Slide 1: Q4 FY2023 Earnings Presentation
Q4 FY2023 Earnings Presentation May 10, 2023 1
Slide 2: Disclaimer
Disclaimer Cautionary Note About Forward-Looking Statements Industry and Market Data This presentation is made by Nextracker, Inc. (the "Company") and contains forward-looking statements within the meaning of Market data and industry information used throughout this presentation are based on managem
Slide 3: Agenda
Agenda Speakers CEO Comments • Introduction to Nextracker Dan Shugar, P.E. • Industry Perspectives CEO & Founder • FY2023 Highlights President Comments Howard Wenger • Our Product and Technology President • Commercial Update CFO Comments Dave Bennett • Financial Review CFO • Fiscal 24 Guidance ©2023
Slide 4: Our mission and vision
● Our mission is to be the world's leading energy solutions company by enabling the most intelligent, reliable and productive solar power. ● ● Our vision is a world powered by renewable energy – where clean, affordable power is available to all.
Slide 5: Representative Nextracker Products
Representative Nextracker Products 4 1. Mechanical & drive components 2. Electronic control systems 3. Specialty modules 4. Weather stations 5. Wireless mesh networks 3 6. Software for monitoring, control, and 5 asset management 1 6 2 Typical tracker > 300 ft in length ©2023 NEXTRACKER | Proprietary
Slide 6: Example Project with Nextracker System
Example Project with Nextracker System • 325 MW • 3-5 square miles • On average Nextracker delivered a system of this size every week in FY’23 • 5-9k trackers with imbedded sensors generating valuable data • Increasingly using NX’s patented adaptive tracking software TrueCapture: https://youtu.be/GG
Slide 7: Nextracker Overview
Nextracker Overview Global Leader in Solar Trackers Differentiated Offering Strong Global Corporation • #1 Global Market share • Unrivaled technology: • Historically profitable with 7 years consecutively1 mechanical, electronic, software strong balance sheet expertise • >74 GW Delivered2 • Global su
Slide 8: Fiscal Year 2023 Highlights
Fiscal Year 2023 Highlights Business Highlights Annual Quarterly FY’23 Revenue FY Q4 Revenue • Delivered more than 17 gigawatts $1.9 B $518 M • Record revenue and earnings 30% Y/Y Growth 18% Y/Y Growth • Adjusted FCF over $100M FY’23 Adj EBITDA FY Q4 Adj EBITDA • Backlog at new record of $2.6B1 $209
Slide 9: Unsubsidized Solar Economics Show Utility-Scale Solar Among Lowest Cost
UNSUBSIDIZED SOLAR ECONOMICS SHOW THAT UTILITY-SCALE SOLAR IS AMONG THE LOWEST COST SOURCES OF ENERGY GLOBALLY Nextracker’s segments are economically attractive Rooftop Residential Solar $117 $282 Community and C&I Solar $49 $185 Solar PV – Utility Scale $24 $96 Nextracker segments Renewable Solar P
Slide 10: Economics and Demand Driving the Addressable Market
Economics and Demand Driving the Addressable Market Solar Economics Solar leads global energy capacity additions4 $/MWh5 Cost reduction progress, 100% & competitiveness 6x 359 vs coal and nuclear 80% 60 2009 2023 Solar Policy Significantly Impacting Demand 60% 50% Decarbonization and energy independ
Slide 11: Nextracker's Footprint vs Total Available Market (TAM)
Nextracker’s Footprint vs Total Available Market (TAM) $71B (682 GW) Global Tracker TAM: 2020-20301,2,3 Europe Middle East 62 GW North America 80 GW 341GW Asia incl India #1 in Market 84 GW Latin America Africa 57 GW 43 GW Australia #1 in Market #1 in Market 15 GW #1 in Market 1.) Calendar Year End
Slide 12: Nextracker's Extensive, Diversified Global Supply Chain
Nextracker’s Extensive, Diversified Global Supply Chain Over 50 manufacturing Partners in 16 countries across 5 continents Europe Middle East 5 Partners North America 3 Partners 15+ Partners India 4 Partners Asia & Australia 16 Partners Latin America Africa 5+ Partners 3 Partners ©2023 NEXTRACKER |
Slide 13: Nextracker's U.S. Supply Chain
BCI Steel, Pittsburgh, PA Nextracker’s U.S. Supply Chain Dedication June 2022 Atkore Phoenix, AZ Dedication May 2022 • Initiated major expansion >2 years ago • >25 GWs of contracted capacity for primary components • 10 manufacturing facilities currently making various tracker components across Ameri
Slide 14: Product Offering & Customer Wins
Product Offering & Customer Wins Howard Wenger, President ©2022 NEXTRACKER | Proprietary 14
Slide 15: Nextracker Leverages Unrivaled Technology
