First Solar Analyst Report - Global Data

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First Solar, Inc. (FSLR) - Financial and Strategic SWOT Analysis Review Reference Code: GDAE10641FSA Source : www.globalcompanyintelligence.com Page 1 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form First Solar, Inc. (FSLR) - Financial and Strategic SWOT Analysis Review Reference Code: GDAE10641FSA Publication Date: APR 2012 350 West Washington Street, Suite 600 Phone +1 419 6626899 Revenue 2,766.2 (million USD) Tempe, AZ Fax +1 602 4149400 Net Profit -39.49 (million USD) 85281 Website www.firstsolar.com Employees 7,000 United States Exchange FSLR [NASDAQ] Industry Alternative Energy Company Overview First Solar, Inc. (First Solar) manufactures and sells photovoltaic (PV) solar modules. The company's key products include PV Modules and Utility-Scale PV Systems. In addition, it provides variety of integrated services to its clients, including solar power systems design, engineering, procurement, and construction (EPC) services, project development, project financing, operating and maintenance and others. Geographically, the company operates across North America, Europe and Asia. First Solar is headquartered in Tempe, Arizona, the US. The company's business strategy has been to increase its manufacturing capacity, thereby increasing its market share. Key Executives Name Title Michael J. Ahearn Chairman Craig Kennedy Director James F. Nolan Director J. Thomas Presby Director Michael Sweeney Director Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData Share Data First Solar, Inc. Share Price (USD) as on 30-Mar- 2012 25.05 EPS (USD) -0.46 Market Cap (million USD) 2,173 Enterprise Value (million USD) 2,257 Shares Outstanding (million) 86 Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData SWOT Analysis First Solar, Inc., SWOT Analysis Strengths Weaknesses Long-Term Supply Contracts Technological Expertise: Low Cost Production Deteriorating Profitability Narrow Presence in the US Market Opportunities Threats Capacity Expansions German Solar Energy Market Procurement of Raw Materials Volatile Macroeconomics Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData Financial Performance Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData Recent Developments Mar 15, 2012 BW EUROPE To Distribute First Solar Thin- film PV Modules In Italy Mar 14, 2012 First Solar Announces 20 MW Maryland Solar Project Mar 14, 2012 First Solar Appoints James Hughes As Chief Commercial Officer Mar 12, 2012 First Solar To Build 26 MW Avra Valley PV Solar Project For NRG Energy Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Transcript of First Solar Analyst Report - Global Data

Page 1: First Solar Analyst Report - Global Data

First Solar, Inc. (FSLR) - Financial and Strategic SWOT Analysis Review

Reference Code: GDAE10641FSA

Source : www.globalcompanyintelligence.com Page 1 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form

First Solar, Inc. (FSLR) - Financial and Strategic SWOT Analysis Review Reference Code: GDAE10641FSA Publication Date: APR 2012

350 West Washington Street, Suite 600 Phone +1 419 6626899 Revenue 2,766.2 (million USD)

Tempe, AZ Fax +1 602 4149400 Net Profit -39.49 (million USD)

85281 Website www.firstsolar.com Employees 7,000

United States Exchange FSLR [NASDAQ] Industry Alternative Energy

Company Overview First Solar, Inc. (First Solar) manufactures and sells photovoltaic (PV) solar modules. The company's key products include PV Modules and Utility-Scale PV Systems. In addition, it provides variety of integrated services to its clients, including solar power systems design, engineering, procurement, and construction (EPC) services, project development, project financing, operating and maintenance and others. Geographically, the company operates across North America, Europe and Asia. First Solar is headquartered in Tempe, Arizona, the US. The company's business strategy has been to increase its manufacturing capacity, thereby increasing its market share.

Key Executives Name Title

Michael J. Ahearn Chairman

Craig Kennedy Director

James F. Nolan Director

J. Thomas Presby Director

Michael Sweeney Director Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Share Data First Solar, Inc.

Share Price (USD) as on 30-Mar-2012

25.05

EPS (USD) -0.46

Market Cap (million USD) 2,173

Enterprise Value (million USD) 2,257

Shares Outstanding (million) 86 Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

SWOT Analysis First Solar, Inc., SWOT Analysis

Strengths Weaknesses

Long-Term Supply Contracts

Technological Expertise: Low Cost Production

Deteriorating Profitability

Narrow Presence in the US Market

Opportunities Threats

Capacity Expansions

German Solar Energy Market

Procurement of Raw Materials

Volatile Macroeconomics

Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Financial Performance

Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

Recent Developments Mar 15, 2012 BW EUROPE To Distribute First Solar Thin-

film PV Modules In Italy

Mar 14, 2012 First Solar Announces 20 MW Maryland Solar Project

Mar 14, 2012 First Solar Appoints James Hughes As Chief Commercial Officer

Mar 12, 2012 First Solar To Build 26 MW Avra Valley PV Solar Project For NRG Energy

Source: Annual Report, Company Website, Primary and Secondary Research, GlobalData

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First Solar, Inc. (FSLR) - Financial and Strategic SWOT Analysis Review

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Table of Contents Table of Contents ............................................................................................................................................................................... 2

List of Tables .................................................................................................................................................................................. 4

List of Figures ................................................................................................................................................................................. 4

Section 1 - About the Company .......................................................................................................................................................... 5

First Solar, Inc. - Key Facts ................................................................................................................................................................ 5

First Solar, Inc. - Key Employees ....................................................................................................................................................... 6

First Solar, Inc. - Key Employee Biographies ..................................................................................................................................... 7

First Solar, Inc. - Major Products and Services .................................................................................................................................. 8

First Solar, Inc. - History ..................................................................................................................................................................... 9

First Solar, Inc. - Company Statement ............................................................................................................................................. 12

First Solar, Inc. - Locations And Subsidiaries ................................................................................................................................... 14

Head Office ................................................................................................................................................................................... 14

Other Locations & Subsidiaries ..................................................................................................................................................... 14

First Solar, Inc. - Key Manufacturing Facilities ................................................................................................................................. 16

Section 2 – Company Analysis ......................................................................................................................................................... 17

First Solar, Inc. - Business Description ............................................................................................................................................. 17

Business Description - Components ............................................................................................................................................. 17

Components - Overview ............................................................................................................................................................ 17

Components - Production .......................................................................................................................................................... 17

Components - Financials ........................................................................................................................................................... 17

Components - Market View ....................................................................................................................................................... 18

Components - Technology ........................................................................................................................................................ 18

Business Description - Others ...................................................................................................................................................... 18

Others - Overview ..................................................................................................................................................................... 18

Others - Financials .................................................................................................................................................................... 18

First Solar, Inc. - SWOT Analysis ..................................................................................................................................................... 19

SWOT Analysis - Overview ........................................................................................................................................................... 19

First Solar, Inc. - Strengths ........................................................................................................................................................... 19

Strength - Long-Term Supply Contracts .................................................................................................................................... 19

Strength - Technological Expertise: Low Cost Production ......................................................................................................... 19

Strength - Leading Solar Module Manufacturer ......................................................................................................................... 19

First Solar, Inc. - Weaknesses ...................................................................................................................................................... 20

Weakness - Deteriorating Profitability ....................................................................................................................................... 20

Weakness - Narrow Presence in the US Market ....................................................................................................................... 20

First Solar, Inc. - Opportunities ..................................................................................................................................................... 20

Opportunity - Capacity Expansions ........................................................................................................................................... 20

Opportunity - German Solar Energy Market .............................................................................................................................. 20

Opportunity - Expansion in the US Solar Market ....................................................................................................................... 20

Opportunity - Growing Solar PV Industry .................................................................................................................................. 21

First Solar, Inc. - Threats .............................................................................................................................................................. 21

Threat - Procurement of Raw Materials ..................................................................................................................................... 21

Threat - Volatile Macroeconomics ............................................................................................................................................. 21

Threat - Intense Competitive Landscape ................................................................................................................................... 21

Threat - Cuts in Solar Feed-in-Tariff (FiT) ................................................................................................................................. 22

First Solar, Inc. - Key Competitors .................................................................................................................................................... 23

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Section 3 – Company Financial Ratios ............................................................................................................................................. 24

Financial Ratios - Capital Market Ratios ........................................................................................................................................... 24

Financial Ratios - Annual Ratios ...................................................................................................................................................... 24

Performance Chart ........................................................................................................................................................................... 26

Financial Performance ...................................................................................................................................................................... 26

Financial Ratios - Interim Ratios ....................................................................................................................................................... 27

Financial Ratios - Ratio Charts ......................................................................................................................................................... 28

Section 4 – Company’s Power Financial Deals and Alliances .......................................................................................................... 29

First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012 .......................................................................................................... 29

First Solar, Inc., Power, Deals By Type, 2006 to YTD 2012 ......................................................................................................... 30

First Solar, Inc., Recent Deals Summary .......................................................................................................................................... 31

Section 5 – Company’s Recent Developments ................................................................................................................................ 32

First Solar, Inc., Recent Developments ......................................................................................................................................... 32

Mar 15, 2012: BW EUROPE To Distribute First Solar Thin-film PV Modules In Italy ................................................................ 32

Mar 14, 2012: First Solar Announces 20 MW Maryland Solar Project ....................................................................................... 32

Mar 14, 2012: First Solar Appoints James Hughes As Chief Commercial Officer ..................................................................... 32

Mar 12, 2012: First Solar To Build 26 MW Avra Valley PV Solar Project For NRG Energy ....................................................... 32

Mar 12, 2012: First Solar Begins Construction Of Solar PV System At Frank Lloyd Wright Foundation's Taliesin West Campus In Arizona .................................................................................................................................................................................. 33

Mar 06, 2012: SMA America’s Inverters To Power 290 MW Agua Caliente Solar Project In Arizona ....................................... 33

Feb 28, 2012: First Solar To Delay Production Of Solar Panels At Its Mesa Facility ................................................................ 33

Feb 28, 2012: First Solar Reports Revenue Of $2.8 Billion In 2011 .......................................................................................... 34

Feb 27, 2012: Frank Lloyd Wright Foundation Announces Energizing Taliesin West Initiative ................................................. 35

