Solaria Energía y Medio Ambiente

Good afternoon everyone and welcome to Solalia 2026 first half results webcast. My name is David Guingon, the head of IR of Solalia. I am joined today by Dario López, our chief operating officer. During this call we will 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 developments during the period given by our COO, Dario. Following this, we'll move to the Q&A session, and I would also like to highlight that you have to submit all your questions via the web. Thank you very much again, and I will now hand over the word to Dario.

If we go to see the numbers of this first half of the year, first we want to highlight that the results we have are the best results ever of Solaria. We had the best P&L and the best banner sheet for the history of Solaria. Just going into the details, for example, in terms of production, we have increased 51% compared with the last year. We have reached 100 million euros in sales in six months for our infra business, proving how resilient and stable it can be. EBITDA, we have reached 210 million euros, which is a 50% increase versus the last year. This also means that we have reached in the first half of the year 64% of the target of this year. In terms of the profits, we have also increased 52%, reaching €122 million, and at the same time completing investment for more than €276 million. And what is even more important, we have been able to reduce the leverage from 5.4 times to 3.9 times. We think that in terms of the financial situation of the company, these are very good results and we can be all proud. But we don't settle here. We want more. That is why we have started an efficiency program. It's a cost efficiency and capital efficiency program that I will explain later. And finally, for the second half, we see... An even better situation. First of all, we see very good prices of energy. We have already seen the price of Q3 and we have a very promising Q4. And finally, of course, we will have and we will give more updates about the next capital markets day. Just a brief summary of what we see in Q3. Solar price has increased in 75%. Our generation has increased 30% and our merchant capability that I will call optimized merchant because today we have mechanisms to extract more value from the energy we have in merchant. You know what I'm talking about. We are talking about the energy management that we have and the best capabilities that we are introducing. But we see a very good Q3. If we talk about the first half of the year, first I want to highlight is the relevant increase in the production of energy, 51% increase, which is relevant. We will be almost in double by the end of the year, hopefully. And what is very important, infra. Infra, we have increased significantly. We have almost reached, as I explained before, 100 million euros. I think this infra business that is mainly based in the power land business and all these data center technologies, we have been able to provide recurrence and stability that proves the resilience of this business line. In terms of EBITDA, as I explained before, we have reached 210 million euros, which is, I think, a very good number. We are today at 64% of the achievement of the yearly results. And here I want to be very clear. I want to reaffirm the objectives that we have in terms of EBITDA, that I will repeat. This year, our goal is 331 million, that we have already obtained 210. For 2027, 456. And for 2028, 521. I want to reaffirm our commitment with this EBITDA objectives of the company. At the same time, we have improved significantly the financial staff of our company. First of all, we have managed to do this with a huge investment. We have invested more than 276 million euros during this first half of the year. But at the same time, we have improved the numbers of the company. I want to highlight first of all, for example, Net Financial Debt vs EBITDA has gone to 3.9 vs 5.4 that we had last year. This number will improve in the next months. Also, the Project Debt has improved from 84% to 91% and the Fixed vs Short Debt in this moment of uncertainty and moment of interest rates, we have increased to 84% of Fixed rate vs Total Debt. If you allow me to compare where we are today from the point where we were in the last capital markets day or what we talked in the last capital markets day, I would like to highlight several points and to prove that we are delivering and we are committed to deliver. And these numbers are the best proof of that. First of all, we reached the objective for last year, 2025. We promised 250 million euros EBITDA. We reached 266. We exceeded this number. Second, this year we promised 3.31. We are at 2.10 and this is half of the year with 64%. We are on track, let's say. In terms of the net debt versus EBITDA that I have explained before, we have speeded up the achievement of this objective where we are now at 3.9 versus 5.4. And this is also very important to prove in this moment of uncertainty the good financial health of the company. In terms of operation capacity, we have reached 3.1 gigawatts. We will reach more 3.6 gigawatts at the end of the year. And I want to be very clear here. We have to be profitable. Our growth has to be profitable. Just making megawatts for making megawatts doesn't make any sense. We make money. We do not make only megawatts. I want to be very clear about this. In terms of the development of long-term contracts and PPAs, you know we have signed PPAs for more than 400 MW, also base agreements. Well, I think we have more than delivered here. In terms of the batteries, which is a relevant point, we had installed 45 MW, today we are above 120 MWh. and this capacity will be multiplied significantly will be increased significantly in the next months this provides what they have all the optimized merchant and provides much higher value than any other technology at this moment and not less important expansion into Europe we obtained The environmental approval of the largest project in Italy, Spinazzola. It's the largest project in Italy right now. And it's the next flagship project. We completed successfully Trillo, we completed successfully Garonia, and now it's the turn of Spinazzola. It provides very good value also for Solaria. As I said before, for us this is not enough. We want more. That is why we have started a capital efficiency and cost efficiency program where we expect to obtain another 7 million euros of savings, additional savings. This is a 12-year program. We have already completed roughly 50% and this will allow us to improve significantly the results. In terms of cost efficiency, for us there is a significant cost reduction in terms of personnel. It's very simple. We have all the AI products and mechanisms that are common in the market, but in addition, our growth now is leveraged. It can be based on existing capabilities and existing assets. This allows us to be more efficient in terms of the cost and in terms of the Equipment and the people and the thing that we need to do it. I mean, this is allows us to be more efficient and to make more money. I'm not only that. I mean, in a moment where the cost of the capital, the cost of the interest rates is increasing, what we are doing right now, we are improving the quality of our debt. We are removing the expensive debt, to be clear, and we are focusing on having a good debt, and which is very important. Investment discipline. I think this is critical. This is something that has been our... The origin of Solaria has always been this point. We have to be the most efficient. And we will be the same. I mean, making megawatts is not the business. It's making money. I will be very clear on this. So that is why we maintain our objective to develop only projects which provide at least minimum 12% ARR. And we have them. And the best part is that we have them. We have very good projects providing these very good results. If we talk a little bit about the future prices, what we see or what we have seen in the first half of the year, we saw similar prices to last year. Q3, as I have explained, we have seen a significant increase in the energy prices and we see also a relevant increase of the price of the energy, solar energy, in fact, for the future. also don't forget and we have said that we have what we call the optimized merchant with all this mechanism this dispatch of energy these batteries that will allow us to optimize even more the energy the price of the energy that we see okay In terms of the asset, we have already developed a huge asset base. I don't know how many companies can say that we have created this base of assets. It has been PV, now it's a lot of batteries, which is quite innovative, and this will allow and provide much more value in the very short term. Well, just to summarize, we think that the first half has been really good in terms of the BIDDA. That is our main target and is our objective. We have provided only in the first six months 64% of the objective. The balance sheet of the company is much stronger than one year ago we are prepared also to keep growing with profitable growth and second we see very good perspective for the second half of the year just based only on these numbers that we have explained before of the electricity prices and what we see in the markets okay And finally, we will provide more details, more strategic insight, more projections. We will not disappoint. You know, last year we had a very interesting capital markets day. Many of you were there. This year will be even better. So book your agendas, close your agendas right now. 17 November London, 18 November New York. Thank you.

Thank you Dario. I will now open for Q&A session and once again thank you for your time. Just one minute. First question comes from Fernando Garcia from RBC. First question is regarding DC data center. Have we collected all money in infra revenue from DC in H1 2026? The second question from Fernando and from other analysts are related to if we have any comment on the Spanish data center regulatory proposal, any feedback from this consultation. and if we have stopped conversation about DC grid because of this drought on DC.