Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q3 2017 Earnings Presentation
20 slides from Canadian Solar's earnings presentation, November 2017
Slide 1: Investor Presentation Third Quarter 2017 Update
Investor Presentation Third Quarter 2017 Update November 2017 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 Renewable Energy Installation Is Increasing
Global Renewable Energy Installation Is Increasing More Wind and Solar Globally for Less Dollars in 2016 US Power Generation by Source “Global investment in renewables (excluding large hydro) fell 17% to $287 billion in 2016, though installations rose 9% to 160GW, underscoring the “more-for-less” be
Slide 4: 2017 Global Annual PV Installation Expected to Reach 100 GW
2017 Global Annual PV Installation Expected to Reach 100 GW CAGR: 37.1% CAGR: 3.6% 115 112 105.5 100 102 Growth Drivers 16.4 ROW Grid Parity 28.8 37.8 81.3 Environment Preservation 9.5 Energy Security 16.7 2.1 9.4 13.0 57.8 5.8 2.0 12.4 1.0 8.0 10.9 2.0 15.6 14.6 45.1 7.0 16.0 37.8 3.0 15.4 1.
Slide 5: 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 ~1% of global electricity generation today to >10% by 2030 Global Cumulative Solar PV Installations (GW) GW Installed >10% % % of Electricity Generated 1,835.0 ~1% 242.6 319.7 70.5 100.5 138.8 183.8 1.2 1.6 2.1 2.6 3.7 5.1
Slide 6: Company Overview
Company Overview Global Footprint and Brand Founded in Ontario, 2001 Listed on NASDAQ (CSIQ) in 2006 Over 11,000 employees globally Presence in 18 countries / territories > 24 GW of solar modules shipped cumulatively > 3.2 GWp solar power plants built and connected (incl. Recurrent) No. 1 Solar Comp
Slide 7: Energy Business: Globally Diversified Project Pipeline
Energy Business: Globally Diversified Project Pipeline Priority Markets for Utility-scale Project Development 12 GWp Total project development pipeline 10.4 GWp U.K. Early to mid-stage development pipeline (2) U.S China Japan ~1.6 GWp Mexico Total contracted / late-stage Philippines project pipeline
Slide 8: Project Summary
Project Summary Late-stage Projects Expected COD Schedule Plants In Total Country/Region Operation at Q4'17 2018 and After Late-stage Projects 09/30/2017 (Gross MWp) US 900 - 238 238 China 188.7 16 400 416 UK 150 - 8 8 Japan 139.8 19.1 325.4 344.5 Spain 5 - - - Brazil - 130.8 195.6 326.4 Mexico - -
Slide 9: Market Leader in the U.S.
Market Leader in the U.S. U.S. Project Development Business Footprint Including Recurrent Energy across North America 5.2 GWp Early to mid-stage pipeline 238 MWp Late-stage pipeline1 900 MWp Late-stage Pipeline1 Owned and operated2 RoseRock Gaskell West 1 Mustang 2 104 28 210 MWp MWp MWp Under Devel
Slide 10: Japan Utility-scale Solar Project Pipeline
Japan Utility-scale Solar Project Pipeline Total Solutions Business – Japan Utility-scale COD Schedule1 - MWp 344.5 MWp 141.2 Late-stage pipeline 87.2 79.1 68.1 MWp(1) Owned and operated 19.1 17.9 Q4 2017 2018 2019 2020 2021+ Note: (1) Expected COD are tentative estimates subject to change, due to d
Slide 11: China Utility-scale Solar Project Pipeline
China Utility-scale Solar Project Pipeline Energy Business – China Late-stage Project Feed-in Tariff 3 Heilongjiang Province Opportunity (RMB/kWh) 7 6 (MWP) Jilin 15 MW 7 3 Liaoning 1 Jiangsu 10 0.85 220 MW Inner Xinjiang 4 16 MW 2 Shandong 15 0.85 Mongolia Beijing Ningxia 40 MW Hebei 2 15 MW Shanxi
Slide 12: Brazil Utility-scale Solar Project Pipeline
Brazil Utility-scale Solar Project Pipeline Late-stage Pipeline Project Gross MWp Status Expected COD 3 Guimarania (1) 80.6 Development 2018 Pirapora I (1) 38.3* Commissioned 2017 1 Pirapora II (1) 115 Construction 2018 2 Pirapora III (2) 92.5 Construction 2017 Total 326.4 Canadian Solar has complet
Slide 13: Capacity Expansion to Optimize Technology and Cost
Capacity Expansion to Optimize Technology and Cost Manufacturing Capacity - MW Technology upgrade – New products, new process, new design 10,310 Diamond wire-saw wafer Black silicon 9,060 8,110 Mono PERC Black silicon + PERC 6,970 6,950 6,170 6,200 Global Manufacturing Footprint 5,450 5,
Slide 14: Competitive Pipeline of Homegrown Technologies
Competitive Pipeline of Homegrown Technologies Poly Gen3 Mono PERC 0.4% cell efficiency and 4 watts module power gain over Mono PERC enhances back side passivation and increases cell baseline; cell efficiency to reach over 19% in mass efficiency to 21% production Low Light Induced Degradation (LID),
Slide 15: Cell Efficiency Roadmap
Cell Efficiency Roadmap Cell Efficiency Highlights Gen3 nano-texturing technology paves the way for using diamond-wire saw wafer in multi-crystalline cell production Gen4 will improve the multi-crystalline cell efficiency to above 21.4% by 2020 Mono PERC cell efficiency can reach above 22.5% in mass
Slide 16: 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, President & CEO (Director) Director & VP at Photowatt International S.A. Researc
Slide 17: Income Statement Summary
Income Statement Summary Revenue – US$ million Gross Profit – US$ million Margin 3,468 2,853 16.6% 16.2%(1) 24.2% 17.5% 17.8% 13.9%(1 13.5% 577 461.3 (1) 912 168 160 657 668 677 692 117 93 (1) 91 2015 2016 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 2015 2016 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Operating Income – US$ m
Slide 18: Operating Expenses as % of Net Revenue
Operating Expenses as % of Net Revenue Selling Expenses General & Administrative Expenses 6.4% 9.4% 5.7% 8.0% 5.1% 5.2% 5.0% 7.6% 4.7% 7.1% 6.9% (2) 4.3% 5.8% 4.8% 2015 2016 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 2015 2016 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Research & Development Expenses Total Operating Expenses
Slide 19: Guidance as of November 9, 2017
Guidance as of November 9, 2017 Q3 2017 Q4 2017 FY2016 FY2017 YoY ∆% Module 1,650 MW to 1,870 MW 5,232 MW 6.7 GW to 6.8 GW +28% Shipments 1,750 MW Revenue $912.2 mn $1.77 bn to $1.81 bn $2.85 bn $4.05 bn to$4.09 bn +42% Gross Margin 17.5%(1) 10.5% to 12.5%(1) NA NA NA 1-Includes module business and
Slide 20: Thank You!
THANK YOU! November 2017 20