SolarWorld AG · OTC:SRWRF
SolarWorld — Investor Presentation (October 2016)
40 slides from SolarWorld's investor presentation, October 2016
Slide 1: Investor Presentation
SolarWorld AG Investor Relations Investor Presentation SolarWorld AG October 2016
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, many of which relate to factors that are beyond SolarWorld’s control or its ability to precisely estimate, such as future market and economic development, supply and demand, the behavior
Slide 3: Agenda
SolarWorld investor presentation Agenda Overview Business model Product portfolio Current business situation Market environment Forecast Stock and bonds 3 Investor Relations |October 2016
Slide 4: Overview
OVERVIEW 4 Investor Relations |October 2016
Slide 5: SolarWorld at a glance
SolarWorld at a glance Headquarters in Bonn/Germany Location Production in Freiberg/Germany, Arnstadt/Germany and in Hillsboro/U.S. Sales offices in Germany, U.S., France, Italy, UK, South Africa, Singapore and Japan Established in 1998 Established/ IPO in 1999 (Düsseldorf Stock Exchange) IPO listed
Slide 6: Key drivers
Key drivers Growth potential in the quality 2016 return to segment of global solar markets operating profitability Well positioned in all key growth Further cost-saving markets (except China) potential Integrated production across Economies of scales and the value chain combined higher utilization r
Slide 7: Management Board
Management Board Dr.-Ing. E. h. Frank Asbeck (CEO) Founder and Chief Executive Officer (since 1998) Over 20 years of corporate experience in the solar industry Colette Rückert-Hennen (CIBPO) Anchor shareholder, currently owns Chief IT, Brand and Personnel 20.85 percent of shares Officer (sin
Slide 8: Supervisory Board
Supervisory Board Dr. Georg Gansen (Chairman) Dr. Khalid Klefeekh Al Hajri Faisal M. Alsuwaidi Shareholder representatives attorney-at-law, corporate legal chairman and CEO of Qatar Solar president of R&D at Qatar counsel at Deutsche Post AG Technologies Q.S.C. Foundation for Education, Science and
Slide 9: SolarWorld AG - Chronic
SolarWorld AG - Chronic 2016 Company’s goal: return to operating profitability 2014 Successful closing of the financial restructuring process; takeover of Bosch’s solar cell and module production facility in Arnstadt, Germany 2013 Need for financial restructuring as a result of the solar industry cr
Slide 10: SolarWorld locations worldwide
SolarWorld locations worldwide 10 Investor Relations |October 2016
Slide 11: Business Model
BUSINESS MODEL 11 Investor Relations |October 2016
Slide 12: SolarWorld business model
SolarWorld business model Business model Production of high quality crystalline solar energy solutions Vertically integrated solar manufacturer across all steps of the value chain Worldwide sales of solar modules and systems Sales of solar wafers and cells to solar industry International Distributio
Slide 13: Production capacities
Production capacities in MW Freiberg Arnstadt Hillsboro Module 650 200 100 550 1,500 MW Freiberg Arnstadt Hillsboro Cell 370 700 430 1,500 MW Freiberg Wafer 1000 500 1,500 MW Freiberg Arnstadt Hillsboro Ingot 250 500 500 250 1,500 MW multicrystalline monocrystalline Freiberg (Germany) Freiberg expan
Slide 14: SolarWorld distribution structure
SolarWorld distribution structure SolarWorld Wholesalers three-tier distribution two-tier distribution Installers Installers Consumer Consumer residential/commercial commercial/utility 14 Investor Relations |October 2016
Slide 15: Product Portfolio
PRODUCT PORTFOLIO 15 Investor Relations |October 2016
Slide 16: SolarWorld product portfolio
SolarWorld product portfolio Solar wafers & cells Solar Modules Solar kits Storage solutions Energy Management Turnkey projects 16 Investor Relations |October 2016
Slide 17: SolarWorld bifacial modules
SolarWorld bifacial modules Product benefits Up to 25 % more yield due to innovative bifacial technology based on PERC Higher returns with shorter amortization time Extremely long lifespan through the use of glass on the front and rear sides of the module 30-year linear performance guarantee – at le
Slide 18: SolarWorld energy management and storage
SolarWorld energy management and storage High-performance, reliable and safe lithium- iron phosphate battery Fits every solar power system, regardless of size and can be added to existing PV systems Modularly expandable storage capacity Energy management system for smart energy (2 - 10kWh) distribut
Slide 19: Current Business Situation
CURRENT BUSINESS SITUATION € 19 Investor Relations |October 2016
Slide 20: Shipments and revenue development Y-o-Y
Shipments and revenue development Y-o-Y 682 + 50 % 456 434 + 36 % 320 1st half 2015 1st half 2016 Shipments in MW Revenue in m€ 20 Investor Relations |October 2016
Slide 21: Development of shipments by quarter
Development of shipments by quarter Shipments Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 in MW modules & kits 202 238 315 353 334 338 wafers & cells 8 8 13 22 7 4 Total shipments in MW 375 328 341 342 246 210 21 Investor Relations |October 2016
Slide 22: Shipment breakdown by region
