Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (November 2018)
25 slides from Mersen Sa's investor day presentation, Nov 29, 2018
Slide 1: Mersen's Contribution to Solar Photovoltaic Energy
MERSEN’S CONTRIBUTION TO SOLAR PHOTOVOLTAIC ENERGY CAPITAL MARKETS DAY NOVEMBER 29, 2018
Slide 2: Mersen in the Upstream Phase of the Solar Photovoltaics Value Chain
PHILIPPE CHEMIN VP SALES & MARKETING, GRAPHITE SPECIALTIES BUSINESS UNIT MERSEN IN THE UPSTREAM PHASE OF THE SOLAR PHOTOVOLTAICS VALUE CHAIN
Slide 3: Solar: An Energy Source Seeing Strong Growth
SOLAR: AN ENERGY SOURCE SEEING STRONG GROWTH NUMBER OF PANEL INSTALLATIONS GROWING SHARPLY EACH YEAR CONSISTENTLY OUTPACING FORECASTS 2018-2022 CAGR est Annual (GW) 140 +5-7% 2018 Forecasts 120 2011-2017 CAGR 100 +23% 80 60 40 2016 Forecasts 20 2012 Forecasts 0 2011 2012 2013 2014 2015 2016 2017 201
Slide 4: Solar: A Competitive Cost
SOLAR: A COMPETITIVE COST DECREASE IN COST THE LOWEST* ENERGY OF SOLAR CELLS PRODUCTION COST US$/MWh US$ 101.00 Price of solar cells in US$ per watt 300 250 120 200 150 Nuclear 100 Coal 100 Gas turbines 2,5 50 2 -80% 0 2010 2011 2012 2013 2014 2015 2016 2017 PV solar farms 80 1,5 1 60 0,5 0 -20% 3x
Slide 5: Solar: A Strong Potential Thanks to Its Easy Installation
SOLAR: A STRONG POTENTIAL THANKS TO ITS EASY INSTALLATION MAIN COUNTRIES WITH UPCOMING SOLAR PANEL INSTALLATION PROGRAMS SPAIN UK FRANCE NETHERLANDS GERMANY ITALY CHINA SOUTH KOREA UNITED JAPAN STATES TAIWAN MEXICO THAILAND BRAZIL AUSTRALIA TURKEY EGYPT SAUDI ARABIA PAKISTAN INDIA Source: Global Mar
Slide 6: Mersen at the Heart of Solar Photovoltaics
MERSEN AT THE HEART OF SOLAR PHOTOVOLTAICS 21 CMD Mersen – November 2018
Slide 7: The World's No. 1 Supplier for the Polysilicon Industry
MERSEN, THE WORLD’S NO. 1 SUPPLIER FOR THE POLYSILICON INDUSTRY SOLUTIONS A ROBUST GLOBAL THAT ENHANCE OUR WIDE-RANGING EXPERTISE NETWORK CUSTOMERS’ PERFORMANCE Longstanding supplier Joint development programs to help Synthesis units, for all leading global companies polysilicon makers stay competit
Slide 8: Ingot Manufacturing: Major Existing Technologies
INGOT MANUFACTURING: 2 MAJOR EXISTING TECHNOLOGIES DSS MULTICRYSTALLINE DSS and CZ production GW/year Larger block 140 Silicon consumption: 4-5 g/watt 120 Cell efficiency: 18%-19% 100 Historically lower production cost 80 CZ MONOCRYSTALLINE 60 40 20 0 Uses less energy: -20% 2014 2015 2016 2017 2018
Slide 9: Mersen Has the Advantage Thanks to the Emergence of CZ Technology
MERSEN HAS THE ADVANTAGE THANKS TO THE EMERGENCE OF CZ TECHNOLOGY VS. DSS... Required graphite/GW: 30 tons DSS Less sophisticated graphite MULTICRYSTALLINE More competitive market Required graphite/GW: 120 tons Large parts customized grades, extremely CZ fine-grained graphite, high-level of expert
Slide 10: ...And Thanks to Its Strong Presence in Asia
...AND THANKS TO ITS STRONG PRESENCE IN ASIA MERSEN’S FOOTPRINT IN ASIA TO SERVE THIS MARKET 85% YANTAI KUNSHAN Machining Purification of cell producers are CHINESE companies CHONGQING Graphite blocks Others: primarily Japan, Taiwan and SOUTH KOREA Machining South Korea Exawatt estimate for 2017 25
Slide 11: A New, More Comprehensive Range of CZ Ingot Production Solutions
A NEW, MORE COMPREHENSIVE RANGE OF CZ INGOT PRODUCTION SOLUTIONS TO COME THANKS TO THE MERSEN GALAXY JV Furnace internal parts in graphite (150 total), ENHANCED including: OFFER Graphite resistance Flexible felt insulation solutions COMPLEMENTARY OFFER Crucible support in C/C composite 26 CMD Mersen
Slide 12: Mersen Galaxy JV: For a Comprehensive CZ Offer
