PHOTON ENERGY GROUP
Corporate presentation
CC Group Small & Midcap Conference 5th Edition
March 26, 2015
PHOTON ENERGY GROUP
A global solar power solutions and services company
Wide ranging expertise covering the entire
lifecycle of solar power systems:
• Projects, EPC and technology solutions
• Asset management
• Project finance & insurance
• Energy production on site
• O&M
• Investment protection
Active in 9 countries across 2 continents
Publicly listed company on NewConnect
50 MWp of PV solar power plants
commissioned in 5 countries, including a
proprietary portfolio of 27 MWp
Founded in Prague in 2008, headquartered
in the Netherlands & 60 professionals in 7
offices worldwide
O&M services provided for 140+ MWp
Technology supplied for several hundred
MWp of projects
March 2015
2
PHOTON ENERGY GROUP
Global presence
OFFICES:
Amsterdam, Netherlands (HQ)
Berlin, Germany
Elz, Germany
Sydney, Australia
Prague, Czech Republic
Breclav, Czech Republic
Bratislava, Slovakia
March 2015
3
PHOTON ENERGY GROUP
Leadership
Georg Hotar, CEO (co-founder)
2008: Co-founded Photon Energy Group
Extensive knowledge of the solar energy industry and international finance
Finance positions in London (Carnegie AB, ICE Securities) and Zürich (Fincoord)
2000: Founded Central European Capital, a regional finance and strategy advisory boutique
London School of Economics, BSc Accounting and Finance
London Business School, Master in Finance
Michael Gartner, MD Photon Energy Australia (co-founder)
2008: Co-founded Photon Energy Group
Since 2011: Responsible for growing the Australian business
Developed one of the first large PV installations in the Czech Republic
1994 – 2004: Equity-Debt-Analyst, head of fixed income sales ING & Commerzbank,
Prague
2005 – 2007: investment boutique
US Business School Prague, MBA, University of Newcastle Australia, BSc in Economics
Owner-managed
Highly developed
know-how in financing
and technology
Clemens Wohlmuth, CFO
Responsible for running the financial activities and strategies
Joined Photon Energy Group in May 2012 as CFO
1994 – 2000: Senior Manager Ernst & Young Consulting in Austria, headed reorganisation
projects in the manufacturing and energy sectors in Central Europe
2000: CFO and 2006: CEO Telekom Austria Czech Republic
Masters degree from the University of Economics Vienna
March 2015
4
PHOTON ENERGY GROUP
Financial summary
Indicators
Value
Comments
Turnover 2014
Eur 11.8 m.
-15.2% YoY.
EBITDA 2014
Eur 4.6 m.
+39% YoY.
EBIT 2014
Eur 0.2 m.
EBIT loss of Eur 1.5 m. in 2013.
Total assets
Eur 95.8 m.
Shares outstanding
Free-float shares
27 power plants owned by the group.
50.6 m.
2.00
1,800,000
5.7 m.
1.50
1,300,000
1.00
800,000
0.50
300,000
0.00
-200,000
Market cap 24.03.15
Eur 16.2 m.
Net debt 31.12.14
Eur 49.8 m.
Enterprise value
Eur 66.0 m.
EV/EBITDA 2014
14.3x
Total volumes for the month
Closing share price in PLN
The company is on track to return to profitability
Increasing trading volumes/ higher liquidity since February
March 2015
5
PHOTON ENERGY GROUP
Track record
Mid-range targets:
Expand O&M portfolio to 1 000 MWp
O&M and EM represent 50% of revenues
Czech Republic
Photon Energy starts
construction of first PV
power plant (911KWp)
Germany /
Italy
Photon Energy‘s
O&M division
founded. Current
portfolio more than
50 MW in 6
countries.
Founded
Photon Energy
founded in January
2008 in Czech
Republic.
IPO
Photon Energy listed
on NewConnect in
Poland in October
2008. Re-listed in
June 2013 after
restructuring.
2008
O&M
2009
Inverter Cardio
Special unit for central
inverter maintenance
founded. To date more
than 100 MWp
serviced.
Construction of
several power
plants with a
total of 2,6
MWp
32,5 MWp
Slovakia
Restructuring
Photon Energy
constructs a total of
32,5 MWp PV power
plants in CZ and SK
Further 8,8 MWp
of PV plants
constructed
Corporate restructuring
under Dutch holding
Photon Energy N.V.
