Slide 1: FTC Solar Overview
une2023 ~~ 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 Sean Patrick Shaker Hunkler Cook Sadasivam Chief Executive Officer Chief Commercial Officer Chairman of the Board Member of Board of Directors • Appointed CEO September 2021, Previously • FTC Solar CFO 2019-2022 • Founder and CEO of Auragent Bioscience since EVP of Global Operations
Slide 4: Agenda
Agenda 4 • Recent Updates / Key Takeaways • Company Overview • Market Overview • Technology & Positioning • Growth Drivers & Financials • Q&A __________________________________________________________________________________ Appendix
Slide 5: Company Overview
Company Overview
Slide 6: FTC Solar Today
FTC Solar Today 6 About Us Key Metrics Installed Base2: >4.5GW Customers2: 140+ FTC Solar is a leading provider of tracker systems, software and engineering services to the solar energy industry Employees: 229 Patents (Granted or Pending) 58 Tracker Systems Software Engineering Services Manufacturin
Slide 7: What is a Solar Tracker?
What is a Solar Tracker? 7 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 throughout the day Tracker syst
Slide 8: Our Competitive Differentiation in 2P Trackers
Our Competitive Differentiation in 2P Trackers 8 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
Slide 9: Global Supply Chain
Global Supply Chain 9 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 New U.S. “Alpha Steel” JV S. Africa S
Slide 10: Key Investment Highlights
Key Investment Highlights 10 A Technology Company With A Unique Value Proposition Leading That is Well Positioned in Large Differentiated Solutions... to Rapid Customer Adoption… and Growing TAM… • Industry-leading installation speeds (~40%) • Grew top 15 developer and EPC penetration to • Trackers
Slide 11: Market Overview
Market Overview
Slide 12: Solar Now Lowest Cost Energy, Leads Global Capacity Additions
Solar Now Lowest Cost Energy, Leads Global Capacity Additions 12 The solar energy industry has grown as its associated costs have decreased 50% of all new electric capacity added to the grid came from solar energy in 2021, representing the largest such share in history Historical LCOE of Renewables
Slide 13: Overall Market Size / Market Forecasts Continue to Grow
Overall Market Size / Market Forecasts Continue to Grow 13 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”) 492 453 3,350 3,070 405 2,836 354 2,612 2
Slide 14: The Solar Market is Transitioning to Trackers
The Solar Market is Transitioning to Trackers 14 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 15: Technology & Positioning
Technology & Positioning
Slide 16: FTC Solar 2P Solutions Offer Unique Advantages
FTC Solar 2P Solutions Offer Unique Advantages 16 A All the Advantages of 2P Improved bifacial energy yield Increased design flexibility Higher panel density Better site accessibility B C D + E F Reduced Part Direct Current (“DC”) Industry-Leading High Slope Performance Count Collections Adv
Slide 17: All the Advantages of 2P – Design Flexibility & Panel Density
A All the Advantages of 2P – Design Flexibility & Panel Density 17 (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 18: All the Advantages of 2P – Site Accessibility
A All the Advantages of 2P – Site Accessibility 18 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 19: Reduced Part Count
B Reduced Part Count 19 (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 20: Direct Current Collections Advantage
20 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 21: Industry-Leading Install Speed and Low Labor Costs
D Industry-Leading Install Speed and Low Labor Costs 21 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 22: High Slope Tolerance
E High Slope Tolerance 22 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 23: New Pioneer 1P Tracker
New Pioneer 1P Tracker 23 • 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-
Slide 24: Performance Software
F Performance Software 24 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 neighborin
Slide 25: Intellectual Property Overview
Intellectual Property Overview 25 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 Diffuse light backtrac
Slide 26: Growth Drivers & Financials
THAN BLAM LN i\ \| INAS . Growth Drivers & Financials
Slide 27: Multiple Growth Drivers for Further Upside
Multiple Growth Drivers for Further Upside 27 Market and Sector Broaden and Deepen Expand Value Increase Operating Tailwinds Customer Relationships per Unit Leverage from Scale Long-term + + Grow DG business + Scalable corporate = Sustainable Income & FCF Gov’t policies & incentives New U.S. custome
Slide 28: Backlog and Revenue; Progress w/Key Customers
28 Backlog and Revenue; Progress w/Key Customers Annual Backlog at Start of Year vs. Ending Revenue • AD/CVD, WRO, UFLPA project delays • Backlog builds ($mm) $1.4B As of $1.2B* May 10, 2023 1,200 1,000 Start of year Backlog EOY Reported Revenue • 45% Revenue Growth 800 • Revenue ahead of starting b
Slide 29: Margin Improvement – Cost Roadmap
Margin Improvement – Cost Roadmap 29 Example Initiatives/highlights • Design to value initiatives that reduce material needed to produce Voyager tracker systems • Dynamic modeling to identify materials reduction opportunities • Design optimization to reduce manufacturing costs • R&D to improve dampi
Slide 30: 1Q'23 Results Slides
THAN BLAM LN 1] HNN : 1Q’23 Results Slides
Slide 31: Improved Positioning & Results
Improved Positioning & Results 31 Action Taken Benefit Improved Cost & • Eliminated >20% of product steel content • Significant margin expansion in progress Margin Structure • Launched high-margin DG business • Estimate 12%-18% margin at $150m run-rate/q Expanded Product • New solution for U.S. thin
Slide 32: Q1 Financial Performance
Q1 Financial Performance 32 Results at High-End of Target Ranges Non-GAAP Revenue Gross Margin Up 56% Up 11 points Quarter over Quarter Quarter over Quarter • 1Q results better than mid-point of guidance ranges on all metrics U.S. GAAP Non-GAAP Three months ended March 31, (in thousands, except per
Slide 33: Appendix
Appendix
Slide 34: Reconciliation of Non-GAAP Gross Margin and Operating Expenses
Reconciliation of Non-GAAP Gross Margin and Operating Expenses 34 The following table reconciles U.S. GAAP gross margin to Non-GAAP gross margin for the three months ended March 31, 2023, and 2022, respectively: Thre e months e nde d March 31, (in thousands, e xce pt pe rce ntage s) 2023 2022 U.S. G
Slide 35: Reconciliation of Non-GAAP Loss from Operations
Reconciliation of Non-GAAP Loss from Operations 35 The following table reconciles U.S. GAAP loss from operations to Adjusted EBITDA for the three months ended March 31, 2023, and 2022, respectively: Thre e months e nde d March 31, (in thousands) 2023 2022 U.S. GAAP loss from operations $ (12,397) $
Slide 36: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss 36 The following table reconciles U.S. GAAP Net loss to Adjusted EBITDA and Adjusted Net Loss for the three months ended March 31, 2023, and 2022, respectively: Thre e months e nde d March 31, 2023 2022 (in thousands, e xce pt share
Slide 37: Notes to Reconciliations of Non-GAAP Financial Measures
Notes to Reconciliations of Non-GAAP Financial Measures 37 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