centrotherm photovoltaics AG Roadshow Presentation centrotherm photovoltaics AG Presentation of Q3 / 9 Months Financial Report

Transcription

1 centrotherm photovoltaics AG Roadshow Presentation centrotherm photovoltaics AG Presentation of Q3 / 9 Months Financial Report November 12, 2008

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. Introduction 2. Highlights in Q Research and Development 3. Research and Development 4. Financial Results in Q3 / 9 Months Actions Taken After Reporting Date 6. Outlook 7. Appendix 3

4 Introduction

5 1. Introduction centrotherm photovoltaics at a Glance Positioning as technology supplier and service provider for manufacturing of crystalline solar cells, thin film modules and solar silicon Company Description Technology and equipment supplier PV technology along value chain Turnkey solutions and single equipment for solar cells, polysilicon and thin film Fast technology transfer Leading market player of turnkey crystalline solar cell production lines Installed base De facto standard Cost of ownership Quality of support Strong Customer Base Solar Cell Silicon Business Divisions Thin film Services Turnkey Lines Key Equipment Turnkey Production Plants* Technology *Vision 5

6 1. Introduction Company Structure Extensive management expertise in photovoltaics Robert M. Hartung CEO Speaker of the Board Strategy Business Development centrotherm photovoltaics AG Hans Autenrieth CEO Sales Strategic Alliances Dr. Peter Fath CTO Technology Marketing Oliver Albrecht CFO Finances and Accounting Investor Relations and HR Solar Silicon Solar Cell Thin Film Dr. Albrecht Mozer Technology Director (Speaker) Dr. Peter Fath Interim Technology Director Dr. Dieter Schmid Technology Director Dr. Frank Stubhan Operations Director Dr. Harald Wanka Operations Director Jörg Talaga Operations Director Michael-Harro Liese Marketing/Sales Director Holger Hilsenitz Finance Director centrotherm Thermal Solutions GmbH & Co. KG GP Solar GmbH / GP Inspect GmbH centrotherm SiTec GmbH centrotherm photovoltaics technology GmbH FHR Anlagenbau GmbH Sales & Service CTPV Asia Pte. Ltd., CTPV Asia Pte. Ltd., CTPV USA Inc. CTPV Italia S.r.L. Singapore Taiwan Branch 6

7 1. Introduction Technological Competence along Value Chain State of the art technology along PV value chain Solar Silicon Solar Cell Thin Film In-house R&D-experts Technology Siemens -Process Well proven Architecture for new cell generation Production process improvement CIGS technology - High efficiency potential - Free choice of TCO - No toxic gases Products Engineering for polysilicon plant includes - TCS - Deposition - Vent Gas Recovery Ramp-up and process transfer Turnkey production process Single equipment process - Nitride - CVD - Metallization - Wet chemical - Automation - Facility design - Production line layout Turnkey production process CIGS equipment process - Sputter - Annealing - Wet chemical - Automation - Facility design - Production line layout Equipment Siemens -Reactor Converter Batch furnace Inline furnace Inspection tools Sputter equipment Selenium equipment Roadmap Crystallization furnace Controlling system - Easiest use - Unique functionality 20% cell efficiency Special tools for 18%+ process Efficiency up to 14% Yield improvement up to 18% 7

8 Highlights in Q3 2008

9 2. Highlights in Q Highlights Strong growth in sales and EBIT Order Book exceeds 1 billion Euro (TEUR 1,005,382) Sales more than tripled in Q3 up to TEUR 96,801 (previous year: TEUR 30,586) EBIT jumped up to TEUR 12,047 in Q3 (previous year: TEUR 2,923) Convincing project successes in Asia and the USA Fully takeover of SolMic GmbH (Bundling of solar silicon competence in new company centrotherm SiTec in Q4 2008) Expansion of product portfolio with GP Inspect: New optical measurement system 9

