First Solar, Inc. · NASDAQ:FSLR

First Solar — Investor Day (September 2023)

94 slides from First Solar's investor day presentation, Sep 7, 2023

  1. Slide 1: First Solar Analyst Day 2023

    First Solar. First Solar Analyst Day 2023 LEADING THE WORLD'S SUSTAINABLE ENERGY FUTURE

  2. Slide 2: Cautionary Note Regarding Forward Looking Statements

    | Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of historical fact, are f

  3. Slide 3: Keynote: Analyst Day 2023 - Mark Widmar

    Keynote: Analyst Day 2023 Mark Widmar Chief Executive Officer

  4. Slide 4: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 4

  5. Slide 5: 2019-2020: Pivot from EPC, Development, O&M

    | 2019-2020: Pivot from EPC, Development, O&M © 2023 Copyright First Solar, Inc. 5 All GW nameplate capacity

  6. Slide 6: Long-Term Growth

    | LONG-TERM GROW TH BALANCED OPTIMIZED REPEATABLE INVESTED Business Technical & Manufacturing In Model Product Format Differentiation © 2023 Copyright First Solar, Inc. GROWTH ENERGY SCALABLE TECHNOLOGY PROFITABILIT Y EFFICIENCY DISTRIBUTED CERTAINT Y LIQUIDIT Y COST EFFICIENT RESPONSIBLE SOLAR 6

  7. Slide 7: Differentiation creates value, value creates profit pools

    | © 2023 Copyright First Solar, Inc. Southeast Asia Technology Energy Certainty of Pricing Distributed Domestic Responsible First Solar c-Si Advantage & Supply Manufacturing Supply Chains Solar Value Creation Differentiation creates value, value creates profit pools 7

  8. Slide 8: Customer testimonials

    | As we grow our pipeline, we want a trusted It’s crucial that we work with partners like partner that will not compromise on quality, First Solar that will deliver not only high its commitments, or principles, and that quality, responsibly made products, but partner is First Solar. also certainty o

  9. Slide 9: Manufacturing Expansion

    | 25 GW Manufacturing Plants Manufacturing © 2023 Copyright First Solar, Inc. Expansion 0.6 GW 2018 2019 2020 2021 2022 2023 2024 2025 2026 9

  10. Slide 10: © 2023 Copyright First Solar, Inc.

    | © 2023 Copyright First Solar, Inc. 10

  11. Slide 11: © 2023 Copyright First Solar, Inc.

    | © 2023 Copyright First Solar, Inc. 11

  12. Slide 12: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 12

  13. Slide 13: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 13

  14. Slide 14: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 14

  15. Slide 15: Technology Update - Markus Gloeckler

    Technology Update Markus Gloeckler Chief Technology Officer

  16. Slide 16: Vertically Integrated Manufacturing, Supply Chain, Responsible Solar

    © 2023 Copyright First Solar, Inc. Vertically Supply Chain Sustainability & Integrated Transparency Responsible Solar Manufacturing 16

  17. Slide 17: Vertically integrated manufacturing via continuous conveyor

    | © 2023 Copyright First Solar, Inc. circa 2006, vertically integrated manufacturing via continuous end-to-end conveyor 17

  18. Slide 18: © 2023 Copyright First Solar, Inc.

    | © 2023 Copyright First Solar, Inc. 18

  19. Slide 19: Maximize Energy Yield, Quality and Reliability

    | Maximize Energy Yield Prioritize Quality and Reliability © 2023 Copyright First Solar, Inc. Optimize for Utility-Scale 19

  20. Slide 20: Series 6 module

    | • Synergy with existing structure ecosystem • Environmental Social Governance (ESG) Recognition • First-of-its-kind warranty © 2023 Copyright First Solar, Inc. Up To 480 Watts 20

  21. Slide 21: Series 7 module

    | • In-market product with localized supply chain • Our most eco-efficient module to date • Platform for ecosystem innovation © 2023 Copyright First Solar, Inc. Up To 550 Watts 21

