Phoenix Solar Ag · HAM:PS4
Phoenix Solar — Investor Presentation (March 2016)
35 slides from Phoenix Solar's investor presentation, March 2016
Slide 1: Phoenix Solar AG – From Turnaround to Growth
Phoenix Solar AG – “From Turnaround to Growth” Spring 2016
Slide 2: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financials 5. The Next Steps 6. Strategic Outlook 2
Slide 3: Executive summary: unlocking growth and profit potential
Phoenix Solar AG – a global provider of B2B solar solutions – wants to unlock growth and profit potential Executive summary Phoenix Solar (“Phoenix”) is a lean solar photovoltaic (PV) engineering, procurement and construction (EPC) company that is now leveraging existing skills to move into projec
Slide 4: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financials (09/30/15) 5. The Next Steps 6. Strategic Outlook 4
Slide 5: Focus on utility-scale and C&I segments
Phoenix focuses on the utility-scale and C&I segments, which account for 80–90% of the PV market PV market segmentation Phoenix’ focus segments Utility scale Commercial & industrial (C&I) Residential Utility-scale solar power plants Systems to generate electricity for Installations on residential fo
Slide 6: Business model at the core of the PV value chain
Phoenix Solar’s business model is at the core of the value chain of large-scale photovoltaic projects Phoenix Solar’s business model Developing the project Building the power plant Owning and operating the plant Project developer Engineering, procurement and Utility, independent power producer const
Slide 7: Pioneer of the Photovoltaic Industry Focused on Power Plant Construction
Phoenix Solar is a Pioneer of the Photovoltaic Industry Mainly Focused on the Construction of Power Plants The predominant business model is „EPC“ of photovoltaic power plants – both, roof-top and green-field. Customers Industrial, commercial and institutional investors, utilities Operations Operati
Slide 8: Lean and adaptable organization with client-focused solutions
Phoenix Solar has a lean and adaptable organization and delivers client-focused solutions Phoenix Solar’s competitive advantages Differentiated approach: Every regional PV market is different, therefore Phoenix Solar develops a Every market is different specific and optimized approach for each mar
Slide 9: Track record of quality PV systems installed globally
Phoenix Solar has a track record of more than 800 MWp of quality PV systems installed globally Selected reference projects Hazlehurst Solar Farm, 2015 Duke Energy, 2015 Location: Hazlehurst, Georgia (USA) Location: Fayetteville, North Carolina (USA) Completion time: 36 weeks Completion time:
Slide 10: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financials 5. The Next Steps 6. Strategic Outlook 10
Slide 11: Global solar PV market expected to continue rapid growth
Driven by improving economics, the global solar PV market is expected to continue its rapid growth Projected annual global solar PV market [GWp] The global solar PV market is expected to continue its rapid ≈$125–170B growth, with annual installations CAGR ’12–’20 more than doubling from 2014 to
Slide 12: Solar PV cost base down 82% from 2009 through 2015
The Solar PV Market: Cost Base Down 82% from 2009 through 2015 LCoE = Levelized Cost of Energy (Total Generating Cost) Solar is competitive now, has almost overtaken cost of wind Coal at $65 - 150/MWh – Natural Gas at $52 - 78/MWh – Nuclear at $97 - 136/MWh C&I Rooftop Utility Scale Source: Lazard,
Slide 13: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financials 5. The Next Steps 6. Strategic Outlook 13
Slide 14: Business transformed and restructured, ready to grow
Phoenix has transformed and restructured its business and is now ready to grow Restructuring history 2011–2015 Starting point 2011–2012 2-part business model: Power Plant and Components & Systems Sales (€M) Collapse of European PV market due to regulatory changes / subsidy 393.5 reduction Heav
Slide 15: 2014/15 measures resulted in successful turn-around
2014/15 measures resulted in a successful turn-around, more than tripling revenues and reaching break-even Q3 and full year development 2014–2015 Net sales (€M) EBITDA (€M) EBIT (€M) +253% 119.407 +421% +83% +92% +62% +66% 82,203 -4,520 -2.474 -3,047 -237 -5,663 -3,503 -4,616 -1,579 33,783 19,539 Cu
Slide 16: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financial Results Q3 2015 5. The Next Steps 6. Strategic Outlook 16
Slide 17: Next Steps: Six Point Plan (1)
Next Steps at Phoenix Solar AG: Six Point Plan (1) Growth 2015: Dedicated focus on closing profitable projects 1 Gain momentum, in operations, financials and share price Continue to differentiate: 2 High quality EPC and Services … support project financing, O&M, utilize network in favor of our c
