Company Presentation November, 2008 1 Confidential Disclaimers - - PowerPoint PPT Presentation

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Company Presentation

November, 2008

Confidential

This presentation does not constitute an offer to sell or issue

• r the solicitation of an offer to buy or acquire securities of Trina Solar Limited (the “Company”) in

any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The information herein has been prepared by the Company solely for use in this presentation. No

Disclaimers

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The information herein has been prepared by the Company solely for use in this presentation. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the

• pinions contained herein. None of the Company or any of its affiliates, advisors or

representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

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Company Overview The Solar Challenge Trina Solar Strategy and Roadmap Sales and Marketing

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Sales and Marketing Financial Performance

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75 150 350

2006 2007 2008

• Founded in 1997, in Changzhou, China
• 200 – 206MW module production in 2008*
• $800 – 850M of revenue in 2008*
• 5,000 employees worldwide**
• Listed on the NYSE under TSL ticker
• One single manufacturing campus

Company Snapshot

Module Capacity

2006 2007 2008

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Our Advantage: Vertically Integrated Business Model

* Guidance Q3 2008 **End of 3Q08

Ingot Wafer Cell Module System

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Named fastest growing company in the Deloitte Technology Fast 50, China 2007

History & Milestones

IPO: 20/12/06 Trina Solar Ltd. Built first BIPV demo house in China Participated in first Renewable Energy First commercial shipments Launch of BIPV and UMG-Si module lines Cell Supply for Partnership with Lisa Airplanes

2006

Trina Solar Ltd. founded Built 39 PV Plants in Tibet Launched Ingot manufacturing Launched Wafer manufacturing ISO 9002 Standard Trina Solar Research Center Renewable Energy Law in China Launched Cell manufacturing Reach 350MW capacity

1999 2001 2003 2005 2006 2007 2008 1997 2009

Proud sponsor

• f Espanyol

Barcelona

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Airplanes Confidential

Trina offices in 2008 Markets with sales Barcelona Munich San Francisco (in process) Changzhou (HQ) Shanghai

Global Footprint

China, Germany, Spain, USA, Italy, Benelux, Greece, UK, 6 Shanghai More than 12 nationalities from 4 different continents represented within Trina Solar Investors from USA, Europe and Asia Italy, Benelux, Greece, UK,

• S. Africa, S. Korea, Czech,

Norway, Austria, Australia, Canada, Portugal… Listed on the NYSE

Former Exec. VP of Finance of Spreadtrum (NASDAQ:SPRD) Former Controller at one of the world's largest NASDAQ-listed

semiconductor assembly and testing companies

20 years of experience in supply chain and operations management Experience as corporate VP in charge of Asia-Pacific Services at

Solectron Jifan Gao Founder, Chairman & CEO Terry Wang Chief Financial Officer Sean Tzou Chief Operating Officer

Experienced Management Team with Significant Industry and International Expertise

International Management

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Previous experience as a global procurement manager at BP Solar BA in Economics, Electrical Engineering and MS in Marketing 21 years experience in Quality Management Senior Manager, Former Quality Assurance at Motorola Singapore

and China

Founder of a wireless communications company in China Previous experience with IBM 18 years of

management and entrepreneurial experience

Standing Vice

Chairman of the New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce Arturo Herrero VP of Sales and Marketing Steven Zhu VP of Procurement & Business Dev. Anthony Chia VP of Quality

17 years manufacturing management experience in semiconductor-

related industries.

Managing Director of Wuxi Lite-On Technology

Gary Yu VP of Manufacturing

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Company Overview The Solar Challenge Trina Solar Strategy and Roadmap Sales and Marketing

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Sales and Marketing Financial Performance

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What Change Do We Need?

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CHANGE NEEDED

A radical change is needed in the energy sector that:

Is environmentally sustainable Is economically feasible Offers a rapid transition (10 – 20 years) Can be implemented immediately on a large scale Will offer long term solutions in the energy sector Can be implemented at the end-user level

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Today ~0.5%

“Solar energy could make a significant contribution to reducing CO2 emissions […] & would help avoid

around 3Gtns of CO2 up to 2030” *

40 min. of sun ~ 1 year of energy

Solar Is Part Of The Solution

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*Source: Sustainability report, Sarasin Bank Nov. 2007 ** Based on 310MW of modules produced as of end of 2Q08, for a house consumption of 5,500kWh/year

Electricity produced from Trina Solar modules over the last 4 years could have power 78,000 houses**

64%

Road to grid parity**

State of the PV Market

Global PV installations ~8GW

2010 2011 Japan 2009 Hawaii Cyprus

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Global demand in 2008: 4.7GW*

*Source: Thomas Weisel Partners LLC, Oct. ‘08 ** For residential systems, internal estimates

2011 2012 2013 2014 2015 Spain, Portugal Italy, S. California Germany Cyprus New York, Greece, Netherlands

