SolarEdge TechnologiesNasdaq I SEDG

August 2021

Ronen Faier CFO

Forward Looking Statements

Use of Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; and the effects of competition.

Forward-looking statements are only predictions based on our current expectations and are inherently subject to risks and uncertainties. They should not be considered guarantees of future results, which could differ materially from the results set forth in, contemplated by, or underlying this presentation.

Factors that could cause actual results to differ materially from our expectations are described in the reports filed by SolarEdge with the Securities and Exchange Commission and we encourage you to review our filings carefully, especially the sections entitled “Risk Factors” in our annual report Form.

SolarEdge undertakes no duty or obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or changes in its expectations.

2

SolarEdge in Numbers

29Countries Presence

employees

3,618Solar Inverter Company *1#

25.7GWof our systems shipped worldwide

>2.15MMonitored systems

around the world

3.1MInverters Shipped

74.1MPower Optimizers Shipped

374Awarded

Patents and 370 Additional Patent Applications

* Revenue wise - PV Inverter Market Tracker – Second Quarter 2021

$45.1M GAAP Net Income

$72.5M Non-GAAP Net Income

4

32.5% GAAP Gross Margin

$480.1MGAAP Revenue

$38.7MCash Flow From Operations

Q2/2021 Financial Results

$509.3M Cash, Deposits and Investments,Net of Debt

Electricity demand is on the rise

0

10

20

30

40

50

60

70

80

90

100

1990 2000 2010 2020 2030 2040 2050

Peta

watt

-ho

urs

Estimated Electricity Consumption Requirements

Northern America Europe Ibero-America East & SE Asia

Cen & South Asia Africa & SW Asia Sub-Saharan Africa

Source: https://www.larouchepac.com/efd_5

https://www.un.org/development/desa/en/news/population/2018-world-urbanization-prospects.html

Benjamin Deniston, 2020. Only nations with electricity data in 1990.

Urbanization will increase by (+~2.5B

people)

+2B people (+26%) 2020-50

Total global primary energy consumption

is expected to double in 15 years (2035)

and triple by 2050

Growing trend of electrification

in areas previously dominated

by fossil fuels

Renewable energy supply is outgrowing fossil fuels

In 2019, global installed power generation capacity was 7,566 GW with solar PV accounting for 11%, Analysts believe by 2050, solar PV is likely to lead all power generation capacity that will grow to 20,391 GW with a share of 38%

Source: http://taiyangnews.info/business/wind-pv-to-account-for-56-of-global-power-needs-in-2050/

28

23

4 5

15

8

11

24

7

15

1 2

7

20

38

8

2

0

5

10

15

20

25

30

35

40

Coal Gas Oil Nuclear Hydro Wind Solar Storage Other

Global installed capacity mix, 2019 and 2050, %

2019 2050

Source: IHS PV installation tracked Q2 2021

36 51

70 70 72 86

97 109 119 125 133

9

8

10 12 25

25

31

39 47

56 63

11

18

15 16

23

31

37

47

43

42

41

1

2

1 4

5

3

6

13

19

22

24

57

78

96 102

125

144

172

207

227

245

261

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Asia Pacific Total Europe Total Americas Total Africa and Middle East Total

Solar GW(dc) Installations by Region

Growth is expected in all regions

Strategy Solar SolarEdge Solutions

A Complete Residential Solution

Smart Energy Products

Monitoring Platform

Smart Modules with Pre-assembled PowerOptimizers

Inverters

StorEdge

A single solution for PV, storage, smart energy, and EV charging

9

The SolarEdge Commercial Solution

Environmental Sensors

Power Optimizers2-to-1 configuration with

P600–P850

Inverters15kVA – 120kVA

Environmental Sensors

Grid Interaction

Commercial Gateway

Monitoring Platform

10

490.0

607.0

937.2

1,425.7 1,459.3

2016 2017 2018 2019 2020

Annual Growth

Our Winning Method

Strong product offering that answers customers needs

Sales force focused on demand creation with installers

Backed by marketing and service

Revenues ($M)

Source: Wood Mackenzie US PV Leader board Q2 2021

15.9%27.5%

33.1%40.2%

50.9%58.7%

50.4%

0.0%

20.0%

40.0%

60.0%

80.0%

2014 2015 2016 2017 2018 2019 2020

US Residential Market

Strategic Growth Engines

Geographic

Expansion

Segment

Development

Market

Share Growth

ARPI Increase

Geographic Expansion

Local presence

Systems installed in >130 countries with feet on the ground in the large sustainable ones

Maintain leadership position in core developed markets

Significantly grow in new markets to answer demand

SolarEdge Segment DevelopmentM

ark

et

Po

siti

on

Leader

Entry

Basic Complete

Residential

Commercial

Utility

2019

Portfolio CompleteBasic Portfolio

Residential Commercial

Utility

Looking

ahead

2020 (Ranked first since 2018)

Market Share Growth

2017

Global Inverter Market Tracker: World PV Inverter Supplier Rankings ($ Revenues)

