Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Investor Presentation (August 2019)
18 slides from Canadian Solar's investor presentation, August 2019
Slide 1: Investor Presentation: Second Quarter 2019 Update
Investor Presentation Second Quarter 2019 Update August 2019 CSIQ NASDAQ Listed
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: Global PV Installations Continue to Grow
Global PV Installations Continue to Grow CAGR: 31.8% CAGR: 4.3% 133 122 121 103.0 Growth Drivers 98.0 ✓ Grid Parity 52.5 14.9 ROW ✓ Environmental Preservation 28.4 81.3 ✓ Energy Security 10.3 16.7 1.7 10.7 10.7 11.0 57.8 5.8 2.9 1.0 7.5 2.5 10.6 45.1 15.6 14.6 13.0 5.6 37.8 3.0 15.4 1.4 8.7 8.0 31.0
Slide 4: We Are at the Very Early Stages of Solar Adoption
We Are at the Very Early Stages of Solar Adoption Solar energy will grow from ~2% of global electricity generation today to >10% by 2030 Global Cumulative Solar PV Installations (GW) GW Installed >10% % % of Electricity Generated 1,835.0 ~2% 517.2 242.6 319.7 414.2 70.5 100.5 138.8 183.8 1.2 1.6 2.1
Slide 5: Company Overview
Company Overview Founded in Ontario, 2001 Global Footprint and Brand Listed on the NASDAQ (CSIQ) in 2006 Over 11,000 employees globally Presence in 20 countries / territories > 36 GW of solar modules shipped cumulatively > 4.7 GWp (1) solar power plants built and connected (incl. Recurrent) A global
Slide 6: Energy Business: Globally Diversified Project Pipeline
Energy Business: Globally Diversified Project Pipeline Global Late-stage Project Development Footprint 13 GWp Total project development pipeline 9.4 GWp Canada Early to mid-stage development pipeline (2) U.S. Italy Japan China Israel South Korea 3.6 GWp Mexico India Taiwan, ROC Total late-stage proj
Slide 7: U.S. Utility-Scale Solar Project Pipeline
U.S. Utility-Scale Solar Project Pipeline Market Leader in the U.S. U.S. Late-stage Project Development Footprint 3.5 GWp Early to mid-stage pipeline 1,565 MWp Late-stage pipeline 205.9 MWp Owned and operated1 Projects in Operation1 Late-stage Project Pipeline Texas Gaskell West 2 Pflugerville Texas
Slide 8: Japan Utility-Scale Solar Project Pipeline
Japan Utility-Scale Solar Project Pipeline Total Solutions Business – Japan Utility-scale COD Schedule1 - MWp 311.8 MWp 187.7 Late-stage pipeline 89.6 MWp 62.3 Owned and operated 61.8 2019 2020 2021+ Note: (1) Expected COD are tentative estimates subject to change, due to delays in securing all the
Slide 9: Market Leader in Brazil and Mexico
Market Leader in Brazil and Mexico Gross Expected Late-stage projects Location Status MWp COD 3 Francisco Sa (1) 114.3 Minas Gerais Development 2021 2 3 Jaiba (1) 101.6 Minas Gerais Development 2021 1 Lavras (3) 152.4 Ceara Development 2021 Salgueiro (2) 114.3 Pernambuco Development 2020 Jaiba Expan
Slide 10: Expected Capacity with New Technology and Cost Reduction
Expected Capacity with New Technology and Cost Reduction ▪ Technology upgrade – New products, new process, new Manufacturing Capacity - MW design ✓ Diamond wire-saw wafer 12,220 ✓ Black silicon ✓ Mono PERC 9,400 9,300 ✓ Black silicon + Poly PERC 8,880 8,110 7,800 ✓ Casted Mono 6,300 ✓ Black silicon
Slide 11: Competitive Pipeline of Homegrown Technologies
Competitive Pipeline of Homegrown Technologies P4 Mono PERC 1% cell efficiency and 12 watts module power gain on 60- Mono PERC enhances back side passivation and increased cell cell module design over baseline; cell efficiency reached efficiency to over 22% over 20.5% in mass production Low Light In
Slide 12: Cell Efficiency Roadmap
Cell Efficiency Roadmap Cell Efficiency Highlights P4 (black silicon + poly 24% PERC) will improve the 23.6% multi-crystalline cell 23.2% 23.1% efficiency to 22% in 2021 22.8% 23% 22.4% 22.6% P5 (casted mono) has close to mono efficiency while at 22.0% multi cost; Optimization is 21.8% 22% being con
Slide 13: Experienced Board & Senior Management
Experienced Board & Senior Management Name / Title Work Experience ◼ Founded Canadian Solar in 2001, and has since then, firmly established the company as a global Dr. Shawn Qu leader of the solar industry Chairman and CEO ◼ Director & VP at Photowatt International S.A. ◼ Research scientist at Ontar
Slide 14: Income Statement
Income Statement Revenue – US$ million Gross Profit – US$ million Margin 18.8% 20.7% 24.5% 26.1% 30.1% 22.2% 17.6% 3,745 4,000 3,390 3,500 3,000 1,000 775 2,500 800 638 2,000 600 1,036 1,500 768 901 400 651 1,000 271 485 159 200 182 107 200 500 0 0 2017 2018 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 2017 2018 Q
Slide 15: Q2 2019 Revenue and Profitability by Segment
Q2 2019 Revenue and Profitability by Segment Three Months Ended June 30, 2019 – US$ million (1) Margin 673.1 22.2% 8.7% 374.9 5.7% -1.4% 153.7 58.4 21.4 -5.2 Net revenue Gross profit Income from Net revenue Gross profit Income from operations operations Module and System Solutions Energy Group Reven
Slide 16: Operating Expenses as % of Net Revenue
Operating Expenses as % of Net Revenue Selling Expenses General & Administrative Expenses 7.8% 10.6% 8.7% 9.0% 6.2% 7.7% 5.0% 4.9% 6.8% 6.6% 4.6% 4.4% 6.3% 4.4% 2017 2018 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 2017 2018 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Research & Development Expenses Total Operating Expenses 20
Slide 17: Guidance as of August 15, 2019
Guidance as of August 15, 2019 Q2 2019 Q3 2019E FY2018 FY2019E YoY ∆% Module 2,143 MW 2.2 GW to 2.3 GW 6,615 MW 8.4 GW to 8.5 GW +27.7% Shipments $780 mn to Revenue(1) $1,036.3 mn $3.74 bn $3.5 bn to $3.8 bn +1.6% $810 mn(2) Gross Margin(1) 17.6% 24% to 26%(2) NA NA NA (1) Includes MSS and Energy bu
Slide 18: Thank You
THANK YOU Mi ee August 2019