Holaluz-Clidom, S.A. ($HLZ)

Good morning, and welcome to Holaluz's earnings call. Thank you for joining us. I'm Carlota Pi, Co-Founder and CEO of Holaluz, and I am delighted to be sharing the results for the full fiscal year ended December 31, 2025. With me is Foix Valde, our Chief Financial Officer, who will take you through our detailed financial results later in the presentation. 2025 was a year of 2 very distinct halves. And by the end of H2, the business was back to where it belongs, growing, profitable in energy management and reaching breakeven in solar and storage in December 2025. That is the story we are here to tell. Before we begin, I want to remind everyone that our discussion today may include forward-looking statements, which reflect our current expectations. Actual results may differ materially from what we discuss. This slide contains our complete disclaimer. Here is what we will cover. First, an overview of who we are, our business model, the market context and the technology platform we have built. Then our full year 2025 performance highlights. Foix will take you through the detailed financial results. And finally, we will close with our ESG progress and a summary of where we stand heading into 2026. Our commitment to fully decarbonize the world drives everything we do. We are building the largest and most impactful green energy community in Europe, unleashing the full potential of electrifying energy demand by scaling distributed solar and storage across rooftops in Spain through technology. To understand why our model matters so much right now, let me start with the structural challenge we are solving. Spain's centralized energy grid was not built for the world we are entering. The data on this slide paints a clear picture of a system under strain. 83% of Spain's electricity distribution nodes are already at or above capacity. 90% of new grid accesses requests were denied in 2025. 21% of Spain's renewable electricity was curtailed, wasted because the grid cannot efficiently redistribute it to where demand is. And over EUR 20 billion are needed to upgrade Spain's distribution grid this decade. All this data according to ILEC CNMC, APA and Euro Electric. The centralized model was built for a different era. It was not designed to integrate renewable generation at the scale required today. The answer is not to patch the infrastructure. It is to build a smarter distributed layer alongside it, and that is exactly what Holaluz has been doing for 15 years. And while the grade struggles to keep up, demand is only accelerating, driven by electrification of every energy kind of demand. 318 terawatt hours is the Spain projected electricity demand by 2030, up from 245 terawatt hour today. This means more than 30% growth in under a decade, in fact, in less than 5 years. 3x is the projected growth in Spain's data center electricity demand by 2030 driven by AI and cloud computing according to the International Energy Agency data from 2025. It is AI data centers. The electrification of everything is creating a demand wave that no centralized grid can meet at the speed required. The distributed model is not just better for integrated renewables. It is the only way to scale fast enough to serve this demand. Holaluz sits at exactly this intersection. We want to be very clear about something. Holaluz is not an energy retailer. We are a tech platform that connects green energy producers with consumers. We are present in all steps of the process, managing all the energy and data flows in between. Our model has 4 interconnected elements. Number 1 and at the core is the technology platform. our proprietary tech platform is the intelligence layer that optimizes production and consumption patterns across the entire network in real time. Number two, if a producer, solar and storage producers. It is a one-off installation unit that maximizes every rooftop for the benefit of the solar owner and their local network at Holaluz. Number three, our producers at scale through either route to market and PPAs. This is wholesale electricity bought and represented from 100% certified renewable generation grid generators fitting our network. And number four are our customers that we have under the energy management category, it is our recurrent revenue unit, managing energy supply and ongoing maintenance services sourcing from at-scale grid generation and customer site distributed solar and batteries. These were elements in our ecosystem create a flywheel. Every new installation strengthens the network. Every new customer enriches the data, the platform gets smarter, costs come down and the community grows. This slide shows the engine behind everything we do. Energy flows are matched to the nearest available source automatically in real time. That is not a vision. It is live today. Our tech platform is the brain of the ecosystem. It handles real-time energy routing, AI, price and demand forecasting, automated billing and settlement day ahead and intra-date trading, grid balancing and ancillary markets, all powered by our proprietary algorithm hub. On one side, large-scale wind and solar producers fit 100% certified renewable electricity into the world network. On the other, rooftop installations with batteries act as dispatchable nodes in the BPP. And in the middle, Holaluz tech platform, routing energy intelligently between them. This is what separates us from any energy retailer, either traditional or independent new retailer. No one else has built anything like this. 15 years of proprietary