Ftc Solar, Inc. · NASDAQ:FTCI
Ftc Solar — Investor Presentation (August 2021)
51 slides from Ftc Solar's investor presentation, August 2021
Slide 1: August 2021 Investor Presentation
August 2021 Investor Presentation
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: Introductions
Introductions 3 Tony Patrick T.J. Etnyre Cook Rodgers Chief Executive Officer Chief Financial Officer Chairman of the Board Member of Board of Directors • Appointed CEO March 2019, Previously VP of • 10+ years of experience in the renewable • Founder of Cypress Semiconductor and CEO for Operations a
Slide 4: Agenda
Agenda 4 • Company Overview • Market Overview • Technology & Positioning • Growth Drivers • Financial Overview __________________________________________________________________________________ Appendix
Slide 5: Company Overview
Company Overview
Slide 6: FTC Solar Today
FTC Solar Today 6 About Us Key Metrics (6.30.2021) Installed Base: >2.5GW FTC Solar is a fast-growing provider of tracker systems, software and Customers2: 140 engineering services to the solar energy industry Employees: 178 Tracker Systems Software Engineering Services Patents (Granted or Pending)
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: Our Growth Roadmap
Our Growth Roadmap 10 Drive long-term advantages Market Value Optimize business and efficiently scale Build foundation and establish market position Today Time 2017-1H’21 Near Term Medium to Long Term Build strong team w/R&D, supply chain • Continue to scale U.S. revenue • Develop additional value
Slide 11: Global Supply Chain
Global Supply Chain 11 Turkey Posts Korea Beams Posts Rails Beams Hardware Rails China Posts Beams Rails Steel U.S.A. Hardware Posts Spain Canada Controllers Beams Posts Steel Dampers Steel Beams Taiwan Slew Drives Hardware Rails Controllers* Sensors Controllers Hardware Slew Drives Slew Drives* Dam
Slide 12: Key Investment Highlights
Key Investment Highlights 12 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%) • Jan 1. contracted & awarded up 100% y/y to • Trackers gr
Slide 13: FTC's Distinct Competitive Advantage
FTC’s Distinct Competitive Advantage 13 Higher Focused on Value Based Dedicated to Triple Growth Multiplier Profitability & Cash Selling Shareholders Generation High and continued growth in Profit Expansion: FTC executives and Board We are employee and solar market globally • Lower steel con
Slide 14: Our Commitment to ESG
Our Commitment to ESG 14 Our Purpose We help accelerate the adoption of renewable solar energy by reducing the cost of construction, simplifying the installation process, and improving the energy yield of solar projects, helping the global transition away from fossil fuels Our Strategy Environmental
Slide 15: Market Overview
Market Overview
Slide 16: The Emergence of the Solar Market
The Emergence of the Solar Market 16 The solar energy industry has grown as its associated costs have decreased 40% of all new electric capacity added to the grid came from solar energy in 2019, representing the largest such share in history Historical LCOE of Renewables and Utility-Scale Batteries1
Slide 17: Solar Market Poised for Sustained Growth
Solar Market Poised for Sustained Growth 17 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 18: The Solar Market is Transitioning to Trackers
The Solar Market is Transitioning to Trackers 18 Trackers are growing 3x 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 U.S. ground-mounted PV installations over 1MW (MW) Tracker percentage of g
Slide 19: Further Innovation Supports the Transition to Trackers
Further Innovation Supports the Transition to Trackers… 19 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 20: Technology & Positioning
Technology & Positioning
Slide 21: FTC Solar 2P Solutions Offer Unique Advantages
FTC Solar 2P Solutions Offer Unique Advantages 21 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 22: All the Advantages of 2P – Design Flexibility & Panel Density
A All the Advantages of 2P – Design Flexibility & Panel Density 22 (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 23: All the Advantages of 2P – Site Accessibility
A All the Advantages of 2P – Site Accessibility 23 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 24: Reduced Part Count
B Reduced Part Count 24 (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 25: Direct Current Collections Advantage
25 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 26: Industry-Leading Install Speed and Low Labor Costs
D Industry-Leading Install Speed and Low Labor Costs 26 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 27: High Slope Tolerance
E High Slope Tolerance 27 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 28: Performance Software
F Performance Software 28 SunPath 1 Terrain-Based 2 Array Level 3 Diffuse Light 4 Bifacial Yield Backtracking Backtracking Optimization Optimization Up To 4% Yield Improvement1 Up To 6% Yield Improvement Up To 2% Yield Improvement Up To 2% Yield Improvement Terrain flexibility & Terrain flexibility
