Suntech

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Suntech

  1. 1. Suntech Power Holdings Co., Ltd.2010 Corporate Report
  2. 2. Contents04 Chairman’s Letter10 Global Markets16 Technology Leader18 Global Vision, Global Impact20 Selected Financial Data22 Experienced International Leadership23 Corporate Information
  3. 3. The sun delivers enough energy in60 minsto meet global energy needs for anentire year. Shelburne Farms solar array, Vermont. Photo by Neil Dixon
  4. 4. CHAIRMAN’S LETTERDear Partners andShareholders2010 was another landmark balance of cash and cash expectations. In early 2010, fact, Suntech is now theyear for Suntech and the solar equivalents of $872.5 million many solar analysts estimated leading vendor to seven ofindustry. The most productive as of December 31, 2010, and a 10GW market. Looking back the top ten European VARs,period in Company history, we achieved 1.8GW (gigawatts) from a 2011 vantage point, it which combined account forSuntech shipped more of PV cell and module capacity was closer to 18GW (gigawatts), approximately 80% of thethan 1.57GW (gigawatts) of and 500MW (megawatts) of around 2.5 times more than distribution market in Europe.solar product, representing silicon ingot and wafer capacity in 2009. While there was moregrowth of 123% over 2009 as of year-end. than enough growth to fuel In 2011, this concentrationand elevating Suntech to our business, we continued to of demand in Europe is setthe number one supplier of Operationally, we implemented execute our strategy to address to change. While Europe willsolar panels worldwide. We a number of important not just today’s market, but continue to be the foundationcould not have achieved changes to our business tomorrow’s and that of the of solar demand, we expectthis without our customers, model. We developed channels next decade. The focus of this shipments to that region toour employees, and most into emerging markets and strategy was, and continues to represent only 53% of ourimportantly, governments’ established unprecedented be, “diversification”. 2011 total. In its place, we’regrowing realization of the need geographical diversification; excited by the prospectsto diversify the global energy extended our vertical Several countries in Europe, and opportunities that arelandscape. integration into the wafer most notably Germany, have emerging in the Americas and segment of the value chain; been the solar industry’s most the APMEA region – the AsiaFinancially, we generated broke new ground in solar stalwart supporters and it is no Pacific, Middle East and Africa.strong returns. Net revenues technology; and delivered surprise that in 2010 roughly With Suntech’s global brandtotaled $2.9 billion in 2010, what customers value most – 66% of our revenues were recognition, built throughrepresenting 71% growth bankable solar. generated from shipments long term investments in theseyear-over-year, and net income to European customers. We high growth markets, we areattributable to holders of MARKET SHARE GROWTH continued to address European perfectly positioned to addressordinary shares was $236.9 AND DIVERSITY demand through our network these prospects.million, or $1.30 per diluted of loyal value-added resellersAmerican Depositary Share The growth of the global solar and partnerships with tier In the Americas, we continued(ADS). We maintained a strong market in 2010 far exceeded one project developers. In to improve our position in 2010,4 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  5. 5. 1.57 gigawatts of solar panels shipped$2.9 billionin revenues 20,200 employees 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 5
  6. 6. Suntech shipped more than 1.57 gigawatts of solar product, representing growth of 125% over 2009 and elevating Suntech the number one supplier of solar panels worldwide.6 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  7. 7. shipping more than 250MW Secondly, it will lead to TECHNOLOGY INNOVATION 80 countries, we have(megawatts) of solar product production and efficiency accomplished a lot in nineto rank as the top supplier of synergies through integrated Central to Suntech’s success years of operations. However,solar panels to this region. In research and development is our ability to push solar with less than 1% of the world’s2011, we expect solar demand initiatives, enhancing our technology to the next level. energy production comingin the Americas to more than internal expertise in all aspects And in 2010, we raised the bar from solar, the challengedouble in size. We intend to of ingot and wafer production. in all facets of our business. In remains for Suntech to reallygrow our shipments in tandem the factory, we optimized our revolutionize the global energyand maintain market share of Thirdly, by expanding wafer manufacturing processes and industry. To do this, we needaround 20%. capacity to 50% of our total introduced in-house designed big goals. The most important solar module capacity, it will automation equipment. In cell of these is to achieve retail gridOutside of the Americas and enable Suntech to balance technology, we transitioned parity in 50% of global marketsEurope, we continued to see our dual priorities of large our high efficiency