Phoenix Solar AGCompany Presentation

January 2010

2

Disclaimer

The content of this presentation is solely for information purposes and is not intended to constitute a recommendation for

investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall

undertake no liability whatsoever for any loss in connection with this presentation or the information contained therein. This

also applies particularly to any eventual loss in connection with the shares of Phoenix Solar AG.

This document contains forward-looking statements on future developments which are based on management’s current

assessment. Words such as “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “can/could”, “plan”, “project”,

“forecast”, “should”, and similar terms are indicative of such forward-looking statements. Such statements are subject to

certain risks and uncertainties which are mainly outside the sphere of influence of Phoenix Solar AG, but which have an

impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor

products or technologies of other companies, the development of the planned internationalisation of business activities,

fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of

uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phoenix Solar AG does not have the

intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in

time as this is entirely dependent on circumstances prevailing on the day of their release.

In some countries the dissemination of this presentation and the information contained therein may be restricted or prohibited under the law. This presentation is therefore expressly not intended for persons resident in legal systems under

which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a

breach of the law.

3

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

4

Phoenix Solar at a Glance

� Founded Nov. 1999, headquartered near Munich,

global workforce >300

� One of the leading globally active PV system integrators

(3 continents, 8 countries)

� CAGR revenue: 78%

� Continuously profitable since 2004

� Stock-listed since November 2004, TecDAX-listed since March 2008

� First mover in PV thin-film technology,

holding 12% world market share in 2007 and 10% in 2008*

� Covered by 22 banks, further coverage under preparation

* Source: Solar Outlook (Navigant Consulting), Phoenix analysis

5

Worldwide Company Locations in 8 Countries and 3 Continents

Phoenix Solar

Pte Ltd,

Singapore(Since Dec. 2006)

Phoenix Solar S.r.l., Italy

(Since July 2006)

����

����

Phoenix Solar Pty Ltd,

Australia(Since July 2008)

Phoenix Solar E.P.E., Greece

(Since June 2008)

����

All 100% owned subsidiaries, except Phoenix Solar Singapore (75%) and Phoenix Solar Oman (70%)

����

Phoenix Solar AG, Germany

(Since Nov. 1999)

Phoenix Solar

S.L., Spain(Since Apr. 2006)

����Phoenix Solar SAS, France

(Since Sept. 2009)

Phoenix Solar L.L.C, Oman

(Since Dec. 2009)

����

Phoenix Solar,USA

(coming H1 2010) ����

6

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

7

Business Model

International Manufacturers

Solar Modules BOS-Components

SegmentSolar Power Plants

SegmentComponents & Systems

Serv

ices

System integration

Turn-key installation

Sale

s

• Inverters

• Mounting Systems

• Cables

• Crystalline

• Thin-film

Project Investors International Customers Resellers

8

0,1 MWp 1 MWp 10 MWp

Components &

Systems

Offering to the Customer

Power Plants

Phoenix Solar’s business model covers all PV system sizes:

• Components & Systems 1kWp - 1 MWp • Power Plants > 500 kWp

* not to scale

Power Plant Sales

Segments

Investor Business

10 MWp+5 MWp1 MWp500 kWp

Large-Scale

1 kWp* 20 kWp

CommercialResidential

9

Focused Business Model

Focus on Photovoltaics

� Exclusively active in the field of photovoltaics, the market segment of

renewable energies with the highest growth rate

Focus on PV System Technology

� Focus on core competence of high-yield, long-lasting and profitable

PV systems

� System integrators are the gateway to the end customer

Advantages of Focused Business Model

� Purchase of PV modules and components with the best

price-to-performance ratio independent of the manufacturer

� High flexibility, rapid response to market trends

� Low financial risk as limited investment is required

10

Target Customers for Large Solar Power Plants

� Closed Solar Funds as capital

collection point for private investors

� Participation starting at €10,000

� Fund capitalisation starting at €20M

� Expected Return: > 6%

� Institutional investors, insurance

companies, pension funds

� Risk spreading (in addition to equities, annuities, real estates)

� Planable cash flow!!

