#1JA SOLAR JA Solar Company Presentation#2Company Overview EYER BURGER MB001 JA SOLAR Headquarters Date est. IPO ■ Beijing, China ■May 2005 / February 2007 (NASDAQ: JASO) ■5.5 GW solar module Annual Capacity ■■5.5 GW solar cell ■■2.5 GW silicon wafer Shipments ■2014: 3.1 GW ■2015: 4.0 GW ■2016 guidance: 4.9-5.0 GW Employees ■ 12,550 as of end of 2015 Business Highlights ■Industry Leader ■Solid Finance ■ Optimized Vertically Integrated Model ■ Global Market Coverage and Diversified Customer Base ■ Advanced Innovation ■ High conversion efficiency Products Advantages ■ High reliability ■ High yield efficiency 2#3Advanced Innovation ■Global leader of PV cell technologies through innovation and invention PV technology leader with a six-month to twelve-month leading edge ahead of the others < The first company in the world started mass producing and commercializing selective emitter, MWT, and PERC structured PV cells The first company in the world applied double-printing technology to all cell manufacturing lines ■ Industry front runner of PV module performance based on proprietary technical approaches Pursuing process optimization for PV modules assembly process, improving their performance and reliability, using proprietary technologies and various innovative approaches Consistently out-performing competitors' modules by 5-10watts in terms of power rating JA SOLAR 3#4Advanced Innovation -Product and R&D Milestones MAPLE Cell: Quasi-Mono, 17.9% 2011.04 2010.10 2011.06 PERCIUM Cell: RIECIUM Cell: R5 Cell: Passed Passivated Black silicon Mono 18.8%, Multi 17.2% PID-resistant cell Long-term backside and local technology, and module Reliability Tests BSF, Multi 18.4% Mono 20.3% Multi Cell: 19% 2011.12 2012.10 2013.08 2013.10 2013.12 2014.09 2012.06 2013.07 2013.10 2013.12 2014.01 JA SOLAR SECIUM Cell: MWT: CYPRESS Cell: Selective Mono 19.4% Mono 19%, CYPRESS2: Mono 19.3%, Emitter, Multi 17.6% Multi 17.5% Multi 17.8% Fast-installation Modules for Residential Smart DC-DC Modules Light Weight Modules Multi Cell: 20% Mono18.4% Rooftop Mass production of 270W multi module/60 cells/4BB 100% in compliance with double 85 anti-PID 2015.04 2015.06 2015.12 2016.02 Mass production of 280W mono module/60 cells/4BB Mass production of Percium 300W module 4#5Product Advantages Maximize Return On Your Solar Projects Lower LCOE JA SOLAR High Reliability High Conversion Efficiency High Yield Efficiency 5#6High Conversion Efficiency JA SOLAR Mono Module Power Comparison (60 Cells/W) Mono Module Conversion Efficiency Comparison Mono Cell Conversion Efficiency Comparison 23% 19% 300 22% 290 21% 18% 295 280- 280 270 17% 260 250 JA PERCIUM JA CYPRESS2 18.04% 20% 20.8% 19.9% 19% 17.13% 18% 16% JA PERCIUM JA CYPRESS2 17% JA PERCIUM JA CYPRESS2 Multi Module Power Comparison (60 Cells/W) 280 17% 270 275 270 260 16% 250 Multi Module Conversion Efficiency Comparison 20% Multi Cell Conversion Efficiency Comparison 16.82% 16.51% 19% 19% 18% 18.5% 17% 240 15% 16% JA RIECIUM JA CYPRESS2 JA RIECIUM JA CYPRESS2 JA RIECIUM JA CYPRESS2 100% Positive Power Tolerance:0~+5W 6#7Product Advantages - High Reliability -Industry-leading Cell Technology JA SOLAR ✓ World-class cell R&D staff and facilities, leading other manufacturers by 6-12 months in cell R&D since 2008 The only company 100% implementing high-aspect-ratio double-printing in the industry