7c Solarparken Ag · XETR:HRPK
7c Solarparken — Q1 2023 Earnings Presentation
30 slides from 7c Solarparken's earnings presentation, Jun 1, 2023
Slide 1: Investor Call Q1 2023 Results & Annual Outlook
01-June-2023 27 Q INVESTOR CALL Q1 2023 Results & Annual Outlook
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitute an invitation to purchase any securities of 7C SOLARPARKEN AG. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness. Certain statements contai
Slide 3: Profile
CONTENT Q PROFILE 3
Slide 4: Business Model: Pure PV Owner & Operator with Focus on Germany and Belgium
BUSINESS MODEL Pure PV Owner & Operator with Focus on Germany and Belgium IPP PORTFOLIO ASSET MANAGEMENT PV ESTATE CASH FLOW GENERATOR SYNERGIES LONG-TERM VALUE Acquisition of PV parks Recurring fees Internalising lease cost New-build development Economies of scale Repowering potential Optimise & op
Slide 5: Capacity Build-up Continues in line with Management Planning
CAPACITY BUILD-UP CONTINUES in line with Management Planning CAPACITY TARGETS IN MWP 1.000 1.000 KEY TARGETS 900 ▪ In Q1’23: already 1/3 of annual target achieved 800 ▪ 2023: + 60 MWp 700 ▪ 2024: + 65 MWp 600 ▪ Long-term vision: 1 GWP by 2030, at the latest 525 500 460 401 ▪ Acquisitions of parks 40
Slide 6: Financial Profile: Record EBITDA in 2022 with Equity Ratio of 41%
FINANCIAL PROFILE Record EBITDA in 2022 with Equity Ratio of 41% EBITDA AND YIELD (EBITDA/TOTAL ASSETS) CASH FLOW PER SHARE & EQUITY RATIO 45% 1,20 75,00 40% 40% 14,0% 39% 13,6% 1,00 65,00 35% 35% 12,0% 55,00 32% 30% 30% 0,80 10,2% 29% 10,0% 9,6% 9,5% 9,4% 9,6% 45,00 8,9% 25% 25% 8,0% 23% 0,60 74,7
Slide 7: Valuation: Leverage Potential & Gap to Capacity
VALUATION Leverage Potential & Gap to Capacity NET DEBT 2022 / EBITDA 2023 MARKET CAP VERSUS # MWP Innergex 7,8 450 Neoen 6,2 Scatec Solar 400 6,1 Boralex 4,7 350 Northland Power 4,2 300 Encavis 4,2 Clearvise 4,1 250 Grenergy 3,6 200 Solaria 3,5 150 Voltalia 3,0 7C Solarparken 2,9 100 Orsted 2,9 50
Slide 8: Quality of IPP Portfolio
CONTENT Q QUALITY OF IPP PORTFOLIO 8
Slide 9: 424 MWp Portfolio: Run-rate EBITDA ca. EUR 57 Mio
424 MWP PORTFOLIO Run-rate EBITDA ca. EUR 57 Mio (*) MWp kWh/kWp MWh EUR/MWh EUR Mio EUR Mio Capacity Yield Production Capture (*) Sales EBITDA LOCATION OF GERMAN PARKS > 2 MWP GERMANY 381 995 379 164 62 53 Freefield 291 1.009 293 153 45 38 Rooftop 84 857 72 223 16 14 Wind 6 2.287 13 88 1 1 BELGIUM
Slide 10: Cash Flows & Upside Value: Breakdown by Tariff and Year of Commissioning
CASH FLOWS & UPSIDE VALUE Breakdown by Tariff and Year of Commissioning COMMISSIONING YEAR AND AVERAGE FEED-IN TARIFF (EUR/MWH) PER YEAR PARKS WITH HIGH EBITDA PARKS WITH POWER PRICE OPTION VALUE 60 450 53 406 402 50 400 50 378 371 350 40 40 306 300 268 31 31 250 29 29 30 27 24 203 200 21 20 19 20 1
