Slide 1: Array Technologies 4Q 2021 Earnings Call
Array Technologies 4Q 2021 Earnings Call April 5, 2022 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: 4Q 2021 Earnings Call – Agenda
4Q 2021 Earnings Call – Agenda Topic Presenter 1 Business Update Jim Fusaro, Chief Executive Officer 2 Results and Outlook Nipul Patel, Chief Financial Officer 3 ESG Update Erica Brinker, Chief Commercial Officer and Head of ESG 4 CEO Appointment Brad Forth, Chairman 3
Slide 4: Business Update
Business Update Jim Fusaro : FOLLOW THE SUN. oe op treuworasirs FOLLOW THE LEADER.
Slide 5: Adapting to a Challenging Business Environment
Adapting to a Challenging Business Environment Situation Array’s Response Where We Enter 2022 • Identified key needs of our customers going forward – Price • Legacy, lower priced contracts make up a minority of our Commodity and Logistics stability and product availability orderbook Costs Rose Quick
Slide 6: Customer Demand Remains a Highlight
Customer Demand Remains a Highlight Orderbook (Executed Contracts, Awarded Orders) Key Takeaways M$ $1,857 Orderbook up 103% organically & 163% inclusive of STI ► Overall Utility-Scale solar momentum $426 continues to point to long-term growth $1,421 despite current headwinds $416 ► 20% increase in
Slide 7: Uncertainty of Project Timing Remains
Uncertainty of Project Timing Remains Comparison of Orderbook Conversion Key Takeaways M$ 91% conversion ► Array can cover 109% of the mid-point of our guidance with its December 31, 2021 orderbook 130% conversion ► Further opportunity to book and ship within the year $1,750 ► However, macro headwin
Slide 8: Financial Update
Financial Update Nipul Patel 8
Slide 9: 4Q 2021 Financial Results
4Q 2021 Financial Results 4Q Snapshot Y/Y Comparison Three Months Ended ► Revenue up 22% despite ~$40 million in 4Q 2020 ITC orders driven by December 31, continued strong demand for our product, which was partially offset by project delays ($ in millions, except EPS Data) 2021 2020 Y/Y Revenue $219
Slide 10: 2021 Yearly Financial Changes
2021 Yearly Financial Changes 2021 Snapshot(1) Y/Y Comparison Twelve Months Ended ► Revenue down 2% driven by project delays stemming from lead-time December 31, increases and project push-outs ($ in millions, except EPS Data) 2021 2020 Y/Y Revenue $853.3 $872.7 (2%) ► Gross margin down from 23.2% t
Slide 11: Margin Recovery for Legacy Array Remains a Key Focus
Margin Recovery for Legacy Array Remains a Key Focus Gross Margin (%) – Legacy Array Only(1) Key Takeaways High Teens to Low Twenties(2) ► Q4-2021 Gross Margin were negatively impacted by supply plan 18.6% changes to meet customer delivery schedules (~200 bps) & Project Mid Teens(2) timing (~50 bps)
Slide 12: FY2022 Guidance
FY2022 Guidance Guidance Planning Assumptions ► No material impact from AD/CVD inquiry For the full year ending December 31, 2022, the Company expects: ► Adjusted SG&A between $25 million to $30 million per quarter ► Effective Tax Rate: 26% Revenue $1.45 billion to $1.75 billion ► Fx Rates: Euro to
Slide 13: ESG Update
ESG Update Erica Brinker FOLLOW THE SUN. ts FOLLOW THE LEADER. 13
Slide 14: Inaugural ESG Report
Inaugural ESG Report In January 2022, we published our inaugural ESG report. The report is aligned with the GRI and SASB frameworks and includes Report Highlights details on our current ESG strategy and performance, including FY2020 data. We will be publishing our next report in Q2, 2022 with data f
Slide 15: 2022 ESG Priorities
2022 ESG Priorities As part of our commitment to ESG governance and strategy, we are embarking on a number of strategic projects in 2022 to enhance our performance on ESG. Conducting our inaugural ESG materiality assessment to determine the ESG topics most important to our business and to our stakeh
Slide 16: CEO Appointment
CEO Appointment Brad Forth 16
Slide 17: Kevin Hostetler Named Array CEO
Kevin Hostetler Named Array CEO ► Will become Chief Executive Officer and join Array’s Board of Directors effective April 18, 2022 ► Most recently was CEO at Rotork, a FTSE 250 Company, where he led the company’s Growth Acceleration Program, which drove improved margins, capital efficiency and comme
Slide 18: Appendix
Appendix FOLLOW THE SUN. ts FOLLOW THE LEADER. 18
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net (loss) Income to common shareholders $ (32,137) $ (9,772) $ (66,118) $ 59,073 Preferred dividends and accretion 10,236 — 15,715 — Interest expense 6,706 6,81
Slide 20: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) Adjusted Net Income Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net Income (loss) to common shareholders $ (32,137) $ (9,772) $ (66,118) $ 59,073 Preferred dividends and accretion 4,805 — 7,489 — Amortization of intan