solaredge technologies
TRANSCRIPT
© SolarEdge
Presented by:Presented by:
SolarEdge Technologies
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Ronen Faier
May 2018
© SolarEdge22
Forward Looking Statements
Use of Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition.
Forward-looking statements are only predictions based on our current expectations and are inherently subject to risks and uncertainties. They should not be considered guarantees of future results, which could differ materially from the results set forth in, contemplated by, or underlying this presentation.
Factors that could cause actual results to differ materially from our expectations are described in the reports filed by SolarEdge with the Securities and Exchange Commission and we encourage you to review our filings carefully, especially the sections entitled “Risk Factors” in our annual report Form.
SolarEdge undertakes no duty or obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or changes in its expectations.
© SolarEdge33
SolarEdge in Numbers
1.1Minverters shipped
25.2Mpower optimizers
shipped
126 awarded patents and 169additional patent applications
Presence in 21countries 1,096 employees
7.5GW of our systems shipped worldwide
Over 618,000 monitored systems around the world
© SolarEdge44
Q1/2018 in Numbers
$64.0MCash Flow From Operations
$35.7MGAAP Net Income
$209.9MRevenue
$42.6M Non-GAAP Net Income
37.9%Gross Margin
$400.8M Cash Balance
© SolarEdge55
Global PV Market Forecast
Source: IHS, PV Installations-tracker-q1-2018
27.3 31.638.7
43.6
57.4
78.9
94.6
112.7
128.3138.3
147.5154.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
© SolarEdge66
Global Installations by Region
Source: IHS, PV Installations-tracker-q1-2018
10% 10% 10% 12% 12% 13% 14%23% 15% 15%
16% 17% 16% 16%
64%73%
71%65%
64%63%
63%
3%
2%
5%
6%
7%8%
7%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2016 2017 2018 2019 2020 2021 2022
Global Installations (GWdc)
Europe Americas Asia Pacific Africa and Middle East
© SolarEdge77
Inverter Installations by Installation Type (GW)
Source: IHS, PV Installations-tracker-q1-2018
8% 9% 10% 10% 10% 10% 10%26%
31%32% 30% 32% 34% 35%
67%61%
58%61%
58%56%
54%
2016 2017 2018 2019 2020 2021 2022
Global PV Installations, By installation type
Residential (<10 kW) Commercial (10.1kW-5MW) Utility (>5MW)
© SolarEdge88
Inverter Shipments by Power Class
Pv inverter market-tracker-2018 - preliminary forecast
10% 9% 11% 10% 10% 11% 11%
34%45%
49% 50% 51% 53% 54%
55%45%
39% 39% 37% 35% 34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018 2019 2020 2021 2022
Microinverters Single-Phase
Three-Phase Low Power (≤200 kW) Three-Phase High Power (>201 kW)
© SolarEdge99
DC Optimized Inverter SystemTraditional String Inverters
One inverter per module
Module-level optimization
Limited scalability
One central inverter
No module-level optimization
No module-level intelligence
Simplified central inverter
Module-level optimization
Improved scalability
Innovative Architecture
Microinverters
Cost and scalability
Questionable reliability
Monitoring requires additional hardware
Energy loss
Limited roof utilization
No module-level monitoring
Safety hazards
© SolarEdge1010
Innovative Solution
Fixed VoltageInverter
Cloud-based Monitoring Platform
Power Optimizer
Safe DC
Enhanced Safety Solutions
Higher Power Yield
Design Flexibility
Lower O&M Cost, Efficient Monitoring
© SolarEdge1111
Top Global Inverter Company
World single-phase PV inverter supplier market share estimates (MW shipments)
Source: IHS PV Inverter Market Tracker Q1, 2018
RANK COMPANY CHANGE
SolarEdge -
2 SMA -
3 Ginlong +9
4 Goodwe +7
5 Omron -2
6 Enphase Energy -2
7 Growatt +2
8 Panasonic -3
9 SAJ +6
10 Fronius -2
1
RANK COMPANY CHANGE
1 Huawei +1
2 SMA -1
3 Sungrow +1
SolarEdge -1
5 ABB +1
6 Schneider Electric +2
7 Omron +2
8 Fronius +3
9 Enphase Energy -2
10 Growatt +
4
World PV Inverter Supplier Rankings ($ Revenues)
© SolarEdge1212
Established Global Reach
230 direct customers Over 17,200 installers
Presence in 21 countries
Systems installed in 125 countries
Regional service centers
© SolarEdge1313
Rapid Growth
Source: GTM Research
2012 Q4/2017
SolarEdge U.S. Residential Inverter Market Share (MW)
42.5 %
1.7%
Annual Revenue ($M)
© SolarEdge1414
Technology Roadmap
OPTIMIZER GEN1 OPTIMIZER GEN2 OPTIMIZER GEN3
Efficiency
Power Rating
$/Watt
INVERTER GEN13kW – 6kW (1ph)
INVERTER GEN22.2kW – 7.6kW (1ph)5kW – 20kW (3ph)
2010 2011 2013 FUTURE… 2015 2017
Single phase invertersWith HD-WaveTechnology2.2kW – 7.6kW
OPTIMIZER GEN4
Three phase inverterswith synergy technology
Up to 100kW
HD-Wave Inverter Technology(3ph)
OPTIMIZER GEN5
© SolarEdge1515
One Inverter for All Applications
The SolarEdge StorEdge inverter combines energy management of all features into one inverter
Simple design
Fast installation
Centralized energy management
Designed to work together; seamless and synchronized
Monitoring platform displays production, consumption, self-consumption & battery status on a single dashboard
PV Storage BackupHome Energy Management
One inverter replaces multiple separate management devices
© SolarEdge1616
A Complete Residential Solution
Smart Energy
Inverter
Smart Energy Relay
Smart Energy Hot Water
Smart Energy Socket
StorEdge™
Power Optimizer
Monitoring Platform
Single phase
Three phase
EV-ready
EV Charging
A single solution for PV, storage, smart energy and EV charging
© SolarEdge1717
Revenue Growth
(CY Ending Dec 31, USD millions)
© SolarEdge1818
Gross Margin Expansion
(CY Ending Dec 31)
© SolarEdge1919
Operating Expenses
(CY Ending Dec 31)
% Of Revenue
© SolarEdge2020
Operating Profitability
(CY Ending Dec 31, USD millions)
© SolarEdge2121
Net Profitability
(CY Ending Dec 31, USD millions)* Q1-18 and Q4-17 includes one time transition tax of $0.8 and $18.7M respectively
© SolarEdge2222
Net Profitability — Non GAAP
(CY Ending Dec 31, USD millions)
© SolarEdge2323
Cash Flow from operating activities
(CY Ending Dec 31, USD millions)
$64.0M cash flow from operations in Q1 2018
$400.8M cash and investments (as of March 31, 2018)
Scalable CAPEX light manufacturing model
Debt free
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