Tigo Energy, Inc. · NASDAQ:TYGO
Tigo Energy — SPAC Merger (December 2022)
48 slides from Tigo Energy's SPAC merger presentation, Dec 6, 2022
Slide 1: Intelligent Solar and Energy Storage Solutions Investor Presentation
Intelligent Solar and Energy Storage Solutions December 2022 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer 2 Basis of Presentation This Presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist intereste d p arties in making their own evaluation with respect to an investment in connection with a potential business combination betwe en Tigo E
Slide 3: Disclaimer (cont'd): Forward Looking Statements
Disclaimer (cont’d) 3 Forward Looking Statements Certain statements included in this Presentation are not historical facts but are forward - looking statements, including for purp oses of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward - l
Slide 4: Disclaimer (cont'd): Use of Projections
Disclaimer (cont’d) 4 Use of Projections This Presentation contains projected financial information with respect to Tigo , namely revenue, year - over - year growth, gross profit, gross profit margin, operating expenses, operating income (loss), Adjuste d EBITDA, Adjusted EBITDA margin, capital expe
Slide 5: Proposed Transaction Summary
Proposed Transaction Summary 5 The Business • Tigo Energy, Inc. (“ Tigo ”) is a leading provider of critical solar solutions that improve safety, energy yield, & operating costs for solar . Product offerings include Module - Level Power Electronics (“MLPE”), inverter, energy storage, and integrated
Slide 6: What ROCG Likes About Tigo
What ROCG Likes About Tigo 6 1) All comparisons in the Presentation are against Enphase and SolarEdge. x Tigo provides a leading solar solution in a highly attractive category with significant tailwinds globally ▪ The passage of the Inflation Reduction Act (“IRA”) in the US and energy dislocation in
Slide 7: 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 8: 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 30% Gross Margins (2) Optimized architecture with low component count reduces cost b
Slide 9: Market Overview
Tigo Market Overview
Slide 10: Solar and Storage: The Forefront of Renewables Expansion
157 125 98 79 64 55 50 43 40 37 36 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2011 2013 2015 2017 2019 2021 Solar Nuclear Wind CCGT Coal 946 744 684 607 393 303 226 185 161 140 132 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2011 2013 2015 2017 2019 2021 Observed Price LCOE Real Prices (
Slide 11: Solar and Storage: Europe Primed for Significant Growth
Average Household Electricity Prices in Europe (€ per MWh) Europe Distributed Energy Storage Outlook (GW) Higher Electricity Prices + Solar Market Growth = Residential Storage Demand in Europe Electricity prices have been increasing at a drastic rate since 2021 with the price per MWh increasing 378%
Slide 12: Solar and Storage: US Primed for Significant Growth
Solar and Storage: US Primed for Significant Growth 12 Source: Enphase earnings call, SEIA Inflation Reduction Act Summary Report, Norton Rose Fulbright Project Finance Law. AMPC ITC & PTC 30% Tax credit residents installing solar systems 10 - year Extension of full PTC / ITC values to at least 2032
Slide 13: TAM is Estimated to Be $115 Billion by 2025
TAM is Estimated to Be $115 Billion by 2025 $61B (2) Global cumulative TAM for battery storage $54B (1) Residential, C&I, and Utility MLPE TAM $115 B illion Market Opportunity for Tigo Residential Storage MLPE & Inverters 13 1) Source: IHS Markit Solar PV Inverter Market Overview. 2) Source: SolarEd
Slide 14: Tigo Business Overview
Tigo Tigo Business Overview
Slide 15: Tigo at a Glance
Tigo at a Glance Select Customers & Partners Key Highlights $80M 2022E Revenue 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, a
Slide 16: Tigo MLPE and Energy Storage Solutions
Solar Module Not made by Tigo EI Software Energy Management Inverter Battery Automatic Transfer Switch (“ATS”) MLPE / Optimizer Tigo offers a one - stop shop solution Energy Intelligence “EI” Offering Tigo B undles Proprietary Hardware and Software Into an E asy - to - U se Platform Tigo MLPE and En
