Enphase Energy : 2024 Stockholders Presentation

Annual Meeting of Stockholders

Enphase Energy, Inc. May 15, 2024

Agenda

1

2

Welcome and introductions

Call to order

Presentation of Affidavit of Mailing, Availability of the List of Stockholders of Record and Announcement of Quorum

Review of proposals

Proposal-related questions and answers

Preliminary voting results

Adjournment

Company presentation

Company-related questions and answers

2

Board of directors

Steve Gomo

Chair, Board and Audit

Committee

Former CFO of NetApp,

Gemplus International,

and Silicon Graphics

Member, Board of

Directors, Nutanix, Inc.

and Micron Technology,

Inc.

Joseph Malchow

Founding Partner of

HNVR Technology

Investment Management

Member, Board of

Directors, Enovix

Corporation

Jamie Haenggi

Member, Nominating &

Corporate Governance

Committee

President, ADT Solar, a division of ADT Security Services

Richard Mora

Member, Audit Committee

Member, Compensation

Committee

Former CEO of Landis+Gyr

Ben Kortlang

Chair, Nominating &

Corporate Governance

Committee

Member, Audit Committee

Founding Partner of G2VP,

LLC

Thurman John Rodgers

Chair, Compensation

Committee

Member, Nominating &

Corporate Governance

Committee

Founder and former President and CEO of Cypress Semiconductor

Chair, Board of Directors, Enovix Corporation

CEO and Executive Chairman, Complete Solaria, Inc.

Badri Kothandaraman

President and CEO of Enphase Energy

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Agenda

1

2

Welcome and introductions

Call to order

Presentation of Affidavit of Mailing, Availability of the List of Stockholders of Record and Announcement of Quorum

Review of proposals

Proposal-related questions and answers

Preliminary voting results

Adjournment

Company presentation

Company-related questions and answers

4

Agenda

1

2

Welcome and introductions

Call to order

Presentation of Affidavit of Mailing, Availability of the List of Stockholders of Record and Announcement of Quorum

Review of proposals

Proposal-related questions and answers

Preliminary voting results

Adjournment

Company presentation

Company-related questions and answers

5

Safe harbor

Use of Forward-Looking Statements	• As presented in the "Reconciliation of Non-GAAP Financial Measures" page, each of the non-GAAP financial measures excludes
This presentation contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities	one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of
Litigation Reform Act of 1995, including, but not limited to, Enphase Energy's financial performance; its business strategies, including	Enphase Energy's current operating performance and a comparison to its past operating performance:
its operations and anticipated trends and developments in markets in which it operates and in the markets in which it plans to	• Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP
expand; the timing of market adoption of Enphase Energy's new products and technologies and the benefits to homeowners and
measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by
installers; additional manufacturing capability in the United States; the capabilities and performance of its technology and products,
Enphase Energy's stock price at the time of an award over which management has limited to no control.
including different product features; Enphase Energy's ability to advance a sustainable future for all; and Enphase Energy's
• Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy's business
performance in operations, including product quality, safety, reliability, cost management and customer service. Any statements
that are	not of historical fact, may be forward-looking statements. Words used such as "anticipates," "believes,"	acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense.
"could,"	"potential," "predicts," "continues," "designed," "estimates," "expects," "goal," "intends," "likely," "may," "ongoing,"	Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy's ongoing
"plans," "projects," "pursuing," "seeks," "should," "will," "would" and similar expressions are intended to identify forward-looking	financial performance.
statements, although not all forward-looking statements contain these words. All forward-looking statements are based on Enphase	• Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the
Energy's current assumptions, expectations and beliefs, and involve substantial risks and uncertainties that may cause results,	nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily
performance or achievement to materially differ from those expressed or implied by these forward-looking statements. You are
consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired
cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results.
intangible assets, and other contract termination costs resulting from restructuring initiatives.
A detailed discussion of risk factors that affect Enphase Energy's business is included in the filings it makes with the Securities and
• Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount
Exchange Commission (SEC) from time to time, including its most recent reports on Form 10-K and Form 10-Q, particularly under the
heading "Risk Factors." Copies of these filings are available on the Enphase Energy's website at http://investor.enphase.com/sec-	because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured
filings, or on the SEC website at www.sec.gov. All forward-looking statements in this presentation are based on information	and such amortization expense s not reflective of Enphase Energy's ongoing financial performance.
currently available to Enphase Energy, and Enphase Energy assumes no obligation to update these forward-looking statements in	• Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy's GAAP tax provision or
light of new information or future events.	benefit to present the non-GAAP tax amount based on cash tax expense and reserves for periods prior to 2023. Effective
Industry Information	January 1, 2023, Enphase Energy updated its methodology of computing the non-GAAP income tax adjustment from reporting
cash tax expense and reserves to the projected non-GAAP annualized effective tax rate as Enphase Energy utilized most of its
Information regarding market and industry statistics in this presentation is based on information available to Enphase Energy that	net operating loss and tax credit carryforwards in the year ended December 31, 2022, and became a significant cash taxpayer
Enphase Energy believe is accurate. It is generally based on publications that are not produced for purposes of economic analysis.	in the United States. Going forward, Enphase Energy will exclude the income tax effects of GAAP adjustments such as stock-
Non-GAAP Financial Metrics	based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase
Energy ongoing financial performance.
• Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial
• Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible
measure is a numerical measure of a company's performance, financial position, or cash flows that either exclude or include
senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock
amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in
upon conversion of the Notes due 2025, Notes due 2026 and Notes due 2028, and includes the dilutive effect of employee's
accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP
stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful
financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this
supplemental information to the ongoing financial performance.
press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin,
• Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.
operating expenses, income from operations, net income, net income per share (basic and diluted) and free cash flow.

