7c Solarparken Ag · XETR:HRPK
7c Solarparken — Shareholder Meeting (June 2023)
57 slides from 7c Solarparken's shareholder meeting presentation, Jun 12, 2023
Slide 1: Herzlich willkommen zur Hauptversammlung der 7C Solarparken AG
12.06.2023 27 Q HERZLICH WILKOMMEN ZUR HAUPTVERSAMMLUNG DER 7C SOLARPARKEN AG
Slide 2: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitute an invitation to purchase any securities of 7C SOLARPARKEN AG. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness. Certain statements contai
Slide 3: Agenda
3 AGENDA 1 7C Solarparken im Detail 2 Bericht des Vorstands 2022 3 Marktentwicklung und Herausforderungen für die 7C Solarparken AG 4 Guidance 2023 5 Tagesordnung TOP HAV 2023 3
Slide 4: 1. Solarparken im Detail
CONTENT Q 1. SOLARPARKEN IM DETAIL 1.1 Profile 4
Slide 5: Pure-play PV IPP: Germany as Primary, Belgium as Secondary Market
PURE-PLAY PV IPP Germany as Primary, Belgium as Secondary Market CAPACITY TARGETS IN MWP 1.000 BUSINESS MODEL & TARGETS 1.000 900 ▪ IPP: encompasses full spectrum incl. project development, acquisition, 800 investment & financing, O&M, asset management and sale of energy 700 ▪ Growth Plan 2023: + 60
Slide 6: Financial Profile: Record EBITDA in 2022 with Equity Ratio of 41%
FINANCIAL PROFILE Record EBITDA in 2022 with Equity Ratio of 41% EBITDA AND YIELD (EBITDA/TOTAL ASSETS) CASH FLOW PER SHARE & EQUITY RATIO 45% 1,20 75 40% 40% 14,0% 39% 13,6% 1,00 65 35% 35% 12,0% 55 32% 30% 30% 0,80 10,2% 29% 10,0% 9,6% 9,5% 9,4% 9,6% 45 8,9% 25% 25% 8,0% 23% 0,60 74,7 7,6% 35 20%
Slide 7: Valuation: Low Indebtedness & Gap to Capacity
VALUATION Low Indebtedness & Gap to Capacity NET DEBT 2022 / EBITDA 2023 MARKET CAP VERSUS # MWP 450 Innergex 7,8 400 350 Neoen 6,2 300 Scatec Solar 6,1 250 Boralex 4,7 200 Northland Power 4,2 150 Encavis 4,2 100 Clearvise 4,1 50 - Grenergy 3,6 1/01/15 1/01/16 1/01/17 1/01/18 1/01/19 1/01/20 1/01/21
Slide 8: 1.2 Quality of IPP Portfolio
CONTENT Q 1. 7C SOLARPARKEN IM DETAIL 1.2 Quality of IPP Portfolio 8
Slide 9: 424 MWp Portfolio: Run-rate EBITDA ca. EUR 57 Mio
424 MWP PORTFOLIO Run-rate EBITDA ca. EUR 57 Mio (*) MWp kWh/kWp MWh EUR/MWh EUR Mio EUR Mio Capacity Yield Production Capture (*) Sales EBITDA LOCATION OF GERMAN PARKS > 2 MWP GERMANY 381 995 379 164 62 53 Freefield 291 1.009 293 153 45 38 Rooftop 84 857 72 223 16 14 Wind 6 2.287 13 88 1 1 BELGIUM
Slide 10: Cash Flows & Upside Value: Breakdown by Tariff and Year
CASH FLOWS & UPSIDE VALUE Breakdown by Tariff and Year of Commissioning COMMISSIONING YEAR AND AVERAGE FEED-IN TARIFF (EUR/MWH) PER YEAR PARKS WITH HIGH EBITDA PARKS WITH POWER PRICE OPTION VALUE 60 450 53 406 402 50 400 50 378 371 350 40 40 306 300 268 31 31 250 29 29 30 27 24 203 200 21 20 19 20 1
Slide 11: Capture Price Sensitivity
