| Metric [USD] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Modules Segment** | **846 million**  **[FSLR_3230456_2]**  | **536.59 million**  **[0001274494-23-000010_fslr-20230331.htm:39]**  | **802.2 million**  **[0001274494-23-000022_fslr-20230630.htm:44]**  | **800.4 million**  **[0001274494-23-000025_fslr-20230930.htm:48]**  | **1.2 billion**  **[FSLR_3375234_3]** **[0001274494-24-000003_ex991pressreleaseq4-2023fi.htm:1]** **[0001274494-24-000004_fslr-20231231.htm:162]**  | **793.4 million**  **[0001274494-24-000022_fslr-20240331.htm:41]**  | **1,008,765,000**  **[0001274494-24-000033_fslr-20240630.htm:33]**  | **886,655,000**  **[0001274494-24-000038_fslr-20240930.htm:35]**  |
| **Other Segment** | N/A  **[FSLR_3230456_2]**  | **11.70 million**  **[0001274494-23-000010_fslr-20230331.htm:39]**  | **8.4 million**  **[0001274494-23-000022_fslr-20230630.htm:44]**  | **0.7 million**  **[0001274494-23-000025_fslr-20230930.htm:48]**  | N/A  **[FSLR_3375234_3]** **[0001274494-24-000003_ex991pressreleaseq4-2023fi.htm:1]** **[0001274494-24-000004_fslr-20231231.htm:162]**  | **674,000**  **[0001274494-24-000022_fslr-20240331.htm:41]**  | **1,717,000**  **[0001274494-24-000033_fslr-20240630.htm:33]**  | **1,013,000**  **[0001274494-24-000038_fslr-20240930.htm:35]**  |
| **Total Net Sales** | **1 billion**  **[FSLR_3230456_2]**  | **548.29 million**  **[0001274494-23-000010_fslr-20230331.htm:39]**  | **810.7 million**  **[0001274494-23-000022_fslr-20230630.htm:44]**  | **801.1 million**  **[0001274494-23-000025_fslr-20230930.htm:48]**  | **1.2 billion**  **[FSLR_3375234_3]** **[0001274494-24-000003_ex991pressreleaseq4-2023fi.htm:1]** **[0001274494-24-000004_fslr-20231231.htm:162]**  | **794.1 million**  **[0001274494-24-000022_fslr-20240331.htm:41]**  | **1,010,482,000**  **[0001274494-24-000033_fslr-20240630.htm:33]**  | **887,668,000**  **[0001274494-24-000038_fslr-20240930.htm:35]**  |

5dc45f56d52740038bfb4b8784e42e83dc2700534df4b323f466cef0b3150175

| Metric / Quarter                        | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Advanced Manufacturing Production Credit ($M) | N/A     | N/A     | **$155M** **[FSLR_3255892_5]** **[FSLR_3382959_6]** | **$205M** **[FSLR_3363017_5]** | **$229M** **[FSLR_3375234_3]** | **$194M** **[FSLR_3381887_17]** | **$240M** **[0001274494-24-000032_ex991pressreleaseq2-2024.htm:1]** | **$60.4M** **[0001274494-24-000038_fslr-20240930.htm:49]** |
| Module Collection and Recycling Liability ($M) | **$128.1** **[0001274494-23-000002_fslr-20221231.htm:146]** **[0001274494-23-000002_fslr-20221231.htm:84]** | **$130.3** **[0001274494-23-000010_fslr-20230331.htm:20]** **[0001274494-23-000010_fslr-20230331.htm:48]** | **$132.1** **[0001274494-23-000022_fslr-20230630.htm:24]** **[0001274494-23-000022_fslr-20230630.htm:55]** | **$130.1** **[0001274494-23-000025_fslr-20230930.htm:25]** **[0001274494-23-000025_fslr-20230930.htm:60]** | **$135.1** **[0001274494-24-000004_fslr-20231231.htm:146]** | **$134.3** **[0001274494-24-000022_fslr-20240331.htm:22]** **[0001274494-24-000022_fslr-20240331.htm:49]** | **$134.8** **[0001274494-24-000033_fslr-20240630.htm:25]** **[0001274494-24-000033_fslr-20240630.htm:54]** | **$139.0** **[0001274494-24-000038_fslr-20240930.htm:27]** **[0001274494-24-000038_fslr-20240930.htm:57]** |
| Warranty Coverage Degradation Factor Min (%) | **0.3%** **[0001274494-23-000002_fslr-20221231.htm:87]** **[0001274494-23-000010_fslr-20230331.htm:34]** | **0.3%** **[0001274494-23-000010_fslr-20230331.htm:34]** | **0.3%** **[0001274494-23-000022_fslr-20230630.htm:38]** | **0.3%** **[0001274494-23-000025_fslr-20230930.htm:42]** | **0.3%** **[0001274494-24-000004_fslr-20231231.htm:6]** **[0001274494-24-000004_fslr-20231231.htm:78]** | **0.3%** **[0001274494-24-000022_fslr-20240331.htm:36]** | **0.3%** **[0001274494-24-000033_fslr-20240630.htm:40]** | **0.3%** **[0001274494-24-000038_fslr-20240930.htm:65]** |
| Warranty Coverage Degradation Factor Max (%) | **0.5%** **[0001274494-23-000002_fslr-20221231.htm:87]** **[0001274494-23-000010_fslr-20230331.htm:34]** | **0.5%** **[0001274494-23-000010_fslr-20230331.htm:34]** | **0.5%** **[0001274494-23-000022_fslr-20230630.htm:38]** | **0.5%** **[0001274494-23-000025_fslr-20230930.htm:42]** | **0.5%** **[0001274494-24-000004_fslr-20231231.htm:6]** **[0001274494-24-000004_fslr-20231231.htm:78]** | **0.5%** **[0001274494-24-000022_fslr-20240331.htm:36]** | **0.5%** **[0001274494-24-000033_fslr-20240630.htm:40]** | **0.5%** **[0001274494-24-000038_fslr-20240930.htm:65]** |

