2Q 2011 Update

September 2011

Disclaimer
The presentation is prepared by LDK Solar Co., Ltd. (LDK" or the Company) and is being
presented solely for the purpose of corporate communication and general reference. The
presentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis of
investment decision for any class of securities of the Company in any jurisdiction. All such
information should not be used or relied on without professional advice. The presentation is a
brief summary in nature and does not purport to be a complete description of the Company, its
business, its current or historical operating results or its future prospects.
This presentation contains forward-looking statements that involve risks and uncertainties. All
statements other than statements of historical facts are forward-looking statements. These
statements involve known and unknown risks, uncertainties and other factors that may cause our
actual results, performance or achievements to be materially different from those expressed or
implied by the forward-looking statements.
This presentation is provided without any warranty or representation of any kind, either
expressed or implied. The Company specifically disclaims all responsibilities in respect of any
use or reliance of any information, whether financial or otherwise, contained in this presentation.

LDK at a Glance
Our Business:

Financial Update:

Large-scale

2Q 2011:

Revenue: $499.4 mm

Low-cost

Net Income: ($87.7) mm

Vertically-integrated
High-quality solar products

Si

Top US-Listed Solar Company Globally by Assets

#1 by Assets, 1H 2011
US$ MM
$7,057
$5,435

$4,939

$4,385
$3,329
$2,639

$2,316

$1,874
$1,553

Suntech

First Solar

Yingli

SunPower

Trina Solar

JA Solar

Renesola

Jinko Solar

$1,478

Hanwha
SolarOne

Top 2 US-Listed Solar Company by Operating Income

#2 by Operating Income, Last Twelve Months

US$ MM
$571
$470
$421
$375

$271

$241

$239
$137
$79
$42

First Solar

Yingli

Trina Solar

Renesola

JA Solar

Jinko Solar

Hanwha
SolarOne

Suntech

Sunpower

Key Growth Strategies

A Long-Term
Winner
in Solar & LED
Industry

Large-Scale Vertical Integration Across Solar

Value Chain

Continue Cost Reductions To Achieve Grid

Parity

Maintain Premium-to-Market ASP by Offering

High Quality Products and Services

Penetrate & Expand PV Projects Business with

Financing Solutions from China-Based Banks

Diversify and Grow Customer Base

Capture Growing Opportunities in LED Industry

Strong Growth in Solar Demand

To Continue in 2011 and 2012
(GW)
50
47.2

45
40

38.2

35
31.2

30
26.3

25
21.9

18.2

20

18.2
14.8

13.1

15
10
5.0

6.4

5.9

15.7

7.5

5
0

2008

Forecast

2009

Actual

2010

2011

Forecast Range

Source: Marketbuzz 2Q 2011.

2012

2013

2014

Truly Vertically Integrated Leader in the Solar Industry

Si

Silicon
Recycling

Leadership

Capacity

In-House

6,000 8,000
MT per year

Largest
recycling
capacity
globally

Polysilicon

In-House &
Third Party

Ingot / Wafer

Cell

In-House

In-House &
Third Party

Module

In-House

Current:
12,000 MT

Current:
3.7 GW

Current:
1.3 GW

Current:
1.6 GW

1H 2012:
25,000MT

2011:
4.0 GW

2011:
2.0 GW

2011:
3.0 GW

Expect to be
a top
producer by
capacity
globally

#1 in wafer
shipments
globally

Expect to be
Expect to be
top 5 in
#1 in c-Si
capacity
capacity
globally by end
globally by
#2 in capacity
of
2011
end of 2011
globally by end
of 2011
8

System / Project

In-House &
Third Party

>500 MW
pipelines in
Europe, US,
Asia and
China
Global
presence
U.S. SPI, LDK
Europe & SGT,
China EPC
Projects

Benefits of Vertical Integration

Less Than 300 Miles From Silicon to Module

Capture Higher
Margins Across
Value Chain
Expand
Addressable
Market

Stability of Supply

Reduce Volatility of
Any Single
Business

Increase Demand
Visibility

Customer
Diversification

Quality Control

Polysilicon Capacity and Production Scale-Up

Polysilicon Capacity (MT)

Polysilicon Production (MT)

Ma Hong Plant

Ma Hong Plant

2,172

22,000

4Q10

Xia Cun Plant

+ 7,000
(Debottlenecking)

1H12

Total

951

1,049

463

1Q10

2Q10

3Q10

Xia Cun Plant

3,000
+ 2,000 (Line 2
& Debottlenecking)

1,000

4Q10

1,626
+ 5,000 (Line 3)

