Third Quarter 2016 Supplementary Slides November 9, 2016
© 2016 SunPower Corporation
© 2016 SunPower Corporation
1
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) our project pipeline, including projected output and timelines; (b) the long-term fundamentals for solar power, the impact of election results and near- and long-term market dynamics; (c) our expectations for the success and financial impact of our planned cost reduction and related initiatives, including impact on our operating expenses, inventory, leverage, working capital and market share; (d) our ability to successfully expand our partnership and collaboration with Total in international markets, and with respect to research and development; (e) adjustments to our manufacturing capacity, including plans related to cell capacity reduction; (f) our ability to reduce costs and execute on our cost roadmap and other planned initiatives; (g) the impact and elements of our financial model, including our modified sales process; (h) fourth quarter fiscal 2016 guidance, including GAAP revenue, gross margin, and net income (loss), as well as non-GAAP revenue, gross margin, Adjusted EBITDA, and MW deployed; and (i) full year fiscal 2016 guidance, including GAAP revenue, gross margin and net loss, as well as non-GAAP revenue, gross margin, capital expenditures, Adjusted EBITDA, gigawatts deployed, operating expenses, equity in earnings, depreciation, tax expense and weighted average shares. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy prices; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (3) regulatory changes and the availability of economic incentives promoting use of solar energy; (4) challenges inherent in constructing certain of our large projects; (5) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (6) fluctuations in our operating results; (7) maintaining or increasing our manufacturing capacity and containing manufacturing difficulties that could arise; (8) challenges managing our joint ventures and partnerships; (9) challenges executing on our HoldCo and YieldCo strategies, including the risk that 8point3 Energy Partners may be unsuccessful; (10) fluctuations or declines in the performance of our solar panels and other products and solutions; (11) our ability to meet our cost reduction targets and implement the planned realignment of our manufacturing operations and power plant segment and (12) the outcomes of previously disclosed litigation. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this presentation are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
© 2016 SunPower Corporation
2
Agenda • Q3 2016 overview • Strategic view • Cost reduction initiatives
• Total partnership update • Q3 2016 financial review
• Holdco update • Guidance
© 2016 SunPower Corporation
3
Q3 2016 Summary • Overview – Strong quarter driven by Henrietta project sale
• Power plants – US project development – Henrietta sold to 8point3, to deliver 350-MW in Q4 – Launched next gen Oasis® 3.0 complete solution - >700-MW awarded to date
• Distributed generation – Residential – ~40-MW of SunPower Equinox shipments in US, EU/Japan above plan – Commercial – MW shipped up ~50% q/q, multiple public sector wins
• Technology – Manufacturing execution – cost / yield roadmaps on track, acquired Fab 3 JV – P-Series ramp on track – field data ahead of plan, 30% sequential cell cost reduction © 2016 SunPower Corporation
4
Market Overview • Long term industry growth prospects remain strong • Upstream – global oversupply conditions continuing, impacting module ASPs
• Residential – near term industry growth moderating • Commercial – project timing volatility • Power Plant – Global PPA pricing remains aggressive
© 2016 SunPower Corporation
5
Keys for SunPower Success • Continued innovation: next gen panel, brand, smart energy, complete solutions • Select development in core markets, leverage P-Series & Oasis outside those markets • Optimize cell production – focus on lowest cost, highest technology fabs • Expand global footprint through Total partnership • Focus on near term cash generation, profitable growth / strengthen balance sheet • Utilize 8point3 as a strategic asset for project ownership
© 2016 SunPower Corporation
6
