10/31/17 Energy Buy Pitch: FSLR

Tailwind: Green Regulation -It is also imaginable we should expect regulatory tailwinds in the future -There recently have been some major regulations promoting renewable energy Ie. banning sale of electric cars by 2040 in UK and France -only about 1% market share now -Will be 100% in 2040 As a result: electric car demand has been rapidly increasing -Can expect at some point their will be stricter regulation on oil and natural gas and a large shift towards renewable like as in the move to electric cars -that will act to propel First Solar’s growth similar to cars

Solar tech cad vs si Crystalline-silicon: more efficient, long-lasting, high heat resistance Thin-film: cheaper, more flexible, less susceptible to damage CDTE better in hot, humid, sunny FSLR series 4: 120 W/panel c-Si panels: 315 W/panel FSLR series 6: 420 W/panel Comparison of pay back time for energy investment (epbt)

Company profile

Investment Thesis The solar industry has massive growth potential and provides crucial diversification for the Energy Industry Group First Solar is a leading solar manufacturer in a strong financial position to ride out short-term downturns in the industry FSLR differentiates itself from peers through its fortress balance sheet and impressive proprietary technology advancing quickly through industry-leading R&D Current Price $53.83 Price Target $60.00

Stock Details PE Ratio: 23.7 Dividend yield: 1.23% 52 High: 175.43 52 Low: 144.00 Comps??

Diversification (peter) Energy group is overexposed to oil and gas- need some renewable exposure Renewables are great for diversification because they often track inversely with fossil fuels -0.01 correlation coefficient with CVX; -0.18 with ENB

Risks A significant drop in the price of oil could undermine demand, especially in developing markets Dramatic advances in silicon solar tech undermine demand Oversupply could adversely affect prices/margins. Reduction/elimination of government subsidies and incentives for clean energy may impact sales

General Comps

Valuation Comps

Analyst Recommendations (10/9)

Tariffs

Questions?