Addresses contact resistance and solderability optimization without compromising one or another Less finger interruption Superior PID-resistance performance Line-interruption Single Printing wafer Double Printing Wafer 7#8JA SOLAR Product Advantages - High Reliability ✓ EVA -High-quality Components from Best Suppliers. High transparency, reliable quality High durability against PID degradation and UV yellowing Back Sheet Fluoride material ensures excellent resistance against harsh environment and low water vapor permeation Junction Box Source from reputable tier 1 diode manufacturers to reduce hot spot risks Potted J-Box ensures excellent ingress protection performance Aluminum Frame Glass EVA Glass Closed Nanoscale structure AR-coating ensures excellent reliability and anti-soiling performance ✓ High transparency, reliable quality Excellent scratch resistance Aluminum Frame Outstanding surface treatment technology and higher line density ensure strong corrosion resistance and mechanical strength ✓ High salt & ammonia resistance Back Sheet 8#9Product Advantages - High Reliability JA SOLAR ✓ 100% in-house automatic module manufacturing to guarantee product quality and performance Manufacturing Process, Quality, and Facility Certified by TÜV SÜD, CTF and ETL, and Third-Parties Agencies Including PI-Berlin and Solar-IF Long-term Reliability Tests Mechanical load test 5400 Pa to 10000 Pa (about 2×IEC standard) ✓ HAST test DH1000 (85°C and 85% RH) to 121°C 3 times atmospheric pressure and 100%RH Thresher test (about 3×IEC standard) Environment Endurance Tests Ammonia Resistance Test Salt Mist Spray Test, S02 Resistance Test, Dust and Sand Test ✓ Hot-Dry Climate, Damp-Heat Climate, and Plateau Climate Conditions IEC Standard texts Thermal cycling, 200 cycles Damp heat 1000 hour UV 15KWH Humidity freeze 10 cycles Hot spot endurance 5 hour Thresher test Thermal cycling, 600 cycles Damp heat 3000 hour UV 45KWH Humidity freeze 30 cycles Hot spot endurance 20 hour PI TuVNORD 本報 cac 9#10JA SOLAR Product Advantages - High Reliability 100% Mass-production of PID-resistant Cell and Double 85 Anti-PID for All Modules PID-Resistance Performance: Potential Induced Degradation (3) PI TUV SOD red sample 1 sample2 sample3 sample4 sample5 sample sample sample8 Average 0.00% -0.50% -1.00% -1.50% -1.65% Fraunhofer -1.75% -2.00% -1.89% -1.98% -1.17% -1.12% -1.17% -1.57% -1.83% 500h Test RIECIUM Module Degradation After 500-hour PID Test (Test Condition: 85%RH 85°C -1000V 500Hr) Excellent Quality Management System and Product Quality Assurance ISO 14001 TUV SOD CHEAS 18001 RTIFIE QUALITY Net ED STEM C ED Intertek US CUL US LISTED www. ID: ww.tuv.com TUVRheinland 000002702 www (TüV) Source: INTERCERY CE TUV SOD 3E BRU SOLAR ** cac MCS Clean Energy Council JET www.let.or.jp PV CYCLE VERIFIED Intertek 10#11Product Advantages - High Yield Efficiency JA SOLAR Normalized EQE Outstanding Low-light Performance 0.8 0,5 0.4 9 3 3 3 3 3 3 3 2 2 1.0 0.9 PERCIUM Normal Mono 0.0 300 400 500 600 700 800 900 1000 1100 Current [A] Relative efficiency (%) Conventional Mono Conventional Poly PERCIUM Mono 102% 101% 100% 99% 98% 97% 98% 95% 94% 93% 100 200 300 400 500 600 700 800 900 1000 1100 Irradiance (W/M²) Relative module efficency comparison under different irradiance Wavelength (nm) EQE-External quantum efficiency The modules are classified