Phoenix Solar AG

Phoenix Solar AG
1
Disclaimer
The content of this presentation is solely for information purposess 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 in connection with this presentatiion or the information contained therein. This also applies
particularly to any eventual loss in connection with the shares of Phoenix
P
Solar AG.
This document contains forward-looking statements on future devvelopments which are based on management’s current
assessment. Words such as “anticipate”, “assume”, “believe”, “esstimate”, “expect”, “intend”, “can/could”, “plan”, “project”,
“forecast”, “should”, and similar terms are indicative of such forwa
ard-looking statements. Such statements are subject to certain
risks and uncertainties which are mainly outside the sphere of inffluence of Phoenix Solar AG, but which have an impact on the
business activities,
activities the success,
success the business strategy and the re
esults These risks and factors of uncertainty include
esults.
include, for
instance, climatic change, changes in the state subsidisation of photovoltaics,
p
the introduction of competitor products or
technologies of other companies, the development of the planned
d internationalisation of business activities, fierce competition as
well as rapid technological change in the photovoltaic market. If one
o of these or other factors of uncertainty or risks should occur,
or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the
results in these statements or implicit indications
indications. Phoenix Solar A
AG does not have the intention nor will it undertake any
obligation to realise forward-looking statements on an ongoing ba
asis or at a later point in time as this is entirely dependent on
circumstances prevailing on the day of their release.
In some countries the dissemination of this presentation and the information contained therein may be restricted or prohibited
under
d th
the llaw. Thi
This presentation
t ti iis th
therefore
f
expressly
l nott iintend
t d
ded
d ffor persons resident
id t iin llegall systems
t
under
d which
hi h such
h an
offer or solicitation is not permissible, or for persons for whom su
uch an offer or invitation would constitute a breach of the law.
2
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
3
Phoenix Solar at a Glance
Founded Nov. 1999, headquarrtered near Munich,
global
l b l workforce
kf
>230
One of the leading globally active PV system integrators
(3 continents,
continents 6 countries)
CAGR revenue: >80%
C ti
Continuously
l profitable
fit bl since
i
2004
2
Stock-listed since November 2004, TecDAX-listed since March 2008
First mover in PV thin-film tech
hnology, holding 12% world market
share in 2007
Covered by 14 banks/institution
ns, further coverage under preparation
4
Phoenix Solar’s Worldwide Co
ompany Locations
in 6 countries and 3 continents
s
Phoenix Solar
AG, Germany
¦
(since Nov. 1999)
¦
Phoenix Solar
S.L., Spain
¦
¦
(since April 2006)
Phoenix
Ph
i Solar
S l
S.r.l., Italy
(since July 2006)
Phoenix Solar
Pte Ltd,
Singapore
(since Dec. 2006)
Phoenix Sola
ar
E.P.E., Greece
(since June 200
08)
Phoenix Solar
Pty Ltd, Australia
(since July 2008)
All 100% owned subsidiaries, except Phoenix Solar Singapore (75%
5
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
6
Business Model - Overview
International Manufa
acturers
BOS C
BOS-Components
t
Solar Modules
• Crystalline
• Inverters
• Thin-film
• Mounting Systems
• Cables
System integratio
on
Turn-key
installation
Segment
Solar Power Plants
Project Investors
Segment
C
Components
& Systems
International Custo
omers
Resellers
7
Phoenix Solar’s Offering to the Customer
Segments
Investor Business
Power
Plants
Power Plant Sales
Components &
Systems
1 kWp*
0,1
MWp
500 kWp 1 MWp
Phoenix Solar’s business model covers all PV system sizes:
• Components & Systems 1kW
Wp - 1 MWp
• Power Plants > 500 kWp
10
10MWp+
MWp
* not to scale
8
Focused Business Model
Focus on Photovoltaics
Exclusively
E
l i l active
ti iin th
the fi
field
ld off photovoltaics,
ph t
lt i
th market
the
k t segmentt off
renewable energies with the highe
est growth rate
Focus on PV System Technolog
gy
Focus on core competence of high
h-yield, long-lasting and profitable
PV systems
t
System integrators are the gatewa
ay to the end customer
Advantages of Focused Busine
ess Model
- Purchase of PV modules and components
c
with the best
price-to-performance ratio inde
ependent of the manufacturer
- High flexibility, rapid respons
se to market trends
- Low financial risk as limited investment is required
9
Business Model – Solar Pow
wer Plants
A full-service
f
package in the Po
ower Plant segment
Phoenix offers project investors an all-inclusive services & products
package
Benefits Phoenix Solar AG
Benefits Phoenix Solar Energy
I
Investments
t
t AG
Planning of power plants
Project development
Procurement und delivery
Financial consulting / fund structuring
Turn-key installation
Funds management
Plant management
Event management
Operation and maintenance
10
Target Customers for Large Solar
S
Power Plants
In
nvestor Business
Project
P
Ow
wnership
Closed Solar Funds as capital collectio
on
point for private investors
- Participation starting at €10,000
- Fund capitalisation starting at €20M
- Expected Return: > 6%
Institutional investors, insurance
companies, pension funds
-
P
Power
Plan
nt Sales
EPC Con
ntracts
-
Risk spreading (in addition to equitiess,
annuities, real estates)
Planable cash flow!!
