Company Presentation. October 2010

Transcription

1 Company Presentation October 2010

2 Disclaimers & Safe Harbour Statement This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Trina Solar Limited (the Company ) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The information herein has been prepared by the Company solely for use in this presentation. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; the volatility of the Company's operating results and financial condition; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. 2

3 1. A Global Solar Player 2. World Class Manufacturing 3. Trina Solar Strategy 4. Market and Sales

4 The Roadmap to Leadership Module Shipments Module Shipments, in MW (est.) , On track to be among the largest PV module suppliers Top Top Top Top Growing into an industry leader while maintaining strong financials. 1_Source: Navigant Consulting, Solar Outlook _Source: Company releases 4

5 Company Snapshot Founded in 1997, in Changzhou, China $845.1mm in Revenue in FY09 France 4-6% China 3-5% USA 13-15% ROW 2-3% Czech Rep. 4-6% Germany 29-31% >11,000 employees worldwide 1 Listed on the NYSE (under TSL ticker) One single manufacturing campus Belgium 7-9% Italy 19-21% Spain Italy 10-12% 19-21% Over 1GW of modules shipped since 2006 Estimated shipments in MW Our Advantage: Vertically Integrated Business Model Ingot Wafer Cell Module System 1_As of August _ Estimate provided in Trina Solar Q Earnings Call 5

6 Module Capacity Expansion Module Shipments (MW) Main facts Module Power Range Wp 399 Wafer Thickness 180 µm Cell Efficiency 1 Polysilicon Usage Up to 19.5% mono Up to 18.0% multi 6.0g/W in 1Q Module Capacity (MW) 1_Test production line basis 2_ Cell and Module Capacity by end of August

7 Long-Term Expansion Plans Phase 1 - Finished - Phase 2 (Current) Trina PV Park Facility Site Phase 3 East Campus (Phases 2 and 3) 500+MW production facility Single manufacturing campus Increased degree of vertical integration and automation Trina Photovoltaic Park Facility Site Strategic location of key suppliers Suppliers bring benefits like cost savings R&D and manufacturing cluster Cluster effect Sharing research/test lab capabilities Integrated manufacturing capabilities allows better control of cost quality yield product development cycle time 7 7

8 Top Management Team Jifan Gao Chairman and Chief Executive Officer 20+ years of management and entrepreneurial experience Visionary founder of Trina Solar Ltd, in 1997 Standing Vice Chairman of the New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce Terry Wang Chief Financial Officer 20+ years of experience in finance and accounting Former Exec. VP of Finance of Spreadtrum (NASDAQ:SPRD) Former Controller at one of the world's largest NASDAQ-listed semiconductor assembly and testing companies Stephanie Shao Chief Human Resource Officer Over 15 years of global experience in Fortune 500 Companies in managing key HR functional areas and Marketing Management across industries and geographies Proven record in building people and organizational capabilities and business partnership to support global business growth Ph.D in Social & Organizational Psychology from Rutgers University and Executive Education in Marketing Management from Columbia Business School 8 8

9 1. A Global Solar Player 2. World Class Manufacturing 3. Trina Solar Strategy 4. Market and Sales

10 Our Competitive Advantage The Best $/kwh Value Modules ranked by TUV Rheinland (GER) 1 and Desert Knowledge Center (AUS) 2 tests as one of the best performing module compared with other leading international brands CENTER FOR EXCELLENCE: world class in-house testing center A single campus to ensure optimal yield and quality throughout the entire manufacturing process Efficient management of our supply chain Cell efficiency: Achieved 18.8% for mono & 17.5% for multicrystalline end of Goal: reach up to 19.5% mono and 18.0% multi by end of Maintained healthy financials all year round, for a FY09 Gross Margin of 28.1% As of June 30, 2010, the Company had $685.3 million in cash and cash equivalents and restricted cash. 1_ TUV Reinland's Energy Yield 2008 (period from June 1 to September 30, 2008) 2_ see slide 12 for more details 3_ Test production line basis 10

11 Our Facilities 11 11

12 1. A Global Solar Player 2. World Class Manufacturing 3. Trina Solar Strategy 4. Market and Sales

13 Trina Solar Strategy Portfolio strategy Expand product line to serve more customer segments and markets worldwide Large product line from 175Wp to 290Wp New products tailored for residential and utility systems Reliability & technology Internal reliability testing on module & materials Accelerated Life Testing reliability tests 25yr warranty Working closely with UL, ICIM, TUV and customers Full vertical integration to ensure top quality at each step Customer focus organization Local sales & technical team to support sales On-line after sales service launched Develop global & diversified customer base to mitigate risk and reduce currency exposure DELIVER THE BEST VALUE TO CUSTOMERS & INVESTORS 13 13

