ReneSola : Q1 2020 Earnings Presentation

Q1 2020 Earnings Presentation

May 29, 2020

www.renesolapower.com

Safe Harbor Statement

This presentation may contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements concerning our beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that our results of operations may fluctuate from period to period; the risk of PRC governmental policy changes; the risk that we face intense competition from other solar companies; the risk that PRC economic, political and social conditions as well as government policies can affect our business and other risks outlined in our public filings with the Securities and Exchange Commission, including our annual report on Form 20-F.

The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

2

A Pure Downstream Player

Downstream Player	High Yield: to own and operate commercial projects with high equity IRR
- Developer	Distributed: develop and operate small-scale DG projects (e.g.<1MW) with high FiT/PPA price
- IPP
- O&M	Global: projects diversified in more than 10 countries, with solid development pipeline focused on U.S. and Europe
779 MW	Operating Assets (MW)	Late Stage Project	Under Construction
Pipeline (MW)	(MW)
China DG	172.0	USA	171.0	15.0
Completed	US	24.1	Poland	28.0
	UK	4.3	Hungary	26.7	15.0
216 MW	Romania	15.4	France	71.5
Total	215.8	Spain	36.0
In Operation			UK	90.0
423 MW			Total	423.2	30.0
		Completed Projects In Sale Process (MW)
Late-stage Pipeline			Hungary		0.6
		Total		0.6
(Estimate COD: 2020-
2022)

As of Mar 31, 2020

3

Strong Execution

2020 Q1 Connections		2020 Q2 Under Construction

Hungary							Hungary
			Country	2020 Q1 Under Construction	Capacity (MW)
Country	2020 Q1 Connected	Capacity (MW)
Hungary	DG Projects	0.6			Hungary	DG Projects	15.0
					US	Community solar	15.0
Total		0.6
					Total		30.0

4

2020 Goal: Add 1 GW to Pipeline

Our target is to reach 1 GW pipeline in core markets of US and Europe by end of 2020

.

Pipeline Target	Capacity (MW)
Hungary	100
Poland	150
Spain	150
France	100
Germany	100
UK	200
USA	200
Total	1000

5

Global Project Development Pipeline

(As of March 31, 2020)

6

USA: Small Utility and Community Solar Projects

Project Pipeline	Location	MW (DC)	Project Type	Status	COD / Sale	Business Model
Utah	UT	9.2	DG	Development	2020	Project Development
MN-VOS	MN	12.0	Community Solar	Development	2020	Project Development
New York	NY	25.7	Community Solar	Development	2020/2021	Project Development
Florida	FL	100.0	TBD	Development	2021	Project Development
Maine	ME	9.1	TBD	Development	2021	Project Development
MN 2.2	MN	15.0	Community Solar	Under construction	2020	Build-Transfer
(Signed sales contract)
	Total	171.0

Proven track record in MN, MA and NC

• Focused on the development of power station projects since 2015;
• Successfully ran several competitive sale processes from 2015 to 2020 to monetize projects at Start Date and COD.

Business development focus on opportunistic acquisitions and greenfield development

• New opportunities in community solar markets in MN and NY, with other markets being considered;
• Pursuing small with a mix of corporate, municipal and utility off-takers in NC, UT, FL, NY and ME;
• Pipeline expansion through early stage acquisitions, co-development and self-originated greenfield projects.

Value drivers

• Maximize developer profit through increases in project revenue and competitive tension in both project sales/development and operating costs;
• Focus on community and C&I sectors to generate higher project revenue;
• Adopting efficient competitive bidding process for project buyers as well as vendors, suppliers and service providers.

7

Poland: Small-scale Projects with FiT

Monetizing our Efforts

• SOLD all 81 MW of projects awarded in the 2016, 2017 and 2018 auctions
• Intends to Launch a New Round of PV Farm Development and seeks Shovel-ready Projects in Poland

Recognized Name

• Leveraging this auction success, ReneSola Power is partnering with well-known utilities, EPC contractors, Investors, financing institutions for potential cooperation.

Competitive Financing & Low Equity Requirement

• Competitive financing from financial institutions and international banks, including some of the policy lenders;
• Competitive construction finance and buyer's pre-payment promote efficient development.

