phoenix solar company presentation
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Phoenix Solar AGCompany Presentation
January 2010
2
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. Phoenix Solar 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 Phoenix Solar 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 Phoenix Solar 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. Phoenix Solar 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.
3
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
4
Phoenix Solar at a Glance
� Founded Nov. 1999, headquartered near Munich,
global workforce >300
� One of the leading globally active PV system integrators
(3 continents, 8 countries)
� CAGR revenue: 78%
� Continuously profitable since 2004
� Stock-listed since November 2004, TecDAX-listed since March 2008
� First mover in PV thin-film technology,
holding 12% world market share in 2007 and 10% in 2008*
� Covered by 22 banks, further coverage under preparation
* Source: Solar Outlook (Navigant Consulting), Phoenix analysis
5
Worldwide Company Locations in 8 Countries and 3 Continents
Phoenix Solar
Pte Ltd,
Singapore(Since Dec. 2006)
Phoenix Solar S.r.l., Italy
(Since July 2006)
����
����
Phoenix Solar Pty Ltd,
Australia(Since July 2008)
Phoenix Solar E.P.E., Greece
(Since June 2008)
����
All 100% owned subsidiaries, except Phoenix Solar Singapore (75%) and Phoenix Solar Oman (70%)
����
Phoenix Solar AG, Germany
(Since Nov. 1999)
Phoenix Solar
S.L., Spain(Since Apr. 2006)
����Phoenix Solar SAS, France
(Since Sept. 2009)
Phoenix Solar L.L.C, Oman
(Since Dec. 2009)
����
Phoenix Solar,USA
(coming H1 2010) ����
6
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
7
Business Model
International Manufacturers
Solar Modules BOS-Components
SegmentSolar Power Plants
SegmentComponents & Systems
Serv
ices
System integration
Turn-key installation
Sale
s
• Inverters
• Mounting Systems
• Cables
• Crystalline
• Thin-film
Project Investors International Customers Resellers
8
0,1 MWp 1 MWp 10 MWp
Components &
Systems
Offering to the Customer
Power Plants
Phoenix Solar’s business model covers all PV system sizes:
• Components & Systems 1kWp - 1 MWp • Power Plants > 500 kWp
* not to scale
Power Plant Sales
Segments
Investor Business
10 MWp+5 MWp1 MWp500 kWp
Large-Scale
1 kWp* 20 kWp
CommercialResidential
9
Focused Business Model
Focus on Photovoltaics
� Exclusively active in the field of photovoltaics, the market segment of
renewable energies with the highest growth rate
Focus on PV System Technology
� Focus on core competence of high-yield, long-lasting and profitable
PV systems
� System integrators are the gateway to the end customer
Advantages of Focused Business Model
� Purchase of PV modules and components with the best
price-to-performance ratio independent of the manufacturer
� High flexibility, rapid response to market trends
� Low financial risk as limited investment is required
10
Target Customers for Large Solar Power Plants
� Closed Solar Funds as capital
collection point for private investors
� Participation starting at €10,000
� Fund capitalisation starting at €20M
� Expected Return: > 6%
� Institutional investors, insurance
companies, pension funds
� Risk spreading (in addition to equities, annuities, real estates)
� Planable cash flow!!
� Trade, Industry and Commerce
� Secure financial returns
� Green image benefit
� Local Communities
� Secure financial returns
� Sensible use of agricultural landsPo
we
r P
lan
t S
ale
sE
PC
Co
ntr
ac
ts
Inve
sto
r B
us
ine
ss
Pro
jec
t O
wn
ers
hip
11
Business Model – Synergies between Power Plant and Components & Systems Segments
Synergy
Our business segments' strengths generate synergies
SegmentSolar Power Plants
SegmentComponents & Systems
Project Investors International Customers Resellers
Technical Know-how
Product innovation
Cost reduction
Demand balance
Strengthening of purchasing position
12
Business Model – Solar Power Plants
� Project development
� Planning of power plants
� Procurement and delivery
� Turn-key installation
� Financial consulting / fund structuring
