SolarWorld AG Investor Presentation · SolarWorld investor presentation Overview Business model ......

Investor Presentation

SolarWorld AG

SolarWorld AG

Investor Relations

April 2017

Disclaimer

Investor Relations | April 2017

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 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 forward-looking 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

Agenda

Investor Relations | April 2017 3

SolarWorld investor presentation

Overview

Business model

Product portfolio

Current business situation

Market environment

Forecast

Stock and bonds

OVERVIEW


SolarWorld at a glance


Location 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/ IPO

Established in 1998 IPO in 1999 (Düsseldorf Stock Exchange) listed on the Prime Standard of the Frankfurt Stock Exchange since 2003

Market position

Global producer of high quality monocrystalline solar solutions with a strong brand Technologically leading manufacturer of PERC and bifacial modules 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.)

Nameplate capacities

600 MW ingots 600 MW wafers 1,500 MW cells 1,500 MW modules

Shipments

Employees 3,034 employees (as at December 31, 2016)

Shipments 2016: 1,375 MW Revenue 2016 : € 803m

U.S.: 50% Europe (w/o GER): 28%

Germany: 14% ROW: 8%

Management Board

6

Philipp Koecke (CFO) Chief Financial Officer

(since 2003) Accompanied organic growth and

M&A activities Implementation of financial

restructuring

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 2011-2014)

President of SolarWorld Americas Inc.

Strategic development of global purchasing

Longstanding experience in purchasing, particularly in Asia and the electric industry

Frank Henn (CSO) Chief Sales Officer (since 2004) Pushed forward internationalization

of sales Established international network of

installers and wholesalers

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

20.85 percent of shares


Supervisory Board

7 Investor Relations | April 2017

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.

Daria Revina

Senior Business Support Specialist to the CEO at Qatar Solar Technologies Q.S.C.

Heiner Eichermüller

senior business consultant

Dr. Andreas Pleßke

attorney-at-law

Jürgen Wild

managing director of RAG-Stiftung Beteiligungsgesellschaft mbH

Shar

eh

old

er

rep

rese

nta

tive

s

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

Emp

loye

e r

ep

rese

nta

tive

s

SolarWorld locations worldwide


BUSINESS MODEL


Production of monocrystalline high-efficiency solar solutions only

Vertically integrated solar manufacturer across all steps of the value chain

Worldwide sales of high-quality solar energy solutions under strong brand

Lean product portfolio focused on PERC, bifacial and 5-busbar technology

SolarWorld business model


Business model

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 and various regions

International Distribution Network

Focusing of production

ARNSTADT

FREIBERG

HILLSBORO

Crystallization Cell production

Wafering Module production

Cell production Module production


Production capacities


600

600

1000

700

500

500 300

Ingot

Wafer

Cell

Module

Germany U.S. OEM

1,500 MW

1,500 MW

600 MW

600 MW

in MW

Germany

Germany

Germany

Germany

U.S.

U.S.

OEM

SolarWorld distribution structure


Wholesalers

Consumers

Installers Installers

Consumers

SolarWorld

commercial/utility residential/commercial

thre

e-t

ier

dis

trib

uti

on

13

two

-tie

r d

istr

ibu

tio

n

Further cost-saving potential


Technological focusing

• Focusing on high-efficiency products • PERC only • 5-busbar cells • Bifacial modules and systems

• Streamlining of product range

Procurement

• Optimization of purchasing conditions and renegotiation of supplier contracts

• Reduction of expenses through focusing on fewer product variants


Procurement

Administrative structures

Optimized production processes

Further cost-saving potential



• Focusing of production steps at individual sites to develop the most competitive units

• Headcount reduction in manufacturing • Decrease of material use • Use of alternative more cost-effective

materials


• Further standardization and optimization of distribution structures

• Headcount reduction • Reduction of administrative expenses


Procurement



PRODUCT PORTFOLIO



Comprehensive Product Range

Solar modules Mounting systems Inverters

System monitoring Energy management Services

SolarWorld Product Strategy and Portfolio


Product strategy and unique selling points

provider of comprehensive solar solutions

manufacturer of high-performance modules with

exceptional durability

verified and reliable product quality

particular aesthetics

high availability due to reduced number of products

SolarWorld focuses on high-efficiency technology such as PERC and 5 busbar cells to offer a

clear and uncomplicated high-performance module portfolio

PERC 5 busbars

Bifacial glass-glass modules

72-cell modules

Monofacial glass-film modules

Focused Module Portfolio


PERC modules 280-300 W

Sunmodule Plus mono

Sunmodule Plus mono black

Sunmodule Bisun protect

Bifacial modules 280-290 W

Sunmodule Bisun protect clear

Sunmodule XL mono

72-cell modules 340-350 W


Product innovation: Bifacial module with white grid structure

White grid structure increases front side power output by

reflecting the light in the area between the cells directly back

into the cell

Despite the white coating, the reflected light can penetrate the

rear side of the cell undisturbed to achieve the bifacial surplus

Particularly long lifespan through the use of glass on the front

and rear sides of the module

30-year linear performance guarantee – at least 86.85 % output

after 30 years

Product benefits New Sunmodule Bisun Protect

New bifacial module with special white coating on the inside of the back glass

MARKET ENVIRONMENT


105

96

90

86

85

101

96

91

83

79

2021e

2020e

2019e

2018e

2017e IHS

GTM Research

Development of annual global PV installations


Source: IHS PV Demand Market Tracker Q1 2017, April 2017; GTM Research Global Solar Demand Monitor, April 2017

