First Solar, Inc. & Morocco

Presented by:Peter BarrettAdam KelinskyDrew KentMeredith PuleioErich Strassner

STRT 571-4528 April 2010

Solar Energy

• 1.6 Billion People Currently Without Access to Electricity

• Renewable And Sustainable

• Solar Energy Has Become A Financially Viable Alternative To Fossil Fuels

• Countries Around The World Are Establishing Policies To Encourage Investment In Renewable Energy

• Worldwide Demand For Solar Energy Is Expected To Increase Exponentially Over The Next Century

First Solar, Inc

• Thin Film PV Producer

• First Company To Break $1/Watt Production Threshold

• Production Facilities in US, Germany, Malaysia

• 32% Margins in 2009

• Low Long Term Debt

• Utility-Scale Projects

• Strong Cash Position

Solar Energy FDI – Key Selection Criteria

Ample Sunlight Exposure to Support Solar Energy Production

Adequate Economic Stability

Scored well on World Bank’s ‘Doing Business’ Indicators

Solar Power Friendly Policies

Access to External Markets

Existing Power Infrastructure

and the winner is … Morocco!

Morocco

• Stable Risk Environment For Foreign Direct Investment

• Predictable Governance Structure

• Pegged Exchange Rate Regime

• Free Capital Flows

• Strong Regional GDP Growth Forecasts

• Credible Public-sector Investment In Green Industries

• Gateway To Europe

First Solar’s Moroccan Strategy

•Moroccan Integrated Solar Energy Generation Project (ISEGP)

• Plan Details

- 30-year Build-Transfer-Operate (BTO) Partnership w/ ONE

- Self Funded Greenfield 500MW Solar Farm

- Approximately $1095 Million Initial Investment

- $11 Million Annual Operation Cost

- 4.5 - 7.1 Years To Break Even – USD

- Remaining Term Revenue in Dirhams

Risk Projections

• Risk In Fluctuations Of Dirham Relative USD Could Affect Profit Margin

• Largest Scale Project For First Solar Outside North America

• Long Term Political Shifts

• Solar Eclipses?

Solar Energy: More Than a Pipedream?

“And Lord, we are especially thankful for

nuclear power, the cleanest, safest energy source there is. Except for solar, which is just

a pipe dream.” – Homer Simpson

Solar Power :- Technologically Viable- Economically Profitable- Investment Opportunities Abound

Morocco:-Enabling Policy Environment-Stable Predictable Political And Economic Environment-Future Potential: Gateway To Other Markets

Solar Power: Pipedream?

Morocco: Mirage In The Dessert?

First Solar, Inc. & Morocco

Presented by:Peter BarrettAdam KelinskyDrew KentMeredith PuleioErich Strassner

STRT 571-4528 April 2010

TO Q & A or not to Q & A?

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