Slide 1: Fourth Quarter 2022 Earnings Summary
Fourth Quarter 2022 Earnings Summary February 13, 2023
Slide 2: Safe Harbor
Safe Harbor Use of Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include information, among other things, our business, results of operations, financial con
Slide 3: Fourth Quarter 2022 Key Metrics
Fourth Quarter 2022 Key Metrics 217.6MW/h Batteries Capacity Shipped 6.7M 3.1GW Power Optimizers Systems Shipped Shipped 315.3K $890.7M GAAP Revenues Inverters Shipped 3
Slide 4: 2022 Key Metrics
2022 Key Metrics 889MW/h Batteries Capacity Shipped 23.7M 10.5 GW Power Optimizers Systems Shipped Shipped 1.0M $3.1B Inverters Shipped GAAP Revenues 4
Slide 5: Fourth Quarter Financial Results
Fourth Quarter Financial Results Record GAAP revenue of $890.7 million Record revenue from solar segment of $837.0 million Record revenues from non-solar segment of 53.6$ million GAAP gross margin of 29.3% Non-GAAP gross margin of 30.2% Gross margin from sales of solar segment 32.4% Record Non-GAAP
Slide 6: 2022 Financial Results
2022 Financial Results Record GAAP revenue of $3.1 billion Record revenue from solar segment of $2.9 billion Record revenues from non- solar segment of $188.5 million GAAP gross margin of 27.2% Non-GAAP gross margin of 28.2% Gross margin from solar segment 29.8% Record Non-GAAP operating income of $
Slide 7: Noteworthy
Noteworthy Record GAAP annual revenues for both solar and non solar businesses, up 58% year over year Record quarterly revenues in both solar and non solar business Record quarterly solar revenues in the Netherlands, Spain, France and Brazil Strong operational quarter with improved gross margins yie
Slide 8: Quarterly GAAP Financial Results
Quarterly GAAP Financial Results USD in millions* Q4 21 Q3 22 Q4 22 Revenues 551.9 836.7 890.7 Gross margin 29.1% 26.5% 29.3% Operating expenses 119.5 137.6 266.2 Operating income 41.0 84.4 )5.2( Net income 41.0 24.7 20.8 Net diluted earnings per share 0.74 0.43 0.36 * With the exception of gross ma
Slide 9: Annual GAAP Financial Results
Annual GAAP Financial Results USD in millions* 2020 2021 2022 Revenues 1,459.3 1,963.9 3,110.3 Gross margin 31.6% 32.0% 27.2% Operating expenses 318.8 422.2 678.5 Operating income 142.6 207.1 166.1 Net income 140.3 169.2 93.8 Net diluted earnings per share 2.66 3.06 1.65 * With the exception of gros
Slide 10: Quarterly Non-GAAP Financial Results
Quarterly Non-GAAP Financial Results USD in millions* Q4 21 Q3 22 Q4 22 Revenues 551.8 836.6 890.5 Gross margin 30.3% 27.3% 30.2% Operating expenses 94.1 108.3 119.0 Operating income 72.9 120.2 149.6 Net income 62.8 54.1 171.5 Net diluted earnings per share 1.10 0.91 2.86 * With the exception of gro
Slide 11: Annual Non-GAAP Financial Results
Annual Non-GAAP Financial Results USD in millions* 2020 2021 2022 Revenues 1,459.3 1,963.4 3,109.7 Gross margin 33.0% 33.5% 28.2% Operating expenses 263.5 335.6 435.9 Operating income 218.8 321.4 441.7 Net income 224.4 272.9 351.2 Net diluted earnings per share 4.11 4.81 5.95 * With the exception of
Slide 12: Units Shipped by Quarter
Units Shipped by Quarter Power optimizers Inverters 6,674 315.3 6,123 5,724 264.5 5,011 5,123 5,215 4,699 230.8 228.4 211.1 197.3 181.9 179.5 3,614 3,735 165.7 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 units in thousands
Slide 13: Annual Units Shipped
Annual Units Shipped Power optimizers Inverters 23,736 1,019.3 18,568 789.6 15,801 15,462 665.5 661.9 11,352 455.8 7,368 317.3 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 units in thousands
Slide 14: Quarterly GAAP Revenues
Quarterly GAAP Revenues 890.7 836.7 727.8 655.1 551.9 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 in USD millions
Slide 15: Annual GAAP Revenues
Annual GAAP Revenues 3,110.3 1,963.9 1,425.7 1,459.3 937.2 2018 2019 2020 2021 2022 in USD millions
Slide 16: Gross Margin by Quarter
Gross Margin by Quarter GAAP Non-GAAP 29.1% 29.3% 30.3% 30.2% 27.3% 28.4% 26.5% 27.3% 26.7% 25.1% Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22
Slide 17: Annual Gross Margin
