Get documents about "Welcome to Oerlikon Solar We make solar power
Document Sample
Welcome to Oerlikon Solar
We make solar power economically viable.
Disclaimer
This presentation is based on information currently available to management. The forward-
looking statements contained herein could be substantially impacted by risks and influences
that are not foreseeable at present, so that actual results may vary materially from those
anticipated, expected or projected.
2
Presentation overview
Company Overview
Solar Market
Highlights in 2008 / Customer Base
Navigating through the Storm
Focus on Cents KWh
Progress on the Path to Grid Parity
Proven Thin-Film Manufacturing Solutions
Proven Products & Solutions
3
Company Overview
Enabling High Technology
Oerlikon
Oerlikon Oerlikon Oerlikon Oerlikon Oerlikon
Advanced
Textile Coating Solar Vacuum Drive Systems
Technologies
Oerlikon Oerlikon Oerlikon Oerlikon Oerlikon
barmag balzers leybold vacuum graziano space
Oerlikon Oerlikon Oerlikon
neumag fairfield systems
Oerlikon Oerlikon 1
saurer esec
Oerlikon Oerlikon 1
schlafhorst systems
Oerlikon
textile components
1 Discontinued operations.
Six areas of high tech competencies
Oerlikon
Oerlikon Oerlikon Oerlikon Oerlikon Oerlikon
Advanced
Textile Coating Solar Vacuum Drive Systems
Technologies
Market Biggest Sole Co-leader Strong #2 Leader Leader
Position Global Player Leader
Sales 2008: CHF 1,690m CHF 509m CHF 598m CHF 465m CHF 1,204m CHF 284m
Employees: 7,008 2,892 868 1,583 5,080 805
(31.12.2008)
Total Group*: CHF 4.8 billion Sales
(FY 2008) CHF 0.5 billion EBITDA
CHF 247 million R&D investment
180 locations in 37 countries
* Continued operations
Business Snapshot
Thin-film silicon is the fastest growing sector of the PV market in the medium term.
The technology is well positioned to deliver competitive LCOE.
Oerlikon Solar has become a leading player in thin-film PV. Proven ability to scale.
Delivering all projects on schedule and on performance.
Greater than 100% year on year revenue growth since 2006.
Technology roadmap on schedule for 0.70 $/Wp by 2010.
Oerlikon Solar successfully entered into strategic partnerships such as in sourcing
(Flextronics) and Sales/Support (TEL) and will continue to do so.
7
3rd consecutive year of highly profitable
growth
(in CHF m)
Further strong market growth in 1HY08,
Orders received Sales financial crisis triggered temporary
“stand-still” in new orders in 2HY08
650 566 -13% 598 Business Oerlikon Solar recognized technology
leader in thin-film silicon, technology
+125% Development roadmap for 0.70$/Wp
Thin-film remains fastest growing PV
266 market segment
Delivering all projects on schedule and
performance, 1st micromorph SOP
Manufacturing capacity expansion Europe,
FY 07 FY 08 FY 07 FY 08 Flextronics partnership; pilot line Truebbach
in operation
Key Topics
>100% sales growth despite customer
EBIT project delay
amorph|HIGH PERFORMANCE launced,
107 master TÜV certification
+70% Fundamental needs and benefits of PV
63 unchanged, political winds favorable
17.8% EBIT Outlook / Focus on new customers with financial
strength, leverage TEL partnership to
margin in Priorities maintain 2008 order levels
FY 2008 Stay on R&D / technology roadmap
Adjust expansion pace to market conditions
FY 07 FY 08
Revenue
in MCHF
628
304
137
2006 2007 2008
More than 100% year on year revenue growth.
9
R & D Investments
in MCHF
Over 300 scientists and
engineers
Over 200 patents and
300 patents applications
2006 2007 2008
10
TEL and Oerlikon Solar join forces in parts of
Asia
Sales & After Sales
Installation
Marketing Services
Product Manu-
Research Engineering
design facturing
TEL becomes our exclusive
representative and installation and
services provider in parts of Asia,
Oceania and Japan.