10,000

2,487

1H12

240

245

1Q10

2Q10

4Q10

1Q11

299

307

4Q10

1Q11

287

179

3Q10

Total

25,000

2Q11

2,479

2Q11
2,774

1,925

11,000

1,196

1,228

703

4Q10

1Q10

1H12
10

2Q10

3Q10

4Q10

1Q11

2Q11

Processing Cost Reduction Polysilicon

Polysilicon Production Cost
(approximate % from 4Q10)

Measures
A. Use of natural gas
B. Scale up to reduce depreciation and power
consumption
C. De-bottlenecking
D. Yield improvement

E. Localize consumables
F. Co-gen to supply steam
G. Others
Q4 A
2010

11

Q4
2011E

Wafer Capacity and Production Scale-Up

Increase in Conversion Rate

Wafer Capacity (MW)

We are using this new conversion convention
beginning 2011

Effective Jan 1st, 2011, LDK has adjusted its

efficiency calculation to reflect current
industry wafer/cell conversion efficiencies

4,000

We now assume an average conversion

efficiency of 16.9% for mono/multi-crystalline
wafer/cell (up from 15.6%), or 4.1w / piece

3,000

1,800

Historical conventions for watt per piece:

2008:
2009 & 2010:
2011:

1,400

3.7w / piece
3.8w / piece
4.1w / piece

Note: For 6-inch wafer

2008

12

2009

2010

2011E

Processing Cost Reduction Wafer

Measures

Target Wafer Production Cost ($/Watt)

Thinner wafer for in-house cell use

Target $0.02/Watt/Quarter
in Wafer Production Cost Through 2011

Reduce kerf loss

Based on 3.8w / pc

Larger ingot sizes

Based on 4.1w / pc

$0.72 $0.70

Optimizing polysilicon mix through partial use

of in-house polysilicon production

$0.64
$0.61

Proprietary equipment upgrades to increase

capacity

0.41

0.39

0.31

$0.53 $0.60

0.30

0.34

0.27

Improvements in wafer quality

Greater manufacturing and purchasing
economies of scale

0.31

0.31

0.33

Increased consumables and polysilicon

recycling

1Q10

2Q10

3Q10

Slurry recovery

0.31

4Q10

0.26

0.26

1Q11

2Q11

Processing Costs

$0.54

$0.52

0.28

0.27

0.26

0.25

3Q11E 4Q11E

Polysilicon Cost

(1) Increase in 3Q10 processing cost is due to a one-time expenditure

on spare parts and maintenance to equipment to improve future yield.

13

Processing Cost Reduction Cell

Cell Capacity Scale Up (MW)

Target Cell Processing Cost ($/Watt)

1,260

Target $0.01/Watt Reduction in Cell

Processing Costs from 4Q10 to the end of 2011
570

$0.27
120
3Q10

$0.23

180

$0.21
4Q10

1Q11

(1)

$0.21
$0.19

2Q11

$0.18

Measures
Increase economy of scale
Lower usages of paste
Improve overall yield
3Q10

Improve cell efficiency

4Q10

1Q11

2Q11

3Q11E

4Q11E

(1) 2Q 11 cell processing cost increased due to initial ramp up

of Hefei facilities

14

Fast Track to Achieve Grid Parity

In-House Silicon-To-Module R&D Production Program:
Already Succeeded At Below $1.00/Watt In Dec 2010
($/Watt)

< $1.00
< $0.90

75%
80%

Cost Reduction Roadmap:

<$0.90/Watt in 2011
25%
Dec-10

20%
Poly

Non-silicon Cost

Ingot &
Wafer

Cell

Silicon Cost
15

Module

Q4 2011
Target

Fast Track to Achieve Grid Parity (Cont)

China

US

($/KWh)

($/KWh)

$0.12

$0.12

$0.11

$0.11

$0.10

$0.10

$0.09

$0.09

Current Retail
Electricity Price

$0.08

Current Retail
Electricity Price

$0.08

$0.07

LDKs LCOE

$0.07

LDKs LCOE

$0.06

$0.06

$0.05

$0.05

$0.04

$0.04
2010

2011

2012

2013

2010

Source: Company estimates, EIA, Xinhua News

LCOE stands for Levelized Cost of Electricity. Calculated by using current LDK system cost, divided by the present value of
electricity produced by the PV system during its entire usage life. LCOE calculations assume: (1) Module and BOS cost
decrease 5% per year from 2010; (2) Sunlight condition of 1500 kwh/kwp for China and USA; (3) Discount rate at 5%; (4)
System usage life of 20 years; (5) Before LDKs margin

16

2011

2012

2013

Update on System / Project Pipelines

Projects under development and pipeline
China

Europe

U.S.

