INTEGRATED SOLAR SOLUTIONS
INTEGRATED SOLAR SOLUTIONS
INTEGRATED SOLAR SOLUTIONS
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<strong>INTEGRATED</strong> <strong>SOLAR</strong> <strong>SOLUTIONS</strong><br />
Datum/Titel/Autor<br />
10 NOVEMBER 2009<br />
1<br />
1
DISCLAIMER<br />
This presentation is furnished to you solely for your information, should not be treated as giving investment advice and may not be reproduced or redistributed,<br />
in whole or in part, to any other person.<br />
This presentation constitutes neither an offer to sell nor an invitation to buy securities.<br />
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the<br />
information contained herein and, accordingly, none of systaic AG (herein after referred to as the ‘Company’), any of their parent or subsidiary undertakings or<br />
any of such person’s officers, directors, employees or advisors accepts any liability whatsoever arising directly or indirectly from the use of this document.<br />
This presentation contains certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources.<br />
Such statements only reflect the current views of the Company with respect to future events and they are subject to various known and unknown risks,<br />
uncertainties and other factors, which could cause the actual results, financial position, development or performance of the Company to differ materially from the<br />
estimations expressed or implied herein. The Company does not guarantee that the assumptions underlying such forward-looking statements are free from<br />
errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted<br />
developments. The Company does not accept any obligation to update or revise any forward- looking statements set forth herein or to adjust them to future<br />
events or development. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.<br />
Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or<br />
endorsed by the Company as being accurate.<br />
By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the<br />
Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s<br />
business.<br />
There shall be no sale of shares of the Company in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under<br />
securities laws of such state or jurisdiction. This presentation does not constitute or form a part of, and should not be construed as, an offer or invitation to<br />
subscribe for or purchase any securities and neither these materials nor anything contained herein shall form the basis of, or be relied on in connection with,<br />
any offer or commitment whatsoever.<br />
This presentation speaks as of November 2009. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients<br />
shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This material is given in<br />
conjunction with an oral presentation and should not be taken out of context.<br />
2
KEY INVESTMENT HIGHLIGHTS<br />
Business model outside commodity segment, leadership in solar integration and<br />
continued outperformance of market make SYSTAIC a top investment<br />
The strongest growing German stock listed solar company<br />
Resilient business model benefitting from solar market<br />
Ahead of competition through unique products with tailored marketing concept<br />
Market leader for integrated solar solutions for buildings and vehicles<br />
Three business segments with established products<br />
Experienced and highly committed management team<br />
3
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
4
COMPANY OVERVIEW – BUSINESS SEGMENTS<br />
SYSTAIC offers integrated solutions in all its business segments.<br />
Energy Roof Systems Automotive Solar Power Plants<br />
• Unique solar solution including all roof<br />
components<br />
• Highly aesthetic roof application that<br />
provides electricity and heating<br />
• Integrated concept that allows<br />
autonomous energy supply for private<br />
households<br />
Sales 9M 09: 6.4 m€<br />
Sales Growth 9M 08 – 9M 09: +68.0 %<br />
SYSTAIC<br />
leading expert for integrated solar solutions<br />
• Manufacturer of integrated solar<br />
applications with first mover advantage for<br />
car roofs in the world<br />
• Joint venture with Webasto AG and new<br />
cooperation with Sekurit ensures Tier-1<br />
supplier status and top roof construction<br />
expertise<br />
Sales 9M 09: 4.7 m€<br />