MERSEN GALAXY JV: FOR A COMPREHENSIVE CZ OFFER JV (60% OWNED BY MERSEN) COVERS THE MANUFACTURING AND SALE OF CARBON/CARBON COMPOSITES AND FLEXIBLE FELT INSULATION SOLUTIONS FOR THE CZ PV MARKET IN CHINA MERSEN’S LONG-STANDING PARTNER IN ISOSTATIC GRAPHITE (YANTAI JV) MERSEN’S CONTRIBUTION: CNY60
Slide 13: Production Capacities Meeting Market Demand
PRODUCTION CAPACITIES MEETING MARKET DEMAND ADJUSTING GRAPHITE PRODUCTION CAPACITIES IN LINE WITH CURRENT DEMAND Production capacities/utilization rate in % 100% 95% 2018: Resuming of furnace production in Chongqing 75% 85% 6,000 t 2018 Average: 10,500 t Chongqing, China Nominal capacities avai
Slide 14: Mersen in the Downstream Phase of the Solar Photovoltaics Value Chain
LAURENT MARCENAC VP GLOBAL SALES, ELECTRICAL POWER SEGMENT MERSEN IN THE DOWNSTREAM PHASE OF THE SOLAR PHOTOVOLTAICS VALUE CHAIN
Slide 15: Mersen: The Capability to Be Active in Several Markets
MERSEN: THE CAPABILITY TO BE ACTIVE IN SEVERAL MARKETS AVERAGE SOLAR FARM SALES €1m-€2m/GW ENERGY STORAGE INVERTERS SOLAR PANEL PROTECTION 30 CMD Mersen – November 2018
Slide 16: Solar: A Strong Potential Thanks to Its Easy Installation
SOLAR: A STRONG POTENTIAL THANKS TO ITS EASY INSTALLATION MAIN COUNTRIES WITH UPCOMING SOLAR PANEL INSTALLATION PROGRAMS SPAIN UK FRANCE NETHERLANDS GERMANY ITALY CHINA SOUTH KOREA UNITED JAPAN STATES TAIWAN MEXICO THAILAND BRAZIL AUSTRALIA TURKEY EGYPT SAUDI ARABIA PAKISTAN INDIA Source: Global Mar
Slide 17: Electrical Protection of Solar Panels: A Local Market
ELECTRICAL PROTECTION OF SOLAR PANELS: A LOCAL MARKET THAT IS WELL SUITED TO MERSEN’S GLOBAL OPERATIONS Key Mersen EP segment operations 32 CMD Mersen – November 2018
Slide 18: Mersen's Strengths in Solar Panel Protection
MERSEN’S STRENGTHS IN SOLAR PANEL PROTECTION A COMPREHENSIVE RANGE GLOBAL OPERATIONS UNIQUE TESTING CAPACITIES Recognized expertise in high voltage (1500V DC) Allow Mersen to efficiently serve 3 test sites: St Bonnet (France), the panel builder market Terrassa (Spain), Newburyport (United HelioProte
Slide 19: Power Conversion: A Segmented Market
POWER CONVERSION: A SEGMENTED MARKET HIGH VOLTAGE MEDIUM VOLTAGE A market associated with solar farms A market associated with rooftop solar panels Significant technical constraints Less powerful converters increasingly associated with energy storage systems CAGR 2018-2022* 4-6% * Sources: Yole, Mer
Slide 20: Mersen's Strengths in Power Conversion
MERSEN’S STRENGTHS IN POWER CONVERSION LONG-STANDING RELATIONSHIPS A SOLID GLOBAL OPERATIONS BASE A UNIQUE INTEGRATED OFFER WITH MAJOR WESTERN OEMs Busbars/High-speed fuses for Allows Mersen to keep up with A sales structure dedicated to semiconductor the design and production key accounts, includin
Slide 21: Breakdown of Mersen Solar Sales
BREAKDOWN OF MERSEN SOLAR SALES PROTECTION 18% CONVERSION 11% POLYSILICON 24% €45m INGOTS 47% 2017 solar sales 36 CMD Mersen – November 2018
Slide 22: Mersen Solar Sales Outlook
MERSEN SOLAR SALES OUTLOOK CAGR 2018-2023 est 8-12% 90-100 55-60 45 40 2016 2017 2018 est 2023 est 37 CMD Mersen – November 2018
Slide 23: Solar Market Strategy
SOLAR MARKET STRATEGY Increase the pace of growth by developing the Mersen Galaxy JV Examine opportunities to expand graphite production capacity in the medium term Bring the production of the electrical protection and capacitors offers to Asia Cultivate relations with China’s major market players i
Slide 24: Energy Storage, a Booster for Solar!
ENERGY STORAGE, A BOOSTER FOR SOLAR! 39 CMD Mersen – November 2018
Slide 25: Questions?
QUESTIONS ? 40 CMD Mersen – November 2018