  22. Slide 22: The Energy Optimization Paradigm

    The Energy Optimization Paradigm

  23. Slide 23: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 23

  24. Slide 24: Efficiency is an Incomplete Measure of a Module's Competitiveness

    Module Attributes ▪ Efficiency ▪ Bifaciality ▪ Degradation Rate ▪ Shading Response ▪ Temperature Response ▪ Air Moisture Spectral Response Module Nameplate Efficiency ▪ Low Light Response 25˚C, 1 Full Sun, 1.5 air mass ▪ Incident Angle Response ▪ Light-Induced Degradation Project Design Attributes ▪

  25. Slide 25: Temperature response: efficiency delta from nameplate

    Module Attributes | ▪ Efficiency 10 ▪ Bifaciality Typical Field ▪ Degradation Rate Operating ▪ Shading Response 5 25˚C Standard Test Condition Temperatures ▪ Temperature Response Efficiency Delta from Nameplate (%) ▪ Air Moisture Spectral Response ▪ Low Light Response 0 ▪ Incident Angle Response ▪ L

  26. Slide 26: Degradation: efficiency from nameplate over years

    Module Attributes | ▪ Efficiency 105% ▪ Bifaciality ▪ Degradation Rate ▪ Shading Response 100% Efficiency Degradation from Nameplate ▪ Temperature Response ▪ Air Moisture Spectral Response ▪ Low Light Response More Lifetime 95% ▪ Incident Angle Response Energy ▪ Light-Induced Degradation 90% Project

  27. Slide 27: Watt-hours per watt: CdTe CuRe vs c-Si TOPCon

    Module Attributes | ▪ Efficiency Single Data Point CdTe CuRe c-Si TOPCon Watts ▪ Bifaciality Efficiency (Label Rating @ STC) ▪ Degradation Rate ▪ Shading Response *STC per IEC61215: 25C Temp, 1000W/m2 sun, AM1.5 spectrum ▪ Temperature Response ▪ Air Moisture Spectral Response Real World Performance

  28. Slide 28: Energy yield advantage, Southeast USA tracker project

    | Indicative Southeast USA Tracker Project Energy Yield (Percent) >4% More Energy © 2023 Copyright First Solar, Inc. Baseline: Degradation Bifaciality Temperature Spectral Low Light Incident Light-Induced Shading Series 7 TOPCon Rate Response Response Response Angle Degradation Response CuRe Respons

  29. Slide 29: Relative market value: energy vs efficiency

    | Relative Market Value per One Percent Improvement Calculated from +40GW of First Solar Backlog Contract Values EFFICIENCY vs. ENERGY Pricing power (Bin Class) (Tech Adjusters) comparable to 14% relative efficiency increase © 2023 Copyright First Solar, Inc. >4% energy upside* *Example for Southeas

  30. Slide 30: Delivering Energy Advantaged Technology

    Delivering ENERGY . ADVANTAGED | Technology Y YY

  31. Slide 31: Bifaciality Roadmap

    Bifaciality Bifaciality Roadmap © 2023 Copyright First Solar, Inc. Real World Annual Energy 31

  32. Slide 32: Improved bifaciality, degradation and temperature coefficient

    | Improved Bifaciality 15% → 25% Lower Degradation -0.3 → -0.2 %/year © 2023 Copyright First Solar, Inc. Improved Temperature Coefficient -0.32 → -0.24 %/°C 32

  33. Slide 33: Path to -0.1%/year degradation

    | Improved Bifaciality 15% → 25% Lower Degradation -0.3 → -0.2 %/year Path to -0.1 %/year © 2023 Copyright First Solar, Inc. Improved Temperature Coefficient -0.32 → -0.24 %/°C 33

  34. Slide 34: Enhance entitlement, reduce known loss factors

    | Enhance entitlement, Reduce known © 2023 Copyright First Solar, Inc. improve properties loss factors 34

