Capital Stage AG: Strategic Partnership with Solarcentury. November 2, 2017, 11:00 CET

Transcription

1 Capital Stage AG: Strategic Partnership with Solarcentury November, 07, :00 CET

2 Benefits of the partnership with Solarcentury Access to exclusive pipeline of. GW solar PV over years European assets of 6 MW will be offered to Capital Stage by Solarcentury short-term Remaining volume will be selected from European projects and planned solar PV assets in Mexico of in total 700 MW Additional option to invest in 700 MW of existing solar PV assets in UK Highly transparent & predictable growth Expansion of market position as one of the leading European renewable IPPs Clear guidance on future growth regarding timing and volume Execution of short-term pipeline in Europe and some projects in Mexico adds ~ EUR 8 Mio in revenues in the first year of full operation (0) Maintaining conservative investment strategy Taking over Ready-to-Build (RTB) PV parks with clear & country-specific IRR benchmarks Positive exposure to more dynamic growth markets, together with an experienced partner that will maintain a minority interest in the assets All projects subject to a due diligence process

3 Solarcentury International solar PV project developer and operator Overview Industry leader in solar PV, founded in 998 Solarcentury has a highly-successful development, EPC and O&M track Constructed 750 MW and developed more than 00 MW in its target markets Geographical focus on Europe since 998 and Latin America since 0 Strategic realignment Expansion of core business into a global, independent solar power company Focus on investing in solar PV in OECD markets in Europe and Latin America Geographical footprint Mexico Panama Colombia Chile UK Netherlands France Iberia Brazil Argentina Ghana Germany Italy Kenya South Africa Key markets Secondary markets Since 998 Solarcentury has been a key player in global solar PV markets with an ambitious growth strategy

4 Contractual Arrangements reduce transaction costs and speed up execution Framework Agreement Shares Purchase Agreement (SPA) Shareholder Agreement (SHA) Development Service Agreement (DSA) Asset Management Agreement (AMA) Today EPC O&M Sale notice Start of Due Diligence 0 working days exclusive period Framework Agreement Signature Completion SPA executed SHA executed DSA executed First milestone payment under the DSA Sale Acceptance Notice Agreement on the financial model Update of the SPA to reflect specific findings Financial Close by Longstop Date PPA Procurement EPC contract agreed O&M contract agreed AMA contract agreed Second milestone payment under the DSA Cash calls for construction costs COD Third and last payment under the DSA Full consolidation under IFRS 0 Exclusivity for a specific project ends PPAs not bankable Put Option for Capital Stage

5 Regional footprint of strategic partnership Spain 550 MW in the pipeline Late-stage development: 00 MW Mid-stage development 00 MW Early-stage development: 50 MW Mexico 8 MW in the pipeline Mid-stage development: 8 MW Partially participating in current auction process UK Secondary market Acquisition portfolio: ~700 MW Netherlands 9 MW in the pipeline Late-stage development: 6 MW Mid-stage development: 5 MW Early Stage development: 8 MW France 68 MW in the pipeline Late-stage development: 7 MW Mid-stage development: MW Early-stage development 0 MW Solarcentury will offer Capital Stage projects with a total capacity of. GW until 0: Three projects in Europe with a total capacity of 6 MW can be acquired short term Further projects in Europe and Mexico will add up to the. GW target Solarcentury has access to a potential acquisition pipeline of ~700 MW of operating solar PV parks in UK 5

6 France Currently 68 MW in the pipeline Global Horizontal Irradiation (GHI) - France Project MW kwh/kwp COD Project Project Project Project Project Project Investment Highlights Project : Investment volume (*):,8m Tariff/PPA Structure: 0y 6,5 ct/kwh Equity IRR (**): 7,0% * Excluding VAT ** Levered equity IRR 6

7 Netherlands Currently 9 MW in the pipeline Global Horizontal Irradiation (GHI) - Netherlands 6 Project MW kwh/kwp COD Project Project Project 9 08 Project Project Project Investment Highlights Project : Investment volume (*): m Tariff/PPA Structure: 5y 0, ct/kwh Equity IRR (**): >7,0% * Excluding VAT ** Levered equity IRR 7

8 Spain Currently 550 MW in the pipeline Global Horizontal Irradiation (GHI) - Spain Project MW kwh/kwp COD Project Project Project Investment Highlights Project : Investment volume (*): 80m Tariff/PPA Structure: min y PPA*** Equity IRR (**): 9,0% * Excluding VAT ** Levered equity IRR *** Assumptions based on prevailing market conditions, tariff subject to ongoing negotiations 8

9 Mexico Currently 8 MW in the pipeline Global Horizontal Irradiation (GHI) - Mexico Project MW kwh/kwp COD Project.9 00 Project Project Project Investment Highlights assuming realization of projects with in total ~50 MW Investment volume (*): 60m Equity IRR (**): >,0% Due to ongoing auction processes our assumptions (KPIs) are based on projects with in total ~50 MW Each Mexican asset will be majority funded by CS, with Solarcentury maintaining a minority stake of min. 0% in the project Currency: US dollars * Excluding VAT ** Levered equity IRR 9

10 Financials Short-term European and Mexican Projects Total investment volume for short-term European and Mexican projects: ~ 90m (6 MW Europe and ~50 MW Mexico) Cash on hand for investments ~ 0m ~ 50m investment volume Target for Equity ratio remains at app. 5% Currently no equity capital increase planned Group Guidance 07 (in TEUR) Revenues 5,000 Operating EBITDA 60,000 Operating EBIT 97,000 Operating Cash-Flow 50,000 Impact 0 short-term European projects (in TEUR) Revenues 0,000 Operating EBITDA,000 Operating EBIT 0,000 Operating Cash-Flow 0,000 Impact 0 50 MW Mexican projects* (in TEUR) Revenues 8,000 Operating EBITDA,500 Operating EBIT 8,500 Operating Cash-Flow,500 * Due to ongoing auctions in Mexico for PV solar projects, for calculation purposes projects with a total capacity of ~50 MW have been assumed 0

11 Project Pipeline UK Attraktive Secondary Market and a Strong Partner Secondary market in UK offers attractive investment opportunities Ca. 8 GW of operating projects at more than 900 sites (commissioned between 0 and 07), of which an estimated GW are in the hands of short-term investors Very active secondary market UK-based Solarcentury is a strong partner and knows the market perfectly UK is Solarcentury s home market and the company holds business relations with all major players Solarcentury has identified operating portfolios with a total capacity of ca. 700 MW as potential acquisition opportunities Operating data make project evaluation very accurate Each UK asset to be assessed on a case-by-case basis

12 Project Dublin narrative & key messages Draft Strategic partnership between Capital Stage and Solarcentury Major Milestone for Capital Stage to Scale Cost + Speed Trust Value Pipeline of high-quality solar projects to be completed by Solarcentury over the next years Target Capacity:. GW of solar projects in international growth markets Standardized approach to pipeline deal significantly reduces transaction costs Framework Agreement and set of defined subcontracts secures expeditious handover of individual projects Partnership between a veteran solar power developer and operator and one of the most prolific investors Internationally proven development and operation competencies, combined with access to long-term funding and management capabilities of largescale solar projects Delivering long-term return to shareholders by securing a number of attractive developed projects Keeping a conservative risk profile by maintaining the established business model further strengthen its position as leading renewable IPP