Finance Update Mark Widmar Chief Financial Officer First Solar Balanced Business Model Philosophy

Liquidity Growth . Cash from Operations . Bookings . Net Cash Position . Product Mix Shift . Working Capital . Revenue . Demand Generation $ . Expanding Addressable Market

Profitability . CpW/BoS . Gross margin . Opex % revenue . EPS

2,000 Net Cash Position 1,000

(1,000)

(2,000)

(3,000) Net Debt Position (4,000)

Net (Debt)/Cash in $ millions $ in (Debt)/Cash Net (5,000) FSLR SunPower JA Solar Jinko Trina Canadian Suntech Yingli SunEdison LDK Solar

4 Note: FSLR 2013 as of 4Q 13 actuals. © Copyright 2016, FIRST SOLAR Other companies based on Photon Consulting estimates as of Jan 2014, except for Suntech which is based on estimate before default First Solar Balance Sheet Management Today

2,000 Net Cash Position

(2,000)

Defaulted Defaulted (4,000) Net Debt Position

Net (Debt)/Cash in $ millions $ in (Debt)/Cash Net (6,000) FSLR SunPower JA Solar Jinko Trina Canadian Suntech Yingli SunEdison LDK Solar Net Interest $16M ($42M) ($39M) ($60M) ($49M) ($37M) Default ($155M) ($636M) Default Income (Exp) 2016 Competitor Capacity Announcements: Wafer (1.6GW) ; Cell (5.2GW) ; Module (6.3GW)

Source: Net cash/debt based on Photon Consulting estimates as of Dec 2015. Net interest expense for 2015 or last 12 months based on company filings. 5 © Copyright 2016, FIRST SOLAR Competitor capacity based on public announcements. Estimated investment in capacity assumes $0.34/w for wafer, $0.23/w for cell and $0.09/w for module. First Solar Balance Sheet Management Today

2,000 Net Cash Position

(2,000)

Defaulted Defaulted (4,000) Net Debt Position

Net (Debt)/Cash in $ millions $ in (Debt)/Cash Net (6,000) FSLR SunPower JA Solar Jinko Trina Canadian Suntech Yingli SunEdison LDK Solar Net Interest $16M ($42M) ($39M) ($60M) ($49M) ($37M) Default ($155M) ($636M) Default Income (Exp) 20162016 CompetitorCompetitor CapacityCapacity Announcements:Announcements: WaferEstimated (1.6GW) Investment ; Cell (5.2GW) >$2 billion ; Module (6.3GW)

Source: Net cash/debt based on Photon Consulting estimates as of Dec 2015. Net interest expense for 2015 or last 12 months based on company filings. 6 © Copyright 2016, FIRST SOLAR Competitor capacity based on public announcements. Estimated investment in capacity assumes $0.34/w for wafer, $0.23/w for cell and $0.09/w for module. First Solar Liquidity Profile With Potential Capacity Growth

$1.9B - $2.2B Cash from Operations ( ) Capital Expenditure

( ) Working Capital $1.0B - $1.5B ( ) Project Assets

2016 Net Cash Future Net Cash ~50% of CAPEX Funded by Operating Cash

25.0% 20%

20.0% 18%  >10% Energy Density 15.0% Advantage 16%

10.0%  1% Energy Advantage = 14% $0.005 Value

5.0% 12% EfficiencyPercentage

0.0% 10% 2012 2013 2014 2015 2016 Mid-Term Module GM% Efficiency (Full Fleet Exit) Energy Density Advantage + Low Cost S6 Module = Margin Expansion Potential

Notes: (1) Components gross margin from First Solar 10-K Filings. 2015 components gross margin 25% as reported, but adjusted in slide to reflect removal of 9 $70 million benefit related to end of life recycling program in Q3’15. (2) Full fleet ‘exit’ efficiency defined as Q4 average for all lines in each year presented © Copyright 2016, FIRST SOLAR First Solar Operating Margin Benefit Of Scaling

~3GWs ~7GWs ASP 100% Incremental COGS/OPEX ASP 100% COGS 80% COGS 77% OPEX 10% 80%  75% 10%  2% OPEX 5% ~20% Op. Margin 10% Variable Op. Margin 18%

90%~90 Fixed% Variable ~80% Fixed

~10% Fixed Incremental Contribution Margin = 23%

Base COGS OPEX Future

Efficiency BOS CpW

BOS O&M $1.3B - $1.6B Series 6

MVDC Efficiency BOS

Series 5

$1.0B - $1.2B

Awarded Business with Deliveries from 2017 through 2020

Notes: Data reflects 2017 – 2020 Cumulative Target Target Ranges includes O&M and First Solar Earnings from 8p3 11 This represents all contracted and awarded module sales © Copyright 2016, FIRST SOLAR First Solar Potential Margin on Awarded Business

65% Systems 35% Modules ~20% of Potential Total Production Capacity 2017 - 2020

O&M $1.3B - $1.6B Series 6

MVDC 2017 2018 2017 2019 2018 2020 Series 5 2019 2020 2017 $1.0B - $1.2B 2018 2017 2019 2018 2020 2019

30% 2013 Bookings ~25% 2015 Bookings ~15% Bookings needed for 1:1 book-to-bill target

Potential Potential Potential Opportunites Opportunites Opportunites 2013 = 5.5GWdc 2015 = 14GWdc 2016 = 20GWdc

~15% Bookings needed for ~15% Bookings needed 4GW per year for 1:1 book-to-bill target Market Growth

Channel Strategy

Expanded Addressable Market

Strategic Rationale Market Dynamics Advantages

Retain Asset Optionality Capital Market Disruptions Long-Term Sustainable Growth Focus

Competitive Cost Of Capital Industry Turmoil Structural & Financial Flexibility

Committed Buyer Of ROFO Assets ITC Extension Creates: Strong Corporate Governance - Near-Term flexibility - Long-Term Growth Visibility Dividend And IDR Value To First Dual Sponsorship Solar Stateline, Cuyama, Switch Station

• First Solar Continues To Focus On A Balanced Business Model Philosophy • Industry Best Balance Sheet And “Bankability” • Managing And Prioritizing Enablers Of Growth; — Technology Leadership (Series 5, Series 6, MVDC) — Cost Leadership (Leading Module Cost, Optimized BoS And O&M) — New Capacity (Scaling Fixed Cost Drives Attractive Contribution Margin) — Development Capital Investment To Seed New Markets • Demonstrated Track Record of Reaching Goals

First Solar continues to leverage our, Enhanced Technology and Capitalize on Growth to deliver superior financial returns to our shareholders.