Clean Technology
North American Wind & Solar Industries
Sung Ha Chung
Siming Li
Stefanie Wong
Weiting Chen
Agenda
 Overview
 Revolution of Clean Tech
 Energy Generation Segment
 Wind & Solar Energy
 Companies
 First Solar Inc.
 Canadian Solar Inc.
 ETF
 Global Wind Energy Index Fund
2
Clean Tech
Industries Overview
Revolution of Clean Tech
 In the 1970s, clean tech was considered “alternative”
 Environmentalism and lifestyle advocates
 Too expensive & lack of political support
“Clean technologies are designed to provide superior
performance at a lower cost while creating significantly less
waste than conventional offering – promises to be the next
engine of economic growth.” – Ron Pernick
Source: The Clean Tech Revolution
by Ron Pernick
4
Revolution of Clean Tech
 Six reasons why it is prevalent today
 Costs
 Capital
 Competition
 Consumers,
 Climate
 China
5
Key Industry Segments
1. Energy Generation

wind, solar, geothermal, etc.
2. Energy Storage

Fuel Cells, Advanced Batteries
3. Energy Infrastructure
4. Energy Efficiency
5. Transportation
Source: Cleantech Group
6
Industry Segments
6. Water & Wastewater
7. Air & Environment
8. Materials
9. Manufacturing/Industrial
10. Agriculture
11. Recycling & Waste
Source: Cleantech Group
7
Energy Generation
Overview
8
Energy Generation
 Wind
 Solar
 Hydro/Marine
 Biomass
 Geothermal
 Other
9
US Energy Production and
Consumption 2009
Source: US DOE
10
US Energy by Energy Source 20002009
Production
Consumption
Source: US DOE
11
Cost of Renewable Energy by
Technology 2009
Source: US DOE
12
Cost of Conventional Energy
Source: First Solar Inc.
13
US Capacity & Generation 2009
Source: US DOE
14
US Capacity & Generation 2009
(excluding hydropower)
Source: US DOE
15
US Capacity & Generation 2009
by Source
Source: US DOE
16
Top States for Renewable Electricity
Installed Nameplate Capacity 2009
Source: US DOE
17
Top States Renewable Electricity
Installed Nameplate Capacity 2009
Source: US DOE
18
Renewable Electricity Capacity
Worldwide
Source: US DOE
19
Worldwide Renewable Electricity
Generation Capacity
Source: US DOE
20
Top Countries with Installed
Renewable Electricity
Source: US DOE
21
Top Countries with Installed Renewable
Electricity by Technology 2009
Source: US DOE
22
Industry Development
 Global renewable electricity installations have more than
tripled from 2000-2009
 Renewable energy accounts for 21% of global electricity
generation (including hydropower); 3.8% excluding
hydropower
 Wind and solar PV fastest growing; capacity grew 14x
between 2000-2009
 In 2009, Germany led the world in cumulative solar PV
installed capacity. The US leads in wind, geothermal,
biofuels, and CSP
23
Government Energy Subsidies
 Industry reliant on government subsidies
 Subsidies takes 4 main forms:
 Direct Expenditures
 Tax Expenditures
 Research and Development
 Targeted Programs & Indirect support(i.e.: Loans Guarantees
programs by US Department of Agriculture)
24
Feed-in Tariff
 Industry benefited from introduction of feed-in tariff (FiT)
 a policy mechanism designed to encourage the adoption
of renewable energy
 As a government mandate, utility companies pay the
homeowners, business and organizations to generate their
own electricity
 First implemented in US in 1978 by president Jimmy Carter
 As a reaction to 1970’s energy crisis
 As of 2009, FiT enacted in 63 jurisdictions around the world
 Denmark, Spain, and Germany
25
Government Energy Subsidies in 2007
Source: US EIA
26
Wind Energy
Industry Overview
27
Wind Energy Technology
 Two modern wind turbines
 Vertical-axis
 Horizontal-axis
Vertical-axis wind turbine
Horizontal-axis wind turbine
Wind Farms
Onshore Wind Farm
Offshore Wind Farm
29
How Do Wind Turbine Works
30
Industry Development
 US installed wind energy capacity increased almost 14x
between 2000 and 2009
 US wind experienced record growth in 2009 and nearly 10
GW of new capacity was added
 Texas led the United States in wind installations in 2009,
installing more than 2,292 MW of wind capacity
 In 2009, average price of wind power was about $0.40 per
kilowatt hour — a price that competes with fossil fuelgenerated electricity
 In 2009, China surpassed US as the world leader in annual
installed wind capacity, with more than 13.8 GW added.
31
Industry Performance
 $13.13 billion in revenues in 2010*
 Contracted 0.3% annually since 2005
 Recession and competition from other alternative energy
