Module Selection for Utility Solar - Talesun - Philipp Ecker

Module Selection for Utility Solar: Learning from Talesun’s multi-GW, 10-year module supply track-record Philipp Ecker, Sales Director 24 October 2018, PV ModuleTech 2018, Penang, Malaysia Introduction of Talesun Track-record of multi-GW module supply to global solar end-markets Cell 36 countries Ownership Zhongli Group (SZ SE: 002309) History Talesun established 2010 Employees Global 9,800 Company Overview Zhongli Group listed on stock exchange 2009 2010 Talesun Solar stablished 2011 Project development & EPC activities 2012Completed 100 MW PV power plant 201520172019 Thailand overseas manufacturing site Annual module capacity reaches 5 GW Ground-breaking on 300 MW project in LATAM 10 Years of Growth in PV Rated Capacity 100 MWp-dc Developer & EPC Zhongli Group - Talesun Solar Date Completed October 2012 Financing Bank China Development Bank Location Jiayuguan, Gansu, China Off-Taker China Merchants New Energy Group Average Annual Power Generation 130,000 kWh Enabling Large-Scale Utility Solar with Talesun Modules Track-record of multi-GW module supply to global solar end-markets 2011 2012 2013 2014 2015 2016 2017 2018 forecast Overseas China MW 53 442 647 729 1177 1503 2980 3850 Multi-Gigawatt Module Supply to Global End-Markets  GW+ solar modules supply annually since 2015  Shipments outside China exceeded 1.5 GW in 2017  Overseas shipments in 2018 to continue growth outside China, in all key end-markets 46% 19% 19% 9% 4% 3% China India Europe USA MEA others Global shipment profile in 2017 Supply of Modules Tracking Global Utility Solar Growth Europe, India & the US remain strong markets for Talesun modules Talesun has been a top-10 supplier to the largest utility market globally in recent years (China) Growth is now also coming from Southeast Asia, MEA, and LATAM countries Some of Our Global Partners Cell & module manufacturing facilities in China & Southeast Asia Annual Capacity In Thailand 1 GW PV Modules 800 MW PV Cells Annual Capacity In China 4 GW PV Modules 3.2 GW PV Cells 5 GW Gigawatt-Plus Cell/Module Capacity in China & Southeast Asia TÜV-Rheinland CNAS China Laboratory Certification TÜV - SUD UL TÜV-NORD CE Certification Anti-PID Salt Mist CorrosionAmmonia Corrosion Dust and Sand R&D Investment R&D investment $630M (by the end of 2017) R&D Employees 150+ Patents Applied 260+ (170+ issued) Reliable module technologies across mono & poly platforms Talesun Mono/Poly Capacity • Talesun was initially focused on p-type Poly, as this was the module technology of preference by developers & EPCs until 2018 • During 2017, mono capacity was added to reflect high-quality & low-cost mono wafer availability, and as mono-PERC started to gain traction • Today, Talesun has a flexible module capacity/supply capability, with the ability to ship almost two-thirds of modules as mono 35% 35% 30% Flexible (Mono or Poly) Mono Poly Flexible Capacity for Mono & Poly Module Supply Raw Material • New material introduction• Apply more severe test conditions than international standards to select best materials Production Process • More than 60 intelligent inspections to ensure production quality of PV modules Monthly Quality Monitoring Test Quarterly Quality Monitoring Test • Select modules randomly from normal product line in the first week of every month • Perform max. power determination , insulation test, wet leakage test, etc. • Select modules randomly from normal product line in the first week of every quarter • Perform 60kwh/m2 of UV, 1000 hours of damp heat, 200 cycling of thermal cycle, etc. Doubled IEC Durability Test Combined Cycle Test Test to Failure Pre - Product ion Pos t- Product ion Ensuring Reliable Module Supply New Talesun Module Types Proven financial stability & bankability - 200.00 400.00 600.00 800.00 1,000.00 1,200.00 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 2011 2012 2013 2014 2015 2016 2017 Revenue (Unit: Million $) Gross Margin Ratio Net Margin Ratio Financial Security of Talesun • Stable margin ratio. • The revenue of Talesun has been on a steady rise from 2011 to 2017, and exceeded 1 billion dollars in 20175 GW in 2017 • Total revenue of 7 years exceeded 3.5 billion dollars. AmericasAsia Europe Bankability BNEF’s PV module bankability survey results 2018 TALESUN Ranking 16th Bankability Survey of BNEF Credit Rating Evaluation Report Experience as global developer/EPC with access to project finance PROJECT DEVELOPMENT • Developing or buying projects rights • The strategy is to set up a SPV for every project ENGINEERING • Providing a highly- qualified engineering team to maximize PV plant performance PROCUREMENT • Procuring the best and most suitable equipment & material of the highest quality CONSTRUCTION • Managing and coordinating multiple construction companies in different countries O&M ASSET MANAGEMENT • Taking over the Operation & Maintenance of PV power plants with global service partners BUSINESS MODEL Before & During Construction After Construction BRIDGE & PROJECT FINANCING • Talesun has the financial competence and the global network to arrange financing for complete projects EXIT STRATEGY • Talesuns main strategy is to sell PV plants to institutional investors CONSTRUCTION PHASE Downstream Strategy of Talesun Completed Projects in China Eastern China Central China Northwestern China Northern China Completed Project Overseas Europe ME Latin America Africa SE Asia Total: 4.5 GW Total: 1.5 GW Talesun currently has a pipeline in excess of 3 GW across North America, Latin America, Europe, Africa and Southeast Asia. Multi-GW of PV Projects Completed by Talesun Globally Operations & Maintenance Spare parts Scheduled & unscheduled maintenance Fusion Solar Talesun Cloud Management Center O&M services are undertaken by Talesun to optimize plant performance, including: Performance monitoring, evaluation & optimization HQ Jiangsu, China Hongkong, China Bangkok, Thailand New Delhi, India Fukuoka, Japan Tokyo, Japan Istanbul, Turkey San Jose, USA Amsterdam, The Netherlands Munich, Germany Zurich, Swiss Sophia Antipolis, France Milan, Italy Sao Paulo, Brazil Talesun’s Global Footprint 18+ BRANCHES WORLDWIDE Sydney , Australia London, UK Chile · UAE · Shanghai, China · · Argentina · Brazil · Hongkong,China · Turkey· Italy · Germany · USA · Mexico Portugal · Thailand · France · Netherland ·UK · · Switzerland Korea · India · Australia · · Suzhou, China · Japan · South Africa · New Zealand Spain · · Philippines 30+ OFFICES GLOBALLY Talesun’s Global Footprint CHINA FACTORY Changshu, China Cell Capacity 3.2GW Module Capacity 4.2GW THAILAND FACTORY Rayong Industrial Zone Cell Capacity 800MW Module Capacity 1GW MANUFACTURING PLANTS GEOGRAPHY Talesun’s Global Footprint