1869ce52332544826bbcbdeaff40683e24def6bab1ef3fb88c457cf11cbdaf24

f27c6132bbccae46bc6343ec4efe5803171b4f4b09c58e91671158454f583b64

First Solar, Inc. (FSLR) is a leading American solar technology company and global provider of photovoltaic (PV) solar energy solutions. The company specializes in the design, manufacture, and sale of cadmium telluride (CdTe) solar modules, which convert sunlight into electricity **[0001274494-24-000004_fslr-20231231.htm:5]** **[0001274494-24-000004_fslr-20231231.htm:118]** **[0001274494-24-000004_fslr-20231231.htm:19]**. These modules are produced using advanced thin film semiconductor technology, offering a high-performance, lower-carbon alternative to conventional crystalline silicon PV solar modules **[0001274494-24-000004_fslr-20231231.htm:5]** **[0001274494-24-000004_fslr-20231231.htm:118]** **[0001274494-24-000004_fslr-20231231.htm:19]**. First Solar's business activities are centered around providing eco-efficient solar energy solutions, with a strong focus on reducing environmental impacts and enhancing the social and economic benefits of their products across their life cycle **[0001274494-24-000004_fslr-20231231.htm:5]** **[0001274494-24-000038_fslr-20240930.htm:37]** **[0001274494-24-000004_fslr-20231231.htm:118]**.

1. **Modules Business** - Sells solar modules to system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators, driving the majority of the company's consolidated operating results.
2. **Residual Business Operations** - Engages in project development activities, provides operations and maintenance (O&M) services, and sells PV solar power systems, contributing a smaller portion to the overall revenue.

df8c7a3e0552cfeb14f45ebd52e1f7902325da19ac0739ee432ae1facc142513

f20a7c3155b533e6d80749c0d0868afb948d85dbd17059b4df758f2d3fd8305b

1. Given the uncertainties surrounding the upcoming November elections and the potential for policy reversals affecting the Inflation Reduction Act, how is First Solar adjusting its business strategy to mitigate risks associated with possible changes in U.S. trade and renewable energy policies?
2. With the projected U.S. oversupply position of approximately 40 gigawatts by the end of 2024 due to China's continued overcapacity and dumping practices, how does First Solar plan to maintain its market share and profitability in this challenging environment?
3. You mentioned that some multinational oil and gas and utility companies are reconsidering their strategic direction by potentially pivoting back to fossil projects; how might this shift impact First Solar's future bookings and growth projections, especially in relation to demand from these customers?
4. Can you elaborate on the significance of your recent acquisition of TOPCon technology patents and how you plan to leverage them to strengthen your competitive position, particularly regarding enforcement actions against potential infringers?
5. Considering the potential for new tariffs on imports and the threat of critical circumstances determinations imposing retroactive cash deposit requirements, what contingency plans does First Solar have to address possible adverse impacts on gross margins from your Malaysia, Vietnam, and India production sold into the U.S. market?

3f8026fa9ae162e8822b8899860c63a8f42d5bf19a5bd2dcf5dd713bab424f19

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from Debt [USD, Thousands]

Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

bd7a4fdad1f2124697fe9fcd91a0f05db0e7cd7c915303be5c780481afc29075

United States

Germany

France

Canada

United Arab Emirates

All other foreign countries

Japan

Chile

India

Australia

Turkey

Jordan

Spain

Honduras

Total Revenue

60baf81c82d1e8414a4551df436cb12a041737de5a664be776e496161b9f72e5

Advanced Manufacturing Production Credit ($M)

Module Collection and Recycling Liability ($M)

Warranty Coverage Degradation Factor Min (%)

Warranty Coverage Degradation Factor Max (%)

