Tigo Energy, Inc. · NASDAQ:TYGO
Tigo Energy — Investor Presentation (July 2023)
32 slides from Tigo Energy's investor presentation, Jul 11, 2023
Slide 1: Intelligent Solar and Energy Storage Solutions July 2023 Investor Presentation
Intelligent Solar and Energy Storage Solutions July 2023 Investor Presentation 1
Slide 2: Disclaimers: Forward Looking Statements
Disclaimers 2 Forward Looking Statements Certain statements included in this Presentation are not historical facts but are forward - looking statements, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 . Forward - looking s
Slide 3: Tigo's Mission
Tigo’s Mission Tigo’s mission is to deliver smart hardware and software solutions that enhance safety , increase energy yield , and lower operating costs of residential, commercial, and utility - scale solar systems Energy Intelligence (EI) 3 ATS EI Inverter TS4 Flex MLPE EI Battery Energy Intellige
Slide 4: Investment Highlights
Growing Share Solar Optimizer & Inverter space is serviced predominantly by two suppliers ; customers are seeking multiple suppliers 400+ Customers Diverse and expanding global customer base with substantial new wins Healthy Gross Margins (2) Optimized architecture with low component count reduces c
Slide 5: Market Overview
Tigo Market Overview
Slide 6: TAM is Estimated to Be $124 Billion by 2025
TAM is Estimated to Be $124 Billion by 2025 EI Solution $110B (2) Global cumulative TAM for battery storage + inverters MLPE $14B (1) Residential, C&I, and Utility MLPE TAM 1) Source: IHS PV Inverter Market Tracker – Second Quarter 2021. 2) Source: Wood Mackenzie Global Energy Storage Market Outlook
Slide 7: Solar and Storage: The Forefront of Renewables Expansion
Solar and Storage: The Forefront of Renewables Expansion 500 400 300 200 100 0 Significant Expected Growth in Solar and Storage North America & Carribbean Europe ROW New - build Forecast (GW) 300 200 100 0 400 500 Europe ROW North America Cumulative Capacity (GW) Sources: DOE, Greentech Media, Solar
Slide 8: Markets are experiencing tailwinds stronger than ever in the US and Europe
Markets are experiencing tailwinds stronger than ever in the US and Europe REPowerEU x 280 GW (~75%) increase in renewable capacity planned between 2022 - 27, almost entirely driven by solar PV or wind (3) x 2x annual solar PV capacity additions by 2027 vs. 2021 (3) x Extended tax credits for renewa
Slide 9: Tigo Business Overview
Tigo Tigo Business Overview
Slide 10: Tigo at a Glance
Tigo at a Glance Select Customers & Partners Tigo Makes Solar Energy Better Tigo’s Module - Level Power Electronics (“MLPE”) and Energy Intelligence (“EI”) Solution improve the safety, energy yield, and cost of solar across all three end markets (Residential, C&I, and Utility). Europe and the US are
Slide 11: Tigo Bundles Proprietary Hardware and Software Into an Easy-to-Use Platform
Solar Module Not made by Tigo EI Software Energy Management Inverter Battery Automatic Transfer Switch (“ATS”) MLPE / Optimizer Offering a one - stop shop solution Tigo Bundles Proprietary Hardware and Software Into an Easy - to - Use Platform Tigo MLPE and Energy Storage Solutions Grid 96% 2022A re
Slide 12: Approximately 76% of Rooftops in the US Could Benefit From MLPE Solutions
Approximately 76% of Rooftops in the US Could Benefit From MLPE Solutions 100% 90% 81% 24% 10% exposed to tree shading Another 10% exposed to other shading Another 70% are facing problematic orientations 12 Source: TYGO Whitepaper — Maximizing Energy Harvest; Wood Mackenzie. 1) “EBOS” = Electrical b
Slide 13: Our Solutions Are Strategically Placed to Enhance Solar Yields
Our Solutions Are Strategically Placed to Enhance Solar Yields • Solar Panel (not made by Tigo) Tigo Energy Intelligence “EI” Offering • MLPE / Optimizer • Battery • Inverter • ATS • EI Software • Energy Management • Grid Tigo offers a one - stop shop solution 13
Slide 14: Tigo's Family of MLPE Solutions
Tigo’s Family of MLPE Solutions Five MLPE Features Cater to All Solar End Markets MLPE Energy Intelligence Price & Functionality TS4 - A - M Functions • Monitoring Equipment Required • CCA + TAP (1) Description • Enables module - level monitoring TS4 - A - F Functions • Rapid Shutdown Equipment Requ
Slide 15: Tigo MLPE Serves All Three Solar Markets
Tigo MLPE Serves All Three Solar Markets Residential • 13 kW • Residential • Australia Commercial • 531 kW • Commercial rooftop • California, USA Utility • 16 MW • Floating PV • Israel MLPE Energy Intelligence Performance Optimization | Increase Energy Output Tigo optimizers increase energy output f
Slide 16: Tigo's Energy Intelligence Solution
Tigo’s Energy Intelligence Solution Building Loads System Monitoring • Integrated energy management system • Expanded premium monitoring and Operations & Maintenance (“O&M”) solutions Energy Intelligence Hardware Software and Analytics Tigo Inverter Tigo Battery Tigo MLPE • Tigo MLPE and Tigo cloud
Slide 17: Tigo's Software and Analytics Offering