Feb 23, 2012: Sonnedix And First Solar Announce Completion Of 7.5 MW Nakhon Ratchasima Solar Farm .......................... 35

Section 6 – Appendix ....................................................................................................................................................................... 37

Methodology ................................................................................................................................................................................. 37

Ratio Definitions ............................................................................................................................................................................ 37

About GlobalData ......................................................................................................................................................................... 41

Contact Us .................................................................................................................................................................................... 41

Disclaimer ..................................................................................................................................................................................... 41

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List of Tables

First Solar, Inc., Key Facts ................................................................................................................................................................. 5

First Solar, Inc., Key Employees ........................................................................................................................................................ 6

First Solar, Inc., Key Employee Biographies ...................................................................................................................................... 7

First Solar, Inc., Major Products and Services .................................................................................................................................... 8

First Solar, Inc., History ...................................................................................................................................................................... 9

First Solar, Inc., Other Locations ...................................................................................................................................................... 14

First Solar, Inc., Subsidiaries ............................................................................................................................................................ 14

First Solar, Inc., Key Manufacturing Facilities ................................................................................................................................... 16

First Solar, Inc., Key Competitors ..................................................................................................................................................... 23

First Solar, Inc., Ratios based on current share price ....................................................................................................................... 24

First Solar, Inc., Annual Ratios ......................................................................................................................................................... 24

First Solar, Inc., Interim Ratios ......................................................................................................................................................... 27

First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012 ............................................................................................................. 29

First Solar, Inc., Power, Deals By Type, 2006 to YTD 2012 ............................................................................................................. 30

First Solar, Inc., Recent Deals Summary .......................................................................................................................................... 31

Currency Codes ............................................................................................................................................................................... 37

Capital Market Ratios ....................................................................................................................................................................... 37

Equity Ratios .................................................................................................................................................................................... 38

Profitability Ratios ............................................................................................................................................................................. 38

Cost Ratios ....................................................................................................................................................................................... 39

Liquidity Ratios ................................................................................................................................................................................. 39

Leverage Ratios ............................................................................................................................................................................... 40

Efficiency Ratios ............................................................................................................................................................................... 40

List of Figures

First Solar, Inc., Performance Chart (2007 - 2011) ........................................................................................................................... 26

First Solar, Inc., Ratio Charts ........................................................................................................................................................... 28

First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012 ............................................................................................................. 29

First Solar, Inc., Power, Deals by Type, 2006 to YTD 2012 ............................................................................................................. 30

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Section 1 - About the Company

First Solar, Inc. - Key Facts First Solar, Inc., Key Facts

Corporate Address 350 West Washington Street, Suite 600, Tempe, AZ, 85281, United States

Ticker Symbol, Exchange FSLR [NASDAQ]

Telephone +1 419 6626899 No. of Employees 7,000

Fax +1 602 4149400 Fiscal Year End December

URL www.firstsolar.com Revenue (in USD Million) 2,766.2

Industry Energy and Utilities

Locations Belgium, France, Germany, Malaysia, Spain, United States

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - Key Employees

First Solar, Inc., Key Employees

Name Job Title Board Level Since Age

Michael J. Ahearn Chairman, Interim Chief Executive Officer

Executive Board

2011 54

Craig Kennedy Director Non Executive Board 2007 59

James F. Nolan Director Non Executive Board 2003 79

J. Thomas Presby Director Non Executive Board 2006 71

Michael Sweeney Director Non Executive Board 2003 53

Paul H. Stebbins Director Non Executive Board 2006 54

Jose H. Villarreal Director Non Executive Board 2007 57

William J. Post Director Non Executive Board 2010 60

Mary Beth Gustafsson Executive Vice President, General Counsel, Secretary

Senior Management

2009 51

Carol Campbell Executive Vice President, Human Resources

Senior Management 2009 59

Maja Wessels Executive Vice President, Global Public Affairs

Senior Management 2009 51

David Eaglesham Chief Technology Officer Senior Management 2009 49

Mark Widmar Chief Accounting Officer, Chief Financial Officer

Senior Management

2011

James Zhu Chief Accounting Officer Senior Management 49

Christopher Burghardt Head of sales operations Senior Management 2011

James Brown Executive Vice President, Global Business Development

Senior Management 2011 48

James Hughes Chief Commercial Officer Senior Management Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - Key Employee Biographies

First Solar, Inc., Key Employee Biographies

Michael J. Ahearn Job Title: Chairman, Interim Chief Executive Officer Board Level: Executive Board Since: 2011 Age: 54

Mr. Ahearn has been the chairman and interim chief executive officer of the company since 2011. Prior to this, he served as the chief executive officer of the company from August 2000 to September 2009. Prior to joining First Solar, he was a partner and the president of the equity investment firm, JWMA (formerly True North Partners, L.L.C.), the majority stockholder of First Solar. Prior to joining JWMA, Mr. Ahearn practiced law as a partner in the firm of Gallagher & Kennedy.

David Eaglesham Job Title: Chief Technology Officer Board Level: Senior Management Since: 2009 Age: 49

Mr. Eaglesham has been the chief technology officer of the company since 2009. Prior to this, he served as the vice president of Technology in 2006. Prior to joining First Solar he worked at Lawrence Livermore as the chief technologist and at Applied Materials as a director of Advanced Technologies. He joined Bell Labs in 1988, where he worked on semiconductor deposition techniques and doping and became a director of Electronic Device Research.

Mark Widmar Job Title: Chief Accounting Officer, Chief Financial Officer Board Level: Senior Management Since: 2011

Mr. Widmar has been the chief financial officer of First Solar since April 2011. Prior to joining the company, he served as the chief financial officer of Graftech International, and also served as the president of Graftech's Engineering Solutions business. From 2005 to 2006, he served as corporate controller of NCR Inc. Mr. Widmar began his career in 1987 as an accountant with Ernst & Young. He held various financial and managerial positions with Dell, Inc., Lucent Technologies, Inc., AlliedSignal, Inc., and Bristol Myers/Squibb, Inc.

James Zhu Job Title: Chief Accounting Officer Board Level: Senior Management Age: 49

Mr. Zhu is the chief accounting officer of the company. He joined the company as the vice president and corporate controller in June 2007. Prior to joining First Solar, he was the vice president and corporate controller of Salesforce.com. During 1999 –2004, he held a number of positions at Chiron Corporation including the Associate director and Accounting manager. Prior to joining Chiron Corporation, he spent several years at KPMG, LLP.

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - Major Products and Services First Solar designs and manufactures solar modules using thin film semiconductor technology. The company’s key products and services include the following:

First Solar, Inc., Major Products and Services

Products:

Solar Modules

Solar Systems

Services:

Project Development

EPC Services

Operation and Maintenance

Module Recycling

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - History

First Solar, Inc., History

2011 Acquisitions/Mergers/Takeovers In February, First Solar acquired 15 MW Amherstburg II solar project from Helios Energy Inc.

2011 Acquisitions/Mergers/Takeovers In January, First Solar, Inc. acquired RayTracker, Inc.

2011 Commercial Operation In June, First Solar reached 4 GW manufacturing milestone.

2011 Commercial Operation In March, First Solar started the construction of a solar PV manufacturing facility in Ho Chi Minh City, Vietnam with an annual production capacity of 250 MW.

2011 Contracts/Agreements In January, First Solar signed a memorandum of understanding (MoU) with China Guangdong Nuclear Solar Energy Development Co., Ltd. (CGN SEDC) to collaborate on the development of phase 1 of the previously announced solar photovoltaic (PV) plant in Ordos, Inner Mongolia.

2011 Contracts/Agreements In January, Plutonic Power agreed to buy 50 MW portfolio from First Solar in partnership with GE Energy financial services.

2011 Contracts/Agreements In May, First Solar and China Power entered into a cooperation framework agreement to collaborate on solar PV projects.

2011 Corporate Changes/Expansions In March, First Solar established a solar module factory in Mesa, Arizona with an annual production of 250 MW.

2011 Regulatory Approval In June, First Solar’s thin-film solar PV modules received accreditation under the UK Microgeneration Certification Scheme (MCS), which enables the company to use its modules in systems that benefit from the feed-in tariff in the UK

2010 Acquisitions/Mergers/Takeovers First Solar acquired a portion of Edison Mission Group's (EMG) solar project development pipeline.

2010 Acquisitions/Mergers/Takeovers First Solar acquired NextLight Renewable Power, LLC, a leading developer of utility-scale solar power projects for $296.7m.

2010 Acquisitions/Mergers/Takeovers First Solar entered into a definitive agreement with NextLight Renewable Power, LLC, to acquire NextLight, a developer of utility scale solar projects in the southwestern United States.

2010 Acquisitions/Mergers/Takeovers NRG Energy Inc., through its wholly owned subsidiary, NRG Solar, acquired 290 MW Agua Caliente solar project from First Solar.

2010 Asset Disposal First Solar sold its 30 MW (AC) photovoltaic solar power project to Southern Company and Turner Renewable Energy.

2010 Commercial Operation First Solar and Enbridge Inc. completed Sarnia Solar Project, the

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largest photovoltaic facility in the world with a capacity of 80 MW.

2010 Commercial Operation First Solar formed a utility systems business group to address the large-scale PV system solutions market.

2010 Contracts/Agreements First Solar signed a contract with PNM, New Mexico's electric utility to construct 22 MW AC of utility scale PV solar power plants in New Mexico.

2010 Corporate Changes/Expansions First Solar announced its plans to open two manufacturing facilities, in the US and Vietnam.

2009 Acquisitions/Mergers/Takeovers First Solar entered into an agreement to significantly expand its penetration within the U.S. utility solar power market with the acquisition of OptiSolar's solar project pipeline.

2009 Acquisitions/Mergers/Takeovers First Solar entered into an agreement with Enbridge Inc., to acquire a 20 MW solar energy project from First Solar.

2009 Commercial Operation First Solar along with NRG Energy Inc. announced the start of commercial operation for the photovoltaic (PV) solar project in California.

2009 Commercial Operation First Solar, National Bank of Arizona (NBA), and SolarCity planned to build a 222 kilowatt (DC) solar installation in Phoenix.