� Trade, Industry and Commerce

� Secure financial returns

� Green image benefit

� Local Communities

� Secure financial returns

� Sensible use of agricultural landsPo

we

r P

lan

t S

ale

sE

PC

Co

ntr

ac

ts

Inve

sto

r B

us

ine

ss

Pro

jec

t O

wn

ers

hip

11

Business Model – Synergies between Power Plant and Components & Systems Segments

Synergy

Our business segments' strengths generate synergies

SegmentSolar Power Plants

SegmentComponents & Systems

Project Investors International Customers Resellers

Technical Know-how

Product innovation

Cost reduction

Demand balance

Strengthening of purchasing position

12

Business Model – Solar Power Plants

� Project development

� Planning of power plants

� Procurement and delivery

� Turn-key installation

� Financial consulting / fund structuring

� Plant management

� Operation and maintenance

A full-service package in the Power Plant segment

Phoenix Solar offers project investors an all-inclusive services & products

package

13

Competence in Large-scale Roof-Mounted Solar Power Plant Design & Construction

Munich Trade Fair (Germany), 2.1 MWp

Completion November 2002

14

Competence in Large-scale Ground-Mounted Solar Power Plant Design & Construction

SolarPark Miegersbach (Germany), 5.3 MWp

Completion December 2005

15

Competence in Large-scale Ground-Mounted Solar Power Plant Design & Construction

“La Solana” (Spain), 6.5 MWp

Completion March 2008

16

Features of Phoenix Solar’s Operation, Monitoring & Maintenance Service

� Utility standard 24/7 stand-by service independent from inverter manufacturers

� 24-hour reaction time in case of plant failure

� International service network with local contact persons

� Customer access to all plant data

� Reporting to customer (monthly, quarterly, yearly)

� Continuous plant optimisation

� 100 MWp under management

17

1,149 1,171 1,156

987 982 978

0

200

400

600

800

1,000

1,200

2006 2007 2008

1,123 1,1131,087

918 914 909

0

200

400

600

800

1,000

1,200

2006 2007 2008

Outperformance of Large-Scale Power Plants

kWh / kWp Miegersbach (5.3 MWp) kWh / kWp Munich Trade Fair

Actual

Projected

+16% +19% +18%+22% +22% +20%

Phoenix Solar’s system design & operation know-how leads to significant performance improvements

18

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

19

Solar Module and Inverter Suppliers

Inverter Suppliers

20

20.3% 16.9%21.5%

47.9% 51.9%57.2%

79.7% 83.1%78.5%

52.1% 48.1%42.8%

66%74.2%

34%25.8%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009 2010e

Product Mix: Thin-film vs. Crystalline Modules

Crystalline

Thin-film

Phoenix Solar is a leader in thin-film technology:

12% global market share in 2007 and 10% in 2008

21

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

22

Guidance 2009 & Outlook 2013

� Sales: 1.5 bil. €

� EBIT: 100 €M

� Positioning of Phoenix

Solar as a globally leading

system integrator

� Expansion of international

business to more than 65%

of sales

� Sales: 430 – 480 €M

� EBIT: positive

Long-term Outlook 2013(as of 27 January 2009)

Guidance 2009 (revised on 12 November 2009)

23

~430

~50

0.0 4.0 14.4 20.8 23.5

67.2

111.1 119.0

260.1

402.5

1500

~480

0

100

200

300

400

500

600

700

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e ... 2013e

Sales Development

Up to 2003: Phoenix Solar AG (HGB) 2004 onwards: Revenue of Phoenix Concern (IFRS)

CAGR 78 %

€ M

24

4.8

7.7

2.5

22.3

33.8

8.4%

4.0%

3.7%

6.9%

8.6%

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 ... 2013e

0%

2%

4%

6%

8%

10%

EBIT / EBIT-Margin Development

According to International Financial Reporting Standards (IFRS)