Pluto by 2015.growth in the APMEA markets scale and low cost. By year- technology into massin 2010. We have established end 2011 we expect to reach production, producing 50MW We are confident we haveleading market share in 1.2GW (gigawatts) of installed (megawatts) of Pluto panels the right strategy to makeThailand, Australia, and Israel; wafer capacity, matching during the year – and in 2011 this happen. In 2011 we planand continue to expand our approximately one-half of our we intend to quadruple that to ship more than 2.2GWpresence in China, India, target cell and module capacity production. We also launched (gigawatts) of solar panelsJapan and the Middle East. of 2.4GW (gigawatts). wafer R&D initiatives that will globally, an increase of aroundFollowing a rapid decrease in optimize the composition of 40% from 2010. We will expandthe levelized cost of energy Another key initiative launched our silicon wafers, leading production of the high-over the past two years, we in 2010 is our joint venture with to even greater product efficiency Pluto technology;expect APMEA will be a vibrant two Wuxi-based companies consistency and performance. leverage wafer production toregion in the years to come to jointly own and operate drive down cost; and continueas solar becomes increasingly a 1.2GW (gigawatts) PV cell But our innovation wasn’t to invest in our brand andcompetitive with incumbent production facility located confined to our global R&D global sales network. In doingenergy sources. at our Wuxi campus. This labs. In addition to product so, we intend to maintain JV will enable us to more quality and manufacturing market leadership and provideCRYSTALLINE SILICON SOLAR effectively leverage our capital excellence, we continued to the right solar solutions to— DOING WHAT WE DO BEST to expand capacity. Suntech innovate in channel marketing, protect our world’s future. will provide technology and sales support, customerIn an increasingly competitive train the management team service, warranty and corporate We appreciate your continuingmarket, it is important to focus for this facility so that we social responsibility, and these support of our efforts toon what we do best. In 2010, can ensure the solar cells remain high priorities in 2011 address the twenty-firstwe did just that by refocusing meet our stringent quality and beyond. century’s energy challenge andour business on crystalline and performance standards. power a green future.silicon solar products. We We plan to achieve 600MW In 2011 we will continueexited the thin film business, (megawatts) of cell capacity to invest in R&D initiativesand enhanced our business by the middle of 2011 across the spectrum of Sincerely,model by becoming a vertically with the second phase of manufacturing steps – fromintegrated producer of silicon 600MW (megawatts) to be silicon material quality, to cellwafers through to solar panels. completed in line with demand and module performance, to projections. system optimization. All ofOur acquisition of 375MW these initiatives are aimed at(megawatts) of wafer These initiatives leverage reducing cost and improvingmanufacturing capacity is a low Suntech’s core competencies quality and performance. Dr. Zhengrong Shirisk strategy that will benefit in crystalline silicon Founder, Chairman and ChiefSuntech in three key areas. technology development and 2011 AND BEYOND Executive OfficerFirstly, it will materially reduce manufacturing, and will allow Suntech Power Holdings Co., Ltd.our silicon wafer costs and us to grow efficiently and With more than 15 millionimprove the earnings potential profitably. Suntech panels generatingof our business. energy in more than 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 7
  8. 8. #1 PV module supplier in 20108 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  9. 9. More than15 millionpanels shippedsince inception Suntech panels generate enough energy to power Kenya 2nd largest global clean-tech employer 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 9
  10. 10. Global MarketsThe global PV market Pacific, Middle East and Africa. 123% growth year-over-year, technology. In fact, we expectsurpassed its own record of and market share leadership close to 50% of products to be7.4GW of installations set Within this environment, in 2010. directed to these markets inin 2009 by an astounding Suntech continued to invest 2011, up from 34% in 2010, and10.8GW to reach 18.2GW of in building our regional sales Regional leadership also 26% in 2009. The trend is clearinstallations in 2010, based on structure to support globally enabled Suntech to increase – as solar marches down thedata from 2011 MarketBuzz. coordinated, but regionally our global diversification cost curve, elasticity of demandThis explosive growth was independent decision making and the realignment of our stimulates both the size andlargely fueled by the rapid and service delivery to our business towards the growth number of markets. With globaldrop in solar module prices customers. This strategy has markets of the future. While brand recognition and diversesince 2008 resulting in strong proven successful in providing Europe remains the #1 sales channels, Suntech is in ansolar economics across substantive support for our destination for Suntech panels, excellent position to benefitEurope. It was also driven by customers in local languages markets across the Americas from this trend.unprecedented growth in and local time zones. The result and APMEA are becoming themarkets in the Americas, Asia was 1.57GW of solar shipments, next major adopters of solarMOST DIVERSE SOLAR PLAYER Europe 2009 74% 66% 53% 2010 Americas 2011E APMEA 16% 19% 22% 10% 15% 25%2011 Market Source: Internal Suntech estimate based upon Barclays, Citi, Cowen, Greentech Media, Jefferies, Photon, Solarbuzz, and UBS10 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  11. 