Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (December 2016)
86 slides from Mersen Sa's investor day presentation, Dec 2, 2016
Slide 1: Investor Day, December 2, 2016
INVESTOR DAY DECEMBER 2, 2016
Slide 2: Today's Objectives
TODAY’S OBJECTIVES GIVE A GREATER INSIGHT INTO THE GROUP HIGHLIGHT MERSEN’S INNOVATION AND GROWTH OPPORTUNITIES DISCOVER MERSEN IN THE TRANSPORTATION MARKET MEET SOME OF OUR SENIOR MANAGEMENT 2 Investor Day– December 2, 2016
Slide 3: Agenda
AGENDA 9:00 – 9:30 Group’s strategy Luc Themelin 9:30 – 10:10 Mersen in the rail market Gilles Boisseau 10:10 – 10:40 Mersen in aeronautics Eric Guajioty Break 11:00 – 11:15 Innovate at Mersen Christophe Bommier 3 case studies Christophe Bommier 11:15 – 12:15 San Francisco Wireless Philippe Roussel
Slide 4: Global Expert in Electrical Power and Advanced Materials
GLOBAL EXPERT IN ELECTRICAL POWER AND ADVANCED MATERIALS LUC THEMELIN, CEO
Slide 5: Mersen in Brief
MERSEN IN BRIEF SALES STAFF LEADERSHIP POSITIONS WORLD €772 M* 6,191** N°1 & N°2 37 % AMERICAS PRESENCE IN 35 COUNTRIES GRAPHITE-BASED ANTI-CORROSION 34 % EUROPE EQUIPMENT 29 % ASIA AND REST OF THE BRUSHES AND BRUSH-HOLDERS FOR INDUSTRIAL ELECTRIC MOTORS WORLD HIGH-TEMPERATURE ISOSTATI
Slide 6: Mersen: Our Mission
MERSEN: OUR MISSION WE DEVELOP WE PROVIDE INDUSTRIAL COMPANIES AROUND THE THE BEST TECHNOLOGIES FOR WORLD WITH INNOVATIVE SOLUTIONS ENHANCING THE THE INDUSTRIES OF THE FUTURE PERFORMANCE OF THEIR PRODUCTS AND SERVICES 6 Investor Day– December 2, 2016
Slide 7: Leadership Position on Our Expertises
LEADERSHIP POSITION ON OUR 2 EXPERTISES … ~ 60% SALES ~ 40% SALES GLOBAL ADVANCED MATERIALS PRESENCE ELECTRICAL POWER LEADERSHIP POSITIONS ANTICORROSION EQUIPMENT 15-30% MARKET ELECTRICAL PROTECTION SHARES & CONTROL GRAPHITE CUSTOMIZED SPECIALTIES SMALL SERIES STRONG SOLUTIONS FOR EXPERTISE POWER PO
Slide 8: With Financial Complementary Model
… WITH FINANCIAL COMPLEMENTARY MODEL ADVANCED MATERIALS ELECTRICAL POWER CYCLICAL BUSINESS (CHEMICAL, GRAPHITE) LESS CYCLICAL BUSINESS HIGH EBITDA: 17% (5Y. AVERAGE) EBITDA: 14% (5Y AVERAGE) CAPITAL INTENSIVE (DEPRECIATION: 7.4% LOW CAPITAL INTENSIVE (DEPRECIATION : OF SALES) 2.4% OF SAL
Slide 9: A Global Network Providing Opportunities and Robustness
A GLOBAL NETWORK PROVIDING OPPORTUNITIES AND ROBUSTNESS EUROPE 35% FRANCE 9% GERMANY 9% NORTH AMERICA 36% GREAT BRITAIN 3% SPAIN 3% USA 32% ITALY 3% ASIA-PACIFIC 24% 14 INDUSTRIAL FACILITIES 21 INDUSTRIAL FACILITIES 1,900 EMPLOYEES CHINA 9% 2,200 EMPLOYEES JAPAN 4% SOUTH KOREA 4% INDIA 3% 13 INDUSTR
Slide 10: Expanding Markets
