SOLAREDGE TECHNOLOGIES NASDAQ I SEDG - RONEN FAIER CFO - SOLAREDGE TECHNOLOGIES, INC.
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SolarEdge Technologies Nasdaq I SEDG Ronen Faier CFO August 2021
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. 2
SolarEdge in Numbers
74.1M 374 370
29
Awarded
Patents and
Power Optimizers Additional Patent
Shipped Countries Applications
Presence
>2.15M
Monitored systems
around the world # 1
Solar
Inverter
Company *
3,618
employees
3.1M
Inverters
Shipped
25.7GW
of our systems
shipped worldwide
* Revenue wise - PV Inverter Market Tracker – Second Quarter 2021
Q2/2021 Financial Results
$480.1M $72.5M 32.5%
GAAP Revenue Non-GAAP Net Income GAAP Gross Margin
$38.7M $45.1M $509.3M
Cash Flow From Operations GAAP Net Income Cash, Deposits
and Investments,
Net of Debt
4
Electricity demand is on the rise
Estimated Electricity Consumption Requirements
Benjamin Deniston, 2020. Only nations with electricity data in 1990.
+2B people (+26%) 2020-50
100
90
80
70 Urbanization will increase by (+~2.5B
Petawatt-hours
60
people)
50
40
30 Growing trend of electrification
20 in areas previously dominated
10 by fossil fuels
0
1990 2000 2010 2020 2030 2040 2050
Northern America Europe Ibero-America East & SE Asia Total global primary energy consumption
Cen & South Asia Africa & SW Asia Sub-Saharan Africa
is expected to double in 15 years (2035)
and triple by 2050
Source: https://www.larouchepac.com/efd_5
https://www.un.org/development/desa/en/news/population/2018-world-urbanization-
prospects.html
Renewable energy supply is outgrowing fossil fuels
Global installed capacity mix, 2019 and 2050, %
40 38
35
30 28
25 23
20 In 2019, global installed power
20
15 15 generation capacity was 7,566 GW
15 with solar PV accounting for 11%,
11
10 7 7 8 8 Analysts believe by 2050, solar PV is
4 5 4 likely to lead all power generation
5 2 2 2
1 capacity that will grow to 20,391 GW
0
with a share of 38%
Coal Gas Oil Nuclear Hydro Wind Solar Storage Other
2019 2050
Source: http://taiyangnews.info/business/wind-pv-to-account-for-56-of-global-power-needs-in-2050/
Growth is expected in all regions
Solar GW(dc) Installations by Region 261
245
24
227 22
207 19 41
13 42
172 43
6 47
63
144 56
3 37 47
125
31 39
5
102 31
96 23
1 4 25
78 15 16
25
2 10 12
57 18 133
119 125
1 8 109
11 97
9 86
70 70 72
51
36
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Asia Pacific Total Europe Total Americas Total Africa and Middle East Total
Source: IHS PV installation tracked Q2 2021
Strategy Solar SolarEdge Solutions
A Complete Residential Solution
A single solution for PV, storage, smart energy, Smart Modules with
Pre-assembled Power
and EV charging Optimizers
Smart Energy Products
Inverters
Monitoring Platform StorEdge
9
The SolarEdge Commercial Solution
Monitoring Platform
Commercial Gateway
Environmental Sensors
Power Optimizers Environmental Sensors
2-to-1 configuration with
P600–P850
Inverters
10 15kVA – 120kVA Grid InteractionAnnual Growth
Revenues ($M) Our Winning Method
1,459.3
1,425.7 Strong product offering that
answers customers needs
Sales force focused on demand
creation with installers
937.2
Backed by marketing and service
US Residential Market
607.0
80.0%
490.0 58.7%
60.0% 50.9% 50.4%
40.2%
40.0% 33.1%
27.5%
15.9%
20.0%
0.0%
2014 2015 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020
Source: Wood Mackenzie US PV Leader board Q2 2021Strategic Growth Engines Geographic Segment Market ARPI Increase Expansion Development Share Growth
Geographic Expansion Systems installed in >130 countries with feet on the ground in the large sustainable ones Maintain leadership position in core developed markets Significantly grow in new markets to answer demand Local presence
SolarEdge Segment Development
Leader
2019 Looking
ahead
Residential Residential
Commercial
Market Position
Commercial
Utility
Utility
Entry
Basic Portfolio Basic Portfolio Complete
CompleteMarket Share Growth
Global Inverter Market Tracker: World PV Inverter Supplier Rankings ($ Revenues)
2014 2017 2020 (Ranked first since 2018)
Rank Company Rank Company Rank Company
1 SMA 1 Huawei 1 SolarEdge
2 ABB 2 SMA 2 SMA
3 Omron 3 Sungrow 3 Huawei
4 TEMIC 4 SolarEdge 4 Enphase Energy
5 Tabuchi 5 Enphase Energy 5 Sungrow
6 Schneider Electric 6 ABB 6 Fronius
7 Enphase Energy 7 Schneider Electric 7 Power Electronics
8 Sungrow 8 Omron 8 ABB
9 Huawei 9 Fronius 9 Growatt
10
10 SolarEdge 10 Goodwe 10 Omron
Source: IHS PV Inverter Market tracker 2015-21Technology Roadmap
