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SPI Energy Groups - Investor Presentation Deck October 2020


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SPI Energy (NASDAQ: SPI) is an established green energy player with global operations in key markets in Australia, Europe, Japan and the United States. It is leveraging its sizable solar platform and industry expertise to make strategic investment opportunities in green industries with significant growth and earnings potential and/or industries than can benefit from green power. Learn more at

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SPI Energy Groups - Investor Presentation Deck October 2020

  1. 1. SPI Energy Co., Ltd. (NASDAQ GS: SPI) Investor Overview / October 2020
  2. 2. This presentation contains certain “forward-looking statements” relating to the business of the Company, its subsidiaries and the industries the Company operates in. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions. The forward-looking statements contained in this presentation include statements regarding the Company’s ability to execute its growth plan and meet revenue and sales estimates, and market acceptance of its products and services. These statements involve known and unknown risks and uncertainties, including, but not limited to, general business conditions, managing growth, and political, regulatory and other risks. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law. FORWARD-LOOKING STATEMENTS
  3. 3. Key Stats (as of July 9, 2020) Recent Price $7.78 Market Cap $136.7M Shares Outstanding 17.6M Float 9.8M Avg. Volume (90-day) 7.5M
  4. 4. Company Overview SPI Energy is a renewable energy company delivering competitive, clean energy solutions to customers across the world for more than 15 years. Operates in four business segments, providing end-to-end solutions:  EV and renewable energy products and project design; develop, build, and deliver  Renewable energy production and sales (Orange Power subsidiary)  Renewable energy system solutions and distribution for residential market  Renewable energy related industry investments
  5. 5. Value Proposition SPI Energy is a renewable energy asset management company with a 15-year history trading at just over 1x revenue (Fiscal 2019: $97.9M). With assets valued at nearly $200M and a current market cap of approx. $136M, the stock is trading well below peer group multiples. The Company has shown significant improvement with decreasing losses year-over-year with a trend towards near-term profitability.
  6. 6. 6 $114.60 $121.50 $125.60 $97.88 $0 $20 $40 $60 $80 $100 $120 $140 2016 2017 2018 2019 Fiscal Year Revenue (in Millions)
  7. 7. International Market Opportunity Focusing on OECD Markets North America Europe Asia Pacific
  8. 8. Business Segments Solar Electricity Residential Solar Solution Solar Related Investments EV and EV Charging Solutions
  9. 9. Business Model 1. Solar Electricity Delivery • Large solar assets portfolio in Greece, Italy, UK & Japan. • Over $100M investment in the portfolio of Global Solar projects which generate stable income for up to 20 years 2. Solar Farm Development • Strong Profitability with Solar development portfolio ongoing in Hawaii, Oregon & Japan • Establishing more opportunities in the United States 5. Solar Industry Related Investments • Strategic Investments in Solar related industries, such as Agriculture and other high-electricity consumed industries to enhance long-term profitability 3. Residential Solar Solution • One of the leading wholesale distributors of solar panels and storage in Australia and Asia Pacific • Building manufacturing facility in United States to deliver MADE IN USA Panel and Storage products 4. Electric Vehicle and EV Charging Solutions • Launched wholly owned subsidiary, EdisonFuture, Inc., in September 2020 to design and develop EV and EV charging solutions
  10. 10. Global Solar Projects - IPP Business Independent Power Producer (IPP) Sell energy Sell energy Power Grid Solar Electricity
