Neo Solar Power Corp. (3576 TT)
Professional maker of QUALITY solar cells

800MW – Ready for Take-off
Corporate Presentation

Http://www.neosolarpower.com
2010-04

Safe Harbor Statement
This presentation may contain various forward-looking statements and include
assumptions concerning Neo Solar Power Corp. (NSP) operations, futureresults and prospects. These forward-looking statements are based on current
expectations and are subject to risk and uncertainties. NSP provides thefollowing cautionary statement identifying important factors which, among
others, could cause the actual results or events to differ materially from those
set forth or implied by the forward-looking statements and related assumptions.
Such factors and other risks are discussed in greater detail in the NSP’s filings
with the Securities and Futures Bureau of the Financial Supervisory
Commission, Executive Yuan, R.O.C. and the Taiwan Stock Exchange Corp.

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NSP Background Information
Founded：Capital:Capacity：
Employees：
Location：

2005
NT$2,112M
420MW → 600MW → 800MW
800+
Hsinchu, Taiwan

Fab 1: Installed capacity 100 MW

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Fab 2: Installed capacity 320MW(Max. 700MW)

Management Team (1/2)
n Dr. Quincy Lin, Chairman and CEO
n More than 30 years of high-tech management experiencen Chairman, Fortune Venture Group IC Fundn Senior Vice President, TSMCn Board directors of two Taiwan public companies
n Elected Most Influential 50 Alumni of National Chiao-Tung Universityn Ph.D. in Business Administration, MBA, BS in Electronic Engineeringn Dr. Sam Hong, President and COO
n More than 30 years of experience in photovoltaic solar energy(PV device professional)n Vice President & Plant Director, Sinonar Amorphous Silicon Solar Cell Co.
n Director, PV Solar Energy Division, ITRIn Ph.D. Electrical Engineering
P. 4

Management Team (2/2)
n Gary Yang, Senior Vice President and CFO
n Vice President, Sino-Century Venture Capital and PowerWorld Capital Managementn MS Finance, MS Nuclear Sciencen Andy Shen, Senior VP, Worldwide Sales & Marketingn Senior Director, TSMC; President, TSMC-Europen MBA, Santa Clara University; MS Electrical Engineering, Case Western Reserve Univ.

n Dr. Alex Wen, Senior VP, Operationn Specialize in silicon refinery (Si-material professional)n Ph.D, Power Mechanical Engineering, National Tsing-Hua University

n Marco Hu, Senior VP, Strategy Developmentn Specialize in business and operation development & management (PV module professional)n Bachelor, Communication Engineering, National Chiao Tung University

P. 5

Milestones
2005.12 Company founded
2006.12 1st line at FAB 1 reached 100% utilization and break-evenfor 2006
2007.10 Broke ground for FAB 2 and Headquarters’ building
12 Best 2007 ROE (33.74%) & ROA (22.08%) among Taiwan
listed peers
2008.03 Solar cell revenues ranked the 3rd largest in Taiwan
06 1st to set up Audit Committee in the Board before IPO
08 FAB 2 launched mass production; capacity reached 210MW
12 Revenues topped NT$10.176 billion
2009.01 1st to be listed on TSE Main Board in 2009 (2009/1/12)
03 Ranked as the world top-20 cell manufacturers by influential
Photon magazine
06 Strongest sales rebound among peers (up 51.8% mom)
07 1st to return to 100% utilization among peers
09 Best 3Q09 utilization among peers
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Awards
2009.09
Recognized by
Deloitte & Touche

One of Top 10
Deloitte Technology Fast 500 Asia
Pacific Ranking and CEO Survey

2008.05
Recognized byBusiness Today Magazine

2009.05
Recognized by
CommonWealth Magazine

Top 5 in Revenue Growth
Top 6 in Profit GrowthOne of top 10 candidates to be thehighest priced stock in Taiwan