sources
*Estimated from 2010 contracts
Source: IBIS World
32
Turbine Manufacturers
Source: US DOE
33
US Wind Energy Nameplate Capacity
and Generation
Source: US DOE
34
US Wind Power Sales Price
Source: US DOE
35
Wind Energy Capacity 2009
Source: US DOE
36
Solar Energy
Industry Overview
37
Solar Energy Technology
 Solar Thermal
 Uses energy from the sun to heat
water & buildings or generate
electricity
 Photovoltaic (PV) Systems
The solar furnace at Odeillo France
 Conversion of sunlight directly
into electricity
 PV solar panels
 Concentrated Solar Power (CSP)
PV CSP
Industry Development
 Solar energy electricity generation has nearly 4x between
2000 and 2009, but still represents a very small part of overall
U.S. electricity generation.
 Countries with aggressive solar policies—such as Germany,
Spain, and Japan— lead the world in solar photovoltaic
(PV) deployment.
 China is the market leader with nearly 40% of the global PV
cell production.
 A number of concentrating solar power (CSP) plants came
online in 2009, including 12 MW in the United States and 120
MW in Spain.
39
Industry Performance
 $57.98 billion in revenues in 2010*
 Annual growth of 4.7% 2005
 Higher levels of electricity generation and higher price
*Estimates
Source: IBIS World
40
Photovoltaic Manufacturers
Source: US DOE
41
US Solar Energy Capacity and
Generation
Source: US DOE
42
US PV Power Sales Price
Source: US DOE
43
Solar Energy Installed Capacity 2009
Source: US DOE
44
Stock Performance – 1 Year
Stock Performance – Max
Comparison of 37 Month Cumulative Total Return
1200
1000
Dollar
800
600
400
200
Nov-06
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
0
First Solar, Inc.
S&P 500
NASDAQ Clean Edge Green Energy
Peer Group
Source: First Solar Annual Report
Company Snapshot
• Formed in 1999 and launched production
of commercial products in 2002
• IPO on Nov17, 2006
• 1st pure-play renewable energy company
added to the S&P 500® composite index
• Ranked #7 on Fortune's list of 100
fastest growing companies, and #1 on its
list of profit growth for energy companies.
CORPORATE HISTORY
Corporate History
• Glasstech Solar
– Founded by inventor/entrepreneur Harold
McMaster in 1984
– Envisioned the opportunity for low cost thin films
made on a large scale
– Shifted to CdTe technology and founded Solar
Cells Inc. (SCI) in 1990
• Purchased by True North Partners in 1999
– Investment arm Wal-Mart
• Establishment of First Solar
– John T. Walton joined the Board of the new
company
– Mike Ahearn of True North became the CEO
First Solar Inc. -- Ownership
First Solar Inc. -- Ownership
Current Position
• World’s largest thin film solar module
manufacturer
• 2nd largest Photovoltaic (PV) manufacture
• Approximately 1.2 gigawatt (GW) production
capacity operating or announced
• World’s lowest cost solar module
manufacturer
– $0.93/W, breaking the $1 per watt price barrier
in Q4 of 2008
Current Position
Source: Modified from Photon International * Based on
location of facilities
Competitive Cost Environment
Source: First Solar Overview
Acquisitions
Photovoltaic project pipeline
April 2009
• All-stock transaction valued at $400
million
• First Solar issues ~3 million shares of
common stock representing a dilution of
about 3.5%
July 2010
• All-cash transaction valued at $297 million
• Solar development firm in North America
• Formed by the inaugural fund of Energy
Capital Partners (Private equity firm)
First Solar Subsidiaries
Ownership (%)
Subsidiaries
Ctry
Direct
Total
Date
Revenue No. of
of inform. (mil USD) Employees
1. FIRST SOLAR HOLDINGS GMBH
DE 100.00
100.00
09/2009
<0,5
n.a.
2. NEXTLIGHT RENEWABLE POWER, LLC
US 100.00
100.00
07/2010
3
30
3. FIRST SOLAR FE HOLDINGS PTE LTD
SG >50.00
n.a.
12/2008
n.a.
n.a.
4. FIRST SOLAR GMBH
DE -
>50.00
12/2008
2,053
94
5. FIRST SOLAR MALAYSIA SDN BHD
MY >50.00
n.a.
12/2008
n.a.
n.a.
>50.00
12/2008
433
686
6. FIRST SOLAR MANUFACTURING GMBH DE 7. FSE BLYTHE I LLC
US >50.00
n.a.
12/2008
n.a.
n.a.
8. FSE BLYTHE LAND HOLDINGS LLC
US >50.00
n.a.
12/2008
n.a.
n.a.
9. FIRST SOLAR ELECTRIC, LLC
US MO
n.a.
12/2009
<0,5
25
Data Source: MintGlobal Database
EXECUTIVE MANAGEMENT
Executive Chairman
Michael J. Ahearn
(Age: 53)
• Joined First Solar since Aug 2000
• Was the Partner and President of JWMA
– Formerly True North Partners
– Equity investment firm
– Majority stockholder of First Solar
