Analyst and Media Conference First Half Year September 2011

Transcription

1 Analyst and Media Conference First Half Year September 2011

2 Highlights 1 st Half Year 2011 Peter M. Wagner, Chairman

3 Strong Growth at High Profitability 61% growth in net sales; pure organic growth High profit margins and cash flows Various large orders Incoming orders +33% y-o-y to MCHF Order backlog as of 30 June 2011 MCHF 1,240.8 Expect positive development also for the 2 nd half-year 2011 Net sales EBITDA MCHF 1st half-year MCHF 1st half-year Note: H in accordance with Swiss GAAP FER; H in accordance with IFRS 3

4 Strategic Investments (1) Roth & Rau AG Public tender offer for Roth & Rau AG EUR 22 per non-par-value bearer share Valuation at offer price about MEUR 357 No price increase Board of Directors and management clearly support the offer price No amendment of the offer price 82.57% held by Meyer Burger as of 9 August 2011 High acceptance ratio of the offer (52.95% of capital / voting rights) Remaining 29.62% acquired through share purchase contracts and stock exchange transactions Roth & Rau closes gap between wafering and solar modules A further step in our long-term corporate strategy Meyer Burger is a full-line system provider along the entire value chain Mono- / Multi c-si Wafering Solar cells Solar modules Solar systems 4

5 Strategic Investments (2) New Building in Thun MB Wafertec New headquarters building for MB Wafertec in Thun CAPEX of about MCHF 50 for the first stage of construction in 2011 / 2012 Production and office facility for employees Start of construction: January 2011; scheduled completion: end of Q Project approval (March 2011) for second stage of construction; additional CAPEX about MCHF 20 until 2012 Centre for processes (R&D, process development, test environment) First stage of construction progressing according to plan Bare brickwork completed Fully automated high rack storage area installed completely 5

6 Key drivers of the 5th industrial revolution Peter Pauli, Chief Executive Officer

7 Energy technologies The 5th industrial revolution Vision Meyer Burger We will be the leading technology group We will be the leading technology group for innovative systems and processes focused on the solar industry. We enable our customers to reach lowest total cost of ownership. 7

8 Key drivers Cost Technology systems Management Yield, module efficiency, performance and PV system lifecycles Scalability, modularisation, optimisation Network parity lowest cost per kilowatt hour Diamond wire Cell coating (Hetero junction, R&R) Lamination ( One chamber process ) Wafer tracking system (WTS) Automation and production process management (MES/PQMS) Supply Chain Management Consolidation Organisational optimisation Increased efficiency 8

9 Process system integrator TCO Cost driver Development in module cost Installations Leadership - as technology and system provider - in process costs and technologies - in market presence 9

10 Technology Centers MBT core business R&R core business Divestment Wafering Consumables for wafering Diamond Wire, coolant, beam Metrology Robotics and Automation Cell connecting Encapsulation Testing/Simulation/Sorting Building-integrated solar systems Cell technology Cell process Microwave technology Plasma- and Ion beam technology Production information technology Semiconductor maintenance PV foil technology PV thinfilm line 10

11 Technologies and Products

12 Module Line within MBT Strategy Modularisation Integration / MES Effects of scale / volume production Cost reduction Supply Chain Management 12

13 Highlights in Technology, Systems and Products (1) Cell connecting: Certus Two Increased productivity Top production speed of 1300 cells/hour Reduced footprint combined with highly sophisticated software Maximum stringer availability > 95% with minimal breakage rates Human Machine Interface (HMI) standardised in 3S, Somont and Pasan machines High rate of flexibility due to high modularity Lowest cost of ownership and highest yield Certus Two 13

14 Highlights in Technology, Systems and Products (2) Cell laminating : JT Laminator Maximal yield > 99.8% Highest uptime > 98% with maintenance free heating system Increased productivity due to a 50% smaller footprint and highest throughput globally Patented hybrid heating plate: +/- 1 C temperature homogeneity Easy to expand production capacity with modular components Lowest cost of ownership optimal XLprocess extends durability of membrane JT Laminator 14

