solar business plan_2013_1gw_2010_sept(미리넷솔라)

Solar Business PlanSolar Business PlanJuly 2010July 2010

Content

I Company OverviewI. Company Overview

II. Industry Outlook

III. Strategy

IV. Expansion Plan

V CompetitivenessV. Competitiveness

Strictly Confidential - 2 -

Company Overview



III. Strategy

IV. Expansion Plan



Company Overview

VisionGlobal leader in solar industry in terms of technology and business

Contribute for the better futureContribute for the better future

Gl b l l di i l ll f tGlobal leading company in solar cell manufacture

Ingot/WaferIngot/Wafer ModuleModule

Silicon

Ingot/WaferIngot/Wafer

SystemSystem

ModuleModule

Silicon InstallationInstallation

Solar CellSolar Cell


Company Overview

Company Overview

Company Name Founded Dec. 27, 2005Millinet Solar Co., Ltd.Name

CEOMajor Product Mr. Sang-Chul LeeMulticrystalline Solar Cell

Biz Area Solar Cell and Applied Products

No of

Capital Stock (Par)

KRW 11.2Bil

Website http://www.millinetsolar.com No. of Employees 300

Seongseo Industrial Complex,357-76, Hosan-dong,Dalseo-gu, Daegu, Korea (Head Office/ Factory)Factory (Head Office/ Factory)

IT Venture Tower, 78, Garak Bon-dong, Sonpa-gu, Seoul, KoreaOffice in Seoul


Company Overview

History • 2010. Jun: Designated 2010 Star Company from Dae-gu Local Government

• 2010. Apr: Investment from Japanese CBC Group (￥300mil)

• 2009. Nov: Awarded USD20Mil. Medal of Export

• 2009 Sep : Completed addition of the 2nd term 60MW Line (100MW Total)• 2009. Sep : Completed addition of the 2 term 60MW Line (100MW Total)

• 2009. Feb : Agreement on the supply of equipment(130 MW Full Auto)

• 2009. Feb : Began operation in 24 hrs 3 shift full blast

• 2008. Oct : Lon-term sales contracts (2 contracts, 102MW for 5 yrs)

• 2008. Jul : Lon-term sales contracts (2 contracts, 128MW for 5 yrs)

• 2008. May: 2 patents registered(Patent #: 100828254, 100828262)

• 2008. Jan : Completion ceremony held for the 2nd term line

• 2007. Nov: The 1st term line facilities introduced and set up

• 2007 Oct : Lon-term sales contracts (2 contracts 110MW for 3 yrs)2007. Oct : Lon term sales contracts (2 contracts, 110MW for 3 yrs)

• 2007. Sep : The 1st production line completed

• 2006. Sep : Ground-breaking ceremony held for the 1st term line

Strictly Confidential

• 2006. Mar : Agreement on the supply of equipment(30 MW Full Auto)

• 2005. Dec : Millinet Solar Co., Ltd. founded- 6 -

Company Overview

Location of head office/factory

Seoul

DaeguDaegu

• Address : Seongseo Industrial Complex 357-76

Busan

• Address : Seongseo Industrial Complex,357-76, Hosan-dong,Dalseo-gu, Daegu,Korea

• Located in one of the best industrial clusters with an integrated infra structure


• Excellent Transportation Access (Subway, Seongseo IC)• Surrounded by famous Univ. and Colleges and abundant supply of work force

Company Overview

Factory inside


Industry Outlook



III. Strategy

IV. Expansion Plan



Industry Outlook

Photovoltaic market forecast• Expected to grow in “V” shape looks like world economic recovery • Anticipated to grow at 45 % CAGR

Source: 2009 Displaybank


Industry Outlook

World solar cell manufacturing forecastK ill f t 1 8GW l ll i 2010 (4 2% ld k h )• Korea will manufacture 1.8GW solar cell in 2010 (4.2% world mark share)

• In 2020, Korea will be a largest solar cell maker like a Semiconductor & LCD industry(33.8GW, 32.2% world market share)

