Analyst and Media Conference Results Fiscal Year March 2014

Transcription

1 Analyst and Media Conference Results Fiscal Year March 214

2 213 in review Peter M. Wagner, Chairman

3 A challenging year for Meyer Burger Increase in incoming orders towards year-end 213 Incoming orders of MCHF 287.7; +29% compared to previous year Momentum in incoming orders increased particularly in H2 213 total order income of MCHF 25.2 in H2 compared to MCHF 82.5 in H1 Various large projects exist, project discussions intensified Net sales of MCHF 22.7, EBITDA of MCHF ; incoming orders late in the year were not relevant in terms of sales for 213 Cost reduction programmes completed Reduced OPEX by MCHF 97.7 compared to previous year Merging of operating entities, reduction of companies in scope of consolidation were executed in 212 / 213 Personnel: 1,781 employees (FTE); -18.5% compared to previous year Other operating costs also substantially reduced High investments in R&D continued Invested MCHF 63.7 in research & development of new products and solutions Increased technology leadership; broadest technology portfolio in the PV industry 3

4 Lowest point passed for investments in PV equipment 213 marks lowest level for PV equipment investments according to independent studies Capacity utilisation at large tier-1 producers of solar modules improved again since autumn 213 End demand for PV installations continues to be very strong 37 GW of newly installed PV base in 213 Further strong growth expected Existing markets PV technologies were further developed and offer higher module output / lower manufacturing costs Technology upgrades expected Expectations for new capacity expansions confirmed in discussions with customers New CAPEX investments expected New markets Integrated production lines for new PV markets Large long-term projects Investments in PV Equipment Source: NPD Solarbuzz End market installed PV base GW CAGR Policy-Driven 33% CAGR Moderate 21% Source: EPIA EPIA Moderate EPIA Policy-Driven 4

5 Share placement out of authorised capital Liquidity and equity further strengthened Placing 4.8 million new registered shares out of existing authorised capital Shares were placed through an accelerated bookbuild procedure as a private placement Completion of transaction announced on 2 March 214 Gross proceeds of MCHF Financial flexibility further increased Balance sheet liabilities and equity MCHF Dec 12 Dec % equity ratio as of 31 December 213 Equity Liabilities Pro forma incl. share placement 56.3% equity ratio ( ) 5

6 Photovoltaics is part of the global energy debate Peter Pauli, Chief Executive Officer

7 Our global activities in photovoltaics «The majority of these markets are at grid parity and as such sustainable» Quote: Deutsche Bank, Solar Update, GWp 8 GWp 1 GWp each 1 GWp each Global Demand 47 + GWp 14 GWp 1 GWp x Source: Estimated installations in 214 (GWp), Deutsche Bank, Solar Update,

8 Promising mid to long term future in photovoltaics Solar is competitive today Solar with improved financing costs and availability Coming 3 years will be about BoS cost reduction Key factors are: system prices, financing costs and policy outlook LCOE ($/kwh) Average local cost of Electricity ($/kwh) Source: Deutsche Bank, Market Research, Industry Update, 6 Jan 214 8

9 Patience is key Diversity, wealth of information & time factor Project activities in photovoltaics and in specialised technologies outside of PV industries increased significantly. BUT, there is a wealth of major influencing factors: Timing is the issue! 9

10 Vertically integrated PV Fabs Combined potential of power utilities is high Profound knowhow spanning from integrated PV production lines to comprehensive energy systems Objective is to install local solar generating facilities Diesel Gas Grid 1

11 We possess the power of technologies Technology Competence Applications Markets Potential Photovoltaics Specialised Technologies SPT Wafer LED Watches Glass Touchscreen Transparent ceramics Sensors Rare earth materials Cell Semi LED Touchscreen Printed electronics Anti-reflection coating Vacuum systems Module Microelectromechanical systems MEMS Metrology MES Database Sensors Sapphire Logistics PV: Worldwide SPT: USA, Europe Europe USA MENA South America Europe South America MENA Asia Africa 11

