Jeannine Sargent CEO Oerlikon SolarUS and Canada 0 100 200 300 400 500 600 700 2003 2020 year QBTU* Global Energy Demand ... Throughput x Power Turnkey Advanced Manufacturing Lines

Jeannine SargentCEO Oerlikon Solar

Piper Jaffray Clean Technology and Renewables Conference February 20, 2008 New York, NY

Jeannine P. Sargent * Piper Jaffray Clean Tech * February 20, 2008 * aew 2

Disclaimer

This presentation is based on information currently available to management. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected or projected.


Oerlikon locations

Oerlikon At a Glance

19,750 Employees worldwide – and growing- 2500 Global Support- 1500 Scientist and Engineers

35 Countries- 170 Global locations

>250 Million CHF R&D investment in 2007 - 6700 Living patents


Oerlikon group - leading platform for key business levers

Innovation + Cross Segment R&D

Close to core and beyondClose to core and beyond

Operational Excellence

Customer focus and competitivenessCustomer focus and competitiveness

Regional Presence Our Employees

Training and development

Training and development

1 2

3 4

Global competence with customer proximity

Global competence with customer proximity

Compliance ControlledProcesses

ContinuousImprovement

OperationalExcellence

Integrated Supply Chain& Lean Manufacturing

Safety &Certifications

Business Process Management

Quality Circles


Key Member of Oerlikon Group

Oerlikon Coating

Oerlikon Vacuum

Oerlikon Drive Systems

Oerlikon Components

Oerlikon Textile

Oerlikon Solar

Oerlikon Solar


Oerlikon Solar Footprint

North America

•Sales•Customer Support•Operations est. 2009

Asia

• Sales• Operations• Pilot Line• Technology Center• Customer Support • & Training

Europe

• Solar HQ• Operations• Pilot Line• Advanced R&D• Product Development • Customer Support & Training


Solutions for a Solar Powered World

Market Opportunity

Achieving grid parity

Oerlikon Solutions


Global Energy Demand

47.5%

23.2%

18.9%

7.8% 2.6%

Coal Gas Hydro Oil Other

Total Electricity Production Mix

Over 2/3rds of electricity generated today is from fossil

fuels todayRestRest

Russia

RussiaOther Europe

Other Europe

Middle East

Middle East

China

China

Japan

Japan

NW Europe

NW Europe

US and Canada

US and Canada

0

100

200

300

400

500

600

700

2003 2020

year

QB

TU*

Global Energy Demand

Source: Credit Suisse and McKinsle & Co.*Quadrillion British Thermal Units **for 2005

China and US/Canadahave the greatestgrowth in demand


Drivers for New Energy Sources

Increased Energy Demand

Rising Costs

Diminishing Fossil Fuel Resources

Environmental Concern and Regulations

National Security

Renewable Primary Energy Supply

0

50

100

150

200

250

2000A 2010E 2020E 2030E 2040E

year

exej

oule

CAGRTotal Market 78%


SunGeothermalWind Tides and Ocean CurrentsHydroelectric

120,000.0 TW12.0 TW3.0 TW2.0 TW

.5 TW

Renewable Energy Options

Solar has greatest potential to meet world’s growing electricity needs compared to other renewable energy sources

Source: Engineering and Science No. 2 2007


Solar Market Segments and Applications

Residential, Commercial, UtilityGrid Connected

Recreational, Automotive, Consumer, Novelty, etc

Consumer Power/ Indoor

Communications, Signals, Security, Water, Power, Outdoor Lighting

Remote Industrial/ Habitation

Sample ApplicationsSegment

Key PV industry drivers

•Grid connected systems are the engine of the industry, with highest year-on-year growth approaching 50% since 2000

•Large scale ground ground-based GW system need to be established

Grid-Connected Applications are >85% of the PV market



Market Opportunity


Oerlikon Solutions


Achieving Grid Parity Lowering the Cost per Watt

$Wp

=Total Cost

Throughput x Power

Turnkey AdvancedManufacturing Lines

Micromorph High Efficiency

Tandem Solar Cells

OerlikonAdvantage


*~6kW/m2 per day solar irradiance assumedSource: Oerlikon analyst reports

0.0

0.1

0.2

0.3

2006 2011 2016 2021

Cost of PV electricity generation Spain (€/kWh)

Grid price increasing by 2-3.5% p.a.

PV generation cost downside

PV generation cost upside

Grid Parity for PV in California and Spain ~2011-2015

0.0

0.1

0.2

0.3

2006 2011 2016 2021

Cost of PV electricity generation California ($/kWh)

Grid price increasing by 2-.5% p.a.

