Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (November 2018)
38 slides from Mersen Sa's investor day presentation, Nov 29, 2018
Slide 1: Energy Efficiency at the Heart of Our Processes
ENERGY EFFICIENCY AT THE HEART OF OUR PROCESSES CAPITAL MARKETS DAY – NOVEMBER 29, 2018 CHRISTOPHE BOMMIER, CTO
Slide 2: Customers That Benefit From Our Expertise
CUSTOMERS THAT BENEFIT FROM OUR EXPERTISE FOR GREATER PERFORMANCE AND EFFICIENCY ELECTRICAL POWER ADVANCED MATERIALS NO. 1-2 NO. 1-2 NO. 1-2 NO. 2 WORLDWIDE NO. 2 WORLDWIDE WORLDWIDE Components WORLDWIDE WORLDWIDE Industrial fuses Graphite for power electronics High-temperature Brushes for industria
Slide 3: Inside Mersen: A Reduced Environmental Footprint
INSIDE MERSEN: A REDUCED ENVIRONMENTAL FOOTPRINT ...FROM PRODUCT DESIGN TO RECYCLING CLEAN ECO-FRIENDLY PROACTIVE ONGOING RECYCLING PROCESSES PRODUCTS WASTE MANAGEMENT Graphite manufacturing: 100% of graphite powder recycled Percentage of waste recycled: during the process a “best available technolo
Slide 4: Graphite Manufacturing: A Process Matching Best Available Technologies
GRAPHITE MANUFACTURING: A PROCESS THAT CLOSELY MATCHES TODAY’S “BEST AVAILABLE TECHNOLOGIES” GRAPHITE POWDER MANUFACTURING PHASES RECYCLING OF GRAPHITE WASTE FINISHED OR SEMI-FINISHED PRODUCTS MACHINING COOKING AND GRAPHITIZATION 61 CMD Mersen – November 2018
Slide 5: How to Optimize Energy Consumption: The Example of Holytown
HOW TO OPTIMIZE ENERGY CONSUMPTION IN OUR PROCESSES: THE EXAMPLE OF HOLYTOWN Burned hydrocarbons Batch process 550 g of hydrocarbons 250 g of water 1 kg of viscose RECYCLING 200 g of fibers Savings 300 MWh/year Continuous process 62 CMD Mersen – November 2018
Slide 6: Manufacturing of Fuses: The Importance of Raw Materials
MANUFACTURING OF FUSES: THE IMPORTANCE OF RAW MATERIALS OPTIMIZATION OF RAW MATERIALS RAW MATERIALS FUSE RECYCLING CHANNELS ASSEMBLY FILLING SILICA SANDBLASTING DRYING FINISHED PRODUCTS 63 CMD Mersen – November 2018
Slide 7: How to Optimize the Use of Raw Materials: The Example of Modulostar
HOW TO OPTIMIZE THE USE OF RAW MATERIALS: THE EXAMPLE OF MODULOSTAR CONTEXT CHALLENGES STAKES Make it easier to Stand out from the access competition and change fuses Reduction in the quantity on the fuse holder market of plastic materials Reduce the use of raw Propose a solution that materials by m
Slide 8: Questions?