Inverter Gen1 Inverter Gen2 Single Phase Three Phase Inverters StorEdge Three Three Phase Inverters Utility Inverter
3kW – 6kW (1ph) 2.2kW – 7.6kW (1ph) Inverters with Synergy Technology Phase Inverter with Synergy Technology 330kW
5kW – 20kW (3ph) with HD-Wave Up to 100kW Up to 120kW
Technology
2.2kW – 11.4kW
Efficiency
Power
2010 2011 2013 2015 2017 2019 2021 Rating
Future…
$/Watt
Optimizer
Optimizer Gen1 Optimizer Gen2 Optimizer Gen3 Gen4
Single Phase Residential
Energy Hub Inverter battery
with Prism
Technology
2.2kW – 11.4kW
Commercial
ESS Utility
battery
storage
16Moving Beyond PV
One-Stop-Shop for Smart Energy Solutions
Smart Modules Batteries, UPS, and EV Powertrains
Residential and
Commercial PV Inverters
EV Charging Monitoring Platform and Grid Services
Smart Energy Management
1819
Strengths of SolarEdge Critical Power Division
Decades of experience designing and
manufacturing UPS solutions for various
applications
Competitive product offering for the 3 phase 10
– 500 KW segment
Significant synergy with SolarEdge R&D,
manufacturing and global business
infrastructure
Opportunity for combined backup/UPS energy
storage solution20
Strengths of Kokam within SolarEdge
A global Tier 1 provider of innovative battery solutions
Battery provider for utility-scale ESS, UPS, EV, and more
Proven technology with more than 685MWh deployed
Over 175MWh of utility-scale ESS installed globally
Access to thousands of installers and EPCs as sales channel
Innovative cell chemistry technology with long cycle life
and high power Li-ion battery
“Sella 2”, a 2GWh Li-ion cell factory under construction
expected to begin production in early 202221
SolarEdge E-Mobility Division
Innovative integrated powertrain technology and
electronics for LCVs, LGVs, e-motorcycles
Innovative and high-performing powertrains with the
gearbox, engine, battery, BMS, software, and accessories
Provides SolarEdge fast-track access to the high-growth
global EV market
Selected as supplier of electric powertrain units and
batteries for Fiat E-Ducato (Stellantis)Financial Performance
Revenues Growth
1,459.3
1,425.7
89.1 102.0 480.1
0.1
405.6 48.5
0.1
937.2 358.1 29.1
331.9 338.1
22.9 31.0
21.8 25.6
607.0 1,336.6 1,357.3
490.0 431.5
376.4
914.3 327.1
310.1 312.5
607.0
490.0
2016 2017 2018 2019 2020 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
USD millionsConsolidated Gross Margin
35.4%
34.1% 34.5%
33.6%
32.8% 32.5%
31.6% 32.0%
31.0% 30.8%
2016 2017 2018 2019 2020 GAAP Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
35.7%
Non-GAAP
34.9% 36.5%
34.6%
33.1% 33.5% 33.9%
33.0%
32.4% 32.5%
2016 2017 2018 2019 2020 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21Operating Expenses as % of Revenues
21.8% 26.8% 23.7%
22.0% 23.0%
21.0%
20.4% 20.3%
19.2%
18.3%
2016 2017 2018 2019 2020 GAAP Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Non-GAAP
20.4%
17.9% 18.1%
18.4% 18.7% 18.8%
16.2% 16.0% 17.0%
15.5%
2016 2017 2018 2019 2020 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21Consolidated Operating Profitability
55.6
189.9 44.1
139.4 142.6
30.0 30.4
91.1
71.0 14.4
2016 2017 2018 2019 2020 GAAP Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
276.8
Non-GAAP
218.8 81.3
71.9
174.3
46.6 50.0 43.5
108.7
82.6
2016 2017 2018 2019 2020 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
USD millionsConsolidated Net Profitability
146.5 140.3 43.8 45.1
128.8 36.7
30.1
84.2
63.5 17.7
2016 2017 2018 2019 2020 GAAP Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Non-GAAP
233.2 224.4 65.9 72.5
52.1 55.7 55.5
157.3
115.0
78.9
2016 2017 2018 2019 2020 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
USD millionsCash Flow from Operating Activities
Cash Position
259.0
$38.7M cash flow from
222.7 operations in Q2 2021
Net cash of $509.3M, include
189.1 cash equivalents, deposits,
restricted deposits and
marketable securities, net of
136.7 debt (as of June 30, 2021)
62.8
2017 2018 2019 2020 YTD
USD millionsThank You! Cautionary Note Regarding Market Data & Industry Forecasts This power point presentation contains market data and industry forecasts from certain third- party sources. This information is based on industry surveys and the preparer’s expertise in the industry and there can be no assurance that any such market data is accurate or that any such industry forecasts will be achieved. Although we have not independently verified the accuracy of such market data and industry forecasts, we believe that the market data is reliable and that the industry forecasts are reasonable. Version #: V.1.0
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