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REC announced that it will invest $6.5billion to build the world largest solar manufacturing plant in Singapore.

REC announced that it will invest $6.5billion to build the world largest solar manufacturing plant in Singapore.

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Singapore Rec Singapore Rec Presentation Transcript

  • Renewable SINGAPORE PRESS CONFERENCE Renewable Energy Energy Corporation October 26, 2007 Corporation Silicon Silicon Materials Materials Wafers Wafers Cells Modules Cells Modules
  • Singapore Press Conference Disclaimer Oct. 26, 2007 This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC ASA and REC ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC’s businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although REC ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. REC ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. This presentation was prepared for the Singapore press conference on October 26, 2007. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation. The REC shares have not been registered under the U.S. Securities Act of 1933, as amended (the quot;Actquot;), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. 2 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference The world’s most integrated solar energy company Oct. 26, 2007 Wafers Cells Modules Silicon Materials Casting and cutting Surface treatment Assembly Installation and operation Chemical process 3 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Solar energy opportunity Oct. 26, 2007 Oil Coal Gas Nuclear Hydro Bio Wind PV Solar - other Other Unlimited renewable 1 800 source of supply 1 600 Increasingly cost 1 400 competitive 1 200 Decentralized power (EJ/Year) 1 000 source 800 Peak power at peak 600 time of usage 400 Environmentally 200 friendly 0 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 Source: solarwirtschaft.de Declining stock of fossil fuels, climate changes and increasing competitiveness of PV systems will boost usage of solar energy over the next century 4 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Centralized versus distributed power generation Oct. 26, 2007 Power plant Transmission grid Transformer Distribution grid Customer Price to customer Capital cost & power loss Capital cost & power loss Capital cost & power loss Cost Cost Gross margin Cost Cost Cost Wind Local PV systems cogeneration Gas PV systems Hydro Nuclear Coal 5 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Broad range of solar power applications Oct. 26, 2007 Market size and segmentation by application Grid connected MWp 2 000 On Grid Off Grid 1 800 1 600 Residential buildings Commercial buildings PV power plants 1 400 88 percent of market 1 200 1 000 Off grid 800 600 400 200 Home systems Water pumping Telecom Space 0 12 percent of market 2001 2002 2003 2004 2005 2006 Source: Marketbuzz, 2007 6 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Oct. 26, 2007 Renewable REC GROUP Energy Corporation 7 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC has outpaced the industry’s explosive growth Oct. 26, 2007 5 000 Aquired 4 500 ASiMI 4 000 Start 3 500 production in ScanCell Start Aquired 3 000 production in SiTech ScanModule 2 500 2 000 Established Start 1 500 Solar Grade production in Silicon ScanWafer 1 000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Capacity expansions 8 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC Group facts Oct. 26, 2007 Headquarters in Oslo Production facilities: 3 sites in Norway, 2 in the USA, 1 in Sweden 1/3 JV ownership of EverQ in Germany ~1 650 employees ~600 in REC Silicon ~600 in REC Wafer ~400 in REC Solar ~ 40 in REC Corporate ~900 employees in EverQ 9 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Unchanged production target, except within REC Silicon Oct. 26, 2007 Q3 2007 106 MW multi 12 MW cells Production ~1 500 MT polysilicon 10 MW mono 9 MW modules +4 % +52 % +11 % 2007 versus 2006 First nine months 2007 337 MW multi 35 MW cells Production ~4 200 MT polysilicon 28 MW mono 31 MW modules -1% + 75 % + 40 % 2007 versus 2006 Targets 2007 ~465 MW multi ~50 MW cells Production ~5 700 MT polysilicon ~35 MW mono ~45 MW modules 10 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC Group - Financial highlights Oct. 26, 2007 Revenues (NOK million) EBITDA (NOK million) EBIT (NOK million) Margin: 43 % Margin: 33 % - 3%p - 4%p 1 800 1 000 800 900 1 600 700 800 1 400 600 700 1 200 500 600 1 000 500 400 800 400 300 600 300 200 400 200 100 200 100 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 85 131 250 364 367 474 755 857 2005 53 88 185 275 2005 2005 380 387 522 676 872 1003 1139 1320 2006 298 303 422 552 2006 2006 869 812 643 1616 1673 1480 2007 737 679 495 2007 2007 Growth: +85 % +67 % +30 % Growth: +129 % + 110 % + 23 % Growth: +147 % +124 % +17 % 11 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Oct. 26, 2007 Renewable WAFERS, CELLS AND MODULES Energy Corporation 12 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Producing multicrystalline wafers with proprietary technology Oct. 26, 2007 The resulting Solar grade silicon is first put massive ingot is cut in crucibles… into 16 blocks... ...and melted in special furnaces Then cooled from the ...each again bottom; crystallization sliced into leaf- begins.. thin wafers ...and Producing the multicrystalline thinnest wafers in silicon is formed Europe 13 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC Wafer – Bringing market leadership further Oct. 26, 2007 Wafer production* (MW/year) Additional 650 MW of new capacity 1 800 from two new wafer plants under SiTech Glomfjord extention construction at Herøya, Norway 1 600 SWH III & IV As is & under ramp-up 110 MW of new capacity through 1 400 extension of existing plant in 1 200 Glomfjord, Norway 1 000 275 MW mono wafer capacity in 800 Glomfjord, Norway 600 400 200 0 2006 2007e 2008e 2009e 2010e * Efficiency assumptions: 15% multi and 20% mono Wafer production capacity will exceed ~1 600 MW from 2010 14 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference From wafers to modules … and into the market Oct. 26, 