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Transcription:

Fourth Quarter 2015 Supplementary Slides February 17, 2016 2016 SunPower Corporation 2016 SunPower Corporation 1

Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) strong industry growth fundamentals, including increasing demand; (b) expected market growth through 2020, including gigawatts (GW) deployed and total available market; (c) the impact of certain government policies supporting adoption of solar, including the U.S. federal solar investment tax credit (ITC); (d) our ability to leverage pipeline projects acquired from Infigen; (e) our ability to reduce costs while improving product performance; (f) timing of volume production at our Fab 4 cell manufacturing facility and our ability to ramp panel capacity to 4 GW by 2019; (g) driving our brand, including leveraging our relationship with Total S.A. in international markets; (h) drop downs to 8point3 Energy Partners; (i) maintaining a strong balance sheet; (j) our continued expansion into new markets; (k) our project pipeline; (l) demand for our products; (m) first quarter fiscal 2016 guidance, including non-gaap revenue, gross margin, EBITDA, and megawatts deployed, as well as GAAP revenue, gross margin, and net loss; and (n) full year fiscal 2016 guidance, including non-gaap revenue, gross margin, capital expenditures, GW deployed, operating expenses, equity in earnings and non-controlling interests, tax expense, capital expenditures and weighted average shares, as well as GAAP revenue, gross margin and net income. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: (1) competition in the industry and downward pressure on average selling prices; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects and customers; (3) risks relating to our residential lease business, including risks of customer default, challenges securing lease financing, and declining conventional electricity prices; (4) our ability to meet our cost reduction targets; (5) regulatory changes and the availability of economic incentives promoting use of solar energy; (6) challenges inherent in constructing and maintaining certain of our large projects; (7) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (8) fluctuations in our operating results; (9) maintaining or increasing our manufacturing capacity, containing associated costs, and manufacturing difficulties that could arise; (10) challenges managing our joint ventures and partnerships; (11) challenges executing on our HoldCo and YieldCo strategies, including the risk that 8point3 Energy Partners may be unsuccessful; and (12) fluctuations or declines in the performance of our solar panels and other products and solutions. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this presentation are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events. 2016 SunPower Corporation 2

Agenda Global industry view SunPower s core strategy Q4 2015 segment highlights Power Plant Distributed Generation Residential Commercial Technology / manufacturing update Q4 2015 financial review Holdco update Q1 2016 / fiscal year 2016 guidance 2016 SunPower Corporation 3

Strong Industry Fundamentals Demand increase to > 100 GW by 2020 ~2x deployments 2015-2020 Key growth drivers: System cost reduction Global market expansion Favorable policy environment Sources: Company and 3 rd Party Analyst estimates 2016 SunPower Corporation 4

Favorable Policy Environment Global support for renewables continues COP 21 US 5 year ITC extension (7 years with in-construction language) Bonus depreciation extended California Net Metering approval (NEM 2.0) Clean Power Plan (CPP) 2016 SunPower Corporation 5

Impact of ITC Extension >40% Market Expansion GW 22.0 20.0 US TAM (Pre-ITC Extension) GW 22.0 20.0 US TAM (Post-ITC Extension) 20.2 18.0 16.0 14.0 12.0 10.0 8.0 6.0 6.2 7.4 15.4 5.5 6.8 8.3 10.8 18.0 16.0 14.0 12.0 10.0 8.0 6.0 6.2 7.4 13.5 10.4 12.6 15.6 4.0 4.0 2.0 2.0-2014 2015 2016 2017 2018 2019 2020 Residential Commercial Utility - 2014 2015 2016 2017 2018 2019 2020 Residential Commercial Utility Ability to Leverage 1.5 GW Infigen US Pipeline Acquisition Source: GTM Research January 2016 2016 SunPower Corporation 6

SunPower Strategy Extend technology leadership Investment in next generation cell / panel technology Complete, standardized solutions for residential, commercial and utility applications Smart Energy: software, storage, energy management - greater control of customers energy environment Installed system cost reduction Accelerate growth and expand global market share Ramp panel capacity to 4 GW by 2019 (IBC / P-Series) Scale solutions platforms / expand channel partnerships Increase spend to drive brand US near term, leverage Total internationally Leverage capital structure Lower cost of capital / increase capex efficiency Leverage 8point3 Energy Partners Maintain strong balance sheet 2016 SunPower Corporation 7