EBIT(€ M)

EBITMargin

100

25

Annual Results / Earnings per Share

23.70

14.48

3.02

4.95

1.70

3.63

2.38

0.55

0.92

0.34

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

2004 2005 2006 2007 20080.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00Net Results

EPS

€ / share*€ M

According to International Financial Reporting Standards (IFRS)

Average # of shares: 5,025,000 5,372,945 5,546,173 6,077,000 6,535,115 6,484,956 6,684,569

* Undiluted

21.90

-3.89

-0.583.27

- 10.0

- 5.0

0.0

5.0

10.0

15.0

20.0

25.0

Q1-Q3'08 Q1-Q3'09

€ M

26

Sales Development per Full-Time Equivalent

551 575 621

1,555

1,778

1,352

1,915

2,392

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2001 2002 2003 2004 2005 2006 2007 2008Accounting Basis: HGB; from 2004 onwards IFRS

€ T

€ T

1,732

1,067

0

500

1,000

1,500

2,000

Q1-Q3'08 Q1-Q3'09

-38%

27

Revenue Share of Business Segments

24.0%34.1%

41.5%

28.6%

5.6%21.7%

5.5%

6.3%5.4%

72.0%60.4%

46.6% 44.3%

14.8%

31.9%

7.8%

4.0%

45.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008

Components & Systems (Germany)

Components & Systems (ROW)

Power Plants (ROW)

Power Plants (Germany)

11.8%

9.0%

36.6%

34.5%

1.3%42.6%

3.8%

60.4%

0%

20%

40%

60%

80%

100%

Q1-Q3'08 Q1-Q3'09

28

89.7

41.6

110.2

149.3

101.4

36.7

115.7

0

20

40

60

80

100

120

140

160

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

Quarterly Sales Development 2008 to 2009Group Results

€ M

Sales

Q3 2009 revenues down 40% y-o-ydue to

� sales price decline

� Q3 2008 being positively affected by Spanish revenues

� weakness of power plant business

Group Sales

260.1

402.5

0

100

200

300

400

500

2007 2008

+55%

€ M+165%

+35%

-32%

+215%

-22%

29

11,173

-7,437

102

2,983

4,692

17,599

359

3.3%

0.1%

-20.3%

4.6%

11.8%10.1%

0.9%

-10,000

-8,000

-6,000

-4,000

-2,000

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

-24%

-20%

-16%

-12%

-8%

-4%

0%

4%

8%

12%

16%

Quarterly EBIT Development 2008 to 2009Group Results

EBIT(€ T)

� Substantial EBIT improvement q-o-q, however

� Q3 2009 EBIT down y-o-ydue to end of Spanish market hype and weakness of power plant business

Group EBITEBITMargin

* Adjusted in Q3-2007 according to Int’l Accounting Standard (IAS) 8.49

22.3

33.8

0

5

10

15

20

25

30

35

40

2007 2008

€ M

+52%

30

17

63

143

5 4

52

10 17

63

143

5 4

52

10

129

154

244

107

132

167

214

126

75

56

73

34

9049

231 230

275

112

248

181

164

143 138

199

7888 92

76

34

154

95105

86

59

94

1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09 1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09 1.4.08 1.7.081.10.081.1.09 1.4.09 1.7.091.10.09

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9 1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9 1 . 4 . 0 8 1 . 7 . 0 8 1 . 1 0 . 0 8 1 . 1 . 0 9 1 . 4 . 0 9 1 . 7 . 0 9 1 . 1 0 . 0 9

Order Backlog Development

€ M

Total Power Plants Components & Systems

Percentage-of-Completion (PoC) Revenues

� High C&S order backlog of 105 €M reflects year-end rush in residential and commercial sectors

� Total free order backlog end Q3 2009 (154 €M) higher in a q-o-q and y-o-ycomparison

Order Backlog

“Free” Order Backlog

31

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

32

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez

Phoenix

TecDAX

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez

Phoenix

TecDAX

%

Comparison: Phoenix Solar vs. TecDAX2008 and 2009

Phoenix SonnenAktie® beats the TecDAX

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008

%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2009

33

TecDAX Ranking 2008 and 2009

19

30

15

320

50

100

150

200

250

300

350

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ma

rke

t C

ap

ita

lis

ati

on

(M

il. €

)

0

5

10

15

20

25

30

35

Ra

nk

Market Cap.

