a unique sourcing advantage
A Distributed Generation ecosystem enables a unique sourcing advantage, allowing Holaluz to compete with large-scale incumbents Proximity or collective self-consumption allows citizens to share self-generated electricity with their neighbor on a contractual basis. The Illustrative Example of Electri
Slide 9: Holaluz ecosystem combining decentralized Solar PV and Energy Management
Holaluz ecosystem combining decentralized Solar PV and Energy Management enables our differentiated business model A Connect people to green energy Energy Management Transform every sqm of rooftop into green electricity production and storage Solar business B business … buys that electricity from th
Slide 10: Unique value proposition combining Solar and Energy Management
We are sophisticating the market with our unique value proposition combining the best of Solar and Energy Management What the average player can do What Holaluz can do Distributed Generation installations maximizing rooftop potential to share electricity with neighbouring customers Solar self-consum
Slide 11: We have the greatest customer value proposition
We have the greatest customer value proposition Customer value proposition includes 70%+ guaranteed savings and an end-to-end customer relationship and manage electricity with a #1 ESG 100% renewable energy subscription-based product Savings Subscription-based We provide the maximum savings We guara
Slide 12: Agenda
Agenda About Us Marketplace and Strategy 2023 Review 2024 YTD Summary 12
Slide 13: Distributed Generation solves the five challenges of decarbonization
Distributed Generation solves the five challenges of decarbonization 1 2 3 4 5 Enables fast Facilitates Avoids massive investments Provides flexibility to Ensures energy deployment of electrification of all required in upgrading operate a 100% transition is done with renewable energy consumption ele
Slide 14: Opportunity to grow Distributed Generation in Spain is massive
The opportunity to grow Distributed Generation in Spain is massive as the market remains vastly underpenetrated at under 5% Evolution of annual residential solar installations in Spain, # thousands installations 1 xx Penetration rate, % <1% <1% <1% 3% 4% 15% 100% 10.000 2023 highly impacted by a hig
Slide 15: Solar Market in Spain - The Investment Case
Solar Market in Spain - The Investment Case Significant growth potential in residential solar installation market • Spanish climate ideal for solar generation, over 10M domestic rooftops • Solar penetration currently under 5%, compared with +25% in other European countries • Very fragmented marketpl
Slide 16: Holaluz - Growth Strategy
Holaluz - Growth Strategy Lead the market with best product Maximize profitability through Continue raising the Holaluz and savings through continuous focus on optimized operations, risk profile in Spain and throughout innovation (e.g. product launches management and hedging Europe and App) Grow sig
Slide 17: Agenda
Agenda About Us Marketplace and Strategy 2023 Review 2024 YTD Summary 17
Slide 18: 2023 Overview
2023 Overview Resilient performance despite industry and economic headwinds Resilient performance Strongly reversed Q1 23 loss, achieved positive normalised EBITDA of 4.3m€ despite industry and economic headwinds and 22.5 M€ in LTM (Apr 23 – Mar -24) Decisive action Ongoing innovation Enhanced leade
Slide 19: 2023 KPIs
2023 KPIs Financial Operational Brand and ESG 4.3M€ 325,000+ 4/5 Normalized EBITDA Total energy contracts Trustpilot score 23%￬ YoY 14,500+ 41% Total solar contracts Women on the team Normalized operating costs ~4 2.7M+ 600 ￬ CLTV/CAC Tons of CO2e saved** Solar breakeven end 2023* x2 to 3%+ No. 1 ES
Slide 20: 2023: Energy Management
2023: Energy Management • The business has been generating positive EBITDA with a normalized EBITDA of 24.6 M€ in the year and a normalized EBITDA of 38.7 M€ in the last twelve months (LTM). • The migration of the customer portfolio to the ‘Tarifa Justa’ product has generated a record gross margin o
Slide 21: Energy Management normalized EBITDA in the last twelve months
The Energy Management business has generated 39 M€ of normalized EBITDA in the last twelve months Holaluz EM Normalized EBITDA, M€ Audited figures 38.7 24.6 6.7 9.3 16.8 -8.2 LTM Norm. Q1-23 Q2-23 Q3-23 Q4-23 FY23 Norm. EBITDA Apr- EBITDA 23 to Mar-24
Slide 22: 2023: Energy Management P&L
Key Points 2023: Energy Management P&L* • Revenue: significant decrease in electricity price YoY impacting revenue but not gross profit (2022: av 204 2023 2022 % change EUR/MWh 2023: av 99.5 EUR/MWh (52% Key P&L Revenues1 258.2 468.4 -45% reduction)) figures (€m) Gross profit (M€) 50.6 72.2 -30% • P
Slide 23: 2023: Solar
2023: Solar • Improved Solar Normalized EBITDA from -6.7 M€ in Q1 to -3.0 M€ in Q4 despite a 53% reduction in the number of installations performed in the same period, resulting from gross margin expansion and decisive cost rationalization measures carried out • Decreased Solar breakeven from 800-1,
Slide 24: Solar business reduced its losses during 2023
