INVESTOR PRESENTATION Q1 2019 71 86 100 118 154 2018 220 2020 500 2025 22.02.2019 1
COMPANY OVERVIEW B U S I N E S S M O D E L & P O R T F O L I O F I N A N C I A L P O S I T I O N C A PA C I T Y & M A R K E T C A P 2
Business Model & Portfolio Pure-play PV operator with 166 MW own assets, and 77 MW external management contracts IPP PORTFOLIO ASSET MANAGEMENT PV ESTATE TERMINAL VALUE SYNERGIES CASH FLOWS No land lease costs Recurring fees from Acquire assets external investors Repowering potential for Develop new projects PV parks already in use Economies of scale Development potential for (Re-) finance M&A potential unused land Optimise & operate 166 MW 77 MW 110 HECTAR Acquired from Ernst Russ AG on 19.02.2019 3
Business Model & Portfolio Current IPP portfolio generates annual EBITDA of at least EUR 34 Mio. Portfolio characteristics LOCATIONS > 1 MW CAPACITY TARIFF YIELD REVENUES EBITDA MWp EUR/MWh kWh/kWp EUR Mio EUR Mio Freefield PV 91 246 1,003 22.4 19.9 Rooftop PV 72 262 881 16.7 14.0 Onshore wind 3 86 2,400 0.6 0.4 IPP PORTFOLIO 166 246 973 39.7 34.3 ▪ PV assets concentrated in Bavaria, Eastern Germany, and Rhineland-Palatinate ▪ Average plant size: 1.2 MWp ▪ Average year of commissioning: 2011 ▪ Average feed-in-tariff: EUR 246/MWh. ▪ Tariffs are state-guaranteed and fixed for 20 years + year of commissioning ▪ Rooftop and land lease contracts usually running 20 years + at least 5 years extension option ▪ Small diversification into onshore wind (up to max. 10% of portfolio) 4
Financial Position Robust financials with annual dividend of EUR 0.10/share EBITDA EVOLUTION AND RETURN CASH FLOW PER SHARE AND EQUITY RATIO 0.60 35% 35.0 12.0% ~9.5% 29% ~ 30% 30% 9.6% 0.50 30.0 8.9% 25% 10.0% 23% 25% 7.6% 0.40 25.0 8.0% 18% 20% 20.0 0.30 0.52 0.49 5.4% 6.0% 33.0 15% 15.0 29.9 0.45 27.9 0.41 0.20 24.9 4.0% 10% 10.0 0.26 16.7 0.10 5% 2.0% 5.0 0.10 0.10 0.00 0% 0.0 0.0% 2014 2015 2016 2017 2018F 2014 2015 2016 2017 2018F Dividend per share Cash Flow per share Equity ratio EBITDA in EUR Mio. Return (clean EBITDA/total assets until 2017, EBITDA/total assets for 2018F) 5
Capacity and Market Cap Track record of growth and capital appreciation 2018-19 CAPITAL- 200 200 Capacity in MWp Market cap in EUR Mio 2018 INTENSIVE 190 UP TO ~150 MWP 190 GROWTH TO 220 THROUGH MWP BY 2020 180 180 ACQUISITION OF DEVELOPER + 170 170 ALTERNATIVE 2016-17 160 160 FINANCING GROWTH TO 115 MWP THROUGH PRIVATE PLACEMENTS 150 150 2015-16 ACQUISITION 140 140 MISKINA IN NEW SHARES + 130 130 OPTIMISATION 2014-15 120 120 (24 MWP) ACQUISITION COLEXON IN NEW SHARES + 110 110 RESTRUCTURING 100 (26 MWP) 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 6
VIEW ON GERMAN PV MARKET P V C O M P E T I T I V E N E S S E E G F E E D - I N TA R I F F S N E W M O D E L S T O M A R K E T P V 7
PV Competitiveness Solar PV now the lowest-cost power generator, even cheaper than conventional power FALLING HIGHER EFFICIENCY MODULE COST LEVELISED COST OF MODULES DECLINES ELECTRICITY (LCOE) 2.80 Crystalline China 2.40 Crystalline Europe (Germany) 2.00 Crystalline Japan Thin film 1.60 1.20 0.80 0.40 - Feb 10 Jun 10 Oct 10 Feb 11 Jun 11 Oct 11 Feb 12 Jun 12 Oct 12 Feb 13 Jun 13 Oct 13 Feb 14 Jun 14 Oct 14 Feb 15 Jun 15 Oct 15 Feb 16 Jun 16 Oct 16 Feb 17 Source: IRENA Source: IRENA Source: Lazard 8
EEG Feed-In Tariffs Fixed tariffs still at attractive levels, but difficult to scale up SYSTEM COST GERMANY 750 KWP ROOFTOP 7C SOLARPARKEN VIEW: ▪ No relevant decrease in tariffs for new-build since 2014 due to EUR/Wp EUR/MWh annual capacity additions below the 2.5 GWp regulatory target 1.40 120 ▪ 20% decline in panel prices in H2 2018 reflecting: 110 1.20 100 1. Subsidy stop for new PV projects in China 90 1.00 2. End of import duty on Chinese panels in Europe 80 70 0.80 ▪ Government decided a to cut new-build tariffs for large rooftop 60 0.60 by 10% during the period Feb-April 2019. 50 40 ▪ The <750 kWp segment remains attractive, but limitations to 0.40 30 scale up in size and time (no longer EEG tariffs once 52 GWp cap 20 0.20 10 is reached) - - 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 H1 H2 H1 H2 H1 H2 H1 H2 Q1 Q2 BOS EUR/Wp PV Panel EUR/Wp FIT Large rooftop EUR/MWh FIT FOR NEW PROJECTS Q2’19 Freefield < 750 kWp EUR/MWh Large rooftop < 750 kWp: ~ EUR 90/MWh Freefield < 750 kWp: ~ EUR 80/MWh 9