11. Bankability matters — customers realize they arebuying a 25-year relationship, not just a solar panel. Sunset Reservoir solar array, San Francisco. Photo courtesy of Recurrent Energy. 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 11
  12. 12. Ferrisburgh solar array, Vermont. Photo by Neil Dixon.EuropeEurope maintained its lead 250,000 households across largest demand for solar,as the largest market for Europe. installing 7.7GW of PV systemssolar energy in 2010 as in 2010. Italy exceededit added an incremental We continued to address this all expectations due to a14.7GW of solar installations, demand by partnering with generous subsidy program,representing approximately best-of-breed value-added and France, Benelux, and81% of the global total. To resellers and EPCs that have Greece continued to buildaddress European markets, mature channels to marketwe continued to expand the and the capabilities to grow Our strategy has enabled Suntech to provideresources and capabilities of their businesses in line withour regional headquarters in Suntech. One notable exampleSchaffhausen, Switzerland and is our framework agreement a comprehensive suite of services to ourour country offices throughout with Siemens Energy, whichEurope. This strategy has has secured orders for 80MW European customer base, similar to a localenabled Suntech to provide of PV plants from six differenta comprehensive suite of countries. In addition, we company.services to our European signed two-year agreementscustomer base, similar to for 175MW with two leading sustainable solar markets.a local company. It also Italian solar companies, both of In 2011, in addition tosupported Suntech becoming which are focused on the roof- these markets, the UK andthe first solar company to top segment of Italy’s solar Bulgaria are expected toship more than 1GW of market, which we expect to be develop a healthy base ofsolar products to European the focus of solar incentives in solar installations, furthermarkets in 2010, at a rate of coming months and years. diversifying the European solarclose to 3MW per day. These landscape.products can generate enough Within Europe, Germanyelectricity to power more than continued to generate the12 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  13. 13. Suntech U.S. manufacturing facility, Arizona.The AmericasSuntech’s investments in the this will grow to greater than progressive subsidy scheme to facility in China that was builtAmericas began in 2006, and 50% in 2011. support solar adoption and we in 2001. The 117,000 squarein the short time since then we have strategically partnered foot facility features state-of-have become the #1 supplier of We are particularly excited with Calisolar, an Ontario based the-art manufacturing andsolar panels in 2010, with more about some of the recent wins silicon provider, to help address testing equipment and willthan 250MW of shipments. in the project market. These this market. We have also initially focus on producing include agreements with some opened local offices in Canada Suntech’s 280W Vd-seriesTo address the residential of the largest names in solar and Latin America to minimize modules, primarily used forand commercial segments, that give us clear visibility for physical and cultural barriers commercial and utility-scaleSuntech continued to expand 80% of our shipments to the and support our exciting electricity generation.an international sales network, utility segment in the Americas. prospects for growth.which now incorporates close Crowning this multi-year push All modules produced at theto 400 dealers. Due to supply into the utility solar market was In 2011, we expect solar facility will be compliant forconstraints, we were only Suntech and Zachry’s recent demand in the Americas to procurement in Americanable to provide product to selection by Sempra to design more than double in size. We Recovery and Reinvestmentabout 150 of these dealers in and construct a 150MW AC intend to grow our shipments Act (ARRA) projects. Suntech2010, which means that there project in Arizona. This will in tandem and maintain market plans to expand the facility, inis significant opportunity to involve the delivery of over share of around 20%. concert with the growing U.S.increase market penetration. 800,000 panels from 2011 solar industry, to reach up to through 2013. To support the expansion of 120MW of annual productionThe other key market segment our business in the Americas, capacity.is utility solar, and here Suntech We are also excited to see we opened our first U.S.has quickly established itself the market of the Americas manufacturing plant inas a leading player. Roughly expand beyond the United Goodyear, Arizona. With 50MW30% of our shipments to the States and into Canada and of manufacturing capacity, theAmericas serviced this segment Latin America. The Canadian plant is five times the size ofin 2010, and we expect that province of Ontario has a our first module production 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 13