2009 Contracts/Agreements First Solar and Pfalzsolar, GmbH, a German solar project developer owned by Pfalzwerke AG, a public utility in the state of Rhineland-Palatinate signed a long term supply agreement.

2009 Contracts/Agreements First Solar entered into a 25-year power purchase agreement with Tri-State Generation and Transmission Association, Inc.

2009 Contracts/Agreements First Solar entered into agreement with NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc., for NextEra Energy Resources to purchase four solar PV projects totaling 40 MW in Ontario, Canada from First Solar, Inc.

2009 Contracts/Agreements First Solar signed a contract with the Los Angeles Department of Water and Power (LADWP), to build a large-scale solar power project in Imperial County, California.

2009 Contracts/Agreements First Solar signed a memorandum of understanding (MOU) with the Chinese government to build a 2GW solar power plant in Ordos City, Inner Mongolia, China.

2009 Contracts/Agreements First Solar signed an agreement to build a 48 MW AC ground mounted PV power plant for Sempra Generation.

2009 Contracts/Agreements First Solar signed an agreement with Edison International's Southern California Edison (SCE), to build two large-scale solar power projects in Riverside and San Bernardino counties in Southern California.

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2009 Other First Solar was selected by Masdar Abu Dhabi Future Energy Company, to supply 5 MW of its thin film solar modules to be part of the largest grid-connected photovoltaic (PV) system in the Middle East.

2008 Contracts/Agreements First Solar entered into a five-year agreement with SolarCity Corporation for supply of thin film solar modules.

2008 Contracts/Agreements First Solar with SolarCity Corporation entered into a five year agreement module supply agreement and investment. First Solar will be supplying 100 MW of its advanced this film solar modules to SolarCity, marking the company’s entrance into United States residential segment during the year ended 2008.

2008 Contracts/Agreements Southern California Edison (SEC) selected First Solar to engineer and supply the 2 MW photovoltaic power plant system, which is to be installed on the roof of a commercial building in Fontana, CA.

2008 Corporate Changes/Expansions First Solar announced to expand its Perrysburg, Ohio facility to approximately 192MW.

2007 Acquisitions/Mergers/Takeovers First Solar acquired Turner Renewable Energy, LLC, a privately held company that designs and deploys commercial solar projects for utilities in the US.

2007 Corporate Changes/Expansions First Solar expanded its manufacturing capacity to 277 MWand the company commenced the construction of additional plants, which will bring total capacity to 910 MW in 2009.

2006 Stock Listings/IPO First Solar listed its common stock on the NASDAQ Stock Market under the symbol FSLR.

2002 New Products/Services First Solar started commercial production.

1999 Incorporation/Establishment First Solar was incorporated.

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - Company Statement A statement by Mr.Rob Gillete, the former chief executive officer of First Solar is given below. The following statement has been taken from the company’s 2010 annual report. 2010 was a year of significant progress for First Solar, setting the stage for future growth and value creation. We executed well on our cost reduction and technology roadmaps, began to implement significant manufacturing capacity expansions, diversified our end-market exposure, bolstered our utilityscale systems business, and delivered solid financial results. By the end of the year, we had reached over 3 gigawatts (GW) of cumulative production, enough electricity to power approximately 900,000 average homes. All of these accomplishments advance our mission of enabling a world powered by clean, affordable solar electricity. We retained our cost leadership position and continued to minimize the cost of generating photovoltaic (PV) electricity. Our goal is to reduce the levelized cost of electricity (LCOE) to parity with gas combined cycle peak generation assets, enabling prices of $0.10-0.12 per kilowatt hour (kWh) in regions with high solar resource, like the Southwestern United States. During 2010, we made significant progress to reduce costs in four areas: module, balance of system (BoS), project development, and financing. For example, our module manufacturing cost per watt declined 11 percent year over year to $0.75 in the fourth quarter of 2010 through improvements in factory throughput, material costs, and module conversion efficiency. Additionally, we continued to drive down BoS costs. Our cost of labor and materials required to install solar modules is down 30 percent since 2008. Overall, we made substantial progress in reducing LCOE in 2010, and built projects in the U.S. capable of producing power at $0.14-0.16/kWh. During 2010, we were capacity constrained and re-allocated significant volumes of modules from our systems business to support our customers in Europe. We announced and began construction on several expansions to address this constraint and to enable our future growth, including new factories in Malaysia (8 lines), Germany (4 lines), Vietnam (initial capacity 4 lines), and the United States (initial capacity 4 lines). All told, we plan to almost double our current capacity to 2.9GW, at Q4 2010 throughput rates, by the end of 2012. We cultivated new markets for solar power and expanded our own utility-scale systems pipeline. The global solar market grew over 100 percent in 2010 to almost 16GW, according to analyst estimates. While Germany remained an important market, Italy, France, and North America grew as a percentage of our revenues. We took another important step toward realization of the 2GW Ordos project in China by entering into a partnership with one of the largest generating companies in the country, China Guangdong Nuclear. The Ordos City project in Inner Mongolia received approval of its pre-feasibility study in September 2010, an important permitting milestone. We are also the module supplier for two of the four finalists for the Solar Flagship program in Australia. And in India, we signed module supply agreements with ACME and Moser Baer Clean Energy. In North America, we acquired NextLight Renewable Power and its 1.1GW of contracted and advanced pipeline, as well as the solar project pipeline of Edison Mission Energy. We constructed and sold three sizeable projects, one of which, in Sarnia, Ontario, Canada, is currently the largest solar PV installation in the world. First Solar added and expanded relationships with several major North American utility scale customers. For instance, we entered into an agreement to sell the 290 megawatt (MW) alternating current (AC) Agua Caliente project to NRG Energy. Upon its completion, Aqua Caliente is expected to be the largest operational solar PV plant in the world. We significantly broadened the list of buyers of our utility-scale systems, which is a positive sign of the continued acceptance and technology adoption of PV solar. This geographic diversification is important as we strengthen our position in the traditional subsidized markets, while developing new markets that have the potential to become sustainable. Looking forward to 2011, new markets are developing rapidly, and overall unit demand is projected to grow by approximately ten percent year over year after a very strong 2010. Shifting government policy in subsidized markets is resulting in uncertainty about the amount and timing of demand. There is a risk of potential industry oversupply, which could pressure prices in the more competitive markets. Despite this backdrop, First Solar remains well-positioned for profitable growth due to several factors. First, we are the cost and technology leader, and not all of the PV module supply in the industry is cost-competitive. We are increasing module manufacturing capacity which enables us to scale costs and gain market share, and we expect to continue to maintain at least a 30 percent cost advantage in 2011. Second, we enter the year with a high portion of our capacity under contract and committed to customers. As in 2010, we plan to use our contracted North American project pipeline of over 2.4GW (AC) as a buffer against demand uncertainties. Third, First Solar will invest $1.1 billion in capital expenditures in 2011. In addition, we will invest significant sums in research and development to continue the drive for the lowest LCOE and maximum energy yield. Fourth,

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we are rapidly diversifying our market exposure, making us less dependent on demand from any one geographic region. Finally, our strong balance sheet and cash flow generation support a lower cost of capital for our utility-scale systems, and therefore lower the LCOE. Our strong financial position and business model have also enabled us to fund our capacity growth, R&D investment, and market development. Our key areas of focus in 2011 are to execute on our planned project pipeline and customer contracts, implement our capacity expansion plans to drive growth, continue to invest globally in developing markets to increase demand visibility and mitigate risk, and drive LCOE toward grid parity by continuing to implement our cost and technology roadmaps. While we are focused on results, we are also focused on how we want to accomplish these results. We are dedicated to conducting our business in a sustainable manner environmentally, socially, and financially. With a commitment to product life cycle management, including our prefunded module collection and recycling program, First Solar is focused on providing value-driven energy solutions that protect and enhance the environment. On a life cycle basis, our PV technology has the lowest carbon footprint and the fastest energy payback time in the industry. In addition, First Solar has always had a long-standing commitment to socially sustainable manufacturing and site development. I remain very excited about being a part of First Solar. My appreciation goes out to all of our associates for their contributions to our success in 2010 and beyond. I would also like to thank Mike Ahearn for his continuing commitment to First Solar’s success as he transitions from Executive Chairman to Chairman of the Board of Directors. And finally, I would like to recognize and thank the shareholders who participate in our long-term vision. I assure you that we remain committed to creating enduring value for you now and in the future.

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First Solar, Inc. - Locations And Subsidiaries

Head Office

First Solar, Inc. 350 West Washington Street Suite 600 Tempe AZ 85281 United States Tel: +1 419 6626899 Fax: +1 602 4149400

Other Locations & Subsidiaries

First Solar, Inc., Other Locations

353 Sacramento Street

Suite 2100

San Francisco

CA

94111

United States

18300 Von Karman Avenue Suite 930 Irvine CA 92612 United States

620 Eighth Avenue 44th Floor New York NY 10018 United States

Rue de la Science, 41 Brussels 1040 Belgium

19 boulevard Malesherbes Paris 75008 France

Avd. Brasil, 6 - 1 planta Madrid 28020 Spain

Floor 6, Building No. 2 No. 5 Guanghua Road, Cheoyang District Bejing 100020 China

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

First Solar, Inc., Subsidiaries

First Solar Development (Canada), Inc.

