7C Solarparken AG: 7C SOLARPARKEN announces 9-months figures 2016

Bayreuth (pta009/18.11.2016/08:00 UTC+1) 7C SOLARPARKEN announces 9-months figures 2016
ISIN DE000A11QW68

* 16% INCREASE IN ELECTRICITY PRODUCTION IN THE FIRST 9-MONTHS OF 2016
* 9M EBITDA OF EUR 24,9 MIO ALREADY EXCEEDS FULL YEAR EBITDA GUIDANCE OF EUR 24 MIO
* EXECUTION OF NEW STRATEGIC PLAN 2016-18 HAS STARTED

OPERATIONAL ACTIVITY

Power Production

In the first nine-months of 2016, electricity production rose by 16% to 76 GWh underpinned by an average installed capacity base of 88 MWp versus 71 MWp in 2015. The largest impact was the acquisition of the Miskina-Portfolio (13.7 MWp), which was fully reflected in the figures during 2016 for the first time, whilst the divestment of the French installation in Sainte Maxime (1 MWp) and Blumenthal (3.1 MWp) were no longer included in the first three quarters of 2016.

		2016 9M	2015 9M	Change
Weighted average capacity base	MWp	88	71	+24%
Production	GWh	76	65	+16%
Specific Yield	kWh/kWp	865	924	-6%

The third quarter of 2016 was almost at par (-1%) with the specific yield in the comparable quarter of 2015, which was characterized by an above-average irradiation as well. During 2016, September in particular was exceptionally sunny. Still, the specific yield of our capacity base for the first three quarters of 2016 was impacted by relatively poor weather conditions observed in the first half of 2016 (-10%). As a consequence, the specific yield for the first nine-months was down by 6% to 865 kWh/kWp compared to the previous period (924 kWh/kWp).

		2016Q3	2015Q3	Change	2016H1	2015H1	Change
Weighted average capacity base	MWp	90	71	+26%	86	71	+22%
Production	GWh	33	27	+25%	42	39	+10%
Specific Yield	kWh/kWp	372	375	-1%	492	549	-10%

Asset Portfolio

At the end of the first 9 months 2016 capacity for the solar asset portfolio was at 94 MWp. After having reached the 95 MWp mark through the investment in the Mühlgrün project (1 MWp) in November 2016, capacity will be progressively expanded through completion of the current project under construction (Ludwigsfelde 1.3 MWp). In July 2016, the own development project Großfurra (4.1 MWp) was awarded a feed-in tariff under the new EEG tender scheme. The project is ready for construction in 2016, but will be operational in 2017.

INVESTMENTS	2016			2015
	Project Name	Capacity (kWp)		Project Name	Capacity (kWp)
Q1	Fahrenholz	2,005		Stolberg	648
Q2	Wandersleben	1,423		Glauchau I	1,059
	Groß-Stieten	1,434		Glauchau III	372
	Neubukow	857
Q3	Halberstadt	240		Miskina Portfolio	13,695
	Goldberg (commissioning in Q4)	1,750
	Schönebeck	3,496
Q4	Mühlgrün	1,000		Grafentraubach	1,817
	Ludwigsfelde (under construction)	1,316		Tulkas	644
	Großfurra (ready for construction)	4,100

The company aims to generate at least EUR 0.2 Mio. EBITDA annually by means of asset rotation. Upon selling Blumenthal in the first quarter 2016, the target for the current year is already achieved.

DIVESTMENTS	2016			2015
	Project Name	Capacity (kWp)		Project Name	Capacity (kWp)
Q1	Blumenthal	3,124
Q4				Sainte Maxime	1,028

In addition to the expansion of the solar asset portfolio, the company acquired the plots of land for the Großfurra (6.9 ha.) and the Mühlgrün (1.5 ha.) projects and added them to its PV Estate portfolio in the third quarter 2016.

OTHER MAJOR EVENTS IN THE THIRD QUARTER 2016

During its Investor Day held on September 20th 2016, the management has communicated its new Business Plan 2016-18 targeting (1) capacity growth from 94 MWp to 115 MWp by year-end 2017, (2) a further optimization program aiming an increased annual EBITDA of EUR 0.4 Mio and (3) the closing of a strategic deal in 2018.

OPERATIONAL RESULTS

The revenues of EUR 26.5 Mio. over the first nine months of 2016 increased by 20% compared to the same period in 2015 (EUR 22.0 Mio.). The strong revenue growth was mainly due to the expansion of the asset portfolio during 2016 as well as the full period effect of the investments during 2015. It was achieved in spite of lower irradiation conditions in the current year, as specific yield for the portfolio was down by 6%.

EUR Mio.	2016 9M	2015 9M
EBITDA	24,9	17,7
Transaction & Restructuring costs	0,1	0,5
PPA / Badwill	-1,7	-0,3
Balance of provisions	0,0	0,3
Other operating income	0,0	-0,1
Sum of one-off effects	-1,6	0,4
Clean EBITDA	23,3	18,1

The Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) reached EUR 24.9 Mio. for the reporting period, which is a 41% increase compared to the first nine months of 2015. Therefore, the EBITDA guidance for 2016 (EUR 24.0 Mio.) has already been exceeded in the first nine months of 2016.

The EBITDA of the reporting period was supported by gains from bargain purchases (+EUR 1.7 Mio.) and slightly negatively impacted by transaction costs (-EUR 0.1 Mio) As a result, clean EBITDA was at EUR 23.3 Mio. or up by 29% compared to the same period in the previous year.

FINANCIAL POSITION

The liquidity position at the end of September increased with 13% to EUR 31 Mio. compared to the end of 2015, whereas the financial debt of the company only slightly increased to EUR 182 Mio. (+0.4%). As a result, the net debt of the company was improved by EUR 2.8 Mio to EUR 151 Mio.

NET DEBT (in Tsd. EUR)	30.09.16	31.12.15
Financial debt	182,207	181,504
Cash & Cash Equivalents	30,839	27,336
Net Debt	151,368	154,168

OTHER MAJOR EVENTS AFTER THE THIRD QUARTER 2016

Issue of a EUR 2.5 Mio. Convertible Bond
In October, the company issued a convertible bond of EUR 2.5 Mio. with a 2.5% coupon, a term of 1 year and a 2.5 EUR per share conversion price. The convertible bond was fully placed with existing shareholders and was heavily oversubscribed.

OUTLOOK

* Further capacity expansion will take place prior to year-end 2016
* the optimization plan has been initiated in Q3'16 and the company assumes to finish the program already at the end of the first-half of 2017.

This trading update has not been reviewed by an auditor.

Bayreuth, 18.11.2016
Steven De Proost Koen Boriau

Contact
7C Solarparken AG
An der Feuerwache 15
95445 Bayreuth
Germany
TEL: +49 (0) (921) 230557 77
FAX: +49 (0) (921) 230557 79
EMAIL: info@solarparken.com
www.solarparken.com

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