  14. 14. Sydney Theatre Company rooftop solar system, Sydney. Photo by Grant Sparkes-Carroll.Asia Pacific, Middle East and AfricaAs solar energy becomes of our 2010 revenue from the Region as well as the world’s traditional energy sources.increasingly affordable for Japanese market. We expect highest solar power plant Suntech is a pioneer in thesedeveloping nations, we this figure to continue to grow in the Tibetan Autonomous markets and we were selectedexpect the Asia Pacific, Middle in 2011 as Japan reconsiders Region. As we continue to to supply Thailand’s largestEast and Africa (APMEA), to its reliance on nuclear and offer our turnkey engineering solar project of 44MW in 2010.demand greater access to our fossil fuels as a source for services that couple our high Much of Africa and South Asiaproducts. Leading the way electricity generation and quality solar modules with still rely heavily on diesel, peat,in this part of the world is increases its use of renewable our in-house engineering or wood burning to generateJapan, which has long been energy. expertise to generate the electricity and displacementone of the largest markets most competitive levelized of these inefficient electricity cost of energy (LCOE) for our generators represent a customers, we are confident significant market opportunityLong term fundamentals for solar energy we will secure a meaningful for solar. share of the China market.are stronger than ever and we expect to see Across these continents, Tropical and subtropical we are part of the biddingwidespread adoption of our products. regions through Asia, the process to supply hundreds Middle East, Africa, and of megawatts to large scaleand a longtime proponent of China is another market which Oceana represent ideal areas projects. Due to Suntech’ssolar adoption. The Japanese has shown considerable for solar use due to their high scale, bankability andmarket has traditionally potential for solar adoption levels of solar irradiation. unmatched track record,been dominated by local that we believe will double in Projects we have supported many large scale EPCs andcompanies, but through 2011 to over 1GW. Suntech in India and Thailand benefit developers are turning toour strategic partnerships has a strong track record in from upwards of 2,000 Suntech as the reliable partnerand business development China, having built the first hours of annual sunlight of choice.initiatives, Suntech was able utility scale solar power plant leading to an LCOE that isto generate approximately 5% in the Ningxia Autonomous very competitive with other14 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  15. 15. Choosing Suntech — The Bankability FactorCustomers choose us because For our customers, this means upon Suntech modules toSuntech products continue to that if they choose Suntech perform in line with ourbe recognized as among the modules then they are more specifications, if not better.most bankable in the industry. likely to receive project For a solar project that costsWith solar panels, customers financing than if they use tens of millions of dollars andhave come to realize that less-well recognized products. for which returns dependthey are buying a 25 year Secondly, it often means that on consistent power outputrelationship, and not just a they are able to achieve a lower over 25 years, this is criticallyproduct. From a financing cost of capital compared to important.perspective, the banks know other brands. Thirdly, it meansthis as well. that customers can depend Arizona State University carport solar system, Arizona. Photo courtesy of APSES. 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 15
  16. 16. Technology LeaderAs an entrepreneurial company global R&D team comprising have the potential to scale at the tools to directly influencein an emerging field, there are more than 450 professionals the same pace as Suntech. the quality and performancemany challenges that we face. across 4 continents. Our Cost-effective scaling of of wafers used in SuntechHow do we increase our scale? investment in R&D has grown solar will help bring solar to panels. In 2011, we expect toHow do we automate our at a compound annual growth everyone under the sun. make rapid progress on waferfacilities? How do we enter new rate of 50% from $15mm in technology initiatives includingmarkets? How do we reduce 2008 to over $40mm in 2010. Along the way, we have broken wafer thickness reduction,our cost? And the achievements of multiple world records for material composition, the team are reflected in the leading conversion efficiency consistency, and siliconOf all these questions, performance and quality of the on mono-crystalline and multi- recycling. All will contribute toanswering this last question is modules that we produce. crystalline substrates. better quality, lower cost