  35. Slide 35: © 2023 Copyright First Solar, Inc.

    | © 2023 Copyright First Solar, Inc. 35

  36. Slide 36: Micro interconnections per panel

    | >1 million micro inter- connections per panel © 2023 Copyright First Solar, Inc. 36

  37. Slide 37: Energy per Module Improvement (%)

    Energy per Module Improvement (%) (including Efficiency) | 0.0% 5.0% 10.0% 15.0% 20.0% Energy Efficiency Current 540W BiFi +5% 2024 Initial CuRe Launch © 2023 Copyright First Solar, Inc. 37

  38. Slide 38: Energy per Module Improvement (%)

    | 20.0% Energy Efficiency Energy per Module Improvement (%) 15.0% +12% (including Efficiency) 10.0% 5.0% © 2023 Copyright First Solar, Inc. 0.0% +Demonstrated improvements Current 2024 Initial 540W BiFi CuRe Launch 38

  39. Slide 39: Energy per Module Improvement (%)

    | 20.0% Energy Efficiency +15% Energy Energy per Module Improvement (%) 15.0% (including Efficiency) 10.0% 5.0% © 2023 Copyright First Solar, Inc. 0.0% +Demonstrated improvements +Interconnect Current 2024 Initial Mid-Term Goal 540W BiFi CuRe Launch 590-600W Energy represented is modelled with TMY3

  40. Slide 40: Invested in Innovation

    First Solar. Invested in Innovation

  41. Slide 41: Path to a Disruptive Efficiency

    Path toa DISRUPTIVE EFFICIENCY Yj

  42. Slide 42: Single-Junction vs Tandem

    Top cell Top cell absorbs first Bottom cell absorbs light passing through top cell © 2023 Copyright First Solar, Inc. Bottom cell ~ Single-Junction Tandem 43

  43. Slide 43: CdTe on c-Si tandem

    First Solar First Solar c-Si © 2023 Copyright First Solar, Inc. c-Si • Viable technology, high cost • High-efficiency bottom cell required 44

  44. Slide 44: Cell efficiency technologies

    | Perovskite Tandems Silicon Heterostructures Perovskite Single Junction Single Crystal Silicon © 2023 Copyright First Solar, Inc. 45 https://www.nrel.gov/pv/cell-efficiency.html

  45. Slide 45: Technology efficiency comparison

    Thin Film (CdTe) Thin Film (CdTe) Perovskite Perovskite Single Crystal (Silicon) Thin Film (Other) Single Crystal (Silicon) Thin Film (Other) © 2023 Copyright First Solar, Inc. 46

  46. Slide 46: The Future Belongs to First Solar

    | The Future Belongs to First Solar © 2023 Copyright First Solar, Inc. 47

  47. Slide 47: Academic Partnerships

    | Academic Partnerships © 2023 Copyright First Solar, Inc. 48

  48. Slide 48: Academic Partnerships, Acquiring Know-How

    | Evolar photo/logo Academic Partnerships Acquiring Know-How © 2023 Copyright First Solar, Inc. 49

  49. Slide 49: Investing in Scale

    • New dedicated ~$78M perovskite development line | • Potential for full-scale pilot manufacturing line in the Jim Nolan Center for Solar Innovation Academic Partnerships Acquiring Know-How © 2023 Copyright First Solar, Inc. Investing in Scale 50

  50. Slide 50: © 2023 Copyright First Solar, Inc.

    | © 2023 Copyright First Solar, Inc. 51

  51. Slide 51: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 52

  52. Slide 52: Financial Update - Alex Bradley

    Financial Update Alex Bradley Chief Financial Officer

  53. Slide 53: Cautionary Note Regarding Forward Looking Statements

    | Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of historical fact, are f

  54. Slide 54: © 2023 Copyright First Solar, Inc.

    | 55  20 years → 50 45 Annual Cumulative 40 35 30  17 years → 25 20 15 © 2023 Copyright First Solar, Inc.  12 years → 10 5 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 55

