Analyst and Media Conference Results Fiscal Year March 2012

Transcription

1 Analyst and Media Conference Results Fiscal Year March 2012

2 Highlights in 2011 Peter M. Wagner, Chairman of the Board of Directors

3 Excellent Results in a Difficult Industry Environment 59% growth in net sales; 44% organic growth MBTN reached its high targets (guidance) in net sales and EBITDA EBIT, profit for the year weakened by special items due to acquisition of Roth & Rau Environment in our industry remains difficult in 2012, recovery expected in 2013 Focussing on our strengths in 2012 Net sales MCHF % organic growth +15% 200 acquisition of R&R EBITDA MCHF Note: in accordance with IFRS; 2007 in accordance with Swiss GAAP FER

4 Strategically Complementing Our Technologies Roth & Rau AG Invested MCHF (cash flow) in fiscal year 2011 for the purchase of 89.17% of capital and voting rights of Roth & Rau AG (participation as of ) Closed previously existing «gap» between wafer and solar module Today, Meyer Burger Group is the full line system provider in photovoltaics Increasingly important to link production processes in order to further reduce Total Cost of Ownership Note: Illustration drawn from the Annual Report 2011 Roth & Rau 4

5 Strategic Investments in R&D and in the New Headquarters in Thun Research and Development Approximately MCHF 67.5, i.e. 5.1% of net sales invested in R&D New headquarters in Thun (MB Wafertec and MB Technology Ltd) Invested approximately MCHF 27.5 in 2011 Production / office facility for employees, relocation starting in May 2012 Focussing on one location from currently 17 sites in and around Thun Proposal to the Annual General Meeting to change the registered office of Meyer Burger Technology Ltd to Thun 5

6 Passionate about PV Committed to systems and processes Peter Pauli, Chief Executive Officer

7 Challenges Opportunities Challenges Opportunities Fiscal political difficulties Political disputes on international levels regarding Feedin-Tarif programmes (Switzerland has made significant improvements in the past) Ongoing consolidation process in the photovoltaic market - this is also valid for Meyer Burger Unique and leading technology and system offering Full concentration / focus on technologies Demand for advanced technologies (diamond wire, heterojunction, new cell connecting technologies) New emerging markets with need for local value creation Supply existing markets with advanced and cutting edge technologies Advances in technology and initiation of replacement investment Ability to develop new markets with a very wide system offering Today Meyer Burger is the only technology group in the industry, which is influencing the market and is pro-actively providing new system offerings. 7

8 The Future is Now 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 8

9 Consolidation of Sales and Service Organisations Future Footprint Taiwan, Zhubei City Singapore China, Shanghai Korea, Seoul Malaysia, Kuala Lumpur India, Pune Oregon, USA Merger Takeover Opening Note: Whether merger or takeover depends on local legal and business requirements 9

10 Pro-active Consolidation Process Market needs differ in their depth of their Wafer Process processes technologies products systems applications and market access The Meyer Burger Group possesses the ability and the offering for the entire industry. A strategic milestone has been reached. Cell Process Module Process 10

11 Focussing our Strengths: Combined Offering Processes Technologies Technology brands Wafer Cropping Bricking / Squaring Wafering Deglueing Separation Final Cleaning Inspection Cell Texturing PECVD-Coating PVD-Coating/ Anti-Reflection Coating Contact Printing Test /Sort Module Soft Touch Soldering Interconnection / Lay-up Laminating Final Assembling Perfomance Measuring Sorting Systems BIPV System Shading Roof Mounting System Free field Off grid 11

12 MB System Offering Flexible Market and Cluster Offering From ingot to solar module to complete BIPV energy system Cropping Bricking Squaring Wafering Cleaning Separating Inspection Texturing Coating Printing Testing Process Control Stringing Laminating Encapsulation 12

13 Wafer Process Key Performance Indicators (KPI) Process Control Cropping Detailled accuracy Wafering Speed Yield Surface quality Geometry FabEagle Bricking/Squaring Wafer geometry Separating/Cleaning Stress free and without breakage Spotless cleanliness Highlight: Diamond Wire Environmentally friendly Productivity doubled through a water based environmentally friendly cost efficient procedure. Inspecting 30 criteria Qualification Classification 13

14 Cell Process Key Performance Indicators (KPI) Texturing Surface structure Light reflection Electricity yield PECVD - Coating Emitter Electricity transmission Highlight: Heterojunction//LoBaCo Combined advantages of crystalline silicon cells and thin film technologies Increased efficiency Lower production costs PVD-Coating/ Antireflection Coating Translucence Conductivity Electricity transmission Contact Printing Test/Sort Conductors Environmentally friendly Contact printing Performance Classification 14

