Gigasun Ab · OMXSTO:GIGA
Gigasun Ab — Advanced Soltech Sweden — IPO Roadshow (September 2021)
28 slides from Gigasun Ab's IPO roadshow presentation, September 2021
Slide 1: Company presentation
Company presentation September 2021 Strictly private and confidential
Slide 2: Important information
Important information The following applies to this presentation, the oral presentation of the information in this presentation by Advanced Soltech Sweden AB (publ) (together with its subsidiaries, the “Company”) or any person on behalf of the Company, any question-and-answer session that follows th
Slide 3: Indicative offering structure
Indicative offering structure Issuer ▪ Advanced Soltech Sweden AB (publ) (”Advanced Soltech”, "ASAB" or the “Company”) Offer type and size ▪ SEK 196m purchase rights offering of ordinary shares (Sw. Inköpsrättserbjudande) and subsequent listing Listing venue ▪ Nasdaq First North Growth Market ▪ The
Slide 4: Management
Management Frederic Telander Max Metelius Lars Höst Working Chairman of CEO CFO the Board ▪ Working Chairman of the ▪ CEO of ASAB ▪ CFO of ASAB Board of ASAB ▪ Previously CFO/COO of ▪ Most recently CFO at ▪ Board member of Soltech ASAB Ortivus, listed on Nasdaq Energy, CEO and Board ▪ Co-founded Ali
Slide 5: Created as a Swedish-Chinese joint venture
Created as a Swedish-Chinese joint venture • Soltech Energy Sweden AB develops and sells aesthetic building integrated • Advanced Solar Power Hangzhou (“ASP”), is a prominent thin film solar cell producer photovoltaics (”BIPV”) solar power solutions in Sweden for all types of buildings based in Chin
Slide 6: Advanced Soltech at a glance
Advanced Soltech at a glance Advanced Soltech in brief Rooftop solar as a service: Value chain Product EPC Power End- manufacturer contractor producer customer Founded with the vision of accelerating the migration to renewable energy through a solar service offering that benefits all stakeholders •
Slide 7: Key historical milestones of Advanced Soltech
Key historical milestones of Advanced Soltech End of period installed capacity ASAB is founded Three retail bond Completed projects amounting Soltech Energy and ASP 150 MW of framework agreements are signed. issues placed – Cicero to 37 MW during the year invest SEK 50m First bond issue placed certi
Slide 8: A brief introduction to solar power technology and business models
A brief introduction to solar power technology and business models Technologies Business models ASAB’s focus area Solar PV Distributed solar PV High energy value No land disputes • Converts sunlight into • Supplies customers directly Long lifespan No losses electricity or through the grid Low mainte
Slide 9: Examples of projects owned by ASAB
Examples of projects owned by ASAB Fenghua Xuri Hongyu Co., Ltd. Ebara Great Pumps Co. Ltd. Ningbo Sente Auto Parts Co. Ltd. Capacity: 1.7 MW Capacity: 3.1 MW Capacity: 0.5 MW Location: Ningbo, Zhejiang Location: Wenzhou, Zhejiang Location: Ningbo, Zhejiang Advanced Solar Power Hangzhou’s Factory Sh
Slide 10: ASAB enables customers to buy electricity at a discount
ASAB enables customers to buy electricity at a discount For illustrative purposes ASAB owns the solar PV power plants 1 Electricity produced by ASAB’s solar PV plant Avg. 0.70 – 0.85 CNY/kWh subject to ~10-15% discount Factory owner Coal plant 2 ASAB sells to the grid Grid Co1 Avg. ~0.40 CNY/kWh Coa
Slide 11: ASAB's business model in practice – customer case study
ASAB’s business model in practice – customer case study SEKm ACCUMULATED PROJECT CASH FLOW Sohbi Craft Key project figures: 1.7 MW solar power plant in Jiangsu installed in September 2019 General assumptions: • 1,706 kW installed capacity • 95% of the electricity is sold to the • 10.5 SEKm investmen
Slide 12: The Chinese solar PV market is the world's largest
The Chinese solar PV market is the world’s largest, characterised by emerging market growth rates under a stable business environment For reference For reference Market attractiveness, solar PV Sweden China South Africa Egypt characteristics Solar irradiance levels Solar irradiance consistency over
Slide 13: Investment highlights
Investment highlights Large untapped market with structural growth in a low risk and subsidy independent 1 renewables niche 2 Outsized positive environmental impact from solar power investments in China 3 Attractive and low risk customer proposition within rooftop solar panels 4 Scalable and technol
Slide 14: 1. Large untapped market with structural growth
1. Large untapped market with structural growth in a low risk and subsidy independent renewables niche China is the World’s largest electricity market, China needs to add nearly the equivalent of today’s accounting for around one quarter of global US power system by 2040 to meet rising electricity e
