Ftc Solar, Inc. · NASDAQ:FTCI
Ftc Solar — Corporate Update (January 2022)
23 slides from Ftc Solar's corporate update, Jan 18, 2022
Slide 1: Business Insights Update
January 18, 2022 Business Insights Update
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 2 This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this presentation, including statements regarding the Company’s
Slide 3: Agenda
Agenda 3 • Long-term (LT) Market Outlook • Profitable Growth Drivers • Financial Update • Q&A
Slide 4: Highlights
Highlights 4 • Long-term market outlook strong despite near-term module uncertainty • Uniquely positioned for strong growth in U.S.; gaining traction internationally • 2021 the perfect storm on cost; making significant improvements • Solution differentiation well-recognized with pricing strength, ne
Slide 5: Market
Market Long-term market outlook strong despite near-term module uncertainty
Slide 6: Strong Momentum in the U.S. and International Markets
6 Strong Momentum in the U.S. and International Markets NA has driven growth; continued momentum in U.S. and disproportionate upside in international markets ’15-’21 CAGR North America SAM (GW) 15.8 20.9 $16T expected investment in U.S. 8.7 8.8 75% renewables in next decade1 5.3 5.1 0.7 2015 2016 20
Slide 7: Regulatory Environment
Regulatory Environment 7 Overview of Environment in the U.S. • Petition to investigate modules from Malaysia, Thailand, Vietnam possible retroactive duties AD / CVD • Petition thrown out November 11, 2021 • Near-term Resolved uncertainty given module supply • Exemption for bifacial modules on impo
Slide 8: Customer Penetration
Customer Penetration Uniquely positioned in North America; Gaining traction internationally
Slide 9: U.S.: Strong Backlog, Revenue Growth; Progress w/Key Customers
9 U.S.: Strong Backlog, Revenue Growth; Progress w/Key Customers Annual Awarded / Executed Contracts at Start of Year vs. Ending Revenue – more than 3x growth year-on-year ($mm) $350+ Jan. 1 Contracted & Awarded EOY Reported Revenue $239-249 $187 $109 $53 $54 $2 2019 2020 20211 20222 Top-15 EPC pene
Slide 10: International: Strong Pipeline Growth, Initial Wins on Schedule
10 International: Strong Pipeline Growth, Initial Wins on Schedule International Pipeline has more than tripled in 1 year (GW) 23,820 MW 26,520 MW 21,370 MW 15,755 MW 8,421MW Oct-20 Mar-21 May-21 Jul-21 Oct-21 Project win Sales presence or pipeline • Long sales cycle like in • In-country infrastruct
Slide 11: Cost Management
Cost Management 2021 the perfect storm on cost; Making significant improvements
Slide 12: Cost – 2021 Brought a “Perfect Storm”
12 Cost – 2021 Brought a “Perfect Storm” Combination of factors drove cost Increased steel content Fly-up in commodity prices Supply chain bottlenecks due to rise in LFM share worldwide and inflation ~70% share of Large Format 2x increase in steel prices2 6x+ increase in logistics Modules in 2022 vs
Slide 13: Cost Program Highlights – R&D and Design Excellence
13 Cost Program Highlights – R&D and Design Excellence Hot Rolled Steel index ($ per MT) 2,105 2,149 2,123 2,001 2,020 1,851 1,811 1,712 1,533 1,422 1,316 1,211 1,083 722 802 623 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 • Broaden & deepen supply base (~10 new vendors
Slide 14: Cost Program Highlights – R&D and Design Excellence
14 Cost Program Highlights – R&D and Design Excellence Steel content by quote date for an illustrative LFM project (Indexing Q2 2021 to 100)1 100 85 80 79 78 Q2 2021 Q3 2021 Q4 2021 Q1 2022E Q2 2022E 10+ initiatives completed in 2021 20+ initiatives being driven to completion in 2022 Actual conten
Slide 15: Cost Program - Material and Logistics
15 Cost Program - Material and Logistics Ocean freight index ($K per container) 21.8 20.7 17.6 16.7 14.6 10.4 7.5 8.5 6.6 6.3 6.4 4.5 4.7 4.8 4.9 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 • Introduced new modes (e.g. charter) Complete • Broadened vendor base • Driving
Slide 16: Differentiated Solution
Differentiated Solution Solution differentiation well-recognized with pricing leadership
Slide 17: Enhancing Value Per Unit
17 Enhancing Value Per Unit Already proven: lower installed cost and better performance Up to 40% lower time to install $ Up to 25% less wiring Continues to Gain Traction ~50% fewer ~50% fewer posts & piles connect points Industry- No specialized leading slope Labor or Tools tolerance1 DG Platform ~
Slide 18: Gaining Traction with SunPath
18 Gaining Traction with SunPath • Protected by U.S. and International Patents Up to 6% Increased Energy Yield MW 15.0 • Array-level & bifacial optimization testing in progress 12.5 10.0 7.5 5.0 2.5 • Customizable by site vs. one-size-fits-all 0.0 6:30 3:00 10:00 12:00 14:00 16:00 18:00 19:30 15MW V
Slide 19: Launched End-to-End Turnkey Offering for <20MW DG Segment
19 Launched End-to-End Turnkey Offering for <20MW DG Segment DG U.S. TAM1,2 for sub-20MW PV Ground Mount FTC value proposition GW • Turnkey Voyager installation solution >7% p.a. • Rapid quote turnaround 4.6 4.0 3.4 • Industry-leading customer responsiveness and lead time 2021 2023E 2025E • FTC can
Slide 20: Financial Outlook
Financial Outlook Now on the cusp of profitability
Slide 21: Preliminary 2022 Financial Targets
Preliminary 2022 Financial Targets 21 Guidance Indicative Quarterly Progression1,2 FY 2022 1Q’22 2Q’22 3Q’22 4Q’22 Revenue ($M) $415-$460 $65-$70 $75-$85 $120-$135 $155-$170 Non-GAAP Gross Margin (%) 11%-14% (3%)-3% 11%-13% 11%-15% 16%-18% Non-GAAP OpEx ($M) $49-$54 $12-13 $12-13 $12-$13 $12.5-$14.5
Slide 22: Key Takeaways
Key Takeaways 22 • Long-term market outlook strong despite near-term module uncertainty • Uniquely positioned for strong growth in U.S.; gaining traction internationally • 2021 the perfect storm on cost; making significant improvements • Solution differentiation well-recognized with pricing strength
Slide 23: Q&A
Q&A