15 Highlights in Technology, Systems and Products (3) Modules: Meyer Burger Interconnection Modular interconnection station developed through the shared transfer of technology and process knowledge between the Meyer Burger competence centres Innovative robotic technology, with its excellent positioning accuracy, ensures optimal production output and a stable production process Future-proof investment with flexible adaption to new products and/or technologies Meyer Burger Interconnection 15

16 Potential Chances From fragmented single equipment to integrated system supply Cristallisation Cost / System Performance High Medium Low Wafer Cell Module System Wafer Zelle Modul System Material flow / automation Process Quality Management System MES/PQMS Wafer Tracking System WTS = Cost System Performance $ kwh Conclusion: We are in the driving seat regarding the key factors in PV 16

17 The Challenge

18 Market Demands (1) Facts Opportunities / Strengths + Challenges / Risks - Consolidation phase Discussions about the feed-in tariffs in Germany, Spain and Italy Fukushima effect Surpluscapacityof solar modules + Strengthening Meyer Burger position + Strengthening industry + New markets + System optimisation + Energy mix debate + Renewable energy + Sustainability + Demand for photovoltaics + Cost trend + Innovation - Order delays - Loss of know-how - Uncertainties - Time as a factor - Stop & go - Political, social debate requires time - Uncertainties - Stop & go 18

19 Market Demands (2) Facts Price & margin pressure Opportunities / Strengths + + Attractive end-user prices + Grid parity Challenges / Risks - - Volume market Asia - Technology market Europe Technologies, systems, products + Diamond Wire + System, process knowhow + Integration, automation + Cost reduction + Increase efficiency - Investments - Acquisitions - Time-to-market Competition in individual equipment market + Reputation for quality - Volume market Political factors - local production - promoting local technology + Cost of production + Time-to-market - Market access 19

20 Meyer Burger s Response The 5th industrial revolution is here We aspire to be the leader in technology, sytem integration and the continuing reduction of process costs We know and own the most important key technologies and processes We develop technologies and systems which significantly reduce and sustainably influence our customers production costs We pursue a group-wide Supply Chain Management system to ensure economies of scale 20

21 Financial Details 1 st Half Year 2011 Michel Hirschi, Chief Financial Officer

22 Incoming Orders / Order Backlog Incoming orders H Volume of new orders MCHF (H1 2010: MCHF 590.1) Asia (China) as driving region with very high demand / Asian customers continue to expand their capacities Established European customers invest only very selectively and cautiously Hints regarding reduction in demand have increased in June Order backlog 30 June 2011 Excellent basis for full year 2011 and into 2012 MCHF 1,240.8 ( : MCHF 1,048.5) Deliveries to take place mainly until mid 2012 Incoming orders MCHF H H H

23 Net Sales 61% increase in net sales pure organic growth High order backlog from year-end 2010 and in part from the new orders generate the growth Growth in nominal terms mainly in China and Germany Wafering as growth driver USA -54% Change in net sales by regions Europe +53% Asia + 76% Net sales MCHF H H H

24 Split of Net Sales Net sales H of MCHF By region By type of sales By currencies 21% 2% 77% Asia America Europe 7% 1% 92% Machines / systems Spare parts / consumables Services 2% 5% 16% 77% USD EURO CHF other 24

25 Gross Profit 7 percentage points increase in margin in H compared with H Margin in H on similar level as in H (52.0%) Increase mainly due to High production volumes in Thun and Zülpich Consistent continuation of modularisation / engineering to cost Leverage on fixed production costs General process optimisation Change in product mix Further reduction of in-house production depth negative influence on the margin Partially lower material costs as a result of purchases in EUR with sales in CHF Gross profit MCHF % 46.2% % H H H Gross profit Gross margin %