New Models to Market PV Power A. Market Parity OPTION A: SELL POWER AT THE AUCTION (FFAV TARIFF) WHOLESALE POWER PRICE AND PV AUCTIONS > 750 KWP ▪ Fixed state-guaranteed tariff for 20 years 100 ▪ Principally from 750 kWp to 10 MWp 90 ▪ EEG limitations: rooftop, conversion land, alongside motorways 80 ▪ Allocated FFAV or auction tariff is paid out on a monthly basis as 70 60 market price + market premium (at least zero) 50 ▪ Captures upside from rising market price (FFAV tariff as minimum) 40 ▪ Special auctions: 500 MWp in Dec ‘19, 1 GWp in 2020 and 1 GWp 30 in 2021 20 10 - OPTION B: CORPORATE PPA 27/07/2006 27/01/2007 27/07/2007 27/01/2008 27/07/2008 27/01/2009 27/07/2009 27/01/2010 27/07/2010 27/01/2011 27/07/2011 27/01/2012 27/07/2012 27/01/2013 27/07/2013 27/01/2014 27/07/2014 27/01/2015 27/07/2015 27/01/2016 27/07/2016 27/01/2017 27/07/2017 27/01/2018 27/07/2018 27/01/2019 ▪ Long-term contract with utility or corporate wholesale customer who purchases green power at a fixed price ▪ No limitation on size or on land as long as compliant to EEX market price (EUR/MWh) construction law FFAV/auction tariff EUR/MWh ▪ Suitable for large freefield installations ▪ Driver: LCOE of large freefield PV (EUR 45-60/MWh in 2019) ▪ Corporate PPA market in Germany only a recent occurrence 10
New Models to Market PV Power B. Grid Parity DISTRIBUTED GENERATION AT MEDIUM-VOLTAGE ON-SITE PPA 180 ▪ Long-term contract with on-site client who buys green ~ 160 160 power at a fixed price ▪ At mid-voltage level, end-user / industrial clients pay on 140 average EUR 160/MWh for their power including the EEG 120 levy of EUR 64/MWh. 100 91 90 64 ▪ Ideally suited to large rooftop PV installations 5 80 ▪ Driver: LCOE of rooftop PV (<EUR 90/MWh in 2018) 60 ▪ On-site consumption market not developed yet in 40 Germany as feed-in tariffs for large rooftops, prior to Prices in EUR/MWh 20 Q2’19, were at higher levels than the theoretical pricing of - a PPA (EUR 91/MWh) Industrial client EEG levy for Imbalance risk Theoretical FIT large roof ▪ Significant potential as from Q2’19 due to the further <20 kV 2019 pricing for PPA 750 kWp, Q2'19 monthly drop in feed-in tariffs for rooftop projects 11
CAPACITY PLAN 2018-2020 T I E R - T W O TA R G E T 2 0 2 0 : 2 2 0 M W P V I S I O N 2 0 2 5 : 5 0 0 M W P 12
Tier-Two Target: Tier-2 player to benefit from improved valuation and cost of capital OVERVIEW LISTED YIELDCOS & GREEN IPP’S IN EUROPE MANAGEMENT VIEW TIER 1+2 TIER 3 Clear benefits for 200 Mio. EUR market caps / 200 MW players 1,600 - Access to a broader class of institutional investors who are < 200 MW 1,400 < 200 Mio. EUR looking for long-term cash flows and defensive yield stocks. 1,200 - Increased leverage potential at corporate level (to finance 1,000 “big” deal) and cheaper debt 800 - Tier 1+2: average net debt/EBITDA ~6x 600 - Tier 3: average net debt/EBITDA ~5x 400 - Improved equity valuation 200 - Tier 1+2: average price/cash flow ~8x (min. 6x) - - Tier 3: average price/cash flow ~5x Market cap EUR Mio. MW 13
Target 2020: 220 MWp Continuation of growth acceleration with EUR 16 Mio fresh capital required to meet 220 MWp BREAKDOWN OF BUILD UP PLAN TO 220 MW (STATUS NOV’18) MANAGEMENT INDICATION ▪ 66 MWp planned additions: through own development and 250 220 acquisition of operating parks ▪ 200 Capex budget: EUR 107 Mio. ▪ Project financing: EUR 72 Mio. 154 ▪ Equity financing: EUR 35 Mio. 150 118 ▪ EBITDA contribution: at least EUR 9 Mio. The 66 MWp new 100 investments assume an average specific yield of 965 kWh/kWp and an average FIT of EUR 170/MWh (mix of old parks and 50 new-build). ▪ Net cash flow contribution: at least EUR 7 Mio. 0 ▪ Requires capital increase of EUR 16 Mio. 2017 2018 2019 2020 OBJECTIVE TO ALLOCATE EQUITY OF EUR 35 MIO. YIELDING NET CASH FLOW OF > EUR 7 MIO. 14
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