Cost Reduction Initiatives: Positioning for 2H17-1H18 Growth • Right size capacity to match profitable demand and lower manufacturing costs • Reduce annual 2017 non-gaap opex to approximately $350 million / improve gross margins • Decrease inventory to improve working capital and de-lever balance sheet • Initiatives to improve cash flow / liquidity – Operating cash flow positive through end of 2017 – End 2017 with approximately $300 million in cash
• Accelerate cell / BOS cost roadmaps – drive complete solution market share
© 2016 SunPower Corporation
7
Total/SPWR Partnership • Signed four-year, up to 200-MW supply agreement – Total to solarize existing facilities across the world – ~$90 million pre-pay
• Enhanced partnership for international solar project development – Potential Total project ownership opportunities in key international markets (Japan, South Africa, France)
• Increased collaboration / coordination on R&D – Total to take lead on certain systems development including residential smart energy
© 2016 SunPower Corporation
8
Fab 4 Solar Cell Efficiency Trends 25.1%
25.2
Highest Lot Efficiency
Cell Efficiency (%)
25.0 24.7 %
24.8
Median Efficiency
24.6 24.4 24.2
24.0 23.8 Apr
May
Jun
Jul
Aug
Sept
Oct
Nov © 2016 SunPower Corporation
9
Summary • Long term industry growth prospects remain strong – positioning for 2018-20 industry improvement • Adjusting capacity for current market conditions – optimize MW production / reduce inventory • Continued investment in next gen tech – cell / panel, complete solutions, smart energy, storage • Further expense reduction – opex, cost roadmaps, headcount • Expanded international partnership with Total • Cash flow driven model through 2017 – de-lever balance sheet • Company will host a conference call on December 7, 2016 to provide additional detail © 2016 SunPower Corporation 10
Q3 2016 Financial Overview Quarter Ending 10/2/16
Quarter Ending 7/3/16
Quarter Ending 9/27/15
$770.1
$401.8
$441.4
Power Plant
$450.6
$104.7
$133.2
Commercial
$143.1
$110.5
$145.9
Residential
$176.4
$186.6
$162.3
20.0%
13.1%
17.7%
Power Plant
23.4%
(1.6%)
8.2%
Commercial
8.6%
10.8%
21.4%
Residential
20.6%
22.6%
22.2%
$97.9
$103.4
$93.6
Adjusted EBITDA
$148.2
$29.9
$54.2
Tax Rate (Non-GAAP)
(1.0%)
(13.2%)
40.7%
Net Income (Loss) – (GAAP)
($40.5)
($70.0)
($56.3)
Net Income (Loss) – (Non-GAAP)
$97.0
($30.1)
$20.5
Diluted Wtg. Avg. Shares Out. (GAAP) Diluted Wtg. Avg. Shares Out. (Non-GAAP)
138.2 141.8
138.1 138.1
136.5 156.2
($0.29)
($0.51)
($0.41)
$0.68
($0.22)
$0.13
($ millions, except percentages and per share data) Revenue (Non-GAAP)
Gross Margin (Non-GAAP)
Non-GAAP Operating Expense
Diluted EPS (GAAP) Diluted EPS (Non-GAAP)
Note: Information concerning non-GAAP measures, including non-GAAP to GAAP reconciliations, can be found in the press release available on the company’s website.
© 2016 SunPower Corporation 11
Q316 Financial Highlights Closed sale of Henrietta project to 8point3 - $134 million in revenue Recorded $147 million goodwill impairment charge
Completed acquisition of Fab 3 AUO JV Above market poly contracts
© 2016 SunPower Corporation 12
Current Holdco Project Summary Operating
In Construction
Contracted
TOTAL
Residential
283
30
14
327
Commercial
93
86
12
192
Power Plants
1
528
841
1,371
377
644
867
1,889
Total MW
© 2016 SunPower Corporation 13
Cash Flow Driven Model Manage business with focus on improving cash flow Cash flow and liquidity will be the key performance metrics for 2017
Modified Power Plant sales process and timing to expand universe of buyers Focus on improving margins by leveraging our complete solution strategy
© 2016 SunPower Corporation 14
Q416 / FY 2016 Financial Guidance Q4’16
FY’16
GAAP Revenue
$0.9 to $1.1B
$2.43 to $2.63B
GAAP Gross Margin
0% to 2%
8% to 10%
GAAP Net Income (Loss)
($125) to ($100)M
($320) to ($295)M
Non-GAAP Revenue
$1.0 to $1.2B
$2.6 to $2.8B
Non-GAAP Gross Margin
1% to 3%
9% to 11%
Adjusted EBITDA
$0 to $25M
$185M to $210M
© 2016 SunPower Corporation 15
Third Quarter 2016 Supplementary Slides November 9, 2016
© 2016 SunPower Corporation
All rights reserved. SUNPOWER, the SUNPOWER logo, and OASIS are trademarks or registered trademarks of SunPower Corporation in©the U.S.SunPower and 2016 Corporation 16 other countries as well. Other marks are the property of their respective owners.