26 Development of Personnel Employees Increase in personnel (FTE) +20% through new full-time positions, mainly as a result of the strong growth Reduction in temporarily employed staff (adapting to production volumes) At end of May 2011, the number of temporary employees was 360 Altogether increase in number of employees (incl. temporary FTEs) +15% Increase of 458 FTE, +35% respectively compared with 30 June 2010 Personnel expenses Personnel expenses MCHF 82.5; +32% (H1 2010: MCHF 62.4) Adjustments in capacity mainly through employment of temporary personnel to guarantee flexibility in production No. of employees (incl. temporary staff) FTE additional FTE temporary staff Employees (permanent contracts) Temporary staff 26

27 EBITDA Other operating expenses Total other operating expenses MCHF 69.1 (H1 2010: MCHF 37.9) Volume-related higher transportation costs as a result of the higher net sales (MCHF +16 compared with H1 2010) Higher external R&D costs (MCHF +7.5 compared with H1 2010) Increase in IT expenses (MCHF +2.6 compared with H1 2010) Transaction expenses regarding Roth & Rau Expansion of the group results in slightly higher operating expenses EBITDA OPEX as a percent of net sales amounts to 26.4% compared with 28.1% in H Positive effect of substantially higher gross profit also reflected in EBITDA EBITDA MCHF % % % H H H EBITDA EBITDA margin %

28 EBIT Depreciation, amortisation almost unchanged, totalling MCHF 29.8 (H1 2010: MCHF 30.2) EBIT MCHF 6.1 for property, plant and equipment MCHF 23.7 for intangible assets, amortisation of intangibles from M&A activities of previous years Goodwill MCHF ( : MCHF 194.0) judged to be sustainable MCHF % % 6.2% H H H EBIT EBIT margin %

29 Financial Result & Taxes Financial result Financial result, net of MCHF (H1 2010: MCHF -16.3) Persistent weakness of EUR and USD against CHF in H once more lead to a lower valuation of intercompany loans by Meyer Burger Technology Ltd and MB Wafertec to foreign subsidiaries. The financial expenses include unrealised exchange rate losses of MCHF 29.8 in conjunction with these intercompany loans and other balance sheet assets in EUR and USD FX comparison for balance sheet dates 30 June 2011 / 31 December 2010: EUR -3.8%; USD -11.4% Taxes Tax expense for H MCHF 15.3 (H1 2010: Tax income MCHF 5.6) Relatively low tax rate of 16.7%, mainly as a result of the tax relief granted to MB Wafertec on federal, cantonal, municipal, church taxes (granted in 2010 with retrospective tax credits for the years 2008 and 2009) 29

30 Group Earnings Earnings Group earnings more than tripled Extraordinary window of market opportunities, coupled with production volumes that were never experienced before and proportionally lower increase in fix costs have enabled this result Earnings per share for the half-year period EPS CHF 1.63 (H1 2010: CHF 0.54) Ø number of outstanding shares 47,083,752 (H1 2010: 43,737,896) Cash EPS CHF 3.79 (H1 2010: CHF 1.92) Group earnings MCHF H H H Note: EPS and average number of outstanding shares on diluted basis Cash EPS = Operating cash flow / average number of outstanding shares (diluted) 30

31 Effects on Financial Statements H resulting from the Takeover of Roth & Rau As of balance sheet date 30 June 2011 MB Group holds 24.99% participation in Roth & Rau Investment is a business combination achieved in stages (IFRS) Reflected in the balance sheet as investment in associated companies Income statement H Transaction and financing expenses MCHF 7.4 Earnings from investments in associated companies (pro-rata loss of Roth & Rau) MCHF 0.5 Balance sheet as of 30 June 2011 Increase in long-term assets of MCHF Used in-house cash funds of MCHF 69.4 Issuance of new shares of MBTN in an amount of MCHF 44.7 FX related valuation differences of MCHF -7.7 Cash flow H CF from investing activities reflects the cash investment of MCHF

