Annual Report Webcast and Conference Call March 23, Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

Transcription

1 Annual Report 2010 Webcast and Conference Call March 23, 2011 Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

2 Disclaimer We have exercised utmost care in the preparation of this presentation. It contains forecasts and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward-looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result deviates significantly from the forecast. Forecasts prepared by third parties, or data or evaluations used by third parties and mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether information, evaluations, or forecasts made by third parties are appropriate, complete, and not misleading. To the extent that information in this presentation has been taken from third parties, or these provide the basis of our own evaluations, such use is made known in this report. As a result of the above-mentioned circumstances, we can provide no warranty regarding the correctness, completeness, and up-to-date nature of information taken, and declared as being taken, from third parties, as well as for forward-looking statements, irrespective of whether these derive from third parties or ourselves. Rounding differences may arise. 2

3 Contents 1. Highlights Financials 3. Financial outlook 4. Operating and R&D highlights Strategy, Technology and Product outlook Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

4 Strong operational performance Order intake > 1 billion 22.6 % revenue growth: from m to m EBIT doubles to m 75.4 (previous year: m 37.2) EBIT margin improved to 12.1 % (previous year: 7.3 %) ROCE return on capital employed climbs to 28.0 % (previous year: 16.6 %) New orders exceed 1 billion level for the first time: m 1,

5 First dividend payment planned for successful 2010 Management & Supervisory Board proposes a dividend payment to Annual General Meeting 2011 Planned dividend payment of 0.70, including one-off 0.20 bonus dividend Distribution level 2010: m 14.8 Distribution planned for coming financial years depending on business trends 5

6 State-of-the-art production processes launched in 2010 Production output secured by decrease in lead times and 3-shifts operation Optimization of Just-in-time processes Introduction of synchronized flow production Implementation of two-stage KANBAN system Output raised by almost +200% (y-o-y) Material expense ratio improved to 60.7 % (previous year: 68.6 %) Highest degree of professionalism and flexibility 6

7 2010 targets achieved Rückblick Targets HV 2008: Ziele Target attainment Revenue between m Revenue growth to m EBIT margin of around 11 % EBIT margin of 12.1 % achieved Further improvement in internal structures Optimization of personnel and IT services through integration of centrotherm management services GmbH & Co. KG centrotherm photovoltaics AG Annual Report

8 2010 targets achieved Rückblick Targets HV 2008: Ziele Target attainment Strengthening research and development R&D expenses rose by 49.3 % to m 42.4 Cost reductions for volume products Market launch of new products Material cost ratio improved significantly to 60.7 % Solar Cell & Module: FlexLine Plus with selective emitter technology successfully placed on the market Silicon & Wafer: Launch of 24-pair technology Thin Film Module: New roll-to-roll concept results in first sales successes centrotherm photovoltaics AG Annual Report

9 Contents 1. Highlights Financials 3. Financial outlook 4. Operating and R&D highlights Strategy, Technology and Product outlook Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

10 Strong revenue and earnings growth in 2010 boom year Group 2010 vs %-change Sales % EBITDA % EBITDA margin* 16.2% 11.5% EBIT % EBIT margin* 12.1% 7.3% Net income % Earnings per share % ROCE 28.0% 16.6% Order book Dec % *Margin referring to sales, changes in percentage points All figures in million EUR centrotherm photovoltaics AG Annual Report

11 Key growth driver: Solar Cell & Module segment Segments 2010 vs %-change Silicon & Wafer Sales % EBIT % EBIT margin* 10.5% 13.9% %-change Solar Cell & Module Sales % EBIT % EBIT margin* 22.6% 7.8% %-change Thin Film Module Sales % EBIT % EBIT margin* % -23.4% centrotherm photovoltaics AG *Margin referring to sales, changes in percentage points All figures in million EUR Annual Report

