Tigo Energy, Inc. · NASDAQ:TYGO
Tigo Energy — Investor Presentation (July 2023)
31 slides from Tigo Energy's investor presentation, Jul 14, 2023
Slide 1: Intelligent Solar and Energy Storage Solutions July 2023
Intelligent Solar and Energy Storage Solutions July 2023 Investor Presentation 1
Slide 2: Disclaimers - Forward Looking Statements
Disclaimers 2 Forward Looking Statements Certain statements included in this Presentation are not historical facts but are forward - looking statements, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 . Forward - looking s
Slide 3: Tigo's Mission
Tigo’s Mission Tigo ’s mission is to deliver smart hard ware and software solutions that enhance safety , increase energy yield , and lower operating costs of residential, commercial, and utility - scale solar systems Energy Intelligence (EI) ATS EI Inverter TS4 Flex MLPE EI Battery Energy Intellige
Slide 4: Investment Highlights
Growing Share Solar Optimizer & Inverter space is serviced predominantly by two suppliers; customers are seeking multiple suppliers 400+ Customers Diverse and expanding global customer base with substantial new wins Healthy Gross Margins (2) Optimized architecture with low component count reduces co
Slide 5: Market Overview
Tigo Market Overview
Slide 6: TAM is Estimated to Be $124 Billion by 2025
TAM is Estimated to Be $124 Billion by 2025 $110B (2) Global cumulative TAM for battery storage + inverters $14B (1) Residential, C&I, and Utility MLPE TAM EI Solution MLPE 6 1) Source: IHS PV Inverter Market Tracker – Second Quarter 2021. 2) Source: Wood Mackenzie Global Energy Storage Market Outlo
Slide 7: Solar and Storage: The Forefront of Renewables Expansion
Solar and Storage: The Forefront of Renewables Expansion 7 Significant Expected Growth in Solar and Storage 0 100 200 300 400 500 North America & Carribbean Europe ROW New - build Forecast (GW) 0 100 200 300 400 500 North America Europe ROW Cumulative Capacity (GW) Sources: DOE, Greentech Media, Sol
Slide 8: Markets are experiencing tailwinds stronger than ever in the US and Europe
Markets are experiencing tailwinds stronger than ever in the US and Europe 8 Inflation Reduction Act (IRA) REPowerEU $600bn Clean energy investment under the IRA through 2030 (1) (Announced in 2022, signed in 2022) €300bn Clean energy investment under REPowerEU through 2030 (2) (Announced in 2022, a
Slide 9: Tigo Business Overview
Tigo Tigo Business Overview
Slide 10: Tigo at a Glance
Tigo at a Glance Select Customers & Partners Key Highlights $81M | $50M 2022A Tigo Makes Solar Energy Better Tigo’s Module - Level Power Electronics (“MLPE”) and Energy Intelligence (“EI”) Solution improve the safety, energy yield, and cost of solar across all three end markets (Residential, C&I, an
Slide 11: Tigo MLPE and Energy Storage Solutions
Solar Module Not made by Tigo EI Software Energy Management Inverter Battery Automatic Transfer Switch (“ATS”) MLPE / Optimizer Offering a one - stop shop solution Tigo B undles Proprietary Hardware and Software Into an E asy - to - U se Platform Tigo MLPE and Energy Storage Solutions 11 Grid 96% 20
Slide 12: Approximately 76% of Rooftops in the US Could Benefit From MLPE Solutions
Approximately 76% of Rooftops in the US Could Benefit From MLPE Solutions 12 100% 90% 81% 24% 10% exposed to tree shading Another 10% exposed to other shading Another 70% are facing problematic orientations Source: TYGO Whitepaper — Maximizing Energy Harvest; Wood Mackenzie. 1) “EBOS” = Electrical b
Slide 13: Our Solutions Are Strategically Placed to Enhance Solar Yields
Our Solutions Are Strategically Placed to Enhance Solar Yields 13 • MLPE / Optimizer • Battery • Inverter • ATS • EI Software • Energy Management • Solar Panel (not made by Tigo) • Grid Tigo Energy Intelligence “EI” Offering Tigo offers a one - stop shop solution
Slide 14: Tigo's Family of MLPE Solutions
Tigo’s Family of MLPE Solutions Five MLPE Features Cater to All Solar End Markets MLPE Energy Intelligence Price & Functionality TS4 - A - M TS4 - A - F TS4 - A - 2F TS4 - A - S TS4 - A - O Equipment Required • CCA + TAP (1) Functions • Monitoring Equipment Required • RSS Transmitter (1) Functions •
Slide 15: Tigo MLPE Serves All Three Solar Markets
Tigo MLPE Serves All Three Solar Markets • 13 kW • Residential • Australia Commercial • 531 kW • Commercial rooftop • California, USA Residential Utility • 16 MW • Floating PV • Israel 15 MLPE Energy Intelligence Performance Optimization | Increase E nergy O utput Tigo optimizers increase energy out
Slide 16: Tigo's Energy Intelligence Solution
Tigo’s Energy Intelligence Solution System Monitoring Building Loads • Tigo MLPE and Tigo cloud - enabled inverter with proprietary technology • Tigo DC - coupled battery system • Provides energy savings over traditional AC - coupled storage systems (1) • Integrated energy management system • Expand