The Solar business has reduced its losses during 2023 due to improvements in margins and operating costs Holaluz Solar Normalized EBITDA, M€ Audited figures -6.7 -5.9 -12.0 -4.7 -16.2 -3.0 -20.3 LTM Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 FY23 Norm. Norm. annualized EBITDA EBITDA Norm. Apr-23 to EBITDA Mar-24
Slide 25: 2023: Solar P&L
Key Points • Revenue: 50% contraction in the solar 2023: Solar P&L market in 20235 due to high-interest rates environment; however Holaluz installations only decreased by 18%. Holaluz decided to focus on i) increasing average installation 2023 2022 % change selling price ii) cost of sales optimizati
Slide 26: Consolidated recovery, 22 M€ normalized EBITDA in last twelve months
Consolidated recovery from negative impact of Q1 23, achieving 22 M€ in normalized EBITDA in the last twelve months Holaluz Normalized EBITDA, M€ Audited figures 22.5 4.3 3.7 4.6 10.9 -14.9 LTM Norm. Q1-23 Q2-23 Q3-23 Q4-23 FY23 Norm. EBITDA EBITDA Apr-23 to Mar-24
Slide 27: 2023: Consolidated P&L
2023: Consolidated P&L Key Points €m FY-23 FY-22 % change • Revenue: Group revenue declined by 43% due to the electricity price decline and other headwinds Revenues1 283.1 499.1 -43% COGS -220.3 -415.9 -47% • Following poor Q1, performance improved as Gross profit2 62.8 83.2 -25% year progressed wit
Slide 28: 2023: Consolidated Balance Sheet (1)
Total Assets: 175.6M€ Non-current assets: 78.9M€ 2023: Consolidated Balance Sheet (1) • 3 M€ increase in Intangible Assets (R&D) €m • Long-term financ. invest.: 8.6 M€: 6,6M€ Rooftop loans + 1.2 M€ derivatives acc. to Spanish normalized GAAP • Deferred taxes: 25M€ (12.5M€ tax credit) 31.12.23 31.12.
Slide 29: 2023: Consolidated Balance Sheet (2)
2023: Consolidated Balance Sheet (2) €m Net equity: 12.1M€ • Own funds: 12.1 M€; 7.6 M€ decrease due to acc. to Spanish net losses of 2023 normalized GAAP • Valuation adjust.: -4.5M€ (MtM) 31.12.23 31.12.22 31.12.23 31.12.22 Net equity 11.2 89.4 12.1 19.7 Total Liabilities: 163.6M€ Non-Current liabi
Slide 30: 2023: Adjusted Net Debt Position
Adjusted Net Debt: 58.8M€ 2023: Adjusted Net Debt Position • 4.0 M€ net debt increase because of the investment coming from the Parent €m Company (generated through the energy management business) to fund the solar business (growth and scalability) 31.12.23 31.12.22 • The purpose is to scale solar t
Slide 31: Holaluz debt capacity
Holaluz debt capacity More than 80% of bank Holaluz debt capacity evolution, M€ loans, 90% of overdrafts and 100% of confirmings, are ICO-backed Adjusted net debt Bank loans Overdrafts instruments with long Comm. Paper Confirmings SEPA&VAT Financing maturity dates 72.6 72.6 VAT financing needs 6.5 s
Slide 32: Financing update
Financing update The Company is working to refinance its activity with two options open, pending to be confirmed by ICF (Institut Català de Finances) for its formalisation: • Option reported the 2nd of April: ICF €10M loan, Avançsa €3M loan, convertible loans from two family offices amounting €1.8M
Slide 33: ESG Milestones 2023
ESG Milestones 2023 Environment Social Governance ● Joined the United Nations Business ● Team development encouraged by a ● Consolidation of robust policies and Ambition for 1.5°C initiative in 2022 and, flexible and autonomous corporate procedures, including the Ethical Code, in 2023, established a
Slide 34: Recognitions
Recognitions 2023 In 2018, Holaluz became the first EU energy As a member of the United Nations In January 2023, Holaluz ranked nº1 worldwide in company to join the B Corp movement. By 2022, Global Compact, the company is Sustainalytics’ ESG Risk Ranking for independent the company updated its impac
Slide 35: Agenda
Agenda About Us Marketplace and Strategy 2023 Review 2024 YTD Summary 35
Slide 36: 2024 YTD Performance and Outlook
2024 YTD Performance and Outlook Normalized EBITDA of 22.5m€ in last 12 months v 4.3m€ in 2023 • Q1 normalized EBITDA of 3.1 M€ despite still challenging underlying market conditions, overcoming last year’s Q1 results • Normalized EBITDA in last 12 months to Q1 24 of 22.5 m€ (compared with 4.3m€ for
Slide 37: 2024 YTD Performance and Outlook
2024 YTD Performance and Outlook Solar • 2024 to date showing good trends including Gross Margin (49% in Q1) and monthly sales increases • Ongoing focus on cost and efficiencies, with operating costs further reduced since 2023 year-end • Current breakeven at 350 monthly installations, to be further
Slide 38: Key Aims for 2024
Key Aims for 2024 Operating costs Product and innovation Targeting further 25% reduction in operating Further migration to ’Tarifa Justa’ across energy costs YoY and solar clients, and launch of new solar product Customer acquisition Margin and profitability Further YoY increase in av. installations
Slide 39: Agenda
Agenda About Us Marketplace and Strategy 2023 Review 2024 YTD Summary 39
Slide 40: Summary
Summary • Enhanced leadership team with strong operational and cost control, and well-defined strategy • Significantly lowered Solar breakeven to 350 installations at Q1-24 • Best in class customer proposition and continuous innovation, ongoing strong customer satisfaction KPIs • Market share gains
Slide 41: Questions? investors@holaluz.com
Questions? investors@holaluz.com