Topsil Semiconductor. LD SmallCap Seminar 7 October 2010

Transcription

1 Topsil Semiconductor Materials A/S LD SmallCap Seminar 7 October 2010

2 AGENDA 3 Topsil s s markets and market drivers 7 Insulated gate bipolar transistors (IGBTs) fuelling growth 14 Update on strategy implementation 19 Appendix: Topsil in brief LINDEGAARD ANDERSEN (CEO) , KLA@TOPSIL.COM JENS CHRISTIAN NIELSEN (CFO) , JCN@TOPSIL.COM COMPANY PRESENTATION Page 2

3 THE FOUR TOPSIL GROUP MARKETS 100 Revenue split for Topsil Group (2009) 90% 3% 2% 5% Source: Yole Developpement and the Topsil Group, 2009 COMPANY PRESENTATION Page 3

4 PRODUCT RANGE MATCHES THE MOST SIGNIFICANT GROWTH DRIVERS According to Yole Developpement, annual growth rates in the Topsil Group s four semiconductor markets from 2009 to will be between 8% and 20% (CAGR) CAGR for the Power market is expected to be 11% Above 3.3kV: 9% for NTD-based components used e.g. for the distribution of energy, a not so cyclical segment 2kV-3.3kV: 15% for NTD and partly for other substrates used in e.g. industrial or transport applications or in wind turbines 1.2kV-1.7kV: More than 15% for PFZ, and in some cases also CZ-EPI and CZ used in industrial applications, medical equipment and the automobile industry Less than 900V: Around 10% for applications based mainly on CZ substrates Core products FZ-NTD, FZ-PFZ and CZ-EPI expected to generate the highest growth rates COMPANY PRESENTATION Page 4

5 MARKET DRIVERS 100 INDUSTRY: Focus on energy-efficient solutions in industry, e.g. industrial motors ( Smart power ) TRANSPORTATION & AUTOMOTIVE: Movement towards more efficient and more climate-friendly transport of people and goods including electric vehicles ENERGY: New investments in infrastructure and integration of new energy sources in existing grids Projected world energy consumption, COMPANY PRESENTATION Page 5

6 TRANSITION FROM TODAY TO TOMORROW Today Tomorrow: Decentralised network with more power variation Gas plant Coal plant Transmission Network = Distribution Network Source: Yole Developpement and Topsil COMPANY PRESENTATION Page 6

7 3 Topsil s s markets, market drivers 7 Insulated Gate Bipolar Transistors (IGBTs) fuelling growth 14 Update on strategy implementation 19 Appendix: Topsil in brief COMPANY PRESENTATION Page 7

8 IGBTs BASED ON SILICON, KEY ELEMENT IN ELECTRICAL APPLICATIONS Manufactured on the basis of FZ or CZ silicon, IGBT modules are an integral part ofeg: e.g.: Photos: Yole Developpement and The insulated gate bipolar transistor (IGBT) functions as the speeder or electronic brain in various high power applications Industrial motors Pumps Ventilators High speed trains Hybrid vehicles Solar panels Wind turbines The Grid (Energy transmission) COMPANY PRESENTATION Page 8

9 ESTIMATED MARKET VOLUME FOR SILICON WAFERS IN EV/HEV APPLICATIONS IGBT, PFZ medium voltage Market size (Units) Market volume for Si wafers in EV/HEV " (Units) " (Units) Source: Yole Developpement, 2009 COMPANY PRESENTATION Page 9

10 ESTIMATED MARKET SIZE FOR IGBT MODULES USED IN RAIL TRACTION Marke et size (M$) $350M $300M $250M $200M $150M IGBT, NTD, very high voltage IGBT modules for rail transportation market size (M$) 6.5kV 4.5kV 3.3kV 2.5kV 1.7kV $100M $50M $M Source: Yole Developpement, Page 10