IP production grade AI, a platform built natively on the cloud, already operating at scale, not a road map. Our algorithm hub has 4 core capabilities. First, reinforcement learning. Algorithms that autonomously learn optimal battery charge and discharge decisions in a constantly changing market without human intervention. Second, price forecasting proprietary models predicting day ahead and intraday spot prices enabling systematic arbitrage and hedging across our entire customer portfolio. Third, demand prediction per customer hourly consumption forecast fed by over 95% smart meter coverage, underpinning the subscription models risk management. And fourth, generation optimization, real-time solar output forecasting combined with battery dispatch decisions to maximize self-consumption and arbitrate revenue. Beyond the algorithms, the platform is built natively on the cloud. We pioneered Europe's first 100% cloud-based delegated dispatching center. And the first, of course, in Spain, connected to the electrical panel, who is the system operator. One platform, over 221,000 contracts, almost 13,000 distributed solar and storage assets, every new installation connects automatically with no added operational complexity. This is infrastructure built to scale. Everything we have built comes together in, Europe's only true energy subscription model. For the customer, it is one flat monthly fee subscription rate, no spot market exposure, no surprises. Electricity reimagined as a predictable subscription-based service. Here is how it works. Over 95% of our customers have smart metering systems, giving the platform real-time visibility of every household's consumption every hour of the day. Our algorithm have forecast demand and production, hedging both price and volume risk on the customers behalf, completely eliminating spot market exposure. The customer gets a personalized subscription monthly fee. Electricity becomes as predictable as Netflix or Spotify subscription. What makes it self-reinforcing, it is that every customer feeds data back into the platform. The algorithms get smarter. Costs come down and more customers join the ecosystem. This is a structural cost advantage that no other retailer can replicate. Now let me talk about one of our most powerful competitive assets, our battery leaderships, and what it enables going forward. We reached a 95% battery attachment rate in December 2025, significantly above the Spanish market average of 43%. This is a strategic asset for 3 interconnected reasons. First, first mover in distributed storage. Our installed battery base provides a structural advantage as new regulation enables behind-the-meter flexibility services. We are already there. The installed base is live. Every battery we have installed is the foundational note in our virtual power plant. By assembling our fleet ahead of the market, we will have a compounding asset, one that grows in both scale and intrinsic value with every regulatory step forward. And on that note, regulation has become a powerful tailwind that directly expands our addressable market. The new energy self-consumption decree delivers 2 critical changes. First, the proximity sharing radius has been extended from 2 kilometers to 5 kilometers, meaning its installation now serves a significantly larger pool of nearby customers. Second, consumer reach within installation radius increases from 70% to 85%. Every existing and future rooftop becomes more valuable and new energy communities business model become possible. Years of proprietary technology and operational expertise built ahead of this regulation now converge with it. transforming our capabilities into increasingly valuable assets. So where does that leave us today? The flywheel is spinning. We are the largest and most impactful grid energy community in Europe and growing, over 220,000 total energy contracts, almost 13,000 solar contracts under management. 95% battery attachment rate, 3.1 million tons of CO2 avoided since inception. The model reinforces itself. More customers without panel join as off-takers, which drives demand for more solar installations, which brings more consumers into the network, which lowers the cost of electricity, which attracts more customers, each turn of the flywheel, makes the next one faster. Let me close the about a section with our horizon as the rooftop revolution has no ceiling. We see 3 phases. Now the thing that we are doing, and it is in progress. distributed solar and storage, almost 13,000 installations live across Spain, 95% battery attachment rate, 5 kilometers proximity grid by passing T&D costs, and as a life science energy retailer aggregator, we're already active in date ahead and intraday energy markets. Next, building virtual power plant at scale. Our BPP aggregates thousands of distributed batteries into one intelligent asset, balancing supply and demand in real time. We are working to scale this capability. It is generating approximately EUR 150 per battery per year in combined BPP value today that grows with every new installation. And finally, the Horizon green hydrogen. When solar and storage reach scale, surplus clean energy power electrolyzers, decarbonizing industry, transport and heating, the same platform, the same network, a new energy sector. Now let me move to what happened back in 2025 and why we believe the business is in a stronger position than ever to execute on this vision. This year has been decisive. In one of the most complex context for the energy transition in Europe, we did more than