Ops Italia S.p.a · MIL:OPS
Ops Italia — EEMS Italia — Star Conference London 2010
31 slides from Ops Italia's conference presentation, Oct 5, 2010
Slide 1: Star Conference London
Star Conference London October 5, 2010
Slide 2: EEMS Key Notes
EEMS Key Notes Not only semiconductor, but …….. A fast growing Photovoltaic business Fully recovered from loss of Qimonda With a much stronger financial position Back on fast growing track Moving for leadership in PV
Slide 3: Group Structure
Group Structure EEMS Italia S.p.A. 100% EEMS Singapore EEMS Asia Pte. Pte. Ltd Solsonica S.p.A. Pte. Ltd 100% (Singapore) 100% (Singapore) 100% EEMS Suzhou 100% 100% EEMS Technology EEMS China Pte. Ltd. Co. Ltd. Suzhou Co Ltd. (Singapore) (China) (China) Listed Co Semiconductor Photovoltaic Dormient
Slide 4: Shareholders
Shareholders Nbr of shares % Mutti family 9.208.316 21.1 D’Antonio * 2.950.975 6.8 Management * 709.828 1.6 Market 30.728.001 70.5 Total 43.597.120 100.0 * Mr. D’Antonio and others have exercised their warrants option for a total of 1.094.275 shares and injecting in the Company a total consideration
Slide 5: Lots of changes in the past two years
Lots of changes in the past two years • Anticipated the opportunities in the Photovoltaic business sometime in 2007 • Shut down the semiconductor operations in Italy in 2008 to improve our overall competitiveness • Consolidated all our semiconductor business in our existing operations in China • Inv
Slide 6: What did we do
What did we do • Started our negotiations with Bank Pool to restructure the debt • Successfully acquired more Dram volume from an existing customer • Successfully completed our debt restructuring in early 2010 • Managed to sell out our non Dram test operation in Singapore • The proceeds were used to
Slide 7: The two legs strategy - Executed
The two legs strategy - Executed EEMS Italia S.p.A. EEMS Asia Solsonica Semiconductors Photovoltaic Revenues in US $ currency Revenues in € currency High Capex Low Capex Moderate growth Very high growth Fully integrated Partially integrated One of few One of many 5 Oct 10 7
Slide 8: Business and Factories
Business and Factories EEMS Italia S.p.A. EEMS Asia Solsonica Semiconductors Photovoltaic EEMS Suzhou EEMS Tech Solsonica FreeZone No FreeZone Headquarter 23,000 SQM 43,000 SQM 23,000 SQM 1179 People 339 People 269 People Dram-Dimm Dram Cells & Modules 05 Oct 10 8
Slide 9: Semiconductor
Semiconductor 05 Oct 10 9
Slide 10: Eems China – Financial Performance – M$
Eems China – Financial Performance – M$ Revenues Ebitda 140 120 100 80 M$ 60 40 20 0 2005 2006 2007 2008 2009 1H10 Revenues 4.6 70 111 123 90 63 Ebitda 30 42 46 24 17 Ebitda % 43 38 38 27 28 5 Oct 10 Source : Company data 10
Slide 11: Eems China - Financials – M$
Eems China - Financials – M$ Yr on Yr Qtr on Qtr Sequential Revenues Revenues Revenues 1H09 1H10 2Q09 2Q10 1Q10 2Q10 31.7 63.5 16.4 34.0 29.5 34.0 100% 107% 15% Yr on Yr Qtr on Qtr Sequential Ebitda Ebitda Ebitda 1H09 1H10 2Q09 2Q10 1Q10 2Q10 6.3 17.5 3.3 8.9 8.6 8.9 178% 170% 3% 5 Oct 10 11
Slide 12: Dram – Market evolution – Value & Volume
Dram – Market evolution – Value & Volume Market Value – B$ Market Volume - BU 40 35 35 30 30 25 25 20 B$ BU 20 15 15 10 10 5 5 - 28 19 50 18 -1 26 12 27 19 3 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 High volatility Continuous g
Slide 13: Dram – EEMS China Versus Market - History
Dram – EEMS China Versus Market - History Market Value Market Volume 40 16 35 14 30 12 25 10 BU B$ 20 8 15 6 10 4 5 2 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 EEMS China Revenues EEMS China Volume 140 350 120 300 100 250 80 200 MU M$ 60 150 40 100 20 50 0 0 2005 2006 2007 2008 2009 2005
Slide 14: Dram – Market Share – B Units
Dram – Market Share – B Units 2008 2009 2010 2011 Rank 2010 Elite B Units 0.2 0.2 0.2 0.2 Elpida B Units 2.1 2.4 3.1 3.9 3 Etron B Units 0.2 0.2 0.2 0.2 Hynix B Units 3.1 3.3 4.0 4.5 2 Iss B Units 0.1 0.1 0.1 0.2 Micron B Units 1.0 1.4 2.0 2.3 4 Nanya B Units 0.7 0.8 0.9 1.1 5 Oki B Units 0.1 0.1 0.
Slide 15: Dram – Top Dram manufacturers by volume – Who is outsourcing?