Source: Nov. 2009 Displaybank


Industry Outlook

Grid parity• Grid parity is achievable in the coming couple of years estimate in 2012• Grid parity is achievable in the coming couple of years estimate in 2012• PV market will grow like a bin-bang after grid parity achieved• PV electricity cost come down earlier than market forecast

Grid parity will occur in majorUS$

Grid parity will occur in major markets in next 2 to 3 years

ants

200

5UIn

con

sta

Strictly Confidential - 12 -Source: Company data

Strategy



III. Strategy

IV. Expansion Plan



Strategy

Enforce competitiveness

Value chain integrationEstablishment of global strategic alliance

Business Area Expansion

Business Area Expansion g g

CO-OP R&D collaboration with colleges and univ.Develop existing and new breakthrough technology

ExpansionExpansion

Technology Technology p g g gySecure equipment technology and its localization

High efficiency/ technology intensive production

DevelopmentDevelopment

g e c e cy/ tec o ogy te s e p oduct oSecure stable supply and enhance productivityLocalize equipments, parts, and supply materials

Cost CompetitivenessCost Competitiveness

Expand overseas market aggressively Improve brand value through perfect quality controlGovernment support for oversea market drive

Overseas MarketOverseas Market


StrategyBusiness Area

ExpansionBusiness Area

ExpansionBusiness area expansion

Ingot/WaferIngot/Wafer

Solar CellSolar Cell

• Capacity increase

• Secure raw material supply• Collaboration with

synergetic sectors• Aggressive investment in

new technology• Strategic partnerships

• Revenue improvement

Module/SystemModule/System

• Cost competitiveness

g p p• R&D • Economies of scale for cost

competitiveness • Cost competitiveness• Revenue increase• Business diversification

competitiveness


StrategyBusiness Area

ExpansionBusiness Area

ExpansionValue chain integration

• Integration with affiliated companies for cost competitiveness• Synergy generation through Millinet affiliated and other partnership

Silicon Ingot Wafer Cell Module System

Millinet Silicon Millinet Solar

Millinet Co., Ltd.

N Solar (North America)


StrategyTechnology

DevelopmentTechnology

DevelopmentTechnology sector

Original Technology

Co-op R&D collaborationSecure proprietary technology

EquipmentSecure proprietary technologyGovernment subsidy and support

Localize equipments

D l i ti d

q pR&D collaboration with customersProduction

Develop existing andnew of technologySecure exclusive process technology


p ocess tec o ogyEnhance Productivity

Strategy

Major player positioning by technology Low costHigh efficiency

Technology DevelopmentTechnology

Development

?g y

etiv

enes

s

First Solar

CdTe

Cos

t com

pe

a-Si

Solar

SuntechCIGS

Bulk Crystalline

C

SharpMitsubishKaneka

SuntechQ-CellsYingli

JA solarSolarworld

SolibroSolopower

HITBCSCSolarworld

Sharp

SanyoSunpower

Thin-film

Crystalline

BCSC81%


Conversion efficiency

Sunpower

Strategy

Securing cost competitivenessCost

CompetitivenessCost

Competitiveness

Securing cost competitiveness

Cost structure of solar module

through the manufacturing with high efficiency and high technologyPoly silicon was major factor ofcost reductionSecuring cost competitiveness through the technology innovationin the ingot/wafer manufacturingprocessCost reduction through achievingg geconomic scale


Source: Solar Photovoltaic Industry, Deutsche bank, Feb. 2010

- 19 -

StrategyCost

CompetitivenessCost

CompetitivenessProductivity improvement

6%4%

Harness fast process technology to improveproductivity and develop mass production

1% 1%

%productivity and develop mass production equipmentCompany’s own exclusive process knowledge

Efficiency profit Yield profit

16.8%17.0%

Currently world class level in terms of yield improvement Guaranteed efficiency by turnkey supplier(Multi)

Efficiency profit Yield profit

15.0%

15.5%

16.2%

15.5%

16.0%

16.5%

17.0%

15.0%

14.0%

14.5%

15.0%

표준 표준 표준 표준


‐표준 ‐표준 ‐표준 ‐표준

Source: Company data

StrategyOverseas

MarketOverseas

MarketExpand market

Focusing on overseas market where

demands are high

Target Largest market, Europe, and

largest upside potential market US.

