Supp slides q4_2012_v4_26_feb_1900h

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Supp slides q4_2012_v4_26_feb_1900h

  1. 1. Q4 2012 Supplemental Earnings CallPresentationInvestor RelationsFebruary 26, 2013
  2. 2. Disclaimers & Safe Harbor StatementThis presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities ofTrina Solar Limited (the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it orany part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.The information herein has been prepared by the Company solely for use in this presentation. No representation,warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,completeness or correctness of the information or the opinions contained herein. None of the Company or any of itsaffiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from anyuse of this presentation or its contents or otherwise arising in connection with the presentation.This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement areforward-looking statements, including but not limited to, the Companys ability to raise additional capital to finance theCompanys activities; the effectiveness, profitability and marketability of its products; the future trading of the securitiesof the Company; the period of time for which the Companys current liquidity will enable the Company to fund itsoperations; general economic and business conditions; the volatility of the Companys operating results and financialcondition; and other risks detailed in the Companys filings with the Securities and Exchange Commission.These forward-looking statements involve known and unknown risks and uncertainties and are based on currentexpectations, assumptions, estimates and projections about the Company and the industry in which the Companyoperates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurringevents or circumstances, or to changes in its expectations, except as may be required by law. Although the Companybelieves that the expectations expressed in these forward looking statements are reasonable, it cannot assure you thatsuch expectations will turn out to be correct, and the Company cautions investors that actual results may differmaterially from the anticipated results. 2
  3. 3. Fourth Quarter and Fiscal Year 2012 Performance Overview Categories Fourth Quarter 2012 Full Year 2012 Module and System Deliveries 415 MW (+9.0% QoQ) 1.6 GW (+5.4% YoY) Revenue (US$) $302.7 mil (+1.6% QoQ) $1.30 bil (-36.7% YoY) Overall gross margin (%) 1.9%(1) 4.4%(1) Operating margin (%) -23.3% -20.4% Earnings per ADS -1.23 -3.77 (1) Includes write-downs and provisions Quarterly Revenue and Shipment 436 425 Gross Profit and Gross Margin 419 415 380 380 8.4% 350 346 7.1% 303 5.8% 298 31.0 1.9% 29.0 0.8% 20.3 5.6 2.4 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Revenue (US$, million) Shipment (MW) Gross Profit (US$, million) Gross Margin 3
  4. 4. Financial Highlights & Outlook Q1 2013 Guidance FY 2013 Guidance PV Module and System Delivery (MW) 420 - 430 MW 2 - 2.1 GW Overall gross margin (%) Low single digit * − * Includes write-downs and provisions Annualized Manufacturing CapacityValue Jun 30, 2012 Sep 30, 2012 End of Q4, 2012 End of Q1, 2013Areas (MW) 1 (MW) 1 (MW) 1 (MW) 1  Obtained new CDB loan facilities in total amount of $250 million  Reduced inventory by $48.6 million, and accounts receivables by $79.1 million, to $318.5 million and $390.2 million respectivelyModules 2,400 2,400 2,400 2,400  Repurchased $5.0 mil of July 2013 convertible senior notes, resulting in a $0.6 mil gain (Dec. 2012: $83.6 mil CB principle balance)Cells 2,400 2,400 2,400 2,400  Efficient manufacturing and supply chain management improvedWafers 1,200 1,200 1,200 1,200 production costs, which was affected by under-utilization (Total $0.61 per watt, Si and non-Si, excluding inventory effects)Ingots 1,200 1,200 1,200 1,200 1. Based on average manufacturing yield 4
  5. 5. Strong Balance Sheet Selected Financials Highlights ($ mm) Dec. 31 , 2012 Sep. 30 , 2012 Dec. 31 , 2011 Cash and Cash Equivalents, & Restricted Cash 918 703 896 Accounts Receivable 390 469 467 Inventories 319 367 250 Current Portion of advances to suppliers 58 70 63 Net PP&E 893 903 920 Total Assets 2,865 2,861 2,877 Total Debt 1,374 1,209 1,037 Short-term Debt 959* 778* 389 Long-term Debt 415 431 648* Total Liabilities 1,983 1,891 1,732 Shareholders Equity 882 969 1,145 *Includes Senior Convertible notes due July. 2013 5
  6. 6. Sales Revenue Breakdown by Regions Q3 2012: US$ 298.0 million Q4 2012: US$ 302.7 million ROW, 4.1% ROW 0.8% ROE, 4.0% Japan 3.3% Japan, 7.2% ROE UK 2.5% 8.1% USA 14.5% UK, 4.6% USA, 22.5% India 7.1% Greece, 2.8% Australia Australia, 7.4% Germany, 8.2% 12.9% China 13.5% Germany 38.9% China, 32.4% Italy, 2.1% Italy 3.1% 1. Geographical breakdown based on country record of sale, not end-installation 2. Includes sales to multi-regional developers 4Q 2012 Operational highlights:  Increased sales in growth markets: China, US, Japan, UK  Normalized G&A expense reduction from 2H-2012 streamlining and cost-cutting  Positive Operating Cashflow: $74.6 million  Cash Balances increased $215 million (to $918 million)* * Cash and Cash Equivalents and Restricted Cash (December 31, 2012 ) 6
  7. 7. FY 2012 Shipment Breakdown by Outlook FY 2011 FY 2012 UK Japan ROW 3.2% Belgium ROW 3.1% 3.0% ROE 3.2% 2.0% 4.5% ROE 5.7% China 7.1% USA 21.5% USA 25.5% Spain China 13.2% 12.9% Germany Italy 12.8% Germany Australia 33.1% 37.0% 6.1% Italy 6.1% 1. Geographical breakdown based on country record of sale, not end-installation Commercial Strategies:  Continue expansion in new growth markets, e.g. China, Japan, Latin America, and the Middle East  Increased project related opportunities as PPA pricing approached with local grid costs  Projects Systems Business targeted 20% of 2013 Gross Revenue 7
  8. 8. Global OperationsOver 20 sales and service locations worldwide New Delhi, India China Chengdu Urumqi Beijing Midlands, UK Seoul, S. Korea Ontario, Canada Tokyo, Japan Zurich Regional HQ San Jose, CA Europe HQ N. America HQ Changzhou, Jiangsu Munich Corporate HQ & Factory Shanghai, China Bangkok, Thailand Madrid Penang Milan Singapore APMEA HQ Santiago, Chile Johannesburg Abu Dhabi, UAE Sydney, AUS & NZ office Corporate & Regional Headquarters Regional Sales & Marketing Branches 8
  9. 9. Q&A Session• Jifan Gao, Chief Executive Officer• Terry Wang, Chief Financial Officer• Zhiguo Zhu, SVP and President of Trina Solar Module Business Unit• Thomas Young, Vice President Investor Relations 9
  10. 10. CHINA KOREA JAPAN U.S.A. GERMANY ITALY SPAINSWITZERLAND AUSTRALIA www.trinasolar.com

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