Investor Presentation

Transcription

1 SolarWorld AG Investor Relations October 2016 Investor Presentation SolarWorld AG

2 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 of other market participants, the ability to successfully achieve anticipated synergies and the actions of government regulators. SolarWorld AG has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from the projected in the forward-looking estimates, forecasts and projections; financial performance may be better or worse than anticipated. Given these uncertainties, readers are cautioned not to place undue reliance on any forwardlooking statements. The information contained in this presentation is subject to change without notice and SolarWorld AG does not undertake any duty to update the forward-looking statements, or publicly release any revisions to these forward-looking statements and the estimates and assumptions associated with them, except to the extent by applicable laws and regulations. 2

3 SolarWorld investor presentation Agenda Overview Business model Product portfolio Current business situation Market environment Forecast Stock and bonds 3

4 OVERVIEW 4

5 SolarWorld at a glance Location Established/ IPO Market position Nameplate capacities Headquarters in Bonn/Germany 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 IPO in 1999 (Düsseldorf Stock Exchange) listed on the Prime Standard of the Frankfurt Stock Exchange since 2003 Global producer of high quality crystalline solar solutions with a strong brand Leading manufacturer of PERC technology worldwide Vertically integrated production in Germany and the U.S. Broad customer base in quality segment (B2B partner installer networks in Europe and the U.S.) 1,500 MW ingots 1,500 MW wafers 1,500 MW cells 1,500 MW modules Shipments Shipments 1 st half 2016: 682 MW Revenue 1 st half 2016 : 434m U.S.: 50% Europe (w/o GER): 27% Germany: 13% ROW: 10% Employees 2,983 employees (as at June 30, 2016) 5

6 Key drivers Growth potential in the quality segment of global solar markets 2016 return to operating profitability Well positioned in all key growth markets (except China) Further cost-saving potential Integrated production across the value chain combined with broad international distribution network Growth Profitability Economies of scales and higher utilization rates R&D activities High brand awareness Trendsetter for quality solutions Technology leader in PERC Authentic focus on sustainability Last major Western solar panels manufacturer with production facilities in Germany and the U.S. Value Risk management Broad regional market diversification and wide customer base Group financed until 2019 Strategic investors Qatar Solar S.P.C. and CEO Frank Asbeck 6

7 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 Anchor shareholder, currently owns percent of shares Philipp Koecke (CFO) Chief Financial Officer (since 2003) Accompanied organic growth and M&A activities Implementation of financial restructuring Frank Henn (CSO) Chief Sales Officer (since 2004) Pushed forward internationalization of sales Established international network of installers and wholesalers Colette Rückert-Hennen (CIBPO) Chief IT, Brand and Personnel Officer (since 2011) Initiated and implemented restructuring measures in the organization Increased brand strength with the REAL VALUE claim Jürgen Stein (CPO) Chief Product Officer (since 2014), previously Head of Purchasing (from 2011) Strategic development of global purchasing Longstanding experience in purchasing, particularly in Asia and the electric industry 7

8 Employee representatives Shareholder representatives Supervisory Board Dr. Georg Gansen (Chairman) attorney-at-law, corporate legal counsel at Deutsche Post AG Dr. Khalid Klefeekh Al Hajri chairman and CEO of Qatar Solar Technologies Q.S.C. Faisal M. Alsuwaidi president of R&D at Qatar Foundation for Education, Science and Community Development Heiner Eichermüller senior business consultant Dr. Andreas Pleßke attorney-at-law Jürgen Wild managing director of RAG-Stiftung Beteiligungsgesellschaft mbh Gerald Voigt (Deputy Chairman) district manager at trade union IG BCE, district Dresden/Chemnitz Albrecht Handke press and public relations and member of the works council of SolarWorld Industries Sachsen GmbH Wolfgang Lemb executive member of the Management Board of IG Metall Dr. Ute Mareck manager of technology and process at SolarWorld Industries Sachsen GmbH Alexander Richter member of the works council of SolarWorld Industries Sachsen GmbH and member of the group works council of SolarWorld AG Olaf Zirr team manager QHSE and deputy chairman of the works council of SolarWorld Industries Thüringen GmbH 8

