Soltec Power Holdings Sa · BME:SOL
Soltec Power Holdings Sa — H1 2024 Earnings Presentation
54 slides from Soltec Power Holdings Sa's earnings presentation, Feb 27, 2025
Slide 1: H1 2024 Financial Results & Strategic Plan
H1 2024 FINANCIAL RESULTS & STRATEGIC PLAN 27 February 2025
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Soltec Power Holdings, S.A. (“Soltec” or “Company”) exclusively for use during the financial results presentation for the six-month period closed on June 30th, 2024. Therefore, this document may not be disclosed or published, nor used by any other person
Slide 3: Disclaimer
DISCLAIMER The Company understands that alternative performance measures should be considered by users of financial information as complementary to the magnitudes presented in accordance with the presentation bases of the consolidated annual accounts, but in no case as substitutes for them. The Comp
Slide 4: Agenda
AGENDA H1 2024 FINANCIAL RESULTS 01 KEY HIGHLIGHTS 02 BUSINESS UPDATE 03 FINANCIAL UPDATE 04 STRATEGIC PLAN 05 CLOSING REMARKS 06 APPENDIX
Slide 5: Key Highlights
01 KEY HIGHLIGHTS H1 2024 RESULTS
Slide 6: Soltec at a Glance – First Half 2024
SOLTEC AT A GLANCE – First Half 2024 X Share of revenues over total, % Revenues, 2024, €Mn Industrial Energy Trackers Services – EPC and BOP Services - O&M Development Asset Management Supply of trackers for ground Delivery of end-to-end EPC Delivery of Operation and Development of solar photovoltai
Slide 7: Preparing the Company for Sustainable and Profitable Growth
PREPARING THE COMPANY FOR SUSTAINABLE AND PROFITABLE GROWTH FROM: TO: “Vertical Integration” approach “Core Business Focus” approach Solar Tracker Core Business Develop Build O&M Own (IPP) EPC OEM Tracker Tracker Manufacturing Project Operation & and Supply Development Maintenance Value accelerator
Slide 8: New Management Structure
NEW MANAGEMENT STRUCTURE Combining Soltec know-how and leading position with solid industry expertise Mariano Berges Andrés Carretero Mikel de Irala CEO and Board Member CFO COO Mariano has 20+ years in Andrés has over 20 years of Mikel has an MBA from the London renewable energy, managing +20 exper
Slide 9: Key Competitive Advantages for Deploying 18.7 GW of Solar Trackers
KEY COMPETITIVE ADVANTAGES FOR SUCCESSFULLY DEPLOYING 18.7 GW OF SOLAR TRACKERS Competitive advantages Description / Examples Detailed next Delivering 18.7 GW of solar trackers until June 2024 Recognized track Serving largest utilities/ IPPs in the PV market which have developed record in the in
Slide 10: H1 2024 Key Highlights - SPH
H1 2024 KEY HIGHLIGHTS - SPH KEY FINANCIAL METRICS(1) € Mn H1 2024 H1 2023 Chg. Revenues 236.5 184.5 52.0 Adj. EBITDA (6.3) (10.2) (3.9) Net Profit (125.9) (14.4) (111.5) (1) Includes the result of Soltec Power Holding S.A. SPH net profit is not included in the energy and industrial breakdown and am
Slide 11: H1 2024 Key Highlights - Industrial
H1 2024 KEY HIGHLIGHTS - INDUSTRIAL KEY FINANCIAL METRICS(1) € Mn H1 2024 H1 2023 Chg. Revenues 230.9 174.8 56.1 EBITDA (23.2) (7.8) (15.4) Adj. EBITDA 2.5 (7.6) 10.1 EBT (35.2) (14.2) (21.0) (1) Includes the structural costs and financial cost of Soltec Energías Renovables, S.L.U. These costs are n
Slide 12: H1 2024 Key Highlights – Industrial: Trackers
H1 2024 KEY HIGHLIGHTS – INDUSTRIAL: TRACKERS • Cash constraints derived from Bill and Hold contracts, has impacted project execution, generating cost overrun and triggering Liquidated Damages for delays. • Liquidated Damages as of 06.30.24 are reflected as a decrease in revenue recognition for the
Slide 13: H1 2024 Key Highlights - Energy