andkey to the ultimate success of improved performance.solar, and one that Suntech is All of Suntech’s R&D programs Our acquisition in 2010 of ainvesting heavily in. It is clear have a clear goal – reducing silicon wafer manufacturing In the factory, we optimized ourthat the answer is “innovation”. the cost of solar energy by facility will also help to manufacturing processes and increasing the performance of accelerate our path to introduced in-house designedUnder the guidance of our solar cells and panels on readily lower cost. Since Suntech’s automation equipmenttwo leading scientists Dr. available substrates. Rather inception we have supported enabling us to continueStuart Wenham and Suntech’s than break the efficiency a specialized R&D group to reduce manufacturingfounder Dr. Zhengrong Shi, barrier with rare metals and focused on silicon wafer headcount. For example in cellwho have more than 50 years expensive manufacturing optimization. This team that manufacturing we only requirecombined experience in solar processes, we aim to do the previously provided expertise 2.7 people per MW, down fromresearch and development, same utilizing materials that to our upstream silicon wafer 4.1 people per MW in 2008.Suntech has assembled a are easily accessible, and which suppliers, will now have all In cell technology, we continued to transition our high efficiency Pluto ACHIEVED AND TARGET CONVERSION EFFICIENCIES technology to mass production and produced 50MW of Pluto- 26% Commercial Grade P-Type Mono powered panels during 2010. 280 With cell efficiencies exceeding 260 19% for mono-crystalline cells 23% and 17% for multi-crystalline CONVERSION EFFICIENCY World Record 240 cells, these solar panels are MODULES WATTS some of the most powerful 20% 220 in the market and extremely Power Output (72 cell modules) attractive to our customers. 200 The increased power per Lab square inch better leverages 17% 180 real estate and reduces balance Pilot of system costs, leading to 160 better returns for the investor Large scale 14% 2008 2009 2010 2011E 2012E 2013E 2014E 2015E and a lower electricity bill for the residential home owner. In Consistently leading industry in conversion efficiencies achieved using commercial grade P-type mono- 2011, we intend to more than crystalline silicon wafers. quadruple Pluto production and deliver this cutting-edge16 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  17. 17. ACTUAL POWER OUTPUT 6.5% HIGHER THAN PROJECTED* ACTUAL POWER OUTPUT 11% HIGHER THAN PROJECTED* Location: Southern Europe Location: West Coast, USA Climate: Temperate, Diffuse Climate: Temperate, Diffuse SYSTEM DETAILS SYSTEM DETAILS System Size: Utility (<5 MW) System Size: Commercial (<500 kW) Date of Commission: November 2009 Date of Commission: January 2009 Modules: STP270-24/Vd-1 STP 280-24/Vd-1 Modules: STP 210W Inverters: SMA SMC 11000 TL Inverters: Satcon PVS135 Mounting: 30° Fixed Tilt Mounting: Rooftop Fixed Tilt PVSYST Predicted Annual PR= 83.2% PVSYST Predicted Annual PR= 75.4% Actual Annual PR = 84.8% Actual Annual PR = 83.7% 100% 35,000 100% 450,000 90% 90% 30,000 400,000 80% 80% MONTHLY ENERGY (kWh) MONTHLY ENERGY (kWh) 350,000 25,000 70% 70% MODULES WATTS MODULES WATTS 60% 300,000 60% 20,000 50% 250,000 50% 15,000 40% 200,000 40% 30% 10,000 30% 20% 150,000 5,000 20% 10% 100,000 10% 0 0% 50,000 9 0 9 9 9 9 9 0 0 9 9 0 0% ‘1 ‘0 ‘0 ‘0 ‘0 ‘1 ‘0 ‘0 ‘1 ‘1 ‘0 ‘0 FEB ‘10 MAR ‘10 APR ‘10 MAY ‘10 AR AY V G CT R EC N N B P L O AP AU JU FE SE JA JU M M D O N Adjusted PVSYST Actual Energy Performance Adjusted PVSYST Actual Energy Performance Prediction Ratio Prediction Ratio * PVSYST prediction adjusted to account for actual insolation and system downtime.technology to customers the accelerate solar system PERFORMANCE IN THE FIELD and ammonia heavy farmworld over. installation, and improve safety. locations across Europe, we track When all is said and done, it the performance of SuntechAt the module level, Suntech But our innovation is not is critical that our solar panels products in the field.is working to create modules confined to our global R&D deliver energy as predictedthat are larger, lighter, smarter, labs. In addition to product year in, year out for at least The results speak for themselves.and requiring fewer materials. quality and manufacturing 25 years. We need to deliver Time and again, Suntech’sTo help drive this evolution, excellence, we continued to energy to our customers as panels outperform expectations,we collaborate with a range innovate in channel marketing, promised. That’s why we delivering more power at a lowerof technology partners that sales support, customer proactively measure the power cost. Our reputation is built uponbring specialized expertise and service, warranty and corporate output of installations using this exceptional performance,support. One such initiative is social responsibility, and these Suntech products in a myriad and these examples explain whythe development of a ‘smart’ remain high priorities in 2011 of environmental conditions customers partner with Suntech,panel that has the potential and beyond. all over the globe. From the and why banks continue toto maximize energy output sands in the Gobi Desert, to the finance Suntech-poweredunder different environmental heavy snow loads in a German projects at favorable rates.conditions, simplify and winter, to salty coastal environs, 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 17