Q4 and FY 2016 Financial Guidance Q4’16
FY’16
Residential MW Deployed
90 to 100 MW
320 to 330 MW
Commercial MW Deployed
75 to 85 MW
275 to 285 MW
Power Plant MW Deployed
70 to 80 MW
730 to 740 MW
TOTAL MW Deployed
235 to 265 MW
1,325 to 1,355 MW
TOTAL MW Recognized
540 to 640 MW
1,260 to 1,340 MW
© 2016 SunPower Corporation 17
Residential Energy Systems Q3’16
Cumulative
MW Booked
24.5 MW
326.8 MW
MW Installed
19.0 MW
296.5 MW
MW Deployed
19.6 MW
306.5 MW
Nominal Contract Payments Added
$77.0 M
$1,273 M
Residential Energy Contracts Added
2,712
38,994
Average System Size
8.8kW
8.4kW
• Cumulative numbers were adjusted to exclude leased systems sold to 8point3 Energy Partners on June 24, 2015: • Total MW: 46.75 MW • Lease count: 5,873 • Net contract payments: $258.1 million. © 2016 SunPower Corporation 18
Third Quarter 2016 Supplementary Slides November 9, 2016
© 2016 SunPower Corporation
© 2016 SunPower Corporation 19
Q3’16 Segment Reporting Reconciliation (In thousands): EBITDA as reviewed by CODM Distributed Generation Residential Commercial Power Plant Total Segment EBITDA as reviewed by CODM Reconcilation to Consolidated Statements of Income (Loss) 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Restructuring Expense Loss on arbitration ruling IPO-related costs Goodwill impairment Other Equity in earnings of unconsolidated investees Net Loss Attributable to Noncontrolling Interests Cash interest expense, net of interest income Depreciation Corporate and Unallocated Income (loss) before taxes & equity in earnings of unconsolidated investees
Three Months Ended Oct. 2, Sep. 27, 2016 2015
Nine Months Ended Oct. 2, Sep. 27, 2016 2015
30,505 (475) 100,007 130,037
43,777 22,724 603 67,104
97,175 (2,670) 75,207 169,711
151,483 13,736 52,576 217,795
(19,320) (47) (2,098) (277) (15,907) (3,018) (308) (31,202) (57,765) 20 (16,770) (15,362) (14,990) (36,809) 18,188 (65,628)
(19,371) 516 (14,898) (1,098) (517) (726) 7,500 (1,233) (16) (5,052) (30,959) (8,348) (36,142) (12,873) (56,113)
(48,078) (7,732) (8,197) (3,265) (48,902) (14,351) (963) (31,415) 5,852 (35) (57,765) 31 (24,356) (53,559) (40,318) (108,365) 14,724 (256,983)
(14,683) 16,095 (42,484) (2,094) (5,768) (6,056) 6,459 (26,364) (175) (9,107) (80,403) (27,463) (95,566) (41,178) (110,992)
© 2016 SunPower Corporation 20
GAAP to Non-GAAP Guidance Reconciliation – Q4’16 / FY’16 (1) Estimated non-GAAP amounts above for Q4 2016 include net adjustments that increase (decrease) revenue by approximately $15 million related to utility and power plant projects, ($30) million related to sale of operating lease assets, and $115 million related to sale-leaseback transactions. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase revenue by approximately $15 million related to 8point3, $30 million related to utility and power plant projects, and $125 million related to saleleaseback transactions. (2) Estimated non-GAAP amounts above for Q4 2016 include net adjustments that increase (decrease) gross margin by approximately $15 million related to utility and power plant projects, ($10) million related to sale of operating lease assets, $10 million related to sale-leaseback transactions, $4 million related to stock-based compensation expense, and $1 million related to amortization of intangible assets. Estimated non-GAAP amounts above for fiscal 2016 include net adjustments that increase (decrease) gross margin by approximately $10 million related to 8point3, $20 million related to utility and power plant projects, $15 million related to saleleaseback transactions, $20 million related to stock-based compensation expense, $6 million related to amortization of intangible assets, $1 million related to non-cash interest expense, and ($6) million related to arbitration ruling. (3) Estimated Adjusted EBITDA amounts above for Q4 2016 include net adjustments that increase (decrease) net loss by approximately ($15) million related to utility and power plant projects, $10 million related to sale of operating lease assets, ($10) million related to sale-leaseback transactions, ($15) million related to stock-based compensation expense, ($3) million related to amortization of intangible assets, ($1) million related to non-cash interest expense, ($5) million