STP 1Q12 Earnings Deck New

7/30/2019 STP 1Q12 Earnings Deck New

1/19

All Rights Reserved

1Q/12 Earnings CallMay 23, 2012


2/19

Forward-looking statement disclaimer

This presentation, and accompanying slides, contain statements regarding the Companys projectedfinancial and operating results, market opportunity and business prospects that are individually andcollectively forward-looking statements within the meaning of Section 27A of the Securities Act of 1933and Section 21E of the Securities Exchange Act of 1934. Any forward-looking statements andprojections made by others in this presentation are not adopted by the Company and the Company isnot responsible for the forward-looking statements and projections of others.

These forward-looking statements are not guarantees of future performance and are subject to knownand unknown risks, uncertainties and assumptions that are difficult to predict. Therefore theCom an s actual results levels of activit erformance or achievements could differ materiall and

All Rights Reserved

, ,adversely from results expressed in or implied by this presentation. These risks include, among others:the ability to meet shipment, revenue, gross margin, and operating margin targets; and the ability toreduce costs and capital expenditures. Such statements involve certain risks and uncertainties thatcould cause actual results to differ materially from those in the forward-looking statements.

Additional information concerning these and other risk factors is contained in the Risk Factors section

of our Annual Report on Form 20-F for the year ended December 31, 2011.

We assume no obligation to update any forward-looking information contained in this presentation.

Page 2


3/19

Agenda

Dr. Zhengrong Shi

Chairman and Chief Executive OfficerEarnings Overview and

Operations

All Rights Reserved

Andrew Beebe

Chief Commercial OfficerSales and Marketing

Overview

David King

Chief Financial OfficerFinancial Performance

Page 3


4/19

1Q/12 Financial Highlights

1Q/12 Guidance 1Q/12 Actual

Shipments -30% QoQ -27% QoQ

Revenue - $409.5M

Gross profit margin 3% - 6% 0.6%* including impactof US tariffs

All Rights Reserved

Stringent working capital management led to$65M improvement of Accounts Receivableand Inventory

Healthy cash and restricted cash position of$663.8 million

Shipments declined due to limited inventory andlow production over Chinese New Year

* Preliminary US Anti-Dumping andCountervailing Duties of $19.2 million, or 4.7% ofrevenues, impacted gross profit in 1Q/12

Excluding US tariffs, met gross margin target of

3% to 6%

Operating Loss - ($119.2M)

Net Loss - ($133.0M)

Earnings per diluted ADS - ($0.74)

Page 4


5/19

Consolidate wafer capacity to focus on

high efficiency production lines

$23M capex in 1Q/12

2012 capex of $120-$150M fore ui ment and services alread received

PV Cell and Wafer Capacity (MW)

Capacity Roadmap

2,400 2,400

All Rights Reserved

and technology upgrades

30 60150 270

540

10001100

,

500

1,600 1,600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012ECell Capacity Wafer Capacity

Page 5


6/19

Shipment Growth

PV Shipments (MW)

1Q/12 shipments down 27% QoQ, better than guidance

of 30% QoQ decrease

2Q/12 shipments target 20% QoQ growth

2,096 2,100-2,500

All Rights Reserved

6 30 68160

364496

704

1,572

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E

Page 6


7/19

22%19%

45%26%30%

34%

38%15%21%18%

60%

80%

100%

AmericasROW

More diversified revenue mixfrom sales channel strength & diversity

All Rights Reserved

44%43%40%

53%52%

0%

20%

40%

1Q/11 2Q/11 3Q/11 4Q/11 1Q/12

Europe

Page 7

17 national offices globally including regional HQs in

Switzerland and San Francisco


8/19

Market Overview

Germany Revised FiT policy delayed till July/October Buoyant demand ahead of FiT reduction

Italy Ongoing transition to roof-top market Revised FiT policy delayed till 2H12

USA

Europe

All Rights Reserved

Americas

Rest of the

World

Preliminary countervailing and anti-dumping duties of 34% onSuntech cells produced in China

Due to global supply chains, hundreds of megawatts of tariff-free panels available for US customers