3,5 MWp
50 MWp
36 MWp
2010
2013
2011
2012
Australia
Photon Energy begins
developing several
projects in Australia. To
date five power plants
built or under construction.
March 2015
Bond
placement
In 2013
corporate bond
placed on
Frankfurt Stock
Exchange.
Investment
protection
Services for
international asset
protection
launched.
2014
Solar storage
First solar storage
system installed in
Australia. 39 kWp
and 216 kWh
system powers
remote broadcast
tower.
New Strategy
New strategy for the Solar
Age presented, followed by
roll-out of Photon Energy
Generation Australia.
6
PHOTON ENERGY GROUP
Selected financial data 2011-2014
in Thousand Eur
Total revenues
Gross profit
EBITDA
EBIT
Profit / loss before taxation
Total comprehensive income
Non-current assets
Current assets
Cash and cash equivalents
Total assets
Total equity
Current liabilities
Non-current liabilities
Operating cash flow
Investment cash flow
Financial cash flow
Net change in cash
March 2015
2011
23,186
8,244
1,944
-1,725
-6,181
-2,908
87,320
15,015
4,880
102,335
17,494
18,856
65,985
-665
-19,753
22,851
2,433
2012
16,169
5,787
-309
-5,012
-12,428
-2,981
95,957
19,181
6,953
115,138
14,478
24,561
76,099
-911
-2,532
5,642
2,199
2013
13,876
9,311
3,314
-1,524
-4,719
-11,889
80,837
9,823
4,682
90,660
26,719
13,431
50,510
-25,377
-42
23,426
-1,993
2014
11,760
10,188
4,602
183
-4,107
4,050
86 967
8 834
4 657
95 801
30 729
8 406
56 666
-12
0
-925
-936
7
PHOTON ENERGY GROUP
Balance sheet
Net current assets
EUR Million
20
0.8
0.6
10
0.2
0.4
0.5
Breakdown of liabilities & equity
0.8 0.9 0.9 0.9 0.7
0.6 0.7
1.0
1.2
0
-10
-20
-30
Net current assets
March 2015
Quick Ratio
1.6
1.2
0.8
0.4
0.0
-0.4
-0.8
-1.2
-1.6
-2.0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Equity
LT liabilities
ST liabilities
8
PHOTON ENERGY GROUP
Valuation
25x
2.0x
21.5x
1.8x
20x
1.6x
14.3x
15x
1.4x
1.2x
0.74x
8.9x
10x
0.71x
1.0x
0.8x
0.6x
0.24x
5x
0.4x
0.2x
0x
0x
EV/EBITDA trailing
March 2015
Price/book ratio
9
PHOTON ENERGY GROUP
Portfolio
Project name
% of Capacity 2014 Prod.
share in kWp
In MWh
Project name
% of Capacity 2014 Prod.
share in kWp
In MWh
Project name
% of Capacity 2014 Prod.
share in kWp
In MWh
Komorovi ce
100%
2,354
2,287
Ba bi ná II
100%
999
886
Verderi o
100%
261
251
Zvíkov I
100%
2,031
2,042
Ba bi na III
100%
999
884
Bi el l a
100%
993
1,019
Dol ní Dvoři š tě
100%
1,645
1,635
Prš a I.
60%
999
1,005
1,254
1,270
Sva tos l a v
100%
1,231
1,071
Bl a tna
70%
700
698
144
200
Sl a vkov
100%
1,159
1,235
Mokra Luka 1
100%
963
1,063
Total Australian Portfolio
144
200
Mos tkovi ce SPV 1
100%
210
205
Mokra Luka 2
100%
963
1,073
Bra ndenburg
100%
75
61
Mos tkovi ce SPV 3
100%
926
906
Jovi ce 1
100%
979
845
Al tentreptow
100%
156
125
Zdi ce I
100%
1,499
1,561
Jovi ce 2
100%
979
819
Total German Portfolio
231
187
Zdi ce II
100%
1,499
1,544
Bres tovec
50%
850
946
Ra dva ni ce
100%
2,305
2,367
Pol i a nka
50%
999
942
Břecl a v rooftop
100%
137
149
Myja va
50%
999
1,067
14,996
15,002
10,429
10,228
Total Czech Portfolio
Project name
Total
Symons ton
100%
% of Capacity 2014 Prod.
share in kWp
In MWh
27,054
March 2015
Total Slovak Portfolio
Total Italian Portfolio
26,886
10
PHOTON ENERGY GROUP
Shareholder Structure
Solar Age Investments B.V.
