Phoenix Solar Ag · HAM:PS4
Phoenix Solar — Q1 2010 Earnings Presentation
32 slides from Phoenix Solar's earnings presentation, May 11, 2010
Slide 1: Phoenix Solar AG 1st Quarter Results Conference Call
Phoenix Solar AG 1st Quarter Results - Conference Call - 11 May 2010 Dr. Andreas Hänel (CEO) Sabine Kauper (CFO) Phoenix Q1 2010 Results_final.ppt
Slide 2: Disclaimer
Disclaimer The content of this presentation is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss
Slide 3: Key Figures Q1 2010
Key Figures Q1 2010 Strongest 1st Quarter in Group History Revenues 80.4 €M (+118.5% versus Q1 2009) Components & Systems 53.7 €M (+88.4% versus Q1 2009) Power Plants 26.7 €M (+225.6% versus Q1 2009) International business 7.3 €M (+265% versus Q1 2009) EBIT 4.6 €M (Q1 2009: -7.4 €M) EBIT
Slide 4: Table of Contents
Table of Contents 1. Module Sales 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix Solar 4. Outlook 2010 4
Slide 5: Phoenix Solar's cumulated module sales surpass 500 MWp
Phoenix Solar’s cumulated module sales surpass 500 MWp MWp sold MWp sold 110.0 202.0 2009 2010 8 9% GR CA 120.0 72.0 37.0 38.0 39.0 30.0 15.0 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Thin-film 47.9% 51.9% 57.2% 74.2% share Phoenix Solar has the strategic target to grow faster than the world market and thus
Slide 6: Table of Contents: Financial Parameters
Table of Contents 1. Module Sales 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix Solar 4. Outlook 2010 6
Slide 7: Group Revenues: Q1'10 Strongest 1st Quarter in Group History
Group Revenues: Q1’10 Strongest 1st Quarter in Group History €M Revenue €M Revenue 473.0 2009 402.5 2010 230.8 260.1 115.7 80.4 89.7 119.0 36.7 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Revenues up 118.5% to 80.4 €M (Q1 2009: 36.7 €M) Q1 2010 strongest 1st quarter in sales in group history International
Slide 8: Group Earnings: Q1'10 Strongest 1st Quarter in Group History
Group Earnings: Q1’10 Strongest 1st Quarter in Group History €M EBIT €M EBIT 33.8 2009 16.5 2010 22.3 12.2 4.6 4.8 3.0 0.1 2006 2007 2008 2009 Q1 Q2 Q3 Q4 EBIT up more than 12 €M to 4.6 €M -7.4 (Q1 2009: -7.4 €M) EBIT-Margin Q1’10 strongest 1st quarter in Total Q1 Q2 Q3 Q4 EBIT in group history
Slide 9: Components & Systems Segment: Another Strong Quarter
Components & Systems Segment Another Strong Quarter €M Revenue €M EBIT 143.6 2009 2009 2010 2010 11.8 76.2 7.9 53.7 50.7 28.5 3.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues up 88.4% to 53.7 €M -4.1 (Q1 2009: 28.5 €M) -5.0 All-time high C&S EBIT-margin EBIT-Margin C&S of 14.8% Total Q1 Q2 Q3 Q4 C&S EBIT
Slide 10: Power Plant Segment: Strong in Sales, Still Weak in EBIT
Power Plant Segment Strong in Sales, Still Weak in EBIT €M Revenue €M EBIT 2009 87.2 2009 2010 2010 65.0 4.7 4.2 26.7 13.5 8.2 Q1 Q2 Q3 Q4 -0.4 Q1 Q2 Q3 Q4 Revenues up 225.6% to 26.7 €M -2.4 (Q1 2009: 8.2 €M) -3.3 PP EBIT suffers from projects with EBIT-Margin PP 2009 FIT finished in 2010 due to
Slide 11: Outlook: Order Backlog Supports Sales Growth 2010
Outlook: Order Backlog Supports Sales Growth 2010 €M Order Backlog Total free order backlog up 43% 375 yoy to 349 €M (Q1 2009: 244 €M) + 51% Free order backlog dominated by 148 C&S orders (65%) 248 Oder backlog up 27% compared to year-end 2009 (296 €M) 94 227 154 31.3.2009 31.3.2010 Components
Slide 12: Balance Sheet Affected by Project Delays due to Strong Winter
Balance Sheet Affected by Project Delays due to Influence of Strong Winter Period in 2010 Total Assets & Liabilities (€M) 31/03/2010 31/12/2009 Δ Analysis Δ Assets 246.8 182.2 - Current assets 237.3 172.9 Stock in warehouse: 92.7 €M. Little run-off due to of which: Inventory 144.6 69.2 strong winter
Slide 13: Working Capital Analysis
Working Capital Analysis Working Capital (€M) 31/03/2010 31/12/2009 Working Capital 96.6 92.8 Δ current assets 237.3 172.9 - Inventory 144.6 69.2 - Receivables from long-term construction contracts 30.0 41.1 - Cash and cash equivalents 21.1 24.5 Δ current liabilities (adjusted) 140.7 80.1 - Trade pa
Slide 14: Operating Cash Flow Analysis
Operating Cash Flow Analysis Operating Cash Flow (€M) 31/03/2010 31/03/2009 Operating Cash Flow Cash flow influenced by: -26.3 -38.2 Increase in inventories 14
Slide 15: Table of Contents: German Feed-in Tariff Changes
Table of Contents 1. Module Sales 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix Solar 4. Outlook 2010 15
Slide 16: Additional cuts in feed-in tariffs on 1 July 2010 (1/3)
Additional cuts in feed-in tariffs on 1 July 2010 (Status as of 10 May 2010) (1/3) One-time, additional reduction of the feed-in tariff on 1 July 2010 of: 16% for roof-mounted systems 15% for “other” ground-mounted systems 11% for ground-mounted systems on “conversion” sites (sites formerly
Slide 17: Additional cuts in feed-in tariffs on 1 July 2010 (2/3)