Top 3 best Growth Manufacturer
Top 8 in Operation Efficiency(measured by revenue & profit
growth, and ROE )P. 7

PV Industry Value Chain
Polysilicon

Wafer

Solar Cell

ModuleSystem

NSP

Multi-crystalline silicon solar cells( 156 x 156 mm) or 6”
2-busbar & 3-busbar
P. 8

Mono-crystalline silicon solar cells( 156 x 156 mm) or 6”
2-busbar & 3-busbar

Worldwide PV Demand Outlook
GW25

19.2

2015

12.3
8.3

105

5.5

5.2

2008

2009

2.402007
Source: NSP Estimates

P. 920102011

2012

Continued Growth Momentum
Unit: MW20092010 (est.)

GrowthGermany

2500

3000

20%

Italy

550

900

64%

Spain

300

45050%U.S.A.

400

1000

150%

Japan

400

800

100%

China

200

700

250%

ROW

850

1450

70%

Total

5200

8300

60%

Source: NSP Estimates

P. 10

NSP Market Strategy
n Continue to strengthen NSP brand of high quality and high performancen Create differentiation and maintain price premiumn Expand customer base inEurope and Asian Penetrate US and Japan
marketsn Partner with strategic
customers and grow togetherin 2010

P. 11

NSP Product Strategy

Multi-crystalline

P. 12

Mono-crystalline-High
PerformanceMarketClassic Cells

Mainstream
MarketPolysilicon & Wafer Supply
n Global polysilicon supply will continue to grow in 2010 which will lead tooversupply situation. $45~$50/kg of spot poly price can be expected by 2010/E.
Such level of poly price will strongly stimulate the PV demandn Over-capacity on wafering still exists in 2010. Consolidation will keep going andlow utilization can be observed in non-competitive wafer companies. In contrast,cost-competitive & quality wafer companies can enjoy the growth of the market
MT

Global Polysilicon Capacity

MW

250000200000150000Tier II
100000Tier I

50000
0
2008
Source: NSP Estimates

P. 132009

2010

2011

Global Solar Wafer Capacity

18000
16000
14000
12000
10000
8000
6000
4000
2000
0

ROW
Taiw anChina
Europe2009
Source: NSP Estimates2010Crystalline Cell & Module Supply
n Global solar cell capacity will continue to grow about 40% in 2010 which will leadto oversupply situation. High performance / low cost cell makers will outpace
others. The ASP of solar cell in 2010 is expected to continually decline at moderate
rate than that in 2009n Over-capacity on PV module sector will still exist in 2010. Consolidation will
happen in not-cost-competitive and weak branding module companies
25,000Global Crystalline Cell and Module Capacity

20,00015,000
MWCel l10,000M odul e

5,000
0
2009

Source: NSP Estimates

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2010

NSP’s Competitive Advantages
High Quality & Reliability
nLowest Power LossnLowest Light Induced
DegradationnLow Breakage Rate

Strong Customer & SupplierPartnershipnTier 1 customer basenGlobal presencenTechnical collaboration
with customers & suppliers

P. 15

Technology LeadershipnLeverage PV device physics &semiconductor process
technology
nHigh conversion efficiency
nNew product development

Competitive Manufacturing Costs
nOne of the lowest manufacturingcosts in the world
nRigorous semiconductor
manufacturing disciplinePhenomenal Growth
Shipment VolumeMW
200.0 +200.0

X2.0 yoy

X2.8 yoy

102.0

100.0
35.9

0.0

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2007(A)

2008(A)

2009(A)

Revenue & Profits
Revenues

Profits

NTD$M

NTD$M

NT$10,176M

NT$831M

900
10,00051.61%
8,000

NT$6,954M

700
NT$548M

177.87%500

6,000
NT$3,662M

4,000

300

2,000

1000

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(NT$699M)
NT$9M

NT$380M

-100
2006

2007

2008

1~3Q09

2005

2006

2007

2008

1~3Q09Income Statements
NTD$000’