CAPTURE PRICE SENSITIVITY Δ EUR 5/MWh Market Price ~ Δ EUR 1 Mio EBITDA CAPTURE PRICE & EBITDA IN FUNCTION OF MARKET PRICE 250 EXPECTED LONG-TERM RANGE 231 215 200 200 185 172 161 EUR/MWh Capture Price 150 154 154 155 EUR Mio EBITDA 100 84 78 72 61 67 55 57 50 55 55 - 0 25 50 75 100 125 150 175 200
Slide 12: Re-Powering Potential
RE-POWERING POTENTIAL First Projects as Part of a bigger Story beyond 2023 PV ESTATE PORTFOLIO HOLDS 184 HA / 77 MWP ▪ PAST: Re-Powering only possible after 20-years FIT period ▪ NEW LAW: Re-Powering possible with maintenance of FIT as long as the capacity does not exceed the initial volume. However
Slide 13: 2. Bericht des Vorstands
CONTENT Q 2. BERICHT DES VORSTANDS 2.1 Markets 2022 13
Slide 14: Energy Transition Goes On
ENERGY TRANSITION GOES ON Shift from Nuclear Power & Coal into Renewables TREND ELECTRICITY PRODUCTION IN GERMANY 1990-2022 PRODUCTION 2022 IN TWH 2022 Markets 14
Slide 15: Renewables Averaging at 45% of Production
RENEWABLES Averaging at 45% of Production, even at 80% on May 21, 2022 GROSS ELECTRICITY PRODUCTION IN GERMANY 2022 2022 Markets 15
Slide 16: Weather Conditions: Record Horizontal Irradiation
WEATHER CONDITIONS Horizontal Irradiation rose to Record Level > 1 200 kWh/m² GLOBAL HORIZONTAL IRRADIATION TREND IN GERMANY 2022 Markets 16
Slide 17: Specific Yield PV 6% above Long-Term Average
SPECIFIC YIELD PV 6% above Long-Term Average NATIONWIDE SPECIFIC OUTPUT FOR GERMANY kWh/kWp Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR 2011 21 41 101 132 147 122 112 116 100 75 41 15 1.023 2012 26 47 93 100 138 118 125 130 96 62 27 15 977 2013 12 25 74 98 103 125 148 124 82 59 26 24 900 20
Slide 18: 7.5 GWp New-Build in 2022
7.5 GWP NEW-BUILD IN 2022 Boom Cycle supported by new EEG and Market Prices NEW & CUMULATIVE PV INSTALLATIONS IN GERMANY (GWP) FEED-IN TARIFFS AND TENDER TARIFFS IN EUR/MWH 9 80 100 8 90 70 80 7 60 70 6 50 60 5 50 40 4 40 30 3 30 20 20 2 10 10 1 - - - jan/18 jan/19 jan/20 jan/21 jan/22 jan/23 apr/18
Slide 19: Market Price as Driver
MARKET PRICE AS DRIVER EUR 208/MWh (2021: EUR 77/MWh) EUR/MWH JAN-DEC ‘22 PRICES PER TECHNOLOGY EUR/MWH 2022 VERSUS 2021 PRICES PER TECHNOLOGY 500 450 400 399 244 234 350 208 317 300 180 170 250 261 200 207 207 189 104 178 97 94 150 151 154 85 146 77 119 129 100 50 - jan/22 feb/22 mrt/22 apr/22 mei/
Slide 20: 2.2 Company Development in 2022
CONTENT Q 2. BERICHT DES VORSTANDS 2.2 Company Development in 2022 20
Slide 21: Share Price
SHARE PRICE Macro- and Regulatory Risks outweigh Financial Performance SHARE PRICE (LHS) 10 YEAR BOND YIELD GERMANY (RHS) 6 3,0% HIGHLIGHTS 3 2,5% 5,5 2 1. Annual Results 2021 & CFPS 2022 Guidance EUR 0,53 – 0,61 2,0% 2. CFPS Guidance increase to EUR 0,65 5 1 4 1,5% 3. Start of regulatory discussion
Slide 22: Capacity Build-Up: From 338 MWp to 404 MWp
CAPACITY BUILD-UP From 338 MWp to 404 MWp, versus 400 MWp Plan ANNUAL ADDITIONS IN MWP SEGMENTATION OF ADDITIONS IN MWP 90 83 80 69 70 65 SUSTAINABLE LEVEL 60 59 50 36 33 40 59 51 30 18 15 14 20 10 24 10 14 - 86 MWp 101 MWp 118 MWp 154 MWp 190 MWp 256 MWp 338 MWp 404 MWp 2020 2021 2022 2015 2016 201