843ae0d97909e5dff568f5565e66dac4ea9735413e8927b0420bb3410a37b203

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Net Sales**: $4.4 billion to $4.6 billion  **[FSLR_3375234_12]** .
  - **Gross Margin**: $2 billion to $2.1 billion, approximately 46%  **[FSLR_3375234_12]** .
  - **SG&A Expenses**: $170 million to $180 million  **[FSLR_3375234_12]** .
  - **R&D Expenses**: $200 million to $210 million  **[FSLR_3375234_12]** .
  - **Total Operating Expenses**: $455 million to $485 million  **[FSLR_3375234_12]** .
  - **Operating Income**: $1.5 billion to $1.6 billion  **[FSLR_3375234_12]** .
  - **Interest Income, Interest Expense, and Other Income**: $35 million to $50 million  **[FSLR_3375234_12]** .
  - **Full Year Tax Expense**: $135 million to $150 million  **[FSLR_3375234_12]** .
  - **Earnings Per Diluted Share**: $13 to $14  **[FSLR_3375234_12]** .
  - **Capital Expenditures**: $1.7 billion to $1.9 billion  **[FSLR_3375234_13]** .
  - **Net Cash Balance at Year-End 2024**: $0.9 billion to $1.2 billion  **[FSLR_3375234_13]** .
  - **Module Production**: 15.6 to 16 gigawatts  **[FSLR_3375234_11]** .
  - **Module Sales**: 15.6 to 16.3 gigawatts  **[FSLR_3375234_11]** .
  - **Fleet ASP Sold**: $0.282 per watt  **[FSLR_3375234_11]** .
  - **Cost Per Watt Produced**: $0.187 to $0.189 per watt  **[FSLR_3375234_11]** .
  - **Cost Per Watt Sold**: Reduction of approximately 7% versus the prior year  **[FSLR_3375234_11]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Volumes Sold**: 15.6 to 16.3 gigawatts  **[FSLR_3381887_4]** .
  - **Earnings Per Share**: $13 to $14  **[FSLR_3381887_10]** .
  - **Net Cash Balance**: $600 million to $900 million  **[FSLR_3381887_5]** .
  - **Capital Expenditures (CapEx)**: Increased by $0.1 billion  **[FSLR_3381887_4]** .
  - **Section 45X Tax Credits**: $400 million in the first half, $620 million in the second half  **[FSLR_3381887_5]** .
  - **Earnings Cadence**: 35% to 40% in the first half, 60% to 65% in the second half  **[FSLR_3381887_5]** .
  - **Net Sales and Cost-of-Sale Profile**: 35% to 40% in the first half, 60% to 65% in the second half  **[FSLR_3381887_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Earnings Per Diluted Share**: $13 to $14  **[FSLR_3395038_11]** .
  - **Volumes Sold, Revenue, and Net Cash**: Toward the bottom of the guidance range  **[FSLR_3395038_4]** .
  - **Net Sales and Cost of Sales Profile**: 40% in the third quarter, 60% in the fourth quarter  **[FSLR_3395038_4]** .
  - **Section 45X Tax Credits**: $240 million in the third quarter, $335 million in the fourth quarter  **[FSLR_3395038_4]** .
  - **Operating Expense Profile**: Evenly spread across the remainder of the year  **[FSLR_3395038_4]** .
  - **Earnings Per Diluted Share Profile**: 40% in the third quarter, 60% in the fourth quarter  **[FSLR_3395038_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not provide information about the Q3 2024 earnings call for First Solar (FSLR). Therefore, I cannot provide the guidance metrics from that specific earnings call.

926c4e4db6abd8838482025251c6da43f964c1a17eabb8a2317d4baeeaaaffd7

ef6c3a481240c81b261bfc70dae4792722e1bc8c35c9d6db468c9740441429ed

Modules

Other

- Solar Power Systems

- O&M Services

- Energy Generation

- EPC Services

- Module Plus

Components Segment

Systems Segment

01b2dded08d3d5801f24aea7803415f9605fc5b56087da80a157369a0662a302

| Name                  | Position                          | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------|-----------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark R. Widmar        | Chief Executive Officer           | July 2016        | Mark R. Widmar has been serving as the CEO of First Solar since July 2016. He joined First Solar in April 2011 as CFO and also served as the company's Chief Accounting Officer from February 2012 through June 2015. Prior to his role as CEO, he was the CFO from March 2015 to June 2016  **[0001274494-24-000004_fslr-20231231.htm:28]** **[0001274494-24-000007_fslr-20240315.htm:30]** **[0001274494-24-000018_fslr-20240327.htm:30]** **[0001274494-23-000004_fslr-20230330.htm:29]** .                                                        |
| Alexander R. Bradley  | Chief Financial Officer           | October 2016     | Alexander R. Bradley was appointed as the CFO of First Solar in October 2016. He joined the company in May 2008 and previously served as Vice President of both Treasury and Project Finance  **[0001274494-24-000004_fslr-20231231.htm:28]** **[0001274494-23-000002_fslr-20221231.htm:26]** .                                                                                                                                                           |
| Georges Antoun        | Chief Commercial Officer          | July 2016        | Georges Antoun was appointed as the Chief Commercial Officer of First Solar in July 2016. He initially joined First Solar in July 2012 as the Chief Operating Officer and was later appointed as President, U.S. in July 2015  **[0001274494-24-000004_fslr-20231231.htm:29]** **[0001274494-23-000002_fslr-20221231.htm:27]** .                                                                                                                          |
| Michael Koralewski    | Chief Supply Chain Officer        | November 2022    | Michael Koralewski was appointed as the Chief Supply Chain Officer at First Solar in November 2022. He joined First Solar in 2006 and has held several senior roles in operations and quality management  **[0001274494-24-000004_fslr-20231231.htm:29]** **[0001274494-23-000002_fslr-20221231.htm:27]** .                                                                                                                                               |
| Kuntal Kumar Verma    | Chief Manufacturing Officer       | November 2022    | Kuntal Kumar Verma was appointed as the Chief Manufacturing Officer at First Solar in November 2022. He joined First Solar in 2002 and has served in progressively more senior roles in engineering and manufacturing  **[0001274494-24-000004_fslr-20231231.htm:29]** **[0001274494-23-000002_fslr-20221231.htm:28]** .                                                                                                                                  |
| Patrick Buehler       | Chief Product Officer             | December 2022    | Patrick Buehler was appointed as the Chief Product Officer at First Solar in December 2022. He has over 20 years of operational and technical experience and joined First Solar in 2006  **[0001274494-24-000004_fslr-20231231.htm:30]** **[0001274494-23-000002_fslr-20221231.htm:28]** .                                                                                                                                                                 |
| Markus Gloeckler      | Chief Technology Officer          | November 2020    | Markus Gloeckler was appointed as the Chief Technology Officer of First Solar in November 2020, after serving as Co-Chief Technology Officer starting in July 2020. He joined First Solar in 2005  **[0001274494-24-000004_fslr-20231231.htm:30]** **[0001274494-23-000002_fslr-20221231.htm:28]** .                                                                                                                                                       |
| Caroline Stockdale    | Chief People and Communications Officer | October 2020 | Caroline Stockdale joined First Solar in October 2019 as Executive Vice President, Human Resources and Communications, and was appointed Chief People and Communications Officer in October 2020  **[0001274494-24-000004_fslr-20231231.htm:30]** **[0001274494-23-000002_fslr-20221231.htm:29]** .                                                                                                                                                       |
| Jason Dymbort         | General Counsel and Secretary     | July 2020        | Jason Dymbort joined First Solar in March 2008 and was appointed as General Counsel and Secretary in July 2020. He oversees the company's legal department globally  **[0001274494-24-000004_fslr-20231231.htm:31]** **[0001274494-23-000002_fslr-20221231.htm:29]** .                                                                                                                                                                                    |

