Energie Powering der Tomorrow Zukunft Company Presentation Thalheim June 6, 2009
Company profile of Sovello AG: bringing together global know how Sovello AG is a Joint Venture (33.3% each) of: > Evergreen Solar Inc. (Marlboro, MA, USA) > Q-Cells SE (Thalheim, Sachsen-Anhalt) > REC ASA (Oslo, Norwegen) Working together in the PV value chain to further develop the one-of-a-kind String Ribbon products Polysilicon Wafer Solar Cell Modules System Synergetic strategic Silicon supply partner Know-how in cell and module production Know-how in wafer production Know-how in cell production partnerships with founding shareholders 2
Silicon to solar module production under one roof STRING-RIBBON -Wafer Multicrystalline Cells Quality Modules > Usage of low-cost / lowenergy granular silicon > Technology licensed from Evergreen Solar > Cell efficiency of 15% > Roadmap for increase to >17% > Up to 210Wp > Modul efficiency >13% > Very good tolerances > High degree of automation Advantages from integrated production > Integrated production allows very short cycle times from silicon to module > Knowledge of process parameters and of interdependency within process allows for continuous improvement > High degree of flexibility and quick reaction to customer demand and quality requirements > Optimum conditions for R&D regarding initiation and assessment of quality-, efficiency and reliability targets > High reliability of products can be achieved 3
STRING RIBBON TM solar wafers a key advantage in terms of cost Conventional cast process STRING RIBBON TM solar wafers 1. Production of ingot 1. Pulling of wafer and cutting with laser 2-3 days 2. Sawing of ingots 3. Sawing of cylinders 4. Sawing of wafers 2-3 hours Wafer 5. Cleaning of wafers Wafer Lower production costs due to > Lower silicon usage > No slurry (recycling) > Fewer production steps > Less power consumption 4
sustainability and, hence, marketability Carbon footprint and amortization of energy CO2 g/kwh 39,8 48,3 Years 1,4 1,9 2,1 27,9 String Ribbon Multi Mono String Ribbon Multi Mono 1) + 2) Based on South-European climate with an intensity of 1,700 kwh/m 2 p.a. STRING RIBBON solar panels based on EverQ data, including: Si feedstock, wafering, cell production, module assembly (incl. frame), BOS components 5
Our product Made in Germany > Best-in-class real-world performance: Leader in TÜV Rhineland 2008 field test (after 6 out of 12 months) > Anti-reflective coated glass, superior partial shading tolerance > 98% of rated power guaranteed for 180-190 Wp product; 100% guaranteed for 195-210 Wp product > 5 year workmanship and 25 year power warranty for ultimate peace of mind > Easy installation thanks to torsion-resistant, double-walled module frames and low total module weight > Most sustainable module quickest energy payback compared to products of its kind 6
Excellent performance it s real! Leader in TÜV Rhineland 2008 field test* Sovello 190 W p Module * Project Energy Yield 2008 field test of modules from 14 different manufacturers (e.g. BP, Kyocera, REC, Solarworld, Solon, SunTech), results depicted for May 2008, test not finalized yet, TÜV confirmation that Sovello is still in leading position six months into the 12 months test 7
Proven ramp-up track record Sovello 1 (Capacity 40 MWp, Investment 65m, 400 Employees) Sovello 2 (Capacity 60 MWp, Investment 115m, 450 Employees) 6 months 3 months 3 months 5 months 5 months 6 months 3 months 6 months 02/2005 08/2005 11/2005 02/2006 07/2006 02/2006 07/2006 01/2007 04/2007 10/2007 Sovello 3 (Capacity 80 MWp, Investment 150m, 500 Employees) Plant 1 Plant 2 Plant 3 8 months 9 months 4 months 03/2007 11/2007 08/2008 12/2008 8
Operational and financial highlights Milestones Ramp SV1, breakeven on monthly basis Ramp SV2, first FY net profit First positive operating cashflow SV3, attractive basis for further growth turnover 219 m 21% turnover EBITDA margin 139 m 15% turnover EBITDA margin 46 m 6% 50 EMP 500 EMP 1000 EMP 1100 EMP 30 MWp 100 MWp 100 MWp 2005 Plant 1 2006 Plant 1 2007 Plant 1+2 2008 Plant 1+2 9
