Report as of September 30, 2010 November 10, Silicon & Wafer Solar cell & Module Thin film module Semiconductor

Transcription

1 Report as of September 3, 21 November 1, 21 Silicon & Wafer Solar cell & Module Thin film module Semiconductor

2 Disclaimer We have exercised utmost care in the preparation of this presentation. It contains forecasts and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward-looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result deviates significantly from the forecast. Forecasts prepared by third parties, or data or evaluations used by third parties and mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether information, evaluations, or forecasts made by third parties are appropriate, complete, and not misleading. To the extent that information in this presentation has been taken from third parties, or these provide the basis of our own evaluations, such use is made known in this report. As a result of the above-mentioned circumstances, we can provide no warranty regarding the correctness, completeness, and up-to-date nature of information taken, and declared as being taken, from third parties, as well as for forward-looking statements, irrespective of whether these derive from third parties or ourselves. Rounding differences may arise. Report as of September 3, 21 2

3 Contents 1. Strategy model 2. Highlights 9M Market trends 4. Financials Silicon & Wafer Solar cell & Module Thin film module Semiconductor

4 Portfolio analysis shows upside potential of our business Portfolio analysis of business segments Segments Stars Market Growth Question Marks Silicon & Wafer: Solid growth potential Key drivers: Expansion along PV value chain Capacity expansion of existing customers Relative Market Share Solar cell & Module: Dynamic growth potential Key drivers: Customers: Premium cost leaders Demand for high efficiency technology Cash Cows Dogs Solar cell & Module Silicon & Wafer Thin film module Thin film module: Strong growth potential Key drivers: Demand for integrated building applications CIGS as leading future thin film technology Report as of September 3, 21 4

5 Record order intake mainly driven by Asian capacity expansion and emerging PV markets (e.g. Qatar) Order intake 9M 21 (in m ) Jan 62.6 Feb 78. Mar 13. Apr May Jun Jul Aug Sep Oct Order intake significantly increased: % up y-o-y to EUR 77.7 million Record level in Q3 21: EUR million Ongoing positive order intake trend: EUR million as of October 3, 21 Report as of September 3, 21 5

6 CFO s desk Key topics Focus on Company structure Fixed cost management Working capital control Leverage debt / equity Reduce capitalized R&D costs Value based management and profitable growth Order book adjustments (12 month visibility) Report as of September 3, 21 6

7 High performance in operations +166% unit output increase over 9 months goal 21: +186% y-o-y Production workforce rose much slower: +45% (37% flexible prod. capacities) Production output secured by decrease in lead times and 3-shifts operation LEAN-Production rigorously implemented Synchronized flow production JIT (Just-in-time), incl. major suppliers 5S 2-stage KANBAN system Report as of September 3, 21 7

8 Positive outlook for Solid Q4 21 expected 2. Sales guidance 21 confirmed: EUR 58-6 million 3. EBIT margin 21: Approx. 11 % 4. Focus on innovation and R&D Report as of September 3, 21 8

9 Order Pipeline First expectations Silicon & Wafer Solar cell & Module Thin film module Customer interest for > 15. t Mainly Arabian countries Sound interest for poly plants & expansion along PV value chain High capacity utilization until end of 1. HY 211 Existing centrotherm customers expand up to between 2 MW and 1 GW Main growth drivers: Taiwan and China India as upcoming market Strong interest for Upgrade- Packages Potential for Turnkey Light: > 3 MW (final negotiations) 1 further 5 MW CIGS project in 2. HY 211 Strong customer demand but current focus on Taiwanese project Report as of September 3, 21 9

11 Top operating performance and successful project realization Sales and earnings in 9M 21 above previous year level: Sales: EUR million (+22.3% yoy) EBIT: EUR 54.2 million (+52.7% yoy) Earnings per share: EUR 1.76 (+49.2% yoy) Excellent ROCE of 29.1% Record order intake in cell business: EUR 54.1 million Orders from renowned solar cell producers (e.g. LDK Solar) Silicon projects successfully realized First Silicon Out in Taiwan, China and Europe Report as of September 3, 21 11