15 Module Process Key Performance Indicators (KPI) Soft Touch Soldering Productivity Soft touch soldering Electriciy flow - power Highlight: Stringing Soft Touch soldering for maximum productivity Interconnection/Lay-up Quality of connection Lifecycle Laminating / Encapsulation Material costs Lifecycle Highlight: Flashing Best-in-class performance measurement 3.5% more accurate than competitors Performance Measuring Performance Qualification Final Assembling Qualifizierung Efficient electrical connections 15

16 Broad System Offering Wafer Cell Module 1. Dimension: vertical integration Modul process 3. Dimension: System offering + Wafer process + Cell process Potential for wafer systems Potential for cell systems Potential for cooperation 2. Dimension: horizontal integration 16

17 System Offering Key Performance Indicators (KPI) Process stability: Integrated, harmonised processes Uptime / Utilisation: Optimised thoughput and production volume Simplified handling Yield / Uptime: Centralised process and service support Simplified processes 17

18 Learnings Market and market environment is changing fast and dramatically The next level of industrialisation in photovoltaics is in progress Political awareness and acceptance is increasing Solar energy is no longer the playground of environmentally focussed political parties only Solar energy has become an economical and sustainable key energy technology for the future Passionate about PV and committed to systems and processes 18

19 Focussing our Strengths Campus for Solar Technology Consolidating 17 locations in the Thun area into one centre of competence for technology 19

20 Focussing our Strengths Campus for Solar Technology The future solar research and development centre in Switzerland Stringing Interconnection Lay-up Laminating Lamination Final Assembly Bricking / Diamond squaring Wafering wire Cleaning Inspection 20

21 Financial Statements 2011 in Detail Michel Hirschi, Chief Financial Officer

22 Incoming Orders / Order Backlog Incoming orders FY 2011 Volume of new orders MCHF Orders mainly received during H MCHF Very high demand in Asia, especially in China during H Strong shakeout throughout the solar industry in H2 2011, customers reluctant to order new production equipment Order backlog as of 31 Dec 2011 Order backlog MCHF (31 Dec 2010: MCHF 1,048.5) Various deliveries postponed for the time being Incoming orders MCHF

23 Net Sales 59.2% increase in net sales (+44.0% in organic growth) Guidance for net sales 2011 reached Good order backlog from 2010 and incoming orders during H are the main reasons for the growth Growth in nominal terms mainly in China and Germany Wafer process was the growth driver USA -40% (organic -64 %) Change in net sales by region Europe +60% (organic +39 %) Asia +68% (organic +55 %) MCHF Net sales R&R MCHF

24 Split of Net Sales MCHF 1,315.0 By region 17% 3% 80% Asia USA Europe By type of sales 6% 2% 92% Machines / systems Spare parts / consumables Services By currencies 4% 2% 20% 74% CHF EUR USD Other 24

25 Operating Income after Costs of Products and Services Operating income after costs of products and services increased by 48.8% to MCHF Margin declined by 3.3 percentage points compared to the previous year mainly due to Accruals on product commitments (MCHF 58.5) Depreciation / impairments of products (MCHF 12.7) Lower contribution to the margin by R&R companies Operating income after costs of products and services MCHF 49.5% % % % Op. Income* Margin * Operating income after costs of products and services 0 25

26 Development of Personnel Employees Increase in personnel (FTE) + 1,300 through acquisition R&R new full-time positions Reduction in temporarily employed staff at MB companies Total 3,058 employees at year-end 2011 Personnel expenses MCHF (2010: MCHF 133.9) Increase mainly due to Personnel expenses R&R Aug-Dec 2011 MCHF 38.6 New full-time positions Increase in other personnel expenses (recruitment, employee training, travelling expenses) No. of employees (incl. temporary staff) FTE Employees (permanent contracts) Temporary employees

27 EBITDA Other operating expenses Total other operating expenses MCHF (2010: MCHF 87.4), includes MCHF 28.0 of other operating expenses by R&R Higher expenses for rent (MCHF +5.2 compared with FY 2010) Higher external R&D costs (MCHF compared with FY 2010) Transaction expenses re R&R (MCHF 5.1) Expansion of the Group results in higher operating expenses EBITDA EBITDA margin 21.2% (without pro-rata results R&R: 23.5%) EBITDA guidance 2011 reached OPEX as a percentage of net sales was 25.1% in 2011 compared with 26.8% in 2010 EBITDA MCHF % % % % EBITDA EBITDA margin 27

28 EBIT Depreciation, amortisation / impairments of MCHF in total (2010: Depreciation, amortisation of MCHF 59.7) Property, plant and equipment Depreciation, amortisation of MCHF 19.9 Intangible assets Impairment on goodwill of Roth & Rau / OTB Solar of MCHF 73.6 Impairment on R&R CTF thin-film technology of MCHF 7.0 Amortisation of intangible assets related to acquisitions in 2011 (MCHF 19.4) and acquisitions of previous years (MCHF 41.7) EBIT MCHF % % % % EBIT EBIT margin 28