12 Record order intake leads to strong order book Order book and order intake 2010 Order book per segment 1,200 1, in million EUR ,049.8 Solar cell & Module Total: Thin film module 52.9 Silicon & Wafer in million EUR Order intake 2010 per segment Solar cell & Module Total: 1,049.8 Thin film module 55.6 Silicon & Wafer Order book Cumulative order intake in million EUR centrotherm photovoltaics AG Annual Report

13 Main business driver 2010: Single equipment in Asia Sales breakdown 2010 by products Sales breakdown 2010 by regions in million EUR in million EUR Service & Replacement parts 25.8 (4.1%) Consulting & Engineering 24.6 (3.9%) Other 2.8 (0.4%) Turnkey production lines 60.2 (9.7%) Germany 33.0 (5.3%) Rest of Europe 52.6 (8.4%) Rest of World 16.7 (2.7%) Total: Total: Single equipment (81.8%) Asia (83.6%) 13

14 Material and Personnel Expenses Material Expenses Personnel Expenses in million EUR in million EUR % 60.7% % 12.9% Optimized resource input and improved materials input Significant improvement of the material expense ratio Integration of the service provider centrotherm management services Rising personnel expenses 14

15 Other Operating Expenses Other operating expenses Breakdown by cost category in million EUR % 21.6% Higher business volume and new market entries lead to increasing sales commissions and higher expenses for freight and packing 15

16 Strong liquidity and improved equity ratio Balance Sheet as of December 31, 2010 in million EUR Balance Sheet as of December 31, 2009 in million EUR Non-current assets: (40.4%) Equity: (49.2%) Non-current assets : (41.4%) Equity: (46.5%) Thereof Goodwill: Thereof Goodwill: Current assets: (59.6%) Non-current liabilities: 72.1 (8.9%) Current assets: (58.6%) Non-current liabilities : 72.2 (9.8%) Current liabilities: (41.9%) Current liabilities : (43.7%) Thereof Securities: 10.8 Cash and cash equivalents: Thereof Advance payments received: Thereof Securities: 34.4 Cash and cash equivalents: Thereof Advance payments received ,7 Aktiva Total assets 805,7 Passiva Total equity and liabilities 740,3 Aktiva Total assets 740,3 Passiva Total equity and liabilities 16

17 Cash Flow development reflects strong operating business Cash Flow from operating activities Cash Flow from investing activities NWC = Changes in Net Working Capital Net investments in million EUR in million EUR Other reconciliation effects EBT = Earnings Before Taxes Cash Flow from financing activities in million EUR in million EUR Sale of securities Total Cash Flow

18 in million EUR Research & Development focus on key segment Solar Cell & Module Expenses Changes in inventory Investments in property, plant and equipment Capitalized development costs (intangible) Silicon & Wafer Solar Cell & Module* Thin Film Module * incl. Semiconductors 18

19 Focus on continuous investments in Research & Development R&D costs / Percentage of sales in million EUR 6.8% 5.6% 4.5% 4.5% % 6% 4% 2% Continuous investments in R&D reflects positioning as technology leader 2011 R&D target: Rise R&D expenditures to 7-10% of sales % in million EUR Capex Capex level in previous years reflects former capacity expansion 2011 Capex target: ~ 50 m for further expansion of production capacities at Blaubeuren (up to 31,000 m²) location and Solar Innovation Center in Constance

20 Reducing the ratio of capitalized development costs Capitalized services* in million EUR 22.7 Future trend * capitalized development costs & prototypes Change to conservative accounting Continuous reduction of capitalized development costs in the future Prototypes will be capitalized due to IFRS regulations Amortization of development costs in million EUR Future trend Capitalization of running projects will lead to increasing amortizations until 2012 Conservative accounting will result in lower amortization beginning in

21 Contents 1. Highlights Financials 3. Financial outlook 4. Operating and R&D highlights Strategy, Technology and Product outlook Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