Slide 23: Capacity Growth: List of New PV Parks
CAPACITY GROWTH List of new PV Parks ADDITIONS TO IPP PORTFOLIO IN 2022 Country MWP Area Type Model kWh/kWp IBN Grid Belgium 13,5 Meer, “Neele-Vat Oostvogels” Belgium 2,6 Rooftop own development PPA 850 2022 Oudenaarde, “Samsonite” Belgium 2,3 Rooftop own development PPA 850 2022 Brecht, “Stabo” Bel
Slide 24: Production: More Capacity, Better Weather and Higher Prices
PRODUCTION More Capacity, better Weather and higher Prices OPERATING KPI’s POWER SALES & CAPTURE PRICE 90 350 2022 FY 2021 FY Change 328 80 318 85 (*) 300 GWh (Solar and Wind) 348 270 28,8% 70 276 kWh/kWp (Solar) 1.004 915 9,7% 245 243 250 60 kWh/kWp (Solar and Wind) 1.022 933 9,5% 219 50 203 200 We
Slide 25: Impact Capacity Swap
IMPACT CAPACITY SWAP Negative Effect of EUR 6.1 Mio. on Group Revenues REPARTITION OF PAYMENTS RELATED TO SWAP IN EUR MIO HIGHLIGHTS OF CAPACITY SWAP AGREEMENT • Agreement with large European utilities company • Object: 93 MWp of relatively young parks with low feed-in tariffs (average: EUR 58/MWh)
Slide 26: P&L: EBITDA rose to EUR 74.7 Mio
P&L EBITDA rose to EUR 74.7 Mio, above Guidance of EUR 70.0 Mio In Mio EUR 2022 2021 COMMENT Revenues 85.8 56.2 Power Sales EUR 84.6 Mio. Include effect of price cap and capacity swap Other operating income 3.3 2.5 o/w compensation for damage 1.5 0.5 EUR 0.6 Mio. losses covered by insurance, EUR 0.9
Slide 27: Balance Sheet: Equity Ratio up to 41%
BALANCE SHEET Equity Ratio up to 41%, Net Debt/EBITDA falls to 1.9x In Mio EUR 2022 2021 COMMENT ASSETS 550.4 507.9 Land & Property 13.3 12.9 PV Estate extended by purchase of warehouse in Belgium Right of use assets 38.4 26.3 Increased in line with capacity additions Solar and windparks 374.8 377.6
Slide 28: Cash Flow: CFPS Rises to Record EUR 0.85
CASH FLOW CFPS rises sharply to a record level EUR 0.85 per share In Mio EUR 2022 2021 EBITDA 74.7 48.6 Lease paid -2.0 -1.5 Cash interest paid -5.2 -5.0 Cash taxes paid -2.8 -1.6 Net Cash Flow 64.8 40.5 Number of shares, weighted Mio 76.7 71.9 CFPS 0.85 0.56 Dividend (proposal for 2022) 0.12 0.11 C
Slide 29: 3.1 Commodity Prices Back to Normal
CONTENT Q 3. MARKTENTWICKLUNG UND HERAUSFORDERUNGEN 3.1 Commodity Prices Back to Normal 29
Slide 30: Commodity Prices: Sharp Fall in Natural Gas & Coal
COMMODITY PRICES Sharp Fall in Natural Gas & Coal Prices COAL PRICE US$/TONNE CO2 PRICE EUR/TONNE NATURAL GAS PRICE TTF EUR/MWH OIL IN US$/BARREL Commodity Prices Back to Normal 30
Slide 31: Power Price: Spot Price Fell Sharply
… LIKEWISE DID THE POWER PRICE Spot Price fell sharply to < EUR 100/MWh GERMAN SPOT PRICE EUR/MWH SINCE 2014 PV MARKET PRICE IN H1’23 (EUR/MWH) 123 123 89 80 53 jan/23 feb/23 Mär 2023 apr/23 Mai 2023 EPEX Spot Onshore wind PV Commodity Prices Back to Normal 31