Slide 29: Intellectual Property Overview
Intellectual Property Overview 29 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 30: Our Value Proposition is Being Recognized By Customers
Our Value Proposition is Being Recognized By Customers 30 • We have achieved proven growth in U.S., one of the most challenging global markets • We see strong customer adoption, even in the early stages of our partnerships Rapid Market Penetration Engineering, Procurement, and Construction Firms 67%
Slide 31: Customer Case Study
Customer Case Study 31 EPC Customer Prospective customer invited to FTC Solar’s SolarTac research center in Colorado to see an actual Voyager tracker setup FTC Solar was selected by customer for Astute customer’s depth of analysis into constructability - evaluating first project due to constructabil
Slide 32: Growth Drivers
THAN CANN WS Oe 1 HIN . y Growth Drivers
Slide 33: Multiple Growth Drivers for Further Upside
Multiple Growth Drivers for Further Upside 33 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 34: Broaden and Deepen Customer Relationships
Broaden and Deepen Customer Relationships 34 Deepen Existing U.S. • Transition from single-project sales to multi-project • Drive strong repeat business as a result of positive Customer Agreements engagements with existing customers customer experiences Focus on larger and longer-term contracts with
Slide 35: Expand Value per Unit
Expand Value per Unit 35 • Expand high-margin, recurring revenue software opportunities that strengthen our customer relationships through additional Promote Yield optimization Solar design Portfolio management engagement and service Multiple Related Software Solutions Our software solutions continu
Slide 36: Increase Operating Leverage Through Scale
Increase Operating Leverage Through Scale 36 • Nimble, flexible asset-light model can scale quickly – currently 8GW of annual capacity • Leverage scalable corporate infrastructure in the U.S. Employee Distribution Drive Operating Efficiency • Achieve additional purchasing leverage with scale India,
Slide 37: Financial Overview
Financial Overview
Slide 38: Contracted & Awarded Orders
Contracted & Awarded Orders 38 Annual Awarded / Executed Contracts at Start of Year vs. Ending Revenue ($mm) 1 $284 • Entered 2021 with double prior year’s Jan. 1 $310 contracted & awarded orders ($109mm vs. Target $54mm) Minimum As of Aug. 11 • As of August 1, 2021, contracted & awarded orders for
Slide 39: Strong Growth Trajectory, Business Momentum
Strong Growth Trajectory, Business Momentum 39 Revenue Net Cash Position ($mm) ($mm) $310 $150 $187 $32 $53 $0.1 FY19 FY20 FY21E FY19 FY20 June '21
Slide 40: Margin Improvement – Cost Roadmap
Margin Improvement – Cost Roadmap 40 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 41: Second Quarter Highlights
Second Quarter Highlights 41 2Q revenue of $50.1 million, above high-end of guidance range. 1H revenue up 39% y/y Added $419 million to executed contracts and awarded orders YTD*, including $203 million since June 1 Continuing to win new customers, including another top 5 EPC firm Recognized first r
Slide 42: Q2 Financial Performance
Q2 Financial Performance 42 (in thousands, except per share data and percentages) See reconciliations of all non-GAAP to GAAP measures in the appendix to this presentation.
Slide 43: FTC Solar's Positioning & Actions Taken In Current Environment
FTC Solar’s Positioning & Actions Taken In Current Environment 43 Balance Sheet Commodities & Logistics • Shared some logistics increase with customer • Added $181 million cash from IPO • Transitioning to alternative logistics methods in Q4 • Added $22 million from sale of minority investment • Prov
Slide 44: Simple Reasons to Invest
Simple Reasons to Invest 44 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 45: Appendix
Appendix
Slide 46: Reconciliation of GAAP to Non-GAAP information
Reconciliation of GAAP to Non-GAAP information 46 Years Ended December 31, 2019 2020 Net loss $ (13,495) $ (15,924) Income tax benefit (39) (83) Interest expense, net 454 480 Depreciation expense 12 13 Amortization of intangibles 400 33 Stock-based compensation 906 1,818 Loss (Income) from unconsoli
Slide 47: Reconciliation of GAAP to Non-GAAP information
Reconciliation of GAAP to Non-GAAP information 47 Years Ended December 31, 2019 2020 Loss EPS Loss EPS (in thousands, except per share data) Net loss and EPS $ (13,495) (1.79) $ (15,924) (1.91) Amortization of intangibles 400 0.05 33 0.00 Stock-based compensation 906 0.12 1,818 0.22 Loss (Income) fr
Slide 48: Reconciliation of Non-GAAP Gross Margin and Operating Expense
Reconciliation of Non-GAAP Gross Margin and Operating Expense 48
Slide 49: Reconciliation of Non-GAAP Operating Income
Reconciliation of Non-GAAP Operating Income 49
Slide 50: Reconciliation of Non-GAAP Net Income
Reconciliation of Non-GAAP Net Income 50
Slide 51: Notes to Reconciliations of Non-GAAP Financial Measures
Notes to Reconciliations of Non-GAAP Financial Measures 51