Phönix SonnenStrom AG 1 st Quarter Results 15 th May 2007 SonnenStrom Electricidad Solar Elettricità Solare Solar Electricity Électricité Solaire
Disclaimer The content of this presentation is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phönix SonnenStrom AG shall undertake no liability whatsoever for any loss in connection with this presentation or the information contained therein. This also applies particularly to any eventual loss in connection with the shares of Phönix SonnenStrom AG. This document contains forward-looking statements on future developments which are based on management s current assessment. Words such as anticipate, assume, believe, estimate, expect, intend, can/could, plan, project, forecast, should, and similar terms are indicative of such forward-looking statements. Such statements are subject to certain risks and uncertainties which are mainly outside the sphere of influence of Phönix SonnenStrom AG, but which have an impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor products or technologies of other companies, the development of the planned internationalisation of business activities, fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phönix SonnenStrom AG does not have the intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in time as this is entirely dependent on circumstances prevailing on the day of their release. In some countries the dissemination of this presentation and the information contained therein may be restricted or prohibited under the law. This presentation is therefore expressly not intended for persons resident in legal systems under which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a breach of the law. 2
Table of Contents 1. Company Profile 2. Market Development & Module Supply Situation 3. Financial Parameters & Targets 4. Investment Highlights 3
Business Model - Overview International Manufacturers Solar Modules Crystalline thin-film System integration BOS-Components Inverters Mounting Systems Cables Services Sales Turn-key installation Segment Solar Power Plants Segment Components & Systems Project Investors International Customers Resellers 4
Business Model - Focus Focus on Photovoltaics Exclusively active in the field of photovoltaics, the market segment of renewable energies with the highest growth rate Focus on functional, marketable and profitable PV systems Advantages - Purchase of PV modules and components with the best price-toperformance ratio independent of the manufacturer - High flexibility, fast response to market trends - Low financial risk as limited investment is required 5
International Business Relations and Company Worldwide Locations Phönix SonnenStrom AG, Germany Phoenix Solar S.L., Spain RED 2002 Srl, Italy Phoenix Solar Pte Ltd, Singapore 6
Phönix Group Structure Phönix SonnenStrom AG Sulzemoos, Germany 49 % 100 % 95 % 75 % Renewable Energies Development 2002 Srl Phönix Projekt & Service AG Phoenix Solar S.L. Phoenix Solar Pte. Ltd. Rome, Italy Sulzemoos, Germany Madrid, Spain Singapore 100% Phönix SonnenFonds Verwaltungs GmbH Sulzemoos, Germany 7
Development of the German PV Market & Industry MWp 800 Yearly new installed Capacity in Germany 750 750 M 4000 Revenues, German PV Industry 3700 700 3500 600 600 3000 3000 500 2500 2500 400 2000 300 1500 200 157 1000 750 100 0 79 83 44 2000 2001 2002 2003 2004 2005 2006 500 0 450 500 100 2000 2001 2002 2003 2004 2005 2006 Source: Bundesverband Solarwirtschaft (BSW), 2007 8
German Market - Trends 2007 German market weak in January and February as potential customers were waiting for further price reductions Strong demand on the German market since March which by far exceeds demand compared to the same period in 2006 Components & Systems: trend to larger scale systems up to the MW range Strong demand for thin-film modules First c-si modules sold out until year end German market might grow by 10-20 % in 2007 9
International Markets - Trends 2007 Spanish market - Strong demand driven by large-scale installations - Distribution plays a minor role - 6.5 MWp contract worth 37 million signed with KGAL - 1 MW Jumilla project under construction - Further projects signed or in final negotiations Italian market - Might reach 80-100 MWp in 2007 (8 MWp in 2006) - Removed cap allows for larger installations than 1 MW - Strong demand for mid- to large-scale installations up to and over 1 MWp - Several MW projects under negotiation Spain and Italy motors for development in Europe 10