• Practiced law as a partner in the firm of Gallagher &
Kennedy prior to joining JWMA
• Served on many boards
–
–
–
–
–
Arizona Technology Enterprises
Arizona State University Research Park
Homeward Bound
Arizona Science Museum
German Marshall Fund of the United States (Currently)
• Received both a B.A. in Finance and a J.D. from Arizona
State University
Chief Executive Officer
Robert J. Gillette
(Age: 50)
• Joined First Solar in October 2009
• President and CEO of Honeywell
Aerospace prior to coming to First
Solar
• Spent over 10 years at General
Electric and served in many senior
management positions prior to joining
Honeywell
• Received a B.S. in Finance from
Indiana University.
President
Bruce John
•
•
•
•
•
(Age: 48)
Joined First Solar since Feb 2007
Senior executive from Intel Corporation
Engineering graduate of MIT
Guest lecturer at MIT, Stanford and Duke
Published research in many high technology topics
– applying constraint theory to semiconductor process
lines
– high-volume factory design
– silicon surface defects, oxygen gettering
– gate oxide quality, transistor design and statistical
design of experiments
• Currently chairs the US Commerce Department's
Manufacturing Council for the Obama administration
Executive Management Team
• Jens Meyerhoff
(Age: 45)
– Chief Financial Officer
– Joined First Solar in 2006
– Formerly a CFO from Virage Logic Corp., FormFactor and
Siliconix Inc.
– Holds a German Finance & Information Technology degree
• T. K. Kallenbach
(Age: 50)
– VP - Marketing and Product Management
– Joined First Solar in 2009
– Formerly a senior executive from Honeywell
– Holds a B.S. in mechanical & aerospace engineering and a
MBA from Arizona State University
Executive Management Team
• Carol Campbell
(Age: 58)
– VP - Human Resources
– Joined First Solar in 2006
– Formerly a Regional HR Director at the Dana Corporation
• James Zhu
(Age: 48)
– Chief Accounting Officer
– Joined First Solar in 2007
– Formerly an Assistant Controller, VP, Corporate Controller for
Salesforce.com, Chiron Corporation
– Certified Public Accountant, B.A. in Economics & M.B.A. in
Accounting
The 2010 All-America Executive Team Leader Board
Most Honoured Companies Rated by Buy-side Analysts, Portfolio Managers, and
Sell Side Analysts
Rank Company
Sector
1st
Place
Total
1st
1st
Place Place
CEOs CFOs
1st
Place
IR Pros
1st
Place
IR Cos
1
First Solar
Alternative Energy
8
2
2
2
2
2
Staples
Retailing/Hardlines
7
1
2
2
2
5
Goldman
Sachs Group
Brokers, Asset
Managers & Exchanges
6
1
2
1
2
10
Coach
Apparel
5
1
1
2
1
10
Intel Corp.
Semiconductors
5
2
1
0
2
20
McDonald’s
Restaurants
4
2
0
0
2
35
Procter &
Gamble Co.
Cosmetics, Household
& Personal Care
3
0
1
2
0
50
Exxon Mobil
Integrated Oil
2
1
0
0
1
94
Apple
IT Hardware
1
0
0
0
1
94
EBay
Internet
1
0
0
0
1
Source: http://www.iimagazine.com/Research
PRODUCTS & SERVICES
Products & Services
• Uses a thin film semiconductor technology to
manufacture electricity-producing solar
modules.
• Designs, constructs and sells photovoltaic
(PV) solar power systems
Thin Film Semiconductor Technology
• Cadmium Telluride Photovoltaics
(CdTe PV)
– A semiconductor layer designed to
absorb and convert sunlight into
electricity
• First and only thin film PV
technology to surpass crystalline
silicon PV in cheapness for a
significant portion of the PV
market, namely in multi-kilowatt
systems
Cadmium telluride
First Solar Technology
Source: First Solar Overview
Cross-section of a CdTe Thin Film Solar Cell
Source: First Solar Overview
Two Business Segments
1.
Module Manufacturing
– Designs, manufactures and
sells solar modules to solar
project developers and
system integrators
2.
System Solutions: provides
PV solar power system for
commercial systems
– Project development,
engineering
– Procurement and
construction (EPC)
– Operating and maintenance
(O&M) services
– Project finance
Representative Projects – PV Modules
Source: First Solar Overview
Announced U.S. Utility Contracts for PV & Solar Thermal
Sales Channel
Established Developers & Integrators
Capacity Growth
Source: First Solar Q3 2010 Earnings Call
Market Overview
Source: First Solar Q3 2010 Earnings Call
Industry Market Demand
Source: First Solar Q3 2010 Earnings Call
Geographical Diversification Strategy
Source: First Solar Q3 2010 Earnings Call
Cost per Watt Trend
Source: First Solar Overview
Risk Factors
1.
Migration from Existing Subsidy Markets to
