Soltec Power Holdings Sa · BME:SOL
Soltec Power Holdings Sa — Investor Presentation (April 2024)
54 slides from Soltec Power Holdings Sa's investor presentation, April 2024
Slide 1: Corporate Presentation April 2024
CORPORATE PRESENTATION April 2024
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Soltec Power Holdings, S.A. (“Soltec”) exclusively for use during the corporate presentation for the twelve- month period closed on December 31st, 2023. Therefore, this document may not be disclosed or published, nor used by any other person or entity, f
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
01 KEY HIGHLIGHTS 02 BUSINESS UPDATE 03 FINANCIAL UPDATE 04 ESG 05 CLOSING REMARKS 06 APPENDIX AGENDA CORPORATE PRESENTATION
Slide 5: Key Highlights
01 KEY HIGHLIGHTS CORPORATE PRESENTATION
Slide 6: Soltec at a Glance
SOLTEC AT A GLANCE BUSINESS AND GEOGRAPHICAL DIVERSIFICATION EUROPE 755 MW 4,785 MW INDUSTRIAL DEVELOPMENT USA 25 MW 5 MW CONSTRUCTION (4) OPERATION (3) 317 MW 100 MW INDUSTRIAL DEVELOPMENT 2 PRODUCTION 1 LOGISTIC FACILITIES (1) CENTER(2) 1 LOGISTIC CONTRIBUTION TO REVENUES CENTER (2) 29% CONTRIBUTI
Slide 7: A Specialized Leading Global Solar Player
A SPECIALIZED LEADING GLOBAL SOLAR PLAYER TRACKERS LEADING SOLAR TRACKER SUPPLIER ENERGY DEVELOPMENT & ASSET MANAGEMENT 2023 TRACKERS UNDER OPERATION & 2023 ASSET DISPOSAL SUPPLIED GROSS MARGINS CONSTRUCTION 2.1 GW 28% 501 MW 1.4 GW TRACK RECORD PIPELINE UNDER DEVELOPMENT 18 GW 13 GW • Global tracke
Slide 8: Increasing Value Generation
INCREASING VALUE GENERATION INSTALLATION / POWER GENERATION DEVELOPMENT EQUIPMENT CONSTRUCTION (Ownership) PROJECT DEVELOPMENT TRACKER SUPPLIER CONSTRUCTION SERVICES ASSET MANAGEMENT 1 Early-Stage Development 1 Project Engineering 1 Financing Closing FEED ORDER Plant 2 Permiting FLOW 2 Onsite Servic
Slide 9: Market Trends
MARKET TRENDS THE COMPANY IS WELL POSITIONED TO FACE SHORT -TERM AND LONG-TERM TRENDS LONG-TERM TRENDS Energy Energy Electrification Decarbonization decentralization independence Geopolitical tensions New technologies SHORT-TERM TRENDS 1. Interest rates 2 Prices of electricity 3. Supply chain 4. Per
Slide 10: European Union: Solar PV Largest Generation Growth
SOLAR PV IS THE LARGEST ABSOLUTE GENERATION GROWTH OF ALL RENEWABLES Over 900 GW of solar trackers expected to be installed between 2023 and 2030 SUPPORTIVE RENEWABLES & SOLAR PV STRONG TRACKER POLICIES GROWTH POTENTIAL VALUE PROPOSITION • REPowerEU Plan: 45% EU’s renewable energy target for EUROPEA
Slide 11: In a Context with Strong Targets Worldwide
IN A CONTEXT WITH STRONG TARGETS(1) WORLDWIDE 2024 2024-27 Geographical diversified portfolio improving risk/return Europe and US platform with tier 1 LatAm exposure 8.2 GW 29.2 GW 28.7 GW Tier 1 countries with high 5.5 GW 131.6 GW growth for renewable 30.2 GW energies 3.8 GW 3.6 GW 12.6 GW Secure r
Slide 12: Business Update
02 BUSINESS UPDATE CORPORATE PRESENTATION
Slide 13: Trackers
TRACKERS
Slide 14: What Is a Solar PV Tracker?