Tigo’s Software and Analytics Offering Software and Analytics platform provides a holistic energy management capability, powered by module - level monitoring and machine learning Software: Origination/Design • Site Assessment • Design / Proposal • Permitting / Code Compliance • Construction Document
Slide 18: Years of R&D, Testing and Certification Have Created a Strong Competitive Position
Years of Research, Development, Testing and Certification Have Created a Strong Competitive Position Tigo’s 140 (1) patents confer a substantial competitive advantage Other 26% Optimization, Long Strings 23% Safety, Optimization, Long Strings 46% Safety 6% Hardware Advantages • Cost effective: Decad
Slide 19: Technology Advantages
Technology Advantages Tigo possesses key competitive advantages on price, performance, and flexibility 140 Patents (1) Patent - protected technology moat driven by strong R&D and culture of innovation Selective Optimization & Deployment Selective optimization uses less energy and increases reliabili
Slide 20: EBOS solutions are mission critical
EBOS solutions are mission critical… 18% 15% 13% 5% 5% 16% 14% 14% Efficient Solutions That Reduce Soft Costs Illustrative US residential rooftop solar cost track Illustrative USD/kWp Soft costs Hard costs Modules Electrical balance - of - systems Inverters Sales cost Taxes & margin $2.95 Direct lab
Slide 21: Tigo Compares Favorably Against Peers
Tigo Compares Favorably Against Peers ~33 - 34¢/watt (2) ~37 - 38¢+/watt (2) ~17 - 19¢/watt MLPE + Inverter Price (1) x MLPE Low Component Count x Flexibility: Works with multiple inverters Residential and C&I Residential x Residential, C&I, and Utility Selective Optimization & Deployment End Market
Slide 22: Illustrative Architectures: DC-Coupled vs AC-Coupled Systems
Illustrative Architectures Tigo’s DC - Coupled System Delivers Higher Energy Savings at a Lower Cost Compared to AC - Coupled Systems DC AC Tigo Hybrid Inverter “Smart Energy Orchestrator” DC Tigo Battery Includes high voltage MPPT controller and battery inverter / charge r i nside a c om m on un i
Slide 23: Financial Overview
Tigo Financial Overview
Slide 24: 2022 Financial Highlights
2022 Financial Highlights 30% 2022A Gross Margin 86%+ Y/Y Revenue Growth (1) $81M 2022A Revenue $2.5M 2022A Adj. EBITDA (3) 27% | 64% | 9% 2022 Revenue NA | EMEA | ROW (2) $124B Total Addressable Market 1) 2022A Revenue Growth. 2) “NA | EMEA | ROW” refers to North America; Europe, Middle East and Af
Slide 25: Revenue, Gross Profit and Adj. EBITDA
86% Revenue and YoY Growth $43.6 $81.3 2021A 2022A $12.6 2021A 2022A 30% $24.8 Gross Profit and Gross Margin 29% Adj. EBITDA and Adj. EBITDA Margin (1) ($3.1) 2022A 3% $2.5 NM Note: All figures presented in millions of US dollars. A reconciliation of non - GAAP metrics is provided in the Appendix. 1
Slide 26: Scaling with Profitable Growth
Scaling with Profitable Growth - 1.4 0.7 0.4 2.7 8.6 - 2 0 2 4 6 8 10 Adj. EBITDA Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adj. EBITDA 9.8 17.3 22.3 28.7 44.7 0.1 0.3 0.5 2.3 5.4 0 10 20 30 40 50 60 Total Revenue Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 MLPE & Other EI Solutions 2.7 5.5 6.6 10.0 18.4
Slide 27: Diverse Array of Global Customers
Diverse Array of Global Customers Distributors Key Accounts Tigo aims to expand business with existing and new customers / partners Inverters & Panels Partners New Customers / Partners 2022A Revenue by Geography ROW 9% Americas 27% EMEA 64% 2022A Revenue by Customers (1) 11% 5% 5% 4% 53% 4% 3% 3% 3%
Slide 28: Tigo's Financial Strengths
Tigo’s Financial Strengths Generating significant revenue growth today Compelling growth propelled by new products and services and new customer wins Attractive gross margin expected to expand over time through higher mix of value - added MLPEs, EI systems, and software / analytics Capital - light b
Slide 29: Appendix
Tigo Appendix
Slide 30: Why Customers Choose Tigo
Why Customers Choose Tigo Tigo Offers Lower Cost Systems with Higher Energy Output, Resulting in More Attractive ROI • Rapid Shutdown • Module - level monitoring software • Hybrid Inverter • ATS • Battery Storage • Software & Analytics • Increased energy yield through selective optimization • High r
Slide 31: EBITDA Reconciliation (Yearly)
EBITDA Reconciliation (Yearly) 2022A 2021A Calendar Year ($7.0) ($4.9) Net Income 6.0 1.0 + Total other expenses, net 0.1 0.2 + Provision for income taxes 0.6 0.4 + Depreciation & Amortization ($0.3) ($3.3) EBITDA 0.8 0.2 Stock - Based Compensation 2.0 - M&A Transaction Expenses $2.5 $(3.1) Adj. EBI
Slide 32: EBITDA Reconciliation (Quarterly)
EBITDA Reconciliation (Quarterly) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Calendar Year $6.9 $0.9 ($2.4) $0.2 ($5.7) Net Income 0.9 1.3 0.4 0.4 4.1 + Total other expenses, net - 0.1 - - - + Provision for income taxes 0.3 0.2 0.2 0.1 0.1 + Depreciation & Amortization $8.1 $2.3 ($1.9) $0.7 ($1.5) EBIT