EXPANDING MARKETS… ENERGIES ELECTRONICS ELECTRIC 5% 19% 18% VEHICLE 35% AERONAUTICS €772m 16% TRANSPORTATION PROCESS INDUSTRIES 36% 60% RAIL 11% CHEMICALS 2015 Sales figures 10 Investor Day– December 2, 2016
Slide 11: Pillars of Our Strategy
PILLARS OF OUR STRATEGY ■ Increase synergies in the segments ■ Lean on the 3 new corporate positions to deploy strategy ■ Develop talents targeted toward some key functions Enhance performance ■ Emphasize collaboration within the through new Group organization ■ Maintain « best in class » safety sta
Slide 12: An Ambitious Strategy to Make the Group More Robust and Competitive
AN AMBITIOUS STRATEGY TO MAKE THE GROUP MORE ROBUST AND COMPETITIVE 2017 Announcement Launch in Sept 2016 4 2013 Reorganization 2016 Transform 2015 Stepping up of the 2014-2015 Operational Operational Excellence plan 2 segments to Excellence Plan Rationalization of strengthen aiming at improving ind
Slide 13: An Active Portfolio Management
AN ACTIVE PORTFOLIO MANAGEMENT Consolidate our core businesses to strengthen our leadership JV Harbin PURSUE PLANS FOR SELECTIVE Expand in geographical regions recording strong growth ACQUISITIONS Acquire growth platforms in adjacent business segments Acquire key expertises DIVESTITURE OF PR
Slide 14: Innovation: Central to Our Growth Model
INNOVATION: CENTRAL TO OUR GROWTH MODEL HYBRID CONTINUOUS LASER TECHNOLOGY NEW POSITION IN THE MATERIALS FLOW REACTOR OPTICS EXECUTIVE FORMULATION COMMITTEE IN SIC 1 IMPROVE INNOVATION MONITORING 2 ANTICIPATE CUSTOMER ISSUES 3 BRING PRODUCTS TO ■ Energy storage ■ Specialty ■ Laser THE MARKET QUICKLY
Slide 15: Medium-Term Ambition of Growth in Sales and Profitability
OVER THE MEDIUM TERM, AN AMBITION OF GROWTH BOTH IN SALES AND PROFITABILITY MERSEN’S STRENGTHS MARKETS AND GEOGRAPHIES VIBRANT DIVERSIFICATION EXPANDING MARKETS AMBITIOUS ABILITY TO COMPETITIVE PLAN ADAPT QUICKLY 15 Investor Day– December 2, 2016
Slide 16: Transportation Market, a Significant Growth Potential
TRANSPORTATION MARKET, A SIGNIFICANT GROWTH POTENTIAL IN THE MEDIUM-TERM MODIFIER 2020 CAGR [5-12%] €[160-220]M 2015 €125 M 16 Investor Day– December 2, 2016
Slide 17: Mersen in the Rail Market
MERSEN IN THE RAIL MARKET GILLES BOISSEAU, SVP ELECTRICAL POWER
Slide 18: Rail Market: A Growing Trend in Our Main Geographies
RAIL MARKET: A GROWING TREND IN OUR MAIN GEOGRAPHIES +2.2% 35.5 +1.3% +0.8% 31.2 7.7 12 12.6 7.1 +3.7% Russia Eastern Europe 27.7 Western Europe 22.2 North America +4.2% 23.9 +2.5% 7.0 +1.4% 7.6 18.7 120.7 Africa – Middle-East Asia-Pacific 102.2 +5.7% 4.1 5.8 Latin America World Market volume 2011-1
Slide 19: What Drives the Rail Market?