Q4 2015 Highlights: Power Plant Americas Achieved COD on 135-MW Quinto project Started construction of 100-MW for NV Energy Dedicated 15-MW at Nellis Air Force Base Awarded 36-MW for ASUR in Mexico EMEA Awarded 30-MW in most recent French tender South Africa Prieska project ongoing APAC Progress on Japan projects China pipeline growth 2016 SunPower Corporation 8

Global Pipeline Exceeds 14GW 1,280 MW Europe 4,100 MW Americas 3,000 MW APAC Existing / New Installations and Pipeline New Market Project Pipeline 6,150 MW Middle East and Africa 325+ Projects >25 Countries 2016 SunPower Corporation 9

Q4 2015 Highlights: Distributed Generation Overview Strong financial performance across multiple markets US Residential and Commercial market share gains Residential Significant demand in US - installed lease up 60% yoy Announced TXU partnership a new model utilities & retailers Meritage Homes makes solar standard in Orlando, Florida Commercial 20-MW Kern County SD project dropped to 8point3 Strong commercial bookings, with $1.1B pipeline Helix plug-and-play product launched; now shipping 2016 SunPower Corporation 10

Standardized Product Solutions Across All Applications Power Plant Commercial Residential O A S I S H E L I X R E S I D E N T I A L >2GW installed Version 3.0 in 2016 Global supply chain CAD software tools Ground, carport, rooftop Energy information (EIS) Storage for demand charge management Micro-inverters standard Integrated monitoring Storage & EIS Launch in 2016 2016 SunPower Corporation 11

Q4 2015 Technology / Manufacturing Execution Technology Initial ramp of Performance Series on plan Microinverter solution seeing strong demand 22% modules in high volume production Manufacturing Record quarterly output and yields Fab 4 expansion on track 175 MW in volume production in 2016 Ramp panel capacity to 4 GW by 2019 (IBC / Performance Series) 2016 SunPower Corporation 12

Q4 2015 Financial Overview ($ millions, except percentages and per share data) Quarter Ending 1/3/16 Quarter Ending 9/27/15 Quarter Ending 12/28/14 FY 2015 FY 2014 Revenue (Non-GAAP) $1,363.9 $441.4 $609.7 $2,612.7 $2,618.7 Power Plant $1,051.6 $133.2 $323.2 $1,572.6 $1,600.9 Commercial $134.9 $145.9 $105.4 $392.9 $361.9 Residential $177.4 $162.3 $181.1 $647.2 $655.9 Gross Margin (Non-GAAP) 28.8% 17.7% 20.4% 23.9% 19.6% Power Plant 32.9% 8.2% 22.0% 27.5% 20.5% Commercial 10.2% 21.4% 9.3% 13.3% 13.1% Residential 18.7% 22.2% 24.0% 21.6% 21.0% Non-GAAP Operating Expense $122.3 $93.6 $86.5 $383.6 $319.1 EBITDA $379.9 $54.2 $84.9 $556.5 $373.9 Tax Rate (Non-GAAP) 23.8% 40.7% 8.3% 21.5% 8.8% Net Income (Loss) - (GAAP) ($127.6) ($56.3) $134.7 ($187.0) $245.9 Net Income (Non-GAAP) $270.4 $20.5 $39.4 $337.8 $205.1 Diluted Wtg. Avg. Shares Out. (GAAP) Diluted Wtg. Avg. Shares Out. (Non-GAAP) 136.7 156.7 136.5 156.2 164.1 155.9 134.9 156.4 162.8 158.2 Diluted EPS (GAAP) ($0.93) ($0.41) $0.83 ($1.39) $1.55 Diluted EPS (Non-GAAP) $1.73 $0.13 $0.26 $2.17 $1.33 Note: Information concerning non-gaap measures, including non-gaap to GAAP reconciliations, can be found in the press release available on the company s website. 2016 SunPower Corporation 13

Holdco Strategy Asset Pipeline Existing / Future Assets Future Assets Residential Commercial Power Plant 269 MW 158 MW 640 MW Diversified Portfolio of Power Plant, Commercial, and Residential 1,067 MW Under Contract Leveraging Co-Development with Total * All data in MWdc 2016 SunPower Corporation 14

