Business
. A leading global provider of specialized manufacturing equipment and services essential for the
production of photovoltaic, or PV, wafers, cells and modules and polysilicon.
. Principal products are directional solidification systems, or DSS units, and chemical vapor deposition, or
CVD, reactors and related equipment. DSS units are specialized furnaces used to melt polysilicon and cast
multicrystalline ingots from which solar wafers are made. CVD reactors are used to react gases at high
temperatures and pressures to produce polysilicon, the key raw material used in solar cells.
> Backlog summary
. As of March 31, 2008, had received nine orders for an aggregate of 176 CVD reactors from six customers.
The first of these CVD reactors were delivered to the customer in August 2007, and SOLR believes they
are currently producing polysilicon, but SOLR will not recognize any revenue related to these orders for
CVD reactors until pre-established reactor output performance criteria have been met and final acceptance
by the respective customer has been confirmed.
. As of March 31, 2008, had received signed purchase orders or other written contractual commitments,
which SOLR considers its order backlog, with a value of approximately $1.3 billion.
. SOLR expects to convert nearly one-half of its order backlog to revenues by March 31, 2009
Recent developments
. On July 11, 2008, SOLR entered into an additional contract with DC Chemical Co., Ltd., or DC
Chemical, a Korean chemical company.
. Under the terms of the agreement, SOLR will provide DC Chemical with polysilicon CVD reactors with a
value equal to approximately $173 million.
. The agreement contemplates that SOLR would begin to deliver reactors to DC Chemical in April 2009.
. If SOLR delivers reactors in accordance with the delivery schedule, SOLR would expect to recognize
revenues following satisfaction of certain acceptance criteria under the agreement through February 2012.
Market opportunity
. PV systems are used in industrial, commercial and residential applications to convert sunlight directly into
electricity.
. Higher global energy prices, increased environmental awareness and the desire for energy independence
are accelerating the adoption of renewable energy sources, including solar power.
. Governments around the world have also implemented various tariffs, tax credits and other incentives
designed to encourage the use of renewable energy sources, including solar power.
> According to Solarbuzz, the global PV market grew to an estimated 2,826 megawatts, or MW, in 2007, as
measured by total PV modules delivered to installation sites during that year, representing a compounded
annual growth rate of over 47% since 2003.
. Solarbuzz estimates that PV industry revenues were approximately $17 billion in 2007.
. Solarbuzz projects that the global PV market and PV industry revenues will reach 9,917 MW and $39
billion, respectively, in 2012 in its "Green World" scenario, which SOLR believes represents the most
appropriate of three forecast scenarios published by Solarbuzz because it balances further growth resulting
from increased development of governmental incentive programs with anticipated continued polysilicon
supply constraints.
> The anticipated continued growth of the PV industry is expected to result in increased investment in
manufacturing capacity by polysilicon producers and solar companies.
. Total capital expenditures associated with new manufacturing capacity for the production of crystalline
silicon PV products in 2007 were approximately $5 billion, according to Solarbuzz.
. Approximately $2 billion of 2007 total capital expenditures were spent on new polysilicon production
capacity.
. In its "Green World" scenario, Solarbuzz estimates that, at the low end of its forecasts and excluding
emerging technologies, approximately 130,000 metric tons, or MT, of polysilicon production capacity will
be added by existing producers and new entrants from 2007 to 2012.
Industry growth drivers
. Demand for SOLR’s products and services is driven by end-user demand for solar power. Key drivers of
the growing demand for solar power include
. Increasing scarcity and rising prices of conventional energy sources
. The desire for energy security/energy independence to counter perceived geopolitical supply risks
surrounding fossil fuels
. Environmental pollution from fossil fuels and the resulting tightening of emission controls
. The increasingly competitive cost of energy from renewable energy sources
. Government incentive programs for the development of solar energy making solar energy more cost
competitive
. Changing consumer preferences towards renewable energy sources
Demand

. Demand for SOLR’s products has increased significantly over the past several years as a result of the
substantial investments in manufacturing capacity made by solar silicon, wafer, cell and module
manufacturers to meet growing demand for their products.
. From fiscal 2006 to fiscal 2008 revenues grew at a compound annual growth rate of 128%.
Customers
. Include several of the world's largest solar companies as well as companies in the chemical industry.
. Use of SOLR’s products requires substantial technical know-how and most customers rely on SOLR to
design and optimize their production processes as well as train their employees in the use of SOLR
equipment.
Operates through two segments
> PV (photovoltatic)
. The PV business manufactures and sells DSS (directional solidification systems) units, wafer cleaning and
etch systems, slurry recovery systems, cell testing and sorting equipment, and tabber/stringer machines, as
well as related parts and consumables.
