yingli green energy holding company limited
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Yingli Green Energy Holding Company Limited
Q4 and Full Year 2010 Earnings Call PresentationFebruary 18, 2011
Proprietary and Confidential
February 18, 2011
This presentation contains forward-looking statements. These statements constitute “forward-looking”
statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and
as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates,” “target” and similar statements. Such statements are based upon
management's current expectations and current market and operating conditions, and relate to events
Safe Harbor Statement
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management's current expectations and current market and operating conditions, and relate to events
that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict
and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s
actual results, performance or achievements to differ materially from those in the forward- looking
statements. Further information regarding these and other risks, uncertainties or factors is included in
Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does
not undertake any obligation to update any forward-looking statement as a result of new information,
future events or otherwise, except as required under applicable law.
Agenda
Business and
Development Highlights
Financial Review and
Update
Mr. Liansheng Miao,
Chairman & Chief Executive Officer
Mr. Bryan Li,
Director & Chief Financial Officer
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Update
Q&A Session
Director & Chief Financial Officer
Mr. Zhiheng Zhao, Vice President
Mr. Yiyu Wang, Chief Strategy Officer
Mr. Stuart Brannigan, MD of YGE Europe
Mr. Robert Petrina, MD of YGE Americas
Ms. Qing Miao, Director of Investor Relations
Q4 2010
Results2010 Results
FY 2011 Guidance
Q1 2011E FY 2011E
Shipments (MW) 21.6% increase QoQ1,061.6
(+102.1% YoY)
Mid-single digit
% increase QoQ1,700-1,750
Q4 & FY 2010 Financial Highlights and Outlook
• Sustainable profitability supported by historical high shipment and 32.9% gross margin in Q4
• Q4 Non-GAAP diluted EPS reached historical high of US$0.57
• Achieved PV module shipment of 1,061.6 MW, gross margin of 33.2% and Non-GAAP diluted
EPS of US$1.61 for the full year 2010
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Shipments (MW) 21.6% increase QoQ(+102.1% YoY) % increase QoQ
1,700-1,750
Revenue ($ million)616.1
(+23.8% QoQ)
1,893.9
(+72.3% YoY)-- --
Gross Margin (%) 32.9% vs. 33.3% in Q333.2% vs. 23.6% in
FY 200930-31% --
Non-GAAP EPS ($)0.57
(+4.5% QoQ)
1.61
(+423.2% YoY)-- --
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Quarterly Shipment Growth Rate, 2010 & Q1 2011E
Strong Demand in 2010 and Significant Visibility for 2011
• Target to deliver 1,700 to 1,750 MW PV
modules in 2011
Increased Forward Visibility
• Q4 shipment increased by 21.6% QoQ and reached historical high
• Full year 2010 shipment volume reached 1,061.6 MW, beating our previous guidance of
1,020 MW to 1,040 MW.
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• Mid-single digit % increase in shipment is
expected in Q1 2011 despite fewer
working days in Feb.
• Contracts for close to 1,400 MW of 2011
deliveries secured as of Feb. 18, 2011
• Majority of secured contracts include
prepayments or take-or-pay provision
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Moving towards an Increasingly Diversified Global Customer Base
• U.S. and China1 markets are expected to account for 25-30% of our global sales in 2011
• German-based customers account for material sales, but significant quantity will be reallocated to
other regions. e.g. 25% of shipments to German-based customers is expected to be reallocated to
Italy in 2011
Revenue By Geography2, 2009-2011E
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1. The majority of the shipments in China market are scheduled to be delivered in 2H 2011
2. Based on shipment destination, not country of final installation
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Why YGE Succeeds in Europe
Well-recognized & Bankable Brand
• Long & successful operating history
• Proven track record
• Constructive marketing strategy
• Strong commitment to CSR
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• Moving closer to changing solar consumers and the end users creating “pull demand”, as:
�FITs move towards a sustainable commercial & residential rooftop markets across Europe
�Expansion of recognition of Yingli brand though 2010 FIFA World Cup and Bayern Munich
sponsorships
• Long term partners still key part of our European sales , as they provide :
�Strong downstream branding and excellent depth of PV knowledge
�Successful and rapid deployment into new expanding markets not only Europe but worldwide.
