7C Solarparken AG: Downward revision of 2024 guidance

Bayreuth (pta040/01.07.2024/16:00 UTC+2)

Bayreuth, 1. July 2024 7C Solarparken (WKN: A11QW6, ISIN: DE 000A11QW68) announces a downwards adjustment of its 2024 EBITDA guidance to a range of EUR 46 to 52 million (previously: "at least EUR 57 million"), whereas the 2024 guidance for Cash Flow per Share (CFPS) is revised to a range of EUR 0.43 to 0.50 per share (previously "at least EUR 0.57 per share").

This downward revision of EBITDA consists of two effects: an operational effect of EUR 5.0 million due to bad weather conditions, low electricity prices and late commissioning of newbuilt projects as well as a non-recurring effect of up to EUR 6.0 million due to an impairment for the Bitterfeld project.

Based on preliminary data for H1 2024 the production output has come in approximately 15% below normal levels due to adverse and unprecedented weather conditions from February until June.

Furthermore, electricity prices remained below the implicit guidance assumption for the PV market price of EUR 52 per MWh. However, the fixed feed-in tariffs for the group's German solar assets as well as the electricity price swap agreements have supported EBITDA in the first half 2024.

For the full financial year 2024, the group had also assumed a first contribution to EBITDA from two large newbuilt solar assets: Burgwindheim II (11 MWp) and Bitterfeld (20 MWp), while for the first project grid connection is deferred due to administrative hurdles, the latter project appears to have entered a distressed situation for the group. Construction on the solar asset in Bitterfeld has not been completed and final works still have to be executed in order to achieve grid connection.

In addition, management has decided today to make an impairment for an amount of EUR 6.0 million, equivalent to EUR 0.07 per share regarding the Bitterfeld project. In June 2023 the group has taken over a shareholder loan to the project company of the large newbuilt solar asset Bitterfeld free of any liens and encumbrances at a price of EUR 5.3 million and provided a further loan of EUR 0.7 million to the project company. Last weekend, the group was notified, however, that the shareholder loan of EUR 5.3 million had already been pledged to a third-party investor by the seller prior to our investment. This is an obvious and severe breach of representations and warranties by the seller, for which the group will seek full compensation using all available legal remedies. However, the chances for a full recovery seem minor, which has led to a decision of maximal impairment. It still needs to be verified by the group auditor whether this impairment will be classified as non-recurring operating expense or as depreciation and amortisation. Depending on the outcome of this verification, we will restate our guidance as a more specific figure rather than the guidance range announced today.

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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