Competence in Large-Scale Solar Power Plants Under Construction: Jumilla, Spain, 1 MWp 11
Solar Module and Inverter Suppliers of Phönix SonnenStrom 12
Phönix SonnenStrom Product Mix: Thin-Film vs. Crystalline 100% 90% Crystalline 80% 70% 52,1% 45,0% 60% 79,7% 83,1% 78,5% 50% 100,0% 40% Thin-Film 30% 20% 47,9% 55,0% 10% 20,3% 16,9% 21,5% 0% 2002 2003 2004 2005 2006 2007e 13
Increasingly Secure Supply First Solar: 2nd framework contract extension signed in May 2007 (volume 2007 expected > 34 MWp) Sharp: Start of tandem thin-film module deliveries MHI: Tandem thin-film module production to start soon Suntech: start of co-operation with significant module volumes (>10MWp) 2007/2008 delivery framework contract signed with Schott Solar New framework contract with CIS thin-film manufacturer under final negotiation High confidence for a total of 60-70 MWp Significantly improved supply situation in 2007 14
Sales Development M 600 500 500,0 400 300 200 100 0 CAGR 76,0% 0,0 4,0 14,4 20,8 23,5 67,2 111,1 119,0 200,0 1999 2000 2001 2002 2003 2004 2005 2006 2007e... 2010e Up to 2004: Phönix SonnenStrom AG (HGB) 2005 onwards: Revenue of Phoenix Concern (IFRS) 15
Revenue Share of Business Segments 100% 90% 80% 46,3% Components & Systems (Germany) Components & Systems (ROW) Power Plants (ROW) Power Plants (Germany) 70% 60% 72,0% 60,4% 50% 40% 30% 20% 10% 4,0% 24,0% 5,5% 34,1% 6,3% 5,6% 41,8% 0% 2004 2005 2006p 16
EBIT / EBIT-Margin Development M 16,0 6,9% EBIT EBIT- Marge 7% 14,0 6% 12,0 10,0 8,0 6,0 4,0 2,0 3,7% 4,0% 7,7 4,8 2,5 4,5% 9,0 5% 4% 3% 2% 1% 0,0 2004 2005 2006 2007e 0% According to International Financial Reporting Standards (IFRS) 17
Annual Results / Earnings per Share M 7,0 6,0 5,0 4,95 0,92 Net Results EPS / share 1,00 0,90 0,80 0,70 4,0 3,0 0,34 0,55 3,02 0,60 0,50 0,40 2,0 1,70 0,30 1,0 0,20 0,10 0,0 2004 2005 2006 Average # of shares: 5,025,000 5,372,945 5,540,123 0,00 According to International Financial Reporting Standards (IFRS) 18
Quarterly Sales & EBIT Development 2006 M 60 Sales 53,7 T 3500 3000 EBIT EBIT Margin 3013 21,0% 18,0% 50 2500 15,0% 40 30 20 15,3 21,4 28,6 15,0 2000 1500 1000 500 0-500 122 159 0,8% 0,7% 1492 5,2% 5,6% -1498 12,0% 9,0% 6,0% 3,0% 0,0% -3,0% 10-1000 -6,0% -1500-9,0% 0 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07-2000 -10,0% Q1'06 Q2'06 Q3'06 Q4'06 Q1'07-12,0% 19
Order Backlog Development Q1 2006 vs. Q1 2007 M 90 80 78,1 70 60 +446% 61,4 50 40 +590% 30 20 10 14,3 8,9 +209% 5,4 16,7 0-10 31.3.2006 31.3.2007 31.3.2006 31.3.2007 31.3.2006 31.3.2007 Total Power Plants Components & Systems 20
Order Backlog Development Q4 2006 vs. Q1 2007 M 90 80 78,1 70 60 +591% 61,4 50 40 +1153% 30 20 10 11,3 +161% 4,9 6,4 16,7 0-10 31.12.2006 31.3.2007 31.12.2006 31.3.2007 31.12.2006 31.3.2007 Total Power Plants Components & Systems 21
Guidance 2007 & Outlook 2010 Guidance 2007 200 M sales EBIT: 9 M (4.5 % EBIT-margin) International business more than 20 % of sales 60 70 MWp modules of which approx. 50 % thin-film modules Outlook 2010 > 500 M sales Positioning of Phönix SonnenStrom as an internationally active concern Expansion of international business to more than 50 % of sales Approach grid-parity 22
Investment Highlights Business model focuses on the core capabilities, allows for high flexibility and fast exploitation of market opportunities Phönix growth until 2010 above expected world market growth of 25 % reaching 500 M revenues Expansion of international business to more than 50% of sales by 2010 World-leading expertise in large-scale power plant construction using thin-film systems technology Phönix SonnenStrom AG a PV pure play 23
Contact PHÖNIX SonnenStrom AG Hirschbergstraße 8 D-85254 Sulzemoos Phone +49 8135 938-000 www.sonnenstromag.de Fax +49 8135 938-399 Phoenix@SonnenStromAG.de Investor Relations Public Relations Dipl. Volkswirtin Anka Leiner Andrea Zepf Phone +49 8135 938-315 Phone +49 8135 938-313 Leiner@SonnenStromAG.de Zepf@SonnenStromAG.de 24