High quality product for value added

brand name

Strictly Confidential - 21 -Source: Global market outlook until 2013, EPIA 2009

Expansion Plan



III. Strategy

IV. Expansion Plan



Expansion Plan

Expansion objectives

• Cost reduction through establishing economies of scale• Investment in equipments for high efficiency and yield

Cost reduction

Investment in equipments for high efficiency and yield• Synergy generation by value chain integration

Enhance marketing force

• Export driving (95%+ for overseas customers)• Meet demands for sales orders

Enhance marketing force

• Additional long-term sales agreements

Maximize company value

• IPO Plan (US+domestic market)• Maximize profitability for better valuation in the market

Increase revenue


• Increase revenue

Expansion Plan

Construction plan of solar cell manufacturing lines• Currently two lines of 100 MW on line for mass production • 300 MW (Factory 1) until 2014 plus Factory 2 700 MW(Factory 2) = 1 GW capacity• Enforcing competitiveness by fabrication of world class line with highest efficiency

2010 2011 2012 2013

Expansion 700 MWExpansion

RemarkFactory 2

200 MW500 MW

700 MW

Year end

Factory 1

300 MW

300 MW+

500 MW 800 MW 1 000 MW

300 MW+ 300 MW+300 MW


Capacity 300 MW 500 MW 800 MW 1,000 MW

Expansion Plan

Product

• Multi crystalline solar cell which is top ranked in the market produce at present.• In near future, plan to produce Mono crystalline solar cell with high efficiency.

Item Multi(Current) Multi(Plan) Mono(Plan)

PrincipalMaterial Multi-crystalline Multi-crystalline Mono-crystalline

External Dimensions 156mmx156mm 156mmx156mm 156mmx156mm

Cell Thickness 180㎛ ±20㎛200 20

180㎛ ±20㎛200 20

180㎛ ±20㎛200 20Cell Thickness 200㎛±20㎛ 200㎛±20㎛ 200㎛±20㎛

Type of Contacts

2 Bus bar type3 Bus bar type



Anti-reflection Coating

Silicon Nitride (SiN)



Avg. Power 3.94Wp 4.50Wp 6.08Wp


Avg. Efficiency 16.2% 18.5% 25.0%

- 25 -

Expansion Plan

Daegu Factory

Currently 100 MW mass productionLand : 36,921m2

Building : 19,482m2

Currently 100 MW mass productionAdditional plant for 200 MW under constructionTotal 300 MW capacity upon expansion


Expansion Plan

Factory 2 construction plan

Factory 1 Factory 2

F t 1 36 921 2Factory 1 36,921m2

Factory 2 39,884m2

Production siteUtility site

- Located next to the Factory 1 taking advantage of infrastructure of Factory 1Total 1 GW when Factory 2 is completed


Utility siteR&D Center

- Total 1 GW when Factory 2 is completed.- The largest production capacity in Korea.

- 27 -

Expansion Plan

Plan on the line construction of factory 2

• 7 lines of 100 MW fabricated which will lead to total 700 MW capacity in Factory 2• Enforcing competitiveness by fabrication of world class line with highest efficiency

2010 2011 2012 2013

100 MW

Expansion

FoundationW

ork & building

constructio 700 MW100 MW100 MW

100 MW100 MW

200 MW

500 MW

n on 700 MWRemark100 MW

100 MW

100 MW Preparation

Total Capacity 200 MW 500 MW

100 MW

700 MW

Complete


p y

Expansion Plan

Factory 2 construction plan

Front

• Land size 39,885m2

• Construction 30,446m2

• Total building floor area 64,503m2Total building floor area 64,503m

Façade


Façade

Competitiveness



III. Strategy

IV. Expansion Plan



Competitiveness

Advanced High-quality European Advanced Equipment

and Processes

equipmentProprietary technologyProcess engineers with LCD and Semiconductor experience