Slide 32: Long-Term PPAs Fell Back to EUR 65-75/MWh
LONG-TERM PPA’S Fell Back to EUR 65-75/MWh, partly ~ increased Balancing Cost 10-YEARS PPA TRACKER (ENERVIS) BALANCING COST INDEX (YUSO) EUR/MWH Commodity Prices Back to Normal 32
Slide 33: 3.2 Re-Dispatch 2.0
CONTENT Q 3. MARKTENTWICKLUNG UND HERAUSFORDERUNGEN 3.2 Re-Dispatch 2.0 33
Slide 34: Unplanned Curtailments
UNPLANNED CURTAILMENTS Compensation, but … at what Price, how many kWh, when? EXAMPLE POWER CONTROL ON 01.06.2023 MANAGEMENT COMMENTS ▪ RE-DISPATCH 2.0 allows grid operators / handlers to switch off the installation in case of grid distortions. However, we remark lack of consistency about the proces
Slide 35: 3.3 Rising Interest Rates
CONTENT Q 3. MARKTENTWICKLUNG UND HERAUSFORDERUNGEN 3.3 Rising Interest Rates 35
Slide 36: Euribor > 3%: Impact on Valuation and Capital Needs
EURIBOR > 3% Impact on Valuation and Capital Needs, but not on IPP Cash Flows EURIBOR EFFECT ON OUR BUSINESS • Valuation of existing assets (DCF): 100bps increase in bond yield reduces equity value by (only) ca. 7% owing to low leverage. • Cash Flows intact: almost 100% fixed rated debt • Capital re
Slide 37: 3.4 Price Cap: A Non-Event
CONTENT Q 3. MARKTENTWICKLUNG UND HERAUSFORDERUNGEN 3.4 Price Cap: A non-Event 37
Slide 38: Germany: 90% of Excess Revenues to Be Reimbursed
GERMANY 90% of Excess Revenues is to be reimbursed as from Dec ‘22 MECHANISM EXPLAINED WITH EXAMPLE PROJECT 2022 PV Market Price (a) 50 75 100 125 150 Example project 2022 with tariff EUR 60/MWh (b) 60 60 60 60 60 Capture Price under existing scheme (c) = max (a,b) 60 75 100 125 150 ▪ EU LAW has set
Slide 39: 3.5 Market Growth up to 215 GWp by 2030
CONTENT Q 3. MARKTENTWICKLUNG UND HERAUSFORDERUNGEN 3.5 Market Growth up to 215 GWP by 2030 39
Slide 40: Energy Transition Germany: EEG 2023
ENERGY TRANSITION GERMANY EEG 2023 with Ambitions of CO2 Neutrality RENEWABLES TARGET 2030: 80% Market Growth up to 215 GWP by 2030 40
Slide 41: EEG 2023 Towards 215 GWp PV Capacity by 2030
EEG 2023 Towards 215 GWP PV Capacity by 2030 OBJECTIVE INSTRUMENTS Renewable Energy From <50% in 2021 to 80% by 2030 (or 600 TWH) Grid expansion, designated sites for renewables Wind offshore From 7.8 GW to 30 GW by 2030 Less administrative hurdles Wind onshore From 56 GW to 115 GW by 2030 Less admi
Slide 42: 4.1 Year-to-Date Capacity Growth
CONTENT Q 4. GUIDANCE 2023 4.1 Year-to-Date Capacity Growth 42
Slide 43: New Investments 2023: 24 MWp Added Year-to-Date
NEW INVESTMENTS 2023 Capacity of 24 MWP Has Been Added Year-to-Date ADDITIONS YTD 2023 Country MWP Area Type Model kWh/kWp IBN Grid Belgium 1,6 KVD Houtbouw, Turnhout Belgium 0,2 Rooftop own development PPA 850 2023 Q2'23 CKV, Waregel Belgium 0,1 Rooftop own development PPA 850 2023 Q2'23 Carrefour,
Slide 44: 4.2 Q1'23 Results
CONTENT Q 4. GUIDANCE 2023 4.2 Q1’23 Results 44
Slide 45: Q1'23 KPIs: Power Production Down by 13%
