Slides
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Q 4 2024 Results Conference Georg Hotar, CEO David Forth, CFO Photon Energy N.V. 20 February 2025
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This presentation is for information purposes only and may not be copied in whole or in part for any purpose, or forwarded to third parties or published. This presentation includes written material or slides for a presentation on Photon Energy N.V. (“the Company") and their business activities. This presentation does not constitute a solicitation or offer to buy, sell or subscribe for any shares or bonds in the Company. The information contained herein is not used as the basis for any contract or investment decision. This presentation contains forward-looking statements, i.e. statements that are not based on historical facts, including statements about the opinions and expectations of the Company and the Company's objectives for the future development of its business. These statements are based on current plans, estimates and projections and should not be overvalued by investors. Forward-looking statements speak only as of the date of their publication and the Company is under no obligation to update these statements with respect to new information or future developments and to publish any amended statements. Although this presentation was prepared with the greatest care in terms of the accuracy of the facts and the appropriateness of the statements, this presentation was not reviewed by the Company in sight of its content. Neither the Company nor its directors nor any third party assumes any warranty, expressively or implied, for the accuracy or completeness of the information or opinions underlying this presentation. Neither the Company nor its members, directors, authorized representatives or employees or third parties assume any liability for any damage resulting from the use of this presentation or its content or in connection therewith. 2 Disclaimer Q4 2024 Results Presentation
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Business Results Financial Results Guidance Q&As Lord Howe Island, Australia (1.3 MWp / 3.7 MWh )
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Business Results Financial Results Guidance Q&As Slavkov, Czech Republic (1.2 MWp)
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75.7 111.1 74.1 62.8 16.2 16.2 66.8 66.8 0 20 40 60 80 100 120 140 160 2022 2023 Q3 2024 Q4 2024 Segment: Investments / Electricity Generation Q4 2024 Results Presentation IPP portfolio declining by 11.3 MWp in Q4 2024 as a net results of: ► Sale of 14.5 MWp of operating PV assets in Australia – strategic decision to divest assets with the lowest profitability; transaction completed at the end of October 2024. ► Commissioning of 3.2 MWp in Sarulesti, in Romania. Additional 5.1 MWp is under construction in Hungary. +35.4 MWp 91.9 MWp Support SchemeMerchant 127.3 MWp IPP Portfolio (MWp) 5 141.0 MWp +13.7 MWp Electricity Generation (GWh) ► Q4 2024 electricity generation of 23.4 GWh (-6.6% YoY); decline due to the sale of Australian assets, which previously offset lower generation in winter months in Europe. ► FY 2024 electricity generation of 165.5 GWh (+18.4% YoY) on the back of capacity increase in Romania. ► Specific yield of 173 kWh/kWp in Q4 2024 compared to 200 kWh/kWp in Q4 2023 (-13.5% YoY); good weather conditions but negative impact from sale of assets with higher yield in Australia. 129.6 MWp -11.3 MWp 90.7 122.0 95.8 31.0 17.8 69.7 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2022 2023 2024 +18.4% 121.6 GWh 139.8 GWh 165.5 GWh Support SchemeMerchant
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Segment: Investments / Electricity Prices Q4 2024 Results Presentation 6 Realized Average Revenue in Q4 2024 (EUR/MWh) ► Average realised electricity prices declined from 173 EUR/MWh in Q3 2024 to 136 EUR / MWh in Q4 2024 (-21.4% QoQ) due to negative regulatory changes in Romania: i) revised sales price mechanism, ii) price cap of EUR 80/MWh, iii) deduction of negative prices, and iv) no remuneration for weekends and bank holidays. ► Negative regulatory changes in the Czech Republic moved back to the Parliament; the result of the legislative process is not yet known. ► YE 2024, the share of feed-in-tariff versus merchant was 51.5% FIT and 48.5% Merchant. ► 15.0 MWp in the Czech Republic has been switched to Green bonus but New Energy has purchased this capacity at pre-agreed price hence securing a fixed price of EUR 655/MWh in 2025. The difference will be recorded in the result of the trading arm of New Energy segment. ► Freezing of Feed-in-Tariff Indexation in Hungary at HUF 47,04 / kWh (EUR 114,3 / MWh) impacting 33.6 MWp of our assets. Remaining 7.0MWp is set at HUF 48,31 / kWh (EUR 117,4 / MWh) and will be indexed with inflation. Realized Average Revenue in the Last 12 Months (EUR/MWh) 637 263 113 53 42 136 0 200 400 600 800 Czech Republic Slovak Republic Hungary Romania Australia Total IPP Portfolio 2024Q4 2024 Q3 2023 Q4 -21.4% QoQ Due to regulatory changes in Romania 31.2 66.2 66.8 66.8 99.9 66.6 74.1 62.8 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 2024 Q1 2024 Q2 2024 Q3 2024Q4 FIT Merchant 129 129 133 151 160 161 169 177 171 123 142 171 150 0 20 40 60 80 100 120 140 160 180 200 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Dip in January 2025 is related to higher weight of assets with lower price (Increasing share of Romanian portfolio).