29 Income Statement 2011 Effects EBITDA to Profit for the Year MCHF

30 Financial Result and Taxes Financial result Financial result, net of MCHF (2010: MCHF -34.5) Includes foreign currency translation effects of MCHF in financial expenses. These resulted mainly from the valuation of intercompany loans to foreign subsidiaries (which had been granted during fiscal year 2011) Taxes Income taxes amounted to MCHF 34.2 and include several one-off effects Tax rate of 48.8% for 2011 was substantially higher than the expected tax rate of 22.5% Negative tax effects in FY 2011 in an amount of MCHF 44.5 due to Expenses that are not tax-deductible (goodwill impairment R&R and OTB, fair value adjustment in investments in associated companies of R&R) Adjustment of capitalised tax loss carry-forwards at OTB Positive tax effects from tax reliefs granted to Swiss subsidiaries and tax losses at foreign subsidiaries with higher tax rates 30

31 Profit for the Year Profit for the year Attributable to shareholders of MBTN MCHF 40.8 Attributable to non-controlling interests MCHF -5.0 Earnings per share EPS CHF 0.86 (2010: CHF 2.18) Ø number of outstanding shares 47,355,000 (2010: 44,992,000) Cash EPS CHF 4.62 (2010: CHF 7.72) Proposal by the Board of Directors Profit for the year MCHF 0 Retained earnings to be carried forward Note: EPS and average number of outstanding shares on diluted basis Cash EPS = Operating cash flow / average number of outstanding shares (diluted)

32 Income Statement TCHF 2011 in % 2010 in% Net sales % % Other income Income Costs of products and services thirds Changes in inventories of finished products and work in process Capitalised services Operating income after costs of products and services % % Personnel expenses Other operating expenses EBITDA % % Depreciation and amortisation EBIT % % Financial income Financial expenses Result from investments in associated companies Earnings before taxes EBT % % Income taxes Profit for the year % % 32

33 Balance Sheet Cash and cash equivalents of MCHF Net cash position of MCHF (interestbearing liabilities MCHF 9.9) Inventories and machines in production are reported at net value within balance sheet: directly allocable customer prepayments are deducted Increase in property, plant and equipment due to acquisition R&R and new building complex in Thun Intangible assets from acquisitions of previous years % equity ratio TCHF in % in% Cash and cash equivalents Trade and other receivables Inventories Other current assets Total current assets % % Property, plant and 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 liabiliities Other non-current liabilities Total non-current liabilities % % Total equity incl. non-controlling interests % % Total liabilities and equity % % 33

34 Cash flow High operating cash flow due to positive business development and strong sales growth One-off, non-cash effects on profit for the year Slight increase in NWC mainly due to decrease in customer prepayments and increase in finished products Investment activities reflect acquisition of shares in R&R and investments in new building complex in Thun Financing activities reflect acquisition of additional shares in R&R after 9 Aug 2011 and repayment of financial liabilities Repayment of major part of debt certificates at R&R TCHF FY 2011 FY 2010 Profit for the year Reversal of non-cash income/expenses Change in NWC Cash flow from operating activities Investments in property, plant, equipment, net Investments in intangible assets Increase in cash from merger with 3S Purchase of Roth & Rau shares until Purchase of remaining participation in Hennecke Other Cash flow from investing activities Capital increases (incl. premium) Purchase of Roth & Rau shares after Repayment of financial liabilities, net Other Cash flow from financing activities Cash, cash equivalents at beginning of period Change in cash and cash equivalents Currency translation differences on cash and cash equivalents Cash, cash equivalents at end of period

35 Cautious Outlook for 2012 Focussing on our strengths Program to optimise and refocus Program is targeted to lower the operating cost base by MCHF (effects mainly visible from 2013 onwards) Non-recurring expenses and accruals in CHF single-digit million are expected to be incurred in the income statement 2012 for the implementation of the program Forecasting the market development in 2012 remains difficult When will the overcapacities be eliminated and cell and module producers re-start their investment programmes? Giving guidance for 2012 is therefore extremely difficult Net sales of between MCHF EBITDA margin of between 4-8% 35

36 Meyer Burger is prepared High net liquidity, available credit lines and high equity ratio Net liquidity of MCHF Additional credit lines of MCHF 180 and MEUR 50, of which MCHF and MEUR 29 are still available Solid balance sheet structure with comfortable equity ratio (55.4%) Priorities are set for 2012 Strict cost control Efficient management of our cash flows Business with updates (possible even without increase in capacities) Push technology developments and improvements Focus on our strengths and make use of synergies within our Group We expect demand for production equipment to increase again substantially from 2013 onwards Meyer Burger Group is well positioned with its unique technology and service portfolio to profit from the expected upturn in the market 36

37 We thank you for your kind attention 37

38 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. 38