related to restructuring, ($20) million related to interest expense, ($6) million related to income taxes, and ($60) million related to depreciation. Estimated Adjusted EBITDA amounts above for fiscal 2016 include net adjustments that increase (decrease) net loss by approximately ($48) million related to 8point3, ($20) million related to utility and power plant projects, ($15) million related to sale-leaseback transactions, ($65) million related to stock-based compensation expense, ($9) million related to amortization of intangible assets, ($9) million related to noncash interest expense, ($58) million related to goodwill impairment, ($36) million related to restructuring, $6 million related to arbitration ruling, ($60) million related to interest expense, ($23) million related to income taxes, and ($168) million related to depreciation. © 2016 SunPower Corporation 21
GAAP to Non-GAAP Reconciliation SUNPOWER CORPORATION RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentages and per share data) (Unaudited) Adjustments to Revenue:
GAAP revenue Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Non-GAAP revenue
$
Oct. 2, 2016 729,346
$
33,301 37 7,424 770,108
$
Oct. 2, 2016 129,208
THREE MONTHS ENDED Jul. 3, Sep. 27, 2016 2015 $ 420,452 $ 380,218
$
(1,400) (40,085) 10,183 12,646 401,796
$
59,619 1,567 441,404
$
$
NINE MONTHS ENDED Oct. 2, Sep. 27, 2016 2015 1,534,673 $ 1,202,109 16,727 13,490 28,010 12,646 1,605,546
$
59,619 (13,016) 1,248,712
Adjustments to Gross margin:
GAAP gross margin Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Arbitration ruling Other Non-GAAP gross margin GAAP gross margin (%) Non-GAAP gross margin (%)
$
THREE MONTHS ENDED Jul. 3, Sep. 27, 2016 2015 $ 41,294 $ 62,644
$
NINE MONTHS ENDED Oct. 2, Sep. 27, 2016 2015 222,039 $ 224,343
13,788 47 2,085 85
(210) 4,128 2,966 2,988
18,296 (516) -
8,936 7,732 8,163 3,073
18,296 (16,095) -
6,029 2,567 283 154,092
5,464 1,530 284 (5,852) 52,592
4,210 601 487 (7,500) 78,222
15,618 5,111 886 (5,852) 265,706
10,035 601 1,646 (6,459) 159 232,526
17.7% 20.0%
$
9.8% 13.1%
$
16.5% 17.7%
$
14.5% 16.5%
$
18.7% 18.6%
© 2016 SunPower Corporation 22
GAAP to Non-GAAP Reconciliation Adjustments to Net income (loss):
GAAP net loss attributable to stockholders Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Goodwill impairment Restructuring expense Arbitration ruling IPO-related costs Other Tax effect Non-GAAP net income (loss) attributable to stockholders
$
$
THREE MONTHS ENDED Sep. 27, Jul. 3, Oct. 2, 2015 2016 2016 (56,326) $ (69,992) $ (40,545)
$
NINE MONTHS ENDED Sep. 27, Oct. 2, 2015 2016 (59,398) $ (195,946)
19,320 47 2,098 277
18,039 4,128 2,979 2,988
19,371 (516) -
48,078 7,732 8,197 3,265
14,683 (16,095) -
15,907 3,018 308 57,765 31,202 (20) 7,655 97,032
16,475 3,168 309 117 (5,852) 35 (12) (2,454) (30,072)
14,898 1,098 517 726 (7,500) 1,233 16 46,959 20,476
48,902 14,351 963 57,765 31,415 (5,852) 35 (31) 6,885 25,759
42,484 2,094 5,768 6,056 (6,459) 26,364 175 51,696 67,368
$
$
$
$
© 2016 SunPower Corporation 23
GAAP to Non-GAAP Reconciliation Adjustments to Net income (loss) per diluted share: Oct. 2, 2016 Net income (loss) per diluted share Numerator: GAAP net loss available to common stockholders1 Non-GAAP net income (loss) available to common stockholders
1
NINE MONTHS ENDED Sep. 27, Oct. 2, 2015 2016
Sep. 27, 2015
$
(40,545)
$
(69,992)
$
(56,326)
$
(195,946)
$
(59,398)
$
97,032
$
(30,072)
$
20,808
$
25,759
$
68,762
Denominator: GAAP weighted-average shares Effect of dilutive securities: Stock options Restricted stock units Upfront warrants (held by Total) Warrants (under the CSO2015) 0.75% debentures due 2018 Non-GAAP weighted-average shares1 GAAP net loss per diluted share Non-GAAP net income (loss) per diluted share
THREE MONTHS ENDED Jul. 3, 2016
$ $
138,209
138,084
136,473
137,832
134,294
384 3,179 141,772
138,084
18 1,170 6,531 12,026 156,218
684 4,962 143,478
32 1,882 6,880 1,218 12,026 156,332
(0.29) 0.68
$ $
(0.51) (0.22)
$ $
(0.41) 0.13
$ $
(1.42) 0.18
$ $
(0.44) 0.44
1
In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.0% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share. If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-GAAP net income (loss) per diluted share.