11
Oerlikon Solar’s mission is
to make solar power economically viable.
12
Solar Market
Drivers for new energy sources
Fundamentals don’t change
Increased Energy Demand
Rising Costs
Diminishing Fossil Fuel Resources
Environmental Concerns and
Regulations
National Security
14
Fast growing global energy demand
Total electricity production mix
Hydro
16%
Nuclear Waste Geothermal
15% 14,9% 13,4%
Other
Oil Wind 2,4% Solar PV
Gas 6% 29,3% 0,6%
20% Other
2% Solar Thermal
0,2%
Tide
Biomass 0,1%
39,1%
Coal
41%
Source: EIA
World electricity production in 2006 was 19 Million GWh total.
15
Growth in the PV market
Thin-film to grow faster than the rest of the solar
market demand
Annual PV module
MWp
Accumulated installed capacity
GWp
40000 CAGR 2007-12
CAGR 2007-13
35000 Thin-Film 83%
36%
30000 c-Si 33%
25000 Total Market 41%
20000
15000
10000
5000
0 0
2007 2008 2009 2010 2011 2012
c-Si Thin Film (OS)
Source: Oerlikon Solar, Equity Research Source: Oerlikon Solar
Thin-film exptected to increase strongly in the next 5 years, gradually gaining market share.
16
Global PV market development
Projections of new installations per country
2008 2010
Source: Deutsche Bank
US with highest growth potential.
17
Why PV vs. CSP
Key differentiators and clear advantage for
PV
Easier site selection and permitting as
PV can be deployed on smaller parcels
or rooftops
PV starts generating revenue within early
phase of deployment, while CSP project
needs to be completed to generate power
PV does not require water for regular
operation, which can be a significant issue
in arid regions
Source: Cowen Research
18
Why thin-film instead of c-Si?
Absolute lowest cost of electricity!
Much lower manufacturing cost then c-Si
Lower efficiency does result in slightly higher BOS cost
However, overall result is lowest cost of electricity
Better performance at higher operating temperatures
Better performance in diffused light, wider range of incidence angles
Better suited to building integrated applications
Higher margins in manufacturing
Higher rates of return on investment for solar projects
19
Thin-film silicon equipment market
Oerlikon Solar has the largest installed base for thin-film silicon
PVmarket size of thin-film silicon equipment market
Total Thin-film silicon end-to-end (moved-in)
As of 12/08
11%
€m
4,500 39%
33% 3,845
4,000
3,500 45%
3,000
2,856 AMAT
2,500 2,084 1,984
2,000
1,242
44%
1,500
1,000
Ulvac
500
0
2007 2008 2009 2010 2011
Market size: €1,100m
Source: Oerlikon Solar Source: Oerlikon Solar analysis
Thin-film silicon is the most well-developed technology and Oerlikon Solar is ideally placed to
capitalize on its growth potential.