� Plant management
� Operation and maintenance
A full-service package in the Power Plant segment
Phoenix Solar offers project investors an all-inclusive services & products
package
13
Competence in Large-scale Roof-Mounted Solar Power Plant Design & Construction
Munich Trade Fair (Germany), 2.1 MWp
Completion November 2002
14
Competence in Large-scale Ground-Mounted Solar Power Plant Design & Construction
SolarPark Miegersbach (Germany), 5.3 MWp
Completion December 2005
15
Competence in Large-scale Ground-Mounted Solar Power Plant Design & Construction
“La Solana” (Spain), 6.5 MWp
Completion March 2008
16
Features of Phoenix Solar’s Operation, Monitoring & Maintenance Service
� Utility standard 24/7 stand-by service independent from inverter manufacturers
� 24-hour reaction time in case of plant failure
� International service network with local contact persons
� Customer access to all plant data
� Reporting to customer (monthly, quarterly, yearly)
� Continuous plant optimisation
� 100 MWp under management
17
1,149 1,171 1,156
987 982 978
0
200
400
600
800
1,000
1,200
2006 2007 2008
1,123 1,1131,087
918 914 909
0
200
400
600
800
1,000
1,200
2006 2007 2008
Outperformance of Large-Scale Power Plants
kWh / kWp Miegersbach (5.3 MWp) kWh / kWp Munich Trade Fair
Actual
Projected
+16% +19% +18%+22% +22% +20%
Phoenix Solar’s system design & operation know-how leads to significant performance improvements
18
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
19
Solar Module and Inverter Suppliers
Inverter Suppliers
20
20.3% 16.9%21.5%
47.9% 51.9%57.2%
79.7% 83.1%78.5%
52.1% 48.1%42.8%
66%74.2%
34%25.8%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009 2010e
Product Mix: Thin-film vs. Crystalline Modules
Crystalline
Thin-film
Phoenix Solar is a leader in thin-film technology:
12% global market share in 2007 and 10% in 2008
21
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
22
Guidance 2009 & Outlook 2013
� Sales: 1.5 bil. €
� EBIT: 100 €M
� Positioning of Phoenix
Solar as a globally leading
system integrator
� Expansion of international
business to more than 65%
of sales
� Sales: 430 – 480 €M
� EBIT: positive
Long-term Outlook 2013(as of 27 January 2009)
Guidance 2009 (revised on 12 November 2009)
23
~430
~50
0.0 4.0 14.4 20.8 23.5
67.2
111.1 119.0
260.1
402.5
1500
~480
0
100
200
300
400
500
600
700
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e ... 2013e
Sales Development
Up to 2003: Phoenix Solar AG (HGB) 2004 onwards: Revenue of Phoenix Concern (IFRS)
CAGR 78 %
€ M
24
4.8
7.7
2.5
22.3
33.8
8.4%
4.0%
3.7%
6.9%
8.6%
0
5
10
15
20
25
30
35
40
2004 2005 2006 2007 2008 ... 2013e
0%
2%
4%
6%
8%
10%
EBIT / EBIT-Margin Development
According to International Financial Reporting Standards (IFRS)
EBIT(€ M)
EBITMargin
100
25
Annual Results / Earnings per Share
23.70
14.48
3.02
4.95
1.70
3.63
2.38
0.55
0.92
0.34
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
2004 2005 2006 2007 20080.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00Net Results
EPS
€ / share*€ M
According to International Financial Reporting Standards (IFRS)
Average # of shares: 5,025,000 5,372,945 5,546,173 6,077,000 6,535,115 6,484,956 6,684,569
* Undiluted
21.90
-3.89
-0.583.27
- 10.0
- 5.0
0.0
5.0
10.0
15.0
20.0
25.0
Q1-Q3'08 Q1-Q3'09
€ M
26
Sales Development per Full-Time Equivalent
551 575 621
1,555
1,778
1,352
1,915
2,392
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2001 2002 2003 2004 2005 2006 2007 2008Accounting Basis: HGB; from 2004 onwards IFRS
€ T
€ T
1,732
1,067
0
500
1,000
1,500
2,000
Q1-Q3'08 Q1-Q3'09
-38%
27
Revenue Share of Business Segments
24.0%34.1%
41.5%
28.6%
5.6%21.7%
5.5%
6.3%5.4%
72.0%60.4%
46.6% 44.3%
14.8%
31.9%
7.8%
4.0%
45.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008
Components & Systems (Germany)
Components & Systems (ROW)
Power Plants (ROW)
Power Plants (Germany)
11.8%
9.0%
36.6%
34.5%
1.3%42.6%
3.8%
60.4%
0%
20%
40%
60%
80%
100%
Q1-Q3'08 Q1-Q3'09
28
89.7
41.6
110.2
149.3
101.4
36.7
115.7
0
20
40
60
80
100
120
140
160
