Slide 1: Analyst Presentation H1 2019 Results & Business Update
ANALYST PRESENTATION H1 2019 RESULTS & BUSINESS UPDATE 71 86 100 118 1542018 2202020 5002025 27.09.2019 1
Slide 2: Company Overview
COMPANY OVERVIEW BUSINESS MODEL & PORTFOLIO FINANCIAL POSITION C A PA C I T Y & M A R K E T C A P 2
Slide 3: Business Model & Portfolio
Business Model & Portfolio Pure-play German PV operator with 187 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 4: Business Model & Portfolio
Business Model & Portfolio Current IPP portfolio generates annual EBITDA of at least EUR 36.5 Mio. Portfolio characteristics LOCATIONS > 1 MW CAPACITY TARIFF YIELD REVENUES EBITDA MWp EUR/MWh kWh/kWp EUR Mio EUR Mio Freefield PV 100 230 1,018 23.3 20.7 Rooftop PV 82 237 908 17.8 14.9 Onshore wind 6
Slide 5: Financial Position
Financial Position Robust financials with latest dividend of EUR 0.11/share EBITDA EVOLUTION AND RETURN CASH FLOW PER SHARE AND EQUITY RATIO 0,70 35% 40,0 12,0% 30% ~30% 10.2% 29% ~9,0% 0,60 30% 35,0 9,6% 10,0% 25% 8,9% 0,50 23% 25% 30,0 7,6% 8,0% 25,0 0,40 18% 20% 0.60 20,0 5,4% 6,0% 0,30 > 0.50 15
Slide 6: Capacity and Market Cap
Capacity and Market Cap Track record of growth and capital appreciation 2018-19 CAPITAL-INTENSIVE GROWTH 2018 TO 220 MWP BY 2020 UP TO ~150 MWP 200 Capacity in MWp Market cap in EUR Mio THROUGH 200 ACQUISITION OF 190 190 DEVELOPER + 180 ALTERNATIVE 180 2016-17 FINANCING 170 GROWTH TO 115 MWP THROUGH
Slide 7: Strategic Plan
STRATEGIC PLAN TIER-TWO TA R G E T 2 0 2 0 : 2 2 0 M W P VISION 2025: 500 MWP 7
Slide 8: Tier-Two
Tier-Two Target: Tier-2 player to benefit from improved valuation and cost of capital RENEWABLES IPP’S IN WESTERN EUROPE MANAGEMENT COMMENT TIER 1+2 TIER 3 ▪ Tier 1+2 companies have potential for higher leverage and 3 000 attract cheaper debt due to their size. 2 500 ▪ Management’s observation is th
Slide 9: Target 2020: 220 MWp
Target 2020: 220 MWp Continuation of growth acceleration to meet 220 MWp BREAKDOWN OF BUILD UP PLAN TO 220 MW (STATUS NOV’18) MANAGEMENT INDICATION 250 220 ▪ 66 MWp planned additions: through own development and acquisition of operating parks 200 ▪ Budget: EUR 107 Mio. 154 ▪ Project financing: EUR 7
Slide 10: Vision 2025: 500 MW
Vision 2025: 500 MW Capturing future opportunities once the Tier-2 status is reached POTENTIAL POOL OF LARGER SCALE ACQUISITIONS & DEVELOPMENT CONSOLIDATION: 15 GWp existing PV installations > 1 MWp in Germany AUCTIONS: Special rounds in 2019-21, including innovative auctions PPA: Large scale opport
Slide 11: H1 2019 Results
H1 2019 RESULTS 2 0 1 9 J O U R N E Y S O FA R MARKET CONDITIONS H1 2019 FIGURES 11
Slide 12: 2019 Journey so far
2019 Journey so far Total return to shareholders +/- 25% driven by capacity expansion to 187 MWp SHARE PRICE 2019 KEY MILESTONES ATTAINED 3,50 1. Portfolio raised from 154 MWp to 160 MWp 3,40 3,30 5 2. Acquisition of 77 MWp “Asset & Fund Management” 3,20 business from Ernst Russ AG. 3,10 3,00 4 3. R
Slide 13: 2019 Journey so far
2019 Journey so far 17 MW added in the first-half, 33 MW on year-to-date basis GROWTH IN INSTALLED CAPACITY DURING 2019 (MWP) 190 187 MWp 185 Operational, grid-connected < 1Y 7.9 New-build, own development 7.8 180 New-build, turnkey EPC 7.1 Windparks 5.9 175 Operational, grid-connected > 1Y 4.7 171
Slide 14: 2019 Journey so far
2019 Journey so far PV Estate expanded by ca. 20% to 129 ha PORTFOLIO OVERVIEW 30.06.2019 LOCATION TYPE REGION SIZE HA MWP PV OWNER Sandersdorf Conversion land Sachsen-Anhalt 9.7 5.1 7C Solarparken Zerre Conversion land Sachsen 28.5 8.0 70% external Hausen Logistics Bayern 0.4 0.1 external Bayreuth
Slide 15: Market conditions
Market conditions PV and wind gain strength at the expense of coal in Germany’s H1’19 production mix BREAKDOWN BY SOURCE IN TWH MANAGEMENT COMMENT 80,0 70,0 67,2 ▪ Net PV output in Germany rose by 5.6% to 25.1 TWh, 60,0 mainly reflecting growth in installed capacity from 44.3 53,0 GWp at the end of
Slide 16: Output conditions