12 Cutting & Slicing, Automation & Metrology Photovoltaics Yield Costs $/kwh Characteristics: Mass/volume production Trend: Upgrade & disruptive technologies Specialised Technologies New solutions Costs Characteristics: Special applications Trend: New markets, disruptive 12

13 Coating, Structuring, Printing Photovoltaics $/kwh LCOE Characteristics: Technology, efficiency, capacity Trend: Evolutionary & Disruptive Specialised Technologies Flexible production Mass production New solutions Characteristics: Technology driven Trend: Disruptive 13

14 Connecting, Electrification, Laminating Photovoltaics $/kwh LCOE Payback time Characteristics: Efficiency, economical Trend: Disruptive, high potential Specialised Technologies Micro electromechanical systems MEMS Conductor on glass (heating zones) Characteristics: Technology Trend: New applications 14

15 Holistic product portfolio Disruptive technologies Diamond Wire Further reduction in cost per wafer Cuts the brick at double the cutting speed High quality and super thin wafers for the heterojunction (HJT) cell process Heterojunction Superior passivation and good absorption characteristics combined in one technology: HJT Fewer production steps compared to other high efficiency cells Significant overall energy increase SWCT Up to 8% less silver consumption Up to 2% higher output in the module Savings of up to 7 USD per module 15

16 Upgrade technologies Cost savings up to 3% MB VI ProBrickLine Material-efficiency: 5 t c-si kerf saving Process-efficiency: 2% higher yield = 1.5 m wafer/year Space-efficiency: 5% less space needed MB PERC Significant efficiency Increase in standard solar cell process 3% cost saving potential in downstream processes Up to 5 $cents/wp in cost reduction across entire PV manufacturing process 5 Busbar Up to 2% of relative performance increase compared to 3 Busbar Maximum module outputs reached in combination with heterojunction cell design Glass/Glass Module Frameless manufacturing & thinner front glass results in lower production cost Best protection with a life span of over 4 years Bifacial application 16

17 Upgrade technologies Specialised Technologies Sapphire cutting technologies Interesting areas of application in LED growth markets such as LED watches and the touchscreen industry Industrial Inkjet printing Ideal for manufacture of sensors in SEMI, OLED, touch screen and printed electronics Nano surfaces Ideal for high tech applications in the semiconductor industry or for the manufacture of sensors and micro systems Plasma/Microwave Multifunctional areas of application 17

18 Vertically integrated PV Fabs Combined potential of power utilities is high Profound knowhow spanning from integrated PV production lines to comprehensive energy systems Objective is to install local solar generating facilities Diesel Gas Grid 18

19 Financial statements Fiscal Year 213 in detail Michel Hirschi, Chief Financial Officer Note: Figures 21 / 211 in accordance with IFRS Figures 212 / 213 in accordance with Swiss GAAP FER

20 Incoming orders / Order backlog Incoming orders FY 213 Recovery in incoming orders during H2 213; >71% of incoming orders achieved in H2 Volume of new orders total MCHF % increase compared to 212 Mix of project contracts is positive (existing PV markets, new PV markets, specialised technologies) Substantial number of projects being worked on Book to bill ratio 1.42 (FY 212:.35) Order backlog 31 December 213 Order backlog MCHF ( : MCHF 45.5). Order backlog includes PV orders from 211 and earlier, for which deliveries were postponed for an undefined period. These orders won t be delivered in the once ordered form in the near future. Therefore adjustment of the order backlog by these orders. Clean order backlog MCHF 19.3 ( : MCHF 111.9) Incoming orders MCHF Incoming orders last 4 half-year periods MCHF H1 12 H2 12 H1 13 H2 13 2

