First Solar, Inc. · NASDAQ:FSLR
First Solar — Q4 2021 Earnings Presentation
15 slides from First Solar's earnings presentation, Mar 1, 2022
Slide 1: First Solar Q4'21 Earnings and 2022 Guidance Call
First Solar Q4’21 Earnings and 2022 Guidance Call March 1, 2022
Slide 2: Important Information
| Important Information Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of
Slide 3: 2021 Review
| 2021 Review ● Commercial ■ 17.5 GW of net-bookings in 2021, more than double prior annual record ■ 4.8 GW of net-bookings 2022 year-to-date; 11.8 GW since previous earnings call ● Manufacturing ■ Produced 7.9 GW in 2021 ■ Reduced cost per watt produced by 6% between the end of 2020 and end of 2021
Slide 4: Expected Module Shipments (GWDC)
| Expected Module Shipments(1) (GWDC): 26.2 GW 4.8 GW 11.8 GW 17.5 GW 7.9 GW(2) Dec 31, 2020 2021 Shipments 2021 Bookings(3) QTD Bookings(4) Mar 1, 2022(5) The above table presents the actual module shipments for 2021 through Dec 31, 2021, new module volume net-bookings through Mar 1, 2022, and the
Slide 5: Income Statement Highlights
| Income Statement Highlights Q4 2021A 2021A (In millions, except per share amounts)(1) Q4 2021A QoQ Change YoY Change 2021A YoY Change Net sales $907 $324 $298 $2,923 $212 Gross profit % 27.2% 5.8% 0.9% 25.0% (0.1%) Selling, general and administrative 38 (5) (24) 170 (53) Research and development 3
Slide 6: Balance Sheet Highlights
| Balance Sheet Highlights Q4 2021A (In millions)(1) Q4 2021A Q3 2021A Q4 2020A QoQ Change YoY Change Cash and marketable securities(2) $1,831 $1,940 $1,794 (109) 38 Accounts receivable(3) 455 273 292 181 162 Inventories - current and noncurrent 904 884 769 20 135 Property, plant and equipment, net
Slide 7: Series 6 Technology Roadmap
| Series 6 Technology Roadmap Mid-Term Series 6 2020 CuRe 2021 Series 6 2021 Series 6 2022 Mid-Term Target Actual Target Actual Target Target (Bifacial) (Monofacial) Exit Rate Top Production Bin 445 460-465 465 470-475 490 500 (Watts) Warranted Degradation 0.5% 0.2% 0.3% 0.3% 0.2-0.3% 0.2-0.3% (% pe
Slide 8: Expansion Update
| Expansion Update New Manufacturing Plant in Ohio New Manufacturing Plant in India © 2022 Copyright First Solar, Inc. 8
Slide 9: Expansion Update (Cont'd)
| Expansion Update (Cont’d) Year-End Nameplate Manufacturing Capacity (GW) Full-Year Production (GW) 15.8 14 - 15 3.0 13.0 1.5 11 - 12 3.0 9.5 1.8 8.4 8.2 – 8.8 2.8 2.9 7.9 2.8 2.6 6.7 6.9 6.9 5.8 © 2022 Copyright First Solar, Inc. 2021A 2022E 2023E 2024E 2021A 2022E 2023E 2024E New factories in Ohi
Slide 10: Potential Booking Opportunities
| Potential Booking Opportunities Total bookings opportunities Mid-to-Late stage opportunities 2.6 2.1 2.3 1.9 3.4 20.1 29.5 19.4 © 2022 Copyright First Solar, Inc. 1.3 GWDC of opportunities confirmed, but not booked 53.6 GWDC Opportunity 27.7 GWDC Opportunity 10
Slide 11: Series 6 Cost Per Watt Drivers
| Series 6 Cost Per Watt Drivers 500 Watts (monofacial) 9% to 11% increase 490 Watts Target: (bifacial) 98.5% 10% reduction 40-50% reduction © 2022 Copyright First Solar, Inc. Exit Rate Q4’21 Watts Per Throughput Manufacturing Bill of Mid-Term Cost Net-Sales Mid-Term CpW + Cost Per Watt Module Yield
Slide 12: 2022 Guidance Assumptions
| 2022 Guidance Assumptions Glass expenses largely stabilized through predominantly fixed-price agreements Anticipate framing (aluminum) costs will be elevated relative to historical norms Cost Roadmap Sales freight expected to be approximately 5 cents per watt in 2022 Expect cost per watt p
Slide 13: 2022 Guidance as of March 1, 2022
| 2022 Guidance as of March 1, 2022 2022 Guidance Net Sales $2.4B to $2.6B Gross Margin ($)(1) $155M to $215M Operating Expenses(2) $365M to $380M Operating Income(3,4) $55M to $150M Earnings Per Diluted Share $0.00 to $0.60 Net Cash Balance(5) $1.1B to $1.35B © 2022 Copyright First Solar, Inc. Capi
Slide 14: Summary & Highlights
| Summary & Highlights 2021 earnings per diluted share of $4.38 Achieved 6% cost per watt reduction between the end of 2020 and 2021 Financial 2021 year end net cash(1) of $1.6 billion 2022 earnings per diluted share guidance of $0.00 to $0.60 Continue to expand manufacturing capacity and
Slide 15: © 2022 Copyright First Solar, Inc.
© 2022 Copyright First Solar, Inc. First Solar, the First Solar logo, and Leading the World’s Sustainable Energy Future are trademarks of First Solar, Inc., registered in the U.S. and other countries. Series 6, Series 6 Plus, CuRe, Series 6 CuRe, and the Series 6 CuRe logo are trademarks of First So