Slide 17: Tigo's Software and Analytics Offering
Tigo’s Software and Analytics Offering Software and Analytics platform provides a holistic energy management capability, powered by module - level monitoring and machine learning Software: Origination/Design • Site Assessment • Design / Proposal • Permitting / Code Compliance • Construction Document
Slide 18: Years of R&D, Testing and Certification Have Created a Strong Competitive Position
Years of Research, Development, Testing and Certification Have Created a Strong Competitive Position Tigo’s 1 40 (1) patents confer a substantial competitive advantage Tigo is uniquely positioned for today’s higher - power modules • Cost effective: Decades of experience designing solutions that mini
Slide 19: Technology Advantages
Technology Advantages 19 Tigo possesses key competitive advantages on price, performance, and flexibility 140 Patents (1) Patent - protected technology moat driven by strong R&D and culture of innovation Selective Optimization & Deployment Selective optimization uses less energy and increases reliab
Slide 20: EBOS Solutions Are Mission Critical
EBOS solutions are mission critical… 18% 15% 13% 5% 5% 16% 14% 14% Efficient Solutions That Reduce Soft Costs 20 Source: NREL - U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 20 22. Illustrative US residential rooftop solar cost track I
Slide 21: Illustrative Architectures: DC-Coupled vs AC-Coupled Systems
Illustrative Architectures Tigo’s DC - Coupled System Delivers Higher Energy Savings at a Lower Cost Compared to AC - Coupled Systems Competitor AC - Coupled Systems (Multiple Inverters) Tigo’s DC - Coupled Optimized System (One Inverter) 21 DC AC Tigo Hybrid Inverter “Smart Energy Orchestrator” DC
Slide 22: Financial Overview
Tigo Financial Overview
Slide 23: 2022 Financial Highlights
2022 Financial Highlights 23 $81M 2022A Revenue $2.5M 2022A Adj. EBITDA (3) 27% | 64% | 9% 2022 Revenue NA | EMEA | ROW (2) 86%+ Y/Y Revenue Growth (1) $124B Total Addressable Market 30% 2022A Gross Margin 1) 2022A Revenue Growth. 2) “NA | EMEA | ROW” refers to North America; Europe, Middle East and
Slide 24: Revenue, Gross Profit and Adj. EBITDA 2021A-2022A
86% Revenue and YoY Growth $43.6 $81.3 2021A 2022A Gross Profit and Gross Margin $12.6 $24.8 2021A 2022A 30% 29% Adj. EBITDA and Adj. EBITDA Margin (1) ($3.1) $2.5 2021A 2022A 3% NM 24 Note: All figures presented in millions of US dollars. A reconciliation of non - GAAP metrics is provided in the Ap
Slide 25: Scaling with Profitable Growth
Scaling with Profitable Growth 25 - 1.4 0.7 0.4 2.7 8.6 -2 0 2 4 6 8 10 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adj. EBITDA Adj. EBITDA 9.8 17.3 22.3 28.7 44.7 0.1 0.3 0.5 2.3 5.4 0 10 20 30 40 50 60 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Total Revenue MLPE & Other EI Solutions 2.7 5.5 6.6 10.0 18.
Slide 26: 2022A Revenue by Customers and Geography
2022A Revenue by Customers (1) 2022A Revenue by Geography Diverse Array of Global Customers Distributors Key Accounts Tigo aims to expand business with existing and new customers / partners 11% 5% 5% 4% 4% 3% 3% 3% 3% 3% 3% 53% 26 Inverters & Panels Partners New Customers / Partners Americas 27% EME
Slide 27: Tigo's Financial Strengths
Tigo’s Financial Strengths Generating significant revenue growth today Compelling growth propelled by new products and services and new customer wins Attractive gross margin expected to expand over time through higher mix of value - added MLPEs, EI systems, and software / analytics Capital - light b
Slide 28: Appendix
Tigo Appendix
Slide 29: Why Customers Choose Tigo
Why Customers Choose Tigo Tigo Offers Lower Cost Systems with Higher Energy Output, Resulting in More Attractive ROI 29 • Rapid Shutdown • Module - level monitoring software • Hybrid Inverter • ATS • Battery Storage • Software & Analytics • Increased energy yield through selective optimization • Hig
Slide 30: EBITDA Reconciliation (Yearly)
EBITDA Reconciliation (Yearly) 30 1) Adj. EBITDA excludes stock - based compensation and M&A transaction costs. 2022 A 2021 A Calendar Year ($7.0) ($4.9) Net Income 6.0 1.0 + Total other expenses, net 0.1 0.2 + Provision for income taxes 0.6 0.4 + Depreciation & Amortization ($0.3) ($3.3) EBITDA 0.8
Slide 31: EBITDA Reconciliation (Quarterly)
EBITDA Reconciliation (Quarterly) 31 1) Adj. EBITDA excludes stock - based compensation and M&A transaction costs. Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Calendar Year $6.9 $0.9 ($2.4) $0.2 ($5.7) Net Income 0.9 1.3 0.4 0.4 4.1 + Total other expenses, net - 0.1 - - - + Provision for income taxes 0.