21 Incoming orders per month «Normal» / «Large orders» Total incoming orders MCHF PR (Jul 25) 1 PR (Aug 5) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Orders "usual" business 1 PR (Nov 29) 4 PR (Dec 12, 16,19, 2) Large orders "Press Releases" Average run rate «usual business» orders 213: MCHF 14.2 Average run rate «usual business» orders 2 months 214: MCHF 21.3 Large orders impact our total incoming orders substantially (irregular timing) 21

22 Net sales Net sales lower than expected at the beginning of 213 Incoming orders late in H2 213 not relevant in terms of sales 213 anymore Regional sales split changed compared to previous years (mainly due to lower amount of sales) Broader regional split expected in future (compared to previous years) USA +52% Change in net sales by region Europe -23% Asia -82% Net sales MCHF Net sales last 4 half-year periods MCHF H1 12 H2 12 H1 13 H

23 Split of net sales MCHF 22.7 By regions By type of sales By currencies 14% 4% Asia USA 1% Europe Other 9% 45% 23% 17% Machines / systems Spare parts / consumables Other goods / software Services 51% 1% 8% 22% 6% CHF EUR USD Other 23

24 Operating income after costs of products and services Margin of operating income after costs of products and services («acopas») exceptionally high in 213 Margin in 213 positively impacted by release of provisions for onerous contracts which had to be taken in previous years negatively impacted by impairments on inventories => «normalised» margin 213 = 47.6% Margin in 212 positively impacted by other income without therefor occurred expenses negatively impacted by impairments on inventories and close-out agreements => «normalised» margin 212 = 46.2% Operating income a c o p a s MCHF 8 5% 46% 51% 68 44% Op. income acopas last 4 half-year periods MCHF % % % 44% H1 12 H2 12 H1 13 H2 13 Operating income Op. income margin 24

25 OPEX (1) Total OPEX reduced by MCHF 97.7 OPEX substantially reduced to MCHF (212: MCHF 317.6), mainly due to optimisation programmes Reduction is substantially higher than communicated targets (communicated MCHF 5-6 in March and MCHF 8 in August 213) Optimisation and consolidation programmes completed in H1 213 Employees -45 FTE (Production -155, R&D -12, Services -15, S&M +15, F&A 58) +115 temporary employees in production due to orders at year-end 213 Personnel expenses Personnel expenses FY 213 MCHF 165.7; -22% Y-o-Y (212: MCHF 213.7) Sustainable cost reduction Substantially lower variable payments in 213 No. of employees FTE Personnel expenses last 4 half-year periods MCHF H1 12 H2 12 H1 13 H2 13 Permanent employees Temporary employees 25

26 OPEX (2) / EBITDA Other operating expenses Other operating expenses MCHF % Y-o-Y (212: MCHF 13.8) Rental costs MCHF 6. lower External R&D costs MCHF 7.9 lower Transportation costs MCHF 4.1 lower IT / Marketing MCHF 3.8 lower Allowances for trade receivables MCHF 17.8 lower Positive effects of cost reduction measures on other items due to optimisation programmes Other operating expenses last 4 half-year periods MCHF H1 12 H2 12 H1 13 H2 13 EBITDA MCHF % % -5% -33 EBITDA last 4 half-year periods MCHF % % -11% % -5% H1 12 H2 12 H1 13 H2 13 EBITDA EBITDA margin 26

27 EBIT Depreciation and amortisation totalled MCHF 79.6 (212: MCHF 95.1) Property, plant and equipment Depreciation of MCHF 2.8 Impairments net of MCHF 6.5 Intangible assets Scheduled amortisation of intangible assets mainly related to M&A activities of recent years MCHF 52.2 Substantially lower scheduled amortisation, mainly due to no further amortisation of «R&R order backlog» and change to Swiss GAAP FER EBIT MCHF % % -2% EBIT last 4 halt-year periods MCHF % % -25% % -89% H1 12 H2 12 H1 13 H2 13 EBIT EBIT margin 27