WHAT IS A SOLAR PV TRACKER? MAIN TRACKER COMPONENTS 1P SOLAR PV TRACKER 2P SOLAR PV TRACKER TRACKER PV PLANT IMPACT ▪ Solar trackers increase production Piles between 15-25% vs. fixed tilt(1) ▪ Extended production hours: producing more energy when the cost of electricity is typically higher Solar PV
Slide 15: Solar Tracker Market Continues to Grow
SOLAR TRACKER MARKET CONTINUES TO GROW WITH A STRENGTHENED VALUE PROPOSITION TRACKER VS FIXED-TILT INSTALLATIONS (EXCLUDING CHINA) (1) • Solar tracker installations (ex-China) are expected to grow on average 15% annually from 2023 to 2025 • Solar trackers are expected to reach 55% of total installat
Slide 16: Successfully Ramping Up Growth with Visibility on Execution
SUCCESSFULLY RAMPING UP GROWTH WITH VISIBILITY ON EXECUTION 2.1 GW OF TRACKERS SUPPLIED IN 2023 17.7 GW Trackers supplied per year (GW) 15.6 Cumulative GW supplied GW 2.1 11.8 3.8 GW 8.4 GW 3.4 6.1 GW 2.2 3.2 2.9 0.4 0.7 1.7 GW 0.1 GW GW GW GW 1.5 0.3 0.3 1.0 0.1 2014 2015 2016 2017 2018 2019 2020 2
Slide 17: 2023 Estimated Market Share
2023 ESTIMATED MARKET SHARE(1) WORLD LATAM EMEA USA 7% 11% 14% 3% MARKET MARKET MARKET MARKET 66 GW 12 GW 16 GW 25 GW SOLTEC SOLTEC SOLTEC SOLTEC 4.3 GW 1.3 GW 2.2 GW 0.8 GW 1. Market share based on company estimates 17
Slide 18: Scaling Up Our Global Position
SCALING UP OUR GLOBAL POSITION STRONG MARKET POSITIONING WITH A GOOD DIVERSIFICATION BY COUNTRY EUROPE USA 29% 25% MW supplied: 755 MW Backlog: €499 Mn Revenues: €111 Mn Pipeline: €3,783 Mn MW supplied: 317 MW Backlog: €92 Mn Revenues: €94 Mn Pipeline: €5,461 Mn 2 PRODUCTION 1 LOGISTIC FACILITIES (1
Slide 19: Our Key Regions: Europe (Spain)
OUR KEY REGIONS: EUROPE (SPAIN) SIZE OF THE MARKET(1) 2024E 2024-27E 2024E 2024-27E Strategy in Spain and 16 GW 70 GW 8 GW 30 GW Europe Europe tracker installations 2023-2027 Spain tracker installations 2023-2027 25,000 12,000 Spain and Italy will remain the largest 10,000 market in Europe 20,000 8,
Slide 20: Our Key Regions: The United States
OUR KEY REGIONS: THE UNITED STATES SIZE OF THE MARKET(1) 2024E 2024-27E Strategy in the U.S.A. 30 GW 143 GW Unites States tracker installations 2023-2027 45,000 Increase market share by targeting 40,000 new opportunities 35,000 30,000 New offices, new logistic centre and 25,000 reinforcing team 20,0
Slide 21: Reinforcing Our Positioning in the US
REINFORCING OUR POSITIONING IN THE US Inflation Reduction Act (IRA) LOCAL OFFICE IN LOGISTIC CENTER Encourages investment in domestic energy production and TEAM FLORIDA IN TEXAS manufacturing through 2030 to reduce carbon emissions. STATE OF THE ART SUPPLY CHAIN INCREASING REVENUES UP TO 50% SECURED
Slide 22: Unparalleled Tailormade and Innovative Solutions
UNPARALLELLED TAILORMADE AND INNOVATIVE SOLUTIONS Trackers 1-in-Portrait Trackers 2-in-Portrait SFONE SFONE-USA SF7 SF7-USA • S I M P LI F I E D E N G I N E E R I N G TAILORED FOR U.S. PROJECTS • PRODUCTION DENSITY TAILORED FOR U.S. PROJECTS 5% fewer piles then competitive trackers. +5-6% production