Dram – Top 6 Dram manufacturers by volume – Who is outsourcing ? Estimated Rank BU % Outsourcing BU ♦ Samsung 1 5.1 - ♦ Hynix 2 4.0 1.1 ♦ Elpida 3 3.1 3.1 ♦ Micron 4 2.0 .5 ♦ Nanya 5 .9 .9 ♦ Powerchip 6 .8 .8 Total 15.9 6.4 EEMS estimated volume .3 .3 EEMS estimated penetration % 1.9 4.7 In house Ou
Slide 16: Dram – Market Share – B Units – Our Customers
Dram – Market Share – B Units – Our Customers 2010 2011 2012 2013 2014 Micron B Units 2.0 2.3 3.0 3.5 3.6 Nanya B Units 0.9 1.1 1.4 1.7 1.8 Etron B Units 0.2 0.2 0.2 0.2 0.2 Total B Units 3.1 3.6 4.6 5.5 5.6 Total Market B Units 17.6 19.7 25.0 29.7 30.6 Share % 18% 18% 18% 18% 18% ♦ Our customers ow
Slide 17: Dram – Additional Potential Opportunities
Dram – Market Share – B Units – Additional Potential Opportunities 2010 2011 2012 2013 2014 Elpida B Units 3.1 3.9 5.0 5.9 6.1 Hynix B Units 4.0 4.5 5.8 6.8 7.0 Total B Units 7.0 8.5 10.8 12.8 13.2 Total Market B Units 17.6 19.7 25.0 29.7 30.6 Share % 40% 43% 43% 43% 43% ♦ Two key Dram players make
Slide 18: Dram Business - Summary
Dram Business - Summary Dram volume continuously and significantly growing EEMS well positioned logistically in China State of the art technology available Already fully operational on DDR3 technology Opportunity to increase capacity on marginal Capex Generating Ebitda margin from 25% to 35% 5 Oct 1
Slide 19: Photovoltaic
Photovoltaic 5 Oct 10 19
Slide 20: From Semiconductor to PV in Italy - Natural development
From Semiconductor to PV in Italy - Natural development Industrial strenght Booming market ♦ Strong industrial background ♦ Sky-rocketing demand ♦ Used to face high tech challenges ♦ High sun hours ♦ Well established “silicon culture” ♦ Increasing green awareness ♦ Leveraging on EEMS existing assets
Slide 21: PV business – Italian PV market: Trend
PV business – Italian PV market: Trend Tot Power Cumulated PV power 2,200 1,600 MW (MW) @ Sept 2010 1,057 408 80 2007 2008 2009 2010 Tot Installations # PV 7,678 30,368 63,742 ~130,000 100,200 installations @ Sept 2010 So far a fast growing market … 5 Oct 10 Note: Data from GSE report 21
Slide 22: PV business – Italian PV market - Forecast
PV business – Italian PV market - Forecast Cumulated PV power (MW) 6,000 ♦ The second worldwide PV 4,500 market 3,300 ♦ Among the most sunniest 2,200 European Countries ♦ Among the first Countries to reach grid parity 2010 2011 2012 2013 … expected to grow even in the future 5 Oct 10 Note: Estimates
Slide 23: PV business – Italian PV market - New opportunities
PV business – Italian PV market - New opportunities Share of PV installations In addition: ♦ 56 Millions population ♦ 20 Millions houses ♦ 2 Millions firms Rooftop installations Total Available Market 100 GW (estimate) … with a major opportunity in rooftop installations for residential and small bus
Slide 24: Solsonica – Achievements
Solsonica – Achievements Solsonica achieved the following objectives : 1. Completion of the industrial turnaround from DRAM to photovoltaic cells and module manufacturing 2. The planned cell and module lines are up and running achieving state of the art manufacturing 3. Established as one of the maj
Slide 25: Solsonica – Strategy
Solsonica – Strategy Solsonica strategy is based on four key elements 1. Improve cost competitiveness through value chain integration, excellence in manufacturing process and a better economy of scale 2. Leadership in the segment of residential and small/medium business rooftop installations 3. Cons
Slide 26: Solsonica – Our new vision
Solsonica – Our new vision A complete and truly distinctive turn key system for residential customers and small industries based on: • Guarantee the economic return • Distinctive and performing product features • Energy monitoring and after sales services • Easy and industrialized installation An ag
Slide 27: Solsonica - Planned capacity expansion
Solsonica - Planned capacity expansion MW Modules – Capacity (MW) 140 110 70 ♦ A continuous expansion in 50 production capacity ♦ Fully automated module 2009 2010 2011 2012 production line Cells – Capacity (MW) ♦ State of the art cells 70 operations 50 25 35 ♦ Secured wafer sourcing 2009 2010 2011 2
Slide 28: Solsonica - Financials M€
Solsonica - Financials M€ Revenues (M€) 100 37 19 2008 2009 2010 E Continuous growth in revenues 5 Oct 10 28
Slide 29: Solsonica - Summary
Solsonica - Summary A path to grow …. A market in constant expansion New opportunities in rooftop installations Extremely well positioned in the Italian market An excellent product well perceived by the market … and a vision to attain Leadership in PV solutions to residential and small/medium enterp
Slide 30: Group Financial Projections
Group Financial Projections 5 Oct 10 30
Slide 31: EEMS Group Consolidated - Projections M€
EEMS Group (*) Consolidated - Projections M€ 2009 2010 2010 Year Actual 1st Half Guidance ♦ Revenues 133.5 99.5 200 - 210 ♦ Ebitda 25.5 25.3 41 - 43 ♦ Ebit -14.5 3.8 5-7 ♦ NFP 80.9 86.8 41 - 43 ♦ Hitting barrier of 200 M€ revenues ♦ Return to black ♦ Approaching to halve NFP (*) Including 7 months o