Piper Jaffray Clean Technology & Renewables Conference. Samuel Yang, Chief Executive Officer

Transcription

1 Piper Jaffray Clean Technology & Renewables Conference Samuel Yang, Chief Executive Officer February 20, 2008

2 Disclaimer This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of JA Solar Holdings Co., Ltd. ( JA Solar or 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. Specifically, this presentation does not constitute a prospectus within the meaning of the U.S. Securities Act of 1933, as amended. Any decision to purchase securities in the proposed offering should be made solely on the basis of the information contained in the statutory prospectus in due course in relation to the proposed offering. This presentation has been prepared by the Company solely for use at the roadshow presentation held in connection with the proposed offering. The information contained in this presentation has not been independently verified. 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. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revisions or changes. This presentation contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as may, could, expect, intend, plan, seek, anticipate, believe, estimate, predict, potential, or continue or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in JA Solar s Registration Statement on Form F-1 filed with the SEC on October 10, If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise. 2 By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other person for any purpose, during the presentation or while in the conference room. Participants must return this presentation and all others materials provided in connection herewith to the Company at the completion of the presentation.

3 Company Overview History Established in May 2005 Commenced commercial operations in April 2006 IPO on NASDAQ on February 7, 2007 Business High-performance solar cells Installed capacity: 175MW (425MW plan for 2008) Current average solar cell conversion efficiency about 16.5% Key Financials Q307 Total revenues: $113.4 M (242% YoY growth) Gross margin: $26.6M (23.5%) Net income: $22.1M (19.5%) Facilities & Employees Located in Hebei and Shanghai, China as well as California, USA About 1,400 employees 3

4 Year in Review Financial Performance Beat Street consensus estimate every quarter since IPO Raised $198M from follow-on offering in October Raised full year guidance and production outlook in Q307 Capacity Expansion Increased capacity from 75MW to 175MW in Q307 Developed high throughput production capability and each line produces more than name-plate capacity Polysilicon Supply From one major supplier to four major suppliers Secured polysilicon and silicon wafer contracts to cover 2008 production capacity Business Strength Built JA Solar brand name and strong customer base Enhanced executive team and added talents in manufacturing and technology organizations 4

5 Drivers for Solar Industry Growth Government support Public awareness of environmental issues Climate change High price of oil and other energy sources Low Cost of Solar Products The true driving force for proliferation of solar technology and achieve grid parity is low cost. By 2010, JA Solar aims to be an industry cost leader through technical innovation and operational efficiency. 5

6 Strategic Focus Star Model Technology N+ e - h+ e -h+ P- People Feedstock Production Efficiency COST LEADERSHIP Scale 1H06 4Q06 3Q E 6

7 World Class Organization First Priority at JA Solar is to build a high quality organization. New executive team additions in All members have both domestic and oversea academic training and international management experience. Managerial process ensures accurate execution of corporate strategy and deliver the results. Take advantage of global human resources, skills and experience. High moral standard and professionalism required at all levels in business dealings. 7 Integrality, Honesty, Consistency

8 Advanced Manufacturing High Throughput and High Efficiency Proprietary manufacturing technology and semiconductor production management protocol Average conversion efficiency about 16.5% with high degree of consistency Current breakage rate is about 1% Advanced Production Capabilities Advanced equipment from leading vendors in the world Custom-made equipment manufactured domestically to our specifications Flexible Manufacturing Capable of producing cells from monocrystalline and multi-crystalline wafers Up to 156mm x 156mm cell format; as thin as 180µm in wafer thickness 8

9 Technology Roadmap Advanced technologies including thin film Novel materials and cell designs Introduce new high efficiency solar cells platforms Further improve conversion efficiency ( 18.0% or better) Improve monocrystalline conversion efficiency (17.0%+) Introduce efficient multicrystalline substrates 12 Months Months > 24 months 9 New platforms of solar cell technology will further reduce cost per watt

10 People and Capabilities People - The best technical talents in the industry World renowned Si crystal growth expert, R&D director of a university crystal research lab Semiconductor device expert, semi device R&D leader in a large semiconductor company Solar device expert from University of California Semiconductor processing expert from one of the largest semiconductor foundries more.. Capabilities - The best tools and facilities Plan to set up a research laboratory in Silicon Valley, California. R&D centers in China. Plan to set up a JA Solar Technology Venture Fund to invest in solar technology ventures. 10 The Company is well positioned for further invention and innovation.

11 Customer Portfolio Strong customer portfolio including both major domestic and international module manufacturers. Portfolio designed to satisfy the near term pricing sensitivity and long term development strategy. System integrators often require the module vendors to use JA Solar s cells. Customers benefit from accurate power output, low breakage rate, track record of service. Direct customers: approx. 70% domestic and 30% international in Solaria Market Products Through Module and System Customers and Partners

12 Capacity Expansion Build the scale to meet market demand. Seven 25MW lines at present with total capacity of 175MW (MW) 425 By the end of 2008, plan to add a number of new lines, increasing total capacity to 425MW 175 About 30 days from equipment installation to full production Proven ability to ramp up production capacity

13 Polysilicon Supply Position E NEWCOs Secured contracts : 120MW 390MW Does not include NEWCOs 13 Note: Based on contracted MW amounts. Assumes 2.4W per cell. NEWCOs are the polysilicon suppliers unidentified.

14 Shunda Update Equipment On the Ground Construction Site 14

15 Challenges to Solar Product Manufacturers Polysilicon shortage will not ease in next two years. The cost of materials remains to be high. Most thin film alternatives demand costly investment and long pay back period. Advanced payments distort balanced sheets. Equipment availability hinders the capacity expansion. Capital market has become more prudent in evaluating solar companies. The industry still depends heavily on the political climate and government subsidy. 15 The Winners Are Those Who Have the Solutions to These Issues

16 Growth Strategy Develop a capable executive team and a competent organization to enhance execution capability. Build the scale to improve operational efficiency, broaden customer base and expand globally. Partner strategically with polysilicon producers to grow the business together. Accelerate technology development cell efficiency, wafer performance, manufacturing process, etc. Build strong brand name through selling quality products and services. Expand business portfolio as appropriate to gain strategic control. 16

17