Ftc Solar, Inc. · NASDAQ:FTCI
Ftc Solar — Investor Presentation (September 2024)
38 slides from Ftc Solar's investor presentation, September 2024
Slide 1: FTC Solar Overview
September 2024 FTC Solar Overview
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: Introductions
Introductions 3 Yann Cathy Patrick Brandt Behnen Cook President & Chief Executive Officer Chief Financial Officer SVP, Capital Markets and Business Development • Appointed CEO August 2024 • Appointed CFO February 2024 • FTC Solar CFO 2019-2022, CCO 2022-2024 • 18+ years of experience in solar manufa
Slide 4: Introduction to FTC Solar
Introduction to FTC Solar 4 Global provider of high-quality, mission critical solar trackers, software and engineering solutions for large, blue-chip EPC contractors and developers 2P Solution (High margin niche) Uniquely positioned with comprehensive portfolio of differentiated and patented 1P an
Slide 5: Agenda
Agenda 5 • Recent Updates / Key Takeaways • Company Overview • Market Overview • Technology & Positioning • Growth Drivers • Q&A __________________________________________________________________________________ Appendix
Slide 6: Company Overview
Company Overview
Slide 7: Leading Provider of Proprietary Solar Tracking Technology
Leading Provider of Proprietary Solar Tracking Technology 7 About Us Key Metrics Installed Base2: >5.5GW Customers2: 140+ FTC Solar is a leading provider of patented 1P and 2P tracker systems, software and engineering services to the solar energy industry Employees: 200+ Patents (Granted or Pending)
Slide 8: Solar Trackers Are Critical to Utility-Scale PV Projects
Solar Trackers Are Critical to Utility-Scale PV Projects 8 Trackers significantly increase energy production by dynamically optimizing solar panel orientation to the sun throughout the day Traditional Fixed-Tilt FTC Solar Tracker × Fixed angle; sub-optimal exposure Variable angle; optimal exposure
Slide 9: Our Competitive Differentiation
Our Competitive Differentiation 9 Easier Installation Better Performance Provides lowest installed cost / Enables faster installation times Provides higher yields / Maximizes land use / Delivers more power Install Faster installation compared to Proprietary Additional potential energy yield from Tim
Slide 10: Demonstrated Track Record With Blue-Chip Customer Base
Demonstrated Track Record With Blue-Chip Customer Base 10 ● FTC supports global distributed generation and utility-scale projects, successfully delivering 5 GW+ of trackers to customers across several continents ● The Company has substantial expertise in executing large-scale utility solar developme
Slide 11: Global Supply Chain
Global Supply Chain 11 Turkey Korea Posts Posts* Beams China Posts Beams Rails Steel structures U.S.A. Hardware Posts Dampers Wire Clamps Slew Drives Sensors Sensors Hardware Controllers* Steel structures* Malaysia Beams* India Beams Posts Steel structures* Beams U.S. “Alpha Steel” JV S. Africa Stee
Slide 12: FTC Solar Positioning Timeline
FTC Solar Positioning Timeline 12 Differentiated Tracker Solutions Led to Industry Challenges Hit in 2022 While FTC Now Positioned with Full Product Suite FTC Uses Downturn to Get Stronger Rapid Customer Adoption Revenue Still Weighted to U.S. Market and Low Cost Structure ● Co-founded by T.J. Rodge
Slide 13: Market Overview
Market Overview
Slide 14: Solar Now Lowest Cost Energy, Leads Global Capacity Additions
Solar Now Lowest Cost Energy, Leads Global Capacity Additions 14 The solar energy industry has grown as its associated costs have decreased ~60% of all new electric capacity added to the grid came from solar energy in 2022, representing the largest such share in history Historical LCOE of Renewables
Slide 15: Favorable Market Backdrop
Favorable Market Backdrop 15 Renewable energy leads power capacity additions with solar accounting for 47% of capacity in 2030P U.S. Power Capacity by Source(1) U.S. Renewable Power Capacity(1) (Gigawatts) (Gigawatts) 1,600 Historical Projected Historical Projected 800 1,516 729 1,223 1,200 1,160 60
Slide 16: Overall Market Size / Market Forecasts Continue to Grow
Overall Market Size / Market Forecasts Continue to Grow 16 Solar Market Poised for Sustained Growth Solar energy is expected to continue to increase its penetration in the U.S. and globally Cumulative Installed Solar Capacity (GW) 1 U.S. Rest of World (“ROW”) 529 471 416 362 2,603 309 259 2,023 2,00
Slide 17: The Solar Market is Transitioning to Trackers
The Solar Market is Transitioning to Trackers 17 Trackers are growing faster than fixed-tilt and are still in early stages of ROW penetration Trackers Are Growing Faster Than Fixed-Tilt… …And Just Beginning ROW Penetration Global ground-mounted PV installations over 1MW (MW) – ex-China Tracker perce
Slide 18: Technology & Positioning
Technology & Positioning
Slide 19: FTC Solar 2P Solutions Offer Unique Advantages
FTC Solar 2P Solutions Offer Unique Advantages 19 A All the Advantages of 2P Improved bifacial energy yield Increased design flexibility Higher panel density Better site accessibility + B C D E Reduced Part Direct Current (“DC”) Industry-Leading High Slope Count Collections Advantage Install
Slide 20: All the Advantages of 2P – Design Flexibility & Panel Density
A All the Advantages of 2P – Design Flexibility & Panel Density 20 (Illustrative Examples) Example 1 Example 2 Constrained Site Non-Standard Shape Competitor’s 1P Solution FTC’s 2P Solution Competitor’s 1P Solution FTC’s 2P Solution < 2.8 MW > 3 MW 2.8 MW 2.8 MW 1,132 piles; less accessible 490 pile