82e66560226432864de37df2bfb0273bd26a39f2b8bf9c292fe8b7a0408ea66c

**Annual guidance for FY 2024:**
- **Earnings Per Diluted Share (EPS)**: $13 to $13.50  **[FSLR_3404411_9]** **[FSLR_3404411_11]**  (lowered from $13 to $14  **[FSLR_3395038_11]** )  
- **Operating Income**: $1.48 billion to $1.54 billion  **[FSLR_3404411_9]**  (no prior guidance)  
- **Net Sales**: $4.1 billion to $4.25 billion  **[FSLR_3404411_8]**  (no prior guidance)  
- **Volumes Sold**: 14.2 to 14.6 gigawatts  **[FSLR_3404411_8]**  (no prior guidance)  
- **Gross Margin**: $1.95 billion to $2.0 billion  **[FSLR_3404411_8]**  (no prior guidance)  
- **SG&A Expenses**: $445 million to $475 million  **[FSLR_3404411_8]**  (no prior guidance)  
- **Interest Income, Interest Expense, Other Income, and Tax Expense**: $80 million  **[FSLR_3404411_9]**  (no prior guidance)  
- **Capital Expenditures (CapEx)**: $1.55 billion to $1.65 billion  **[FSLR_3404411_9]**  (no prior guidance)  
- **Net Cash Balance**: $0.5 billion to $0.7 billion  **[FSLR_3404411_9]**  (no prior guidance)

a29431dc39097fccd37e301861113ea5a844579a22bdac56ff26a80369e45ccc

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2000  **[0001274494-24-000004_fslr-20231231.htm:114]**    | Present  | Current auditor   |

c1d81937dca571db84cfa3fd935611d4932989d1301b91dd8680100218b6490a

7571993ef8ac0f84cb80c66fdd9049902e7080235ccdfd89fda23f61168a365f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

9b3bf5c6edad4ea004a132d9e8b5eb6ddbd002e8df3015e7acd7b9344d4a76f6

- Total Revenue: $887.668 million (+11% YoY)  **[0001274494-23-000025_fslr-20230930.htm:1]** **[0001274494-24-000038_fslr-20240930.htm:1]**   
- Modules Segment Revenue: $886.655 million (+11% YoY)  **[0001274494-23-000025_fslr-20230930.htm:29]** **[0001274494-24-000038_fslr-20240930.htm:35]**   
- Operating Income (EBIT): $322 million (**+18% YoY**)  **[0001274494-23-000025_fslr-20230930.htm:1]** **[0001274494-24-000038_fslr-20240930.htm:1]**   
- Net Income: $312.956 million (+17% YoY)  **[0001274494-23-000025_fslr-20230930.htm:1]** **[0001274494-24-000038_fslr-20240930.htm:1]**   
- Diluted EPS: $2.91 (+16% YoY)  **[0001274494-23-000025_fslr-20230930.htm:1]** **[0001274494-24-000038_fslr-20240930.htm:1]**   

2694a097b0a14eaf30f25d2a566c377e74a36b2a507674345e8b6521ee83983f

1. **Guidance Reduction and Project Delays**  
   **Q:** Can you explain the volume guidance reduction and project delays?  
   **A:** Management reduced the midpoint of volume sold guidance by **1.2 GW**, from **15.6 GW** to **14.4 GW** [Index 4]. The majority of the reduction, just under **1 GW**, is due to challenges in the India market and shifting production to the U.S. to capitalize on better pricing [Index 4]. While there have been some U.S. project delays, they are mostly minor and related to development issues rather than financing [Index 4]. The company is mitigating risks by shipping to warehouses or reallocating products, and they are enforcing contracts where necessary [Index 4].

2. **Series 7 Warranty Issue**  
   **Q:** Has the Series 7 warranty issue been resolved?  
   **A:** Yes, the warranty issue affecting initial Series 7 modules has been identified and corrected [Index 2]. The issue stemmed from two manufacturing problems during startup: one involving residual materials on the glass due to extended dwell time before washing, and an error in calculating the engineering performance margin [Index 2]. Both issues have been remediated, and current production is unaffected [Index 2].