8point3 Energy Partners ROFO Project Status Project Business Status Total Project MW Actual Cum. MW Deployed Q4 15 Planned MW Deployed Q1 16 Hooper Power Plant ROFO 58 58 -- Henrietta Power Plant ROFO 128 59 55 Stanford Power Plant ROFO 68 -- 45 Kern High School District Commercial ROFO 22 3 5 Macy s Maryland Commercial ROFO 7 2 3 Plan to deploy over 100 MW in Q1 on ROFO Projects; 8point3 IPO Assets all COD s achieved in 2015 as scheduled * All data in MWdc 2016 SunPower Corporation 15

Updated EBITDA Guidance Waterfall 1,200 1,000 FY 2015 results reflects $33m poly charge 800 600 FY15 FY15 2015 - $65m EBITDA benefit due to early project completion / resi lease / 8point3 400 200 - FY16 Nov'15 Analyst Day Guidance Hooper profit recognized in FY15 instead of in FY16 Acceleration of Residential Leases Equity in earnings in 8point3 FY16 FY15 Actual Results & Updated FY16 Guidance Significant investment in US in 2016 will drive long term growth 2017-2020 Assumes midpoint of 2016 guidance Does not include $33m poly charge in 2015 Total FY15-FY16 EBITDA guidance unchanged 2016 SunPower Corporation 16

Q1 and FY 2016 Financial Guidance Q1 16 FY 16 Non-GAAP Revenue Non-GAAP Gross Margin $290 to $340M $3.2B to $3.4B 12% to 13% 14% to 16% EBITDA $0 to $25M $450 to $500M GAAP Revenue GAAP Gross Margin GAAP Net Income (Loss) $280 to $330M $2.2 to $2.4B 11% to 12% 17% to 19% ($115) to ($90M) $0M to $50M 2016 SunPower Corporation 17

Fourth Quarter 2015 Supplementary Slides Appendix 2016 SunPower Corporation 2016 SunPower Corporation 18

FY 2016 Financial Guidance Q1 16 FY 16 Residential MW Deployed Commercial MW Deployed Power Plant MW Deployed TOTAL MW Deployed 70 to 80 MW 300 to 400 MW 40 to 45 MW 300 to 400 MW 205 to 215 MW 1,000 to 1,200 MW 315 to 340 MW 1,700 to 2,000 MW TOTAL MW Recognized 180 to 210 MW 1,600 to 1,900 MW 2016 SunPower Corporation 19

FY 2016 Non-GAAP Financial Guidance FY 16 Operating Expenses $430 to $455M Equity in Earnings & Non-Controlling Interests $125 to $175M Tax Expense $30 to $50M Capital Expenditures $210 to $240M Weighted Average Shares 157 to 162M 2016 SunPower Corporation 20

GAAP to Non-GAAP Guidance Reconciliation Q1 16 / FY 16 (1) Estimated non-gaap amounts above for Q1 2016 include net adjustments that increase revenue by approximately $10 million of revenue related to 8point3. Estimated non-gaap amounts above for fiscal 2016 include net adjustments that increase revenue by approximately $1,000 million of revenue related to 8point3. (2) Estimated non-gaap amounts above for Q1 2016 include net adjustments that increase gross margin by approximately $3 million related to 8point3, $3 million related to stock-based compensation expense, and $1 million related to other items. Estimated non-gaap amounts above for fiscal 2016 include net adjustments that increase gross margin by approximately $60 million related to 8point3, $15 million related to stock-based compensation expense, and $10 million related to other items. (3) Estimated EBITDA amounts above for Q1 2016 include net adjustments that decrease net loss by approximately $8 million related to 8point3, $17 million related to stock-based compensation expense, $5 million related to other items, $15 million related to interest expense, $35 million related to income taxes and $35 million related to depreciation. Estimated EBITDA amounts above for fiscal 2016 include net adjustments that increase net income by approximately $100 million related to 8point3, $70 million related to stock-based compensation expense, $10 million related to other items, $60 million related to interest expense, $40 million related to income taxes and $170 million related to depreciation. 2016 SunPower Corporation 21

Residential Energy Systems Q4 15 Cumulative MW Booked 24.7 MW 269.4 MW MW Installed 23.9 MW 229.9 MW MW Deployed 24.4 MW 243 MW Nominal Contract Payments Added Residential Energy Contracts Added Average System Size $112.9 M $1053 M 3,100 32,355 8kW Cumulative numbers were adjusted to exclude leased systems sold to 8point3 Energy Partners on June 24, 2015: Total MW: 46.75 MW Lease count: 5,873 Net contract payments: $258.1 million. 8.3kW 2016 SunPower Corporation 22