  18. 18. Global Vision, Global ImpactIn 2010, Suntech became one of the first global solar companies toachieve both SA8000 and OHSAS18001 certifications, representing ourworld-class environmental, health and safety (EH&S) standards. Off-grid solar project for water purification system, Congo. Photo courtesy of DynGlobal.In 2010, Suntech shipped employees working in more environmental crisis. Youth Innovation Competitionmore than seven million than a dozen countries and brought solar technologysolar panels (representing representing scores of cultures For example, we donated into thousands of classrooms1,572MW) to individuals, and ethnicities, Suntech takes solar panels to the Sega across China reaching tensbusinesses, government, and great pride in the influence Girls School in Tanzania, of thousands of students. Incommunities around the world. and impact we have on where the clean electricity is addition, in June 2010, Al GoreOur operations are helping communities and societies helping to generate a more joined Dr. Zhengrong Shi forthousands of people to look around the world. Suntech is capable and self-sustaining the launch of our Low Carbonup and access nature’s cleanest keenly focused on promoting generation of young women. Concept Museum at our globaland most abundant energy childhood and advanced We provided solar panels headquarters in Wuxi. Theresource. education to foster the next below cost to McNeil High exhibition has already attracted generation of social leaders, School in Austin, Texas, where thousands of students fromBut our commitment to and solar engineers. Last year, the school’s new Green Club around the world to learn thesustainability goes well we made several strategic is educating the community intimate relationship betweenbeyond our products. With investments to raise awareness about our planet’s energy and energy and human civilization.more than 20,200 global for our planet’s energy and environmental crisis. Suntech’s18 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  19. 19. We will continue to make both SA8000 and OHSAS18001 took under review… The participates in several high-strategic investments to certifications, representing our structure is similar to ‘best profile initiatives to promotepromote education and world-class environmental, practice’ examples of other sustainable energy policiesaccelerate humanity’s health and safety (EH&S) industries and shows a strategic as well as environmental andtransition towards a more standards. At the end of the interest. Our visit at Suntech climate protection. Thesesustainable and responsible year, representatives from revealed high standards for platforms include the Unitedway of living. In that process, Murphy&Spitz, one of the most occupational health and safety, Nations Secretary-Generalwe don’t want to just replace experienced sustainability environmental protection and Advisory Board on Energyold problems with new ones. investment firms in Germany, social aspects.” and Climate, the CopenhagenWe are working to create reviewed Suntech’s EH&S Climate Council, the Climate SEGA Girls School, Tanzania. Photo by Sarah Bones.a scalable and sustainable management systems as well This recognition has inspired Group, the Prince of Wales’solar industry, embracing as those of other solar industry us to continue to set the bar Corporate Leaders’ Group onour environmental and social manufacturers around the higher. In 2011, Suntech will Climate Change, Vote Solar,responsibilities through the world. The recently-released release its first comprehensive and the Alliance for Climateentire production lifecycle. research report, Sustainability CSR report, which will Protection. In 2010, CEO Dr.Our goal is to get this right the and Social Responsibility of the outline our CSR standards Zhengrong Shi spoke at thefirst time. Photovoltaic Industry, outlines and processes and identify Clinton Global Initiative and global solar industry standards opportunities to improve the the World Economic Forum inSuntech is a leader in clean and identifies opportunities sustainability of our operations. Davos, among other events,production practices in for improvement. The We will continue to enhance the to advocate greater andthe solar industry and is comprehensive report praised efficiency of our operations to more strategic investments incertified with the ISO14001 Suntech’s EH&S practices and reduce waste and drive down renewable energy technologies.Environmental Management transparency: “The manner of the costs of solar electricitySystem. In 2010, Suntech also presentation and transparency generation.became one of the first global is unrivaled in comparisonsolar companies to achieve to the other companies we Beyond our operations, Suntech 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 19