Q1’23 KPI’S Power Production Down by 13% Due to Bad Weather OPERATIONALS MANAGEMENT COMMENTS 2023 Q1 2022 Q1 % GWh 51 59 -13% ▪ PRODUCTION: Dropped by 13% reflecting a weather-driven decline of 26% in kWh/kWp (solar + wind) 129 175 -26% specific yield and an increase of 18% in weighted operating cap
Slide 46: Q1'23 Financials: EBITDA Drops, Above Guidance
Q1’23 FINANCIALS EBITDA Drops, but Still Above the Explicit Guidance Value FINANCIALS MANAGEMENT COMMENTS 2023 Q1 2022 Q1 % Revenues 10.1 14.1 -29% ▪ REVENUES: decreased by 29% as a result of falling capture price and less production. _ of which Power Sales 9.7 14.0 -30% Other operating income 1.7 0
Slide 47: 4.3 Outlook & Management Focus
CONTENT Q 4. GUIDANCE 2023 4.3 Outlook & Management Focus 47
Slide 48: Operational Strategy Plan 2023-24
OPERATIONAL STRATEGY Plan 2023-24 WHAT IS STILL ON TOP OF MANAGEMENT’S AGENDA ▪ Bring 25 MWP IPP Projects from “under construction / awaiting grid connection” at year-end 2022 to commissioning before Q4 2023 ▪ Re-location of the 2 MWp installation in Opel Kaiserslautern during 2023 The project has n
Slide 49: Bring 25 MWp IPP Parks to Grid-Connected Status
OPERATIONAL STRATEGY “Bring 25 MWP IPP Parks to Grid-Connected status” Outlook & Management Focus 49
Slide 50: Lift IPP to 460 MWp
OPERATIONAL STRATEGY “Lift IPP to 460 MWP” Outlook & Management Focus 50
Slide 51: Secure Financing with Equity of at least EUR 35 Mio
OPERATIONAL STRATEGY “Secure Financing with Equity of at least EUR 35 Mio” SIMPLIFIED CAPEX & FINANCING PLAN 2023-24 FINANCING INSTRUMENTS EUR Mio. Cash Flows 2022 Cash Flows 2023-24 Alternative Financing Project Financing Equity Capex 400 MWp -> 422 MWp (2023 Q1) 15 15 Reimbursement tranche 1 of Pr
Slide 52: Guidance 2023: Power Price Curve Lower
GUIDANCE 2023 Power Price Curve is EUR 15/MWH lower than at Guidance Publication Outlook & Management Focus 52
Slide 53: EBITDA & CFPS 2023
EBITDA & CFPS 2023 EUR 57 Mio and EUR 0.60 resp. (UNREVISED SO FAR) Outlook & Management Focus 53
Slide 54: 2024 Plan: Towards EUR 0.65/share CFPS
2024 PLAN Towards EUR 0.65/share CFPS INDICATIONS FOR 2024 Plan 2021-24 Published 2021 2024F Change Comment Capacity at year-end MWp 525 525 0.0% Weighted capacity in operation MWp 500 460 -8.0% Longer lead times for supply of components and grid connection Market Price PV EUR/MWh 65 98 50.8% Reflec
Slide 55: 5. Tagesordnung
CONTENT Q 5. TAGESORDNUNG 55
Slide 56: Tagesordnung
56 TAGESORDNUNG TOP 1 Vorlage des festgestellten Jahresabschlusses und des vom Aufsichtsrat gebilligten Konzernabschlusses sowie des zusammengefassten Lageberichts für das Geschäftsjahr 2022 mit dem Bericht des Aufsichtsrats und dem Bericht des Vorstands mit den erläuternden Angaben gemäß §§289a, 31
Slide 57: Contact
CONTACT 7C SOLARPARKEN AG An der Feuerwache 15 95445 Bayreuth / Germany +49 (0) 921 23 05 57 77 www.solarparken.com [email protected] CONTACT 57