GAAP to Non-GAAP Reconciliation SUNPOWER CORPORATION RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentages and per share data) (Unaudited) Adjustments to Revenue: THREE MONTHS ENDED TWELVE MONTHS ENDED Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 GAAP revenue $ 374,364 $ 380,218 $ 1,164,238 $ 1,576,473 $ 3,027,265 8point3 952,115 59,619-1,011,734 - Utility and power plant projects 31,012 1,567 (554,577) 17,996 (408,616) Sale of operating lease assets 6,447 - - 6,447 - Non-GAAP revenue $ 1,363,938 $ 441,404 $ 609,661 $ 2,612,650 $ 2,618,649 Adjustments to Gross margin: THREE MONTHS ENDED TWELVE MONTHS ENDED Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 GAAP gross margin $ 20,303 $ 62,644 $ 259,479 $ 244,646 $ 625,127 8point3 351,661 18,296-369,957 - Utility and power plant projects 13,079 (516) (195,997) (3,016) (190,712) Sale of operating lease assets 2,000 - - 2,000 - FPSC arbitration ruling - (7,500) 56,806 (14,600) 56,806 Stock-based compensation expense 3,308 4,210 3,443 13,343 14,321 Other 2,124 1,088 661 12,671 8,003 Non-GAAP gross margin $ 392,475 $ 78,222 $ 124,392 $ 625,001 $ 513,545 GAAP gross margin (%) 5.4% 16.5% 22.3% 15.5% 20.6% Non-GAAP gross margin (%) 28.8% 17.7% 20.4% 23.9% 19.6% 2016 SunPower Corporation 23

GAAP to Non-GAAP Reconciliation Adjustments to Net income (loss): THREE MONTHS ENDED TWELVE MONTHS ENDED Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 GAAP net income (loss) attributable to stockholders $ (127,621) $ (56,326) $ 134,715 $ (187,019) $ 245,894 8point3 394,097 19,371-408,780 - Utility and power plant projects 13,079 (516) (195,997) (3,016) (190,712) Sale of operating lease assets 2,000 - - 2,000 - FPSC arbitration ruling - (7,500) 56,806 (14,600) 56,806 Stock-based compensation expense 16,476 14,898 13,652 58,960 55,592 IPO-related costs 1,669 1,233-28,033 - Other 3,361 2,357 20,814 25,595 41,813 Tax effect (32,663) 46,959 9,424 19,033 (4,282) Non-GAAP net income attributable to stockholders $ 270,398 $ 20,476 $ 39,414 $ 337,766 $ 205,111 2016 SunPower Corporation 24

GAAP to Non-GAAP Reconciliation Adjustments to Net income (loss) per diluted share: Net income (loss) per diluted share Numerator: THREE MONTHS ENDED TWELVE MONTHS ENDED Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 GAAP net income (loss) available to common stockholders 1 $ (127,621) $ (56,326) $ 136,124 $ (187,019) $ 252,524 Non-GAAP net income available to common stockholders 1 $ 270,731 $ 20,808 $ 39,964 $ 339,492 $ 209,843 Denominator: GAAP weighted-average shares 136,653 136,473 164,075 134,884 162,751 Effect of dilutive securities: Stock options 2 18-24 - Restricted stock units 1,478 1,170-1,781 - Upfront warrants (held by Total) 6,564 6,531-6,801 - Warrants (under the CSO2015) - - - 913-0.75% debentures due 2018 12,026 12,026-12,026-0.875% debentures due 2021 - - (8,203) - (4,530) Non-GAAP weighted-average shares 1 156,723 156,218 155,872 156,429 158,221 GAAP net income (loss) per diluted share $ (0.93) $ (0.41) $ 0.83 $ (1.39) $ 1.55 Non-GAAP net income per diluted share $ 1.73 $ 0.13 $ 0.26 $ 2.17 $ 1.33 1 In accordance with the if-converted method, net income (loss) available to common stockholders excludes interest expense related to the 0.75%, 0.875%, and 4.0% debentures if the debentures are considered converted in the calculation of net income (loss) per diluted share. If the conversion option for a debenture is not in the money for the relevant period, the potential conversion of the debenture under the if-converted method is excluded from the calculation of non-gaap net income per diluted share. 2016 SunPower Corporation 25

