Slide 1: The path to a new dimension
MeRSEN Expertise, our source of energy The path to a new dimension
Slide 2: A global player at the heart of technologies driving the industry forward
A GLOBAL PLAYER AT THE HEART OF TECHNOLOGIES WHO DRIVES THE INDUSTRY FORWARD AND SHAPES A MORE SUSTAINABLE SOCIETY KEY FIGURES (2022) POSITIONED ON MARKETS SHAPING A MORE SUSTAINABLE SOCIIETY Sales €1,115m 56% of 2022 SALES dedicated to sustainable development markets (Energy efficiency, renewable e
Slide 3: Worldwide leader on 2 expertises with c.15-30% market share
WORLDWIDE LEADER ON 2 EXPERTISES WITH C.15-30% MARKET SHARE ADVANCED MATERIALS ELECTRICAL POWER 56% of sales* 44% of sales* HIGH VALUE-ADDED CUSTOMIZED SOLUTIONS A UNIQUE PORTFOLIO serving two key (graphite) applications: electrical protection (fuses) and power conversion — N°1-2 worldwide — N°2 wor
Slide 4: A global footprint to maximize customer intimacy and limit intercontinental transfers
A GLOBAL FOOTPRINT TO MAXIMIZE CUSTOMER INTIMACY AND LIMIT INTERCONTINENTAL TRANSFERS Europe North 32% America 38% 36% Asia Share of sales 32% -Pacific 29% Number of employees 23% Rest of the world 2022 figures 3% 7% 4 Mersen - January 2024
Slide 5: Market trends and opportunities for Mersen
MARKET TRENDS AND OPPORTUNITIES FOR MERSEN SUPPORT CONTRIBUTE CONTRIBUTE ENHANCE the development of to power conversion to the development electric vehicle renewable energies & transmission and of electric vehicles optimization with silicon distribution of carbide semiconductors renewable energies 5
Slide 6: Dynamic markets that will sustain future growth
DYNAMIC MARKETS THAT WILL SUSTAIN FUTURE GROWTH CORROSIVE CHEMICALS ENERGIES Solar - Wind - Hydro PROCESS INDUSTRIES 1 115 M€ en 2022 ELECTRONICS SiC Semicon Si Semicon TRANSPORTATION Rail - Aeronautics EV Dynamic markets that will sustain future growth 6 Mersen - January 2024
Slide 7: 2027: A new dimension for Mersen
2027: A NEW DIMENSION FOR MERSEN Sales in €m ~€1,700m By 2027 Renewable Energies Approx. CURRENT OPERATING Si semiconductors CAGR MARGIN SiC semiconductors 45% 2022-2027 €1,115m EV 12% +- 50 pts > 20% 27% CURRENT EBITDA MARGIN CAGR 19% +- 50 pts +3% ROCE 13% +- 50 pts 2022 2027 7 Mersen - January 20
Slide 8: An investment plan to support this strong growth
AN INVESTMENT PLAN TO SUPPORT THIS STRONG GROWTH ISOSTATIC Capacity increased GRAPHITE from 12,000t to 16,000t (USA) SiC semicon Capacity increased CAPEX INSULATION FELT by more than 2 times (USA, UK) +€300m* €400m c. mainly in 2023/2024 in sales in 2027 Significant expansion Return to standard MATE
Slide 9: Maintain financial flexibility thanks to the capital increase completed in May 2023
MAINTAIN FINANCIAL FLEXIBILITY THANKS TO THE CAPITAL INCREASE COMPLETED IN MAY 2023 Implement the new … while maintaining Associate all 2027 roadmap… financial & strategic shareholders flexibility to this new dimension Capital increase with preferential subscription rights for existing shareholders
Slide 10: Mersen is ideally positioned to capture growth in the EV market
M E R S E N I S I D E A L LY P O S I T I O N E D TO C A P T U R E G R O W T H I N T H E E V M A R K E T, B O T H U P S T R E A M A N D D O W N S T R E A M MATERIAL EXPERTISE ELECTRICAL EXPERTISE SiC power semiconductors SiC wafer Electric vehicles 10 Mersen - January 2024
Slide 11: A major contract with Wolfspeed to accelerate the energy transition
A MAJOR CONTRACT WITH WOLFSPEED TO ACCELERATE THE ENERGY TRANSITION Sales potential over 5 years USD400m Capital expenditure (2023-2025) Leader in SiC Major investments in Agreements with EV USD120m technologies, a progress (USA, players: BorgWarner, longstanding partner Germany) ZF, Mercedes Benz,
Slide 12: Mersen's unique position in the complex manufacturing process for SiC - PVT process
MERSEN’S UNIQUE POSITION IN THE COMPLEX MANUFACTURING PROCESS FOR SIC – PVT PROCESS SiC Sublimation Power process semiconductor INSULATION FELT ISOSTATIC GRAPHITE (flexible or rigid) (crucibles, guides, etc.) 12 Mersen - January 2024
Slide 13: Soitec SmartSiC: another technology serving the SiC power semiconductor market