5115 Blackwell Sideroad

Sarnia

ON

First Solar GmbH Rheinstrasse 4B Mainz 55116

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N7T 7H3

Canada

Germany Tel: +49 6131 14430 Fax: +49 6131 1443500

First Solar Holdings GmbH Germany

First Solar FE Holdings Pte. Ltd. 20 Raffles Place #09-01 Ocean Towers Downtown 48620 Singapore

First Solar Electric, LLC 400 Somerset Corporate Boulevard Suite 501 Bridgewater NJ +8807 United States Tel: +1 908 8094000

First Solar Development, Inc. 1111 Broadway 4th Floor Oakland CA 94607 United States Tel: +1 510 6257400

First Solar Australia Pty Ltd Level 3, 16 Spring Street Sydney NSW 2000 Australia

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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First Solar, Inc. - Key Manufacturing Facilities

First Solar, Inc., Key Manufacturing Facilities

28101 Cedar Park Blvd.Perrysburg

OH

43551

United States

First Solar Manufacturing GmbH Marie - Curie - Str. 3 Frankfurt Hessen 15236 Germany Tel: +49 3355 21020 Fax: +49 3355 2102199

First Solar Malaysia Sdn. Bhd. 8, Jalan Hi-Tech 3/3 Zon Industri Fasa 3, Kulim Hi-Tech Park Kulim 09000 Malaysia Tel: +60 4 4016888

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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Section 2 – Company Analysis

First Solar, Inc. - Business Description First Solar, Inc. (First Solar) designs, manufactures and markets photovoltaic (PV) solar modules worldwide. The company manufactures solar modules by utilizing thin-film semiconductor material that converts sunlight into electricity. The company's sells its products to system integrators, operators of renewable energy projects and project developers. It also provides services related to the project development, engineering, procurement and construction (EPC), operating and maintenance (O&M and project financing.The company has manufacturing facilities located at Ohio, Germany, Malaysia, France, Vietnam and the US. First solar carries out its research and development activities at Perrysburg, Ohio. For the fiscal year ended December 31, 2010, the company produced 1.4 GW of solar modules. First Solar operates business in two reportable segments, namely, components and others. The components segment designs, manufactures and sells solar modules and the other segment provides project development, engineering, operation and maintenance services. The company carries out its operations along with its subsidiaries, namely, First Solar Development (Canada), Inc., First Solar GmbH, First Solar Holdings GmbH , First Solar Manufacturing GmbH , First Solar FE Holdings Pte. Ltd., First Solar Malaysia Sdn. Bhd., First Solar Electric, LLC, First Solar Development, Inc and First Solar Australia Pty Ltd. In December 2011, the company sold its Topaz Solar Farm, a 550-megawatt photovoltaic power plant in San Luis Obispo County to MidAmerican Energy Holdings Company. In November 2011, the company started the construction of 10-megawatt AC Greenough River Solar Farm, in Australia. In October 2011, the company along with Solar Chile entered into a agreement to develop solar projects in Chile. In September 2011, the company sold a 550-megawatt Desert Sunlight Solar Farm in Calif to the affiliates of NextEra Energy Resources, LLC. In September 2011, the company announced a 100 MW solar module supply agreement with Reliance Power.

Business Description - Components

Components - Overview

The company designs, manufactures and sells solar modules to solar project developers and system integrators and operators of renewable energy projects. The solar module is approximately 2ft × 4ft (60cm × 120cm) in size and had an average rated power of approximately 76 watts, 75 watts and 73 watts in 2010, 2009 and 2008 respectively. During 2010, the company sold most of its products to solar project developers, system integrators and operators in Germany, Italy, France, Spain and the US. Its customers develop, construct, own and operate solar power plants or sell turnkey solar power plants to end-users, including owners of land, agricultural buildings, commercial warehouses, offices and industrial buildings, public agencies, municipal government authorities, utility companies and financial investors, which seek to own large scale solar power plant projects. The principal customers of the segment in 2010 include EDF EN Development, juwi Solar GmbH, Biltzstrom GmbH and Phoenix Solar AG.

Components - Production

For the fiscal year ended December 31, 2010, the company produced 1.4 GW of solar modules and operated 24 production lines with an annual global manufacturing capacity of approximately 1.5 GW. It manufactures solar modules on high-throughput production lines and performs all manufacturing processes in an automated, proprietary and continuous manner. Currently, First Solar manufactures solar modules at manufacturing facilities in Perrysburg, Ohio, the US; Frankfurt/Oder, Germany; and Kulim, Malaysia. For the nine months period ended September 30, 2011, the company operated 36 production lines with an annual global manufacturing capacity of 2.3 GW. The company intends to increase its manufacturing capacity by completing its plant in Mesa, Arizona to 40 production lines by the end of 2012, with an annual global manufacturing capacity of approximately 2.5 GW.

Components - Financials

For the fiscal year ended December 31, 2010, the company's Components segment generated revenue of $2,185.16m, representing an increase of 11% as compared to 2009. The increase in sales was mainly due to the strong demand from German customers, ahead of feed-in-tariff (FiT) reductions and increased net sales due to modules installed in utility-scale solar power

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systems. This segment contributed to 85% of total sales in 2010. The segment accounted for 46% of the company’s total net sales in 2010 from solar module sales to German customers. For the nine months ended September 30, 2011, the components segment generated revenue of $1,604.16m. The company generated $1,284.82m, for the sale of Solar modules.

Components - Market View

In 2010, the solar industry continued to move from a supply driven to a demand driven environment, with increasing competitive pressure as the photovoltaic industry’s total manufacturing capacity to produce solar modules exceeded the demand for those products. The company expects that the photovoltaic industry’s total manufacturing capacity to produce solar modules will continue to exceed demand in 2011. According to the company’s reports, the global market for PV solar modules is projected to have a 35% compound annual growth rate through 2012, increasing the demand to approximately 12 GW worldwide. However, as Europe constitutes the world’s largest solar market, the European meltdown is expected to hinder the progress of the entire solar industry. Debt-ridden countries on the continent such as Italy cut back their solar subsidies to reduce deficit, which is expected to be followed by several other European countries. In the US markets, the demand for solar has been driven mainly by renewable portfolio standards requiring regulated utilities to supply a portion of their total electricity from renewable energy sources such as solar.

Components - Technology

The company's solar module is approximately 2ft × 4ft (60cm × 120cm) in size and had an average rated power of approximately 76 watts in 2010. The solar module is a single-junction polycrystalline thin film structure that uses cadmium telluride (CdTe) as the absorption layer and cadmium sulfide as the window layer. CdTe has absorption properties that substantially match the solar spectrum and has the potential to deliver competitive conversion efficiencies using only about 1-2% of the semiconductor material used by traditional crystalline silicon solar modules. The company's thin film technology also has relatively high energy performance in low light and high temperature environments as against traditional crystalline silicon solar modules.

Business Description - Others

Others - Overview

The segment comprises Systems business, which provides solar PV power system solutions, including project development, EPC services, and O&M services. Its systems business is dependent on the successful completion of project development activities including site selection and acquisition, obtaining the requisite interconnection and transmission studies in a timely manner, environmental and land use permits, maintaining effective site control, and entering into a power purchase agreement with an off-taker of the power to be generated by the project. The company’s systems business has grown over the past several years through a combination of business acquisitions and organic growth. In January 2010, the company acquired certain assets from Edison Mission Group's solar project development pipeline consisting of utility-scale solar projects mainly on private land in California and the Southwest. In July 2010, the company acquired NextLight Renewable Power, LLC, a developer of utility-scale solar projects in the US. The segment provides services to investor-owned utilities, independent power developers and producers, commercial and industrial companies, and other system owners that purchase completed solar power plants, EPC services and/or operation and maintenance services. The company's key customers for this segment include Southern Company , Enbridge, Inc. and Sempra Energy.

Others - Financials

For the fiscal year ended December 2010, the company's Others segment generated revenue of $378.35m, representing an increase of 275% over revenue in 2009. this segment contributed to 15% of total revenues in 2010. The net sales from the systems business comprise essentially the sale of two utility scale solar power systems in Europe and North America. For the nine months ended September 30, 2011, the other segment generated revenue of $501.69m, an increase of 44% as compared to September 25, 2010. The company generated $821.03m, for the sale of solar power systems and related services.

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First Solar, Inc. - SWOT Analysis

SWOT Analysis - Overview

First Solar, Inc. (First Solar) pioneered the design and manufacture of solar modules using a thin film semiconductor technology. The company enjoys geographical diversity complemented by its market leadership in various international markets. First Solar incurs lowest average solar module manufacturing costs, which allows it in offering solar modules at competitive prices. The company has long-term solar module supply contracts, which brings it predictable net sales and minimize customer demand risk while pursuing rapid expansion plans. However, decreasing profit margins is a key cause for concern to the company. The growing global solar PV market, capacity expansion in the US and Germany could drive the demand for the company’s products. Changing solar supportive policies, growing competition and volatile macroeconomics could pose several challenges to the company’s profitable growth.

First Solar, Inc. - Strengths

Strength - Long-Term Supply Contracts

Strong customer base coupled with long relationships will guarantee good fortune for First Solar. The key customers of the company include solar power system project developers, systems integrators and operators of renewable energy projects located across the US and Europe. As of the fiscal year ended December 2010, the company has long-term solar module supply contracts with 14 European project developers, systems integrators, and operators. These supply contracts will expire through 2012 and will allow the company to earn predictable revenue of approximately $2.4 billion in sales from 2011 to 2012. Some of the key customers of First Solar in 2010 include EDF EN Development, Juwi Solar GmbH, and Phoenix Solar AG, each of which accounted between 10% and 20% of its total revenue of its components segment. The demand from its customers is the key driving force for the company to expand its production lines.

Strength - Technological Expertise: Low Cost Production

First Solar leverages its technological expertise to continue to drive low-cost per watt generation that carved a niche for itself. The company’s proprietary thin film semiconductor process based on CdTe technology enables it to reduce its average solar module manufacturing costs to among the lowest in the world. For the fiscal year ended December 2010, the company’s average manufacturing costs were $0.77 per watt as compared to $0.87 per watt in 2009; $1.08 per watt in 2008; and $1.23 per watt in 2007. This is significantly less than the cost of traditional crystalline silicon solar module manufacturers. Additionally, the company plans to reduce its manufacturing costs per watt by expanding its production and improving its technology and manufacturing processes. In the third quarter of 2011, the company’s technologies and processes produced a world-record 17.3% efficient cadmium telluride solar cell in July, resulting in average module conversion efficiency of 12.4% from its best-performing production lines. Recently, the company set a new world record for cadmium-telluride (CdTe) photovoltaic (PV) solar module efficiency, achieving 14.4% total area efficiency. The low production cost combined with excellent operational efficiency offers the company a strong competitive advantage.