GAAP to Non-GAAP Reconciliation EBITDA: THREE MONTHS ENDED TWELVE MONTHS ENDED Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 GAAP net income (loss) attributable to stockholders $ (127,621) $ (56,326) $ 134,715 $ (187,019) $ 245,894 8point3 394,097 19,371-408,780 - Utility and power plant projects 13,079 (516) (195,997) (3,016) (190,712) Sale of operating lease assets 2,000 - - 2,000 - FPSC arbitration ruling - (7,500) 56,806 (14,600) 56,806 Stock-based compensation expense 16,476 14,898 13,652 58,960 55,592 IPO-related costs 1,669 1,233-28,033 - Other 3,361 2,357 20,814 25,595 41,813 Cash interest expense, net of interest income 10,180 8,348 11,006 37,643 48,364 Provision for income taxes 28,778 36,224 11,628 66,694 8,760 Depreciation 37,890 36,142 32,282 133,456 107,406 EBITDA $ 379,909 $ 54,231 $ 84,906 $ 556,526 $ 373,923 2016 SunPower Corporation 26

GAAP to Non-GAAP Reconciliation Free Cash Flow: Jan. 3, Sep. 27, Dec. 28, Jan. 3, Dec. 28, 2016 2015 2014 2016 2014 Net cash provided by (used in) operating activities $ (296,871) $ (103,919) $ 122,349 $ (726,231) $ 8,360 Net cash provided by (used in) investing activities 46,422 (121,555) (203,148) 109,399 (309,239) Proceeds from issuance of non-recourse debt financing, net of issuance costs 11,684 25,615 7,086 92,129 81,926 Repayment of non-recourse debt financing (445) (256) (244) (1,528) (244) Proceeds from residential lease financing 5,760 2,219-7,979 - Repayment of residential lease financing - - - (39,975) (15,686) Proceeds from sale-leaseback financing - - 27,022 17,219 50,600 Repayment of sale-leaseback financing - - (2,856) (2,237) (4,216) Proceeds from 8point3 Energy Partners LP attributable to operating leases and unguaranteed sales-type lease residual values - - - 29,300 - Contributions from noncontrolling interests attributable to real estate projects 12,410 - - 12,410 - Contributions from noncontrolling interests and redeemable noncontrolling THREE MONTHS ENDED TWELVE MONTHS ENDED interests 47,149 41,796 25,371 180,881 100,683 Distributions to noncontrolling interests and redeemable noncontrolling interests (3,501) (2,223) (2,285) (10,291) (5,093) Free cash flow $ (177,392) $ (158,323) $ (26,705) $ (330,945) $ (92,909) 2016 SunPower Corporation 27

