Attached files
| file | filename |
|---|---|
| 8-K - SUNPOWER CORPORATION 8-K 11-11-2010 - SUNPOWER CORP | form8k.htm |
| EX-99.2 - EXHIBIT 99.2 - SUNPOWER CORP | ex99-2.htm |
| EX-99.4 - EXHIBIT 99.4 - SUNPOWER CORP | ex99-4.htm |
| EX-99.1 - EXHIBIT 99.1 - SUNPOWER CORP | ex99-1.htm |
Exhibit 99.3
Third Quarter 2010 Earnings Supplementary Slides
November 11, 2010
Safe Harbor Statement
2
Strong Business Performance
§ Beat Q3 forecast in both segments
§ Met cost reduction plan in fab and field
§ Demand greater than supply - record backlog
§ Strong Q3 Execution
– Record cell outs, OEE, average efficiency and yields in Fabs 1 and 2
– 22+% Gen 2 cells on first production run in Fab 3
– Installed more than 70 MW* of power plants
– Closed sale of Montalto 28 MW ac solar park
3
* Power plant capacity in MW ac
Q4 Confidence / 2011 Visibility
§ High confidence in Q4 execution
– R&C: Fully booked
– UPP: On plan to monetize Italian solar parks
§ Strong growth and high visibility for 2011
– Volume and price established for Commercial business and UPP
– ~70% booked in Commercial for 2011
– 95% booked in North American UPP for 2011
– On plan for $1.08/W Q4 11 efficiency adjusted panel cost v. 14% panels
4
Vertical Integration Strategy
Poly
Ingot
Wafer
Cell
Panel
Upstream
§ World’s highest efficiency panels
§ Sustainable differentiated advantage
§ Drive for scale and cost reduction
Install
Services
Downstream
§ Adjust rapidly to market conditions
§ Integrated cost reduction
§ Premium brand / superior service
BOS
5
SPWR Downstream Strategy
§ World’s highest efficiency panels
§ Sustainable differentiated advantage
§ Drive for scale and cost reduction
§ Multi-year fixed price contracts
§ NA, EMEA, emerging markets
§ Integrated cost reduction
§ NAC: Multi-Qtr fixed price contracts
§ RLC: global dealer/partner network
§ Integrated cost reduction
EPC
Services
UPP Segment
BOS
Sales/
Install
Services
R&C Segment
BOS
Poly
Ingot
Wafer
Cell
Panel
Upstream
6
Diversified Channel / Portfolio
§R&C Market Position
− Global footprint, #1 in US
− Residential: 8 countries
− Commercial: Direct sales force
− #1 in NA, expanding to EU
− T5 driving wins: 3.5 MW Macy’s
§UPP Market Position
− Global reach / direct sales force
− 5 GW pipeline (~1/3 in EMEA)
− Customers buy energy (¢/kWh)
− High energy density = low LCOE
7
Italy Project Overview
|
|
2009
|
Q1 ’10
|
Q2 ’10
|
Q3 ’10
|
Q4 ’10
|
Q1 ’11
|
|
Montalto 20
Montalto 8
Montalto 44
Solare Roma 13
Permitting
Construction
Financing
Sale
* MW’s in chart are listed in ac
8
Note: Illustrative 100 GWh / year power plant, Phoenix, AZ
SunPower LCOE Advantages
|
|
SunPower
|
11% TF Fixed
|
|
GWh/yr
|
100
|
100
|
|
MW
|
37
|
46
|
|
Acres
|
191
|
351
|
|
Inverters
|
74
|
92
|
SunPower delivers
the same GWh using
far fewer acres and
less BOS leading to
lower O&M costs
the same GWh using
far fewer acres and
less BOS leading to
lower O&M costs
SunPower
Thin Film
9
SunPower LCOE Advantages
|
|
SunPower
|
11% TF Fixed
|
|
GWh/yr
|
100
|
100
|
|
Total $
|
$200 MM
|
$200 MM
|
|
$/Wp DC
|
$4.37
|
$3.50
|
SunPower delivers
the same LCOE with
a 25% $/Wp price
premium
the same LCOE with
a 25% $/Wp price
premium
SunPower
Thin Film
Economically equivalent to customer
10
Note: Illustrative 100 GWh / year power plant, Phoenix, AZ
Efficiency Adjusted Cost/Watt*
|
|
Q4’09
|
Q4’10
|
Q4’11
|
|
SunPower 19% Panel Cost / Watt**
|
$1.91
|
$1.71
|
$1.48
|
|
Efficiency Adjusted (vs. 14%)
|
$1.47
|
$1.36
|
$1.08
|
|
Efficiency Adjusted (vs. 11%)
|
$1.01
|
$0.92
|
$0.71
|
11
*Efficiency adjustments consider the BOS/tracking benefits of high efficiency panels.
**Base Cost/Watt excludes freight and pre-op expenses.
Comparison: 14% panel on T20 tracking system, 11% panel on fixed tilt.