Trade, Industry und Commerce
- Secure financial returns
- Green image benefit
Local Communities
-
Secure financial returns
Sensible use of agricultural lands
11
Competence in Large-scale Roof-Mounted
R
Solar
Power Plant Design & Constrruction
Munich Trade Fair (Germany), 2.1 MWp
Completion November 2002
12
Competence in Large-scale Ground-Mounted
G
Solar Power Plant Design & Construction
C
SolarrPark Miegersbach (Germany), 5.3 MWp
Completion December 2005
13
Competence in Large-scale Ground-Mounted
G
Solar Power Plant Design & Construction
C
“La Solana” (Spain), 6.5 MWp
C
Completion
l ti March
M
h 2008
14
Features of Phoenix Solar’s Operation,
O
Monitoring & Maintenance Se
ervice
Utility standard 24/7 stand-by
service independent from inverter
manufacturers
24-hour reaction time in case of
plant
l t failure
f il
International service network with
p
local contact persons
Customer access to all plant data
Reporting
g to customer (monthly,
(
y
quarterly, yearly)
Continuous plant optimisation
85 MWp under management as of
Jan. 2009, 150 MWp expected
end 2009
15
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
16
Phoenix Solar & the German Market 2008/2009
German market
- Strong demand in both the Com
mponents & Systems and Power
Plants segments throughout 20
008 continuing into 2009
- On 19 December 2008 Phoenixx reported a total plant
installation 2008 of 50 MWp and
a grid-connection of the 5.6
MWp
Hasborn
project
MW H
b
j
ffor KGAL
L
- Large-scale power plant projectt financing delayed due to
financial crisis starting in Q4 20
008 and is still an issue in Q1
2009
Significant market growth in 2009 to 2 GWp expected
17
Phoenix Solar & Spanish Marrket 2008/2009
Spanish market
- Spanish market boom 2008
8 has come to an abrupt end
N
R
ith significantly
i ifi
tl reduced
d
d ffeed-in
di
- New
Royall D
Decree 1578/20
008 with
tariffs and hard cap introduc
ced
p
p ation 2009 significantly
g
y below market
Æ Spanish
market expecta
2008
p
difficult to predict
- Market size and access to projects
- Initial demand for large-sca
ale power plants exists but generally
cautious view on Spanish market
m
2009
18
Phoenix Solar and Italian &
Greek Market 2008/2009
Italian market
- Market 2009 may triple to 5-600
5 600 MWp (from > 150 MWp in 2008)
- Financing from Italian bank
ks & grid connection still an issue
- Phoenix Solar well positioned with 100% owned Phoenix Solar
subsidiary in Rome
- Significant volumes of large
e-scale projects under development
Greek market
- Demand has been picking up
u in 2008 but volume still very small
compared to Spain and Italy
- Market growth below expec
ctations due to bureaucratic hurdles and
ods
long project permitting perio
Italy is the most prom
mising European
market
k t 2009 after
ft Ge
Germany
19
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
20
Phoenix Solar’s Solar Module and Inverter
Suppliers & Long-Term Conttracts
50 MW
Wp framework
contra
act 2008 – 2011
Inverter
In
erter
Suppliers
450 €M framework
contract 2008 - 2011
108 MWp
framework
contract
2008 - 2011
411 MWp
framework contract
2008 - 2012
21
Phoenix Solar Product Mix:
Thin-film vs. Crystalline Modu
ules
100%
Crystalline
90%
80%
52.1%
4
48.1%
42.8%
40%
70%
79.7%
60%
50%
83 1%
83.1%
78.5%
100%
40%
Thin-film
30%
47.9%
5
51.9%
2006
2
2007
57.2%
60%
2008
2009e
20%
10%
20.3%
16.9%
2003
2004
21.5%
0%
2002
2005
22
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
23
Guidance 2009 & Outlook 201
13
Guidance 2009
L
Long-term
Outlook 2013
(as of 27 January 2009)
(as of 27 January 2009)
Sales: 520 €M
S
Sales:
1.5 bil. €
EBIT: 31 €M
E
EBIT:
100 €M
Expansion of international
P
Positioning
of Phoenix
business to more than 35 %
S
Solar
as a globally leading
of sales
s
systems
integrator
E
Expansion
of international
b
business
to more than 65%
l
off sales
o
24
Sales Development
1500
700
~
€M
600
~ 520
500
380
400
300
260.1
200
111.1 119.0
100
67.2
0
4.0
14.4
20.8
23.5
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e 2009e
...