endure. We advanced. While many players in the sector disappear, we strengthened our foundations and accelerated our transformation. We executed a EUR 22 million capital increase. We refinanced our debt with the full support of our banking partners. We embedded artificial intelligence and automation capabilities across our operating model. We achieved an industry-leading battery penetration rate. We delivered record solar results in H2 with positive results in energy management. And now we serve more than 220,000 active contracts across Spain. Our recurring revenue model continues to prove its strength, generating approximately EUR 15 million per month throughout our intelligent energy management platform. We closed the year as the market leader in distributed generation and storage in Spain, a position built on proprietary technology, disciplined execution and an integrated solar plus battery ecosystem that differentiates us structurally. As you know, from our H1 results in October, the first half was constrained by a deliberate cash preservation strategy as we awaited the traditional homologation of our debt restructuring plan. The plan entered into force on July 29 last year and from September 1 on, we executed on our business plan in full. The fiscal year 2025 story is clear. H1 was a period of constraint. H2 was proof that the underlying business is structurally sound and that the model works. I will now hand to Foix to walk you through the numbers in detail.

Thank you, Carlota. Year 2025 can be summarized in one headline, turning point in the second half of the year, restoring profitability with a reinforced balance sheet. Let me walk you through the 4 pillars of this year's performance. First, financial strengthening. Our balance sheet is now rebuilt. The EUR 22 million capital increase has been fully executed with the cushion now a 33% stake. Our debt restructuring plan has been enforced in July, covering 100% of our debt with no hair cuts, maturities extended to 2028 and 70% backed by ECO. Covenants have been raised through the end of 2028 by creditor consensus, and the plan is fully intact. Second, record operational efficiency. We achieved a 30% year-on-year reduction in normalized operating and personnel costs from EUR 37 million to EUR 26 million delivered through AI and automation embedded across the entire value chain from acquisition to billing and customer service. Call center costs are down 38%, but debt recovery is above 95%, and this is structural, most cyclical. The cost base reduced by a further 8% in H2 versus H1. Third, solid operational base growth. 2025 closed with 221,000 supply contracts and almost 13,000 solar installations under management, 4.1 out of 5 on trans payload and a record 95% battery attachment rate in December versus 46% in December of 2024 and versus a market average of 43%. And finally, fourth, market tailwinds. Our capabilities built years ahead of the market now align perfectly with the new self-consumption regulation. The EUR 22 billion eco green line and falling photovoltaic and battery prices transforming Holaluz's platform into a uniquely valuable asset. Looking at the consolidated P&L. The second half of 2025 marks the turning point. Gross profit is up 49% versus H1, and normalized EBITDA reaches EUR 4.7 million versus minus EUR 2.1 million in the first half of the year. Full year revenues were a little bit more than EUR 141 million. As you know, the first half was constrained by our cash preservation strategy ahead of the restructuring plan. In H2, commercial activity normalized from September onwards with the plan in force. Revenue mix confirms as a recurring high-quality energy management base with 3.4 years of lifetime value. In solar, the Spanish residential market continued to contract due to the high interest rate environment and the absence of government subsidies affecting installation volumes across the market. It is worth nothing that consolidating revenue figures do not include go-to-market operations, which totaled almost EUR 18 million in 2025 versus EUR 89 million in 2004. Gross margin was 22% in the second half of the year versus 17% in the first half, confirming the rapid recovery once the restructuring plan went live. Full year gross margin is 20% and the 40% jump in gross profit from H1 to H2, which is from EUR 11 million to 70 million demonstrates underlying commercial engine is intact. Operating costs reached a 30% improvement year-on-year and a further 8% reduction in the second half versus the first half of the year. This is structural. AI and automation are permanently embedded in our operations. Normalized -- consolidated normalized EBITDA reaching EUR 2.6 million for the full year driven by a decisive edge 2 turnaround. EUR 4.7 million in the second half, offsetting losses of the first half, which is a historical improvement. Energy Management delivered EUR 5.1 million of normalized EBITDA in the second half alone. Another historical milestone is that solar and storage business reached EBITDA breakeven in the fourth quarter of 2025 at 92, 100 installations per month and confirming this KPI as the run rate we are carrying into 2026. This chart shows the evolution of normalized EBITDA by segment from H1 2023 through the end of 2025. The trajectory it reveals is one of a structural transformation, especially in solar and storage. Solar and storage in yellow has delivered a dramatic improvement. Losses reduced by 95% since the first half of 2023 from minus EUR 12 million to minus EUR 0.5 million in the