  55. Slide 55: Differentiation, Execution, Balance

    | Differentiation Execution Competitively advantaged CdTe Disciplined Thin Film advantage Data-driven Vertically integrated CREATING Agile manufacturing SHAREHOLDER VALUE Collaborative Sustainability ideology Accountable Balance © 2023 Copyright First Solar, Inc. Growth Profitability Liquidity 56

  56. Slide 56: Return to our roots as a Technology & Manufacturing Company

    | Return to our roots as a Technology & Manufacturing Company → Set the stage for Growth (GW) 30 Exit EPC Sale US Devt 2022–2023 Dec 2019 & O&M 25 Series 6&7: 17 GW → 25 GW 25 March 2021 21 Louisiana 2021–2022 Series 6&7: 10 GW → 17 GW Alabama 20 16 13 15 India 2017–2020 10 10 Series 6: 2 GW → 10 GW

  57. Slide 57: Differentiation, Execution, Balance

    | → Differentiation Execution Competitively advantaged CdTe Disciplined Thin Film advantage Data-driven Vertically integrated CREATING Agile manufacturing SHAREHOLDER VALUE Collaborative Sustainability ideology Accountable Balance © 2023 Copyright First Solar, Inc. Growth Profitability Liquidity 58

  58. Slide 58: Balance: Growth, Profitability, Liquidity

    | → Balance • Cost per Watt • Gross Margin PROFITABILITY • OpEx per Watt Balanced Model • EPS Growth • Demand Liquidity Creating Generation Shareholder Profitability • Bookings GROWTH Value © 2023 Copyright First Solar, Inc. • Product Mix Shift • Capital Allocation • Revenue • Capex LIQUIDITY • Sour

  59. Slide 59: P&L

    P&L

  60. Slide 60: Forecast nameplate capacity by plant

    | By Plant Louisiana 30.0 Alabama India Perrysburg 3 25.2 25.0 Vietnam 22.5 3.5 Malaysia 21.2 1.0 Perrysburg 1,2 - 20.0 3.5 3.5 3.5 16.5 - 3.2 3.5 3.5 15.0 3.2 3.5 3.5 3.5 3.2 10.0 3.7 3.7 3.8 © 2023 Copyright First Solar, Inc. 3.7 3.7 3.7 3.8 3.7 5.0 2.7 3.6 3.6 3.6 - 2023E 2024E 2025E 2026E 61 For

  61. Slide 61: Nameplate capacity by product type and geography

    | Product Type By Plant ByGeography Product Type S7 India S6 International ex-India US 25.2 25.2 22.5 22.5 3.5 21.2 21.2 3.5 3.2 14.0 7.6 16.5 16.5 11.5 10.2 3.2 7.4 7.4 6.4 7.4 © 2023 Copyright First Solar, Inc. 14.1 11.0 11.0 11.2 11.6 10.1 10.6 5.9 2023E 2024E 2025E 2026E 2023E 2024E 2025E 2026E

  62. Slide 62: Forecast production by product type and geography

    | Product Type By Plant ByGeography Product Type S7 India S6 International ex-India US 21.8 - 23.2 21.8 - 23.2 18.7 - 19.9 18.7 - 19.9 3.1 - 3.3 3.0 - 3.2 15.3 - 16.3 11.7 - 12.5 15.3 - 16.3 6.8 - 7.2 8.7 - 9.4 2.6 - 2.8 5.7 - 6.3 6.7 - 7.1 Q4 2022 2 6.8 - 7.1 © 2023 Copyright First Solar, Inc. 2023

  63. Slide 63: Contracted backlog structure, volume and pricing

    | Structure Volume Pricing1 Classification (US) US / Rest of World US / Rest of World Booked: Signed contract, varied security Booked 2024→: 70.8 GW Fleet average base ASP 29.8 c/w Confirmed: Signed contract subject to Confirmed 2024→: 4.8GW 2024 ASP ~28.6 c/w conditions precedent, options (Q2 2023