2007

2008

1H09

3Q09

Revenue, Net

3,662,088

10,176,014

3,817,648

3,136,549

COGS(3,075,578)(9,358,744)(4,561,220)(2,839,572)

Gross Income

586,510817,270(743,572)

296,977

Gross Margin

16.02%

8.04%-19.48%

9.47%

Operating Expenses(82,732)(314,792)(129,808)(82,827)

Operating Income (Loss)

503,778

502,478(873,380)

214,150

Non-Ops Income (Loss)

29,569265,91772,086(86,306)

Pre-tax Income

533,347768,395(801,294)

127,844

Tax (Expenses) Benefits

15,007

62,944(21,779)(4,115)

Net Profits

548,354

831,339(823,073)

123,723

5.98

6.12(4.50)

0.68

EPS (NT$/shares)

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Solid Financial Position
Items

End of 3Q09

End of 2008

Cash & Cash Equivalent

NT$1.1 billion

NT$3.1billion

Shareholders’ Equity

NT$5.5 billion

NT$6.1 billion

Net Value per Share

NT$38

NT$29

Debt to Asset Ratio

49.77%

47.42%

ROA

11.05%

N/A

ROE

20.43%N/An Strong CF performance:n

1~3Q09: CF from OPS totaled NT$699M, best among peers
n Cash & cash Equivalent & CD totaled NT$3.5Bn + by 3Q09

P. 19

Revenues by Region
Year 2009
Other4%

Europe48%

Year 2008
Other2%Europe
49%
Asia
48%

Asia
49%

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2009 Total Shipment: 201MW

NSP Technology Roadmap
n Leveraging PV devices & semiconductor processes to create technology
differentiation and competitiveness on cost & quality
n Current Patent status:Granted: 9 cases; Applied: 7 cases; Developing: 4 cases
Efficiency
19.0%

19.0%

Mono-Si cell (156x156mm)

Efficiency
18.0%

18.5%
18.0%

17.8%

18.5%

17.5%18.0%

16.8%

17.0%

17.74%

17.0%

16.42%

17.0%

16.0%

20092010

2011
Classic Cells

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18.0%

Multi-Si cell (156x156mm)
17.8%

2009
High performance cells

20102011

Capacity Expansion Plan
MW
Year-end Capacity Plan

1,000

1GW+

2009-2011(E) CAGR: 104% p.a.
FAB 1

200

FAB 2

FAB 3
800MW

5000

P. 22210MW

240MW

120

140

700

700

30

60

90

100

100100

2006

2007

2008

2009

2010(E)

2011(E)

Top Line Guidancen 2009 annual shipment: 201MW, up 97% from that in 2008n Further QoQ shipment growth in 1Q10 from 4Q09
n Average monthly shipment in 4Q09: 25.6MW

n Shipment & capacityn Expected shipment:
n 400~500MW for 2010

n 560MW capacity expansion: (Total Capex: NT$2.7Bn)n 1st 180MW: ramp-up in 1~2Q10
n Capex: NT$1.3Bn (Equipment + Facility)n 2nd 180MW: ramp-up in 2~3Q10
n Capex: NT$1.4Bn (Equipment + Facility)n 3rd 200MW: ramp up in 3Q~4Q
n Capex: NT$1.4Bn (Equipment + Facility)
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Key Drivers for
Margin Improvementn ASP expected to decline at a slower rate
n 50%+ yoy global demand growthn Strong poly supply expected to further drive down wafer cost per wattnWacker & Hemlock expansion

n Technology development to reduce non-wafer cost (manufacturingcost)
n 4Q09 average conversion efficiency:
nMulti-crystalline: 16.5%
nMono-crystalline: 17.8%
n Target average conversion for 2010:
nMulti-crystalline: 17.2%
nMono-crystalline: 18.5%

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Q&A
Thank you for your attention!
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