1. Ingeniería

SolarWorld AG
Investor Relations
January 2015
SolarWorld
Investor Presentation
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.
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SolarWorld Investors presentation
Agenda
Overview
Business model
Product portfolio
Current business situation
Market environment
Forecast
Stock and bonds
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OVERVIEW
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SolarWorld at a glance
Location
Headquarter in Bonn/Germany
Production in Freiberg/Germany, Arnstadt/Germany and in Hillsboro/U.S.
Sales offices in Germany, U.S., France, Italy, Singapore, South Africa, Japan and U.K.
Established/
IPO
Established in 1998
IPO in 1999 (Düsseldorf Stock Exchange)
Market
position
Global producer of quality crystalline solar solutions with a strong brand
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.)
Annual
capacities
750 MW wafers
1,360 MW cells
1,230 MW modules
Shipments
Shipments Q3 2014:
602 MW
Employees
2,751 employees (as at Sept. 30, 2014)
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


U.S.:
Europe ex GER:
Germany:
38%
30%
18%


Asia:
ROW:
5%
9%
Key drivers
Growth potential in the quality
segment of global solar markets
Turn-around expected
in 2015
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
Economies of scales and
higher utilization rates
High brand awareness
Trendsetter for quality
solutions
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Growth
Profitability
Value
Risk
management
R&D activities
Broad regional market
diversification and wide
customer base
Authentic focus on
sustainability
Group financed until
2019
Last major Western solar panels
manufacturer with production
facilities in Germany and the U.S.
Strategic investors
Qatar Solar S.P.C. and
CEO Frank Asbeck
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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
about 20 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
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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
Supervisory Board
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Dr. Georg Gansen
Chairman
Heiner Eichermüller
Deputy chairman
Dr. Khalid Klefeekh Al Hajri
Member
Faisal M. Alsuwaidi
Member
Dr. Andreas Pleßke
Member
Jürgen Wild
Member
SolarWorld AG - Chronic
2015
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Expected 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.
2006
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
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SolarWorld sites
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BUSINESS MODEL
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SolarWorld business model & sales
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 kits
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 (no customer generates more
than 10% of the revenue)
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Production capacity
Year-end nominal capacities in MW
Freiberg, Germany
750
330
650
Arnstadt, Germany
-
700
200
(250)*
330 (170)*
380
750
1,360
1,230
Hillsboro, U.S.
Group
*available, non-utilized production capacities
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SolarWorld sales structure
Wholesalers
Installers
Consumer
residential/commercial
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two-tier distribution
three-tier distribution
SolarWorld
Installers
Consumer
commercial/utility
SolarWorld brand essence “Real value”
Proven Quality
Best in test PV + Test / PV-Test: excellent /
Ökotest: excellent
Friendly installation and handling
High yield, reliability & durability
Aesthetic design
Batch tracing along the entire value chain
Complaint rates < 1%
Intelligent , perfectly matched
systems
Low maintenance costs
System insurance
A responsible partner
you can trust worldwide
High quality commitment
Authentic focus on sustainability
Excellent environment and social
standards
Performance guarantee up to 30
years
Solar2World engagement
Specialist partner networks
Reliable and clear values
Long-term partnerships
High brand awareness
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Fulfilling customer needs
with leading solutions
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Transparent reporting
PRODUCT PORTFOLIO
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SolarWorld product portfolio
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Solar wafers
Solar cells
Solar modules
Racking systems
Storage systems
Accessories
Solar systems
Turnkey projects
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SolarWorld module innovations
Glass-glass module
72-cell module
60-cell module
Module output of up
to 315W
30-year performance
guarantee
Higher lifespan
Same weight and
dimensions as glassbacksheet modules
Stable aluminum frame
for easy assembly
25-year performance
guarantee
Lower BOS costs than
smaller modules
Simplified and flexible
assembly
Faster return-on-investment
Guaranteed high yields
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SolarWorld energy management and storage
High-performance and
reliable lithium-iron
phosphate battery
Ideal addition to every solar
power system, almost
regardless of size
Modularly expandable
storage capacity
5,000 charge and discharge
cycles, equivalent to a
service life of about 20 years
Eligible for grants from the
KfW Renewable Energies
Storage Program
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Energy management system for the
monitoring of solar energy systems
and intelligent energy distribution at
home
SolarWorld customer-oriented solutions
South oriented aerodynamic system
with no roof penetration
Designed in collaboration with our
customers with intuitive design for fast
installation
Durability and weather resistance with
10-year product warranty
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East-West oriented for optimal use of
roof area thanks to tent-like
construction and low shade distance
Reduced roof load for roofs with low
load bearing reserve
Optimized for low shipping and storage
cost
CURRENT BUSINESS SITUATION
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Shipments and revenue development Q-o-Q
300
250
+ 33%
+ 32%
200
+ 40%
150
270
+ 30%
100
203
154
50
181
129
99
0
Q1 2014
Q2 2014
Shipments in MW
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Revenue in m€
Q3 2014
Shipments and revenue development Y-o-Y
700
600
+ 47%
500
+ 18%
400
300
200
+ 30%
427
626
409
346
100
0
Q1 - Q3 2013
Shipments in MW
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Q1 - Q3 2014
Revenue in m€
Shipment breakdown by region
MW
700
600
56
33
500
400
300
U.S.:
15
15
90
200
Japan:
227
47
38%
5%
Germany:
18%
Europe ex GER
30%
RoW
9%
106
81
100
180
142
0
Q1 - Q3 2013
Europe ex GER
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Germany
Q1 - Q3 2014
U.S.