Slide 23: Tracker ASP Expected Evolution
TRACKER ASP(1) EXPECTED EVOLUTION TRACKER PRICE DECLINES HIT A ROADBLOCK IN 2021, BUT PRICES ARE EXPECTED TO FALL IN THE NEAR FUTURE $0.17/W $0.14/W $0.12/W $0.11/W $0.11/W $0.11/W $0.10/W $0.09/W $0.09/W $0.09/W $0.09/W 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2025E ▪ ASP ($/W) • Steel pr
Slide 24: Backlog and Pipeline
BACKLOG AND PIPELINE STRONG AND WELL DIVERSIFIED OPERATIONAL INDICATORS €663 Mn €16,800 Mn BACKLOG (1) PIPELINE (2) LATAM UNITED STATES EUROPE 11% UNITED STATES Europe United SPAIN 75% States Backlog: €92 Mn Backlog: €333 Mn Pipeline: €5,461 Mn Pipeline: €2,189 Mn 14% BACKLOG ITALY Dec 23 LATAM Back
Slide 25: Energy
ENERGY
Slide 26: Fine Tuning Our Strategy
FINE TUNING OUR STRATEGY INCREASING VALUE CREATION THROUGH THE ENERGY DIVISION PRIORITIZING VALUE OVER VOLUME GOAL: VALUE CREATION IDENTIFIED EARLY ADVANCED BACKLOG CONSTRUCTION OPERATION OPPORTUNITIES STAGE STAGE • CONSERVATIVE APPROACH: Long term contracts and effective investment in the construct
Slide 27: A Quality Pipeline
A QUALITY PIPELINE PROJECTS UNDER DEVELOPMENT REACHING KEY MILESTONES IN A WELL DIVERSIFIED PORTFOLIO 7.0 2.9 272 GW GW MW(1) • Spain: 782 MW • Brazil: 4,255 MW • Spain: 411 MW • Brazil: 173 MW • Italy: 85 MW • Colombia: 1,239 MW • Italy: 2,152 MW • Colombia: 135 MW • Romania: 156 MW • Mexico: 375 M
Slide 28: Co-Development Agreements
CO-DEVELOPMENT AGREEMENTS Existing co-development partnerships with leaders in the market. Soltec Development remains as developer ensuring that the portfolio continues to progress until RTB status. The industrial know how is included in the agreement to take advantage of vertical integration. 468 M
Slide 29: Projects Reaching RTB Status
PROJECTS REACHING RTB STATUS RELEVANT MILESTONES TO COME, CRISTALYZING FURTHER VALUE SPAIN 2024E MW EXPECTED RTB (1) 612 100% Soltec 328 65% Total 284 ITALY 2024E MW EXPECTED RTB (1) 531 100% Soltec 20 51% Aquila 451 51% ACEA 60 (1) Subject to regulatory changes and based on regulatory deadlines est
Slide 30: Building an IPP with Selected Assets
BUILDING AN IPP WITH SELECTED ASSETS 501 MW UNDER OPERATION OR UNDER CONSTRUCTION CAPACITY UNDER OPERATION 501 MW Pedranópolis Araxá La Asomada (1) 112.5 MW 112.5 MW 4.5 MW 230 MW 255 MW CAPACITY UNDER CONSTRUCTION 25 MW 117 MW La Isla (1) Los Valientes I & II (1) Totana IV 4.5 MW 14.9 MW 5.5 MW 247
Slide 31: Asset Management Evolving as Expected
ASSET MANAGEMENT EVOLVING AS EXPECTED ASSETS UNDER CONSTRUCTION WILL REACH COD IN 2024 U N DER O P ERATION U N DER C ONSTRUCT ION PRE-CONSTRUCTION Pedranópolis Araxá La Asomada(1) La Isla(1) Los Valientes I&II(1) Totana IV Alumbres(1) F. Álamo I&II(1) El Romeral I&II(1) San Pedro(1) Capacity 112.5 M
Slide 32: Development Costs
DEVELOPMENT COSTS • Development costs are all direct necessary investments of the project to obtain the permits (i.e. lease agreements, interconnection permits, engineering and environmental studies, construction permits, financing and PPA) to achieve RTB. DENMARK SPAIN 12,500 €/MW 15,000 €/MW USA R