© 2016 SunPower Corporation 24
GAAP to Non-GAAP Reconciliation Adjusted EBITDA:
GAAP net loss attributable to stockholders Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Goodwill impairment Restructuring expense Arbitration ruling IPO-related costs Other Cash interest expense, net of interest income Provision for income taxes Depreciation Adjusted EBITDA
$
$
THREE MONTHS ENDED Oct. 2, Jul. 3, Sep. 27, 2016 2016 2015 (40,545) $ (69,992) $ (56,326)
$
NINE MONTHS ENDED Oct. 2, Sep. 27, 2016 2015 (195,946) $ (59,398)
19,320 47 2,098 277
18,039 4,128 2,979 2,988
19,371 (516) -
48,078 7,732 8,197 3,265
14,683 (16,095) -
15,907 3,018 308 57,765 31,202 (20) 14,990 7,049 36,809 148,225
16,475 3,168 309 117 (5,852) 35 (12) 13,144 6,648 37,730 29,904
14,898 1,098 517 726 (7,500) 1,233 16 8,348 36,224 36,142 54,231
48,902 14,351 963 57,765 31,415 (5,852) 35 (31) 40,318 16,878 108,365 184,435
42,484 2,094 5,768 6,056 (6,459) 26,364 175 27,463 37,916 95,566 176,617
$
$
$
$
© 2016 SunPower Corporation 25
GAAP to Non-GAAP Reconciliation SUPPLEMENTAL DATA (In thousands, except percentages) THREE MONTHS ENDED October 2, 2016 Revenue
GAAP Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Goodwill impairment Restructuring expense Other Tax effect Non-GAAP
$
Residential 170,345
Power Plant $ 419,047
3,181 -
31,456 37 -
(250) 2,085 -
2,162 85
11,876 47 -
143,135
450,540
2,083 869 67 36,363
1,744 868 84 12,279
2,202 830 132 105,450
$
$
$
$
$
Residential 31,509
18.5%
20.6%
$
$
Commercial 7,336
Operating expenses
Commercial $ 139,954
(1,336) 7,424 176,433
Gross margin
5.2%
8.6%
$
$
Power Plant 90,363
Research and development
Selling, general and administrative
Restructuring charges
Other income (expense), net
Benefit from (provision for) income taxes
Equity in earnings of unconsolidated investees
Net income (loss) attributable to stockholders $ (40,545)
21.6% -
-
-
1,062 13 192
-
4,470 -
19,320 47 2,098 277
2,935 4 -
6,943 451 21 (33) -
31,202 -
57,765 13 -
7,655
-
15,907 3,018 308 57,765 31,202 (20) 7,655 97,032
23.4%
$
July 3, 2016 Revenue
GAAP Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Restructuring expense Arbitration ruling IPO-related costs Other Tax effect Non-GAAP
$
Residential 177,715
Commercial $ 97,846
(1,287) 10,183 -
$
186,611
Gross margin
Power Plant $ 144,891
12,646
$
110,492
$
(113) (40,085) -
$
104,693
$
Residential 38,756
21.8%
$
Commercial 8,323
Operating expenses
8.5%
$
Power Plant (5,785)
Research and development
Selling, general and administrative
179 2,988
30 4,128 -
-
-
1,652 576 63 (1,345) 42,249
745 608 52 (922) 11,973
3,067 346 169 (3,585) (1,630)
2,965 1,187 3 -
8,046 451 22 35 -
$
10.8%
$
Other income (expense), net
Benefit from (provision for) income taxes
Equity in earnings of unconsolidated investees
Net income (loss) attributable to stockholders $ (69,992)
-
17,188 -
18,039 4,128 2,979 2,988
(2,454)
-
16,475 3,168 309 117 (5,852) 35 (12) (2,454) (30,072)
-4.0%
(419) 2,966 -
22.6%
Restructuring charges
117 -
1,061 13 (12) -
-1.6%
$
September 27, 2015 Revenue
GAAP Adjustments based on IFRS: 8point3 Utility and power plant projects Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Restructuring expense Arbitration ruling IPO-related costs Other Tax effect Non-GAAP
$
$