3. **India Production Shift to U.S. Demand**  
   **Q:** Can the U.S. market absorb increased volumes from India?  
   **A:** Management believes the U.S. market has sufficient demand to absorb the increased volumes redirected from India, particularly in **2025** and **2026** [Index 3]. They have a strong contracted backlog and expect U.S. demand to match available supply [Index 3]. By **2027**, they anticipate the India market will strengthen, allowing for a balanced supply between markets [Index 3].

4. **Bookings ASP Trends**  
   **Q:** Why did the bookings ASP decrease, and what is expected?  
   **A:** The reported bookings ASP of **$0.304** per watt is based on a small volume and includes low-priced sales of old inventory [Index 0]. Adjusting for technology upgrades and other factors, the ASP increases to **$0.32** [Index 0]. Management advises not to read too much into this figure due to the limited volume booked [Index 0].

5. **CuRe Plan and Margins**  
   **Q:** What is the CuRe plan's impact on ASPs and margins?  
   **A:** CuRe production will start at the end of this year, producing just under **0.5 GW** by Q1 next year for field performance testing [Index 3]. Significant revenue impact is expected from **2026** onward, with about **$0.7 billion** in contractual revenue adjusters tied to CuRe technology [Index 3]. This will lead to improved ASPs and margins as CuRe is rolled out across their operations [Index 3].

ff529a6f90cf27a2c55b2b2a3efcea4e9a232293af815186a7edc4b4a7b69bb7

d68d4466e5dc2efefe54ede7ac7423096f1e72f7af78acd54998b6049064eecc

| Year | Amount Due (USD, Millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|--------------------------------|----------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 208.261                        | Current Portion of Debt                | N/A                    | 35.8% = (208.261 / 581.998) * 100 **[0001274494-24-000038_fslr-20240930.htm:21]**                                         |
| 2025     | 29.057                         | India JPM Working Capital Facility     | N/A                    | 5.0% = (29.057 / 581.998) * 100 **[0001274494-24-000038_fslr-20240930.htm:21]**                                          |
| 2025     | 70.474                         | India HSBC Working Capital Facility    | N/A                    | 12.1% = (70.474 / 581.998) * 100 **[0001274494-24-000038_fslr-20240930.htm:21]**                                         |
| 2025     | 17.917                         | India Citibank Working Capital Facility| N/A                    | 3.1% = (17.917 / 581.998) * 100 **[0001274494-24-000038_fslr-20240930.htm:21]**                                          |
| 2029     | 464.550                        | India Credit Facility                  | N/A                    | 79.8% = (464.550 / 581.998) * 100 **[0001274494-24-000038_fslr-20240930.htm:21]**                                         |

5605d73a6ea34055851c19aeb4aff2c152a755386da51ffbf5ddba266c3e8737

- **First Solar has maintained strong bookings at stable pricing**, with recent bookings at **$0.30 per watt excluding India**, and is successfully contracting out to **2029 and 2030**, indicating sustained demand and pricing stability.  **[FSLR_3363017_8]**
- The company boasts a **record contracted backlog of over 80 gigawatts**, providing strong visibility into future revenues and highlighting the value customers place on First Solar's offerings.  **[FSLR_3363017_9]**
- **First Solar's Series 7 modules are 100% domestically sourced**, making them **materially advantaged** in enabling the **domestic content bonus under the IRA**, providing a competitive edge over manufacturers who cannot meet these requirements.  **[FSLR_3363017_11]**

42d689330b9eb00a15cb6655906ffe79b871ad4d7fda625b84a097caf2c5d842

- **Excess panel inventory in the U.S., estimated at 30 to 40 gigawatts at year-end 2023**, may reduce demand for First Solar's products.  **[FSLR_3381887_16]**
- **Potential customer cancellations and delays** could negatively impact revenues, as customers exercise **termination for convenience clauses** or request delivery schedule shifts.  **[FSLR_3381887_16]**
- **Uncertainty in policy environment** and trade disputes, including potential **antidumping (AD/CVD) tariffs**, may pose challenges to First Solar's operations and demand outlook.  **[FSLR_3381887_17]**

ea015af2028dfe5e56e94b83b890519496abd679b4a81a9133962051b49ac99c

1. **Pricing Dynamics**  
   **Q:** Can you discuss factors influencing pricing and its outlook?  
   **A:** Management reported recent bookings achieving ASPs of **$0.32** per watt.  **[FSLR_3375234_15]**  They attribute this to First Solar's value proposition, including certainty, responsible solar practices, and strong brand recognition.  **[FSLR_3375234_15]**  Management expects pricing momentum to remain steady through 2024, preferring to be disciplined and maintain ASPs rather than chase deals.  **[FSLR_3375234_15]**  They acknowledge some elasticity of demand but believe they can manage price erosion by engaging customers who value their attributes.  **[FSLR_3375234_15]** 

2. **Module Volume Overhang**  
   **Q:** What is the impact of customers unable to take delivery of modules?  
   **A:** A corporate customer is unable to take delivery of **381 megawatts** due to financial distress.  **[FSLR_3375234_15]**  This is considered a one-off situation, and First Solar will enforce contract rights but may recontract if possible.  **[FSLR_3375234_15]**  Other customers face challenges due to interconnection issues, involving hundreds of megawatts, but this is not expected to significantly impact First Solar's ability to continue bookings in 2024.  **[FSLR_3375234_15]** 