second half of 2025 and breakeven in the fourth quarter of 2025. Such improvement is achieved despite the challenging market and the restricted lead acquisition investment in the first half of 2025. Energy management experienced a temporary impact in the first half due to the cash protection measures during the transition period. The recovery since July has been decisive, the plus 6 percentage point swing in gross margin from H1 to H2 confirms that we have -- what we have always said, the constraint was financial, not operational. The business was structurally sound throughout. Looking at the energy management in detail, gross profit generation recovered fully in H2 with the commercial and restored. Revenue was EUR 131 million for the full year. The portfolio reduction in H1 is fully explained by the cash protection period, client acquisition recovered gradually through H2. Nevertheless, the portfolio quality remains exceptional. Since the migration to Tarifa Costa in the second quarter of 2023, we have delivered relevant savings in bad debt and cost to serve, with historical low churn and a 3.4-year lifetime value consolidated. Our portfolio is robust and high quality. Gross margin recovered to 21% in the second half, back to 2024 levels, driven by our normalized hedging strategy and commercial reactivation once the plan entered into force. Full year gross margin is 18%. Normalized operating and personnel costs saw a 12% year-on-year reduction, thanks to the cost reduction across all levels, marketing, brand personnel and OpEx. The cost structure is now optimized. Energy Management delivered EUR 5.4 million normalized EBITDA for the full year, of which EUR 5.1 million in H2 alone. The business is operating as expected. Now we move to the solar storage business. In a sector where 30 plus European solar installers filed for insolvency in 2025 and the Spanish residential installations fell 14% year-on-year, Holaluz executed a structural transformation. The key highlights for the year are we install more than 900 solar systems in the year. The average selling price was 4% up versus 2024, reaching more than EUR 10,500 per ticket. Battery penetration reached 91% on average for the full year, being 95% in December compared to 46% in December of 2024. Gross profit per installation was up 25% year-on-year. Operating and personnel costs reduced 54% year-on-year, thanks to channel diversification, head count rightsizing, COGS optimization and OpEx reduction. Normalized EBITDA improved 78% year-on-year. And the milestone we committed to, solar reached EBITDA breakeven in the fourth quarter of the year at 90 to 100 installations per month. That is the run rate for 2026 and the foundation of the profitability path ahead. Then we walk you through the balance sheet as of December of 2025. Total assets stand at more than EUR 72 million. Noncurrent assets amount EUR 47 million. Intangible assets decreased EUR 8 million. Technology investment has become more efficient through AI and automation, with innovation base maintaining. Long and term and short-term accruals amount EUR 8 million and basically include CAC investments calculated according to the customer lifetime value. Current assets amount a little bit more than EUR 25 million. The debtors amount EUR 16.6 million and show EUR 10.7 million reduction versus previous year, reflecting portfolio optimization and AI-driven collections with over 95% recovery rates. Cash is at EUR 0.7 million. The capital increase was deployed to pay producers and other suppliers and to normalize working capital. On the liabilities and equity side, the headline is a significantly improved debt structure and maturity profile. Consolidated net equity stands at minus EUR 18.7 million, reflecting the accumulated losses in the solar business line. It is important to note that the parent company, Holaluz-Clidom, has a stand-alone a positive equity of EUR 37.3 million. The operating entity is financially healthy. The EUR 22 million investment reinforces the capital base for 2026 execution. Total liabilities stand at EUR 91 million. The key movements are noncurrent liabilities increased to EUR 41 million, reflecting a EUR 20.1 million reclassification from short to long term for the debt restructuring plan maturities. This is a structural improvement in our debt profile, no new indebtedness. Current liabilities decreased by EUR 57 million and stand to EUR 50 million. Short-term debt is now EUR 11 million following the reclassification to long term. Accounts payable stand at almost EUR 39 million, a EUR 37 million reduction as investor proceeds were deployed to fully normalize supplier relationships. In conclusion, the balance sheet reflects a much more robust capital structure with extended debt maturities and a normalized working capital position. Our net debt position on December of 2025 stands at EUR 42 million, essentially flat versus EUR 41 million at year-end of 2024, but the composition has fundamentally changed. The debt is 100% restructured fully manageable and cash flow supported. The key points are is approximately 70% ecobaced reflected institutional confidence in our business model. maturities were extended to the end of 2028, a structure for full repayment without haircuts or discounts and covenants waived through the end of 2026 by creditor consensus with a plan fully in force. With H2 performance confirm and the business now executing as expected, we have a clear path to sustainable debt reduction through business execution. I will now hand back to Carlota.