Sales Growth 9M 08 – 9M 09: -37.4%<br />
• Strong project pipeline in Southern<br />
Europe (sales potential of more than 700<br />
m€ by end of 2010)<br />
• Unrivaled management skills and<br />
engineering expertise in large project<br />
realization ensure competitive advantage<br />
Sales 9M 09: 182.0 m€<br />
Sales Growth 9M 08 – 9M 09: +54.7%<br />
5
COMPANY OVERVIEW – MILESTONES<br />
SYSTAIC started its success story in 2004 and reached the market leading<br />
position for integrated solar solutions within 5 years<br />
Sales (€m)<br />
2004 – 2006<br />
• Foundation of SYSTAIC<br />
(former systaic<br />
Deutschland GmbH)<br />
• Foundation of systaic<br />
Ibérica<br />
• Total sales:<br />
€4m in 2006<br />
2007 2008 2009<br />
• 2.8 MWp Solarpark<br />
Griesheim, Griesheim<br />
• IPO of systaic AG<br />
• Acquisition of Webasto<br />
Solar GmbH<br />
(64% joint-venture with<br />
Webasto AG)<br />
• Foundation of systaic<br />
France<br />
• Total sales: €30m<br />
• 11 MWp PV project<br />
Belmez, Spain<br />
• Foundation of systaic<br />
Italia and systaic<br />
Portugal<br />
• Change to prime<br />
standard<br />
• Fully automised<br />
production site for<br />
energy roof systems<br />
• Total sales: €200m<br />
• Foundation of systaic<br />
Hellas<br />
• Acquisition of Solarwatt<br />
Cells GmbH<br />
• Estimated sales:<br />
> €300m<br />
6
COMPANY OVERVIEW – ENTITIES<br />
While systaic AG operates the German market its international subsidiaries<br />
focus on key markets in Europe<br />
100%<br />
100%<br />
100%<br />
64%<br />
86%<br />
German subsidiaries<br />
systaic Technologies GmbH<br />
systaic Cells GmbH<br />
systaic sourcing AG & Co.KG<br />
Webasto Solar GmbH<br />
Enerparc AG<br />
Business Segments:<br />
systaic AG<br />
International subsidiaries<br />
100%<br />
systaic France S.A.R.L.<br />
systaic Ibérica S.L.U.<br />
systaic Portugal<br />
systaic Italia S.R.L.<br />
systaic Hellas M.EPE<br />
Energy Roof Systems Automotive<br />
Solar Power Plants<br />
7
COMPANY OVERVIEW<br />
The majority of SYSTAIC´s 14,460,461 shares is in free float, MVK Treuhand<br />
GmbH and Webasto AG are largest shareholders.<br />
8
COMPANY OVERVIEW – <strong>SOLAR</strong> POWER PLANTS<br />
SYSTAIC’s greenhouse projects feature a profit-oriented architecture and a<br />
specialised design for energy production as well as agricultural utilisation<br />
• PV laminates integrated in fully functional<br />
greenhouses<br />
• 5 m height with south facing PV modules<br />
• Standardised greenhouse mountings<br />
•Automatic cleaning with customised washing<br />
machines<br />
•Automatic ventilation equipment north side with<br />
float glass<br />
•Passive airflow perforation<br />
9
COMPANY OVERVIEW – ENERGY ROOF SYSTEMS<br />
SYSTAIC’s energy roof has been extended to a complete product portfolio, from<br />
a premium product to a large scale solution for commercial roofs<br />
Energy Roof Premium Service<br />
Energy roof including premium service<br />
matching highest demands in total roof design<br />
& construction<br />
• High quality integration<br />
• First-class design<br />
• Thermal collectors, windows, verge &<br />
edge finish<br />
• Complete pre-production<br />
• Planning, consulting, premium service<br />
& surveillance<br />
• 20 years warranty on PV (functionality<br />
& results)<br />
• 20 years warranty on roof sealing<br />
Energy Roof Basic<br />
Complete energy roof system with reasonably<br />
priced integration but limited configuration<br />
options<br />
• Integrated roof, production of edge<br />
finish at installation site<br />
• Ready for using PV exhaust air<br />
(currently no thermal units, windows,<br />
verge & edge finish)<br />
• Service contract only with standard<br />
product warranty<br />
• Roof-integrated installation<br />
• 135 Wp energy unit L<br />
Large Scale Roofs<br />
PV components and mounting materials<br />
configured as kits<br />
• High quality 230 Wp or 135 Wp<br />
monocrystalline laminates<br />
• Optionally framed as modules<br />
• Rooftop mounting ideal for industrial<br />
buildings<br />
• Subconstruction materials<br />
• Mounting materials<br />
• Inverters<br />
10
BUSINESS SEGMENTS - AUTOMOTIVE<br />
With SYSTAIC’s automotive roof systems cars will experience a drastic<br />
evolution within the next years<br />
Fuel driven cars:<br />
