Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (December 2024)
29 slides from Mersen Sa's investor day presentation, Dec 5, 2024
Slide 1: Our medium-term growth drivers
03 Our medium-term Luc Themelin Olivier Chief Executive Raymond Salvador Lamas growth drivers Officer VP, GS Sales SVP, SPM
Slide 2: Major growth trends for our markets
Major growth trends for our markets Electric vehicles Development of grids – Energy transmission Sustainable development of the planet Energy Energy Renewable storage Energy efficiency efficiency Energies Smart grid infrastructure Nuclear power Direct Data current storage 29 Capital Market Day – Dec
Slide 3: Renewable energies will transform the world's energy mix by 2030
Renewable energies will transform the world's energy mix by 2030 Renewable energy as a percentage of global electricity production By 2025, renewable energies will overtake coal 2023 30% to become the leading source of electricity production 2030 46% By 2030, renewable energy sources will account fo
Slide 4: Sustained growth in solar panels, driving energy storage and transportation markets
Sustained growth in solar panels, driving energy storage and transportation markets Annual capacity installations (GW) x3 1,400 1,200 1,000 800 600 1 164 1 012 880 400 765 665 580 505 200 440 228 Median scenario 138 170 99 106 115 2017 2018 2019 2020 2021 2022 2023 2024e 2025e 2026e 2027e 2028e 2029
Slide 5: Mersen, a major supplier across the solar power value chain
Mersen, a major supplier across the solar power value chain Electricity generation MANUFACTURING STAGES Silicon ingot Cell Electrical panel Storage Power manufacturing manufacturing protection conversion MERSEN PRODUCTS 95% of the market in China Installation-related market CUSTOMERS 32 Capital Mark
Slide 6: New solar cell manufacturing projects, potential opportunities for Mersen
New solar cell manufacturing projects, potential opportunities for Mersen Solar cell manufacturing plant projects (vertical integration, from polysilicon to solar cells) 2 projects 10 GW each India United States France 2 projects 3 GW & 5 GW 1 project Turkey 5 GW 1 project South-East Asia 1 GW 6 pro
Slide 7: Renewable energies: Medium- to long-term potential unchanged
Renewable energies: Medium- to long-term potential unchanged 2024 sales In the short term By 2029 Sales > €200m ~ €140m Materials Materials Solar: Maintain our leadership in the Leverage our industrial capabilities and customer manufacture of large solar parts in China. relationships to build strong
Slide 8: Major growth trends for our markets
Major growth trends for our markets Electric Development of grids Vehicles – Energy transmission Sustainable development of the planet Energy Energy Renewable Energy efficiency storage Energies efficiency Smart grid infrastructure Nuclear power Direct Data current storage 35 Capital Market Day – Dec
Slide 9: Electric vehicles: Mersen is positioned in several segments
Electric vehicles: Mersen is positioned in several segments Heavy industrial vehicles Bus & trucks Passenger cars 36 Capital Market Day – December 5, 2024
Slide 10: Strong growth in the emerging EV passenger vehicle market
Strong growth in the emerging EV passenger vehicle market Number of BEVs + PHEVs Growth driven in million Growth driven by early by China 18 adopters and European regulatory constraints 16 19,2% Share of 14 global market 16,6% 12 13,6% 10 8 16,5 8,4% 14,2 6 10,5 4 4,2% 6,8 2,6% 2 1,4% 2,2% 3,2 2,1 2
Slide 11: BEV and PHEV production in millions
Market growth strongly linked to China For Mersen, the addressable market remains significant 50 Growth in 2025 is linked to application of the 45 European CAFE BEV and PHEV production in millions standard and the launch 40 of several new models Chinese market 35 21,5 20,4 30 19,3 25 17,9 20 16,0 13
Slide 12: Two Mersen product ranges for EV batteries
Two Mersen product ranges for EV batteries Busbars Battery and auxiliary circuit protection fuses Battery Charging station manufacturers Car/bus manufacturers or subcontractors manufacturers 39 Capital Market Day – December 5, 2024
Slide 13: Mersen's value proposition for the EV market
Mersen's value proposition for the EV market Fuses Busbars Customized solutions for 2 applications: New range of fuses dedicated to EV market (150-800V) Cell interconnection Production capacity automated, IATF Thermal protection thanks to insulation certified layers Smart busbars, providing data for
Slide 14: The first automatic busbar production line for ACC modules
The first automatic busbar production line for ACC modules 41 Capital Market Day – December 5, 2024
Slide 15: Mersen is connected to major carmakers outside China
Mersen is connected to major carmakers outside China Europe North America Asia Light vehicles Heavy vehicles 42 Capital Market Day – December 5, 2024