. SOLR sells its products separately and as part of "turnkey solutions", where SOLR bundles equipment,
including third party equipment, with design and integration expertise.
. SOLR believes it is one of a small number of equipment manufacturers capable of providing PV turnkey
solutions.
> Polysilicon
. Offers CVD reactors and related equipment.
. Polysilicon is the key raw material used to produce solar cells. Growing demand for solar cells over the
past several years has resulted in a polysilicon shortage.
. SOLR believes the shortage has been intensified by the reluctance of existing polysilicon producers to add
additional capacity and a lack of new entrants due to the absence of commercially available polysilicon
production equipment.
. In 2005, SOLR made a strategic decision to develop the equipment and expertise necessary to facilitate
the entry of new participants into the polysilicon industry.
. As of March 31, 2008, SOLR had received nine orders for an aggregate of 176 CVD reactors from six
customers.
. The first of these CVD reactors were delivered to the customer in August 2007, and SOLR believes they
are currently producing polysilicon, but SOLR will not recognize any revenue related to these orders for
CVD reactors until pre-established output performance criteria have been met and final acceptance by the
respective customer has been confirmed.
Order backlog
. SOLR’s order backlog is comprised of signed purchase orders or other written contractual commitments.
. As of March 31, 2008, the order backlog was approximately $1.3 billion.
. Nearly one-half of the order backlog relates to orders expected to be recognized as revenue by March 31,
2009. At March 31, 2007 was approximately $399 million.
. SOLR generally expects to commence delivery of the solar products included in the order backlog over a
period ranging from six to twelve months and the polysilicon products included in the order backlog over a
period ranging from twelve to eighteen months, although portions of the related revenue are expected to be
recognized over a longer period
Competition
> PV products.
. The solar energy industry and wider renewable energy industry are both highly competitive and
continually evolving as participants strive to distinguish themselves within their niche markets and compete
with the larger electric power industry.
. In addition to solar equipment manufacturers, SOLR faces competition from companies producing and/or
developing other PV technologies.
> Polysilicon business faces direct and indirect competition.
. SOLR is not the only potential provider of polysilicon production equipment to the market.
. Further, the technology underlying SOLR’s CVD reactor product is not the only known technology for
producing polysilicon. SOLR’s CVD reactor is based on the Siemens process, which is a method whereby
silicon depositions from silane or trichlorosilane, or TCS, gas are grown on heated rods inside a cooled bell
jar.
. An alternative polysilicon production method is the fluidized bed reactor, or FBR, process, in which
polysilicon is grown from hot polysilicon granules suspended in an upward flow of silane or TCS gas
inside a specially designed chamber.
. The FBR process has certain advantages over the Siemens process, including allowing for the continuous
production and extraction of polysilicon, consuming less energy and being less labor intensive.
. There can be no assurance that the FBR process or other polysilicon growth technologies will not
supersede the Siemens process as the most commonly used method of polysilicon production.
> Existing direct competitors of SOLR’s polysilicon business include two German companies and one
United States company that SOLR believes have recently entered into several contracts to deliver CVD
reactors, based upon what SOLR believes is an existing proven Siemens process reactor design.
. Other existing direct competitors of SOLR’s polysilicon business include a Russian company and a
Chinese company.
. Although SOLR believes its CVD reactor product to be distinct from the competing products offered by
this Russian company and this Chinese company, there can be no assurance that SOLR’s CVD reactor
product will compete successfully with their products
> Polysilicon producers currently indirectly compete with SOLR’s polysilicon business. The demand for
SOLF’s CVD reactor and converter products is likely to be adversely affected by increases in polysilicon
supply.
. Announcements have indicated that major polysilicon producers, including Renewable Energy
Corporation ASA, Hemlock Semiconductor Corporation, Wacker Chemie AG, MEMC Electronic
Materials, Inc., Mitsubishi Electric Corporation, Sumitomo Electric Industries Ltd. and Tokuyama
Corporation, may be planning increases in their polysilicon production capacity.
Intellectual property
As of March 31, 2008, had eleven U.S. patents, seven pending U.S. patent applications, five foreign patents
and five pending foreign patent applications.
Private Equity funds control SOLR
Effective January 1, 2006, the business was acquired by GT Solar Holdings, LLC, a newly formed
ompany controlled by investment funds managed by GFI, a private equity investment firm focused on the
energy sector, and Oaktree, a global alternative and non-traditional investment manager, in the Acquisition.
Use of $500 million in IPO Proceeds
100% to selling shareholders
Plus a $90 million dividend was paid June 30, 2008