2013e
Up to 2003: Phoenix Solar AG (HGB
2004 onwards: Revenue of Phoenix Concern (IFRS
25
Sales Development per Full-T
Time Equivalent
Sales
€T
2200
1915
2000
1778
1800
1555
1600
135
55
1400
1200
€T
1000
2000
+54%
800
600
1732
551
575
1500
621
1124
1000
400
500
00
200
0
2001
2002
2003
2004
2005
2006
2007
Q1-Q3 '07
Q1-Q3 '08
Accounting Basis: HGB; from 2004 onwards IFRS
26
EBIT / EBIT-Margin Developm
ment
100
EBIT
40
(€ M)
35
8.6%
~
~ 33
~ 31
30
EBIT
Margin
10%
8%
6.9%
25
22.3
6%
4.0%
20
3.7%
15
4%
10
5
7.7
2%
4.8
2.5
0
0%
2004
2005
2006
2007
2008e
2009e
...
2013e
According
A
di tto IInternational
t
ti
l Financial
Fi
i l
Reporting Standards (IFRS)
27
Order Backlog Development
€M
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
275
231
230
199
132
43
14
167
109
56
138
38
214
42
143
73
6
88
75
26
12
92
76
143
36
67
67
63
17
1. 1. 08
1. 4. 08
63
17
7
1. 7. 08
1. 10. 08
1. 1. 08
1. 4. 08
1. 7. 08
1. 10. 08
1. 1. 08
1. 4. 08
1. 7. 08
1. 10. 08
1.1.08 1.4.08 1.7.08 1.10.08
1.1.08 1.4..08 1.7.08 1.10.08
1.1.08 1.4.08 1.7.08 1.10.08
Total
ota
Pow
ower
e Plants
a ts
Components
Co
po e ts & Systems
Syste s
Percentage-of-Completion Revenues
28
Review Q4 2008
Module sales and purchase prices
p
moving
g down substantially
y in
Q4 2008 increasing profitabilityy of PV systems
Two weeks of delivery lost in December due to harsh winter
conditions in Germany, i.e.