Strength - Leading Solar Module Manufacturer

A dominant position in its existing business helped First Solar to achieve profitable growth and successful expansion of its portfolio. The company is the largest solar module manufacturer in terms of market capitalization, which has been consistently increasing its production. It manufactured more than 66 million solar modules that generate over 5 GW of power, capable of generating enough clean electricity to power approximately 2.5 million homes. First Solar is one of the world's largest solar module manufacturers, which operated 36 production lines on three continents.. According to in-house data, the company commanded 50.44% solar thin film module market share in 2010. In 2010, the company’s total shipments accounted to about 1.4 GW. It is the only solar module manufacturer to offer a pre-funded module collection and recycling program. The company sells photovoltaic modules to various global markets, especially Germany, Italy, France, Spain and the US. The company is employing strategies to increase its manufacturing capacity to 46 production lines by the end of 2012 with an annual global manufacturing capacity of approximately 2.5 GW. The company was ranked number one by Forbes Magazine as the fastest growing technology company in 2010 and 2009. First Solar's compound annual growth rate (CAGR) for revenue was 108.76% during 2006-2010. This was above the Energy Equipment & Services sector average* of 23.24%. Such a strong position in market enhances the company’s brand image and helps in securing major growth opportunities.

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First Solar, Inc. - Weaknesses

Weakness - Deteriorating Profitability

First Solar reported a significant decline in its profit margins for the fiscal year ended December 2010, affecting its shareholders confidence. The company’s operating margin declined to 29.21% in 2010 from 32.89% in 2009. Its return on equity to 19.22% in 2010 declined from 24.13% in 2009. The company’s return on capital employed was 19.15% in 2010 as against 23.00% in 2009. The company reported a decline in its return on assets and return on fixed assets to 15.16% and 26.78% in 2010 from 19.111% and 34.01% in 2009, respectively. In addition, the company’s return on working capital declined to 67.17% in 2010 from 71.06% in 2009. Deteriorating profitability ratios indicate that the company is not in a position to deliver the value as expected by its shareholders.

Weakness - Narrow Presence in the US Market

First Solar is a US-based global supplier of solar PV products. The company is active in various geographical regions, including the Americas, Europe and Asia Pacific but generates major chunk of its revenue from Europe. For the fiscal year ended December 2010, the company generated $1,177.98 of its total revenue from a single geographical market, Germany, while only $333.8m from the US market. This reflects that First Solar has a limited presence in US as against Europe. The US solar market is very attractive with about 250 of the 1,000 largest utilities providing 37% of the US residential electricity sales. Amid solar feed-in-tariff (FiT) cuts in Europe, such a lower presence in the US where subsidies, incentives and other benefits are higher would submerse good growth opportunities to the company, which provides an edge to its rivals having strong presence in the US.

First Solar, Inc. - Opportunities

Opportunity - Capacity Expansions

First Solar capacity expansions enable it to reach its customer’s requirements and offers huge growth opportunities. In 2011, the company inaugurated its second manufacturing plant in Frankfurt (Oder) and also celebrated the production of the new plant's one millionth module. This production plant covering an area of approximately 50,000 m2 manufactures 250 MW a year of solar modules. This expansion doubles First Solar's annual production capacity in Germany to 500 MW. With this capacity expansion in Germany, the company operates Europe's largest and most modern production site for advanced, thin-film solar modules. This capacity expansion strengthens its top position contribute to further establishing Germany as one of the key players in protecting the climate and achieving a balance between ecology and economy.

Opportunity - German Solar Energy Market

Although the German solar PV market is expected to lose its share to other emerging markets due to changing supportive policies, the country still will remain central to the development of PV market for the next 2-3 years. The cumulative solar PV installed capacity in Germany increased to 17,370 MW in 2010 from 195 MW in 2001, making the country the largest solar PV market in the world. The solar PV installed capacity increased at a CAGR of 64.7% during the period 2001-2010. In 2010, the country enjoyed a share of around 42% in the global solar PV installed capacity. German PV market is foreseeing new developments in the near future as several companies are focusing on reduction of their costs through technological advancements and new joint ventures to achieve grid parity during 2013-2015. The cumulative installed capacity is anticipated to reach 60,135 MW by the year 2020 growing at a CAGR of 13.2% during 2010-2020. The growing importance of solar energy sector in Germany would increase the demand for the company’s products and boost its sales.

Opportunity - Expansion in the US Solar Market

First Solar could focus on strengthening its presence in the US to offset reliance on the German solar market for revenue generation. In the first quarter of 2011, the US PV market recorded good results with an installed capacity of 268 MW, reflecting a growth of around 66% over that in Q1 2010. The growth in Q1 2011 is majorly driven by contribution from non-residential installations besides the decline in the prices of solar components. At the same time, the residential solar PV market registered a steady growth quarter over- quarter from the beginning of 2010. The key factors driving the residential market growth include various state-level policy initiatives and also innovative offerings such as solar equipment leasing and solar roof-top leasing programs. In terms of high growth markets, California and New Jersey have booked the highest installed capacity with around 112 MW and 42 MW, respectively. The trend is expected to continue and the US grid connected PV market is on track to reach around 1,980 MW of annual installation by the end of 2011.

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In the recent past, the company made various strategic acquisitions in the US and successfully expanded its reach. In January 2011, the company acquired RayTracker, Inc., a tracking technology and photovoltaic (PV) balance-of-systems firm. In 2010, First Solar acquired NextLight Renewable Power, LLC, a solar development firm formed by the inaugural fund of Energy Capital Partners, which is a private equity firm focused on investing in North America`s energy infrastructure. In 2009, the company acquired OptiSolar's project development business that helps the company to penetrate in the US solar photovoltaic utility market. This acquisition enabled the company to construct solar power plants and sell them to regulated utilities, diversified energy companies and other independent power producers.

Opportunity - Growing Solar PV Industry

First Solar could take advantage of the rapidly growing solar PV market. The growth in solar PV market is augmented by various effective supporting policies and sharp cost reduction in the recent past. According to in-house data, the global solar PV installed capacity increased to 40,727 MW in 2010 from 1,761 MW in 2001, at a CAGR of 41.8%. The cumulative installed solar PV capacity increased by almost two times in the last couple of years. In 2010, the newly added capacity to the total installed capacity amounted to 17,000 MW. In 2010, Europe led the solar PV market with a total cumulative installed capacity of 76%, followed by the Asia-Pacific region with 16.0%. In 2011, according to the company estimates, the market share of Europe is expected to be overshadowed by newly emerging markets such as Canada, India and China. India and China have already announced their ambitious PV targets and are expected to be the next hot beds for solar PV investments. It is expected that 21.5 GW of new capacity will be added in 2011. Against such a backdrop of favorable policy frameworks, the global solar PV installed capacity will continue to grow. The global cumulative installed capacity for solar PV is expected to reach 331,892 MW by 2020, growing at a CAGR of 23.3% during the period 2010-2020.

First Solar, Inc. - Threats

Threat - Procurement of Raw Materials

First Solar uses approximately 20 types of raw materials and components to construct a complete solar module. Out of that 20, nine raw materials; cadmium telluride, front glass coated with thermal conductive oxide, cadmium sulphide, photo resist laminate, tempered black glass, cord plate/cord plate cap, lead wire and solar connectors are critical for the production. The company gets supply of these raw materials from numerous suppliers on purchase order basis and does not enter into any long-term contracts. It has maintained good relationships with its suppliers but with demand rising and supply declining; the company could face shortage for raw materials. Since the company’s supplies are on purchase order basis and it does not enter into any long-term contracts, the company does not have stock required at its end. This could lead to delay in its ongoing projects and pose a threat to the company and its performance in the long run.

Threat - Volatile Macroeconomics

First Solar could face several challenges due to the global economic slowdown as it affects investments of its global clientele. According to The World Bank, the overall global GDP is expected to be 3.3% in 2011, before picking up to 3.5% in 2012, well below the 8.1% growth rate in 2007. Economic growth slowed sharply in Europe, the US and Japan. Though economic recovery continued in the first half of 2010 and expanded at an annual rate of approximately 5.25%, it was affected by the turmoil in sovereign debt markets during the second quarter of 2010. Countries such as Greece and Portugal are plagued by economic constraints and the debt crisis is likely to spread to Spain as well in 2011. Portugal, weighed down by heavy cuts in budget spending and higher taxes, will fall back into recession, contracting 1% in 2011. In France, the economy grew just 0.3%, half the forecast increase and the same level as in July- September and Italian growth was also lower than expected, at just 0.1%. The current uncertainties in economic conditions influence international capital market and make it difficult for the company to plan budgets and forecasting.

Threat - Intense Competitive Landscape

The solar PV market is competitive and rapidly evolving. Attracted by various subsidies being provided by governments to promote renewable energy, many new players are entering this sector. In addition, big industry players in traditional energy business are diversifying into renewable energy. The company faces direct competition from various domestic and international players. A few big players in the solar PV equipment industry include Suntech, JA Solar, Yingli Solar, Trina Solar, Motech, Qcells, Gintech, Sharp, and Canadian Solar, among others. In the thin-films market, the company competes with Sharp, United Solar, Trony, NexPower, and Solibro, among others. Some of the company’s competitors have access to greater financial, technical, human, marketing, purchasing or other resources, which would enable them react more quickly to new or emerging technologies or changes in customer requirements. Failure to sustain competition could adversely affect the company’s profitability and share in the market.

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First Solar’s business could also be affected by the increasing popularity of other renewable generation technologies. The market for fuel cell is rapidly evolving and new technologies are being developed, using fuel cells to produce lower carbon emissions and generate high levels of electricity. The hydrogen fuel cell based on natural gas is becoming economically attractive in small-scale power generation applications and transportation sectors. It is projected that the market for these fuel cells would emerge as a new source of distributed power after 2020. This kind of technology, which typically has a lower upfront cost, is currently gaining preference that may lower the demand for the company’s products and services. Besides, continuous research and development in these technologies could result in novel and efficient technologies that could adversely affect the company’s business.

