Solaria Energía y Medio Ambiente

Good afternoon, everyone, and welcome to Solaria 2024 first quarter result webcast. My name is David Gangon, the head of IR of Solaria. I am joined today by Dario Lopez, our chief operating officer, and Fernando Rodriguez, our chief of development. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. During this presentation, we'll begin with an overview of the results and the main development during the period given by our COO, Dario Lopez. And following this, we'll move on to the Q&A session. I will also highlight that you have to submit all your questions via the web. So thank you very much again, and I will now lend over the word to Dario.

Thank you, David, and thank you everyone for joining this conference call. Starting with the results of the main highlights of the Q1, we would like first to express our main message of this presentation, that we are able to keep delivering growth and profitability even in a low price scenario. In this case, as you will see, we have increased the generation 22%, we have increased the sales of the company 6%, We have reached a bid of 41 million euros, which is our record. At the same time, we keep having more and more visibility on the portfolio of new permits. You will see also that we have started a program of pipeline rotation with the sale of some assets. And at the same time, we continue the work to reduce our merchant exposure by 50% before the end of this year. Also very important, Fernando will explain with me the new steps we are taking into the data center and artificial intelligence business. Regarding the highlights of this quarter, first we would like also to talk a little bit about the CAPEX. We have been able to close the price of the modules at a record low price. We announced last May that we closed the purchase of 435 megawatts of modules at 0.0911 million per megawatt, which is an absolute record of hold times. At the same time, we continue working on the PPA market we see prices in the range of the 40s and this allows us to maintain our 12% IRR return on target Entering the results of Q1, as you will see we have increased the regeneration of our assets above 400 GWh which means a 22% compared with the Q1 of last year. And at the same time, we have increased the sales of the projects of more than 40 million euros. This we have around 24 million of energy and 60 million of infra. You will see that even in a very low prices scenario, we have been able to provide good results. In terms of revenues, you will see we have an increase of 9% and EBITDA plus around 4% additional. In terms of the pipeline development, you will see we have around 1.7 gigawatts fully operational. We continue working on the construction 1.4 gigawatts that we have for all of them with the financing secured, which is also very important to highlight. And regarding the next project, we have another 1.2 gigawatts additional where we are able, we have obtained, we have received in the last days new permits, for example, in the case of Oliva, 175 megawatts, the Autorización Administrativa de Construcción, the AAC, which provides us more visibility for this. Regarding the remaining portfolio, we continue the development of the whole portfolio with the projects of Basque Country, Catalonia and Portugal. Very important, the projects we have in Italy, where we have a portfolio of almost 3 GW, And as you will see, we're following the same strategy in terms of flagships. This is very important to highlight, because as you know, with the recent developments of the Italian government, they are also focusing on very large projects, which seems that our strategy is correct in these places. I would also like to highlight the wind situation, where we have already stolen our measurement towers, wind measurement towers, and proves the advances in this business. In terms of the cash situation, here you will see that we have continued the investment process with another 45 million euros of investment. What is very important to highlight here in this slide is that it does not include the proceeds of the infra business and pipeline rotation, which means that it's a significant additional revenue of around 20 million euros that we have received in May. Pilot rotation. As you know, we have been working on the sale of minority stakes or strategic portfolio in the past, especially for the Basque country projects, where we already sold a 25% stake of a package of 100 megawatts. We are working, as we announced some time ago, on the sale of a package of between 25% and 50% stake of another 500 megawatts in the Basque country. This is something that we have already announced. It is very well known. And at the same time, what is new is that given our capacity to generate new pipeline, we have taken advantage of this capacity to sell some of these assets or some of this pipeline that we consider not strategic. In this case, we have identified 500 megawatts of projects that we say are non-strategic, where we are selling between 50 and 100% stake projects located in Spain and Portugal. And all of them piling at a very early stage of development, which means it has not, of course, reached ready-to-build situation. For this portfolio, we can confirm that we have closed the sale of 40% of it. And this means that we have been able to include in our results around 13 million of income. And finally, very important, the part of the PPAs. We are working on the reduction of our merchant exposure. Our objective is to reduce it by 50% before the end of this year. In order to do that, we are working with different utilities. We are negotiating very similar PPAs to the ones we have negotiated in the past. As you can see here, all of them 10 GRs, solar profile, for a portfolio of around 400 megawatts. All of them for assets already in operation. And as we have said before, the prices we see, it's around 40 euros megawatt hour. I will now hand over the word to Fernando.

Thank you, Dario. Well, as we have recently informed, Solaria is entering the data center's market. Considering our current contest and the difficulties to ensure the grid access for new consumption, we plan to use our own infrastructures portfolio as high voltage lines, substations, communications with backbone fiber optics, and so, and the power of our green installations to accelerate and boost digital facilities and data centers. As all of you know, artificial intelligence in data centers is going to require large amounts of power and associated energy. For this reason, we have incorporated a specific company in the group for this strategy. And we are firmly committed to do it and jointly with our land co, Generia, in order to develop our new project portfolio in this sense. In this route, Grid access and connection permits for energy consumption have been already granted to Solaria for a total amount of 155 megawatts in new data centers. Also, we are managing additional portfolio, additional pipeline that for the moment is close one additional gigawatt. Additionally, we are up to now in contact and also keeping conversations with the main players in the industry as hyperscalers and working with all of them in the possibility of a global agreement for this new strategy. We consider that Solaria is going to be a key player considering our infrastructure portfolio that includes solar and also hybridization including wind, batteries, power and communications that will allow Solaria to develop iconic clusters for that proposal, including these new infrastructures as data centers. And regarding all of this, I take the opportunity to inform about our strategic update in energy and digital transition that will take place in September. I will now hand over the word to David.