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Sector Head: Bryan Connelly & Jesse Hou Sr. Analyst: Ben Smith Jr. Analysts:

SECTOR: Energy COMPANY: GT Solar International Inc. Sector Head: Bryan Connelly & Jesse Hou Sr. Analyst: Ben Smith Jr. Analysts:. INVESTMENT RECOMMENDATION. Company. NYSE: SOLR. Lead supplier in Solar Manufacturing equipment Poly-silicon Production (Reactors)

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Sector Head: Bryan Connelly & Jesse Hou Sr. Analyst: Ben Smith Jr. Analysts:

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  1. SECTOR: EnergyCOMPANY: GT Solar International Inc. Sector Head: Bryan Connelly & Jesse Hou Sr. Analyst: Ben Smith Jr. Analysts:

  2. INVESTMENT RECOMMENDATION

  3. Company NYSE: SOLR • Lead supplier in Solar Manufacturing equipment • Poly-silicon Production (Reactors) • Solar Wafer Production (Furnaces) • Sapphire Production*(Furnaces) Newly acquired

  4. INDUSTRY SNAPSHOT

  5. Business TwoSegments Creates Polysilcon Chemical Vapor Deposition (CVD) Reactors Polysilicon Segment Forms Solar Wafers Directional Solidification System (DSS) Furnaces Photovoltaic Segment * Excludes Sapphire Segment

  6. Why Solar? • Growing solar EOR (enhanced oil recovering) facilities • In 2010 67% increase in revenues and 20.5% decrease in costs, making it fasting growing industry in energy sector • Decrease need of incentives in the future, due to continuous price drops. • Market based incentives like Solar Renewable Energy Credits (SRECs) • Cap and trade credit granted to firms with installed solar capacity that can be sold on spot markets • U.S DOE “SunShot Initiative” -$112.M over 5 years to support development of advanced PV related manufacturing • Aims to reduce total cost of PV systems to $1 per watt by 2020 (75% reduction) enabling competition with other form of energy • Intended to lay groundwork to create a world-leading industry

  7. Why GT Solar? Participates in multiple growth Industries Market leader in critical equipment for solar industry Diversification through high involvement in both the semiconductor, solar manufacturing and LED industries Sapphire materials used in LED applications, defense, medical, research and aerospace industries

  8. 5 year Trend

  9. Risks • International Business Nature – 81% Revenue from Asia • Few Products offered – 91% of Sales • Few Customers – 62% revenue from four customers • Government budgetary concerns could decrease subsidies/incentives for solar. • Renewable Energy budget is decreasing, was at $6B in 2009 and has been cut down to $2.5B. Source: WSJ, Businessweek, EERE

  10. Fundamentals

  11. Fundamental Forecasts

  12. Risks & Sensitivities

  13. VALUATION DCF – 50% Comps – 50% $14.96 +49.6% 1yr Target Price

  14. RECOMMENDATION Solar Ahead: • Massive increases in total installations and revenue • Greater concern for climate change • Mandatory targets for renewable energy

  15. Questions?

  16. EXHIBITS

  17. Comparables

  18. CLIENTS

  19. Products DSS Photovoltaic Furnace CVD Polysilicon Reactor

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