Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Presentation (December 2021)
25 slides from Mersen Sa's investor presentation, Dec 7, 2021
Slide 1: Mersen's semiconductor growth path
CHIP-CHAT: Mersen’s semiconductor growth path December 7th, 2021
Slide 2: Today's agenda
The semiconductor market: Crisis? What crisis? Luc Themelin, CEO Today’s Mersen: A key link in the semiconductor value chain Philippe Roussel, VP Global Strategic Marketing agenda Electrical Power Alexandre Potier, CTO Advanced Materials Strong market potential for Mersen Luc Themelin, CEO 2
Slide 3: The semiconductor market: Crisis? What crisis?
The semiconductor market: Crisis? What crisis? 3
Slide 4: Shortage dominates the news …
Shortage dominates the news … 4
Slide 5: ... but mainly reflects surging demand
... but mainly reflects surging demand Contextual Structural Ramp-up and rollout of 5G networks Lockdown measures led to Increased demand Devices embedded with Safety features an explosion in demand for new smartphones sensors and software and Advanced driver for computers interconnected over the In
Slide 6: The way out of the crisis
The way out of the crisis Investments already planned to meet demand TSMC to invest $100 billion Samsung Electronics raised Intel invests $20 billion in new China’s SMIC will invest $8.87 SK Hynix to invest 800 billion over the next three years its planned investment factories in Arizona (USA), will
Slide 7: Tech sovereignty push brings opportunity
Tech sovereignty push brings opportunity EU aims to double chip manufacturing to secure supply Objective Objective Objective Rebuild Europe’s capacity to produce Regain global leadership position China to produce 70% of the chips high-quality microelectronics on advanced chip manufacturing it uses b
Slide 8: Mersen: A key link in the semiconductor value chain
Mersen: A key link in the semiconductor value chain 8
Slide 9: Semiconductors: A growing share of Mersen's business
Semiconductors: A growing share of Mersen’s business INCREASING SALES CONTRIBUTION DRIVEN BY TARGETED CAPEX Sales in €m (2017-2021) ~€85m 90 10% +18-20% 80 9% 8% 70 7% 60 €45 6% 50 5% 40 4% million 30 3% 20 2% 10 1% 0 0% 2017 2018 2019 2020 2021 est Si SiC % total sales Europe North America Asia 9
Slide 10: Semiconductors are part of the electronics end-market
Semiconductors are part of the electronics end-market 32% Processes 23% Manufacture of compound semi-conductors (including SiC) Electronics Manufacture of Si semi-conductors Power electronics (drives, inverters, …) €684 11% million* Chemicals 21% Energies 13% Transportation * 9 months sales 10
Slide 11: Power Electronics offers high growth potential across Mersen's markets
Power Electronics offers high growth potential across Mersen’s markets RAW MATERIAL/ SUBSTRATE Silicon SiC Power Electronics COMPONENTS Networks END-MARKET & computers Industrial Drives Rail Renewable energies Electric Vehicles 11
Slide 12: From sand to Si-semiconductor: an elaborate industrial process
From sand to Si-semiconductor: an elaborate industrial process 150 different steps Wafer epitaxy Deposition Photolithography Etching Ion Implantation Ingot pulling & slicing in wafer Veeco Applied Materials Applied Materials PVA Tepla ASML LAM Research OEMS Aixtron LAM Research Axcelis ECM Canon Tok
Slide 13: SiC semiconductor: a sophisticated new product
SiC semiconductor: a sophisticated new product 15 different steps Deposition Photo Ion SiC epitaxy Etching Annealing lithography Implantation Crystal Aixtron Applied Materials ASML LAM Research Applied Materials OEMs PVA Tepla Nuflare LAM Research Canon Tokyo Electron Axcelis Centrotherm GTAT Tokyo
Slide 14: Our materials expertise
FINE ISOSTATIC SILICON CARBIDE CARBON GRAPHITE CVD COATING INSULATION Our materials − High temperature resistance − Purity − High temperature expertise (3,000°C) resistance (2,800°C) − Mechanical strength − High purity level (< 5 ppm) − High purity − Thermal conduction − Mechanical stability − Therm
Slide 15: A process that emits zero CO2
A process that emits zero CO2 Mersen graphite manufacturing process Isostatic Baking Graphitization Raw material Mixing compression (natural graphite, cokes, 1,000°C 2,800°C recyled graphite) Recycling of graphite waste Wafer graphite SiC coating High temp Precise susceptor Purification Machining Fi
Slide 16: Energy efficiency in Mersen's carbon insulation process
Energy efficiency Energy efficiency in Mersen’s carbon at customer sites insulation process At 2,400°C, (SiC sublimation temperature) Mersen carbon insulation - very high insulating power - allows savings of 15% of energy vs standard product Savings of 25GWh/year Savings New process 300 MWh/year Equ
Slide 17: Strong market potential for Mersen
Strong market potential for Mersen 17
Slide 18: The semiconductor market will see significant growth through 2030
The semiconductor market will see significant growth through 2030 SEMICONDUCTOR MARKET ($BN) SIC COMPONENT MARKET ($M) CAGR 2021-2030 CAGR 2021-2030 +6% +23% 6000 1000 900 5000 Other 800 700 4000 Industrials 600 3000 Renewables 500 400 2000 300 200 1000 EV 100 0 0 2019 2020 2021 2022 2023 2024 2025
Slide 19: Strategic partnership with Soitec
Strategic partnership with Soitec VERY LOW ELECTRIC RESISTIVITY POLYSIC SUBSTRATES WILL ENABLE HIGHER ENERGY EFFICIENCY, FOSTERING Strategic partnership to develop a new range of THE DEVELOPMENT PolySiC substrates for the EV market OF MORE ENERGY-EFFICIENT ELECTRIC VEHICLES Soitec and Mersen teams l
Slide 20: Traditional SiC vs SmartSiC
Traditional SiC vs SmartSiCTM Mersen in the process Mersen now in the device TRADITIONAL PVT PROCESS FINAL SIC SOITEC SMARTSICTM (SIC monocrystalline) POWER DEVICE ON POLY-SIC PRODUCT COST High Low (CVD + SmartCut) Limited High DOPING to reduce resistivity by technology 20
Slide 21: Mersen's strengths
Mersen’s strengths GLOBAL AND LOCAL Longstanding ties with customers Customer intimacy OEM and replacement market Significant market share in Si, much more in SiC R&D center Manufacturing site Dedicated to semiconductors 21
Slide 22: Mersen's strategy for the semiconductor market
Growth in line with Si market, thanks to our strong positions in particular in ion implant and ALD (Atomic Layer Deposition) Mersen’s Consolidate our positioning on the SiC semiconductor market in the sublimation process strategy with our historical partners for the semiconductor Strengthen cooperat
Slide 23: Mersen's medium-term potential in semiconductors
Mersen’s medium-term potential in semiconductors Sales in €m 300 €230m-280m 250 ~25-30% SmartSIC Components EBITDA margin 200 (potential) €140m-170m Capex €8m-12m/ 150 year €85m SiC PVT (excl. SmartSIC) 100 €60m Components 50 SmartSIC Capex Si Components under review 0 2018 2021 est 2025 est 2030 po
Slide 24: Key takeaways
Key takeaways Chip “crisis” offers major growth opportunity for Mersen Silicon-dominated semiconductor market showing robust growth SiC applications including EVs promise fast expansion Mersen positioned for profitable growth in line with sustainability objectives 24
Slide 25: Q&A session
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