Slide 17: Illustrative Diagram of Tigo Solutions
Illustrative Diagram of Tigo Solutions 17 • 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 18: 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 18 MLPE Energy Intelligence Performance Optimization | Increase E nergy O utput Tigo optimizers increase energy out
Slide 19: 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 20: 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 21: 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 22: Technology Advantages
Technology Advantages 22 Tigo possesses key competitive advantages on price, performance, and flexibility 115 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 23: Years of R&D, Testing and Certification Create a Strong Competitive Position
Years of Research, Development, Testing and Certification Have Created a Strong Competitive Position Tigo’s 115 (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 minim
Slide 24: Resilient Supply Chain
Resilient Supply Chain Tigo has secured sufficient components and production capacity to meet forecasted demand through 2023E Utilization Capacity Orders Contract Manufacturers Multi - sourced, flexible, and scalable contract manufacturers in Asia Manufacturing Capacity Expansion Tigo seeks to expan
Slide 25: Why Customers Choose Tigo
Why Customers Choose Tigo Tigo Offers Lower Cost Systems with Higher Energy Output, Resulting in an Immediate and More Attractive ROI 25 • Rapid Shutdown • Module - level monitoring software • Hybrid Inverter • ATS • Battery Storage • Software & Analytics • Increased energy yield through selective o
Slide 26: Tigo Compares Favorably Against Peers
Tigo Compares Favorably Against Peers Closed: D C - Coupled Inverter Architecture (3) Compatible w/ Lower Cost Battery Chemistries (4) Software/Analytics Offering MLPE + Inverter Price (1) ~33 - 34¢/watt (2) ~37 - 38¢+/watt (2) Closed : AC - Coupled MLPE x x Open : DC - Coupled ~17 - 19¢/watt End Ma
Slide 27: Strong Leadership Team to Drive Growth
Strong Leadership Team to Drive Growth Anita Chang Chief Operations Officer 20+ years experience Danny Eizips Vice President of Engineering 20+ years experience Archie Roboostoff Vice President of Software 20+ years experience JD Dillon Chief Marketing Officer 20+ years experience Jing Tian Chief Gr
Slide 28: Financial Overview
Tigo Financial Overview
Slide 29: Strong Bookings & Backlog Provide Meaningful Visibility
$3 $27 $5 $6 $2 $4 Q3 2021 Q3 2022 Strong Bookings & Backlog Provide Meaningful Visibility Backlog (2) Q4 2021 11/30/22 $16M $99M 2022E Revenue Bridge Tigo is experiencing rapid expansion across geographies, providing strong revenue visibility Bookings (1) by Geography $10M $37M 3.7x Growth 29 EMEA
Slide 30: Diverse Array of Global Customers
YTD Q3 2022A Revenue by Customers YTD Q3 2022A Revenue by Geography Diverse Array of Global Customers Distributors Key Accounts Tigo aims to expand business with existing and new customers / partners 9% 6% 5% 4% 4% 4% 4% 4% 4% 4% Others 53% 30 Inverters & Panels Partners New Customers / Partners Ame
Slide 31: Financial Summary and Forecast
Financial Summary and Forecast 83% Revenue and YoY Growth $43.6 $80.0 2021A 2022E Gross Profit and Gross Margin $12.6 $24.1 2021A 2022E 30% 29% Adj. EBITDA and Adj. EBITDA Margin (1) ($3.1) $4.1 2021A 2022E 5% NM Adj. EBITDA Less CapEx and Conversion (2) 4% ($3.4) $3.3 2021A 2022E NM 31 Note: All fi
Slide 32: Tigo's Financial Strengths
Tigo’s Financial Strengths Generating revenue 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 business model Scala
Slide 33: Transaction Summary
Tigo Transaction Summary
Slide 34: Pro Forma Ownership and Detailed Transaction Overview
Pro Forma Ownership Existing Tigo Shareholders 82.2% ROCG Public Shareholders 15.7% ROCG Sponsors 1.7% Transaction Fees 0.4% Detailed Transaction Overview 34 Sources and Uses Sources SPAC Cash in Trust (1) $117 Stock Consideration to Existing Tigo Shareholders (2) 600 Total Sources $717 Uses Stock C
