Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Investor Presentation (November 2016)
23 slides from Canadian Solar's investor presentation, November 2016
Slide 1: Investor Presentation Third Quarter 2016 Update
Investor Presentation Third Quarter 2016 Update November 2016 CSIQ NASDAQ Listed
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: Global Annual PV Installation to Break through 60GW in 2016
Global Annual PV Installation to Break through 60GW in 2016 CAGR: 38.1% CAGR: 8.3% 102.6 92.7 87.4 Growth Drivers 78.3 Grid Parity 73.3 71.1 Environment Preservation 67.0 Energy Security 26.1 57.7 20.4 23.8 ROW 18.4 15.6 45.1 5.5 6.5 9.4 8.1 1.2 1.5 3.0 2.0 37.8 1.4 1.8 15.4 13.0 14.5 12.4 31.
Slide 4: We Are at the Very Early Stages of Solar Adoption
We Are at the Very Early Stages of Solar Adoption Solar energy will grow from ~0.5% of global electricity generation today to >10% by 2030 Global Cumulative Solar PV Installations (GW) GW Installed >10% % % of Electricity Generated 1,835.0 ~1% 138.8 183.8 242.6 1.2 1.6 2.1 2.6 3.7 5.1 6.7 9.2 15.8 2
Slide 5: Company Overview
Company Overview Founded in Ontario, 2001 Global Footprint and Brand Listed on NASDAQ (CSIQ) in 2006 Over 9,000 employees globally Presence in 18 countries / territories > 17 GW of solar modules shipped cumulatively > 2.3 GWp solar power plants developed, built and connected (incl. Recurrent) Top 2
Slide 6: Energy Business: Industry Leading Globally Diversified Project Pipeline
Energy Business: Industry Leading Globally Diversified Project Pipeline Priority Markets for Utility-Scale Project Development 9.5 GWp Total project development pipeline Canada 7.5 GWp Early to mid-stage USA development pipeline (2) Japan China 2.0 GWp Mexico Total contracted / late-stage Short term
Slide 7: Project Summary
Project Summary Late-stage Projects Expected COD Schedule Plants In Total 2018 and Country/Region Operation at Q4'16 2017 Late-stage After 9/30/2016 Projects (Gross MWp) US 483 715 - 225 940 China 218 38 - - 38 UK 120 10 5 - 15 Canada 100 - - - - Japan 22 41 121 435 597 Spain 5 - - - - Brazil - - 19
Slide 8: Market Leader in the U.S.
Market Leader in the U.S. Includes Recurrent Energy Across North U.S. Project Development Business Footprint America 3 GWp Early-stage pipeline 940 MWp Late-stage pipeline2 483 MWp Owned and operated >842 MWp1 Track record of projects developed and sold in U.S. Late-stage Pipeline2 Astoria 1 Astoria
Slide 9: Japan Utility-scale Solar Project Pipeline
Japan Utility-scale Solar Project Pipeline Total Solutions business – Japan Utility-Scale COD Schedule1 - MWp 597 MWp Late-stage pipeline 157 126 121 22 MWp 77 75 Owned and operated 41 2016 2017 2018 2019 2020 2021+ Note: (1) Expected COD are tentative estimates subject to change, due to delays in s
Slide 10: Brazil Utility-scale Solar Project Pipeline
Brazil Utility-scale Solar Project Pipeline Late-stage Pipeline 3 Project Gross MWp Status Expected COD Pirapora I (1) 191 Construction 2017 Pirapora II (1) 109 Development 2018 1 2 Vazante (2) 90 Development 2018 Total 390 Canadian Solar sold 80% of equity interest in the Pirapora I solar project t
Slide 11: China Utility-scale Solar Project Pipeline
China Utility-scale Solar Project Pipeline Energy Business – China Q4 2016 Grid Connection Target 3 In Q4 2016, we expect to connect a total of 38 MWp solar plants to the grid in China, including 3 plants in Jiangsu Province, totaling 32 MWp and a 6 MWp plant in Henan Province. The total plants in o
Slide 12: Utility-scale Solar Power Plants Monetization Progress