WHAT DRIVES THE RAIL MARKET? MACRO-ECONOMY DEMOGRAPHY ENERGY INFRASTRUCTURE & ENVIRONMENT States‘ stimulus packages Growth of urban Car losing ground Refurbishing populations, mainly in Europe Market liberalization in emerging nations Electrification Rail’s green tag Network interope
Slide 20: Growth Drivers by Geography
GROWTH DRIVERS BY GEOGRAPHY EUROPE EASTERN EUROPE & RUSSIA NORTH AMERICA Densification of Very high speed network across Europe (Fr, Ger, It) Mass transit renewal projects Infrastructure refurbishing Mass transit renewal projects in the US Modernization and refurbishing Urban projects
Slide 21: Mersen Is Positioned on All Segments of the Rolling Stock Market
MERSEN IS POSITIONED ON ALL SEGMENTS OF THE ROLLING STOCK MARKET HIGH & VERY HIGH SPEED + 2.4% CAGR LOCOS + 0.9% CAGR €33 bn* +2% CAGR INTERURBAN + 0.8% CAGR URBAN + 4.0% CAGR UNIFE 2017-19 RoS Accessible Market Outlook *2011-2013 Rail market breakdown (Rolling stock) 21 Investor Day– December 2, 20
Slide 22: Mersen's Product Offer
MERSEN’S PRODUCT OFFER… VIA POWER ENERGY INVERTERS SUPPLY TO MOTORS Cooling devices Brushes and brush-holders Pantograph strips or Bus Bars 3rd rail collector AVERAGE MERSEN’S SALES IN EACH METRO TRAIN Fuses & fuse boxes [€80-100 K] Motor Maintenance Service 22 Investor Day– December 2, 2016
Slide 23: For a Global Customer Base: Car Builders
… FOR A GLOBAL CUSTOMER BASE: CAR BUILDERS AND… Non exhaustive list 23 Investor Day– December 2, 2016
Slide 24: Operators for the After Market
… OPERATORS FOR THE AFTER MARKET Non exhaustive list 24 Investor Day– December 2, 2016
Slide 25: Resulting in Sales All Around the Globe
RESULTING IN SALES ALL AROUND THE GLOBE ROW EUROPE ASIA PACIFIC 6% 39% MERSEN’S 2015 €80 M SALES BREAKDOWN 39% IN RAIL 16% NORTH AMERICA 25 Investor Day– December 2, 2016
Slide 26: Mersen's Key Success Factors
MERSEN’S KEY SUCCESS FACTORS POWERFULL MANUFACTURING BASE BROAD EXPERTISE STRONG ORGANIZATION Able to provide local Meet transportation Global organization content norms & certifications Normalization capability Dedicated local High technical skills vendor at OEM Complete solution: study
Slide 27: Strategy
STRATEGY INCREASE PARTNERSHIPS WITH OEM FROM PRODUCT INNOVATION TO CO-DEVELOPMENT DEVELOP « GREEN » OFFER Wireless technologies Predictive maintenance “Redesign to cost” offer FOCUS ON DEVELOPING GEOGRAPHIES (INDIA, CHINA, …) 27 Investor Day– December 2, 2016
Slide 28: Illustration of the Strategy: Harbin JV
ILLUSTRATION OF THE STRATEGY: HARBIN JV THE CHINESE RAIL MARKET 39,000 active locomotives (compared to 29,000 in the USA) with a high utilization rate (80 to 90%) Largest high speed train network (five times bigger than SNCF) OBJECTIVES FOR MERSEN Expand product range sold to Chinese railw
Slide 29: Mersen Potential in Rail
MERSEN POTENTIAL IN RAIL CAGR 2015-2020 [3-6]% €90-110 M €80 M AFTER MARKET €30 M OEM €50 M 2015 2020 29 Investor Day– December 2, 2016
Slide 30: What's Next? Hyperloop?