Output conditions Slightly better weather than long-term average during H1’19, in line with last year GLOBAL HORIZONTAL IRRADIATION IN GERMANY (DWD) kWh/m² jan feb mar apr may jun jul aug sep oct nov dec H1 Year 2019 21 52 75 138 146 200 170 147 632 2018 19 49 75 137 186 168 198 155 109 67 29 14 634
Slide 17: H1 2019 Figures
H1 2019 Figures Our installations produced 91 GWh (+21%) or 568 kWh/kWp (+3%- PRODUCTION OUTPUT +27% SPECIFIC YIELD +3% +27% +13% +25% +3% 170 568 159 150 127 407 340 91 72 161 Power production (GWh) Installed capacity (MWp) Weighted running Q1 Q2 H1 Q3 (*) capacity (MWp) kWh/kWp 2017 kWh/kWp 2018 k
Slide 18: H1 2019 Figures
H1 2019 Figures 11% increase in Power Sales to EUR 22.5 Mio YEAR-ON-YEAR GROWTH IN POWER SALES MANAGEMENT COMMENT +23% +13% +11% ▪ Portfolio power sales rose to EUR 22.5 Mio in H1’19 (+11%) on the back of higher production (+27%). The increasing 100 400 level of new-build installations is however ca
Slide 19: H1 2019 Figures
H1 2019 Figures EBITDA +19% to EUR 21.5 Mio. boosted by power sales and accounting impact (IFRS 16) on lease In Mio EUR H1’19 H1‘18 COMMENT Revenues 22.8 20.4 99% from power sales (+11%) Other income 1.9 1.0 o/w compensation for damage 0.9 0.1 Settlement with module supplier in Q1’19 o/w gain on bar
Slide 20: H1 2019 Figures
H1 2019 Figures Impact of IFRS 16: EBITDA EUR +0.5 Mio, bottom-line EUR -0.2 Mio. in TEUR H1 2019 H1 2018 as reported w/o IFRS 16 as reported Other operating expenses -2.507 -2.986 -2.752 due to Rental Expenses -44 -523 -414 EBITDA 21.468 20.990 17.990 Depreciations, amortizations and impairments -1
Slide 21: H1 2019 Figures
H1 2019 Figures Balance sheet longer due to IFRS 16, Equity Ratio still > 30% In Mio. EUR H1’19 31.12.2018 COMMENT ASSETS 389.3 345.0 Land & Property 10.2 9.6 New investments in PV Estate have lifted portfolio to 137 ha Solar- and Windparks 277.9 269.6 Includes installations under construction Right
Slide 22: H1 2019 Figures
H1 2019 Figures IFRS 16 impact on Balance Sheet: reducing Equity Ratio by 100 bps in TEUR 31.12.2018 Change 01.01.2019 as reported after first adoption IFRS 16 Solar installations 266.234 -3.447 262.787 Right of use Assets 0 16.087 16.087 Long term receivables 1.145 -876 269 Other amounts receivable
Slide 23: H1 2019 Figures
H1 2019 Figures Risks from “Colexon” legacy unchanged at EUR 2.0 Mio In Mio EUR H1’19 31.12.2018 COMMENT LONG TERM PROVISIONS 11.4 10.7 Decommissioning 9.3 8.5 Normal provisions increasing with capacity Technical warranties 1.3 1.3 EPC risks Contingent liabilities 0.7 0.7 Mainly litigation and claim
Slide 24: H1 2019 Figures
H1 2019 Figures Cash Flow Per Share at record level of EUR 0.33/share In Mio EUR H1’19 H1’18 COMMENT EBITDA 21.5 18.0 - Lease expenses (IFRS 16) - 0.5 - - Cash Interest paid -3.2 -2.7 H1’19 includes already annual cash interest payment on Schuldschein - Cash tax paid -0.3 -0.1 = Net Cash Flow 17.5 1
Slide 25: View on German PV Market
VIEW ON GERMAN PV MARKET PV COMPETITIVENESS 2 0 Y E A R S F E E D - I N TA R I F F S PA R I T Y & P PA 25
Slide 26: PV Competitiveness
PV Competitiveness Solar PV now the lowest-cost power generator, even cheaper than conventional power HIGHER EFFICIENCY FALLING MODULE COST MODULES LEVELISED COST OF DECLINES ELECTRICITY (LCOE) 2,80 Crystalline China 2,40 Crystalline Europe (Germany) 2,00 Crystalline Japan Thin film 1,60 1,20 0,80 0
Slide 27: 20 Years feed-in tariffs
20 Years feed-in tariffs FITs tariffs progressively dropping to wholesale price, but with 20 years certainty FIT AS PER EEG TABLE, FFAV AND MARKET PRICE EUR/MWH MANAGEMENT COMMENT 100 ▪ Wholesale market price currently around EUR 50/MWh, very 90 close to auction tariffs for freefield PV (FFAV). Mark
Slide 28: Parity & PPA
Parity & PPA Fashion words, but still inadequate returns particularly after the new Climate Package DISTRIBUTED GENERATION PARITY AT MEDIUM-VOLTAGE FREEFIELD PPA AT LARGET SCALE 160 ~ 150 140 120 100 81 80 80 64 5 60 40 Prices in EUR/MWh 20 - Industrial EEG levy for Imbalance risk Theoretical FIT, l
Slide 29: Contact 7C Solarparken AG
CONTACT 7C SOLARPARKEN AG An der Feuerwache 15 95445 Bayreuth / Germany +49 (0) 921 23 05 57 77 www.solarparken.com ir@solarparken.com 29