Sunpower Inc. · NASDAQ:SPWR
Sunpower — Complete Solaria — SPAC Merger (October 2022)
32 slides from Sunpower's SPAC merger presentation, Oct 4, 2022
Slide 1: Complete Solar + Solaria
CompleteSolar + SOLARIA
Slide 2: Disclaimer
Disclaimer 2 ©2022 OCTOBER 2022 This presentation and the information contained herein are strictly confidential . This presentation may not be retained by you, and neither this presentation nor the information contained herein may be reproduced, redistributed or provided to any other person or publ
Slide 3: Disclaimer
Disclaimer 3 ©2022 OCTOBER 2022 NEITHER THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) NOR ANY STATE OR TERRITORIAL SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OR DETERMINED IF THIS PRESENTATION IS TRUTHFUL OR COMPLETE . This presentation contains information concerning the C
Slide 4: Section I
4 ©2022 4 PRESENTATION Section I
Slide 5: Complete Solaria, Inc. Announcement of SPAC Merger and Private Merger
Complete Solaria, Inc. Investor Presentation Announcement of SPAC Merger and Private Merger Complete Solaria, Inc. is going public by way of a SPAC Merger with Freedom Acquisition I Corp. Supply the solar industry with the best solar products and services Provide the highest quality experience to ho
Slide 6: GGiNaSsOUAR.
— GGiNaSsOUAR. 462 LHe MOI 0 GOIMGeorvid ue.” iy Fi ae SF laa
Slide 7: Market forces and policy continue to propel the solar industry
Market forces and policy continue to propel the solar industry • USA Inflation Reduction Act (“IRA”) • Russia - Ukraine War • Climate Change • Energy Security The market for solar is huge and growing rapidly Additional Growth due to IRA TBD Aug 16, 2022 – Largest clean energy initiative in U.S. hist
Slide 8: The US residential solar market is still largely untapped
1 – US Form EIA 861M (June 2022); US Census Bureau, American Housing Survey 2021; Note: Analysis assumes an average system size of 7 KW (https:// www.eia.gov/electricity/data/eia861m/) 2 – U.S. Census Bureau, American Housing Survey 2021; Note: “Single - family homes” refers to single - family detac
Slide 9: The industry can better meet the needs of homeowners
The industry can better meet the needs of homeowners Better products, consumer education, and processes will drive greater consumer adoption Homeowner PRODUCT Better aesthetics, design, and power output SALES PROCESS Multiple channels, trusted advisors – not just door to door and call centers FULFIL
Slide 10: Complete Solaria combines beautiful products with new sales and deployment
Complete Solaria combines beautiful products with new sales and deployment The combined company meets the needs of the market in order to drive greater adoption Differentiated Products Sales Enablement Financing Solutions System Fulfillment Customer Benefits • Aesthetically pleasing, powerful solar
Slide 11: Industry-Leading Solar Technology
11 Industry - Leading Solar Technology ▪ Premium product and strong brand ▪ Network of over 1,000 Pro Partners ▪ Advanced technology with 250+ patents ▪ Asset - lite model, low CapEx required Products ▪ Premium and Performance solar panels ▪ Leader in power output per panel ▪ Patent - protected aest
Slide 12: Beautiful, powerful solar panels differentiate Solaria
OCTOBER 2022 ©2022 12 Beautiful, powerful solar panels differentiate Solaria Bringing better products to market Industry Norm Complete Solaria Solution ▪ Lower Wattage, aesthetically undifferentiated ▪ PowerXT Modules : Solar panels that achieve ultra - high output . Pure Black TM technology with no
Slide 13: Industry-Leading Solar Services
©2022 Confidential Industry - Leading Solar Services ▪ Digital Platform for Sales and Installation ▪ Rapid Speed to Install and Performance ▪ A Leader in Customer Experience Partner Model for Scalability & Customer Experience ▪ VARs and channel partners sell our products ▪ Integrated financial produ
Slide 14: Digital platform: HelioQuote, HelioTrack, Share the Sun
HelioQuote Automated quoting and design 14 ©2022 OCTOBER 2022 HelioTrack Project management, communication, coordination of the value chain Share the Sun Monitoring, Billing, Performance, Referrals Easy for Channels to sell solar Enhanced Customer Experience Stay Connected to the Customer Leading di
Slide 15: Complete Solaria: technology, fulfillment platform, industry coordination
Finance Partners Installer Partners Sales Partners Key Differentiators High performance panels with superior aesthetics Software, sales tools, financing: improves the sales process and enables new, better sales channels Rapid fulfillment platform creates a superior customer experience Corporate affi
Slide 16: Complete Solaria's business model scaleably manages the entire value chain
Complete Solaria’s business model scaleably manages the entire value chain Mix of in - house and coordinated partner activities utilizes industry capabilities and creates a seamless offering Residential Solar Value Chain Complete Solaria Model Traditional Manufacturers Upstream Value Chain Downstrea
Slide 17: Complete Solaria merger unlocks an extensive dealer network
