Gigasun AB · OMXSTO:GIGA
Gigasun AB — Advanced SolTech Sweden — Debt Investor Presentation (April 2019)
41 slides from Gigasun AB's debt investor presentation, April 2019
Slide 1: Investor Presentation – SEK 110m Green Senior Secured Bond Issue
Investor Presentation Advanced SolTech Sweden AB (publ) SEK 110m (or equivalent in EUR) Green Senior Secured Bond Issue April 2019
Slide 2: Disclaimer
Disclaimer This document is prepared by Advanced Soltech Sweden AB (publ) (the "Company") and is to be regarded as marketing material only and the information contained herein is offered to a limited group of investors and institutions, or advisors or representatives of such groups. This document is
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Type of clients: Retail clients/non-professional clients, professional clients and eligible counterparties, each as defined in Directive 2014/65/EU (as amended, "MiFID II"). Clients' knowledge and experience: Informed knowledge or experience with direct investment in bonds, an und
Slide 4: Summary of Risk factors
Summary of Risk factors The risks listed below are just a summary of the headlines of the risks related to an investment in this bond financing. For a more extensive description of the risk factors that may adversely affect the Company, please see the section ”Risk Factors” below. RISKS RELATING TO
Slide 5: Table of contents
Table of contents 6. Introduction 12. The Group 18. Financials 21. The Market 23. Q&A 26. Risk factors 33. Appendix 5
Slide 6: Summary
Summary Introduction The Group Financials The Market Q&A Risk factors Appendix About Advanced SolTech Sweden AB (publ) Advanced SolTech Sweden AB (publ) (”ASAB”) is a Swedish company active within power production in China. Through its subsidiary Advanced SolTech Renewable Energy Hangzhou Inc (“ASRE
Slide 7: Terms in brief
Terms in brief Introduction The Group Financials The Market Q&A Risk factors Appendix Issuer: Advanced SolTech Sweden AB (publ) Product: Green Senior Secured Corporate Bonds Initial Bond Issue: Approx. SEK 170 000 000 or equivalent in EUR First Subsequent Bond Issue: SEK 110 000 000 or equivalent in
Slide 8: Terms in brief (cont.)
Terms in brief (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix All Norwegian individuals and companies can invest in SEK-Bonds or EUR-bonds in the First Subsequent Bond Issue (“New NOK Investors”), upon which the Issuer shall compensate the New NOK Investor for the pot
Slide 9: Portfolio overview
Portfolio overview Introduction The Group Financials The Market Q&A Risk factors Appendix 80 18,5 years Current customers Average remaining maturity on roof-top contracts SEK 2 100m Expected remaining income from current contracts SEK 740m 93 MW Invested capital Total MW installed + 1000 Customers a
Slide 10: Investment highlights
Investment highlights Introduction The Group Financials The Market Q&A Risk factors Appendix • Customers include e.g. one of China’s largest wine and spirits manufacturer and Beijing National Customers Centre for Performing Arts • Well-diversified customer portfolio with 80 financially solid end cus
Slide 11: Business model
Business model Introduction The Group Financials The Market Q&A Risk factors Appendix Illustration Business model • The Group receives its income from its solar panels producing power • Every produced kWh is sold to the property owner and the Group also receives subsidies per produced kWh • ASRE alw
Slide 12: Collateral
Collateral Introduction The Group Financials The Market Q&A Risk factors Appendix Transaction and collateral Group structure**** • ASAB issues the subsequent Senior Secured Bonds and the net proceeds are used to finance the remaining part of the purchase price for the acquisition of the Target SolTe
Slide 13: About the Group
About the Group Introduction The Group Financials The Market Q&A Risk factors Appendix About ASAB and ASRE Board and management Frederic Telander – CEO and board member ASAB • The Group is an electricity producer in China, where ASRE is the operating company, and ASAB is a financial SPV in Sweden •
Slide 14: Selected customers
Selected customers Introduction The Group Financials The Market Q&A Risk factors Appendix National centre for performing arts Jiangsu Yanghe Brewery • The national centre for performing arts is a state-owned organisation, owning and • Yanghe Brewery is a Chinese wine and spirits producer managing th
Slide 15: Selected customers (cont.)
Selected customers (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Terumo Medical Products Hangzhou Zhejiang sci-tec University • ASRE’s customer is a subsidiary within the Terumo group, a medicine manufacturer • The university is publicly owned and located in Hangzhou
Slide 16: Selected customers (cont.)
Selected customers (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Facts Facts Facts Name: NingBo TaiMao Bicycle Name: China Star Optoelectronics Name: Zhejiang Jindun Fire Control Industry Co. Ltd Technology Co. Ltd Equipment Co. Ltd Location: Ningbo Location: Shenzhe
Slide 17: Peer ratios
Peer ratios Introduction The Group Financials The Market Q&A Risk factors Appendix EV/EBITDA Net Debt/EBITDA Etrion 21,8 Etrion 29,8 Scatec 5,5 Scatec 12,2 Azure Power 6,5 GCL New Energy 7,7 Azure Power 10,8 Group level* 5,9 GCL New Energy 8,7 Senior Bonds* 2,7 Average EV/EBITDA, peers 15 Implied EV
Slide 18: Financials
Financials Introduction The Group Financials The Market Q&A Risk factors Appendix Forecasts – pro forma rolling 12-months Leverage pro forma • All forecasted figures are based on the portfolio of solar power facilities in ASRE after • After the Subsequent Bond Issue the Net Debt/EBITDA the acquisiti
Slide 19: Financials (cont.)