Rank Market Cap.

Rank Revenue

Phoenix SonnenAktie® climbs from the smallest companyin the TecDAX to the middle of the pack

34

Dividend Payment

� Phoenix Solar has been paying dividends since 2007

� Shareholder-oriented dividend policy according to company growth and

business situation

6,648,5000.30 €20.05.20092008

6,648,5000.20 €05.06.20082007

6,077,0000.10 €29.05.20072006

Number of

shares

Gross dividend

per share

Date of

distribution

Financial year

35

Current Analyst Coverage

7.11.2008ViscardiMunich

17.9.2008MainFirst BankFrankfurt/Main

15.9.2008FBR Capital MarketsSan Francisco

25.8.2008UniCreditMunich

12.6.2008Pacific CrestPortland

14.10.2006Goldman SachsLondon

17.8.2006HSBC Trinkaus & BurkhardtDuesseldorf

22.5.2006EquinetFrankfurt/Main

21.11.2005CommerzbankFrankfurt/Main

2.12.2008BHF-BankFrankfurt/Main

25.8.2005Deutsche BankFrankfurt/Main

SinceBankSinceBank

9.9.2009JefferiesLondon

8.9.2009

CA CheuvreuxFrankfurt/Main

30.7.2009MacquarieLondon

30.7.2009

Arkeon FinanceParis

3.7.2009AreteLondon

1.7.2009Nord/LBHannover

28.5.2009Piper JaffrayMinneapolis

27.4.2009WestLBDusseldorf

9.2.2009Barclays CapitalLondon

LBBWStuttgart

7.12.2009

Close Brothers SeydlerFrankfurt/Main

25.1.2010

36

Table of Contents

1. Phoenix Solar at a Glance

2. Company Profile

3. Module Supply

4. Financial Parameters

5. Phoenix Share - SonnenAktie®

6. Investment Highlights

37

Investment Highlights

� Business model focuses on the core capabilities (PV systems

technology), allows for high flexibility and fast exploitation of

market opportunities

� As system integrator Phoenix Solar is the gateway to the end

customer

� Expansion of international business to more than 50% of sales by

2010 and 65 % by 2013

� World-leading expertise in large-scale power plant construction

using thin-film systems technology

Phoenix Solar AG – a “PV pure play”

38

Thank you for your attention!

Appendix

40

Phoenix Solar share in brief

Official Market, Prime StandardStock market segment

6,700,700 €Share capital

6,700,700 unitsNumber of shares as per 30/12/09

No-par bearer shareShare class

DE000A0BVU93ISIN

41

Phoenix Share History

� 18/11/1999 Founding of Phoenix Solar AG (formerly Phönix SonnenStrom AG)

� 31/01/2001 First public offering

3rd capital increase by € 1,000,000 to € 1,675,000

3,500 private and institutional shareholders (opening price € 12)