1 MW	15-Year
Avg. Project Size	FiT(CfD) >$0.09/kWh

New Projects:

2020 Auction in Q4

Project Pipeline	Project Info	MW (DC)	Project Type		Status	Expected COD / Sale	Business Model
Auction 2019 Dec	19 individual projects, IMW each	19.0	Ground mounted		Under development	2020/2021	Build-Transfer
Auction 2020 Q4	9 individual projects, IMW each	9.0	Ground mounted		Under development	2020/2021	Build-Transfer
	Total	28.0

8

Hungary: Small-scale Projects with 25-Year FiT

Incentive Scheme

• National Renewable Action Plan: to cover 14.65% of its gross energy consumption from RES by 2020;
• The European Commission has approved Hungary's support scheme for solar and renewable energies;
• Small-scalePV facilitated through mandatory off-take system (by Hungarian electricity TSO, MAVIR);
• Hungarian Energy Authority ("HEA") to determine the duration and the amount of mandatory off-take.

Robust Growth

• Total installed capacity: 235MW(2016); 344MW(2017); 665MW (2018); 1.15 GW(as of Oct ,2019);
• New installations: 63MW(2016); 109MW(2017); 321MW (2018); 485 MW (as of Oct, 2019);
• New Tender Regime start in 2019 with 130 MW and continue in 2020 with 500 MW for solar.

Competitive Financing

 Competitive project finance available from EU financing institutions and local bank.

25-Year

FiT > $0.10/kWh

0.5 MW

Avg. Project Size

Project Pipeline	Project Info	MW (DC)	Project Type	Status	Expected COD / Sale	Business Model
Portfolio of "Micro PPs"	0.5 MWAC each project	15.0	DG	Under construction	2020	Build-Transfer
(Signed sales contract)
Portfolio of "Micro PPs"	0.5 MWAC each project	11.7	DG	Ready to build	2020	Build-Transfer
	Total	26.7

9

France: 20-Year FiT Scheme Projects

Market Opportunities

• Ambitious national targets. Environment Minister just announced 40% RES by 2030. Annual growth of 2 GW necessary by 2023.
• Consolidated market with experienced international players and high demand in Ready to Build("RTB") projects.
• Bid systems supported by government insure current development on restricted areas: allows PV rooftop, shade houses & ground mounted. Each category benefits from a specific unique tender tariff around USD 0.06 /kwh to USD 0.09/kwh during 20 years.
• Easy access to financing and have competitive project financing rates: around 2,5% at 20 years.

20-Year

FiT scheme + PPAs

Project Pipeline	Location	MW (DC)	Project Type	Status	Expected COD / Sale	Business Model
SOLARPARK - Eguilles	France	30.0	Ground mounted	Under development	2021/2022	Project Development
Minjoulet	France	4.0	Ground mounted	Under development	2021/2022	Project Development
Les Termes	France	4.5	Ground mounted	Under development	2021/2022	Project Development
Les Toiras	France	3.0	Ground mounted	Under development	2021/2022	Project Development
AMI Aups / Tenergie	France	30	Ground mounted	Under development	2021/2022	Project Development
	Total	71.5
			10

Spain: Ground-Mounted Projects

Market Opportunities

• Well developed market with experienced international players; High demand in Ready to Build("RTB") projects on the market.
• Best Solar Yield in Europe, our projects are located in south of Spain -mainly in Murcia Region > 1750 MWh/MW per year.
• Extremely competitive project financing.

.

Project IRR>10%

Project Pipeline	Location	MW (DC)	Project Type	Status	Expected COD / Sale	Business Model
Caravaca	Spain-Murcia	6.0	Ground Mounted	Under development	2020	Build-Transfer
Altajero	Spain-Murcia	6.0	Ground Mounted	Under development	2020	Build-Transfer
Abanilla	Spain-Alicante	4.0	Ground Mounted	Under development	2020/2021	Build-Transfer
Pedrera	Spain-Alicante	10.0	Ground Mounted	Under development	2020/2021	Build-Transfer
Serrata	Spain-Alicante	10.0	Ground Mounted	Under development	2020/2021	Build-Transfer
	Total	36.0
			11

UK: Ground-Mounted Projects

Market Opportunities

• With the development of technology and gradually phase out of subsidies, solar power is increasingly able to compete against other sources of energy in UK market.

.