3. **Bookings Strategy**  
   **Q:** What is your strategy regarding bookings and backlog?  
   **A:** Management plans to be patient with bookings to maintain ASPs and deliver certainty to customers.  **[FSLR_3375234_14]** **[FSLR_3375234_15]**  They aim for a **1:1 book-to-bill ratio**, equating to around **16 gigawatts** of shipments.  **[FSLR_3375234_14]** **[FSLR_3375234_15]**  By potentially selling through their open position in 2027, they expect to exit the year with a comfortable backlog, positioning the company well as they enter 2024.  **[FSLR_3375234_14]** **[FSLR_3375234_15]** 

4. **Policy Uncertainties**  
   **Q:** How are policy uncertainties affecting your outlook?  
   **A:** Potential changes in the administration could impact policy, such as the Inflation Reduction Act and trade barriers.  **[FSLR_3375234_14]**  Management believes a new administration might be more aggressive on Chinese imports, which could benefit First Solar.  **[FSLR_3375234_14]**  Customers value the certainty First Solar provides amid these uncertainties.  **[FSLR_3375234_14]** 

5. **Intellectual Property Issues**  
   **Q:** What are the implications of IP issues in the market transition to Topcon technology?  
   **A:** As the market transitions to Topcon technology, companies like Jinko and Maxeon are enforcing their IP positions.  **[FSLR_3375234_14]**  This creates uncertainty for customers regarding freedom to operate with other suppliers.  **[FSLR_3375234_14]**  First Solar's technology is unaffected by these IP issues, adding to its value proposition.  **[FSLR_3375234_14]** 

6. **Customer Relationships**  
   **Q:** How does your value proposition affect customer relationships?  
   **A:** Customers highly value First Solar's certainty, responsible solar practices, and strong brand.  **[FSLR_3375234_15]**  Some are willing to pay a premium for these attributes, leading to deep partnerships and multi-gigawatt opportunities.  **[FSLR_3375234_15]**  Management focuses on engaging customers who appreciate the long-term value First Solar offers.  **[FSLR_3375234_15]** 

96198569663347117d392a832743b597f70c3512e3909da341e121da452a63dc

- **First Solar's backlog is strong and underpinned by secure fixed-price agreements, ensuring stability even amid political and economic uncertainties.**  **[FSLR_3395038_17]**
- **Potential policy changes, such as increased tariffs on Chinese solar products under a Republican administration, could favor First Solar due to its strong domestic manufacturing footprint.**  **[FSLR_3395038_14]**
- **Both First Solar and its customers are strategically timing bookings, which may lead to accelerated demand in the future once policy uncertainties are resolved, enhancing First Solar's market position.**  **[FSLR_3395038_14]**

0d6d34ffd170d74e2656f434ce99ef3beab42d1860fe7141766d239878f27739

- **Module pricing is firming up, benefiting First Solar's margins.** Executives noted that module prices are increasing due to industry dynamics, including the recently filed AD/CVD petitions against Southeast Asian imports, enhancing their pricing power and potentially improving margins.  **[FSLR_3381887_16]** ,  **[FSLR_3381887_13]** ,  **[FSLR_3381887_14]**
- **Growing demand from data centers and corporate customers positions First Solar favorably.** The company is well-positioned to supply the emerging data center market, with executives highlighting that data center operators value certainty and sustainability, favoring First Solar's technology.  **[FSLR_3381887_14]**
- **First Solar is prepared to expand capacity further to meet demand, indicating potential growth.** The company is ready to add more factories if demand remains strong and the policy environment remains favorable, showing their capability to capitalize on growth opportunities.  **[FSLR_3381887_15]**

d0b071b01f9cf57aaeab2fe01633b97cb740c995a92f81cb924a7940688d1e19

- **Potential risk of contract cancellations:** Approximately **14%** of First Solar's backlog is subject to termination for convenience clauses, allowing customers to cancel orders, possibly impacting future revenues.  **[FSLR_3363017_14]**
- **Possible slowdown in future bookings and ASP decline:** First Solar anticipates a potential reduction in new bookings in upcoming quarters due to limited supply availability and customers' hesitation to commit to long-dated deliveries. There is also an expectation that prices may **decline slightly** over the next several quarters.  **[FSLR_3363017_8]**
- **Increasing competition from new U.S. manufacturing capacity:** Competitors are announcing plans to build solar module manufacturing facilities in the U.S., potentially increasing competition and exerting pressure on First Solar's market share and pricing.  **[FSLR_3363017_10]**

2c5091f5e65252f0a9fec35291e88d7400ef9b0c442986e7fa4a951ef706f4c1

1. **Pricing Trends and ASPs**  
   **Q:** Are prices increasing, and can higher ASPs be expected soon?  
   **A:** Management observed that market pricing has firmed up, increasing by **$0.03 to $0.04 per watt since early April**.  **[FSLR_3381887_14]**  This uptick is encouraging but not yet reflected in Q1 bookings, which averaged **$0.30 per watt** before adjusters.  **[FSLR_3381887_13]** **[FSLR_3381887_14]**  While they are pleased with the trend, they are cautious about committing to ASPs in the mid-$0.30s at this point.  **[FSLR_3381887_14]** 

2. **Impact of Policy Changes**  
   **Q:** How are recent policy developments affecting bookings and pricing?  
   **A:** Recent policy actions, like the new AD/CVD petition and potential removal of the bifacial exemption, have positively impacted pricing and customer engagement.  **[FSLR_3381887_12]**  Pricing has increased by **$0.03 to $0.04 per watt since early April**, and there's been a shift in sentiment with increased customer activity.  **[FSLR_3381887_12]**  Management sees policy moving in their favor, potentially accelerating bookings.