WHAT’S NEXT? HYPERLOOP? HYPERLOOP: SUPER-HIGH GROUND TRANSPORTATION CONCEPT PROPOSED BY ELON MUSK (OBJECTIVE: LOS ANGELES – SAN FRANCISCO IN 35 MINUTES) MERSEN PARTNERING WITH TRANSPOD (CANADA) ON COOLING SOLUTIONS FULL-SCALE CONCEPT PRESENTED AT INNOTRANS BERLIN (SEPT. 2016) 30 Investor Day–
Slide 31: Mersen in Aerospace
MERSEN IN AEROSPACE ERIC GUAJIOTY, SVP ADVANCED MATERIALS
Slide 32: Aerospace: An Attractive Market for Mersen
AEROSPACE: AN ATTRACTIVE MARKET FOR MERSEN CIVIL AIRCRAFT MARKET WORLD AIR TRAFFIC HAS OUTPERFORMS WORLD ALWAYS* OUTPERFORMED GDP GROWTH GDP AND WILL CONTINUE New aircrafts = new equipment A strong potential in terms for Mersen of aftermarket *Source: Airbus 32 Investor Day– December 2, 2016
Slide 33: Civil Aircraft Market Outperforms World GDP Growth
CIVIL AIRCRAFT MARKET OUTPERFORMS WORLD GDP GROWTH : A STRONG POTENTIAL FOR OEM SALES Nb aircraft Nb aircraft Installed base Installed base 45,000 45,000 42,180 40,000 40,000 37,500 35,000 35,000 30,000 30,000 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 0 0 Beginning 2014 203
Slide 34: Increasing Aircraft Utilization Rate
INCREASING AIRCRAFT UTILIZATION RATE: A STRONG POTENTIAL FOR AFTERMARKET Airbus GMF 2016: ICAO total traffic World annual traffic (trillion RPK) 4.5% growth p.a Sources: ICAO (International Civil Aviation Organization), Airbus GMF 2016 RPK: Revenue Passenger Kilometres 34 Investor Day– December 2, 2
Slide 35: What Drives the Market?
WHAT DRIVES THE MARKET? DEMOGRAPHY GLOBAL COST DEFENCE Increasing middle-class Increase efficiency National sovereignty in emerging countries Extend maintenance Tourism cycles Business Reduce maintenance costs: more electric Lack of other infrastructure devices, less hydraulic; (USA,
Slide 36: Mersen's Solution for Aeronautics
MERSEN’ SOLUTION FOR AERONAUTICS 36 Investor Day– December 2, 2016
Slide 37: Mersen in an Aircraft
MERSEN IN AN AIRCRAFT* BRAKES €[0-40]K ENGINE OTHER €[5-15]K €[10-30]K TYPICAL MERSEN’S SALES IN AN AIRCRAFT: [€15-60] K/AIRCRAFT *latest generation 37 Investor Day– December 2, 2016
Slide 38: Strong Network: Mersen Serving All Players
STRONG NETWORK: MERSEN IS SERVING ALL THE PLAYERS IN THE FIELD REQUIREMENTS REQUIREMENTS REQUIREMENTS DELIVERIES DELIVERIES OEM ENGINE MANUFACTURERS AIRCRAFT MANUFACTURERS 38 Investor Day– December 2, 2016
Slide 39: Mersen's Key Success Factors
MERSEN’S KEY SUCCESS FACTORS INSTALLED BASE HIGH TECHNICAL BROAD EXPERTISE POWERFUL BARRIERS TO ENTRY MANUFACTURING BASE Long term relationship Plant certification Able to comply with new High technical skills with major manufacturers for aeronautics – EN9100 technical challenges: on a regio
Slide 40: Strategy
STRATEGY SUPPORT TECHNOLOGICAL CHALLENGES: “MORE THRUST, LESS WEAR, LIGHTER” LEVERAGE TECHNOLOGICAL DEVELOPMENT IN AERONAUTICS FOR OTHER MERSEN’S MARKETS DEVELOP OUR CUSTOMER PORTFOLIO WITH THE “ALL ELECTRIC” AIRCRAFTS (POWER ELECTRONICS) STRENGTHEN OUR CUSTOMER’S RELATIONSHIP AND QUALIFY FOR TH
Slide 41: Mersen Potential in Aeronautics
MERSEN POTENTIAL IN AERONAUTICS CAGR 2015-2020 [4-10]% €50-65 M €40 M AFTER MARKET OEM 2015 2020 41 Investor Day– December 2, 2016
Slide 42: What Next?