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Other Business Segments Q4 2024 Results Presentation 7 Engineering Revenues (EUR 000s) ► External revenues of EUR 5.5 million in Q4 2024 (+129% YoY) and EUR 17.3 million FY 2024 (+91% YoY), related primarily to EPC contracts for C&I clients in Australia and 20.4 MWp project in New Zealand. ► Roughly 10% of external revenues is stemming from PV Solutions segment for C&I clients in the Czech Republic. ► Internal revenues of EUR 4.9 million related to the construction of 5.1 MWp in Tolna, Hungary. New Energy Revenues (EUR 000s) ► External revenues of EUR 9.5 million (+72% YoY) including capacity market revenues of EUR 6.2 million Q4 2024 (+135% YoY). ► O&T revenues of EUR 3.1 million in Q4 2024 (+8% YoY) resulting from increasing electricity prices. ► Regulatory changes introduced as of 1 October 2024 have resulted in a decrease of expected annual revenues from capacity market contracts from EUR 24 million to approx. EUR 21.7 million for FY 2024. 2,406 1,496 5,733 4,546 5,512 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 External Revenues 5,512 10,323 6,245 6,477 9,486 0 2,000 4,000 6,000 8,000 10,000 12,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 External Revenues
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Other Business Segments Q4 2024 Results Presentation PV Technology Revenues (EUR 000s) 8 ► External revenues of EUR 5.2 million in Q4 2024, compared to EUR 0.6 million in Q4 2023 (+846% YoY). Significantly increased volumes with improving pricing conditions, however the clearance of stock overhang led to reduced margins in Q4 2024. ► Our new team has expanded to several new markets and brought more Tier 1 brands into our portfolio. With stronger efforts, a wider market focus and growing demand for PV technology, we anticipate accelerated growth and profitability from this business in the year ahead. ► External revenues of EUR 1.3 million in Q4 2024 and EUR 4.1 million in FY 2024 (+14% YoY). ► Increased O&M portfolio under contracts now exceeds the threshold of 1.0 GWp. ► So far only 70% is generating revenues with remaining 30% still undergoing construction or in the commissioning phase. O&M Revenues (EUR 000s) 1,063 786 1,027 1,019 1,279 0 500 1,000 1,500 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 External Revenues 553 1,628 2,223 2,200 5,232 0 1,000 2,000 3,000 4,000 5,000 6,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 External Revenues
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External Revenue Mix and Profitability Q4 2024 Results Presentation 9 ► Investments and New Energy segments – main drivers of the Group’s profitability with EUR 18.7 million and EUR 4.7 million contributed to external EBITDA of the Group, respectively. ► Engineering recorded a loss of EUR -1.2 million, primarily due to ongoing EPC contracts where profits are expected to be recognized once certain contract milestones are met. ► External EBITDA in O&M remains negative at EUR -1.8 million due to two factors: i) the delay between contracting and the operational phase of these assets, and ii) increased costs due to the growing number of technicians required to service these assets. ► Technology booked a loss of EUR -1.4 million; significant increase of trading volumes but margins remained squeezed due to the clearance of inventory hangover. ► More balanced revenue mix; Increase of Investment and Engineering share in revenue mix at the expense of Technology trading segment. ► New Energy and O&M remain stable in revenue mix but total value of both is increasing YoY . ► We intend to growth the whole revenue mix and keep a balanced shared of diversified revenue streams. Revenue mix FY 2023 Revenue mix FY 2024 External EBITDA (MEUR) and EBITDA margin in FY 2024 Engineering 13% New Energy 35% Technology 27% Investment 18% O&M 5% Other 2% Engineering 19% New Energy 36% Technology 13% Investment 25% O&M 5% Other 2% -1.21 4.68 18.68 -1.41 -1.81 -7.0% 14.4% 82.7% -12.5% -44.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% -5.0 0.0 5.0 10.0 15.0 20.0 Engineering New Energy Investments Technology O&M Milions EBITDA 2024 EBITDA margin
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Siria, Romania (5.7 MWp) Business Results Financial Results Guidance Q&As
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11 Financial Results Q4 2024 Results Presentation ► Electricity generation revenues increased to EUR 3.373 million (+23.0% YoY). This was achieved despite: (i) adverse regulatory changes in Romania and (ii) the sale of 14.5 MWp of operating PV assets in Australia. ► Significant increase of revenues from other segments, namely PV technology trading, capacity market contracts, and EPC business, which contributed jointly to the overall revenue increase to EUR 21.714 million (+157.0% YoY) ► EBITDA of EUR -1.130 million impacted by several factors: i) raw materials and consumables expenses increased to EUR 13.031 million, up 75.6% YoY due to growing volumes in the technology trading, capacity market contracts, and engineering business ii) Other expenses amounted to EUR 9.226 million, of which half was engineering direct costs due to increased business activity, iii) reduced margins in PV component trading resulting from clearing of stock overhang and