7C Solarparken AG: beats guidance and achieves a record EBITDA of EUR 74.7 Mio in 2022

Bayreuth (pta011/05.04.2023/08:00 UTC+2)

In the financial year 2022 7C Solarparken group (WKN: A11QW6, ISIN: DE 000A11QW68) has exceeded its EBITDA and CFPS guidance. Firstly, the group achieved a record EBITDA of EUR 74.7 Mio. versus EUR 48.6 Mio. the year before. The group's performance has developed very positively mainly reflecting (i) the build-up of its IPP portfolio from 338 MWp to 404 MWp, (ii) a superior year of sunshine irradiation (+12% versus 2021) and (iii) and an unprecedented increase in power market prices from 77 EUR / MWh in 2021 to 208 EUR / MWh in 2022. Cash Flow per share rose from EUR 0.56 in 2021 to EUR 0.85 per share over 2022, enabling the group to increase the proposed dividend to EUR 0.12 per share. The group's equity ratio rose further to 41% and bodes well, particularly in times of rising interest rates, to sustain capacity growth and to maintain the dividend policy. Indeed, the situation on the energy markets escalated massively after Russia's invasion of Ukraine and brought regulatory uncertainty back on the agenda, aside from higher interest rates as a weapon to fight (energy-) inflation. The impact of regulatory interventions (taking the form of price caps) for the group remained limited to EUR 0.9 Mio for 2022. The group notes that, in case the legislation had been introduced with retroactive effect as from 01 January 2022, EBITDA would have been adversely impacted by EUR 20 Mio.

Outlook 2023

The guidance for the financial year 2023 is based on a weighted operating portfolio of 410 MWp, versus the current IPP portfolio of 422 MWp. As of today, existing IPP installations totaling a capacity of 24 MWp, have yet to be grid connected. Irradiation in Q1'23 has been extremely poor with an estimated level of 120 kWh/kWp versus 154 kWh/kWp in a normal year. Assuming a return to a standard irradiation year as from April 2023. 7C Solarparken forecasts a relative yield of 941 kWh/kWp for the full year. In line with the current commodity curve, the annual power price is seen at 125 EUR / MWh, of which 98 EUR / MWh relates to solar. As a result of lower irradiation and to a larger extent a return to normal levels in power prices, management anticipates EBITDA and CFPS to reach EUR 57 Mio and EUR 0.60 per share respectively. For 2024, the group now estimates a CFPS rise to EUR 0.65 per share. The current Strategic Plan 2021-24 assumed CFPS of EUR 0.57 per share for the current financial year 2023 and EUR 0.60 per share for 2024.

Steven De Proost, CEO of 7C Solarparken AG: "Our 2022 results show we are outperforming the market's expectations and demonstrate the cash flow potential of the company. Of course, we won't be able to beat the 2022 results in the current year. Exceptionally high electricity prices are unsustainable, else they are likely to be eroded through caps or other regulatory interventions. We have reviewed our financial plan for the next two years and increase our 2023-24 CFPS objectives today. Investors should be well aware that our definition of CFPS is equal to EBITDA minus lease payments, interest paid as well as taxes paid. The prepayment of taxes over 2023 will track the earnings trend of 2022, and therefore risk to be distorted in a year-on-year comparison. In spite of this cash flow effect, we raise our CFPS guidance for 2023-24."

Annual Report 2022

The Annual Report is available at the website of the company under "Investor Relations" as from 5 April 2023 2:00pm. A conference call for analysts is planned on 5 April 2023 at. 8:15 am.

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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