12 Silicon & Wafer Segment highlights 9M 21 Sales % up to EUR million EBIT: % up to EUR 18.9 million Signing of Qatar contract Strategic contract won for polysilicon production in Qatar (~ EUR 15 million) Further increase in customer demand Taiwan, TPSI, one ot two reactor halls Chinese customers expand along PV value chain New 24-pair technology presented Successful Ramp-up and First Silicon Out at four production plants in Asia and Europe China, Erdos, First Silicon Out 12

13 Solar cell & Module - Highlights 9M 21 Sales % up to EUR million EBIT % up to EUR 6.1 million Record level of order intake: EUR 54.1 million Successful new business with upgrade packages / technology Top 5 Chinese producer: SE ramp-up Q2/211 Taiwanese premium producer: SE ramp-up Q4/21 Chinese premium producer: SE ramp-up in progress Chinese premium producer (New back side technology) -> Ramp-up end of 21 Turnkey contract 6 MW with Asian customer won 13

14 Solar cell & Module - Turnkey is coming back Canada USA Mexico Germany Spain Italy Algeria Belarus Ukraine Middle East India China Korea Taiwan South East Asia Brasil South Africa Australia Saturated markets Established markets Upcoming markets (short term) Upcoming markets (mid term) 14

15 Thin film module Segment highlights 9M 21 Sales EUR 11.9 million EBIT: EUR million Deposition & Annealing area Solid development in Ramp-up process at Taiwanese customer: continuous increase of throughput and efficiency Development of 2nd generation selen equipment in process ZNO sputtering & P2 area Strong demand from potential new customers MM & MO sputtering 15

17 Development of PV industry: Establishment of Big players (producers and suppliers) Start-up phase Start mass production, Movement to Asia Consolidation, Big players establish (producers & equipment suppliers) 4 installed PV modules (GW) Introduction of EEG in Germany Amendment to EEG in Germany Silicon- Shortage, Boom in Spain Financial crisis and crash in Spain average module price ( /Wp) thin film share (GW) c-si share (GW) average module price ( /Wp) Report as of September 3, 21 17

18 Largest PV market today in area of low solar irradiation Source: 8 from Top 1 countries of annual electricity consumption support PV installations Germany (biggest PV market) 6-8 GW in 21 United States China Japan Russia Germany Canada India France Brazil South Korea 1,8 1, ,892 3,271 support PV Report as of September 3, 21 18

19 Two common misunderstandings about capacity growth, overcapacity and capacity utilization A) Don t compare end-of-year B) Peak demand is a driver capacity and installed volume for capacity expansions GW ramp-up realization time Global PV inverter market [MWp] = approx. PV module demand [MWp] Announced capacity (eoy) Average capacity up-time yield Prod. volume cells sold, modules shipped installed Q8 4Q8 1, Q9 2Q9 2,552 3Q9 3,727 4Q9 1Q1 2Q1 Source: IMS Research - inverter report Q2/21 Produced volume Utilization rate = Average capacity Average demand: 8.3 GW Peak demand: > 4 x 3,727 MW = 14.9 GW Report as of September 3, 21 19

20 Cost effective producers will expand despite overcapacities Production costs /Wp Production volume meeting demand Demand overcapacity Manufacturer x - Economy of scale - learning curve etc. PV manufacturers Production volume Average Production cost [ /W p ] Profitable production Shake out of non-profitable production Production volume [MW] New entrant using centrotherm equipment and technology Example: centrotherm customer MAGI Solar Production capacity: 18 MW Efficiency: (mono) ~18.2% Solar cell processing cost:.19 /W p * *centrotherm estimate Report as of September 3, 21 2

22 Financial overview Group Segments Sales 9M Q Silicon & Wafer Sales 9M Q EBIT EBIT margin % % EBIT EBIT margin % % Solar cell & Module Order intake M 21 Q3 21 Sales EBIT EBIT margin % % Order book: ROCE: 29.1% Thin film module 9M 21 Q3 21 Cash:* Equity ratio: 49.3% Sales EBIT * Cash & cash equivalents All figures EBIT margin -28.3% % Report as of September 3, 21 22

23 Asia remains main growth driver Sales development % M 29 9M 21 Breakdown 9M 21 by regions Breakdown 9M 21 by products Rest of Europe 4.5 (8.8%) Germany 21.5 (4.7%) Rest of World 11.3 (2.5%) Total: Asia (84.%) Service & Replacement parts 18.9 (4.1%) Single equipment (82.2%) Consulting & Engineering 12.5 (2.7%) Total: Other 1.5 (.3%) Turnkey production lines 48.9 (1.7%) Report as of September 3, 21 23

