Parent Company – Flex Ltd.

• Flex provides design, manufacturing and supply chain services through a network of over 100 locations in approximately 30 countries across five continents
• Nextracker credits Flex’s expertise in global supply chains and its strong financial backing for helping to accelerate penetration of end markets and run an optimized supply chain
• Flex sold Preferred Units representing 16.7% of Nextracker
• Flex will continue to control the company following the IPO, with the exact ownership % to be determined

Nextracker IPO Overview

Detail	Value
Company	Nextracker
Domicile Country
Ticker	NXT
Valuation	TBD
Fundraising Amount	Est. $500 million
IPO Timeline	TBD
Business Description	A leading provider of solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects Products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance Parent company Flex Ltd. will continue to control the company after the IPO
Use of IPO Funds	TBD
S1 / F1
Announcement Date	January 13th, 2023
Investors	TPG – 16.7%

Company Overview

• A leading provider of solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects
• Its products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance
• Has led the solar tracker industry based on GW shipped both globally and in the United States from 2016 to 2021 according to research from Wood McKenzie

Sources of Revenue

• The most significant source of revenue is the sale of solar tracking products
• Generally enters into different contracts for each individual solar project
• Contract values range from a few hundred thousand dollars for smallest to over $100 million for the largest
• Solar services provider SOLV energy accounted for 18.7% of total revenue for the 6 months ended Sept 30, 2022
• The top 5 largest customers in total accounted for 40.9% of revenue in the same period
• Sales from outside the United States are increasing as a % of total sales

Solar Tracker Industry

• The solar tracker market plays a key part in driving the global energy transition by increasing energy production and improving the levelized cost of energy
• According to Wood Mackenzie, the global solar tracking market is estimated to be a $71 billion cumulative opportunity from 2020 to 2030
• The majority of utility-scale projects installed today in mature markets such as the United States, Latin America and Australia use solar trackers
• Adoption of solar tracker technology is growing in developing solar markets such as the Middle East and Africa

Listed Solar Tracker Peers (1Y Performance)

Primary Risk Factors

• Commodity Prices – Fluctuations in the cost of steel or other commodities critial to manufacturing their products
• Supply Chain Constraints – In fiscal year 2022 the company logged an addition $152 million in freight costs due to container shortages and other logistics challenges, triggering a decline in fiscal year net income
• Financing for Solar Projects – The availability of financing could constrain growth in solar projects and in turn demand for solar tracking products