RENEWABLE ENERGY CORPORATION THE WORLD’S MOST INTEGRATED SOLAR ENERGY COMPANY George McClellan – Technical Sales Manager Feb 2014
REC Group – a leading, global solar company è Established in Norway 1996 è Vertically integrated with full ownership of all parts of the value chain: Polysilicon è wafers è cells è modules è systems è Strong cost position and balance sheet è Present in all key markets and segments è Revenues of more than 956 million Euro in 2012 è Almost 2,300 employees, including over 800 in the US è Headquarters Oslo, listed on the Oslo Stock Exchange (ticker: REC) 2 © 2011 REC All rights reserved.
The world’s most integrated solar company è Full control throughout the value-chain è synergies, optimization, quality, flexibility è A global and solid industry leader – in solar for the long run Polysilicon 3 Wafer Cells Modules Systems Chemical process Casting and cutting Surface treatment Assembly Project development, turnkey installations, financing Operations in USA Operations in Singapore Operations in Singapore Operations in Singapore Operations in EMEA, USA, APAC © 2011 REC All ri
Global presence Headquarter, Oslo, Norway Moses Lake, WA, USA Butte, MT, USA Munich, Germany Milan, Italy Barcelona, Spain San Francisco, CA San Luis Obispo, CA, USA Paris, France Tokyo, Japan Houston, TX, USA Shanghai, China Taipei, Taiwan Singapore Polysilicon Wafer Cells Modules Sales organizations 4 © 2011 REC All rights reserved.
4. REC is among the top 10 module suppliers Annual MW Shipments1) Ranking based on FY2012 shipments Market Share2) (%) FY 2012 2012 Yingli 2.297 Suntech 1.800 Trina Solar 1.590 Canadian Solar 1.543 First Solar 1.400 Sharp Jinko Sunpower Hanwha REC Group 1.300 912 863 829 791 8,4% 6,3% 5,4% 5,6% 4.8% 4.5% 3,1% 3.% 2,9% 2,8% Notes: 1) Branded and OEM module shipments; 2) Total market:28.6GW Sources: Company reports 5 © 2011 REC All rights reserved.
Revenue generation within the solar industry è REC is among the leading solar companies in revenue generation Total Revenues 2012 by Company In EUR million 2,621 2,040 1,650 1,423 1,009 1,007 956 754 671 606 599 459 228 Note: GCL Poly revenues include only its Solar business 2012 avg. exchange rates: USD/EUR 0,778; HKD/EUR 0,1; NOK/EUR 0,133 Source: Bloomberg; Company websites 6 © 2011 REC All rights reserved.
Equity value in the solar industry Market capitalization* by company (in EUR million, as of May 8, 2013) 2,886 1,115 430 307 271 175 119 *Value of a company’s equity as reflected in the company’s share price multiplied by the number of shares Source: Google Finance 7 © 2011 REC All rights reserved.
Net debt in the solar industry è Many solar companies are struggling with very high debt levels Net Debt by company (in EUR million, as of March 7, 2013) 2,472 1,630 1,331 770 598 247 267 -138 Source: Jefferies Cleantech Weekly 8 © 2011 REC All rights reserved.
REC has a healthy debt/equity ratio compared to peers ESTIMATES; BASED ON PUBLIC DATA Debt / Equity Ratio(1) comparison REC peers Q1 2012 Quarterly 106.6 105.5 Q4 2012 Q1 2013 and 0.6 Q1 2013 compared to the majority of industry peers è Otherwise, leading solar industry players are continuously increasing their D/E ratio 8.5 7.7 Q3 2012 è Healthy debt/equity ratio with 0.5 Q4 2012 20.7 8.7 Q2 2012 6.4 4.1 3.7 2.4 2.0 0.5 0.8 0,6 0.4 0.5 2.7 2.7 2.1 0.2 0.3 0.2 0.2 0.9 1.1 3.6 2.
Operational excellence è One of the world’s largest and most advanced integrated solar manufacturing facilities in Singapore è Highly automated to secure precision, reliability and quality – ISO 9001 certification è Flexible and scalable – can quickly be reconfigured and expanded to meet new demands è Best practice in environmental design and performance – ISO 14001 certification è Costs reduced at a high rate – automation makes cost level fairly independent of labor costs 10 © 2011 REC All rights re
REC Module Plant • 880 MWp capacity / 99.4% utilization • 4 Module lines • 8 Operators/line • total 340 Modules / hour RIGHT HERE AT REC 11 © 2011 REC All rights reserved.
REC Peak Energy Series è REC Peak Energy (PE) series 60 Cell è Power output 245-265Wp è REC Peak Energy (PE) series 72 Cell è Power output 295-315 Wp è 1000 VDC UL Certified è -0/+5Wp tolerance è 3 Bus Bar REC Peak Energy Cells è US Silicon è IP 67 JBox with MC4 Connectors è 25 Year linear power output warranty è 10 year materials and workmanship warranty 12 © 2011 REC All rights reserved.
Granular Silicon is manufactured into ingots REC Wafer produces G5 ingots, weighing 300 kg each. Out of one ingot we get about 11,000 wafers. 13 © 2011 REC All rights reserved.
Ingots are sawed into blocks, and then blocks into wafers - 100% traceability across entire value chain è REC is vertically integrated with manufacturing of their own Si, Wafers, Cells and Modules – no contract manufacturing or outside sourcing 14 © 2011 REC All rights reserved.
Assembly and Soldering 100% Controlled Robotics Soldering 100% controlled induction soldering Automated interconnection soldering for accurate placement and consistent good soldering 15 © 2011 REC All rights reserved.
Assembly and Soldering Manual soldering at a Chinese assembly site 16 © 2011 REC All rights reserved.
Durability: A Top Priority at REC è Hail Resistance – Dallas Texas, Sept 2011 è The building received hail damage after the solar panels were installed è All of the windows on the north and west sides of the house were broken or cracked 17 © 2011 REC All rights reserved.
Durability: A Top Priority at REC Hail Resistance – Virginia, 23 March 2012 - “Attached is a picture of hail from a storm that hit one of my PV customers. It landed during a tornado watch. They say it averaged about 1" in diameter. There were dented cars, neighbors with broken windows and destroyed vinyl siding but apparently NO damage to the PV modules.” Hail damage photo courtesy DIRECT CONNECT SOLAR & ELECTRIC LLC 18 © 2011 REC All rights reserved.
Warranty Claim Rates and Accrual Rates 19 © 2011 REC All rights reserved.
Warranty Claim Rates and Accrual Rates 20 © 2011 REC All rights reserved.
Warranty Claim Rates and Accrual Rates 21 © 2011 REC All rights reserved.
Warranty Claim Rates 22 © 2011 REC All rights reserved.
Higher reliability leads to lower in-field failure rates What do failure rates mean to a project owner? Claims rate 2011 Sun Power First Solar SunTech Candian Solar Yingli RECG 23 © 2011 REC All rights reserved. Confidential % modules/MWp 0.003 3448 0.0043 8000 0.001 4000 0.0004 4000 0.001 4000 0.000074 4000 annual failures/MWp 10.34 34.40 4.00 1.60 4.00 0.
REC Group Web Site – WWW.RECGROUP.COM 24 © 2011 REC All rights reserved.
RECGROUP.COM – Technical Documents 25 © 2011 REC All rights reserved.
Summary è A global and bankable industry leader – in solar for the long run è Industry leading module performance è Dedicated to the partner model
