Slide 1: Global Expert in Electrical Power and Advanced Materials
Global Expert in Electrical Power and Advanced Materials J A N U A R Y, 2 0 2 3
Slide 2: A global player at the heart of technologies
A GLOBAL PLAYER AT THE HEART OF TECHNOLOGIES WHO DRIVES THE INDUSTRY FORWARD AND SHAPES A MORE SUSTAINABLE SOCIETY SALES KEY FIGURES 2021 €923m EBITDA R&D CENTERS 16.1% OF SALES 18 E M P L OY E E S COUNTRIES 7,000 35 2 Mersen – Forum Oddo 2023
Slide 3: A global footprint to maximize customer intimacy
A GLOBAL FOOTPRINT TO MAXIMIZE CUSTOMER INTIMACY, LIMIT INTER- CONTINENTAL TRANSFERS AND EXCHANGE RATE EXPOSURE Europe 34.5% 21 sites Present in all large industrial countries with dedicated plant per business unit N. America 32.5% Asia-Pacific Multi-activities plants in other countries (20% of tota
Slide 4: Advanced Materials: high value-added customized solutions
ADVANCED MATERIALS: HIGH VALUE-ADDED CUSTOMIZED SOLUTIONS RELYING ON A UNIQUE MATERIALS EXPERTISE GRAPHITE # 1 POWER TRANSFER # 1-2 ANTICORROSION # 1-2 SPECIALITIES WORLDWIDE WORLDWIDE EQUIPMENT TECHNOLOGIES WORLDWIDE Brushes and brush holders Pantograph strips Engineering Heat exchangers systems El
Slide 5: Electrical Power: a unique portfolio serving two key applications
ELECTRICAL POWER: A UNIQUE PORTFOLIO SERVING TWO KEY APPLICATIONS ELECTRICAL PROTECTION WORLDWIDE # 2 IN INDUSTRIAL FUSES POWER # 2 COMPONENTS CONVERSION WORLDWIDE Coverage of all standards worldwide: UL, IEC, DIN, etc. Fuses for EV Fuses for semiconductors Busbars Capacitors Cooling devices Fuses S
Slide 6: A business model with strong pricing power and ability to mitigate inflation
A BUSINESS MODEL WITH STRONG PRICING POWER AND ABILITY TO MITIGATE INFLATION In percentage points H1 2021 operating margin before non-recurring items 9.6% Volume/mix effect +2.9 On-demand products Customer intimacy Price effect +2.9 High-tech products with limited cost compared to total cost Raw mat
Slide 7: Production sites with different manufacturing processes
PRODUCTION SITES WITH DIFFERENT MANUFACTURING PROCESSES REQUIRING DIFFERENT LEVEL OF ENERGY North America - 247 GWh EMEA – 127 GWH 40% electricity 60% electricity 60% gas 40% gas 2021 Energy consumption 475 GWh with 4 sites representing 62% of total N. America energy consumption Asia-Pacific - 101GW
Slide 8: 7000 people across the world with the same values
7000 PEOPLE ACROSS THE WORLD WITH THE SAME VALUES North America Europe 2,150p 2,660p 2021 6,970 persons 24% women engineers and managers Asia N. America 1,640p Wages: ~€ 300m Estimated inflation in 2022 ~6% South America 180p Africa 2021 figures 340p 91% of employees proud to be part of the Group 8
Slide 9: Dynamic Markets
Dynamic Markets 9 Mersen – Forum Oddo 2023
Slide 10: 6 consecutive quarters of strong growth
6 CONSECUTIVE QUARTERS OF STRONG GROWTH Reported sales % organic growth 350 25 297 300 269 19,2 255 20 231 233 239 250 220 14,5 15 200 12,1 10,7 150 9,5 10 10 100 5 50 0 0 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 10 Mersen – Forum Oddo 2023
Slide 11: Record sales in the first 9-month 2022: sharp growth in all geographies
RECORD SALES IN THE FIRST 9-MONTH 2022: SHARP GROWTH IN ALL GEOGRAPHIES, MAINLY VOLUME €821m +14% organic +3.5% price +10.5% volume €265m 1 2 Europe €289m 3 1 +11% vs. 9-m 2021 €239m North America 2 +18% vs. 9-m 2021 3 Asia-Pacific 4 +11% vs. 9-m 2021 €29m South America – 4 Africa +16% vs. 9-m 2021
Slide 12: Dynamic momentum across all markets, in particular renewable energies and semiconductors
DYNAMIC MOMENTUM ACROSS ALL MARKETS, IN PARTICULAR RENEWABLE ENERGIES AND SEMICONDUCTORS + Solar +++ CHEMICALS 10% ENERGIES Wind ++ 22% ++ PROCESS €821m INDUSTRIES 33% ELECTRONICS Semiconductors SiC + 21% Semiconductors Si ++ TRANSPORTATION 13% Rail + Aeronautics ++ + 12 Mersen – Forum Oddo 2023 EV
Slide 13: Growth market potential confirmed
GROWTH MARKET POTENTIAL CONFIRMED Sales growth Outlook 9-months 2022 Q4 2022 - 2023 SOLAR ++++ Limited graphite volume allocation for the ++ POWER solar industry Significant medium-term potential for SI SEMICONDUCTOR +++ ++ MANUFACTURING Mersen. Increase capacity in South Korea SIC SEMICONDUCTOR ++