Global new installations in GW

CAGR 2016–2021e

+ 5.3% + 6.0%

U.S. market development


U.S. total +2.3%

residential +2.5%

commercial +2.0%

utility +2.3%

CAGR 2016–2021e

2017e 2018e 2019e 2020e 2021e

Utility Commercial Residential

17.4 16.5

12.9 12.2

17.9

Expected U.S. demand in GW

Source: IHS PV Demand Market Tracker Q1 2017, April 2017

58% 56%

60% 66%

71%

22% 21%

19%

17% 15%

20% 22%

21%

16% 14%

European market development


2017e 2018e 2019e 2020e 2021e

Rest of Europe Turkey Netherlands

Italy France Germany


Expected demand in Europe by region in GW CAGR 2016–2021e

9.6

11.1 11.7

13.1

8.3

Germany + 9%

France + 15%

Italy + 12%

Netherlands + 0.4%

Turkey + 5%

Europe total + 10%

European market development


2017e 2018e 2019e 2020e 2021e

Utility Commercial Residential


Expected demand in Europe by segment in GW

CAGR 2016–2021e

9.6

11.1 11.7

13.1

8.3

Residential + 10%

Commercial + 15%

Utility + 7%

24% 24% 26% 26% 25%

55% 55%

54% 54% 55%

20%

21%

19% 19%

19%

CURRENT BUSINESS SITUATION


Shipments and revenue development Y-o-Y


1159

1,027

763 803

2015 2016

Shipments in MW Revenue in m€

+ 19 %

+ 5 %

Development of shipments by quarter


Shipments in MW

2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016

modules & systems 1,108 333 338 331 334 1,336

wafers & cells 51 7 4 14 14 39

1,159

340 342 345 348

1,375

Total shipments in MW

Shipment breakdown by region


196 181

303 376

546

667

64

112

2015 2016

RoW

U.S.

Europe ex GER

Germany

Modules and systems shipped in MW

8%

50%

28%

14%

1,108

1,337

+ 33 %

SolarWorld group indicators


Selected financial indicators in m€

2015 2016

Total shipments 1,159 MW 1,375 MW

Revenue 763.5 803.1

EBITDA 40.8 -25.8

EBIT -4.2 -98.8

Group net result -33.3 -91.9

Equity* 208.9 121.8

Equity ratio* 24.0% 17.7%

Net indebtedness* 217.2 302.4

Cash and cash equivalents* 188.6 88.1

30

* as at December 31, respectively

Balance Sheet as at December 31, 2016

88

102

186

311

Equity & Liabilities Assets

Inventories

Other current assets

Cash

Non-current liabilities

371

194

122

687

in m€ in m€

31

687

Current liabilities

Shareholders‘ equity Non-current assets


Equity Ratio 17.7%

32

Cash Development 2016

m€

0

50

100

150

200

Jan 01, 2016 Inventory(WC)

Repayments Investments(net)

Operatingresult

Interest Others Dec 31, 2016


189

-33

-36

-10

-16

-15 +9 88

Working Capital Development q-o-q

176 183 178

231

178

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Inventories without advanced payments Net trade accounts receivable/payable

Working Capital

Working Capital in m€

33 Investor Relations | April 2017

Hemlock ./. SolarWorld Industries Sachsen GmbH

34

SolarWorld Industries Sachsen Freiberg, Germany

LONG-TERM DELIVERY CONTRACT &

SolarWorld Americas Inc. Hillsboro, Oregon

• 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

COURT CASE

• 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


U.S. Germany

STOCK AND BONDS


The SolarWorld stock


MASTER DATA

Share class Ordinary bearer shares

ISIN DE000A1YCMM2

Token SWVK

Market segment Regulated market of the Frankfurt Stock Exchange

Transparency level Prime Standard

Capital stock € 14,896,000.00

Number of shares 14,896,000

Indices DAX International Mid 100, Prime All Share, Technology All Share, CDAX, ÖkoDAX

36

29,00%

20,85%

50,15%

SHAREHOLDERS‘ STRUCTURE

Qatar Solar S.P.C.

Dr.-Ing. E. h. Frank Asbeck

Free float

The SolarWorld bonds I


BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1116

ISIN DE000A1YDDX6

Trading venue 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 € 339.71 (as at March 31, 2017)

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

The SolarWorld bonds II


BOND SOLARWORLD FRN IS. 2014/2019 SERIES 1017

ISIN DE000A1YCN14

Trading venue 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 € 349.26 (as at March 31, 2017)

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

Investor Relations

+49 228 55920-470

+49 228 55920-9470

[email protected]

http://www.solarworld.de/en/investor-relations

Contact


Romy Acosta Head of investor relations

Tel.: +49 228/55920-476 E-Mail: [email protected] Andrea Hoffmann Institutional investors & analysts

Tel.: +49 228/55920-472 E-Mail: [email protected]

! THANK YOU FOR YOUR ATTENTION


SolarWorld AG Investor Presentation · SolarWorld investor presentation Overview Business model ......

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