9 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 crisis 2010 Establishment of a joint venture with Qatari partners to produce poly-silicon 2009 Passing the billion-euro revenue mark; development of an international brand awareness 2008 Start of production at new U.S. integrated facility in Hillsboro, U.S Takeover of the Shell Group s crystalline solar activities with production in the U.S. and distribution in the U.S., Singapore and South Africa; start of internationalization 2003 Admission of the stock to the regulated market of the Frankfurt Stock Exchange; listing in the Prime Standard segment 2000 Takeover of the Bayer Group s wafer production facility in Freiberg, Germany First step into becoming a vertically integrated solar manufacturer 1999 IPO open market at the Dusseldorf Stock Exchange Start of own manufacturing through acquisition of Swedish module manufacturer Gällivare Photovoltaik (GPV) 1998 Founding of SolarWorld AG in Bonn 9

10 SolarWorld locations worldwide 10

11 BUSINESS MODEL 11

12 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 Distribution Network Close proximity to all relevant markets through local sales offices Distribution through specialist and wholesale trade as well as through installers as intermediaries to end-customers B2B partner network (specialist partner networks) in Europe and the U.S. Spread of risks across a wide customer base 12

13 Production capacities in MW Freiberg Arnstadt Hillsboro Module ,500 MW Freiberg Arnstadt Hillsboro Cell ,500 MW Freiberg Wafer ,500 MW Freiberg Arnstadt Hillsboro Ingot ,500 MW multicrystalline monocrystalline Freiberg (Germany) Freiberg expansion Freiberg reserve Arnstadt (Germany) Arnstadt expansion Hillsboro (U.S.) Hillsboro expansion 13

14 three-tier distribution two-tier distribution SolarWorld distribution structure SolarWorld Wholesalers Installers Installers Consumer Consumer residential/commercial commercial/utility 14

15 PRODUCT PORTFOLIO 15

16 SolarWorld product portfolio Solar wafers & cells Solar Modules Solar kits Storage solutions Energy Management Turnkey projects 16

17 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 least % output after 30 years 17

18 SolarWorld energy management and storage High-performance, reliable and safe lithiumiron phosphate battery Fits every solar power system, regardless of size and can be added to existing PV systems Modularly expandable storage capacity (2-10kWh) 10,000 charge and discharge cycles (= a service life of about 20 years) Eligible for KfW-funding program Very easy installation (plug and play) 10 year product warranty Energy management system for smart energy distribution of solar power at home Easy installation in the house fuse box Intuitive operation by MyHome App Enables increase of self-consumption lower electricity costs Dynamic yield forecast and recommendations 18

19 CURRENT BUSINESS SITUATION 19

20 Shipments and revenue development Y-o-Y % % 1st half st half 2016 Shipments in MW Revenue in m 20

21 Development of shipments by quarter Shipments in MW Q Q Q Q Q Q modules & kits wafers & cells Total shipments in MW

22 Shipment breakdown by region Modules and kits shipped in MW % RoW U.S. 9% 51% 229 Europe ex GER Germany 28% 12% st half st half

23 SolarWorld group indicators Selected financial indicators in m 1st half st half 2016 Total shipments 456 MW 682 MW Revenue EBITDA EBIT Group net result Equity Equity ratio 23.3% 21.9% Net indebtedness Cash and cash equivalents

24 Balance Sheet June 30, 2016 Assets in m in m Equity & Liabilities Non-current assets Shareholders equity Non-current liabilities Equity ratio 21.9% Inventories Other current assets Current liabilities m financial liabilities + 12m loan from Qatar Cash