28 Financial result / Taxes Financial result Financial result, net of MCHF (212: MCHF -9.2) Financial income: Interest income of MCHF.3 Financial expenses: Interest expenses of MCHF 6.4 for straight bond, MCHF 1.6 for bank loans, other interest expenses MCHF.9 (MCHF.8 from loan secured by mortgage certificates on building in Thun) FX effects of intercompany loans to foreign subsidiaries MCHF 3.5 Other financial expenses MCHF 2. Taxes Tax income of MCHF 48.5 (212: Tax income of MCHF 26.4) Partial capitalisation of loss carry-forwards due to the negative taxable results of subsidiaries (about MCHF 36) Reduction of temporary differences in intangible assets (about MCHF 13) No (normal) income taxes owed (212: MCHF 1.8) 28

29 Net result Net result Attributable to the shareholders of MBTN MCHF Minority interests MCHF -4. Earnings per share EPS CHF (212: CHF -2.23) Ø number of outstanding shares 7,171,713 (212: 47,628,19) Cash EPS CHF (212: CHF -3.53) Net result MCHF Net result last 4 half-year periods MCHF H1 12 H2 12 H1 13 H

30 Income statement TCHF 213 in % 212 in% Net sales % % Other income Income Changes in inventories of finished products and work in process Cost of products and services Capitalised services Operating income after costs of products and services % % Personnel expenses Other operating expenses EBITDA % % Depreciation and amortisation EBIT % % Financial result Result from investments in associated companies - 6 Non-operating result Earnings before taxes EBT % % Income taxes Net result % % 3

31 Balance sheet Liquidity and balance sheet structure strengthened by capital increase in May 213 Solid balance sheet with net liquidity of MCHF 9.7 Intangible assets from M&A activities of previous years Non-current financial liabilities include MCHF 13 5% Bond 217 and MCHF 3 for loan secured by mortgage certificates, maturity in 215 Equity ratio above 52% TCHF in % in% Cash and cash equivalents Trade and other receivables Inventories Other current assets Total current assets % % Other long-term receivables Property, plant and equipment Intangible assets Other long-term assets Total long-term assets % % Total assets % % Current financial liabilities Trade payables Customer prepayments Current provisions Other current liabilities Total current liabilities % % Non-current financial liabilities Non-current provisions Deferred tax liabilities Other non-current liabilities Total non-current liabilities % % Equity incl. minority interests % % Total liabilities and equity % % 31

32 Balance sheet Assets / Liabilities Balance sheet relations Assets MCHF Cash, cash equivalents Other current assets Intangible assets Other fixed assets Change to Swiss GAAP FER Effects in equity of MCHF Effects share placement Pro forma Gross proceeds of + MCHF % Equity ratio Liabilities and Equity MCHF % Liabilities Equity 49% 5% % Note: according to IFRS, as of according to Swiss GAAP FER Equity ratio 32

33 Cash flow CF from operating activities NWC stabilised. Book to bill ratio in 213 at Improvement in cash flow situation during H CF from investing activities Investments in property, plant and equipment represent «normal» CAPEX investments (previous year new building in Thun) CF from financing activities Cash inflow resulting from capital increase and loan secured by mortgage certificates (building in Thun) TCHF Result Reversal of non-cash income/expenses Change in NWC Cash flow from operating activities Investments in property, plant, equipment, net Investments in intangible assets Sale of fully consolidated companies net of cash Sale of investment properties 17 - Other - 7 Cash flow from investing activities Capital increases (incl. premium) Purchase of treasury shares Sale of treasury shares Purchase of shares in Roth & Rau AG Repayment of financial liabilities Issuance of (non-current) financial liabilities Cash flow from financing activities Cash, cash equivalents at beginning of period Change in cash, cash equivalents Currency translation effects on cash, cash equiv Cash, cash equivalents at end of period