11 ESTIMATED MARKET SIZE OF IGBT + DIODE PACKS FOR PV $800 M $700 M IGBT, PFZ medium voltage IGBT Pack market size for PV business $600 M Market (M$) $500 M $400 M $300 M $200 M $100 M $ M IGBT pack market (M$) $32.9 M $47.9 M $81.5 M $108.5 M $132.4 M $161.2 M $209.4 M $272.2 M $345.4 M $424.0 M $538.4 M $683.7 M Yole Developpement 2009: Based on full-bridge IGBT pack with: 2-legs, single-phase for small inverters and 3-legs, 3-phases for med & large inverters COMPANY PRESENTATION Page 11

12 ESTIMATED MARKET SIZE FOR IGBT + DIODE PACKS FOR WIND TURBINE $35 M IGBT, PFZ medium voltage IGBT pack market for wind turbines $30 M Market (M$) $25 M $20 M $15 M $10 M $5 M $ M pack market (M$) 9.85 M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ M$ Source: Yole Developpement, 2009 COMPANY PRESENTATION Page 12

13 ESTIMATED MARKET SIZE FOR TRANSMISSION OF ENERGY Market size in M$ $80M $70M $60M $50M $40M $30M $20M $10M $M IGBT, NTD, high + very high voltage Market for Thyristor & IGBT packs in HVDC IGBTMarket (M$) Thyristor Market (M$) Source: Yole Developpement, 2009 HVDC: High voltage direct current COMPANY PRESENTATION Page 13

14 AGENDA 3 Topsil s s markets, market drivers 7 Insulated gate bipolar transistors (IGBTs) fuelling growth 14 Update on strategy implementation 19 Appendix: Topsil in brief COMPANY PRESENTATION Page 14

15 STRATEGY SEIZING THE OPPORTUNITY Situation Opportunities Strategy chosen Objectives Market growth Access to raw material & competitive prices Expansion Four strategic focus areas 1 Improve Topsil s customer satisfaction 2 A stronger Cemat 3 Reduce Topsil s costs 4 A stronger financial position for the group Significant expansion of competitive position during the strategy period New customer contracts (increased volumes) Customer requirements: Reduced costs Stable quality Shorter production time Increased automation Improvements & expansion related Closely The Topsil Group: Greenfield (Topsil) Wafering (Cemat) R&D (8 ) Build up scalable production capacity, capacity to be increased by four to five times Profitable growth EBITDA margin of at least 25% by the end of 2012 COMPANY PRESENTATION Page 15

16 NEW FUTURE PROOF FLOAT ZONE MACHINES INSTALLED Installation completed June Tested and running according to plan. New pullers improved in a number of ways, compared to earlier models. Designed to be able to manufacture 8 FZ wafers. COMPANY PRESENTATION Page 16

17 GREENFIELD PLANNING PROGRESSES AS SCHEDULED Greenfield time schedule md Financing, sketch, site 4 Financing ok Green light 2 VVM screening 3 Local community plan 9 Project approval by authorities 6 Engineering and procurement 6 Erection of building 7 Clean room and installations 5 Machines in (FZ, etch, mechanical) 1 Moving and closing old site 5 COMPANY PRESENTATION Page 17

18 TOPSIL TO MEET INCREASING DEMAND 100 Positive market outlook to continue for the coming years Share issue completed + New bank arrangement with committed loan facilities for three years New machinery to secure increased level of activity in 2011, overlap between existing and new facility in 2012 Topsil to accommodate to continuous growth, both in terms of equipment and in terms of human resources, including training COMPANY PRESENTATION Page 18