SOITEC SMARTSICTM: ANOTHER TECHNOLOGY SERVING THE SIC POWER SEMICONDUCTOR MARKET High-quality monocrystalline SiC layer - few µ Polycrystalline SiC (p-SiC) - 400 µ SOITEC SMARTSICTM ON P-SIC 13 Mersen - January 2024
Slide 14: Mersen's electric vehicle offering
MERSEN’S ELECTRIC VEHICLE OFFERING Mersen sales potential per EV €15-300 BUSBARS FUSES 2 PRODUCT LINES 14 Mersen - January 2024
Slide 15: ACC contract: first major contract with a battery manufacturer
A C C C O N T R A C T: F I R S T M A J O R C O N T R A C T W I T H A B AT T E RY M A N U FA C T U R E R Sales potential over 7 years €200m Investments for a dedicated workshop in St Bonnet (France) 2023-2024 Location of the future Gigafactory in Douvrain (France) Smart laminated busbars for ACC modu
Slide 16: 2023 9 months sales: strong growth in SiC semiconductors and EV
2023-9 MONTHS SALES: STRONG GROWTH IN SIC SEMICONDUCTORS AND EV CHEMICALS = 9% ÉNERGIES Solar + 21% Wind + PROCESS INDUSTRIES 910 M€ ++ 33% +15%* 22% ÉLECTRONIQUE SiC Semiconductors +++++ Si Semiconductors ++ TRANSPORTATION 13% Rail ++ * Organic growth Aeronautics ++ 9m 2023 vs 9m 2022 EV +++ +++ >+
Slide 17: H1 2023: strong pricing power to pass on inflation
H 1 2 0 2 3 : S T R O N G P R I C I N G P O W E R TO PA S S O N I N F L AT I O N Basis point H1 2022 operating margin before non-recurring items 10.5% Volume/mix effect +2.6 Price effect +4.0 High-tech customized products with limited cost vs total cost Raw material/energy inflation -3.5 0 Productiv
Slide 18: H1 2023: capital increase improves leverage ratio
H1 2023: CAPITAL INCREASE IMPROVE LEVERAGE RATIO Net debt in €m Leverage : 0.98x (1.36x end of 2022) Does not include lease liabilities €54m (vs. €55m at Dec. 31, 2022) and pension obligations €40m (vs. €39m at Dec. 31, 2022) et paiements locatifs 18 Mersen - January 2024
Slide 19: No significant refinancing before 2026
NO SIGNIFICANT REFINANCING BEFORE 2026 4 115 Drawn credit lines (€m) (IN €M) AT JUNE 30, 2023 ~€320m 55 ~€50m 30 Available cash 4 20 4 15 Average maturity 4 4 10 ~ 4.5 years * 2023 2024 2025 2026 2027 2028 2029 2030 2031 * Calculated based on the use of committed credit lines. USPP Schuldschein NEU
Slide 20: 2023 guidance raised throughout the year
2023 GUIDANCE RAISED THROUGHOUT THE YEAR SALES OPERATING MARGIN BEFORE NON CAPEX RECURRING ITEMS Between Between Organic growth of between 11% and 11.2% €175m and €200m 11% and 12% of sales 20 Mersen - January 2024
Slide 21: Appendix
APPENDIX 21 Mersen - January 2024
Slide 22: Advanced Materials: competitors
Advanced Materials: High value-added customized s o l u t i o n s r e l yi n g o n a u n i q u e m a t e r i a l s e x p e r t i s e Anticorrosion Equipment Graphite Specialties Power Transfer Technologies N° 1-2 Worldwide N° 1 Worldwide N° 1-2 Worldwide Laser galvo scanning mirrors in Sintered SiC
Slide 23: Iso-graphite manufacturing process: high barriers to entry
Iso-graphite manufacturing process: high barriers to entry Isostatic Graphite capacity plants Raw material Mixing compression Baking Graphitization (natural graphite, cokes, > 150 MPa ≃ 1,000°C ≃ 2,800°C coal tar pitch, recycled graphite) Recycling of graphite waste Finishing plants Fine Graphite pa
Slide 24: Electrical Power: a unique portfolio serving two key applications
Electrical Power: A unique portfolio serving two key applications Electrical Protection N° 2 Worldwide in industrial fuses Coverage of all standards worldwide: UL, IEC, DIN, etc. Competitors: Eaton(US), Littelfuse (US) Fuses and fuse holders Surge protection devices Power Conversion N° 2 Worldwide (
Slide 25: 4-pillar CSR strategy 2022-2025
4-pillar CSR strategy 2022-2025 25 Mersen - January 2024
Slide 26: Targeting markets acting for a more sustainable society
TARGETING MARKETS ACTING FOR A MORE SUSTAINABLE SOCIETY 56% of total 2022 sales dedicated to sustainable development markets (Energy efficiency, renewable energies, semiconductors, power electronics, green transportation) EU Green taxonomy - Sales EU Green taxonomy - Capex Eligible 29% Eligible 27%
Slide 27: Shareholder's structure as of June 2023
SHAREHOLDER’S STRUCTURE AS OF JUNE 2023 Individuals BPI 11% & treasury shares 16% Other French institutional investors 35% Other institutional investors 38% 27 Mersen - January 2024