ENERLAND 2007 FOTOVOLTAICA S.L.

Enerland is a group dedicated to the development, construction, management, and maintenance of photovoltaic plants of various sizes in Spain, other European countries, as well as some Latin American countries.

Enerland was founded in 2007, and the parent company of the group is called Enerland 2007 Fotovoltaica, S.L.

The group has over 3,190 MW in development worldwide, spanning across 10 countries (including Spain and Italy), and handles the entire development process internally. In terms of construction, they have successfully completed 35 photovoltaic parks in 13 different countries.

Enerland is committed to sustainability. Through its projects, it has effectively reduced nearly 1 million tons of CO2, which is equivalent to 1,750 million trees or 684,000 vehicles.

THE ANALYST'S ADVICE

Enerland is a group established in 2007 dedicated to the development, construction, operation, and maintenance of photovoltaic power plants in various countries such as Spain, Mexico, El Salvador, Romania, Panama, Italy, Brazil, Costa Rica, Nicaragua, and the Philippines through its international companies.

The parent company of the group is Enerland 2007 Fotovoltaica, S.L., which was established in 2007 in Zaragoza.

The company's shareholders include Astley Capital Investment with a 28% stake, Marta 1970 Inversiones with a 36% stake, and Balben Capital 2010 with a 36% stake. The ultimate beneficiaries of the company are Manuel Balet Sala and Francisco Javier Gil Gómez.

Enerland 2007 Fotovoltaica, S.L. is managed by two joint administrators: Balben Capital 2010 and Astley Capital Investment. Manuel Balet Sala and Francisco Javier Gómez Gil represent both companies in Enerland, respectively. As the financing consists of a corporate loan for Enerland 2007 Fotovoltaica, S.L., an independent external consultant, Focus Partners, has been commissioned to analyze the company's financial situation (at an individual level; a comment on the group at a consolidated level is provided at the end).

Enerland stands out for its sales growth, increasing from a revenue of €12 million in 2019 and €9 million in 2020 to €24 million in 2021 and €74 million in 2022. In terms of expenses, procurement represents a significant portion of the costs, and there has been a relative reduction in personnel expenses, decreasing from 9% of revenues in 2019 to 5% in 2022. Furthermore, the company consistently reports profits (though reduced until 2020), increasing to €2.8 million (after taxes) in 2022, which represents 12% of the total company revenues for that year.

In terms of the balance sheet, there is a strong liquidity position, with over €23 million in cash available at the end of 2022. This contributes to a working capital (the difference between current assets and current liabilities) of €4.4 million at the same date.

Long-term solvency may appear slightly imbalanced at first glance, as the ratio of net equity to total debt is unbalanced (net equity represents only approximately 14% of the total of liabilities and net equity). However, it is necessary to consider this ratio from a sectoral perspective: it is widely known that leverage levels tend to be high in the electricity sector. Additionally, the company has development projects that could be sold, whose value is not fully recognized in the balance sheet, and could generate profits and, consequently, increase net equity if needed. This has already been done in the past: Enerland sold a project during the 2021 financial year to a third-party company, generating financial benefits of approximately €8 million.

Furthermore, it has been confirmed that the company's debt in the balance sheet can be comfortably repaid during the upcoming fiscal years thanks to the generation of its regular income, allowing for the entry of new debt.

Based on the above, it can be concluded that the company is solid and able to meet short-term debt obligations, and overall, the current financial situation of the company is positive.

CONCLUSIONS

In the legal analysis of the crowdfunding campaign promoter, Enerland 2007 Fotovoltaica, S.L., including a reputational analysis of the company, no negative conclusions have been revealed in any case. Similarly, the Botorrita project has been analyzed, and the guarantees are considered solid due to the support of Enerland 2007 Fotovoltaica, S.L., as a company.

CONTRACT STRUCTURE

The Financing Agreement is a purpose loan: Enerland 2007 Fotovoltaica S.L. undertakes to use the funds received from Investors exactly as specified in the Project presented in the public offering and not to divert them for other purposes.

COST STRUCTURE

The estimated cost for the construction of the three photovoltaic plants is €907,000. The minimum target of the fundraising on Ener2Crowd will cover 22% of the Capex, while the maximum target will cover 33% of the total.

The crowdfunding lending campaign is a bridge loan that helps the company cover costs and proceed with the installation and construction works; the remaining portion of the Capex is covered by company funds and financial institutions.

AMORTIZATION SCHEDULE

The repayment plan involves the repayment of the principal only in the final installment. There are quarterly installments with an interest component of €5,250.00.

The following amortization plan for Enerland 2007 Fotovoltaica S.L. is calculated with an interest rate of 7% on a total amount of €300,000.

*net of any tax withholdings.

INCOME TAXATION

In accordance with current regulations, the tax rules require that the financed legal entity, in this case Enerland 2007 Fotovoltaica, S.L., apply withholding taxes as follows:

• For non-resident investors:
• If you are an individual: application of a final withholding tax rate of 19%;
• If you are a legal entity: application of a final withholding tax rate of 19%.
• For resident investors in Spain:
• If you are an individual: application of an advance withholding tax rate of 19%;
• If you are a legal entity: application of an advance withholding tax rate of 19%.

SDGS ACTIVATED BY THE PROJECT

• SDG 7 - There is significant energy savings generated by energy efficiency interventions;
• SDG 9 - Implementing resilient infrastructure and promoting sustainable industrialization;
• SDG 11 - Improving access to affordable and sustainable housing and enhancing sustainable urbanization;
• SDG 12 - Ensuring responsible consumption and production patterns;
• SDG 13 - Taking action to combat climate change and its impacts, including through awareness-raising and capacity-building, and integrating climate change measures into policies, strategies, and planning.

Become a protagonist of the future and sustainable development by funding this initiative!

PHOTOVOLTAIC

Photovoltaic panels are devices that convert sunlight into electrical energy. Composed of solar cells containing semiconductor materials, the panels capture photons from the sun and convert them into direct current (DC) electricity. This clean and renewable energy can be used to power our homes, businesses, transportation, and industries, reducing environmental impact. In addition to this environmental benefit, there is also a financial advantage derived from self-consumption and/or selling the energy produced by the system. Estimates predict over 50 GW of new photovoltaic installations for European countries, putting Europe on a path of expansion with an average annual growth projection of 85 GW by 2026. In 2022, 41.4 GW of photovoltaic installations were installed across Europe, a 47% increase compared to the 2021 figure of 28.1 GW (1). Photovoltaics represents one of the most promising renewable technologies to drive us towards the decarbonization of the energy sector. Supporting initiatives like these becomes crucial in moving closer to a future that is increasingly sustainable.

WHAT ARE THE ENVIRONMENTAL BENEFITS GENERATED BY THE PROJECT?

It is estimated that the photovoltaic system of the Botorrita project will have a total annual production of 2.029 GWh, which is equivalent to:

                   

Saving 872,470 kg of CO2 emissions into the atmosphere every year

                   

Planting 87,247 trees, an amount that can cover an area equivalent to 445 football fields

                   

Avoiding the exhaust emissions of 610 cars every year