T1 Energy Inc.

Thank you for standing by and welcome to the T1 Energy fourth quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. I'd now like to turn the call over to Jeffrey Spatel, EVP, Investor Relations and Corporate Development. You may begin.

Good morning, and welcome to T1 Energy's fourth quarter and full year 2024 earnings conference call. With me today on the call are Dan Barcelo, our Chief Executive Officer and Chairman of the Board, Evan Calio, our Chief Financial Officer, Jaime Guale, our Executive Vice President of Corporate Development, Rob Gibbons, our EVP of Strategic Partnerships, and Borgo Selstead, our SVP of Operations. During today's call, management may make forward-looking statements about our business. These forward-looking statements involve significant risks and uncertainties that could cause actual results different materially from expectation. Most of these factors are outside P1's control and are difficult to predict. Additional information about risk factors that could materially affect our business are available in our S-1 and annual report on Form 10-K filed with the Securities and Exchange Commission, which are available on the investor relations section of our website. With that, I'll turn the call over to Dan.

Thanks, Jeff, and welcome everyone to our first quarterly earnings call as T1 Energy. To put it mildly, it has been a busy last several months following T1's transformative acquisition of Trina Solar's U.S. manufacturing assets, and we are excited to update you on our recent progress and our vision for the business today. Today's headline is that this is a completely different company than when we spoke to you last in November of 2024. T1 is now a commercial enterprise that is generating revenues, we now own and operate a state-of-the-art manufacturing facility here in the company's new home of texas and today we announced our plans to make a significant new investment here in texas to create jobs and provide scalable reliable low-cost energy for america none of this would be possible without the support of our shareholders partners and customers for whom we are grateful with g1 dallas up and running we're excited to showcase this highly automated and efficient facility as we did recently when we hosted a group led by Goldman Sachs for our first investor tour. So T1 is open for business. Our teams are energized, focused, and playing offense 24-7 to achieve the big aspirations we have for T1 in 2025 and beyond. Now let's start on slide four with our key messages for today. We are executing a rapid corporate transformation for T1. highlighted by the Trina acquisition and the implementation of our new strategy as one of the largest U.S. solar module producers, the launch of our corporate rebranding as T1 Energy, the relocation of our global headquarters to Austin, Texas, integration activities as part of new organization, and the start of our commercial journey with the achievement of our first revenues. The centerpiece of this transformation is T1 Dallas, which is one of the most advanced solar module manufacturing facilities in the world. Thanks to the dedication of our operating teams, we are pleased to report this morning that the ongoing ramp of module production at G1 is proceeding considerably ahead of plan. While operations have been ramping at G1, our corporate leadership team has been working in parallel to advance the key initiatives that will drive the next phase of T1's growth. This morning, we announced that we have finalized the selection of Sandow Lake Ranch in Millam County, Texas, as a project site for our planned five gigawatt U.S. solar cell manufacturing facility, which will be named G2 Austin. Having closed the acquisition on schedule, the process with the Committee on Foreign Investment in the United States is ongoing after the parties to the transaction filed a joint voluntary notice. And finally, as Evan will detail shortly, our initial 2025-26 operational financial guidance is unchanged. We are advancing capital formation initiatives to fund construction of G2 Austin and other growth opportunities, and we are pursuing non-core asset sales of our legacy European portfolio. Turning to slide five, let's start today with an overview of T1 Energy and our value proposition. We are now one of the largest solar module manufacturers in the United States, with G1 Dallas representing roughly 10% of installed domestic capacity. Among U.S. companies with a domestic module manufacturing footprint, we believe that T1 is the only U.S. company with the capability to deliver U.S. manufactured modules with industry-leading PERC and TOPCON technologies through our commercial partnership with Trina. G1 Dallas provides T1 with a state-of-the-art U.S. manufacturing platform from which we intend to vertically integrate up the domestic solar value chain. Today, we announced an important next step to advance this strategy with the site selection for our planned G2 Austin solar cell manufacturing facility. And we are engaged with potential partners to accelerate further upstream on the value chain with the objective of maximizing the domestic content of our products. In the process, we expect to establish an American solar supply chain that creates new jobs for the communities in which we operate. We expect to competitively differentiate T1 by pairing our domestic content strategy with our access to Trina's technology portfolio while we onshore solar operations and supply chain expertise. Developers want U.S. domestic content to maximize bonuses under the Inflation Reduction Act and to reduce their exposure to tariffs, but they also demand solar and storage products that are highly energy efficient. T1 plans to deliver solutions that check all those boxes for our customers. Now let's turn to slide six for a look at the U.S. solar battery and storage opportunity that is T1's strategic focus. Our corporate transformation positions us to build on our U.S. solar manufacturing position and to leverage our team's expertise in the battery market. Solary and battery storage developments are among the fastest growing resources of electricity supply in the U.S. based on declining costs and the speed with which our customers can bring projects online. Demand