Our progressive vision Environmental contribution: > Resource efficient technology > Enabling of large-scale solar power generation > Mitigating climate change and protecting the global environment Economic success: > Being profitable to allow for investments in new technologies and growth > Gaining access to capital markets > Achieving grid parity Social commitment: > Creating sustainable and qualified employment oppurtunities > Involvement and participation of employees > Commitment towards region > Initiatives for improving employee satisfaction 10
Management Board CEO Dr. Ted Scheidegger > Business Strategy > ICT > Public Relations > Investor Relations COO Jörg Baumheuer CTO Hans-Jörg Axmann CSO Christian Langen Director Finance Dr. Ingolf Weise > Production > SCM > Six Sigma > Projects > Environment, Health & Safety > Engineering > R&D > Project Engineer. > Factory Projects > QM > Sales > Marketing > Business Develop. > Sourcing > Accounting > Controlling > Finance > Risk Management > Grants 11
Dr. Ted Scheidegger (50), CEO Born: July, 21, 1958, Calgary, Canada Since July 2008: CEO Sovello AG 2005 2008: Vice President and General Manager, Emerson Retail Solutions Europe, Aachen (Germany) 2002 2005: Managing Director, Invensys Global Services Europe, London (UK) 2001 2008: CFO and Head of Carbon & Energy BU, Precious Woods Group, Zurich (Switzerland) 2000 2002: Managing Director, Invensys Energy Systems, Frankfurt/Main (Germany) 1998 2000: CFO and Head of Business Development, Hawker Traction Systems, Brussels (Belgium) 1995 1998: Vice President and CFO, Siemens Solar Industries, Camarillo, California (USA) 1984 1995: Controlling and Strategy Consultant, Siemens AG, Montreal (Canada) and Munich (Germany) 1984: Doctorate in Industrial Business Administration (University of Kiel, Germany) 1980: Degree in Computer Science and Business Administration (University of Vienna, Austria) 12
Hans-Jörg Axmann (39), CTO Born: March, 18, 1970, Erlangen, Germany Since Dec. 2007: CTO Sovello AG 2006 2007: Manager Wafer Fab, Manager Operation Front End and Manager Engineering, EverQ GmbH, Thalheim (Germany) 1999 2005: Manager Production Crystals, Schott ML GmbH/ SCHOTT Lithotec AG, Jena (Germany) 1999: Degree in Materials Science Engineering (University of Erlangen-Nuremberg, Germany) 13
Jörg Baumheuer (49), COO Born: August, 25, 1959, Hof, Germany Since March 2008: COO Sovello AG 2002 2008: Plant Manager, FAURECIA, Bad Abbach and Leipzig (Germany) and Banbury (UK) 2000 2002: Plant Manager, GKN, Bad Brückenau (Germany) 1995 2000: Plant Manager, INA Schaeffler, Spartanburg, S.C. (USA) 1986 1995: Manufacturing Manager, INA Schaeffler, Herzogenaurach and Ingolstadt (Germany) 1986: Degree in Engineering and Business Administration (University of Lübeck and VWA Munich, Germany) 14
Christian Langen (36), CSO Born: July, 14, 1972, Cochem, Germany Since June 2008: Since 2007 CSO Sovello AG Board Director of the European Photovoltaic Industry Association (EPIA) 2007 2008: CSO, Conergy AG, Hamburg (Germany) 2004 2007: Founder and Managing Director, Conergy Australia, Sydney (Australia) 2002 2004: Senior Consultant, Schickler Beratungsgruppe, Hamburg, (Germany) 1999 2002: Co-Founder, COO, IhrPreis AG, Düsseldorf (Germany) 1999: Visiting Researcher, INSEAD, Fontainebleau (France) 1994 1998: Master Degree in Business Adminstration ( Diplomkaufmann ), WHU- Otto Beisheim Graduate School of Management, Vallendar (Germany) 15
Dr. Ingolf Weise (39), Finance Director Born: September, 10, 1969, Halle/Salle, Germany Since July 2006: Director Finance, Accounting & Controlling Sovello AG 1995 2006: Director Auditing & Consulting, Deloitte, Leipzig (Germany) 1998: Doctorate in Business Administration 1995: Degree in Business Administration (Martin Luther University Halle-Wittenberg, Germany) 16
Contact Sovello AG OT Thalheim Sonnenallee 14-30 06766 Bitterfeld Wolfen phone: +49(0)3494 6664 0 email: ir@sovello.com www.sovello.com 17
Energie Powering der Tomorrow Zukunft