Threat - Cuts in Solar Feed-in-Tariff (FiT)

Change in government supportive policies encouraging solar power in the company’s markets would affect its sales. Solar power remains one of the costliest sources of power that requires huge investments. Most of the solar power companies depend on government support and subsidies. To promote the use of solar energy, the federal, state and local governmental bodies in several countries such as the Germany, Italy, Japan and the US have been providing subsidies in the form of cost reduction, tax incentives and other incentives to end users, distributors, systems integrators, other resellers and manufacturers of solar power products. In the future, these subsidies and incentives might be reduced or eliminated. For instance, the German government reduced FITs by 13% in the third quarter of 2010 followed by another 13% cut in the first quarter of 2011. In January 2011, the president of the German Solar Industry Association and the minister of the environment announced a joint proposal for new cuts in solar FITs aimed to be scheduled for 2012. Every additional GW of installations will reduce tariffs by an additional 3ppt – up to a maximum of 15%. Following the FiT cut in Germany, solar installation demand is expected to fall by 15% y-o-y and materializes across the solar value chain, which poses a significant threat to the company’s business. In Italy, there were tariff cuts during Q1 2011 with the implementation of the Third Conto Energia, however replaced to normalcy by the Fourth Conto Energia. In Australia, the New South Wales government ceased its Solar Bonus Scheme. Such changes in the company’s target markets and new markets would limit its ability to pursue expansion plans. NOTE: * Sector average represents top companies within the specified sector The above strategic analysis is based on in-house research and reflects the publishers opinion only

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First Solar, Inc. - Key Competitors

First Solar, Inc., Key Competitors

Name Headquarters Revenue (US$ m)

Fuji Electric Systems Co.,Ltd. Japan

JA Solar Holdings Co., Ltd. China 1,735

Mitsubishi Heavy Industries, Ltd. Japan 36,415

Motech Industries, Inc. Taiwan 1,234

Q-Cells SE Germany 1,906

Sharp Corporation Japan 37,898

Solibro GmbH Germany

Suntech Power Holdings Co., Ltd. China 3,147

Trina Solar Limited China 2,048

Trony Solar Corporation China 281

United Solar Ovonic LLC United States

Yingli Green Energy Holding Company Limited China 2,165 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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Section 3 – Company Financial Ratios

Financial Ratios - Capital Market Ratios First Solar, Inc., Ratios based on current share price

Key Ratios 30-Mar-2012

P/E (Price/Earnings) Ratio 4.41

Enterprise Value/Sales 0.82

Enterprise Value/Total Assets 0.39 Note: Above ratios are based on share price as of 30-Mar-2012, the above ratios are absolute numbers

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

Financial Ratios - Annual Ratios

First Solar, Inc., Annual Ratios

Key Ratios Unit/Currency 2007 2008 2009 2010 2011

Equity Ratios

EPS (Earnings per Share) USD 2.03 4.24 7.53 7.68 -0.46

Book Value per Share USD 13.96 18.54 31.13 40.25 42.14

Cash Value per Share USD 5.14 8.78 0.01

Profitability Ratios

Gross Margin % 49.88 54.54 50.56 46.22 35.13

Operating Margin % 27.22 35.17 32.89 29.21 -2.48

Net Profit Margin % 31.42 27.95 30.98 25.91 -1.43

Profit Markup % 87.05 107.58 99.53 83.36

PBT Margin (Profit Before Tax) % 30.95 37.21 33.22 29.73 -1.94

Return on Equity % 14.43 23.02 24.13 19.22 -1.08

Return on Capital Employed % 11.53 25.30 23 19.15 -1.43

Return on Assets % 11.55 16.47 19.11 15.16 -0.68

Return on Fixed Assets % 24.12 42.27 34.01 26.79 -2.17

Return on Working Capital % 22.08 63.01 71.06 67.18 -4.19

Growth Ratios

Sales Growth % 273.39 147.29 65.79 24.07 7.91

Operating Income Growth % 4,781.89 219.53 55.04 10.20 -109.17

EBITDA Growth % 1,598.93 197.36 47.98 11.04 -107.05

Net Income Growth % 3,884.75 119.97 83.77 3.76 -105.95

EPS Growth % 3,446.24 109.45 82.78 -1.23 -25.81

Working Capital Growth % 84.64 11.98 37.48 16.57 47.07

Cost Ratios

Operating Costs (% of Sales) % 72.78 64.83 67.11 70.79 102.48

Administration Costs (% of Sales) % 16.32 13.96 12.11 12.55 14.91

Liquidity Ratios

Current Ratio Absolute 4.43 2.82 3.42 3.37 2.68

Quick Ratio Absolute 4.20 2.50 3.03 2.95 2.14

Cash Ratio Absolute 3.67 2.08 1.99 1.99 0.69

Leverage Ratios

Debt to Equity Ratio % 9.86 13.12 6.60 6.87 18.21

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Net Debt to Equity % -26.99 -34.22 16.74 28.32 34.11

Debt to Capital Ratio % 9.09 11.45 5.92 6.07 13.81

Efficiency Ratios

Asset Turnover Absolute 0.37 0.59 0.62 0.59 0.48

Fixed Asset Turnover Absolute 1.17 1.48 2.09 1.79 1.52

Inventory Turnover Absolute 6.28 4.66 6.69 6.88 3.39

Current Asset Turnover Absolute 0.63 1.16 1.53 1.62 1.06

Capital Employed Turnover Absolute 0.46 0.82 0.78 0.74 0.76

Working Capital Turnover Absolute 0.81 1.79 2.16 2.30 1.69

Revenue per Employee USD 395,172

Net Income per Employee USD -5,642

Capex to Sales % 48.09 36.85 13.55 22.97 26.46

R&D to Sales % 3 2.69 3.78 3.70 5.08 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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Performance Chart

First Solar, Inc., Performance Chart (2007 - 2011)

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

Financial Performance The company reported revenues of (U.S. Dollars) USD 2,766.21 million during the fiscal year ended December 2011, an increase of 7.91% over 2010. The operating loss of the company was USD 68.66 million during the fiscal year 2011, as against an operating income of USD 748.90 million during 2010. The net loss of the company was USD 39.49 million during the fiscal year 2011, as against a net profit of USD 664.20 million during 2010.

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Financial Ratios - Interim Ratios

First Solar, Inc., Interim Ratios

Key Ratios Unit/Currency Dec-2010 Mar-2011 Jun-2011 Sep-2011 Dec-2011

Interim EPS (Earnings per Share) USD 1.80 1.33 0.70 2.25 -4.78

Book Value per Share USD 40.25 41.43 42.66 46.61 42.14

Gross Margin % 48.66 45.77 36.56 37.70 20.92

Operating Margin % 27.16 22.81 12.11 22.15 -73.49

Net Profit Margin % 25.57 20.44 11.48 19.54 -62.56

Profit Markup % 94.78 84.41 57.64 60.51 26.45

PBT Margin (Profit Before Tax) % 28.43 23.45 13.51 22.15 -72.91

Operating Costs (% of Sales) % 72.84 77.19 87.89 77.85 173.49

Administration Costs (% of Sales) % 14.97 15.34 16.31 11.21 19.07

Current Ratio Absolute 3.37 2.97 3.10 3.25 2.68

Quick Ratio Absolute 2.95 2.36 2.50 2.62 2.14

Debt to Equity Ratio % 6.87 3.69 9.80 15.11 18.21

Net Debt to Equity % 28.32 12.45 18.99 31.85 34.11

Debt to Capital Ratio % 6.07 3.32 8.30 12.22 13.81 Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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Financial Ratios - Ratio Charts

First Solar, Inc., Ratio Charts

EPS Operating Margin

Return on Equity Return on Assets

Debt to Equity Ratio Current Ratio

Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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Section 4 – Company’s Power Financial Deals and Alliances

First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012 First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012

3

2 2

6

7

14

4

427.88 415.00

30.00

565.53

697.00

903.08

0

5

10

15

No.

of D

eals

0

200

400

600

800

1000

Deal V

alue (US

$ million)

2006 2007 2008 2009 2010 2011 YTD 2012

No. of Deals Deal Value (US$ million)

Note: Deals include all announced power energy deals from 2005 onwards, deal values included wherever disclosed. Above data is extracted from GlobalData’s Deals and Alliances Profile.

GlobalData

First Solar, Inc. reported four power energy deals in YTD 2012. The company’s deal volume increased from seven power energy deals in 2010 to 14 power energy deals in 2011.

First Solar, Inc., Power, Deals By Year, 2006 to YTD 2012

Year No. of Deals Deal Value (US$ million)

2006 3 427.88

2007 2 415.00

2008 2 30.00

2009 6 565.53

2010 7 697.00

2011 14 903.08

YTD 2012 4 NA

Note: Deals include all announced power energy deals from 2005 onwards, deal values included wherever disclosed. Above data is extracted from GlobalData’s Deals and Alliances Profile.

GlobalData

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First Solar, Inc., Power, Deals By Type, 2006 to YTD 2012

First Solar, Inc., Power, Deals by Type, 2006 to YTD 2012

Note: Deals include all announced deals from 2005 onwards, deal values included wherever disclosed. Above data is extracted from GlobalData’s Deals and Alliances Profile.

GlobalData

First Solar, Inc.’s deals activity has been reportedly focusing on asset finance with 26 power deals during the period 2006 to YTD 2012. First Solar, Inc., Power, Deals By Type, 2006 to YTD 2012

Deal Type No. of Deals Deal Value (US$ million)

Asset Finance 26 1,069.21

Equity Offerings 3 733.88

Acquisition 3 332.00

Partnerships 2 NA

Venture Financing 1 30.00

Asset Purchases 1 399.40

Debt Offerings 1 74.00

Note: Deals include all announced power energy deals from 2005 onwards, deal values included wherever disclosed. Above data is extracted from GlobalData’s Deals and Alliances Profile.

GlobalData

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First Solar, Inc., Recent Deals Summary

First Solar, Inc., Recent Deals Summary

Deal Date Deal Status Deal Type Acquirer (s) / Investor (s)

/Surviving Entity

Target / Issuer / Partner (s)

Vendor Deal Value (US $ million)

22-Mar-2012 Completed Asset Finance Enbridge, Inc. First Solar, Inc. 14-Mar-2012 Completed Asset Finance First Solar, Inc. Undisclosed

Company

12-Mar-2012 Completed Asset Finance NextEra Energy Resources, LLC

First Solar, Inc.