Shipment breakdown by region Modules and kits shipped in MW 671 61 + 53 % 440 RoW 9% 35 343 U.S. 51% Europe ex GER 28% 229 Germany 12% 187 119 57 80 1st half 2015 1st half 2016 22 Investor Relations |October 2016
Slide 23: SolarWorld group indicators
SolarWorld group indicators Selected financial indicators in m€ 1st half 2015 1st half 2016 Total shipments 456 MW 682 MW Revenue 320.0 434.2 EBITDA 9.9 18.5 EBIT -12.2 -5.2 Group net result -25.5 -23.0 Equity 218.0 184.9 Equity ratio 23.3% 21.9% Net indebtedness 298.6 233.6 Cash and cash equivalent
Slide 24: Balance Sheet June 30, 2016
Balance Sheet June 30, 2016 Assets Equity & Liabilities in m€ in m€ 846 846 Non-current assets Shareholders‘ equity Equity ratio 185 21.9% 350 Non-current liabilities 349 m€ financial Inventories liabilities 456 196 + € 12m loan Other current assets from Qatar 152 Current liabilities Cash 205 148 24
Slide 25: Working Capital Development q-o-q
Working Capital Development q-o-q Working Capital in m€ 209 199 176 183 178 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Inventories without advanced payments Net trade accounts receivable/payable Working Capital 25 Investor Relations |October 2016
Slide 26: Hemlock ./. SolarWorld Industries Sachsen
HEMLOCK ./. SOLARWORLD INDUSTRIES SACHSEN U.S. Germany SolarWorld LONG-TERM DELIVERY CONTRACT & Industries Sachsen Freiberg, Germany COURT CASE • SolarWorld Industries Sachsen holds no assets in the U.S. • U.S. subsidiary is a separate legal • Enforcement not possible entity with no contracts with H
Slide 27: Market Environment
MARKET ENVIRONMENT 27 Investor Relations |October 2016
Slide 28: Development of annual global PV installations
Development of annual global PV installations New installations in GW 68 IHS (medium) 2016e 62 SolarPower Europe (medium) 71 2017e 67 CAGR 2015–2020e 80 2018e 73 +10.5% 2019e 88 +13.7% 84 95 2020e 97 Source: SolarPower Europe, Global Market Outlook For Solar Power 2016-2020, June 2016; IHS, PV Deman
Slide 29: U.S. market development
U.S. market development Expected U.S. demand in GW 20 18.4 CAGR 2015–2020e 16.2 16 15.1 U.S. total +17% 13.0 12 11.4 residential +13% 8.4 8 commercial +15% 4 utility +19% 0 2015 2016e 2017e 2018e 2019e 2020e Utility Commercial Residential Source: IHS, PV Demand Tracker Q2 2016, June 2016 29 Investor
Slide 30: European market development
European market development Expected demand in Europe in GW 45,0 40,0 35,0 30,0 +19% CAGR +19.6% CAGRhigh scenario high scenario 25,0 20,0 +12.8% CAGR medium scenario 15,0 10,0 -0.5% CAGR low scenario 5,0 0,0 2015 2016e 2017e 2018e 2019e Key PV markets in Europe: Germany historical installations low
Slide 31: Forecast 2016
FORECAST 2016 31 Investor Relations |October 2016
Slide 32: SolarWorld Milestones 2016
SolarWorld Milestones 2016 increase by Shipments more than 20% vs. 2015 increase by Revenue more than 20% vs. 2015 between EBIT € -10m and € +10m 32 Investor Relations |October 2016
Slide 33: Further cost-saving potential
Further cost-saving potential Technological innovations • Upgrade to PERC technology at all Technological Procurement production sites innovations • Ramp-up of bifacial module lines • Increase of production of 5-busbar-cells Procurement • Optimization of purchasing conditions and Distribution Optimi
Slide 34: Further cost-saving potential
Further cost-saving potential Production processes • Increase of production capacities and higher Technological Procurement utilization rates innovations • Reduction of material use • Use of alternative more cost-effective materials, e.g. diamond wire for wafer sawing Distribution structures • Furth
Slide 35: Stock and Bonds
STOCK AND BONDS 35 Investor Relations |October 2016
Slide 36: The SolarWorld stock
The SolarWorld stock MASTER DATA SHAREHOLDERS‘ STRUCTURE Share class Ordinary bearer shares ISIN DE000A1YCMM2 Token SWVK 29,00% Market segment Regulated market of the Frankfurt Stock Exchange 50,15% Transparency level Prime Standard Capital stock € 14,896,000.00 Number of shares 14,896,000 20,85% In
Slide 37: The SolarWorld bonds I
The SolarWorld bonds I BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1116 ISIN DE000A1YDDX6 Trading venue Frankfurt Stock Exchange Issue date February 24, 2014 Issue volume 139,386 notes First quotation date March 5, 2014 Term 5 years Maturity date February 24, 2019 Actual nominal value per note € 330.40
Slide 38: The SolarWorld bonds II
The SolarWorld bonds II BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1017 ISIN DE000A1YCN14 Trading venue Frankfurt Stock Exchange Issue date February 24, 2014 Issue volume 387,055 notes First quotation date March 5, 2014 Term 5 years Maturity date February 24, 2019 Actual nominal value per note € 339.6
Slide 39: Contact
Contact Investor Relations Romy Acosta Head of investor relations Tel.: +49 228/55920-476 E-Mail: [email protected] +49 228 55920-470 +49 228 55920-9470 Andrea Hoffmann Institutional investors & analysts [email protected] Tel.: +49 228/55920-470 http://www.solarworld.de/en/investor-r
Slide 40: Thank you for your attention
THANK YOU ! FOR YOUR ATTENTION 40 Investor Relations |October 2016