QUESTIONS ? 65 CMD Mersen – November 2018
Slide 9: Energy Efficiency at the Heart of Our Strategy
ENERGY EFFICIENCY AT THE HEART OF OUR STRATEGY CAPITAL MARKETS DAY – NOVEMBER 29, 2018 CHRISTOPHE BOMMIER, CTO
Slide 10: Mersen: Our Mission, Technological Progress
MERSEN: OUR MISSION, TECHNOLOGICAL PROGRESS WE PROVIDE INDUSTRIAL COMPANIES WE ARE DEVELOPING WORLDWIDE WITH INNOVATIVE SOLUTIONS THE BEST TECHNOLOGIES ENHANCING THE PERFORMANCE OF THEIR FOR THE INDUSTRIES OF THE FUTURE PRODUCTS AND SERVICES 67 CMD Mersen – November 2018
Slide 11: The Chemicals Market
CUSTOMERS THAT BENEFIT FROM OUR EXPERTISE FOR GREATER PERFORMANCE AND EFFICIENCY Example: THE CHEMICALS MARKET 68 CMD Mersen – November 2018
Slide 12: The Corrosive Chemicals Market
THE CORROSIVE CHEMICALS MARKET HCL SYNTHESIS UNITS ARE NEEDED IN DEVELOPMENT ACROSS A VAST NUMBER OF MARKETS 69 CMD Mersen – November 2018
Slide 13: Mersen Supplies HCl Synthesis Units
MERSEN SUPPLIES HCL SYNTHESIS UNITS Combustion at ~ 2,500°C • Chlorine • Hydrogen Water required for cooling + exothermic reaction Hydrochloric acid production (HCL) • PVC HCL SYNTHESIS UNIT: • Polysilicon • Viscose, etc. Equipment for the combustion, absorption and cooling of hydrochloric acid 70 C
Slide 14: Benefits for Our Customers
BENEFITS FOR OUR CUSTOMERS Concentration of caustic soda • Caustic soda • Chlorine Energy required • Hydrogen in the form of water or steam Cooling water from Steam synthesis units Production of steam and hot water IS REUSED FOR HEAT Electrolysis RECOVERY of brine PVC Hot water Sintaclor® HCL synthe
Slide 15: Solution to the Water Challenge in India
SOLUTION TO THE WATER CHALLENGE IN INDIA CUSTOMERS CONTEXT SOLUTION STAKES Adaptation and Viscose and aluminum Long-term customer optimization markets relationships of an existing product are seeing strong growth Limited water Difficult consumption (-65%) climate conditions Production Need for a in
Slide 16: Mersen Strengths
MERSEN STRENGTHS PRODUCT EXPERTISE SYSTEM EXPERTISE GLOBAL NETWORK Local manufacturing Special grade of graphite System that recovers energy for high temperatures produced in the form of steam for (>2,000°C) customer needs Synthesis units for production facilities are manufactured locally System for
Slide 17: Industrial Applications for Lasers
CUSTOMERS THAT BENEFIT FROM OUR EXPERTISE FOR GREATER PERFORMANCE AND EFFICIENCY Example: INDUSTRIAL APPLICATIONS FOR LASERS 74 CMD Mersen – November 2018
Slide 18: Understanding Laser Scanners
UNDERSTANDING LASER SCANNERS Laser galvo scanning Laser source mirrors High-precision laser beam positioning 75 CMD Mersen – November 2018
Slide 19: A Growing Market
A GROWING MARKET En MUSD ANNUAL MARKET * « Macro Material » 4000 2014-2020 CAGR +15-20% Cutting 3000 Welding Sintering 2000 Surface treatment 3D printing 1000 Geometric measurement 0 2014 2015 2016 2017 2018 2019 2020 * Source: “Industrial Laser Solutions” - Macro Material - March 2016 – and Mersen
Slide 20: Significant Market Opportunities Mean Limited Exposure to Cyclical Change
SIGNIFICANT MARKET OPPORTUNITIES MEAN LIMITED EXPOSURE TO CYCLICAL CHANGE LASER MACHINE GALVANOMETER END-CUSTOMERS MANUFACTURERS MANUFACTURERS MERSEN CUSTOMERS Non-exhaustive list 77 CMD Mersen – November 2018
Slide 21: Growth Drivers
GROWTH DRIVERS Technical advancements in laser sources Wavelengths, pulse lengths, lower energy requirements, etc. GREATER PRODUCTIVITY AND ENERGY EFFICIENCY Increase in the size of mirrors Broader spectral range, large surface processing LOWER ELECTRICITY CONSUMPTION Higher quality mirrors High ang
Slide 22: SiC Is the Ideal Material
SiC IS THE IDEAL MATERIAL Figure of merit: quality of materials for mirror applications SiC Mersen Traditional solutions Glass Toxic and rare Stiffness SiC Mersen 79 CMD Mersen – November 2018
Slide 23: Automotive Industry Example
AUTOMOTIVE INDUSTRY EXAMPLE WEIGHT SAVINGS TIME SAVINGS SPACE SAVINGS - LOWER CAPEX Traditional welding Laser welding 40 kg less metal Time savings Half Half per car of 50% the manufacturing space the number of robots Source: VW Group 80 CMD Mersen – November 2018
Slide 24: Automotive Market Example
AUTOMOTIVE MARKET EXAMPLE 81 CMD Mersen – November 2018
Slide 25: Mersen Strengths in SiC Mirrors for Laser Processes
MERSEN STRENGTHS IN SiC MIRRORS FOR LASER PROCESSES TAILORED UNIQUE EXPERTISE GLOBAL NETWORK MANUFACTURING Recognized expertise in silicon carbide, Integrated mirror polishing process Strong partnerships a material with the ideal properties for this application with OEMs Clear technical understandin
Slide 26: Growth Sales Potential for Mersen in Lasers
GROWTH SALES POTENTIAL FOR MERSEN IN LASERS 2018-2023 CAGR est +20-30% €8m-€10m €3m ~0 2015 2018 est 2023 est 83 CMD Mersen – November 2018
Slide 27: SiC Mirrors for Lasers Strategy
SiC MIRRORS FOR LASERS STRATEGY Develop SiC optical polishing expertise (10mm to 30mm) Increase production capacities in line with current demand (capex: €3m to €5m in 2 years) Next steps: laser com satellite constellation projects that could impact the size of the market over time (1 constellation
Slide 28: SiC Semiconductors
CUSTOMERS THAT BENEFIT FROM OUR EXPERTISE FOR GREATER PERFORMANCE AND EFFICIENCY Example: SiC SEMICONDUCTORS 85 CMD Mersen – November 2018
Slide 29: What Makes SiC Semiconductors So Successful?
