Holaluz Clidom SA · BME:HLZ
Holaluz Clidom SA — Holaluz — FY2022 Earnings Presentation
35 slides from Holaluz Clidom SA's earnings presentation, Apr 26, 2023
Slide 1: The Rooftop Revolution
The Rooftop Revolution Investor presentation April 26th, 2023
Slide 2: Our commitment to fully decarbonise the world
Our commitment Our commitment to fully decarbonise the world We are building the most impactful green energy community in Europe by unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage. 2
Slide 3: The energy crisis is a huge problem and existing solutions come at a high cost
The energy crisis is a huge problem and existing solutions come at a high cost for the consumers Society is facing a challenge The energy Attractive The cost of energy transition is needed renewable independence in but current solutions alternatives are Spain is estimated are still expensive limited
Slide 4: +10 years of Holaluz as a GreenTech leader
+10 years of Holaluz as a GreenTech leader To ~Flexible assets +750 team ~Electrification of energy demand #1 ESG ranking members to deliver beyond 2023 the most impactful green energy #1 in NPS community in Aligned with SDG agenda 2030, Europe The Rooftop with great contribution on 9 SDG 2022 Revol
Slide 5: We are building the most impactful green energy community in Europe
We are building the most impactful green energy community in Europe Unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage From… …To Centralized oligopoly, polluting and with very Decentralized network of decarbonized, expensive T&D costs democratized an
Slide 6: Our Virtual Power Plant allowing us to retire fossil fuel plants
Our Virtual Power Plant (VPPs) is allowing us to retire fossil fuel plants and build the future electricity network Electricity is produced and consumed at Unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage homes with solar panels and batteries (home
Slide 7: We have the greatest value proposition
We have the greatest value proposition Customer value proposition includes 70%+ guaranteed savings and an end-to-end customer relationship where we install in 45 days and manage electricity with a #1 ESG 100% renewable energy subscription-based product Savings Subscription-based We provide the maxim
Slide 8: Solar market in Spain is booming
Solar market in Spain is booming Residential solar installations in Spain ’19 – ’23 Evolution of annual residential solar installations in Spain, # thousands installations1 Key takeaways Expected 1.500 Real ▪ The residential solar DG market in Spain has gone through an exponential growth curve over
Slide 9: Holaluz in numbers – 2022
Holaluz in numbers – 2022 Key impact indicators 14.3 M€ 6x 1,000+ Normalized EBITDA Solar growth 2022 vs. 2021 Run-rate new monthly solar contracts under management in Q4 300k+ 11.4k+ 700+ Total contracts solar contracts under team members management 2.3M+ 15.5 M€ 40% Tons of CO2 saved since 2010 R&
Slide 10: Very strong profitability in Energy Management
Very strong profitability in Energy We have achieved a very high profitability in EM in of the most Management challenging year for the sector in the past decades 2022 key figures – Energy Management 2021 2022 % change 1 Revenues: 468.4M€ (+57%) Strong revenue increase mainly driven by Key P&L Reven
Slide 11: A great year in Energy Management has allowed us to bootstrap Solar
A great year in Energy Management has We have bootstrapped our Solar business with the proceeds from allowed us to bootstrap Solar Energy Management 2022 key figures – Solar 2021 2022 % change 1 Revenue: 30.7 M€ (+469%) Key P&L Revenues1 5.4 30.7 469% 1 ~6x growth in revenue relative to ~4x for the
Slide 12: Our Energy Management and Solar businesses complement perfectly each other
Our Energy 1 Our outstanding results in Energy Management Management and business funded our Solar growth in 2022 Solar businesses complement perfectly 2 The one-off margin captured in our Solar business is each other complemented by the recurrent margin in our Energy Management business 3 The purpo
Slide 13: Sales traction needs to be strongly supported
Sales traction needs to be strongly supported Sales & brand Selling a solar installation require both technical knowledge to craft the adequate solution to each rooftop and an effective commercial D2D force deployed across the country to perform technical visits to adjust the offers Product Defining
Slide 14: Strong results in the first year scaling Solar
Strong results in the first year scaling Solar Holaluz is already showing quarterly growth… … leveraging our announced # Sales of systems under management per Quarter commitments Solar Cloud 10,230 Launching new 3,593 Scaling what channels and already works new regions +20% +42% 3,715 +76% 3,092 1,1
Slide 15: We have six customer acquisition channels to turn brand awareness into sales
Sales & brand We have six customer acquisition channels to turn our brand awareness into Sales Holaluz diverse proprietary customer acquisition channels drive reach advantages today and investments in brand, customer experience and community building will reinforce our competitiveness Digital Strate
Slide 16: Our combination of brand, services and economics makes us win over competition
Sales & brand Our combination of brand, services and economics makes us win over competition Advertised Guaranteed Above average Average Below average Electricity Realized Price, savings Services Brand Key players €/kWp commitment Materials1 Coverage2 Inst. Time Licensing Awareness 3 % Local install
Slide 17: We offer a superior product that delivers maximum savings
Product We offer a superior product that delivers maximum savings for our customers Key KPIs per product type Highlights Before Solar After Solar Annual 3,120 3,120 3,120 3,120 3,120 ▪ The value proposition for Solar electricity and 2,292 1,968 gasoline bill, € customers is greatest with 0 larger in
Slide 18: Delivering the solar installation is one of the most challenging steps
Delivery & procurement Delivering the solar installation is one of the most challenging steps to be successful in the solar business Our journey in Solar Delivery during the last years… Take off… Build the fundamentals… 2023 - 2024 Fail and learn… 2021 - 2022 2018 - 2020 ▪ “Asset-light” Delivery mod
Slide 19: Holaluz impact achievements
Impact Holaluz impact achievements Top rated 2023 within our industry (utilities) First utility in the EU energy company to obtain by Sustainalytics a leading independent ESG B Corp certification in 2018. the only certification research. ratings and data firm. In January 2023. that measures a compan
Slide 20: Holaluz impact business model
Holaluz impact business model enables the company to face the global challenges of climate change and energy transition, while having a positive impact on people and the planet by decarbonizing the economy Promoting a fair, inclusive, and regenerative economy for the planet and people focused on a t
Slide 21: Environment
Environment Gas commercialization decommissioning in line with Holaluz purpose 2.3 million tons of CO2e avoided since 2010 Adhesion to the United Nations Business Ambition for the 1.5°C initiative Emissions inventory and calculation of the carbon footprint scopes 1, 2 and 3 verified according to ISO
Slide 22: Social
Social First Academy in the world to train women installers Purpose-Driven Teams organization with a highly qualified, diverse and committed team Customer Satisfaction of 8.3/10 for solar installations Supplier alignment with Holaluz ESG commitments Sponsorships and participation in events to serve
Slide 23: Governance
Governance Definition of a list of robust policies and procedures, including the Code of Ethics, the ESG Policy and the Regulatory Compliance Program Commitment to the protection and promotion of human rights throughout the value chain Innovation promotion, with a 74% increase in R&D investment vs.
