Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q1 2022 Earnings Presentation
15 slides from Canadian Solar's earnings presentation, May 24, 2022
Slide 1: Canadian Solar 1Q22 Earnings Call
Canadian Solar 1Q22 Earnings Call May 24, 2022
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: Q1 2022 Review
Q1 2022 Review Solar Module Shipments, GW Revenue Gross EBITDA Net income 20-22 $1.25 margin $81 to CSIQ billion 14.5% million $9 million 14.5 11.5 Solar Battery 8.6 module storage 6.8 1. CSI Solar: shipments 6.6 shipments 4.7 5.2 3.63 GW 290 MWh 1.9 3.1 Power 24 GWp 27 GWh 2013 2014 2015 2016 2017
Slide 4: Accelerate upstream capacity expansion plan with state-of-the-art technologies
Accelerate upstream capacity expansion plan with state-of-the-art technologies Manufacturing Capacity, GW* 32.0 27.9 Increase vertical integration 23.9 20.4 20.0 19.8 Gain better control over 13.9 13.9 cost, technology and 11.5 11.5 product quality 5.4 5.4 Improve pricing power and long-term profita
Slide 5: CSI Solar China IPO in registration with the CSRC
CSI Solar China IPO in registration with the CSRC Q1-Q2 2022 • Registration process with the Chinese Securities Regulatory Commission • Investor roadshow • Official listing Q3-Q4 2021 ✓ • Feedback process and approval from the Shanghai Stock Exchange Q2 2021 ✓ • Submit application to regulatory auth
Slide 6: Mandate from the Board to conduct 3rd party audit of anti-forced labor policies
Mandate from the Board to conduct 3rd party audit of the effectiveness of our anti- forced labor policies Canadian Solar does not tolerate forced labor or any form of modern slavery, and is committed to ensuring that modern slavery does not take place anywhere in its business including its supply ch
Slide 7: Q1 a seasonally softer quarter
Q1 a seasonally softer quarter Gross margin Q1 2022 CSI Solar Key Figures 30% 700 23.5% 600 Module Shipments: 3.63 GW 22.2% 21.3% 19.9% 500 20% Storage Shipments: 290 MWh 19.3% 15.1% 19.4% 14.5% 400 13.5% 13.1% 287 9.7% 300 Revenue: $1.21 billion 10% 183 173 176 162 157 155 200 106 67 100 Gross marg
Slide 8: Raw material costs still going up partially offset by shipping and FX improvement
Raw material costs still going up partially offset by shipping and FX improvement Polysilicon price (RMB/kg) Shanghai Containerized Freight Index USD to RMB (TEU) 6.9 269 5400 256 254 6.8 247 243 240 243 233 -19% from peak 6.7 206 205 205 214 4400 +7% in 3 weeks 6.6 167 3400 6.5 135 113 6.4 85 91 24
Slide 9: CSI Solar strategy based on long-term market position and earnings improvement
CSI Solar strategy based on long-term market position and earnings improvement SOLAR BATTERY STORAGE Expand capacity to grow global market Execute on growth strategy share and solidify leadership position Enter new markets and services Increase vertical integration to reduce market risk and drive in
Slide 10: We have 12 GWp of solar and 11 GWh of storage interconnection agreements globally
We have 12 GWp of solar and 11 GWh of storage interconnection agreements globally Solar Project Pipeline (March 31, 2022) – MWp Battery Storage Project Pipeline (March 31, 2022) – MWh Region Construction Backlog Pipeline Total Region Construction Backlog Pipeline Total North North 115 472 7,641 8,22
Slide 11: Multiple levers of growth, focusing on recurring income
Multiple levers of growth, focusing on recurring income 2021 2022E 2023E 2024E 2025E 2026E Actual 1 Annual Development: project 2.1 2.1 – 2.6 2.8 – 3.3 3.5 – 4.0 4.0 – 4.5 4.3 – 4.8 Project sales sales GWp 2 Services: Operational O&M O&M(1) + projects, 2.1 4.3 7.5 11 15 20 Asset Mgmt GWp 3 Investmen
Slide 12: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 1Q21 2Q21 3Q21 4Q21 1Q22 qoq yoy Net revenues 1,089 1,430 1,229 1,529 1,250 -18% +15% -CSI Solar 695 1,184 1,149 1,343 1,210 -10% +74% -Global Energy 471 281 140 232 93 -60% -80% -Elimination (77) (35) (60) (46) (53) Gross marg
Slide 13: Quarterly balance sheet highlights
Quarterly balance sheet highlights USD millions 1Q21 2Q21 3Q21 4Q21 1Q22 Cash and equivalents 981 814 868 870 845 Restricted cash 542 497 490 564 849 Short-term borrowings 1,217 867 1,083 1,271 1,283 Long-term borrowings on project assets – current 264 491 297 322 324 Financing liabilities – current
Slide 14: Guidance as of May 24, 2022
Guidance as of May 24, 2022 Q1 2022 Q2 2022 FY2021 FY2022 2021-22E Actual Guidance Actual Guidance yoy ∆% Module 3.63 GW 4.9 – 5.1 GW 14.5 GW 20 – 22 GW c. +45% Shipments* Battery Storage 290 MWh 600 MWh+ 896 MWh 1.8 – 1.9 GWh c. +100% Shipments Project Sales n/a n/a 2.1 GW 2.1 – 2.6 GW c. +10% Reve
Slide 15: Thank you
Cf -_ = Sc CanadianSolar Thank you CSIQ Nasdaq Listed