GAAP to Non-GAAP Reconciliation SUPPLEMENTAL DATA (In thousands, except percentages) THREE MONTHS ENDED Revenue Residential Commercial Power Plant Gross margin Research and development Operating expenses Selling, general GAAP 172,428 $ 80,113 $ 121,823 $ 30,141 $ 17.5% (1,428) $ -1.8% (8,410) $ $ -6.9% (127,621) 8point3 (1,443) 54,793 898,765 (640) 13,930 338,371 - - - 1,057-41,379 394,097 Utility and power plant projects - - 31,012 - - 13,079 - - - - - - 13,079 Sale of operating lease assets 6,447 - - 2,000 - - - - - - - - 2,000 Stock-based compensation expense - - - 1,089 840 1,379 3,113 10,055 - - - - 16,476 IPO-related costs - - - - - - - 1,669 - - - - 1,669 Other - - - 651 425 1,048 705 210 335 (13) - - 3,361 Tax effect - - - - - - - - - - (32,663) - (32,663) Non-GAAP 177,432 $ 134,906 $ 1,051,600 $ 33,241 $ 18.7% 13,767 $ 10.2% 345,467 $ $ 32.9% 270,398 January 3, 2016 Residential Commercial Power Plant and administrative Restructuring charges Other income (expense), net Benefit from (provision for) income taxes Equity in earnings of unconsolidated investees Net income (loss) attributable to stockholders September 27, 2015 Revenue Gross margin Operating expenses Selling, general Residential Commercial Power Plant Residential Commercial GAAP $ 163,563 $ 84,983 $ 131,672 $ 37,152 22.7% $ 12,646 14.9% $ 12,846 9.8% $ (56,326) 8point3 (1,311) 60,930 - (508) 18,804 - - - - 993-82 19,371 Utility and power plant projects - - 1,567 - - (516) - - - - - - (516) FPSC arbitration ruling - - - (2,456) (1,299) (3,745) - - - - - - (7,500) Stock-based compensation expense - - - 1,541 917 1,752 2,172 8,516 - - - - 14,898 IPO-related costs - - - - - - - 1,233 - - - - 1,233 Other - - - 352 194 542 330 197 726 16 - - 2,357 Tax effect - - - - - - - - - - 46,959-46,959 Non-GAAP 162,252 $ 145,913 $ 133,239 $ 36,081 $ 22.2% 31,262 $ 21.4% 10,879 $ $ 8.2% 20,476 Power Plant Research and development and administrative Restructuring charges Other income (expense), net Benefit from (provision for) income taxes Equity in earnings of unconsolidated investees Net income (loss) attributable to stockholders December 28, 2014 Revenue Gross margin Operating expenses Selling, general Residential Commercial Power Plant Residential Commercial Power Plant GAAP $ 181,137 $ 105,407 $ 877,694 $ 23,566 13.0% $ (434) -0.4% $ 236,347 26.9% $ 134,715 Utility and power plant projects - - (554,577) - - (195,997) - - - - - - (195,997) FPSC arbitration ruling - - - 18,684 9,660 28,462 - - - - - - 56,806 Stock-based compensation expense - - - 1,068 483 1,892 1,983 8,226 - - - - 13,652 Other - - - 218 112 331 220 257 13,213 6,463 - - 20,814 Tax effect - - - - - - - - - - 9,424-9,424 Non-GAAP 181,137 $ 105,407 $ 323,117 $ 43,536 $ 24.0% 9,821 $ 9.3% 71,035 $ $ 22.0% 39,414 Research and development and administrative Restructuring charges Other income (expense), net Benefit from (provision for) income taxes Equity in earnings of unconsolidated investees Net income (loss) attributable to stockholders Revenue Gross margin Operating expenses Selling, general Residential Commercial Power Plant TWELVE MONTHS ENDED GAAP 643,520 $ 277,143 $ 655,810 $ 135,071 $ 21.0% 17,543 $ 6.3% 92,032 $ $ 14.0% (187,019) 8point3 (2,754) 115,723 898,765 (1,148) 32,734 338,371 - - - (2,638) - 41,461 408,780 Utility and power plant projects - - 17,996 - - (3,016) - - - - - - (3,016) Sale of operating lease assets 6,447 - - 2,000 - - - - - - - - 2,000 FPSC arbitration ruling - - - (4,425) (2,593) (7,582) - - - - - - (14,600) Stock-based compensation expense - - - 4,764 2,676 5,903 9,938 35,679 - - - - 58,960 IPO-related costs - - - - - - - 12,837-15,196 - - 28,033 Other - - - 3,748 1,710 7,213 1,695 803 6,391 4,035 - - 25,595 Tax effect - - - - - - - - - - 19,033-19,033 Non-GAAP 647,213 $ 392,866 $ 1,572,571 $ 140,010 $ 21.6% 52,070 $ 13.3% 432,921 $ $ 27.5% 337,766 January 3, 2016 Residential Commercial Power Plant Research and development and administrative Restructuring charges Other income (expense), net Benefit from (provision for) income taxes Equity in earnings of unconsolidated investees Net income (loss) attributable to stockholders Revenue Gross margin Operating expenses Selling, general Residential Commercial Power Plant December 28, 2014 Residential Commercial Power Plant GAAP 655,936 $ 361,828 $ 2,009,501 $ 114,124 $ 17.4% 35,504 $ 9.8% 475,499 $ $ 23.7% 245,894 Utility and power plant projects - - (408,616) - - (190,712) - - - - - - (190,712) FPSC arbitration ruling - - - 18,684 9,660 28,462 - - - - - - 56,806 Stock-based compensation expense - - - 3,959 1,954 8,408 7,714 33,557 - - - - 55,592 Other - - - 765 379 6,859 239 1,053 12,223 20,295 - - 41,813 Tax effect - - - - - - - - - - (4,282) - (4,282) Non-GAAP 655,936 $ 361,828 $ 1,600,885 $ 137,532 $ 21.0% 47,497 $ 13.1% 328,516 $ $ 20.5% 205,111 Research and development and administrative Restructuring charges Other income (expense), net Benefit from (provision for) income taxes Equity in earnings of unconsolidated investees Net income (loss) attributable to stockholders 2016 SunPower Corporation 28

Fourth Quarter 2015 Supplementary Slides February 17, 2016 2016 SunPower Corporation 2016 SunPower Corporation 29