20
Oerlikon Solar – leading thin-film silicon end-
to-end and fab solutions provider
World leading manufacturer of
proven end-to-end thin-film silicon
PV solutions
Offers additional services such as
repair and maintenance support,
including the provision of spare
parts
Approx. 800,000 manufactured
panels as of today with OCS
equipment
From 350 to 850 employees in
2008
More than 200 global customer Headquarter and main production
personnel at 13 locations in 9 facility in Trübbach, Switzerland,
countries with approx. 670 employees
21
Highlights in 2008
Customer Base
Highlights in 2008
What we achieved
We became a recognized technology leader
Executive management team strengthened
Manufacturing capacity expanded in Europe
Strategic manufacturing partnership with Flextronics
Expanded low cost sourcing supply chain in Asia
Expanded service operations base in Asia
Pilot line officially opened in Switzerland
More than 780,000 panels manufactured by our
customers
Installed capacity increased to more than 350 MW
23
Highlights in 2008
Technology achievements
Launched:
amorph I HIGH PERFORMANCE
> 7% efficiency
Received:
IEC master certification from TÜV
Achieved:
Champion cell above 13% efficiency
for micromorph
24
Highlights in 2008
New customers in production
Start of production at Sun Well (Taiwan)
Start of first micromorph production
at Inventux (Germany)
25
Project update
Customer Technology Type Contract Move-In SOP MW
Signed On-Time On-Time
Bosch/Ersol Amorphous Equipment 40
Schüco Amorphous Equipment R&D
Schott Amorphous Equipment 40
CSG Amorphous Equipment 20
Sunwell Amorphous End-to-End 50
Inventux Micromorph Equipment 30
HelioSphera Micromorph End-to-End 30
Tianwei Amorphous End-to-End 46
Auria Solar Micromorph End-to-End 60
Pramac Micromorph End-to-End 30
Sunwell (2) Micromorph End-to-End 60
Sunwell (3) Micromorph End-to-End 120
Gadir Amorphous End-to-End 40
Chint Micromorph Equipment 40
Total more than 600 MW
26
Navigating through the storm
Business snapshot
Short term challenge, long term opportunity
In the first half of 2008 Oerlikon Solar established a strong market position
Order targets were being met.
Demonstrated technical leadership with highest performance.
All projects delivered on time.
All projects meeting performance promises.
And then… the financial crisis hit!
New orders delayed due to the inability for customers to get financing.
Expect 6 to 12 months before growth returns.
Customers build plants today for markets in 2010.
Fundamental need and benefits of PV have not changed.
Political winds are favorable.
28
Priority one
Focus on Customers
Keep existing customers satisfied by
continuing to deliver on time and at or
above performance.
Focus on new customers with state or
balance sheet funded projects.
Enhance Customer Service Program.
29
Priority two
Full speed on research and development
Stay on our technology roadmap.
New upgraded products stay on
schedule.
$0.7/Wp (Grid Parity) offered by 2010.
30
Priority tree
Operational efficiency
Cost reduction
- headcount reduction of 7%
- overhead trimmed
- simplified organizational structure
- short-time work and holiday reductions
extended
Delay non-priority programs.
Manufacturing, production and assembly
activity will be scaled back temporarily.
Strict cash management
- Manage suppliers obligations
31
Focus on Cents per KWh
Panel price is not
the whole story
Price development along PV value chain
c-Si panel (Sharp ND series, 2009 – 13% efficiency)
Equipment Module BOS Solar Farm Solar Farm Wholesale
Manufacturer Manufacturer Suppliers Integrator Owner Utilities (PPA)
5.0 O&M Cost of
Insurance
1.41 0.34 Electricity
4.5 Overhead
Inverters 0.21 $/kWh
4.0
Mechanical
3.5 Electrical
Land
10 MW project in
3.0 California
0.90 including
2.5 (30%) 4.75 ITC
4.41 Accelerated
2.0 Depreciation
55% Equity@12%
1.5 3.00 45% Debt@9%
1.0 2.10
Grid Parity approx:
0.5 0.12 $ / KWh
0.0
Module Module Module BOS System Ownership Cost to Own
Cost Margin Price Price Price Costs (NPV) The System
33
Price development along PV value chain
Micromorph panel (Oerlikon Solar, 2009 – 9% efficiency)
Equipment Module BOS Solar Farm Solar Farm Wholesale
Manufacturer Manufacturer Suppliers Integrator Owner Utilities (PPA)
($/W)
5.0
O&M
4.5 Insurance
Cost of
1.72 Electricity
Overhead 0.30
4.0 Inverters 0.19 $/kWh
3.5
Mechanical
3.0
Electrical 10 MW project in
2.5 Land California
including
0.69 4.31
2.0 4.01 ITC
(30%) Accelerated
1.5 Assumption Depreciation
55% Equity@12%
2.29
1.0 45% Debt@9%
1.60
0.5 Grid Parity approx:
0.12 $ / KWh
0.0
Module Module Module BOS System Ownership Cost to Own
Cost Margin Price Price Price Costs (NPV) The System
34
Price development along PV value chain
Micromorph panel (Oerlikon roadmap)
Equipment Module BOS Solar Farm Solar Farm Wholesale
Manufacturer Manufacturer Suppliers Integrator Owner Utilities (PPA)
($/W) 5.0
4.5 Cost of
Electricity
4.0 Grid Parity! 0.13 $/kWh
3.5
O&M
3.0 Insurance
1.59 Overhead 0.19 10 MW project in
2.5 California
Inverters including
2.0 Mechanical
ITC
Accelerated
1.5 Electrical 2.77
Depreciation
Land 2.58 55% Equity@12%
1.0 0.29
45% Debt@9%
(30%)
0.5 0.99 Grid Parity approx:
0.70
0.13 $ / KWh
0.0
Module Module Module BOS System Ownership Cost to Own
Cost Margin Price Price Price Costs (NPV) The System
*For Equipment Offered in 2010 35
Progress on the Path to Grid
Parity
Cost of ownership calculation
Material Cost
Throughput
Gas, glass, lamination,
Glasses per hour
foil, consumables, etc.