Slide 14: Solar: a major supplier across the value chain
SOLAR: A MAJOR SUPPLIER ACROSS THE VALUE CHAIN Electricity generation PROCESS STAGE Silicon ingot Cell Electrical panel Storage Power manufacturing manufacturing protection conversion (PECVD) MERSEN EXPERTISE 2021 SALES CUSTOMERS €71m 2025 EST. SALES €100m 14 Mersen – Forum Oddo 2023
Slide 15: Essential materials expertise in the Si semiconductor manufacturing process
ESSENTIAL MATERIALS EXPERTISE IN THE SI SEMICONDUCTOR MANUFACTURING PROCESS PROCESS STAGE Ingot pulling Wafer epitaxy Deposition Photolithography Etching Ion & wafer cutting implantation MERSEN EXPERTISE 2021 SALES CUSTOMERS €47m 2025 EST. SALES €60m 15 Mersen – Forum Oddo 2023
Slide 16: Unique position in the sophisticated and intricate SiC manufacturing process
UNIQUE POSITION IN THE SOPHISTICATED AND INTRICATE SIC MANUFACTURING PROCESS Monocrystalline Wafer Ion Power SiC ingot epitaxy implantation semiconductors SiC wafer PVT 2,400°C +/- 1°C PROCESS MERSEN EXPERTISE SiC powder 2021 SALES CUSTOMERS €36m 2025 EST. SALES €80m 16 Mersen – Forum Oddo 2023
Slide 17: Soitec partnership: developing a new range of substrates for the EV market
SOITEC PARTNERSHIP: DEVELOPING A NEW RANGE OF SUBSTRATES FOR THE EV MARKET 2021 SALES €0m 2025 EST. SALES SiC ingot Monocrystalline SiC wafer P-SiC wafer €30m Monocrystalline SiC Monocrystalline SiC Polycrystalline Ultra prime SiC (p-SiC) PVT process SiC power Soitec SmartSiCTM semiconductor process
Slide 18: Mersen's offering for EV/HEV applications
MERSEN’S OFFERING FOR EV/HEV APPLICATIONS Inverter Bus bars 2021 SALES Electrical circuit MERSEN EXPERTISE protection Battery Courtesy: Exagon €16m Courtesy: Würth Electronic 2025 EST. SALES €40-70m 18 Mersen – Forum Oddo 2023
Slide 19: The means to grow
THE MEANS TO GROW A powerful A strengthened industrial tool team 3 sites IATF-qualified or in progress - fuses 50 people (Shanghai, Juarez, Kaposvar) (in the 3 regions) at end-2021 1 site IATF-qualified - bus bars (Angers) 80 people by end-2022 €10-€1,000 per vehicle A dedicated Industry Leading pro
Slide 20: A diversified accessible market for Mersen
A DIVERSIFIED ACCESSIBLE MARKET FOR MERSEN Car Tier-1 Battery module New entrants manufacturers suppliers manufacturers 20 Mersen – Forum Oddo 2023
Slide 21: Outlook
Outlook 21 Mersen – Forum Oddo 2023
Slide 22: 2022 targets raised for the 2nd time
2022 TARGETS RAISED FOR THE 2ND TIME, BASED ON EXCELLENT PERFORMANCE FOR THE FIRST 9-MONTHS OPERATING MARGIN BEFORE NON- CAPITAL EBITDA SALES RECURRING ITEMS EXPENDITURE MARGIN Organic growth of between Around Around Growth of MARCH 3% and 6% 10% €80m-€85m 20-30 bps Organic growth of between Around
Slide 23: Increased level of financing and improved financing maturity
INCREASED LEVEL OF FINANCING AND IMPROVED FINANCING MATURITY WITH THE NEW SYNDICATED LOAN NEW SYNDICATED LOAN (€M) OCTOBER 31, 2022 €320m vs €200m before 115 Same covenants Maturity: 2027 ESG criteria on GHG emissions, safety and diversity Maturity* c. 5.5 years 60 30 20 5 15 10 10 2022 2023 2024 20
Slide 24: Ambitious medium-term plan announced in March 2022
AMBITIOUS MEDIUM-TERM PLAN ANNOUNCED IN MARCH 2022 SALES €1,200m OPERATING MARGIN BEFORE NON-RECURRING ITEMS ≥ 11% EV SiC semicon CAGR €923m Si semicon +18% Solar EBITDA MARGIN ≥ 17.5% EV SiC semicon To be revisited Si semicon Solar in Q1 2023 CAGR +4% incl. Aeronautics ROCE and Rail ≥ 12% 2021 2025
Slide 25: Committed to sustainability: 2022-2025 road-map
COMMITED TO SUSTAINABILITY: 2022-2025 ROAD-MAP 25 Mersen – Forum Oddo 2023
Slide 26: A longstanding CSR strategy
A LONGSTANDING CSR STRATEGY BEFORE 2010 2010 (GRENELLE 2) 2018 (DPEF) 2021 2022-2025 Focus on H&S Set-up of a global CSR Improved Group’s GHG 2022-2025 road- and Human reporting governance emission map and mid- Capital intensity term targets Formalization of CSR Materiality matrix reduction longstan
Slide 27: Key takeaways
KEY TAKEAWAYS Strong growth drivers for the semiconductors industry despite temporary slowdown EV very active in terms of nomination - production will start beginning of 2024 Solar sales very high Still high level of orders Price increase passed on to customer so far Energy costs in Euro