Lightway Solar America In a solar market reliant on 3 rd party - - PowerPoint PPT Presentation

Bankability of Lightway Solar America

“In a solar market reliant on 3rd party financing, we recognize the importance of having a dependable, reliable supplier for your long term investment”

Lightway Solar America, Inc. August 31, 2012

Presentation Outline

• Vertically Integrated Manufacturing
• Quality / Research & Development
• Press Releases
• Financial Strength
• Track Record
• Independent Engineering Analysis
• Warranty Insurance

GLOBAL NETWORK

LIGHTWAY USA

Lean Production Manufacturing Base

6 sales branches in 5 countries

 LIGHTWAY CANADA  LIGHTWAY GERMANY  EUROPEAN WAREHOSUE  LIGHTWAY SHANGHAI  LIGHTWAY AUSTRALIA  LIGHTWAY BEIJING  LIGHTWAY FACTORY

Silicon Ingot Silicon Wafer Solar Cell Auto Sorting Panel Production Cell Production Quality Assurance Panel Framing Production Line Quality Assurance Solar Module

VERTICAL INTEGRATION

INGOT AND WAFER MANUFACTURING

400 MW of ingot and wafer capacity

• GT Solar DSS-450 Furnace
• HCT Wire Saw & Squarer
• Applied Materials Chamfering & Grinding

SOLAR CELL MANUFACTURING

400 MW of solar cell capacity

• RENA Texturing
• CENTROTHERM Diffusion
• DESPATCH Firing Furnace
• BACCINI Printers
• MANZ Automation

MODULE ASSEMBLY PROCESS

By 2011, the MODULE capacity is 400 MW. In MODULE production, we have introduced:

• TOYAMA AUTOMATED Tabbing and String

Machine

• ABB Robotics
• 100% Automatic welding process with double EL

inspections guaranties a high product quality and stable product performance

• Transporting and handling without human touch

ensures stable product quality

QUALITY CONTROL

Advanced 6S Management System

We have also introduced the advanced 6S management system to ensure product quality.

Strict Testing Standard

• ISO-9001 Certified
• Flash tester calibration on every 4 hours.
• EL tester on every shift for defects
• Standard Condition: Temperature 25℃ ±2 ℃

RESEARCH& DEVELOPMENT

• An elite group of 100 R&D professionals including

doctors, advanced engineers, and supervisors

• Extensive cooperation with high-end research institute on

lean production and workmanship

PHOTON TEST

Photon Solar Module Yield Measurement Test -Q2 2012

Yingli Lightway Trina Winaico Suntech Yield April-June 2012 386.6 379.8 373.1 372.4 371.2 360 365 370 375 380 385 390 Yield (KWh/KW)

Poly-Crystalline Series:

LW Poly-72 LW Poly-60 LW Poly-54 LWPoly-48

Mono-Crystalline Series:

LW Mono-72 LW Mono-60 LW Mono-54

Black Series:

LW Poly-72 LW Poly-60 LW Mono-60

GLOBAL CERTIFICATIONS

TÜV 61730 TÜV 61215 UL PV CYCLE MCS GOLD SUN ISO 9001:2008 CE CEC

COMPANY STRUCTURE

• Real Estate Development
• International Commercial Trade
• Science & Technology
• Financial Services
• Renewable Energy
• Renewable Energy Wing of

Longjitaihe

• Established in 2008
• 400 MW vertically

integrated manufacturing capacity

LONGJITAIHE HIGHLIGHTS

• Established in 1995 … top 10 real estate developer
• f China
• Total Assets of $4.1 B USD
• 2011 Sales Revenue of $6.1 B USD
• 22,091 employees
• Developed “Bird’s Nest” (2008 Beijing Olympics)
• By 2015, total sales will achieve $16 B USD

LIGHTWAY HIGHLIGHTS

• Over 5,000 employees
• 400 MW vertically integrated manufacturing
• 700,000 Sqm manufacturing facility
• $270M sales revenue
• $13.6M Net profit after tax
• $541M Assets
• $137M shareholder equity

“Yingli Fostering Lightway’s Green Dreams” –

China Daily News / Feb 28, 2012

• http://www.chinadaily.com.cn/business/2009-02/28/content_7522550.htm

link to press release

• Lightway started business as OEM manufacturer for Yingli Solar (currently #2

solar module manufacturer in the world)

• “Yingli Chairman Miao Liansheng … has recently teamed up with real estate

developer Longjitaihe Industry Group to set up Lightway Green Energy Corporation for manufacture of photovoltaic solar systems”

• “… Baoding-based realtor (Longjitaihe) will invest 4.2 billion yuan ($614.05

million) in the project, Miao's company Yingli will provide the technical and management support.”