Annual Gross Margin GAAP Non-GAAP 34.1% 33.6% 34.6% 34.9% 33.0% 33.5% 31.6% 32.0% 27.2% 28.2% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Slide 18: Quarterly Solar Segment Gross Margin
Quarterly Solar Segment Gross Margin 32.8% 32.4% 30.2% 28.1% 28.3% Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 % of revenues
Slide 19: Annual Solar Segment Gross Margin
Annual Solar Segment Gross Margin 35.4% 36.2% 36.4% 35.0% 29.8% 2018 2019 2020 2021 2022 % of revenues
Slide 20: Consolidated Operating Expenses by Quarter
Consolidated Operating Expenses by Quarter GAAP Non-GAAP 29.9% 17.1% 3.2% 15.1% 15.1% 3.0% 2.8% 12.9% 13.4% 21.6% 12.9% 20.1% 2.5% 19.6% 2.4% 4.0% 0.6% 4.9% 4.0% 3.9% 16.4% 4.3% 4.4% 6.0% 3.3% 3.4% 4.0% 3.9% 5.4% 5.4% 5.1% 4.8% 8.9% 7.8% 7.9% 11.7% 10.1% 10.3% 6.6% 6.9% 8.3% 8.9% -0.3% Q4-21 Q1-22 Q
Slide 21: Annual Consolidated Operating Expenses
Annual Consolidated Operating Expenses GAAP Non-GAAP 21.8% 21.5% 21.8% 18.1% 20.3% 0.1% 17.1% 19.2% 4.3% 3.7% 16.0% 15.5% 3.6% 2.2% 4.2% 2.2% 3.4% 3.1% 14.0% 3.5% 2.9% 3.6% 2.7% 6.6% 6.1% 5.2% 4.9% 7.3% 6.3% 6.2% 5.1% 5.3% 4.1% 11.2% 11.2% 9.3% 8.8% 8.8% 8.5% 9.3% 7.5% 7.3% 7.2% -0.2% 2018 2019 2020
Slide 22: Quarterly Consolidated Operating Income
Quarterly Consolidated Operating Income GAAP Non-GAAP 84.4 149.6 120.2 50.9 87.2 84.7 41.0 72.9 36.0 -5.2 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 USD millions *Q4-22 Intangible asset impairment $114.5M (E-Mobility $107.4M , Automation Machines $7.1M)
Slide 23: Annual Consolidated Operating Income
Annual Consolidated Operating Income GAAP Non-GAAP 207.1 441.7 189.9 166.1 321.4 139.4 142.6 276.8 218.8 174.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 USD millions *Q4-22 Intangible asset impairment $114.5M (E-Mobility $107.4M , Automation Machines $7.1M)
Slide 24: Quarterly Consolidated Net Income
Quarterly Consolidated Net Income GAAP Non-GAAP 41.0 171.5 33.1 24.7 20.8 68.8 15.1 62.8 56.7 54.1 Q4-21 Q1-22 Q2-22 Q3 22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 USD millions *Q4-22 Intangible asset impairment $114.5M (E-Mobility $107.4M , Automation Machines $7.1M)
Slide 25: Annual Consolidated Net Income
Annual Consolidated Net Income GAAP Non-GAAP 169.2 351.2 146.5 140.3 128.8 272.9 233.2 224.4 93.8 157.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 USD millions *Q4-22 Intangible asset impairment $114.5M (E-Mobility $107.4M , Automation Machines $7.1M)
Slide 26: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q4 21 Q3 22 Q4 22 Cash and investments 1,181.9 1,571.3 1,671.6 Total Debt* 633.9 633.7 633.6 Cash and Investments Net of Debt 548.0 937.6 1,038.0 Inventory 380.1 561.4 729.2 Capital Expenditures, Net 57.4 31.5 43.6 Cash Flow From Operations 89.6 5.6 111.3 *
Slide 27: First Quarter Guidance
First Quarter Guidance Revenue to be within the range of $915 million to $945 million Non-GAAP gross margin expected to be within the range of 28% to 31% Non-GAAP operating profit expected to be within the range of $150 million to $170 million Revenue from solar segment to be within the range of $87
Slide 28: Appendix
Append Sis ve te ew IX 9@ solar =>
Slide 29: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Gross profit (GAAP) 261,047 222,001 160,491 844,648 629,318 Revenues from finance component (174
Slide 30: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Operating expenses (GAAP) 266,210 137,594 119,453 678,528 422,179 Stock-based compensation
Slide 31: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial expenses (income), net Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Financial income (expense), net (GAAP) 56,101 (33,025) (6,324) 3,316 (19,915
Slide 32: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income (GAAP) 20,829 24,743 40,954 93,779 169,170 Revenues from finance component (174) (159)
Slide 33: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net basic earnings per share (GAAP) 0.37 0.44 0.78 1.70 3.24 Revenues from finance component 0.
Slide 34: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended Year ended December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net diluted earnings per share (GAAP) 0.36 0.43 0.74 1.65 3.06 Revenues from finance componen