Japan
RoW
Projects
Main one-off effects in 2014
Successful closing of the financial restructuring
Closing on February 24, 2014
Reduction of financial liabilities by ca. 57 % by issuing of 14,151,200 new shares
Positive one-off effect from the debt-to-equity-swap: € 556m
Acquisition of assets from Bosch Solar Energy AG
Strategic reasons: Production capacity increase, quality player in the European market,
broaden technology portfolio
Preliminary bad-will: € 136m (incl. negative purchasing price of € 120m)
Agreement with raw material supplier
Securing raw material supply to competitive market conditions
Positive effect on liquidity
Non-cash impairment of prepayments amounting to € 30m in Q2 2014
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SolarWorld group indicator
Selected financial indicators
Q1 – Q3 2013
Q1 – Q3 2014
427
626
Revenue
345.6
408.9
EBITDA
-63.1
107.3
n/a
1.5
-95.0
76.7
n/a
-29.1
Group net result
-135.0
489.2
Equity
-148.0
264.0
negative
27.9%
Net indebtedness
843.2
297.5
Cash and cash equivalents
163.8
151.2
in m€
Shipments (in MW)
Adjusted* EBITDA
EBIT
Adjusted* EBIT
Equity ratio
*Adjusted for bad-will Bosch and for impairments of prepayments due to an agreement with a raw material supplier
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Operating performance during the last quarters
Adjusted* EBITDA in m€
Q4 2013
Q1 2014
Q2 2014
Q3 2014
10
1
0
-6
-10
-6
-9
Thereof: € -7 m
ramp-up loss
Arnstadt
(former Bosch)
*Adjusted for bad-will Bosch and for impairments of prepayments due to an agreement with a raw material
supplier as well as for positive effects from long-term contracts with wafer customers
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Working Capital
m€
300
200
100
0
Q3 2013
Q4 2013
Q1 2014
Inventories without advanced payments
Working Capital
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Q2 2014
Q3 2014
Net trade accounts receivable/payable
Balance sheet overview as at June 30, 2014
Equity and liabilities
Assets
946
m€
Non-current assets
m€
946
Shareholders‘ equity
Equity ratio
27.9%
264
424
Current liabilities
174
Inventories
Non-current liabilities
163
Other current assets
172
Cash
151
Assets held for sale
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35
508
MARKET ENVIRONMENT
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Markets with renewable energy policies
Source: Renewable Energy Policy Network for the 21st Century, Global Status Report, Jun. 2014
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Global yearly PV installations in GW
GW
CAGR
2013–2018:
80
70
69
+12.7%
49
54
+7.3%
+0.5%
60
62
50
56
52
53
42
43
45
38
35
35
36
38
39
2013
2014e
2015e
2016e
2017e
2018e
40
30
20
30
30
2011
2012
10
0
historical PV data
low scenario
medium scenario
Source: EPIA, Global Market Outlook For Photovoltaics 2014-2018, March 2014
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high scenario
Expected global installations in the residential
segment
Stable market environment for residential
business
GW
40
Strong focus on product quality and efficiency
35
30
25
20
15
10
30
30
20
19
2014e
2015e
30
19,5
35,5
33
20,5
20
5
0
2016e
conservative scenario
Source: EPIA, Global Market Outlook For Photovoltaics 2014-2018, March 2014
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2017e
2018e
optimistic scenario
Expected demand in core markets in GW
2014e
2015e
2016e
2017e
2018e
U.S.