11.22%
Solar Future Cooperatief U.A.
15.89%
55.89%
Solar Power to the People Cooperatief U.A.
16.99%
Others
March 2015
11
PHOTON ENERGY GROUP
The Photon Energy Bond
Coupon
8% annual coupon
Payment schedule
Quarterly
Bonds outstanding, book value
as of 31.12.14
Eur 7.5 m.
Redemption date
12 March 2018
ISIN
DE000A1HELE2
Placement
The bonds are being traded in the Open Market of the Frankfurt Stock
exchange as well as on the stock exchanges of Berlin, HamburgHannover and in the Corporates Prime - Segment of the Vienna Stock
exchange.
102.0
101.0
100.0
99.0
98.0
97.0
96.0
95.0
94.0
March 2015
MAX monthly price
MIN monthly price
Closing price
12
PHOTON ENERGY GROUP
Industry overview
Germany:
China:
Japan:
USA:
Italy:
Spain:
France:
India:
Canada:
37.6 GW
33.4 GW
25.9 GW
20.0 GW
19.0 GW
6.9 GW
5.7 GW
3.4 GW
2.0 GW
Outlook for PV industry
Cumulative Solar PV installed in
GWp
Global installed capacity at the end of 2014
400
350
300
250
200
150
100
50
0
370
320
253
195
24
3 4 5 7 10 16
44
145
104
73
Total global solar installed capacity of 195 GW in 2014
Annual solar installation growth projected at 58 GW in 2015
Source: Bloomberg New Energy Finance.
March 2015
13
PHOTON ENERGY GROUP
Integrated downstream solar energy company
...AND ITS CHARACTERISTICS
SOLAR MARKET VALUE CHAIN
Upstream
Polysilicon
Downstream
Development
Ingot
Financing
Wafer
Cell
Module
Inverter
March 2015
Wholesale
Procurement
Engineering
Construction
Independent Power
Production
Operations
& Maintenance
Upstream
“Hardware” business in the solar markets. Performance was
badly affected by price wars and overcapacity
The result is an ever decreasing price and corporate
bankruptcies.
Downstream
The market was fuelled by energy subsidies in Europe, which
have ceased, yet in some markets such as Australia, Turkey,
Africa the price of electricity is competitive to the one of
traditional sources. This situation is called grid-parity.
Thus motivation for building solar plants is changing from a
purely financial asset to a real business asset.
Traditional focus of downstream solar companies has been on
development and investments, supported by low borrowing
costs and high credit availability, which is not the case in the
new markets.
These changes require new skills and add complexity to the
business, predominantly in financing (credit risk) and
contracting (contract risk).
14
PHOTON ENERGY GROUP
Business Model
Photon Energy’s business model is designed to extract the most value from the downstream segment
of the solar industry supply chain and diversify risks across synergistic business lines.
Maximum margin capture in the downstream
segment of the value chain
Maximum service offerings and risk
management by diversified business lines
March 2015
15
PHOTON ENERGY GROUP
Life-cycle expertise
SOLAR SOLUTIONS.
SOLAR STORAGE.
SOLAR O&M.
Energy solutions and project
development from concept
to completion.
PV battery systems for a
level of performance, power
quality and reliability
beyond the grid.
Fully integrated power plant
monitoring and O&M
services.
TECHNOLOGY.
INVESTMENT
PROTECTION.
Solar power system
packages and top quality
components.
March 2015
Effective solutions for asset
protection.
16
PHOTON ENERGY GROUP
Strategy pillars
Expansion in grid-parity markets: Australia is the main market for new projects, both on-grid and
off-grid:
-
First country where solar energy is competitive with conventional energy on a larger scale.
A very large untapped potential, with the highest irradiation of any country on average.
Photon Energy's cofounder Michael Gartner is Australian and has an intimate knowledge of the Australian market.
Focus on Operations & Maintenance services in Europe:
-
the market is driven in part by construction companies which provided O&M services going out of business.