Top Tier European

Customers

Leading customers from EuropeExcellent customer servicesStrong reputation

High Quality

16.2% average conversion efficiency (16.8% for lines 3 & 4)Low breakage rate

Strong Growth

Prospects

Lines 3 and 4 expansion in 2010 (200MW)Vertical integration plansN Solar module business

Millinet Solar’sCompetitive Advantages

Low breakage rateHigh color consistency

ProspectsN Solar module businessIngot/wafer business

Recent positive grossActive working capital Profitable and

growing

Recent positive gross margins Rapid expansion demonstrated

Working Capital

Management

Active working capital managementShort term Inventory turnover

Korea’s Strategic

Advantage

Leadership in electronics (Hynix, Samsung, LG)Low cost, specialised labour

R&D

Strong R&D manpowerGovernment R&D collaborationHigh Efficiency Solar Cell R&DGravure offset printing technology


Gravure offset printing technology

Competitiveness

Recognized by Customers

Sector Customer EvaluationService Proactive and prompt issue address by frequent technical meetingQuality High efficiency low breakage rate quality consistencyQuality High efficiency, low breakage rate, quality consistency

Efficiency Higher average efficiency (15.8%) than industry standardsMillinet Solar cell prices belongs high band compared to Chinese

Price cells leading more profit and highly evaluated among world’s customers

Strictly Confidential - 32 -World’s recognized product quality

Competitiveness

Reference site30kWp, Wimmer Beutelsbach 3MWp, Pollenzap, p,

60kWp, Sanladerer


Competitiveness

Reference site

396kWpValle Lomellina

50kWpZacher


Competitiveness

Contractual Status

Customer Country Contract(MW)

2010 2011 2012 Total A company Taiwan 15 15 15 45A_company Taiwan 15 15 15 45S_company Italy 18 12 12 42M_company Italy 18 12 12 42J company India 17 21 21 59J_company India 17 21 21 59R_company Hong Kong 8 16 16 40H_company Turkey 8 8 8 24S_company Spain 13 12 12 37S_company Spain 17 17 17 50A_company Spain 13 13 13 39E_company Spain 12 18 24 54B_company Korea 11 12 12 35K_company Korea 12 12 12 36


p yTotal 162 168 174 503

Competitiveness

Potential customers under negotiationNegotiation(MW)

Customer Country Negotiation(MW)

2H 2010 2011 Total CommentA_company Germany 5 12 17 MOUS_company Germany 9 24 33C_company Germany 12 12S_company Germany 4 12 16 MOUH_company Germany 6 12 18B_company Italy 5 12 17N_company Filand 5 12 17K_company Austria 5 12 17A_company France 2 12 14C company Japan 5 24 29 MOUC_company Japan 5 24 29 MOUS_company Japan 48 48C_company China 5 24 29J_company China 6 12 18W_company China 3 6 9E_company Greek 8 24 32K_company Korea 10 30 40H_company Korea 6 36 42


A_company India 3 6 9Total 87 330 417

Competitiveness

R&D roadmap on high efficiency solar cell

Research and development Present 2009 2010 2011 Max Δ eff

Conversion efficiency levels y(commercial production)

15.93 % 16 % 17 % 18 % 2.5%

RIE texture Wet process 0.3%

Laser texture Wet process 0.3%

Shallow emitter (POCl3) Mist process 0.1%

Double ARC SiN 0.5%

Domestic Paste Development - N/A

Selective emitter (LCP) - 0.8%

Offset gravure (metallization) Screen P 0.5%


Testing ProductionDevelopment

Competitiveness

Government subsidized R&D project

$• Currently each different 5 government project are underway (total subsidy 6.7 Mil U$)• 17.2% High efficiency solar cell through Gravure offset printing technology has come

out as a result of R&D from the projects(KRW 1,000)