WHAT NEXT? 42 Investor Day– December 2, 2016
Slide 43: Innovate at Mersen
INNOVATE AT MERSEN CHRISTOPHE BOMMIER SVP, TECHNOLOGY, RESEARCH, INNOVATION & BUSINESS SUPPORT
Slide 44: Centers of Expertise Close to the Customers
CENTERS OF EXPERTISE CLOSE TO THE CUSTOMERS 200 EXPERTS 3% OF EMPLOYEES LOCAL TEAMS ROLE BEYOND ADAPTED TO THE NEEDS R&D PROJECTS AND THE CULTURE OF THEIR GEOGRAPHICAL AREA 44 Investor Day– December 2, 2016
Slide 45: A Corporate Position to Improve Efficiency
A CORPORATE POSITION TO IMPROVE EFFICIENCY BUILD BRIDGES ANTICIPATE MARKET BETWEEN DEMANDS THE DIFFERENT BUSINESS UNITS CREATE DIFFERENTIATION VIA OPTIMIZE RESOURCES CUTTING-EDGE ALLOCATION € TECHNOLOGIES OBJECTIVE: BRING QUICKER THE NEW PRODUCTS TO MARKET 45 Investor Day– December 2, 2016
Slide 46: Shared Methods
SHARED METHODS TYPES OF INNOVATION PROJECTS Disruptive Create new markets Innovation Breakthrough Innovation focused on bringing one new product H3 on the market or on entering Enter adjacent a new market for Mersen. market / customers Techno H2 Adjacent innovation “Technological projects” refer to
Slide 47: A Project Portfolio Balanced Between Medium- and Long Term
A PROJECT PORTFOLIO BALANCED BETWEEN MEDIUM- AND LONG TERM Drones Energy Laser optics (composites, storage (3D printing, New markets power (control, remote welding) Communication electronics) protection) (laser satellite) Lightened components for transportation industry (weight, lifetime) 5-10 Conti
Slide 48: Differentiation Success Stories
DIFFERENTIATION SUCCESS STORIES: POTENTIAL SALES UP TO € 100 M BY 2020 EXAMPLES CONTINUOUS FLOW REACTORS LARGE SIZE CARRIER FOR ALD REACTOR INTRODUCED IN 2011 FIRST PRODUCTS SOLD IN 2015 48 Investor Day– December 2, 2016
Slide 49: 2020 Potential Revenue Achieved Through Innovation
2020 POTENTIAL REVENUE ACHIEVED THROUGH INNOVATION 6% OF ANNUAL REVENUE ACHIEVED THROUGH CORE INNOVATION GENERATING LITTLE ADDITIONAL SALES 3-5% OF REVENUE ACHIEVED THROUGH * ADJACENT INNOVATION WHICH WILL GENERATE NEW SALES 2020 HORIZON 3-8%* TARGET POTENTIAL REVENUE ACHIEVED THROUGH DISRUPTIVE INN
Slide 50: Innovations for the Transportation Market
INNOVATIONS FOR THE TRANSPORTATION MARKET HYBRID SWITCH STATIC PASSIVE CURRENT COMPONENTS COLLECTOR ■ ELECTRIC ■ WIRELESS VEHICLES ■ METRO TRAIN TRAM Disruptive Innovations 50 Investor Day– December 2, 2016
Slide 51: San Francisco Bay Area Rapid Transit
SAN FRANCISCO BAY AREA RAPID TRANSIT MERSEN AT THE CORE OF A FLEET RENEWAL PROGRAM CHRISTOPHE BOMMIER
Slide 52: BART Situation
BART SITUATION HVAC Misc.2% R I D E R S H I P H I S T O R Y AN D 17% PROJECTION 1200 1000 Lighting 1% 800 600 Energy savings 400 Propulsion 200 80% 0 1960 1980 2000 2020 2040 2060 NEEDS TO ADD CAPACITY TO HIGH POTENTIAL ENERGY 40-YEARS OLD, EXTENDED, THE CURRENT BART SAVINGS WITH NEW BRAKING RENOVAT
Slide 53: BART New Train Car Project 2009–2021
2009–2021: BART“ NEW TRAIN CAR PROJECT ” Addition of the 3 final tenders under Bombardier and BART postpone “Buy in America” clause examination first introduction to MAY 2017 Contract is awarded 4 months Complete Initial proposals after Best and Final Offer acceptance from train car receipt date, de
Slide 54: Bombardier Demand to Mersen: Cooling System
BOMBARDIER DEMAND TO MERSEN: A COOLING SYSTEM FOR THE POWER MODULES OBJECTIVE Cooling of an Inverter with Dynamic Brake + 25% thermal performance over last Mersen’s design (NY Transit) REQUIREMENT Compliance to “Buy in America” Act MERSEN’S SOLUTION: Mersen Cold Wall Assembly Relying on M
Slide 55: The Mersen Network in Action
THE MERSEN NETWORK IN ACTION 2- TORONTO (CANADA) HYBRID DESIGN TESTED IN 2013 1- EARLY PROPOSAL MEET THE REQUIREMENTS, LA MURE (FRANCE) BUT NOT SAFETY MARGIN TESTED BY BOMBARDIER IN ZURICH (SWITZERLAND) IN 2012 LOW COST BUT UNDER SPEC 3- COLLABORATIVE EFFORT BETWEEN TORONTO AND LA MURE TESTED IN 201
Slide 56: The Rest Followed
THE “REST” FOLLOWED A MULTI-YEAR CONTRACT TO SUPPLY COOLING DEVICES AND LAMINATED BUSBARS: 765 SYSTEMS TO BE DELIVERED BETWEEN 2016 AND 2021 FOR $8.5 MILLION Toronto – June 2016 PRIMARY SUPPLIER CONTRACT AWARDED TO MERSEN IN JULY 2016 FIRST “BUY IN AMERICA” RELEASE IN SEPTEMBER 2016 Rochester – S
Slide 57: What Next?