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Quarterly Sales Development 2008 to 2009Group Results
€ M
Sales
Q3 2009 revenues down 40% y-o-ydue to
� sales price decline
� Q3 2008 being positively affected by Spanish revenues
� weakness of power plant business
Group Sales
260.1
402.5
0
100
200
300
400
500
2007 2008
+55%
€ M+165%
+35%
-32%
+215%
-22%
29
11,173
-7,437
102
2,983
4,692
17,599
359
3.3%
0.1%
-20.3%
4.6%
11.8%10.1%
0.9%
-10,000
-8,000
-6,000
-4,000
-2,000
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
-24%
-20%
-16%
-12%
-8%
-4%
0%
4%
8%
12%
16%
Quarterly EBIT Development 2008 to 2009Group Results
EBIT(€ T)
� Substantial EBIT improvement q-o-q, however
� Q3 2009 EBIT down y-o-ydue to end of Spanish market hype and weakness of power plant business
Group EBITEBITMargin
* Adjusted in Q3-2007 according to Int’l Accounting Standard (IAS) 8.49
22.3
33.8
0
5
10
15
20
25
30
35
40
2007 2008
€ M
+52%
30
17
63
143
5 4
52
10 17
63
143
5 4
52
10
129
154
244
107
132
167
214
126
75
56
73
34
9049
231 230
275
112
248
181
164
143 138
199
7888 92
76
34
154
95105
86
59
94
1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09 1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09 1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9 1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9 1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9
Order Backlog Development
€ M
Total Power Plants Components & Systems
Percentage-of-Completion (PoC) Revenues
� High C&S order backlog of 105 €M reflects year-end rush in residential and commercial sectors
� Total free order backlog end Q3 2009 (154 €M) higher in a q-o-q and y-o-ycomparison
Order Backlog
“Free” Order Backlog
31
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
32
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez
Phoenix
TecDAX
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez
Phoenix
TecDAX
%
Comparison: Phoenix Solar vs. TecDAX2008 and 2009
Phoenix SonnenAktie® beats the TecDAX
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009
33
TecDAX Ranking 2008 and 2009
19
30
15
320
50
100
150
200
250
300
350
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ma
rke
t C
ap
ita
lis
ati
on
(M
il. €
)
0
5
10
15
20
25
30
35
Ra
nk
Market Cap.
Rank Market Cap.
Rank Revenue
Phoenix SonnenAktie® climbs from the smallest companyin the TecDAX to the middle of the pack
34
Dividend Payment
� Phoenix Solar has been paying dividends since 2007
� Shareholder-oriented dividend policy according to company growth and
business situation
6,648,5000.30 €20.05.20092008
6,648,5000.20 €05.06.20082007
6,077,0000.10 €29.05.20072006
Number of
shares
Gross dividend
per share
Date of
distribution
Financial year
35
Current Analyst Coverage
7.11.2008ViscardiMunich
17.9.2008MainFirst BankFrankfurt/Main
15.9.2008FBR Capital MarketsSan Francisco
25.8.2008UniCreditMunich
12.6.2008Pacific CrestPortland
14.10.2006Goldman SachsLondon
17.8.2006HSBC Trinkaus & BurkhardtDuesseldorf
22.5.2006EquinetFrankfurt/Main
21.11.2005CommerzbankFrankfurt/Main
2.12.2008BHF-BankFrankfurt/Main
25.8.2005Deutsche BankFrankfurt/Main
SinceBankSinceBank
9.9.2009JefferiesLondon
8.9.2009
CA CheuvreuxFrankfurt/Main
30.7.2009MacquarieLondon
30.7.2009
Arkeon FinanceParis
3.7.2009AreteLondon
1.7.2009Nord/LBHannover
28.5.2009Piper JaffrayMinneapolis
27.4.2009WestLBDusseldorf
9.2.2009Barclays CapitalLondon
LBBWStuttgart
7.12.2009
Close Brothers SeydlerFrankfurt/Main
25.1.2010
36
Table of Contents
1. Phoenix Solar at a Glance
2. Company Profile
3. Module Supply
4. Financial Parameters
5. Phoenix Share - SonnenAktie®
6. Investment Highlights
37
Investment Highlights
� Business model focuses on the core capabilities (PV systems
technology), allows for high flexibility and fast exploitation of
market opportunities
� As system integrator Phoenix Solar is the gateway to the end
customer
� Expansion of international business to more than 50% of sales by
2010 and 65 % by 2013
� World-leading expertise in large-scale power plant construction
using thin-film systems technology
Phoenix Solar AG – a “PV pure play”
38
Thank you for your attention!