14 Products For Every Segment Solutions for all applications RESIDENTIAL COMMERCIAL INDUSTRIAL UTILITY RELIABLE PRODUCTS Positive tolerance for all products (0+3%) Ongoing research and testing to minimize Micro-cracks LID testing Experimenting with module color to provide customers with custom solutions Certificates for all major markets (TUV, UL, ICIM, VDE, JET and SGS) 1 Offer a 5-year manufacturing warranty, 10-year output warranty (90%) and 25-year output warranty (80%) Residential Commercial Utility 14

15 Product Portfolio Mono-Series Multi-Series Design-Series TSM-DC03 TSM-DC05 TSM-DC01 TSM-PC05 TSM-PC14 TSM-DC01 Black TSM-PC05 Black Wattage range: Wp Module Efficiency: up to 14.70% 48, 60, 72 high efficiency Mono cells Wattage range: Wp Module Efficiency: up to 14.95% 60, 72 high efficiency multi cells Wattage range: Wp Module Efficiency: up to 14.50% 60 high efficiency multi cells or 72 high efficiency mono cells 15 15

16 New Product - TSM-DC80 Quad MAX NEW square MONO crystalline cell with advanced production process: 1. Two high temperature thermal processes 2. Additional printing and cleaning step 3. Uses special paste for cell surface Conversion efficiency: up to 18.8% Average efficiency: 18.2% 18.8% cell efficiency 1 TSM-DC80 The QuadMAX module Module conversion efficiency of up to 15.6% Modules using QuadMAX technology have up to 8% more power output Aesthetic appearance of QuadMAX cell provides ideal design solutions for residential rooftop applications 1_ up to 18.8%, test production line basis 16

17 Quality, guaranteed by rigorous in-house testing CENTER FOR EXCELLENCE Over 30 in-house tests, allows internal testing in accordance with IEC standards and those of internationally-trusted testing bodies UV Test Sample Tests Long-term Strategic Partnership with TUV Rheinland Group, Underwriters Laboratories Inc (UL) and China General Certification Centre (CGC). Mechanical Loading Test Material & Electrical testing to increase panel durability and prolong product lifetime Allows Trina Solar to confidently offer customers our customers product and manufacturing warranties Power Determination Test 17

18 Overview of Quality Tests Environmental Reliability Testing: Trina Solar puts a selection of PV modules through extreme environmental testing to ensure reliability and performance in the world s most unforgiving environments. This allows Trina Solar to confidently provide our customers with a 25 year output warranty. Wet Leakage Test Damp Heat Test Mechanical load Test Highly Accelerated Stress Test Humidity Freeze Test Outdoor Exposure Test UV Preconditioning Test Impact Testing Corrosive Atmosphere Test Hot-spot Endurance Test Insulation Test (Dry & Wet) Thermal Cycling Test Component Testing: Trina Solar carefully tests the performance of each module component both individually and together in order to maximize electrical output while minimizing the degradation of the module over its lifetime. Bypass Diode Test Materials & components testing Measurement of NOCT Q. C. throughout Manufacturing Process Electrical Component Testing Micro-crack Testing Flash Testing 18

19 The Best $/kwh Under The Sun Results of the Photon Test, September 2009 (in kwh/kwp) Trina Solar panels are among the world s top performers. 19

20 The Best $/kwh Under The Sun Desert Knowledge Australia test results Average Daily output, 2009 (Jan-Dec), in kwh/kwp How much more electricity do you get by using Trina Solar modules? Trina vs. BP Mono +8.0% SPWR +4.7% BP Poly +4.5% Kyocera -1.3% Alice Springs Even in the harsh Australian desert, Trina Solar panels outperformed competitors. Source: Data collected by the Desert Knowledge Australia, a public initiative supported by the Australia Energy Ministry 20

21 1. A Global Solar Player 2. World Class Manufacturing 3. Trina Solar Strategy 4. Market and Sales

22 Global Operations 10 branch locations, 11,000+ employees Seoul, S. Korea Sales Office San Jose, CA N. America HQ Zurich Europe HQ Munich Sales Office Tokyo, Japan Regional HQ Changzhou, Jiangsu Corporate HQ & Factory Beijing Sales Office Shanghai, China Corporate Madrid Sales & Marketing Milan Sales Office Corporate & Regional Headquarters Regional Sales & Marketing Branches 22

23 Regionalized Decision Making Regional headquarters CHINA Offices SWITZERLAND USA JAPAN KOREA GERMANY ITALY SPAIN Benefits of regionalized decision making: Closer proximity to customers and markets Improved, region-based Customer Service Increased reactivity to market demand Consistent Global Brand Management Closer-to-Market Product Feedback Recruited local teams of experienced experts New warehouses in Europe and North America for greater flexibility 23

24 Market Strategy Increased Influence Over End Customer Manage Brand Recognition Customer Focus Brand Development Wholesalers and Distributors PV System Integrators / Large installers PV System Owners and Financiers Geographical Distribution: 22 Countries Large diversified customer base Active medium-large size customers Rapid adaptation to market requirements Well developed channel strategy Local focus to provide excellent service and effective brand management Solid position in: Strong development in: Growing in: Germany, Italy, Spain and Belgium France, Czech Rep., Australia, US Korea, China, India, Thailand 24 24

