Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q4 2020 Earnings Presentation
16 slides from Canadian Solar's earnings presentation, Mar 18, 2021
Slide 1: Canadian Solar 4Q20 Earnings Call
Canadian Solar 4Q20 Earnings Call March 18, 2021
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: When solar grid parity meets a changed public and political climate
When solar grid parity meets a changed public and political climate Solar is already the cheapest source of energy Several major economies have committed to ambitious decarbonization goals Mean unsubsidized levelized cost of energy (LCOE), $/MWh 359 • China: Reach peak carbon by 2030 and carbon neut
Slide 4: Strategy unchanged: invest in long-term, sustainable, profitable growth
Strategy unchanged: invest in long-term, sustainable, profitable growth CSI Solar: Expand capacity and increase the level of vertical 1 integration to gain market share, improve pricing power, lower costs and improve profitability Global Energy: Grow market presence and optimize project 2 monetizati
Slide 5: Energy storage entering exponential market growth phase
Energy storage entering exponential market growth phase Increasing penetration of renewables lowers Energy Storage Annual Capacity Additions, GWh 164 power costs and decarbonizes the grid, but Rest of creates price volatility and affects grid stability world 128 Japan Advantages of battery storage:
Slide 6: CSIQ an early mover in battery storage
CSIQ an early mover in battery storage To deliver approx. 1 GWh of battery storage projects in the U.S. in 2021, capturing c.10% market share Diversified solar business model + global presence = competitive advantage in identifying early storage market opportunities Battery Storage Solutions Integra
Slide 7: China IPO progress on track
China IPO progress on track Q2 2021 – 2022 • Feedback process with regulatory authorities and stock exchange • Roadshow / PDIE (pre-deal investor education) • Official listing April 2021 • Submit application to regulatory authorities and stock exchange Q1 2021 • Financial, legal paperwork • Prospect
Slide 8: Continued margin pressure from cost inflation partially offset by ASP increases
Continued margin pressure from cost inflation partially offset by ASP increases Polysilicon price (RMB/kg) FX to RMB (indexed) 108 102 98 100 95 91 88 85 98 82 81 78 73 73 73 +33% -17% 96 62 59 94 59 +66% 92 Sep Oct Nov Dec Jan Feb Mar Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar USD
Slide 9: Solar approaching the end of the cost curve?
Solar approaching the end of the cost curve? Solar module prices have declined Benefit from further module price Demand is VERY strong dramatically over the past decades reduction becoming marginal Solar PV module cost, US$/W Capex split for utility-scale Global solar PV annual (2015 prices) PV syst
Slide 10: CSI Solar strategy to deliver premium, integrated system solutions
CSI Solar strategy to deliver premium, integrated system solutions (including battery storage) to premium market segments (DG) The distributed generation (DG) Integrated System Solutions = Dedicated product market segment accounted for management for individual channels and markets >50% of our annua
Slide 11: Global Energy: grow dev pipeline + sales, optimize monetization, execute on storage
Global Energy: grow dev pipeline + sales, optimize monetization, execute on storage Project Pipeline (January 31, 2021), MWp Global Energy Targets (3) 2020 Region Construction Backlog Pipeline Total Targets 2021 2022 2023 2024 2025 Actual Annual project North 328 728 5,030 6,086 sales, GWp 1.4 1.8-2
Slide 12: New corporate structure and reporting
New corporate structure and reporting Historical reporting structure New reporting structure Module and System Solutions (MSS) Business CSI Solar (entity to be listed in China) (1) • Solar modules • Solar modules • Solar system kits • Solar system kits • Battery energy storage solutions – new • Othe
Slide 13: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 4Q19 3Q20 4Q20 qoq yoy FY19 FY20 yoy Net revenues 920 914 1,041 14% 13% 3,201 3,476 9% Gross margin 25.0% 19.5% 13.6% -596 bp -1140 bp 22.4% 19.8% -260 bp Gross margin ex. AD/CVD 25.7% 19.5% 13.8% -578 bp -1188 bp 24.1% 19.3% -
Slide 14: Quarterly balance sheet highlights
Quarterly balance sheet highlights USD millions 4Q19 1Q20 2Q20 3Q20 4Q20 Cash and equivalents 669 619 579 1,103 1,179 Restricted cash 537 504 416 459 461 Short-term borrowings 933 910 1,016 1,065 1,202 Long-term borrowings on project assets – current 286 183 180 238 199 Capital leases – current 25 2
Slide 15: Guidance as of March 18, 2021
Guidance as of March 18, 2021 Q4 2020 Q1 2021E FY2020 FY2021E yoy ∆% Module 3.0 GW 3.0 – 3.2 GW 11.3 GW 18 – 20 GW c. +65% Shipments Revenue $1.04 bn $1.0 bn – $1.1 bn $3.5 bn $5.6 bn – $6.0 bn c. +70% Gross Margin 13.6% 16% – 18% 19.8% n/a n/a 15
Slide 16: Thank you
Cf -_ = Sc CanadianSolar Thank you CSIQ Nasdaq Listed