• Less fuel consumption by relieving light<br />
machine<br />
• Support of air conditioning and operation<br />
of fan<br />
• Optimised battery management<br />
Hybrid / electric cars:<br />
• Range extension<br />
• Emission-free energy for battery charging<br />
• Significant power supply for onboard<br />
electronics<br />
11
COMPANY OVERVIEW – CUSTOMERS<br />
In each segment SYSTAIC’s customers are among the top players within their<br />
industry<br />
Energy Roof Systems Automotive Solar Power Plants<br />
• Numerous private customers<br />
• Cooperation with<br />
− Architects, planers and<br />
engineers<br />
− Developers of turnkey<br />
houses and producers of<br />
prefabricated houses<br />
− Association of roofers &<br />
carpenters<br />
• Commercial developers for<br />
solar roofs<br />
12
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
13
MARKET DEVELOPMENT – VALUE CHAIN<br />
SYSTAIC is strongly positioned within the solar value chain beyond the<br />
commodity segment in the end customer oriented market<br />
Silicon<br />
production<br />
Upstream value chain Downstream value chain<br />
Production<br />
of ingots &<br />
wafers<br />
Commodity Engineering Added value services Customers<br />
Production<br />
of solar cells<br />
Production<br />
of solar<br />
panels<br />
Engineering &<br />
construction<br />
Wholesale/<br />
system<br />
provider<br />
Service &<br />
maintenance<br />
Independent<br />
power<br />
production<br />
14
COMPETITION IN ENERGY ROOF SYSTEMS AND AUTOMOTIVE SEGMENT<br />
SYSTAIC is ahead of competition due to first mover advantages and market<br />
leading position in all business segments.<br />
Selected<br />
competitors<br />
SYSTAIC´s<br />
strong position<br />
Competitors´<br />
challenges<br />
• Strong position in the solar value chain outside commodity producers<br />
• Due the strong differentiation of the Energy Roof Systems, the conventional PV solutions of other downstream<br />
players in the market do not constitute a direct competition<br />
• Currently no technical matured product available on the market which is similar to SYSTAIC’s energy roof<br />
• First mover advantage in the integrated solar components for solar roofs in the automotive industry,<br />
cooperations ensure roof construction know-how<br />
• Building up own direct marketing structures and one-stop shopping concept<br />
• Sourcing the solar panels from a highly competitive supplier market with dropping prices<br />
• Forced to take a flying leap to make up for SYSTAIC’s three years of R&D<br />
• Must supplement their product line by all the additional roofing equipment (eaves, gables, etc.) which is<br />
necessary for complete energy roofs<br />
• Have to build up new sales and distribution channels, as these companies mostly distribute their products<br />
through wholesalers and electricians<br />
15
MARKET DEVELOPMENT – CAPACITIES<br />
Global panel production capacity expected to exceed demand during the next 4<br />
years. SYSTAIC benefits from overcapacity and price pressure on suppliers.<br />
* Source: EPIA 2009<br />
** Offers and price indications of tier 1 Chinese suppliers (bankable panels)<br />
16
MARKET DEVELOPMENT – DEMAND<br />
The building and the automotive market is highly attractive for SYSTAIC’s<br />
products<br />
Number od new buildings and roof refurbishments per year* Automotive solar roof market* (Annual production)<br />
in ´000 units<br />
• With approx. 1.8 million new roofs per year there is a large<br />
market in Germany and countries where SYSTAIC is active<br />
* Source: SYSTAIC analysis<br />
in ´000 units<br />
• Currently, customers pay extra for solar applications; 37,000<br />
automotive roofs in 2008<br />
• In the medium term, car solar roofs will be offered as<br />
standard due to<br />
• a reduction in fuel consumption<br />
• government regulations and CO2 reduction targets<br />
• electricity demand of hybrid and electric cars<br />
• Expected market share of solar roofs: 10% of all mid- and<br />
upper-class models = 2 million<br />
17
MARKET DEVELOPMENT – COMPETITION<br />
SYSTAIC expects to outperform the market also in 2009<br />
Bosch<br />
* Source: Bloomberg consensus (except SYSTAIC)<br />
Not available due to acquisition by Bosch<br />
18
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
19
STRATEGY<br />