Investment Cost
Yield
Equipment, line automation,
% sellable modules
back-end, etc.
Labor Cost
Uptime
Operators, technicians,
% of production availability
engineers, management, etc.
Power Efficiency
Module driven by conversion
37
Cost of ownership calculation
+ +
Money Material Cost Investment Cost Labor Cost
=
x x x
Wp Throughput Yield Uptime Power
38
Grid parity: ahead of the solar PV market
Potential for explosive growth in
demand upon convergence
Electricity from Solar PV Demand Supply
is becoming cheaper
Grid price, Solar PV cost ($/kWh)
Rising Grid Costs
US-Average price of
electricity: 8,6 cents/kWh
Grid Parity
Potential for
over-supply
39
Proven Thin Film
Manufacturing Solutions
Demonstrated rapid ramp-up
Ramp-up phase Ramp-up yield
FAB - A FAB - B
FAB - B FAB - A
200% improvement of
production levels at week 21
• Target yields achieved after
four weeks
• Yield much stable compared
to earlier project
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47
Weeks after SOP
Weeks since SOP
Module power distribution ramps
First 25,000 panels Second 25,000 panels Third 25,000 panels
41
Proven Products & Solutions
Oerlikon provides end-to-end (E2E)
production solutions…
43
…and critical components of module production…
Laser Scribers (LSS)
Laser Scribers (LSS) PECVD (KAI) LPCVD (TCO)
Define cells
Define Cells Deposit PV material Deposit contacts
Used for patterning Applies the photovoltaic thin- Allows applying transparent
films which convert light into conducting front and back
Subdivide the continuous electrical energy contacts
thin-film layer into individual
cells and create serial Capacity to produce both Base electrode (cathode) is
connections between them amorphous solar modules deposited followed later by
and micromorph solar the application of the anode
modules
44
Short term challenges, long term opportunities
Solutions for a solar powered world
Thin-film is the fastest growing PV segment, creating
a 45 BUSD total solar market opportunity by 2012
On track to achieve grid parity by 2010.
Oerlikon Solar on track to offer grid parity solutions by 2010
Prove solutions for high volume thin-film silicon solar module
Proven manufacturing solutions
production with more than 700’000 produced panels.
More than 800,000 panels already produced
45
Calendar and contact details
April 23, 2009 Key figures for the first quarter 2009 Contact details
Corporate Investor Relations
May 12, 2009 General Meeting of Shareholders, KKL
Lucerne Frank Heffter
T: +41 58 360 96 22
Roland Bischofberger
August 27, 2009 Media and analyst conference on semi- T: +41 58 360 97 14
annual results 2009, SIX Zurich
F: +41 58 360 91 93
ir@oerlikon.com
October 22, 2009 Key figures for the third quarter 2009
www.oerlikon.com/ir
Thank you
for your attention.
47
Related docs