H1 2024 KEY HIGHLIGHTS - Energy KEY FINANCIAL METRICS(1) € Mn H1 2024 H1 2023 Chg. Revenues 5.7 9.8 (4.1) EBITDA (34,4) (8.3) (26.1) Adj. EBITDA (1.0) (1.3) (0.3) EBT (56.2) (6.3) (49.9) € Mn (1) Includes the structural cost and financial cost of Soltec CAP S.L. These costs are not included in the E
Slide 14: Business Update
02 BUSINESS UPDATE H1 2024 RESULTS
Slide 15: Trackers
TRACKERS
Slide 16: Well recognized and proven track record in the solar tracker market
Soltec has a well recognized and proven track record in the solar tracker market, collaborating with leading global PV players Soltec’s installed solar trackers, GW Main utilities/IPPs served by Soltec Annual additions Initial installed capacity 18.7 17.7 1,0 15.6 2,1 3,8 +58% p.a. 11.8 3,4 8.4 6.1
Slide 17: Backlog and Pipeline
BACKLOG AND PIPELINE February 2025 • The lack of bank guarantees and surety bonds since May 2024 have impacted our backlog €46 Mn €1533 Mn and the ability to secure new contracts in the short term. • Despite this, we have built a strong pipeline, exceeding €1.5 billion with a probability of BACKLOG
Slide 18: Flexible and Innovative Solutions
FLEXIBLE AND INNOVATIVE SOLUTIONS Trackers 1-in-Portrait Trackers 2-in-Portrait SFONE SFONE-USA SFONE X SF7 SF7-USA • SI M PLI F I ED EN GI N EERI N G TAILORED FOR U.S. THE LONGEST LENGTH • PRODUCTION DENSITY TAILORED FOR U.S. 5% fewer piles then competitors +5-6% production thanks to more PROJECTS
Slide 19: 4x4 Powerful innovation, integrated into our trackers
4x4 Powerful innovation, integrated into our trackers The 4x4 functionality is specifically crafted to enhance adaptability to all types of terrain. It enhances the possibilities of the SFOne, offering a wide range of configurations to fit any setup with 2 or 3 strings per row. 90% REDUCTION OF CIVI
Slide 20: Agrivoltaics
AGRIVOLTAICS Soltec: Leading the Agrivoltaic Revolution Soltec continually innovates in solar energy integration. Our SF7 and SFOne trackers, adjustable from 0.5 m to 2.1 m, are ideal for agricultural use. With agrivoltaics becoming mandatory in markets like Italy and France, Soltec stands unmatched
Slide 21: FLOTUS
FLOTUS Tracking the sun in the harshest onshore waters FLOTUS is the first solar tracker with a nautical design. Developed by Soltec's innovation team, FLOTUS is our response to the need of adapting utility-scale energy generation to floating photovoltaics. • Broad-Range Tracking System • Robust Flo
Slide 22: Energy
ENERGY
Slide 23: Energy
ENERGY 10.3 GW PIPELINE OF PROJECTS UNDER DEVELOPMENT IN 5 ASSETS IN OPERATION AND UNDER CONSTRUCTION DIFFERENT COUNTRIES Operationalassetswillberotatedtothirdparties. Developmentassetsareintendedtoberotateduponreaching Ready-to- Buildstatuswitharighttomatchfortrackersupply YTD DATA Advanced Early I
Slide 24: Financial Update
03 FINANCIAL UPDATE H1 2024 RESULTS
Slide 25: Soltec Power Holdings
SOLTEC POWER HOLDINGS (1) Income Consolidated Statement Highlights H1 2024 VS. H1 2023 •Revenue Growth •Revenues reached €236.5M, marking a €52M increase compared to H1 2023 (+28% YoY). € Mn H1 24 H1 23 24 vs.23 •Growth driven by higher tracker sales and increased project execution. •Adjusted EBITDA
Slide 26: Industrial
INDUSTRIAL (1) Income Statement Highlights H1 2024 VS. H1 2023 QUARTERLY EVOLUTION (2023) € Mn H1 24 H1 23 24 vs.23 € Mn Q1 24 Q2 24 Q2 24 vs.Q2 23 Revenues 230.9 174.8 56.1 Revenues 126.4 104.5 1.0 Adj. EBITDA(2) 2.5 (7.6) 10.1 Adj. EBITDA 6.7 4.2 8.6 EBITDA Margin 5.3% 4.0% 8.3 Trackers Constructi
Slide 27: Energy
ENERGY (1) Income Statement Highlights €(3.2) Mn €2.2 Mn Adj. EBITDA Adj. EBITDA H1 2024 VS. H1 2023 Development Asset Management € Mn H1 24 H1 23 24 vs.23 •Revenues: €5.7M (-€4.1M YoY) due to a slowdown in project sales. •Adjusted EBITDA: -€1.0M (vs. -€1.3M in H1 2023), including: Revenues 5.7 9.8
Slide 28: Cash Flow as of June 30th, 2024
Cash Flow as of June 30th, 2024 € Mn 28
