Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q2 2023 Earnings Presentation
15 slides from Canadian Solar's earnings presentation, Aug 22, 2023
Slide 1: Canadian Solar 2Q23 Earnings Call
Canadian Solar 2Q23 Earnings Call August 22, 2023
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: Q2 2023 review
Q2 2023 review Solar Module Shipments, GW Revenue Gross EBITDA Net income Diluted EPS $2.4 margin $338 to CSIQ to CSIQ 30-35 billion 18.6% million $170 million $2.39 24.9 GWh Utility-scale 21 Solar Utility-scale battery module storage 1. CSI Solar: storage storage contracted 14.5 shipments shipments
Slide 4: CSI Solar subsidiary IPO completed on June 9, 2023 – ticker 688472
CSI Solar subsidiary IPO completed on June 9, 2023 – ticker 688472 Q1 2022-Q2 2023 • Registration with the Chinese Securities Equity raised approx. $975 million* Regulatory Commission complete • Investor roadshow • Official listing Q3-Q4 2021 ✓ • Feedback process and approval from the Shanghai Stock
Slide 5: Making long-term investments in core markets – U.S.
Making long-term investments in core markets – U.S. 5
Slide 6: Canadian Solar publishes latest ESG Sustainability Report
Canadian Solar publishes latest ESG Sustainability Report • Expanded commitment to international ESG initiatives • Continue to reduce environmental impact and helping customers achieve their clean energy goals • Expanding our ethical business practices, including in our operations and suppliers, div
Slide 7: CSI Solar achieved strong results in Q2 despite rapid decline in module prices
CSI Solar achieved strong results in Q2 despite rapid decline in module prices Gross Margin CSI Solar Q2 2023 23.5% 22.2% 21.3% 19.9% Module shipments: 8.2 GW 17.3% 17.4% 18.5% 15.9% 19.3% 15.1% 19.4% 14.5% Storage shipments: 51 MWh 13.5% 13.1% 14.3% 13.4% 341 345 9.7% Revenue: $2.0 billion 287 290
Slide 8: Costs have come down across the board…
Costs have come down across the board… …but cell prices haven’t come down nearly as much as polysilicon prices, affecting around 40% of 2023’s planned shipments – greater vertical integration by Q4 will help improve margins Polysilicon Price (RMB/kg) Wafer Price (US$/piece) Cell Price (US$/w) Module
Slide 9: e-STORAGE Q2 2023 performance
e-STORAGE Q2 2023 performance Contracted backlog $2.1 billion Turnkey Utility-Scale Storage Revenue, US$ million Order intake Q2 2023 c.2,100 $630 million 2023 year-end capacity 10 GWh 440 223 0 Total pipeline 2020 2021 2022 Contracted 26 GWh pipeline 9
Slide 10: Recurrent Energy delivered significant revenue and profit growth in Q2
Recurrent Energy delivered significant revenue and profit growth in Q2 Recurrent Energy Q2 2023 Gross Margin 47.1% Project sales: 100 MW 36.5% 31.7% 43.7% 36.0% 43.9% 24.0% 21.7% 19.2% 158 14.4% Revenue: $360 million 10.3% 8.6% 4.2% 3.5% 113 Gross profit: $158 million 89 80 61 48 Gross margin: 43.9%
Slide 11: One of the largest and most mature global solar & battery storage project pipelines
One of the largest and most mature global solar & battery storage project pipelines Solar Development Project Pipeline – MWp* Battery Energy Storage Development Project Pipeline – MWh In Advanced Early-Stage In Advanced Early-Stage Region Backlog Total Region Backlog Total Construction Pipeline Pipe
Slide 12: Signing higher PPAs under the backdrop of falling capex costs
Signing higher PPAs under the backdrop of falling capex costs • Recurrent signed 2.1 GWp of PPAs over the past 3 years at relatively high prices (pre-construction) • c.1.5 GW of PPAs in advanced negotiations in the U.S. and Europe for projects to be held long-term • Successfully raised PPA prices in
Slide 13: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 2Q22 3Q22 4Q22 1Q23 2Q23 qoq yoy Net revenues 2,314 1,932 1,972 1,701 2,364 +39% +2% -CSI Solar 1,816 1,973 1,976 1,709 2,014 +18% +11% -Recurrent Energy 554 101 74 20 360 +1,696% -35% -Elimination (56) (142) (78) (28) (10) Gro
Slide 14: Quarterly cash flow and balance sheet highlights
Quarterly cash flow and balance sheet highlights USD millions 2Q22 3Q22 4Q22 1Q23 2Q23 Working capital days 7 7 8 9 9 Operating cash inflow 293 68 397 47 290 Cash and equivalents 1,054 1,083 981 848 2,011 Restricted cash 895 872 988 1,227 1,239 Short-term borrowings 1,368 1,228 1,350 1,665 1,757 Lon
Slide 15: Guidance as of August 22, 2023
Guidance as of August 22, 2023 Q2 2023 Q3 2023 FY2022 FY2023 2022-23E Actual Guidance Actual Guidance yoy ∆% Solar Module 8.2 GW 8.5 – 8.7 GW 21.1 GW 30 – 35 GW c. +55% Shipments Utility Scale Storage 51 MWh n/a 1.8 GWh 1.8 – 2.0 GWh c. +5% Shipments* Revenue $2.4 bn $1.9 bn – $2.1 bn $7.5 bn $8.5 b