10 Research and Development

11 3. Research and Development Research and Development Research and development expense totaled TEUR 12,250 in the first nine months of 2008 (previous year: TEUR 3,578) Solar Silicon Solar Cell Thin Film We have developed a new reactor generation: Reactor capacity increased from 150 tons a year to over 170 per year (Series launch is planned for early 2009) Development project in the crystallization area started (The aim is to put a prototype into operation in the first half of 2009) We have continued the development of the newgeneration solar cell Important technical milestone achieved: Solar cell charges with a new front end design repeatedly achieved a degree of efficiency of over 18.0% in the laboratory R&D-activities also focused on the 15.6 x 15.6 cm² wafer format, which is important for production technology, as well as multicrystalline silicon We started operating our 30 MW reference line This now enables modules to be produced (30 x 30 cm²), including structuring R&D-activities focus on developing an alternative production-viable procedure to manufacture a cadmiumfree buffer layer, which is set to replace the current cadmium sulphide buffer layer in the near future 11

12 Financial Results in Q3 / 9 Months 2008

13 4. Financial Results in Q3 / 9 Months 2008 Update on Order Book Order Book exceeds 1 billion as of September 30, 2008 ( m) 1, /2007 Development of Order Book / / /2008 Breakdown by Business Area as of September 30, Order intake in Q3 2008: 124m /2008 Order book contains: Comments 1 thin film turnkey line (30 MWp) 35 turnkey solar cell lines (capacity: 1,305 MWp) 7 orders for delivery of key equipment for silicon production (capacity: 17,150 tons) Indicative Sales Realization Time of Order Book Solar Silicon 475m (47.3%) FY 2008 Total: 1,005m Solar Cell 486m (48.3%) Total: 1,005m FY 2009 FY 2010 Thin Film 44m (4.4%) 13

14 4. Financial Results in Q3 / 9 Months 2008 Key Figures Positive development of key financials Key Figures Revenue in TEUR 236,939 91,675 96,801 30,586 Total operating performance in TEUR 243, ,284 97,612 35,223 EBITDA in TEUR 31,261 12,160 12,480 3,026 EBITDA margin in %* 12.8% 12.1% 12.8% 8.6% EBIT in TEUR** 30,403 11,896 12,047 2,923 EBIT margin in %* 12.5% 11.9% 12.3% 8.3% EBT in TEUR 33,227 11,856 12,728 2,956 EBT margin in %* 13.6% 11.8% 13.0% 8.4% Consolidated net income in TEUR 23,707 7,231 9,167 1,789 Earnings per share in EUR Weighted average number of shares in T 16,000 8,120 16,000 11, Total expenses R&D in TEUR 12,250 3,578 4,710 1,884 Capex in TEUR 89,759 2,563 55,155 2,111 Operating cash flow in TEUR 101,887 8,960 26,134-1,282 Average number of employees Number of employees as of the reporting date Total assets in TEUR 459, , Equity in TEUR 153, , Equity ratio in % 33.4% 59.1% - - Order book in TEUR 1,005, , * Margin referring to total output ** Period without operating EBIT-contribution of SolMic GmbH due to at-equity consolidation (see EBT) 14

15 4. Financial Results in Q3 / 9 Months 2008 Sales and Total Output Sales and total output significantly increased Sales ( '000s) 240, , , ,000 80,000 40,000 0 Sales 236, % % 96,801 91,675 30,586 Q Q M M 2008 Q3: Sales amounted to 96.8 million euros (+216.5%) 2 turnkey lines and 57 single equipments were delivered in the third quarter of M: Comments Sales increased up to million euros (+158.5%) 10 turnkey lines and 147 single equipments were delivered in the first nine months of 2008 Total Output* Comments Total Output ( '000s) 240, , , ,000 80,000 40, % 243, % 97, ,284 35,223 Q Q M M 2008 Q3: Total output rose to 97.6 million euros (+177.1%) 9M: Total output was million euros (+143.1%) * Total output is the relevant key figure for the analysis of centrotherm photovoltaics business, as it comprehends changes of work in progress 15

16 4. Financial Results in Q3 / 9 Months 2008 Sales Breakdown Export quotas: % (9M) % (Q3) Sales Breakdown by Region in Q in '000s Rest of World 8,295 (8.6%) Rest of Europe 10,861 (11.2%) Sales Breakdown by Region 9M 2008 in '000s Rest of World Rest of Europe 17,363 (7.3%) 33,350 (14.1%) Germany 24,664 (25.5%) Total: 96,801 Germany 38,207 (16.1%) Total: 236,939 Asia 52,981 (54.7%) Asia 148,019 (62.5%) Sales Breakdown by Product in Q Sales Breakdown by Product 9M 2008 Service and replacement 1,398 (1.4%) Other 12,542 (13.0%) in '000s Service and replacement 4,523 (1.9%) Other 21,285 (9.0%) in '000s Total: 96,801 Turnkey production lines 31,726 (32.8%) Total: 236,939 Turnkey production lines 92,421 (39.0%) Single Single equipment equipment 51,135 (52.8%) 118,710 (50.1%) 16

