Slide 1: First Solar Q4'20 Earnings and 2021 Guidance Call
First Solar Q4’20 Earnings and 2021 Guidance Call February 25, 2021
Slide 2: Important Information
| Important Information 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
Slide 3: 2020 Review
| 2020 Review ● Manufacturing ■ Produced 6.1 GW, including 5.9 GW of Series 6 ■ Exited 2020 with a top production bin of 445 watts ● Financial ■ Achieved a 10% cost-per-watt reduction between the end of 2019 and 2020 ● Technology ■ Demonstrated a 25 year degradation rate, from early generation First
Slide 4: Module Segment Update
| Module Segment Update 6.1 GW of production, an increase of 0.4 GW 5.9 GW of Series 6 production, an increase of 2.2 GW December 2020 (vs. December 2019): 2020 vs. 2019 MWs produced per day of 17.3 MW (increase of 23%) Manufacturing Fleet-wide capacity utilization of 117% (increase of 20
Slide 5: Expected Module Shipments (GW DC)
| Expected Module Shipments(1) (GWDC): Systems + Third-Party Module 13.7 GW 11.7 GW 1.9 GW (5.4) GW(2) 5.5 GW (5.5) GW(2) Dec 31, 2019 2020 Shipments 2020 Bookings(3) QTD Bookings(4) Feb 25, 2021(5) The above table presents the actual module shipments for 2020 through Dec 31, 2020, new module volume
Slide 6: Creating More Value with Less Environmental Impact
| Creating More Value with Less Environmental Impact 2.5xLOWER 90%+ module recycling material recovery rate 2x FASTER Enhances end- to-end supply chain transparency 3x LOWER Up to 2x faster Vertically Up to 3x lower 90%+ Up to 2.5x lower energy payback carbon footprint time than c-Si Integrated wate
Slide 7: Income Statement Highlights
| Income Statement Highlights Q4 2020A 2020A (In millions, except per share amounts)(1) Q4 2020A QoQ Change YoY Change 2020A YoY Change Net sales $609 ($318) ($790) $2,711 ($352) Gross profit % 26.2% (5.4%) 2.4% 25.1% 7.2% Selling, general and administrative 63 13 7 223 17 Research and development 2
Slide 8: Balance Sheet Highlights
| Balance Sheet Highlights Q4 2020A (In millions)(1) Q4 2020A Q3 2020A Q4 2019A QoQ Change YoY Change Cash and marketable securities(2) $1,794 $1,671 $2,258 123 (464) Accounts receivable(3) 292 307 659 (15) (366) Inventories (current and noncurrent) 769 765 604 4 165 Balance of systems parts - 34 54
Slide 9: Potential Booking Opportunities: By Geography
| Potential Booking Opportunities: By Geography Total bookings opportunities Mid-to-Late stage opportunities Other India Other India Europe Europe North North America America © 2021 Copyright First Solar, Inc. 1.4 GWDC contracted, subject to conditions precedent 19.7 GWDC Opportunity 12.6 GWDC Oppor
Slide 10: Expanding Manufacturing Footprint (GW)
| Expanding Manufacturing Footprint (GW) 9.4 8.6 - 9.0 8.7 7.4 - 7.6 2.7 2.6 6.3 5.9 2.2 6.7 6.1 4.1 © 2021 Copyright First Solar, Inc. 2020 2021E 2022E New Malaysia factory and optimization of existing fleet expected to increase capacity 10 (1) GW per year First Solar Proprietary & Confidential - F
Slide 11: Series 6 Efficiency Roadmap
| Series 6 Efficiency Roadmap Series 6 CuRe: Lead Line: Watts per Module Q4’21 Series 6 Plus: 475 - 480 480 Lead Line: Fleet Wide: Q1’22 Q1’21 470 Fleet Wide: Q4’21 460 - 465 460 450 - 455 450 447 445 440 440 439 © 2021 Copyright First Solar, Inc. 430 431 420 2019 2020 2021E 2022E Exit Rate Average
Slide 12: Series 6 (440W) vs. Series 6 CuRe (465W)
| Series 6 (440W) vs. Series 6 CuRe (465W) Expected Energy Density Improvement (1) kWh per Square Meter 190 Series 6 (440W) Series 6 CuRe (465W) 180 +7% in Year 1 +10% in Year 10 170 +13% in Year 20 +17% in 160 Year 30 +20% in Year 40 150 © 2021 Copyright First Solar, Inc. 140 130 1 2 3 4 5 6 7 8 9
Slide 13: Indicative Drivers of Cost Per Watt Reduction
| Indicative Drivers of Cost Per Watt Reduction Dec’20: 445W 12% Target: increase 500W Dec’20: 97.6% 20-25% Target: reduction 98.5% 15% reduction © 2021 Copyright First Solar, Inc. Exit Rate ’20 Watts Per Capacity Manufacturing Bill of Sales Mid-Term Cost Cost Per Watt Module Utilization Yield Mater
Slide 14: 2021 Guidance Assumptions
| 2021 Guidance Assumptions U.S. project development and North American O&M business sale expected to close in the first half of the year Strategic U.S. project development: ~$25 million pre-tax gain North American O&M: ~$115 million pre-tax gain Anticipate run rate annual savings of $65 mil
Slide 15: 2021 Guidance as of February 25, 2021
| 2021 Guidance as of February 25, 2021 2021 Guidance Net Sales $2.85B to $3.0B Gross Margin ($)(1) $710M to $775M Operating Expenses(2) $285M to $300M Operating Income(3,4) $545M to $640M Earnings Per Share $4.05 to $4.75 Net Cash Balance(5) $1.8B to $1.9B © 2021 Copyright First Solar, Inc. Capital
Slide 16: Summary & Highlights
| Summary & Highlights 2020 EPS of $3.73 Achieved 10% cost per watt reduction between the end of 2019 and 2020 Financial 2020 year end net cash(1) of $1.5 billion 2021 EPS guidance of $4.05 to $4.75 Nameplate manufacturing capacity expected to grow from 6.3 GW at the end of Series 6 2020 t
Slide 17: © 2021 Copyright First Solar, Inc.
© 2021 Copyright First Solar, Inc. First Solar, the First Solar logo, and Leading the World’s Sustainable Energy Future are trademarks of First Solar, Inc., registered in the U.S. and other countries. Series 6, Series 6 Plus, CuRe, Series 6 CuRe, and the Series 6 CuRe logo are trademarks of First So