Slide 35: Transaction Rationale and Expected Use of Proceeds
Market Dynamics Transaction Rationale Expected Use of Proceeds Tigo is experiencing strong demand, and customers are asking for deeper integration with Tigo MLPE, inverter, and storage systems Skilled labor remains tight; public stock currency can help attract, retain, and incentivize top talent Int
Slide 36: Public Comparable Universe
Public Comparable Universe Attributes of Comp Universe • Comparable product and service offerings to Tigo • Module - level power electronics and inverters as well as software (analytics / monitoring) focused on solar deployment • Serve similar end markets Solar Optimizers and Inverters 36
Slide 37: Two Companies Dominate the US Residential Solar Inverter Market
Two Companies Dominate the US Residential Solar Inverter Market; Customers Seek Additional Suppliers (1) Peers’ stock price performance highlights the market’s focus on US Residential Solar. Tigo believes it can gain market share in the US Residential Solar Inverter market, because it offers solar c
Slide 38: Operational Benchmarking
Operational Benchmarking 2021 & 2022E Gross Margin 29% 40% 32% 30% 42% 27% Gross Margin 2021 Gross Margin 2022 Revenue YoY Growth (2021 - 2022E) 83% 67% 58% Operational Benchmarking 38 Peer Average 63% 38 Source: S&P Capital IQ as of 12/02/2022.
Slide 39: Valuation Benchmarking
Valuation Benchmarking 39 Valuation Benchmarking 39 Sources: Company projections and S&P Capital IQ as of 12/02/2022. EV/2022E Revenue 7.5x 19.7x 5.3x Peer Average 12.5x
Slide 40: Conclusions
Conclusions Large and Growing TAM Significant Technology Barriers Global, Diversified, and Expanding Customer Base Tigo Offers Customers a Lower Cost and Higher ROI Increasing Manufacturing Scale Deep and Experienced Management Team Winning Share from Incumbent Providers 40
Slide 41: Risk Factors
Tigo Risk Factors
Slide 42: Risk Factors
Risk Factors 42 All references to the “Company,” “we,” “us” or “our” refer to Tigo . The risks presented below are certain of the general risks related to the business of the Company and such list is not exha ust ive. The list below has been prepared solely for purposes of inclusion in this Presenta
Slide 43: Risk Factors (cont'd): Market Opportunity Risks
Risk Factors (cont’d) 43 Market Opportunity Risks • The market for our products is highly competitive and we expect to face increased competition as new and existing competitors in troduce or develop other smart energy products, which could negatively affect our results of operations and market shar
Slide 44: Risk Factors (cont'd): Intellectual Property and Technology
Risk Factors (cont’d) 44 Risks Related to Intellectual Property and Technology • Our patent applications may not result in issued patents, and our issued patents may not provide adequate protection, which m ay have a material adverse effect on our ability to prevent others from commercially exploiti
Slide 45: Appendix
Tigo Appendix
Slide 46: Tigo's Storage Architecture Advantages
Tigo’s Storage Architecture Advantages Tigo’s DC - Coupled System Delivers Higher Energy Savings at a Lower Cost Compared to AC - Coupled Systems AC - Coupled System Tigo’s DC - Coupled Optimized System 46 DC AC Tigo Hybrid Inverter “Smart Energy Orchestrator” DC Tigo Battery Includes high voltage M
Slide 47: Well-Positioned to Build on Past Success
Well - Positioned to Build on Past Success 47 2007 – 2013 2013 – 2019 2019 – 2022 Targets for the Future • Initial funding • Introduced smart module optimizer technology to the world • Release modular designs • Develop agile software • Penetrate the market • Zvi Alon joins with an investment • Produ
Slide 48: EBITDA Reconciliation
EBITDA Reconciliation 48 1) 2022E Adj. EBITDA excludes stock - based compensation, M&A transaction costs and public company costs. Calendar Year 2020A 2021 A 2022E Net Income ($6.2) ($4.9) ($2.6) + Interest Expense 5.5 2.5 3.6 + Provision for income taxes 0.0 0.2 0.0 + Depreciation & Amortization 0.