22 CFO masterplan focuses on profitable growth Key topics Focus on Company structure Integrated performance management Product portfolio optimization Fixed cost management Working capital control Value based management and profitable growth Reduce capitalized R&D costs Order book quality Leverage debt / equity 22

23 centrotherm s three pillars guidance model Solid order book & payment terms Big orders only recorded in order backlog after prepayment / LC Order book gives high visibility for future revenues and earnings On average 20 % prepayments from customers 80 % payment secured at shipment of our equipment Flexible production capacities ~ 40 % of our production workforce is flexible Management prepares for different market scenarios (worst / realistic / best case) Comprehensive Cash Flow Management Continuous check of project financing and timetables Negative Net Working Capital of m in 2010 Strong cash position of m

24 Guidance 2011 based on our guidance model - new targets set Further sales growth to between m 690 to m 710 Achievement of a low double-digit EBIT margin Significant increase in production output Boosting research and development expenditures to 7-10 % of sales Supplementing product and technology portfolio Further cost structure optimization through creation of divisional organization Expansion of sales share in countries outside Asia 24

25 Outlook 2011: Portfolio analysis shows upside potential of our business Portfolio analysis of business segments Segments Stars Market Growth Question Marks Silicon & Wafer: Solid growth potential Key drivers: Expansion along PV value chain Capacity expansion of existing customers Relative Market Share Solar Cell & Module: Dynamic growth potential Key drivers: Customers: Premium cost leaders Demand for high efficiency technology Cash Cows Dogs Solar Cell & Module Silicon & Wafer Thin Film Module Size equivalent to revenue Thin Film Module: Strong growth potential Key drivers: Demand for integrated building applications CIGS as leading future thin film technology 25

26 Contents 1. Highlights Financials 3. Financial outlook 4. Operating and R&D highlights Strategy, Technology and Product outlook Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

27 Silicon & Wafer Segment highlights 2010 Successfully realized projects Silicon factories were put in operation: "First Silicon Out" in Taiwan, China and Europe Signing of Qatar contract Strategic contract won for polysilicon production in Qatar (~ m 150) Customers expand along the value chain: Contract signed with Chinese state company STSIC for multi-crystalline ingot furnaces New 24-pair technology presented 27

28 Solar Cell & Module Segment Highlights 2010 Record level of order intake: m Focus on high efficiency: Solar cells with certified 19.1 % efficiency presented for first time First upgrade order won from Asia for selective emitter technology 60 MW production line for Chinese state company completed New products launched: c.nite Inline and c.nite Pre 28

29 Thin Film Module Segment highlights 2010 Further development in Ramp-up process at Taiwanese customer: Continuous increase of throughput and efficiency Development of 2nd generation selenium equipment in process Acquisition of 14.4 % of the share capital of Taiwanese CIGS thin film solar module manufacturer Sunshine PV Corp. This stake was expanded to a total of 25.4 % in early

30 Research and Development Highlights 2010 Increasing expenses for research and development: m 42.4 R&D ratio: 6.8 % of sales (previous year: m 28.4 or 5.6 % of sales) Silicon & Wafer Solar Cell & Module Thin Film Module R&D Expenses: m 10.6 m 21.6 (including semiconductors) m 10.2 R&D Activities: Development of our new 24-pair reactor and 24-pair high pressure converter Further development of our multi-crystalline ingot furnace Successful transfer of selective emitter technology to production; average efficiency: 18.5 % Development of new rear side technology to achieve efficiencies above 19.5 % Development of the new c.nite Inline system Major progress in ramping up our CIGS pilot line Development of new analytics in situ XRD Development of optical inspection procedures for large areas GP TF-EYE centrotherm photovoltaics AG Annual Report

31 Contents 1. Highlights Financials 3. Financial outlook 4. Operating and R&D highlights Strategy, Technology and Product outlook Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor

32 Product & Technology base along PV value chain Polysilicon Ingot Wafer Solar Cell Solar Module Solar Power CIGS Module Turnkey solutions (Integrated polysilicon plants) Key Equipment Processes & Technology Inspection & Metrology Engineering & Consulting Service Module design & certification 32

