Ftc Solar, Inc. · NASDAQ:FTCI
Ftc Solar — Investor Presentation (June 2024)
40 slides from Ftc Solar's investor presentation, June 2024
Slide 1: FTC Solar Overview
June 2024 FTC Solar Overview @) =
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 Forward-Looking Statements and Non-GAAP Financial Measures 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 Cathy Patrick Shaker Behnen Cook Sadasivam Chief Financial Officer SVP, Capital Markets and Business Development Chairman of the Board • Appointed CFO February 2024 • FTC Solar CFO 2019-2022, CCO 2022-2024 • Founder and CEO of Auragent Bioscience since 2018 • Previously FTC Solar’s C
Slide 4: Introduction to FTC Solar
Introduction to FTC Solar 4 Global provider of high-quality, mission critical solar trackers, software and engineering solutions for large, blue-chip EPC contractors and developers 2P Solution (High margin niche) Uniquely positioned with comprehensive portfolio of differentiated and patented 1P an
Slide 5: Agenda
5 Agenda • Recent Updates / Key Takeaways • Company Overview • Market Overview • Technology & Positioning • Growth Drivers & Financials • Q&A __________________________________________________________________________________ Appendix
Slide 6: Company Overview
Company Overview
Slide 7: Leading Provider of Proprietary Solar Tracking Technology
7 Leading Provider of Proprietary Solar Tracking Technology About Us Key Metrics Installed Base2: >5.5GW Customers2: 140+ FTC Solar is a leading provider of patented 1P and 2P tracker systems, software and engineering services to the solar energy industry Employees: 200+ Patents (Granted or Pending)
Slide 8: Solar Trackers Are Critical to Utility-Scale PV Projects
8 Solar Trackers Are Critical to Utility-Scale PV Projects 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
Slide 9: Our Competitive Differentiation
9 Our Competitive Differentiation 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 yield from Tim
Slide 10: Demonstrated Track Record With Blue-Chip Customer Base
10 Demonstrated Track Record With Blue-Chip Customer Base ● FTC supports global distributed generation and utility-scale projects, successfully delivering 5 GW+ of trackers to customers across several continents ● The Company has substantial expertise in executing large-scale utility solar developme
Slide 11: Global Supply Chain
11 Global Supply Chain 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 U.S. “Alpha Steel” JV S. Africa Stee
Slide 12: FTC Solar Positioning Timeline
12 FTC Solar Positioning Timeline Differentiated Tracker Solutions Led to Industry Challenges Hit in 2022 While FTC Now Positioned with Full Product Suite FTC Uses Downturn to Get Stronger Rapid Customer Adoption Revenue Still Weighted to U.S. Market and Low Cost Structure ● Co-founded by T.J. Rodge
Slide 13: Market Overview
Market Overview
Slide 14: Solar Now Lowest Cost Energy, Leads Global Capacity Additions
14 Solar Now Lowest Cost Energy, Leads Global Capacity Additions The solar energy industry has grown as its associated costs have decreased ~60% of all new electric capacity added to the grid came from solar energy in 2022, representing the largest such share in history Historical LCOE of Renewables
Slide 15: Favorable Market Backdrop
15 Favorable Market Backdrop Renewable energy leads power capacity additions with solar accounting for 47% of capacity in 2030P U.S. Power Capacity by Source(1) U.S. Renewable Power Capacity(1) (Gigawatts) (Gigawatts) 1, 00 Historical Projected Historical Projected 00 1, 1 72 1,223 1,200 1,1 0 00 7
Slide 16: Overall Market Size / Market Forecasts Continue to Grow
16 Overall Market Size / Market Forecasts Continue to Grow 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 orld (“RO ”) 529 471 416 362 2,603 309 259 2,023 2,000
Slide 17: The Solar Market is Transitioning to Trackers
17 The Solar Market is Transitioning to Trackers 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 RO Penetration Global ground-mounted PV installations over 1MW (MW) – ex-China Tracker percen
Slide 18: Technology & Positioning
Technology & Positioning
Slide 19: FTC Solar 2P Solutions Offer Unique Advantages
19 FTC Solar 2P Solutions Offer Unique Advantages A All the Advantages of 2P ✓ Improved bifacial energy yield ✓ Increased design flexibility ✓ Higher panel density ✓ Better site accessibility + B C D E Reduced Part Direct Current (“DC”) Industry-Leading High Slope Count Collections Advantage Install