Additional cuts in feed-in tariffs on 1 July 2010 (Status as of 10 May 2010) (2/3) Changes in the eligibility of ground-mounted systems for feed-in tariffs: Ground-mounted systems on agricultural land no longer eligible for feed-in tariffs! Exemption made for projects that had already secured la
Slide 18: Additional cuts in feed-in tariffs on 1 July 2010 (3/3)
Additional cuts in feed-in tariffs on 1 July 2010 (Status as of 10 May 2010) (3/3) Increased incentive for self-use of solar power: The incentive for self-use (rather than feeding energy into the grid) has been set at: 8 €ct/kWh for newly installed systems for the amount of generated electrici
Slide 19: Limited Impact of German FIT Reductions on Phoenix Solar
Limited Impact of German FIT Reductions on Phoenix Solar 16% additional FIT cuts will not slow German roof-mounted market as end- customer’s returns will remain high (widely accepted target corridor is 6 – 8% IRR return) Majority of Phoenix Solar’s business is on roofs through the Components & S
Slide 20: Table of Contents: Outlook 2010
Table of Contents 1. Module Sales 2. Financial Parameters 3. German Feed-in Tariff Changes & Impact on Phoenix Solar 4. Outlook 2010 20
Slide 21: Highlights Q1 2010: Projects
Highlights Q1 2010 Projects Project realisation in Q1 in Germany delayed due to harsh winter conditions Phoenix Solar completed a 400kWp installation on the company building of Applied Materials in Singapore. Phoenix Solar used 5.7 m2 large-scale panels from Applied Materials’ SunFab Thin Film L
Slide 22: Highlights Q1 2010: Module Supply, Dividend Payment
Highlights Q1 2010 Module supply Phoenix Solar and MiaSolé signed a multi-year framework agreement for the delivery of CIGS thin film modules. In the context of this agreement, which runs until 2013, 4.5 MWp will be delivered in Q2 2010 Business supply relationship started with LDK and ET Solar
Slide 23: Significant Growth Drivers for 2010 and Beyond
Significant Growth Drivers for 2010 and Beyond Fundamental trends intact: significant PV world market growth of 30 – 50% in 2010 and 50 – 70% in 2011 expected German market may grow to 4 – 5 GWp in 2010 (from 3.8 GWp in 2009). 1st revenue peak expected end of June, 2nd revenue peak end of Decemb
Slide 24: Guidance 2010 & Outlook 2013
Guidance 2010 & Outlook 2013 Detailed Guidance 2010 Long-term Outlook 2013 after finalisation of the EEG Maintained In 2010 Phoenix Solar again Sales: 1.5 €Bil. expects significant volume growth, EBIT: 100 €M increasing sales together with Positioning of Phoenix Solar improved profitability an
Slide 25: Summary: 2010 is going to be a strong year
Summary Q1 strongest quarter in sales and EBIT in group history Strong business in Q2 2010 to date both in Power Plants and Components & Systems segments Limited impact of German FIT reductions on Phoenix Solar Strong profitable growth again expected for 2010 with increasing international sa
Slide 26: Thank you for your attention!
Thank you for your attention! 26
Slide 27: Financial Calendar
Financial Calendar 11 May 2010 Results 1st Quarter (conference call) 16 June 2010 Annual General Meeting 11 August 2010 Results 1st Half (conference call) 10 November 2010 Nine-Month Results (conference call) 27
Slide 28: Contact Details
Contact Details Anka Leiner Head of Investor Relations Tel.: +49 (0)8135 938 -315 Fax: +49 (0)8135 938 -399 E-mail: a.leiner@phoenixsolar.de 28
Slide 29: Phoenix Solar at a Glance
Phoenix Solar at a Glance Founded Nov. 1999, headquartered near Munich, global workforce >300 One of the leading globally active PV system integrators (3 continents, 8 countries) CAGR 2000 – 2009 revenue: 70% Continuously profitable since 2004 Stock-listed since November 2004, TecDAX-liste
Slide 30: Offering to the Customer Segments
Offering to the Customer Segments Components & Systems Power Plant Sales Power Plants Investor Business 0,1 Residential MWp Commercial 1 MWp Large-Scale 10 MWp 1 kWp* 20 kWp 500 kWp 1 MWp 5 MWp 10 MWp+ Phoenix Solar’s business model covers all PV system sizes: • Components & Systems 1kWp - 1 MWp • P
Slide 31: Focused Business Model
Focused Business Model Focus on Photovoltaics Exclusively active in the field of photovoltaics, the market segment of renewable energies with the highest growth rate Focus on PV System Technology Focus on core competence of high-yield, long-lasting and profitable PV systems System integrators
Slide 32: Worldwide Company Locations in 8 Countries and 3 Continents
Worldwide Company Locations in 8 Countries and 3 Continents Phoenix Solar AG, Germany (Since Nov. 1999) Phoenix Solar SAS, France (Since Sept. 2009) Phoenix Solar, Phoenix Solar USA S.L., Spain (coming H1 2010) (Since Apr. 2006) Phoenix Solar Phoenix Solar S.r.l., Italy (Since July 200