ja solar presentation 2011

Protect the one Earth we all share, for this and future generations.

JA SolarCorporate Presentation

March 2011

This presentation contains forward-looking statements. These statements relate to future

events or to future financial performance and involve known and unknown risks, uncertainties,

and other factors that may cause our actual results, levels of activity, performance, or

achievements to be materially different from any future results, levels of activity, performance,

or achievements expressed or implied by these forward-looking statements. In some cases,

you can identify forward-looking statements by the use of words such as “may,” “could,”

“expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,”

or “continue” or the negative of these terms or other comparable terminology. You should not

place undue reliance on forward-looking statements because they involve known and

unknown risks, uncertainties and other factors that are, in some cases, beyond our control

and that could materially affect actual results, levels of activity, performance, or achievements.

Any forward-looking statement you see or hear during this presentation reflects our current

views with respect to future events and is subject to the risks, uncertainties, and assumptions

relating to our operations, results of operations, growth strategy, and liquidity. We assume no

obligation to publicly update or revise these forward-looking statements for any reason,

whether as a result of new information, future events, or otherwise.

Forward-looking Statements

Introduction to JA Solar

Shanghai, China

May 2005 / February 2007

Largest dedicated solar cell manufacturer

1.46GW

World class quality, conversion efficiency,

and cost structure

2.1 GW (Cell)

17.8% mono, 16.5% multi; continuous

improvement and innovations

JASO

~11,000

One of the Leading Solar Companies in the World

Headquarters

2010 Shipments

Ticker Symbol

Date Est’d / IPO

Attributes

Annual Capacity

Conversion

Efficiency

Employees

Business

4


Experienced Management Team

Baofang Jin

Executive Chairman

Dr. Peng Fang

Chief Executive Officer

Jian Xie

Chief Operating Officer

Anthea Chung

Chief Financial Officer

Yong Liu

Chief Technology Officer

Ming Yang

Vice President of IR & BD

5

Executive chairman of JA Solar.

Chairman of the board of

directors and chief executive

officer of Jinglong Group.

National People's Congress,

vice-chairman of the Chinese

People's Political Consultative

Conference of Ningjin County.

Board Director and Chief

Executive Officer of JA Solar.

Former president of Huahong

NEC. Winner of the Shanghai

Magnolia Prize.

The Board Director of UCGEC

and was chairman of the IEEE

Electron Devices Society.

Board Director and Chief Operating

Officer of JA Solar.

Mr. Xie has served in such

capacities as the company's director

of corporate finance, director of

investor relations, assistant to the

chief executive officer, secretary of

the board of directors and vice

president of Sales.

Chief Financial Officer of JA

Solar.

More than 16 years of financial

management experience at

public and private companies.

Former Chief Financial Officer

of Solar Enertech Corp.

Former VP and Corporate

Controller of RAE Systems Inc.,

Board Director and Chief

Technology Officer of JA Solar.

More than 15 years of operation

management experience at

semiconductor wafer and solar

cell manufacturing facilities.

Former director of SMIC.

Vice president of JA Solar.

More than six years of experience

working as a Wall-Street buyside

and sellside analyst , specializing

in the renewable energy and

semiconductor materials sectors.

Former vice president of Piper

Jaffray.

6

Product: High performance mono and

multi-crystalline solar cells

Location: •Ningjin, Hebei province

•Yangzhou, Jiangsu province

Capacity: 2.1GW

Efficiency

and Key

•World leading solar cell

company

Attributes: •17.8% (mono); 16.5% (multi)

•18.9% high eff cell (Secium)

•18.2% high eff cell (Maple)

•High quality, strong reputation

PV ModulesSolar Wafers Solar CellsStrategy: •High efficiency wafer research

•Lower wafer cost

•Higher gross margin

Location: Lianyungang, Jiangsu province

Capacity: 300MW

Timeline: Full production of 300MW by

year end 2010

POLYSILICON SILICON WAFERS CELL MODULE SYSTEMS


Optimized Vertical Integration Model

Strategy: •High quality product with high

quality BOM

•Additional channel for product

distribution

•Brand building

•OEM & White label module

Location: Shanghai

Capacity: 500MW

Timeline: OEM production for leading

global brands

Full production by year end

2010


2005 2006 2007 2008 2009

May 2005

Ningjin Jinglong

Zhong’ao

Established

Apr 2006

1st Commercial

Production

Ningjin 25MW

Dec 2007

JA Corporate HQ

established in

Shanghai ―JA

PLAZA

BUILDING”

Sept 2008

New Yangzhou

Fab Mass

Production

achieved

Q4 2009

Established

module business

in Shanghai and

wafer business in

Lianyungang

Feb 2007

NASDAQ IPO

Followed by a

Secondary

Offering in Oct.

2007

Nov 2005

Renamed Jing

Ao Solar Co.