  11. 11. Global Solar Projects- IPP Portfolio (Greece) Country Project name Gross capacity (MW) Connection date FIT terms Greece Sinsin Renewable Investment Limited 26.6 February to October 2013 EUR0.14- 0.38/kWh1 Heliostixio SA 1.082 Jul-2012 EUR0.215/kWh Heliohrisi SA 1.988 Jul-2012 EUR0.215/kWh Thermi Sun SA 4.4 Jul-2012 EUR0.215/kWh Total 34.07 * Sinsin Renewable has been deconsolidated because of the arbitration of 360MW EPC contracts failing to be awarded to SPI by Sinsin. There is a claim by SPI against Sinsin Renewable. Over $100m investment in Greece, Italy, UK, and Japan  Expected to generate stable operating cash flows  43 MW capacity internationally  Plan to spinoff Orange Power subsidiary in IPO Solar Electricity
  12. 12. Global Solar Projects - IPP Portfolio (UK, Italy & Japan) Country Project name Gross capacity (MW) Location Connection date FIT terms UK Cairnhill Solarfield 3.09 Turiff Feb-2016 1.3 ROCs Thompson 4.97 Standish, Wigan Mar-2016 1.3 ROCs Subtotal 8.06 Italy SunRoof I 0.48 Aprilia (Giardini) Dec-2009 EUR0.22- 0.35/kWhItalsolar 0.99 Laterza Subtotal 1.47 Japan Ibaraki 0.27 Bando Dec-2014 JPY36/kWh Subtotal 0.27 Global Total 43.87 Solar Electricity
  13. 13. Solar Development Portfolio - BT (Build & Transfer) Data Collection & Opportunity Assessment Strategy & Detail, and Planning & Development Financing & Construction Operation & Transfer
  14. 14. Solar Development Portfolio - (Oregon) • 18MW-DC portfolio in Greater Portland Area. • Projects have been submitted to the State of Oregon Community Solar Program in Portland General Electric (PGE) Territory. • Community Solar allows homeowners and businesses to subscribe to an offsite solar farm for their electricity. • Creates demand for developers like SPI to build solar farms at utility rates and sell at commercial utility rates, allowing for a high margin business. Community Solar
  15. 15. Solar Development Portfolio - (Hawaii) Hawaii Tranche 1 projects (Total 6.9MW) • Completes the sales of 5 projects in Oahu Island, with total 3.3MW Hawaii Tranche II projects (Total 4.7MW) • Continues to provide positive cashflow • PV System Completed • Substation construction being finalized • Substation completion expected in Q2 2020 Hawaii Tranche III projects (Total 10.27MW) • Latest system size from 9.4MW to 10.27MW. • Final completion in Q4 2021 • More potential to increase to 10.27 MW system size
  16. 16. Previous Development Experience 0.71MW in Sacramento, CA 0.51MW in Los Angeles, CA 0.53MW in New Jersey, NJ 6.35MW in Japan 47.73MW in UK 5.88MW in Italy
  17. 17. SolarJuice Business One of the largest providers of solar and clean energy products and solutions in the Pacific region:  Gained significant market share in Australia since launch in 2009  5,000+ B2B accounts since established and 700 active customers ordering monthly  Delivered 600+ MW Panels, 1400+MW Inverters, and 40+MW Batteries Residential Solar Solution
  18. 18. SolarJuice Business  An advanced Battery Energy Storage System (BESS+)  Unique design includes not only the battery, BMS and inverter in the cabinet  JV manufacturing facility at Wuhu, Anhui, China Residential Solar Solution
  19. 19. EdisonFuture Business EV and EV Charging Solutions  Launched wholly owned subsidiary, EdisonFuture, Inc., to design and develop electric vehicles ("EV") and EV charging solutions  Plans to partner with major manufacturers, as necessary  Based in Silicon Valley, CA  EV sales topped 2.1 million globally in 2019  40% YoY increase
  20. 20. Solar Industry Related Investments CBD & Hemp Business  Started test-round production of CBD Crude OIl in Q1 2020 at the facility of over 250,000 SQFT on 25 Acres land at Orange Cove, CA  Plan to build Solar project onsite to lower the electricity cost Alfalfa Business  US Department of Agriculture approved Export license  Solid customer base, including strategic partnerships with large dairy companies in Asia  Plan to build 5MW Solar project onsite to enhance profitability Umining Business  Multiple locations at Milwaukee and Canada  Plan to develope Solar project Nearby or cooperate with local Electricity company to lower the electricity cost Solar Related Investments