17 4. Financial Results in Q3 / 9 Months 2008 Material and Personnel Expenses Expansion of business is leading to an increase in material and personnel expenses Material Expenses ( '000s) 200, , ,000 80,000 40, % 27,026 Material Expenses 75.2% 71.5% 73,386 71, , % Material Expenses ratio* 100% 80% 60% 40% 20% Comments Material expenses ratio stepped up in the first nine months resulting from a higher number of turnkey production lines which have not been fully realized Due to the fact that material costs will be realized before other project related costs, material expenses ratio is temporarily higher until full invoicing of the production line 0 Q Q M M % Personnel Expenses Comments Personnel Expenses ( '000s) 16,000 12,000 8,000 4, % 2, % 6, % 5,415 Personnel Expenses ratio* 15,541 8% 6.4% 6% 4% 2% Personnel expenses and personnel expenses ratio increased in Q and in the first nine months of 2008 due to the engagement of high-qualified staff for R&D (especially to build up and expand our solar silicon and thin film business) Number of employees as of September 30, 2008: 508 (previous year: 143 employees) 0 0% Q Q M M * referring to total output

18 4. Financial Results in Q3 / 9 Months 2008 Other Operating Expenses Decline in other operating expenses ratio Other Operating Expenses ( '000s) 20,000 16,000 12,000 8,000 4, % 2,640 Other Operating Expenses 6.7% 6, % 11,481 Other Operating Expenses ratio* 20, % Q Q M M % 8% 4% 0% Comments Other operating expenses increased in Q and in the first nine months of 2008 due to the expansion of the business However, other operating expenses ratios declined to 8.3% in the first nine months of 2008 and 6.7% in Q due to lower sales commissions Breakdown by Cost Category 9M % Travel expenses 26.0% Freight and packaging Other services 12.1% Sales commissions Research and development Management services 3.7% Legal and general consultancy 7.9% Insurance and contributions 4.3% Advertising costs 2.6% 6.0% Premises expenses 8.1% Other 7.6% 7.6% 18 * referring to total output

19 4. Financial Results in Q3 / 9 Months 2008 EBIT and Net Income Continued positive development of EBIT and Net Income 30,000 24,000 18,000 12,000 EBIT ( '000s) 6, % 2,923 EBIT and EBIT Margin 12.3% 11.9% 12,047 11,896 30, % EBIT Margin 16% 12% 8% Comments EBIT rose in Q and in the first nine months of 2008 due to the higher sales revenue and total operating performance EBIT margin increased in Q3 and in the first nine months of Q Q M M % Net Income and Net Income Margin Comments Net Income ( '000s) 24,000 20,000 16,000 12,000 8,000 4, % 1, % 9, % 7,433 23, % Net Income Margin 10% 8% 6% 4% 2% 0% Net income increased in Q3 and in the first nine months of 2008 Net income margin increased up to 9.7% in the first nine months of 2008 and 9.3% in Q Q Q M M Note: Margins refer to Total Output

20 4. Financial Results in Q3 / 9 Months 2008 Cash Flow Net working capital favourable affected by prepayments from customers Cash Flow from Investment Activities mostly influenced by acquisitions and expansion of capacities in Blaubeuren and Dresden ( 000s) Cash Flow from Operating Activities after NWC 110,000 90,000 70,000 50,000 30,000 10,000 11,856 8,960-10,000-2,896 9M 2007 NWC 68, ,887 33,227 EBT 9M 2008 NWC = Changes in Net Working Capital EBT = Earnings Before Taxes Cash Flow from Financing Activities ( 000s) -10,000-30,000-50,000-70,000-90, ,000 Cash Flow from Investment Activities 9M M , ,611 Total Cash Flow ( 000s) 10,000 11,500 9,667 8,000 6,000 4,000 3,470 3,500 2, M M M M , ,000-4,500-3,724 ( 000s) 7,500