Limited

The name JA

SOLAR is born

Q1 2010

Achieved

shipment run

rate of over

1GW

2010

JA Solar Milestones

7

2011

Q3 2010

Achieved

cumulative

shipment of over

1GW

Q4 2010

Achieved

capacity

of 2GW

JA Solar Differentiation

JA Solar Key Attributes

8

Superior

Execution

Capabilities

Industry Leading

Financial

Performance

Continue to

Execute on

Growth Strategy

Technology

Leadership

Large Scale

Operations

Protect the one Earth we all share,

for this and future generations.

Q2 2010 Solar Cell & Module Shipments（MW）

Source: Solarbuzz Quarterly

JA Solar ranked #1 in megawatt shipments in 3Q 2010 based on Solarbuzz Quarterly

#1 solar cell supplier with substantial market share – Scale, Quality, Technology, and Cost Structure leadership

9

World’s Largest Solar Cell Supplier in Q3 2010

10

FY07 = 132MWFY08 = 277MW

FY09 =509MW

FY10= 1.46GW

Substantial Shipment Growth & Market Share Gain - CAGR over 90%

FY11(E)= 2.2GW

0

50

100

150

200

250

300

350

400

450

500

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

14.4 2443.8 50.2 51.4

65.7

99.1

61

24

77

177

231

272

311

418

463465~475

Customer Base

• 46% of Sales Abroad

• 54% of Sales in China

1. China 54%

2. Europe 24%

3. R.O.W. 18%

4. U.S.A . 4%

Q2 2010



1. China 47%

2. Europe 33%

3. R.O.W. 11%

4. U.S.A. 9%

Q3 2010

12

Substantial Geographic & Customer Diversification



1. China 47%

2. Europe 35%

3. R.O.W. 12%

4. U.S.A. 6%

Q4 2010



1. China 64%

2. Europe 15%

3. R.O.W 14%

4. U.S.A. 7%

Q1 2010

13

Added substantial number of new

customers over past two years,

including BP Solar, Solar-Fabrik,

MEMC/SunEdison, leading

European Tier-1 solar OEMs; as

well as new customers in

Germany, Italy, France, Korea,

Japan, India, and U.S.

Substantial Geographic & Customer Diversification

http://www.bp.com/genericcountryjump.do?categoryId=9070&contentId=7038143

http://www.sunedison.com/

Manufacturing and Technology

Large Scale Operations

Ningjin, Hebei province

850MW capacity

Yangzhou, Jiangsu province

1250MW capacity

State-of-the-art PV R&D Center

Ningjin Cell Facility

Lianyungang, Jiangsu province

300MW capacity

Lianyungang Wafer Facility

Fengxian , Shanghai

500MW capacity

Shanghai Module FacilityYangzhou Cell Facility

___________________________Note: Capacity refers to end of ’10 capacity.

World-class PV Manufacturing Facility over Multiple Locations

15

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

YangZhou 50 50 125 200 250 500 700 1100 1200 1250

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

YangZhou

YangZhou

Solar Cell Capacity Ramp 2008-2011

Significant solar cell capacity ramps up with proven execution

New state-of-the-art fab in Yangzhou implementing new process and technologies

16

200275

425

600 600675

750 800

1100

1400

18001900

2100

Yangzhou Solar Cell Facility Overview

1250MW solar cell fab incorporating next-generation technologies

State-of-the-art R&D center – successfully developed SECIUM technology

Implementing multiple new process with state-of-the-art tool set

New process roll-outs: SECIUM, Hercules Process (+0.2% Eff); Dual-SP (+0.2-0.4% Eff)

New process automation tools

17

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q104Q10 1Q11 2Q11 3Q11 4Q11

Multi-crystalline

Maple

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q104Q10 1Q11 2Q11 3Q11 4Q11

Conventional Mono

Secium Cell

Continuous Process Innovation Leads to Higher Efficiency

18

Solar Cell Efficiency Trend with New Process Implementation

R1 Process

R2 Process

Secium Technology

R1 Process

R2 Process

R3 Process

Multi-pronged

approach to

efficiency

improvement:

Emitter

optimization

Optimized

diffusion profile

Optimize sheet

resistance

Improved surface

passivation

New process

materials

Advanced device

architecture

Maple

R3 Process

Quantum Efficiency Comparison

Spectral response at short wavelengths region is

significantly enhanced compared to conventional cells

Reduced recombination losses

Increased Short Circuit Current and Open Circuit

Voltage leads to higher power output per cell

Higher fill factor

19

New SECIUM High Efficiency Solar Cell

Voc (mV) Isc (A) FF (%) Eff (%)

639.9±1.9 5.53±0.10 79.42±0.50 18.92±0.36

。

18.9% conversion efficiency solar cell certified

by Germany’s Fraunhofer Institute

Recent Volume Production Results: Average Conversion Efficiency of 18.6%

Conversion Efficiency Distribution Over 13,800 Cells

Concentrating on Manufacturability of the High-efficiency Cells in 10Q2

Technology Leadership – Volume Production at 18.6%

Min: 17.00% Max: 19.11%25% quartile: 18.42%

Median: 18.60% 75% quartile: 18.75%

20

Technology Leadership at 18.2% Efficiency

21

Maple cells feature silicon crystals that

are broader, flatter and have fewer grain

boundaries than traditional poly-

crystalline silicon, resulting in reducing

energy wastage and improving

conversion efficiency. Maple cells can be

produced using lower-cost poly-

crystalline silicon production

techniques, while the cells are closer to

mono-crystalline silicon solar cells in

terms of conversion efficiency.