§ Cost reduction drivers
− Fab 3 JV with AUO
− Leveraging R+D investments
− Improved manufacturing efficiency
− Increased ramp, yield and OEE
|
($ Millions except per share data)
|
Quarter
Ending 10/3/10
|
Quarter
Ending 9/27/09
|
Quarter
Ending 7/4/10
|
|
Non-GAAP Revenues
|
$553.8
|
$465.4
|
$392.1
|
|
R+C
|
$292.8
|
$270.2
|
$264.2
|
|
UPP
|
$261.0
|
$195.1
|
$127.9
|
|
Gross Margin % (Non-GAAP)
|
22.3%
|
23.1%
|
26.3%
|
|
R+C
|
24.3%
|
19.6%
|
26.5%
|
|
UPP
|
20.0%
|
27.9%
|
26.1%
|
|
Tax Rate (non-GAAP)
|
15.4%
|
25.3%
|
20.3%
|
|
Net Income (Loss) (GAAP)
|
$20.1
|
$19.5
|
($6.2)
|
|
Net Income (Loss) (Non-
GAAP) |
$26.3
|
$47.0
|
$14.4
|
|
Diluted Wtg. Avg. Shares Out.
|
105.6**
|
105.0**
|
96.8*
|
|
EPS (GAAP)
|
$0.21
|
$0.21
|
($0.07)
|
|
EPS (Non-GAAP)
|
$0.26
|
$0.46
|
$0.15
|
Note: Non-GAAP figures are reconciled to comparable GAAP figures in appendix on company website
*not converted method **if converted method
Current and historical figures reflect Q2’10 change to new business unit segmentation
12
Balance Sheet and Financial Outlook
§ Liquidity
– Ended Q310 with $438 million in cash and investments
– Repaid $177 million in convertible debt and bank loans
– $145 million of additional liquidity available
– Shares in Woongjin Energy ~$360 million market value
§ Capital Expenditures of $4.3 million in Q3; 2010 plan of $125-$150 million
§ Q3 Free Cash Flow* of $78 million
§ Q4 FX exposure fully hedged at $1.37 to 1 Euro
§ Q3 production of 152 MW; 2010 on track to exceed 550 MW
*Free Cash Flow is net cash provided by (used in) operating activities less net cash provided by (used in) investing activities.
13
Italian Projects Update
§ On track to assemble, finance and monetize Italian projects in Q4
– Expect to complete and sell more than 80 MW in 2010
§ Montalto 44 MW
– Currently marketing €200 million in debt financing
– Industry’s first solar bond
– Provisional investment grade rating on both tranches of debt
– Debt transfers to new owner on sale
– Equity sale in negotiation for Q4 close
– On schedule for connection to grid in mid-December 2010
§ Solare Roma - 13 MW
– On schedule to connect and monetize project in December 2010
14
2010 Guidance
|
|
Q4
|
FY 2010
|
|
Revenue $MM
|
$870-$970
|
$2,150-2,250
|
|
Gross Margin (Non-GAAP)
|
20-22%
|
22-23%
|
|
EPS $/Share (Non-GAAP)
|
$0.95-$1.15
|
$1.45-$1.65
|
|
EPS $/Share (GAAP)
|
$0.45-$0.60
|
$0.75-$0.90
|
15
Third Quarter 2010 Earnings Supplementary Slides
November 11, 2010
GAAP to Non-GAAP Reconciliation
17
18
Earnings Per Share Calculation
19
Three Months Ended October 3, 2010
GAAP
Non-GAAP
(in thousands)
If Converted Method
Not Converted
Method
Method
If Converted Method
Not Converted
Method
Method
Net income
$ 20,116
$ 20,116
$ 26,283
$ 26,283
Net income allocated to unvested restricted stock awards
(24)
(24)
(31)
(31)
Net income allocated to class A and class B common stock
20,092
20,092
26,252
26,252
Basic weighted-average shares
95,840
95,840
95,840
95,840
Net income per share - basic
$ 0.21
$ 0.21
$ 0.27
$ 0.27
Net income
$ 20,116
$ 20,116
$ 26,283
$ 26,283
(A)
Interest expense on 4.75% debentures, net of tax
1,666
-
1,666
-
Net income allocated to unvested restricted stock awards
(23)
(24)
(30)
(31)
Net income allocated to class A and class B common stock
21,759
20,092
27,919
26,252
Diluted weighted-average shares before consideration of 4.5% debentures
96,936
96,936
96,936
96,936
Shares issued if 100% of 4.5% Debentures are converted to equity
8,712
-
8,712
-
Diluted weighted-average shares
105,648
96,936
105,648
96,936
Net income per share - diluted
$ 0.21
$ 0.21
$ 0.26
$ 0.27
(A)
Under the "If Converted Method" we calculated diluted earnings per share using the more dilutive of the following two methods:
Method One:
Numerator = Income Available to Common Shareholders + Interest on 4.5% Debentures, Net of Tax
Denominator = Stock Outstanding + Common Shares Issued if 100% Coversion of 4.5% Debentures
Method Two:
Numerator = Income Available to Common Shareholders
Denominator = Stock Outstanding