Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q1 2021 Earnings Presentation
18 slides from Canadian Solar's earnings presentation, May 20, 2021
Slide 1: Canadian Solar 1Q21 Earnings Call
Canadian Solar 1Q21 Earnings Call May 20, 2021
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: Focus on solar plus battery storage to strengthen our competitive advantage
Focus on solar plus battery storage to strengthen our competitive advantage Enhance the value of our storage assets through Fully integrating battery storage into our solar AI, big data and machine learning tools project development pipeline (MWh) Battery Q1 2021 storage assets In In Backlog Pipelin
Slide 4: Production of new N-type heterojunction (HJT) solar cells from Q1 2021
Production of new N-type heterojunction (HJT) solar cells from Q1 2021 CSIQ HJT pilot line cell efficiency ramp up 24.5%+ Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 H2 2021E Champion cell Average efficiency Delivery of latest technology solar modules to enhance CSIQ brand and pricing po
Slide 5: Proven track record developing & building over 5.7 GWp solar projects worldwide
Proven track record developing & building over 5.7 GWp solar projects worldwide Expanded our solar project development …and expect to exceed 7 GWp by track record to over 20 countries… the end of 2021 Regional mix Cumulative power plants built and connected, GWp Projects in North America constructio
Slide 6: Large global project pipeline of 21 GWp of solar projects across the world
Large global project pipeline of 21 GWp of solar projects across the world EMEA China (1) TOTAL MW 3,519 Pipeline MW 400 Backlog MW 1,900 Pipeline MW 80 Backlog 21 GWp MW 0 in Construction MW 0 in Construction MW 0 in Operation MW 302 in Operation Plants in Operation Calgary 0.5 GWp Walnut Creek Gue
Slide 7: Leading presence in markets with strong fundamentals
Leading presence in markets with strong fundamentals Nearly 6 GW of contracted projects secured Focus on low-risk, high growth markets by long-term PPAs North America: Potential legislations in the U.S. to allow CSIQ to capture greater value from solar and storage Average length of FIT/PPA contracts
Slide 8: Unparalleled expertise in the solar development value chain across 20+ jurisdictions
Unparalleled expertise in the solar development value chain across 20+ jurisdictions Development Execution Operation+ ation Origination, site selection, M&A Financing and structuring of debt Operations and maintenance (O&M): (greenfield and brownfield opportunities) and equity Maximize performance
Slide 9: Multiple levers of growth across project sales, services and investment vehicles
Multiple levers of growth across project sales, services and investment vehicles 2020 2021 2022 2023 2024 2025 Actual 1 Annual • COD MW mix approx. 30-50%, Development: +25% CAGR actual mix depends on market project 1.4 1.8 – 2.3 2.4 – 2.9 3.2 – 3.7 3.6 – 4.1 4.0 – 4.5 Project sales sales. GWp (mark
Slide 10: Increase value capture and earnings stability through capital partnerships
Increase value capture and earnings stability through capital partnerships Avg CSIQ Gross Type of AUM, Equity, market Entity Location owner- volume, assets $mn $mn CAFD ship MWp $/MW Optimize and maximize project CSIF (1) valuation relative to individual (Canadian Solar Operational Infrastructure Ja
Slide 11: Early developer of standalone and hybrid battery storage projects
Early developer of standalone and hybrid battery storage projects Total Battery Storage Development Pipeline, MWh Region In Operation In Construction Backlog Pipeline Total North America 3 1,201 1,100 8,405 10,709 Latin America 0 0 0 3,200 3,200 EMEA 0 0 0 1,314 1,314 Japan 0 0 0 5 5 Asia Pac ex. Ja
Slide 12: Cost inflation pressures have continued despite the recent decline in glass prices
Cost inflation pressures have continued despite the recent decline in glass prices 3.2 mm glass price (RMB/m2) Polysilicon price (RMB/kg) 167 170 42 43 43 43 150 +183% 135 40 130 35 113 110 98 95 88 30 91 29 29 29 28 82 85 90 78 81 26 26 24 24 24 23 70 59 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 13: First major module price hike in recent history
First major module price hike in recent history Module prices will continue to increase as long as Strong underlying demand, but in the short term, input costs do not adjust some projects may be delayed Global solar PV annual installations, GW Module ASP, USD/W Other 210 India 193 185 China 53 Centr
Slide 14: Quarterly income statement highlights
Quarterly income statement highlights USD millions except per share data 1Q20 4Q20 1Q21 qoq yoy FY19 FY20 yoy Net revenues 826 1,041 1,089 5% 32% 3,201 3,476 9% Gross margin 27.0% 13.6% 17.9% 430 bp -917 bp 22.4% 19.8% -260 bp Selling expenses 53 64 84 180 224 General and admin expenses 53 70 67 243
Slide 15: Quarterly balance sheet highlights
Quarterly balance sheet highlights USD millions 1Q20 2Q20 3Q20 4Q20 1Q21 Cash and equivalents 619 579 1,103 1,179 981 Restricted cash 504 416 459 461 542 Inventory 632 547 625 696 934 Short-term borrowings 910 1,016 1,065 1,202 1,217 Long-term borrowings on project assets – current 183 180 238 199 2
Slide 16: Guidance as of May 20, 2021
Guidance as of May 20, 2021 Q1 2021 Q2 2021G FY2020 FY2021G yoy ∆% Module 3.1 GW 3.5 – 3.7 GW 11.3 GW 18 – 20 GW c. +65% Shipments Revenue $1.1 bn $1.4 bn – $1.5 bn $3.5 bn $5.6 bn – $6.0 bn c. +70% Gross Margin 17.9% 9.5% – 10.5% 19.8% n/a n/a Q1 margin driven by contribution of high margin project
Slide 17: China IPO progress on track
Q2 2021 – 2022 China IPO progress on track • Feedback process with regulatory authorities and stock exchange • Roadshow / PDIE (pre-deal investor education) • Official listing Q2 2021 • Submit application to stock exchange April 2021 • Submit application to regulatory authorities Q1 2021 • Finan
Slide 18: Thank you
Cf -_ = sc CanadianSolar Thank you CSIQ Nasdaq Listed