WHAT MAKES SiC SEMICONDUCTORS SO SUCCESSFUL? 86 CMD Mersen – November 2018
Slide 30: Developments in the Semiconductors Market
DEVELOPMENTS IN THE SEMICONDUCTORS MARKET MATURE MATURING EMERGING MARKET MARKET TECHNOLOGIES RAW MATERIAL/ GaN Silicon SiC GaN GaAs InP SUBSTRATE /Sapphire COMPONENTS Power component RF Opto LED Microprocessor Memory chip (IGBT, MOSFET, JFET) component electronic END-MARKET Networks and Speed Energ
Slide 31: The Growth of the SiC Semiconductors Market Is Set to Accelerate
THE GROWTH OF THE SiC SEMICONDUCTORS MARKET IS SET TO ACCELERATE AFTER 2020-2022 IN LINE WITH THE GROWTH OF THE EV MARKET SiC COMPONENTS MARKET IN USD MILLIONS 1200 2020-2022 CAGR 1000 +30-40% Other Speed drives 800 EV 600 2016-2019 CAGR +18% Renewables 400 200 Rail Power supply 0 2016 2017 2018 201
Slide 32: A Global Market for Wafers and Components
A GLOBAL MARKET FOR WAFERS AND COMPONENTS Designers/manufacturers of SiC components Designers/manufacturers of wafers 89 CMD Mersen – November 2018
Slide 33: Mersen Solutions
MERSEN SOLUTIONS GRAPHITE COMPONENTS Crucible Induction coil 2,400°C +/- 2°C Quartz tubing RIGID FELT SiC INSULATION (Patent pending) INSULATION GRAPHITE CRUCIBLE Reservoir of SiC powder SiC ingot 90 CMD Mersen – November 2018
Slide 34: Mersen Strengths on the SiC Semiconductors Market
MERSEN STRENGTHS ON THE SiC SEMICONDUCTORS MARKET UNIQUE EXPERTISE CUSTOMER RELATIONS STRONG ORGANIZATION Ability to meet Global organization technical challenges Long-standing relationships with designers Asia, Europe and the United States Graphite: very high grade (wafers + components) that place
Slide 35: Growth Potential for Mersen in SiC Semiconductors
GROWTH POTENTIAL FOR MERSEN IN SiC SEMICONDUCTORS 2018-2023 CAGR est 120 +15-20% €50m-€60m 100 80 60 €20m-€25m 40 20 0 2018 est 2023 est 92 CMD Mersen – November 2018
Slide 36: Mersen Strategy for the SiC Semiconductors Market
MERSEN STRATEGY FOR THE SiC SEMICONDUCTORS MARKET Accelerate our positioning on the SiC semiconductors market which is less cyclical than other semiconductor markets Keep pace with the accelerated growth of the market by increasing investment in rigid felt (€25m-€30m for the next 3 years) in prepara
Slide 37: Conclusion for Mersen
CONCLUSION FOR MERSEN MATERIALS EXPERTISE INSULATION GRAPHITE ELECTRICAL EXPERTISE SiC SEMICONDUCTORS NEED TO BE PROTECTED COMPONENTS FOR POWER A BROAD VARIETY OF CONVERSION HIGH-POTENTIAL OPPORTUNITIES 94 CMD Mersen – November 2018
Slide 38: Questions?
QUESTIONS ? 95 CMD Mersen – November 2018