Slide 29: Net Debt
NET DEBT SOLTEC 30 June 2024 € Mn INDUSTRIAL ENERGY DEBT 108 DEBT LINKED TO PROJECTS 146 NET DEBT 85 NET DEBT 142 (1) IFRS 16: 22 GROSS FINANCIAL DEBT: 254 NET FINANCIAL DEBT: 227 (1) Financial liabilities related to leases (IFRS 16). 29
Slide 30: Syndicated Facility Restructuring
SYNDICATED FACILITY RESTRUCTURING (Trackers division) • RCF was accelerated in September 2024 as a result of one of the lenders decision not to extend its maturity. • As a consequence of that, Soltec had to call for pre insolvency according to Bankruptcy law article 585, in order to start negotiatio
Slide 31: Strategic Plan
04 STRATEGIC PLAN H1 2024 RESULTS
Slide 32: Back to a Value Generating Businesses
BACK TO A VALUE GENERATING BUSINESSES Core Business Focus approach • Soltec value proposition is to i) focus on its core business (tracker supply), executing a transformational plan to optimize operating costs Solar Tracker and enhance margins , ii) discontinue the Core Business construction activit
Slide 33: Reposition Soltec as a Leading Tracker Supplier
REPOSITION SOLTEC AS A LEADING TRACKER SUPPLIER #10 #11 Soltec #12 #13 Historical market share for trackers Market share #8 2% #9 2% 2% 1% (until 2023) for 2023 3% 3% #1 25% #7 #3 position in 2017 and 2019 5% #6 6% #11 #13 Rest of competitors #9 #12 1% 2% 5% 3% #10 2% #5 10% 2% #2 #8 #1 17% 3% 28% #
Slide 34: Growing Market: Solar to be a major renewable technology
1 Growing Market: Solar to be a major renewable technology Projections on power generations sources to cover electricity demand Tailwinds for solar energy development Global projected power generation1, Thousand TWh CAGR 2023-50, % The United States will have a high-energy Historical Projected Other
Slide 35: Growing Market: Increasing tracker penetration
1 Growing Market: Increasing tracker penetration, with ~75% of tracker additions in 2024-28 focused North America Europe Latin America ROW on key continents for Soltec … mainly driven by Solar PV installations (and share of trackers) expected to increase until the end of the decade… key continents f
Slide 36: Target Markets: Based on attractiveness and capabilities
2 Target Markets: Based on attractiveness and capabilities Geographic strategy designed based on attractiveness and capability enter with EMEA (Spain and Italy), USA and LATAM (Brazil) as key geographies Geographies were evaluated against a set of … leading to selection of target markets criteria… f
Slide 37: Target Markets: USA as a key market for growth
2 Target Markets: USA as a key market for growth Soltec to consolidate as one of the largest tracker supplier in the US in 2026 Right to play How to win Active footprint in the USA with +3 GW 100 Achieve 100% local content requirement installed since 2015. % in 2026 Serving largest utilities/develop
Slide 38: Historical Margins - Business Outlook
3 Historical Margins - Business Outlook Industry Benchmark & Competitive Landscape Leading peers in the sector maintain high gross margins (above 30%) and have progressively improved them getting to EBITDA margins in the range of 20%. Market fundamentals remain strong, with efficiency gains and cost
Slide 39: Transformation Program - Strategic Actions
4 Transformation Program - Strategic Actions Transformation Program built on 11 strategic workstreams: • Strengthening business fundamentals – operational efficiency & capability building 45+ initiatives to • Market and portfolio optimization – market focus & product alignment • Structural and finan
Slide 40: Innovation as a differential factor: Agrivoltaics and floating
5 Innovation as a differential factor: Agrivoltaics and floating Product: Agrivoltaics and floating with potential to contribute to value creation in the upcoming years. Key geographies, value proposition and plan of Soltec Agrivoltaics Key geographies – Italy as the largest market driven by local a