32 Income Statement TCHF H in % H in% Net sales % % Changes in inventories of finished products and work in process Other income Income Cost of products and services thirds Gross profit % % Personnel expenses Other operating expenses EBITDA % % Depreciation and amortisation EBIT % % Financial income Financial expenses Earnings from investments in associated companies Earnings before taxes (EBT) % % Income taxes Group earnings % % 32

33 Balance Sheet Net cash position of MCHF (no interest-bearing liabilities) Decrease in NWC despite sales growth (increase in customer prepayments, optimised management of inventories and trade receivables) Inventories and machines in production or machines prior to acceptance by customers are reported at net value within balance sheet i.e. directly allocable customer prepayments are deducted Investment in associated companies reflects participation of 24.99% in Roth & Rau AG Intangible assets from acquisitions of previous years Equity ratio >58% TCHF in % in % Cash, cash equivalents Trade and other receivables Inventories Other current assets Total current assets % % Property, plant, equipment Investments in assoc. companies Intangible assets Other long-term assets Total long-term assets % % Total assets % % Current financial liabilities Trade payables Customer prepayments Other current liabilities Total current liabilities % % Non-current financial liabilities Other non-current liabilities Total non-current liabilities % % Equity % % Total liabilities and equity % % 33

34 Cash flow Operating cash flow due to strong earnings coupled with considerable decrease of net working capital (increase in customer prepayments) Decrease in NWC despite sales growth Investment activities: purchase of 24.99% participation in Roth & Rau AG (associated company) Cash for participation in Roth & Rau directly out of cash and cash equivalents position Gross investments of MCHF 28.8 in property, plant and equipment, mainly new building complex for MB Wafertec and expansion of capacities at DMT TCHF H H Group earnings Reversal of non-cash income/expenses Decrease in NWC Cash flow from operating activities Investments in property, plant, equipm., net Investments in intangible assets Increase in cash from merger with 3S Purchase of remaining shares in Hennecke Investments in associated companies Cash flow from investing activities Capital increases (incl. premium) Repayment of current financial liabilities Repayment of non-current financial liabilities Cash flow from financing activities Change in cash and cash equivalents Currency translation differences on cash and cash equivalents Cash, cash equivalents at end of period

35 Outlook Meyer Burger is in an excellent strategic position to sustainably profit from an increasing demand in the photovoltaics equipment market in the coming years The high order backlog of MCHF 1,240.8 provides very strong basis for performance in second half of 2011 and into 2012 Update on guidance for full year 2011 (excluding Roth & Rau AG) Net sales of about MCHF 1,200 EBITDA margin of between 23 to 25% Outlook still based on the assumption that our customers will realise their expansion projects as planned Regarding business expectations of Roth & Rau AG, we refer to the statements of R&R Development of worldwide economy difficult to assess for the next two years Meyer Burger is active internationally and would not be able to completely escape possible negative effects in the medium term 35

36 We thank you for your kind attention.

37 Disclaimer Information in this presentation may contain forward-looking statements, such as guidance, expectations, plans, intentions or strategies regarding the future. These forward-looking statements are subject to risks and uncertainties. The reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements included in this presentation are based on data available to Meyer Burger Technology Ltd as of the date that this presentation is released. The company does not undertake any obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or otherwise. This presentation is not being issued in the United States of America and should not be distributed to U.S. persons or publications with a general circulation in the United States. This presentation does not constitute an offer or invitation to subscribe for, exchange or purchase any securities. In addition, the securities of Meyer Burger Technology Ltd have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered, sold or delivered within the United States or to U.S. persons absent registration under an applicable exemption from the registration requirements of the Securities Act or any state securities laws. The information contained in this presentation does not constitute an offer of securities to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations No prospectus offering securities to the public will be published in the United Kingdom. Persons receiving this presentation in the United Kingdom should not rely on it or act on it in any way. In addition, the presentation is not for release, distribution or publication in or into Australia, Canada or Japan or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. 37