Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q3 2020 Earnings Presentation
14 slides from Canadian Solar's earnings presentation, Nov 19, 2020
Slide 1: Canadian Solar 3Q20 Earnings Call
Canadian Solar 3Q20 Earnings Call November 19, 2020
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: China IPO progress on track Q2 – Q4 2021
China IPO progress on track Q2 – Q4 2021 • Feedback process with regulatory authorities and stock exchange • Roadshow / PDIE • Official listing Q2 2021 • Submit application to regulatory authorities and stock exchange Q1 2021 • Financial, legal paperwork • Prospectus Q4 2020 • Shareholder system ref
Slide 4: Strategy update
Strategy update MSS: Expand capacity and increase the level of vertical 1 integration to gain market share, improve pricing power, better control costs and improve profitability Energy: Expand market presence through localized 2 large-scale project investment vehicles and retain partial ownership in
Slide 5: Module and System Solutions (MSS): Positioning for long-term growth
Module and System Solutions (MSS): Positioning for long-term growth Arrival of grid parity and increasing competitiveness of solar energy to drive sustainable growth in global demand for solar Canadian Solar’s strategy to expand capacity, increase the level of vertical integration – gain global mark
Slide 6: Short term margin pressure from rapid inflation of raw material costs, shipping costs and unfavorable FX movements
Short term margin pressure from rapid inflation of raw material costs, shipping costs and unfavorable FX movements Polysilicon price (RMB/kg) 3.2 mm glass price (RMB/m2) 42 98 +75% +66% 95 88 35 82 78 73 73 73 30 29 29 29 26 26 62 59 24 24 24 59 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Jan Feb Ma
Slide 7: Gross margin improvement and growth roadmap
Gross margin improvement and growth roadmap 1. Glass capacity increase and glass replacement (e.g. transparent backsheet etc.) 2. Increase market presence in China – strong demand, not affected by shipping or FX 3. ASP increases 4. Investment in new capacity and upstream integration to contribute to
Slide 8: Energy Business: Focus on growth, execution and monetization
Energy Business: Focus on growth, execution and monetization Project Pipeline (Sep 30, 2020) – MWp DEVELOPMENT 862 MWp in new PPAs in Brazil (private auction & corporate PPA) Region Construction Backlog Pipeline Total 22 MWp in Japan’s 6th FIT Auction EXECUTION North 514 1,022 3,763 5,299 America Fi
Slide 9: Project sales to grow by 25% pa while accumulating 1 GW in minority stakes
Project sales to grow by 25% pa while accumulating 1 GW in minority stakes by 2024 Energy Business Targets (1) 2020 2021 2022 2023 2024 Annual project sales, GWp 1.1-1.3 1.8-2.3 2.4-2.9 3.2-3.7 3.6-4.1 Cumulative projects retained, MWp 40 200 400 760 960 Canadian Solar Ecosystem Retain minority owne
Slide 10: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 3Q19 2Q20 3Q20 qoq yoy 9M19 9M20 yoy Net revenues 760 696 914 31% 20% 2,281 2,436 7% Gross margin 26.2% 21.2% 19.5% -164 bp -666 bp 21.4% 22.5% 109 bp Gross margin ex. AD/CVD 23.0% 18.2% 19.5% 129 bp -347 bp 19.4% 21.7% 227 bp
Slide 11: Quarterly balance sheet highlights
Quarterly balance sheet highlights USD millions 4Q19 1Q20 2Q20 3Q20 Cash and equivalents 669 619 579 1,103 Restricted cash 537 504 416 459 Short-term borrowings 933 910 1,016 1,065 Long-term borrowings on project assets – current 286 183 180 238 Capital leases - current 25 20 15 24 Long-term borrowi
Slide 12: New corporate structure as of September 30, 2020
New corporate structure as of September 30, 2020 Canadian Solar Inc. (CSIQ) 80% 100% CSI Solar Global Energy • MSS business and sales • Solar project development subsidiaries • Storage project development • China Energy • Operations & maintenance • System Solutions and services Energy Storage • Elec
Slide 13: Guidance as of November 19, 2020
Guidance as of November 19, 2020 Q3 2020 Q4 2020E FY2019 FY2020E yoy ∆% Module 3,169 MW 2.9 GW to 3.0 GW 8,579 MW 11.2 GW to 11.3 GW c. +30% Shipments $980 mn to Revenue $914 mn $3.2 bn $3.4 bn to $3.5 bn $1,015 mn c. +8% Gross Margin 19.5% 8.0% to 10.0% 22.4% 18.0% - 18.9% c. -400 bp 13
Slide 14: Thank you
Cf -_ = Sc CanadianSolar Thank you CSIQ Nasdaq Listed