“Westinghouse Solar Enters into OEM Partnership with Lightway … “

• OEM manufacturer for Westinghouse Solar since Mar 2011
• 79 MW contract volume
• Manufacturing for Residential AC module and Commercial DC module
• Westinghouse Solar recently formed JV with CBD Energy

“Lightway Solar America to supply G&S Solar with 34 MW of PV modules”

On March 19th, 2012, Lightway Solar America Inc. (Iselin, New Jersey, U.S.) announced an agreement to supply G&S Solar Installers LLC (New York, New York, U.S.) with 34 MW of multi-crystalline solar photovoltaic (PV) modules. The contract is an expansion on an earlier 8 MW contract, under which deliveries began in December 2011. Under the new agreement, G&S will purchase over 122,000 PV modules from Lightway within a one-year period. Lightway executes over 100 MW of supply agreements in U.S. market Lightway opened its U.S. office in Iselin at the end of 2011, and estimates that it has executed over 100 MW of supply agreements through the U.S. market in the fourth quarter of 2011. The company notes that it offers a variety of financial solutions to its downstream customers. Lightway Solar America is a subsidiary of Lightway Green New Energy Company Ltd. (Gaobeidian, China). http://www.solarserver.com/solar-magazine/solar- news/current/2012/kw12/lightway-solar-america-to-supply-gs-solar-with- 34-mw-of-pv-modules.html

“Lightway Solar America Executes 62.8 MW Solar Project Pipeline”

ISELIN, N.J., Oct. 26, 2012 /PRNewswire/ -- Lightway Solar America, Inc. (LSA), the U.S. subsidiary of Lightway Green New Energy Co., Ltd. (LGNE), has announced the execution of 62.8 Megawatts of contracts through their project development subsidiary, Lightway Solar America Project Development, LLC (LWSA PD). Lightway has implemented a sales model in which 11.9 MW of solar panels will be invested into these projects in exchange for equity positions with a commitment from their project partners to purchase the remaining 50.9 MW through executed supply agreements. The project pipeline consists of 11 different solar project development partners with a pipeline of projects ranging from 250 kw to 4.8 MW spread throughout New Jersey, Massachusetts, New York, North Carolina, Arizona and California. Projects will begin construction immediately with 21 MW scheduled for Q4 2012 and 42 MW to be built throughout 2013. http://www.prnewswire.com/news-releases/lightway-solar-america- executes-628-mw-solar-project-development-pipeline-175954011.html

“Lightway Solar America Enters Into Agreement with Pristine Sun to Supply 11.8 MW of Solar Modules”

ISELIN, N.J., Oct. 29, 2012 /PRNewswire/ -- Lightway Solar America, Inc., the U.S. subsidiary of Lightway Green New Energy Co., Ltd., and Pristine Sun, LLC have entered in an agreement whereas Lightway will supply 11.8 megawatts of solar panels for 12 projects located throughout California ranging from 325 KW to 1.95

• MW. The Supply Agreement was structured to have Lightway's project development

subsidiary, LWSA Project Development LLC, invest a total of $2.55M in exchange for equity ownership. Pristine Sun has been aggressively building their project development model by focusing primarily on the small business niche and has quickly become the leading developer of small utility scale projects in California. Lightway has joined the emerging trend of module suppliers that are adding project

• wnership as a supplement to their manufacturing model in order to build market

share throughout the United States. http://finance.yahoo.com/news/lightway-solar-america-enters-agreement- 130000911.html

PROJECT DEBT PARTNERS

DELTA ELECTRONICS

Slovenská republika 7.8 MW Sept 2010

SCHNEIDER ELECTRIC PROJECTS

GERMANY PROJECTS

Dammbeck, Germany 0.7 MW Jan 2012 Berlin, Germany 0.6 MW Jan 2012

U.S. PROJECTS – HORIZON SOLAR

Horizon Solar Secaucus, NJ 500 kw

U.S. PROJECTS – NAUTILUS SOLAR

Gainesville, FL Municipal Airport 130 kw

U.S. PROJECTS - SOLARVERDE

Solarverde Lenore, TN 987 kw

CHINA PROJECT

Qinghai, China 15 MW Jun 2011

INDEPENDENT ENGINEERING REPORT

• BEW is a recognized leader in solar PV engineering services … over 200 years of

combined experience over the last 3 decades

• Full audit of manufacturing process, equipment and performance data of existing

projects

• “BEW was positively impressed with Lightway’s cell production facility”
• “The products’s electrical characteristics as well as PTC rating compare favorably

against industry competitors”

“Lightway … Locks in Powerguard Powerclip Warranty Solution”

• Press release link - http://www.send2press.com/newswire/2012-01-0123-002.shtml
• Over 50 years of experience providing innovative insurance based products for

renewable energy sector

• Facilitating investment banks/project financiers’ lending capabilities
• Providing a financial backstop for customer’s balance sheet warranty with AM Best

rated A investment grade carriers

• Warranty remains in place if manufacturer becomes insolvent
• $30M policy for 2012 product

5 10 15 20 25 75 80 85 90 95 100

80.68% 90.88% 97%

Warranty Power Output(%) Year

10-year warranty on materials and workmanship 25-year warranty > 80% power output 3% degradation rate the first year 0.68% yearly linear degradation

LINEAR WARRANTY - Insured by Powerguard