Slide 16: A three-year delay in the EV market, but positive outlook beyond this timeframe
A three-year delay in the EV market, but positive outlook beyond this timeframe 2024 sales Sales ~ €100m In the short term ~ €30m By 2029 • Harness growth in the European market • Important addressable market outside China, boosted in the short term by CAFE with the US market more dynamic than regul
Slide 17: Major growth trends for our markets
Major growth trends for our markets Electric vehicles Development of grids – Energy transmission Sustainable development of the planet Energy Energy Renewable efficiency storage Energy Energies efficiency Smart grid infrastructure Nuclear power Direct Data current storage 44 Capital Market Day – Dec
Slide 18: SiC power components, a benefit for the electric vehicle market
SiC power components, a benefit for the electric vehicle market SiC power components market 48% 70% 76% 2019 2023 2029 est. USD 511 million USD 2.7 billion USD 10 billion Electric vehicles Source: Yole – Power SiC Markets and Applications 2024 Industrial and renewable energies 45 Capital Market Day
Slide 19: The advantages of SiC over Si
The advantages of SiC over Si Performance Cost SiC for more efficient power Higher, but falling, costs: conversion: • A SiC converter costs 1.7x more than a Balancing • ~20% reduction in system size Si converter for a 400V battery, and 2x more for an 800V battery and weight performance Future cost r
Slide 20: A growing number of SiC semiconductors in high-performing electric vehicles
A growing number of SiC semiconductors in high-performing electric vehicles 50 to 100 SiC MOSFETs OBC (On Board in an 800 V electric vehicle Charging) SiC MOSFET SiC MOSFET DC DC/DC charging converter station Inverter A/C Compressor SiC MOSFET SiC MOSFET SiC MOSFET Source: Yole 47 Capital Market Day
Slide 21: Mersen, a supplier to all players in the SiC semiconductor manufacturing process
Mersen, a supplier to all players in the SiC semiconductor manufacturing process 48 Capital Market Day – December 5, 2024
Slide 22: p-SiC project
p-SiC project 2022 2023 2024 2025 2026 2027 2028 2029 2030 Installation of production lines Approval of technical principles Mersen's production capacity: Improvement of 400,000 p-SiC wafers (eq. 6’) per year yields depending on SmartSiC qualifications Capex: ~€60m A technical team at Mersen of arou
Slide 23: Mersen is connected to the entire EV market
Mersen is connected to the entire EV market EVs SiC transistors Wafers SiC transistors EVs 50 Capital Market Day – December 5, 2024
Slide 24: High inventory levels between 2022 and 2024, impacting market growth rates
High inventory levels between 2022 and 2024, impacting market growth rates SiC POWER WAFER MARKET SALES In USD millions Year-on-year growth (%) 72% 3,000 62% Original scenario 2,500 46% 40% Updated 2,000 Mersen Scenario 1,500 1,000 500 0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2
Slide 25: A three-year delay compared with the original plan
A three-year delay compared with the original plan 2024 sales In the short term By 2029 Sales > €220m ~ €100m • The strong growth until mid-2024 led to a • Very important potential mainly linked to build-up of high inventory levels throughout EV market the chain • 2025 lower than originally forecast
Slide 26: Major growth trends for our markets
Major growth trends for our markets Electric vehicles Development of grids – Energy transmission Sustainable development of the planet Energy Energy Renewable Energy efficiency storage Energies efficiency Smart grid infrastructure Nuclear power Data Direct storage current 53 Capital Market Day – Dec
Slide 27: Silicon semiconductor market prospects boosted by AI
Silicon semiconductor market prospects boosted by AI In USD billions 1200 >1,000 1000 ~50% 800 linked to IoT and high-speed 600 computing (AI) 400 200 0 2023 2024e 2025e 2026e 2027e 2028e 2029e 2030e Source: WSTS Forecast summary for 2024 and 2025 – Applied Materials May 2024 for 2030 54 Capital Mar
Slide 28: Mersen present at the technical stages of silicon semiconductor manufacturing
Mersen present at the technical stages of silicon semiconductor manufacturing Polysilicon & ingot pulling Wafer epitaxy Atomic layer Photolithography Etching Ion implantation deposition OUR PRODUCTS CUSTOMERS OUR North America Europe Asia END USERS Global Wafers ShinEtsu Siltronic Sumco Texas Instru
Slide 29: Unchanged medium-term potential for the silicon semiconductor market
Unchanged medium-term potential for the silicon semiconductor market 2024 sales In the short term By 2029 Sales > €100m ~ €50m • Important drop in 2024 due to inventory • Considerable demand for high-speed levels computing (AI) and data centers • Recovery expected in H1 2025 Strategy: Action plan •