Investor Presentation
2
Legal Disclaimer
.
This presentation and the accompanying oral presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating
performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going
to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or
expressions that concern Sunnova's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this presentation include, but are not limited to,
statements regarding Sunnova's future customer growth rate, future financial and operating performance, including its outlook and guidance, demand for Sunnova's products
and services, adoption and implementation of new Sunnova products and technology, the markets in which Sunnova operates, maintenance and growth of our dealer network
and the future of solar energy and energy storage services. Sunnova's expectations and beliefs regarding these matters may not materialize, and actual results in future
periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our
business due to our limited operating history, our competition, fluctuations in the solar and home-building markets, our ability to attract and retain dealers and customers and
our dealer and strategic partner relationships. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those
more fully described in Sunnova's filings with the Securities and Exchange Commission, including Sunnova's prospectus filed pursuant to Rule 424(b) under the Securities Act
of 1933, as amended, on July 26, 2019. The forward-looking statements in this presentation are based on information available to Sunnova as of the date hereof, and Sunnova
disclaims any obligation to update any forward-looking statements, except as required by law.
In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation and the accompanying oral
presentation include certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Cash Flow and Adjusted Operating Expense. These non-GAAP measures
are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These
non-GAAP measures have limitations as analytical tools, and they should not be considered in isolation or as a substitute for analysis of other GAAP financial measures.
Adjusted EBITDA and Adjusted Operating Expense are non-GAAP financial measures that help management, investors and securities analysts in evaluating Sunnova's
performance. These measurements are not recognized in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. The GAAP
measures most directly comparable to Adjusted EBITDA and Adjusted Operating Expense are net income/loss and total operating expense, respectively. Adjusted Operating
Cash Flows is a non-GAAP measure that helps management, investors and analysts in evaluating Sunnova's liquidity and ability to service its contractual obligations. This
measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of liquidity. The GAAP measure most directly
comparable to Adjusted Operating Cash Flow is net cash used in operating activities. Adjusted EBITDA, Adjusted Operating Cash Flows and Adjusted Operating Expense
have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of Sunnova's results as reported under GAAP. In addition, Adjusted
EBITDA, Adjusted Operating Cash Flows and Adjusted Operating Expense are not necessarily comparable to Adjusted EBITDA, Adjusted Operating Cash Flows or Adjusted
Operating Expense as calculated by other companies. Reconciliations of each of these measures to their most directly comparable GAAP measure are included in the
appendix to this presentation for historical periods. Sunnova is unable to reconcile projected Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash
Flow to the most comparable financial measures calculated in accordance with GAAP because of fluctuations in interest rates and their impact on our unrealized and realized
interest rate hedge gains or losses. Sunnova provides a range for the forecasts of Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash Flow to allow
for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and the impact on the related reconciling items, many of which interplay
with each other. Therefore, the reconciliation of projected Adjusted EBITDA, Adjusted Operating Expense and Adjusted Operating Cash Flow to projected net income (loss),
total operating expense, or net cash provided by (used in) operating activities, as the case may be, is not available without unreasonable effort.
This presentation includes operational metrics such as number of customers, weighted average number of customers and estimated gross contracted customer value. These
operational metrics are not necessarily comparable to the same or similar metrics as calculated by other companies.
This presentation and the accompanying oral presentation also contain market data, statistical data, estimates and forecasts that are based on independent industry
publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and
you are cautioned not to give undue weight to such information. Some data are also based on Sunnova's good faith estimates, which are derived from its review of internal
sources as well as the independent sources described above. Although Sunnova believes these sources are reliable, we have not independently verified the accuracy or
completeness of the information contained in the industry publications and other publicly available information. Accordingly, Sunnova makes no representations as to the
accuracy or completeness of that information nor do we undertake to update such information after the date of this presentation.
SunnovaView entire presentation