for these solutions in the U.S. is expected to continue growing. The emergence of power-intensive industries such as AI and cryptocurrencies and the electrification of the transportation sector will necessitate significant investment in the U.S. grid. Solar and battery storage is emerging as a preferred solution to provide low-carbon, reliable, cost-competitive power while enhancing grid reliabilities. We plan to build T1's U.S. manufacturing vertical and commercial enterprise to establish a U.S. domestic content leader in the solar and battery storage market. Turning to slide seven, let's review the recent progress we have made to transform T1. As I said earlier, this is a completely different company than when we spoke last with you in November of 24, and our transformation and growth are just the beginning. After announcing the transformative acquisition of Trina's US solar manufacturing assets in early November, we successfully closed the transaction on an accelerated timeline in December 2024. In February, we relocated our global headquarters to Austin, Texas, which has become a hub of renewable energy talent that we can tap into to build our organization. We'll be moving into our new headquarters in Austin later this month. In conjunction with our relocation, we completed the sale of our Coweta County, Georgia land for a net proceeds of $22.5 million. Later in February, we announced the launch of our global rebranding as T1 Energy. The T1 brand aligns with our vision to build American solar and battery storage supply chains, to deliver scalable, reliable, low-cost energy, and to create American jobs as we grow our business. This morning, we are pleased to announce that we've selected Sandow Lakes Ranch in Milam County, Texas, as a project site for our planned 5 gigawatt U.S. solar cell manufacturing facility, G2 Austin. Site selection for development of this size typically takes about a year. Thanks to the work of our project development team, we have completed the process in approximately 100 days. We have a small team of folks working on several initiatives at once, and this achievement is a testament to the dedication and skill of T1's people. And finally, this morning, we report that the ramp of solar module production at our G1 Dallas facility is proceeding well ahead of schedule. T1 is now a revenue-generating company with a world-class operating asset. Although we are pleased that we have begun our commercial journey with our first revenues, our potential earnings power in 2027 and onward as we integrate our U.S. solar operation is what really excites us. And as we indicated in the November 24 transaction presentation, Our planned U.S. solar cell facility, G2 Austin, is expected to be T1's earnings and cash flow engine as we get beyond 2026. So we are pleased to have completed an announced site selection today on our accelerated timeline. On slide eight, we provide an update on our operations at G1 Dallas, T1's state-of-the-art U.S. solar module manufacturing facility. This morning, we reported that production output at G1 is significantly ahead of plans. For the months of January and February, actual production exceeded our forecast by nearly 50%, which speaks to the quality of our operations teams who are working with leading-edge proven production line equipment technology. With four lines already on production and construction installation activities expected to be complete during the first half of 2025, we are on track to achieve our full-year 2025 production target of 3.4 gigawatts. The production output of G1 has enabled us to build an inventory buffer to ensure timely deliveries to our customers as offtake contracts are activated and merchant sales commence. As Evan will detail shortly, we expect to convert the G1 construction loan that we inherited to a term loan from our consortium banks in the second quarter. The loan conversion is another milestone in T1's financial and commercial development. Going forward, our priorities for G1 are to convert the construction loan continue our integration and knowledge-sharing efforts as we staff up operations, develop our off-take portfolio of 2026 and beyond through our integrated marketing and sales initiatives, and drive adoption of T1's internal safety protocols. On behalf of the T1 Board of Directors and management team, I wish to thank our people at G1 Dallas for delivering Running Start from the world-class operating asset. Now let's turn to slide nine. to discuss today's landmark announcement of our planned U.S. solar cell manufacturing development, G2 Austin. Today, we announced that T1 has selected Sandow Lakes Ranch in Millam County, Texas, as the project site for G2 Austin. As we highlighted in the November 2024 transaction presentation, migrating upstream on the U.S. solar value chain into domestic cell production presents a meaningful EBITDA generation opportunity for T1. Bringing this facility online will position T1 as one of the few integrated US cell and module producers, and this integration strategy is intended to provide T1's module customers with enhanced domestic content and the potential to stack the associated Section 48E bonuses. With site selection complete, our teams are preparing to commence detail engineering while we advance our capital formation initiative to fund constructions of G2 Austin. Accordingly, We are still targeting a start of construction around mid-year in either Q2 or Q3 2025, and we anticipate first production in Q4 2026. Moving to slide 10, I'll update you on the transaction timelines and milestones. The transaction closed on the accelerated schedule in December 2024. As part of the transaction consideration, Trina's Swiss entity received 9.9% of P1's common equity post money and a $50 million preferred tranche from Encompass Capital was issued. As previously communicated, we have submitted a voluntary filing with the Committee on Foreign Investment in the United States, or CFIUS. CFIUS approval is a precondition to the first anticipated share conversion we highlighted in the November transaction announcement. As we also indicated in November, a second share conversion would follow and be conditioned upon a shareholder vote later this year. And with that, I'll turn the call over to Evan.