WHAT NEXT? BART: POSSIBLE SECOND PHASE FOR + 250 CARS RAIL URBAN PROJECTS: +4% CAGR* Existing pipe-line of “metro” projects, most of them requiring a custom made solution * UNIFE 2017-19 Accessible Market Outlook 57 Investor Day– December 2, 2016
Slide 58: Wireless Tram
WIRELESS TRAM MERSEN’S CONTRIBUTION TO A NEW CONCEPT CHRISTOPHE BOMMIER
Slide 59: 3 Power Supply Technologies for Tramways
3 POWER SUPPLY TECHNOLOGIES FOR TRAMWAYS CATENARY Current collection by pantograph strips. GROUND-LEVEL POWER SUPPLY (APS) Power supplied by third rail at the ground level. WIRELESS TECHNOLOGY (SRS) Fast charging of supercapacitors at each tram stop. 59 Investor Day– December 2, 2016
Slide 60: Why Wireless Energy Transmission and Costs
WHY A WIRELESS ENERGY TRANSMISSION, & HOW TO MAKE IT MORE COMPETITIVE? The WHYS Lyon 1956. Catenary (Esthetic? Amsterdam suburb 2015. How to raise a firefighter ladder?) Aerial 3rd rail (Closed space) The COSTS Bordeaux 2003. APS* Nice 2017-2018: SRS** (buried segmented third rail) * Ground-level po
Slide 61: SRS, The Principle
SRS, THE PRINCIPLE 61 Investor Day– December 2, 2016
Slide 62: Wireless Tram
WIRELESS TRAM 1┃Arrival to station 3┃Static current 5┃The source is deactivated. collectors are lowered Static current collectors are raised. Departure is imminent 2┃RF Signal from ground 4┃High intensity currents are confirms proper positioning collected and sent to supercapacitors to complement th
Slide 63: Mersen's Contribution to SRS Technology
MERSEN’S CONTRIBUTION TO SRS TECHNOLOGY: THE CURRENT COLLECTOR SYSTEM The articulated current collector (raised position) 63 Investor Day– December 2, 2016
Slide 64: SRS Challenges
SRS CHALLENGES HIGH POWER FLOW (0.8 MWATT) DURING CHARGING EVENT LIMITED SPACE AVAILABLE VARIABLE HEIGHT OVER GROUND WHILE CHARGING ENSURE A FAST KINETIC (2 SEC. MAX FOR CONNECTION) SAFETY AND RELIABILITY OVER YEARS OF SERVICE 64 Investor Day– December 2, 2016
Slide 65: The Challenge for Mersen
THE CHALLENGE FOR MERSEN EXTEND PORTFOLIO FROM SHORT LEAD TIME RUNNING CONTACT TO OUR SOLUTIONS STATIC CONTACT 18 months between Running contact: Leverage our existing agreed upon technical know-how specifications and 30+ years expertise first deliveries in pantograph strip, Collaboration wi
Slide 66: Tram: A Dynamic Market
TRAM: A DYNAMIC MARKET, WITH A GROWING PORTION OF APS OR SRS FEEDING SYSTEMS Urban (global market) 2014 SARAGOSSA Rail (global market) 2017 LUXEMBOURG A dynamic 2018 NICE market Driven by the quest of “Interoperable” public Intercity train transportation systems 66 Investor Day– December 2, 2016
Slide 67: What's Next? Electric Buses
WHAT’S NEXT? ELECTRIC BUSES: THE LAST LINK FOR CLEAN AND DENSE INTEROPERABLE SYSTEMS ELECTRIC BUS WITH SRS FEEDING SYSTEM Ground Elec. Charging Rack slots Elec. Rack 67 Investor Day– December 2, 2016
Slide 68: A New Market for Mersen: E-Mobility Safety Challenges
A NEW MARKET FOR MERSEN E-MOBILITY SAFETY CHALLENGES PHILIPPE ROUSSEL Thomas Edison electric car (1913)
Slide 69: E-Mobility – What's Behind?
