Ftc Solar, Inc. · NASDAQ:FTCI
Ftc Solar — Investor Presentation (June 2022)
44 slides from Ftc Solar's investor presentation, June 2022
Slide 1: FTC Solar Overview
May-June 2022 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: Agenda
Agenda 3 • Company Overview • Market Overview • Technology & Positioning • Growth Drivers • Financial Overview • Q&A __________________________________________________________________________________ Appendix
Slide 4: Company Overview
Company Overview
Slide 5: Introductions
Introductions 5 Sean Patrick T.J. Hunkler Cook Rodgers Chief Executive Officer Chief Commercial Officer Chairman of the Board Member of Board of Directors • Appointed CEO September 2021, Previously • FTC Solar CFO 2019-2021 • Founder of Cypress Semiconductor and CEO for EVP of Global Operations at W
Slide 6: FTC Solar Today
FTC Solar Today 6 About Us Key Metrics Installed Base2: >3.5GW FTC Solar is a fast-growing provider of tracker systems, software and Customers2: 140+ engineering services to the solar energy industry Employees: 223 Patents (Granted or Pending) 76 Tracker Systems Software Engineering Services Manufac
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: The Advantages of 2P Trackers
8 The Advantages of 2P Trackers FTC Solar is one of the largest U.S. provider of two-panel in-portrait (2P) trackers Bifacial Panels Collect Energy On Both Sides… …and Perform Better with 2P Designs 2P benefits vs 1P (~9% more than monofacial) 1 (~2% more than 1P)2 Higher Design Flexibility 1P 2P
Slide 9: Our Competitive Differentiation in Trackers
Our Competitive Differentiation in Trackers 9 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 yi
Slide 10: Global Supply Chain
Global Supply Chain 10 Turkey Korea Posts Posts Beams Beams Rails China Posts Beams Rails Steel U.S.A. Hardware Posts Spain Canada Controllers Beams Posts Steel Dampers Steel Beams Taiwan Slew Drives Hardware Slew Drives Sensors Controllers Dampers* India Cables Mexico Posts Wire Clamps Posts Beams
Slide 11: Key Investment Highlights
Key Investment Highlights 11 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 12: Market Overview
Market Overview
Slide 13: The Emergence of the Solar Market
The Emergence of the Solar Market 13 The solar energy industry has grown as its associated costs have decreased 43% of all new electric capacity added to the grid came from solar energy in 2020, representing the largest such share in history Historical LCOE of Renewables and Utility-Scale Batteries1
Slide 14: Solar Market Poised for Sustained Growth
Solar Market Poised for Sustained Growth 14 Solar energy is expected to continue to increase its penetration in the U.S. and globally Estimated $220bn+ market size in in 2026, growing at a CAGR of 20%+ from 20191 Cumulative Installed Solar Capacity (GW)2 U.S. Rest of World (“ROW”) 1,008 7,000 5,991
Slide 15: The Solar Market is Transitioning to Trackers
The Solar Market is Transitioning to Trackers 15 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) Tracker percentage of gr
Slide 16: Further Innovation Supports the Transition to Trackers
Further Innovation Supports the Transition to Trackers… 16 Monofacial to Bifacial Panels 1P to 2P Trackers Standard to Large Format Panels (Bifacial modules perform better on trackers) (Bifacial perform even better on 2P than 1P) ~9% ~2% 30% Market Gain in energy production Yield improvement on bifa
Slide 17: Technology & Positioning
Technology & Positioning
Slide 18: FTC Solar 2P Solutions Offer Unique Advantages
FTC Solar 2P Solutions Offer Unique Advantages 18 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 19: All the Advantages of 2P – Design Flexibility & Panel Density
A All the Advantages of 2P – Design Flexibility & Panel Density 19 (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 20: All the Advantages of 2P – Site Accessibility
A All the Advantages of 2P – Site Accessibility 20 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 21: Reduced Part Count
B Reduced Part Count 21 (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 22: Direct Current Collections Advantage
22 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 23: Industry-Leading Install Speed and Low Labor Costs
D Industry-Leading Install Speed and Low Labor Costs 23 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 24: High Slope Tolerance
E High Slope Tolerance 24 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 25: Performance Software
F Performance Software 25 SunPath 1 Terrain-Based 2 Diffuse Light 3 Array Level 4 Bifacial Yield Backtracking Optimization Backtracking Optimization Up To 4% Yield Improvement1 Up To 2% Yield Improvement Up To 6% Yield Improvement Up To 2% Yield Improvement Terrain flexibility & A “smart” approach t
Slide 26: Intellectual Property Overview
Intellectual Property Overview 26 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 27: Growth Drivers