Nextracker Leverages Unrivaled Technology Mechanical Structures Electronics and Controls Intelligent Software 132 Total Patents 52 Total Patents 170 Total Patents Note: Includes issued/ granted and pending US and PTC applications as of 9/30/2022. 174 Issued patents; 180 patents pending ©2023 NEXTRAC
Slide 16: NX Horizon Independent Rows: A Better Tracker Architecture
Nextracker NX Horizon™ Independent Rows A Better Tracker Architecture Each row powered and controlled independently Key Innovations Benefits TrueCaptureTM Software Higher energy production for every tracker row Bifacial Panel Optimized Higher energy production for bifacial panels Horizon-XTRTM Terra
Slide 17: Nextracker Wins Under a Wide Range of Conditions
Nextracker Wins Under a Wide Range of Conditions Northeast: Midwest: Irregular boundaries, West/California: Higher latitudes, rolling hills Rolling terrain snowy conditions and flat sites Representative Nextracker projects Southeast: 1-50 MW Rolling hills, 50-100 MW hurricanes & floods 100+ MW South
Slide 18: Blue-Chip Customers
Blue-Chip Customers Over 200 Active Customers1 select shown EPCs Developers Owners United States International Why we win: Lower LCOE, superior platform, global scale, and trusted partnerships ©2023 NEXTRACKER | Proprietary 18 1.) For the fiscal year ended March 31, 2023
Slide 19: Selected Global Wins in Q4
Selected Global Wins in Q4 39 MW Empress Solar Park, Canada 1GW 150 MW Strata VCA, Garnacha, Spain VA/TX/AZ USA 1.7 GW 1.6 GW TrueCapture™ Khavda Solar Fleet Agreement, Power Plant, India MX/BR Latin America 520 MW Stubbo Solar Power Plant, Australia ©2023 NEXTRACKER | Proprietary 19
Slide 20: Strong Backlog Supports Continued Growth
Strong Backlog Supports Continued Growth Backlog 2,559 ~$2.6B VCAs 90% 1 674 Firm Orders 1,885 1,342 1,077 719 Backlog includes executed contracts or purchase orders with deposit, 263 build of materials, and ship dates. Executed volume commitment agreements (VCAs) include customer deposits for multi
Slide 21: Financial Update
Financial Update ©2023 NEXTRACKER | Proprietary 21
Slide 22: Trended Historical Results
Trended Historical Results Revenue ($mm) Key Highlights 1,902 RoW • Solid progress on margin recovery from FY 22 1,458 US 1,196 660 1,171 553 661 234 295 • US approximately 65% of revenue; RoW 35% in FY 23 1,242 369 937 901 905 292 • Executing with discipline and maintaining FY19 FY20 FY21 FY22 FY23
Slide 23: Q4 2023 Results
Q4 2023 Results Revenue ($mm) Adj. EBITDA ($mm) Key Highlights RoW +18% +227% • International revenue growth driven by US Europe and Latin America 518 73 440 • Adj EBITDA of $73M to 14.0% up 895 bps YoY 184 5.1% on pricing and cost improvements 141 14.0% 22 334 299 5.0% Q4FY22 Q4FY23 Q4FY22 Q4FY23 S
Slide 24: FY'23 Results
FY’23 Results Revenue ($mm) Adj. EBITDA ($mm) Key Highlights +30% +126% • US and RoW revenue grew at 37% and 19% RoW 209 1,902 US • Adjusted EBITDA margin up 464 bps YoY 1,458 660 5.1% • Adjusted Free Cash Flow over $100M 553 11.0% 92 1,242 905 6.3% FY22 FY23 FY22 FY23 See Appendix for definition of
Slide 25: Liquidity and Cash Position
Liquidity and Cash Position Key Highlights Cash and Liquidity Management • Ample liquidity: $630M1 • Tier one financial institutions supporting syndicate 500 Debt Profile Revolver Maturity Calendar • Limited debt: term loan $150M • Maturity 5 years, no significant repayments until FY28 Key Metrics •
Slide 26: FY2024 Guidance
FY2024 Guidance Revenue Assumptions: $2.1-$2.3B • Interest and Other Expense $15M - $20M 16% Y/Y Growth at Midpoint • Adjusted Income Tax Rate 15% - 20% • WASO of 146.5M Adj. EBITDA1,3 $265-$305M • Excludes possible benefits related to IRA tracker manufacturing tax credits 36% Y/Y Growth at Midpoint
Slide 27: Q&A
Document contains sensitive confidential information and is restricted to only authorized individuals. Q&A ©2023 NEXTRACKER | Proprietary 27
Slide 28: Appendix
APPENDIX ©2022 NEXTRACKER | Proprietary 28
Slide 29: GAAP Net Income to Non-GAAP EBITDA
GAAP NET INCOME TO NON-GAAP EBITDA $M FY'19 FY'20 FY'21 FY'22 FY'23 Q4'22 Q4'23 GAAP Net Income (2) 118 124 51 121 6 28 Net Interest 0 (0) 0 0 2 0 2 Provision for Income Taxes 2 31 34 14 48 1 13 Depreciation Expense 3 3 2 3 3 1 1 Intangible Amortization 15 15 15 8 1 1 0 Stock-Based Compensation Expe
Slide 30: Thank You
Thank You ©2022 NEXTRACKER | Proprietary 30