3. **Bookings Growth Outlook**  
   **Q:** Can guidance still be met despite potential terminations?  
   **A:** They are maintaining their volume sold guidance of **15.6 to 16.3 GW** for the year.  **[FSLR_3381887_13]**  Discussions are ongoing with a customer who may exercise a termination for convenience, but management believes they can reallocate or resell the volume.  **[FSLR_3381887_13]**  This may affect cash timing but won't change the overall guidance.

4. **Capacity Expansion Plans**  
   **Q:** What are the considerations for adding another factory?  
   **A:** Key factors include strong, sustained demand and a stable policy environment post-November elections.  **[FSLR_3381887_15]**  Management is preparing supply chain strategies and site selections to act quickly when appropriate.  **[FSLR_3381887_15]**  They are confident in their ability to execute expansions efficiently when conditions are favorable.

5. **Technology Advancements**  
   **Q:** What's the update on tandem technology and commercialization plans?  
   **A:** They are progressing on multiple fronts, including thin-film CIGS tandem products, thin-film crystalline technology, and perovskite research.  **[FSLR_3381887_13]**  Investments of nearly **$0.5 billion** in R&D and pilot lines are nearing operational status.  **[FSLR_3381887_13]**  They expect better insight into commercialization timelines by year-end, emphasizing the need for reliability before market release.

6. **Excess Panel Inventory**  
   **Q:** What is the status of excess panel inventory in the U.S.?  
   **A:** Management has heard reports of excess inventory around **30 to 40 GW**, due to high import rates ahead of potential policy changes.  **[FSLR_3381887_16]**  This inventory needs to be managed and deployed by year-end to avoid tariffs, but enforcement details are uncertain.  **[FSLR_3381887_16]**  They recognize this could influence market dynamics but cannot confirm exact figures.

7. **Demand from Data Centers**  
   **Q:** How significant is demand from data center customers?  
   **A:** Large tech companies like Apple, Google, Microsoft, and Meta value certainty and reliable sourcing, making First Solar a preferred supplier.  **[FSLR_3381887_14]**  While no specific figures were provided, management expects to continue being favored for projects supplying power to data centers due to these companies' renewable goals and supply chain concerns.  **[FSLR_3381887_14]** 

8. **Opportunity from Spot Pricing**  
   **Q:** Can excess capacity be sold at higher spot prices?  
   **A:** While the utility-scale solar spot market is limited, management sees opportunities to capture higher prices when short-term volumes become available due to customer terminations.  **[FSLR_3381887_16]**  They work closely with customers seeking products a few quarters ahead, potentially benefiting from current pricing trends.

9. **AD/CVD Critical Circumstances**  
   **Q:** Will you request critical circumstances in the AD/CVD case?  
   **A:** Whether to request critical circumstances, imposing retroactive tariffs, depends on future developments.  **[FSLR_3381887_17]**  Management noted China's aggressive overcapacity and market behaviors.  **[FSLR_3381887_17]**  If imports remain stable, they are less likely to seek retroactivity, but the coalition will decide based on evolving facts.

10. **Customer Preparedness**  
    **Q:** Are customers securing critical equipment despite long lead times?  
    **A:** Many large customers have proactively secured critical equipment like transformers and circuit breakers to mitigate supply chain constraints.  **[FSLR_3381887_17]**  They try to reduce risks by ordering spares and working ahead, but disruptions can't be entirely avoided. Management collaborates closely with customers to manage schedules and allocations as needed.

11. **Lower Cost of Goods Sold**  
    **Q:** What drove the lower cost of goods sold excluding credits?  
    **A:** Q1 credits were **$194 million**, higher than the guidance of **$109 million**, contributing to lower COGS per watt.  **[FSLR_3381887_17]**  The higher credits partially explain the reduced costs, though management did not detail specific drivers beyond the increased credits.

38bc9952714258a6ff5a17eb32c00f9dda4d1bb2f6145999b8de5dbf4204b807

- **Risk of Customer Defaults:** First Solar has recently experienced defaults by customers totaling nearly **1 gigawatt** of contracted volume. Specifically, there's a **600-megawatt** default in India due to a customer who has delisted from the NYSE, and a **381-megawatt** default by a corporate customer in the U.S. experiencing financial distress. These defaults could lead to loss of revenue and reflect potential weaknesses in contractual enforcement.  **[FSLR_3375234_9]**
- **Price Pressure from Low-Cost Competitors:** The company is facing significant competition from low-cost Chinese and Southeast Asian module manufacturers, leading to a significant collapse in cell and module pricing. This oversupply and price pressure, especially in India and potentially in the U.S., could negatively impact First Solar's market share and profitability.  **[FSLR_3375234_10]**
- **High Capital Expenditures Leading to Decreased Cash Reserves:** First Solar plans to spend **$1.7 billion to $1.9 billion** in capital expenditures in **2024**, which is expected to reduce its net cash position from **$1.6 billion** at the end of **2023** to between **$0.9 billion and $1.2 billion** by the end of **2024**. This significant cash outflow could impact the company's liquidity and financial flexibility.  **[FSLR_3375234_13]** **[FSLR_3375234_14]**