No Project Period Subsidy Project spending

1 Development of High purified and mass productionSoG-Si by UMG silicon feedstock

June.2009.~May 2012 (36months) 3,382,000 4,637,000

2 Development of module circuit system preventingelectrical loss of photovoltaic module

May 2009~April 2011(24months) 410,000 556,000

3 Development of production for laser doped high efficiency mc-si solar cell

Oct. 2009~Apr. 2012 (31months) 3,750,000 5,114,250

4 Inkjet metallization for FSG of polycrystalline solar Dec. 2009~Nov. 2011 2 660 000 3 994 0004 cells (24months) 2,660,000 3,994,000

5 Reliability improvement for Roll to Roll Printing process applied Solar Cell

June. 2010~May 2012 (24months) 820,000 1,120,000

Total 11 022 000 15 421 250


Total 11,022,000 15,421,250

Competitiveness

High efficiency solar cells by gravure offset printingG ff t i t d l ll h t i d b fi idth(≤50 )• Gravure offset printed solar cells are characterized by narrow finger width(≤50㎛) with high aspect ratio, resulting in increasing the light absorption area without series resistance related losses.

Contents Screen printing(present)

Gravure offset printing(new) Upgrading factor

Finger width(㎛) 80~100 30~50 larger light absorption area

Finger height(㎛) 10~20 20~30 control series resistance

Number(ea) 60~80 100~120 control contact resistance

Aperture ratio(%) 87 94 increased incident light

Cell efficiency(%) 15.8~16.2% 16.8~17.2% increased efficiency


Competitiveness

High efficiency solar cells by gravure offset printing• Gravure offset solar cell technology by R&D equipment achieved 17.5% efficiencygy y q p y

and certified by KIER (Korea Institute of Energy Research)• Currently mass production equipment under

development• More than 17% efficiency is expected upon applied• More than 17% efficiency is expected upon applied

In the mass production

Strictly Confidential - 40 -R&D Gravure offset printer Certificate by KIER

Competitiveness

• 2 Patents related solar registered

Registered PatentsNo Title Resistration # 2 Patents related solar registered

• 14 Patents pending• Pending patents will be registered

in 2011Patent pending

1 Manufacture process of silicon substrate for solarbattery 10-0828254

2 Solar battery module manufacturing method 10-0828262

• Improving the technologycompetitiveness through the patents registration which is the results of the R&D activity

p gNo Title Application #

1 Cell Structure Of Solar Cell And Method For Manufacturing Thereof 2009-0075681

2 Texturing apparatus of solar cell 2009-0081405 the R&D activity2 Texturing apparatus of solar cell 2009 0081405

3 Etching method using shadow mask 2009-0081468

4 Ingot manufacturing method for solar cell 2009-0081547

5 Inspection apparatus of deterioration phenomena of solar cell 2009-0081559p

6 Co-firing method for solar cell 2009-0081566

7 Tray pin structure for seating wafer 2009-0081762

8 Conveying apparatus for silicon wafer 2009-0081774

9 Tester of solar cell 2009 00817869 Tester of solar cell 2009-0081786

10 Squeegee holder for paste printing of solar cell 2009-0081793

11 Metal terminal forming method solar cell 2009-0081794

12 Paste metalization method for solar cell 2009-0082852

Strictly Confidential - 41 -Certificate of Patent

13 Silicon leaching apparatus 2009-0082862

14 Paste metalization method for solar cell 2009-0082871

Competitiveness

Awards and certificates

ISO 9001 ISO 14001 Component NRE specialized material specialized company

company

2008, 2009

2009 20 million revenue export honoring award

2010 Daegu Star Company


Gran Prize for the Best NRE

Thank youThank you


solar business plan_2013_1gw_2010_sept(미리넷솔라)

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