SYSTAIC expects continued growth in all business segments with a shift in<br />
sales structure<br />
Cash cow<br />
Future stars<br />
SYSTAIC Solar Power Plants<br />
So far, SYSTAIC has generated the major<br />
share of its sales within its Solar Power Plants<br />
segment.<br />
SYSTAIC Energy Roof Systems<br />
SYSTAIC‘s Energy Roof will benefit from the<br />
regulatory framework in many SYSTAIC‘ s<br />
existing markets which provides an enormous<br />
potential to commercialise the product<br />
SYSTAIC Automotive<br />
SYSTAIC is a pioneer in the development of<br />
photovoltaic solar roofs for the automotive industry<br />
and hence holds the pole position in this market<br />
segment<br />
• Established products in all business segments<br />
• Continued growth expected in all segments<br />
• Segments in different growth phases<br />
20
STRATEGY<br />
With the integration strategy SYSTAIC is top prepared to meet future industry<br />
challenges<br />
Industry challenges SYSTAIC’s strategy<br />
1. Shake out of commodity producers due to overcapacities<br />
2. Entry of market leaders in fossile energy (Siemens, GE,<br />
etc.)<br />
3. Asian manufacturers aggressively fighting for market<br />
share<br />
4. Ongoing changes in national feed-in laws<br />
1. Integration concept differentiates products from<br />
commodities and allows higher margins<br />
2. Focus on products and services with clear USPs<br />
3. Lean business model with downstream position close to<br />
customers<br />
4. Extending country portfolio. Price reduction of solar<br />
components allow grid parity soon.<br />
21
STRATEGY<br />
SYSTAIC develops itself differently than most solar players due to its unique<br />
downstream business model focusing on integration concept<br />
SYS<br />
• Downstream business model with strong customer focus<br />
and position outside commodity production<br />
• Unique product, distribution & service concept in the Energy<br />
Roof Systems and Automotive division<br />
• Promising organic growth story based on three<br />
complementary established business units<br />
• Strong order pipeline in the Solar Power Plants segment<br />
covers expected sales for 2009 and 2010<br />
• Growth target 2009: > € 300m in sales, ~ 7% EBIT margin<br />
• Guidance for 2010: € 400-450m in sales and ~ 8% EBIT<br />
margin<br />
22
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
23
FINANCIALS AS OF SEPTEMBER 30 2009<br />
SYSTAIC’s increased revenues sixfold each of last two years. Target for 2009<br />
are sales over €300m with an EBIT margin of 7%<br />
P&L 2006 – 9M 2009 (€m)<br />
BALANCE SHEET INDICATORS 2006 – 9M 2009<br />
73%<br />
2006 2007 2008 9M 2009<br />
Sales EBIT Sales (9M) EBIT (9M)<br />
2006 2007 2008 9M 2009<br />
Equity ratio (%) 37% 39% 22% 39%<br />
Net Debt (m€) 0.8 15.9 65.2 41.3<br />
Net Working Capital (m€) 2.0 22.0 88.5 81.6<br />
Free Cash Flow 9M 2008 vs. 9M 2009 (€m)<br />
* Source: SYSTAIC<br />
24
FINANCIALS AS OF SEPTEMBER 30 2009<br />
Quarterly results show SYSTAIC developing according to expectations<br />
Corporate P&L 2008 – 9M 2009 (€m)<br />
2008 9M 09<br />
Sales (+) 198.7 100.0% 193.2 100.0%<br />
Cost of sales (-) 169.5 85.3% 165.2 85.5%<br />
Gross Profit 29.3 14.7% 28.0 14.5%<br />
Other income (+) 1.3 0.6% 3.4 1.8%<br />
Personnel expenses (-) 7.7 3.9% 9.8 5.1%<br />
Operating expenses (-) 11.8 5.9% 10.2 5.2%<br />
Depreciation (-) 1.5 0.7% 2.2 1.1%<br />
EBIT 9.5 4.8% 9.2 4.8%<br />
Interests (net) (-) 3.8 1.9% 5.8 3.0%<br />
Tax (-) 2.7 1.4% 0.9 0.5%<br />
Net Profit 3.0 1.5% 2.5 1.3%<br />
* Source: SYSTAIC<br />
25
FINANCIALS AS OF SEPTEMBER 30 2009<br />
Balance sheet 2008 showed high working capital due to peak in financial crisis.<br />
9M 2009 balance sheet recovered with healthy and strong ratios<br />
Balance sheet 2008 – 9M 2009<br />
Assets 2008 9M 2009 Equity & Liabilities 2008 9M 2009<br />
Tangible assets 20.1 9% 21.1 12% Equity 49.6 22% 68.8 39%<br />
Other long-term assets 8.7 4% 10.5 6% Minorities 1.2 1% 0.8 0%<br />
Inventories 10.4 5% 13.7 8% Long-term liabilities 16.4 7% 34.7 20%<br />
Trade receivables 180.1 80% 88.0 49% Trade payables 89.3 39% 22.5 13%<br />
Cash & other assets 7.1 3% 43.8 25% Other short-term liabilities 69.9 31% 50.3 28%<br />
Total Assets 226.4 100% 177.1 100% Total Equity & Liabilities 226.4 100% 177.1 100%<br />