Slide 21: All the Advantages of 2P – Site Accessibility
A All the Advantages of 2P – Site Accessibility 21 FTC’s 2P Solution Competitor’s 1P Solution Limited Spacing Physical Barrier 2X row spacing for equivalent panel density and ground coverage ratio Ease of vehicle access and mobility on site No physical barriers Technical All the Advantages Red
Slide 22: Reduced Part Count
B Reduced Part Count 22 (Illustrative examples) Posts Per MW Connections Per Row 4,118 4,090 258 211 2,623 164 FTC Solar Competitor 1 Competitor 2 (2P) FTC Solar Competitor 1 Competitor 2 (2P) Technical All the Advantages Reduced Part DC Collections Industry-Leading High Slope Performance Advantages
Slide 23: Direct Current Collections Advantage
23 C Direct Current Collections Advantage FTC Trackers Competitor Trackers Balanced and uniform DC string architecture Unbalanced DC string architecture 1P String 1 String 2 String 3 String 1 rr 3 String String 2 String 4 2P String 1 String 3 String 2 Less wire (up to 25% less) Less labor instal
Slide 24: Industry-Leading Install Speed and Low Labor Costs
D Industry-Leading Install Speed and Low Labor Costs 24 FTC’s reduced installation time, together with savings on materials due to our design methodologies, can result in 1.5-2.0 cents per watt of cost savings for customers vs. leading 1P and 2P competitors1 Labor is Significant (and Growing) FTC So
Slide 25: High Slope Tolerance
E High Slope Tolerance 25 FTC Solar tracker’s slope tolerance is among best in the industry Independent row design allows for simple installation on undulating and irregular site boundaries Minimizes or eliminates land grading expense Slope Tolerance for Undulating Terrains vs. FTC Solar Competi
Slide 26: Pioneer 1P Tracker
Pioneer 1P Tracker 26 • Reduced Pile Count Can reduce piles by 18% or more, significantly reducing capital expenditure and potential rework from refusals • Higher Energy Density Shorter row length enables up to 5% greater energy output for a given parcel of land • Fast Assembly Proprietary fast-modu
Slide 27: Performance Software
Performance Software 27 SunPath 1 Terrain -Based 2 Diffuse Light Backtracking Optimization Up To 4% Yield Improvement1 Up To 2% Yield Improvement Terrain flexibility & yield improvement accounting for elevation A “smart” approach to distinguish between direct-beam and differences between neighboring
Slide 28: Strong IP Portfolio With Broad Patent Coverage
Strong IP Portfolio With Broad Patent Coverage 28 Protect functional aspects of Voyager mounting and cleaning systems • Patents issued include: o Speed slot module attachment o Different drive train architectures Core US o Synthetic resin bearings that can support North/South slopes Patents o Diffus
Slide 29: Voyager (2P) and Pioneer (1P) Trackers
Voyager (2P) and Pioneer (1P) Trackers 29 Voyager Single-Axis Trackers (2P) Pioneer Single-Axis Trackers (1P) ● Accommodates 2 panels installed in portrait orientation ● Accommodates 1 panel installed in landscape orientation ● Operating range of motion ± 52° (± 60° optional) ● Operating range of mo
Slide 30: Growth Drivers & Financials
THAN CANN LAN ry FTI : Growth Drivers & Financials
Slide 31: Multiple Growth Drivers
Multiple Growth Drivers 31 Market and Sector Broaden and Deepen Expand Value Increase Operating Tailwinds Customer Relationships per Unit Leverage from Scale Positioned for Long-term + + Grow DG business + Scalable corporate = Sustainable Income & FCF Gov’t policies & incentives New U.S. customers (
Slide 32: Margin Improvement
Margin Improvement 32 • FTC is achieving sustainably high direct margins • Improvement driven by significantly reduced steel content (>20%) and manufacturing costs • Significant gross margin leverage and EBITDA profitability now a function of top-line revenue Revenue & Non-GAAP Gross Margin1 3Q’23 v
Slide 33: Recent Progress
Recent Progress 33 Bookings & Product Enhancements • Improved customer engagement & enhanced product portfolio, first order for high-wind Pioneer • Contracted portion of backlog ~$505m 2P Market Recovery, Most Comprehensive Product Portfolio To-Date • More normalized 2P market • Majority of awards a
Slide 34: Appendix
Appendix
Slide 35: Reconciliation of Non-GAAP Gross Margin and Operating Expenses
Reconciliation of Non-GAAP Gross Margin and Operating Expenses 35 The following table reconciles U.S. GAAP gross margin to Non-GAAP gross margin for the three months ended June 30, 2024, and 2023, respectively: Thre e months e nde d June 30, (in thousands, e xce pt pe rce ntage s) 2024 2023 U.S. GAA
Slide 36: Reconciliation of Non-GAAP Loss from Operations
Reconciliation of Non-GAAP Loss from Operations 36 The following table reconciles U.S. GAAP loss from operations to Adjusted EBITDA for the three months ended June 30, 2024, and 2023, respectively: Thre e months e nde d June 30, (in thousands) 2024 2023 U.S. GAAP loss from operations $ (11,924) $ (1
Slide 37: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss 37 The following table reconciles U.S. GAAP Net loss to Adjusted EBITDA and Adjusted Net Loss for the three months ended June 30, 2024, and 2023, respectively: Thre e months e nde d June 30, 2024 2023 (in thousands, e xce pt share s
Slide 38: Notes to Reconciliations of Non-GAAP Financial Measures
Notes to Reconciliations of Non-GAAP Financial Measures 38 Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss pl