Canadian Solar Inc. · NASDAQ:CSIQ
Canadian Solar — Q4 2016 Earnings Presentation
23 slides from Canadian Solar's earnings presentation, March 2017
Slide 1: Investor Presentation: Fourth Quarter 2016 Update
Investor Presentation Fourth Quarter 2016 Update March 2017 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: 2016 Global Annual PV Installation Exceeding 81GW
2016 Global Annual PV Installation Exceeding 81GW CAGR: 38.1% CAGR: 11.2% 109.3 97.3 90.5 Growth Drivers 81.3 79.2 82.2 Grid Parity Environment Preservation 31.5 16.7 Energy Security 22.3 27.9 ROW 57.8 5.8 1.0 9.9 12.4 15.6 14.6 45.1 10.9 1.3 1.7 1.6 37.8 3.0 8.7 12.0 15.4 1.4 13.4 17.0 31.0 8
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 ~1% 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% 242.6 319.4 70.5 100.5 138.8 183.8 1.2 1.6 2.1 2.6 3.7 5.1
Slide 5: Company Overview
Company Overview Founded in Ontario, 2001 Global Footprint and Brand Listed on NASDAQ (CSIQ) in 2006 Over 9,700 employees globally Presence in 18 countries / territories > 19 GW of solar modules shipped cumulatively > 2.5 GWp solar power plants built and connected (incl. Recurrent) No. 1 Solar Compa
Slide 6: Energy Business: Globally Diversified Project Pipeline
Energy Business: Globally Diversified Project Pipeline Priority Markets for Utility-Scale Project Development 9.8 GWp Total project development pipeline 7.7 GWp Canada UK Early to mid-stage development pipeline (2) USA China Japan ~2.1 GWp Mexico India Total contracted / late-stage project pipeline(
Slide 7: Project Summary
Project Summary Late-stage Projects Expected COD Schedule Plants In Total 2018 and Country/Region Operation at Q1'17 2017 Late-stage After 02/28/2017 Projects (Gross MWp) US 808 - 92 309 401 China 198 16.5 400 - 400 UK 125 26 26 - 26 Canada - - - - - Japan 59.5 5 105.5 433 538.5 Spain 5 - - - - Braz
Slide 8: Market Leader in the U.S.
Market Leader in the U.S. U.S. Project Development Business Footprint Includes Recurrent Energy Across North America 3.2 GWp Early-stage pipeline 401 MWp Late-stage pipeline1 808 MWp Late-stage Pipeline1 Owned and operated2 RoseRock Gaskell West 1 IS42 Tranquility 8 104 92 281 28 MWp MWp MWp MWp Com
Slide 9: Japan Utility-scale Solar Project Pipeline
Japan Utility-scale Solar Project Pipeline Total Solutions business – Japan Utility-Scale COD Schedule1 - MWp 538.5 MWp 126 Late-stage pipeline 118 112 105.5 77 59.5 MWp Owned and operated 2017 2018 2019 2020 2021+ Note: (1) Expected COD are tentative estimates subject to change, due to delays in se
Slide 10: China Utility-scale Solar Project Pipeline
China Utility-scale Solar Project Pipeline Energy Business – China 2017 Feed In Tariff Province Late Stage Project (RMB/kWh) 3 Heilongjiang Opportunity (MWP) 7 1 Jiangsu 50 0.75 3 20 MW Jilin25 MW 8 Liaoning 2 Shandong 10 0.98 200 MW Inner Xinjiang Mongolia 4 30 MW 3 Hebei 20 0.75 Beijing Ningxia He
Slide 11: 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) 192 Construction 2017 Pirapora II (1) 115 Development 2018 1 2 Pirapora III (2) 92 Development 2017 Total 399 The Company completed the sale of 80% interest in Pirapora I in the fou
Slide 12: Utility-scale Solar Power Plants Monetization Progress
Utility-scale Solar Power Plants Monetization Progress Monetization Schedule In the U.S., we continue to make progress on the sales of our operating solar power plants Country MWp Target Sale Date asset, which we expect to complete in 2017. China 70 1H 2017 In China, we are targeting to complete the
Slide 13: Module Business: Global Footprint With Diversified Customer Base
Module Business: Global Footprint With Diversified Customer Base Operational footprint > 19.0 GW cumulative modules sold to date Customers in over 90 countries with offices in 18 countries Sales office Manufacturing facility Sales breakdown by region $111 $466 $320 $281 $318 16% Q4 2015 41% Q1 2016
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 6,970 6,970 Diamond wire saw wafer 6,170 Black silicon Mono PERC 4,490 Super 5 4,330 4,490 4,000 Global Manufacturing Footprint 3,000 Brazil 2,400 2
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 Q4 2016 $0.13/W $0.08/W $0.12/W $0.33/W1 • Lower polysilicon cost • Reduce raw material • Higher efficiency • Lower polysilicon usage usage and purchase cost • Reduce bill of ma
Slide 16: Competitive Pipeline of Homegrown Technologies
Competitive Pipeline of Homegrown Technologies ONYX I – Black Silicon Mono PERC 0.4% cell efficiency and 4 watts module power gain over Mono PERC enhances back side passivation and increases cell baseline to over 19% by end of 2016 efficiency to near 21% Over 3 years in-house R&D, self-owned IPs Low
Slide 17: Cell Efficiency Roadmap
Cell Efficiency Roadmap 23 22 n-type 21 Cell Efficiency(%) Mono-PERC 20 Mono ONYX II 19 ONYX I 18 Multi 17 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 17
Slide 18: Experienced Board & Senior Management
Experienced Board & Senior Management Name / Title Work Experience Founded Canadian Solar in 2001, and has since then, firmly established the company as a global Dr. Shawn Qu leader of the solar industry Chairman, President & CEO (Director) Director & VP at Photowatt International S.A. Researc
Slide 19: Income Statement Summary
Income Statement Summary Revenue – US$ million Gross Profit – US$ million Margin 2,961 3,468 19.6% 16.6% 17.9% 15.6% 17.2% 17.8% 13.9%(1) 581 577 1,120 200 806 721 657 139 117 668 112 93 (1) 2014 2015 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2014 2015 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Operating Income – US$ millio
Slide 20: Operating Expenses as % of Net Revenue
Operating Expenses as % of Net Revenue Selling expenses General & administrative expenses 6.4% 9.4% 8.0% 5.2% 7.4% 4.3% 4.3% 4.8% 4.2% 3.5% 4.7% 4.6% 4.8% 2.6% 2014 2015 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2014 2015 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Research & development expenses Total operating expenses 0.7
Slide 21: Guidance as of March 21, 2017
Guidance as of March 21, 2017 Q4 2016 Q1 2017 FY2016 FY2017 YoY ∆% Module 1,150 MW to 1,612 MW 5,232 GW 6.5 GW to 7.0 GW +24.2% shipments 1,200 MW Revenue $668.4 mn $570 mm to $590 mm $2.85 bn $4.0 bn to $4.2 bn +40% Gross margin 7.3%(1) 13% to 15%(1) NA NA NA 1-Includes module business and project
Slide 22: Competitive Analysis
Competitive Analysis Revenue ($million) and Gross Margin (%) Cash and Restricted Cash on Hand - $ million 1,024.9 1,718.5 737.6 1,007.7 668.4 574.8 565.9 480.4 Q4 - 2016 Q4 - 2016 499.0 514.2 490.6 434.6 CSIQ JASO JKS HQCL SPWR FSLR Gross Margin (%) 13.9 (1) 12.9 14.3 9.5 -3.1 13.2 CSIQ JASO JKS HQC
Slide 23: Thank You!
THANK YOU! March 2017 23