ReneSola Power Strength

• Over 5 years of experience in the UK market with solar power project development.
• Successfully developed 16 portfolio, operating 4.3MW projects and sold 127MW projects in the UK.
• Cooperate with strong market player to develop 90MW pipeline in UK based on PPA.

PPA + Financing

Project Pipeline	MW (DC)	Project Type	Status	Expected COD / Sale	Business Model
UK	47.0	Ground Mounted	Under development	2020/2021	Project Development
UK	43.0	Ground Mounted	Under development	2021	Project Development
Total	90.0

12

Operating Assets

(As of March 31, 2020)

13

Operating Assets: IPP with Creditworthy Off-takers or Favorable Fit/PPA

216 MW

Projects in Operation

 Target to develop and operate projects in well-developed regions;

 Focus on projects with Credit worthy C&I Off-takers or favorable Fit/PPA.

China

Operating Assets	Capacity (MW)
China DG	172.0
- Zhejian	47.6
- Henan	56.4
- Anhui	31.6
- Hebei	17.2
- Jiangsu	12.8
- Shandong	2.0
- Fujian	4.4
Romania	15.4
United States	24.1
United Kingdom	4.3
Total	215.8

14

Financial Results

15

Income Statement

Unaudited Consolidated Statements of Income			Three Months Ended
(US dollars in thousands)	Mar 31, 2020		Dec 31, 2019	Mar 31, 2019
Net rev enues	21,162	26,529		13,058
Cost of rev enues	(19,801)	(19,390)		(12,693)
Gross profit	1,361		7,139		365
Operating (expenses) income:
Sales and marketing	(68)	(285)		(23)
General and administrativ e	(2,049)	(8,608)		(2,323)
Impairment of long-liv ed assets	(80)	(1,326)		-
Other operating loss	(303)	(10,226)		(122)
Total operating expenses	(2,500)		(20,445)		(2,468)
Loss from operations	(1,139)	(13,306)		(2,103)
Non-operating (expenses) income:
Interest income	207	587		113
Interest expense	(1,606)	(2,277)		(2,320)
Foreign exchange gains (loss)	(2,129)	719		(1,227)
Loss before income tax, noncontrolling interests	(4,667)		(14,277)		(5,537)
Income tax expense	(10)	(182)		(15)
Net income loss	(4,677)		(14,459)		(5,552)
Less: Net loss attributed to noncontrolling interests	(283)	(3,519)		(177)
Loss attributed to ReneSola Ltd	(4,394)		(10,940)		(5,375)
	16

Unaudited Consolidated Balance Sheets			Mar 31,			Dec 31,	Mar 31,
(US dollars in thousands)			2020				2019		2019
ASSETS
Current assets:
Cash and cash equivalents	15,458		24,292		6,986
Restricted cash	1,118		405		2,981
Accounts receivable, net of allow ances for
doubtful accounts	15,208		13,835		40,159
Advances to suppliers, net	190		248		387
Value added tax recoverable	5,794		7,508		10,571
Prepaid expenses and other current assets	6,397		6,069		11,966
Project assets current	22,027		32,125		65,119
Assets held for sale	17,972		18,579		-
Total current assets	84,164		103,061		138,169
Property, plant and equipment, net	139,424		143,301		150,826
Deferred tax assets, net	901		838		1,379
Project assets non-current	6,324		6,523		46,069
Operating lease right-of-use assets	23,564		23,991		36,699
Finance lease right-of-use assets	24,501		24,992		38,614
Other non-current assets	18,026		17,237		5,903
Total assets	296,904		319,943		417,659