Transition Markets is Discontinuous
Source: First Solar Overview
Crossing Over to Sustainable Market
Source: First Solar Overview
2. Limited Number of Customers
MAJOR CUSTOMERS
Revenue from
12/26/2009
( th USD)
All customers
12/27/2008
(%) ( th USD)
12/29/2007
(%) ( th USD) (%)
2,066,20 100% 1,246,30 100% 503,976 100%
0
1
12/30/2006
( th USD)
(%)
134,974 100%
CUSTOMER 1
0
0% 138,822 11%
74,465 15%
23,023 17%
CUSTOMER 2
0
0% 135,232 11%
51,989 10%
21,568 16%
CUSTOMER 3
264,744 13% 143,857 12%
76,669 15%
25,882 19%
CUSTOMER 4
356,068 17% 231,557 19% 113,664 23%
25,054 19%
CUSTOMER 5
0
0% 149,946 12% 68,492 14%
CUSTOMER 6
0
0%
0
0% 65,352 13%
0
0%
CUSTOMER 7
261,314 13%
0
0%
0
0%
Others
Data Source: MintGlobal Database
57%
36%
0
0%
11%
22,353 17%
13%
3. Government Regulations/Incentives
• Reduction of government
subsidies, or other supports
adversely impact operating
results
– German feed-in tariffs will be
adjusted earlier than
expected
– California’s RPS goal of 33%
of electricity from renewable
sources by 2020 has not
passed by the CA legislature
– A new feed-in tariff program
introduced in Ontario,
Canada as a primary subsidy
program for future renewable
energy projects
FINANCIALS
Balance Sheet (Quarterly) -- Assets
(In thousands, except share data)
(Unaudited)
Balance Sheet (Quarterly) – Liabilities & SHE
(In thousands, except share data)
(Unaudited)
Balance Sheet (Annual) -- Assets
Source: First Solar Annual Report
Balance Sheet (Annual) – Liabilities & SHE
Balance Sheet Highlights
Source: First Solar Q3 2010 Earnings Call
Consolidated Income Statement (Annual)
Consolidated Income Statement (Quarterly)
(In thousands, except share data)
(Unaudited)
Net Sales & Diluted EPS Trends
Source: First Solar Q3 2010 Earnings Call
Income Statement Highlights
Source: First Solar Overview
Balance Sheet & Income Statement Items
(Based on 2009 Annual Report, In thousands of USD)
Company name
Ctry
Average
LSI CORPORATION
ELCOTEQ SE
AMKOR TECHNOLOGY
BENCHMARK ELECTRO
FIRST SOLAR, INC.
VISHAY INTERTECH
ANALOG DEVICES INC
SKYWORTH DIGITAL
NICHIA CORPORATION
THOMAS & BETTS Co.
TAIYO YUDEN LTD
Revenue
2,046,300
US
LU
US
US
US
US
US
BM
JP
US
JP
2,219,159 (1)
2,180,392 (2)
2,179,109 (3)
2,089,253 (4)
2,066,200 (5)
2,042,033 (6)
2,014,908 (7)
2,006,322 (8)
1,922,789 (9)
1,898,700 (10)
1,890,438 (11)
Net Income
Total Assets
78,949
2,521,158
1,545,547
2,967,930 (4)
742,295 (11)
2,432,909 (7)
1,465,720 (9)
3,349,512 (3)
2,719,546 (5)
3,404,294 (2)
1,427,392 (10)
4,471,562 (1)
2,453,407 (6)
2,298,175 (8)
1,461,104
35,687
383,209
1,090,903
2,652,787
1,516,446
2,529,149
561,641
4,008,799
1,341,209
1,420,082
(47,719) (8)
(151,328) (11)
155,980 (3)
53,895 (6)
640,138 (1)
(57,188) (9)
247,772 (2)
61,286 (5)
3,791 (7)
107,910 (4)
(146,096) (10)
Shareholders Funds
The figures displayed between brackets show the position of the company within the group
Data Source: MintGlobal Database
(5)
(11)
(10)
(8)
(2)
(4)
(3)
(9)
(1)
(7)
(6)
Financial Ratios Comparison
Company name
Ctry
Average
LSI CORPORATION
US
ELCOTEQ SE
LU
AMKOR TECHNOLOGY
US
BENCHMARK ELECTRO US
FIRST SOLAR, INC.
US
VISHAY INTERTECH
US
ANALOG DEVICES INC
US
SKYWORTH DIGITAL LTD BM
NICHIA CORPORATION
JP
THOMAS & BETTS CO.
US
TAIYO YUDEN LTD
JP
Current
Ratio
3.60
1.86 (8)
0.94 (11)
1.54 (9)
3.53 (3)
3.42 (6)
3.45 (5)
6.44 (2)
1.47 (10)
10.87 (1)
3.46 (4)
2.65 (7)
Profit Margin
4.07
ROE
ROA
Solvency
Ratio
-35.84
0.41
54.45
-5.89 (9)
-8.95 (9)
-7.74 (10) -472.73 (11)
5.81 (4)
33.02 (1)
2.48 (6)
4.76 (6)
33.22 (1)
25.87 (2)
-1.94 (8)
-2.62 (8)
14.76 (2)
11.76 (4)
4.13 (5)
14.75 (3)
0.82 (7)
0.39 (7)
7.96 (3)
11.27 (5)
-8.85 (11) -11.78 (10)
-5.15 (9)
-56.92 (11)
13.24 (3)
4.74 (6)
23.41 (1)
-1.27 (8)
9.99 (4)
15.80 (2)
0.56 (7)
8.59 (5)
-8.52 (10)
The figures displayed between brackets show the position of the company within the group
Data Source: MintGlobal Database
49.23 (8)
4.81 (11)
15.75 (10)
74.43 (3)
79.20 (2)
55.76 (6)
74.29 (4)
39.35 (9)
89.65 (1)
54.67 (7)
61.79 (5)
Consolidated Statements of Cash Flows (Annual)
Consolidated Statements of Cash Flows (Annual)
Statements of Cash Flows (Quarterly)
(In thousands, except share data)
(Unaudited)
Statements of Cash Flows (Quarterly)
(In thousands, except share data)
(Unaudited)
Operating Cash Flow & Free Cash Flow
Source: First Solar Q3 2010 Earnings Call
Recommendation
CANADIAN SOLAR INC.
North America Green Tech Inc.
Stock Market Overview