SPI

LDK Europe

209 MW

Italy: 50
MW

Solar Green
Technology
19 MW

Bulgaria:
15 MW
Germany:
20 MW

17

96 MW

Asia

Thailand:
9 MW
India: 5 MW

Diversified and High-Quality Customer Base

LDK supplies leading solar companies with PV products around the world!
France

Belgium

Netherlands

Germany

Czech Republic
HHIKOMAX

Japan
Canada
Korea

U.S.
KOMEX

Portugal
Taiwan

Spain
China

Golden Sun Projects

Polysilicon Customers
Wafer Customers

Italy

Greece
Big Solar

Module Customers

18

India
Australia

Revenue by Geography
2Q11 Sales

Europe
24.7%

1Q11 Sales

America
7.4%

America
0.2%

China
39.6%

Europe
27.6%

China
44.4%

Asia
Pacific,
others
30.7%

Asia
Pacific,
others
25.4%

19

Continue to Enhance Balance Sheet

Focus on strong operating cash flow and capex efficiency

Capital markets strategies:

January 2011: Follow-on offering of US$164 million
Convert short-term maturities into long-term maturities
February 2011: Bond offering of RMB1.2 billion
Polysilicon fundraising strategies
June 2011 closed CDB investment of US$240 million
Monetizing PV project assets

20

Strong Sales Track Record

Wafer Shipments
OEM

(MW)
1,000

Own Sales

800
427

511

600

340

400

52

200

288

257

378

4Q'09

1Q'10

$0.83

133

570
83

628
32

632
8

429
1

170
487

596

624

2Q'10

3Q'10

4Q'10

1Q'11

2Q'11

$0.85

$0.87

$0.94

$0.84

$0.66

428

ASP
$/w
(own
sales)

$0.83

Module Shipments

(MW)
250

OEM
Own Sales

200
150
100

74
23

31

50
0
ASP
$/w
(own
sales)

23
4Q'09

$1.64

31
1Q'10

$1.74

94
6

74

88

2Q'10

3Q'10

$1.77

157
4

$1.88

21

153

119
16
103

4Q'10

1Q11

$1.86

$1.79

79
14
65
2Q'11

1.56

Strong Operating Performance

Revenue

Gross Profit

(US$ MM)

(US$ MM)

1,200

300

$251.4 $241.6

$920.9
900
$565.3

600
300
0

$304.6

$766.3

$675.6

200

$150.0

$499.4

$347.6

$101.8

100

$54.5
$30.2

4Q'09

1Q'10

2Q'10

3Q'10

4Q'10

1Q'11

2Q'11

4Q'09

Gross
9.9%
Margin

$11.0
1Q'10

15.7% 18.0%

Operating Income

Operating
Margin

200
150
100
50
0
(50)
(100)
(150)

$196.1

$119.5
$78.6
$33.0

($47.9)
4Q'09

NM

4Q'10

1Q'11

22.2%

27.3% 31.5%

2Q'11

2.2%

(US$ MM)
$203.8

-$16.1

3Q'10

Net Income

(US$ MM)
250
200
150
100
50
0
(50)
(100)

2Q'10

1Q'10

9.5%

2Q'10

3Q'10

13.9% 17.7%

4Q'10

1Q'11

22.1% 25.6%

2Q'11

NM

Net Income
Margin

22

$145.2 $135.4
$93.4
($24.3)

$7.2

$45.0

($87.7)
4Q'09

1Q'10

2Q'10

3Q'10

NM

2.1%

8.0%

13.8%

4Q'10

1Q'11

15.8% 17.7%

2Q'11

NM

3Q 2011 and FY 2011 Outlook

3Q 2011 Guidance

FY 2011 Guidance

$630mm $680mm

$2.5bn $2.7bn

11.0% 16.0%

15.0% 20.0%

Wafer Shipments

350MW 400MW

1.8GW 2.0GW

Module
Shipments

250MW 300MW

750MW 800MW

2,600MT 2,700MT

10,000MT 11,000MT

200MW 220MW

600MW 700MW

Revenues

Gross Margin

In-house Polysilicon
Production
In-house Cell Production

23

Unaudited Condensed Financial Information

Income Statement Summary
(US$ MM, except per ADS data)
2Q 2011

1Q 2011

499.4

766.3

11.0

241.6

Income from operations

(47.9)

196.1

Net income attributable to LDK Solar shareholders

(87.7)

135.4

($0.62)

$0.95

Net sales
Gross profit

Net income per ADS, Diluted

Balance Sheet Summary

As of June 30, 2011
(US$ MM)

2Q 2011
636.4

Cash and Cash Equivalents

Restricted Cash

515.3

Short-term borrowings and current installments of long-term borrowings

Convertible senior notes, less debt discount (current portion)
Long-term borrowings, excluding current installments
Convertible senior notes, and senior RMB-denominated notes, less debt discount (long-term)
Total LDK Solar Co., Ltd. shareholders equity
Non-controlling interests
Total equity

24

2,214.0
0.0
804.4
297.0
1,347.8
13.5
1,361.3

Thank You
www.ldksolar.com

25