PV prices must go down significantly to reach grid parity faster

Evolution of the Solar Demand

Germany Spain California Italy France PV regulations EEG Amendment #1 Amendment #2 R.D.4 2nd Royal Decree R.D. 3 Million Roof pgrm

• Cal. Solar Initiative

FIT #1 FIT #2 FIT #1 (MW)

Source: Internal estimates

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Emerging European PV Markets

GERMANY

32- 33 €ct 20 years No CAP

CZECH REPUBLIC

52 €ct 20 years Digression up to 5% per year per new systems No CAP

NETHERLANDS

33 €ct 15 years (including annual adjustments) CAP 2009: 15 MW

LUXEMBOURG SLOVAKIA

45 €ct

BELGIUM

30 €ct 20 years No CAP

FRANCE MAIN MARKETS EMERGING MARKETS SECONDARY MARKETS SPAIN

32- 34 €ct 25 years 500 MW for 2009

ITALY

36- 49 €ct 20 years CAP: 1200 MW Revision in 2016 GREECE 40-50 €ct 20 years CAP: 850 MW New draft from 2010: FIT digression & CAP elimination

LUXEMBOURG

36- 41€ct 15 years

SLOVENIA

First 5 five years 37 €ct, second 5 years 35 €ct, 10 followings years 32 €ct 20 years FIT annually adjusted to the inflation rate. 45 €ct Starting in Jan. 2009 12 years PORTUGAL 35-65 €ct Payment fix during 15 years (35 €ct) & 5 years (65 €ct) CAP 150 (GM) / 50 (RF) MW

SWITZERLAND

32-60 €ct 25 years 8% annual drop for new installations from 2010

BULGARIA

38-40 €ct 12 years Revision in 2009 CYPRUS 20-38 €ct 15 years

FRANCE

30-40 (+17 BIPV) €ct 20 years CAP: 540 MW Revision ini 2015

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Emerging APAC and NA Markets

SOUTH KOREA 30-40 €ct 15 years INDIA 19-24 €ct for on-grid system 5 Year Plan (2007-2012) CHINA JAPAN Subsidies to be set in April 2009 CANADA (ONTARIO) 26 €ct 20 years Government working on new FIT rates USA Net metering available in 44 states + D.C. Tax credits Grant programs Loan programs Tax exemption programs Subsidies in process, expected for 2009 AUSTRALIA Green Australian proposal Fit per kW/h established by the Ministry of Energy Period: 20 years Limit of the annual CAP: fixed per 5 years, then it can be reduced until 10% per year. No size limitation Draft of the proposal presented in May 2008. Support Programs Solar Home: Rebate of € 4 per peak watt of output. Remote Renewable Power: Up to 50 % of the capital cost of generation National Solar Schools: € 91,45 mill. for 8 years (750 kW/year). Tax exemption programs 8 years Tax rebate

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Company Overview The Solar Challenge Trina Solar Strategy and Roadmap Sales and Marketing

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Sales and Marketing Financial Performance

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Growth Strategy

• Stable plant and capacity expansion
• Secured silicon and non silicon supply
• Strategic supplier co-location (Changzhou-Trina PV Park)
• Reduce wafer thickness and kerf loss
• Increase cell efficiency
• Strong process control in ingot-wafer-cell-module development
• Best in class quality – top 3 TUV ranking

Main Strategic Levers Trina Solar Strategy

Strategic Focus

Technology/Quality Strategy

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Rapid capacity and market expansion, providing best in class technology and driving down cost

• Decrease silicon feedstock cost
• Reduce non silicon material cost
• Lower processing cost – benefit VERTICAL INTEGRATION
• Large diversified customer base
• Active medium-size customers
• Speed to market supported by integrated business model
• Well developed channel strategy
• Local focus to promote and manage brand

Cost Strategy Market Strategy

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350 MW mono & multi Capacity

Module Capacity & Production Growth Main facts

Module Capacity Expansion

Module Power Range Cell Efficiency Wafer Thickness 180 – 240Wp 17% mono 16% multi 17 Wafer Thickness Polysilicon 180µm Secured LT contracts with 7 suppliers

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Trina Photovoltaic Park Facility Site Strategic location alongside manufacturing East Campus (Phases 2 and 3)

500MW production facility in a single location

to offer increased utilization and efficiency (Phase 2)

Increased degree of vertical integration and

automation

Long-Term Expansion Plans

Phase 1 (2004-2008) Trina PV Park Facility Site

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Integrated manufacturing capabilities allows better control of

cost quality yield product development

• cycle time
• Strategic location alongside manufacturing

campus

Suppliers in neighbouring facilities bring

benefits including cost savings

Phase 2 (2008 – 2010) Phase 3

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Technology Roadmap 2008 2010

Wafer Thickness

Mono 170-180 µm 140 µm Multi 180 µm 160 µm

Cell Efficiency (%)

Mono 17% 18.5 – 20% Multi 16% 18%

Cell Size (max. diameter)

Mono 125 mm 156 mm Multi 156 mm 156 mm

Module Power (Wp)