Balance Sheet

Unaudited Consolidated Balance Sheets	Mar 31,		Dec 31,		Mar 31,
(US dollars in thousands)	2020		2019		2019
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrow ings	33,548		35,757		80,600
Bond payable current	-		2,504		8,162
Accounts payable	6,949		20,431		12,528
Advances from customers	1,234		86		34
Amounts due to related parties	2,640		2,748		15,392
Other current liabilities	24,493		27,163		39,404
Income tax payable	851		1,078		894
Salary payable	401		438		616
Operating lease liabilities current	485		453		152
Failed sale-lease back and finance lease liabilities current	10,331		9,579		13,152
Liabilities held for sale	8,476		9,168		-
Total current liabilities						89,408		109,405		170,934
Long-term borrow ings	8,475		3,367		11,035
Operating lease liabilities non-current	22,648		22,888		35,332
Failed sale-lease back and finance lease liabilities non-current	44,008		46,737		78,092
Total liabilities					164,539		182,397		295,393
Shareholders' equity
Common shares	530,208		530,208		519,313
Additional paid-in capital	9,807		9,713		9,529
Accumulated deficit	(446,740)		(442,346)		(438,890)
Accumulated other comprehensive loss	(2,933)		(2,859)		(1,845)
Total equity attributed to ReneSola Ltd			90,342		94,716		88,107
Noncontrolling interest	42,023		42,830		34,159
Total shareholders' equity		132,365		137,546		122,266
Total liabilities and shareholders' equity	296,904		319,943		417,659

Cash Flow Statement

Unaudited Consolidated Statements of Cash Flow		Three Months Ended
(US dollar in thousands)	Mar 31,2020		Dec 31,2019	Mar 31,2019
Net cash provided by (used in) operating activities	(9,865)	14,500		(10,617)
Net cash provided by (used in) investing activities	1,181	1,793		(1,518)
Net cash provided by (used in) financing activities	(1,379)	(3,439)		12,205
Effect of exchange rate changes	1,942	1,360		871
Net increase (decrease) in cash and cash equivalents and restricted cash	(8,121)		14,214		941
Cash and cash equiv alents and restricted cash, beginning of year	24,697		10,228		9,026
Cash and cash equiv alents and restricted cash held for sale	-	255		-
Cash and cash equivalents and restricted cash, end of year	16,576		24,697		9,967

18

Use of Non-GAAP Financial Measures

To supplement ReneSola Ltd's financial statements presented on a GAAP basis, ReneSola Ltd provides Adjusted EBITDA as supplemental measures of its performance.

To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Ltd and non-GAAP EPS as non-GAAP financial measures of earnings.

• EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization.
• Adjusted EBITDA represents EBITDA plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus one-time penalty of postponed payables, plus loss on one-time settlement of disputed Turkish receivables, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).

•Non-GAAP net income/ (loss) attributed to ReneSola Ltd represents GAAP net income/(loss) attributed to ReneSola Ltd plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus one-time penalty of postponed payables, plus loss on one-time settlement of disputed Turkish receivables, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).

• Non-GAAP EPS represents Non-GAAP net income/ (loss) attributed to ReneSola Ltd divided by the number of fully diluted shares outstanding.

Our management uses EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Ltd and non-GAAP EPS as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time.

We find this especially useful when reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for ,financial measures prepared in accordance with GAAP.

19

Income Statement (Non-GAAP)

Unaudited Condensed Consolidated Statements of Operations (US dollar in thousands, except per ADS data)

Non-GAAP Rev enue

Non-GAAP Gross profit

Non-GAAP Gross Margin %

Non-GAAP Operating expense

Non-GAAP Operating Income(loss)

Non-GAAP Net Income(loss) attributable to ReneSola Ltd

Non-GAAP Net Income(loss) per ADS attributable to ReneSola Ltd-BasicNon-GAAP Net Income(loss) per ADS attributable to ReneSola Ltd-Diluted Weighted av erage shares outstanding-Basic

Weighted av erage shares outstanding-Diluted

	Three months ended
March 31, 2020	Dec 31, 2019	March 31, 2019
21,290	27,826	13,058
1,489	8,436	365
7.0%	30.3%	2.8%
(2,143)	(3,131)	(2,242)
(654)	5,305	(1,877)
(2,049)	4,259	(3,946)
(0.04)	0.09	(0.10)
(0.04)	0.09	(0.10)
48,081,890	48,081,890	38,081,890
48,081,890	48,081,890	38,081,890

20

Adjusted EBITDA

Adjusted EBITDA		Three months ended
(US dollar in thousands)	March 31, 2020	Dec 31, 2019	March 31, 2019
Net Income/(loss)	(4,677)	(14,459)	(5,552)
Income tax expenses/(benefit)	10	182	15
Interest expenses,net off interest income	1,399	1,690	2,207
Depreciation & Amortization	1,766	2,805	1,863
EBITDA	(1,502)	(9,782)	(1,467)
Discount of electricity subsidy in china	128	2,860	-
Share based compensation	94	46	165
Bad debt prov ision of receiv ables	(15)	6,051	(33)
Impairment of long-liv ed assets	80	1,326	22
Penalty of postponed property, plant and equipment payable	-	248	33
Loss on disposal of project assets	-	6,435	-
Loss on disposal of property, plant and equipment	199	1,679	181
Gains on disposal of property, plant and equipment	-	(33)	(142)
Interest income of discounted electricity subsidy in china	(177)	(589)	-
Foreign exchange loss/(gain)	2,129	(719)	1,227
Adjusted EBITDA	935	7,521	(14)