Slide 33: Market Prices for PV Project Rights at RTB
MARKET PRICES FOR PV PROJECT RIGHTS AT RTB(1) RTB PV PROJECT RIGHTS AND EPC COSTS(2), BY COUNTRY [IN K.EUR/MW MULTIPLES]. STAGE DIFFERS ACCORDING TO COUNTRIES. EPC COSTS VARY TOO “Ready-to-Build” PV projects are projects that have reached core development milestones, namely: ● Secured land (through
Slide 34: Soltec Assets: PPA Strategy and Financing
SOLTEC ASSETS PPA STRATEGY 260 MW PPA STRATEGY FINANCING 4 DEALS Hedging against merchant volatile prices AGREEMENTS 5 Assets (1) TO FUND THE EQUITY OF THE ASSET 2 Assets 1 Asset 29.4 MW MANAGEMENT DIVISION 225 MW 5.5 MW Raised form a Spanish fund €100 Mn to accelerate the growth of Financing the as
Slide 35: Financial Update
03 FINANCIAL UPDATE CORPORATE PRESENTATION
Slide 36: Soltec Income Statement Highlights
SOLTEC (1) INCOME STATEMENT HIGHLIGHTS FY 2023 VS. FY 2022 QUARTERLY EVOLUTION € Mn FY 2023 FY 2022 % Chg. € Mn Q1 23 Q2 23 Q3 23 Q4 23 Revenues 394.8 568.2 (31%) Revenues 76.8 107.8 119.6 90.6 Adj. EBITDA 10.4 32.6 (68%) Adj. EBITDA (4.6) (5.6) 10.8 9.8 Net Profit (23.4) 13.1 (279%) (1) S u m o f t
Slide 37: Trackers Income Statement Highlights
TRACKERS INCOME STATEMENT HIGHLIGHTS FY 2023 VS. FY 2022 QUARTERLY EVOLUTION € Mn FY 2023 FY 2022 % Chg. € Mn Q1 23 Q2 23 Q3 23 Q4 23 Revenues 376.8 586.7 (36%) Revenues 71.3 103.5 116.1 85.9 Adj. EBITDA 2.3 27.3 (92%) Adj. EBITDA (3.2) (4.4) 10.0 (0.1) EBITDA Margin 0.6% 4.7% (4.0 b.p.) EBITDA Marg
Slide 38: Trackers Revenue Breakdown
TRACKERS REVENUE BREAKDOWN REVENUE BREAKDOWN BY ACTIVITY REVENUE BREAKDOWN BY GEOGRAPHY United States Europe Tracker 25% 29% supply 63% Construction services 37% LATAM 45% HIGHLIGHTS • UNITED STATES • TRACKER SUPPLY 25% of total revenues (317 MW of trackers supplied). The company Manufacture and sup
Slide 39: Trackers Revenues and Gross Margins
TRACKERS REVENUES AND GROSS MARGINS STRONG GROSS MARGINS OF TRACKER SUPPLY FY 2023 REVENUES: €376.8 MN GROSS MARGIN (TRACKERS): 28.1% 29% 32% 29% 25% 116 104 86 71 Q1 Q2 Q3 Q4 2023 2023 2023 2023 Revenues (€ Mn) Gross margin (tracker supply) 39
Slide 40: Energy Income Statement Highlights
ENERGY INCOME STATEMENT HIGHLIGHTS FY 2023 VS. FY 2022 QUARTERLY EVOLUTION € Mn FY 23 FY 22 23 vs. 22 € Mn Q1 23 Q2 23 Q3 23 Q4 23 Revenues 18.6 11.1 +67% Revenues 5.5 4.2 3.5 5.3 Adj. EBITDA 8.7 6.2 +41% Adj. EBITDA 0.3 (1.6) 1.2 8.8 EBITDA Margin 46.7% 55.2% EBITDA Margin 4.7% (37.5%) 35.2% 164.5%
Slide 41: Net Debt
NET DEBT SOLTEC € Mn TRACKERS ENERGY DEBT LINKED TO DEBT 96.9 137.1 PROJECTS NET DEBT 68.6 NET DEBT 128.9 IFRS 16 23.3 GROSS FINANCIAL DEBT: 257.3 NET FINANCIAL DEBT: 220.4 41
Slide 42: ESG
04 ESG CORPORATE PRESENTATION
Slide 43: Recognition in ESG Ratings
RECOGNITION IN ESG RATINGS S&P Global Corporate Sustainability Assessment (CSA) Percentile 93 97 80 Ranking Industry Universe Global Semiconductors Universe 2021 2022 2023 28 out of 349 2463 out of 15855 43