  20. 20. SELECTED FINANCIAL DATAThe following selected consolidated statement of operations data for the five years ended December 31, 2010 and the consolidated balancesheet data as of December 31, 2006, 2007, 2008, 2009 and 2010 and the summary of our consolidated statement of cash flows for the threeyears ended December 31, 2010 have been derived from our audited consolidated financial statements, which have been audited by DeloitteTouche Tohmatsu CPA, Ltd., an independent registered public accounting firm. The report of Deloitte Touche Tohmatsu CPA, Ltd. on ourconsolidated financial statements as of December 31, 2006 and 2007 and for each of the three years in the period ended December 31,2010 can be found in our annual reports on Form 20-F filed with the United States Securities and Exchange Commission. You should readthe selected consolidated financial data in conjunction with those financial statements and the related notes and “Item 5. Operating andFinancial Review and Prospects” included elsewhere in our annual reports on Form 20-F. Our consolidated financial statements are preparedand presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. Our historical results do notnecessarily indicate our results expected for any future periods. YEAR ENDED DECEMBER 31, 2006 2007 2008 2009 2010 Consolidated Statement of Operations Data (in millions, except per share and per ADS data) NET REVENUES PV modules 471.9 1,331.7 1,785.8 1,606.3 2,766.3 Investee companies of GSF — — — 115.8 197.4 Others — — — 1,490.5 2,568.9 Others 127.0 16.6 137.7 87.0 135.6 Total net revenues 598.9 1,348.3 1,923.5 1,693.3 2,901.9 COST OF REVENUES PV modules 357.9 1,057.6 1,448.2 1,258.8 2,251.2 Others 92.1 16.6 132.4 95.7 146.9 Total cost of revenues 450.0 1,074.2 1,580.6 1,354.5 2,398.1 Gross profit 148.9 274.1 342.9 338.8 503.8 OPERATING EXPENSES Selling expenses 9.0 30.6 59.3 58.9 78.7 General and administrative expenses 26.8 44.5 85.8 76.9 125.1 Research and development expenses 8.4 15.0 15.3 29.0 40.2 Provision for prepayment to affiliates — — — — 8.0 Impairment of long lived assets — — — — 54.6 Total operating expenses 44.2 90.1 160.4 164.8 306.6 Income from operations 104.7 184.0 182.5 174.0 197.2 Interest income (expense), net(1) 5.5 (18.2) (73.5) (93.7) (91.9) Other income (expense) 0.6 (8.7) (76.7) 11.2 (94.4) Tax benefit expense (7.2) (13.2) (1.6) (2.5) (23.8) Net income after taxes before non-controlling interest 103.6 143.9 30.7 89.0 13.3 Equity in (loss) earnings of affiliates 1.0 (0.7) 0.3 (3.3) 250.8 Net income $ 104.6 $ 143.2 $ 31.0 $ 85.7 $ 237.9 Net loss (income) attributable to the non-controlling 1.4 2.7 1.4 (0.1) (1.0) interest Net income attributable to ordinary shareholders of 106.0 145.9 32.4 85.6 236.9 Suntech Power Holdings Co., Ltd. NET INCOME PER SHARE AND ADS — Basic $0.71 $0.96 $0.21 $0.50 $1.32 — Diluted $0.68 $0.91 $0.20 $0.50 $1.30 Shares used in computation — Basic 148.7 151.7 154.7 169.7 179.6 — Diluted 156.1 160.2 160.3 172.5 181.6 Other Consolidated Financial Data (in percentages) Gross margin 24.9 20.3 17.8 20.0 17.4 Operating margin 17.5 13.6 9.5 10.3 6.8 Net margin 17.7 10.8 1.7 5.1 9.1(1) Includes “interest expenses” and “interest income” contained in our consolidated financial statements included elsewhere in our annual report on Form 20-F. CONTINUED NEXT PAGE Ω20 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  21. 21. YEAR ENDED DECEMBER 31, 2006 2007 2008 2009 2010 Selected Operating Data Products sold (in MW) PV modules 121.1 358.8 459.4 675.1 1,521.9 PV cells 38.5 4.5 35.0 6.8 17.1 Total 159.6(1) 363.3(1) 494.4(1) 681.9(1) 1,539.0(1) Average selling price (in $ per watt) PV modules $ 3.89 $ 3.72 $ 3.89 $ 2.40 $ 1.82 PV cells $ 3.23 $ 3.06 $ 2.84 $ 1.03 $ 1.43(1) In addition to the 159.6MW, 363.3 MW, 494.4 MW, 681.9 MW and 1,539.0 MW of PV cells and modules that we sold in 2006, 2007, 2008, 2009 and 2010, respectively, we also sold PV system integration services which amounted to 0.5MW, 0.4 MW, 1.1 MW, 22.1 MW and 33.3 MW in 2006, 2007, 2008, 2009 and 2010,respectively. AS OF DECEMBER 31, 2006 2007 2008 2009 2010 Consolidated Balance Sheet Data (in millions) Cash and cash equivalents $ 225.5 $ 521.0 $ 507.8 $ 833.2 $ 872.5 Inventories 200.3 176.2 231.9 280.1 558.2 Accounts receivable 98.9 237.6 213.1 384.4 515.9 - Investee companies of GSF — — — 110.2 10.4 - Others 98.9 237.6 213.1 274.2 505.5 Advance to suppliers 79.4 61.4 56.9 48.8 84.4 Short-term investments — — — 200.8 — Amounts due from related parties — current — — 101.0 185.5 55.1 Property, plant and equipment, net 113.8 293.0 684.5 777.6 1,326.2 Long-term loan to suppliers 22.2 103.3 84.0 54.7 53.0 Long-term prepayments 132.3 161.7 248.8 188.1 213.8 Amounts due from related parties deemed to be — — 278.0 193.6 94.1 financial assets Total assets 1,098.0 1,967.0 3,206.9 3,983.7 5,217.1 Short-term borrowings 288.2 321.2 638.5 800.4 1,400.8 Total current liabilities 356.8 478.1 976.7 1,518.1 2,370.0 Convertible notes — 423.4 812.9 516.9 551.2 Accrued warranty costs 8.8 22.5 41.4 55.2 81.0 Total Suntech Power Holdings Co., Ltd. equity 652.5 811.4 1,225.9 1,598.1 1,867.7 Total liabilities and equity $ 1,098.0 $ 1,967.0 $ 3,206.9 $ 3,983.7 $ 5,217.1Cash FlowsThe following table sets forth a summary of our cash flows for the years indicated: 2008 2009 2010 (in millions) Net cash (used in) provided by operating activities $ (171.3) $ 292.9 $ (30.0) Net cash used in investing activities (641.8) (441.9) (238.6) Net cash provided by financing activities 795.2 479.4 303.0 Net increase (decrease) in cash and cash equivalents (13.2) 325.4 39.3 Cash and cash equivalents at beginning of the year 521.0 507.8 833.2 Cash and cash equivalents at end of the year $ 507.8 $ 833.2 $ 872.5 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 21