Complete Solaria merger unlocks an extensive dealer network Combine Solaria products with Complete Solar services and expand Complete Solar nationally 2022 Complete Solar Footprint 2022 Solaria Pro Partners Pro Partners Over 1,000 solar installers who buy Solaria panels ▪ Combined offering of Solari
Slide 18: Complete Solaria world-class management team and renowned investors
Devin Whatley Board Member • Managing Partner, Ecosystem Integrity Fund • Board member for Synova, Former Director OneEnergy Renewables, and KeVita TJ Rodgers Board Member • SunPower Chairman at IPO • Led Enphase Energy turnaround • Led Enovix SPAC M&A Will Anderson CEO • Co - Founder, Chairman of B
Slide 19: Financial Report Section II
19 ©2022 19 Financial Report Section II
Slide 20: Financial Projections
OCTOBER 2022 ©2022 20 Margin and Profitability ● Increased module margin in Q4 2022 ● Break - even in Q3 2023 Financial Projections Strong Expected Growth Driven by Merger Synergies and Greater Capitalization Revenue Growth ● Geographic expansion ● Bundled products ● Revamped module manufacturing su
Slide 21: SPAC Merger Details Section III
21 ©2022 21 SPAC Merger Details Section III
Slide 22: SPAC Merger capitalizes Complete Solaria's national and international expansion
SPAC Merger capitalizes Complete Solaria’s national and international expansion 1 – Assuming no redemptions Adam Gishen Board Member • CEO, Freedom Acq. • Sr. Executive Roles at Credit Suisse (2015 to 2020) • 20+ Years in Financial Services (including Lehman Brothers and Monura) Tidjane Thiam Board
Slide 23: Complete Solaria is ready for a transformative equity investment
Policy Tailwinds Scalable Platform Features 1 – Assuming certain prevailing wage and apprenticeship requirements are met 2 – Wood Mackenzie Power & Renewables, “Pedal to the metal: The Inflation Reduction Act will accelerate decarbonization in the United States,” August 2022 (https:// www.woodmac.co
Slide 24: Freedom Acquisition I Corp. consists of experienced operators and investors
Freedom Acquisition I Corp. consists of experienced operators and investors focused on high - growth, scalable technology investments Tidjane Thiam Executive Chairman ▪ CEO of Credit Suisse from 2015 to 2020: record - breaking profits in 2019 ▪ CEO of Prudential from 2009 to 2015: market cap. increa
Slide 25: Residential solar stocks have significantly outperformed the market
1 – S&P Capital IQ, as of September 28, 2022; Note: Residential Solar Equities Index is a composite index weighted by Market Cap of RUN, NOVA, SPWR, MAXN, ENPH, GNRC, SUNL and SEDG Residential solar stocks have significantly outperformed the market Index % Change Between July 26, 2022, and September
Slide 26: Transaction Overview
Transaction Overview Please refer to ”Disclaimer on Slides 2 and 3 including the paragraphs discussing forward - looking statements, the use of projections, and non - GAAP financial measures” 1 – Includes full conversion of any existing convertible notes and full exercise of any existing warrants 2
Slide 27: Complete Solaria's valuation is attractive compared to benchmarks
Complete Solaria’s valuation is attractive compared to benchmarks 1 – Company filings and S&P Capital IQ as of September 28, 2022; Note: Complete Solaria data is based on Complete Solaria’s internal projections Transaction priced at a discount to Complete Solaria’s peer group average Complete Solari
Slide 28: Complete Solaria's operational benchmarks
17.7% 31.1% 36.8% 7.9% 33.6% 9.0% 46.3% 27.4% Complete Solaria’s operational benchmarks are intriguing Complete Solaria is growing faster than its peers and has attractive margins and a capital efficient model 23E Revenue Growth 1 21A Capital Intensity 3 23.0% 82.1% 48.0% 19.7% 40.3% 38.4% 10.0% 30.
Slide 29: Closing Summary
Closing Summary Business Model Innovation Complete Solaria is a category expanding residential solar company that is positioned to finally address the segment’s massive Total Available Market COMPELLING FUNDAMENTALS Complete Solaria intends to access massive revenue growth opportunities at attractiv
Slide 30: Risk Factors
Risk Factors 30 ©2022 OCTOBER 2022 1. Our business currently depends in part on the availability of rebates, tax credits and other financial incentives. The expiration, elimination or reduction of these rebates, credits or incentives or our ability to monetize them could adversely impact our busines
Slide 31: Risk Factors
Risk Factors 31 ©2022 OCTOBER 2022 18. Our business could be adversely affected by seasonal trends, poor weather, labor shortages, and construction cycles. 19. The ongoing COVID - 19 pandemic could adversely affect our business, financial condition and results of operations. 20. Natural disasters, t
Slide 32: Risk Factors
Risk Factors 32 ©2022 OCTOBER 2022 37. We may be subject to breaches of our information technology systems, which could lead to disclosure of our internal information, damage our reputation or relationships with dealers, suppliers, and customers, and disrupt access to our online services. Such breac