Solaria Energía y Medio Ambiente

Good afternoon, everyone, and welcome to Solaria 2023 nine-month result webcast. My name is David Guingon. I am the head of IR of Solaria. I am joined today by Arturo Diaz Tejedo Larrañaga, our chief executive officer. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our prediction and expectation as of today. During this presentation, we'll begin with an overview of the result with the key highlights and the main development during the period given by our CEO, Arturo. Following this, we will move on to the Q&A session. I would also like to highlight that you have to submit all your questions via the web. So thank you very much again, and I will now hand over the word to Arturo.

Thank you, David, and thank you to everyone joining this conference call. I think recently we have been in the CMD. You have received a lot of information recently, and of course we will do a fast conference call explaining nine more results, and then we will pass to the Q&A session. First, in order to give some information, we continue growing revenues, capacity in operation, EBITDA, net profit. In order to give some guidelines, some financial guidelines, as you know, we have promised to finish this year with 200 million of EBITDA. The nine-month results, I think that we have good reading. We are achieving a good reading of installation, of connection of PV assets, and we are comfortable with this guideline of 200 million euros of EBITDA for this year. We have increased our capacity in operation and obviously we are increasing at the same time revenues, net profit and EBITDA. This quarter we have achieved 86.4 net profits and hopefully we will finish with much more. Of course, price of electricity, where we are, you know that during this year we are suffering less price of electricity, reduction in price of electricity, if you compare with last year. It's good for consumers, it's the correct way that should follow the price of electricity. But in all cases, we are happy with the actual situation of price of electricity and especially with the actual situation of price of PPA. Recently in the CMD, we announced a PPA deal with Endesa. Hopefully in the short term, extremely short term, we will announce a new PPA deal that will be in a similar interval of prices, probably similar or even better. than previous deal announced in the CMD. Size will be similar and we will continue signing PPAs. For us today, the price of PPA that we are touching and the actual CAPEX is a perfect combination that gives to us really good levels of project IRR. Price of modules. We have explained in the CMD the situation of the modules is crazy, decreasing price per month. Probably we think that we are achieving the top part because today we are closing deals using prices of 0.10, 0.11 euros per watt. That is incredible. because with these prices the capex that we could achieve is even less than we have announced in the CMD, 0.375 euros per megawatt. This is the critical point for us, as you know, because it defines the final project IRR that we are going to obtain next year. If we are able to maintain a capex or even to reduce this capex of 0.375, the project IRR is crazy, no? And it's something that is a warranty that we are going to execute all of our business plan, all of our pipeline during the next years, no? Of course, from operational point of view, we continue increasing per quarter. Energy production obviously is better this quarter than previous because we have had more assets functioning. Price of electricity is less because if you compare with other quarters, especially with last year, the average price of electricity is less. Why? Because we are using PPA prices. PPA prices are out of the merchant market. And PPA prices, you know, the average price is close or around 40s. And obviously, price of electricity, merchant price of electricity today, the average is around 70s, 80s, it depends on the day, but even more, sometimes more than 100, no? Obviously, using PPA, you have more security, more reliability, but at the same time, the average price in your electricity is less if you compare with merchants. more assets more volume more revenues same people at the end of the days we are more efficient than in previous quarters and we will continue improving we have contract a lot of people and staff associated with our international expansion as you know we are extremely focused in italy in germany in portugal And we have increased our staff, but at the same time we have increased more our revenues and at the end of the day our EBITDA. We are more efficient than in previous quarters and we will continue. Guideline on track. Our guideline for 2023 was 200 millions of euros. We have presented, we have shown in the CMD presentation. As I have mentioned, we are comfortable today with this target. And I think that we have high level of security that we are going to achieve this number or even better than this number at the end of the year. Cash flow. We are using a lot of cash and a lot of our project finance structure in order to pay all of our investments. We will continue with our investment plan that will grow more in the next quarter. The good point, as we explained during the CMDs, we have strong support from our project finance bank and institutions partners. We are covering our capex, as always, with project finance, and we will continue with this situation for the long term. Of course, I have done a fast presentation. I think it's more interesting if we go to the Q&A session.

So thank you, Arturo. We will now open for Q&A session. And once again, thank you for your time. Just let us one minute. The first question is coming from Jorge Guimaraes from JB Capital. The first question is, it is possible to elaborate on the evolution of working capital as of 9 months 2023. Why is the company consuming 79 million of your working capital? The second question from Jorge is, Regarding average price, 67 according to Jorge's calculation, 67 in Spain in the third quarter and 64 in the second quarter. However, as a percentage of pull, it goes down from 79% to 69%. Why is this reduction in capture price in Spain? And the third question is, where do you see the debt by the end of this year?