- Order backlog 2008 had partlyy to be transferred into Q1 2009
- Year-end inventory higher tha
an initially planned
Total order intake Q4 2008 sub
bstantially higher than Q4 2007
Overall revenue expectations met
m
29
Highlights Q4 2008
10 October: Phoenix Solar rankked no. 2 in Ernst & Young’s
g
Entrepreneur of the Year awa
ard
roof-mounted
6 November: Phoenix Solar win
ns its biggest roof
mounted PV
system totalling 2.3 MWp for public service company SWU
20 November: Phoenix Solar se
ecures the Group’s
Group s future growth
through a syndicated loan of 150
1 €M for working capital financing
and to cover need for bank gua
arantees and letters of credit. The
agreement was signed with six banks and has a term of three
years. Together with the capital increase carried out in April 2008
long-term
Solar’s
long
term financing of Phoenix Solar
s operation is highly secure
18 December: RED2002 srl, ba
ased in Rome, renamed to Phoenix
Solar srl,
srl effective from 1 January 2009
30
Outlook to 2009
Seasonal business expected in
n 2009 similar to 2007 and the
previous years (weak Q1 and s
strong Q4). 2008 unusual pattern
with revenue and profit peaks in Q2 & Q3 due to the Spanish
market
Positive view on market deve
elopment 2009 by customers and
Phoenix Solar’s sales departme
ent, however to date final market
trends too early to predict
Q1 2009 starting
g slowly
y due to heavy
y winter conditions in
Germany and vacation period, however:
nts & Systems
segment
- Order intake in the Componen
p
y
g
((as of 21
January) is higher in a year-o
on-year comparison
- Power Plant construction plan
nned to be resumed between mid and
end Q1 2009
31
Highlights Q1 2009
Project company Scarlatti srl accquired. Scarlatti holds shares in four
project companies which develo
op projects in Italy
totalling 27 MWp
KGAL contract extension: +15
50 €M for 2011, now sales volume
totalling a minimum of 375 €M 2009
2
– 2011
Phoenix highly ranked in speccialised journal “BOERSE ONLINE”
yyearly
y analysis
y “Best Investor Relations Germany”.
y Phoenix Solar
ranked no. 1 of all TecDAX-lis
sted companies and no. 6 of all
stock listed companies of the DAX,
D
MDAX, TecDAX and SDAX
32
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
33
Share Price Performance of
Phoenix Solar vs. TecDAX In
ndex
Phoenix Solar
TecDAX
34
Dividend Payment
Ph
Phoenix
i S
Solar
l h
has b
been paying
i d
di id d since
dividends
i
2007
Shareholder-oriented dividend po
olicy according to company growth and
business situation
Financial year
Date of
distribution
Gross dividend
d
per share
s
Number of
shares
Payout ratio
2006
29.05.2007
0.1
10 €
6,077,000
27 %
2007
05.06.2008
0.2
20 €
6,648,500
37 %
2008
20.05.2009e
TBD
D (>0)
6,648,500
TBD
35
Development of Analyst Cov
verage
Institution
since
Institution
since
ÖKO-Invest Verlag
Vienna
31.01.2005
Pacific Crest
Portland
12.06.2008
Citigroup
London
03.06.2005
UniCredit
Munich
25.08.2008
Deutsche Bank
Frankfurt
25.08.2005
FBR Capital Markets
San Francisco
15.09.2008
Commerzbank
Frankfurt/Main
21.11.2005
Main First
Frankfurt
17.09.2008
Equinet AG
Frankfurt
22.05.2006
Dexia
Brussels
09.10.2008
HSBC Trinkaus & Burkhardt
Dusseldorf
17.08.2006
Viscardi
Munich
New!
07.11.2008
Goldman Sachs
London
17.10.2006
BHF Bank
Frankfurt
New!
02.12.2008
36
Table of Contents
1. Phoenix at a Glance
2 Company Profile
2.
3. Market Development
4. Module Supply
5. Financial Parameters
6. Phoenix Share - SonnenAktie®
7. Investment Highlights
37
Investment Highlights
Business model focuses on the core capabilities (PV systems
technology) allows for high flexxibility and fast exploitation of
technology),
market opportunities
As system integrator Phoenix So
olar is the gateway to the end
customer
Expansion of international busin
ness to more than 50% of sales by
2010 and 65 % by 2013
World-leading expertise in large-scale power plant construction
ology
using thin-film systems techno
Phoenix Solar AG – a “PV pure play”
38
Thank you for your atte
ention!