Appendix
40
Phoenix Solar share in brief
Official Market, Prime StandardStock market segment
6,700,700 €Share capital
6,700,700 unitsNumber of shares as per 30/12/09
No-par bearer shareShare class
DE000A0BVU93ISIN
41
Phoenix Share History
� 18/11/1999 Founding of Phoenix Solar AG (formerly Phönix SonnenStrom AG)
� 31/01/2001 First public offering
3rd capital increase by € 1,000,000 to € 1,675,000
3,500 private and institutional shareholders (opening price € 12)
� 18/11/2004 Listing on the Munich stock exchange; OTC listing on
the stock exchanges of Berlin-Bremen, Stuttgart and Frankfurt/Main
� 01/07/2005 Listing in the M:access quality segment of the Munich stock
exchange, extensive OTC reporting obligations
� 01/12/2005 HSBC Trinkaus & Burkhardt becomes Designated Sponsor for
seamless trading in the electronic trading system XETRA
� 27/06/2006 Admission of share capital to the official market in the Prime
Standard segment of the Frankfurt Stock Exchange, further
follow-up obligations
� 29/05/2007 Phoenix Solar pays its first dividend of € 0.10 per share
� 25/03/2008 Phoenix Solar’s shares added to the TecDAX
technology index of Deutsche Börse AG
42
80.9
23.9
8.2
65.0
13.516.5
66.5
0
10
20
30
40
50
60
70
80
90
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Quarterly Sales Development 2008 to 2009Power Plant Segment
€ M
Sales
Power Plant Segment
� Q3 Power Plant Sales down
83.3% y-o-y and 79.2% q-o-qmainly affected by project delays
130.7
187.8
0
50
100
150
200
2007 2008
€ M
+44%
+303%
+22%
-70%
+693%-79%
43
214
4,241
-441
1,352
8,405
-2,435
9,885
1.3%
12.6% 12.2%
5.7%
-29.7%
6.5%
-3.3%
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09-30%
-25%
-20%
-15%
-10%
-5%
0
5%
10%
15%
20%
Quarterly EBIT Development 2008 to 2009 Power Plant Segment
EBIT€ T
� Weak power plant EBIT
due to low Q3 sales
Power Plant Segment
17.9
19.9
17
17
18
18
19
19
20
20
21
2007 2008
+11%
€ M
EBIT-Margin
44
68.4
77.4
28.5
50.7
76.2
25.1
43.7
0
10
20
30
40
50
60
70
80
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Quarterly Sales Development 2008 to 2009Components & Systems Segment
€ M
Sales� Q3 2009 sales in Germany
up 50.3% q-o-q and 11.4%y-o-y
� Q3 2009 already impacted by strong year-end rally
Components & Systems Segment
129.3
214.6
0
50
100
150
200
250
2007 2008
€ M
+66%
+74%
+56%
+13%
+78%
+50%
45
2,772
7,707
3,4273,335
-4,150
-5,002
146
-17.5%
6.3%
0.6%
-8.1%
11.3%
4.3%4.5%
-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
- 21%
- 18%
- 15%
- 12%
- 9%
- 6%
- 3%
0
3%
6%
9%
12%
15%
Quarterly EBIT Development 2008 to 2009 Components & Systems Segment
€ T
EBIT
� In Q1 & Q2 2009 C&S business was burdened with inventory write-downs
� Substantial EBIT improvement Q3 2009 up 7.6 €M q-o-q
Components & SystemsSegment
14.0
4.3
0
2
4
6
8
10
12
14
16
2007 2008
€ M
+226%
EBIT-Margin
46
70.5
97.3
34.7
112.2
82.9
40.134.9
0
20
40
60
80
100
120
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Quarterly Sales Development 2008 to 2009National Sales
€ M
National
� National sales down 26.1% q-o-q and up 17.6% y-o-y
� Development underpins the importance of the German market for Phoenix Solar
National Sales
189.6
242.8
0
50
100
150
200
250
300
2007 2008
€ M
+28%+15%
+76%
+38%+223%
-26%
47
78.8
4.12.0 3.5
6.86.7
70.1
0
10
20
30
40
50
60
70
80
90
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Quarterly Sales Development 2008 to 2009International Sales
€ M
International� International sales Q3 2009
down 91.4 % y-o-y but up 94.3% q-o-q
� No international power plant project under construction in Q3 (1.5 MWp Le Lauzet project for eOn Climate & Renewables started in Q4)
International Sales
70.4
159.7
0
50
100
150
200
2007 2008
€ M
+127%
+946%
+12%
-95%
+75%+94%
48
Contact
Phoenix Solar AG
Hirschbergstrasse 8
D-85254 Sulzemoos
Germany
Phone +49 8135 938-000 www.phoenixsolar.com
Fax +49 8135 938-399 [email protected]
Investor Relations Public Relations
Anka Leiner Andrea Wegner
Phone +49 8135 938-315 Phone +49 8135 938-313