3ade02acd3784601807af01ad57399c80ffcaea4599823ebed5964804d6cda73

- **Uncertainty in U.S. policy due to upcoming elections may slow bookings and impact demand for First Solar's products.** Customers might be "reluctant potentially... for booking into '27 and '28 with less certainty on policy environment."  **[FSLR_3395038_12]**
- **Contract terminations from major customers could impact First Solar's backlog and near-term revenues.** For example, a European utility company terminated about **400 megawatts** of volume because they decided to exit the U.S. market.  **[FSLR_3395038_17]**
- **Policy uncertainty may delay First Solar's capacity expansion plans, potentially limiting future growth.** Management stated that decisions on new capital expenditures are "tethered back to the same policy conversation" and they need "understanding what that policy environment is going to be like" to proceed.  **[FSLR_3395038_16]**

cbab32fe02e0cc3ff0ec838a3b2652cbc6f33a8e2b5e21aac88361c2009baa4b

- **First Solar has strong booking momentum with great ASPs of $0.32 per watt**, securing contracts that extend into **2027, 2028, 2029, and even 2030**.  **[FSLR_3375234_14]** **[FSLR_3375234_6]**  The company aims for a **1:1 book-to-bill ratio** in 2024, filling their backlog and positioning well for the future.  **[FSLR_3375234_14]** **[FSLR_3375234_15]**
- **Customers highly value First Solar's certainty and value proposition**, including their technology, responsible solar practices, and commitment to American manufacturing, even if they **pay a little more** for these attributes.  **[FSLR_3375234_6]** **[FSLR_3375234_15]**  This strong customer relationship supports multi-gigawatt opportunities ahead.  **[FSLR_3375234_6]**
- **First Solar maintains pricing discipline** and leverages its position of strength; even without new bookings, they are **sold out two years forward through 2025 and 2026**.  **[FSLR_3375234_6]** **[FSLR_3375234_15]**  The company focuses on bookings at acceptable pricing, supporting sustained profitability.  **[FSLR_3375234_6]**

5d7606f90836e8d8ff3ec250c1ecf78b95b3109fcf7ba2f65c1e5bf7dcad3982

1. **Political Uncertainty Impact**  
   **Q:** Will policy changes slow or accelerate bookings?  
   **A:** The CEO indicated that political uncertainty may initially slow momentum as customers assess the environment, but could later accelerate bookings once the policy landscape is clearer ( **[FSLR_3395038_14]** ). Geopolitical tensions with China and potential tariffs could advantage First Solar's domestic footprint, but an initial pause is expected as the market digests potential changes.

2. **Future Capacity Expansion Plans**  
   **Q:** What are the plans for new CapEx and capacity expansion?  
   **A:** Decisions on new capital expenditures and capacity expansion are tied to the policy environment ( **[FSLR_3395038_16]** ). Once there is clarity on policies, they will decide how to proceed with technologies like Tandem or Series 7.

3. **Bookings and Pricing Trends**  
   **Q:** How are bookings and ASPs trending amid market uncertainty?  
   **A:** Recent bookings include both U.S. and international volumes, with average selling prices around **$0.33 per watt** with adjusters ( **[FSLR_3395038_15]** ,  **[FSLR_3395038_16]** ). While pricing softened in March, it has since firmed up, and the company finds current ASPs attractive even under the present policy construct.

4. **Impact of Customer Cancellation**  
   **Q:** What's the effect of the 400 MW customer cancellation?  
   **A:** A European utility exited the U.S. market, resulting in a **400 MW** cancellation ( **[FSLR_3395038_15]** ,  **[FSLR_3395038_17]** ). However, another long-term customer acquiring their portfolio is expected to benefit First Solar in the long term.

5. **Exposure to Policy Risks**  
   **Q:** How secure is the backlog amid policy uncertainties?  
   **A:** The company believes their backlog is secure from a contractual standpoint ( **[FSLR_3395038_17]** ). Significant policy shifts could impact project viability, but they have strong contracts and will enforce termination payments if necessary.

6. **Progress on Louisiana Project**  
   **Q:** What are the milestones for the Louisiana project?  
   **A:** Building construction is expected to complete by early next year, with equipment move-in around Q1/Q2 ( **[FSLR_3395038_13]** ). An integrated run is anticipated by early Q3, aiming to ramp in the second half of **2025**.

7. **ASP Details and Delivery Timing**  
   **Q:** Are bookings from U.S. or Asia fabs, and how does this affect ASPs?  
   **A:** There was some India domestic volume booked, including shipments from India sold into the U.S. market ( **[FSLR_3395038_16]** ). The mix of domestic and international bookings affects ASPs. Recent bookings with adjusters averaged around **$0.33 per watt**, and the company is comfortable with pricing in the mid-$0.30s range.

8. **Backfilling Canceled Volume**  
   **Q:** Do you have a customer to backfill the 400 MW cancellation?  
   **A:** The company is actively negotiating to sell a portion of that volume ( **[FSLR_3395038_15]** ). They aim to sell through the canceled volume as quickly as possible, though it may not happen this year due to timing and project design considerations.

9. **Impact of Chevron Ruling**  
   **Q:** Do you see risks from challenges to policy interpretations, like the Chevron ruling?  
   **A:** They do not see significant exposure from such rulings on their operations ( **[FSLR_3395038_17]** ). Tax regulations and guidance are not expected to be impacted in a way that would affect First Solar materially.

de1699248c39dc5765809222faab7d6966615a1825e6ea4eab4e56ac473fd89d

First Solar Inc (FSLR)

Financials