  64. Slide 64: Contracted backlog and pipeline

    | 100 Current Operational Nameplate Capacity 93 90 Announced Future Namplate Capacity Contracted Backlog 80 Pipeline 78 78 70 68 60 54 50 40 30 26 © 2023 Copyright First Solar, Inc. 20 20 18 9 12 12 14 25 10 21 7 7 16 13 3 4 5 7 6 8 6 9 8 10 - YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 2Q 2022 YE 2022

  65. Slide 65: Cost per watt produced

    | 6 5 4 3 2 © 2023 Copyright First Solar, Inc.  Lower CapEx, Labor, Bill of Material Higher CapEx, Labor Bill of Material→ Produced 1 S7 S6 Fleet Module S7 S6 India Malaysia & CpW Produced US US Vietnam 0 Lower Lower 2 3 4 5 6 Middle INDICATIVE 7 – NOT TO SCALE 8 9 10 11 Upper Higher 66

  66. Slide 66: Sales freight

    | 6 5 Sales Freight 4 S7 S6&7 Fleet S6 India US Sales Freight Malaysia & 3 Vietnam  Primarily domestic market sales Higher transoceanic shipping costs → 2 © 2023 Copyright First Solar, Inc. Produced 1 Fleet Module CpW Produced 0 Lower Lower 2 3 4 5 6 Middle INDICATIVE 7 – NOT TO SCALE 8 9 10 11 Upp

  67. Slide 67: Cost per watt sold

    | 6 Sold S7 S6 Fleet Module S7 S6 India Malaysia & CpW Sold US US Vietnam 5 Sales Freight 4 Fleet Sales Freight 3 2 © 2023 Copyright First Solar, Inc. Produced 1 Fleet Module CpW Produced 0 Lower Lower 2 3 4 5 6 Middle INDICATIVE 7 – NOT TO SCALE 8 9 10 11 Upper Higher 68

  68. Slide 68: Indicative ASP vs cost: India

    | 6 Higher 5 INDICATIVE ASP – NOT TO SCALE 4 3 Lower Cost to Manufacture Fleet Average Gross Margin 2 Lower ASP entitlement © 2023 Copyright First Solar, Inc. market 1 Lower India 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 – NOT TO SCALE 8 9 10 11 Upper Higher 69

  69. Slide 69: Indicative ASP vs cost: Malaysia & Vietnam

    | 6 Higher 5 INDICATIVE ASP – NOT TO SCALE 4 3 Lower Cost to Manufacture Lower ASP Fleet Average entitlement Gross Margin in US market 2 Malaysia & Vietnam © 2023 Copyright First Solar, Inc. 1 Lower India 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 – NOT TO SCALE 8 9 10 11 Upper Higher 70

  70. Slide 70: Indicative ASP vs cost: US

    | 6 Higher 5 US INDICATIVE ASP – NOT TO SCALE 4 Higher ASP entitlement in US market 3 Higher Cost to Manufacture Fleet Average Lower sales freight cost Gross Margin 2 Malaysia & Vietnam © 2023 Copyright First Solar, Inc. 1 Lower India 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 – NOT TO SCALE 8

  71. Slide 71: Indicative ASP: bifacial vs monofacial

    | 6 Higher 5 INDICATIVE ASP – NOT TO SCALE 4 Bifacial QED Increased energy profile drives higher ASP 3 Monofacial QED Lower front-side efficiency implies 2 higher CpW © 2023 Copyright First Solar, Inc. 1 Lower 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 – NOT TO SCALE 8 9 10 11 Upper Higher 72

  72. Slide 72: Indicative ASP: CuRe

    | 6 Higher Bifacial CuRe Higher 5 lifetime energy INDICATIVE ASP – NOT TO SCALE 4 Bifacial QED 3 Monofacial QED Higher manufacturing capex 2 © 2023 Copyright First Solar, Inc. 1 Lower 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 – NOT TO SCALE 8 9 10 11 Upper Higher 73