2007 Screen printing Wafer Soldering Wet chemistry Encapsulation Doping and testing Anti reflective Distribution coating 15 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC Solar – Climbing up the ranks Oct. 26, 2007 180 MW of new cell capacity in Narvik Cell and module production (MW/year) Additional 105 MW module capacity in 250 Glava, Sweden Cell Module Further growth initiatives will focus on: 200 – Economies of scale – Increased level of automation 150 – Proprietary technology development JV, M&A, toll-production and 100 outsourcing opportunities being evaluated 50 0 2005 2006 2007e 2008e 2009e 2010e 16 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Oct. 26, 2007 Renewable MAIN FOCUS AREAS Energy Corporation 17 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Main focus areas Press Conference 1. Cost competitiveness of PV electricity, slide 1 of 2 Oct. 26, 2007 1.0 900 hrs/year: ~0.50 €/kWh 0.8 1 800 hrs/year: ~0.25 € /kWh 0.6 (€/kWh) 0.4 0.2 0.0 1990 2000 2010e 2020e 2030e 2040e Photovoltaic Utility peak cost Bulk cost Source: REC, based on EC Vision Report 2005 (EPIA: Towards an Effective Industrial policy for PV (RWE Schott Solar)) 18 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Main focus areas Press Conference 1. Cost competitiveness of PV electricity, slide 2 of 2 Oct. 26, 2007 REC 2010 cost road map REC Silicon targets ~60 percent Figures in % reduction in polysilicon cost input 100 % – Main benefits will be derived from the 90 % FBR-plant and lower consumption Polysilicon 80 % REC Wafer targets ~50 percent 70 % reduction in wafer conversion cost Wafer 60 % – Achieved ~15 percent in 2006 50 % – Further advanced technologies to be implemented in new production lines 40 % Cell REC Solar targets significant 30 % reduction in cell and module cost 20 % input Module 10 % – Achieved ~10 percent in cell and ~5 percent in module in 2006 0% World Class REC 2010 – Further advanced technologies to be 1 2 2005 Ambition implemented in new production lines Source: REC Note 1: Cost structure as cost per watt of modules, based on world class production 2005 Note 2: Cost structure as cost per watt of modules, relative to 2005 level 19 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Main focus areas Press Conference 2. Technology development Oct. 26, 2007 REC REC Wafer Silicon Furnace technology Silane technology Automated wafering Unsurpassed polysilicon processes purity Thin wafers New polysilicon technology breakthrough (FBR) REC Solar State-of-the-art production technologies High level of automation 20 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Main focus areas Press Conference 3. Organizational development Oct. 26, 2007 Putting safety first Leveraging organizational capacity and effectiveness Infusing, retaining and developing talent Enhancing goal- and result-orientation at all levels Focusing on strong leadership capability Embracing diversity while Building a unified team Living our Values! 21 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Expansion projects – schedule on track Oct. 26, 2007 Project Capacity Investment 2007 2008 2009 2010 Moses Lake 6 500 ton (865 MW) USD 660m Butte 1 000 ton (135 MW) USD 50m Moses Lake/Butte 6 000 ton (800 MW) USD 485m Herøya III 325 MW NOK 1 250m Herøya IV 325 MW NOK 1 250m Glomfjord (multi) 60 MW NOK 140m Glomfjord (multi) 50 MW NOK 200m Glomfjord (mono) 275 MW NOK 1 350m Narvik 90 MW + 90 MW NOK 700m Glava 55 MW SEK 110m Glava 50 MW SEK 74m Planning/Construction Ramp up Full production 22 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Oct. 26, 2007 SINGAPORE SELECTED FOR Renewable Energy NEW SOLAR SITE Corporation 23 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Comprehensive process towards selecting Singapore Oct. 26, 2007 A long process - of nine months Screening of more than 200 possible locations in 18 countries on 3 continents Due diligence of almost 20 locations and Final negotiations with a handful of sites 24 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Singapore – Key rationale Oct. 26, 2007 Singapore Agreement signed with the Singaporean governmental agency Economic Development Board – Located in Tuas View in West Singapore – 30 minute drive from the centre of Singapore City REC has finalized a comprehensive Singapore support package, including incentives and grants – Tax Tuas City View Centre – R&D and process improvement – Human resource recruitment and training Singapore represents the ideal balance between financial return, risks and future opportunities 1:350 000 10 kilometer 25 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference REC activities in Singapore Oct. 26, 2007 Birds Eye View from South – West Manufacturing – Solar wafers – Solar cells – Solar modules R&D activities, incl. – Process innovation – Factory automation Solar value chain cost optimization processes Incorporates utilities, infrastructure and support facilities, as well as an on-site supplier park 26 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Worldscale integrated solar manufacturing complex Oct. 26, 2007 Street View from South – West Site description – Possibly the world’s largest integrated solar manufacturing complex Complex will be integrated – Will be developed in stages – Production capacity may reach 1.5 GW – Value chain will not be balanced – Investment could reach around EUR 3 billion over 5 years – Total number of employees could be around 3 000 people Pre-engineering has commenced – First investment decision will be taken when pre-engineering is completed Production expected to start no later than 2010 27 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Exciting careers in a future oriented industry Oct. 26, 2007 Great need for competencies – Engineers and technicians – Skilled production operators – Business managers Comprehensive training programs Planned collaboration with Singapore research institutions 28 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007
  • Singapore Press Conference Oct. 26, 2007 Renewable Delivering on the promise of solar Energy Corporation 29 © Copyright 2007 Renewable Energy Corporation ASA. All Rights Reserved ⎮ Oct. 26, 2007