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

600MW – Ready for Take-off
Corporate Presentation

Http://www.neosolarpower.com
2009-12

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.

P. 2

Opening Remarks
1. Impact of Economic Downturn
2. Solar Industry Outlook
3. NSP’s Competitive Advantage
4. NSP’s Growth Plan
5. NSP’s Track Record, Financial Performance & Outlook

P. 3

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

2005
NT$2,108.5M (Nov.09)
240MW
630
HsinChu, Taiwan

Fab 1: Installed capacity 100 MW

P. 4

Fab 2: Installed capacity 140MW(Max. 680MW)

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. 5

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. 6

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
P. 7Awards
2009.09
Recognized byDeloitte & Touche
One of Top 10 Deloitte
Technology Fast 500 Asia
Pacific Ranking and CEOSurvey
2008.05
Recognized byBusiness Today Magazine
Top 5 in Revenue Growth
Top 6 in Profit Growth
one of top 10 candidates tobe the highest priced stockin Taiwan

P. 8

2009.05
Recognized by
CommonWealth Magazine
Top 3 best Growth
Manufacturer
Top 8 in Operation Efficiency(measured by revenue & profit
growth, and ROE )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. 9Mono-crystalline silicon solar cells( 156 x 156 mm) or 6”
2-busbar & 3-busbar

Worldwide PV Demand Outlook
GW
25

19.2

2015

12.3
8.3

1055.5

5.2

2008

2009

2.402007
Source: NSP Estimates

P. 102010

2011

2012

Continued Growth Momentum
Unit: MW20092010 (est.)

GrowthGermany

2500

3000

20%

Italy

550

900

64%

Spain

300

450

50%

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. 11

NSP Market Strategyn Continue to strengthen NSP brand of high quality and highperformancen Create differentiation and maintain price premiumn Expand customer base inEurope and Asian Penetrate US and Japanmarkets
n Partner with strategic
customers and grow together
in 2010

P. 12

NSP Product Strategy

Multi-crystalline

P. 13

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 utilaztion 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. 142009

2010

2011

Global Solar Wafer Capacity

18000
16000
14000
12000
10000
8000
6000
4000
2000
0

ROW
Taiw anChinaEurope

2009
Source: NSP Estimates2010Crystalline Cell & Module Supplyn 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 continue 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
2 5 ,0 0 0

Global Crystalline Cell and Module Capacity

2 0 ,0 0 0
1 5 ,0 0 0
MW

Cel l

1 0 ,0 0 0

M o du le

5 ,0 0 002009

Source: NSP Estimates

P. 152010NSP’s Competitive Advantages
High Quality & Reliability
nLowest Power LossnLowest Light InducedDegradationnLow Breakage Rate

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

P. 16Technology 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 GrowthShipment Volume
MW200.0 +200.0

X2.0 yoy

X1.8 yoy102.0100.0
35.90.0

P. 17

2007(A)

2008(A)

2009(E)

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

100

0

P. 18

(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

533,347

768,395(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)

P. 19

Solid Financial Position
Items

End of3Q09

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. 20

Revenues by Region
1~3Q09Other
4%Europe48%

Year 2008
Other
2%

Europe
49%
Asia
48%

Asia
49%

P. 21

1~3Q09 Total Shipment:
124.3MW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%

2009

2010

2011
Classic Cells

P. 22

18.0%

Multi-Si cell (156x156mm)
17.8%

2009
High performance cells

2010

2011

Capacity Expansion Plan
MW
Year-end Capacity Plan

1,0001GW

2009-2011(E) CAGR: 104% p.a.
FAB 1220

FAB 2

FAB 3
600MW

500680210MW

1200

P. 23240MW

500

140306090

1001001002006

20072008

2009

2010(E)

2011(E)

Top Line Guidancen Further QoQ shipment growth in 4Q09: Est. 25MW/mo vs22MW/mo in 3Q09
n Shipment & capacityn Expected shipment:
n200+MW for 2009
n400~500MW for 2010
n 360MW capacity expansion: (Total Capex: NT$2.7Bn)n1st 180MW: ramp-up in 1~2Q10
nCapex: NT$1.3Bn (Equipment + Facility)n2nd 180MW: ramp-up in 2~3Q10
nCapex: NT$1.4Bn (Equipment + Facility)

P. 24

Key Drivers forMargin 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 perwattnWacker & Hemlock expansion

n Technology development to reduce non-wafer cost(manufacturing cost)
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%
P. 25

Risk Factors
n Operating Expense:n Historically 2-3% to Revenuesn Conscious cost control mechanismn Non-Operating Income (Expenses)
n ECB impact
nNon-cash ECB interest amortization
nFinancial liabilities valuation riskn Foreign Exchange Rate

P. 26

Q&AThank you for your attention!
P. 27