Japan

New FiT expected to be implemented in July 2012

Suntech #1 foreign brand in Japan

China

Expect 1.7GW of Golden Sunshine projects in 2012

Expect 3GW+ FiT supported projects in 2012

Saudi Arabia

Targets 41GW of PV and concentrated solar by 2032Page 8


9/19

Income Statement

Revenue

$ in millions 1Q/11 1Q/12

-53%

Shipments decrease by 22% YoY

ASPs decline by 36% YoY

877.0

409.5

182.7

All Rights Reserved

Gross Profit Pricing pressure impactedgross profit

1Q/12 gross profit impacted by$19.2M US AD/CVD tariffs

OPEX 1Q/12 under-utilization charges

of $21M and provisions for baddebt and prepayments of $26M

Page 9

-99%

.

2.4

+38%

88.2121.6


10/19

Income Statement

$ in millions 1Q/11 1Q/12 Due to lower gross profit, and

provisions for bad debt andprepayment

Improved FX and hedging

management

94.5

(119.2)

(26.6)

22.2

Income(Loss) from

Operations

Net FXIm act

+183%

-226%

All Rights Reserved Page 10

0.17(0.74)

Tax (Benefit)Expense 5.5

6.1

Diluted EPS

Certain profitable China-basedsubsidiaries taxedindependently+11%

-535%


11/19

Balance Sheet


-26%

900.7

663.8

550.2

Cash +

restrictedcash

YoY capacity expansion


-8%

.508.4

-43%

715.6

409.5

Inventory

AccountsReceivable

Stringent working capitalmanagement

Effective inventorymanagement


12/19

Balance Sheet


+23%

7390

Lower revenue base in1Q/12DSO


+22%

474.2.

+7%

1,488.2 1,599.8 Higher YoY due to capex

Increased due to marketdynamics

AccountsPayable

Net Debt


13/19

Cash Flow

Stringent working capitalmanagement

Cash Flow

fromOperations

$ in millions1Q/11 1Q/12

+91%

(134.7)

(12.5)

All Rights Reserved

Capex

Hold capacity stable

Limited capex for equipmentand services already receivedand upgrades

Page 13

-82%

128.5

22.6


14/19

2Q/12 2012

Shipments (MW) Up more than 20% QoQ 2.1GW 2.5GW

Gross margin 3% 6%

2Q and FY2012 Outlook andFinancial Guidance

All Rights Reserved

Capex $120M $150M

Capacity1.6GW Wafer

2.4GW Cell/Module

Page 14


15/19

2Q/12 FX Outlook

Item Guidance Sensitivity

Net FX Impact

Minimal impact based on EUR rateof 1.28USD

Net EUR exposure of EUR300M

Each 0.01 appreciation of theEUR/USD rate will lead to $3Mgain and vice versa



16/19

Highlights 1Q/11 4Q/11 1Q/12 QoQ YoY

Total net revenues 877.0 629.0 409.5 -35% -53%

Total cost of revenues 694.3 566.7 407.1 -28% -41%

Gross profit 182.7 62.3 2.4 -96% -99%

1Q/12 Income Statement

All Rights Reserved

Operating expenses 88.2 126.5 121.6 -4% 38%

Operating income (loss) 94.5 (64.2) (119.2) -86% -226%

Net income (loss)attributable to holders of

ordinary shares

31.9 (148.8) (133.0) 11% -517%

Fully diluted EPS 0.17 (0.82) (0.74)

Fully diluted shares 182.5 180.7 181.0

Note: Amounts in millions of US Dollars or shares except for per-share data

Page 16


17/19


18/19

Highlights 1Q/11 4Q/11 1Q/12

Net cash provided by (used in)operating activities

(134.7) 253.3 (12.5)

Net cash (used in) investing

activities

(187.1) (127.6) (1.3)

Net cash rovided b used in

1Q/12 Consolidated Cash Flow

All Rights Reserved

financing activities

7. 7. .

Net increase (decrease) in cashand cash equivalents

(89.9) 34.0 (18.7)

Cash and cash equivalents

at the beginning of the quarter 872.5 458.4 492.4

Cash and cash equivalentsat the end of the quarter

782.6 492.4 473.7

Note: Amounts in millions of US Dollars

Page 18

Documents

STP 1Q12 Earnings Deck New