21

Key Valuation Metrics Lowest Among Peers

Source: Company reports, Thomson Reuters

Q1 2020 Profitability (USD$ in 000s)

Rev enue

Gross Profit

Operating loss

Adjusted EBITDA

Loss before Income Tax and Non controlling interests from Continuing Operations

Net loss attributable to common stockholders

Q1 2020 Financial Ratios

Current Ratio

Total Liability Ratio

Return on Assets (ROA)

Return on Inv estment (ROI)

Return on Equity (ROE)

Stock Data (as of 05/20/2020)

Market Capitalization ($M)

EPS(2019)

Share price ($)

Diluted shares(in Million)

Valuation Metrics

Enterprise Value to 2020 Sales

Enterprise Value to 2020 EBITDA

Price to 2020 Sales

Renesola		Sunrun Inc		Vivint Solar		SunPower		Sunnova
(NYSE: SOL)		(NASDAQ: RUN)		(NYSE:VSLR)		(NASDAQ: SPWR)		(NYSE:NOVA)
21,162.0	210,731.0	91,151.0	449,190.0	29,829.0
1,361.0	40,856.0	16,280.0	37,448.0	15,800.0
(1,139.0)	(63,017.0)	(51,910.0)	(44,148.0)	(14,306.0)
935.1								4,482.0	6,190.0
(4,667.0)	(112,891.0)	(101,900.0)	(514.0)	(77,004.0)
(4,394.0)	(27,959.0)	(40,260.0)	(1,431.0)	(71,075.0)
Renesola		Sunrun Inc		Vivint Solar		SunPower		Sunnova
(NYSE: SOL)		(NASDAQ: RUN)		(NYSE:VSLR)		(NASDAQ: SPWR)		(NYSE:NOVA)
0.94	1.49	0.97	1.45	1.47
55.42%	79.82%	92.57%	99.00%	77.93%
-1.42%	-0.48%	-1.42%	-0.07%	-2.75%
-2.64%	-0.56%	-1.52%	-0.12%	-2.97%
-4.75%	-3.04%	-24.69%	-14.61%	-11.48%
Renesola		Sunrun Inc		Vivint Solar		SunPower		Sunnova
(NYSE: SOL)		(NASDAQ: RUN)		(NYSE:VSLR)		(NASDAQ: SPWR)		(NYSE:NOVA)
46.2	1,914.0	847.8	1,213.0	1,182.0
-0.09	-0.23	-0.32	0.01	-0.85
0.96	15.91	6.80	7.14	14.07
48.1	119.2	123.9	168.8	84.00
Renesola		Sunrun Inc		Vivint Solar		SunPower		Sunnova
(NYSE: SOL)		(NASDAQ: RUN)		(NYSE:VSLR)		(NASDAQ: SPWR)		(NYSE:NOVA)
1.8x		6.3x		6.7x		1.0x		17.9x
17.9x		99.4x		199.8x		24.3x		50.7x
0.5x		2.3x		2.3x		0.6x		7.1x

Guidance

	Q2 2020	2020
Revenue	$22 to $25 million	$80 to $100 million
Gross Margin	17%-20%	18% to 20%

23

Subsequent Events

24

Subsequent Events

1. Closing of Sale of 15 MW Portfolio in Hungary to Obton

• Date: Q2 of 2020
• Buyer : Obton
• Scope of the transaction:

• 1. ReneSola Power closing of the sale of 25 solar plants with a combined capacity of 15 MW DG Projects in Hungary to Obton.
• Strategic Value:
• 1. Despite challenging market conditions related to the COVID-19 pandemic, the closing of this transaction demonstrated ReneSola Power's strong execution on our strategy and completed the sale of our portfolio to Obton, generating strong operating cash flow for us.

25