Consolidated total assets 9M 2009 were €177m, representing a reduction of about 22% since end of 2008.<br />
Equity at €69.6m, equity ratio at 39.3%<br />
* Source: SYSTAIC<br />
26
FINANCIALS AS OF SEPTEMBER 30 2009<br />
With over 90% of sales the Solar Power Plants segment remains largest<br />
contributor to sales and EBIT<br />
• In spite of increased sales (+2,7m€), EBIT in<br />
segment Energy Roof Systems is still<br />
negative due to critical mass not yet<br />
achieved, expenses for R&D, product<br />
development and building up of distribution<br />
channels.<br />
• Reduced sales and EBIT in Automotive<br />
segment caused by economic downturn but<br />
orders are recovering.<br />
• Solar Power Plants exceed previous year by<br />
64m€ in sales and 8m€ in EBIT due to strong<br />
order pipeline.<br />
* Source: SYSTAIC<br />
27
FINANCIALS AS OF SEPTEMBER 30 2009<br />
Projects larger than 10 MWp constructions start only after financial commitment<br />
by investors. Milestone payments ensure cash positive construction phase.<br />
Project<br />
Development<br />
~ 20 % of<br />
project volume<br />
Down payment<br />
at project start<br />
Engineering &<br />
procurement<br />
Milestone<br />
payment 1<br />
Bank guarantees<br />
Milestone<br />
payment 2<br />
Construction<br />
Milestone<br />
payment 3<br />
…<br />
Final payment<br />
(grid connection)<br />
Operation & maintenance<br />
Net Cash<br />
time<br />
28
FINANCIALS AS OF SEPTEMBER 30 2009<br />
Current project pipeline includes projects in different phases of financing and<br />
exceeds 2010 guidance substantially.<br />
Project pipeline<br />
Segment Country Project Description<br />
Energy Roof Systems<br />
Realisation in Q4 2009/<br />
& 2010 (€m)<br />
Germany several Private homes and commercial roofs approx. 70.0<br />
International several Private homes and commercial roofs approx. 10.0<br />
Subtotal 80.0<br />
Solar Power Plants<br />
Italy several Greenhouse-integrated solar power plants 4.0<br />
Italy Is Fenugus Greenhouse-integrated solar power plants approx. 136.0<br />
Italy UTA Greenhouse-integrated solar power plants > 400.0<br />
Spain Canaria Greenhouse-integrated solar power plants 50.0<br />
Italy Bioi Greenhouse-integrated solar power plants 100.0<br />
Subtotal > 690.0<br />
Total > 770.0<br />
* Source: SYSTAIC<br />
29
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
30
KEY INVESTMENT HIGHLIGHTS<br />
Business model outside commodity segment, leadership in solar integration and<br />
continued outperformance of market make SYSTAIC a top investment<br />
The strongest growing German stock listed solar company<br />
Resilient business model benefitting from solar market<br />
Ahead of competition through unique products with tailored marketing concept<br />
Market leader for integrated solar solutions for buildings and vehicles<br />
Three business segments with established products<br />
Experienced and highly committed management team<br />
31
AGENDA<br />
• COMPANY OVERVIEW<br />
• MARKET DEVELOPMENT<br />
• STRATEGY<br />
• FINANCIALS AS OF SEPTEMBER 30 th 2009<br />
• KEY INVESTMENT HIGHLIGHTS<br />
• APPENDIX<br />
32
APPENDIX<br />
Conventional solar rooftop systems cannot compare with the highly aesthetic<br />
integrated solution of the SYSTAIC energy roof<br />
Conventional rooftops<br />
(Current television ads from competitors)<br />
SYSTAIC Energy Roof System<br />
33
APPENDIX<br />
Competitors’ products do not offer comparable functions and aesthetics<br />
Sunpower Solon Roto<br />
Solarworld Conergy Sunpower<br />
34
APPENDIX<br />
Both in fuel-driven cars as well as in hybrids and electric cars solar applications<br />
can be used sensibly<br />
VALUE ADDED OF <strong>SOLAR</strong> APPLICATIONS:<br />
Fuel-driven cars<br />
Hybrids / electric<br />
cars<br />
• Less fuel consumption by relieving light machine<br />
• Support of air conditioning and operation of fan<br />
• Optimised battery management<br />
• Range extension<br />
• Emission-free energy for battery charging<br />
• Significant power supply for onboard electronics<br />
35
CONTACT DETAILS<br />
We hope you have found this<br />
presentation informative and would be<br />
pleased to deal with any questions.<br />
In case of any questions please contact<br />
our IR department.<br />
systaic AG<br />
Sonja „Billy“ Teurezbacher<br />
Phone: +49-(0)211-828559-235<br />
Email: ir@systaic.com<br />
36 36