7C Solarparken AG: 7C Solarparken presents its Next Three Years Plan

Bayreuth (pta007/10.12.2019/08:35 UTC+1) 7C Solarparken (WKN: A11QW6 / ISIN: DE000A11QW68) presents its Plan "Integrate Growth, then Scale Up to 500 MWp" today.

Integrate Growth
Following accelerated growth during the last two years, management plans to shift short-term focus on integration and optimisation, while still planning to meet its capacity target of 220 MWp at the end of 2020. The targeted growth up till 220 MWp will mainly come from projects developed in-house which have reached a ready-to-build status or are close to obtaining final permits.

The primary goal for 2020 however, is to integrate recent growth. Firstly, there are PV installations, amounting to 6 MWp in total, which were commissioned during 2019, but due to long delivery times for transformers are not connected to the grid yet. Secondly, management plans to increase operational efficiency of multiple operating parks, which have been acquired during the last three years through replacing panels, cables and connectors. Thirdly, the company will allocate capital to some parks, which are part of its Asset Management business. Amongst others, 7C Solarparken has submitted a takeover bid on the largest underperforming fund which it considers unsuitable for retail investors due to technical risks. Through the bid and other capital-intensive initiatives, the management assumes control (and full consolidation) can be achieved, even with a minority position, as from 2021. The entire integration program will cost EUR 7.2 Mio. of which EUR 5 Mio relates to building up equity stakes in the underlying projects of the Asset Management business. The successfully closed rights issue of EUR 8 Mio. enables prompt execution of the Integration plan.

Then scale up to 500 MWp
7C Solarparken will continue to strive towards turning its Vision 2025 (500 MWp) into reality. The aim is to enlarge the full capacity including Asset Management from currently 267 MWp (190 MWp IPP plus 77 MWp Asset Management) to 500 MWp by the end of 2022 already. The IPP Portfolio is targeted to expand to 350 MWp through participating into M&A and consolidation trends, and capturing opportunities from an accelerating new-build market in Germany. Concerning the Asset Management business, the company targets horizontal expansion leveraging its acquired platform but also considers to apply for an own fund management license to enable (co-)investment chances with large institutional investors. In total, management sees the need for additional project equity capital to grow to 500 MWp at EUR 44 Mio. Hereof, EUR 14 Mio should stem from alternative financing which, thanks to the strong Equity Ratio of over 31%, is again being actively considered. The remainder of EUR 30 Mio. will be raised through private placement, rights issue and/or contribution in kind in a similar way to the previous years.

Financial Targets
Upon realising its 220 MWp objective, 7C Solarparken expects to generate annual EBITDA of EUR 42 Mio and a Cash Flow per Share of EUR 0.57 as from 2021. Assuming the 500 MWp capacity showcase and the required financing for it, CFPS will potentially to rise to at least EUR 0.60/share after 2022. The group's dividend policy remains unchanged, meaning the dividend will follow the trend in cash flow per share. The dividend for the financial year 2019 will remain stable at EUR 0.11/share.

Investor Meeting
7C Solarparken AG will hold its investor meeting at the MKK Conference in Munich on December 10, 2019. The slideshow will already be available on the website www.solarparken.com at 09.00h CET.

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Emitter:	7C Solarparken AG An der Feuerwache 15 95445 Bayreuth Germany
Contact Person:	Koen Boriau
Phone:	+49 921 230557-77
E-Mail:	info@solarparken.com
Website:	www.solarparken.com
ISIN(s):	DE000A11QW68 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	London