Slide 41: Soltec has stood for innovation; pioneering products
Soltec has stood for innovation; pioneering products (2P), and leading innovation floating and agrivoltaics PV trackers 2P Trackers Floating PV Trackers Agrivoltaics PV Trackers • Soltec was one of the pioneers to • Soltec has recently launched • Soltec has long-lasting relationship launch 2P tracke
Slide 42: Closing Remarks
05 CLOSING REMARKS H1 2024 RESULTS
Slide 43: Soltec's Vision and Value Proposition
SOLTEC’S VISION AND VALUE PROPOSITION Vision Value proposition Footprint Soltec is a global Top-notch products Soltec operating leading Design top-notch products leveraging “design-to-value” globally manufacturer of Solar PV trackers Double-down on innovative solutions (i.e., agrivoltaics, Core aimi
Slide 44: "Core Business Focus" Approach
“CORE BUSINESS FOCUS” APPROACH Soltec’s strategy will focus on its core business (tracker supply) while maintaining adjacent activities as accelerator (project development) and assurer (O&M) 1 2 3 TRACKERS DIVISION ENERGY DIVISION FINANCIAL DISCIPLINE Strong operational Portfolio evolving, adding ne
Slide 45: Q&A
Q&A H1 2024 RESULTS
Slide 46: Appendix
06 APPENDIX H1 2024 RESULTS
Slide 47: Trackers: Pipeline Breakdown By Probability
TRACKERS Pipeline Breakdown By Probability Probability of execution of potential projects. Status Probability Contract Signed 100% MoU (Existing Customer) 100% MoU (New Customer) 90% LOI (Existing Customer) 80% Contract under Negotiation (Existing Customer) 70% LOI (New customer) 70% Contract under
Slide 48: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (€, 000) H1 2024 H1 2023 Revenue 236,485 184,513 Changes in inventories of finished goods and work in progress (1,637) (153) Other operating income 939 2,223 Works carried out by the Group for its assets 2,365 8,422 Supplies (169,048) (116,933) Personnel expenses (32,93
Slide 49: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (€, 000) 30.06.24 31.12.23 SHAREHOLDERS' EQUITY AND LIABILITIES 30.06.24 31.12.23 NON-CURRENT ASSETS SHAREHOLDERS' EQUITY Capital and reserves 22,847 22,847 Intangible assets 30,000 36,777 Share capital 22,847 22,847 Property, plant and equipment 123,442 166,807 Sha
Slide 50: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS (€, 000) H1 2024 H1 2023 Profit/(loss) before tax (94,775) (21,931) Adjustments to the profit / (loss) 90,836 10,528 Changes in net working capital 5,772 (31,817) Other operating cash flow (12,088) (10,931) Cash flows from operating activities (10,255) (54,151) C
Slide 51: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES GROSS MARGIN NET MARGIN Net turnover + Changes in inventories of finished goods and work in Gross margin - Other personnel expenses - Other operating expenses + progress - Supplies Losses, impairment and changes in provisions for trading operations + The Parent Compa
Slide 52: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES NET MARGIN ON SALES EBITDA Net margin / net turnover Net Margin + Other operating income - Losses, impairment losses and The net margin on sales is considered by the group’s management as a measure changes in provisions for trading operations of the performance of it
Slide 53: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES BORROWINGS NET FINANCIAL DEBT Current bank borrowings + Non-current financial liabilities + Other Borrowings - Current financial assets - Cash and cash equivalents current financial liabilities + Derivatives (excluding those other components of cash that are pledged
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Soltec Power Holdings — H1 2024 Earnings Presentation on 6ix