25 Working Capital Development q-o-q Working Capital in m Q Q Q Q Q Inventories without advanced payments Working Capital Net trade accounts receivable/payable 25

26 HEMLOCK./. SOLARWORLD INDUSTRIES SACHSEN U.S. Germany LONG-TERM DELIVERY CONTRACT & SolarWorld Industries Sachsen Freiberg, Germany COURT CASE SolarWorld Industries Sachsen holds no assets in the U.S. U.S. subsidiary is a separate legal entity with no contracts with HSC corporate veil shields U.S. subsidiary SolarWorld Americas Inc. Hillsboro, Oregon Enforcement not possible without ZPO recognition EU trust law needs to be assessed during recognition Contracts contain clauses that infringe EU anti trust law SolarWorld continues to assess risks as low 26

27 MARKET ENVIRONMENT 27

28 Development of annual global PV installations New installations in GW 2016e IHS (medium) SolarPower Europe (medium) 2017e 2018e 2019e CAGR e +10.5% +13.7% 2020e Source: SolarPower Europe, Global Market Outlook For Solar Power , June 2016; IHS, PV Demand Tracker Q2 2016, June

29 U.S. market development Expected U.S. demand in GW CAGR e U.S. total +17% residential +13% commercial +15% 4 utility +19% e 2017e 2018e 2019e 2020e Utility Commercial Residential Source: IHS, PV Demand Tracker Q2 2016, June

30 European market development 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Expected demand in Europe in GW e 2017e 2018e 2019e historical installations medium scenario low scenario high scenario Source: Solar Power Europe, Global Market Outlook , June % +19% CAGR high high scenario +12.8% CAGR medium scenario -0.5% CAGR low scenario Key PV markets in Europe: Germany France UK Italy 30

31 FORECAST

32 SolarWorld Milestones 2016 Shipments increase by more than 20% vs Revenue increase by more than 20% vs EBIT between -10m and +10m 32

33 Further cost-saving potential Technological innovations Technological innovations Procurement Upgrade to PERC technology at all production sites Ramp-up of bifacial module lines Increase of production of 5-busbar-cells Procurement Distribution structures Optimized production processes Optimization of purchasing conditions and renegotiation of supplier contracts 33

34 Further cost-saving potential Technological innovations Procurement Production processes Increase of production capacities and higher utilization rates Reduction of material use Use of alternative more cost-effective materials, e.g. diamond wire for wafer sawing Distribution structures Distribution structures Optimized production processes Further internationalization and standardization of distribution structures (e.g. by SAP) 34

35 STOCK AND BONDS 35

36 The SolarWorld stock MASTER DATA Share class ISIN Ordinary bearer shares DE000A1YCMM2 SHAREHOLDERS STRUCTURE Token Market segment Transparency level SWVK Regulated market of the Frankfurt Stock Exchange Prime Standard 50,15% 29,00% Capital stock 14,896, Number of shares 14,896,000 Indices DAX International Mid 100, Prime All Share, Technology All Share, CDAX, ÖkoDAX 20,85% Qatar Solar S.P.C. Dr.-Ing. E. h. Frank Asbeck Free float 36

37 The SolarWorld bonds I BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1116 ISIN Trading venue DE000A1YDDX6 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 Interest Variable interest rate minimum 7% Calculated as 3-months-EURIBOR (min. 1% p.a.) + 6% margin p.a. Coupon date Quarterly, payable at the end of the calendar quarter 37

38 The SolarWorld bonds II BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1017 ISIN Trading venue DE000A1YCN14 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 Interest Variable interest rate minimum 7% Calculated as 3-months-EURIBOR (min. 1% p.a.) + 6% margin p.a. Coupon date Quarterly, payable at the end of the calendar quarter 38

39 Contact Investor Relations Romy Acosta Head of investor relations Tel.: / Andrea Hoffmann Institutional investors & analysts Tel.: /

40 ! THANK YOU FOR YOUR ATTENTION 40