Mono 170 – 180 220 – 260 Multi 190 – 220 200 – 240

Technology Improvement

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Module Power (Wp)

Multi 190 – 220 200 – 240

Ingot

Increase load of both multi and mono Better yield output

Wafer

Recycle slurry Reduce thickness Better yield

Cell

Enhanced process control Greater output

Module

Expand portfolio to from 165 to 240MW High quality

Silicon usage

Reduction of silicon usage to 6.6g/W in 3Q08

Latest Technology Improvements

Confidential

Strong Raw Material Supply Position

2008

95% feedstock secured for 200-206 MW

• utput

2009

Medium, Short & Long-Term Contracts Approximately 320 MW through long-term contracts

Short & medium-term contracts required are TBD

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Well planned long-term contracts can further enhance our overall cost structure

2008 to 2015 2009 to 2015 2009 to 2013 2008 to 2013 2009 to 2014 Delivery from

2009: Lower contracted silicon prices and continued manufacturing cost reduction is expected to exceed reduction in module average selling prices

Products And Certificates

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Multicrystalline 200 – 240W Monocrystalline 165 – 230W BIPV 160 – 220W

• Size: 72, 60 and 48 cells
• High Efficiency Cells
• Plug & Play Connectors
• 5 years warranty for

Manufacturing defects

• 10/25 years warranty for

90/80% power production

• Size: 60 or 48 cells
• 3 Bus Bar configuration
• Plug & Play Connectors
• 5 years warranty for

Manufacturing defects

• 10/25 years warranty for

90/80% power production

• Size: 60 cells
• Upgraded Metallurgical

grade silicon

• 2 years warranty for

Manufacturing defects

• 10/20 years warranty for

90/80% power production

• 2 product types: glass-

glass laminated and integrated unit glass)

• Size: 72 and 60 cells
• minimizes power loss

during transmission

• Aesthetically pleasing

NEW UMg-Si 190 – 220W NEW Confidential

Company Overview The Solar Challenge Trina Solar Strategy and Roadmap Sales and Marketing

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Sales and Marketing Financial Performance

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Customer Focus

Wholesalers and Distributors PV System Integrators / Large installers

Large diversified customer base Active medium-size customers Speed to market supported by integrated

business model

Manage Brand Recognition Increased Influence Over End Customer

Market Strategy

23 Large installers

Brand Development

PV System Owners and Financiers Solid position in: Spain, Italy and Germany Strong development in: France, Benelux, Czech, Portugal Entry into: US, Korea, Greece & Australia

business model

Well developed channel strategy Local focus to promote and manage

brand

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Germany 34% Italy 19% ROW 6% Spain 41% Germany 34% Italy 18% ROW 10% Spain 26% Benelux 10% USA 5%

Geographic Diversification

Italy 20% ROW 6% Spain 14% Belgium 10% Germany 25% Korea 4% USA 15% France 6%

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Italy 2007 2007

75MW

2008E 2008E

200 – 206MW

2009E 2009E

~320MW Secured*

*As of end of 3Q08

Germany Spain

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Project Installations

Netherlands – 83 kW 25

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Lisa Airplane sponsorship

provide cells for the 1st airplane to fly around the world using only renewable energy

International Exhibitions & Sponsorphips

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Proud sponsor the RCD Espanyol Barcelona

(Spanish premier ligue team)

Sponsoring International Exhibitions

renewable energy

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Company Overview The Solar Challenge Trina Solar Strategy and Roadmap Sales and Marketing

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Sales and Marketing Financial Performance

Confidential

$27,275 $114,500 $301,819 2005 2006 2007 2008E

$800,000

• 850,000

Revenue

$6,289 $30,050 $67,914 2005 2006 2007 2008E

Gross Profit

GM 20%

• 22%

23.1% 26.2% 22.5%

Annual Financial Performance

One of the strongest growth in the industry

2008 estimates based on guidance released as of end 3Q08

$3,311 $12,421 $34,876 2005 2006 2007 2008E

Net Income

No Guidance

12.1% 10.8% 11.6% $4,273 $16,920 $36,273 2005 2006 2007 2008E

Operating Profit

OM 12%

• 14%

15.7% 14.8% 12.0%

Confidential

$82,573 $101,394 $120,671 $204,169 $290,723 3Q07 4Q07 1Q08 2Q08 3Q08

Revenue

$16,593 $27,598 $31,076 $47,373 $65,190 3Q07 4Q7 1Q08 2Q08 3Q08

Gross Profit

Quarterly Financial Performance

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Steady and well monitored quarterly growth

$7,771 $15,686 $12,873 $17,101 $32,053 3Q07 4Q07 1Q08 2Q08 3Q08

Net Income

$6,931 $16,229 $20,204 $29,126 $46,788 3Q07 4Q07 1Q08 2Q08 3Q08

Operating Profit

Confidential Based on guidance released as of end 3Q08

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Thank You!

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