There are a range of other reasons for project owners to switch service providers: the service is not good enough,
or too expensive.
Photon Energy, with its innovative O&M solutions will help companies to unlock part of their capital by taking over
PV operations.
Securing recurring revenue streams through own portfolio:
-
The proprietary portfolio of PV plants remains the main revenue & EBITDA contributor in 2015.
In February, The portfolio recorded an overperformance of approx. 18% against generation estimates YTD (up
by approx. 5% YOY).
March 2015
17
PHOTON ENERGY GROUP
Current trading
November 2014
MUSWELLBROOK, AUSTRALIA
39 kWp / 216 kWh
launch of a pioneer solar project combining a 39kWp
PV power plant with a 216 kWh battery storage
system, generating electricity for a radio broadcasting
tower in Muswellbrook, New South Wales.
December 2014
signature of an EPC project for a 99 kWp roof mounted photovoltaic installation in Sydney. The project will be the
fifth solar power plant built and operated by Photon Energy in Australia bringing the total installed base to more
than 700 kWp of solar PV.
February 2015
expansion of the O&M portfolio: +13,5 MWp capacity in the Czech Republic.
March 2015
expansion of the O&M portfolio: +3.2 MWp in Slovakia.
March 2015
18
Operations and maintenance portfolio:
PEO is servicing a total capacity of 142.0 MWp vs. 63.6 MWp as of 31.12.2013
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Czech Republic: 61.2 MWp
O&M
services
Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2014 2014 2014 2015
20.0
Inverter
Cardio
services
Italy: 16.3 MWp
10.0
France: 21.3 MWp
Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2014 2014 2014 2015
Bulgaria: 1.0 MWp
0.5
60.0
50.0
40.0
30.0
20.0
10.0
0.0
20.0
Belgium: 12.2 MWp
20.0
Germany: 9.4 MWp
10.0
0.0
0.0
Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2014 2014 2014 2015
1.0
Slovakia: 19.5 MWp
Q4
Q1
Q2
Q3
Q4
Q1
2013 2014 2014 2014 2014 2015
Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2014 2014 2014 2015
10.0
0.0
1.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Q4
Q1
Q2
Q3
Q4
Q1
2013 2014 2014 2014 2014 2015
Australia: 0.6MWp
0.5
0.0
0.0
Q4
Q1
Q2
Q3
Q4
Q1
2013 2014 2014 2014 2014 2015
March 2015
Q4
Q1
Q2
Q3
Q4
Q1
2013 2014 2014 2014 2014 2015
19
PHOTON ENERGY GROUP
Investment highlights & key takeaways
Market opportunities
Company strengths
As photovoltaics is becoming competitive in ever
more countries in the world our market potential
increases.
We are experienced with a visionary approach & a
proven ability to adjust to a rapidly changing
business environment.
Photovoltaics is a relatively young &
fragmented industry with many small & midsized players.
Our challenge, to take our business global back in a
profitable manner, should be met this year, relying
on solid prospects and after cost cutting measures
were led.
As one of few survivors of the turmoil in our
industry in the past few years, we know that this
is very competitive & volatile industry.
Our focus on business lines generating recurring
revenue streams.
A transparent & open communication with capital
markets.
For investors on the Warsaw Stock Exchange, we are globally active company in a growth
industry providing a strong element of diversification in any portfolio.
March 2015
20
PHOTON ENERGY GROUP
Selected references – rooftop power plants
SYDNEY, AUSTRALIA
283 kWp, 2012
UECKERMÜNDE, GERMANY
27 kWp, 2010
March 2015
PRAGUE, CZECH REPUBLIC
653 kWp, 2010
FYSHWICK, AUSTRALIA
140 kWp, 2013
21
PHOTON ENERGY GROUP
Selected references – ground mounted power plants
TURANY AIRPORT, CZECH REPUBLIC
7.9 MWp, 2010
SYCHROV, CZECH REPUBLIC
1 MWp, 2009
March 2015
HRUŠOV, SLOVAKIA
1 MWp, 2010
RAZTOKA, SLOVAKIA
1 MWp, 2011
22
PHOTON ENERGY GROUP
Contacts
Photon Energy NV
Barbara Strozzilaan 201
1083 HN Amsterdam
Netherlands
T +31 202 402 570
E [email protected]
www.photonenergy.com