Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Investor Presentation (April 2015)
26 slides from Canadian Solar's investor presentation, Apr 16, 2015
Slide 1: Investor Presentation
Investor Presentation April 16, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by Canadian Solar Inc. (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
Slide 3: Company Description
Company Description A rapidly growing total solution provider with Global Footprint one of the largest global solar project development pipelines Founded in Ontario, 2001 Listed on NASDAQ (CSIQ) in 2006 Over 8,000 employees globally Presence in 18 countries / territories One of the world’s
Slide 4: Global Solar Energy Business
Global Solar Energy Business Global project development business 8.5 GWDC 520 MWDC total project connected to grid development pipeline from 2011-14 2.4 GWDC Canada UK Marquee customers total contracted / late- USA China stage project pipeline(1) Short term Japan Mid term Long term > 6.1 GWDC Monito
Slide 5: Leading PV Module Manufacturer
Leading PV Module Manufacturer 3.0 GWDC Canadian Solar manufacturing capacity total module (MWs) manufacturing capacity 3,500 3,000 Capacity as of Dec 31, 2014 3,000 including 2.5 GW 2,500 2,400 2,100 in China 2,000 1,600 1.580 1,300 1,500 1,500 1,000 800 3,000 MW Among top 3 500 200 228 216 260 lar
Slide 6: Investment Highlights
Investment Highlights 1. Beneficiary of strong secular growth in the solar sector 2. Rapidly growing and profitable energy business 3. Large and attractive solar project pipeline well suited to launch a YieldCo 4. Industry Leading cost structure 5. Global footprint with diversified and international
Slide 7: Annual PV Installation is Poised to Breakthrough 50GW
Annual PV Installation is Poised to Breakthrough 50GW Global PV Module Demand CAGR: 35.4% CAGR:11.6% 62.6 Growth Drivers 58.2 Grid Parity 55.1 Environment Preservation 20.3 ROW Energy Security 16.6 45.1 15.0 37.8 1.9 3.4 5.3 14.5 0.8 1.0 2.2 2.5 1.2 31.0 2.9 10.1 1.1 8.4 26.9 0.8 10.4 6.8 8.7
Slide 8: Project Development Business With Globally Diversified Pipeline
Project Development Business With Globally Diversified Pipeline Priority markets for utility-scale project development 8.5 GWDC total project development pipeline 2.4 GWDC total contracted / late- Canada UK stage project pipeline(1) USA China Japan > 6.1 GWDC total early-mid stage development pipeli
Slide 9: Proven Track Record Monetizing Utility-Scale Solar Projects
Proven Track Record Monetizing Utility-Scale Solar Projects 2010-2013 2014-2015 FiT/PPA granted or acquired 2010 2011 Jun 2012 2012 March 2015 9 FiT # of # of # of # of projects projects: 1 projects: 11 projects: 20 projects: 7 granted MWs: 8.5 MWs: 122 MWs: ~200 MWs: 1,021 in Onta
Slide 10: Leading Solar Energy Developer In Canada
Leading Solar Energy Developer In Canada Ontario project location and status 275 MWDC 1 New Liskeard project backlog in Ontario(1) Owned Project 23 Completed and sold project 336 MWDC Elliot Lake North Bay EPC project projects completed and delivered to end buyers(2) 3 Ottawa 22 28 4 21 Cornwall 343
Slide 11: Leading Solar Energy Developer In Canada (Cont'd)
Leading Solar Energy Developer In Canada (Cont´d) Late stage projects in Canada Project COD timeline (2) Can ad ian S olar d evelop ed M W DC S tatu s E xp ected CO D E n d Bu yer 1a L iskeard 1 14.0 SALE CLOSED IN 4Q14 – T ransCanada (MWDC) 1b L iskeard 3 an d 4 28.0 SALE CLOSED IN 3Q14 – T ransCan
Slide 12: United States Utility-Scale Project Pipeline
United States Utility-Scale Project Pipeline Total Solutions Business – U.S. (including Recurrent Assets) 1,047 MWDC L ate S tag e P ip elin e M W DC S tate S tatu s E xp ected CO D contracted / late-stage Gasna 13P LLC (Oro Loma) 26.0 CA NTP in 2015 2015 project pipeline1 Astoria 131.0 CA NTP in 20
Slide 13: Japan Utility-scale Solar Project Pipeline
Japan Utility-scale Solar Project Pipeline Total Solutions business – Japan Late Stage Utility-Scale Pipeline 606 MWDC (1) M W DC Averag e F IT ( Y en /kW h ) E xp ected CO D late-stage 1.2 40 Connected project pipeline 80 36 2015 244.6 37 2016 279.8 37 2017 500 MWDC (1) 605.6 early stage assessment