Thank you very much, Foix. With the financial foundation rebuild and the business executing as designed, let me share the impact we are creating because this is ultimately why we do what we do. Three numbers define our climate track record. 3.1 million tons of CO2 avoided since inception, a verified track record independently calculated from every solar installation and green energy contract over 15 years. more than 170,000 tons of CO2 avoided in 2025 alone. Our own footprint tell 20% to more than 2,700 tons of CO2. More customers, more installations, more impact. The model scales in the right direction. SBTi validated. Both our near-term 2030 targets and our net 2040 commitment have been validated by the Science-based Target Initiative. We published our annual climate transition plan with progress updates, a road map, not a pledge. ESG at Holaluz is not a department. It is how we govern, manage risks and allocate capital. On the social side, 167 people across Spain with 36.5% women, gender equality is built into how we hire remote and govern. 4.1 out of 5 on trust pilot with over 8,000 reviews. 76 first contact resolution rate. Our products are designed for simplicity and trust, no surprises, no small print. On governance, ESG criteria are integrated into how we govern and allocate capital. Our integrated annual report is verified by EY, GRI-compliant and 11/2018. Our climate transition plan established annually with progress updates. Our purpose-driven culture is Holaluz's deepest competitive advantage. It defines how decisions are made and executed at every level. Now let me bring everything together with our key takeaways from 2025. First, financial foundation rebuild. EUR 22 million fully executed, debt restructuring plan in force since July, 100% coverage, no haircuts extended to 2028 and 100% ECOVAC covenants weighed through 2026 and balance sheet is solid. Second, structural efficiency delivered with a 30% year-on-year cost reduction through AI and automation embedded across the entire organization. Call center costs down 38%, bad debt recovery above 95%, not a one-off, with costs falling a further 8% in H2 versus H1. Third, European leading market position. Over 220,000 contracts with a 3.4-year lifetime value, almost 13,000 solar installations under management. 4.1 out of 5 on transpilot, 95% battery attachment in December, more than double the market average with a 25% improvement in gross margin per installations year-on-year. Fourth, proven technology moats meeting a generational inflection. Our platform built years ahead of regulation now aligns perfectly with the self-consumption decree, expanding our addressable market from 70% to 85%. The EcoGreen line falling live now at 2.2 versus 3.47 in mid-2024 and lower PV and battery costs create a powerful tailwind entering 2026. H2 '25 confirms the business thesis. Energy Management delivered EUR 5.1 million normalized EBITDA in H2 alone. Solar and storage reached breakeven in Q4 at 90 to 100 installations per month, the run rate for 2026. '25 was a year of 2 halves. The first was hard and we were transparent about why. The second delivered proof. We entered 2026 with a rebuilt balance sheet, structural cost leaderships record operational strength and a platform uniquely positioned to capture the distributed energy opportunity ahead. The convergence of our build-ahead capabilities with the market and regulatory tailwinds positions us better than ever to lead the energy transition. [Foreign Language]. We either will find a way or we will make one. The rooftop revolution has no ceiling. This concludes our formal presentation. For any follow-up, please reach out to our Investor Relations team at [email protected]. Thank you all for your time and continued support.