Financials (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Growth realized in 2018 MW installed and acquired** • During 2018 total income in ASRE grew by 263%, from SEK 19,7m to SEK 51,8m* 100 90 • EBIT developed significantly, from approx. SEK 5,2m to approx. SEK 33,1
Slide 20: Market outlook
Market outlook Introduction The Group Financials The Market Q&A Risk factors Appendix Solar energy market Environmental factors • Global warming, pollution and climate change are one of the biggest challenges the ASRE will produce the equivalent of the electricity used in approx. 5 700 houses in wor
Slide 21: Market outlook (cont.)
Market outlook (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Policy and future demand in China • In China’s last five year plan it is stated that one of the largest challenges is the future energy demand, and factors connected to it such as pollution • International
Slide 22: Q&A
Q&A Introduction The Group Financials The Market Q&A Risk factors Appendix • Why does the group finance itself through corporate bonds? • The group has financed itself through equity contributions from the owners SolTech and ASP, bond issuances in ASAB and has the opportunity to also finance itself
Slide 23: Q&A (cont.)
Q&A (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix • How does this bond issue affect ASABs current outstanding bonds? • The use of capital of the Subsequent Bond Issue is partly to refinance an outstanding bonds of SEK 65,5m. ASAB will after the refinancing have three
Slide 24: Q&A (cont.)
Q&A (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix • How is my investment affected if the Issuer choose to apply multiple First Subsequent Issue Dates? • The volume of the First Subsequent Bond Issue is SEK 110m, and the Issuer has the possibility to use more than one
Slide 25: Risk factors
Risk factors Introduction The Group Financials The Market Q&A Risk factors Appendix THE INFORMATION IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO TECHNICAL, FINANCIAL OR ENVIRONMENTAL DUE DILIGENCE WITH RESPECT TO THE ISSUER HAS BEEN CONDUCTED WHATSOEVER. IN CONNECTION WITH THE INITIAL
Slide 26: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Interest rate risk The Group has incurred, and may in compliance with the limits set out in the final Terms and Conditions further incur, financial indebtedness to finance its business operations. Such financ
Slide 27: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Risks relating to insurance coverage ASRE generally maintains all risks insurance policies for its properties. There might be delays in procuring the insurance policy and during the delayed period its propert
Slide 28: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix ASRE's dependence on its direct or indirect shareholders ASRE has a slim organisation and a limited number of employees, this means that it is highly dependent on ASP's network and knowledge of the local PRC
Slide 29: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix RISKS RELATING TO THE BONDS Credit risk The Bondholders carry a credit risk towards the Issuer. The Bondholder's ability to receive payment under the Bonds is therefore dependent on the Issuer's ability to me
Slide 30: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix The Bondholders will initially be represented by the Agent in all matters relating to the transaction security. There is a risk that the Agent, or anyone appointed by it, does not properly fulfil its obligati
Slide 31: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix • the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or • the award dea
Slide 32: Risk factors (cont.)
Risk factors (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix controlling, directly or indirectly, more than 30 per cent. of the voting shares of the Issuer or (ii) the right to, directly or indirectly, appoint or remove all or a majority of the directors of the board o
Slide 33: Appendix
APPENDIX 33
Slide 34: Issuer updates
Issuer updates Introduction The Group Financials The Market Q&A Risk factors Appendix Updates since the initial bond issue Cooperation agreement with the Jiangsu province Since the initial bond issue the following has occurred for Advanced SolTech Sweden AB In March 2019 ASAB entered an exclusive co
Slide 35: Green Bond Framework
Green Bond Framework Introduction The Group Financials The Market Q&A Risk factors Appendix Eligible projects and assets Management of proceeds Second-opinion by CICERO • ASAB had the Norwegian institute CICERO evaluate • Eligible projects and assets are new, under • Net proceeds shall be closely fo
Slide 36: Financial statements in short
Financial statements in short Introduction The Group Financials The Market Q&A Risk factors Appendix ASAB income statement 01/01/2018 – 31/12/2018 (unaudited)* ASRE income statement 01/01/2018 – 31/12/2018 (unaudited) Figures in tSEK 2018 2017 Figures in tSEK*** 2018 Revenue** 19 510 8 370 Revenue 5
Slide 37: Owners
Owners Introduction The Group Financials The Market Q&A Risk factors Appendix SolTech Energy Sweden AB (publ) Board and Management SolTech Frederic Telander – Chairman of the board Stefan Ölander – CEO and board member • SolTech is a Swedish company listed on Stockholm First North stock exchange wit
Slide 38: Owners (cont.)
Owners (cont.) Introduction The Group Financials The Market Q&A Risk factors Appendix Advanced Solar Power (Hong Kong) Ltd. Key financials* • The ASP-group owns 49% of the Issuer and is a solar cell producer ✓ Revenue of SEK 366m • The company was founded in 2007 by professor Xuanzhi Wu and Ben Wu b
Slide 39: Solar power production
Solar power production Introduction The Group Financials The Market Q&A Risk factors Appendix Value chain Consumer ASRE Purchases and uses the power produced by the producer Power producer Sensitive to price changes from Owns and manages the installations power producers as it has no customer to tra
Slide 40: Solar power
Solar power Introduction The Group Financials The Market Q&A Risk factors Appendix Types of solar cells Differences between c-Si and CdTe solar cells • Solar Cells (photovoltaics) are produced in two formats, crystalline-silicon solar cells CdTe thin film cells C-Si cells (c-Si) and thin film solar
Slide 41: How to invest
How to invest Introduction The Group Financials The Market Q&A Risk factors Appendix ASAB has engaged JOOL Markets AS as financial advisor for this transaction To invest in this bond please contact your broker in JOOL Markets Only registered clients of JOOL Markets may participate in the transaction
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