Shoals Technologies Group (SHLS) Investor Day 2024 summary

Strategic direction and growth initiatives

• Focus on growing core utility-scale solar markets while expanding into CC&I, OEM, BESS, data centers, and international segments, leveraging existing strengths and new sales strategies.

• Diversification into adjacent and non-solar markets, with a pivot away from eMobility due to unpredictable market development.

• International expansion driven by localized product development, new subsidiaries, and manufacturing partnerships in key regions like Spain, Australia, and Saudi Arabia.

• Operational excellence and commercial excellence are priorities, with investments in automation, lean processes, and data-driven decision-making to support scalable, high-quality manufacturing and maintain margins.

• Institutionalizing a customer-centric, brand-reliable, and consultative sales approach, supported by a growing, diverse, and empowered workforce.

Market opportunities and competitive positioning

• The addressable market is expanding, with $5-6B in utility-scale solar opportunity, $300M in untapped CC&I and OEM segments, and significant international and data center potential.

• Maintains a leading share in the U.S. utility-scale solar market, participating in ~30% of projects and ~50% of installed capacity over the past three years.

• Recent ITC patent ruling strengthens competitive position, protecting core BLA technology and opening opportunities to recapture share from competitors.

• Enhanced sales organization and customer engagement have led to a 50% increase in quotes and new MSAs with major EPCs, supporting market share recovery and growth.

• Strategic partnerships, high Net Promoter Scores, and a reputation for reliability, quality, and innovation reinforce customer loyalty.

Innovation and product development

• Formalized a structured new product development process, integrating Voice of Customer insights throughout.

• Launched six new products in 2024, with 12 pending patent applications in the last 12 months.

• Focused on pre-fabricated, plug-n-play, and sustainable solutions to reduce installation costs and complexity.

• Recent innovations include SuperJumper (aluminum harness), clustered load break disconnects, and the first 2000V EBOS solution.

• Investing in standardized BESS recombiners/disconnects and data center power distribution solutions to capture new market opportunities.