  73. Slide 73: Indicative ASP: US domestic content

    | 6 Higher US Domestic Content 5 Offset by 10% ITC Domestic Content Adder INDICATIVE ASP – NOT TO SCALE 4 3 Non-Domestic Content Higher Variable manufacturing cost Lower Inbound freight and sales freight 2 © 2023 Copyright First Solar, Inc. 1 Lower 0 Lower Lower 2 3 4 5 6 INDICATIVE Middle COST 7 –

  74. Slide 74: Cost per watt de-risking

    | Fixed Cost: Cost Per Watt Produced: Variable Cost: ~1/3 Depreciation ~2/3 Substrate Glass, ~1/3 Fixed Cost ~2/3 Labor, Facilities, Cover glass, Frame Utilities, Other ~2/3 Variable Cost ~1/3 Remainder (individual items each <10% of Bill of Materials) © 2023 Copyright First Solar, Inc. Cost per Wat

  75. Slide 75: Cost per watt produced forecast

    | 30 Sales freight Cost per watt produced 25 20 15 Produced 19.3 - 19.7 0.5% - 1.0% (1.0%) - (2.0%) (1.0%) - (2.0%) 10 © 2023 Copyright First Solar, Inc. 5 - 2023E gap 1 2024E gap 2 2025E gap 3 2026E Fleet average cost per watt, excluding ramp cost 76 Forecast based on management estimates and assum

  76. Slide 76: Cost per watt produced plus sales freight forecast

    | 30 Sales freight Cost per watt produced 25 Produced + Sales Freight 21.8 - 22.4 (0.5%) - (1.5%) (1.8%) - (2.8%) (1.0%) - (2.0%) Sales Freight 2.5 - 2.7 ~2.2 ~2.0 20 ~2.0 15 Produced 19.3 - 19.7 10 © 2023 Copyright First Solar, Inc. 5 - 2023E gap 1 2024E gap 2 2025E gap 3 2026E Fleet average cost p

  77. Slide 77: R&D, SG&A and manufacturing period charges forecast

    | 700 3.0 R&D 1.2 2.5 SGA 1.1 1.1 2.5 2.2 1.0 600 Mfg Period Charges 1 0.22 0.9 1.9 0.7 Implied c/w 0.19 2.0 0.15 500 1.5 410 - 460 390 - 430 375 - 405 1.0 400 0.5 220 - 240 300 180 - 200 200 - 220 - 360 - 390 380 - 420 200 340 - 370 (0.5) © 2023 Copyright First Solar, Inc. (1.0) 100 160 - 170 160 -

  78. Slide 78: Production start-up vs ramp definitions

    | Production start-up Ramp Definition • New / existing sites • New / existing sites • Fixed & variable production costs • Fixed production overhead costs • Costs for (i) new site selection, (ii) operating a • Incurred when plant production is below production line before qualified for commercial nor

  79. Slide 79: Production start-up and ramp expense forecast

    | Production start-up Ramp Ohio India Alabama Louisiana CuRe Ohio India Alabama Louisiana CuRe 120 120 Total 100 85 - 105 2024 135 – 170 100 5 - 10 2025 100 – 130 5 - 10 80 70 - 80 2026 30 – 4080 ∑’24-’26 265 – 340 60 60 50 - 65 60 - 65 30 - 50 40 70 - 80 40 30 - 40 50 - 60 © 2023 Copyright First So

  80. Slide 80: IRA 45X tax credit assumptions and production by geography

    | Tax Credit Assumptions Production by Geography (GW) India Eligibility • Manufactured in United States after 1/1/2023 International ex-India Amount • Wafer $6/m2 (Efficiency ↑ = Credit/watt ↓); implies 6.1-6.4 c/w US for Series 6 (460W-480W) and S7 (525W-540W) modules • Cell: 4.0 c/w • Module 7.0 c

