Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q4 2021 Earnings Presentation
17 slides from Canadian Solar's earnings presentation, Mar 17, 2022
Slide 1: Canadian Solar 4Q21 Earnings Call
Canadian Solar 4Q21 Earnings Call March 17, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by the Company solely to facilitate the understanding of the Company’s business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express
Slide 3: 2021 Review
2021 Review Solar Module Shipments, MW Revenue Gross EBITDA Net income 20-22 $5.3 margin $474 to CSIQ billion 17.2% million $95 million 14.5 11.5 Solar Battery 8.6 module storage 6.8 1. CSI Solar: shipments 6.6 shipments 4.7 5.2 14.5 GW 896 MWh 1.9 3.1 Power 24 GWp 27 GWh 2013 2014 2015 2016 2017 20
Slide 4: CSI Solar China IPO in registration with the CSRC
CSI Solar China IPO in registration with the CSRC Q1-Q2 2022 • Registration process with the Chinese Securities Regulatory Commission • Investor roadshow • Official listing Q3-Q4 2021 ✓ • Feedback process and approval from the Shanghai Stock Exchange Q2 2021 ✓ • Submit application to regulatory auth
Slide 5: Canadian Solar's approach towards ESG
Canadian Solar’s approach towards ESG Canadian Solar does not tolerate forced labor or any form of modern slavery, and is committed to ensuring that modern slavery does not take place anywhere in its business including its supply chain 1 Policy Documentation • Code of Business Conduct and Ethics • A
Slide 6: Energy security, economics and climate change driving demand for clean energy
Energy security, economics and climate change driving demand for clean energy Natural Gas Spot Price TTF Strong climate change and decarbonization EEX €/MWh commitments by major economies • U.S.: Build Back Better Climate Change provisions $555 billion, with potential solar ITC extension/direct pay,
Slide 7: Q4 2021 margin continued to improve
Q4 2021 margin continued to improve Gross margin Q4 2021 30% Shipments: 3.8 GW 20% CSI Solar revenue: $1.3 billion 10% CSI Solar gross margin: 21.3% 0% (ex. AD/CVD true-up 19.4%) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 CSIQ CSI Solar 7
Slide 8: Polysilicon pricing and shipping costs remain elevated
Polysilicon pricing and shipping costs remain elevated Polysilicon price (RMB/kg) Shanghai Containerized Freight Index (TEU) 300 5400 269 256 243 241 243 250 233 4400 210 208 213 204 +70% 5x 200 3400 171 150 135 2400 113 98 95 88 91 100 82 81 85 1400 78 59 50 400 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28
Slide 9: Upstream and downstream market dynamics positive for Canadian Solar
Upstream and downstream market dynamics positive for Canadian Solar Average PPA prices in North America (top) & Europe (bottom) Annualized Polysilicon Capacity (period-end) Quarterly Aggregate Price Indices – P25 '000 tons Jun-21 Dec-21 Jun-22 Dec-22 2023+ 40 China 520 550 750 1,200 1,500 36 Non-Chi
Slide 10: Making significant progress on our battery storage business
Making significant progress on our battery storage business Revenue $220 million $500 million (approx.) 1.8-1.9 GWh 2x 0.9 GWh 0 2020 2021 2022E Leading battery storage solution: • high energy density • strong safety • cost-competitive • easy installation 10
Slide 11: Large and growing global solar and battery storage project pipeline
Large and growing global solar and battery storage project pipeline Project sales: 2.1 GW 2021: Global Energy revenue: $1.1 billion Global Energy gross margin: 17.3% Solar Project Pipeline (January 31, 2022) – MWp Battery Storage Project Pipeline (January 31, 2022) – MWh Region Construction Backlog
Slide 12: Power prices have increased meaningfully across most markets
Power prices have increased meaningfully across most markets Market Region Dec 2020 Price Dec 2021 Price Delta % Delta ITALY 54 281 +227 +420% EMEA SPAIN 42 239 +197 +470% U.K. 55 245 +190 +345% ERCOT 20 28 +8 +38% MISO 24 37 +13 +52% North America CAISO-NP 40 61 +21 +53% CAISO-SP 39 59 +20 +52% JAP
Slide 13: Multiple levers of growth, focusing on recurring income
Multiple levers of growth, focusing on recurring income 2021 2022E 2023E 2024E 2025E Actual 1 Development: Annual project 2.1 2.1 – 2.6 2.8 – 3.3 3.5 – 4.0 4.0 – 4.5 Project sales sales. GWp 2 Services: Operational O&M O&M(1) + projects, 2.1 4.3 6.5 9.2 11.0 Asset Mgmt GWp 3 Investment Cumulative 29
Slide 14: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 4Q20 1Q21 2Q21 3Q21 4Q21 qoq yoy Net revenues 1,041 1,089 1,430 1,229 1,529 +24% +47% -CSI Solar 785 695 1,184 1,149 1,343 +17% +71% -Global Energy 373 471 281 140 232 +66% (38%) -Elimination (117) (77) (35) (60) (46) Gross mar
Slide 15: Quarterly balance sheet highlights
Quarterly balance sheet highlights USD millions 4Q20 1Q21 2Q21 3Q21 4Q21 Cash and equivalents 1,179 981 814 868 870 Restricted cash 461 542 497 490 564 Short-term borrowings 1,202 1,217 867 1,083 1,271 Long-term borrowings on project assets – current 199 264 491 297 321 Capital leases – current 15 1
Slide 16: Guidance as of March 17, 2022
Guidance as of March 17, 2022 Q4 2021 Q1 2022 FY2021 FY2022 2021-22E Actual Guidance Actual Guidance yoy ∆% Module 3.8 GW 3.7 – 3.9 GW 14.5 GW 20 – 22 GW c. +45% Shipments Battery Storage n/a n/a 896 MWh 1.8 – 1.9 GWh c. +100% Shipments Project Sales n/a n/a 2.1 GW 2.1 – 2.6 GW c. +10% Revenue $1.5
Slide 17: Thank you
Cf -_ = Sc CanadianSolar Thank you CSIQ Nasdaq Listed