Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Investor Presentation (June 2017)
23 slides from Canadian Solar's investor presentation, June 2017
Slide 1: Investor Presentation: First Quarter 2017 Update
Investor Presentation First Quarter 2017 Update June 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: 2016 Global Annual PV Installation Exceeded 81GW
2016 Global Annual PV Installation Exceeded 81GW CAGR: 37.1% CAGR: 4.4% 101 96 90.7 Growth Drivers 81.3 82.7 82.8 Grid Parity Environment Preservation 16.7 33.4 Energy Security ROW 21.3 29.5 57.8 5.8 1.0 9.9 15.6 14.6 1.8 12.4 45.1 10.9 12.2 2.1 37.8 3.0 1.9 15.4 1.4 8.7 31.0 8.4 7.5 12.9 16.5
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 9,700 employees globally Presence in 18 countries / territories > 21 GW of solar modules shipped cumulatively > 3.2 GWp solar power plants built and connected (incl. Recurrent) No. 1 Solar Compa
Slide 7: Energy Business: Globally Diversified Project Pipeline
Energy Business: Globally Diversified Project Pipeline Priority Markets for Utility-scale Project Development 9.6 GWp Total project development pipeline 7.4 GWp Early to mid-stage development pipeline (2) USA China Japan ~2.2 GWp Mexico India Total contracted / late-stage project pipeline (1) Short
Slide 8: Project Summary
Project Summary Late-stage Projects Expected COD Schedule Plants In Total 2018 and Country/Region Operation at Q2'17 2017 Late-stage After 03/31/2017 Projects (Gross MWp) US 808 - 92 309 401 China 128.5 53.8 400 - 400 UK 150 - - - - Japan 65 51 103 523 626 Spain 5 - - - - Brazil - - 284 115 399 Mexi
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 3.2 GWp Early-stage pipeline 401 MWp Late-stage pipeline1 808 MWp Late-stage Pipeline1 Owned and operated2 RoseRock Gaskell West 1 IS42 Tranquillity 8 104 92 281 28 MWp MWp MWp MWp I
Slide 10: Japan Utility-scale Solar Project Pipeline
Japan Utility-scale Solar Project Pipeline Total Solutions Business – Japan Utility-scale COD Schedule1 - MWp 626 MWp Late-stage pipeline 219.3 126.4 65 MWp 102.7 97.7 79.9 Owned and operated 2017 2018 2019 2020 2021+ Note: (1) Expected COD are tentative estimates subject to change, due to delays in
Slide 11: China Utility-scale Solar Project Pipeline
China Utility-scale Solar Project Pipeline Energy Business – China 2017 Late-stage Project Feed-in Tariff Province Opportunity (RMB/kWh) (MWP) 3 Heilongjiang 1 Jiangsu 40 0.85-0.945 7 7 Jilin 2 Shandong 30 0.85 3 20 MW 9 8 Liaoning 3 Hebei 25 0.75 200 MW Inner Xinjiang 4 25 MW 10 MW Mongolia Beijing
Slide 12: Brazil Utility-scale Solar Project Pipeline
Brazil Utility-scale Solar Project Pipeline Late-stage Pipeline 3 Project Gross MWp Status Expected COD Pirapora I (1) 192 Construction 2017 Pirapora II (1) 115 Development 2018 1 2 Pirapora III (2) 92 Construction 2017 Total 399 Canadian Solar has completed the sale of 80% interest in Pirapora I, I
Slide 13: Utility-scale Solar Power Plants Monetization Progress
Utility-scale Solar Power Plants Monetization Progress Monetization Schedule In the U.S., we are well underway to monetize 703 MWp of operating solar power plant Country MWp Target Sale Date assets, which we expect to complete in 2017. U.S. 703 2017 In the U.K., we initiated the sale process of 150
Slide 14: Module Business: Global Footprint With Diversified Customer Base
Module Business: Global Footprint With Diversified Customer Base Operational Footprint > 21 GW cumulative modules sold to date Customers in over 100 countries with offices in 18 countries Sales office Manufacturing facility Sales Breakdown by Region $320 $111 $200 $394 $318 $281 30% 58% 44% 16% $311
Slide 15: Capacity Expansion to Optimize Technology and Cost
Capacity Expansion to Optimize Technology and Cost Manufacturing Capacity - MW Technology upgrade – New products, new process, new design 6,970 Diamond wire-saw wafer 7,040 6,170 Black silicon Mono PERC Ku Module 4,330 4,490 4,490 Global Manufacturing Footprint 4,000 Brazil 3,000 2,700
Slide 16: Competitive Pipeline of Homegrown Technologies
Competitive Pipeline of Homegrown Technologies Poly Gen3 Mono PERC 0.4% cell efficiency and 4 watts module power gain over Mono PERC enhances back side passivation and increases cell baseline; cell efficiency to reach over 19% in mass efficiency to 21% production Low Light Induced Degradation (LID),
Slide 17: Cell Efficiency Roadmap
Cell Efficiency Roadmap Cell Efficiency Highlights Gen3 nano-texturing technology paves the way for using diamond-wire saw wafer in multi-crystalline cell production Gen4 will improve the multi-crystalline cell efficiency to above 21.4% by 2020 Mono PERC cell efficiency can reach above 22.5% in mass
Slide 18: Experienced Board & Senior Management
Experienced Board & Senior Management Name / Title Work Experience Founded Canadian Solar in 2001, and has since then, firmly established the company as a global Dr. Shawn Qu leader of the solar industry Chairman, President & CEO (Director) Director & VP at Photowatt International S.A. Researc
Slide 19: Income Statement Summary
Income Statement Summary Revenue – US$ million Gross Profit – US$ million Margin 3,468 2,853 16.6% 16.2%(1) 15.6% 17.8% 13.9%(1) 17.2% 13.5% 577 461.3 (1) 721 806 657 668 677 112 139 117 93 (1) 91 2015 2016 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 2015 2016 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Operating Income – US$
Slide 20: Operating Expenses as % of Net Revenue
Operating Expenses as % of Net Revenue Selling Expenses General & Administrative Expenses 9.4% 6.4% 7.4% 8.0% 5.1% 5.2% 5.0% 7.1% 6.9% (2) 4.8% 4.3% 4.2% 4.8% 4.8% 2015 2016 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 2015 2016 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Research & Development Expenses Total Operating Expenses
Slide 21: Guidance as of June 6, 2017
Guidance as of June 6, 2017 Q1 2017 Q2 2017 FY2016 FY2017 YoY ∆% Module 1,530 MW to 1,480 MW 5,232 MW 6.0 GW to 6.5 GW +24.2% Shipments 1,580 MW Revenue $677 mn $615 mn to $635 mn $2.85 bn NA NA Gross Margin 13.5%(1) 13% to 15%(1) NA NA NA 1-Includes module business and project business 21
Slide 22: Competitive Analysis
Competitive Analysis Revenue ($million) and Gross Margin (%) Cash and Restricted Cash on Hand - $ million 2011.5 892.0 961.4 839.3 677 536.4 626.8 432.0 399.1 Q1 - 2017 Q1 - 2017 441.9 462.3 272.5 CSIQ JASO JKS HQCL SPWR FSLR Gross 13.5 11.7 11.2 13.8 -7.8 9.4 Margin (%) CSIQ JASO JKS HQCL SPWR FSLR
Slide 23: Thank You!
THANK YOU! June 2017 23