CompanyRank

Huawei1

SMA2

Sungrow3

SolarEdge4

Enphase Energy5

ABB6

Schneider Electric7

Omron8

Fronius9

Goodwe10

4

CompanyRank

SolarEdge1

SMA2

Huawei3

Enphase Energy4

Sungrow5

Fronius6

Power Electronics7

ABB8

Growatt9

Omron10

1

2014

CompanyRank

SMA1

ABB2

Omron3

TEMIC4

Tabuchi5

Schneider Electric6

Enphase Energy7

Sungrow8

Huawei9

SolarEdge1010

Source: IHS PV Inverter Market tracker 2015-21

Efficiency

Future…

Technology Roadmap

Optimizer Gen1 Optimizer Gen2 Optimizer Gen3

Inverter Gen1

3kW – 6kW (1ph)

Inverter Gen2

2.2kW – 7.6kW (1ph)

5kW – 20kW (3ph)

2010 2011 2013 2015 2017

Single Phase

Inverters

with HD-Wave

Technology

2.2kW – 11.4kW

Optimizer

Gen4

Three Phase Inverters

with Synergy Technology

Up to 100kW

2019 2021

Utility Inverter

330kW

Power

Rating

$/Watt

ESS Utility

storage

Residential

battery

Commercial

battery

StorEdge Three

Phase Inverter

16

Three Phase Inverters

with Synergy Technology

Up to 120kW

Single Phase

Energy Hub Inverter

with Prism

Technology

2.2kW – 11.4kW

Moving

Beyond PV

One-Stop-Shop for Smart Energy Solutions

Smart Energy Management

Batteries, UPS, and EV Powertrains

Monitoring Platform and Grid ServicesEV Charging

Residential and Commercial PV Inverters

Smart Modules

18

Strengths of SolarEdge Critical Power Division

Decades of experience designing and manufacturing UPS solutions for various applications

Competitive product offering for the 3 phase 10 – 500 KW segment

Significant synergy with SolarEdge R&D, manufacturing and global business infrastructure

Opportunity for combined backup/UPS energy storage solution

19

Strengths of Kokam within SolarEdge

20

A global Tier 1 provider of innovative battery solutions

Battery provider for utility-scale ESS, UPS, EV, and more

Proven technology with more than 685MWh deployed

Over 175MWh of utility-scale ESS installed globally

Access to thousands of installers and EPCs as sales channel

Innovative cell chemistry technology with long cycle life and high power Li-ion battery

“Sella 2”, a 2GWh Li-ion cell factory under construction expected to begin production in early 2022

SolarEdge E-Mobility Division

Innovative integrated powertrain technology and electronics for LCVs, LGVs, e-motorcycles

Innovative and high-performing powertrains with the gearbox, engine, battery, BMS, software, and accessories

Provides SolarEdge fast-track access to the high-growth global EV market

Selected as supplier of electric powertrain units and batteries for Fiat E-Ducato (Stellantis)

21

Financial Performance

Revenues Growth

490.0 607.0

914.3

1,336.6 1,357.3

22.9

89.1 102.0

490.0

607.0

937.2

1,425.7 1,459.3

2016 2017 2018 2019 2020

310.1 312.5 327.1 376.4

431.5

21.8 25.6 31.0

29.1

48.5

0.1

0.1

331.9 338.1 358.1

405.6

480.1

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

USD millions

Consolidated Gross Margin

31.0%32.0%

30.8%

34.5%

32.5%

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

32.4%

33.5%32.5%

36.5%

33.9%

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

32.8%

35.4%

34.1%33.6%

31.6%

2016 2017 2018 2019 2020

33.1%

35.7%

34.6%34.9%

33.0%

2016 2017 2018 2019 2020

GAAP

Non-GAAP

Operating Expenses as % of Revenues

22.0% 23.0%26.8%

23.7%21.0%

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

18.4% 18.7%

20.4%

18.8%

17.0%

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

18.3%

20.4%

19.2%

20.3%

21.8%

2016 2017 2018 2019 2020

16.2%

17.9%

16.0%15.5%

18.1%

2016 2017 2018 2019 2020

GAAP

Non-GAAP

Consolidated Operating Profitability

30.0 30.4

14.4

44.1 55.6

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

46.6 50.0 43.5

71.981.3

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

71.091.1

139.4

189.9

142.6

2016 2017 2018 2019 2020

82.6 108.7

174.3

276.8

218.8

2016 2017 2018 2019 2020

GAAP

Non-GAAP

USD millions

Consolidated Net Profitability

36.7 43.8

17.7

30.1

45.1

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

52.1

65.955.7 55.5

72.5

Q2-20 Q3-20 Q4-20 Q1-21 Q2-21

63.584.2

128.8146.5 140.3

2016 2017 2018 2019 2020

78.9 115.0

157.3

233.2 224.4

2016 2017 2018 2019 2020

GAAP

Non-GAAP

USD millions

Cash Flow from Operating Activities

USD millions

136.7

189.1

259.0

222.7

62.8

2017 2018 2019 2020 YTD

Cash Position

$38.7M cash flow from operations in Q2 2021

Net cash of $509.3M, include cash equivalents, deposits, restricted deposits and marketable securities, net of debt (as of June 30, 2021)

This power point presentation contains market data and industry forecasts from certain third-

party sources. This information is based on industry surveys and the preparer’s expertise in the

industry and there can be no assurance that any such market data is accurate or that any such

industry forecasts will be achieved. Although we have not independently verified the accuracy of

such market data and industry forecasts, we believe that the market data is reliable and that the

industry forecasts are reasonable.

Version #: V.1.0

Cautionary Note Regarding Market Data & Industry Forecasts

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