E-MOBILITY – WHAT’S BEHIND? ELECTRO MOBILITY (E-MOBILITY): GENERAL TERM FOR THE DEVELOPMENT OF ELECTRIC-POWERED DRIVETRAINS DESIGNED TO SHIFT VEHICLE DESIGN AWAY FROM THE USE OF FOSSIL FUELS AND CARBON GAS EMISSIONS IT INVOLVES SEVERAL FAMILIES DEPENDING ON THE LEVEL OF ELECTRIFICATION: BEV (o
Slide 70: EV/HEV: A Booming Market
EV/HEV: A BOOMING MARKET FOR BOTH PASSENGER CARS AND HEAVY-DUTY VEHICLES PASSENGER CARS ANNUAL VOLUMES (UNITS) HEAVY-DUTY VEHICLES ANNUAL VOLUMES (UNITS) 10,000,000 180,000 9,000,000 CAGR 160,000 CAGR 8,000,000 + 25% / yr 140,000 + 18% / yr 7,000,000 120,000 6,000,000 100,000 5,000,000 80,000 4,000,
Slide 71: Main Players
MAIN PLAYERS PASSENGER CARS VEHICLES MAIN PLAYERS BEV 2015 units sold HEV + pHEV 2015 units sold Tesla 49,000 Toyota Prius 631,971 Nissan Leaf 43,000 Toyota Others 308,637 BMW i3 24,300 BYD 40,000 Geely Panda 19,400 Other brands 489,092 Renault Zoe 17,200 Chevrolet Volt 17,000 BYD 12,000 Others 4,00
Slide 72: Toward More Power and More Autonomy
TOWARD MORE POWER AND MORE AUTONOMY EV/HEV NOW TARGETS 1,000 VDC BATTERY PACK VOLTAGE Current (A) 600 Electric Buses & Trucks 400 200 100 EV/HEV 24 250 380 500 750 1,000 1,250 1,500 Voltage (V) 2010 2013 2016 2019 2019 72 Investor Day– December 2, 2016
Slide 73: New Challenge for the Industry: Safety
NEW CHALLENGE FOR THE INDUSTRY: SAFETY 1,000 VDC BATTERY PACK IMPLIES HAVING A DEVICE THAT CAN QUICKLY DISCONNECT THE BATTERY FROM THE REST OF THE CAR TECHNICAL CHALLENGE : Open a DC electric circuit, when loaded, will automatically generate hazardous arc flash By essence, an AC current will
Slide 74: Mersen Ultimate DC Protection Device: XP Series
MERSEN ULTIMATE ELECTRICAL DC PROTECTION DEVICE FOR EV UP TO 1,000 VDC: XP SERIES OUR SOLUTION: A COMBINATION OF FUSE & PYROSWITCH ASSEMBLED TOGETHER IN PARALLEL / SERIES NO ARC-FLASH, ULTRA-LOW POWER LOSS, FEW AGEING: LONG LIFE-TIME, HIGH SELECTIVITY PATENT PENDING SOLUTION ALREADY PROPOSED BY
Slide 75: Our Industrial Partner: Airbus Safran Launchers
OUR INDUSTRIAL PARTNER: AIRBUS SAFRAN LAUNCHERS PYRO-SWITCH JOINTLY DEVELOPED AND SUPPLIED BY AIRBUS SAFRAN LAUNCHERS (ASL) ASL has a long history in pyrotechnics, already supplying millions of air-bag sub- systems for the automotive world: a proven technology! Mersen has signed an exclusive a
Slide 76: Basic Principle and Operation (1/3)
BASIC PRINCIPLE AND OPERATION (1/3) STEP 1 OVERALL TOPOLOGY & NOMINAL OPERATION CONDITIONS The system is based on a pyroswitch in parallel with an undersized rated current fuse Under normal operation, most of the current flows through the pyroswitch due to the fuse high resistance compared to th