• These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy's results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

© 2024 Enphase Energy, Inc.

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Our Business

© 2024 Enphase Energy, Inc.

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A leading energy technology company in the world

Founded in 2006, with 2,846 employees as of March 31, 2024

Headquartered in Fremont, California with offices globally

Our customers are distributors, installers and homeowners

1,750 installers in the Enphase Installer Network (EIN) as of March 31, 2024

Approx. 75 million microinverters shipped, representing approx. 25.85 GW2

More than 4.0 million systems1 in over than 150 countries2

1.24 GWh of energy storage systems shipped2

2023 Revenue was $2.3 billion

2023 Cash flow from operations was $696.8 million

2023 GAAP net income $438.9 million; 2023 non-GAAP net income $613.2 million3

1. Includes Enphase residential and commercial managed systems as of March 31, 2024, grossed up for non-managed systems based on cumulative sales records
2. As of March 31, 2024

3 Please reference Appendix for GAAP to Non-GAAP reconciliation	© 2024 Enphase Energy, Inc.	8

Our financial performance

Quarterly revenue by year

$800.0
$726.0		$711.1			$724.7
$700.0
					$634.7
$600.0					$530.2	$551.1
$500.0		$441.3
$400.0
	$263.3				$302.6
$300.0
$200.0
$100.0
$0.0
	Q1	Q2		Q3	Q4
Quarterly operating expense % by year
35.0%
31.4%
30.0%								28.6%
25.0%
20.0%
					18.0%
15.0%	15.0%			13.80%	12.4%
13.5%
		13.4%	12.1%
10.0%
	Q1	Q2		Q3	Q4

Quarterly gross margin % by year

55.0%

50.3%

50.0%				46.2%	48.4%
46.2%	42.9%	43.8%
45.7%
45.0%
		42.2%
41.0%

40.0%

35.0%

30.0%

25.0%

20.0%

		Q1	Q2	Q3	Q4
Quarterly operating income % by year
35.0%
32.2%		32.4%	30.6%	31.7%
30.0%					28.7%	30.4%
26.0%
25.0%
						21.7%
20.0%
14.8%
15.0%
10.0%
5.0%
0.0%
	Q1	Q2	Q3	Q4

2022

2023

2024

Quarterly revenue by year is in millions; Gross Margin, Operating Expenses and Operating Income are as a percentage of revenue
All numbers reflected other than revenue are on a non-GAAP basis. Please reference Appendix for GAAP to non-GAAP reconciliation	© 2024 Enphase Energy, Inc.	9

Our core differentiation

Semiconductor integration	Software-defined
and predictive control	architecture

Solar

Storage

Grid

Load control

Generator

Fuel cell

AC

EV

Ensemble™ energy

management technology

© 2024 Enphase Energy, Inc.

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