19 APPENDIX Topsil in brief COMPANY PRESENTATION Page 19

20 TOPSIL A NICHE PRODUCER OF SILICON FOR THE SEMICONDUCTOR INDUSTRY +50 years experience in the processing of silicon to the semiconductor industry Strong position within the production of float zone (FZ) and since 2008 czochralski (CZ) silicon Sells mainly to semiconductor markets, the Power market, MEMS, Optoelectronics & detectors as well as RF electronics / IPD, a market totalling USD 1.3bn or around 10% of the total silicon market for the semiconductor industry (2009) Favourable position among the four largest suppliers of silicon with a global market share of 7% of the Power market Professionalism and technological weight as core competencies Strong customer and supplier relations Niche plus strategy t focusing on high/medium h/ power products for selected customers Long-term contracts running until the end of 2015 and 2017 with the only two producers of the FZ raw material (polysilicon) Long-term contracts running until the end of 2015 with the largest and most important customers, ensuring a significant part of revenue COMPANY PRESENTATION Page 20

21 GROUP OVERVIEW The Topsil Group TOPSIL Semiconductor Materials A/S (Denmark) Production based on FZ technology Head office with administrative functions Development of FZ-based production 82% of 2009 revenue about 100 employees 100% Cemat Silicon S.A. (Poland) 53% Cemat 70 S.A (Poland) Production based on CZ technology and in-house production of CZ and FZ wafers Development of CZ-based production 15% of 2009 revenue about 220 employees Property company non-core activity held for sale 47% owned by the Polish state (24.7%), SPEC (9.4%) and other private investors (12.9%) Earnings and cash flow neutral - 55 employees COMPANY PRESENTATION Page 21

22 FROM SAND TO HIGH END PRODUCT FZ CZ COMPANY PRESENTATION Page 22

23 THE TOPSIL GROUP S SILICON IS USED AS CRITICAL COMPONENTS IN NUMEROUS SMART POWER SOLUTIONS FZ market CZ market Market for high h / very high h power and high h resistivity it Low and medium power markets High-volume, low-cost market Topsil Group revenue by product, 2009 NTD 67% CZ 6% CZ+Epi 10% PFZ 7% HPS 10% Source: Yole Developpement and The Topsil Group, 2009 COMPANY PRESENTATION Page 23

24 TOPSIL IS DEDICATED TO HIGH PERFORMANCE DEVICES High and very high power with high resistivity Low to medium power High volumes and strong price competition NTD CZ PFZ CZ EPI Source: Yole Developpement, France High Power Increasing proliferation of medium power products Low and medium power High volumes and price competition COMPANY PRESENTATION Page 24

25 THE GROUP IS ONE OF FOUR LARGE PLAYERS IN THE POWER MARKET Revenue in the Power market, 2009 Topsil has a substantial share of the FZ market and ranks as number four in the Power market with a global market share of around 7% Management believes Topsil has won substantial market share during the past few years USDm The CZ segment is more competitive while CZ-EPI is more of a protected niche segment 50 0 The industry (especially the FZ market) is characterised by the products long life cycles and significant switching costs / barriers to entry in terms of quality Revenues SOI 09 Revenues FZ 09 Revenues CZ 09 Source: Yole Developpement, 2009 COMPANY PRESENTATION Page 25

26 LONG TERM SUPPLIER AND CUSTOMER AGREEMENTS SIGNIFICANTLY INCREASE THE CERTAINTY OF FUTURE PROFITABILITY Suppliers Value chain Customers Two global suppliers of FZ raw material worldwide INGOT Float Zoning (pulling the crystal) In DK Core Tech. basis IRRADIATION Topsil has app.10 reactor Partner Contracts Worldwide WAFER Cutting Lapping Etching Polishing Around 100 FZ customers, the three largest account for around 60% of aggregated FZ volume Suppliers Long term agreements with both global suppliers of FZ silicon ( / ), supporting customers extensive growth plans, offering guaranteed prices and the ability to offer the widest FZ range of all FZ suppliers Customers Long term sales contracts on both minimum volumes and pricing with our six largest customers for Contracts add up to around 40% of Topsil Group s forecast revenue for 2010,more than three times the amount of previous contracts Beyond the minimum levels, the contracts signal strong confidence and commitment from the customers COMPANY PRESENTATION Page 26