Stock Market Analysis
 Ticker
Symbol: CSIQ
 Stock Index Info: NASDAQ composite (Weight: 0.04%)
 Listed on NASDAQ Exchange in 2006
Time Frame: 1 Year
Source: http://phx.corporateir.net/
Stock Performance (1-yr)
Stock Performance (5-yrs)
Stock Performance (Max)
Corporation Background
Company Background





Found in Ontario, Canada 2001
Operate in 7 countries: Canada, China Germany,
Italy, Japan, Korea and US
Delivering solar modules to over 30 countries
7 manufacturing subsidiaries, total facility space of
256,439 sqm and module capacity of 1.3 GW
First solar PV manufacturer to achieve registration
with ISO: TS16949
Company Overview



Vertical integrated manufacturer of ingots, wafers,
cells, solar modules and custom-designed solar
power applications
Major Markets:
 South Korea, Germany and other European
countries
Major Customers:


Solar distributors and system integrators such as WSW engineering
Inc., Fire Energy S.L
Manufacturers who incorporate our customized solar modules in their
bus stop, road lighting and marine lighting products
Operating Strategy



Vertical integration
Achieving a higher ratio of internal cell production compared
to external sourcing
Develop new markets such as Canada, Japan and China for
strategic diversification

Major market exposure reduction

Market share expansion
Subsidiaries

CSI Project Consulting GMBH
 Direct

ownership: 70%
Canadian Solar USA Inc.
Management Team
Board of Directors & Executive Team