31-Jan-2012 Completed Asset Finance MidAmerican Energy Holdings Company

First Solar, Inc.

30-Sep-2011 Completed Asset Finance Exelon Corporation First Solar, Inc. 75.00 30-Sep-2011 Completed Asset Finance GE Energy Financial

Services, Inc., NextEra Energy Resources, LLC

First Solar, Inc.

15-Sep-2011 Completed Asset Finance Enbridge Inc., First Solar, Inc.

92.17

05-Aug-2011 Completed Asset Finance NRG Energy, Inc. First Solar, Inc. 25-Jul-2011 Completed Asset Finance KGAL GmbH & Co. KG First Solar, Inc. 30-Jun-2011 Announced Asset Finance First Solar, Inc. The Royal Bank of

Scotland Group PLC

Note: Deals include recent 10 deals in the past 24 months. Above data is extracted from GlobalData’s Deals and Alliances Profile.

GlobalData

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Section 5 – Company’s Recent Developments

First Solar, Inc., Recent Developments Mar 15, 2012: BW EUROPE To Distribute First Solar Thin-film PV Modules In Italy

First Solar, Inc. and BW EUROPE S.p.A. concluded a distribution arrangement under which BW EUROPE will sell First Solar's advanced, thin-film solar modules in Italy. Enrico Tonduti, president of BW EUROPE, said, "We are pleased to be able to offer our customers products known for high yield and reliability and from an international market leader like First Solar. First Solar modules produce higher yields than competing modules in field performance with an attractive look that appeals to our most discerning customers." Alfredo di Stefano, Italy account manager for First Solar, said, "BW EUROPE is a strong distribution partner for First Solar in Italy thanks to its experience with thin-film PV and its reputation for serving aesthetically demanding customers. This collaboration presents a good opportunity for both companies to serve the market for clean, sustainable solar power in Italy."

Mar 14, 2012: First Solar Announces 20 MW Maryland Solar Project

First Solar, Inc. announced its 100% stake in Maryland Solar, a 20 MW (AC) PV solar power project in Hagerstown, Maryland. The project, which has a contract to sell electricity and renewable energy credits to FirstEnergy Solutions Corp., is expected to start construction in second quarter of 2012 and be completed in fourth quarter of 2012. The solar power project will use First Solar's advanced thin film PV modules to generate enough clean, renewable energy to power about 2,700 average Maryland homes, displacing about 23,000 metric tons of CO2 annually. Frank De Rosa, senior vice president for business development of Americas of First Solar, said, "First Solar is pleased to continue its work in Maryland to help the state meet its renewable energy goals. We are excited about moving forward on this project, which is expected to provide 125 construction jobs."

Mar 14, 2012: First Solar Appoints James Hughes As Chief Commercial Officer

First Solar, Inc. appointed James Hughes as chief commercial officer. In this newly created role designed to accelerate First Solar's entry into emerging markets, Hughes will have comprehensive leadership responsibility for global business development and sales; project development; engineering, procurement and construction (EPC); product management and international public affairs and communications. Reporting to Hughes will be Jim Brown, executive vice president of global business developmentMaja Wessels, executive vice president of global public affairsJim Lamon, senior vice president of EPC and operations and maintenanceTom Kuster, vice president of product management and customer serviceand Ted Meyer, vice president of global corporate communications. Mike Ahearn, chairman and interim CEO of First Solar, said, "Jim is extraordinarily prepared to help First Solar open new markets and reach revenue goals. We will benefit greatly from his diverse and extensive global and operational experience in the energy sector." Most recently, Hughes was CEO and director of AEI, which owned and operated power distribution, power generation, natural gas transportation and services, and natural gas distribution businesses in emerging markets worldwide. Previously, he was president and COO for Prisma Energy, which was formed out of former Enron interests in international electric and natural gas utilities. Hughes earned a juris doctor from the University of Texas at Austin School of Law, a Certificate of Completion in international business law from Queen Mary's College, University of London, and a bachelor's degree in business administration from Southern Methodist University.

Mar 12, 2012: First Solar To Build 26 MW Avra Valley PV Solar Project For NRG Energy

NRG Energy, Inc. and First Solar, Inc. announced an agreement to construct the 26 MW (AC) Avra Valley solar project near Tucson, Arizona. As part of the agreement, First Solar will develop the plant for NRG Energy. The project will utilize First Solar’s

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thin-film photovoltaic technology, mounted on the company’s single-axis tracker system, which rotates the solar modules to follow the sun throughout the day. Electricity from the Avra Valley solar project will be sold to Tucson Electric Power Company under a 20-year power purchase agreement. Construction on the project, which is expected to begin this month, will create an estimated 200 jobs. First Solar expects to complete Avra Valley by the end of 2012. James Kelly, director of development for NRG Solar LLC, said, “NRG and First Solar have built a very strong working relationship, starting with our first 21 megawatt project in Blythe, California, to our most recently completed 20 megawatt Roadrunner solar generating station in New Mexico. We look forward to working with First Solar on the Avra Valley project that, when completed, will help Arizona meet its renewable energy goals.”

Mar 12, 2012: First Solar Begins Construction Of Solar PV System At Frank Lloyd Wright Foundation's Taliesin West Campus In Arizona

First Solar, Inc. broke ground on construction of a 250kW (AC) solar PV system at the Frank Lloyd Wright Foundation's Taliesin West campus. The groundbreaking marked the launch of Energizing Taliesin West at Frank Lloyd Wright's Taliesin West in Scottsdale, Arizona. The project is being run in conjunction with Big Green Zero, LLC. Energizing Taliesin West is a groundbreaking effort to transform the entire National Historic Landmark Taliesin West site into a 'net zero' energy customer, producing as much energy as it consumes annually, while maintaining the historic and architectural integrity of the site. The comprehensive endeavor will focus on the twin goals of maximizing Taliesin West’s energy efficiency (through improved lighting, insulation, climate controls and other techniques) while also generating clean renewable energy on-site.

Mar 06, 2012: SMA America’s Inverters To Power 290 MW Agua Caliente Solar Project In Arizona

SMA America, LLC announced that its inverters will power the 290 MW Agua Caliente solar project in Yuma county, near Dateland, Arizona. Construction on the project is under way, with completion expected in 2014. Built by First Solar, Inc., Agua Caliente will generate enough clean solar energy to serve the needs of about 100,000 average homes per year when fully operational. In addition to First Solar’s advanced thin film PV modules, the 2,400-acre plant will feature more than 400 SMA Sunny Central 720CP inverters. Jurgen Krehnke, president and general manager of SMA America, said, “The challenging environmental conditions and high quality expectations of our partners made the Sunny Central 720CP an ideal choice for this groundbreaking solar project. We are excited to witness the commissioning and start of clean power production.” Sunny Central CP inverters with peak efficiencies more than 98% are specially designed for use in large, open-field PV power plants such as Agua Caliente. The Sunny Central CP series of inverters is suitable for the Arizona sun thanks to SMA’s OptiCool temperature management solution, which allows it to operate at full nominal power with ambient temperatures up to 50 C. In continuous operation, the Sunny Central 720CP can feed 792kVA to the grid at ambient temperatures of up to 25 C — 110% rated nominal power, resulting in increased power production. NRG Energy acquired Agua Caliente in August 2011. First Solar will continue to build, operate and maintain the project. Power generated by the installation will be sold to the Pacific Gas and Electric Company.

Feb 28, 2012: First Solar To Delay Production Of Solar Panels At Its Mesa Facility

First Solar Inc. plans to delay production of solar PV panels at its Mesa facility, which is currently under construction, owing to oversupply of solar panels in the US market, bizjournals.com reported. However, the company will complete the plant in May 2012 but it will not produce panels by early 2013. The company is spending around $300m for building the PV plant.

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Mark Widmar, CFO at First Solar, said, "As we further evaluate market demand and our capacity requirements, we have now decided to put Mesa on hold until demand justifies additional capacity. First Solar will retain ownership of the building associated with the site, and we expect to relocate various engineering and work groups there."

Feb 28, 2012: First Solar Reports Revenue Of $2.8 Billion In 2011

First Solar, Inc. (First Solar) reported net sales of $2.8 billion for the year 2011, compared with the net sales of $2.6 billion in the previous year. It also reported a net loss of $39.5m, or $0.46 loss per diluted share, for 2011, compared with the net income of $664.2m, or $7.68 per diluted share, in the previous year. Fourth quarter 2011 net sales were $660m, a decrease of $345m from the third quarter of 2011, primarily due to the timing of revenue recognition in the company's systems business and lower volume for module-only sales. Relative to the fourth quarter of 2010, quarterly net sales increased $50m from $610m. Fourth quarter net loss per fully diluted share was $4.78, compared to a net income per fully diluted share of $2.25 in the third quarter of 2011 and $1.80 in the fourth quarter of 2010. The fourth quarter of 2011 was impacted by pre-tax charges of $393m (reducing EPS by $3.90) associated with a non-cash goodwill impairment for the company's components business, $164m (reducing EPS by $1.67) related to warranty and cost in excess of normal warranty expense, and $60m (reducing EPS by $0.43) related to restructuring activities, as announced in December 2011. Excluding these items, the non-GAAP net income per fully diluted share in the fourth quarter 2011 was $1.26. Net loss per share in 2011 was $0.46, compared to a net income per fully diluted share of $7.68 in 2010. Excluding the fourth-quarter 2011 charges listed above as well as $46.9m of warranty and cost in excess of normal warranty expensed earlier this year, non-GAAP net income per fully diluted share was $6.01 for 2011. Cash and Marketable Securities at the end of the fourth quarter were $788m, down slightly from $795m at the end of the third quarter. First Solar achieved several milestones in 2011: • Announced or completed the sale of four of the world's largest solar projects under construction — Agua Caliente, Desert Sunlight, Antelope Valley Solar Ranch One, and Topaz. In January 2012, First Solar energized the first 30 MW block of the Agua Caliente project. • Set a world record for the efficiency of solar cells and modules using cadmium telluride (CdTe) semiconductor technology, achieving 17.3% and 13.4%, respectively, as certified by US Department of Energy's National Renewable Energy Labs (NREL). In January 2012, First Solar eclipsed its own record, reaching 14.4% module efficiency using commercial-scale equipment and materials. • Increased average module efficiency to 12.2%, up 0.6 percentage points from the fourth quarter of 2010. • Reduced average module manufacturing cost to $0.73 per watt, down $0.02 from the fourth quarter of 2010. • Added approximately 650 MW AC of new projects to the company's project pipeline, growing the company's pipeline to 2.7 GW AC. • Exceeded 5 GW of cumulative production, enough to provide clean electricity for approximately 2.5 million homes and displace 3.3 million metric tons of CO2 annually. First Solar is updating 2012 guidance as follows: • Reducing net sales from $3.7-$4 billion to $3.5-$3.8 billion • Reiterating earnings per fully diluted share of $3.75 to $4.25, excluding any impairment and restructuring charges that the company may be taking in 2012and • Reducing operating cash flow from $900m-$1.1 billion to $800m-$900m.