Gross margin
Residential 163,563
Commercial $ 84,983
Power Plant $ 131,672
(1,311) -
60,930 -
1,567
(508) -
18,804 -
(516)
145,913
133,239
1,541 197 155 (2,456) 36,081
917 104 90 (1,299) 31,262
1,752 300 242 (3,745) 10,879
162,252
$
$
$
$
Residential 37,152
22.7%
22.2%
$
$
Commercial 12,646
Operating expenses
14.9%
21.4%
$
$
Power Plant 12,846
Research and development
Selling, general and administrative
Restructuring charges
Other income (expense), net
Benefit from (provision for) income taxes
Equity in earnings of unconsolidated investees
Net income (loss) attributable to stockholders $ (56,326)
82
19,371 (516)
9.8%
8.2%
-
-
2,172 321 9 -
8,516 176 21 1,233 -
-
993 -
726 -
16 -
-
-
46,959
$
14,898 1,098 517 726 (7,500) 1,233 16 46,959 20,476
© 2016 SunPower Corporation 26
GAAP to Non-GAAP Reconciliation NINE MONTHS ENDED October 2, 2016 Revenue
GAAP Adjustments based on IFRS: 8point3 Utility and power plant projects Sale of operating lease assets Sale-leaseback transactions Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Goodwill impairment Restructuring expense Arbitration ruling IPO-related costs Other Tax effect Non-GAAP
$
Residential 499,867
Power Plant $ 744,765
3,181 12,646
17,481 13,490 -
(1,154) 8,163 -
2,341 3,073
7,749 7,732 -
305,868
775,736
4,562 1,856 201 (1,345) 116,195
3,141 2,102 175 (922) 32,584
7,915 1,153 510 (3,585) 116,927
$
$
$
$
$
Residential 103,912
20.8%
22.2%
$
$
Commercial 22,674
Operating expenses
Commercial $ 290,041
(3,935) 28,010 523,942
Gross margin
7.8%
10.7%
$
$
Power Plant 95,453
Research and development
Selling, general and administrative
Restructuring charges
Other income (expense), net
Benefit from (provision for) income taxes
Equity in earnings of unconsolidated investees
Net income (loss) attributable to stockholders $ (195,946)
12.8% -
-
-
3,185 34 192
-
35,957 -
48,078 7,732 8,197 3,265
8,932 3,007 14 -
24,352 6,233 63 35 (32) -
31,415 -
57,765 1 -
6,885
-
48,902 14,351 963 57,765 31,415 (5,852) 35 (31) 6,885 25,759
15.1%
$
September 27, 2015 Revenue
GAAP Adjustments based on IFRS: 8point3 Utility and power plant projects Other adjustments: Stock-based compensation expense Amortization of intangible assets Non-cash interest expense Restructuring expense Arbitration ruling IPO-related costs Other Tax effect Non-GAAP
$
Residential 471,092
$
(1,311) -
$
469,781
Commercial 197,030
Gross margin
$
60,930 -
$
257,960
Power Plant 533,987
$
(13,016)
$
520,971
$
Residential 104,930
22.3%
$
Commercial 18,971
Operating expenses
9.6%
$
Power Plant 100,442
Research and development
Selling, general and administrative
Restructuring charges
Other income (expense), net
Benefit from (provision for) income taxes
Equity in earnings of unconsolidated investees
Net income (loss) attributable to stockholders $ (59,398)
82
14,683 (16,095)
18.8%
(508) -
18,804 -
(16,095)
-
-
-
(3,695) -
-
-
3,675 197 518 (2,084) 41 106,769
1,836 104 252 (1,697) 33 38,303
4,524 300 876 (2,678) 85 87,454
6,825 963 27 -
25,624 530 63 11,168 -
6,056 -
4,032 15,196 16 -
51,696
-
22.7%
$
14.8%
$
16.8%
$
42,484 2,094 5,768 6,056 (6,459) 26,364 175 51,696 67,368
© 2016 SunPower Corporation 27
Third Quarter 2016 Supplementary Slides November 9, 2016
© 2016 SunPower Corporation
© 2016 SunPower Corporation 28