Slide 14: China Utility-scale Solar Project Pipeline
China Utility-scale Solar Project Pipeline Total Solutions business – China 2015–16 Province Late Stage Project Feed In Tariff Opportunity (MWDC) RMB 1.0/kWh 1 Jiangsu 120 MW Heilongjiang RMB 0.15/kWh (Prov.) 2 Shanxi 160 MW RMB 0.95 Jilin 5 30 MW Inner Liaoning 3 Yunnan 10 MW RMB 0.90 Xinjiang 2 Mo
Slide 15: A Leading Vertically Integrated Solar Energy Provider
A Leading Vertically Integrated Solar Energy Provider Manufacturing Capacity - MW • Module capacity currently at 3,000 MW per year. Plan to add 500 MW in the first half of 2015, with total capacity 3,000 reaching 3.5 MW 2,100 2,400 • Cell capacity expansion in Funning, Jiangsu Province, in 1,600 1,5
Slide 16: Industry-Leading Manufacturing Cost Structure
Industry-Leading Manufacturing Cost Structure Polysilicon/Wafer* Cell* Module Total Q2 2011 $0.76/W $0.23/W $0.33/W $1.32/W • Secure LT wafer supply • Reduce raw material • Reduce cell to module agreement at $0.20/W or purchase cost power loss less for up to 1GW • Reduce raw material • Reduce raw ma
Slide 17: Global Footprint With Diversified Customer Base
Global Footprint With Diversified Customer Base Operational footprint > 9.0 GW cumulative modules sold to date Customers in over 70 countries with offices in 18 countries Established Sales office projects business Manufacturing facility currently delivering Total Solutions contracted/ late stage pro
Slide 18: High-quality Product Portfolio
High-quality Product Portfolio Commercial & utility-scale Internat. environmental & quality management standards MaxPower ELPS CS6X-P CS6P-MM ISO 9001:2008 Quality Management System CS6P-M CS6P-P QC080000:2005 HSPM Hazardous Substance Process Management ISO 14001 Environment Management System
Slide 19: Bankable Product With Insurance Backed Warranty
Bankable Product With Insurance Backed Warranty Product workmanship and power output …backed by an investment grade performance… insurance policy 10-year product workmanship warranty Insurance policy matches Canadian Solar’s standard warranty terms 25-year power output performance guarantee
Slide 20: Experienced Board & Senior Management
Experienced Board & Senior Management Name / Title Work Experience Dr. Shawn Qu Director & VP at Photowatt International S.A. Chairman, President & CEO (Director) Research scientist at Ontario Power Generation Corp. Michael Potter Corporate Vice President and CFO of Lattice Semiconductor Corp.
Slide 21: Key Levers Of Our Strategy
Key Levers Of Our Strategy Leverage CSI’s existing expertise to expand and monetize utility scale project Differentiate opportunity (e.g. Canada, U.S., Japan, China) Business Model Expand residential system kits Maintain Low Manufacturing Continue to reduce manufacturing costs to remain compet
Slide 22: Income Statement Summary
Income Statement Summary Revenue – US$ million Gross Profit – US$ million 2,961 Margin 16.7% 19.6% 19.0% 22.9% 19.3% 1,654 581 956 914 276 624 209 185 118 2013 2014 Q2 14 Q3 14 Q4 14 2013 2014 Q2 14 Q3 14 Q4 14 Operating Income (Loss) – US$ million Net Income (Loss)– US$ million 7.9% 12.4% 10.8% 17.
Slide 23: Operating Expenses As % Of Revenue
Operating Expenses As % Of Revenue Selling expenses General & administrative expenses 5.3% 4.7% 4.2% 3.9% 3.8% 2.9% 3.1% 2.7% 2.6% 1.6% 2013 2014 Q2 14 Q3 14 Q4 14 2013 2014 Q2 14 Q3 14 Q4 14 Research & development expenses Total operating expenses 8.8% 8.1% 7.3% 7.2% 5.8% 0.7% 0.4% 0.4% 0.5% 0.3% 2
Slide 24: Selected Balance Sheet & Cash Flow Items
Selected Balance Sheet & Cash Flow Items Cash & cash equivalents – US$ million Cash flow from operations – US$ million(1) 265 259 1,025 1,025 229.5 204 788 817 679 475 475 409 447 Restricted Cash 451 550 550 408 -44 341 Cash 228 2013 2014 Q2 14 Q3 14 Q4 14 2013 2014 Q2 14 Q3 14 Q4 14 Total debt – US
Slide 25: Guidance
Guidance Q4 2014 Q1 2015 FY2014 FY2015 YoY ∆% Module 1,000 MW – 1,125 MW 3.1 GW 4.0 GW – 4.3 GW +33.1% shipments 1,030 MW $ 725 m to $2.8 bn to Revenue $ 956.2 m 2.96 bn Flat (2) $ 775 m $3.0 bn Gross 19.3% 16% – 18%(1) 19.6% NA NA margin Source: Earnings release issued on March 5, 2015 (1) Includes
Slide 26: Thank You!
THANK YOU! 26