  21. 21. Accomplished Management Team Hoong Khoeng Cheong Chief Operating Officer & Director  Ex-Chairman of the Management Board and Chief Executive Officer of a publicly- listed company  30 years of engineering and operation experience in the solar and electronics industries  Master of Science in computer integrated manufacturing from Nanyang Technological University, Singapore Denton Peng Chairman & CEO  Founded LDK in 2005 and was the chairman of the board and its CEO till 2014  Graduated from Beijing University Guanghua School of Management with an executive MBA degree Jack Lee (Singapore) Vice President of Global Project Development  Jack has vast experience in various industries especially in electrical and infrastructure for the last 25 years.  Experienced manager in energy, industry infrastructure project/maintenance and solar PV construction.  Well-versed in project transaction with numerous successful deals and project financing in Southeast Asia, the UK and the US. Vassilis Orfanos (Greece) Vice President of European Assets Management October 1996 - August 2011, Technical Consultant of the Chairman and Maintenance Manager at Th. Vassilakis Group of companies (AEGEAN Airlines, HERTZ, SEAT, SAAB, OPEL, FORD).  January 2012 - today, Construction Manager and Operation Manager of SPI in Greece, managing 34MWp solar projects
  22. 22. Accomplished Management Team  His career started in 1998 with Solarex in sales, which later merged with BP Solar.  Worked in BP Solar for more than a decade in sales profile.  He became a co-founder of Solar Juice in late 2009.  He specializes in Handling Sales, Stock Movement, Contracts and Supply management Andrew Burgess (Australia) Vice President of Wholesales Business & Director of Solar Juice Rami Fedda (Australia) Vice President of Wholesales Business & Director of Solar Juice  He started to work as a process worker and moved to the purchasing department at Solarex, which later merged with BP Solar in 2000.  He worked there in various roles for almost a decade.  He became a co-founder of Solar Juice in late 2009 which is now the largest solar wholesale and distribution company in Australia.  He specializes in Manufacturing, Procurement, Planning & Logistics. Jacky Ju (Hong Kong) Vice President of Corporate Development & Assistant to Chairman  Jacky Ju was graduated from Shanghai Jiao Tong University.  He has 10 Years Experience in investment bank and advisory firms at AMTD Group and E&Y and PwC.  He specialize in M&A, investment, business and consulting in business transformation, change management, operation strategy and management etc.
  23. 23. Historical Income Statements Consolidated Statements of Operations Data 2016 2017 2018 2019 ($ in thousands, except share and per share data) Revenue 114,602 121,520 125,582 97,883 Total cost 102,532 111,428 114,525 90,693 Gross profit 12,070 10,092 11,057 7,190 Total operating expenses 103,670 19,371 14,009 26,361 Operating income (loss) -91,600 -9,279 -2,952 -19,171 Total other income (expense) -9,823 -17,098 -2,853 4,115 Loss from continuing operations before income taxes -101,423 -26,377 -5,805 -15,056 Income taxes expense 606 137 332 92 Loss from continuing operations -102,029 -26,514 -6,137 -15,148 Loss from discontinued operations, net of tax -118,939 -64,445 -6,122 - Net loss -220,968 -90,959 -12,259 -15,148 Net loss per common share: Basic and Diluted -34 -13 -2 -1.20 Note: SPI completed the disposition of China business on Dec 10, 2018
  24. 24. Balance Sheet Snapshot 2018 2019 ($ in thousands) Assets Total Cash 4,141 2,764* Total Current Assets 73,883 56,489 Net property, plant and equipment 21,150 33,768 Total non-current assets 114,845 122,354 Total Assets 188,728 178,853 Liabilities & stockholders’ equity Total Current Liabilities 166,531 170,017 Total non-current liabilities 22,127 14,311 Total stockholders’ equity -3,921 -8,184 Total liabilities and stockholders’ equity 188,728 178,853 * Cash does not reflect approx. $16M raised in direct offering in September 2020
  25. 25. Investment Overview 1. International Solar Assets Valued at $200M 2. Long-Term 20+ Year Contracts 3. Strong Revenue Base and Trend Towards Near-Term Profitability 4. Top Three Provider of Solar Power In Australia, Various Global Projects 5. High-Potential Investments in Up-And-Coming Industries including EV and EV Charging 6. Strong, Experienced International Management Team 7. Trading at Huge Discount under Peer Group Multiples
  26. 26. SPI Energy Co., Ltd. (NASDAQ GS: SPI) Global Headquarter Unit 15-16, 19/F, South Wuing, Delta House 3 On You Street Shatin, Shek Mun, NT, HONGKONG US Location 4677 Old Ironside Drive, Suite 190, Santa Clara, CA 95054 Investor Contact Dave Gentry, CEO RedChip Companies 407-491-4498 Investor Presentation October 2020