THAN CANN WS Oe 1 HIN . y Growth Drivers
Slide 28: Multiple Growth Drivers for Further Upside
Multiple Growth Drivers for Further Upside 28 Market and Sector Broaden and Deepen Expand Value Increase Operating Tailwinds Customer Relationships per Unit Leverage from Scale Long-term + + Build on software offerings + Scalable corporate = Sustainable Income & FCF Fossil fuels → solar energy New U
Slide 29: International: Strong Pipeline Growth, Initial Wins on Schedule
29 International: Strong Pipeline Growth, Initial Wins on Schedule International pipeline has more than tripled since Oct. ’20 23,820 MW 32,155 MW 21,370 MW 15,755 MW 8,421MW Oct-20 Mar-21 May-21 Jul-21 Apr’22 Project win Sales presence or pipeline • Long sales cycle like in • In-country infrastruct
Slide 30: Financial Overview
Financial Overview
Slide 31: U.S.: Strong Backlog, Revenue Growth; Progress w/Key Customers
31 U.S.: Strong Backlog, Revenue Growth; Progress w/Key Customers Annual Awarded / Executed Contracts at Start of Year vs. Ending Revenue – more than 3x growth year-on-year ($mm) Jan. 1 Contracted & Awarded EOY Reported Revenue $271 $187 $109 $53 $54 $2 2019 2020 2021 Top-15 EPC penetration 40% 60%
Slide 32: Margin Improvement – Cost Roadmap
Margin Improvement – Cost Roadmap 32 Example Initiatives/highlights • Design to value initiatives that reduce material needed to produce Voyager tracker systems • Dynamic modeling to identify materials reduction opportunities • Design optimization to reduce manufacturing costs • R&D to improve dampi
Slide 33: Cost Program Highlights – R&D and Design Excellence
33 Cost Program Highlights – R&D and Design Excellence Hot Rolled Steel index ($ per MT) 1887 1950 1930 1825 1810 1610 1675 1580 1462 1390 1375 1287 1125 1200 1060 960 690 765 580 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2020 2021 2022 • Broaden & deepen supply bas
Slide 34: Cost Program - Material and Logistics
34 Cost Program - Material and Logistics Ocean freight index ($K per container) 21.8 20.7 17.6 16.7 16.8 17.5 16.9 17.4 14.6 10.4 7.5 8.5 6.6 6.3 6.4 4.5 4.7 4.8 4.9 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2020 2021 2022 • Introduced new modes (e.g. charter) Compl
Slide 35: Simple Reasons to Invest
Simple Reasons to Invest 35 Trackers support and enhance innovations in Gain exposure to the Ground-mount is the fastest-growing segment the solar industry, driving a continued decline largest and most in the U.S. solar market in LCOE attractive part of the Solar has many powerful continued gr
Slide 36: 1Q'22 Results Slides
THAN CANN LAN it \\ INAS . 1Q’22 Results Slides
Slide 37: Highlights
37 Highlights Good progress, strong international growth International Spotlight Awards in Three New Countries Bookings progress: $664 million with $112 million added since March 15 Organic international growth: recent bookings are ~50% international Kenya Malaysia South Africa 20%+ Int’l Pipeline G
Slide 38: Our Near-term Focus
38 Our Near-term Focus • Executing incredibly well on in-flight projects; customer relationships • Accelerating international efforts, including HX integration & growth • Building higher-margin DG business – 12 projects awarded since January announcement • Improve operational efficiency, control cos
Slide 39: Cost-Reductions on Track
Cost-Reductions on Track 39 Significant improvements masked by low AD/CVD volume, remaining legacy project mix Illustrative Gross Margin per Revenue Level Legacy Projects 4Q’21 Net1 Avg. New Project Awards2 (Production post 2Q’22) Revenue Level $100m $150m $104.7 $100m $150m Gross Margin (5%) (4%) (
Slide 40: Appendix
Appendix
Slide 41: Reconciliation of Non-GAAP Gross Margin and Operating Expenses
Reconciliation of Non-GAAP Gross Margin and Operating Expenses 41 The following table reconciles Non-GAAP gross margin for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, (in thousands, e xce pt pe rce ntage s) 2022 2021 GAAP revenue $ 49,553 $ 65,707 G
Slide 42: Reconciliation of GAAP Loss from Operations to Adjusted EBITDA
Reconciliation of GAAP Loss from Operations to Adjusted EBITDA 42 The following table reconciles GAAP loss from operations to Adjusted EBITDA for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, (in thousands) 2022 2021 GAAP loss from operations $ (27,77
Slide 43: Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss
Reconciliation of Net Loss to Adjusted EBITDA and Adjusted Net Loss 43 The following table reconciles Net loss to Adjusted EBITDA and Adjusted Net Loss for the three months ended March 31, 2022, and 2021, respectively: Thre e months e nde d March 31, 2022 2021 (in thousands, e xce pt share s and pe
Slide 44: Notes to Reconciliations of Non-GAAP Financial Measures
Notes to Reconciliations of Non-GAAP Financial Measures 44 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