Board of Directors






Shawn (Xiaohua) Qu (Chairman, President & Chief Executive Officer (CEO) )
Arthur Chien (Director)
Robert McDermott (Independent Director)
Lars-Eric Johansson (Independent Director)
Michael G. Potter (Independent Director)
Executive Team




Shawn (Xiaohua) Qu (Chairman, President & Chief Executive Officer (CEO) )
Arthur Chien (Chief Financial Officer)
Mr. Gregory Spanoudakis (President of European Operations)
Yan Zhuang (Corporate Vice President, Global Sales and Marketing)
Management
Shawn (Xiaohua) Qu
President & Chief Executive Officer



Join Canadian solar since founding in 2001 and serve as board of
director in 2005
Background:
 Bachelor of science in applied physics from Beijing, China
in 1986
 Master of science in physics from University of Manitoba
in 1990
 Ph.D. degree in material science from the University of
Toronto in 1995
Previous positions:



As product engineer in ATS Automation Tooling Systems, Inc
Technical vice president (Asia Pacific region) of Photowatt
International S.A.
post-doctorate researcher at the University of Toronto
Management
Arthur Chien
Chief Financial Officer



Was first an independent director from 2005-2007, then become CFO since
2008
Background:

Bachelor of Science degree from the University of Science and
Technology of China

Master of Economics degree from the University of Western
Ontario, Canada
Previous Positions:

managing director of Beijing Yinke Investment Consulting Co. Ltd

Chief Financial Officer of China Grand Enterprises Inc

Chief Financial Officer of the Chinese operations of NV Bekaert SA
Management
Gregory Spanoudakis
President of European Operations
 Join as a Vice-president since 2002


Background:

Bachelor of business degree from Concordia University and University of
Essex, England

MBA degree on International Business Development from Concordia
University
Previous Positions:

2002 - 2008: Vice President for International Sales and Marketing

Involved in the semiconductor and solar power industries for 21 years, the
last 9 years of which have been in the solar power industry.

1988 - 1999: Senior Executive with Future Electronics, one of the world’s
largest distributors of semiconductor components, where he headed the
International Division and the Export Development program
Product Overview
Product Overview


Raw material: Polysilicon, Silicon wafer, solar cell
Polysilicon & Silicon wafer: import from supplier
 Germany

and China
Solar cell: Manufacture + import from supplier
 China
and Taiwan
Distribution Channels



Sales contracts to distributors
Sales to “Project Customers” – systems integrators,
EPCs and project developers
OEM/tolling manufacturing arrangements
Product Manufacturing process
Solar Cell Manufacturing Process
Solar cell production line has an annual capacity of 420 MW
Solar Modules Manufacturing
Process
Products Standard
High PTC Rating
Power Tolerances
Standard Modules

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Powered by high efficiency mono-crystalline or
poly-crystalline solar cells
Suitable for all types of solar applications
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Higher energy production
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Top ranked PVUSA (PTC) rating in California
Withstand heavier snow load
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From large scale solar farms to residential and commercial rooftop systems
Strong framed module, passing mechanical load test of 5400Pa
The average selling price of our standard solar modules
decreased from $4.23 per watt in 2008 to $2.13 per watt in
2009
NewEdge Modules CS6P-PX
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Allows for rail-free and fast installation
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Robust 60 cell solar module incorporating Zep Compatible frame
Applications

Residential roof-tops, commercial/industrial roof-tops, solar power
stations
NewEdge All-black CS5A-MX

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Use high efficiency mono-crystalline silicon
cells laminated with a black back sheet
Allows for rail-free, fast installation


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Robust 60 cell solar module incorporating Zep
Compatible frame
Designed for multiple types of mounting
system
Applications

Residential roof-tops, commercial/industrial roof-tops,
rural area applications, solar powerstations
BIPV Products
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Use double low iron tempered glass with solar
cells laminated in between
Used as part of the construction material for a
building and a source of electricity
Applications

roof, façade, skylight, shade
Competitions & Gov’t Regulations
Competition

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Other source of renewable/ alternative energy
International Companies (Solar):


China-based Companies (Solar):


Suntech, Yingli and Trina
Recently entered / Future competitors:


SunPower, First Solar and Sharp Solar
Semiconductor manufacturers
Competitors employed alternative material & solar
technologies: Thin Film materials

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Require minimal or no silicon (less affected by silicon cost)
Less efficient (Module conversion efficiencies range approx. 5%
to 11%)
China Gov’t Regulations

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Principal regulation governing foreign ownership of solar
power businesses: “Foreign Investment Industrial Guidance
Catalogue”
Classified as “encouraged foreign investment industry”
Eligible for preferential treatment