21 4. Financial Results in Q3 / 9 Months 2008 Balance Sheet Balance sheet volume totally increased Balance Sheet (in thousands) as of September 30, ,674 Non-current Assets 357,045 Current Assets thereof: Securities (155,514) 153,627 Equity 32,565 Non-current Liabilities 273,527 Current Liabilities thereof: Advanced payments received (147,227) Assets: Comments Non-current assets rose to 103 million mainly due to an increase in goodwill resulting from the acquisition of FHR, GP Solar and SolMic and capital expenditure (new production hall) Considerable securities position ( 156 million) mirrors large amounts of advanced payments received ( 147 million) Cash and cash equivalents amounted to 42 million as of September 30, 2008 Liabilities: Equity ratio was 33.4% as of September 30, 2008 Current liabilities amounted to 274 million mostly resulting from higher advanced payments received Non-current liabilities include deferred tax and deferral of purchase price of SolMic GmbH 459,719 Total Assets 459,719 Total Equity and Liabilities 21

22 Actions Taken After Reporting Date

23 5. Actions Taken After Reporting Date CTTS Integration into centrotherm photovoltaics The integration of CTTS* provides in-house access to key thermal equipment and production capacities. Semiconductor business provides high operational and technological synergies - impact on sales volume is limited. Company Description Product offering: thermal key equipment for the photovoltaics and semiconductor industry Customers: >80% intercompany sales to PV industry (CTPV) <20% external sales to semiconductor industry (e.g. Bosch, Infineon, LG, OSRAM) Outstanding 30 years of engineering and manufacturing know-how for thermal process technology Approx. 400 employees Key Financials (in thousand) FY 2007 Sales 106,522 Total Output 107,204 EBITDA 7,648 EBITA 7,067 EBIT 7,067 Net Income 6,020 Key Financials (in thousand) H Sales 78,485 Total Output 79,821 EBITDA 8,554 EBITA 8,244 EBIT 8,244 Net Income 7,287 Note: Sales and results were converted to IFRS 23 * centrotherm Thermal Solutions GmbH & Co. KG

24 5. Actions Taken After Reporting Date Capital increase for CTTS integration successfully completed Combined capital increase against contribution in cash and in kind Use of the issue proceeds: Investing in research and development in the solar cells, silicon and thin film areas and financing further internal and external growth Capital increase in kind: Major shareholder Hartung Beteiligungs GmbH used its subscription rights by subscribing for a total of 4,224,293 new shares, thereby contributing all its shares in CTTS and its general partner as payment in kind for a fixed subscription price at EUR per new share Capital increase in cash: Remaining shareholders were entitled to subscribe in line with the 2:1 subscription ratio (price at EUR per new share) A total of 938,089 new shares were subscribed Gross issue of around EUR 18.8 million received Number of shares in million ,000,000 Free Float % Autenrieth 13.31% Hartung Beteiligungs GmbH 52.80% 4,224,293 in Kind 938,089 other 21,162,382 against Cash Shareholders Free Float 1 Hartung Beteiligungs GmbH 30.05% Autenrieth 10.07% Hartung Beteiligungs GmbH 59.88% 0 Share Capital Capital Increase against Share Capital pre Transaction Cash and in Kind post Transaction 24 1 Including minority shareholdings of board members

25 Outlook

26 6. Outlook Outlook We expect a strong fourth quarter 2008 and a turnover of million euros for the full year 2008 with at least unchanged margins CTTS consolidation for November and December 2008 with a little impact on sales but a positive EBITA-effect Economy growth has been adjusted downwards for 2009 with a possible recession for Germany Nevertheless, experts expect sustainable growth in the photovoltaic industry (e.g. Commerzbank AG 10/2008 : sector volume CAGR of 72% from 2007 to 2011) 26

27 centrotherm - empowering photovoltaics Contact: Saskia Schultz-Ebert Investor Relations centrotherm photovoltaics AG Johannes-Schmid-Strasse Blaubeuren Tel +49 (0) Fax +49 (0)

28 7. Appendix Financial Calendar and Further IR Data November 17, 2008: Merrill Lynch Conference, New York March 31, 2009: Publication of 2008 annual report November 20, 2008: Forum Solarpraxis, Berlin May 14, 2009: Publication of interim report as of March 31, 2009 December 3, 2008 LBBW German Industrial Conference, Zurich June/July 2009: Annual General Meeting August 13, 2009: Publication of interim report as of June 30, 2009 November 12, 2009: Publication of interim report as of September 30,