  81. Slide 81: US Capital Commitment

    | 5 US Capital Commitment Forecast US spend (Capital, Start-Up, Ramp) 4 Louisiana Alabama Ohio Expansions 3 R&D Center 2 Inflation Reduction Act FY 2023 tax return filing signed Earliest expected IRA §45X cash receipts → 1 Ohio 3 © 2023 Copyright First Solar, Inc. - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  82. Slide 82: India investment thesis and financials

    | • Macro fundamentals • Population growth, energy growth • Politics • Preference for western vs Chinese partnerships Why? • Policy (National) • Support for renewables, level playing field for domestic manufacturing (“Make in India”) (Investment Thesis) • Policy (State) • Capex incentive for plant c

  83. Slide 83: Gross and operating margin forecast

    | 70% GM (incl IRA §45X credit) OM (incl IRA §45X credit) 60% - 62% Adjusted GM (excl IRA §45X credit) 60% 53% - 55% 53% - 55% Adjusted OM (excl IRA §45X credit) 45% - 47% 50% 44% - 46% 40% 34% - 36% 28% - 30% 25% - 27% 30% 22% - 24% 20% - 22% 20% 17% - 19% © 2023 Copyright First Solar, Inc. 10% - 1

  84. Slide 84: Capital

    — — First Solar.

  85. Slide 85: Capital allocation priorities

    | 1 Working Capital 2 Capacity Expansion / CAPEX PRIORITY Project Development & 3 Construction 4 M&A © 2023 Copyright First Solar, Inc. Capital 5 return 86

  86. Slide 86: Capital allocation priorities 2017 vs 2023

    | 2017 2023 Trend 1 Working Capital Working Capital 2 Capacity Capacity Expansion & Maintenance Capex PRIORITY Expansion / Capex Research & X 3 PD & Exit from systems business, EPC Increase in R&D capital spend Development 4 M&A M&A © 2023 Copyright First Solar, Inc. 5 Capital Capital return Return

  87. Slide 87: Capital expenditure forecast by use and geography

    | By Use By Geography 2,000 2,000 R&D facility & other International 1,600 - 1,900 Technology Initiatives 1,600 - 1,900 US Capacity Expansion 100 - 200 300 - 400 1,500 Sustaining 1,500 200 - 300 900 - 1,200 900 - 1,200 1,000 50 - 150 850 - 1,050 1,000 50 - 100 850 - 1,050 50 - 150 150 - 250 300 - 40

  88. Slide 88: Liquidity: key uses and sources

    | Key Uses Key Sources Liquidity and Other considerations Maintenance CapEx Net Cash Balance Existing Debt Forecast annual ~$100m Year-end 2023 forecast net-cash balance of $500m DFC credit facility $1.5-1.8B Associated with India manufacturing facility Expansion and R&D CapEx (as of Q2 2023 earning

  89. Slide 89: Key Messages

    Vf WY) fy f/f ff YY

  90. Slide 90: Investment thesis and key messages

    | Investment Thesis Strategic Growth Contracted Position Core Differentiation Strategic Intent Volume across technology and business model Exit systems 76GW, sold out through 2026 Grow core manufacturing Execution ASP2 2026 forecast production1 Backlog 29.8 c/w Balanced ~22.5 GW 2024 ~28.6 c/w Growt

  91. Slide 91: Closing Remarks

    First Solar. LEADING THE WORLD'S SUSTAINABLE ENERGY FUTURE

  92. Slide 92: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 93

  93. Slide 93: © 2023 Copyright First Solar, Inc.

    © 2023 Copyright First Solar, Inc. 94

  94. Slide 94: Be positioned to serve all addressable markets

    Be positioned to serve all addressable markets Commercialize the next generation of PV Create the potential © 2023 Copyright First Solar, Inc. to double in size 95

First Solar — Investor Day (September 2023) on 6ix