Slide 15: 2. Outsized positive environmental impact from solar power investments in China
2. Outsized positive environmental impact from solar power investments in China Electricity mix 2019 Estimated CO2 emissions from electricity generation 6% g CO2-eq./kWh Δ=622 27% 23% 670 5% 68% 71% Reflects China’s reliance on coal for electricity production >80x1 Fossil fuels Nuclear Renewables Li
Slide 16: 3. Attractive and low risk customer proposition within rooftop solar panels
3. Attractive and low risk customer proposition within rooftop solar panels No investment Cost savings by utilising unused roof area Improved “green” profile Average plant has a capacity of 1.4 MW The customer gets a discount to the grid price of 10-15% which can be fixed or floating Key issue for m
Slide 17: 4. Scalable and technology agnostic business model (I/IV)
4. Scalable and technology agnostic business model with long-term cash flow visibility (I/IV) Customer split by size Customer split by industry Customer split by types Installed capacity by customers ~FTEs Installed capacity by customer industry Installed capacity by customer type 3,3% 1,2% 6,9% 12,
Slide 18: 4. Scalable and technology agnostic business model (II/IV)
4. Scalable and technology agnostic business model with long-term cash flow visibility (II/IV) Portfolio focused to eastern China Regional overview (MW) Operational assets Number of Share of Price for Province Capacity (MW) projects capacity customer Grid price Zhejiang 105.8 81 55.0% 0.69 0.48 Jian
Slide 19: 4. Scalable and technology agnostic business model (III/IV)
4. Scalable and technology agnostic business model with long-term cash flow visibility (III/IV) ASAB focuses on power generation without dependence on specific technology Panel production Sales Inspection Construction Generation Third party Third party Third party Third party produces solar panels h
Slide 20: 4. Scalable and technology agnostic business model (IV/IV)
4. Scalable and technology agnostic business model with long-term cash flow visibility (IV/IV) Historical installation costs and expected subsidies for ASAB’s greenfield projects by quarter 1 9,6 0,7 -44% 0,6 5,3 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020
Slide 21: 5. Large current project pipeline (I/II)
5. Large current project pipeline combined with attractive upside potential (I/II) Installed capacity supplemented by large and growing pipeline with ~70 potential customers spread across stages (MW) 30 June 2021 The investment committee evaluates the 192 proposed project 160 Signed agreements and u
Slide 22: 5. Large current project pipeline (II/II)
5. Large current project pipeline combined with attractive upside potential (II/II) Selected future potential growth avenues represent a considerable long-term opportunity Upselling to current customers Potential new segment Storage enables larger share of electricity BIPV1 segment consumption Highe
Slide 23: 6. Continuous accumulation of high yielding underlying assets (I/II)
6. Continuous accumulation of high yielding underlying assets (I/II) Strong project pipeline where financing is Strong top line growth despite decreased High operational profitability from small cost the major growth constraint subsidy levels on new projects base MW SEKm SEKm Net revenue, % of total
Slide 24: 6. Continuous accumulation of high yielding underlying assets (II/II)
6. Continuous accumulation of high yielding underlying assets (II/II) Comments Illustrative P&L and cash flow of a typical ASAB project 1• Assuming 15% yield Illustrative example 2• Assuming project level opex at 7% of project revenue. Operating costs relate mainly to solar 1,000 P&L Cash flow panel
Slide 25: >80x emission reduction compared to the Nordics
>80x emission reduction compared to the Nordics 20+ year contracts No investment for customers Target project yield 12–15% 160+ MW tangible pipeline
Slide 26: Financial targets
Financial targets Installed capacity Project yield Capital structure 1,000 MW 12-15% ≥25%2 Installed capacity by year-end Gross project yield1 Equity ratio 2024 For a foreseeable future, ASAB will focus on growth and does not intend to propose any dividend for the coming year. The Board will review
Slide 27: Board of directors
Board of directors Frederic Telander Stefan Ölander Ben Wu Gang Bao Vivianne Holm Patrick de Muynck Working Chairman of Board member Board member Board member Board member Board member the Board ▪ Working Chairman of the ▪ Board member of ASAB ▪ Founder and CEO of ▪ Since 2015, Gang has ▪ Vivianne h
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