  22. 22. Experienced International LeadershipDR. ZHENGRONG SHI MR. DAVID KING MR. DAVID HOGGFounder, Chairman and Chief Financial Officer Chief Operating OfficerChief Executive Officer Before joining Suntech in 2011, Mr. King was Mr. David Hogg, the former head of Suntech’sA global authority in the solar industry, Dr. Shi the Chief Financial Officer and Treasurer of Europe operations, has more than twentyholds a Ph.D. in electrical engineering from Tetra Tech, Inc. (Nasdaq: TTEK), a leading years of experience in the solar industry.the University of New South Wales in Australia provider of consulting, engineering, Before joining Suntech in 2009, he was aand is the inventor for 15 patents in PV construction, and technical services for the founder of CSG Solar AG and led the companytechnologies. He has wide ranging experience resource management and energy markets. as CEO from 2004. After graduating fromin the industry with particular expertise in Prior to Tetra Tech, Mr. King served as Vice the University of New South Wales with athe commercialization of next generation PV President of Finance and Operations of Walt degree in mechanical engineering, Mr. Hoggtechnologies such as thin film. Disney Imagineering, and earlier, as Vice joined Unisearch and was responsible for President and Chief Financial Officer of the commercializing technologies developed by Asia Pacific region for Bechtel Group, Inc. the university’s solar research teams. Board of Directors Committees of the Board DR. ZHENGRONG SHI COMPENSATION COMMITTEE Founder, Chairman and Chief Executive Officer, Julian Ralph Worley Suntech Power Holdings Co., Ltd. Zhi Zhong Qiu MR. JULIAN RALPH WORLEY CORPORATE GOVERNANCE AND NOMINATING COMMITTEE Director, ShangPharma Corporation Julian Ralph Worley Former Director, Mandra Forestry Holdings Limited Zhi Zhong Qiu MS. SUSAN WANG AUDIT COMMITTEE Director, Altera Corporation Julian Ralph Worley Director, Nektar Therapeutics Susan Wang Director, RAE Systems Director, Premier, Inc. MR. ZHI ZHONG QIU Vice Chairman for Asia-Pacific and Chairman of Greater China, Barclays Capital Former Managing Director, ABN AMRO (Greater China) Founder and Chairman, Dragon Advisors Limited Chairman of DragonTech Ventures Founder and Chairman, Quartz Capital Companies MR. DAVID KING Chief Financial Officer, Suntech Power Holdings Co., Ltd.22 SUNTECH POWER HOLDINGS | 2010 CORPORATE REPORT
  23. 23. MR. ANDREW BEEBE DR. STUART WENHAM DR. HONGKUAN JIANGChief Commercial Officer Chief Technology Officer Chief Human Resources OfficerMr. Andrew Beebe joined Suntech in 2008, Dr. Stuart Wenham is a Scientia Professor With over twenty years of working experiencefollowing the company’s acquisition of EI and also serves as director of the Centre of in human resource and related areas, Mr.Solutions, a California-based regional solar Excellence for Advanced Silicon Photovoltaics Hongkuan Jiang joined Suntech earlier thisinstaller. Previously, he was the founder and Photonics, at the University of New South year as vice president of Human Resources.of Energy Innovations, a partner at Clean Wales in Australia. He is highly respected in the Prior to Suntech, he worked as a HR manager/Edge, a clean-tech consulting firm, and industry for his innovative solar research and director for several MNCs including Generalco-founder and CEO of Bigstep, one of the for his expertise in bringing solar technology Electric, Johnson & Johnson, and GDF Suez.world’s first small business e-commerce into commercial production. Mr. Jiang earned a PhD in internationalsolutions providers. Mr. Beebe holds a B.A. in political economy from York University,government from Dartmouth College. Canada and an M.A at the Beijing Institute of Foreign Affairs.Corporate InformationSUNTECH HEADQUARTERS SUNTECH AMERICA NYSE Symbol: STP9 Xinhua Road, 71 Stevenson Street, 10th FloorNew District, Wuxi San Francisco, CA 94105 Independent RegisteredJiangsu Province 214028, U.S.A. Public Accounting FirmPeople’s Republic of China Tel: +1 415 882 9922 Deloitte Touche Tohmatsu CPA Ltd.Tel: +86 510 8531 8888 Fax: +1 415 882 9923 30/F Bund CenterFax: +86 510 8534 3049 Email: sales@suntechamerica.com 222 Yan An Road EastCustomer Service Hotline: Shanghai 200002 +86 510 8531 7358 OTHER SUNTECH OFFICES WORLDWIDE People’s Republic of ChinaEmail: sales@suntech-power.com Australia Dubai ADR Depository BankSUNTECH EUROPE France BNY Mellon Shareowner ServicesSUNTECH POWER INTERNATIONAL LTD. Germany P. O. Box 11258Mühlentalstrasse 36 Greece Church Street StationCH-8200 Schaffhausen Italy New York, NY 10286-1258Switzerland Japan United StatesTel: +41 52 633 1290 KoreaFax: +41 52 633 1299 Spain Investor Relations ContactEmail: sales.europe@suntech-power.com Tel: +86 510 8531 8888 Fax: +86 510 8534 3321 Email: ir@suntech-power.com Website: www.suntech-power.com 2010 CORPORATE REPORT | SUNTECH POWER HOLDINGS 23
  24. 24. www.suntech-power.com

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