PV generation cost downside

PV generation cost upside

Cost of PV electricity generation California ($/kWh)

Cost of PV elec. generation Spain ($/kWh)

Forecast for global Grid Parity is 2011 to 2014


Cost of Ownership Development to Grid Parity

Thin Film Si Roadmap

Currentsmallfabs

Equipmentcost

decrease

Materialcost

decrease

Othercost

decrease

Tacttime

decrease

Cellefficiencyincrease

Economiesof scale

2010largefabs

2007for 20 MWp fabs < 1.5 $/Wp (<1.12€*/Wp)

2010for GWp fabs < 0.7 $/Wp (<0.52€*/Wp)

0

20

40

60

80

100%

(Calculated with an exchange rate of €1.00 =$1.34)


Achieving Grid Parity

1.5

1.0

0.5

Cost of ownership

Grid Parity

2010200920082006 2007

$/Wp

201220112007 2008 2009 2010

2012

2.00

CapEx per Watt

3.00

4.00

Module efficiency

10%

9%

8%

7%

2010200920082006 2007

Amorph

MicromorphTandem

NextGenerationThin-Film

2011 2012

11%

13%

12%

Fab nominal capacity

1

0.3

0.12

0.08

0.04

GW/p

2006 2007 2008 2009 2010 2011

capa

city

2012

$/W

3.50

2.50

1.50

GigaCampus


MicromorphTandem



Market Opportunity


Oerlikon Solutions


2 Primary Production Technologies for Solar Cells

Substrate Cell IssuesTechnology

CrystallineSilicon

Thin Films

CostSilicon Supply

Large Scale Mfg.Efficiency


Thin Film Solar Cell Basics

Manufacturing Order

Thin Film Solar Cell Structure

Thin Film Solar Panels

GlassLamination

Back ContactPV Material

Front ContactGlass

Thin Films


Laser ScribersDefine Cells

Key process elements needed for scalable Thin Film PV Manufacturing

LPCVDDeposit Contacts

PECVDDeposit PV Material


Thin Film is Fastest Growing PV Technology

Installed Solar Cell Maufacturing Capacity

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GW

p

Crystalline Silicon Thin Film

Source: Commerzbank and Oerlikon estimates

2006-2015 CAGRThin Film 74.8%C-Si 49.4%Total Market 54.0%

Thin Film Drivers

•Cost advantage: Thin Film reduces the amount of light absorbing material, leading to a reduction of CoO while technology increases efficiency

•Shorter energy payback period:Production of thin film modules is less energy intensive

•Temperature coefficient: The performance of modules remain more stable with increasing temperature


Our Mission

To be the leading supplier of product and fabsolutions for the PV manufacturing industry

- Equipment and Processes- Building and Infrastructure- Guaranteed Performance


Micromorph Process Technology– up to 50% more Efficiency

The principle of light trappingto deliver high performance

TCO Best Commercial TCO

Oerlikon TCO

a-Si/ µ-Si

a-Si:H

μc-Si:H

Amorph

MicromorphTandem

Visible Near IR

•Integral to Micromorph process-High transmission in visible and near IR light

spectrums

•The goal is to optimize the hazeto better the performance.


Oerlikon Technology

PECVDClean TCO Laser TCO AssemblyLaser Lasera-Si/ µ-Si

LSS 1200

TCO 1200

KAI 1200

Turnkey Advanced Manufacturing Lines

- Advanced process integration

- Systems and support

Advanced process solutions plus high performance cell technology

deliver lowest cost per watt


Oerlikon Turnkey Services

Uptime Improvement

Quarterly Preventative Maintenance

Equipment top condition

PM adapt to the production

Coordinated Maintenance

EquipmentMove-In

Delivering fastest time to money


Growing Solar Customer Base


Industry Announced GW Thin Film Fabs


Significant capacity ramp up following explosive demand

Q1 to Q3Highlights

Outlook

2007 HighlightsStrong sales and order momentum –important global customer wins

Introduction and first contracts signed for Micromorph technology

Development of internal and external supply chain

Formation of solar segment within Oerlikon and strengthening of management team

OutlookRamp-up of global operations and supply chain to match substantial demand growth

Continuous improvement/innovation of key components

Focused completion of offering along the value chain

0

200

400

600

800

1'000

1'200

2006 2007p 2008p 2009p

(in CHF M) Sales* targets

>1‘000

>600

>300

~90

Order Intake 2007 > CHF 600M

*Solar Sales 06-07 in Coating, 08- Solar will be reported as separate segment



Thin Film is Solar’s fastest growing segment contributing to a $134B (€100B) total Solar Market opportunity by 2015

Oerlikon is on track to achieve grid parity by 2010

Proven thin film solutions for high volume solar module production


Oerlikon Solar offers cost-effective,proven solutions for the mass production

of Thin Film Silicon Solar Modules.

Documents

Jeannine Sargent CEO Oerlikon SolarUS and Canada 0 100 200 300 400 500 600 700 2003 2020 year QBTU* Global Energy Demand ... Throughput x Power Turnkey Advanced Manufacturing Lines