Slide 24: Great year in EM that has allowed to bootstrap Solar
1 Revenues: 499.1M€ (+65%): Strong revenue increase mainly driven by Great year in EM that has allowed to exceptionally high market prices + 25M€ increase from Solar business. bootstrap Solar 2 Gross Margin: €83.2m (+65% yoy). ▪ In line with Revenues increase (+65% % yoy). Q4’22 GM lower than expect
Slide 25: Holaluz financials: consolidated balance sheet (1)
Holaluz financials: consolidated balance sheet (1) €m acc. to Spanish normalised GAAP Fixed Assets: investing in R&D (+15,5M€) Rooftop Loans (7.8M€). 31.12.22 31.12.21 31.12.22 31.12.21 Non-current assets 124.2 96.7 84.6 66.1 Current Assets: Intangible assets 31.7 15.5 31.7 15.5 ▪ Inventories includ
Slide 26: Holaluz financials: consolidated balance sheet (2)
Holaluz financials: consolidated balance sheet (2) Net Equity: 12,6 M€ increase mainly explained by the FY 2022 Net Result €m acc. to Spanish impact + 17,6 M€ reduction in Valuation Adjusts. caption normalised GAAP (derivatives MtM), which are 31.12.22 31.12.21 31.12.22 31.12.21 recognised in P&L as
Slide 27: Holaluz financials: net debt position
Net Financial debt: 54,8M€ ▪ 10,5M€ increase due to the funding coming from Holaluz financials: net debt position the Parent company (HL-Clidom, €m SA) is doing to fund the solar subsidiaries in order to get scalable the Solar business in the forthcoming years. 31.12.22 31.12.21 Long-term debt with
Slide 28: Holaluz financials: consolidated cash flow
1 CF from operating activities: +€24.2M: ▪ EBT: -€8.7M (stat. Accounts) Holaluz financials: consolidated cash flow ▪ €48M non-cash hedging costs €m adjusted to the EBT. ▪ Change in working capital of -€36.8M primarily driven by higher inventory and debtor balances as discussed in previous slide 24.2
Slide 29: 2023 update and outlook
2023 update and outlook
Slide 30: We expect a positive 2023 largely focused on solar installations
We expect a positive 2023 largely focused on solar In 2023 we are focusing on our installations with batteries and EV chargers internal Solar installations to # Portfolio of solar contracts under management, k achieve our Solar break-even point of ~800/1,000 Cloud Solar installations as soon as +37%
Slide 31: We continue expanding our green energy community in Europe
We continue expanding our green energy We keep expanding our green community in Europe (CAGR 77% from 2022-2025) energy community in Europe fostering flexible asset sales # Portfolio of solar contracts under management, k (batteries and EV chargers) (low range / high range) Cloud Solar xx Yearly Sol
Slide 32: We are reaching profitability for Solar in 2024
We turn Solar into EBITDA We are reaching profitability for Solar in 2024 with a positive in 2024 thanks to a 87% CAGR throughout 2022-2025 higher scale and fostering Revenue and Normalized EBITDA, M€ penetration of batteries and (low range / high range) EV chargers Revenue 202 CAGR +87% Our expecte
Slide 33: We keep on improving Energy Management profitability
Transition to Tarifa Justa We keep on improving Energy Management allows for significantly profitability stronger unit economics for Revenue and Normalized EBITDA, M€ Energy Management Norm. Strong EBITDA generation driven by EBITDA an improvement in product mix 28 27 (Tarifa Justa) after an excepti
Slide 34: Normalized EBITDA for Holaluz increases at a 48% CAGR 2022-2025
We turn Solar into EBITDA Normalized EBITDA for Holaluz increases at a 48% positive in 2024 thanks to a CAGR 2022-2025 resulting from high Solar growth higher scale and batteries and Revenue and Normalized EBITDA, M€ EV charger penetration while (low range / high range) Energy Management Solar EM im
Slide 35: Q&A
Q&A 35