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Mike Ahearn, chairman and interim CEO of First Solar, said, "First Solar's performance in the quarter was impacted by an aggressive competitive environment, an uncertain regulatory environment, warranty-related charges, and restructuring costs incurred to help position our business for the future. Despite these headwinds, we continue to make strides reducing manufacturing costs, increasing module efficiency, and successfully building out our captive project pipeline. These improvements, combined with our recent restructuring and strategic repositioning, enhance our competitive position in a very challenging environment."

Feb 27, 2012: Frank Lloyd Wright Foundation Announces Energizing Taliesin West Initiative

The Frank Lloyd Wright Foundation, in conjunction with Big Green Zero, announced the launch of Energizing Taliesin West, an initiative integrating sustainable energy at Frank Lloyd Wright's Taliesin West in Scottsdale, Arizona. To kick off the initiative, the Frank Lloyd Wright Foundation partnered with First Solar, Inc. to install a 250 kW (AC) solar photovoltaic (PV) array at Taliesin West. Energizing Taliesin West is an effort to transform the entire National Historic Landmark Taliesin West site into a 'net zero' energy customer, producing as much energy as it consumes annually, while maintaining the historic and architectural integrity of the site. The comprehensive endeavor will focus on the twin goals of maximizing Taliesin West's energy efficiency (through improved lighting, insulation, climate controls and other techniques) while also generating clean renewable energy on-site. The panels will not be visible from anywhere in the historic core of Taliesin West, nor will tour guests be able to see the panels from any location during their entire tour experience — maintaining the historic integrity of Frank Lloyd Wright's desert home and studio. However, intentionally, guests will be able to see the impressive solar array from the road before they arrive at Taliesin West to take their tour — celebrating the Frank Lloyd Wright's commitment to sustainable energy. Every year, more than 100,000 tourists come to Scottsdale to experience Taliesin West, which also houses the Frank Lloyd Wright School of Architecture. Sean Malone, CEO of the Frank Lloyd Wright, said, “I couldn't be more excited about this partnership with Big Green Zero and First Solar. This is an extraordinary opportunitythe goal of making a world-famous National Historic Landmark site entirely self-sustaining is unprecedented. And we're going to make it happen. The endeavor will have a broad and deep impact for sustainability efforts throughout America and across the globe. And, importantly, the initiative is entirely consistent with the values of Taliesin West: innovation, an evolving site, embracing new technology, celebrating nature and strategic use of resources.” The Energizing Taliesin West program was initiated after a recent energy assessment by Big Green Zero. The assessment indicated that Taliesin West's energy bills could be reduced by as much as 51% through simple conservation methods. In addition, the property has potential to achieve a 'Big Green Zero' by producing as much renewable energy as it uses each year.

Feb 23, 2012: Sonnedix And First Solar Announce Completion Of 7.5 MW Nakhon Ratchasima Solar Farm

Sonnedix Group and First Solar, Inc. announced the completion of the Nakhon Ratchasima solar farm in Khorat region, northeastern Thailand. The 7.5 MW (DC) solar power plant in Thailand-was built by Sonnedix with support of Assyce Fotovoltaica and Ch. Karnchang Group using around 95,000 of First Solar's thin-film solar modules. Franck Constant, chairman for Sonnedix, said, "As a global solar independent power producer whose management has an extensive track record of more than fifteen years in Asia. We are confident that this project, our first to become operational in Thailand, will serve as a strong base for our strategy of developing and building utility-size world-class solar farms and large rooftop solar power plants. It is our view that solar PV should be a mainstream power source in Thailand." Jack Curtis, First Solar vice president, sales and business development, said, "The completion of the Nakhon Ratchasima solar farm is a considerable achievement and supports our commitment, shared with the Thai government, of reducing fossil fuel dependence and greenhouse gas emissions. We believe that this project and others like it in Thailand will greatly benefit from our low-cost, environmentally leading technology, which has the smallest carbon footprint of any current PV technology." Kevin Berkemeyer, First Solar senior manager for business development, said, "We are delighted to have partnered with the Sonnedix Group on this project in Thailand and to be working with Thai authorities as they increasingly adopt utility-scale PV solar as a clean, affordable source of renewable energy. We look forward to helping Thailand meet its energy needs and enhancing its energy security."

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Covering around 20 hectares, the Nakhon Ratchasima solar farm can supply enough electricity to meet the annual needs of about 5,100 average Thai homes. It is expected to generate more than 10,500 MWh of clean, green electricity per year, offsetting carbon dioxide emissions of more than 6,500 tons a year. The modules in the project are covered by First Solar's prefunded module and recycling program.

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Section 6 – Appendix The data and analysis within this report is driven by GlobalData. GlobalData gives you key information to drive sales, investment and deal making activity in your business. Our coverage includes 200,000 + reports on 185,000+ companies (including 150,000+ private) across 200+ countries and 29 industries. The key industries include Alternative Energy, Oil & Gas, Clean Technology, Technology and Telecommunication, Pharmaceutical and Healthcare, Power, Financial Services, Chemical and Metal & Mining.

Methodology

GlobalData company reports are based on a core set of research techniques which ensure the best possible level of quality and accuracy of data. The key sources used include: • Company Websites • Company Annual Reports • SEC Filings • Press Releases • Proprietary Databases Currency Codes

Currency Code Currency

USD U.S. Dollars GlobalData

Ratio Definitions

Capital Market Ratios

Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.

Price/Earnings Ratio (P/E)

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report. Calculation: Price per Share / Earnings per Share

Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization)

Enterprise Value/Sales

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales

Enterprise Value/Operating Profit

Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating

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Income Enterprise Value/Total Assets

Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report. Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets

Dividend Yield

Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Calculation: Annual Dividend per Share / Price per Share

GlobalData

Equity Ratios

These ratios are based on per share value.

Earnings per Share (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. Calculation: Net Income / Weighted Average Shares

Dividend per Share

Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Dividend Cover

Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders. Calculation: Earnings per share / Dividend per share

Book Value per Share

Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares

Cash Value per Share

Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding. Calculation: Cash & equivalents / Outstanding Shares

GlobalData

Profitability Ratios

Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.

Gross Margin

Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs. Calculation: {(Revenue-Cost of revenue) / Revenue}*100

Operating Margin

Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Calculation: (Operating Income / Revenues) *100

Net Profit Margin

Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits. Calculation: (Net Profit / Revenues) *100

Profit Markup

Profit Markup measures the company's gross profitability, as compared to the cost of revenue. Calculation: Gross Income / Cost of Revenue

PBIT Margin (Profit Before Interest & Tax)

Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation. Calculation: {(Net Profit+Interest+Tax) / Revenue} *100

PBT Margin (Profit Profit Before Tax Margin measures the pre-tax income over revenues.

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Before Tax)

Calculation: {Income Before Tax / Revenues} *100

Return on Equity Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. Calculation: (Net Income / Shareholders Equity)*100

Return on Capital Employed

Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. Calculation: EBIT / (Total Assets – Current Liabilities)*100

Return on Assets

Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings. Calculation: (Net Income / Total Assets)*100

Return on Fixed Assets

Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment). Calculation: (Net Income / Fixed Assets) *100

Return on Working Capital

Return on Working Capital measures the company's profitability to its working capital. Calculation: (Net Income / Working Capital) *100

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Cost Ratios

Cost ratios help to understand the costs the company is incurring as a percentage of sales.

Operating costs (% of Sales)

Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues. Calculation: (Operating Expenses / Revenues) *100

Administration costs (% of Sales)

Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues. Calculation: (Administrative Expenses / Revenues) *100

Interest costs (% of Sales)

Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues. Calculation: (Interest Expenses / Revenues) *100

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Liquidity Ratios

Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.

Current Ratio

Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Calculation: Current Assets / Current Liabilities

Quick Ratio

Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Calculation: (Current Assets - Inventories) / Current Liabilities

Cash Ratio Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only

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looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities. Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

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Leverage Ratios

Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.

Debt to Equity Ratio

Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt-equity ratio. Calculation: Total Liabilities / Shareholders Equity

Debt to Capital Ratio

Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk. Calculation: {Total Debt / (Total assets - Current Liabilities)}

Interest Coverage Ratio

Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense. Calculation: EBIT / Interest Expense

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Efficiency Ratios

Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources.

Fixed Asset Turnover

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. Calculation: Net Sales / Fixed Assets

Asset Turnover

Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues. Calculation: Net Sales / Total Assets

Current Asset Turnover

Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales. Calculation: Net Sales / Current Assets

Inventory Turnover

Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. Calculation: Cost of Goods Sold / Inventory

Working Capital Turnover

Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales. Calculation: Net Sales / Working Capital

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Capital Employed Turnover

Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company. Calculation: Net Sales / Shareholders Equity

Capex to sales

Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated. Calculation: (Capital Expenditure / Sales) *100

Net income per Employee

Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity. Calculation: Net Income / No. of Employees

Revenue per Employee

Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee. Calculation: Revenue / No. of Employees

Efficiency Ratio

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders. Calculation: Non-interest expense / Total Interest Income

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Notes • Financial information of the company is taken from the most recently published annual reports or SEC filings • The financial and operational data reported for the company is as per the industry defined standards • Revenue converted to USD at average annual conversion rate as of fiscal year end

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