24 Significant reduction in material expenses due to an improved materials and optimized resource input and a change in product mix Material expenses Personnel expenses % % % % Material expenses ratio* % % Personnel expenses ratio* 9M 29 9M 21 9M 29 9M 21 *referring to sales Report as of September 3, 21 24

25 High business volume and new market entry (e.g. Qatar) driving other operating expenses Other operating expenses Breakdown by cost category % % in TEUR Management services Travel expenses % Other operating expenses ratio* Freight and packaging Other services Insurance and contributions Legal and general consultancy Sales commissions Research and development Premises expenses Advertising costs Write-downs to trade receivables and receivables relating to production orders Bank charges Guarantee.7.5 Passenger vehicle costs.9.8 Foreign-exchange losses.6.2 9M 29 9M 21 Employee benefit costs Telephone and communication Write-downs to inventories.2. Miscellaneous *referring to sales Total Report as of September 3, 21 25

26 Strong increase in EBITDA and EBIT EBITDA EBIT % Mio. % % % EBITDA margin* % % EBIT margin* 9M 29 9M 21 9M 29 9M 21 *referring to sales Report as of September 3, 21 26

27 Rise in net income and earnings per share Consolidated net income Earnings per share % % 37.4 % Consolidated net income margin* in EUR % M 29 9M 21. 9M 29 9M 21 *referring to sales Report as of September 3, 21 27

28 Strong performance of operating business in core segments: Solar cell & Module and Silicon & Wafer Segment development 9M Silicon & Wafer Solar cell & Module Thin film module % 2.4% 17.1% 17.1% 16.8% % % % Sales EBITDA EBIT % Solar cell & Module: including semiconductor Margins refer to sales Report as of September 3, 21 28

29 Silicon & Wafer: Sales and EBIT increased Sales EBIT 9M 29 9M % M 29 9M % 3% 9.4% 12.5% 2% 1% % Margin (referring to sales) Report as of September 3, 21 29

30 Solar cell & Module: Profitable business driven by shippments of single equipment Sales EBIT 9M % 9M M 29 9M % 12.5% 5% 4% 3% 2% 1% % Solar cell & Module: including semiconductor Margin (referring to sales) Report as of September 3, 21 3

31 Thin film module: Figures reflect investments in CIGS Sales EBIT 9M % 9M 21 9M 29 9M % % -8% % -13% -18% % Margin (referring to sales) Report as of September 3, 21 31

32 Sound development of balance sheet Balance sheet as of September 3, 21 Balance sheet as of December 31, 29 Non-current assets: (41.7%) Equity: (49.3%) Non-current assets: 36.3 (41.4%) Equity: (46.5%) thereof: Goodwill thereof: Goodwill Current assets (58.3%) Non-current liabilities: 82.6 (1.6%) Current liabilities: (4.1%) Current assets (58.6%) Non-current liabilities: 72.2 (9.8%) Current liabilities: (43.7%) thereof: Securities 3.8 Cash and cash equivalents Total Assets thereof: Advance payments received Total Equity and Liabilities thereof: Securities 34.4 Cash and cash equivalents Total Assets thereof: Advance payments received Total Equity and Liabilities Report as of September 3, 21 32

33 Strong profitability reflected in operating & total cash flow Cash flow from operating activities NWC = Changes in Net Working Capital Other reconciliation effects Cash Flow from investing activities Net investments Sale of securities EBT = Earnings Before Taxes M M M 29 9M Cash Flow from financing activities Total Cash Flow M 29 9M M 29 9M 21 Report as of September 3, 21 33

34 Continuously focussing on R&D Total: 3.3 (9M 21) Expenses Changes in inventory Investments in property, plant and equipment Capitalized development costs (intangible) Silicon & Wafer 5.7 Solar cell & Module Thin film module Report as of September 3, 21 34

35 Strong order book Silicon & Wafer Solar cell & Module Thin film module 1, Report as of September 3, 21 35

36 Contact Thank you for you attention! Contact: Saskia Schultz-Ebert Senior Manager Investor & Public Relations centrotherm photovoltaics AG Johannes-Schmid-Strasse Blaubeuren Tel +49 () Fax +49 () Report as of September 3, 21 36