iv) negative one-off transactions related to severance payment and balance sheet clearance (EUR 0.55 million). ► EBIT of EUR -4.361 negatively impacted by EUR -1.550 million loss on the sale of Australian assets. ► Total comprehensive income of EUR -4.732 million includes: i) EUR 4.338 million revaluation related to comissioning of 3.2 MWp in Romania and revaluation of existing assets, and ii) negative foreign currency translation differences of EUR -2.056 million. In thousand EUR Q4 2024 Q4 2023 YoY change FY 2024 FY 2023 YoY change Total revenues 25,088 11,194 124.1% 89,229 70,649 26.3% of which from electricity generation 3,373 2,743 23.0% 24,705 21,407 15.4% other revenues 21,714 8,450 157.0% 64,525 49,242 31.0% EBITDA -1,130 -1,044 NA 8,726 3,706 135.5% EBIT -4,361 -2,681 NA -3,134 -5,196 NA Net profit/Net loss -6,535 -6,155 NA -13,604 -15,750 NA Total Comprehensive Income (TCI) -4,732 90 NA -9,935 -459 NA
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Balance Sheet Q4 2024 Results Presentation ► Fixed assets amounted to EUR 215.480 million compared to EUR 225.003 million at the end of 2023. This reduction can be primarily explained by the sale of Australian operating assets . ► Current assets remained stable year-on-year at EUR 53.173 million, up by EUR 0.751 million compared to YE 2023. Main changes include a reduction in inventories by EUR 7.7 million, offset by increased trade and other receivables by EUR 7.8 million. Cash position up to EUR 14.353 million. ► Equity of EUR 59.563 million, down by EUR 9.940 million compared to YE 2023. Changes reflect the negative results of operations during the reporting period; adjusted equity ratio of 25.7% (excluding Hungarian regulatory changes adjusted equity ratio would be 26.5%). ► Long-term liabilities decreased to EUR 165.262 million, down by EUR 13.086 million compared to YE 2023. This reduction reflects reductions in loans and borrowings, including the repayments of EUR 4.7 million following sale of Australian Assets. ► Current liabilities amounted to EUR 43.828 million, up by EUR 14.256 million compared to YE 2023, this is partly due to due to an increase in trade payables of EUR 7.4 million resulting from increased Engineering activities and Technology sales during 4Q 2024, and also to reclassification of a EUR 5.0 million loan from long term to current liabilities. Assets Total liabilities and equity 12 189.3 M 225.0 M 215.5 M 43.2 M 39.4 M 38.8 M21.4 M 13.0 M 14.4 M 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000 31.12.2022 31.12.2023 31.12.2024 Cash and Liquid assets Other current assets Non-current assets 70.5 M 69.5 M 59.6 M 149.8 M 178.3 M 165.3 M 33.6 M 29.6 M 43.8 M 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000 31.12.2022 31.12.2023 31.12.2024 Total equityCurrent liabilities Non-current liabilities Total assets +9.3% Fixed assets +18.9% EUR 253.8 M Equity -1.4% Non-current liabilities +19.0% EUR 277.4 M Equity -14.2% Non-current liabilities -7.3% EUR 268.7 M Total assets -3.1% Fixed assets -4.2%
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0 5 000 10 000 15 000 20 000 25 000 30 000 13 Q4 2024 Results Presentation Cash Flow ► Operating cash flow of EUR 6.429 million in Q4 2024 thanks to positive developments of working capital. ► Investment cash flow of EUR 5.202 million in Q4 2024, primarily driven by positive proceeds from the sale of Australian operating assets and project rights ► Financial cash flow of EUR -10.670 million reflects the repayment of loans (including EUR 4.7 million of Australian liabilities) and scheduled repayments of loans and interest. ► Net cash position increased to EUR 8.437 million. Operating cash flow Investment cash flow Financial cash flow In thousand EUR Q4 2024 Q4 2023 Operating cash flow 6,429 5,651 Investment cash flow 5,202 -8,972 Financial cash flow -10,671 2,601 Net change in cash 960 -720 Cash 31.12.2023 Cash 31.12.2024 5.8 M 19.9 M -2.3 M -15.0 M 8.4 M
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Business Results Financial Results Guidance Q&As Sydney, Australia (100 kWp )
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Photon Energy: Guidance 2024 Q4 2024 Results Presentation 15 ► Preliminary consolidated revenues are EUR 89.2 million, close to the lower end of the guided range of EUR 90-100 million. ► Preliminary consolidated EBITDA is EUR 8.7 million, representing a shortfall of 12.7% compared to the guided amount of EUR 10 million due to the combinations of the following factors: ─ Reversal of the first instalment of other gain realised in Q2 2024 on the sale of the 20.4 MW solar PV project in Poland for the amount of EUR 0.9 million. ─ EUR 0.25 million of higher-than-expected costs related to restructuring and severance payments. ─ EUR 0.30 million of write-offs resulting from a balance sheet review and the clearance of old working capital positions. ► Guidance for year 2025 will be published together with Q1 2025 report. In thousand EUR 94,223 70,649 90,000 24,062 3,706 10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2022 2023 2024 EBITDA Total revenues +26% Results versus Guidance 2024 Total revenues 89,229 8,726 EBITDA +135%
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Q&A
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Thank you for joining us today!