Slide 11: Capture Price Sensitivity
CAPTURE PRICE SENSITIVITY Δ EUR 5/MWh Market Price ~ Δ EUR 1 Mio EBITDA CAPTURE PRICE & EBITDA IN FUNCTION OF MARKET PRICE 250 EXPECTED LONG-TERM RANGE 231 215 200 200 185 172 161 EUR/MWh Capture Price 150 154 154 155 EUR Mio EBITDA 100 84 78 72 61 67 55 57 50 55 55 - 0 25 50 75 100 125 150 175 200
Slide 12: Consolidation of GSI III: Transfer of 21 MWp Parks into IPP Scope
CONSOLIDATION OF GSI III Transfer of 21 MWp Parks into IPP Scope ANSBACH BRODSWINDEN ERMLITZ MITTE ERMLITZ NORD GOLDBECK ROMERHUGEL SELB Commissioning 2012 2012 2012 2012 2012 2012 2012 Type of park Fixed (ground) Fixed (ground) Fixed (ground) Fixed (ground) Fixed (ground) Fixed (ground) Fixed (grou
Slide 13: Re-Powering Potential: First Projects as Part of a Bigger Story
RE-POWERING POTENTIAL First Projects as Part of a bigger Story beyond 2023 PV ESTATE PORTFOLIO HOLDS 184 HA / 77 MWP ▪ PAST: Re-Powering only possible after 20-years FIT period ▪ NEW LAW: Re-Powering possible with maintenance of FIT as long as the capacity does not exceed the initial volume. However
Slide 14: 2023 Markets Return to New Normal
CONTENT 2023 MARKETS RETURN TO “NEW NORMAL” 14
Slide 15: Commodity Prices Normalised
COMMODITY PRICES NORMALISED Sharp Fall in Natural Gas & Coal Prices COAL PRICE US$/TONNE CO2 PRICE EUR/TONNE NATURAL GAS PRICE TTF EUR/MWH OIL IN US$/BARREL 2023 MARKETS 15
Slide 16: Likewise Did the Power Price
… LIKEWISE DID THE POWER PRICE Spot Price fell back to EUR 100/MWh GERMAN SPOT PRICE EUR/MWH SINCE 2014 PV MARKET PRICE IN Q1’23 (EUR/MWH) 140 130 128 123 120 123 118 110 100 103 101 90 89 80 80 70 60 jan/23 feb/23 Mär 2023 apr/23 EPEX Spot Onshore wind PV 2023 MARKETS 16
Slide 17: Power Mix: Less Export of PV Overcapacity
POWER MIX: Less Export of PV Overcapacity since Nuclear End around Mid of April ‘23 GROSS ELECTRICITY PRODUCTION IN GERMANY 2023 RENEWABLES ~ 50% OF MIX IN Q1’23 (49% in Q1’22) 2023 MARKETS 17
Slide 18: Weather Conditions: March & April 2023 Extremely Poor
WEATHER CONDITIONS March (& April) 2023 Extremely Poor, Q1’23 -27% versus Q1’22 RELATIVE YIELD GERMANY “PV-ERTRÄGE” kWh/kWp Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR Q1 YTD (incl April) 2011 21 41 101 132 147 122 112 116 100 75 41 15 1.023 163 295 2012 26 47 93 100 138 118 125 130 96 62 2
Slide 19: Q1'23 Results
CONTENT Q1’23 RESULTS 19
Slide 20: New Investments 2023: Capacity of 24 MWp Added Year-to-Date
NEW INVESTMENTS 2023 Capacity of 24 MWP Has Been Added Year-to-Date ADDITIONS YTD 2023 Country MWP Area Type Model kWh/kWp IBN Grid Belgium 1,6 KVD Houtbouw, Turnhout Belgium 0,2 Rooftop own development PPA 850 2023 Q2'23 CKV, Waregem Belgium 0,1 Rooftop own development PPA 850 2023 Q2'23 Carrefour,