Cells Datasheet—Maple 156MP

Maple technology, developed by JA Solar's

R&D team, enables significantly enhanced power

output from poly-crystalline silicon solar cells, which

exceed 17.5% in high volume average, and over

18.2% at highest.

Efficiency (%) Pmpp (W) Umpp (V) Impp (A) Uco (V) Isc (A) FF (%)

18.0-18.2 4.40 0.531 8.290 0.625 8.711 80.21

17.8-18.0 4.36 0.529 8.235 0.624 8.734 79.98

17.6-17.8 4.32 0.526 8.182 0.621 8.685 79.78

17.4-17.6 4.26 0.524 8.123 0.619 8.642 79.56

17.2-17.4 4.21 0.522 8.064 0.617 8.598 79.36

17.0-17.2 4.17 0.520 8.013 0.615 8.551 79.25

16.8-17.0 4.12 0.517 7.960 0.613 8.493 79.11

16.6-16.8 4.07 0.515 7.898 0.612 8.430 78.96

Technology Roadmap

22

Clear roadmap to

20% solar cell

efficiency

Fengxian (Shanghai) Module Facility Overview

500MW Module capacity

World-class quality system

High quality materials

Module reliability lab

Successful ramp-up with strong demand from diverse customer base

Significantly increase shipment and revenue opportunity with direct access to end customers

23

CS: 1.Customer Complaint Handling

2.Coordinate various functions to

provide containment, corrective and

preventive actions to customer

3.Customer various functions to drive

quality improve activities to achieve

customer quality expectation

4.Contact windows with customer on

quality

RMA: Return Materiel Repair center

Quality Reliability Assurance

QA: Quality system control and ISO

quality system maintenance,

internal and external customer

audit

DCC: Document Control& EC

Control

2nd Source: 2nd Source guide, Overall

management of the responsible

supplier(s)

IQC: Incoming material inspection and

quality control

OQC: Shipping Inspection

IPQC: In-process Quality Control

Custom Quality

Management

RMAReturn Material

Approval

CSCustomer

Support

OQAOutgoing Quality

Assurance

Quality Control Center

SQMSupplier Quality

Management

IQCIncoming

Quality

Control

2nd

Source

IPQCIn-Process

Quality Control

QA/Certification

QAQuality

System

DCCDocument

Control

Product

Certification

Quality/Reliability

Lab

Reliability

Lab

RL: Reliability Analysis

FA: Failure Analysis &

Calibration

management &

MSA

FAFailure

Analysis

OQCOutgoing

Quality Control

World Class QA System

24

Financial Performance

Industry Leading Financial Performance

26

177

231272

311

418463

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

193238

279

351

541584

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Shipment (MW) Revenue (US$ mn)

Gross Margin (%) Net Profit (US$ mn)

Achieved record shipment, sales and net profit in 4Q10.

16.7%

20.5%22.9% 23.1% 22.5%

19.2%

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

15.6 21.0

38.4 28.9

76.8

118.7

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Review of 4Q 2010 Results


($ in millions)

27

Q3 2010 shipment 418MW; Q4 2010 shipment 463 MW 11% Q/Q growth

54.5% Q/Q net income growth from Q3 to Q4 2010

Strong financial performance

* Q2 2010 Core Operating profit excludes impact of one-time Shunda prepayment provision

Solid Revenue Growth and Profitability

1Q2010 2Q 2010 3Q 2010 4Q 2010

Shipment 272MW 311MW 418MW 463MW

Q/Q growth 18% 14% 34% 11%

Revenue 279 356 541 584

Q/Q growth 17.1% 27.5% 52.0% 7.9%

Gross Profit 64 81 122 112

Gross Margin 22.9% 23.1% 22.5% 19.2%

Operating Profit* 51.7 62.9 99.9 89.5

Operating Margin* 18.5% 17.9% 18.5% 15.3%

Net Income 38.4 28.9 76.8 118.7

EPS 0.24 0.18 0.47 0.59

Strong Balance Sheet

$346.9M in cash at the end of 4Q 2010

$1.76B in total assets, $1.01B in shareholder’s equity

Strong operating cash flow: $193.9 million for full year 2010

>US$250 million of credit facilities available through banks

Signed a RMB 30 billion credit agreement with China's Development Bank

Strong capital position to fund growth

Target ROIC >30%

Strong balance sheet to support company’s growth initiatives


Guidance

28

Q1 2011 Shipment 465~475MW

Full year 2011 Shipments to exceed 2.2GW

JA Solar: Investment Thesis Summary

Growing customer base and geographic diversification

Strong financial performance with cash generation

Strong management team with proven execution

Technology and cost leadership

Strong balance sheet to fund growth

Clear R&D Roadmap to increase efficiency >20%

29

Thank you!

ja solar presentation 2011

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