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O&M Contracts Q4 2024 Results Presentation Capacity under O&M contracts, by country (MWp) O&M contracts, geographical split O&M, per status in MWp 18 334 629 631 839 839 887 50 51 51 51 51 51 159 0 200 400 600 800 1,000 1,200 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 O&M Cardio Assets under Management Czech Rep 11% Slovakia 2% Australia & New Zealand 2% Romania 8% Hungary 36% Poland 37% Other 4% 747.9 348.3 0 200 400 600 800 1000 1200 Active Non-Active O&M contracts, per type, in % O&M 81% AuM 14% Cardio 5%
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About Us Q4 2024 Results Presentation We are dedicated to ensuring that everyone has access to clean energy and water. 19* Rating report can be found under https://www.photonenergy.com/en/photon-energy-group/our-esg-commitments.html ** Per- and polyfluoroalkyl substances Active in 10+ countries Headquartered in Amsterdam Founded in 2008 Shares traded in PL, CZ and DE 330+ Employees Sustainability Rating* 180+ MWp constructed 129.6 MWp proprietary portfolio 165.5 GWh produced in 2024 1,100 MWp O&M portfolio 1.0 GWp PV project pipeline PFAS** patent pending Energy Business Lines (Current core activity and strategic area of development) Water Business Line (Strategic area of development) Photon Energy Group +5.1 MWp under construction 389 MW capacity market in 2024
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20 Expansion of Photon Energy’s Business Model The fusion of physical & digital energy to create a customer-centric renewable energy utility. Photon Energy’s Solar Business Services Q4 2024 Results Presentation Lerta’s Grid and Customer Services Project Development Engineering Technology Investments O&M Energy Solutions Demand Response Energy Supply Trading & VPP Off-take
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21 Business Model: Solar Services Q4 2024 Results Presentation Our services cover the entire lifecycle of photovoltaic systems. Project Development We develop projects in-house and acquire them at all stages of development. Engineering (EPC) We design and build on- and off-grid installations, including energy storage solutions. Technology We procure and trade PV components to fit any project’s location, design and budget. Operations and Maintenance We provide a full range of O&M services, including monitoring and inverter maintenance. Electricity Generation We invest in PV power plants for the sustainable production and sale of solar energy.
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22 Business Model: Water Services Q4 2024 Results Presentation Our comprehensive services and solutions help to make clean water accessible to everyone. Treatment We deliver treatment solutions including potable and wastewater treatment, hazardous liquid waste and industrial water treatment. Remediation We offer a range of remediation services, including our unique nanoremediation solution (including PFAS*), to eliminate contaminants from water and soil. Wells and Resources We provide complete services for wells and water resources, from planning and design to maintenance and decommissioning. Research and Development We work with leading academic institutions and participate in governmental research programmes to develop cutting-edge clean water solutions. Water Resource Management We help our customers make the best, most efficient use of their water resources, such as lakes, ponds and industrial water bodies. * Per- and polyfluoroalkyl substances.
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23 GREEN EUR Bond 2021/27 Bond GREEN EUR Bond 2021/2027 Volume EUR 79.4 million Coupon 6.50% p.a., quarterly payment Initial offering 23 November 2021 Ratings/Awards ► IMUG | rating – second party opinion, ► KFM Barometer 4 of 5 stars ► Best Issuer Green SME Bonds 2021 Segment Secondary market: trading on Open Market of the Frankfurt Stock Exchange since 23 November 2021 Covenants ► Dividend restriction (max 50% if EBITDA/ICR > 2) ► Group Equity ratio ≥ 25%* ► Cross default ► Negative pledge ► Pari passu ► Change of Control-Clause ► Transparency clause Denomination EUR 1,000 Term / Redemption Six years / 23 November 2027 at par ISIN DE 000A3KWKY4 * The Group defines and calculates adjusted equity ratio as total equity divided by the sum of interest-bearing debt and equity. Q4 2024 Results Presentation