Slide 44: A Sustainable Business Model, with a 2023-25 ESG Master Plan
A SUSTAINABLE BUSINESS MODEL, WITH A 2023-25 ESG MASTER PLAN Aiming to turn sustainability into a competitive advantage 2023-25 ESG Master Plan 2023 Milestones 2024 Goals NET ZERO • 24% reduction in our carbon footprint for • Decarbonization plan, with short-, medium- Responsible use and management
Slide 45: Ecovoltaics
ECOVOLTAICS DEVELOP SUSTAINABLE SOLAR PLANTS WITH A POSITIVE IMPACT IN THE ENVIRONMENT, THE ECONOMY AND THE LOCAL COMMUNITIES IN WHICH THEY SOCIOECONOMIC EXCELLENCE ARE LOCATED. Local employment Compatibility existing economic activity Dialogue local players Tractor effect on economy Benefit for the
Slide 46: Closing Remarks
05 CLOSING REMARKS CORPORATE PRESENTATION
Slide 47: Strategic Update
STRATEGIC UPDATE FOCUSED ON VALUE CREATION AND INCREASING RETURNS A COMPELLING INVESTMENT OPPORTUNITY Strong growth outlook driven by solar demand. BUSINESS UPDATE Specialization in tracker supply and energy generation TRACKERS & ENERGY FOCUS ON VALUE CREATION More efficient structure. No Reconsider
Slide 48: Appendix
06 APPENDIX CORPORATE PRESENTATION
Slide 49: Income Statement
INCOME STATEMENT (€, 000) FY 2023 FY 2022 Revenue 394,781 568,196 Changes in inventories of finished goods and work in progress 5,000 (4,552) Other operating income 1,537 3,166 Works carried out by the Group for its assets 11,799 50,825 Supplies (242,037) (375,075) Personnel expenses (66,811) (68,75
Slide 50: Balance Sheet
BALANCE SHEET ASSETS (€, 000) 31.12.23 31.12.22 SHAREHOLDERS' EQUITY AND LIABILITIES 31.12.23 31.12.22 Intangible assets 36,777 28,349 Capital and reserves Share capital 22,847 22,847 Property, plant and equipment 166,807 160,041 Share premium 143,472 143,472 Right-of-use 21,092 16,249 Reserves 4,89
Slide 51: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS (€, 000) FY 2023 FY 2022 Profit/(loss) before tax (31,918) 18,079 Adjustments to the profit / (loss) 39,096 14,289 Changes in net working capital 4,716 (1,867) Other operating cash flow (17,098) (7,625) Cash flows from operating activities (5,204) 22,876 Cash flo
Slide 52: Stock Overview
STOCK OVERVIEW SHARE PRICE PERFORMANCE (Last 12 months) Market Cap Price Close 7.0 €233 Mn €2.55 6.0 Avg. Volume 90D Nº Shares 287k 91,386,717 5.0 IPO Price Avg. Price 4.0 Price (8 April 2024) €4.82 €5.5 €2.55 3.0 High (07/01/21) Low (02/04/24) 2.0 €14.84 €2.08 abr.-23 may.-23 jun.-23 jul.-23 ago.-2
Slide 53: Trackers: Pipeline Breakdown by Probability
TRACKERS PIPELINE BREAKDOWN BY PROBABILITY PROBABILITY OF EXECUTION OF POTENTIAL PROJECTS. ▪ 100% Probability: €1,239 Mn ▪ 80% Probability: €8 Mn >50% ▪ 60-70% Probability: €24 Mn Probability ▪ 50% Probability: €101 Mn €1,372 Mn ▪ <50% Probability: €15,428 Mn Status Probability Contract Signed 100%
Slide 54: soltec.com/en/shareholders-and-investors
soltec.com/en/shareholders-and-investors
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