Japan
Germany
Italy
France
Rest of Europe
0
2
Source: EPIA Forecast, March 2014
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Investor Relations | January 2015
4
6
8
10
U.S. market development
GW
Expected U.S. demand
12
Anti-dumping and countervailing duties restored fair
competition
10
better financing and leasing conditions will boost
residential market
8
total solar installations 3q 2014: 3,965 MW (+50% Yo-Y)
6
residential segment increased 55% Y-o-Y in 3q 2014
4
Key non-utility solar states 2014e
2
0
2013
2014e
Residential
2015e
2016e
Commercial
Utility
California
872 MW
Massachusetts
319 MW
New Jersey
185 MW
Arizona
149 MW
New York
135 MW
Total
Source: U.S. Solar Market Insight Report, Q3 2014
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Investor Relations | January 2015
2,338 MW
European market development
GW
20
Expected demand in Europe
15
16
13.7
14.5
10.7
8.9
10.4
11.3
9.8
6.4
7
7.4
8
8.3
2014e
2015e
2016e
2017e
2018e
13
10
11
17.2
5
Stable European market
development despite strong
fluctuation within individual
countries
Major PV markets > 1 GW
in Europe:
0
2013
historical installations
low scenario
medium scenario
high scenario
Source: EPIA, Global Market Outlook For Photovoltaics 2014-2018, March 2014
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Investor Relations | January 2015
Germany
UK
Italy
France
Japanese market development
GW
Expected demand in Japan
Market by segment in 2013
10
8
25%
6
7 GW
4
75%
2
0
2013
2014e
2015e
2016e
Rooftop
Ground-mounted
Ca. 20% of new installations in 2013 were residential rooftop systems <10 kW
Ca. 30% of new installations in 2013 were commercial systems between 10 kW
and 50 kW
Japanese customers focus on quality, reliability and high yield
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FORECAST
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Further cost-saving potential
Integration of the Arnstadt facility in the SolarWorld Group
̶
Leaner processes
̶
Elimination of redundancies
Optimization of purchasing conditions and renegotiation of supplier contracts
Further internationalization and standardization of distribution structures
Optimization of production processes
̶
Higher utilization of production capacities
̶
Reduction in material use
̶
Use of alternative more cost-effective materials
Improvement of product efficiency
̶
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Several R&D projects
Investor Relations | January 2015
Forecast 2015 - 2016
2016
2015
Revenue > € 1 billion
Shipments > 1,000 MW
Revenue increase by 20%
Positive EBIT
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STOCK AND BONDS
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The SolarWorld stock
MASTER DATA
SHAREHOLDERS‘ STRUCTURE
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
Dr.-Ing. E. h. Frank Asbeck - 20.85%
Qatar Solar S.P.C. - 29.00%
Strategic Value Partners - 4.93%
Free float - 45.22%
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Investor Relations | January 2015
The SolarWorld bonds I
BOND SOLARWORLD FRN IS. 2014/2019 SERIE 1116
43
ISIN
DE000A1YDDX6
Trading venue
Frankfurt Stock Exchange
Issue date
24 February 2014
Volume
139,386 notes
Maturity period
5 years
Maturity date
24 February 2019
Note nominal value
371.08 €
Interest
Variable interest rate – minimum 6%
Calculated as 3-months-EURIBOR (min. 1% p.a.) + 5% margin p.a.
Coupon date
Quarterly, payable at the end of the calendar quarter
Scheduled repayments of notes
21.43 € on 30 September 2015
28.13 € on 30 June 2016
Investor Relations | January 2015
The SolarWorld bonds II
BOND SOLARWORLD FRN IS. 2014/2019 SERIE 1017
44
ISIN
DE000A1YCN14
Trading venue
Frankfurt Stock Exchange
Issue date
24 February 2014
Volume
387.055 notes
Maturity period
5 years
Maturity date
24 February 2019
Note nominal value
381.50 €
Interest
Variable interest rate – minimum 6%
Calculated as 3-months-EURIBOR (min. 1% p.a.) + 5% margin p.a.
Coupon date
Quarterly, payable at the end of the calendar quarter
Scheduled repayments of notes
22.03 € on 30 September 2015
28.92 € on 30 June 2016
Investor Relations | January 2015
Contact
Investor Relations
SolarWorld AG
Martin-Luther-King-Str. 24
53175 Bonn
Germany
Tel.:
Fax:
+49 228 55920-470
+49 228 55920-9470
[email protected]
http://www.solarworld.de/en/investor-relations
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Investor Relations | January 2015
Romy Acosta
Head of Investor Relations
Tel.: +49 228/55920-476
E-Mail: [email protected]
Andrea Hoffmann
Institutional Investors & Analysts
Tel.: +49 228/55920-470
E-Mail: [email protected]
!
THANK YOU
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Investor Relations | January 2015
FOR YOUR ATTENTION