33 Corporate Structure reflects different market segments centrotherm photovoltaics AG - 4 Divisions - Silicon & Wafer Solar Cell & Module Thin Film Module Semiconductor & Microelectronics Units: Units: Units: Units: Silicon Ingot & Wafer Solar Cell Module Thin Film Module Service Semiconductor & Microelectronics Service Inspect Materials Service Integrated Factory Integrated Factory Silicon Wafer Solar Cell Module Silicon Wafer Solar Cell Wafer Solar Cell Module 33

34 Core business solar cell & module: Example for product families centrotherm photovoltaics AG Solar Cell & Module Module unit: Turnkey -Turnkey full Single Equipment - Special Tools - Automation Consulting PV Systems Service unit: -Spare Parts - Ramp-Up Service - Installation & Maintenance Units: Solar Cell Module Inspect Materials Service Integrated Factory Solar cell unit: Turnkey -Turnkey full -Turnkey light - Upgrade - Consulting Single Equipment - PECVD - Diffusion - Fast Firing - Laser - Labtools Service 34

35 Our Strategy: Further enhance leading market position in core businesses Silicon & Wafer/Ingot Solar Cell & Module Thin Film Module Industry CAPEX: 39% 31% 22% 8% 10% Top Products: CVD-Reactor Turnkey Turnkey Converter PECVD Single EQ VGR Diffusion/PoCl 3 Roll to Roll Main Competitors: centrotherm market share Applied Materials GEC GT Solar Meyer Burger Schmid Amtech/Tempress Applied Materials Meyer Burger Roth & Rau/OTB Schmid Shimadzu Manz Oerlikon Roth & Rau Ulvac 35

36 Our Strategy: Successful positioning on new markets Canada Established markets Upcoming markets Sweet spots / Future trend markets USA Mexico Brasil Spain Germany Italy Algeria Belarus Ukraine Middle East (GCC) South Africa India China Korea Taiwan Malaysia Australia Market entry strategy in Arab region successfully implemented Growing energy demand offers future sales potentials Markets undergoing change: New regions discover photovoltaics 36

37 Promising market outlook 45 Installed PV modules [GW] Internal planning based on 17.5 GW ROW North America Asia Europe centrotherm estimate 37

38 Market implication for our business Revenue split past, present and future 100% 80% trends: Generating new markets with turnkey 60% 40% Strong core business with single equipment 20% 0% Other revenue Service & replacement parts + Consulting & Engineering Single Equipment Turnkey Enhancing service activities 38

39 Prepare for further PV boom: Expansion of production capacities at Blaubeuren location 2008 / construction of: Production plant: 23,324 m² Management and information center: 5,185 m² New Training Center: 2,566 m² Continuous expansion: 2011 / 2012: Total production area: ~31,000 m² Further expansion plans: Packing, office and parking area 39

40 Prepare for further PV boom: New Solar Innovation Center, Konstanz Solar Innovation Center (SIC) Technology Center incl. customer lounge R&D / demonstration of PV technology along the value chain, space > 6000 m² Office space for around 150 PV experts Attractive location with close links to the University of Konstanz and the Intl. Solar Energy Research Center (ISC) Optimization of overall production process: i.e. efficiency up / costs down 40

41 Summary: Overall optimistic outlook for the future Photovoltaic market grows by % Stable business and strong market position in Asia Sound operating performance Being prepared for different market dynamics Flexible extension of production capacities Strict cash flow management Excellent technology position Innovative solar cell designs for continuously improved module efficiencies Detailed process analysis and optimizations in order to minimize the production costs ( /Wp) for our customers 41

42 Contact Thank you for you attention! Contact: Saskia Feil Senior Manager Investor & Public Relations centrotherm photovoltaics AG Johannes-Schmid-Strasse Blaubeuren Tel +49 (0) Fax +49 (0)