European Strategy
Well Positioned for Continued Success in US Market
Sales In 20 US States, Canada & Caribbean
• 10%+ market share in 2010
• Diversified customer base spread across utility,
residential, and commercial sectors
• 2011 on track to increase residential and utility penetration
• 100%+ increase in MW shipment expected in2011
• ~200 MW under contract for 2011 deliveries as of Feb. 18,
2011
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Installations & Confirmed Reservations In CSI Q1 2010 – Q4 2010
Source: UBS
2011
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In China, YGE has Established a Leading Position with the
Golden Sun Program…
• Golden Sun Program:
� 272 MW projects announced in 2010
� Incentives for ~300 MW BIPV projects
launched in Feb. 2011
• 1GW of installation per year after 2012
• 20 GW of accumulated installation target by
Existing Policy & Target in China Increasing Sales in China
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• 20 GW of accumulated installation target by
2020
• Selected to supply approximately 70% of the total amount of 272 MW PV modules for projects
under the Golden Sun Program
• Received an advance payment of RMB 749.4 million, or 35% of the total purchase price from The
Ministry of Finance in December 2010
Established a Leading Position with the Golden Sun Program
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1. The majority of the shipments are scheduled to be delivered in 2H 2011
Cell Efficiency Increases and Roadmap
• Average cell efficiency of 18.50% on PANDA commercial lines in 2010
• Achieved record efficiency of 19.89% on PANDA trial production lines
PANDA (Mono/N-Type) & Multicrystalline Efficiency Roadmap1 (2010-2012E)
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1. The cell efficiency figures of PANDA in 2012 refer to results in lab.
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Revenue (USD Millions) OPEX
Operating
Margin$358.9
$398.1
$490.9
YGE Continues to Focus on Operational Efficiency
Maintained strong GM performance despite 400 MW expansion and polysilicon plant ramp up
$616.1
YGE Profitability and Operating Expenses, Q1 2010-Q4 2010
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Q1 2010 Q2 2010 Q3 2010 Q4 2010
Gross
Margin33.3% 33.5% 33.3% 32.9%
Operating
Margin21.9% 20.9% 22.4% 23.2%
OPEX as %
of Revenue11.4% 12.6% 10.9% 9.7%
COGS
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Sustained Profitability
YGE has maintained industry leading margins while returning consistent EPS
YGE Net Margin and EPS (Non-GAAP), FY 2009-2010
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2012
Sustainable Industry Cost Leadership
Leveraging economies of scale and scope to continue to drive down costs
Decrease in manufacturing cost
Silicon and Non-silicon Costs, FY 2008-2010
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2012
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P&L Summary
USD (Millions) Q3 2010 4Q 2010 FY 2009 FY 2010 QoQ YoY
Revenue 490.9 616.1 1,062.8 1,893.9 23.8% 72.3%
Gross Profit 163.6 202.7 251.2 629.2 22.2% 142.2%
Gross Margin 33.3% 32.9% 23.6% 33.2% -- --
Operating
Expenses53.6 59.7 204.5 207.9 9.9% 1.7%
EBIT Margin 22.6% 21.8% -1.5% 19.3% -- --
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EBIT Margin 22.6% 21.8% -1.5% 19.3% -- --
Interest Expenses 13.8 19.8 55.1 58.7 41.4% 2.9%
Tax Expenses 15.9 13.5 (4.7) 45.6 -16.0% --
Net Income 68.2 84.0 (77.9) 215.0 21.5% --
Net Margin 13.9% 13.6% -7.3% 11.4% -- --
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2012
Balance Sheet Summary
USD (Millions) As of June 30, 2010 As of September 30, 2010 As of December 31, 2010
Cash and Restricted Cash 576.8 630.2 985.0
Accounts Receivable 212.2 307.2 318.2
Inventories 275.5 335.5 382.6
Advances to Suppliers 64.8 74.3 87.0
Net PP&E 1,285.4 1,436.7 1,505.1
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2012Total Assets 2,778.8 3,190.8 3,669.8
Short-term Borrowings (incl. current
portion of long-term Borrowings)598.9 551.8 842.1
Long-tern Borrowings 221.3 447.9 378.3
Total Liabilities 1,475.7 1,752.0 2,108.3
Total Shareholders' Equity 1,303.1 1,438.7 1,561.5
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Thank you!
Please contact our IR team at [email protected] or visit
www.yinglisolar.com for more information.
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Qing Miao
Director, Investor Relations
+86 312 892 9787
Matthew Li
Manager, Investor Relations
+86 312 892 9787
Bryan Li
Chief Financial Officer
+86 312 892 9787
Contact US
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