39
Phoenix Solar share in brief
ISIN
DE000A0BVU93
Share class
No-par bearer share
Number of shares as per 30/06/08
6,684,500 units
Share capital
6,684,500 €
Stock market segment
Official Market
Market, Prime Standard
40
Contact
Phoenix Solar AG
Hirschbergstrasse 8
D-85254 Sulzemoos
Germany
Phone
Fax
+49 8135 938-000
+49
49 8135 938-399
938 399
Investor Relations
Anka Leiner
Phone +49 8135 938-315
[email protected]
www.phoenixsolar.com
w
[email protected]
Public Relations
P
A
Andrea
Zepf
P
Phone
+49 8135 938-313
[email protected]
41
Quarterly Sales Developmentt 2007 / 2008
Power Plant Segment
Power Plant Segment
€M
90
84 % revenue increase yyoyy
Sales
80.9
80
70
148 % increase
Q1-3 2008 vs. Q1-3 2007
66.5
64 8
64.8
+48%
60
Germany and Spain were the
revenue drivers
+303%
50
43.9
€M
140
120
100
80
60
+139%
40
30
18.4
20
16.5
+406%
10
Q3 2008 revenues surpass Q4 2007
+22%
+132%
56.4
40
20
0
3.6
0
Q1'07
130.7
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
2006
2007
42
Quarterly EBIT Development 2007 / 2008
Power Plant Segment
EBIT
€T
EBITMargin
12,000
22%
10694
11,000
20%
9885
10,000
18%
16.5%
9 000
9,000
14.6%
8,000
7,000
8405
16%
12.6% 12.2%
14%
6429
10%
8.3%
8%
4 000
4,000
2.9%
3,000
1.3%
303
155 % increase Q1-3 2008 vs. Q13 2007 – in line with revenue
increase
533
€M
20
15
6%
4%
2,000
1,000
Almost 54 % EBIT increase yoy
Stable EBIT margin compared to
Q2-2008
12%
6,000
5,000
Power Plant Segment
17.9
+459%
10
2%
5
0
0
32
3.2
214
0
Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08
2006
2007
43
Quarterly Sales Developmentt 2007 / 2008
Components & Systems Segm
ment
Components & Systems Segment
€M
80
133 % revenue increase yyoyy
Sales
68.4
70
63.2
+56%
56%
60
G
d i t although
lth
h
German
revenues dominate
international revenues increased
significantly
+116%
50
43.7
40
€M
120
29.3
25.4
129.3
140
+74%
+15%
30
108 % increase
Q1-3 2008 vs. Q1-3 2007
25.1
+107%
100
+123%
80
20
62.5
60
11.4
40
10
20
0
0
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
2006
2007
44
Quarterly EBIT Development 2007 / 2008
Components & Systems Segm
ment
EBIT
€T
EBIITMarg
gin
8000
7707
7000
11.3%
9.9%
4000
6 3%
6.3%
4.3%
1.7%
0.6%
3
3%
2772
430
146
0
-1000
1000
-2000
0
- 3%
2000
1000
9
9%
6
6%
2887 2782
3000
15%
12%
6000
5000
18%
-15.8%
%
-1783
Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08
Components & Systems Segment
Higher
g
revenues and higher
g
margin
g
modules lead to significant EBIT
margin increase (11.3%)
vs
593 % increase Q1-3
Q1 3 2008 vs.
Q1-3 2007 – far greater than the
revenue increase
€M
5
- 6%
4
- 9%
3
- 12%
2
- 15%
- 18%
1
- 21%
0
4.3
+230%
1.3
2006
2007
45
Quarterly Sales Developmentt 2007 / 2008
Group Results
Group Sales
€M
160
1 3
149
149,3
Sales
+35%
140
128.1
120
Best q
quarter revenue ever
(Q3 2008 sales higher than Q4
2007)
104 % revenue increase yoy
110.2
+75%
128 % increase
Q1-3 2008 vs. Q1-3 2007
100
+165%
73.2
80
€M
300
+67%
60
250
43 8
43.8
40
20
41.6
260.1
+119%
200
+192%
150
119.0
100
15.0
50
0
0
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q
Q3'08
2006
2007
46
Quarterly EBIT Development 2007 / 2008
Group Results
EBIT--Margin
EBIT
(€ T)
175
599
18,000
24%
16,000
12,000
13.0%
10,000
9499
11173 11.8
8%
10.1%
10.4%
12%
85 % EBIT iincrease yoy
EBIT margin remains on very
high level
€M
25
22.3
4%
6,000
20
2 2%
2.2%
4,000
-2,000
16%
8%
8,000
2,000
Best quarter EBIT ever
(Q3 2008 EBIT higher than Q4
2007)
20%
13280
14 000
14,000
Group EBIT
0%
0.9%
-1480*
-4%
960
359
- 9.8%
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
+365%
15
10
4.8
-8%
8%
5
-12%
0
2006
2007
* Adjusted in Q3-2007 according to Int’l Accounting Standard (IAS) 8.49
47