Exemption from customs and input Value added taxes, and
priority consideration in obtaining land use rights
Apply to construction and operation of solar power stations,
production of solar cell manufacturing machines, production of
solar powered air conditioning, heating and drying systems, and
the manufacture of solar cells.
25% Income Tax
Future operating risk


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Decline in market price of raw material 
decrease in revenue and market share
Demand depends on cost of third-party financing
arrangement with customers
Largely depends on Gov’t subsidise for solar power
Exchange rate risk (From 2007 onwards, majority of
sales dominated in Euros & depreciation of USD
against Euros in 2007)
Financial Analysis
Trends for Key Financials
Overview of Financial statement
Ratios
Quarterly B/S
Quarterly B/S (Cont’d)
Consolidated Balance sheet
Consolidated Balance sheet (Cont’d)
Income Statement
Income Statement (Cont’d)
Quarterly Income statement
Quarterly Income statement (Con
Cash Flow Statement
Cash Flow Statement (Cont’d)
Financial Forecast
Recommendation
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
Current + Liquidity Ratio, Inventory, Operating
Revenue, Short-term Borrowing, Total Current
Liability
Cash, Total Current Asset, Retained Earning
HOLD
S
Agenda- EFTs
S What are ETFs?
S Types of ETFs
S How EFTs compare to others?
S Competitive Performance
S Tax efficiency Investment Solution
S A Liquid Investment Solution
S The structural safety of ETFs
S Investment strategies using ETFs
S ETF Providers in Canada
What are ETFs?
Exchange-Traded Funds (ETFs)
S
Provide an efficient and simple way for investors to buy and sell an entire
basket of securities with a single transaction throughout the trading day.
S
ETFs are built like an index fund, but trade like a stock.
S
Designed to track a specific index and offer investors the advantages of
lower costs and improved tax efficiency
Types of ETFs
S Index ETFs
S Inverse and Leveraged ETFs
S Commodity ETFs
S Currency ETFs
S Actively managed ETFs
S Exchange Traded Notes (ETNs)
How ETFs compare to others?
How do ETFs compare?
Tax efficient
Low expenses
Low investment minimums
Intraday liquidity
Diversification
Fully invested
Portfolio transparency
Able to sell short
Able to buy on margin
Able to use limit and stop orders
Listed options available
Ease of dollar cost averaging
ETFs
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Stocks
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Index funds
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Competitive Performance
S Diversification
S Low expenses
S Tax efficiency
S Flexible
S Transparency
S Intraday liquidity
Tax efficiency Investment Solution
S The inherent tax efficiency of ETFs
- ETF shares trade, like stocks, on major stock exchanges.
- ETF shares are created and redeemed through “in-kind”
transactions rather than cash.
- Low portfolio turnover.
Tax advantages of ETFs
A Liquid Investment Solution
S Intraday Liquidity of ETFs vs. Mutual Funds
S Liquidity provides Flexibility
S ETF Structure Provides Two Levels of Liquidity
Intraday Liquidity of ETFs vs. Mutual Funds
Liquidity provides Flexibility
S ETFs are structured to provide superior flexibility and liquidity.
S Compare the flexibility in trading of ETFs, stocks and open-
ended mutual funds in the table below.
ETF Structure
ETFs offer unparalleled liquidity relative to mutual funds stocks.
ETF Structure Provides Two Levels of Liquidity :
S Market supply and demand
S Designated Brokers (DBs) - Key to Liquidity in the ETF Market
The structural safety of ETFs
Investment strategies using ETFs
S Asset allocation
S Portfolio completion
S Tax loss harvesting
Investment strategies using ETFs
S Core and satellite portfolio structure
S Diversification
S Hedging
ETF Providers in Canada
S Claymore Investments, Inc.
S Horizons AlphaPro ETFs
S Horizons BetaPro ETFs
S BMO Exchange Traded Funds
S Deutsche Bank
S Barclays Capital
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Fund Performance – 1 Year
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http://www.bl
oomberg.com/
apps/quote?tic
ker=FAN:US
S
1yr & 5yr
Fund Performance – 5 Year
S
http://www.bl
oomberg.com/
apps/quote?tic
ker=FAN:US
S
1yr & 5yr
