Soltec Power (SOL) Corporate Presentation summary

Key highlights

• Supplied 813 MW of solar trackers in Q1 2024, tripling year-over-year volumes, with a cumulative track record of 18.5 GW supplied since 2014.

• Maintains a diversified business across the US, Europe, and LATAM, each contributing roughly a third to revenues.

• Strong gross margin of 24% in tracker supply and increasing adjusted EBITDA margins.

• 12.6 GW pipeline of projects under development, with 600 MW under operation or construction.

• Well-positioned to benefit from global electrification, decarbonization, and supportive policies like the Inflation Reduction Act.

Business update

• Tracker business shows strong geographic diversification, with significant backlogs and pipelines in the US (€72 Mn backlog, €5,458 Mn pipeline), Europe (€499 Mn backlog, €3,745 Mn pipeline), and LATAM (€48 Mn backlog, €5,612 Mn pipeline).

• Innovative tracker solutions tailored for challenging terrains and large-scale projects, with advanced algorithms to maximize energy yield.

• Energy division focuses on value creation, prioritizing long-term contracts and risk minimization in OECD countries.

• Co-development agreements with major partners like TotalEnergies and Aquila Capital reduce development risk and leverage vertical integration.

• Asset rotation strategy in Q1 2024 included the sale of a 400 MW early-stage project in Brazil, generating €3.9 Mn EBITDA.

Financial update

• Achieved record Q1 2024 revenues of €121 Mn (+58% YoY), with adjusted EBITDA of €11 Mn and net profit of €1.3 Mn.

• Tracker division revenues grew 65% YoY to €117.4 Mn, with a solid EBITDA margin of 5.7%.

• Energy division reported €3.2 Mn in revenues and €4.9 Mn adjusted EBITDA, driven by asset rotation and energy sales from operational assets.

• Net financial debt stood at €230.3 Mn as of March 2024, with a syndicated revolving credit facility extended to late 2024.

• Revenue breakdown: 70% from tracker supply, 30% from construction services; US, Europe, and LATAM each contributed about a third of revenues.