34 Cash flow from operating activities Good improvement in operating cash flow despite the lower net sales Completed cost reduction measures have positive impact on cash flow from operating activities; operating cash drain reduced by MCHF 34 in H2 compared to H1 213 (MCHF 6.5 in conjunction with coupon of the straight bond always due in H1) Increase in customer prepayments of MCHF in H2 213 compared to decreases of MCHF in FY 212 and MCHF in H1 213 CF from operating activities MCHF CF operating activities last 4 half-year periods MCHF H1 12 H2 12 H1 13 H

35 Cost reduction measures implemented Organisational and structural measures Merging of sales and service networks of Meyer Burger Technology with the subsidiaries of Roth & Rau; implementing Global Sales Organisation Consolidation of production on 2 major sites and 2 smaller technology/production sites Completion of heterojunction products Closed various sites (3S, AMB, MB Robotics, MB Norway, MB Spain) Sale of fixed assets (e.g. building MicroSystems) Personnel reduced by 1,1 employees since year-end 211 (-36%) Reduced manufacturing in core production subsidiaries Reduced services China, Taiwan, Singapore, Korea Closed services Japan, Spain, Norway Integrated services Germany into other subsidiaries Restructured and re-sized R&D Closed 2 production sites and moved manufacturing to other companies Re-sizing wafer & module in Thun Reduced central functions, IT and corporate centre Thun 35

36 Outlook Important signs that lowest point of the PV market has passed Tier-1 solar cell and module manufacturers have again higher capacity utilisations Project discussions with customers confirm that upgrade technologies and/or capacity expansions will increase again New markets with long-term large potential Meyer Burger has a good project pipeline in various markets Meyer Burger already invests in new different countries in projects, where module lines with heterojunction or SmartWire technology are used tests in local and geographical conditions Fiscal year 214 Incoming orders for first two months in 214 correspond approx. to the average monthly run rate of incoming orders for the entire year 213 (run rate usual business higher) Orders for production capacity expansions and technology upgrades expected Some projects in new markets may turn into contract status For sales and earnings: substantial improvement particularly during second half of the year expected for 214 compared to 213. However, on EBITDA level still forecasting a loss Return to profitability at EBITDA is not anticipated before 215 at the earliest Financial flexibility and equity further strengthened by share placement 36

37 Thank you for your attention.

38 Most important effects regarding change to Swiss GAAP FER Balance sheet Note 2.2 TCHF Swiss GAAP FER in % Swiss GAAP FER in% IFRS (published) in% MCHF 242 of goodwill / customer relationships offset against equity Adjustment deferred taxes by MCHF 22.6 Offset MCHF 3.6 of capitalised loss carry-forwards with deferred tax liabilities MCHF 18 Retirement benefit obligations MCHF 22 total effects in equity Cash, cash equivalents Trade and other receivables Inventories Other current assets Total current assets % % % Other long-term receivables Property, plant and equipment Intangible assets Other long-term assets Total long-term assets % % % Total assets % % % Current financial liabilities Trade payables Customer prepayments Provisions Other current liabilities Total current liabilities % % % Non-current financial liabilities Provisions Deferred tax liabilities Other non-current liabilities Total non-current liabilities % % % Equity incl. minority interests % % % Total liabilities and equity % % % 38

39 Most important effects regarding change to Swiss GAAP FER Income statement Note 2.2 MCHF.6 Other income TCHF 213 Swiss GAAP FER in % 212 Swiss GAAP FER in% 212 IFRS (publiziert) Net sales in% MCHF 1.6 Personnel expenses MCHF 7. Depreciation MCHF 2.4 Income taxes Other income Income Changes in inventories of finished products and work in process Cost of products and services Capitalised services Operating income after costs of products and services % % % Personnel expenses Other operating expenses EBITDA % % % Depreciation and amortisation EBIT % % % Financial result Result from investments in assoc. companies Non-operating result Earnings before taxes % % % Income taxes Result % % % 39

40 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. 4