Agenda- FAN
S Fund Objective
S Fund Overview & Characteristics
S Fees and Expenses of the Fund
S Performance
S After-tax returns
S Principal Risks
S Management
Global Wind Energy Index Fund (FAN)
S Fund Objective
Seek investment results that correspond generally to the
price and yield, before the Fund's fees and expenses, of
an equity index called the ISE Global Wind Energy
Index.
Fund Objective
S The index is constructed as follows:
S The wind energy industry are given an aggregate weight of
66.67% of the index
--smaller market capitalizations
S A modified market capitalization weighted methodology
S Be actively engaged in the wind energy industry
S must have a market capitalization of at least $100 million &
meet certain investability requirements.
S The index is reconstituted and rebalanced semi-annually.
Fund Overview & Characteristics
Details
Fund Ticker
CUSIP
Intraday NAV
Index Ticker
Index Inception Date
Fund Inception Date
Gross Expense Ratio (9/30/09)
Net Expense Ratio
Rebalance Frequency
Primary Listing
Marginable
Options
Short Sell
Fan
33736G106
FANIV
GWE
06-06-08
6/16/08
0.95%
0.60%
Semi-Annual
NYSE Area
YES
NO
YES
Fund Data
Number of Holdings
59
Maximum Market Cap. $185.64 Billion
Median Market Cap.
$2.17 Billion
Minimum Market Cap.
$82 Million
Price/Earnings
17.34
Price/Book
1.05
Price/Cash Flow
7.19
Price/Sales
0.9
Pursuant to contract, First Trust has
agreed to waive fees and/or pay fund
expenses to prevent the net expense
ratio of the fund from exceeding 0.60%
per year, at least until May 15, 2011.
Fees and Expenses of the Fund
S Shareholder Fees –None
S Annual Fund Operating Expenses
Management Fees
Distribution and Service (12b-1) Fees
Other Expenses
Total Annual Fund Operating Expenses
Fee Waiver and Expense Reimbursement
Total Annual Fund Operating Expenses
After Fee Waiver and Expense Reimbursement
0.40%
0.00%
0.55%
0.95%
0.35%
0.60%
Performance
Quarter End Performance Quarter
Fund Performance
NAV
After Tax Held
After Tax Sold
Market Price
Index Performance
ISE Global Wind Energy Index
MSCI World Index
Russell 3000® Index
YTD
4.37%
4.37%
2.84%
4.59%
1 Yr.
3 Yr.
5 Yr.
10 Yr.
Since Fund Inception
-31.28%
-31.51%
-20.34%
-31.02%
-35.10%
-35.70%
-22.70%
-35.08%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-36.42%
-36.74%
-29.46%
-36.49%
4.11% -30.61%
13.78% 2.58%
11.53% 4.78%
-34.21%
6.76%
10.96%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-35.78%
-7.09%
-4.90%
Annual Total Returns
First Trust ISE Global Wind Energy Index Fund
MSCI World Index
Russell 3000® Index
2009 9/30/10
26.01% -31.28%
29.99% 2.58%
28.34% 4.78%
After-tax returns
S After Tax Held returns represent return after taxes on
distributions.
S After Tax Sold returns represent the return after taxes on
distributions and the sale of fund shares.
S Market Price returns are based on the midpoint of the
bid/ask spread.
S After-tax returns are calculated using the historical highest
individual federal marginal income tax rates.
Top 10 Holdings
Top 10 Holdings
Iberdrola Renovables
EDP Renovaveis SA
REpower Systems AG
China Longyuan Power Group-H
Vestas Wind Systems
Gamesa Corporacion Tecnologica, S.A. (Gamesa)
Infigen Energy
Nordex AG
Fersa Energias Renovables SA
Hansen Transmissions
7.89%
7.65%
6.37%
6.21%
6.01%
4.63%
4.45%
4.41%
3.02%
2.65%
Sector Breakdown
Top Country Exposure
S
Performance
S Performance data quoted represents past performance.
S Past performance is not a guarantee of future results.
S The fund’s performance reflects fee waivers and expense
reimbursements
S Performance information for the ISE Global Wind Energy
Index is for illustrative purposes only and does not represent
actual fund performance
S Obtain performance information through the most recent
month-end by visiting ftportfolios.com.
PRINCAL RISKS…
RISKS…
S
Risks
S MARKET RISK
S NON-CORRELATION RISK
S REPLICATION MANAGEMENT RISK
S WIND ENERGY RISK
S NON-DIVERSIFICATION RISK
S UTILITIES SECTOR RISK
S LIQUIDITY RISK
S NON-U.S. SECURITIES RISK
S CURRENCY RISK
Management
S Investment Advisor First Trust Advisors L.P. (“First Trust”)
S Portfolio Managers
－ There is no one individual primarily responsible for portfolio
management decisions for the Fund.
－ Investments are made under the direction of a committee
the “Investment Committee”
S