Slide 1: Array Technologies 2Q 2021 Earnings
Array Technologies 2Q 2021 Earnings August 11, 2021 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements and Other Information This presentation contains forward-looking statements, as the term is used within federal securities laws. All statements other than those of historical fact which appear in this presentation, including (without limitation) statements regar
Slide 3: Business Update
™ Business Update 3 | iil ee | | “= ita i = ~§=6 Jim Fusaro —r Crag eet iM | asia 4 i. aa ase 4 —— See ie ye ; a i : FOLLOW THE SUN. ee FOLLOW THE LEADER.
Slide 4: Q2 2021 Business Update
Q2 2021 Business Update • Order book at record levels – $882 million of executed contracts and awarded orders as of June 30, 2021 Continued • 45% Growth year-over-year Strong Demand • Awarded an additional 18 new projects totaling approximately $135 million in July after the close of the quarter Sig
Slide 5: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights ($ in millions) Revenue Adjusted EBITDA(1) Order Book(2) $882.0 $202.8 $16.2 +23% +45% +76% $13.1 $606.0 $114.9 Q2 Q2 As of 2020 2021 2020 2021 30-Jun-20 30-Jun-21 ► Strong financial performance despite macro headwinds in commodities and logistics ► Order book growth hig
Slide 6: Q2 2021 Margins Impacted by Higher Input Costs
Q2 2021 Margins Impacted by Higher Input Costs Purchased Materials ($) / MW Gross Margin (%) Input Cost Environment ► Average hot rolled coil is up over 3x 19.3% from ~$500 in Q2 2020 to ~$1,500 in Q2 2021 13.2% ► Ocean freight cost per container has more than doubled ► Average aluminum price is up
Slide 7: Business Processes Changed to Reduce Exposure to Future Increases in Commodity Prices
Business Processes Changed to Reduce Exposure to Future Increases in Commodity Prices “Pre-Inflation” Process Design BOM Price Agreed Contract Project Finalized Ordered and Project Signed with Quoted and BOM from Awarded Customer Generated Suppliers Historical practice was to honor quotes Historical
Slide 8: Margin Improvement Will Be Gradual as "Pre-Inflation" Backlog "Burns Off"
Margin Improvement Will Be Gradual as “Pre-Inflation” Backlog “Burns Off” % of expected revenue from backlog booked under “pre-inflation” pricing and old sourcing process(1) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 ► Majority of existing backlog has “pre-inflation” pricing that was negotiated
Slide 9: Financial Update
Financial Update Nipul Patel 9
Slide 10: Q2 2021 Financial Results
Q2 2021 Financial Results Q2 Q2 ($ in millions, except EPS Data) Y/Y ► Revenue up 76% based on strong customer demand and easier comps 2021 2020 to 2020 which saw revenue pulled forward into Q1 from subsequent Revenue $202.8 $114.9 +$87.9 quarters as a result of the ITC step-down Gross margin 13.2%
Slide 11: 2021 Outlook
2021 Outlook ($ in millions, except EPS Data) Range(1) Revenue $850 - $940 Adjusted EBITDA $55 - $75 Adjusted Diluted EPS $0.15 – $0.25 ► Revenue range reflects customer requests to push delivery schedules for some projects from 2021 into 2022 and extended lead times due to logistics challenges Ex
Slide 12: Blackstone Investment
Blackstone Investment Brad Forth 12
Slide 13: Overview of Blackstone's Investment in Array
Overview of Blackstone’s Investment in Array Transaction Summary Key Terms of the Blackstone Investment(1) • On August 11th, Array entered into an agreement to sell up Security: Perpetual Preferred to $500 million of perpetual preferred stock to funds managed by Blackstone Initial Draw Amount: $350
Slide 14: Benefits of the Blackstone Transaction
Benefits of the Blackstone Transaction Creates Capacity for • $136 million of cash on hand, undrawn revolver and additional $150 million of equity capital available from Blackstone on the Internal and same terms until June 2023 External Growth • Opportunity to leverage Blackstone’s global relationsh
Slide 15: Sources & Uses and Pro Forma Capitalization
Sources & Uses and Pro Forma Capitalization ($ in millions) Transaction Sources As of June 30, 2021 Perpetual Preferred Stock $350 Pro Forma Capitalization Maturity Cost Actual Pro Forma Total Sources $350 Cash $18 $154 L+325 bps with 50 bps LIBOR floor Revolving Credit Facility 10/14/25 102 - (3.75
Slide 16: Appendix
Appendix TecuNoLoaits FOLLOW THE SUN. FOLLOW THE LEADER. 16
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) Adjusted EBITDA Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income (loss) $ (17) $ 2,392 $ 2,870 $ 76,077 Interest expense, net 6,651 2,411 15,660 7,640 Other expense, net 122 2,242 200 2,134 Income tax expense (benefit
Slide 18: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) Adjusted Net Income Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income (loss) $ (17) $2,392 $ 2,870 $76,077 Amortization of intangibles 5,875 6,313 11,752 12,625 Amortization of debt discount and issuance costs 1,53