Slide 20: All the Advantages of 2P – Design Flexibility & Panel Density
20 A All the Advantages of 2P – Design Flexibility & Panel Density (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 21: All the Advantages of 2P – Site Accessibility
21 A All the Advantages of 2P – Site Accessibility 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 22: Reduced Part Count
22 B Reduced Part Count (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 23: Direct Current Collections Advantage
23 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 24: Industry-Leading Install Speed and Low Labor Costs
24 D Industry-Leading Install Speed and Low Labor Costs 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 25: High Slope Tolerance
25 E High Slope Tolerance 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 26: Pioneer 1P Tracker
26 Pioneer 1P Tracker • 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-modu
Slide 27: Performance Software
27 Performance Software 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 neighboring
Slide 28: Strong IP Portfolio With Broad Patent Coverage
28 Strong IP Portfolio With Broad Patent Coverage 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 Diffus
Slide 29: Voyager (2P) and Pioneer (1P) Trackers
29 Voyager (2P) and Pioneer (1P) Trackers Voyager Single-Axis Trackers (2P) Pioneer Single-Axis Trackers (1P) ● Accommodates 2 panels installed in portrait orientation ● Accommodates 1 panel installed in landscape orientation ● Operating range of motion ± 52° (± 60° optional) ● Operating range of mo
Slide 30: Growth Drivers & Financials
TTVLTULTA es AAAS Growth Drivers & Financials
Slide 31: Multiple Growth Drivers
31 Multiple Growth Drivers Market and Sector Broaden and Deepen Expand Value Increase Operating Tailwinds Customer Relationships per Unit Leverage from Scale Positioned for Long-term + + Grow DG business + Scalable corporate = Sustainable Income & FCF Gov’t policies & incentives New U.S. customers (
Slide 32: Margin Improvement
32 Margin Improvement • FTC is achieving sustainably high direct margins • Improvement driven by significantly reduced steel content (>20%) and manufacturing costs • Significant gross margin leverage and EBITDA profitability now a function of top-line revenue Revenue & Non-GAAP Gross Margin1 3Q’23 v
Slide 33: 1Q'24 Earnings Results Slides
1Q’2 Earnings Results Slides
Slide 34: Recent Progress
34 Recent Progress Bookings & Product Enhancements • Bookings remain healthy, POs ~$50m/mo • Improved customer engagement & enhanced product portfolio, first order for high-wind Pioneer • Contracted portion of backlog ~$485m 2P Market Recovery, Most Comprehensive Product Portfolio To-Date • More nor
Slide 35: Q1 Financial Performance
35 Q1 Financial Performance U.S. GAAP Non-GAAP Three months ended March 31, (in thousands, except per share data) 2024 2023 2024 2023 Revenue $ 12,587 $ 40,894 $ 12,587 $ 40,894 Gross margin percentage (16.7%) 5.0% (13.7%) 7.3% Total operating expenses $ 10,394 $ 14,432 $ 8,702 $ 10,053 Loss from op
Slide 36: Appendix
Appendix
Slide 37: Reconciliation of Non-GAAP Gross Margin and Operating Expenses
37 Reconciliation of Non-GAAP Gross Margin and Operating Expenses The following table reconciles U.S. GAAP gross margin to Non-GAAP gross margin for the three months ended March 31, 2024, and 2023, respectively: Three months ended March 31, (in thousands, except percentages) 2024 2023 U.S. GAAP reve
Slide 38: Reconciliation of Non-GAAP Loss from Operations
38 Reconciliation of Non-GAAP Loss from Operations The following table reconciles U.S. GAAP loss from operations to Adjusted EBITDA for the three months ended March 31, 2024, and 2023, respectively: Three months ended March 31, (in thousands) 2024 2023 U.S. GAAP loss from operations $ (12,502) $ (12
Slide 39: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss
39 Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss The following table reconciles U.S. GAAP Net loss to Adjusted EBITDA and Adjusted Net Loss for the three months ended March 31, 2024, and 2023, respectively: Three months ended March 31, 2024 2023 (in thousands, except shares and
Slide 40: Notes to Reconciliations of Non-GAAP Financial Measures
40 Notes to Reconciliations of Non-GAAP Financial Measures 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