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OPERATIONS UPDATE
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This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements, among other things, concerning: effects on our financial statements and guidance resulting from certain module manufacturing changes and associated restructuring activities; our business strategy, including anticipated trends and developments in and management plans for our business and the markets in which we operate; future financial results, operating results, revenues, gross margin, operating expenses, products, projected costs (including estimated future module collection and recycling costs), warranties, solar module technology and cost reduction roadmaps, restructuring, product reliability, investments in unconsolidated affiliates and capital expenditures; our ability to continue to reduce the cost per watt of oursolar modules; the impact of public policies, such as tariffs or other trade remedies imposed on solar cells and modules; our ability to expand manufacturing capacity worldwide; our ability to reduce the costs to construct PV solar power systems; research and development programs and our ability to improve the conversion efficiency of our solar modules; sales and marketing initiatives; and competition. These forward-looking statements are often characterized by the use of words such as "estimate," "expect," "anticipate," "project," "plan," "intend," "seek," "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "will," "could," "predict," "continue" and the negative or plural of these words andother comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed in Item 1A "Risk Factors," of our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission.
FORWARD-LOOKING STATEMENTS
MANUFACTURING CAPACITY OUTLOOK
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MODULE CAPACITY | NOVEMBER ‘16 ROADMAP
-
1,000
2,000
3,000
4,000
5,000
6,000
2017 2018 2019 2020
Series 4 Series 6
MW
4,000
2018-2020
Series 4 1,100
Series 6 8,500
9,600
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MODULE CAPACITY | DECEMBER ‘17 PLAN OF RECORD
-
1,000
2,000
3,000
4,000
5,000
6,000
2017 2018 2019 2020
Series 4 S4 Extension Series 6
MW
5,700
2018-2020
Series 4 4,400
Series 6 9,350
13,750
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HOW WE GET TO OVER 6 GW’S CAPACITY
Q1 Q2 Q3 Q4
2017
Q1 Q2 Q3 Q4
2018
Q1 Q2 Q3 Q4
2019
Q1 Q2 Q3 Q4
2020
MALAYSIA S4 FACTORY 1 – 1000MW NAMEPLATE
MALAYSIA S4 FACTORY 2 – 1000MW NAMEPLATE
OHIO S6 FACTORY – 600MW NAMEPLATE
MALAYSIA S6 FACTORY 1 – 1200MW NAMEPLATE
VIETNAM S6 FACTORY 1 – 1200MW NAMEPLATE
VIETNAM S6 FACTORY 2 – 1200MW NAMEPLATE
MALAYSIA S6 FACTORY 2
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SERIES 6 FACTORY #1 | 600MWPERRYSBURG, OHIO
• Production Equipment Installed
• 1st Complete Module Produced
• Q1 2018: Plant Qualification Complete
• Q2 2018: UL/IEC Certification
• Q2 2018: Production Shipments Begin
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PERRYSBURG FACTORY TRANSFORMATION
DECEMBER 2016
9
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SERIES 6 FACTORY #2 | 1.2GWKULIM, MALAYSIA
• Plant Fit-Up Complete
• Coater Installation Complete
• Frontend Equipment 50% Installed
• Equipment Deliveries Top 25%
• Q2 2018: 1st Complete Module
• Q3 2018: Plant Qualification Complete
• Q3 2018: Production Shipments Begin
• Q1 2019: Full Capacity Achieved
11
SERIES 6 FACTORY #3 | 1.2GWDONG NAM, VIETNAM 1
• Facility Ready for Tool Installation
• 1st Coater In-Transit
• Hiring In Progress
• Q1 2018: Tool Move-In & Coater Install
• Q3 2018: 1st Complete Module
• Q4 2018: Plant Qualification Complete
12
NEW SERIES 6 FACTORY | 1.2GWDONG NAM, VIETNAM 2
• Pilings and Groundwork Complete
• Steel Sub-Structure Ready to Begin
• Hiring in Progress
• Q3 2018 Ready for Equipment
• Q1 2019 1st Complete Module
• Q2 2019 Plant Qualification Complete
CAPEX & CPW FORECASTS
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SERIES 6 CAPEX: BEATING OUR EXPECTATIONS
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
Series 4 Series 6 Greenfield (shared site) Series 6 Brownfield plus conversions
Capex per watt
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2016 2020E
Co
st p
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att
S6 IMPACT
(FORM FACTOR)EFFICIENCY
IMPROVEMENTMFG COST
REDUCTION LINE RUN RATE
INCREASE
DRIVERS OF COST REDUCTION | MODULE
2020 is Lead Line Cost per Watt. Not to Scale
100%
~60%
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16Assumes North America 100MW Tracker plant without ODC. 2020 is Lead Line Cost per Watt. Not to Scale
2016 2020E
Co
st p
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att
MODULES6 IMPACT ON
BOS
EFFICIENCY
IMPACT ON BOS
EPC COST
REDUCTION
DRIVERS OF COST REDUCTION | FULL SYSTEM
System Module
100%
<60%
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MODULE COST PER WATT | SERIES 4
2020 is Lead Line Cost per Watt. Not to Scale
2016 2017 2018E 2019E 2020E
100%
Co
st p
er W
att 70%
86%
INTRODUCING SERIES 6
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• Same proven manufacturing process
• Same reliable, high energy-yield cell
• Higher Efficiency
• Improved BOS installation cost
• Framed with standard structure compatibility
SERIES 6: COMPELLING FOR US AND OUR CUSTOMERS
SERIES 4
120Wp
SERIES 6440Wp