into three current category Current class-H (high) ✓ ✓ Current class-M (middle) ✓ Current class-L (low) 9 8765432101234567 Current class-M Source: TUVRheinland 11#12After Sale Service Product Warranty ✓ 12-year warranty on materials and workmanship ✓ 25-year linear power warranty (80%) • 12-year product warranty • 25-year linear power output warranty 100% 97.5% 90% 80% Added Value From Warranty 1 5 10 15 20 25 Year JA SOLAR Additional Insurance Options SOLAR PowerGuard SPECIALTY INSURANCE SERVICES INSURANCE & FINANCE 12#136,000 5,000 4,000 3,000 2,000 1,000 0 277 Industry Leader -18.7GW cumulative shipments by the end 2016 Q3 JA SOLAR Shipment (MW) Shipment Ratio (%) 4900-5000 100% 90% 80% 3991 70% Cell 60% 3058 50% 2072 40% 3,726 1695 1702 2,407 30% 1463 1,174 939 20% 1,246 1,210 10% Module 763 898 509 651 265 200 0% 2008 2009 2010 2011 2012 2013 2014 2015 Cell Module 2016E 2009 2010 2011 2012 2013 2014 2015 13#14Industry Leader JA SOLAR -7GW cumulative Mono module shipments by the end of Nov 2016 Shipment (MW) 6000 5000 4000 3000 4900-5000 3991 3058 Cumulative shipment ratio (%) 2072 2000 1695 1702 60% 1463 1600 1263 1000 786 817 668 663 745 509 12277 224 0 2008 2009 2010 2011 2012 2013 2014 2015 2016E Mono Total 40% Mono ■Poly#15Top 4 Module Manufacturer in 2015 JA SOLAR Top 10 Module Manufacturers by PV-Tech 2015 2 1 2 34569 7 8 9 10 Source: PV-Tech Module Manufacturer Trina CanadianSolar Jinko JA Hanwha Q CELLS First Solar Yingli SFCE Renesola SunPower Corp 15#16Global Leading Bankable Module JA SOLAR 2014 Top bankable PV module brands by BNEF Survey 2016 Top bankable PV module brands by BNEF Survey Rank PV Module Manufacturer 'Never PV Module 'Never 'Yes' 'No' Rank 'Yes' 'No' Heard' Manufacturer Heard' 1 First Solar 100% 0% 0% 1 Trina 100% 0% 0% 23456 2 Hanwha SolarOne 93% 7% 0% 2 Hanwha Q Cells 95% 5% 0% 3 JA Solar 93% 7% 0% 3 SunPower 95% 5% 0% 4 Trina Solar 93% 7% 0% 4 First Solar 95% 5% 0% Yingli 93% 7% 0% 5 Canadian Solar 95% 0% 5% 6 Hanwha Q-Cells 87% 13% 0% 7 Jinko Solar 87% 13% 0% 67 6 JA Solar 91% 5% 5% 7 Kyocera 91% 9% 0% 8 Canadian Solar 80% 20% 0% 8 Jinko 86% 14% 0% 9 Panasonic 80% 20% 0% 9 Mitsubishi 86% 9% 5% 10 Renesola 80% 20% 0% 10 Panasonic 77% 14% 9% 11 SunPower 80% 20% 0% 11 LG Electronics 73% 14% 14% 12 REC Solar 80% 7% 13% 12 REC Solar 73% 23% 5% 13 Sharp 73% 27% 0% 13 Samsung 73% 9% 18% 14 Solar Frontier 73% 7% 20% 14 Sharp 73% 27% 0% 15 Mitsubishi 67% 33% 0% 15 Renesola 68% 32% 0% 16 Kyocera 67% 20% 13% 16 Solar Frontier 68% 18% 14% 17 ET Solar 60% 27% 13% 17 SolarWorld 64% 18% 18% 18 SunEdison 60% 33% 7% 18 Chint/Astronergy 59% 18% 23% 19 China Sunergy 53% 27% 20% 19 Hyundai Heavy 59% 18% 23% 20 BYD 47% 47% 7% 20 SunEdison 59% 32% 9% Source: BNEF 16#17Solid Finance for Future Growth Debt Ratio JA SOLAR 100% 76% 79% 80% 82% 80% 66% 60% 40% 20% 0% JA Peer A Peer B Peer C Peer D Current Ratio 140% 133% 118% 120% 111% 101% 96% 100% 80% 60% 40% 20% 0% JA Peer C Peer D Peer A Peer B Source: Q3 2016 Financial Reports 17#18Solid Finance for Future Growth -Altman-Z scores of pureplay solar companies JA SOLAR First Solar, 3.31 JA Solar, 1.95 S-Energy, 1.91 SunPower, CSIQ, 1.23 1.18 Trina, 0.91 Jinko, 0.81 Hareon, 0.70 ୮ SolarWorld, 1.46 Asia Source: "Q1 2016 Global PV Market Outlook" REC Silicon, -1.10 Americas Europe Yingli, -1.17 18#19Optimized Vertically Integrated JA SOLAR