Utility-scale Solar Power Plants Monetization Progress Monetization Schedule The total value of the 234 MWp solar Country MWp Target Sale Date power plants in Canada and China is estimated at approximately $500 million, Canada 100 December 2016 or early 2017 with a blended gross margin in high teens
Slide 13: Module Business: Global Footprint With Diversified Customer Base
Module Business: Global Footprint With Diversified Customer Base Operational footprint > 17.0 GW cumulative modules sold to date Customers in over 90 countries with offices in 18 countries Sales office Manufacturing facility Sales breakdown by region $351 $466 $281 $320 $318 41% 42% Q2 2016 43% Q3 2
Slide 14: Capacity Expansion to Optimize Technology and Cost
Capacity Expansion to Optimize Technology and Cost Manufacturing Capacity - MW Technology upgrade – New products, new process, new design Diamond wire saw wafer Black silicon 5,800 Mono PERC Super 5 4,330 4,330 Global Manufacturing Footprint 3,000 Brazil 2,400 2,700 2,200 2,440 Canad
Slide 15: Industry Leading Manufacturing Cost Structure
Industry Leading Manufacturing Cost Structure Polysilicon/Wafer Cell Module Total Q2 2011 $0.76/W $0.23/W $0.33/W $1.32/W1 Q3 2016 $0.16/W $0.07/W $0.12/W $0.35/W1 • Lower polysilicon cost • Reduce raw material • Higher efficiency • Lower polysilicon usage usage and purchase cost • Reduce bill of ma
Slide 16: Competitive Pipeline of Homegrown Technologies
Competitive Pipeline of Homegrown Technologies ONYX I – Black Silicon Mono PERC 0.4% cell efficiency and 4 watts module power gain over Mono PERC enhances back side passivation and increases cell baseline to over 19% by end of 2016 efficiency to near 21% Over 3 years in-house R&D, self-owned IPs Low
Slide 17: Cell Efficiency Roadmap
Cell Efficiency Roadmap 23 22 n-type 21 Cell Efficiency(%) Mono-PERC 20 Mono ONYX II 19 ONYX I 18 Multi 17 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 17
Slide 18: Experienced Board & Senior Management
Experienced Board & Senior Management Name / Title Work Experience Founded Canadian Solar in 2001, and has since then, firmly established the company as a global Dr. Shawn Qu leader of the solar industry Chairman, President & CEO (Director) Director & VP at Photowatt International S.A. Researc
Slide 19: Income Statement Summary
Income Statement Summary Revenue – US$ million Gross Profit – US$ million Margin 2,961 3,468 19.6% 16.6% 14.9% 17.9% 15.6% 17.2% 17.8% 581 577 1,120 200 850 806 112 139 721 657 127 117 2014 2015 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 2014 2015 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Operating Income – US$ million Net
Slide 20: Operating Expenses as % of Net Revenue
Operating Expenses as % of Net Revenue Selling expenses General & administrative expenses 7.9% 5.2% 7.4% 4.4% 4.8% 4.3% 4.3% 4.2% 6.4% 3.5% 4.7% 4.6% 4.8% 2.6% 2014 2015 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 2014 2015 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Research & development expenses Total operating expenses 0.7
Slide 21: Selected Balance Sheet & Cash Flow Items
Selected Balance Sheet & Cash Flow Items Cash & cash equivalents – US$ million Cash flow from operations – US$ million(1) 1,135 1,135 413 1,025 1,002 999 1,007 986 265.1 218 582 582 475 587 512 481 145 Restricted 656 Cash 41 550 553 553 495 505 Cash 346 412 -108 -206 2014 2015 Q3 15 Q4 15 Q1 16 Q2 1
Slide 22: Guidance as of November 21, 2016
Guidance as of November 21, 2016 Q3 2016 Q4 2016 FY2015 FY2016 YoY ∆% Module 1,400 MW – 1,161 MW 4.7 GW 5.073 GW – 5.173 GW +8.5% shipments 1,500 MW $600 mm to $2.78 bn to Revenue $657 mn $3.47 bn -15.3% $750 mn $2.94 bn Gross margin 17.8% 11% – 16%(1) NA NA NA 1-Includes module business and project
Slide 23: Thank You!
THANK YOU! November 2016 23
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