25 Geographic Diversification Serving customers in 22 countries ROE 3% China 4% Belgium 14% Italy Spain 32% 18% ROW 5% Germany 24% Italy 18% MW Belgium Spain14% 32% EUROPE France 7% Belgium 21% USA 2% China 3% Italy 20% ROW 10-5% ROW 2% MW Germany 33% Spain 12% France 4-6% Belgium 7-9% China USA 3-5% 13-15% Spain 13-15% Italy 19-21% ROW 2-3% Italy 19-21% MW USA & Others Germany 29-31% Czech Rep. 4-6% Spain 10-12% 1_Estimate 25 25

26 Global Market Overview 2009 PV Market estimate: 7.3 GW GERMANY FiT decreases encourages geographic diversification of customer base ITALY Strong growth in 09 CZECH REP. Outstanding 09 growth to continue into 2010 USA Market picking up in 2010, major growth of utility segment CANADA Ontario FiT to support steady growth CHINA National Feed-in-Tariff expected to spur PV growth INDIA Strong emerging market Source: internal estimates 26 26

27 Regional Market Outlook: Europe EUROPEAN MARKET OUTLOOK Germany to remain biggest World market despite FIT digression. CAP expected to be reached in Italy in French FIT changes to support growth of agricultural sector & medium size PV plants. Spain to remain a small market BUT very strong customers acting internationally. Belgium to decrease its size BUT very strong customers acting internationally Key European Markets in 2010 Trina Sales Presence TRINA ACTIONS New European HQ in Zurich. Expanded Sales Team in Germany. New sales office in Milano & Madrid Growing portfolio of Czech clients. Partnership with French top distributors. World s Largest Commercial Rooftop installation in Belgium (40MW) with Invictus. Sample projects throughout Europe 26 MW in Murcia, Spain 205 kw in Galargues, 20 kw in a Rome (South Eastern France) school, Italy 3,3 MW PV plant in Bavaria, Germany 40 MW rooftop in Belgium 100 kw in Arcadia, Greece 27 27

28 Regional Market Outlook: USA US MARKET PROSPECTS Strong growth in 2010 driven by state RPS requirements ARRA funding to boost renewable energy sector Project financing slowly improving Rapid growth of utilityscale projects Key 16 State Markets in 2010 Trina Sales & Marketing Presence TRINA ACTIONS New Regional Headquarters established in San Jose, CA Completed 2 MW groundmounted system at Colorado State University Partnerships with key national distributors, developers, and utilities Sales and customer services reps in each region 2.4 MW rooftop Atlantic City Convention Center 2 MW ground-mount Colorado State University Large-scale groundmount Large-scale rooftop 28 28

29 Regional Market Outlook: Asia-Pacific APAC MARKET PROSPECTS Australian market begins period of rapid growth under strong state Feed-in Tariffs Chinese market expected to take off in 2010 India s National Solar Mission spurs market growth New FiT encourages smooth growth of Japanese residential market Key APAC Markets in 2010 TRINA ACTIONS New Sales Offices in Japan & Korea Partnership with RFI, one of Australia s largest solar distributor Growing project pipeline in China Sales and customer service reps in each region 31.5 kw ground-mount Alice Springs, Australia 1.8 MW ground-mount Naju City, Korea 700 kw ground-mount Tibet, China 29 29

30 Project Installations (1/2) Spain 26MW 10 th largest installations in the world 1 USA 2.4MW America s largest single rooftop installation 2 Netherlands 83kW 2007 largest PV system in the Netherlands Italy 4.7MW Largest PV rooftop system in Italy 2 Germany 3.3MW Saves 2,200 tons of CO 2 a year 1. Source: pvresources.com, as of April 3, As of April 3,

31 Project Installations (2/2) Korea 1.8MW Greece 100kW Antwerp, Belgium 40MW Australia 31.5kW 31

32 Marketing Activities: New Sponsor of Renault F1 Team Increased Brand Recognition & Global Partnerships Global Ambassador of Solar PV: help elevate the status and accelerate the global adoption of solar PV Bring PV to the wider audience of global sports enthusiasts Trina Solar technologies will be integrated into the operations and ongoing upgrades of the Renault team s Enstone facilities Contribute to the greening of the Renault F1 team and the F1 sporting community F1 Race Tracks in all major markets 32

33 Marketing Activities Sponsored the Belgian European Pavilion at the Shanghai World Expo 2010 Sponsorship of Lisa Airplane: Developed 100% eco-friendly airplane, called the Hy-Bird. The plane will be flown around the globe, in stages. 33

34 Customer Events Organized customer events at the most important trade shows in Europe, Asia, and North America Locations of Customer Events: Valencia, Spain Munich, Germany Los Angeles, USA Tokyo, Japan Shanghai, China Changzhou, China and more to come 34

35 CHINA JAPAN KOREA U.S.A. SWITZERLAND GERMANY ITALY SPAIN