� 18/11/2004 Listing on the Munich stock exchange; OTC listing on

the stock exchanges of Berlin-Bremen, Stuttgart and Frankfurt/Main

� 01/07/2005 Listing in the M:access quality segment of the Munich stock

exchange, extensive OTC reporting obligations

� 01/12/2005 HSBC Trinkaus & Burkhardt becomes Designated Sponsor for

seamless trading in the electronic trading system XETRA

� 27/06/2006 Admission of share capital to the official market in the Prime

Standard segment of the Frankfurt Stock Exchange, further

follow-up obligations

� 29/05/2007 Phoenix Solar pays its first dividend of € 0.10 per share

� 25/03/2008 Phoenix Solar’s shares added to the TecDAX

technology index of Deutsche Börse AG

42

80.9

23.9

8.2

65.0

13.516.5

66.5

0

10

20

30

40

50

60

70

80

90

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

Quarterly Sales Development 2008 to 2009Power Plant Segment

€ M

Sales

Power Plant Segment

� Q3 Power Plant Sales down

83.3% y-o-y and 79.2% q-o-qmainly affected by project delays

130.7

187.8

0

50

100

150

200

2007 2008

€ M

+44%

+303%

+22%

-70%

+693%-79%

43

214

4,241

-441

1,352

8,405

-2,435

9,885

1.3%

12.6% 12.2%

5.7%

-29.7%

6.5%

-3.3%

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09-30%

-25%

-20%

-15%

-10%

-5%

0

5%

10%

15%

20%

Quarterly EBIT Development 2008 to 2009 Power Plant Segment

EBIT€ T

� Weak power plant EBIT

due to low Q3 sales

Power Plant Segment

17.9

19.9

17

17

18

18

19

19

20

20

21

2007 2008

+11%

€ M

EBIT-Margin

44

68.4

77.4

28.5

50.7

76.2

25.1

43.7

0

10

20

30

40

50

60

70

80

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

Quarterly Sales Development 2008 to 2009Components & Systems Segment

€ M

Sales� Q3 2009 sales in Germany

up 50.3% q-o-q and 11.4%y-o-y

� Q3 2009 already impacted by strong year-end rally

Components & Systems Segment

129.3

214.6

0

50

100

150

200

250

2007 2008

€ M

+66%

+74%

+56%

+13%

+78%

+50%

45

2,772

7,707

3,4273,335

-4,150

-5,002

146

-17.5%

6.3%

0.6%

-8.1%

11.3%

4.3%4.5%

-10,000

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

- 21%

- 18%

- 15%

- 12%

- 9%

- 6%

- 3%

0

3%

6%

9%

12%

15%

Quarterly EBIT Development 2008 to 2009 Components & Systems Segment

€ T

EBIT

� In Q1 & Q2 2009 C&S business was burdened with inventory write-downs

� Substantial EBIT improvement Q3 2009 up 7.6 €M q-o-q

Components & SystemsSegment

14.0

4.3

0

2

4

6

8

10

12

14

16

2007 2008

€ M

+226%

EBIT-Margin

46

70.5

97.3

34.7

112.2

82.9

40.134.9

0

20

40

60

80

100

120

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

Quarterly Sales Development 2008 to 2009National Sales

€ M

National

� National sales down 26.1% q-o-q and up 17.6% y-o-y

� Development underpins the importance of the German market for Phoenix Solar

National Sales

189.6

242.8

0

50

100

150

200

250

300

2007 2008

€ M

+28%+15%

+76%

+38%+223%

-26%

47

78.8

4.12.0 3.5

6.86.7

70.1

0

10

20

30

40

50

60

70

80

90

Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09

Quarterly Sales Development 2008 to 2009International Sales

€ M

International� International sales Q3 2009

down 91.4 % y-o-y but up 94.3% q-o-q

� No international power plant project under construction in Q3 (1.5 MWp Le Lauzet project for eOn Climate & Renewables started in Q4)

International Sales

70.4

159.7

0

50

100

150

200

2007 2008

€ M

+127%

+946%

+12%

-95%

+75%+94%

48

Contact

Phoenix Solar AG

Hirschbergstrasse 8

D-85254 Sulzemoos

Germany

Phone +49 8135 938-000 www.phoenixsolar.com

Fax +49 8135 938-399 phoenix@phoenixsolar.de

Investor Relations Public Relations

Anka Leiner Andrea Wegner

Phone +49 8135 938-315 Phone +49 8135 938-313

a.leiner@phoenixsolar.de a.wegner@phoenixsolar.de