Global Technology：Solar Cell Industry Looks Attractive Toward 2010.doc

Global Technology：Solar Cell Industry Looks Attractive Toward 2010 SUSTAINABLE INVESTING: Alternative Energy Global Technology Solar Cell Industry Looks Attractive Toward 2010 Sunny skies ahead. While the burgeoning solar cell industry ; The Goldman Sachs Group, Inc. may face a growth slowdown in the short term due to silicon material March 31, 2006 shortages, we expect an across-the-board surge in solar cell-related earnings from about 2008. If technology enables continued cost This report is the second in our cuts, the potential market scale should expand accordingly.Environmental stock series For an overview of the initiative, see Launching Our Environmental Stock Series, published March 31, 2006 Solar cell demand should treble by 2010, still ample room for growth We expect global solar cell installation to reach about 4 GW in 2010, up from 1.5 GW in Daiki Takayama 2005. Expansion of solar cell use should continue owing to the spread of electric power Goldman Sachs (Japan) Ltd. purchasing systems in Europe and efforts to expand use in the US and Asia. Shortages of daiki.takayama@gs4 silicon materials are likely to continue until 2007, but supply should meet demand thereafter. Tokyo: 81-3-6437-9870 Takashi Watanabe 2008 to bring end to materials shortage, surge in solar cell maker earningsGoldman Sachs (Japan) Ltd. The solar cell-related value chain should benefit from overall market expansion over the takashi.watanabe@gs Tokyo: 81-3-6437-9894 medium/long term, but profit distribution is likely to vary in different phases of development. Short-term attention should focus on silicon materials firms and solar cell makers that can Hisaaki Yokoo Goldman Sachs (Japan) Ltd. maintain margins. The peaking-out of silicon prices should prompt surges in solar cell hisaaki.yokoo@gs makers’ earnings and demand for production equipment. Tokyo: 81-3-6437-9930 Sarah Forrest Cost competitiveness to be ultimate differentiator among solar cell makersGoldman Sachs Internati