Slide 21: Q1'23 KPIs: Power Production Down by 13% Due to Bad Weather
Q1’23 KPI’S Power Production Down by 13% Due to Bad Weather OPERATIONALS MANAGEMENT COMMENTS 2023 Q1 2022 Q1 % GWh 51 59 -13% ▪ PRODUCTION: Dropped by 13% reflecting a weather-driven decline of 26% in kWh/kWp (solar + wind) 129 175 -26% specific yield and an increase of 18% in weighted operating cap
Slide 22: Q1'23 Financials: EBITDA Drops, but Still Above Guidance Value
Q1’23 FINANCIALS EBITDA Drops, but Still Above the Explicit Guidance Value FINANCIALS MANAGEMENT COMMENTS 2023 Q1 2022 Q1 % Revenues 10.1 14.1 -29% ▪ REVENUES: decreased by 29% as a result of falling capture price and less production. _ of which Power Sales 9.7 14.0 -30% Other operating income 1.7 0
Slide 23: Outlook 2023
CONTENT Q OUTLOOK 2023 23
Slide 24: 424 MWp Existing Portfolio: Grid Connections Progress as Planned
424 MWP EXISTING PORTFOLIO Grid Connections Progress as Planned STATUS OF THE CURRENT 424 MWP IPP PORTFOLIO MANAGEMENT COMMENTS 2 420 8 5 ▪ “TRAITSCHING” 8 MWP FREEFIELD: Running at 100% as from April ‘23. 11 12 19 400 ▪ “BURGWINDHEIM II” 11 MWP FREEFIELD: Fully constructed, grid connection 25 plann
Slide 25: Pipeline 2023: Capacity up to 460 MWp Quasi-Secured
PIPELINE 2023 Capacity up to 460 MWP Quasi-Secured, Financing in Place GROWTH PLAN 2023 (IN MWP) MANAGEMENT COMMENTS 480 ▪ 36 MWP (UP TO 460 MWP) FOR THE REST OF 2023 QUASI CERTAIN 460 18 ▪ Acquisition of existing PV Park ca. 10+ MWP in Germany: LOI signed, SPA in 440 18 execution. 420 23 ▪ Advanced
Slide 26: Power Price Curve: Forwards Lower Compared to Date of Guidance
POWER PRICE CURVE Forwards EUR 15/MWh Lower Compared to Date of Guidance FORWARD CURVE 2023-33 IN EUR/MWH (26/05/2023) FORWARD CURVE 2023-33 IN EUR/MWH (28/03/2023) OUTLOOK 2023 26
Slide 27: PPA & FFAV (Tender) Trend Stabilizing Between EUR 70-75/MWh
PPA & FFAV (TENDER) TREND Stabilizing Between EUR 70-75/MWh 10-YEARS PPA IN EUR/MWH (SOURCE: ENERVIS) PPA VERSUS FFAV/TENDER TARIFF IN EUR/MWH OUTLOOK 2023 27
Slide 28: Guidance 2023 Unchanged So Far
GUIDANCE 2023 Unchanged So Far Despite Negative Impact of Irradiation and Prices COMMENT ON GUIDANCE 2023 Normal Guidance Real Guidance MANAGEMENT VIEW Q1'23 Q1'23 Q1'23 2023 GWh 49 51 385 kWh/kWp 154 120 129 941 April '23 extremely poor, normalisation in May but high levels of Curtailments PV Power
Slide 29: Financial Calendar 2023
FINANCIAL CALENDAR 2023 Date Topic 12 June 2023 AGM 13 June 2023 Ex-Dividend 19 September 2023 H1 ‘23 Results 28 November 2023 Q3 ‘23 Results OUTLOOK 2023 29
Slide 30: Contact
CONTACT 7C SOLARPARKEN AG An der Feuerwache 15 95445 Bayreuth / Germany +49 (0) 921 23 05 57 77 www.solarparken.com ir@solarparken.com CONTACT 30