Polysilicon Silicon Wafer 2.5 GW Cell 5.5 GW JA SOLAR Module 5.5 GW System 19#20State-of-The-Art Production Facilities JA SOLAR JASOLAR Ningjin Cell and Module Facility Hebei Province Cell: 2000 MW Module: 500 MW Yanjiao Wafer Facility Hebei Province 1000 MW Lianyungang Wafer Facility Jiangsu Province 1500 MW JA Office in Shanghai Headquarter in Beijing Xingtai Module Facility Hebei Province 1500 MW JA SOLAD Fengxian Module Facility Shanghai City 1500 MW Lab partnership with TÜV and Intertek JASOLAR ARN Hefei Module Facility Anhui Province 2000 MW Yangzhou Cell and R&D Facility Jiangsu Province 2500 MW JA Malaysia Cell Facility 500MW 1000MW long-term expansion target 20#21Portugal JA SOLAR Global Market Coverage ― A global sales network over 90 countries Canada External shipments by region (% of total MW shipped) 2014 Others 3% LAK France Spain South Africa Hungary Turkey Jord United Arab Emirates Saup Araba India Thailand Indonesia Korea USA Japan JASOLAR Australia Mexico Amercias 6% APAC 14% China 33% Europe 13% Japan 31% 2015 Others 3% APAC 23% China 43% Europe 11% Japan Amercias 3% 17% 21#22JA SOLAR Top Brand PV Modules 2016 Europe JA Solar ranks among the top PV brands in Europe according to the result of survey carried out by EUPD research among installers on brands awareness, customers' choice and distribution EUPD RESEARCH EUPD RESEARCH EUPD RESEARCH TOP BRAND PV TOP BRAND PV TOP BRAND PV MODULES EUROPE 2016 MODULES THE NETHERLANDS 2016 MODULES UNITED KINGDOM 2016 EUPD RESEARCH TOP BRAND PV MODULES SWITZERLAND 2016#23JA SOLAR -partnerships with various global leading corporations Diversified Customer Base 熱 中国华能集团公司 CHINA HUANENG GROUP ☑ 中国电力投资集团公司 中国国电集团公司 CHINA POWER INVESTMENT CORPORATION CHINA GUODIAN CORPORATION solarcentury Enel T British Solar CONERGY e.on 丸紅株式会社 m Marubeni GCL TAK 高島株式会社 23#24JA SOLAR Selected Projects Social Circle Solar Farm Bank: Bank of America Georgia USA 38.7 MW Utility Ground Mount Project in UK Chittering Great Knowles, UK 11.6 MW 100MW project in Dunhuang, China Bank: ICBC (Industrial and Commercial Bank of China) Dunhuang, China 100 MW Pakistan 100MW project in Bahawalpur Bank: Bank of Punjab / ADB (Asian Development Bank) Bahawalpur, Pakistan 100 MW 24#25JA SOLAR Selected Projects TSE 30MW in Kanchanaburi Bank: Bangkok Bank Kanchanaburi, Thailand 30 MW Largest Solar Installation in Israel, Arava Desert and Negev Desert, Israel 35 MW 30MW Project in Japan Tomakomai, Japan 30 MW Largest Solar Installation in North Africa Kenitra, Morocco 2 MW 25#26JA SOLAR CSR-Corporate Activities UNIOR UN ■ USA: Donated modules to Stanford University for its construction of the Bioengineering & Chemical Engineering building. LELA FOR *** 1891 UNIVERSITY *** OOLS OF ENGINEERING AND MEDICINE Bioengineering and Chemical Engineering The Bad Casal ng will ch the achiectal of my 12 y de buildings and pledging ad The oral and we former leth Thelling of bo Labository spat s ■China: Sponsors Peking University, Tsinghua University, and Tongji University in their participation at the "Solar Decathlon SD" NG UNT VER 大 北京大學 1907 清華大學 同濟大學 1898 PEKING UNIVERSITY UNIV TONGJI UNIVERSITY ■ Haiti: Following Haiti' s earthquake, JA donated PV modules to the local fish farmers for electricity generation 26#27Harvest the Sunshine Premium Cells, Premium Modules Thank you ! JA SOLAR December 5, 2016