Slide 18: Next Steps: Six Point Plan (2)
Next Steps at Phoenix Solar AG: Six Point Plan (2) Reduce operating cost per Wp for competitive reasons by approx 4 6-8 % p.a. Forge Strategic Alliances 5 Short term: vendors, project developers, sub contractors Mid term: strategic partners Base corporate culture on communication, 6 processes, p
Slide 19: Global presence with majority of revenue outside Europe
Phoenix has a truly global presence with the large majority of revenue generated outside of Europe Phoenix Solar AG, Germany (Since Nov. 1999) Phoenix Solar SAS, France (Since Sept. 2009) Phoenix Solar Inc., USA Phoenix Solar (Since Sept. 2010) S.L., Spain (Since Apr. 2006) Revenue split
Slide 20: Project Pipeline 2016
Project Pipeline 2016 Already Good Demand – Competent EPC are Being Searched for USA: Booming market, utility segment alone is to reach 6 to 8 GWp in 2016 Middle East: growth markets in Jordan and Turkey: we are well positioned and networked Asia/Pacific: Expanding the team, Focus on the Phili
Slide 21: Large potential volume to address in selected countries and segments
In the selected countries and segments, Phoenix has a large potential volume to address. Total addressable market volume forecast in target regions [GW] 19.6 = range between high and low case 1,5 Europe 17.0 1,5 2,9 MENA 14.8 12.7 1,5 2,6 3,2 Southeast Asia 12.5 1,3 1,5 2,2 2,5 1,1 1,4 1,8 1,9 7.9 1
Slide 22: Free order backlog is a strong indicator for future revenues
Free order backlog is a strong indicator for future revenues Free Order Backlog / Order Intake 195,7 200 200 144,9 150 150 131,2 102,1 100 93,2 85,5 100 24,7 45,5 50 50 41,0 0 0 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Power Plants Components & Systems Order Intake 22
Slide 23: More than 80% of pipeline contracted or under construction
More than 80% of Phoenix Solar’s pipeline is contracted / under construction MWp per milestone – weighted 328 108 228 181 70 149 44 91 40 178 20 88 107 63 7 34 8 13 8 8 Mar 15 Jun 15 Sep 15 Dec 15 M2 Bidding stage M3 On short list M4 Contract M5 Construction 23
Slide 24: Table of Contents
Table of Contents 1. Executive Summary 2. Profile and Business Model 3. Market Overview 4. Financials 5. The Next Steps 6. Strategic Outlook 24
Slide 25: Value Chain and Growth Potential
Value Chain and Growth Potential Potentials Cube: Systematically Assess Market Trends and Volumes Explore and Seize Opportunities Along Our Strategic Guidelines Utility 1. Market 3. Geographies Segments C&I Rooftop Off-Grid Residential Project development EPC 2. Value Chain O&M
Slide 26: New funds will enable expansion and growth
New funds will enable Phoenix Solar’s expansion and growth, ultimately enabling a step change in valuation Value creation by investment in Phoenix Expand to new Expand project Improve geographies development competitiveness Strengthen footprint in Build project Increase attractiveness to three
Slide 27: Phoenix Solar AG: Excellence in Global EPC
Phoenix Solar AG “Excellence in Global EPC”
Slide 28: Appendix
(phoenix Appendix
Slide 29: Management: mix of industry and functional experts
Phoenix Solar’s management consists of a well-balanced mix of industry and functional experts Tim P. Ryan Manfred Dr. Murray CEO since 01/2015 Hochleitner Cameron CFO since 01/2015 Founder, Member of the Executive Board (2003) Broad experience in growth - oriented With extensive experience in financ
Slide 30: Share has relatively low liquidity
Phoenix Solar’s share has a relatively low liquidity. News (project wins) have a strong impact on price PS4 share price development Capital market data 8,00 700 Share price (in €) 4.59 600 52-w-high / -low 5.84 / 2.07 6,00 500 30-day avg. share price absolute / volume weighted 4.54 /4.49 400 4,00 90
Slide 31: Share Price Development
Share Price Development (Aug 24, 2015 – Feb 23, 2016) 13,6*14,88 Appendix 31
Slide 32: Project Experience: Georgia (USA)
Project Experience: Georgia (USA) Simon Solar Farm: 38.6 MWp Location: Georgia (USA) Commissioned: November 2013 1000 V system IPP (Silicon Ranch) selling power under a PPA to Georgia Power Services Site due diligence and design Equipment Development services Approx. 130,000 JA (305/31
Slide 33: Project Experience: Thailand and Riyadh
Project Experience: Thailand (Asia) and Riyadh (Saudi Arabia) Solar Park Solarco: 36.0 MWp Solar Park KAPSARC: 3.55 MWp Location: approx. 2h from Bangkok (Thailand) Location: Riyadh (Saudi Arabia) Connected: November & December 2013 Connected: December 2012 Scope of work Phoenix: Engineering, Procur
Slide 34: 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 35: Contact Details
Contact Details Phoenix Solar AG Dr. Joachim Fleing Hirschbergstrasse 4 D-85254 Sulzemoos Germany Phone +49 8135 938-315 Fax +49 8135 938-429 www.phoenixsolar-group.com [email protected] Appendix 35