Slide 77: Basic Principle and Operation (2/3)
BASIC PRINCIPLE AND OPERATION (2/3) STEP 2 A CURRENT OVERSHOOT IS DETECTED BY THE CURRENT SENSOR A signal is sent to the pyrofuse to operate The pyroswitch breaks under no voltage (being in parallel with the fuse): No arc The default current is transferred to the fuse path FUSE Current sensing
Slide 78: Basic Principle and Operation (3/3)
BASIC PRINCIPLE AND OPERATION (3/3) STEP 3 THE CIRCUIT SAFELY OPENS Due to the large fault current and the undersized fuse, the fuse melts very quickly The current is quickly cleared and the circuit is open and safe FUSE Current sensing electronic Electronics Power Supply 78 Investor Day– Decemb
Slide 79: Mersen Offer in EV/HEV: A Complete Product Portfolio
MERSEN OFFER IN EV/HEV: BEYOND XP, A COMPLETE PRODUCT PORTFOLIO PDU BATTERY PACK x1 or x2 Up to 16x x1 x4 to x12 Up to 16x Monitoring Busbar Laminated Busbar Cooling and Cooling plates and Module fuses BDU / MSD 1x main or Xp fuse: 4 to 6 aux. and/or Xs fuses: Fuses / Hybrid DC protection (Xs, Xp) P
Slide 80: Mersen Offer Tailored to Any EV/HEV Applications
MERSEN OFFER TAILORED TO ANY EV/HEV APPLICATIONS ADDRESSING PERFORMANCE ADDED-VALUES Electric Power > 250kW BEV BEV BEV BEV e-truck Sport e-bus Premium car 200kW luxury car HEV HEV HEV Non-premium Laminated Busbar car BEV HEV Advanced cooling 100kW Hybrid Xp and over-current protection Busbar Improv
Slide 81: Current Customer in the EV/HEV Industry
CURRENT CUSTOMER IN THE EV/HEV INDUSTRY MERSEN FLEX SMART-BUSBAR IN MERCEDES S400 HYBRID 39 cells in series, 4 Thermal sensors, Voltage sensor on each cell by Flex 81 Investor Day– December 2, 2016
Slide 82: Current Customer in the EV/HEV Industry
CURRENT CUSTOMER IN THE EV/HEV INDUSTRY MERSEN COOLING-PLATE FOR SIEMENS ELFA HYBRID-BUS DRIVES Liquid cooling plate for hybrid-bus 50 KW to 180 KW motor inverter 82 Investor Day– December 2, 2016
Slide 83: Mersen Potential in Electric Vehicles
MERSEN POTENTIAL IN ELECTRIC VEHICLES €25 - 50 M Xp €10 M €5 M 2015 2016 2020 2025/2030 83 Investor Day– December 2, 2016
Slide 84: Conclusion
CONCLUSION MARKET AND TECHNOLOGY R&D AND INNOVATION LED EV/HEV IS A MARKET INTELLIGENCE REVEALED TO CREATE A DISRUPTIVE & UNDER CONSTRUCTION A CHALLENGE IN EV/HEV PATENTED TECHNOLOGY: XP 84 Investor Day– December 2, 2016
Slide 85: And Now…
MeRS Expertise, our source of energy
Slide 86: Quiz
QUIZ NAME : ………………………. FIRST NAME : ………………………….. E-MAIL : ……………………. QUESTION 1 : A B C QUESTION 2 : A B C QUESTION 3 : A B C TIEBREAKER QUESTION : ……………………………………. 86 Investor Day– December 2, 2016